Preliminary Final Report - Year Ended 30 June 2017

PPK Group Limited

Appendix 4E: Results for Announcement to the Market Preliminary Final Report

Comments

The after tax profit (loss) for the Group, after providing for non-controlling interests was $0.560M (30 June 2016: loss of $7.763M).

An explanation of the above figures is contained in the Commentary on Results in this Preliminary Final Report.

There were no entities acquired or disposed during the year - refer to note 15 "Investments Accounted for Using the Equity Method" in the attached Preliminary Final Report.

1. Loss of control over entities

   There was no change in control of entities during the year - refer to Note 10 "Details of Changes in Investments in Controlled Entities" in the attached Preliminary Final Report.

2. Details of associates and joint ventures

   There was no change in associates or joint ventures during the year - refer to note 15 "Investments Accounted for Using the Equity Method" in the attached Preliminary Final Report.

3. Details of available-for-sale financial assets

   The Group has sold a significant number of listed shares during the year - refer to note 14 "Financial Assets" in the attached Preliminary Final Report.

4. Segment information

   The Company operates in the following segments:

   • The Investment Property segment sold its last industrial property during the year.

   • The Investing segment still owns a small portfolio of listed shares at year end.

   • The Mining Equipment segment designs, manufactures, distributes and services underground mining equipment.

     Refer to note 18 in the Preliminary Final Report.

5. Dividends

   Current period

   No dividends were declared for the year ended 30 June 2017 - refer to Note 8 in the Preliminary Final Report.

   Previous period

   No dividends were declared for the year ended 30 June 2016 - refer to Note 8 in the Preliminary Final Report.

6. Dividend reinvestment plans

   Not applicable.

7. Basis of Preparation of the Financial Statements

   The Company is incorporated in Australia and its financial statements have been prepared in accordance with Australian Accounting Standards - refer to note 2 and note 3 in the Preliminary Final Report.

8. Audit qualification or review

   Details of audit/review dispute or qualification (if any):

   The financial statements are in the process of being audited and an unqualified opinion is likely to be issued.

9. Attachments

   Details of attachments (if any):

   There are no attachments.

10. Signed

Signed 31 August 2017

Andrew J. Cooke Company Secretary Sydney

ABN 65 003 964 181

(ASX LISTING RULE 4.3A)

PRELIMINARY FINAL REPORT FINANCIAL YEAR ENDED 30 JUNE 2017

Contents Page

Highlights of Results for Announcement to the Market 4

Commentary on Results 4

Financial Information 5

Notes to the Financial Information 10

This information is provided to the Australian Securities Exchange (ASX) under ASX Listing Rule 4.3A and should be read in conjunction with the most recent annual financial report.

DIVIDENDS

INTERIM DIVIDEND PER SHARE (FULLY FRANKED) FINAL DIVIDEND PER SHARE

The date, time and venue of the Company's Annual General Meeting is to be advised.

COMMENTARY ON THE RESULTS

PPK Group Limited (PPK) reported a net profit after tax attributable to owners of PPK of $0.560M for the 12 months to 30 June 2017 (2016: $7.763M loss). Group revenue for the 12 months was $29,218M (2016: $26,660M) with revenue from mining equipment sales and mining services of $28.945M (2016: $26.075M) and revenue from investment properties of $0.273M (2016: $0.585M).

Other income of $5.108M (2016: $1.597M) was primarily the gain from the sale of the Seven Hills Industrial property in January 2017 of $4.433M, gains from the sale of PPK's share portfolio of $0.244M (2016: $1.548M), recovery of a debt previously written off of $0.396M and other miscellaneous income of $0.030M (2016: $0.048M).

Please see the commentary from PPK's Chairman, Robin Levison, in the 2017 Annual Report which is to be lodged on Friday, 8 September 2017 for a more detailed analysis of the 2017 results and commentary on the state of the mining equipment business unit and general underground coal mining conditions.