IMPEDIMED LIMITED — AGM Information 2020

Oct 27, 2020

28 October 2020

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ImpediMed Limited – 2020 Annual General Meeting Chairman’s Address

So welcome and thank you for joining us today.

As I begin my prepared remarks, I hope that all of you and your families are healthy and are continuing to successfully navigate this pandemic.

The past eight months have been extraordinarily challenging for all of us, but I especially want to extend our gratitude to our customers and the healthcare professionals who have continued to serve our patients with lymphedema throughout the corona virus crisis.

Thank you as well to our shareholders, for your continued commitment to our mission, as we continue to make bioimpedance spectroscopy the standard of care for patients.

Fiscal year 2020 was certainly a turbulent time for ImpediMed, but we have emerged as a much stronger company firmly rooted in digital healthcare. Our SOZO digital health platform is a highly disruptive technology that provides our customers with a cloud-based software solution enabling the:

• early detection of secondary lymphoedema,

• provides fluid status for patients living with heart or renal failure,

• and can be used to monitor and maintain overall health – all on a single device.

By leveraging the sale of Software-as-a-Service, or SaaS, ImpediMed has established a highly scalable business model that is now well established in the management of lymphoedema.

The company achieved many important milestones throughout the year. Importantly, total revenue grew 38% to $5.7 million with Sozo revenue of $4.7 million. Sozo revenue grew 99% versus the prior year and Sozo gross margin increased 16 basis points to 76%.

Sozo SaaS Revenue increased by 110% year-over-year to $3.4 million. SOZO SaaS gross margin steadily increased throughout FY20, delivering an impressive 86% gross margin in June. We expect this trend to continue with SaaS Gross Margin increasing to over 90% in FY21.

Looking ahead, the Company remains focused on three key areas of growth: Oncology, Heart Failure and Renal Failure. Our Managing Director and CEO, Richard Carreon, has shown tremendous vision and leadership in transforming ImpediMed to become a contemporary medical technology company. This vision has put the Company in a position to thrive, even during the pandemic.

Our Sozo technology is being adopted within the medical community at a rapid pace, and our connected digital health platform puts us at the forefront of the digital revolution in medicine.

We have a strong Board of Directors at ImpediMed with the experience and skill necessary to assure sound governance, while also providing effective support and guidance for Management.

During FY20, we further strengthened our Board with the addition of Mr. David Anderson. David is the President and CEO of HealthNow Systems, operating as Blue Cross Blue Shield of New York State and he brings a deep understanding of reimbursement and health insurance providers.

We are very excited to welcome David to our board and we anticipate his experience will be invaluable in helping guide ImpediMed through the commercialization of its SOZO Digital Health Platform.

On behalf of the Board, I would like to thank our ImpediMed employees for their perseverance during this remarkable year. We are grateful for their dedication and commitment to support our customers and patients during this extraordinary time.

I thank my fellow Directors for their ongoing commitment to ImpediMed, and finally, I thank you, our shareholders, for your ongoing support throughout the year and during our recent capital raise.

It is now my pleasure to introduce Mr. Richard Carreon, who will address our results in more detail and describe the work he is leading to deliver better outcomes for our patients, customers and you, our shareholders.