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PEB Preliminary Results for Year Ended 31 March 2018

Full Year Results29 May 2018PEBHealthcare

29 May 2018
Company Announcement


PACIFIC EDGE LIMITED PRELIMINARY RESULTS FOR YEAR ENDED 31 MARCH 2018


• Pacific Edge’s preliminary unaudited results for FY18 reflect increasing test volumes and revenues as more

urologists and healthcare organisations adopt Cxbladder into clinical use.

• Pacific Edge has adopted NZ IFRS 15 revenue accounting standard for FY18, with US revenue now recognised

only on a cash basis. Prior year results have been restated in line with the new standard.

• Key Company performance metrics going forward will be, cash receipts and billable tests.

• Under the new accounting basis, Pacific Edge reported:

- Increase in Operating Revenue of 6% on prior year, to $3.4m from test sales

- Operating cash flow of $(18.1)m, in line with expectations and the previous year

- Reported loss of $19.7m for the year

- 28% increase in Laboratory Throughput to 14,446 tests, of which 82% were billable tests

• On a ‘like-for-like’

1

accounting basis, laboratory throughput was 91% of forecast and billable tests were 96% of

forecast, and revenue was 95% of forecast, despite commercial arrangements with Kaiser Permanente not yet

being finalised and slower than planned takeup from the VA.


Reported FY18 results (under the new accounting basis):


(NZ$M) FY18

(unaudited)

FY17 Restated

(unaudited)

FY17: FY18

(% change)

FY17

(Previously Reported)

Operating Revenue 3.4 3.2 6% 8.1

Other Revenue 1.6 1.5 7% 1.4

Total Revenue 5.0 4.7 7% 9.5

Operating Expenses 24.6 27.3

2

(10%) 30.5

Total Comprehensive Loss 19.7 22.6 (13%) 21.0

Net cash outflow to operating

activities

18.1 17.8 1% 17.8

Cash on hand as at 31 March 16.2 14.6 11% 14.6


Performance against forecast (on a ‘like-for-like’ accounting basis

1

):


FY18

(Forecast Oct 2017)

(Unaudited)

FY18

(on ‘like-for-like’

1

basis )

(Unaudited)

Forecast

Achieved (%)

FY17

(Previously Reported)

Total revenue (NZ$m) 12.6 12.0 95% 9.5

Net operating cashflow (NZ$m) (18.0) (18.1) 101% 17.8

Total Laboratory throughput (‘000) 15.8 14.4 91% 11.2

Billable tests (‘000) 12.4 11.9 96% 8.4


FY17 financials have been restated under NZ IFRS 15 to provide meaningful analysis. A reconciliation between the two

accounting standards, with explanations of the transition, will be included in Pacific Edge’s 2018 full audited Financial

Statements, which will be released to NZX by 30 June 2018.


1

‘Like-for-like’ basis assumes the same accounting standards, calculations and assumptions as was used to define the October 2017 forecast.0.0

2

FY17 Operating Expenses included bad debts and doubtful debts expenditure of $3.2m and one-off non-cash cost of winding up the Employee Incentive

Scheme of $2.9m.

29 May 2018
Company Announcement

Results commentary:


Listed cancer diagnostics company, Pacific Edge Limited (NZX: PEB), has today announced its preliminary unaudited

full year results for the year ended 31 March 2018, reporting increased test numbers and revenues as more

urologists and healthcare organisations adopt Cxbladder into clinical use.


In the past 12 months, Pacific Edge has:

• Rolled out the full suite of Cxbladder tests in target markets;

• Received growing clinical recognition and validation of its products highlighting the high performance,

clinical utility and cost benefits of Cxbladder;

• Increased test numbers processed with growing adoption from private and public healthcare organisations;

• Commenced commercial business in South East Asia and recorded initial sales;

• Progressed commercial negotiations with targeted large scale healthcare organisations in the USA,

including Kaiser Permanente and the Centers for Medicare and Medicaid. Pacific Edge has little to no

control over the decision making processes and timings of these large organisations and while these are

taking longer than expected to complete, progress continues to be made; and

• The Company has also been recognised in a number of high profile business reports – TIN Top Ten Hot

Emerging Companies, Deloitte Fast50 New Zealand, Deloitte Asia Pacific Technology Fast500, FT 1000 High

Growth Companies Asia Pacific.


Pacific Edge is commercialising its Cxbladder suite of non-invasive, accurate and simple to use molecular diagnostic

tests for the detection and management of bladder cancer. These allow for better care for patients, better decision

making by physicians and better resourcing for the healthcare sector, and are increasingly being adopted into the

standard of care.


The focus is on changing long standing clinical practices where there have been no new commercial products in

market in the US in the last 16 years

3

. Pacific Edge is the only company in the world to offer four commercial

products covering a single cancer pathway, and the Company’s suite of products is now providing a one stop shop

for urologists.


The increase in the number of tests being processed in the Company’s laboratories reflects growing adoption of

Cxbladder by physicians, both in the US and in NZ. New Zealand accounted for approximately 14% of total tests

processed in FY18.


Chairman of Pacific Edge, Chris Gallaher, said: “The multi-billion dollar US healthcare market remains our most

significant opportunity and we are seeking to position Cxbladder as the preferred diagnostic test of choice for

physicians in a market that offers more than 5 million potential test opportunities per annum.


“Our success will come as large scale healthcare organisations in the US adopt our product into their standards of

care and we are working hard to secure commercial agreements with targeted customers. While this has required

significantly more investment of time and resources than originally anticipated, we are making positive progress.

We are in this for the long haul and we are continuing to lay the foundations for a sustainable future as we work

towards cash flow breakeven.”




3

The last cancer diagnostic test to successfully enter the US market was Abbott’s UroVysion test in 2001-2002

29 May 2018
Company Announcement

CEO David Darling commented: “It has been a busy year for the Company, although commercial progress with key

US customers has been slower than we would have liked, with many of the adoption processes outside our control.


“Pleasingly, clinical studies and papers, as well as the recently published

4

commercial lookback by a leading public

healthcare provider, Canterbury DHB, continue to validate the high performance, clinical utility and cost benefits

of our tests. More and more urologists are now adopting Cxbladder, either alongside or in place of other tests, in

both the public and the private sector.


“We already have two of our four targeted, significant US customers under contract and, while it is taking time to

build scale in these organisations as expected, we are now starting to see a steady progression of repeat orders for

tests coming through. Our priority remains to conclude negotiations with Kaiser Permanente and attain inclusion

in the Local Coverage Determination for reimbursement from the Centers for Medicare and Medicaid as rapidly as

possible.”


Adoption of NZ IFRS 15 Reporting Standard


As previously advised, the application of NZ IFRS 15 results in revenue being recognised when the cash is received for

US based customers. This accounting treatment is likely to continue until such time as Pacific Edge is included in the Local

Coverage Determination (LCD) and coverage contracts are established with commercial insurers. Both of these will

provide significant positive impacts on the timing and collectability of revenue from the individual patient contracts.


The US reimbursement system is complex, and commercial agreements with US insurance payers are required to

enable reimbursement on a timely basis. Without these, payment can take anywhere from 1 to 24 months to be

received, with the bulk of cash receipts coming within 7 to 12 months.


The Centers for Medicare and Medicaid are seen as an industry leader and being included in the Local Coverage

Determination will facilitate Pacific Edge’s commercial negotiations with other insurance payers. As Pacific Edge

signs new agreements with insurance payers in the US and payment terms are guaranteed, it is likely that revenue

will start to be accrued again, in advance of the payment being received.


The Board believes this new reporting model provides a more transparent and clear view of Pacific Edge’s cash

revenues, particularly from the US.


Pacific Edge FY18 Preliminary Unaudited Financial Results


Pacific Edge’s FY18 preliminary unaudited results for FY18 reflect increasing sales and revenue, and were in line

with the expectations given in the Company’s guidance in October 2017.


On a like for like accounting basis, laboratory throughput was 91%, billable tests were 96% of forecast, and revenue

was 95% of forecast, despite commercial arrangements with Kaiser Permanente not yet being finalised and sales

to the Veterans Administration only now starting to flow from the initial centres targeted. Both of these were

planned to make contributions to the FY18 results.




4

CDHB presented the findings of their analysis of the commercial use of Cxbladder Triage in their business, to the USANZ annual meeting in Melbourne in

2017, was published in the British Journal of Urology International (BJUI)

29 May 2018
Company Announcement

Under the new accounting basis, revenue from test sales increased 6% to $3.4 million with total revenue for the

year of $5.0 million. This excludes US tests where cash payment has yet to be received, along with tests completed

for patients covered by the CMS, which account for up to 50% of US laboratory throughput and for which Pacific

Edge will seek reimbursement when it is included in the LCD. These tests remain in the billing and reimbursement

process and revenue will be accounted for when the cash is received.


Laboratory throughput is a cornerstone measure of the growth of the business and includes both commercial sales

and tests from User Programmes. Throughput increased by 29% to 14,400 tests in FY18, of which 82% were billable

tests (FY17: 78%).


Total operating expenses were $24.7 million, reflecting the increasing laboratory throughput and investment into

sales and marketing, particularly in the US.


Cash receipts from customers of $3.4 million reflect the long reimbursement processes, particularly in the US, with

a large portion of cash received in FY18 for tests sold in prior years. Revenue outgrew expenses by a net 13%, with

total expenses down 10% on FY17. Net operating cashflows were in line with expectations at $(18.1) million.


Overall, the Company reported a net loss of $19.7 million for the year, an improvement of 13% on the prior year

loss of $22.6 million.


Pacific Edge had $16.2 million in cash and cash equivalents at 31 March 2018, including proceeds from the capital

raise in November 2017. The Company remains confident that cash sales will grow progressively over FY19 and is

focused on reaching a cash flow breakeven position.


Given the adoption of the new reporting standard and the longer time than anticipated to finalise commercial

agreements with Kaiser and attain inclusion in the Local Coverage Determination (LCD) for the CMS patients, the

Company expects to provide updated guidance for FY19 later in the calendar year.


ENDS

For more information contact:


David Darling

Chief Executive Officer

Pacific Edge Ltd

P: +64 (3) 479 5800


Full Year Results Conference Call


Pacific Edge will host a conference call today at 1030am NZST to review the FY18 results.


To attend the conference call, participants will need to dial into one of the numbers below at least 5-10 minutes prior to the scheduled call

time and identify yourself to the operator. When prompted, please quote the confirmation code: 7186210.


The results presentation will be released to the NZX and can also be streamed live by following the link. Please note that you need to dial in

to hear the audio:https://slideassist.webcasts.com/starthere.jsp?ei=1193240


Media are invited to contact the company directly for an interview with management.


Dial toll free from NZ: 0800 423 970

Dial toll free from Australia: 1800 573 793

Dial toll free from USA: 800 239 9838

Dial toll free from Singapore: 800 186 5107

---

FY18 Results Presentation
For the twelve months to 31 March 2018

29 May 2018

Pacific Edge FY18 Presentation
FY18 OVERVIEW

Our aim is to change long standing clinical practices and encourage adoption of

Cxbladder:

ü

More Customers

: Continued focus on building customer base, specifically in

the US, the world’s largest healthcare market. Singapore first commercial

customer of scale

ü

Transformational Customers

: Progressed commercial negotiations with

targeted large scale healthcare organisations including Kaiser Permanente and

the Centersfor Medicare and Medicaid. Global first Cxbladderenters

guidelines with large public healthcare provider in NZ

ü

Increasing Throughput

: Increasing adoption of Cxbladder by urologists in the

private and public sectors, resulting in growing sales and revenue

ü

More Products

: Rollout of Cxbladder Monitor in the US and launch of

Cxbladder Resolve in New Zealand and Australia

ü

Growing Clinical Recognition

: Growing clinical recognition and validation. Mid-

Central DHB signs up for all four Cxbladder products. CPT codes issued in the

USA for Cxbladder products provide national recognition and precursor to

product price setting.

Pacific Edge FY18 Presentation
MARKETS

USA remains the primary focus; New Zealand is moving quickly

Slide 3

United States:

ØGrowing number of urologists transitioning from User Programmes to

commercial customers

ØGranted CPT Codes by American Medical Association precedes price

setting

ØSigned contract with MediNcreaseHealthPlan provides access to

Cxbladderfor more US customers

New Zealand

: Addition of Cxbladder to the guidelines at CDHB . Mid Central DHB

signs up for all four Cxbladder products. Waitemata DHB signs up for Cxbladder

replacing the gold standard cystoscopy. Majority of NZ’s large DHBs now actively

using Cxbladder

Australia

: Disappointing uptake to date. Working with distribution partner to drive

trial and adoption focus is on the large institutions to drive uptake

Singapore

: Signed commercial agreement with Raffles Medical Group Singapore.

Four key hospitals underway with User Programmes

Pacific Edge FY18 Presentation
TRANSFORMATIONAL CUSTOMERS

Continue to be primary focus and opportunity for Pacific Edge

Slide 4

Ø

Kaiser Permanente

: Continuing commercial discussions. Working with Kaiser’s staff on necessary

business elements to ensure that the start-up of commercial tests can occur shortly after an

agreement is reached

ü

Veterans Administration

: Federal supply schedule contract completed, sets price, now targeting 14

larger VA centres, early sales from two of the initial five centres targeted. Gaining traction at a slower

pace than anticipated. User Programmes will be necessary to grow adoption. Approx330 VA centres

with similar clinical and financial needs as we see in NZ’s DHB’s

ü

TRICARE

: TRICARE provide healthcare to the active military and some veterans with a total of 9.4

million lives under coverage. The completed agreements with TRICARE and the Federal Supply

Schedule contract provide a contracted price for all active and retired military.

Ø

Centersfor Medicare and Medicaid (CMS):

Continuing to work through the process required to gain

the LCD, which will enable timely and consistent payments patients covered by Medicare.

ü

Canterbury District Health Board (CDHB)

: In a global first, CDHB have added Cxbladder Triage into

their guidelines and replaced cytology and the gold standard cystoscopy in the initial work-up of all

haematuria patients

COMPLETED

COMPLETED

IN PROGRESS

COMPLETED

IN PROGRESS

Pacific Edge FY18 Presentation
ØMid-central DHB sign-up for all four Cxbladder products

ØCxbladder Resolve now available in Australia; soft launch commenced in the US in December 2017 -

commercial launch will follow peer reviewed science publication

ØRollout of Cxbladder Monitor across the US continues... adoption steadily increasing

ØPublication of multiple clinical papers highlighting the continued high performance, clinical utility and cost

benefits of Cxbladder. These key factors underpin clinical and budgetary decision making

ØGlobal first: Canterbury DHB ‘commercial lookback’ on 12 months of successful commercial use:

-Leads to broader use

-Cxbladder replaces gold-standard cystoscopy

-Highlights very successful performance of Cxbladder, driving ongoing positive adoption by other large

healthcare providers and physician led discussions to have Cxbladder accepted into their Standard of

Care

SUITE OF PRODUCTS DRIVING COMMERCIAL ADOPTION

Increasing availability of full product suite in target markets driving uptake

Slide 5

Pacific Edge FY18 Presentation
SALES CHANNELS

Shifted focus to large healthcare institutions

Slide 6

ØSales focus on large healthcare institutions has increased in all target

markets following the success achieved in NZ

ØDedicated US sales team -additional resource focused on institutions

ØUser Programmes remain the primary driver for encouraging trial and

adoption

ØFocus on digital marketing with specific campaigns around key period –

Bladder Cancer Awareness Month, Men’s Health

ØWorking with academic centres and hospitals to gain acceptance of

Cxbladder into their care pathways

ØRecognition in a number of high profile business reports –TIN Top Ten Hot

Emerging Companies, Deloitte Fast50 New Zealand, Deloitte Asia Pacific

Technology Fast500, FT 1000 High Growth Companies Asia Pacific

Pacific Edge FY18 Presentation
PERFORMANCE IN LINE WITH PEERS

Cxbladder sales tracking well; in line with other leading molecular diagnostic companies in the US

Gaining coverage and reimbursement decisions

will be key to driving volume

ØSales of Cxbladder are currently in line with

those of Genomic Health’s Oncotype Dx and

MDxHealth’s ConfirmMDxat the time of their

launch

ØContinuing to gain coverage and positive

reimbursement decisions will be crucial to help

accelerate test volume

ØGuideline inclusion has also served as a key

catalyst for sales volume and physician

adoption for other diagnostic peers

Test Volume of Molecular Diagnostics Companies post launch

Genomic

Health

*Cxbladder Pacific Edge Year 3 estimate from October 2017 Forecast

Cxbladderis tracking

in line with other US

MolDxcompanies

Pacific Edge FY18 Presentation
PRELIMINARY FINANCIAL PERFORMANCE FOR FY18

Slide 8

Pacific Edge FY18 Presentation
USA B2C REIMBURSEMENT PROCESS

ØThe US reimbursement system is complex

ØCurrently, approx. 60% of Pacific Edge customers are directly

with the patient (B2C relationship)

ØPayment can take anywhere from 1 to 24 months to be received

as the majority involves payment by either private or public

insurance, with the bulk of cash receipts coming within 7 to 12

month period

ØCommercial agreements with large institutions and private

insurance companies will increase collectability of revenue

ØThe Centersfor Medicare and Medicaid are seen as

reimbursement leaders. attaining a Local Coverage

Determination and price will provide payment for tests provided

to patients covered by the CMS and faster collection times

ØLCD and price setting for the CMS tests facilitate Pacific Edge’s

commercial negotiations with other insurance payers

ØPacific Edge sales teams increase focus on institutional

healthcare organisations

Slide 9

Pacific Edge FY18 Presentation
As previously advised, Pacific Edge has adopted the new revenue accounting standard,

NZ IFRS 15, for the 2018 financial year. This means that Pacific Edge now only

recognises, in its financial statements, revenue for its US customers when cash payment

is received. All other US tests sold in that financial period will remain active in the billing

and reimbursement process until the cash is received.

Previously the revenue statements in the financial accounts included both cash

received and accrued revenue for tests that had been billed in the financial year but

where the revenue had yet to be received. See Chart on next page.

As Pacific Edge signs new agreements with insurance payers in the US and payment

terms are guaranteed, it is likely that revenue will be accrued again, in advance of the

payment being received.

The Board believes this new reporting model provides a more representative view of

Pacific Edge’s cash revenues, particularly from the US.

FY17 financials have been restated under NZ IFRS 15 to provide meaningful analysis. A

reconciliation will be available in Pacific Edge’s 2018 full Financial Statements when they

are released to NZX by the end of June.

Slide 10

NEW REVENUE REPORTING MODEL

Adoption of IFRS 15 –US cash based revenue recognition

ØNew revenue standards (NZ IFRS

15) results in only the cash

component of the revenue being

recognisedfor US patients in

FY18

ØUS revenue that was previously

reported as accrued revenue is

now not recogniseduntil the cash

for those sales is received

ØAll tests sold and billed will

continue on in the Pacific Edge

billing and reimbursement

process and actively chased for

collection and booked as the cash

is received

Pacific Edge FY18 Presentation
0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Lab Throughput

(FY17)

Lab Throughput

(FY18)

Total Revenue

(FY17)

Total Revenue

(FY18)

Total Revenue

FY18 NZ IFRS 15

Pacific Edge Performance Metrics

FY17 vs FY18

Previous accounting standard

New accounting

standard

PERFORMANCE AGAINST FORECAST

Test throughput grows by 29%

Slide 11

ACRUALL REVENUE FY17

ACRUALL REVENUE FY18

CASH FY17

CASH FY18

•October 2017 forecast based on

the assumptions that the

commercial agreement with Kaiser

Permanente would be in place

from February 2018 and faster

traction with sales to the Veterans

Administration would occur. Both

have taken longer than anticipated

üDespite this not yet having

occurred, Pacific Edge achieved

95% of revenue target, 96% of

billable test target and 91% of

Laboratory Throughput target.

See slide 21 for numerical breakdown

of forecast performance

Cash

Cash

Cash

1. All financial results reported in this graph are unaudited

Pacific Edge FY18 Presentation
FY18 SNAPSHOT

Using the new revenue reporting model: US revenue on cash basis

Slide 12

Performance ($ millions)FY18 NZ IFRS

1

(Unaudited)

FY17 Restated

1

(NZ IFRS 15)

% ChangeFY17 (Previously

Reported)

Operating Revenue

3.43.2 6%8.1

Other Revenue

1.61.57%1.4

Total Revenue

5.04.76%9.5

Operating Expenses

24.627.3-10%30.5

Net Loss

(19.7)(22.6)-13%(21.0)

Net Operating Cashflow

(18.1)(17.8)1%(17.8)

Cash on hand as at 31 March

16.214.611%14.6

FY17 financials have been restated under NZ IFRS 15 to provide meaningful analysis. A reconciliation will be available in Pacific Edge’s 2018 full

Financial Statements which will be released to NZX by 30 June.

1. All financials reported in this table as calculated under the new accounting standard NZ IFRS 15 and are unaudited

Pacific Edge FY18 Presentation
FY17: FY18 REVENUE BRIDGE

Sales revenue increased +6% to $3.4m

REVENUE GROWTH

ü6% increase in revenue received for test sales to

$3.4 million

üPositive growth in product sales, predominantly

in the USA:

•Increasing sales from existing and new

customers

•Initial sales from VA

Adoption of NZ IFRS 15:

•Smaller headline revenue number

•FY17 restated under new reporting standard

•US B2C revenue only recognised when cash

payment received

Slide 13

Outstanding US B2C revenue no

longer recognised under NZ IFRS 15

Grant

funding and

other income

Sales

$8.1m

$5.0m

$4.7m

Pacific Edge FY18 Presentation
LABORATORY THROUGHPUT

Cornerstone measure of the growth of the business

0

2000

4000

6000

8000

10000

12000

14000

16000

FY14FY15FY16FY17FY18

Laboratory Throughput

(Includes commercial tests and User Programmes)

29%

increase

(FY17:FY18)

Slide 14

ü

14,400 tests processed

in FY18 including

commercial tests and User Programmes

ü

Approx. 82% of tests were billable

in FY18

compared to 78% in FY17

ØApprox. 23,000 tests estimated to be

undertaken in FY19 (includes an estimate of

throughput for both Kaiser Permanente and the

CMS)

Pacific Edge FY18 Presentation
PROFIT AND LOSS

Revenue outgrows expenses by a net 13%

($ millions)

FY18

(NZ IFRS 15)

1

FY17

Restated

1

Change

TOTAL REVENUE

5.04.7

7%

LaboratoryExpenses2.11.4

42%

Research4.96.6

(25%)

Sales and Marketing2.21.9

15%

Employee Incentive

Scheme

-2.9

Bad Debts--

Doubtful Debts--

Other 15.514.4

7%

TOTAL EXPENSES

24.627.3

(10%)

Total Loss

(19.7)(22.6)

(13%)

ü

Revenue outgrowing expenses by a net 13%

(FY18

on FY17): Total Revenue +7%; Op Expenses -10%

ØContinued investment into four strategic areas:

People, Products, Market Expansion and Intellectual

Property

ØBad and Doubtful Debts relating to US accrued

revenue no longer recognised under NZ IFRS 15

ØEmployee Incentive Scheme concluded in FY17 and

incentive dispersed –non-cash item

ØOverall, Pacific Edge reported a Net Loss of

$(19.7)m for the year, in line with management

expectations, and a 13% improvement on FY17

Slide 15

1. All financials reported in this table as calculated under the new accounting standard NZ IFRS 15 and are unaudited

Pacific Edge FY18 Presentation
OPERATING CASHFLOW

In line with previous year and management expectations

ØPayment terms currently average seven to 12

months lag between completion of test and

payment by relevant US payer (insurer).

Improvement expected as commercial agreements

with US insurers, large institutions and CMS are

achieved

ØCompleted $21.3 million rights issue in November

2017

ØCash and cash equivalents $16.2 million as at 31

March 2018.

ØDebt free with funding from capital and technology

grants for new product development,

commercialisation, USA rollout and South East Asian

market initiation

NET OPERATING CASHFLOWS

($ millions)

FY18

(NZ IFRS 15)

1

FY17

Restated

1

Receiptsfrom:

-customers

-grant providers

3.4

0.9

3.2

1.4

Interest received0.10.7

Payments to suppliers andemployees22.623.2

NetCash Flows To Operating Activities

(18.1)(17.8)

Slide 16

1. All financials reported in this table as calculated under the new accounting standard NZ IFRS 15 and are unaudited

Pacific Edge FY18 Presentation
OUTLOOK

FY19 Revenue Uplift Expected In Line With Annual Trends

ØFocus on concluding contract with Kaiser Permanente and attaining LCD for

CMS patients, which will ensure cash uplift and timely reimbursement from

CMS

ØContinuing uplift in commercial sales expected from existing and new

customers

ØBuild on initial sales from targeted VA centres and expand number of centres

being targeted

ØGiven the adoption of the new reporting standard and the longer time than

anticipated to finalise commercial agreements with Kaiser and attain inclusion

in the LCD for CMS patients, the company expects to provide updated

guidance for FY19 later in the calendar year.

Slide 17

Pacific Edge FY18 Presentation
www.pacificedge.co.nz

www.cxbladder.com

www.pacificedgedx.com

David Darling

Chief Executive Officer

Pacific Edge Limited

Te l : + 6 4 3 4 7 9 5 8 0 2 M o b i l e : + 6 4 2 1 7 9 7 9 8 1

Email: david.darling@pelnz.com

Pacific Edge FY18 Presentation
APPENDIX: OUR PURPOSE AND STRATEGY

Delivering Innovative Solutions for the Early Detection and Management of Cancer

ØFocus on haematuria and urothelial cancer;

commercialising a suite of Cxbladder tests

(one-stop-shop)

ØThe United States is the world’s largest

healthcare market and our primary focus.

ØHave commercial partnerships in New

Zealand and Australia and are establishing a

presence in Singapore.

ØEstimate that there are up to 5 million test

opportunities for Cxbladder on patients with

urothelial cancer in these markets every

year, with an estimated total market size of

up to US$7.5 billion.

ØTargeting high growth. Four main areas of

investment: People, Intellectual Property,

Market Expansion and Product Development

Slide 19

Pacific Edge FY18 Presentation
PERFORMANCE AGAINST FORECAST

Numerical breakdown

FY18 Forecast

(Unaudited)

FY18 on ‘like for like’

basis (Unaudited)

% of

Forecast Achieved

FY17 Previously

Audited and Reported

Total Revenue ($m)12.612.095%9.5

Operating cashflow ($m)(18.0)(18.1)101%17.8

Laboratory Throughput15,80014,40091%11.2

Billable Tests 12,40011,90096%8.4

Slide 20

Like for like basis using same accounting assumptions as for the October 2017 forecast

Pacific Edge FY18 Presentation
APPENDIX: NOTES TO THE FORECAST

US Revenue makes up approximately 90% of Pacific Edge’s total revenue and remains our focus

US revenue makes up approximately 90% of

Pacific Edge’s total revenue with two

significant contributors: CentersFor Medicare

and Medicaid services (CMS) and private

insurance companies (Private Payers)

Pacific Edge’s revenue model is common in the

US while companies build commercial volume

and apply for their Local Coverage

Determination.

REIMBURSEMENT AND PAYMENT PROCESS FOR CMS AND PP

Centres For Medicare and Medicaid Services (CMS):

Currently accounts for 50% of the US tests. Proportion

will decrease as PPs enter into contract

Private Payers: Many different types of cover; will

provide the majority of Pacific Edge’s revenue in

future

Process Cxbladder test for PP funded patient

Invoicing and collection of revenue managed by

Pacific Edge’s billing and reimbursement

contractor, Quadax

Time lag between processing of test and payment

creates distortion between matching of revenue

accruals to cash receipts

Application for Local Coverage Determination (LCD):

All companies seeking reimbursement from CMS

must obtain an LCD, which is a long, iterative process

Receive LCD which enables reimbursement for CMS

patients

Negotiate contract price –based on commercial

transactions in past 30 to 90 days ietests for PP

funded patients

Seek reimbursement for CMS tests previously

processed and invoiced

Normal terms of trade for all future CMS

transactions

Process Cxbladder test for CMS patient

Invoice CMS and held on account until LCD received

Out of contract

: Higher price per test is achieved

but but slow payment terms anywhere between

1 to 12 months

Negotiate contract and highest possible price

Normal terms of trade for all future PP transactions

Pacific Edge FY18 Presentation
DISCLAIMER

Information

The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a

summary of certain information relating to the performance of Pacific Edge Limited . The information in this presentation is of a general nature and does not purport

to be complete. This presentation should be read in conjunction with Pacific Edge's other periodic and continuous disclosure announcements, which are available at

nzx.com.

Not financial product advice

This presentation is for information purposes only and is not financial or investment advice or a recommendation to acquire Pacific Edge securities, and has been

prepared without taking into account the objectives, financial situation or needs of individuals. Pacific Edge, its directorsand employees do not give or make any

recommendation or opinion in relation to acquiring or disposing of shares. In making an investment decision, investors must relyon their own examination of Pacific

Edge, including the merits and risks involved. Investors should consult with their own legal, tax, business and/or financial advisors in connection with any acquisition of

securities.

Future performance

This presentation contains certain 'forward-looking statements', for example statements concerning the development and commercialisation of new products,

regulatory approvals, customer adoption and results of future clinical studies. Forward-looking statements can generally be identified by the use of forward-looking

words such as, 'expect', 'anticipate', 'likely', 'intend', 'could', 'may', 'predict', 'plan', 'propose', 'will', 'believe', 'forecast', 'estimate', 'target', 'outlook', 'guidance' and

other similar expressions. The forward-looking statements contained in this presentation are not guarantees or predictions of future performance and involve known

and unknown risks and uncertainties and other factors, many of which are beyond the control of Pacific Edge and may involve significant elements of subjective

judgement and assumptions as to future events which may or may not be correct. There can be no assurance that actual outcomes will not materially differ from

these forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements.

The forward-looking statements are based on information available to Pacific Edge as at the date of this presentation. Except as required by law or regulation

(including the NZX Main Board Listing Rules), Pacific Edge undertakes no obligation to provide any additional or updated information whether as a result of new

information, future events or results or otherwise.

No representation

To the maximum extent permitted by law, Pacific Edge and its advisers, affiliates, related bodies corporate, directors, officers, partners, employees and agents make no

representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of information in thispresentation.

Slide 22

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FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018

PRELIMINARY

18

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Financial Information

Statement of Comprehensive Income 2

Statement of Changes in Equity 3

Balance Sheet 4

Statement of Cash Flows 5

Reconciliation of (Loss) with Net Operating Cash Flows 6

Notes to the Financial Statements

Summary of Accounting Policies 7

Segment Information 9

Contents

1

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
2018

($000)

(Unaudited)

2017

($000)

RESTATED

(Unaudited)

REVENUE

Operating Revenue 3,400 3,208

Total Operating Revenue 3,400 3,208

Other Income 1,242 1,105

Interest Income 231 249

Foreign Exchange Gain 129 119

Total Revenue and Other Income 5,002 4,681

OPERATING EXPENSES

Laboratory Operations 2,060 1,446

Research 4,914 6,570

Sales and Marketing 2,202 1,923

Employee Equity Equivalent Incentive Scheme- 2,925

Other Expenses 15,470 14,403

Total Operating Expenses 24,646 27,267

NET (LOSS) BEFORE TAX (19,644) (22,586)

Income Tax Expense--

(LOSS) FOR THE YEAR AFTER TAX (19,644) (22,586)

Items that may be reclassified to profit or loss:

Translation Foreign Operations (83) (43)

TOTAL COMPREHENSIVE (LOSS) atttributable to equity

holders of the Company

(19,727) (22,629)

Earnings per share for profit attributable to the equity

holders of the Company during the year

Basic and Diluted Earnings Per Share(0.045)(0.057)

Statement of Comprehensive Income

For the year ended 31 March 2018

These Financial Statements are to be read in conjunction with the Notes to the Financial Statements

2

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Statement of Changes in Equity

For the year ended 31 March 2018

These Financial Statements are to be read in conjunction with the Notes to the Financial Statements


Share Capital

($000)

(Unaudited)

Retained

Earnings

($000)

RESTATED

(Unaudited)

Share Based

Payments

Reserve

($000)

(Unaudited)

Foreign

Currency

Translation

Reserve

($000)

RESTATED

(Unaudited)

Total Equity

($000)

RESTATED

(Unaudited)

Balance as at 31 March 2016 100,012 (73,527) 2,404 918 29,807

Adjustment on Adoption of NZ IFRS 15

(net of tax)

- (4,362)- 88 (4,274)

Restated Balance as at 31 March 2016 100,012 (77,889) 2,404 1,006 25,533

Loss After Tax (as restated)- (22,586)- - (22,586)

Other Comprehensive Income (as

restated)

- - - (43) (43)

TOTAL COMPREHENSIVE (LOSS)

attributable to equity holders of the

Company

- (22,586)- (43) (22,629)

Transations with owners in their capacity

as owners:

Issue of Share Capital (net of expenses) 8,659 - - - 8,659

Issue of Ordinary Shares - Equity Share

Scheme

2,925---2,925

Share Based Payment - Employee Share

Options

- - 486 - 486

Balance as at 31 March 2017 111,596 (100,475) 2,890 963 14,973

Balance as at 31 March 2017 111,596 (100,475) 2,890 963 14,973

Loss After Tax- (19,644)- - (19,644)

Other Comprehensive Income- - - (83) (83)

TOTAL COMPREHENSIVE (LOSS)

attributable to equity holders of the

Company

- (19,644)- (83) (19,727)

Transations with owners in their capacity

as owners:

Issue of Share Capital (net of expenses) 20,020 - -- 20,020

Exercising of Employee Share Options112-(18)-94

Share Based Payments - Employee

Remuneration

96---96

Share Based Payment - Employee Share

Options

- - 1,183 - 1,183

Balance as at 31 March 2018 131,824 (120,119) 4,055 880 16,640

3

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Balance Sheet

As at 31 March 2018

These Financial Statements are to be read in conjunction with the Notes to the Financial Statements

2018

($000)

(Unaudited)

2017

($000)

RESTATED

(Unaudited)

2016

($000)

RESTATED

(Unaudited)

CURRENT ASSETS

Cash and Cash Equivalents 5,242 6,564 4,160

Short Term Deposits 11,000 8,000 20,000

Receivables 1,064 663 1,456

Inventory 752 824 707

Other Assets 472 490 496

Total Current Assets 18,530 16,541 26,819

NON-CURRENT ASSETS

Property, Plant and Equipment 854 837 990

Intangible Assets 281 329 247

Total Non-Current Assets 1,135 1,166 1,237


TOTAL ASSETS 19,665 17,707 28,056

CURRENT LIABILITIES

Payables and Accruals 2,926 2,734 2,523

Finance Leases 73 - -

Total Current Liabilities 2,999 2,734 2,523

NON-CURRENT LIABILITIES

Finance Leases 26 - -

Total Non-Current Liabilities 26 - -

TOTAL LIABILITIES 3,025 2,734 2,523


NET ASSETS 16,640 14,973 25,533

Represented by:

EQUITY

Share Capital 131,824 111,596 100,012

Accumulated Losses (120,119) (100,475) (77,889)

Share Based Payments Reserve 4,055 2,890 2,404

Foreign Currency Translation Reserve 880 963 1,006

TOTAL EQUITY 16,640 14,973 25,533

4

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Statement of Cash Flows

For the year ended 31 March 2018

These Financial Statements are to be read in conjunction with the Notes to the Financial Statements

2018

($000)

(Unaudited)

2017

($000)

RESTATED

(Unaudited)

CASH FLOWS TO OPERATING ACTIVITIES

Cash was provided from:

Receipts from Customers 3,420 3,198

Receipts from Grant Providers 944 1,418

Interest Received 115 732

4,479 5,348

Cash was disbursed to:

Payments to Suppliers and Employees 22,575 23,210

Net GST Cashflow 4 (25)

22,579 23,185


Net Cash Flows to Operating Activities (18,100) (17,837)


CASH FLOWS TO INVESTING ACTIVITIES:

Cash was provided from:

Proceeds from Short Term Deposits 8,000 20,000

8,000 20,000

Cash was disbursed to:

Purchase of Short Term Deposits 11,000 8,000

Capital Expenditure on Plant and Equipment195209

Capital Expenditure on Intangible Assets 140 270

11,335 8,479


Net Cash Flows to Investing Activities (3,335) 11,521


CASH FLOWS FROM FINANCING ACTIVITIES:

Cash was received from:

Ordinary Shares Issued 21,318 8,750

Exercising of Share Options96 -

21,412 8,750

Cash was disbursed to:

Repayment of Capital Element of Finance Leases 59 -

Issue Expenses 1,296 91

1,355 91


Net Cash Flows From Financing Activities 20,057 8,659

Net increase (decrease) in Cash Held (1,378) 2,343

Add Opening Cash Brought Forward 6,564 4,160

Effect of exchange rate changes on net cash 56 61

Ending Cash Carried Forward 5,242 6,564

5

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Reconciliation of (Loss) with Net Operating Cash Flows

For the year ended 31 March 2018

GROUP

2018

($000)

(Unaudited)

2017

$000

RESTATED

(Unaudited)

Net Loss for the Period (19,644) (22,586)


Add Non Cash Items:

Depreciation 316 353

Loss on Disposal of Property, Plant and Equipment 10 -

Amortisation 188 189

Employee Share Options 1,183 485

Issue of Employee Incentive Scheme Shares- 2,925

Employee Bonuses Paid in Shares in Lieu of Cash 96 -

Effect of Exchange Rates on Net Cash (130) (95)

Total Non Cash Items 1,663 3,857


Add Movements in Other Working Capital items:

Decrease (Increase) in Receivables and Other Assets (383) 798

(Increase) in Inventory 72 (116)

Increase (Decrease) in Payables and Accruals 192 211

Total Movement in Other Working Capital (119) 892


Net Cash Flows to Operating Activities (18,100) (17,837)

6

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
1. SUMMARY OF ACCOUNTING POLICIES

Reporting Entity

The unaudited preliminary consolidated financial statements presented for the year ended 31 March 2018

are for Pacific Edge Limited (the ‘Company’) and its subsidiaries (collectively referred to as the ‘Group’).

The Group’s purpose is to research, develop and commercialise new diagnostic and prognostic tools for the

early detection and management of cancers.

Pacific Edge Limited is registered in New Zealand under the Companies Act 1993 and is a Financial Markets

Conduct (FMC) reporting entity under Part 7 of the Financial Markets Conduct Act 2013. The financial

statements of the Group have been prepared in accordance with the requirements of the Financial Markets

Conduct Act 2013 and the NZX Main Board Listing Rules. The financial statements presented are those of

the Group, consisting of the Parent entity, Pacific Edge Limited (“the Company”) and its subsidiaries. The

reporting entity is listed on the New Zealand Stock Exchange (NZX).

Basis of Preparation

These consolidated financial statements of the Group have been prepared in accordance with Generally

Accepted Accounting Practice in New Zealand (NZ GAAP). The Group is a for-profit entity for the purposes

of complying with NZ GAAP. The unaudited preliminary consolidated financial statements comply with

New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), other New Zealand

accounting standards and authoritative notices that are applicable to entities that apply NZ IFRS. The

unaudited preliminary consolidated financial statements also comply with International Financial Reporting

Standards.

The unaudited preliminary consolidated financial statements are presented in New Zealand Dollars, which

is the Parent’s functional currency and Group’s presentation currency and all values are rounded to the

nearest thousand dollars ($000). The accounting principles recognised as appropriate for the measurement

and reporting of earnings, cash flows and financial position on an historical cost basis have been used.

The Statement of Comprehensive Income and Statement of Cash Flows have been prepared so that all

components are stated exclusive of GST. All items in the Balance Sheet are stated net of GST, with the

exception of receivables and payables.

Basis of Consolidation

The following entities and the basis of their inclusion for consolidation in these financial statements are as

follows:

Name of Subsidiary

Place of

Incorporation

(or registration)

& Operation

Principal Activity

Ownership Interests

& Voting Rights

2018

%

2017

%

Pacific Edge Diagnostics New Zealand LimitedNew Zealand

Commercial Laboratory

Operation

100100

Pacific Edge Pty LtdAustralia

Biotechnology Research

& Development

100100

Pacific Edge Diagnostics USA LtdUSA

Commercial Laboratory

Operation

100100

Pacific Edge Diagnostics Singapore Pte LtdSingapore

Biotechnology Research

& Development

100100

Pacific Edge Analytical Services LimitedNew ZealandDormant Company100100

Notes to the Financial Statements

For the year ended 31 March 2018

7

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
The unaudited preliminary consolidated financial statements incorporate the assets and liabilities of all

subsidiaries of Pacific Edge Limited as at 31 March 2018 and the results of all subsidiaries for the year then

ended. All subsidiaries have the same balance date as the Company of 31 March.

Pacific Edge Limited consolidates all entities, where Pacific Edge Limited has the capacity to control, as

subsidiaries in the Group financial statements. Control is achieved when the Company:

- has power over the investee;

- is exposed, or has rights, to variable returns from involvement with the investee; and

- has the ability to use its power to affect its returns.

Subsidiaries which form part of the Group are consolidated from the date on which control is transferred to

the Company. They are de-consolidated from the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group. The

consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the

liabilities incurred and the equity interest issued by the Group.

The consideration transferred includes the fair value of any asset or liability resulting from a contingent

consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired

and liabilities and contingent liabilities assumed in a business combination are measured initially at their

fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-

controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate

share of the acquiree’s net assets.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are

eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed

where necessary to ensure consistency with the policies adopted by the Group.

Statement of Cash Flows Restatement

An error was found in the 31 March 2017 Statement of Cash Flows during September 2017. Bad Debts

and Doubtful Debts expenses were incorrectly included in the 31 March 2017 Statement of Cash Flows as

Operating Cash Expenditure items, rather than being applied against Operating Cash Receipts. The net

effect of this error on 31 March 2017 Net Operating Cash Flows was nil, but both Receipts from Customers &

Grant Providers and Payments to Suppliers & Employees were overstated in the 31 March 2017 Statement of

Cash Flows by approximately $3.2m. The corrected 31 March 2017 Statement of Cash Flows was released to

NZX on the 27th of September 2017 and the corrected 31 March 2017 amounts are shown in the Statement

of Cash Flows reported in these Financial Statements.

This error had no impact on the 31 March 2017 Statement of Comprehensive Income, Statement of Changes

in Equity, Earnings per Share or the Balance Sheet.

Change in Accounting Policy

NZ IFRS 15: Revenue from contracts with customers (Effective date: periods beginning on or after

1 January 2018):

The Group has previously indicated that, on initial assessment of NZ IFRS 15 in 2017, that there would not

be a significant impact on the financial statements. This assessment was based on the expected completion

of large customer agreements during FY18, particularly inclusion in the Local Coverage Determination

(LCD) with the Centers for Medicare and Medicaid Services (CMS) and a commercial contract with Kaiser

Permanente. As these agreements have not been concluded during FY18, the Group has reassessed the

impact of NZ IFRS 15 and decided that there is a significant impact on the recognition of revenue relating

to Cxbladder tests undertaken for US customers. The Group has adopted this accounting standard in the

current financial year in advance of its mandatory commencement date due to this significant impact on

Notes to the Financial Statements

For the year ended 31 March 2018

8

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
the Group’s reported financial results. Under the previously applicable accounting standard (NZ IAS 18

Revenue), revenue for Cxbladder sales was accrued on a Gross Recoverable Revenue basis, estimating net

realisable amounts due from patients and third-party payers. The revenue for such tests under NZ IFRS 15 is

now recognised on a cash receipt basis.

For customers not based in the US, there is no material impact from the adoption of NZ IFRS 15.

The standard provides options as to how transition can be undertaken. The Group has applied the full

retrospective transitional approach and has not applied any of the practical expedients. As a result of this

approach, the financial statements for FY17 have been restated for NZ IFRS 15.

An explanation of the impact and the amount of adjustment for each financial statement line item affected

by the application of NZ IFRS 15 for FY18 and FY17 will be included in the full financial statements, to be

released to NZX by 30 June 2018.

2. SEGMENT INFORMATION

ACCOUNTING POLICY

Operating segments are reported in a manner consistent with the internal reporting provided to the chief

operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources

and assessing performance of the operating segments, has been identified as the Chief Executive Officer

who makes strategic decisions.

There are two operating segments at balance date:

1. Commercial: The sales, marketing, laboratory and support operations to run the commercial

businesses worldwide

2. Research: The research and development of diagnostic and prognostic products for human cancer.

The reportable operating segment Research derives its revenue primarily from grant income and the

reportable operating segment Commercial derives its revenue primarily from sales of Cxbladder tests. The

Chief Executive Officer assesses the performance of the operating segments based on net (loss) for the

period.

These segments differ from those reported at 31 March 2017, as the previously reported segments of US

Laboratory and NZ Laboratory have been consolidated into Commercial, to align with internal reporting.

Therefore the FY17 financial information has been restated to reflect these new segments, as well as the

impact of the transition to NZ IFRS 15.

Notes to the Financial Statements

For the year ended 31 March 2018

9

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Segment income, expenses and profitability are presented on a gross basis excluding inter-segment

eliminations to best represent the performance of each segment operating as independent business units.

The segment information provided to the Chief Executive Officer for the reportable segments described

above, for the year ended 31 March 2018, is shown below.

2018

Commercial

($000)

(Unaudited)

Research

$000

(Unaudited)

Less:

Eliminations

$000

(Unaudited)

Total External

Income

$000

(Unaudited)

Income

Operating Revenue - External 3,400 - -3,400

- Internal154-(154)-

Other Income 127 2,137 (1,022) 1,242

Interest income 2 3,158 (2,929) 231

Foreign Exchange Gain- 129 - 129

Total Income 3,683 5,424 (4,105) 5,002

Expenses

Expenses 18,834 9,413 (4,105) 24,141

Depreciation and Amortisation 191 313 - 504

Total Operating Expenses 19,025 9,726 (4,105) 24,646

Loss Before Tax (15,342) (4,302)- (19,644)

2017

Commercial

$000

RESTATED

(Unaudited)

Research

$000

RESTATED

(Unaudited)

Less:

Eliminations

$000

RESTATED

(Unaudited)

Total External

Income

$000

RESTATED

(Unaudited)

Income

Operating Revenue - External 3,208 -- 3,208

- Internal165-(165)-

Other Income 70 1,983 (948) 1,105

Interest Income- 2,230 (1,981) 249

Foreign Exchange Gain 3 116 - 119

Total Income 3,446 4,329 (3,094) 4,681

Expenses

Expenses 16,088 13,731 (3,094) 26,725

Depreciation and Amortisation 227 315 - 542

Total Operating Expenses 16,315 14,046 (3,094) 27,267

Loss Before Tax (12,869) (9,717)- (22,586)

Eliminations

These are the intercompany transactions between the subsidiaries and the parent. These are eliminated on

consolidation of Group results.

Notes to the Financial Statements

For the year ended 31 March 2018

10

PACIFIC EDGE LIMITED PRELIMINARY FINANCIAL STATEMENTS 2018
Segment Assets and Liabilities Information

2018

Commercial

($000)

(Unaudited)

Research

($000)

(Unaudited)

Total

($000)

(Unaudited)

Total Assets 1,977 17,688 19,665

Total Liabilities 1,917 1,108 3,025


2017

Commercial

($000)

RESTATED

(Unaudited)

Research

($000)

RESTATED

(Unaudited)

Total

($000)

RESTATED

(Unaudited)

Total Assets 2,111 15,597 17,707

Total Liabilities 1,419 1,315 2,734

Additions to non current assets include:

Commercial

($000)

(Unaudited)

Research

($000)

(Unaudited)

Total

($000)

(Unaudited)

Property, Plant & Equipment236117353

Intangible Assets-139139

Total Additions to Non Current Assets236257493

There are three external revenue customers who individually represent greater than 10% of the total trade

receivables balance. As trade receivables totals $38,000 in 2018, this is not deemed to be a material

balance in the financial statements and therefore the Group has determined that there is not a significant

concentration risk in relation to the receivables balance.

Sales between segments are carried out at arm’s length. The revenue from external parties reported to the

Chief Executive Officer is measured in a manner consistent with that in the statement of comprehensive

income.

The amounts provided to the Chief Executive Officer with respect to total assets and total liabilities are

measured in a manner consistent with that of the financial statements. These assets and liabilities are

allocated based on the operation of the segment and the physical location of the asset.

There are no unallocated assets or liabilities.

Notes to the Financial Statements

For the year ended 31 March 2018

11

87 St David Street, PO Box 56, Dunedin, New Zealand
P +64 3 479 5800 F +64 3 479 5801

www.pacificedge.co.nz

---

Pacific Edge Limited
Appendix 1

Results for announcement to the market


Reporting Period 12 months to 31 March 2018

Previous Reporting Period 12 months to 31 March 2017


Amount (000s) Percentage Change

Revenue from ordinary

activities

- Operating Revenue:

NZ$3,400

- Other Income:

NZ$1,242


Revenue from ordinary

activities: NZ$4,642

- Operating Revenue:

6% increase

- Other Income: 12%

increase


Revenue from ordinary

activities: 8% increase

Profit (loss) from ordinary

activities after tax

attributable to security

holder.

NZ$19,644 13% decrease

Net profit (loss) attributable

to security holders.

NZ$19,644 13% decrease


Interim/Final Dividend Amount per security Imputed amount per

security

The Company does not

propose to pay dividends to

shareholders

Not Applicable


Record Date Not Applicable

Dividend Payment Date Not Applicable

Comments The Appendix 1 Release should be read in conjunction with

the unaudited preliminary financial statements for the year

ended 31 March 2018, the results presentation and

commentary, all of which have been released with this NZX

Appendix 1 Release.


The Company has adopted NZ IFRS 15 for the 2018 financial

year and applied the full retrospective approach, restating

the 2017 financial year, which is also unaudited.


The preliminary financial statements are presented as

unaudited. The full audited financial statements for both

financial years will be released by 30 June 2018 and will

include full disclosures on the transition of NZ IFRS 15 and

the transition tables from NZ IAS 18 to NZ IFRS 15.


Net tangible assets per share is 3.5 cents per share at 31

March 2018 (31 March 2017: 3.7 cents per share).

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.