TRUSCREEN PRELIMINARY RESULTS FOR FY2021

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Truscreen Group Limited
Reporting Period 12 months to 31 March 2021
Previous Reporting Period 12 months to 31 March 2020
Currency NZ Dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$1,133 (12%)
Total Revenue $1,976 (23%)
Net profit/(loss) from
continuing operations
$(3,490) 33%
Total net profit/(loss) $(3,490) 33%
Interim/Final Dividend
Amount per Quoted Equity
Security
N/A
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0174 $0.0088
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
See attached announcement
Authority for this announcement
Name of person

authorised
to make this announcement
Guy Robertson Chief Financial Officer
Contact person for this
announcement
Guy Robertson
Contact phone number +61 407 983 270
Contact email address guyrobertson@truscreen.com
Date of release through MAP

31 May 2021

Unaudited financial statements accompany this announcement.

---

NZX/ASX Announcement

31 May 2021
TruScreen FY21 Preliminary Results
(all numbers in New Zealand Dollars)

Highlights
• Product revenues down 12% YOY given COVID-19 impact
• SUS units/revenues up 20% YOY with China market showing strong recovery
• Successful capital raising during the year of $7.5m before costs, with $2m raised on
dual listing on the ASX
• Product registration submitted in 4 new markets in Central and Eastern Europe
• Commenced clinical evaluation in Saudi Arabia
• Appointment of Juliet Hull as interim CEO and Dr Dexter Cheung to the Board.
Cervical cancer technology company Truscreen Group Limited (ASX/NZX: TRU) (the Company)
has released its preliminary unaudited financial results for the year ended 31 March 2021. The
results reflect the impact of COVID-19 and show a 12% reduction in product revenues YOY, a 23%
reduction in total revenues that included a lower research and development refund offset claim
from the Australian Tax Office and expenses, excluding amortisation and impairment, in line with
the prior year.
Financial Results for the year ended 31 March 2021
Truscreen generated product sales of $1.1m (2020: $1.3m) a 12% decline with COVID-19 slowing
a number of markets. This reduction was mainly in the device category as a number of countries
halted screening programmes as health resources were diverted to COVID-19 management.
Pleasingly SUS offtake and usage increased by 20% YOY with China recovering strongly which
is expected to continue in the year ahead. China was the first country to progressively come out
of COVID-19 lockdown restrictions from April 2020.
Other income fell 33% to $0.84m (2020: $1.27m) primarily given a lower research and development
refund offset claim but included the benefit of COVID-19 government subsidies in the amount of
$0.27m.
Total overhead expenses, excluding depreciation, amortisation and impairment were consistent at
$4.8m. However, the current year included the termination costs of the previous CEO, of $0.26m,
legal and marketing costs associated with the dual listing on the ASX of $0.24m, and foreign
exchange losses on currency movements of $0.14m.
The Company incurred a total loss of $3.5m (2020: $5.2m, however 2020 included an impairment
charge of $2.4m and an exchange gain $0.11m). Net of the one-off costs outlined above the
notional underlying operating loss for FY2021 was $2.9m (2020: $2.9m).
Net operating cash outflow for the year was higher at $2.1m (2020: $1.6m) reflecting a significantly
lower research and development tax refund offset.

As at 31 March 2021, Truscreen had cash and cash equivalents of $5.3m (2020: $1.0m). The
Company is well funded to grow the business as markets recover from COVID-19.

Operational Performance and Update

Truscreen had a bitter-sweet 2021 financial year.

✓ We refreshed our leadership team and board of directors with skill sets to take the Company
forward, post the pandemic. We effected management changes to pivot our business to China
and Asia with greater collaborative engagement with our distributor network.
✓ We continue to seed and develop our early entry into Central and Eastern Europe with
applications for product registration and reimbursement lodged with several countries.
✓ We were well supported by shareholders and new investors when we successful raised $7.5
million during the year and successfully dual listed on the ASX.
✓ The transition of device manufacturing to Shenzhen, China was completed during the latter
half of the financial year. We expect commissioning of the project by our new contract
manufacturer to take place in July 2021.
✓ The Company intends to expand its medical product range to provide our distributors with
wider product access to their local markets.

Despite the COVID-19 challenges faced over the last 12 months, our distribution network has
remained committed to the TruScreen technology. They have been taking advantage of this time to
train healthcare practitioners and Key Opinion Leaders (KOL), host virtual educational seminars, and
continued their work with local government departments and private sector customers to prepare for
the recommencement of clinical and commercial activities in their territories.

There was an increase in publication of data from independent clinical studies, highlighting the
efficacy of the TruScreen device. We are pleased to continue to see such positive results and to
know that women around the world are benefitting from our technology.

China remains TruScreen’s key market with the installation rate of new TruScreen devices into
hospitals over the last 6 months showing strong recovery. Clinical trials and evaluations have resumed
and commercial usage of the TruScreen devices increasing, culminating in a record, circa 8,500
screening tests conducted in March 2021.

The TruScreen cervical cancer screening technology is gathering interest throughout China. Over 100
hospitals, have completed clinical evaluations/trials, and are progressing to approval/procurement
stages.

In Eastern Europe two new distributors were appointed, in mid-2020, covering 7 Central & Eastern
Europe (CEE) countries. Product registrations were also lodged with 4 countries. We expect these
countries will commence commercial activities within the 2021 calendar year.

To support the development of our CEE markets, TrueScreen has formed our new Central European
Advisory Board of KOLs. This board will steer local market access plans, reimbursement and cervical
cancer screening projects.

Appointments
During the year Truscreen appointed Ms Juliet Hull as a Non-Executive Director, and then to acting
Chief Executive Officer and Dr Dexter Cheung as a Non-Executive Director.
Ms Hull was the NZ General Manager/Country Director of Johnson & Johnson Medical (J & J), a
director of the ANZ Johnson & Johnson Medical Executive Board, and a member of both the APAC
Regional Leadership team for J & J’s Orthopaedics and Ethicon Divisions, until her resignation in
January 2021.
Ms Hull has more than 20 years’ experience in Asia Pacific markets in Healthcare sales, marketing
and leadership. Ms Hull is a director of MTANZ (Medical Technology Association of NZ) and NZX
listed Cannasouth Limited.
Ms Hull holds a Master of Business and Administration (Macquarie Graduate School of Management,
Sydney, Australia) and Bachelor of Nursing (Auckland University of Technology), Auckland, New
Zealand).
Dr Dexter Cheung was appointed as a Non-Executive Director in March 2021. Dr. Cheung is an
experienced medical device engineer and specialist in product research and development, with more
than 20 years’ experience. He is the Research & Development Manager of the respiratory
humidification division of Fisher & Paykel Healthcare, an NZX/ASX listed healthcare company.
Dr Cheung’s technical background in opto-electronics and expertise in medical device engineering is
highly relevant to TruScreen whose cervical cancer screening device harnesses optical and electrical
signatures for screening results.
Dr Cheung brings a strong understanding of manufacturing processes and has worked closely with
medical device manufacturers in China, USA, Europe, United Kingdom and Japan. Dr. Cheung holds
first-class honours degrees in Bachelor of Technology, and Master of Engineering and a PhD
(physics) from University of Auckland.
The Board bids farewell and thanks Prof. Ron Jones, Con Hickey and Chris Lawrence who retired
from the Board during the year.
This announcement approved for release by the Board.
-ENDS-
For more information, visit

www.truscreen.com or contact:
Juliet Hull
Chief Executive Officer
juliethull@truscreen.com
Guy Robertson
Chief Financial Officer
guyrobertson@truscreen.com

About TruScreen:
TruScreen cervical cancer screening device offers the latest technology in cervical screening, providing real-
time, accurate detection of precancerous 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 intra-epithelial 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
conventional Pap tests, including failed samples, poor patient follow-up, patient discomfort and the need for
supporting laboratory infrastructure. As such, TruScreen’s target market is low and middle-income 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 CE-marked and certified for use
throughout Europe and CFDA approved for sale in China. The global market potential for TruScreen is
significant.

---

TRUSCREEN GROUP LIMITED





Preliminary Final Report
Consolidated Financial Statements - Unaudited

Currency is New Zealand Dollars

For the Year Ended 31 March 2021


Contents
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 GROUP LIMITED
2

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2021
Note 2021 2020

$

$
Revenue from the sale of goods
3
1,132,641 1,288,242
Other income
3
843,274 1,266,040
Changes in inventories

- 960
Purchases of inventory

(732,603) (772,980)
Employee benefit expenses and directors’ fees

(1,180,425) (1,308,222)
Administration

(403,638) (494,438)
Research and development expenses

(1,288,197) (1,137,389)
Rent

(40,876) (47,225)
Travel

(4,192) (77,777)
Marketing & product approvals

(618,281) (430,656)
Insurance

(85,196) (87,410)
Shareholder relations & services

(295,163) (148,115)
Foreign exchange gain/(loss)

(136,200) 108,038
Amortisation & depreciation

(646,598) (597,830)
Impairment of non-current assets

- (2,380,000)
Finance costs

(34,556) (71,959)
Share based payments

- (306,000)
Loss before income tax

(3,490,010) (5,196,721)
Income tax expense

- -
Loss for the period

(3,490,010) (5,196,721)
Other comprehensive income


Item that may be reclassified subsequently to
profit or loss


Exchange differences on translating foreign
subsidiary operations


500,136 (259,903)
Other comprehensive income /(loss) for the period

500,136

(259,903)
Total comprehensive loss for the period

(2,989,874)

(5,456,624)



Basic and diluted losses per share (cents)
4
(1.08) (2.32)

TRUSCREEN GROUP LIMITED
3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
Note 2021 2020
$ $
CURRENT ASSETS
Cash and cash equivalents 5,255,074 1,024,153
Other receivables 558,485 684,250
Loan receivable - 75,000
Trade receivables - 107,018
Goods and services tax recoverable 44,233 17,510
Inventories 732,574 503,768
Other current assets – prepayments 105,931 136,442
TOTAL CURRENT ASSETS 6,696,297 2,548,141
NON-CURRENT ASSETS
Plant and equipment 307,092 295,048
Intangible assets 5,001,302 5,230,821
TOTAL NON-CURRENT ASSETS 5,308,394 5,525,869
TOTAL ASSETS 12,004,691 8,074,010

CURRENT LIABILITIES
Trade and other payables 452,594 293,141
Borrowings - 410,280
Provision for employee benefits 205,273 83,149
TOTAL CURRENT LIABILITIES 657,867 786,570
NON-CURRENT LIABILITIES
Provision for employee benefits 37,633 46,373
TOTAL NON-CURRENT LIABILITIES 37,633 46,373
TOTAL LIABILITIES 695,600 832,943
NET ASSETS 11,309,191 7,241,067

EQUITY
Issued capital 5 34,550,048 27,492,050
Share option reserve 5 306,000 306,000
Foreign currency translation reserve (214,563) (714,699)
Accumulated losses (23,332,294) (19,842,284)
Total Equity 11,309,191 7,241,067

TRUSCREEN GROUP LIMITED
4


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021

Note
Share
Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserve
Option
Reserve

Total

$

$
$ $
$



Balance at 1 April 2020
27,492,050 (19,842,284)
(714,699)
306,000 7,241,067
Loss for the year to 31
March 2021

- (3,490,010) - - (3,490,010)
Exchange differences on
translating foreign
subsidiary operations

- - 500,136 - 500,136
Total comprehensive
income for the year

- (3,490,010) 500,136 - (2,989,874)
Transactions with owners, in their capacity as owners


Issue of shares
7,489,968 -
-

-
7,489,968
Share issue cost
(431,970) -
-
- (431,970)
Total transactions with
owners

7,057,998 -


-
7,057,998
Balance at 31 March 2021
34,550,048 (23,332,294)
214,563
306,000 11,309,191


Note
Share
Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserve
Option
Reserve

Total

$

$
$ $
$



Balance at 1 April 2019
26,421,168 (14,645,563)
(454,796)
- 11,320,809
Loss for the year to 31
March 2020

- (5,196,721) - - (5,196,721)
Exchange differences on
translating foreign
subsidiary operations

- - (259,903) - (259,903)
Total comprehensive
income for the year

- (5,046,721) (259,903) - (5,456,624)
Transactions with owners, in their capacity as owners


Issue of shares
1,131,800 -
-

-
1,131,800
Share issue cost
(60,918) -
-

-
(60,918)
Employee share schemes –
value of employee services

- -
-

306,000
306,000
Total transactions with
owners

1,070,882 -
-

306,000
1,376,882
Balance at 31 March 2020
27,492,050 (19,842,284)
(714,699)
306,000 7,241,067

TRUSCREEN GROUP LIMITED
5
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021

Note 2021 2020

$

$
CASH FLOW FROM OPERATING ACTIVITIES

Cash received from customers 1,167,975 1,309,080
Cash paid to suppliers and employees including GST (4,207,886) (4,415,470)
Cash received from research and development tax
offset

689,167 1,645,985
Government subsidies 268,717 -
Short-term lease payments not included in lease
liability

(73,978) (111,002)
Interest paid (35,146) (71,959)
Interest received 1,820 8,867
Net cash from operating activities 6 (2,189,331) (1,634,499)

CASH FLOW TO INVESTING ACTIVITIES
Purchase of plant and equipment (97,524) -
Net cash to investing activities (97,524) -

CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of shares 7,489,968 1,131,800
Share issue costs (431,970) (60,918)
Repayment of borrowings (410,280) (626,501)
Proceeds from borrowings - 410,280
Net cash from financing activities 6,647,718 854,661

Net (decrease)/increase in cash and cash
equivalents

4,360,863 (779,838)
Cash and cash equivalents at the beginning of the
financial year

1,024,153 1,737,775
Effects of exchange rate changes on cash and cash
equivalents

(129,942) 66,216
Cash and cash equivalents at the end of the
financial year

5,255,074 1,024,153

6
TRUSCREEN GROUP LIMITED
NOTED TO THE PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information
These consolidated financial statements and notes represent those of Truscreen Group Limited (formerly
Truscreen Limited) and its subsidiaries (the “Group”). References to “Truscreen” is used to refer to
Truscreen Group Limited (the “Company”).
The parent company, Truscreen Group 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 and on the ASX as an ASX Foreign Exempt
Listing. 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
These financial statements have been prepared under the historical costs convention, modified by the
revaluation of certain assets and liabilities as identified in specific accounting policies below.
The principal accounting policies adopted in the preparation of the financial report are set out below.
These policies have been consistently applied to all the periods presented, unless otherwise stated.
The financial statements are presented in New Zealand Dollars. The financial statements have been
rounded to the nearest dollar.

Principles of Consolidation

The following entities and the basis for 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
2021 2020
Truscreen Pty Limited Australia Owns the rights to the Truscreen
Cervical Cancer screening system.
Principal operations centre
100% 100%
Truscreen Ltd (UK) UK 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%

7

TRUSCREEN GROUP LIMITED
NOTED TO THE PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021

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 $3,561,162 (2020 -
$3,715,877) and costs of development of the Truscreen Gen2 device, net of amortisation charges, of
$1,440,140 (2020 - $1,514,944). 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 early commercialisation phase are
somewhat uncertain.

NOTE 3. REVENUE

2021

2020

$ $
Sales revenue - sale of goods


Wholesalers/distributors

1,132,641 1,013,806
Direct to customer

- 274,436


1,132,641 1,288,242
Other income


Research and development tax offset


- Current year

549,109¹ 684,250
- Prior year adjustment

23,628 572,923


572,737 1,257,173
Interest received

1,820 8,867
Government subsidies

268,717 -


843,274 1,266,040

¹Included in other receivables balance at reporting date.

8


TRUSCREEN GROUP LIMITED
NOTED TO THE PRELIMINARY CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
NOTE 4. EARNINGS PER SHARE




2021 2020
Basic and Diluted loss per share:
Net loss attributable to shareholders - $ (3,490,010) (5,196,721)
Weighted average number of ordinary shares
on issue

323,761,703 224,416,746
Basic loss per share (cents) (based on weighted average
number of shares on issue) (1.08) (2.32)

NOTE 5. ISSUED CAPITAL

a) Ordinary Shares


2021 2021 2020 2020
Group
Number $ Number $
Balance at beginning of the year of fully paid
ordinary shares 227,534,804 27,492,050 216,857,441 26,421,168
Ordinary shares issued
Share issue May 2020 @ $0.05 per share
i
104,860,021 5,242,968 - -
Share issue December 2020 @ $0.07 per
share
ii
28,571,428 2,000,000 - -
Exercise of options
iii
1,900,000 247,000 - -
Shares issued via private placement
bi
- - 10,677,363 1,131,800
Share issue costs - (431,970) - (60,918)
Balance at 31 March 362,866,253 34,550,048 227,534,804 27,492,050
No particular number of shares are authorised. There is no par value of shares.
All issued ordinary shares carry equal rights in respect of voting and the receipt of dividends, and upon
winding up rank equally with regard to the Company’s residual assets.
Shares were issued during the:
a. current period:
i. the issue of 104,860,021 new shares at $0.05 per share raising $5.243m. The shares were issued
pursuant to a Share Purchase Plan, 40,000,000, and a share Placement Plan 64,860,021.
ii. the issue of 28,571,428 new shares via a placement and dual listing on the ASX, raising NZ$2.0
million at NZ$0.07 per share (A$0.065).
iii. the issue of 1,900,000 new shares on exercise of options at NZ$0.13 per share.
b. prior period:
i. via a share placement to professional and sophisticated investors (10,677,363 ordinary shares at
10.6 cents each)

9

b) Share Options

2021 2021
Weighted
2020 2020
Weighted
Group
Number $ Average
Exercise
Price
Number $ Average
Exercise
Price
Balance at beginning of
the year
19,677,363 306,000 13.9c - - -
Options issued¹ - - - 10,677,363 - 13c
Options issued² - - - 9,000,000 306,000 15c
Options exercised (1,900,000) - 13.0c - - -
Balance at end of year 17,777,363 306,000 14.0c 19,677,363 306,000 13.9c


¹Options issued on 12 July 2019 and 3 September 2019 as free attaching options on the basis of one
option per new share with exercise price of 13 cents per share and expiry date 12 July 2021.




²As approved by shareholders on 27 August 2019, options issued on 25 September 2019 to Directors
and senior managers with exercise price of 15 cents per share and expiry date 27 August 2022 (Note
20). The options were valued at $306,000 using the Black & Scholes method (see Note 20).


NOTE 6. CASH FLOW INFORMATION 2021 2020
$ $
Reconciliation of cash flow from operations with loss
after income tax


Loss for the period (3,490,010) (5,196,721)
Adjusted for:
Depreciation and amortisation
646,597
597,830
Impairment of non-current assets - 2,380,000
Share based payment expense - 306,000
Unrealised exchange difference arising from
translating loss items at the date of transaction

298,477 (188,764)
Operating cash flows before working capital changes
(2,544,936)
(2,101,655)
Decrease in trade and other receivables 182,018 80,486
(Increase)/decrease in goods and services taxes
recoverable

(26,718) 12,826
Decrease/(increase) in prepayments 30,511 (114,890)
(Increase)/decrease in inventory
(228,806)
278,258
Decrease in research and development tax offset 125,765 386,267
Increase/(decrease) in trade and other payables 241,451 (143,889)
Increase/(decrease) in employee liabilities
113,384
(31,902)
Net cash applied to operating activities
(2,189,331) (1,634,499)