Slide 1: Aroa Biosurgery (ARX) Full Year Results May 2024
AROA BIOSURGERY (ARX) FULL YEAR RESULTS MAY 2024 Unlocking regenerative healing for everybody
Slide 2: Important Notice and Disclaimer
|2 Important Notice and Disclaimer This presentation (Presentation) is dated 21 May 2024 and has been prepared by Aroa conjunction with AROA’s other periodic and continuous disclosure announcements Biosurgery Ltd, New Zealand company number 1980577, ARBN 638 867 473 (AROA or lodged with ASX and shou
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 >US$3B1 TAM predominantly sold to US extensions & enables AROA’s hospitals for existing products tissue apposition platform US Direct (AROA) & 6 million+ C
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: FY24 Financial Results
|5 FY24 Financial Results1 NZ$69.1m 85% (NZ$3.1m) Total Revenue vs. Guidance Product Gross Margin Normalised EBITDA2 NZ$67-70m vs. Guidance 85% vs. Guidance ~ NZ$1-3m loss Product revenue ~ NZ$68m ~NZ$29.5m Cash Balance 1. Results are presented on a reported basis. Guidance was provided on an averag
Slide 6: Product sales
|6 Product sales Total Product Sales Myriad Sales 40 80 30 73% YoY growth 12% YoY NZ$m 20 growth 10 70 0 FY20 FY21 FY22 FY23 FY24 60 OviTex/OviTex PRS Sales Telabio Sales 40 -7% YoY growth 50 30 NZ$m 20 NZ$m 40 10 0 30 FY20 FY21 FY22 FY23 FY24 Endoform Sales 20 40 30 -2% YoY growth 10 NZ$m 20 10 0 0
Slide 7: Sales expansion
|7 Sales expansion Myriad Active Accounts1 Salespeople 250 60 23% YoY growth 31% YoY growth 50 200 40 150 30 100 20 50 10 0 0 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Endoform Myriad 1. Represents accounts to which Myriad sales were made in the three consecutive months prior to the end of t
Slide 8: Market Potential
|8 Market Potential1 Soft Tissue Reconstruction Operating Room 420,000 procedures p.a. | ~US$730M Lower Limb Salvage Traumatic Wounds 180,000 procedures 90,000 procedures US$225M US$300M BENEFITS Rapid volumetric fill Persistence Disruptive Value 1. Management estimates.
Slide 9: Market Potential
|9 Market Potential1 Soft Tissue Reconstruction Negative Pressure Operating Room Wound Therapy (NPWT) 420,000 procedures p.a. | >1M procedures p.a. ~US$730M Lower Limb Salvage Traumatic Wounds Complex Acute & 180,000 procedures 90,000 procedures Chronic Wounds To Be US$225M US$300M Determined? Expec
Slide 10: Market Potential
| 10 Market Potential1 Lower Limb outpatient Soft Tissue Reconstruction CTP procedures Operating Room >475,000 CTP procedures 420,000 procedures p.a. | p.a. | ~US$1B ~US$730M DFUs / VLUs Lower Limb Salvage Traumatic Wounds . 180,000 procedures 90,000 procedures US$1,050M US$225M US$300M BENEFITS BEN
Slide 11: Investing in clinical evidence
| 11 Investing in clinical evidence • Evidence that products are effective for specific procedures • Determines comparative efficacy versus standard of care & alternative products • Evidence that product save hospitals money • Investigates new uses • Elevates clinical engagement & share of voice • B
Slide 12: AROA ECM - Restores functional tissue
| 12 AROA ECM - Restores functional tissue 96 PRESENTATIONS/ 46 PRESENTATIONS/ 37 PRESENTATIONS/ PUBLICATIONS PUBLICATIONS PUBLICATIONS Volumetric fill- Rapid Tolerated and No negative formation of well contaminated field inflammatory vascularized and resistant to response reported2-5 functional tis
Slide 13: Selected clinical evidence – trauma
| 13 Selected clinical evidence – trauma Expected Sample Study Initiator Product NPWT Description Publication Size Date Retrospective Published - Exposed structures (Bohn et al) IIR Myriad 6 + case series Dec, 2020 Retrospective Published - Sep, Trauma (Cormican et al) IIR Myriad 13 + case series 20
Slide 14: Selected clinical evidence – lower extremity
| 14 Selected clinical evidence – lower extremity Expected Sample Study Initiator Product NPWT Description Publication Size Date Retrospective Published - DFU (Bosque et al) Aroa sponsored Endoform ~2000 - comparative Aug, 2021 (RWE) Retrospective Published - Limb salvage (Bosque et al) Aroa sponsor
Slide 15: Selected clinical evidence – colorectal
| 15 Selected clinical evidence – colorectal Expected Sample Study Initiator Product NPWT Description Publication Size Date Published - July, Pilonidal sinus (Chaffin et al) IIR Myriad 6 + 2021 Aroa sponsored Prospective, Pilonidal sinus (Nasseri et al) Myriad 100 No Q2, FY25 (MASTRR) comparative Ar
Slide 16: Selected clinical evidence – general
| 16 Selected clinical evidence – general Expected Sample Study Initiator Product NPWT Description Publication Size Date Retrospective Published - Jan, Chronic defects (Desvigne et al) IIR Myriad 6 + case series 2021 Hidradenitis suppurativa (Chaffin et Retrospective Published - IIR Myriad 6 + al) c
Slide 17: OviTex & OviTex PRS – Market Potential
| 17 OviTex & OviTex PRS – Market Potential1 U.S. Hernia Surgery Market: U.S. Plastic & Reconstructive Surgery Market: ~$1.5 Billion Annual Opportunity ~$700 Million Annual Opportunity Annual Procedures Complex, Moderate $360M Ventral/Abdominal ~60,000 Surgeons use products to reinforce Wall Reconst
Slide 18: Enivo – tissue apposition platform
| 18 Enivo1 – tissue apposition platform Expected to improve the rate and quality of tissue healing with fewer complications • Novel device expected to create new product category • Enivo TAM >US$1B (management estimates) • Pump and catheter cleared. “Envelope” requires further preclinical & clinica
Slide 19: H1/H2 FY24 Financial Results
| 19 H1/H2 FY24 Financial Results H1 FY24 H2 FY24 FY24 Reported Reported Reported • Total revenue stepped up in H2 NZ$31.9m NZ$37.2m NZ$69.1m • Myriad ~30% growth on H1 Total Revenue Total Revenue Total Revenue • TELA ~19% growth on H1 • Product gross margin 84% 86% 85% improvement Product Gross Pro
Slide 20: TELA Bio Sales & Inventory
| 20 TELA Bio Sales & Inventory % of revenue US$m $70 100% 90% $60 80% $50 70% 60% $40 50% $30 40% $20 30% 20% $10 10% $0 0% FY20 FY21 FY22 FY23 FY24 TelaBio Inventory TelaBio Sales Aroa Sales to TelaBio TelaBio Inventory % of Revenue Reference to FY represents AROA's Financial Year 1 April to 31 Ma
Slide 21: Manufacturing
| 21 Manufacturing Product Gross Margin Manufacturing Capacity 90% 1% improvement 200 85% 150 80% NZ$m 75% 100 70% 50 65% 60% 0 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY25 Ongoing margin improvements Expanded capacity CAPEX (Manufacturing) 6 5 4 NZ$m 3 2 1 0 FY20 FY21 FY22 FY23 FY24 Inves
Slide 22: Use of Funds
| 22 Use of Funds Sales & Marketing Expenses R&D Spend 40 15 20% 17% % of 30 Product 10 Sales 21% NZ$m NZ$m 20 30% Capitalised 23% 5 Other 10 ENIVO 0 0 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Clinical Expenses2 Cash on Hand3 60 9 6 40 NZ$m NZ$m 3 20 0 0 FY20 FY21 FY22 FY23 FY24 FY20 FY21 F
Slide 23: Investing to transform clinical outcomes - ENIVO
| 23 Investing to transform clinical outcomes - ENIVO Impact of ENIVO Investment on EBITDA1 10 8 6 4 • Business would be highly profitable 2 (normalised) in the absence of the NZ$m 0 large Enivo investment -2 • Sacrificing short-term profitability -4 for longer term competitive -6 advantage & profit
Slide 24: FY25 Guidance
| 24 FY25 Guidance1 NZ$80-87m NZ$2-6m Total Revenue Normalised EBITDA (YoY CC growth 21 – 32%) 1. All guidance is presented on a constant currency basis using a NZ$/US$ exchange rate of 0.64, compared to the average exchange r ate of 0.61 in FY24. Constant currency removes the impact of exchange rat
Slide 25: FY25 Catalysts & Milestones
| 25 FY25 Catalysts & Milestones AROA sales TELA Bio sales Enivo FDA clearance momentum momentum Parallel initiatives being progressed to Sales team expansion, clinical expedite FDA clearance Myriad is the major growth driver. evidence, increasing adoption Symphony Myriad trauma & limb Completion of
Slide 26: Q&A
? Q&A Unlocking regenerative healing for everybody
Slide 27: Contact
CONTACT James Agnew investor@aroa.com Visit our website www.aroa.com and find us on LinkedIn at www.linkedin.com/company/aroa-biosurgery-limited/ 64 Richard Pearse Drive, PO Box 107111, Auckland Airport, Auckland 2150, Auckland 2022, New Zealand New Zealand Unlocking regenerative healing for everybo