Appendix 4C clarification

ASX Statement
18 May 2020                                                                                                  ASX Code: AU1

                                             Appendix 4C Clarification
The Agency Group Australia (ASX:AU1) (“The Agency” or “the Company”) provides the following clarification in respect to its
reported cash position disclosed in its Appendix 4C for the period ended 31 December 2019 and its Half-year Financial Report for
the 6 months ended 31 December 2019.

The clarification addresses a difference between how the Company reported its cash at bank and cash equivalents. The Appendix
4C disclosed a cash at bank balance of $5.152M, whereas the Half-year Financial Report disclosed $3.70M.

In summary the 4C includes a significant sum that is invested in a bank account under our borrowing obligations with Macquarie
Bank. The balance of funds are held in other bank deposits which are used as security to support commercial and operating
obligations of the business.

In the Half-year Financial Report these cash deposits are treated and classified as other assets on the balance sheet as defined by
the auditors. However, The Agency has treated these as cash on deposits and cash equivalents within the Appendix 4C, in line
with its internal management reporting and consistency with prior Appendix 4Cs.

Reconciliation of the difference is shown below.
                                                   Appendix 4C             HY Financial Report
                                                    $000’s                        $000’s
 Cash at bank                                       5,152                         3,706

 Cash reclassified in HY Report
     - Other cash                                                                   195               Classified as other receivables
     - Cash on deposits                                                             461               Classified as deposits paid in
                                                                                                      trade and other receivables
     -    Cash on deposit with funder plus                                          790               Classified as other financial
                                                                                                      assets
          bank guarantees
                                                    5,152                         5,152

Due to the reclassification of cash and cash equivalents, the difference of $1.446M has been reflected in the Half-year report as
an outflow from operating activities – included in payments to suppliers and employees, being a balance sheet movement during
the period rather than as being included as cash on hand. The Company considered that the cash categories as reported in the
Appendix 4C were a more accurate classification of cash receipts and payments in line with internal cashflow management
reporting.

For future Appendix 4C lodgements the Company will provide a reconciliation, where necessary to the annual and half-year
financial reports for any differences between cash and cash equivalents and operating activities disclosures.

Authorised for release by Stuart Usher, Company Secretary.

For further information, please contact:

 Investors                                                   Media
 The Agency Australia Ltd                                    Chapter One Advisors
 Paul Niardone                                               David Tasker / Colin Jacoby
 T: +61 08 9204 7955                                         T: +61 433 112 936 / +61 439 980 359