CAP-XX Regulatory News (CPX)

5th March 2015

CAP-XX Limited

Interim Results for the half-year ended 31 December 2014

CAP-XX Limited, a world leader in the design and manufacture of revolutionary thin-form supercapacitors, which considerably extend the performance of batteries, announces its interim results for the half-year ended 31 December 2014.

Financial Highlights

· Product Sales Revenue of A$ 2.2m up 2% on corresponding half year. The increase represented a volume increase of 5%, average selling prices down by 6% and the strengthening USD contributed 3%. Range of sales opportunities continues to grow in new and emerging markets for supercapacitor applications.

· Net Loss reduced to $0.9m (H12013: A$1.2m) The year on year improvement is result of the improvement in gross margin due to the realisation of operational cost savings, lower administration expenditure and the associated translation benefits from a stronger USD.

· Cash reserves of A$0.5m at the period end (H12013: A$2.7m) which includes the receipt of a tax rebate from the Australian Taxation Office of A$1.2m (2013 A$1.0m).

Operational Highlights

· Engagement with companies in the automotive industry and supply chain is now moving to evaluation phase with and license opportunities currently under negotiation.

· Identified operational cost savings have been delivered and investigations have commenced on Phase II.

· MOU signed with Global Tier-1 Automotive components company for truckStart application.

For further information contact:

More information is available at www.cap-xx.com

Notes to Editors:

CAP-XX (LSE:CPX) is a world leader in the design and manufacture of thin flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. The unique feature of CAP-XX supercapacitors is their very high power density and high energy storage capacity in a apace-efficient prismatic package. These attributes are essential in power-hungry consumer and industrial electronics, and deliver similar benefits in automotive and other transportation applications. For more information about CAP-XX, visit www.cap-xx.com

Chairman's Statement

Product sales revenue of A$2.3m is up 2% over that in the previous year with volumes increasing by 5%, and average selling prices down by 6%. The operating loss after tax has reduced to $0.9m (H12013: A$1.2m). The year on year improvement is a result of the improvement in gross margin due to the realisation of operational cost savings, lower administration expenditure and associated translation benefits from a stronger US dollar.

As at 31 December 2014, the Company had cash and cash equivalents of A$0.5m (H12013 :A$2.7m) which includes the receipt of a tax rebate from the Australian Taxation office of A$1.2m (2013:A$1.0m).

As highlighted in the trading update statement on 3 February 2015, the Company has announced:

· the signing of a mutually exclusive memorandum of understanding (MoU) with a North American Global Tier-1 automotive components company, initially for the development of products for the North American truck market;

· that in terms of trading generally, supercapacitor revenues and volume had improved, with demand driven primarily by the wider adoption of CAP-XX's supercapacitor technology in medical and consumer wearables, RFID/logistics support and automated meter reading; and

· highlighted its continued focus on manufacturing cost reduction, which had already resulted in annualised cost savings of approximately US$1 million, with additional savings expected in the subsequent financial year.

The MoU is for the development of CAP-XX's large automotive supercapacitors for a standalone system which can serve both original equipment and aftermarket applications, via potentially replacing one in three or one in four truck batteries with a supercapacitor unit. CAP-XX has produced prototypes of this product under the name 'truckStart'.

The Board believes that CAP-XX's market share within existing electronics markets has been fairly steady, with growth in these markets being modest to date. However, the Board also believes that demand for thin, small devices, such as wearable electronics and growth in energy-harvesting as a power source, will drive rapid growth in these markets. As a consequence, CAP-XX has been seeking to increase the end use of its supercapacitors in multiple high growth markets, including:

· sports gear and small personal medical devices within the wearable electronics field;

· building and industrial control systems and RFID tags within the energy harvesting systems; and

· a variety of metering and telemetry applications.

Large cell markets, such as automotive, have also been growing strongly and CAP-XX now has the prototype large capacity devices required to enter these markets. To date, CAP-XX has engaged with over 20 companies in the automotive industry and supply chain. This activity is now moving towards evaluations and licence opportunities.

Since mid-2014, CAP-XX has achieved significant reductions in production costs and improvements in gross margins. In June 2014, the Board's target was to reduce total production cost by approximately 30 per cent. As at the end of November 2014, savings of 27 per cent. had been achieved. The Board now expects a total production cost reduction of 36 per cent between June 2014 and June 2015 and believes that further savings can be achieved beyond June 2015, including additional raw material cost reductions, which are currently being investigated. The manufacturing cost reduction programme has resulted in material and process improvements, which have already delivered improved product performance. The Board believes that the ongoing programme should deliver numerous further benefits, including:

· allowing CAP-XX to be cost-competitive on higher volume business, whilst increasing the margin contribution; and

· a more focussed product range, which will drive further reductions in production costs and working capital requirements over time.

The Board continues to remain confident that trading for the 2014/15 financial year will continue to better the previous period.

Patrick Elliott

Chairman

4th March 2015

CAP-XX Limited

Income statement - Unaudited

For the half-year ended 31 December 2014

CAP-XX Limited

Balance sheet - Unaudited

As at 31 December 2014

CAP-XX Limited

Statements of changes in equity

For the half-year ended 31 December 2014

CAP-XX Limited

Cash flow statements - Unaudited

For the half-year ended 31 December 2014

This general purpose interim financial report, for the half-year reporting period ended 31 December 2014, has been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRSs), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. This general purpose interim financial report, for the half-year reporting period ended 31 December 2014, is (with the exception of the figures for 30 June 2014 in the Balance Sheet) unaudited.