AROA BIOSURGERY LIMITED — AGM Information 2022

Aug 9, 2022

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Aroa Biosurgery
AGM AUGUST
2022
CEO’S REPORT
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Unlocking regenerative healing for every body

Important Notice and Disclaimer

This presentation ( Presentation ) is dated 10 August 2022 and has been prepared by Aroa Biosurgery Ltd, New Zealand company number 1980577, ARBN 638 867 473 ( AROA or the Company).

Information in this Presentation

The information in this Presentation is of a general background nature, is in summary form and does not purport to be complete. It does not contain all information relevant or necessary for an investment decision or that would be required to be included in a prospectus or other disclosure document under the Corporations Act for an offer of securities in Australia or in any other jurisdiction. The content of this Presentation is provided as at the date of this Presentation (unless otherwise stated). Except as required by applicable law, AROA does not plan to publicly update or revise any information contained in, or provided with, this Presentation whether as a result of any new information, future events, changed circumstances or otherwise.

Not a prospectus or an offer of securities

This Presentation is not a prospectus or any other offering document under Australian law (and will not be lodged with the Australian Securities Investments Commission or with ASX Limited (ASX) as such) or under the law of any other jurisdiction in which an offer of securities may be received. Nothing in this Presentation should be construed as an invitation, offer or recommendation of securities in AROA (or any of its subsidiaries) for subscription, purchase or sale in any jurisdiction.

Future performance

Past performance information in this Presentation is given for illustrative purposes only and should not be relied upon (and is not) an indication of future performance. The Presentation contains certain “forward-looking statements”. The words “forecast”, "expect", "anticipate", "estimate", "intend", "believe", "guidance", "should", "could", "may", "will", "predict", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future metrics, earnings and financial position and performance (e.g. references to FY23 or CY23) are also forward-looking statements, as is the ‘Outlook’ section in this Presentation. These statements are based on current expectations and assumptions regarding AROA’s business and performance, the economy and other circumstances. As with any projection or forecast, forward-looking statements in this Presentation are inherently uncertain and susceptible to changes in circumstances. Opinions may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. Actual results, performance or achievements may differ materially from those expressed or implied in forward looking statements and statements of opinion. In particular, the market data referenced in this Presentation was prepared before the onset of COVID-19, the economic effect of which is currently not possible to predict with any certainty. While the Company has no reason to believe that the markets to which the data relates will not return to the operating levels experienced before COVID-19, the impact of COVID-19 (if any) on the market data referenced is not possible to currently predict with any certainty and investors are cautioned against placing undue reliance on such data.

IP notice

AROA, Aroa Biosurgery, AROA ECM, Endoform, Myriad, Myriad Matrix, Myriad Morcells, Myriad Ultra, Symphony and Enivo are trademarks of Aroa Biosurgery Limited. All other trademarks are properties of their respective owners. ©2022 Aroa Biosurgery Limited

FY22 metrics at a glance

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NZ$39.2m AROA Direct 84% increase in product sales 36 US Sales FY21 on constant currency basis NZ$14.3m up from NZ$10.5m Salespeople[1] in FY21 Sales to TELA 72 Active 76% GM ™ Bio Accts[2] Myriad 8% improvement in product Up from 16 in FY21 (350%) NZ$24.8m up from NZ$11.0m gross margin in FY21 Cash Balance Employees[3] R&D NZ$8.4m Increased investment (31%), NZ$56.2m ~220 AROA ECM™ platform (33%) & ™ Strong balance sheet Enivo (77%)

1. Includes US inside sales and direct field sales representatives.

2. Represents accounts to which sales were made in Q4 of the relevant financial year. 3. Worldwide.

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AROA ECM – Structure & Biology for Regenerative Healing Unique Extracellular Matrix (ECM) derived from ovine forestomach

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Substantial Growth Opportunities > $2.5B[1] TAM

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Complex Wounds Soft Tissue Reconstruction
Total Addressable Market Total Addressable Market
> $1.4B [2] USD > $1.3B [3] USD
e.g. Diabetic Foot Ulcers, e.g. Trauma, tumour removal, e.g. Hernia repair, abdominal
Venous Ulcers, Pressure Ulcers, general surgery, inflammatory dehiscence, breast surgery
chronic wounds skin disease
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1. SmartTRAK BiomedGPS data 2020; DRG Millennium Research data; Hernia Repair Devices, 2020, AROA management estimates; DRG Millennium Research, Breast Implants & Reconstructive devices, 2018. 2. SmartTRAK BiomedGPS data 2020. Aroa management estimates.

2. Licensed to TELA Bio for abdominal wall reconstruction, hernia repair and breast reconstruction. DRG Millennium Research data; Hernia Repair Devices, 2020. DRG Millennium Research, Breast Implants & Reconstructive devices, 2018.

OviTex and TELA Bio are trademarks of TELA Bio, Inc.

Strategy

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Strategic Overview

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Products that deliver a step change in healing outcomes and value

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A pipeline of nextgeneration regenerative technologies

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A disruptive business model

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Vision

To become a world leading regenerative healing company

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Mission Unlocking regenerative healing for everybody

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Ensure a safe, healthy, and productive workplace Mitigate AROA’s impact on the planet

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Product Platforms

Efficacy

Standard of Care

Combinations of AROA ECM products & Enivo potential to deliver a step change in healing outcomes AROA ECM Enivo Devices for a Treatment to wide range of enable tissue tissue apposition regeneration applications

t

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High-level graphic to represent strategic direction only. For example, not representative of quantified market opportunities.

FY23 Execution

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Myriad

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Ongoing salesforce expansion: targeting ~ 40 field salespeople by end of FY23

Salesforce productivity: continuous improvement & verify that the sales model is scalable

Myriad - MASTRR Clinical Registry : targeting 300 patients across ten US sites over a three-year period.

Target procedures: Started broad and refining based on efficacy & case value

Myriad line extensions: Myriad Morcells™(fine), new Myriad Matrix™formats

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Symphony

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Soft launch in US Veterans Affairs: Early clinical experience, modest sales, set up for FY24

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US reimbursement changes for ‘Skin Substitutes’: CMS targeting changes in physician’s office in 2024, Hospital Outpatient TBD. Impacts future sales & pricing strategy

Symphony Randomised Control Trial: 120 patient multi-centre prospective study vs. standard of care

: Symphony and Endoform combination Study 50 patient multi-centre prospective study vs retrospective published data.

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OviTex & OviTex PRS

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OviTex, OviTex LPR & PRS continue to gain momentum. TELA Bio sales guidance of US$4045m in CY22 up from US$29.5m in CY21

Bravo I (ventral hernia): 92 patients, 2.6% recurrence rate in ventral hernias at 24-months

Bravo II (robotic ) 157 inguinal hernia repairs, 1.9% recurrence rate at 24-months

Ongoing innovation: OviTex, OviTex LPR & OviTex PRS

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OviTex[® ] is a thicker product comprised of multiple AROA ECM sheets with reinforcement from embroidered permanent (polypropylene) or temporary (PGA) synthetic polymers.

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Endoform

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Modest growth : serviced by virtual inside sales team

Clinical evidence: Targeting completion of Venous Leg Ulcer real-world study by Mar’ 23

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Enivo

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Design locked & completing testing for US FDA submission: targeting confirmation of 510k or DeNovo by mid CY23

Preclinical model demonstrates treatment efficacy: targeting Peer-reviewed publication Sept’ 22

Setting up for pilot clinical study Platform technology for a family of new products: partially removable and resorbable implants, variety of formats for different anatomical sites/procedures

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US Total
Addressable
Market
>$1B
(AROA management
estimate)
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FY23 Catalysts & Milestones

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Post-COVID

COVID-19 expected to have a reduced impact through CY22

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AROA Sales
Momentum
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Fully dedicated field sales team. Myriad expected to drive growth.

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TELA Bio Sales Momentum

Clinical outcomes & cost savings driving increasing adoption

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Clinical Data
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Myriad MASTRR Registry & Symphony RCT.

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Enivo
Preclinical data, FDA regulatory
submission, initiate pilot clinical study
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FY23 Guidance[1]

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Forecast Product Sales NZ$51-55m

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Forecast Gross Margin
77%
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Cash Balance NZ$40-45m

1. Given the dynamic and evolving impact of COVID-19, guidance is subject to no material decline in US medical procedure numbers or sustained disruption to AROA’s manufacturing or transportation activities and TELA Bio, Inc. delivering on its revenue guidance of US$40-45million in CY22 (TELA Bio press release dated 10 May 2022). It also assumes an average NZD/USD exchange rate of 0.70.

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Thank you for attending

CONTACTS

Simon Hinsley Investor Relations m +61 401 809 653 shinsley@aroabio.com

64 Richard Pearse Drive, Auckland 2022, New Zealand

Matt Wright Media m +61 451 896 420 matt@nwrcommunications.com.au

PO Box 107111, Auckland Airport, Auckland 2150, New Zealand

Visit our website www.aroabio.com and find us on LinkedIn at www.linkedin.com/company/aroa-biosurgery-limited/

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Unlocking regenerative healing for every body