TRUSCREEN PRELIMINARY RESULTS FOR FY19

NZX Announcement

30 May 2019

TruScreen FY19 results show sales up, costs down, reduced loss
Highlights
• Sales up 166% to NZ$2.14m
• Total revenue up 43% to NZ$3.11m
• Expanded presence in existing markets, China remains primary focus
• New distribution agreements in Russia, Zimbabwe
• Pilot manufacturing facility in Australia established, capacity to produce 200 units per
month.
Cervical cancer technology company TruScreen Limited (NZX:TRU) (the Company) has released
its preliminary unaudited financial results for the year ended 31 March 2019. The results show
an increase in sales over the prior year, reduced costs and a reduction of the Company’s annual
net loss.
Financial Results for the year ended 31 March 2019
TruScreen generated a 166% increase in sales to NZ$2.14 million (2018 : NZ$0.8 million), driven
by major sales in China, Russia and Zimbabwe.
Other income, including a research and development tax offset, lifted total revenue to NZ$3.11
million (2018 : NZ$2.17 million) for the year, up 43%.
Total overhead expenses decreased to NZ$5.3 million for the year (2018: NZ$5.5 million).
The Company recorded a net loss of approximately NZ$3.5 million – an improvement of 16% on
the prior year (2018: NZ$4.2 million) – as increased sales, cost management and further
investment in developing new markets for the TruScreen cervical cancer screening device
improved overall performance.
Net operating cash outflow for the period was lower at NZ$2.7 million (2018: NZ$3.7 million),
reflecting an improved trading result and a higher research and development tax offset.
As at 31 March 2019, TruScreen had cash and cash equivalents of NZ$1.7 million (2018: NZ$1.2
million). As it has previously done, if required, TruScreen will seek shareholder support for its
growth strategy as it works towards profitability.

China
45%
Zimbabwe
20%
Russia
17%
Mexico
7%
Other
11%
FY 19 Sales
ChinaZimbabweRussiaMexicoOther
0
500
1000
1500
2000
2500
FY16FY17FY18FY19
NZD $ 000's
TruScreen Sales Growth

Operational performance and update
In the year to 31 March 2019, TruScreen gained increased recognition and validation for the
benefits of its device, particularly in low- and middle-income countries with limited laboratory
infrastructure and high rates of cervical cancer.
Strong progress was made in low- and middle-income nations, where 90 per cent of global deaths
from cervical cancer occur. TruScreen focused on building its presence in existing markets, with
new distribution agreements in Russia and Zimbabwe, and strong growth in China.
China, which has 400 million women of screening age, remains TruScreen’s primary market
opportunity.
TruScreen has commenced large-scale Chinese evaluations with The Women’s and Children’s
Division of the Centre for Disease Control (CDC) and with the China Obstetrics and Gynaecology
Association. These programs are key platforms for adoption in the screening guidelines of both
organisations, and for eventual inclusion in the screening guidelines for all 12,000 government
hospitals in China.
Also, TruScreen will be assessed as a potential first-choice screening technology in rural areas in
China, commencing with Xinjian province in the far west.
In the second half of FY2019, TruScreen signed a new distribution agreement for the Russian
market with IMSystems JSC, including an initial order for multiple TruScreen devices and Single
Use Sensors (SUS) of NZ$364,000.
Russia has more than 44 million women of cervical cancer screening age.
IMSystems has extensive expertise in the distribution of medical equipment and devices in Russia
and has partnerships with global brands and manufacturers, including GE Healthcare.
Earlier in the year, TruScreen announced its African HIV initiative, which includes discussions with
senior African health officials regarding the screening of women generally and the specific need
for screening HIV-affected women. Additionally, TruScreen received an initial order of
NZ$450,000 from the National Aids Council of Zimbabwe to supply cervical cancer screen
systems.
TruScreen cervical cancer screening systems will be used in Stage 1 of a pilot program to provide
cervical cancer screening to more than 800,000 HIV-affected women in Zimbabwe.
TruScreen also gained product registration in Saudi Arabia and Israel, thereby increasing its
capability to sell the TruScreen device across the Middle East.
The Company completed a NZ$3.075 million capital raising in October 2018.

Appointments
To support company growth, TruScreen has appointed new members to the board and executive,
Including Anthony (Tony) Ho as Chairman. Tony brings over 25 years’ experience as a company
director across the resources, services, biotech and consumer goods sectors. Mr Con Hickey, an
experienced marketing executive of medical device products to global markets, also joined the
board in August 2018.
In the second half of FY2019, TruScreen appointed Guy Robertson as Chief Financial Officer and
Company Secretary. Guy has previously held leadership roles as CFO, Company Secretary and
Director for companies in Australia and Hong Kong, managing large teams at Franklins, Colliers
International and Jardine Lloyd Thompson.

Outlook
TruScreen is making positive commercial progress in its key markets, and significant sales growth
is expected.
“We are making good progress to achieve a number of our commercial goals for the FY2020
financial year,” TruScreen CEO Martin Dillon said.
“TruScreen expects to increase sales by leveraging our key partnerships, endorsements from Key
Opinion Leaders, global NGOs and government adoption, and by strengthening the path to
profitability by reducing our manufacturing costs.”
The roll-out of devices into key programs in China, including the installation of devices across
Xinjiang province and into the Two Cancers screening clinics, is expected to generate steady
growth in Single Use Sensor sales, which will underpin continued sales growth throughout
FY2020.
China remains TruScreen’s primary focus. However, Truscreen is now receiving recognition from
key NGOs for its ability to provide point-of-care screening services in low- and middle-income
countries. At the World Health Assembly in Geneva in late May, UNITAID, the World Health
Organisation and the Clinton Health Access Initiative advised that TruScreen has been included
in their screening landscape.
TruScreen is executing on its strategic plan after accounting for all costs relating to the
establishment of an in-house electro optical assembly (EOA) manufacturing facility in Australia.
This has increased production capacity (expandable to 200 units per month) and lowered the
manufacturing cost per device. The Company is investigating further cost-reduction strategies.

-ENDS-

For more information visit www.truscreen.com or contact:

TruScreen
Martin Dillon
CEO
martindillon@truscreen.com

TruScreen
Guy Robertson
CFO
guyrobertson@truscreen.com
Investors
Investor Relations
Phone: +61 2 9237 2801
TruScreen@we-buchan.com

About TruScreen:
Watch our video on TruScreen: http://truscreen.com/truscreen-the-company/truscreen- ultra-
video/
TruScreen is a Cervical Cancer Screening Device which
offers the latest technology in cervical screening,
providing real-time, accurate detection of pre-
cancerous and cancerous cervical cells to help improve
the health and well-being of women around the world.
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 tissues. A sophisticated proprietary algorithm
framework is utilised to detect pre-cancerous change, or
cervical intraepithelial neoplasia (CIN), by optical and
electrical measurement of cervical tissue.
TruScreen offers an alternative approach to cervical screening, resolving many of the ongoing
issues with Pap tests including failed samples, poor patient follow up, patient discomfort and
the need for supporting laboratory infrastructures. As such, TruScreen target market is
developing countries where no large scale cervical cancer screening programs and
infrastructure are in place, such as; China, Mexico, Africa, Russia and India. TruScreen’s cervical
cancer screening device is EC certified for use throughout Europe and CFDA approved for sale in
China. The global market potential for TruScreen is significant. At saturation, hundreds of
millions of women could benefit from this accurate and inexpensive cervical cancer screening
model.
For more information, visit our website at www.truscreen.com

---

TRUSCREEN LIMITED

Preliminary Financial Statements

For the Year Ended 31 March 2019

Contents


Page
Summary 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
2
PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2019
Note 2019 2018

$

$
Revenue from the sale of goods
3
2,142,949 804,062
Other income
3
976,202 1,374,581
Changes in inventories

27,375 (66,343)
Purchases of inventory

(1,362,212) (741,607)
Employee benefit expenses and directors’ fees

(1,240,646) (1,419,333)
Administration

(570,368) (578,497)
Research and development expenses

(1,777,972) (1,905,710)
Rent

(104,366) (97,471)
Travel

(65,829) (97,901)
Marketing & product approvals

(427,246) (393,485)
Insurance

(99,268) (73,048)
Shareholder relations & services

(91,538) (95,675)
Foreign exchange loss

(316,027) (342,388)
Amortisation & depreciation

(565,781) (535,977)
Finance costs

(27,727) -
Loss before income tax

(3,502,454) (4,168,792)
Income tax expense

- -
Loss for the period

(3,502,454) (4,168,792)
Other comprehensive income


Item that may be reclassified subsequently to
profit or loss


Exchange differences on translating foreign
subsidiary operations

102,179 (17,671)
Other comprehensive (loss)/income for the period

102,179

(17,671)
Total comprehensive loss for the period

(3,400,275)

(4,186,463)



Basic and diluted losses per share (cents)

(1.67) (2.1)

TRUSCREEN LIMITED
3
PRELIMINARY CONSOLIDATE FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2019
Note 2019 2018
$ $
CURRENT ASSETS
Cash and cash equivalents 1,737,775 1,212,454
Other receivables 3 805,517 1,314,456
Loan receivable 75,000 75,000
Trade receivables 467,504 -
Goods and services tax recoverable 30,335 155,849
Inventories 782,026 401,185
Other assets – prepayments 21,552 55,556
TOTAL CURRENT ASSETS 3,919,709 3,214,500
NON-CURRENT ASSETS
Plant and equipment 379,993 7,536
Intangible assets 8,261,063 8,944,813
TOTAL NON-CURRENT ASSETS 8,641,056 8,952,349
TOTAL ASSETS 12,560,765 12,166,849

CURRENT LIABILITIES
Trade and other payables 574,031 419,491
Borrowings 626,501 -
Provision for employee benefits 109,925 109,162
TOTAL CURRENT LIABILITIES 1,310,457 528,653
NON-CURRENT LIABILITIES
Provision for employee benefits 51,499 22,314
TOTAL NON-CURRENT LIABILITIES 51,499 22,314
TOTAL LIABILITIES 1,361,956 550,967
NET ASSETS 11,198,809 11,615,882

EQUITY
Issued capital 26,421,168 23,433,996
Share option reserve - 3,970
Foreign currency translation reserve (454,796) (556,975)
Accumulated losses (14,767,563) (11,265,109)
Total Equity 11,198,809 11,615,882

TRUSCREEN LIMITED
4
PREMININARY CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2019



Share
Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserve
Option
Reserve

Total

$

$
$ $
$



Balance at 1 April 2018
23,433,996 (11,265,109)
(556,975)
3,970 11,615,882
Loss for the period to 31
March 2019

- (3,502,454) - - (3,502,454)
Exchange differences on
translating foreign
subsidiary operations

- - 102,179 - 102,179
Total comprehensive
income for the period

- (3,502,454) 102,179 - (3,400,275)
Transactions with owners, in their capacity as owners


Issue of shares
3,075,470 -
-

(3,970)
3,071,500
Share issue cost
(88,298) -
-
- (88,298)
Total transactions with
owners

2,987,172 -
-

(3,970)
2,983,202
Balance at 31 March 2019
26,421,168 (14,767,563)
(454,796)
- 11,198,809

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

- (4,168,792) - - (4,168,792)
Exchange differences on
translating foreign
subsidiary operations

- - (17,671) - (17,671)
Total comprehensive
income for the period

- (4,168,792) (17,671) - (4,186,463)
Transactions with owners, in their capacity as owners



Issue of shares re share
placement plan

897,500 -
-

-
897,500
Share issue cost

(40,849)



(40,849)
Issue of or subscription for
ordinary shares on exercise
of option

776,760 -
-

(155,354)
621,406
Lapse of share option
- 13,476
-
(13,476) -
Total transactions with
owners

1,633,411 13,476
-

(168,830)
1,478,057
Balance at 31 March 2018
23,433,996 (11,265,109)
(556,975)
3,970 11,615,882

TRUSCREEN LIMITED
5
PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2019

Note 2019 2018

$

$
CASH FLOW FROM OPERATING ACTIVITIES

Cash received from customers 1,675,445 1,019,183
Cash paid to suppliers and employees including GST (5,810,337) (5,577,047)
Cash received 43.5% refundable tax offset 1,472,566 808,167
Interest paid (27,644) -
Interest received 11,647 20,506
Net cash from operating activities 4 (2,678,323) (3,729,191)

CASH FLOW TO INVESTING ACTIVITIES
Purchase of plant and equipment (410,031) (3,110)
Net cash to investing activities (410,031) (3,110)

CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of shares 3,075,470 1,443,908
Share issue costs (88,296) (170,724)
Proceeds from borrowings 626,501 -
Net cash from financing activities 3,613,675 1,273,184

Net increase/(decrease) in cash and cash
equivalents

525,321 (2,459,117)
Cash and cash equivalents at the beginning of the
financial year

1,212,454 3,671,571
Cash and cash equivalents at the end of the
financial year

1,737,775 1,212,454

TRUSCREEN LIMITED
NOTES TO THE PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS\
FOR THE YEAR ENDED 31 MARCH 2019
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”). References to “Truscreen” are used to refer both to the Group
and Truscreen Limited (the “Company”).
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 registered under the Companies Act
1993. Truscreen is listed on the NZX. Truscreen is a FMC reporting entity under Part 7 of the Financial
Markets Conduct Act 2013.
The registered office of the Company is Level 6 Equitable House, 57 Symonds St, Grafton, Auckland 1010,
New Zealand. The Group is engaged in the business of the development, manufacture and sale of cancer
detection devices and systems.

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.
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 statement for the year ended 31 March 2018,
with the exception of new accounting standards for Revenue Recognition NZ IFRS 15 and Financial
Instruments NZ IFRS 9.

Basis of Consolidation
The following entities and the basis for their inclusion for consolidation in these Financial Statements are
as follows:

Principal
Place of
Business
Ownership Interest
Held by the Group
Name of
subsidiary
Principal Activity 2019 2018
Truscreen Pty
Ltd
Australia Owns the rights to the Truscreen Cervical
Cancer screening system. Principal
operations centre.
100% 100%
Truscreen Ltd
(UK)
United
Kingdom
Holds European Community Compliance
(CE Mark). Trades to the extent necessary
to satify requirement for VAT registration
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 2019
7

NOTE 2. SIGNIFICANT 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 Intangible Assets
Intangible assets include assets acquired at cost, net of amortisation charges, of $5,884,530 (2018 -
$6,381,916) and costs of development of the Truscreen Gen2 device, net of amortisation charges, of
$2,376,533 (2018 - $2,562,897).
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 development phase are somewhat uncertain.

.
NOTE 3. REVENUE



2019 2018


$ $
Sales revenue - sale of goods

2,142,949 804,062
Other income


Research and development tax offset¹

964,121 1,354,075
Interest received

11,854 20,506
Other

227 -


976,202 1,374,581
¹Of the research and development tax offset, $805,517 is a ‘other receivable’ balance at reporting date.

TRUSCREEN LIMITED
NOTES TO THE PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS\
FOR THE YEAR ENDED 31 MARCH 2019
8

NOTE 4. CASH FLOW INFORMATION

2019 2018
$ $
Reconciliation of cash flow from operations with loss
after income tax


Loss for the period
(3,502,454)
(4,168,792)
Adjusted for:
Depreciation and amortization 565,782 535,977
Unrealised exchange difference arising from
translating loss items at the date of transaction and
translating cash balances at year end rates

253,750 243,810
Operating cash flows before working capital changes
(2,682,922)
(3,389,005)
Decrease/(increase) in trade and other receivables 41,434 (305,268)
Decrease/(Increase) in goods and services taxes
recoverable

125,514 (86,454)
Decrease in prepayments 34,004 64,591
(Increase)/Decrease in inventory
(380,841)
23,295
Increase/(Decrease) in trade and other payables 154,541 (95,221)
Increase in employee liabilities 29,947 58,871
Net cash to operating activities
(2,678,323)
(3,729,191)

---

This document relates to Truscreen Limited’s (“the Company”) unaudited financial results for the
year ended 31 March 2019, released to the NZX on 30 May 2019. These results are in the
process of being audited.

Results for announcement to the market
Name of issuer Truscreen Limited
Reporting Period 12 months to 31 March 2019
Previous Reporting Period 12 months to 31 March 2018
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$2,143 +166%
Total Revenue $3,119 +43%
Net loss from continuing
operations
($3,502) +16% Improvement
Total net profit/(loss) ($3,502) +16% Improvement
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0135 $0.0132
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For commentary on the results please refer to the commentary
on the related NZX release.
Authority for this announcement
Name of person

authorised
to make this announcement
Martin Dillon (Chief Executive Officer)
Contact person for this
announcement
Martin Dillon (Chief Executive Officer)
Contact phone number + 61 2 8999 3896
Contact email address martindillon@truscreen.com
Date of release through MAP

30 May 2019

The information below is required by Appendix 1 of the NZX Listing Rules:

1.1 Details of the reporting period and the previous reporting period

The reporting period is for the year ended 31 March 2019 (“current year”) with the comparative
period being for the year ended 31 March 2018 (“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 2019.

(b) A statement of financial position
Refer to the Preliminary Consolidated Financial Statements for the year ended 31 March 2019.

(c) A statement of cash flows
Refer to the Preliminary Consolidated Financial Statements for the year ended 31 March 2019.

(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 2019.

(g) Net tangible assets per security
Net tangible assets per share at 31 March 2019 was 1.35 cents (31 March 2018: 1.32 cents per
share).

(h) Details of entities over which control has been gained or lost during the period
There are no other entities over which control has been gained or lost during the period.

(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 2019.

(l) Unaudited Financial Statements
The Preliminary Consolidated Financial Statements for the year ended 31 March 2019 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.

2.1 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), International Financial Reporting
Standards (IFRS) and other applicable New Zealand Financial Reporting Standards, as
appropriate for profit-oriented entities. They also comply with International Financial Reporting
Standards.

2.2 Accounting
Refer to Statement of Accounting Policies in the Preliminary Consolidated Financial Statements
for the year ended 31 March 2019.

2.3 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 2018. The Company has adopted the new
accounting standards for Revenue Recognition NZ IFRS 15, and Financial Instruments NZ
IFRS 9 during the year.


2.4 Audit Report
The Preliminary Consolidated Financial Statements for the year ended 31 March 2019 have not
been audited.

2.5 Additional information
Not applicable.


The Preliminary Consolidated Financial Statements were approved by the Board of Directors on
29 May 2019.



Anthony Ho
Chairman