ANTEOTECH LTD — Annual Report 2016

Aug 31, 2016

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30[th] June, 2016 Preliminary Financial Statements

Record 6 months for DIAsource underpins DIAsource acquisition strategy

Anteo 30[th] June, 2016 preliminary financial statements affirm the DIAsource acquisition strategy. The recently acquired subsidiary delivered record half year Revenue of €8.07m and improved Gross Margin of 48.3%.

A focus on building a foundation for growth and continuous improvement in the IVD market has seen DIAsource deliver seven from ten ‘bestquarter-ever’ quarters since 2014 in the company’s history (shown in blue).

The overall top-line growth has has been accompanied by an improvement of Gross Margin by 7% and EBITDA by 9% since 2012.

The DIAsource foundation for growth is based upon:

• Customer oriented capabilities to deliver customised services and market needs

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• Focusing on selected profitable product-market niche combinations

• A scalable quality controlled manufacturing and logistics infrastructure.

With this base platform established, DIAsource is ready to scale up and do more of the same by adding products to the manufacturing supply chain and opening additional geographical markets.

Profitable DIAsource to support and nurture potential of Anteo technology

Group CEO Dr Jef Vangenechten has a clear vision for building Anteo with the profitable and growing DIAsource business at the forefront that can support and nurture the development and commercialisation of the potential of Anteo’s coating technology. DIAsource will utilise its centrally located facility to leverage its business development capabilities, be a proving ground for Anteo technology and provide manufacturing and other infrastructure.

POC the focal point of Anteo technology recognition

At Anteo Technologies the commercial activities have experienced repeated recognition of Mix&Go capabilities in Point of Care both in the advancement of client products through regulatory processes and in scientific papers.

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Anteo battery application

The R&D group have exemplified the broad capability of the Anteo coating technology and delivered a range of products focused on specific life science applications, along with undertaking a number of successful third party validation projects. A strong commercial offering for the potential improvement of lithium ion batteries with a coherent IP strategy is now in place with its potential recognised in the battery industry. The depth and breadth of the medical device capability was developed further with a supporting set of patents applications.

Financial Summary

The Board of Anteo in recognition of the significance of its Euro based business activities has adopted the Euro as its reporting currency. The financial statements of the Anteo Group for the year ended 30[th] June 2016 are stated in Euro. Further, the combination of the DIAsource activities with those of Anteo has resulted in a more lengthy and complicated audit process that is not complete at the time of reporting. Accordingly, Anteo is issuing unaudited preliminary financial statements in the Appendix 4E.

The Anteo group financial statements incorporate the results of DIAsource for six months following the acquisition in January, 2016. The Group Revenue for the year ended 30[th] June, 2016 was €8,341,863. There was a Net Loss of €3,998,689 after expensing costs in relation to the acquisition of DIAsource amounting to €1,616,896 and R&D expenses of €2,694,087.

About Anteo Diagnostics Limited

Anteo Diagnostics Limited (ASX: ADO) is a global nanochemistry technology company, developing and commercializing products for the life sciences and clinical diagnostics, medical devices, and energy, and bioseparations markets. The Anteo Group owns a patented nanochemistry surface engineering technology which unites the strength and stability of covalent bindings with the gentleness of passive bindings through multi-point chelation. Used as a binder, coating or primer, Anteo’s reagents target high-value commercial applications in protein binding and anti-body coupling (e.g point of care devices), primers for in-vivo medical devices and medical drug delivery, and coatings in batteries, and this across a broad range of industry sectors.

Media contact – Lyndsey Douglas 0424203935

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Results for announcement to the market

This preliminary final report is based on accounts that are subject to final audit approval.

Current Reporting Period Previous Reporting Period

Current Reporting Period Previous Reporting Period	Current Reporting Period Previous Reporting Period	Current Reporting Period Previous Reporting Period	Current Reporting Period Previous Reporting Period	Current Reporting Period Previous Reporting Period
Year ended 30 June 2016 Year ended 30 June 2015
	up/down			€
Revenuefrom ordinary activities	up	472%	to	9,729,683
Lossfrom ordinary activities after tax attributable to members	up	36%	to	(3,998,689)
Net lossfor the period attributable to members	up	36%	to	(3,998,689)
Dividends / distributions	Amount per security		Franked amount per security
Interim dividend	0.0c			0.0c
Final dividend	0.0c			0.0c
The Directors do not propose or recommend the payment of a dividend Record date for determining entitlements to the dividend Not Applicable
		Not Applicable
Retained earnings Accumulated losses at the beginning of the financial year		Year ended 30 June 2016 € (25,570,584)		Year ended 30 June 2015 € (22,633,021)
Transfer of Share Option Reserve		211,519		1,250
Net loss for the year		(3,998,689)		(2,938,813)
		(29,357,754)		(25,570,584)
Net tangible assets Net tangible asset backing per ordinary share (AU Cents)		As at 30 June 2016 0.89		As at 30 June 2015 0.43

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Anteo Diagnostics Limited

Appendix 4E, preliminary final report Consolidated Income Statement.

Sales Cost of sales Gross profit Other revenue from ordinary activities Selling and distribution expenses Administration expenses Occupancy Expenses Borrowing costs Research and development expenses Loss from ordinary activities before income tax benefit Income tax benefit relating to ordinary activities Loss from ordinary activities after income tax benefit Basic earnings per share (cents per share) Diluted earnings per share (cents per share) Weighted average number of ordinary shares outstanding during the year used in the calculation of basic EPS Weighted average number of ordinary shares outstanding during the year used in the calculation of diluted EPS Total changes in equity other than those resulting from transactions with owners as owners	Year ended 30 June 2016 € 8,341,863 (4,067,367) 4,274,496 1,387,820 (2,121,467) (3,907,806) (450,978) (532,229) (2,694,087) (4,044,251) 45,562 (3,998,689) (3,998,689) (0.42) (0.42) 948,549,980 998,715,588	Year ended 30 June 2015 € 323,892 0
		323,892
		1,377,885 (1,239,989) (1,218,124) (12,042) (3) (2,170,431)
		(2,938,813) 0
		(2,938,813) (2,938,813)
		(0.35) (0.35) 840,306,068 894,576,436

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Anteo Diagnostics Limited

Appendix 4E, preliminary final report

Notes to the Income Statement

Notes to the Income Statement
1 Analysis of Revenues Revenues from operating activities Sale of goods Other revenue from operating activities Revenues from non-operating activities Interest - other corporations Grants and Subsidies R&D Tax Concession Other revenue from non-operating activities 2 Net revenue / (expense) since the beginning of the reporting period resulting from deductions from the carrying amounts of assets Depreciation of non current assets Sale on Non-Current Assets Loss on non-current assets written off	Year ended 30 June 2016 € 8,341,863 38,470 55,657 165,000 1,013,693 115,000 9,729,683 607,007 (32) 1,948 608,923	Year ended 30 June 2015 € 323,892 75,004 93,339 452,443 757,099 -
		1,701,776
		113,008 - -
		113,008

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Anteo Diagnostics Limited Appendix 4E, preliminary final report Consolidated Balance Sheet CURRENT ASSETS Cash assets Receivables Inventories Other TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Financial Assets Intangible Assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Payables Provisions Interest Bearing Liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Interest bearing liabilities Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Convertible Secutiries Option Reserve Foreign Exchange Reserve Accumulated losses TOTAL EQUITY	As at 30 June 2016 € 2,522,170 4,967,782 3,400,838 72,017 10,962,807 15,374,119 5,209 8,893,903 24,273,231 35,236,037 3,158,465 804,370 4,101,913 8,064,748 13,553,238 4,302,666 17,855,904 25,920,652 9,315,385 36,961,415 1,370,672 501,753 (160,701) (29,357,754) 9,315,385	As at 30 June 2015 € 3,574,829 166,779 - 36,852
		3,778,459
		370,848 - -
		370,848
		4,149,308
		237,524 175,469 -
		412,992
		- 65,159
		65,159
		478,151
		3,671,156
		28,395,668 - 676,683 169,390 (25,570,584)
		3,671,156

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Anteo Diagnostics Limited

Appendix 4E, preliminary final report Consolidated statement of cash flows.

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and grants Payments to suppliers and employees Borrowing costs Interest received Net cash (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Payment for investment in controlled entities Controlled Entity Cash Payment for non-current assets Payment for property, plant and equipment Net cash (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from share issues Proceeds from borrowings Proceeds from issue of converting notes Captial raising costs Repayment of borrowings Net cash (used in) provided by financing activities Net increase (decrease) increase in cash held Opening cash brought forward Exchange Rate Adjustments Closing cash carried forward	Year ended 30 June 2016 € 8,693,387 (13,678,855) (98,626) 55,412 (5,028,682) (15,422,341) 2,428,891 (55,162) (439,044) (13,487,656) 8,363,411 8,650,059 1,370,672 (382,256) (322,266) 17,679,620 (836,718) 3,574,829 (215,941) 2,522,170	Year ended 30 June 2015 € 1,513,980 (3,936,195) (3) 96,412
		(2,325,805)
		- - - (237,035)
		(237,035)
		1,333,652 - - -
		1,333,652
		(1,229,188) 4,883,041 (79,024)
		3,574,829

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Anteo Diagnostics Limited

Appendix 4E, preliminary final report Reconciliation of cash. Cash on hand Cash at bank Deposit at call Reconciliation of net loss after tax to net cash flows from operations Net Loss Non Cash Items Depreciation Net Loss on non-current assets written off Other Income Options Expense Changes in assets & liabilities (Increase) / decrease in trade debtors (Increase) / decrease in other current assets Increase/(Decrease) in trade creditors & accruals Increase / (Decrease) in other liabilities Foreign Exchange Adjustment Net Cash flow from operations	As at 30 June 2016 € 7,728 2,111,548 402,894 2,522,170 (3,998,689) 607,007 1,948 (115,000) 36,590 (4,801,004) (35,165) 2,920,941 597,416 (242,726) (5,028,682)	As at 30 June 2015 € 667 3,493,143 81,019
		3,574,829
		(2,938,813) 113,008 - - 380,984 (5,523) (29,821) 43,942 43,606 66,812
		(2,325,805)