MACH7 TECHNOLOGIES LIMITED — Investor Presentation 2016

May 24, 2016

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Copyright © 2013 Mach7 Technologies

DISCLAIMER

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. Forward-looking 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.

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COMPANY OVERVIEW

Mach7 is a leading global provider of enterprise image management systems and services that allow healthcare enterprises to easily identify, connect and share diagnostic image and patient care intelligence. Mach7’s solutions improve patient care, compliance and clinical satisfaction.

• Mach7’s has developed a Vendor Neutral Archive (VNA) which allows consolidation of heathcare image and document storage regardless of the underlying and disparate legacy systems the healthcare business is operating.

• This standards-based enterprise imaging solution enables healthcare businesses to archive, consolidate, access and share medical imaging data across departments and locations.

• In May 2016, 3D Medical (3DM.ASX) completed a merger with Mach7 Technologies™ (Mach7). The company has been renamed Mach7 Technologies Limited (M7T.ASX).

• Corporate headquarters in Melbourne, Australia

• Operations in Burlington, Vermont, USA. Sales reps across North America, Asiapac.

CAPITAL STRUCTURE

CAPITAL STRUCTURE

Listed fully paid ordinary shares* 938.6m Unlisted performance shares 300.0m Unlisted options 121.8m Market capitalisation (close 24 May) A$46.5m Cash (4C - 31 Mar 16) A$0.6m Capital Raised – April 2016 (A$6c) A$2.5m Capital Raised – November 2015 (A$7.5c) A$4.0m

Mach7 “2015 Asia Pacific Medical Imaging Informatics Company of the Year” Frost & Sullivan

*500m shares are subject to escrow conditions

INVESTMENT PROPOSITION - HIGHLIGHTS

Global customer base, rapidly expanding

• 44 customers across 200+ sites, in eleven countries – built up mainly during last 2 years

• Mach7 has deployed over 1,000 imaging solutions at leading hospital systems in the US, Asia and the Middle East.

• Global success has led to significant revenue growth for 3 consecutive years.

First mover advantage with advanced IP technology

• Market disruptive technology, revolutionising the healthcare informatics space with impact across multiple market segments including VNA, Image Exchange, Department PACS, Enterprise PACS, ECM and Enterprise Viewers.

Strong order pipeline with contracted USD revenue base

• Multiple revenue streams from software licence, professional services and support.

Focused growth strategy

• Scalable platform with potential for substantial global growth via both sales channel and product line expansion.

ASX ANNOUNCEMENTS - LAST 6 MONTHS

May-16	Successful Completion of Pilot at Premier US Radiology Group
May-16	Mach7 Completes $2.5m Capital Raise
Apr-16	3DM and Mach7 Merger Completes
Mar-16	5-year distribution agreement with the leading diagnostic solutions provider in South Africa,
	IntriHEALTH – initial deployment across 40 diagnostic imaging sites throughout South Africa
Mar-16	5-year licence agreement with Penn State Milton S. Hershey Medical Center - a leading U.S. academic
	medical centre with 551 beds, over 66,000 emergency visits and 29,000 surgical procedures each year
Feb-16	Jenni Pilcher appointed as global CFO and CEO of Australian operations
Jan-16	3DM announces first sale under the eUnity distribution agreement. Five-year sales contract for the
	eUnity medial image viewer
Jan-16	M7T awarded US Patent for mobile device image capture
Dec-15	Completion of first implementation phase at Florida-based Broward Health
Dec-15	Software Licencing Agreement signed with Arizona-based Yuma Regional Medical Centre

PERFORMANCE HIGHLIGHTS

	FY13	FY14	FY15*	FY13/14 ∆%	FY14/15 ∆%
Number of Unique Customers	14	31	44	+120%	+42%
Number of Employees	28	36	43	+29%	+19%
	USDm	USDm	USDm
Software Licence Revenue	$2.0	$3.5	$4.1
Professional Services & Support	$0.4	$0.5	$1.6
Total Revenue	$2.4	$4.0	$5.7	+67%	+43%
Cash Operating Expenses	$5.2	$5.7	$7.1	+10%	+25%
EBITDA (Loss)	($2.8)	($1.7)	($1.4)	-39%	-18%
Contracted Revenue – Unrecognised at Year End	^	$4.7	$9.9	na	+111%

*Unaudited ^Not available

BUSINESS GROWTH

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KEY METRICS - GROWTH % (YEAR ON YEAR)
∆%13/14 ∆%14/15
NUMBER OF NUMBER OF TOTAL REVENUE CASH OPERATING EBITDA (LOSS)
UNIQUE EMPLOYEES EXPENSES
CUSTOMERS
121%
67%
42% 43%
29%
25%
19%
10%
-18%
-39%
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REVENUE MODEL

• Revenue derived from volume-based software license fees, services and annual support contracts – or pay per procedure model

• Contracts are 3-5 years, with ~80% of contract value earned upfront & upon implementation, with the balance being earned over the life of the contract

• Revenue model is evolving which provides flexibility for a range of customer budgets – e.g. upfront purchase through to pay-per-procedure

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Medium-sized Large-sized
Example Pricing Model
Hospital Hospital
Term of Agreement 3-5 years
43%
48%
Annual Procedures (no.) 200k +1m
9%
Upfront Software License Fee $200k $2m
Professional Services and
$36k pa $360k pa
Support
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Typical 5-year contract value breakdown:
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Software license Services Support

GLOBAL CUSTOMER BASE

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44 Unique Customer
31
Hospitals
8 Imaging centres
5
Others (e.g. Telstra)
11 Countries
200 Installed sites
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MACH7 GLOBAL LEADERSHIP TEAM

Albert Liong – CEO (U.S.)

• Executive management roles from finance to operations to CEO in private and public software, IT companies.

Jenni Pilcher – CEO Australia/CFO (Australia)

• 10+ years of CFO experience with global, listed companies, in the biotechnology industry. Most recently, CFO and Acting CEO for Alchemia and CFO and Company Secretary for Mesoblast.

• Ravi Krishnan – Founder, COO (Singapore)

• Mach7 platform visionary. Previously, executive with Agfa and GE.

Eric Rice – Chief Technology Officer (U.S.)

• 20 years in medical imaging technology. Instrumental in Mach7 product development. Previously with IDX and GE.

A TRADITIONAL HEALTHCARE PROVIDER I.T. INFRASTRUCTURE

Departmental Specialty Systems (many)

Departmental Specialty Systems (e.g. traditional data management PACS*) provide highly specialized workflow for scheduling, accessing, and diagnosing procedures.

Outputs from theses systems are often unstructured clinical media (e.g. pictures, videos, diagnostic reports…) that are not accessible outside of the department, nor within the Enterprise EMR system.

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Radiology Cardiology Pathology …

No sharing of information/images across Departments or with EMR

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EMR System provides for the management of structured data e.g. patient name, date of birth, medications, allergies, ….

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Electronic Medical Record (EMR) System

*Picture archiving and communication system

Enterprise System

A MACH7 HEALTHCARE PROVIDER I.T. INFRASTRUCTURE

Mach7 Enterprise Imaging Platform provides for an enterprise to consolidate all unstructured clinical media (i.e. pictures, videos, diagnostic reports) across departments.

Once consolidated, the data may be made accessible from the enterprise systems such as the EMR.

Departmental Specialty Systems (many)

Unstructured clinical media

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Radiology Cardiology Pathology …

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Data/media consolidation & Mach7 Enterprise Imaging Platform access

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Mach7 Enterprise Imaging Platform may be thought of as an EMR for all Clinical Media .

Structured data

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Electronic Medical Record (EMR) System Enterprise System

AN EVOLUTIONARY CHANGE TO TRADITIONAL PACS “DECONSTRUCTED” PACS

Healthcare providers are challenged with imaging interoperability across disparate PACS. Mach7 Enterprise Imaging Platform relieves providers from the vendor locks, competition, and lack of interoperability. Mach7 deconstructs PACS by consolidating archiving and communication across an enterprise while enabling departmental picture systems (e.g. viewers) to plug into the platform. From this… To this…

To this…

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BENEFITS TO THE HEALTHCARE PROVIDER

Why Are Healthcare Providers Consolidating Departmental Unstructured Clinical Media?

1. Enterprise-wide Access

• Ability to access all cross-departmental media from a single Electronic Medical Record.

2. Reduced Switching Costs

• Migrating data from one departmental system (i.e. PACS) to another at an average sized site (e.g.500,000 procedures p.a.) over 10 years could cost in excess of $2 million USD.

3. Reduced Storage Costs

• Advanced compression and storage management capabilities of Mach7 EIP reduces storage costs.

4. Reduced Vendor Risk

• Often vendor departmental systems lock in healthcare providers through proprietary data formats such that the providers are unable to move to clinically superior solutions.

5. New Revenue Channels

• Expanding revenue channels through increased specialist access to unstructured clinical data

MACH7 AND THE COMPETITION

Based on both market and customer feedback in comparison to our top competitors…

• Effort to Solution: 67% less effort to install and configure – unmatched technology.

• Server Infrastructure: 30%-50% smaller infrastructure footprint and therefore less cost to providers.

• Management FTE: Requires <1 FTE to manage the Mach7 solution; 60% less than our leading competitors.

• Cost of Migrations: Options exist to reduce migration costs by as much as 86%.

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The result…

Mach7 has won 86% of opportunities within the addressable market in 2014 and 2015.

Mach 7 recognizes the need to expand the addressable market both geographically and across market segments (i.e. VNA + Enterprise PACS)

MARKET OPPORTUNITY

Total Global Market Size (US$m)

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736 By 2020
2,700 By 2019
By 2018
440
715 By 2019
64 By 2017 (US Market Size Only)
$0m $500m $1,000m $1,500m $2,000m $2,500m $3,000m
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1. VENDOR NEUTRAL ARCHIVE (VNA) 2. DEPARTMENTAL PICTURE ARCHIVE & COMMUNICATION SYSTEMS (PACS) 3. ENTERPRISE PACS 4. ENTERPRISE CONTENT MANAGEMENT (ECM) - HEALTHCARE 5. ENTERPRISE VIEWER MARKET

• (1) IHS Technology, Medical Enterprise Data Storage, 2015 – 736m by 2020

• (2) Markets and Markets: 2013 VNA and PACS Market Report – 2.7bn by 2019

• (3) Markets and Markets: Healthcare Content Management System Market – 440m by 2018

• (4) Frost & Sullivan: US Enterprise Medical Image Viewers Market – 715m by 2019m

• (5) Frost & Sullivan: US Enterprise Medical Image Viewers Market – 64m by 2017 (US only)

MARKET GROWTH STRATEGY

Target high procedure volume hospitals and imaging centres with high growth potential

• Focus on US market whilst developing global relationships

• Build mutually beneficial partnerships with other suppliers in healthcare

• Offer both on-premises and cloud-based solutions

• Expand addressable market – e.g. enterprise PACS solution

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Total Healthcare institutions (no.) US
1. IMAGING CENTRE NETWORKS 4,734
1. IMAGING CENTRES 10,561
2. NON GOVERNMENT HOSPITALS 3,923
2. REGISTERED HOSPITALS 5,627
0 2,000 4,000 6,000 8,000 10,000 12,000
(1) Fast facts on US hospitals by American Hospitals Association for 2016
(2) Definitive Healthcare database on 20 Mar 2016
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MACH7 CORPORATE TIMELINE

• Initial Patents Filed

• Deployed First Global Customers

• (ME + SEA + USA)

• IHE Registered

• First SIIM and Arab Health

• Version 11 Product Launch

• Opened Indonesia Office

• First Year of 100% Growth in Orders, Licenses and Revenues

• Opened Saudi Arabia Office

• First European, Japanese

• and Australian Deployments

• App for Mobile Image Capture iModality is Released

• Mach7 Introduces Image Sharing

• Mach7 / 3DM Merger Agreement Signed

• Mach7 Releases Version 11.7

• Mach7 Universal Worklist Introduced

• First Deployment in Africa

• Opened US Office

• Product Launch

• Registered with the FDA

• First RSNA

• Expanded R&D in Burlington, VT office

• Deployed first Cloudbased Solution

• Version 11 Product Launch

• Mach7 Expands into New  Corporate Headquarters in  Listed on the Burlington, VT ASX

  • Merger with 3DM

• Opened Australian Office

• Obtained Global ISO Certification

• Frost & Sullivan Honors Mach7  Mach7 Physician & Patient with the 2012 Best Practices Award Portal Released

• Deployed First VNA in India and Indonesia