Pacific Edge Limited · NZX:PEB
Pacific Edge — Shareholder Meeting (July 2021)
47 slides from Pacific Edge's shareholder meeting presentation, Jul 29, 2021
Slide 1: Pacific Edge Annual Meeting
PACIFIC EDGE ANNUAL MEETING 29 July 2021 1
Slide 2: Meeting Agenda
MEETING AGENDA • Presentations: • Address from the Chairman, Chris Gallaher • Address from the CEO, Dave Darling • Shareholder Discussion • Resolutions as per Notice of Meeting • General Business • Close of Annual Meeting 2
Slide 3: Chairman's Address
CHAIRMAN’S ADDRESS CHRIS GALLAHER 3
Slide 4: Board of Directors
BOARD OF DIRECTORS • David Levison stepped down in November 2020 to take up position as Chris Gallaher Executive Chair PEDUSA • Anna Stove appointed 15 March 2021 • Mark Green appointed 10 May 2021 Chris Gallaher Bryan Williams Anatole Masfen Sarah Park Anna Stove Mark Green David Darling 4
Slide 5: Board Skills Matrix
BOARD SKILLS MATRIX Health, Safety, Sustainability Capital & Financial Markets New Market Development Corporate Governance Legal/Regulatory Sales/Marketing/Distribution Financial Acumen/risk Medicine/Science 0 1 2 3 4 5 6 7 High Capability Medium Capability (Internal Assessment) 5
Slide 6: Our Growth Strategy
OUR GROWTH STRATEGY ool] OUR GROWTH STRATEGY Attain global reach with our comprehensive suite of Cxbladder products, which provide physicians with a ‘one-stop-shop’ for their clinical needs. Sustain the global first mover advantage with Cxbladder becoming the preferred go-to detection and management
Slide 7: FY21 Was a Year of Achievement in a Difficult Global Environment
FY21 WAS A YEAR OF ACHIEVEMENT IN A DIFFICULT GLOBAL ENVIRONMENT Commercial Milestones ü CMS coverage for Cxbladder Detect and Cxbladder Monitor ü Commercial agreement with Kaiser Permanente for all four Cxbladder tests ü Publication of additional clinical evidence highlighting the clinical utility
Slide 8: FY21 Delivered Strong Improvement Across Our Key Financial Metrics
FY21 DELIVERED STRONG IMPROVEMENT ACROSS OUR KEY FINANCIAL METRICS 25 Financial Milestones 20 15 ü 76% increase in operating revenue $Millions ü 52% increase in cash reimbursement 10 ü 25% decrease in net loss after tax 5 ü 56% increase in net cash, cash equivalents and short term deposits 0 Total R
Slide 9: We Are Well Positioned for Growth
WE ARE WELL POSITIONED FOR GROWTH • Experienced management team and in-country specialist sales representatives calling on urologists • A well recognised and validated suite of accurate non-invasive Cxbladder tests • Key reimbursement and commercial milestones completed to largely de-risk our commer
Slide 10: Chief Executive Officer's Address
CHIEF EXECUTIVE OFFICER’S ADDRESS Dave Darling 10
Slide 11: Our Changing World: Covid Challenges and Opportunities
OUR CHANGING WORLD: COVID HAS PRESENTED CHALLENGES AND OPPORTUNITIES FOR PACIFIC EDGE • The value of a robust healthcare system and enduring infrastructure has become evident • The pandemic accelerated the deployment of innovative technologies and platforms, in particular telemedicine • Adoption acc
Slide 12: Cxbladder Identified as Central to Enabling Telemedicine
Pacific Edge, our Cxbladder products and urine sampling system were identified by many customers and urologists as being central to enabling telemedicine, in the urology space, when the Covid-19 pandemic took hold: • Pacific Edge’s U.S. reimbursement milestones in place • Commercial agreement with l
Slide 13: Our Strategic Goals Remain Consistent
1. Launch and commercialise all four OUR STRATEGIC Cxbladder products in our targeted markets around the world GOALS REMAIN 2. Sustain the global first mover CONSISTENT advantage; make Cxbladder the preferred go-to detection and management tests for urothelial cancer 3. Grow the adoption of multiple
Slide 14: Our Commercial Focus Remains To…
OUR COMMERCIAL FOCUS REMAINS TO… • Encourage commercial use with large scale institutional accounts in each targeted market; and • Encourage our commercial customers to progress to include multiple Cxbladder products in their standard of care and mainstream commercial use
Slide 15: Launch and Commercialise All Four Cxbladder Products
Achieved üCxbladder remains the only suite of products 1. which cover the clinical pathway for urothelial cancer LAUNCH AND üSuite of four Cxbladder products - three COMMERCIALISE ALL products commercially available in the U.S. FOUR CXBLADDER Forward focus PRODUCTS IN OUR TARGETED MARKETS • Fourth p
Slide 16: Cxbladder Multiple Products Create Global First
CXBLADDER MULTIPLE PRODUCTS CREATE GLOBAL FIRST MULTIPLE PRODUCTS COVER THE CLINICAL PATHWAY FOR UROTHELIAL CANCER U.S. ANNUAL ADDRESSABLE MARKET MORE THAN 5 MILLION CXBLADDER TEST OPPORTUNITIES PER YEAR WITH AN ESTIMATED ANNUAL REVENUE POTENTIAL OF MORE THAN US$ 3.5 BILLION* 16 * PEB company estima
Slide 17: Primary Focus Remains United States
PRIMARY FOCUS REMAINS UNITED STATES Total Laboratory Throughput (TLT) by Region (as at 31 March 2021) US Rest of World TLT by Test Type (as at 31 March 2021) UNITED STATES 75% FY21 Total Laboratory Throughput SOUTH EAST ASIA NEW ZEALAND AUSTRALIA Triage Detect Monitor 17 Pacific Edge’s perspective o
Slide 18: Sustain the Global First Mover Advantage
Achieved 2. üStrong competitive advantages – first mover SUSTAIN THE GLOBAL FIRST position, leader in the field, years of MOVER ADVANTAGE; investment into development and validation, IP protection MAKE CXBLADDER THE üIncreasing coverage by U.S. payers (insurers) PREFERRED GO-TO üSignificant portfoli
Slide 19: Adoption of Multiple Cxbladder Products
ADOPTION OF MULTIPLE CXBLADDER PRODUCTS § Increasing awareness of Cxbladder as a proposition to better manage urology patients in the global Covid pandemic § Allows urologists and healthcare providers to manage patient care from home and reduce number of patients coming into clinics § New Zealand le
Slide 20: New Paper Highlights Benefit from Combined Use of Cxbladder Products
NEW PAPER HIGHLIGHTS SIGNIFICANT BENEFIT FROM COMBINED USE OF CXBLADDER PRODUCTS Study evaluated the use of Cxbladder Resolve, alone and in combination with other Cxbladder tests, to identify and prioritise patients at high risk for urothelial carcinoma/cancer (UC). Conclusion: § For each patient, s
Slide 21: Inclusion in National Guidelines Will Accelerate Commercial Growth
INCLUSION IN NATIONAL GUIDELINES WILL ACCELERATE OUR COMMERCIAL GROWTH Inclusion in guidelines is a progressive process Our focus will continue on: requiring substantive clinical evidence and following mainstream adoption by healthcare • The publication of additional providers. peer reviewed evidenc
Slide 22: Grow the Adoption of Cxbladder by Large Scale Institutional Healthcare Customers
Our focus on obtaining agreements for commercial use of Cxbladder by large 3. institutional accounts has been shown to be successful in NZ and now the U.S. GROW THE ADOPTION OF CXBLADDER BY Achieved LARGE SCALE üInclusion in LCD for CMS reimbursement INSTITUTIONAL üCommercial agreement with Kaiser H
Slide 23: Kaiser Permanente Commercial Use of Cxbladder Products
KAISER PERMANENTE COMMERCIAL USE OF CXBLADDER PRODUCTS • Anticipated timeline for uptake pushed out due to Covid-19 restrictions in the U.S. • Commercial use of Cxbladder Monitor progresses, however, pace of roll-out still hampered by Covid-19 • Commitment to start commercial use of Cxbladder Triage
Slide 24: Continuing Evaluation and Use of Cxbladder by Large Healthcare Institutions
CONTINUING EVALUATION AND USE OF CXBLADDER BY LARGE HEALTHCARE INSTITUTIONS USA USA SOUTH EAST ASIA • Kaiser Permanente (Completed) • University of California-San • Singapore General Hospital • Carolina Urologic Research Diego • Tan Tock Seng Center • University of California-San • Khoo Tech Puat Ho
Slide 25: Most Recent US Commercial Achievements in 2021
MOST RECENT US COMMERCIAL ACHIEVEMENTS IN 2021 UNITED HEALTHCARE COVERAGE COMMERCIAL AGREEMENT A SIGNIFICANT REIMBURSEMENT WITH FACEY MEDICAL GROUP MILESTONE • Coverage has facilitated reimbursement • Covers the use of Cxbladder for Cxbladder Detect and Cxbladder Detect and Cxbladder Monitor for Mon
Slide 26: FY21 and FY22 YTD Performance
FY21 AND FY22 YTD PERFORMANCE 26
Slide 27: FY21 Performance Snapshot
FY21 PERFORMANCE SNAPSHOT • Significant impact from Covid-19 in early Q1 FY21 • Strong growth in operating revenue and cash reimbursement from July 2020 driven by CMS coverage and growing commercial adoption of Cxbladder. Nine month contribution from the CMS reflected in full year result • Strengthe
Slide 28: Strong Recovery Continues in Q1 FY22
STRONG RECOVERY CONTINUES IN Q1 FY22 Q1 FY22 has seen a record quarter for TLT and cash receipts • Total Laboratory Throughput in Q1 FY22 is: Total Laboratory Throughput • Up 79% on Q1 FY21 6,000 • Up 9% on Q4 FY21 5356 • Up 35% on quarterly average from FY21 5,000 Test Numbers • Cash Receipts from
Slide 29: Growth Catalysts
GROWTH CATALYSTS , 9° | PACIFIC EDGE CA biadder —2” | PACIEIG EDGE
Slide 30: Strong Platform to Drive Growth
STRONG PLATFORM TO DRIVE GROWTH • Four class leading products for the detection and management of Urothelial Cancer (UC), addressing a large, under-served global market opportunity - AAM for Cxbladder in the U.S. estimated to be more than US$3.5b • Reimbursement milestones achieved in U.S. – CMS cov
Slide 31: Strengthened Senior Management Team
STRENGTHENED SENIOR MANAGEMENT TEAM New appointments in this calendar year add expertise and experience to the senior leadership team as Pacific Edge accelerates its global growth strategy PE Global Executive Team PEDUSA Executive Team Chief Executive Officer David Darling Executive Chairman PEDUSA
Slide 32: Scale-up of U.S. Commercial Operations
SCALE-UP OF U.S. COMMERCIAL OPERATIONS TO DRIVE CXBLADDER COMMERCIAL ACCELERATION • Continued focus by specialist sales EXPANDED U.S. SALES executives to focus on converting other TEAM: large healthcare institutions into CURRENTLY customers 24 SPECALISED ACCOUNT MANAGERS • Dedicated team of reimburs
Slide 33: Commercial Adoption in NZ Leads the World
COMMERCIAL ADOPTION IN NZ LEADS THE WORLD • New Zealand’s public healthcare providers (DHBs) are leading the global adoption of Cxbladder • Majority (12/20) have now added Cxbladder to their commercial mainstream use and their standard of care • NZ urology Directors have added Cxbladder to national
Slide 34: Positive Growth Outlook
34 POSITIVE GROWTH OUTLOOK PACIFIC ED
Slide 35: United States
• U.S. remains our primary focus • A focusing of our capital to growth and specifically the scale-up of the U.S. business • Increasing number of commercial tests from CMS and Kaiser Permanente expected to underpin strong revenue and operating UNITED cashflow growth in FY22 and beyond • Positive cove
Slide 36: Catalysts to Drive Growth in U.S. in FY22 and Beyond
CATALYSTS TO DRIVE GROWTH IN U.S. IN FY22 AND BEYOND • Scaled up U.S. commercial operations providing capacity and resource to drive revenue growth • Ramp up in demand from Kaiser Permanente • Commercial agreements with other healthcare institutions of scale • Expansion of reimbursement coverage wit
Slide 37: New Zealand
GROWTH FOCUS: Strong growth continues in NZ with customers moving to multiple Cxbladder products in mainstream use. NEW • Increase number of Cxbladder tests used by ZEALAND each public healthcare provider customer and expand coverage • Position Cxbladder for use as preferred bladder Adoption by larg
Slide 38: South East Asia and Australia
SOUTH EAST ASIA AND DEVELOP OUR COMMERCIAL BASE: AUSTRALIA • Transition targeted public healthcare providers who are currently engaged in Southeast Asia expected to become Cxbladder User Programmes in Australia a market of scale over time with an accessible population base and Singapore, to becoming
Slide 39: CEO closing quote
“Pacific Edge has an exciting and profitable future ahead. We have a proven team delivering on a huge market opportunity for our Cxbladder products and we are just starting to scratch the surface. We are now well positioned to accelerate our momentum and grow adoption of our novel and world leading
Slide 40: Shareholder Discussion
SHAREHOLDER DISCUSSION 40
Slide 41: Business of the Meeting
BUSINESS OF THE MEETING Coiadder S| PACIFIC EDGE
Slide 42: Resolutions
RESOLUTIONS Resolution 1: That Anatole Masfen, who retires by rotation and is eligible for re- election, be re-elected as a Director of the Company Resolution 2: That Anna Stove, who was appointed as a Director by the Board during the year, be elected as a Director of the Company Resolution 3: That
Slide 43: Proxies
PROXIES Resolution FOR AGAINST OPEN 1 Re-election of Anatole Masfen 299,664,817 3,257,209 6,862,204 96.73% 1.05% 2.22% 2 Election of Anna Stove 302,890,845 25,100 6,868,285 97.77% 0.01% 2.22% 3 Election of Mark Green 302,735,711 160,769 6,868,285 97.73% 0.05% 2.22% 4 Increase in total Directors’ 279
Slide 44: Other Business
» — PACIFIC EDGE Cancer Diagnostic Company OTHER BUSINESS PACIFIC EDGE a biadder Pac iC EDGE
Slide 45: Close of the Meeting
CLOSE OF THE MEETING Presentations are available at www.pacificedgedx.com www.pacificedge.co.nz www.cxbladder.com www.pacificedgedx.com 45
Slide 46: Glossary
GLOSSARY • Commercial Tests are those tests for which the Company is actively seeking reimbursement and cash receipts, and tests performed at no charge in order to gain new customers. • Total laboratory throughput (TLT) includes commercial tests and non-commercial tests related to customer’s start-u
Slide 47: Disclaimer
DISCLAIMER Important Notice Financial data This presentation has been prepared by Pacific Edge Limited (PEL) solely to provide interested parties with All dollar values are in New Zealand dollars unless otherwise stated. further information about PEL and its activities at the date of this presentati