Slide 1: New Strategy Execution Towards Financial Success
New Strategy Execution Towards Financial Success August 2024
Slide 2: Summary
01 Summary 2
Slide 3: MDG Group structure
MDG Group structure 100% 100% 100% 97% of shares of shares of shares of shares US Holding Corporation India Private Limited 50% MDG shareholders 43% structure, ownership Biofund Capital Management LLC and voting PZU OFE Other shareholders New Strategy Execution Towards Financial Success 3 7%
Slide 4: Strategic Transformation
Strategic Transformation ▪ A new strategy was adopted after Biofund, a US investment company, acquired control over Medicalgorithmics in 2023. ▪ Merged with Kardiolytics Inc., an AI-based atherosclerosis diagnostic software competitor to HeartFlow ($1 billion cap) and Clearly ($600 million cap). ▪ T
Slide 5: Biofund Cap. Management
Biofund Cap. Management prof. dr hab. Paweł Lewicki ▪ He was a professor of psychology at UT ▪ Founder and CEO of StatSoft (acquired by Dell in 2014). ▪ A pioneer in Big Data ▪ An entrepreneur and CEO of a large international company (StatSoft had 30 foreign offices in major markets and over 1 milli
Slide 6: 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 7: Medicalgorithmics in numbers
Medicalgorithmics in numbers 12 8k 0.5 million+ New ECG clients with MDG new Physicians actively using Patients diagnosed annually by our strategy since 2023; 5 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 8: Milestones in MDG development
Milestones in MDG development 2023 2022 New MDG strategy: 2005 FDA registration 2022 opening software Establishment of 2014 obtained for the Dispossing for external Medicalgorithmics Debut on the Main DeepRhytm AI of US subsidiary customers (device company Market of the GPW system Medi-Lynx agnostic
Slide 9: 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 10: Business Growth
02 Business Growth 10
Slide 11: Our presence in markets with high reimbursement
Our presence in markets with high reimbursement United States Active in 22 markets. Targeting 500 000 patients a year by end of 2025. Population with AF: 6M Reimbursement: €35 – €804 UK Sweden Population with AF*: 1,73M 1 Population with AF: 305K 2 Reimbursement: €215 Reimbursement: €137 – €317 Cana
Slide 12: 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 13: 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 14: 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 GOAL-HF-01 OATD-01-C-03 Heart Failure Drug Idiopathic Pulmonary Fibrosis Randomized double - blinded, placebo – controlled Randomized double
Slide 15: Summary
Summary 01 02 03 We are progressing We operate non- We leverage our in achieving exclusively in the USA, technology, its independence from opening up to integrations capabilities our hardware by offering collaboration with and superior clinical integration of existing numerous entities and value to
Slide 16: Technology
03 Technology 16
Slide 17: Unique marriage of ECG and CT world
Unique marriage of ECG and CT world Integration of Arrhythmia and CAD Diagnostics Our vision integrates arrhythmia diagnostics with coronary artery disease (CAD) diagnostics, marking a significant stride in medical technology. We are developing the next generation of AI algorithms that combine CT an
Slide 18: Scientific research
Scientific research Scientific research has always been an integral part of the company's research and development activities. Since November 2022, Dr. Linda Johnson, a professor at Lund University, has taken over the supervision of clinical research work conducted in the company. Atrial Fibrillatio
Slide 19: NEW product portfolio for the WHOLE cardiology department
NEW product portfolio for the WHOLE cardiology department Fully leveraging the know-how of combined MDG+KL allows rapid product portfolio expansion December – 2022 February – 2024 DMS Patch Bittium Faros Patch DeepRhythmAI VCAST alborighmics PocketECG Arrhythmia Diagnostics System Myant Skiin New in
Slide 20: NEW product portfolio for the WHOLE cardiology department
NEW product portfolio for the WHOLE cardiology department Fully leveraging the know-how of combined MDG+KL will by 2025 create a portfolio of technologies covering all stages of the cardiac patient journey Healthy Living Prevention Diagnostics Treatment Home Care New Strategy Execution Towards Finan
Slide 21: 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 21
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 27
Slide 28: 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 29: 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 30: Technology Differentiators
Technology Differentiators Unique big data Over 2.5 billion annotated heart beats verified and corrected via 450,000 man-hours of our certified medical specialists. Deep learning & artificial intelligence expertise (FDA Certified DeepRhythmAI & PocketECG) Using our big data to create next generation
Slide 31: Financials and outlook for 2024
04 Financials and outlook for 2024 31
Slide 32: Key Events 2024
Key Events 2024 Adoption Execution of the ECG (Software VCAST of a New Strategy New Strategy & Hardware) ▪ Conducting the process of CE/MDR certification ▪ Continued operational and ▪ Acquisition of 12 new ECG ▪ Advancement of the new Deep for VCAST, aiming for organizational changes started clients
Slide 33: 29% sessions growth on the global market
29% sessions growth on the global market # of ECG sessions 50 000 46 779 45 000 41 224 39 373 38 567 39 247 39 117 40 000 35 374 36 215 35 000 32 885 30 000 25 000 20 000 15 000 10 000 5 000 0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Constantly growing sessions in the
Slide 34: Financial results
Financial results ▪ Temporary reduction in revenues due to strategic shift in the US market towards a diversified model and end of collaboration with US exclusive partner at 31st December 2023. [k PLN] 2023 2022 Q1 2024 Q1 2023 ▪ 9 new partnerships since 2023. 3 of the already commercially launched
Slide 35: Global revenue diversification
Global revenue ▪ Temporary reduction in revenues due to end of collaboration with US exclusive partner diversification ▪ at 31st December 2023. 3 of the already commercially launched US IDTF parners will bring the company about PLN 440k in [k PLN] 2023 2022 Q1 2024 Q1 2023 average monthly recurring
Slide 36: Financial results – OPEX
Financial results – OPEX [k PLN] Q1 2024 Q1 2023 Q4 2023 ▪ Operational expenditures under control: 2% decrease from Q4 2023. Consumption of materials (1 547) (750) (3 144) ▪ One-off expense of annual bonus related and energy to quarterly targets (~PLN 3M). Employee benefits (5 355) (4 892) (4 387) T
Slide 37: Strong cash position
Strong cash position ▪ Negative cash flows from operating activities [k PLN] Q1 2024 Q1 2023 2023 2022 related to: ▪ Sales drop due to termination of cooperation with Operating (5 472) 3 033 181 6 331 the main partner in the USA and only starting cash flow cooperation with new partners from this ma
Slide 38: Financial data – transformation stage
Financial data – transformation stage 2018 2019 2020 2021 2022 2023 250 000 200 000 150 000 100 000 50 000 0 -50 000 -100 000 -150 000 -200 000 Sales revenue Profit / (loss) on operating activities Total income for the reporting period EBITDA unadjusted [k PLN] 2018 2019 2020 2021 2022 2023 Sales re
Slide 39: Strategic Transformation Driving Growth and Value
Strategic Transformation 01 Restructuring in 2022: Driving Growth and Value ▪ ▪ Jul. 2022, sold US subsidiary Medi-Lynx Oct. 2022 49.9% Biofund strategic investor ▪ Share price up from 6.0 PLN to 12.5 PLN. 5x Share Price Growth Since June 2022, in 3 stages: Current Price: ~26 - 30 PLN (up from 6 PLN
Slide 40: Achieving New Strategy Results
Achieving New Strategy Results MDG Value Creation Potential Execution Phase – towards Positive Financials building on: 01 Scalable Business: onboarding at least two new clients each quarter with high operational leverage. Sales Recovery Target: Attain monthly sales of Q4'23 in the second half of 202
Slide 41: 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 42: Investors Media
Investors Media Mateusz Paradowski Mariusz Gawrychowski m.pardowski@innervalue.pl m.gawrychowski@innervalue.pl +48 516 089 279 +48 501 520 598 42
Slide 43: 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