CYCLOPHARM LIMITED — AGM Information 2015

May 25, 2015

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Cyclopharm Limited 2015 Annual General Meeting

May 2015

Agenda

Acting Chairman’s Address Managing Director’s Review Questions Formal Business

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Acting Chairman’s Address DAVID HEANEY

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Introduction

• World leading, high demand, patented nuclear medicine technologies

• Profitable and cash flow positive – growing on record FY14 results

 Multiple significant growth options being implemented now

 Strong balance sheet with capacity to fund ongoing R&D

• Market beginning to recognise our achievements

Technegas Sales Revenue

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$2.11m
$1.87m
$2.10m
$9.38m
$8.58m
$7.27m
2012 2013 2014
PAS Generators
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Cyclopharm Our business lines

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(Technegas)

Manufacturer and distributor of lung ventilation imaging drugs and equipment

• Continues to generate growing revenue, profits and cash flows

• Trials underway to extend usage to COPD treatment & monitoring

• FDA trials progressing

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• Technology which • extends the life of nuclear IP Secured • isotopes by up to 50%

• Finalised testing in 2014

• First sales expected in late 2015

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• Joint Venture with Macquarie Growth tied to hospital ramp‐up •

• University Hospital Now EBIT positive

• Cyclotron business Received $2.65m cash from (ceased operations in ANSTO/PETNET in 2H 2014 •

• April 2014) Facility’s medium to long term

• (facility) status under evaluation

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Managing Director’s Review JAMES MCBRAYER

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FY14 Financial Highlights

• Record sales of $12.1 million

• Record Technegas division operating EBITDA of $2.2 million

• Record NPAT of $4.1 million (vs 2013 loss of $10.1m), includes:

• Technegas division NPAT: $2.4 million; and

• Net litigation proceeds of $2.2 million

• Technegas division operating expenses down 5.3% vs 2013 leveraging off implemented cost containment program

• Cashflow from operations of $4.5 million

• NAB debt fully repaid with net cash of $3.3 million at year end

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FY14 Operating Highlights

• Technegas’ sales revenue grew in all major markets

• Sales of Technegas Generators & Patient Administration Sets up 10% on pcp

• Canada now represents our no.1 market

• Commenced Technegas COPD trials in China

• Progress in obtaining FDA approval for Technegas in the US market

• Secured IP protection for high value Ultralute technology

• On track for 2015 sales

• Resolved Cyclopet matter in our favour

• Operations ceased in April 2014

• Cyclotron facility reinstatement fully funded by insurance is currently underway

• Medium to long term status under evaluation

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Group Profit & Loss

Record Sales and Profit

• Technegas continues to perform strongly • Price increases and lower A$ drove improved gross margins • Costs management initiatives saw cost reductions across almost all major expense categories • Low tax rate driven by recognition of prior year tax losses and R&D tax offset • Operating cash flow of $4.5m in line with reported NPAT – assisted by litigation settlement	Year ended 31 December ($000’s) Underlying Results1: Revenue Technegas EBITDA(Excludes FDA costs) Cyclopet EBITDA(FY14 = 4 months ops) Underlying EBITDA Depreciation and amortisation Underlying EBIT Reported EBIT Interest Tax (expense)/benefit Reported NPAT Reported Basic EPS(cents)	2014 2013
		12,047 11,882 2,638 2,246 (816) (1,268)
		1,822 978 (266) (643)
		1,556 335 3,578 (9,994) (107) (270) 595 146
		4,066 (10,119) 7.0 (17. 6)

Underlying Results represent results from Continuing Operations excluding one off items related to discontinued Cyclopet business (Litigation settlement and costs + impairment expense), CLSA deposit, FDA expenses and MMI equity accounted earnings.

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Group Balance Sheet

Balance Sheet strong with Major Debt Retired

• Improved cash position driven by strong cash flows from operations • Net proceeds from Cyclopet settlement applied to eliminate NAB debt • Capacity to fund growth initiatives and ongoing R&D • Following reinstatement of the Cyclotron facility the medium to long term future of the Cyclopet facility is under consideration to include divestment	Year ended 31 December ($000’s) Cash Other current assets Non‐current Assets	2014 2013
		3,268 1,221 5,582 6,231 2,111 1,067
	Total Assets	10,961 8,519
	Current Liabilities Borrowings Non‐current Liabilities	2,874 2,793 246 2,417 85 138
	Total Liabilities	3,205 5,349
	Net Assets	7,756 3,170

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Technegas – FY14 Performance

Record financial result

• Technegas recorded a record financial result in FY14 • PAS margins enhanced by improved local prices in Asia and Latin America and forex • Generator revenue increased from higher volumes and prices offset by lower service revenue • Strong financial perform supports ongoing investment in R&D and costs associated with expansion into new markets	Year ended 31 December ($000’s) Technegas Results1: Sales Revenue PAS Generators	2014 2013 Change

Underlying Results represent results from Continuing Operations excluding one off items related to discontinued Cyclopet business (Litigation settlement and costs + impairment expense), CLSA deposit, FDA expenses and MMI equity accounted earnings.

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Technegas Sales Revenue

Consistent Organic Growth

Patient Administration Sets (PAS)

Technegas Sales Revenue

• PAS revenue up 9.3% from 2013

• PAS volumes down 1.7% from 2013

Technegas Generators

• Generator revenue up 12.4% from 2013

• Consistent year‐on‐year demand

• Improved revenue from volume and price increase partly offset by decline in service revenue

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$2.11m
$1.87m
$2.10m
$9.38m
$8.58m
$7.27m
2012 2013 2014
PAS Generators
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Technegas Expanding the global footprint

• Technegas sold in 55 countries

• In 2014 Canada became largest single market for Technegas

• Over 3,000,000 patient studies since 1986

• 1,350 Technegas generators sold globally

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Technegas Sales Revenue
by Region
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Asia
Pacific
19%
Europe
& Other North
60% America
21%
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• Expanding operations in North America pending clinical trial and approval of United States FDA

• Seeking regulatory approval to commence sales in Russia

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Technegas New Indications – COPD

• Cyclopharm is undertaking a trial in China to assess the use of Technegas for the management of Chronic Obstructive Pulmonary Disease (COPD) − 200 patient trial expected to conclude in late 2015

• Expanding the use of Technegas from Pulmonary Embolism (PE) diagnosis to COPD would represent significant expansion of the market size

• In Australia in 2014, there were approximately 35,000 Technegas procedures for PE vs approximately 620,000 COPD patients

• In the US, there were approximately 600,000 cases of PE in 2005 vs an estimated 15 million patients suffering from COPD in 2002

• In China, at any time more than 56.6 million people in China have COPD

• Key drivers of the Chinese COPD market include:

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• China is the greatest producer and user of tobacco in the world*

• Rapidly Ageing Population

• The use of biomass burning at home for cooking

• Incidence of post‐pulmonary tuberculosis

*Fang X et al. Chest 2011; 139: 920-929

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Ultralute[TM]

• Cyclopharm patented technology

• Extends the effective life of Mo‐99 generator up to 50%

• Global interest continues to grow

• Patent secured in 2014

• First sales anticipated in late 2015

• Market introduction represents a base platform for additional applications

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PET
•
Joint venture with:
X‐Ray
•
50% Alfred Health Solutions
CT
•
30% Macquarie University
•
20% Cyclopharm
• Cardiac
Comprehensive suite of imaging modalities
CT
•
State of the art research platform
• MRI
Growth and profitability linked to ramp‐up
of Macquarie University Hospital
Ultra‐
sound
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• Sales revenue increased in 2014 as outpatient initiatives implemented at Macquarie University Hospital take effect

Summary and Outlook

Solid growth prospects and healthy capital position

• Record financial results in 2014

• Underlying profitability up significantly due to sales and margin expansion

• Technegas organic revenue and earnings growth to continue, driven by:

• Emergence of Canada as largest single market

• Improved demand and pricing in Europe and China

• Seeking regulatory approval to commence sales in Russia

 USFDA trials underway

• Pursuing options to accelerate commercialisation timetable

• Developing additional Technegas indications to include COPD

• Targeting first Ultralute[TM] revenue in late 2015

• Balance sheet strong

• Future cashflows may allow consideration of capital management

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2015 AGM QUESTIONS

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2015 AGM FORMAL BUSINESS

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Proxy Summary

Resolution	Business	For*	Against	Abstain	Proxy’s discretion
1	Remuneration Report	31,662,895	10,984,944	-	-
2	Re-election of Mr David Heaney	42,640,294	-	7,545	-
3	Renewal of share buy- back capacity	31,639,875	11,002,534	5,430	-
4	Issue of LTIP shares to the Managing Director	42,565,217	50,804	31,818	-
5	Maximum Non- Executive Director Remuneration	31,642,618	11,005,221	-	-
6	Amend 2013 LTIP Grant Performance Hurdle	31,590,800	11,025,221	31,818	-
7	Amend LTIP to allow allotment or transfer	31,590,800	11,025,221	31,818	-

*Includes Open Useable Proxies that have instructed the Chairman to vote on their behalf and have voted in favour of the resolution.

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Disclaimer

Certain views expressed here contain information derived from publicly available sources that have not been independently verified.

The presentation includes certain statements, estimates and projections with respect to the anticipated future financial performance of Cyclopharm Limited and as to the markets for the Company’s products. Such statements, estimates and projections reflect various assumptions made by the directors concerning anticipated results, which assumptions may or may not prove to be correct. Cyclopharm Limited has not sought independent verification of the information in this presentation. While the directors believe they have reasonable grounds for each of the statements, estimates and projections and all care has been taken in their preparation, no representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of statements, estimates and projections contained in this presentation. Such statements, estimates and projections are by their nature subject to significant uncertainties, contingencies and assumptions.

To the maximum extent permitted by law, none of Cyclopharm Limited, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of information contained in this presentation.

All references to dollars are to Australian dollars.

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