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MACH7 TECHNOLOGIES LIMITED Interim / Quarterly Report 2022

Feb 27, 2022

65285_rns_2022-02-27_228dde6e-213a-4fdc-8587-63445d412507.pdf

Interim / Quarterly Report

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1H FY22 Results Presentation February 28, 2022

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Mach7 Technologies ASX: M7T

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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) (“Corporation 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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Company Highlights
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Mach7 is a clear market leader in the provision of a complete enterprise imaging solution, encompassing imaging data management (vendor neutral archive and data administration tools), departmental workflow applications and a powerful enterprise and diagnostic viewer for the viewing of digital images across all healthcare specialties.

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Mach7 is in a strong financial
position with significant contract
wins in FY 2022 across multiple
market segments including
community care facilities,
Independent Delivery Networks
(IDNs) and channel partnerships.
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Our technology has continued to be
enhanced with upgrades that deliver
increased functionality for our
customers. New releases of the
Mach7 solution show continued
product innovation from our talented
software engineers which makes it
more attractive to the market.
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Will continue to extend our
product portfolio, maintain our
business flexibility and allow our
customers a level of vendor
independence through innovation
that makes them even more
successful in the delivery of high-
quality patient care.
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First-half highlights
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Record Sales Order growth (TCV) first half 22.1M +$11.3M or 206% PCP*

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Significant contract wins from US premierhealthcare providers Advocate Aurora $4.4M Trinity Health $11.2M

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Record EBITDA $3.1M +$6.3M or 192% PCP

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Contracted Annual Recurring Revenue (CARR) $16.8M

+6% (24% annualized) on Q421 $15.8M

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Record Revenue Growth $14.3M +$7.2M or 102% PCP

Annual Recurring Revenue (ARR) $13.4M providing 64% coverage of operating expenses

Strong financial position $20.2M cash +$5.8M or 40% PCP and no debt

Net Operating Cash Inflow $3.0M

driven by record Sales Orders & Revenue

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  • PCP – prior corresponding period

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Strong Sales Order Growth
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SALES ORDERS – AUD
H2 19 H1 20 H2 20 H1 21 H2 21 H1 22
22.1M
15.6M
10.7M
8.8M
4.7M
3.6M
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Highlights:

  • Sales growth is continuing to build from a record FY21 of $25M

  • $22.1M sales orders 1HFY22 (up 206% from $10.7M PCP).

  • Pipeline is continuing to build with an increasing interest coming in the form of tenders and channel partnerships

  • A mixture of market segments has demonstrated the flexibility of the Mach7 portfolio

  • High demand for Enterprise Viewing solution to enable teleradiology in COVID environment

  • Channel Partners with the eUnity viewer are an important part of sales growth moving forward

*FX rates normalized across the half years.

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Revenue
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Strong Revenue growth across all segments

Highlights:

  • +100% growth in both Diagnostic Viewing (eUnity) and Data Management (VNA) segments

  • Recurring revenue (Subscription revenue, Support & Maintenance revenue) $6.5M, up 27% from $5.1M PCP

  • Software Licences revenue (capital deals) $6.7M, up 447% from $1.2M PCP

  • Service revenue $1.1M, up 48% from $0.8M PCP

  • Achieved CY21 revenue goal of $27M (on constant currency basis)

  • 2H Sales Orders will continue to drive revenue growth:

  • Cabell ($2.1M TCV)

  • Penn State ($1.9M TCV)

  • Trinity wave 1 & 2 ($1.6M TCV)

1H 2022 1H 2021 % Change
Enterprise Diagnostic
Viewing (eUnity)
Enterprise Data
Management (VNA)
5.4 M
8.9 M
2.7 M
4.4 M
100%
102%
Total 14.3 M 7.1 M 102%

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EBITDA
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Improved Gross Margins & synergies realized will increase profitability for 2H 22

1H 2022 1H 2021 % Change
Revenues 14.3 M 7.1 M +102%
Distributor Fees 0.5 M 0.3 M +48%
Gross Margins % 97% 96%
Operating expenses 10.7 M 8.3 M +29%
EBITDA 3.1 M (3.2 M) 192%

Highlights:

  • Gross margins will continue to improve as 3D capability is developed in-house

  • Operating expenses of $10.7M for 1H expected to increase for 2H from salary actions taken to retain talent

  • Recurring revenue is providing 64% coverage of operating expenses

  • Continued revenue growth expected to contribute to positive EBITDA for 2H

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Awards and Publications
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Frost &
Industry Tech CIO
Sullivan
Insights Review
2021 Global Enterprise 2021 Top 10 Companies 2021 Top 20 Most
Imaging Solutions Product Revolutionizing Promising Workflow
Leadership Award Healthcare Solution Providers
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KLAS – Defined
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The Best in KLAS report recognizes software and services companies who excel in helping healthcare professionals improve patient care.

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KLAS surveys’ healthcare IT customers (providers) throughout the calendar year and releases its final findings in Q1 of the following calendar year. That is, Best in KLAS 2022 is based on data accumulated through data surveys and insights in CY 2021.

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A Best in KLAS award signifies to the healthcare IT industry the commitment and partnership that the top vendors should provide.

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The Best in KLAS report recognizes software and services companies who excel in helping healthcare professionals improve patient care.

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All rankings are a direct result of the feedback of thousands of customers and providers over the last year.

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Best in KLAS is highly competitive and based on customer experiences and satisfaction. The goal of most healthcare IT providers is to be listed in the “Solution Comparison” section as these are the healthcare IT companies that have reached the minimum customer survey threshold and scored high enough to be ranked as one of the best for their competitive field.

While “Best in KLAS” designates the #1 overall rank based on weighted scores, being positioned in the top 4 is considered the best of the pack and creates tremendous visibility in the markets as the IT companies that present the best value and customer satisfaction.

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Recognition of Mach7
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Best in KLAS Best in KLAS CIO
2022 Report 2022 Report Bulletin
#2 #3 50 Most Influential
Companies of the Year 2022
Industry Performer Industry Performer
To be published in April 2022
Universal Viewer Vendor Neutral Archive
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Mach7 Performance
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Best in KLAS 2022Universal Viewer

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Vaulted to #2 overall ranking in Market Held the #1 spot for most of CY 2021 Currently (as of Feb 9, 2022) in #1 rank

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95%
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Notable performance is a 95% score for “Would you buy again.” Industry average is 84%

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Mach7 Performance
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Best in KLAS 2022 - VNA

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Mach7 springs out of Limited Data segment to #3 in performance “Solution Comparison” listing.

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Mach7 goes from 7 to 18 distinct site survey respondents showing significantly increased customer engagement and attachment.

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Outperforming similar size and type vendor competitor (Hyland- Acuo).

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Beating out large legacy PACS vendors including GE, Agfa and Philips.

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Outlook
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Growing Strong sales Award-winning Building up optimism performance products our business Growing optimism Strong 1H, which we Highly acclaimed FY2021 was about within the Healthcare expect to continue in products being building up our business IT sector. Emphasized 2H. New sales team recognised in the in a sustainable way. In by continued M&A gaining traction in a marketplace, FY22 our focus turned to consolidation and the high-growth industry. resulting in our customers needs and dependency of Continued revenue increased traction creating an inclusive clinicians to work growth expected to product roadmap to remotely with contribute to positive shape our long-term technology EBITDA for 2H product direction

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Contact us

CEO, Mach7: Mike Lampron [email protected]

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CFO, Mach7: Steve Parkes [email protected]

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Investor Relations: Simon Hinsley, NWR Communications +61 (0) 401 809 653 [email protected]

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Registered Office: Level 4 | 100 Albert Road South Melbourne, VIC

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Mach7 Technologies

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