Inspiration Healthcare : Interim Presentation – 6 Months Ended 31 July 2024

About this update from Inspiration Healthcare Group Plc

Inspiration Healthcare Group plc "Pioneering medical technology starting with the very first breaths of life" Roy Davis - Executive Chairman October 2024 Alan Olby - CFO Today's Agenda H1 2024 Highlights Business Update Financial Review & Outlook Summary and Q&A Appendices 3 Innovate | Create | Inspire Overview: A Challenging Time Overall H1 revenues of £17.0m - down 17% vs prior year Neonatal sales declined by 26% Impacted by discontinued products UK sales down 20% to £4.3m (H1 FY24: £5.4m) - UK restructuring beginning to gain traction International sales down 40% at £6.5m (H1 FY24: £10.7m) in H1 - International being re-focused to drive sales Infusion business performing well H1 growth +19% on prior year, sales of £5.0m a record half year Airon sales of £1.2m - more than double vs prior year (pre-acquisition) Middle East contract signed and being progressed - expect to ship H2 Margin pressure - impacted by mix and lower ventilator sales FY revenues will be second half weighted - margin pressure to remain Turnaround progressing but challenges - it is all about sales! 4 Innovate | Create | Inspire Financial Highlights Revenues down on prior year at £17.0 million (H1 FY24: £20.4 million) Gross margin: Reduced to 43.5% (H1 FY24: 48.6%) EBITDA loss of £0.9m (H1 FY24: profit of £1.8m) Operating loss of (£2.0m) (H1 FY24: profit of £0.6m) Operating cash outflow of £2.3m (H1 FY24: +£3.5m) Net debt increased to £6.8 million (31 January 2024: £6.0 million) Fundraise (gross proceeds £3.0m) Product mix Impacting Margins Strengthened Balance Sheet £0.8m Increase in Net Debt 5 Innovate | Create | Inspire Operational Highlights Build on positives Leverage NHS business in UK Neonatal - UK re-organization starting to work Infusion - build on strength in Homecare to enter new markets Middle East order received - expect H2 shipment ▪ CCO Appointment Infusion YoY Growth ▪ Restructured UK sales team 19% Drive International distributor sales efforts North America strategy Airon sales outperforming, International sales opportunity Meeting with FDA re 510k application Re-structuring during period Change in Chairman / CEO - recruitment for new CEO underway Closed Hailsham site - annual savings £0.5m 3900 SLE6000 Worldwide Airon Sales Doubled 6 Innovate | Create | Inspire Today's Agenda H1 2024 Highlights Business Update Financial Review & Outlook Summary and Q&A Appendices 7 Innovate | Create | Inspire Business Update: A Reminder of What We Do - Two Distinct Markets Inspiration Healthcare designs, manufactures and markets pioneering medical technology that saves lives and improves the outcomes of patients starting with the very first breath of life Neonatal Intensive Care (approx. 75% revenue) Serviceable addressable market £321m Neonatal ventilation CAGR ~5.1% - 7.1% Own brand capital and consumable products with IP Distribute complementary products Direct sales in UK, Ireland and USA Global sales into >75 countries Manufacturing in UK and USA UK service centre In-house R&D at state-of-the-art manufacturing centre in South London Infusion Therapies (approx. 25% revenue) Distribution of market leading products UK sales & support UK service centre 8 Innovate | Create | Inspire Our Immediate Focus - 'Back to Basics' 4. EXECUTE FUTURE STRATEGY Develop vision & strategy Develop & execute US product & commercial plan Develop & Implement R&D Roadmap to deliver on future potential 1. DRIVE SALES Improve geographic spread Improve distributor sales Leverage NHS relationships Increase recurring revenues from consumables & service Back to Basics 3. IMPROVE WORKING CAPITAL 2. INCREASE PROFITS Reduce inventory Improve operational efficiency Manage CSO / DSO days Improve product margins Improve Supply Chain Management Reduce costs Review structure for efficiency opportunities 9 Innovate | Create | Inspire Back to Basics: Driving Sales Improve geographic spread Direct sales in H1 67% Indirect sales in H1 33% Strengthen sales team Pursue US market opportunity 50% of global neonatal market - minimal sales at present FDA approval of SLE6000 Leverage Airon position to build presence Focus on higher margin opportunities Own brand - 59% Distributed products - 41% Diversify product offering Drive consumable and service revenues Identify synergistic portfolio products Indirect 33% Direct 67% Sales UK 50% Intl UK International 45% 55% 50% Sales in 75 Countries 10 Innovate | Create | Inspire Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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