TRUSCREEN PRELIMINARY RESULTS FOR FY18

14 June 2018
NZX ANNOUNCEMENT

TruScreen Unaudited Preliminary Results for the Year Ended 31 March 2018

Cervical cancer technology company, TruScreen Limited (NZAX: TRU) has released its preliminary
results for the year ended 31 March 2018 and is forecasting a significant uplift in sales for the new
financial year, after a strong performance in the first two months of the year to date.
The company, which is commercialising its real time cervical cancer screening solution, is gaining
increasing recognition and validation for the benefits its technology offers, particularly in countries
with limited laboratory infrastructure.
Distribution agreements are in place covering a combined screening population of approximately 1
billion women and TruScreen’s focus remains firmly on the larger of these markets - China, India and
Mexico - and capitalising on the work done over the past two years to gain acceptance of TruScreen
in these countries. China remains the primary focus for the company and an important commercial
opportunity.
Progress is being made to have TruScreen recommended for major screening programmes and
health systems in these countries.
This is being reflected in increasing sales, with strong growth in the second half of the financial year,
mainly as a result of gaining CFDA approval for the TruScreen2 device in China in late December
2017. This positive trajectory is expected to continue as commercialisation moves ahead in China
and other focus markets.
To support its growth, TruScreen has established a new optical manufacturing facility in Sydney,
which will provide up to four times more production capacity for the TruScreen device. This facility is
expected to be commissioned within the coming months.
TruScreen chair, Mr Robert Hunter, said: “It is pleasing to be reaching the point where we will begin
reaping the returns from our years of investment and R&D. We are now on the cusp of seeing our
efforts translating into commercial progress and recent sales indicate that we have reached a major
turning point for the company.”
Financial Results for the year ended 31 March 2018
For the FY18 financial year, TruScreen reported a 37% increase in sales to $0.8 million, primarily due
to a strong second half following receipt of CFDA approval in December 2017.
The company notes that while total sales revenue for the year was below expectations after
commercial performance was hampered in the first half due to ongoing product improvements and
validation, and delays in gaining CFDA approval for the TruScreen device in China, it is pleasing to
now be seeing a positive sales trajectory.
Other income including a refundable tax offset, took total revenue to $1.9 million for the year, up
34% on FY17.

Total operating expenses increased as expected, as the company positions itself for the forecast
growth in demand, with an increased investment into inventory, human resources and R&D related
to technology improvements, as well as establishment of the new manufacturing facility in Sydney.
Net operating cash outflow for the period was $(3.8) million. This is expected to significantly improve
as sales increase and TruScreen expects to reach profitability by the end of FY19.
For the FY18 financial year, the company reported a Net Loss of $(4.5) million, compared to $(3.5)
million in the prior year.
As at 31 March 2018, TruScreen had cash and cash equivalents of $1.2 million (FY17: $3.7m). As it
has done previously, if required, TruScreen will seek shareholder support for its growth strategy as it
works towards profitability.
NZ Dollars FY18 FY17 FY17: FY18
Sales 804,062 585,388 37%
Other revenue 1,070,058 810,202 32%
Total revenue 1,874,120 1,395,590 34%
Operating expenses (6,347,435) (4,936,200) 30%
Net operating cashflow (3,729,191) (2,575,584) 45%
Net Loss (4,473,315) (3,540,610) 26%
Cash and cash equivalents 1,212,454 3,671,571 -67%
Outlook
TruScreen is making positive commercial progress and significant sales growth is expected, mainly
from China, as well as further sales to Mexico, India and other smaller markets. The company
expects to reach profitability during FY19.
In the two months since year end, sales have continued to grow. Total sales for the first two months
of the FY19 year are approximately 50% of full year sales for FY18. As the company achieves
maximum manufacturing capacity for its devices, further growth is expected.
The vast majority of these sales are to China, where devices are being stockpiled in preparation to
being rolled out in a major program in the next few months.
Over time, as more devices enter the market, the company expects to see an increasingly large
proportion of revenue being generated from the sales of the Single Use Sensors, providing a
sustainable annuity income stream.
While China remains the primary opportunity, the company has identified a number of other
markets which offer significant potential and will continue working with its distribution partners to
encourage adoption of the TruScreen cervical cancer screening solution.
FY18 Key Events:
• Completed $5.0m capital raising in May 2017.
• Signed major new sub-distributor in China to manage Government sales channels.
• Involved in two major evaluation programmes in China.
• Commenced research collaboration with All India Institute of Medical Science (AIIMS).
• Commenced evaluation with Ministry of Health in Mexico for inclusion in the Mexican
Government’s purchasing catalogue of preferred medical devices for public health.
TruScreen is now awaiting the formal approval of the full committee.
• Approved for reimbursement by major health insurer in Jordan, a global first for TruScreen.

• Established distribution networks for several new territories.
• Initial results from clinical performance evaluation of TruScreen2 at the Royal Hospital for
Women in Sydney indicate that TruScreen will substantially boost screening capabilities in
developing countries.
• Increased manufacturing capability with establishment of new optical manufacturing facility
in Sydney.



ENDS
For more information visit www.truscreen.com or contact:
Martin Dillon
TruScreen Chief Executive Officer
Email: martindillon@truscreen.com
Media Liaison
Jackie Ellis
Email: jackie@ellisandco.co.nz
Phone: +64 27 246 2505


About TruScreen:
TruScreen’s real time cervical cancer
technology utilises a digital wand which is
placed on the surface of the cervix to
measure electrical and optical signals from
the surrounding tissue. A sophisticated
proprietary algorithm framework
distinguishes between normal and
abnormal (cancerous and precancerous)
tissue to identify precancerous change, or
cervical intraepithelial neoplasia (CIN). A
Single Use Sensor (SUS) is used for each
patient to protect against cross-infection

---

TRUSCREEN LIMITED

Preliminary Consolidated Financial Statements

For the Year Ended 31 March 2018


Contents


Page
Statement of Profit or Loss and Other Comprehensive Income 2
Statement of Financial Position 3
Statement of Changes in Equity 4
Statement of Cash Flows 5
Notes to the Financial Statements 6

TRUSCREEN LIMITED
PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
The accompanying notes form part of these financial statements.
2
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2018
Note For the year
ended 31
March 2018
For the year
ended 31
March 2017
Unaudited Audited
$ $
Revenue from the sale of goods 3 804,062 585,388
Other income 3 1,070,058 810,202
Changes in inventories (66,343) 408,944
Purchases of inventory (741,607) (881,746)
Employee benefit expenses and directors’ fees (1,419,333) (1,174,222)
Administration (578,497) (470,394)
Research and development expenses (1,905,710) (1,190,910)
Rent (97,471) (95,625)
Travel (97,901) (156,900)
Marketing, & product approvals (393,485) (561,811)
Insurance (73,048) (87,424)
Shareholder relations & services (95,675) (91,999)
Foreign exchange loss (342,388) (68,502)
Amortisation & depreciation (535,977) (528,134)
Finance costs - (37,477)
Loss before income tax (4,473,315) (3,540,610)
Income tax expense - -
Loss for the period (4,473,315) (3,540,610)
Other comprehensive income

Item that may be reclassified subsequently to profit or
loss

Exchange differences on translating foreign subsidiary
operations (12,494)

(241,728)
Other comprehensive income for the period

(12,494)

(241,728)
Total comprehensive income for the period

(4,485,809)

(3,782,338)

Basic and diluted losses per share (cents) (2.3) (2.1)

TRUSCREEN LIMITED
PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
The accompanying notes form part of these financial statements.
3
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2018
Note 2018 2017
Unaudited Audited
$ $
CURRENT ASSETS
Cash and cash equivalents 1,212,454 3,671,571
Trade receivables - 217,397
Other receivables 3 1,015,110 791,791
Goods and services taxes recoverable 155,849 69,395
Loan receivable 75,000 -
Inventories 444,232 467,527
Other assets – prepayments 12,509 77,100
TOTAL CURRENT ASSETS 2,915,154 5,294,781
NON-CURRENT ASSETS
Plant and equipment 7,536 8,275
Intangible assets 8,944,813 9,738,424
TOTAL NON-CURRENT ASSETS 8,952,349 9,746,699
TOTAL ASSETS 11,867,503 15,041,480

CURRENT LIABILITIES
Trade and other payables 419,491 644,587
Provision for employee benefits 109,162 72,605
TOTAL CURRENT LIABILITIES 528,653 717,192
NON-CURRENT LIABILITIES
Provision for employee benefits 22,314 -
TOTAL NON-CURRENT LIABILITIES 22,314 -
TOTAL LIABILITIES 550,967 717,192
NET ASSETS 11,316,536 14,324,288

EQUITY
Issued capital 23,082,236 21,800,585
Share subscribed, but not issued 196,408 -
Share option reserve 172,800 172,800
Foreign currency translation reserve (551,798) (539,304)
Accumulated losses (11,583,110) (7,109,793)
TOTAL EQUITY 11,316,536 14,324,288

TRUSCREEN LIMITED
PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
The accompanying notes form part of these financial statements.
4
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2018


Note
Share
Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserve
Option
Reserve

Total
Audited Audited Audited Audited Audited
$ $ $ $ $


Balance at 1 April 2016
17,840,460 (3,569,183)
(297,576)
172,712 14,146,413




Loss for the period to 31
March 2017

- (3,540,610) - - (3,540,610)
Exchange differences on
translating foreign
subsidiary operations - - (241,728) - (241,728)
Total comprehensive
income for the period

- (3,540,610) (241,728) - (3,782,338)
Transactions with owners,
in their capacity as owners




Issue of ordinary shares

3,960,125 -
-
- 3,960,125
Share based payment

- -
-
88 88
Total transactions with
owners

3,960,125 -
-
88 3,960,213
Balance at 31 March 2017

21,800,585 (7,109,793)
(539,304)
172,800 14,324,288





Unaudited Unaudited

Unaudited

Unaudited

Unaudited


Balance at 1 April 2017
21,800,585 (7,109,793)
(539,304)
172,800 14,324,288




Loss for the period to 31
March 2018

- (4,473,317) - - (4,473,317)
Exchange differences on
translating foreign
subsidiary operations - - (12,494) - (12,494)
Total comprehensive
income for the period

- (4,473,317) (12,494) - (4,485,811)
Transactions with owners,
in their capacity as owners




Issue of ordinary shares

1,281,651 -
-
- 1,281,651
Share subscribed, but not
issued

196,408 -
-
- 196,408
Total transactions with
owners

1,478,059 -
-
- 1,478,059
Balance at 31 March 2018

23,278,644 (11,583,110)
(551,798)
172,800 11,316,536

TRUSCREEN LIMITED
PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
The accompanying notes form part of these financial statements.
5
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2018
Note 2018

2017
Unaudited Audited
$ $
CASH FLOW FROM OPERATING ACTIVITIES

Cash received from customers 1,019,183 754,043
Cash paid to suppliers and employees (5,577,047) (4,436,358)
Cash received from 45% refundable tax offset 808,167 1,126,610
Interest paid - (37,477)
Interest received 20,506 17,598
Net cash from operating activities 4 (3,729,191) (2,575,584)

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of intangible asset – development costs of
upgraded cervical cancer console

- (141,188)
Purchase of equipment (3,110) (6,355)
Net cash from investing activities (3,110) (147,543)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of shares 1,151,776 4,090,000
Share subscriptions 121,408 -
Share issue costs - -
Net cash from financing activities 1,273,184 4,090,000

Net increase/(decrease) in cash and cash equivalents
(2,459,117) 1,366,873
Cash and cash equivalents at 31 March 2017 3,671,571 2,304,698
Cash and cash equivalents at 31 March 2018 1,212,454 3,671,571

TRUSCREEN LIMITED
NOTES TO THE PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018

6
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Information
These unaudited Preliminary Consolidated Financial Statements and notes represent those of Truscreen Limited and
its subsidiaries (the “Group”). The parent company, Truscreen Limited is the ultimate legal parent company of the
Group and is a limited liability company incorporated and domiciled in New Zealand. It is a registered under the
Companies Act 1993. Truscreen is a FMC reporting entity under Part 7 of the Financial Markets Conduct Act 2013.
The Group is engaged in the business of the development and manufacture of cancer detection devices and systems.
Truscreen is a profit-oriented entity.
Basis of Preparation
The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based
on historical costs unless otherwise stated in the notes.
The financial statements are presented in New Zealand Dollars. The amounts presented in the financial statements
have been rounded to the nearest dollar.
The same accounting policies and methods of computation are followed in these financial statements as were applied
in the preparation of the Company’s financial statements for the year ended 31 March 2017.
Basis of Consolidation
The following entities and the basis of their inclusion for consolidation in these Financial Statements are as follows:

Name of
Subsidiary
Principal
Place of
Business
Principal Activity
Ownership Interest held by
the group
2018 2017
Truscreen Pty
Limited

Australia Owns the rights to the Truscreen
Cervical Cancer screening system.
The system comprises a medical
device and process designed to
detect the presence in real time of
precancerous and cancerous tissue
on the cervix.
100% 100%
Truscreen Ltd (UK)
UK Holds the European Community
Compliance (CE Mark) and will
only trade to the extent necessary to
satisfy the minimum requirement for
value added tax registration in the
United Kingdom and CE
certification.
100% 100%
TruScreen S. de
R.L. de C.V.
Mexico
Non-operating
100% 100%

TRUSCREEN LIMITED
NOTES TO THE PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018

7
NOTE 2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The Company makes estimates and assumptions concerning the future that affects the amounts reported in the
financial statements. Estimates and judgments are continually evaluated and based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances. The
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a
significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next
financial year are discussed below:
Valuation of Intangibles Assets
Intangible assets include assets acquired at cost net of amortisation charges of $6,381,916 ($2017 - $6,955,894) and
costs of development of the Truscreen Gen2 device net of amortisation charges of $2,562,896 ($2017 - $2,782,530).
The acquired intangible assets became available for use in February 2015 when sales commenced. Amortisation of
acquired intangibles commenced February 2015 and is based on a 20-year life. The development cost of TruScreen2
became available for use in April 2016. Amortisation commenced on 1 April 2016 and is based on a 20-year life.
The Directors have undertaken a comprehensive Impairment Review (“Review”) of the intangible assets belonging
to the Company at the reporting date. This Review has been undertaken in compliance with NZ IAS 36 (‘IAS 36’)
and its detailed specifications with the assistance of an independent consultant. The impairment review is based upon
projections of performance which while Truscreen is in startup phase are inherently uncertain.
NOTE 3. REVENUE
2018


2017
$ $
Sales revenue - sale of goods 804,062 585,388
Other income
43.5% refundable tax offset 1,049,552 792,604
Interest received - on financial assets not at fair value through
profit or loss

20,506

17,598
Total other income 1,070,058 810,202
1,874,120 1,395,590
The 43.5% tax offset is an ‘other receivable’ balance at reporting date.

TRUSCREEN LIMITED
NOTES TO THE PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018

8

NOTE 4. CASH FLOW INFORMATION

2018

2017

$ $
Reconciliation of cash flow from operations with loss after
income tax


Loss for the period
(4,473,315) (3,540,610)
Adjusted for:
Share based expense payment – employment expenses
-

88
Depreciation and amortization
535,977

528,134
Assets written off
-

-
Exchange difference arising from translating loss items at
the date of transaction and translating cash balances at year
end rates

248,987

(83,591)
Operating cash flows before working capital changes (3,688,351) (3,095,979)
Decrease/(Increase) in trade and other receivables
(5,922)

547,601
Decrease/(Increase) in goods and services taxes recoverable
(86,454)

(6,789)
Decrease / (Increase) in prepayments
64,591

89,457
Decrease / (Increase) in inventory
23,295

(408,945)
(Decrease)/Increase in trade and other payables
(95,221)

303,453
(Decrease)/Increase in employee liabilities

58,871

(4,382)
Net cash from operating activities
(3,729,191) (2,575,584)

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1
TRUSCREEN LIMITED

NZX APPENDIX 1 RELEASE

This document relates to Truscreen Limited’s (“the Company”) unaudited financial results for the year ended 31 March
2018, released to NZX on 14 June 2018. These results are in the process of being audited and are presented unaudited.
(TRU): Truscreen Limited
Results for announcement to the market
Reporting Period Year ended 31 March 2018
Previous Reporting
Period
Year ended 31 March 2017

Year ended 31 March 2018
($NZ)
Year ended 31 March 2017
($NZ)
Revenue from ordinary activities 1,874,120 1,395,590
Profit (loss) from ordinary activities
after tax attributable to security
holders (revenue from sale of goods
and services and research and
development incentives)
(4,473,315) (3,540,610)
Net profit (loss) attributable to security
holders
(4,473,315) (3,540,610)

Commentary on results
For commentary on the results please refer to the commentary on the related NZX release.
Financial Information
The Appendix 1 Release should be read in conjunction with the unaudited Preliminary Consolidated
Financial Statements for the year ended 31 March 2018 which have been released together with this NZAX
Appendix 1 release.

2
TRUSCREEN LIMITED

PRELIMINARY FULL-YEAR ANNOUNCEMENT
For the year ended 31 March 2018


The information below is required by Appendix 1 of the NZAX Listing Rules:
1.1 Details of the reporting period and the previous reporting period
The reporting period is for the year ended 31 March 2018 (“current year”) with the comparative period being
for the year ended 31 March 2017 (“previous year”}.
1.2 Information prescribed by NZX
Refer to “Results for Announcement to the Market”.
1.3 The following information:
(a) A statement of financial performance
Refer to the Preliminary Consolidated Financial Statements for the year ended 31 March 2018.
(b) A statement of financial position
Refer to the Preliminary Consolidated Financial Statements for the year ended 31 March 2018.
(c) A statement of cash flows
Refer to the Preliminary Consolidated Financial Statements for the year ended 31 March 2018.
(d) Details of dividends or distributions
The Company does not propose to pay dividends to shareholders.
(e) Details of any dividend or distribution reinvestment plans in operation and the last date for the
receipt of an election notice for participation in any dividend or distribution reinvestment plan
The Company has no dividend reinvestment plan.
(f) A statement of changes in equity
Refer to the Preliminary Consolidated Financial Statements for the year ended 31 March 2018.
(g) Net tangible assets per security
Net tangible assets per share at 31 March 2018 was 1.18 cents (31 March 2017: 2.41 cents per share).
(h) Details of entities over which control has been gained or lost during the period
A wholly owned Mexican subsidiary, TruScreen S. de R.L. de C.V. was incorporated in August 2017.
Paid up capital is 100 Mexican Pesos. The subsidiary has not traded.
Except for the above entity there are no other entities over which control has been gained or lost during
the period.

3

(i) Details of associates and joint ventures
None.
(j) Any other significant information
Nil.
(k) Commentary on result
For commentary on the result please refer to the commentary in the related NZX release and the
attached unaudited Preliminary Consolidated Financial Statements for the year ended 31 March 2018.
(l) Unaudited Financial Statements
The Preliminary Consolidated Financial Statements for the year ended 31 March 2018 are unaudited.
These are in the process of being audited for release in the upcoming Annual Report.
(m) Any major changes or trends in the business
Refer to the commentary in the related NZX release.
(n) Unrealised Gains
There are no unrealised gains resulting from the revaluation of assets of the Company or its subsidiaries,
or any unrealised net changes in values or development margins of investment assets included as
separate items after profit before extraordinary items.
3.1 Basis of preparation
These financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP). They comply with New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS), and other applicable New Zealand Financial Reporting Standards, as
appropriate for profit-oriented entities. They also comply with International Financial Reporting Standards.
3.2 Accounting
Refer to Statement of Accounting Policies in the Preliminary Consolidated Financial Statements for the year
ended 31 March 2018.
3.3 Changes in accounting policies
The accounting policies used are consistent with those used to prepare the Consolidated Financial
Statements for the year ended 31 March 2017.
3.4 Audit Report
The Preliminary Consolidated Financial Statements for the year ended 31 March 2018 have not been
audited.
3.5 Additional information
Not applicable.

4
The Preliminary Consolidated Financial Statements were approved by the Board of Directors on 12 June
2018.
Robert Hunter
Chairman