Slide 1: H1 2024 Investor presentation
H1 2024 Investor presentation New Contracts and Successful Strategy Execution 132% Quarterly Growth in U.S. AI Services Revenue 30th September 2024
Slide 2: Wide range of services to support cardiac diagnostics
Wide range of services to support cardiac diagnostics EKG – Software / AI Kit: hardware+ software VCAST – in CE certification ▪ Medicalgorithmics has developed ▪ PocketECG is a complete diagnostic ▪ The Virtual Cardiac Stress Test (VCAST) proprietary AI algorithms for analyzing technology for the de
Slide 3: Medicalgorithmics in numbers
Medicalgorithmics in numbers 14 8k 0.5 million+ New ECG clients with MDG new Physicians actively using Patients diagnosed annually by our strategy since 2023; 6 in the US our products software by the end of 2025 Employing Regulatory Clearances for Customers in 150+ 50+ 22 RnD engineers countries cou
Slide 4: Expert Management with Deep Industry Tenure
Expert Management with Deep Industry Tenure Maciej Gamrot Jarosław Jerzakowski Przemysław Tadla Group CFO COO, Member of the Management CTO, Member of the Management Board at Medicalgorithmics S.A. Board at Medicalgorithmics S.A. Previously: Previously: CEO at Kardiolytics Inc. PwC, EY, Agora, Plati
Slide 5: Summary, financials and outlook
01 2024 Summary, financials and outlook 5
Slide 6: Key Events 2024
Key Events 2024 Execution of the New ECG (Software & Hardware) Strategy development VCAST ▪ Acquisition of 13 new ECG clients (from mid- ▪ Completion of technological transformation in ▪ Progress in CE/MDR certification 2023) across diverse commercial models in arrhythmia diagnostics, obtaining FDA
Slide 7: Business growth
Business growth A key element of the successfully implemented • Acquisition of 13 new customers since the start of the new strategy strategy is the transformation of the business model. (mid-2023), including 3 new contracts in Q2 In the global market, we are no longer seen as a • 5th IDTF in the US
Slide 8: 2-fold sessions growth on the global market
2-fold sessions growth on the global market # of ECG sessions 80 000 70 647 70 000 60 000 50 000 46 779 41 224 39 373 38 567 39 247 39 117 40 000 35 374 36 215 32 885 30 000 20 000 10 000 0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Constantly growing sessions in
Slide 9: Financial results
Financial results ▪ Temporary reduction in revenues due to strategic shift in the US market towards a diversified model and end of [k PLN] Q2 2024 Q1 2021 Q4 2023 Q3 2023 Q2 2023 collaboration with US exclusive partner effective December 2023 Revenue 5 908 7 017 12 537 9 566 9 705 ▪ Over 13 new cont
Slide 10: Global revenue diversification and growth
Global revenue ▪ Stable revenues in the global market diversification and growth ▪ Ongoing launching new partners and negotiating new contracts. ▪ Growing total sales in the global market. [k PLN] Q2 2024 Q1 2024 Q4 2023 ▪ Launch of the new PocketECG 4th generation Revenue 5 908 7 017 12 537 and upg
Slide 11: Financial results – OPEX
Financial results – OPEX [k PLN] Q2 2024 Q1 2024 Q4 2023 ▪ Operational expenditures under control: Consumption of (859) (1 647) (3 144) ▪ Large operating laverage - fixed cost materials and energy structure – 51% Q/Q increase in the Employee benefits (5 363) (5 355) (4 387) number of sessions with u
Slide 12: Strong cash position with secured financing
Strong cash position with ▪ Negative cash flows from operating activities secured financing related to: ▪ Sales drop due to termination of cooperation with the main partner in the USA and only starting [k PLN] Q2 2024 Q1 2024 Q4 2023 cooperation with new partners from this market. ▪ Payment of ann
Slide 13: Secured financing
Secured financing ▪ Cash balance at the end of Q2 2024: PLN 10.6M The financing line provided by BioFund confirms Medicalgorithmics' financial ▪ Credit line (USD 3M) from Biofund, company's largest shareholder resources and implements the provisions of ▪ The credit line is implementation of the stat
Slide 14: ESOP aligning goals
ESOP aligning goals ▪ The ESOP's purpose is to incentivize and keep key managers committed by aligning their interests with those of the shareholders. ▪ The program includes management and key personnel. 01 02 ▪ The ESOP will allocate up to 298,584 shares within the company, which amounts to up to
Slide 15: Technology
02 Technology 15
Slide 16: Rapid product portfolio expansion for the whole cardiology department
Rapid product portfolio expansion for the whole cardiology department Arrhythmia Diagnostics Coronary Artery Disease VCAST DeepRhythm Platform DeepRhythmAI Bittium Faros Patch Kardiobeat.ai Patch Integration tools 16
Slide 17: ECG proven cutting-edge technology
ECG proven cutting-edge technology ▪ FDA-clearing for DRP (previously obtained CE certificate) ▪ CE certification for DRAI (the latest generation of AI algorithms) ▪ Publication of the results of the DRAI Martini scientific study which confirms the effectiveness of AI algorithms and their superiorit
Slide 18: DeepRhythm Platform – Arrhythmia diagnostics
DeepRhythm Platform – Arrhythmia diagnostics The Deep Rhythm Platform software by Medicalgorithmics, utilizing DRAI algorithms, offers advanced heart rhythm analysis tools, high diagnostic precision, process automation, remote monitoring, scalability, data security, and an intuitive user interface.
Slide 19: DeepRhythmAI Algorithms
DeepRhythmAI Algorithms Medicalgorithmics’ DeepRhythmAI (DRAI) algorithms represent a significant advancement in the field of arrhythmia diagnostics, combining speed, accuracy, and automation to improve patient care and operational efficiency in healthcare settings. DRAI algorithms provide rapid and
Slide 20: DRAI: 14-times reduces risk of missed diagnosis
DRAI : 14-times reduces risk of missed diagnosis ▪ DRAI Martini - scientific research presented at the ESC Congress 2024 vs. ▪ 14.6k patients ▪ 50 leading cardiologists from the USA and Europe. ▪ AI algorithm has significantly higher sensitivity than human specialists in detecting heart rhythm disor
Slide 21: ECG analysis software
ECG analysis The PC Client software by Medicalgorithmics software is a powerful and innovative tool for cardiac monitoring and analysis. Some of the key advantages of this software are: ▪ It integrates seamlessly with various wearable The PC Client software is a state-of-the-art solution ECG monitor
Slide 22: VCAST: Cutting-Edge CT scans AI analysis
VCAST: Cutting-Edge CT scans AI analisys ▪ 2 agreements for using VCAST in research projects ▪ Final stage of CE certification for VCAST ▪ CE certification for VCAST at Certification Unit - TUV Rheinland. We handed over the complete technical documentation and clinical evaluation of the product, pas
Slide 23: VCAST – Autonomous CT analysis
VCAST – Autonomous CT analysis No CAD 01 Regular monitoring 01 02 Computed DICOM Tomography Data Stenosis <50% 02 Pharmaco- therapy Stenosis >50% 03 03 Invasive Cloud software for autonomous CT analysis therapy New Strategy Execution Towards Financial Success 23
Slide 24: VCAST – CAD Diagnostics
VCAST – CAD Diagnostics VCAST by Kardiolytics provides a revolutionary approach to Coronary Artery Disease diagnostics with its non-invasive, AI-driven technology. It offers detailed and personalized analysis, enhances accessibility, reduces costs, and supports advanced treatment planning, making it
Slide 25: VCAST – competitive landscape
VCAST – competitive landscape 1. https://app.dealroom.co/companies/heartflow 2. https://app.dealroom.co/companies/cleerly_1 VCAST FFRct RFR EFR Stenosis Non-Calcified Plaque (NCP) Calcified Plaque (CP) Plaque assessment Full Full Low-Density Non- Calcified Plaque (LD- NCP) Distance Measurements Segm
Slide 26: Key R&D initiatives
Research on the next generation of AI/ML Development of cloud platforms algorithms for ECG data and CT image analysis for ECG and CT data visualization and analysis Key Development of software tools for R&D Development of middleware software optimization of ECG and CT data analysis enabling fast int
Slide 27: Clinical Trials – a new high margin business for Medicalgorithmics
Clinical Trials – a new high margin business for Medicalgorithmics Cardiac safety studies require near real time AF monitoring technology and reporting service Clinical study on detection of atrial fibrillation after non-cardiac surgery. GOAL-HF-01 OATD-01-C-03 Heart Failure Drug Idiopathic Pulmonar
Slide 28: Summary
Summary 01 02 03 First Half of 2024 Brings We operate non- We leverage our New Contracts and exclusively in the USA, technology, its Successful Strategy opening up to integrations capabilities Execution; 132% collaboration with and superior clinical Quarterly Growth in U.S. numerous entities and val
Slide 29: Q&A Contact for Investors
Q&A Contact for Investors Mateusz Paradowski m.pardowski@innervalue.pl +48 516 089 279 29
Slide 30: Appendix
IX Append 30,
Slide 31: Group Strategy 2023-2026
Group Strategy 2023-2026 01 Unbundling software from hardware Enables dynamic growth of the patient base by 50% year-over-year and utilizes a flexible approach to offer Medicalgorithmics' proprietary device agnostic AI-powered software to high- volume service providers around the world. 02 Business
Slide 32: ECG Analysis workflow
ECG Analysis workflow An appointment in a physician's office for prescribing a 24-hour Holter or long-term ECG monitoring by a physician Seamless and quick data Signal analysis is performed transfer to the cloud by AI-based algorithms Patient hook-up. Start of the ECG recording ECG Signal Recording
Slide 33: Global presence in 22 countries focused on markets with high reimbursement
Global presence in 22 countries Focused on markets with high reimbursement Targeting 0.5M+ patients per year by end of 2025. United States Population with AF: 6M Reimbursement: €35 – €804 UK Sweden Population with AF (atrial fibrillation): 1,73M Population with AF: 305K Reimbursement: €215 Reimburse
Slide 34: USA strategy potential and execution
USA strategy potential and execution Market opportunities for Market opportunities for arrhythmia diagnostics: cardiac imaging 6.7 m People with heart failure 20 m People with coronary heart disease 121.5 m 6m Americans suffer from People with atrial cardiovascular diseases fibrillation 10 m 4.7 m P
Slide 35: OUS strategy execution
OUS strategy execution Focus with the new strategy on current OUS markets and new countries with the highest growth potential NORTH AMERICA EMEA APAC Canada UK, Switzerland, Austria, Sweden, Australia, India, Denmark, Israel Philippines, Indonesia Achievements ▪ Succesfully conducted transition of P
Slide 36: Legal disclaimer
Legal disclaimer ▪ This presentation has been prepared by Medicalgorithmics ("the Company") solely for informational purposes and contains publicly available data. It presents selected data of Medicalgorithmics and should not be construed as investment advice, an offer to acquire or sell any shares