MACH7 TECHNOLOGIES LIMITED — AGM Information 2022

Nov 16, 2022

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Mach7 Annual General Meeting

17 November 2022 PRESENTATION

Disclaimer “forward looking” statements

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Summary of information: This presentation contains general and background information about Mach7 Technologies Limited (“M7T”) activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision. This presentation is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or under any other law. The presentation does not purport to contain all the information that a prospective investor may require in assessing a possible investment in M7T nor does it contain all the information which would be required in a prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth). The information provided is in summary form, has not been independently verified, and should not be considered to be comprehensive or complete. It should be read solely in conjunction with the oral briefing provided by M7T and all other documents provided to you by M7T. The information in this presentation remains subject to change without notice. M7T is not responsible for providing updated information and assumes no responsibility to do so.

Not financial product advice: This financial information provided in this presentation is for information purposes only. The information contained in this presentation is of a general nature only and is not a financial product, investment advice or a recommendation to acquire M7T securities and has been prepared without taking into account the objectives, financial situation or needs of any person or entity. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. M7T is not licensed to provide financial product advice in respect of its securities or and other financial products. Cooling off rights do not apply to the acquisition of M7T securities. M7T assumes that the recipient is capable of making its own independent assessment, without reliance on this document, of the information and potential investment and will conduct its own investigation.

Disclaimer: M7T and its related bodies corporate and each of their respective directors, agents, officers, employees and advisors expressly disclaim, to the maximum extent permitted by the law, all abilities (however, caused, including negligence) in respect of, make no representations regarding, and take no responsibility for, any part of this presentation and make no representation or warranty as to the currency, accuracy, reliability or completeness of any information, statements, opinions, conclusions or representations contained in this presentation. In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or future performance of M7T.

Future performance: This presentation contains certain forward-looking statements and opinions. The forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forwardlooking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of M7T. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast.

Risks: An investment in M7T securities is subject to investment and other known and unknown risks, some of which are beyond the control of M7T. You should have regard to the ‘Key Risks’ section of this presentation which outlines some of these risks.

Not an offer: This presentation is not, and should not be considered as, an offer or an invitation to acquire securities in M7T or any other financial products and neither this document nor any of its contents will form the basis of any contract or commitment. This presentation is not a prospectus. Offers of securities in M7T will only be made in places which, or to persons to whom it would be lawful to make such offers. This presentation must not be disclosed to any other party and does not carry any right of publication. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of M7T.

No distribution in the US: This presentation is not an offer of securities for sale in the United States. Any securities to be issued by M7T have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act. No public offer of the securities is being made in the United States and the information contained herein does not constitute an offer of securities for sale in the United States. This presentation is not for distribution directly or indirectly in or into the United States or to US persons.

Monetary values: Unless otherwise stated, all dollar values are in Australian dollars (AUD$). The information in this presentation remains subject to change without notice.

Sophisticated and professional investor: By attending this presentation, you present and warrant that (i) if you are in Australia, you are a person to whom an offer of securities may be made without a disclosure document as defined in the Corporation Act 2001 (Cth) Act”)) on the basis that you are exempt from the disclosure requirements of Part 6D.2 in accordance with Section 708(8) or 708(11) of the Corporations Act; (ii) if you are in the United States, you are a qualified institutional buyer (as defined under Rule 144A Under the U.S. Securities Act; (iii) if you are outside Australia and the United States, you are a person to whom an offer and issue of securities can be made outside Australia without registration, lodgement or approval of a formal disclosure document or other filing in accordance with the laws of that foreign jurisdiction. If you are not such a person, you are not entitled to attend this presentation. Please return this presentation and any copies and do not provide this presentation to any other person.

No distribution: Distribution of this presentation may be restricted by law. Persons who come into possession of this presentation should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable security laws.

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(“Corporation

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CEO Presentation Mr. Mike Lampron

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approved by the Board

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CEO Presentation – 2022 AGM
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Business Overview
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• Our Business

• Our Market

• Our Products

• Our Global Footprint

• Our Differentiators

• Our FY22 Highlights

• Our FY23 Focus

• Outlook

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Our Business
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Mach7 – The Enterprise Imaging Solution

Mach7’s medical imaging software solution centralises, stores, organises and displays patient data across the healthcare enterprise – connecting hospital networks and facilitating data flow between hospital departments and clinicians everywhere.

The Mach7 product suite works with or replaces a healthcare enterprise’s existing, and sometimes antiquated, medical imaging infrastructure to:

• affordably fill the connectivity gaps created by siloed departmental imaging solutions,

• eliminate IT complexity, and

• ensure clinicians have a complete and comprehensive view of their patients' imaging history

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Our Market
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Enterprise Imaging is a strategy rather than a product

Enterprise imaging refers to the ability to store and/or view medical images across the healthcare enterprise from more than one service line or department.

Enterprise Imaging

Vendor Neutral Archive (VNA)

Universal Viewer

Image Exchange

Picture Archive Communication System (PACS)

The ability to store images from multiple service lines or departments. Strong functionality is required to help healthcare providers to tag, store, and retrieve images.

The ability to view images from multiple service lines. Images can be pulled from a VNA or standalone, departmental systems. The ability to quickly load images of various sizes and formats is essential.

Extends the benefits of enterprise imaging by sending images to other healthcare organisations. Scalability, technology, and relationships are important features.

PACS is an ancillary part of enterprise imaging, with most PACS vendors offering VNA, universal viewer, and image exchange technology. Images from the PACS are often the starting point for enterprise imaging.

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Our Products
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Enterprise Imaging – a focus on the entire healthcare network

Mach7 provides an enterprise-wide interoperable platform for storing, retrieving and viewing all medical imaging data in one vendor neutral ecosystem. It comprises:

Enterprise Data Management

Enterprise Diagnostic Viewing

Departmental Workflow Applications

Vendor Neutral Archive (VNA)

• Patient data and image capture, indexing, management, storage, distribution, viewing, exchange, and analysis of all clinical imaging and multimedia content in one powerful platform

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Diagnostic & Enterprise Viewing

• eUnity zero-footprint viewer

• Displays highest quality images

• • Accessible on any device and integrates with any PACS, VNA, or other image archive and can launch from any EMR

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Worklist & Quality Control tools

• Connectivity and workflow products

• • Powerful universal worklist and quality control tools to drive diagnostic decisions

• Open platform supports 3[rd] party solutions and AI adoption

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PACS = Picture Archive Communication System, EMR = Electronic Medical Record

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Our Global Footprint
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150 Customers
15 Countries
Australia
Canada
China
France
Hong Kong
Indonesia
Italy
Netherlands
Qatar
Philippines
Singapore
Saudi Arabia
Hospital
United Kingdom
systems around
United States
the world use
Vietnam
Mach7
Technologies
= Primary Markets
= Global Presence
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Our Differentiators
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Enterprise First Strategy

  - **Top Product Rankings**

• VNA backend data management solution designed and built for entire healthcare network rather than the radiology department

• Interoperable Platform

• Works with existing and future hospital technology - allows image enablement of the EMR and integration of advanced clinical applications and tools, including AI

• Tech Stack Independence

• Promotes customer control of tech stack via Mach7 module or end-to-end imaging solution. Future-proof scalability; low GPU consumption

  • Mach7’s VNA ranked #3 and Viewer ranked #2 by independent customer survey

• Zero Footprint Viewer

  • Instant access to patient medical images on any device via EMR or web browser without requirement for additional software or plugins

• Broad Market Appeal

  • Mach7 software caters to both acute care and outpatient settings; well placed for trend to latter

• Cloud Compatibility

  • Robust data management architecture allows system to be hosted on-premise or via cloud

• Unique Deployment Flexibility

Security

• Migration services - initially a strategy to secure business, now a valued service to preserve tech investment already made by hospital networks

• Customers own their imaging data; Mach7 ensures product security via regular penetration testing and ISO certification

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VNA – Vendor Neutral Archive; EHR – Electronic Medical Record; AI – Artificial Intelligence; GPU – Graphics Processing Unit

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Our FY22 Highlights
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Record Sales Order growth (TCV)[1 ] $33.2M

+$7.6M or 30% PCP[2]

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Record Revenue $27.1M

+$8.1M or 42% PCP

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Contracted Annual Recurring Revenue (CARR) $17.3M +$1.5M or 9.5% PCP

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Annual Recurring Revenue (ARR)

$13.4M recognised +$2.5M or 23% PCP $14.4M run rate +$1M or 7.5% PCP

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Significant contract wins from US premier – healthcare providers Advocate Aurora Trinity Health

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EBITDA $2.8M +$4.6M or 253% PCP

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Net Operating Cash Inflow $6.3M +$4.8M or 320% PCP driven by record Sales Orders & Revenue

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Strong financial position $25.7M cash +$7.4M or 40% PCP and no debt

TCV – Total Contract Value PCP – Prior Corresponding Period

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Our FY23 Focus
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Sales/Partnerships

New Sales and New Partnerships

Sales effort on New customers and increasing book of business

Dedicated channel partner sales manager.

Existing and new partnerships (eg: Nuvodia) expand sales pipeline.

Client Outlook began as a partnership, resulted in a successful acquisition.

Investment

Engineering Excellence

Engineering hiring phase near complete - attrition replacement and some expansion.

R&D is a people cost for Mach7 – it is expensed rather than capitalised. Continue to strengthen team and core company culture

Cashflow

Remain Cashflow Positive

Cash receipts to be boosted by staggered capital deals already contracted.

Q1 cashflow impacted by one off costs; successive quarters to improve.

On track for positive full year operating cashflow for fourth consecutive year.

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Outlook
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Industry

Growing trend for hospitals to outsource non-urgent radiology. Acute care settings account for ~60% of US medical imaging; expect this proportion to apply to ambulatory/outpatient clinics within 5 years.

Consolidation in the US hospital sector continues to aid tech spending rebound. M&A amongst medical imaging vendors creating disruption and presenting both sales and acquisition opportunities.

Product

Highly acclaimed products translating to marketplace recognition and increased traction.

Mach7 products span ambulatory to acute care spectrum; well placed to benefit from structural change.

Replenished and innovation-focused R&D team; own-brand visualisation toolkit for eUnity viewer and new releases prioritised.

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Sales & Marketing

Financial

APAC region to make greater contribution to sales orders in FY23 than prior year.

Targeting FY23 sales orders of at least $36M (+8% on FY22)

Revenue guidance of +20% on FY22 of $27.1M.

Robust registrations for flagship RSNA Conference expected to deliver additional sales opportunities and potential partnerships.

Staggered capital deals and sales order visibility bridges gap from CARR of $17.9M and ARR run rate of $15.5M at September 30, 2022.

Sales pipeline continues to grow with benefit of new partnerships; however some timeframes extended.

Revenue and cashflow remain lumpy; timing of deal flow may see sales orders weighted to 2H FY23.

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CARR – Contracted Annual Recurring Revenue; ARR – Annual Recurring Revenue