Appendix 4D and Interim Financial Report

Revenue from activities

Foreign Exchange Gain/(Loss)

Other Income

Interest income

Revenue excluding interest income

Earnings before interest expense, tax, depreciation and amortisation (EBITDA)

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Earnings/(losses) per share attributable to the ordinary equity holders of the company (cents per security):

Please refer to the Directors' Report - Review of Operations for further information on the Company operations over the past 6 months.

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Contents

Directors' Report

Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income Interim Consolidated Statement of Financial Position

Interim Consolidated Statement of Changes in Equity

Interim Consolidated Statement of Cash Flows

Notes to the Interim Consolidated Financial Statements

Directors' Declaration

Auditor's Independence Declaration

Independent Auditor's Review Report

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Your Directors present their report on the consolidated entity consisting of Austco Healthcare Limited (Austco) and the entities it controlled at the end of, or during, the half year ended 31 December 2021.

Directors

The following persons were Directors of Austco Healthcare Limited during the half year and up to the date of this report:

Principal Activities

The Company's principal activities during the half year were the manufacture, supply, and service of healthcare and electronic communications equipment.

Auditors independence

The Auditors independence declaration can be found on page 14 of this report.

Financial performance

Revenue from ordinary activities (customers) increased by 14.7% to $15.953 million compared to the previous corresponding period due to increased sales and improved access to hospital and aged care sites. The impact of COVID- 19 restrictions remains a risk for the business to continue to manage, although the frequency and duration of restrictions are decreasing as more regions move to a "learning to live with COVID" model as opposed to an elimination strategy. The increased revenue was attributed to the North America and Asia markets, whilst we observed decreased revenues from Australia correlating to the impacts of lockdowns.

Whilst raw material shortages continue to impact our supply chain, we have successfully procured difficult to source materials and substituted with alternative raw components where needed, thereby reducing the ongoing impact of the supply chain crisis.

In addition, the Company received Other Income comprising mainly of continued COVID-19 related stimulus payments (mainly from the USA and Canada) of $0.660 million compared to $0.728 million of Other Income in the prior corresponding period.

Software and Software Maintenance Agreements (SMA) revenues at 15.3% of revenue from clients were up from 13.6% in the prior corresponding period. This equates to an increase of $0.544 million in revenues from SMA's.

Gross profit margins from operations (excluding Other Income) also increased from 51.4% to 52.9% compared to the previous corresponding period, driven by the growth in SMA revenues.

Overhead expenses increased from $6.809 million to $7.325 million over the previous corresponding period. This is still below our pre COVID-19 level of Overhead Expenses which were running at $7.700 million.

EBITDA increased 55% from $1.570 million to $2.440 million compared to the previous corresponding period.

Net profit after tax (NPAT) increased 83% to $1.511 million compared to $0.826 million from the previous corresponding period.

Net tangible assets have increased from 4.11 cents to 5.56 cents per share compared to the previous corresponding period.

Cash at 31 December 2021 was $7.1 million, slightly lower than the June 2021 balance of $7.8 million.

We have seen our Inventory levels increase by $2.4 million since June 2021. The increase arises from (a) strategic purchases of additional raw materials and products to offset the risks of supply chain interruptions and (b) from inventories manufactured for our Open Sales Orders, where delivery (and revenue recognition) has not yet occurred.

Cashflow from operating activities was positive $0.365 million for the 6 months ended 31 December 2021, which was pleasing given the buildup of our inventory levels by $2.390 million. Cash used in investing activities was $0.843 million, of which $0.700 million related to investing in R&D to continue to build out new features from our road map.

Final Dividend: The directors have not declared a final dividend. The Company continues to focus on working capital requirements, R&D investment as well as investigating acquisition opportunities.

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Operating performance

Revenue from customers in the six months to December 2021 continues to be COVID-19 affected, with access to hospital and aged care sites restricted, thereby impacting our ability to install our products in these facilities. Whilst some regions in our business, like the US and New Zealand, were less impacted as compared to others, all regions faced site access challenges during the reporting period. These restrictions impacted all of our three revenue streams: Hardware Equipment; Software; and Installation.

Despite the continued COVID-19 impact on the business, revenue from customers increased 14.7% against the previous corresponding period to $15.953 million.

Our open sales order book (confirmed orders from customers) continues to grow. It now stands at $24.5 million. This is a new company high and is up from the $20.1 million reported in August 2021 and the $22.9 million reported at our AGM in November 2021.

Growth in our open sales orders book comes from new contract wins as well as constraints in manufacturing and installing product due to COVID-19.

We announced two contract wins during the reporting period, both in Singapore, in July 2021 for $3.3 million and in November 2021 for $1.6 million. The latter of these contract wins was announced due to the annuity nature of its revenue. The majority of the revenue for both contract wins has yet to be recognised. The most recent example of a large order win is a $1.6 million order for the Princess Margaret Hospital in Toronto, Canada, received in February 2022.

The Company's continued success in being awarded contracts highlights the health of the Nurse Call industry and our position within the industry. This validates our continued investment in R&D to build market leading Nurse Call solutions that can compete on functionality in all markets around the globe.

Research & Development Expenditure

The Group invested $1.264 million in research and development for the 6 months ended 31 December 2021 (of which $0.772 million was capitalised) compared to $1.507 million for the previous corresponding period (of which $0.533 million was capitalised).

In the first half, the Company released new features and enhancements for its market-leadingreal-time-locating (RTLS) enabled call points and clinical workflow solutions.

Clinical workflow is one of the most powerful additions to the Tacera Nurse Call System. The Company's workflow features give healthcare organisations complete control over their processes. Workflow allows our customers to:

• Accurately monitor rounding compliance
• Streamline communication channels
• Record pain checks and other care initiatives
• Push data to a patient's chart
• Indicate staff presence or patient fall risk status

Rounding of amounts

The Group falls within ASIC Legislative Instrument 2016/191, and in accordance with the class order amounts in the Directors' Report and Interim Financial Report are rounded to the nearest thousand dollars, unless otherwise indicated.

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

Clayton Astles

Chief Executive Officer Melbourne

Dated 24 February 2022