Uscom Limited · ASX:UCM

Uscom — Investor Presentation (July 2015)

41 slides from Uscom's investor presentation, Jul 20, 2015

1. Slide 1: Global Momentum

   Investor Presentation July 2015 For personal use only Global Momentum Rob Phillips PhD(med), MPhil(med), FASE, DMU(cardiol) Associate Professor, Critical Care Research Group, School of Medicine, The University of Queensland CEO The Measure of Life

2. Slide 2: Disclaimer

   Disclaimer For personal use only This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, fina

3. Slide 3: Video reference

   For personal use only See video at news.bbc.co.uk/2/hi/uk_news/england/nottinghamshire/8525901.stm or on Uscom YouTube channel 3

4. Slide 4: Uscom Vision

   Uscom Vision For personal use only Company of the Year, 2014 Johnson & Johnson Innovation Industry Excellence Awards “A milestone driven Australian bio device company with real products, real revenue and real growth which is approaching profitability” 4

5. Slide 5: Current Business

   Current Business For personal use only  Premium noninvasive cardiovascular monitoring devices  Addressing the growing threat of superbugs  Validated, clinically accepted, cost and life saving devices  Patent protected with regulatory approvals and full ownership of IP  Rapidly growing revenues

6. Slide 6: Current Products

   Current Products For personal use only USCOM 1A BP+ Cardiac Output Monitor Blood Pressure Monitor USCOM 1A BP+  World leading technology offering huge potential  Next generation blood pressure monitoring savings to global healthcare systems providing central and brachial BP measurement  Sold into

7. Slide 7: Strong Competitive Advantage

   Strong Competitive Advantage For personal use only USCOM 1A BP+ Cardiac Output Monitor Blood Pressure Monitor USCOM 1A BP+  Measures flow at heart  Measures pressure at heart  Noninvasive – replaces catheters  Noninvasive – replaces catheters  Addresses superbug threat  Superior to “arm” press

8. Slide 8: Targeting Strong Revenue Growth…

   Targeting Strong Revenue Growth… For personal use only USCOM 1A BP+ Cardiac Output Monitor Blood Pressure Monitor USCOM 1A BP+  US$1.3bn global market with CAGR of 7.6%**  US$1.7bn global market with CAGR of 11.5%**  Increasing unit sales globally  US$7m China distribution agreement signed**** 

9. Slide 9: …to Continue Recent Trends

   …to Continue Recent Trends For personal use only On track to break even in 2016 by continuing 60%+ revenue growth Sales Revenues Annual Net Loss $1,600k 2011 2012 2013 2104 2015* 2016* Quarterly $1,400k $0k Cumulative Annual Sales $1,200k -$500k $1,000k -$1,000k $800k $600k -$1,500k $400k -$2,000k $

10. Slide 10: USCOM 1A Around the World

    USCOM 1A Around the World For personal use only • • •• • • ••• •••• ••• ••• • •• • •• • • • • • • • • Key Markets •• 1. Nth America • •• 2. Europe 3. AsiaPAC Over 700 USCOM units sold worldwide 10

11. Slide 11: Uscom Growth

    Uscom Growth For personal use only Fluid, Sepsis Hypertension & COPD & Heart Failure Vascular Health & Asthma  US 1.3bn market *  US 1.7bn market *  US 400m market *  CAGR of 7.6% *  CAGR of 11.5% *  CAGR of 6.5% * USCOM 1A BP+ Unmet Need Cardiac Output Monitoring Blood Pressure Monitoring Pul

12. Slide 12: Thor Acquisition – the Next Step

    Thor Acquisition – the Next Step For personal use only Uscom has signed an agreement to acquire 100% of Thor Laboratories * Company Overview 2014 Financials  High fidelity digital Doppler spirometry devices  Sales revenue of $500k  Established ISO manufacturing - 15 years  Costs of $450k  Globa

13. Slide 13: Deal Rationale and Structure

    Deal Rationale and Structure For personal use only Deal Structure Revenue Synergies Total Consideration  Established complementary distribution channels $1 million  Complementary product sets =  Suited to huge China/US home care markets Upfront Cost & Development Synergies $700k cash  Low cost,

14. Slide 14: Uscom Growth

    Uscom Growth For personal use only Fluid, Sepsis Hypertension & COPD & Heart Failure Vascular Health & Asthma  US 1.3bn market *  US 1.7bn market *  US 400m market *  CAGR of 7.6% *  CAGR of 11.5% *  CAGR of 6.5% * USCOM 1A BP+ Thor Cardiac Output Monitoring Blood Pressure Monitoring Pulmonary

15. Slide 15: Thor Manufacturing

    Thor Manufacturing For personal use only  Global approvals  Manufacturing and R&D  Experienced engineers  Established reputation  USCOM and BP+ reserve  University Budapest links Internationally ISO accredited medical device manufacturing 15

16. Slide 16: Thor Products

    Thor Products For personal use only Products in Market Products in Development Digital Doppler Spirometer Prototype 1 Home use Drug delivery measure With Diagnostics and WIFI Prototype 2 Digital wifi spirometer Digital wifi spirometer Professional System Prototype 3 Desktop with advanced software an

17. Slide 17: Uscom Post-Acquisition

    Uscom Post-Acquisition For personal use only Manufacturing Products Distribution Sales and R&D Partners Revenue* $1.0m 40 Thor 18 7 $2.5m 36 Uscom 3 2 Thor’s cost per head 2 products Attractive diversified Immediate 1/7 of Uscom’s to 9 products offering top line impact 17 * Estimated 2016 revenues

18. Slide 18: Acquisition and Growth

    Acquisition and Growth For personal use only More products and increased distribution in US, Europe and Asia 2015 US Euro Asia Revenue 1A $0.2 $0.8 $1 $2 Revenue BP+ $0 $0 $0 $0 Thor $0 $0.5 $0 $0 $2m 2020 US Euro Asia Revenue 1A $2 $2 $3 $7 Revenue BP+ $3 $3 $3 $9 $20m Thor $1 $1 $2 $4 18 $20m reve

19. Slide 19: $20m Revenue by 2020

    $20m Revenue by 2020 For personal use only Thor Projected Revenues $18 m $16 m BP+ $14 m $12 m $10 m $8 m $6 m USCOM $4 m $2 m $0 m 2015 2016 2017 2018 2019 19 $20m revenue in 2020 delivers a 5 year CAGR of 58%

20. Slide 20: Key Goals & Milestones

    Key Goals & Milestones For personal use only  Core focus is driving distribution to increase sales and grow revenue  Key steps are reimbursement, regulatory approval and more distributors  Active IR/capital markets program to address liquidity  Also boosting resources to bed down Thor acquisitio

21. Slide 21: Key Business Risks & Mitigants

    Key Business Risks & Mitigants For personal use only Key Risks Key Mitigants  Thor integration & key staff retention  Earn outs in Thor deal structure  Ongoing Thor business management  Senior sales and marketing resource;  Competitiveness of market sectors increased marketing spend  Thor dist

22. Slide 22: July 2015 Capital Raise

    July 2015 Capital Raise For personal use only  Raise managed by Patersons Securities  Cornerstone private placement (PP) and share purchase plan (SPP) Indicative Raise Overview  10m PP + 2m SPP shares (vs. 80m currently on issue) Issuance Volume *  3.3m options Issue Price $0.15 per share Attach

23. Slide 23: Thor Acquisition – Value at many levels

    Uscom For personal use only Thor Acquisition – Value at many levels New product suite ✓ Accredited manufacturing ✓ Skilled personnel ✓ Revenue ✓ Increased distribution ✓ 23

24. Slide 24: Appendices

    For personal use only Appendices

25. Slide 25: Uscom Products

    Uscom Products For personal use only Three product ranges each at commercialization phase Global Profit Concept Product Pilot Validation Regulatory Revenue Distribution 2016 USCOM ✓ ✓ ✓ ✓ ✓ ✓ ✓ ±✓ Uscom BP+ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ±✓ Thor ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Turning unrecognised IP into balance sheet value 25

26. Slide 26: Regulatory Strategy

    Regulatory Strategy For personal use only  All devices CE and TGA approved  Device FDA approval in process  Next step is CFDA approval USCOM 1A BP+ Thor FDA ✓ ✓ P CE ✓ ✓ ✓ CFDA ✓ P -- TGA ✓ ✓ ✓ ✓ Approved P Preparation for submission - Not yet submitted 26

27. Slide 27: Reimbursement Strategy

    Reimbursement Strategy For personal use only Reimbursement consultant appointed USCOM 1A Uscom BP+ Thor MSAC (Aus) Initiated Background Existing CPT (USA) Background Granted Existing NHS (UK) Review Background Existing ROW - - - Timelines  USCOM 1A: Australia Aug 2015; UK Oct 15; US 2016  BP+: Aus

28. Slide 28: USCOM Saving Lives

    USCOM Saving Lives For personal use only National ICU Study – Sepsis and septic shock mortality 6yr Australian Practice Audit ANZICS CORE Adult database 30 25 20 15 10 BUSH protocol introduced 5 0 2006 2007 2008 2009 2010 2011 2012 Bathurst USCOM Australia Australian Rural Smith BE, Phillips RA, Mad

29. Slide 29: USCOM Saving Lives

    USCOM Saving Lives For personal use only  10 Million women get pre-eclampsia per year  76,000 mothers die per year (200 per day) and 500,000 unborn babies (1300 per day)  Early detection and treatment associated with better outcomes  USCOM detects pre-eclampsia at 5 weeks not 20 weeks as current

30. Slide 30: USCOM Reducing Costs

    USCOM Reducing Costs For personal use only National ICU Study 6 yr Australian Practice Audit ANZICS CORE Adult database Mean Cost per Admission 2007- 2012 $60,000 $48,000 $50,000 $41,645 $40,000 $30,000 $26,273 $20,000 $10,000 $0 Australian Australian Rural BUSH Mean cost per hospitalisation for sep

31. Slide 31: De-Risked Technology

    De-Risked Technology For personal use only Featured in 400+ peer reviewed publications and presentations Sepsis, Heart failure, Hypertension, Fluid management, Emergency, Pediatrics, Cardiac transplantation, Electrophysiology, Emergency transport, Anesthesia, Liver transplantation, ICU, Pre-eclampsi

32. Slide 32: USCOM 1A Competitive Advantage

    USCOM 1A Competitive Advantage For personal use only Non- SV beat Method Manufacturer Technology Rel+Rep invasive Simple Cost Portable to beat USCOM 1A Uscom Doppler ✓ ✓ ✓ ✓ ✓ ✓ BioZ Samsung BioImpedance ✗ ✓ ✓ ✗ ✓ ✗ NiCOM Cheetah BioReactance ✗ ✓ ✓ ✗ ✓ ✗ Nexfin Bmeye APP ✗ ✓ ✓ ✓ ✓ ✗ CardioQ Deltex D

33. Slide 33: Testimonials

    Testimonials For personal use only “This machine is saving lives, there are no two ways about it.” Professor Brendan Smith, Anesthetist, Intensivist and Emergency Physician, N.S.W. Dept of Health, Australia “USCOM has changed the way I look at the cardiovascular status of my patients. It’s part of t

34. Slide 34: BP+ Competitive Advantage

    BP+ Competitive Advantage For personal use only Uscom BP+ TensioMed BPLab IEM Centron AtCor Australia Hungary Russia Germany UK Australia USD 3,950 USD 6,000 USD 7,000 USD 7,000 USD 6,300 USD 14,000 1 min 2 min 2 min 2 min 1 min 1 min Stand-alone ABP, needs ABP, needs ABP, needs Stand-alone Needs co

35. Slide 35: Why ?

    Why ? For personal use only Independent research from Cambridge University, Weill Cornell, University of California, Wales Heart Institute – BP+ = Four stars BP+ is on the international space station 35 McEniery CM, Cockcroft JR, Roman MJ, Franklin SS, Wilkinson AB. Central blood pressure: current e

36. Slide 36: BP+ US Reimbursement

    BP+ US Reimbursement For personal use only US Category 1 CPT Code recommended by AMA CPT panel *  CPT Category 1 Code (9300X1)  Non-invasive calculation and analysis of central arterial pressure waveforms with interpretation and report  Effective January 2016  BP+ has US FDA clearance Key revenu

37. Slide 37: Broad Patent Portfolio

    Broad Patent Portfolio For personal use only Core technology patent protected, with patents running to 024 and beyond USCOM 1A BP+  22 granted patents  34 granted patents  5 pending applications  4 registered trademarks  2 registered trademarks IP protected in key markets 37

38. Slide 38: Growth in Distribution

    Growth in Distribution For personal use only Distribution Agreements 40 35 34 30 27 25 20 15 12 10 5 0 2013 2014 2015* Further distribution through Thor and 38 greater focus through recent hires * FY to date

39. Slide 39: George Ferenczi

    George Ferenczi For personal use only  Founder of THOR  15 years building Thor and Thor products  Innovative and global leading bio-engineer  Specialist in Computer Engineering  10 years global executive management  Experienced in channel management and distribution  Will join Uscom as Manage

40. Slide 40: Spirometry

    Spirometry For personal use only Lung disease increasing worldwide with reduced air quality – Asthma, COPD, Industrial lung disease Spirometry  Measures the volume, and rate of inspired and expired air to identify disease (Asthma and COPD), investigate SOB (short of breath), monitor disease and the

41. Slide 41: Post-Acquisition Revenue Drivers

    Post-Acquisition Revenue Drivers For personal use only  US BP+ Re-imbursement - CPT category 1 code (9300X1) effective January 2016  Thor FDA (pending)  USCOM 1A and BP+ sales pipeline growing (Pioneer + Europe)  Increased distribution (Uscom + Thor) – 30 to 60 (+100%) increases revenue for all

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