Slide 1: Aroa Biosurgery (ARX) Full Year Results May 2023
AROA BIOSURGERY (ARX) FULL YEAR RESULTS MAY 2023 Unlocking regenerative healing for everybody
Slide 2: Important Notice and Disclaimer
|2 Important Notice and Disclaimer This presentation (Presentation) is dated 31st May 2023 and has been prepared by Aroa Biosurgery Ltd, New Zealand company number 1980577, ARBN 638 867 473 (AROA or the Company). Information in this Presentation The information in this Presentation is of a general b
Slide 3: AROA at a Glance
|3 AROA at a Glance Well established high-growth soft tissue regeneration company Four product AROA ECM™ platform families for new products, line extensions >US$3b1 TAM predominantly sold to US & enables AROA’s tissue apposition platform for existing products hospitals US Direct (AROA) and 6 million
Slide 4: AROA ECM – Structure & Biology for Regenerative Healing
|4 AROA ECM – Structure & Biology for Regenerative Healing Unique Extracellular Matrix (ECM) derived from ovine forestomach with proven tissue regeneration properties across multiple products1-6 1. Irvine, S. M., et al. (2011). "Quantification of in vitro and in vivo angiogenesis stimulated by ovine
Slide 5: Substantial Growth Opportunities > $3B TAM
|5 Substantial Growth Opportunities > $3B1 TAM Complex Wounds Soft Tissue Reconstruction Total Addressable Market Total Addressable Market > $1.8B2 USD > $1.3B3 USD e.g. Diabetic Foot Ulcers, e.g. Trauma, tumour removal, e.g. Hernia repair, abdominal Venous Ulcers, Pressure Ulcers, general surgery,
Slide 6: Substantial future opportunity
|6 Substantial future opportunity US Total Addressable Market1 3.5 3 Symphony Market 2.5 Myriad Market Endoform Market 2 Ovitex & Ovitex 1.5 PRS Market Aroa Sales 1 TelaBio Sales 0.5 Existing sales are fraction of TAM 0 FY20 FY21 FY22 FY23 1. Estimate of potential market size only. Idata, Soft Tissu
Slide 7: Enivo – Tissue apposition platform
|7 Enivo1 – Tissue apposition platform US Total Addressable Market >$1B (AROA management estimate) 1. New product platform, not yet available for sale. US regulatory clearance received to date only for certain components of the Enivo system.
Slide 8: FY23 Key Financial Results
|8 FY23 Key Financial Results NZ$60.5m1 84%1 NZ$1.5m1 Product Revenue vs. Product Gross Margin Normalised EBITDA3 Guidance2 NZ$60-62m vs. Guidance2 84% vs. Guidance2 ~ breakeven Total revenue ~ NZ$63.4m1 84% ~NZ$45m Cash Balance 1. Presented on a reported basis. 2. Guidance was provided on a constan
Slide 9: Products sales
|9 Products sales TotalProduct ProductSales Sales EndoformSales Endoform Sales 13 12% YoY growth 70 12 NZ$m 55% YoY growth 11 60 10 9 FY20 FY21 FY22 FY23 50 81% YoY growth MyriadSales Myriad Sales 268% YoY growth 40 15 NZ$m 10 NZ$m 30 5 0 FY20 FY21 FY22 FY23 20 TELA Bio Telabio Sales Sales 10 40 41%
Slide 10: Total AROA ECM sales
| 10 Total AROA ECM sales 70 Total Product Sales 46% YoY growth 60 50 Aggregate sales by AROA and TELA Bio 52% YoY growth to customers. AROA receives ~ 27% of 40 TELA Bio’s net product sales of US$m OviTex/OviTex PRS. 30 18% YoY growth 20 10 0 FY20 FY21 FY22 FY23
Slide 11: Sales expansion
| 11 Sales expansion Salespeople Salespeople Myriad Active Myriad Active Accounts Accounts 1 28% YoY growth 180 131% YoY growth Endoform Myriad 50 160 45 140 40 120 35 100 30 25 80 20 60 15 40 10 5 20 0 0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 1. Represents accounts to which sales were made at the
Slide 12: Manufacturing
| 12 Manufacturing Product Gross Gross Margin Margin Manufacturing Manufacturing Capacity Facility Capacity 85% 8% improvement 200 295% increase 80% 150 NZ$m 75% 100 70% 50 65% 0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Ongoing margin improvements Expanded capacity CAPEX CAPEX (Manufacturing) (Manufa
Slide 13: Use of Funds
| 13 Use of Funds Cash on Hand1 Cash On Hand 60 50 40 NZ$m 30 20 10 0 FY20 FY21 FY22 FY23 Sales & Marketing Expenses R&D Spend 40 15 20% % of Product 30 10 21% Sales NZ$m NZ$m 30% 20 23% Capitalised 5 Other 10 ENIVO 0 0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 1. As at 31 March of the relevant year.
Slide 14: Investing to transform clinical outcomes
| 14 Investing to transform clinical outcomes Impact of ENIVO Investment on EBITDA • Business highly profitable setting aside large investment Normalised EBITDA ENIVO Normalised EBITDA (excl ENIVO) in ENIVO (orange bars) 10 • Sacrificing short-term profitability for longer term 8 competitive advanta
Slide 15: Additional highlights
| 15 Additional highlights Myriad sales - major growth driver: Myriad Matrix™ &, Myriad Morcells™ (FY23 233% YoY growth), with Myriad Morcells Fine launched in May ’23. Symphony™: Launched SAWC Spring (April ’23) into changing outpatient reimbursement landscape. US GPOs: Recent Premier contract adds
Slide 16: FY24 Guidance
| 16 FY24 Guidance1 NZ$72-75m 85% NZ$1-2m Product Revenue (YoY CC Product Gross Margin Normalised EBITDA growth 25 – 30%) Total revenue ~ NZ$73-76m 1. All guidance is presented on a constant currency ('CC') basis using a NZ$/US$ exchange rate of 0.65, compared to the average exchange rate of 0.62 in
Slide 17: Financial outlook - Revenue growth & profitability
| 17 Financial outlook1- Revenue growth & profitability Guidance Constant Currency @ US$0.62 @ US$0.65c 2022 2023 2024 2024 FY24+3 years • FY24 revenue growth of 25–30%, with NZ$m NZ$m YOY % NZ$m YOY % NZ$m % of revenue Myriad the key driver Product revenue 43.8 60.4 38 76 – 79 25 -30 72 – 75 25%+ Y
Slide 18: FY24 Catalysts & Milestones
| 18 FY24 Catalysts & Milestones AROA Sales TELA AROABioSales Sales Symphony Product Post-COVID Launch Momentum Momentum Momentum COVID-19 expected to have a reduced impact for remainder of FY23 Sales team expansion, increasing Well suited to evolving Major growth driver. Myriad Morcells Fully dedic
Slide 19: Q&A
? Q&A Unlocking regenerative healing for everybody
Slide 20: Contacts
CONTACTS Simon Hinsley Matt Wright Sarah Tora Investor Relations Media Corporate Communications Manager m +61 401 809 653 m +61 451 896 420 m +64 21 531 043 shinsley@aroabio.com matt@nwrcommunications.com.au sarah.tora@aroabio.com Visit our website www.aroabio.com and find us on LinkedIn at www.link