MICRO-X LIMITED - Investor Presentation 2019

Micro-X Limited, ABN 21 153 273 735

==> picture [159 x 46] intentionally omitted <==

COMPANY PRESENTATION

Key updates to Company’s strategies, activities & milestones - 15th Bioshares investment summit in Queenstown, NZ

Adelaide, Australia, 26 July 2019: Australian hi-tech company Micro-X Ltd (ASX:MX1) ( Micro-X or the Company ), a leader in cold cathode x-ray technology for the health and security markets globally, is pleased to announce that Peter Rowland, Managing Director will be presenting at 4pm today at the 15[th] Bioshares Biotech Summit 2019 ( Bioshares Summit ).

The Company’s Presentation for the Bioshares Summit is attached . The Presentation outlines certain key updates in the Company’s strategies and activities as outlined in recent announcements, as well as updates to targeted commercial and financial Milestones.

The Bioshares Summit will take place in Queenstown, New Zealand from 26 to 27 July 2019 and is hosted by Bioshares, a leading independent Australian biotech investment publication and attended by approximately 180 delegates including leading biotech executives, fund managers and investors.

– ENDS –

About Micro-X

Micro-X Limited (the Company ) is an ASX listed hi-tech company developing and commercialising a range of innovative products for the global health and security markets, based on proprietary cold cathode, carbon nanotube emitter technology. The electronic control of emitters with this technology enables X-ray products with significant reduction in size, weight and power requirements, enabling greater mobility and ease of use in existing x-ray markets and a range of new and unique security and defence applications. The Company has its core R&D, engineering and production capability at its facility in Adelaide, Australia.

The Company’s first product, the Carestream DRX Revolution Nano , is an ultra-lightweight digital medical x-ray system for the rapidly expanding mobile x-ray market in hospitals and healthcare. The Carestream DRX Revolution Nano holds 510(k) and CE Mark certifications and is sold commercially in a number of global markets by the Company’s exclusive distributor, Carestream Health, Inc.. The Company has a portfolio of innovative products in development, aimed at customer solutions where there is little or no competition. This includes the Mobile Backscatter Imager or MBI which will image Improvised Explosive Devices for airport security, defence and counter-terrorism applications. The MBI is being jointly developed in partnership with Thales, a global supplier of defence and security technology systems, who are providing technical support and $10 million of funding.

CONTACTS

Micro-X Limited	Investor Enquiries
Peter Rowland Managing Director Tel: +61 8 7099 3966 E: [email protected]	David Allen / John Granger Hawkesbury Partners Tel: +61 2 9103 9494 E: [email protected] [email protected]

Micro-X Limited, 1284 South Road, Tonsley, South Australia, 5042, AUSTRALIA

www.micro-x.com

==> picture [236 x 44] intentionally omitted <==

Ltd

ACN 153 273 735

ASX: MX1

Company Presentation Setting Course & Scaling up commercial activities

Bioshares Biotech Summit 2019, Queenstown NZ, 26[th] July 2019 Peter Rowland Managing Director & CEO

Disclaimer

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

This document contains certain forward-looking statements that involve risks and uncertainties. Although we believe that the expectations reflected in the forward-looking statements are reasonable at this time, we can give no assurance that these expectations will prove to be correct.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements due to many important factors, risk and uncertainties including, without limitation, risks associated with estimating potential quantity and timing of sales, risks associated with medical device development and manufacture, risks inherent in the extensive regulatory approval processes mandated by regulatory authorities, delays in clinical trials, future capital needs, general economic uncertainly and other risks detailed from time to time in the Company’s announcements to the ASX.

Moreover, there can be no assurance that others will not independently develop similar products or processes or design around patents owned or licensed by the Company, or that patents owned or licensed by the Company will provide meaningful protection or competitive advantages.

All reasonable efforts have been made to provide accurate information, but the Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of this presentation, except as may be required under applicable laws. Recipients should make their own enquiries in relation to any investment decisions from a licensed investment advisor.

Company Presentation – July 2019

Overview

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Next generation X-ray for global health and security markets

ASX listed hi-tech X-ray company based in Tonsley, Adelaide
Next generation, cold cathode nano technology enables X-ray products with significant reduction in size, weight and power requirements

==> picture [214 x 215] intentionally omitted <==

greater mobility and ease of use in existing medical applications
range of new and unique security and defence applications
Strategy of technology development and partnering for commercial access
First commercial product , the Carestream DRX Revolution Nano , is an ultra-lightweight digital x-ray system for the mobile x-ray market in healthcare
510(k) and CE Mark certifications
sold in a number of global markets including USA by Carestream Health, Inc
Thales partnership supports defence and security technology applications

Carestream DRX Revolu7on Nano

Early revenue with growing sales and near term additional products

Company Presentation – July 2019

Investment Highlights

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Advanced technology, design and manufacturing company

Platform technology – health and security applications
Built strong Design and Manufacturing capability & processes
Addressed manufacturing issues with CNT insourcing project
First product, DRX Revolution Nano , already sold in 8 countries
Completed major manufacturing and facility expansion
Expands capacity and increases margins and quality control
Delivered strategic partnerships and investors
Carestream – ex Kodak Medical, US2.5$b sales, 6,000 employees
Thales – Global technology giant, €16b sales, 66,000 employees
Won contracts from British and Australian governments
Early revenue – pathway to revenue and margin growth

==> picture [284 x 190] intentionally omitted <==

==> picture [81 x 105] intentionally omitted <==

==> picture [83 x 105] intentionally omitted <==

==> picture [104 x 105] intentionally omitted <==

Micro-X engineering and manufacturing facility, Tonsley, Adelaide

Company Presentation – July 2019

Next generation X-ray technology

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Our carbon nanotube technology provides a revolution in X-ray products & functions

Existing X-Ray Technology

Next Gen

==> picture [155 x 29] intentionally omitted <==

Filament

Technology unchanged since 1896 Hot filament generates X-ray beam X-ray still dominant form of diagnostic imaging Mobile bedside X-ray – fastest growing segment Siemens, GE, Canon, Philips, Carestream

==> picture [60 x 66] intentionally omitted <==

LED

CNT emitter + electronic control generates X-ray beam Up to 10x smaller X-ray tube Considerably more efficient with no heat Significant increase in current functionality New security & military applications

Company Presentation – July 2019

Product roadmap

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Planned product evolution – from current X-ray uses to solving unmet needs

==> picture [99 x 137] intentionally omitted <==

==> picture [125 x 118] intentionally omitted <==

----- Start of picture text -----

Mobile medical X-ray
Nano
Launched 2019
----- End of picture text -----

==> picture [310 x 250] intentionally omitted <==

----- Start of picture text -----

Mobile medical X-ray Counter terrorism
for Military IED Detection
Rover
MBI
Launch late 2020
Prototype end 2020
----- End of picture text -----

==> picture [147 x 146] intentionally omitted <==

==> picture [129 x 118] intentionally omitted <==

----- Start of picture text -----

Airport screening
MBS
Prototype ~ 2021
----- End of picture text -----

==> picture [35 x 32] intentionally omitted <==

==> picture [303 x 20] intentionally omitted <==

----- Start of picture text -----

Healthcare applications
----- End of picture text -----*

==> picture [321 x 20] intentionally omitted <==

----- Start of picture text -----

Military & Counter terror applications
----- End of picture text -----

Security applications

Additional healthcare opportunities
Mobile 3D CT imager for stroke diagnosis

Company Presentation – July 2019

Business model & Strategies

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Commercialise our proprietary technology products with selected global partners

Multi-pronged strategy in healthcare, defence and security – based on proprietary technology
World leading in-house design and technology capabilities
Expand highly robust quality manufacturing capability
Enter markets in partnership with globally recognised brands
First product in healthcare builds credibility before entering new markets without competition

v Earn attractive technology margins as an OEM manufacturer in large global markets

seek opportunities to move up the value chain

Company Presentation – July 2019

Corporate Snapshot

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Growth stage company with institutional and strategic investor support

Share & Trading Statistics (Closing Price on 22 July 2019)

Share Price Total Shares On Issue Options Issued Convertible Notes	$0.32 per share 158.3 million 13.7 million $6.5 million – convert at 23 to 40 cps
Market Cap	~$49.4 million

Key Financials &	Shareholders
Current Cash	$6.5 million($5m Thales investment, June 2019)
SAFA Loan Facility	$3 million facility, low interest rate
Strategic Investors	Carestream (6.0%), Thales ($10m Con Notes)
Institutional Investors	Thorney (5.6%) + Other Institutions (7.4%)
Board & Management	~ 11% shares

==> picture [331 x 200] intentionally omitted <==

----- Start of picture text -----

MX1 - Three month trading
$0.40 1.6
$0.35 1.4
$0.30 1.2
$0.25 1.0
$0.20 0.8
$0.15 0.6
$0.10 0.4
$0.05 0.2
$0.00 0.0
23 Apr 03 May 13 May 23 May 02 Jun 12 Jun 22 Jun 02 Jul 12 Jul 22 Jul
Volume Price
Millions
----- End of picture text -----

Company Presentation – July 2019

Experienced leadership

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Technical and commercial expertise to support our goals and objectives

==> picture [86 x 86] intentionally omitted <==

Peter Rowland

Managing Director & CEO

Over 30 years’ hi-tech engineering and management in defence, aerospace & medical devices
Previously BAE Systems, Ellex Medical and Biolase Technology (NASDAQ)

==> picture [86 x 86] intentionally omitted <==

Patrick O’Brien

Non-Executive Chairman

Over 25 years’ business and finance experience in UK, Asia and Australia
Former Executive Director at Macquarie Group; McKinsey; and Minter Ellison

==> picture [86 x 86] intentionally omitted <==

Yasmin King

Non-Executive Director

Highly experienced in business, vocation and government
Currently CEO of Skills IQ, formerly Associate Commissioner of ACCC

==> picture [86 x 86] intentionally omitted <==

Dr Alexander Gosling, AM Non-Executive Director

Over 40 years’ business, technology and research experience
A founding Director at Invetech (Vision Systems); strategy for Capstone

==> picture [49 x 49] intentionally omitted <==

Georgina Carpendale Chief Financial Officer

10 years' experience in accounting and finance Former Auditor at BDO

==> picture [49 x 49] intentionally omitted <==

Anthony Skeets Engineering Manager 20 years engineering experience in UK & Aust Lucent, Invetech, Hydrix

==> picture [49 x 49] intentionally omitted <==

Alexander Blackburn

Programs Manager

Highly experienced in supply chain and quality GM Holden in Aust & China

Victoria Latham

Quality & Reg Manager

20 years Quality in medical devices and auto industry Ellex and Carl Zeiss Vision

Company Presentation – July 2019

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

DRX Revolution Nano Our first commercial product - Healthcare

Company Presentation – July 2019

New solution in mobile X-ray for healthcare

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Carestream Health is a world leader in mobile X-ray for the healthcare market

Carestream Health appointed global distributor
Premium positioning
Already sold into 8 countries including U.S.
New geographies underway
Strong customer feedback
High reliability proven
Sales grow in 4[th] Quarter

==> picture [192 x 273] intentionally omitted <==

Product Overview

FDA approved Class II Medical device
True mobile X-ray device overcoming limitations of competing mobile X-ray
Light & manoeuvrable 90kg v 350 - 600kg
Battery operation – 8 hour endurance
Unique “tusks” for alignment with controls
Bar code reader for patient-image association
Small footprint – narrow hospital corridors/lifts
Exceptional visibility for operator & patient safety
Sold as the Carestream DRX Revolution Nano

==> picture [126 x 53] intentionally omitted <==

Carestream trade booth – DRX Revolution Nano

Company Presentation – July 2019

Two year delay - lessons we have learned

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Commercial teething problems we did not anticipate

Quality / yield and reliability issues
Air freight – resolved with new packaging & procedures
XinRay tube – drove a strategic shift to insource a superior emitter
2017 X-ray Tube Insourcing Project – substantially complete
Design, engineering, production, validation & testing
World leading experts + Flinders Uni & Adelaide Uni
Delivered a new, proprietary, superior CNT emitter
~ $3m total project cost
Impacted start of sales and ability to ramp up as planned
Reset our sales forecast and associated planning
Substantial yield, control, scalability and cost improvements

==> picture [251 x 207] intentionally omitted <==

We have come through these issues with a better positioned product and Company for the long run …

Company Presentation – July 2019

Insourcing & Manufacturing Scale up

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Next stage Expansion and vertical integration of tube supply

==> picture [214 x 143] intentionally omitted <==

Tonsley Facility, Adelaide

1,000 m[2 ]
Capacity for medium term needs of Nano production
Dedicated Rover production
Test facilities for MBI project
Mechanical & electrical lab space

==> picture [143 x 143] intentionally omitted <==

Shielded rooms for customer demos

==> picture [214 x 143] intentionally omitted <==

ISO 13485
Part of Tonsley Innovation District – SA Government initiative

==> picture [143 x 143] intentionally omitted <==

Company Presentation – July 2019

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Other products in development Rover and Mobile Backscatter Imager

Company Presentation – July 2019

Rover - Second Product in Development

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Mobile X-Ray for NATO Role 2-E Deployed Military Medical Facilities

Armies typically use small animal X-ray and Naval vessels use X-ray machines in port
Completed imaging tests for Australian Defence Force
Australian Defence Project JP2060 tender in evaluation
US Army expressed interest
Addressable global market ~$170M in NATO countries
No competition & unmet need means higher gross margins

==> picture [198 x 148] intentionally omitted <==

==> picture [200 x 149] intentionally omitted <==

Product Overview

Based on key elements of Nano - FDA approved Class II Medical device
Higher energy X-ray exams used in trauma
Light & manoeuvrable 90kg
Hard reusable shell for military transport
Easy battery change
Operates on uneven surfaces
Full performance digital imager in deployed medical facilities – War, Natural disasters
Launch late 2020

Top – ADF deployed medical facility at Shoalwater Bay Bottom – ADF demonstration at exercise Giant Viper

Company Presentation – July 2019

MBI - Third Product in development

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Unmanned full assessment of potential IEDs

==> picture [202 x 162] intentionally omitted <==

Bomb disposal technicians face life threatening harm when placing X- ray detector behind the IEDs
Proprietary MBI conducts X-ray without the receiver – one sided
Australian Defence Force proof of concept imaging completed

==> picture [173 x 135] intentionally omitted <==

Customer support - military and FBI / bomb disposal interest
Addressable market ~$1.8B
No competition & unmet need means high gross margins

Product Characteris7cs

Multi-beam CNT imaging with Backscatter detector – enables one-sided X-ray image
Thales collaborating on new tube development
Light and able to be carried by any EOD robot – maintaining distance of bomb technician
Resolution of better than 0.5mm
Ideal in a wide range of counter-terrorism scenarios

Top – Illustration of MBI carried by EOD Robot Bottom – Current bomb disposal X-ray imaging technique

Company Presentation – July 2019

Future aviation security concepts

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Next Generation Airport X-Ray screening – ‘ high speed ’ and ‘ self service ’

High speed – Airport 3D X-ray conveyor

Self service checkpoint X-ray model

Latest ECAC Detection Standards 3 & 4
Secondary screening at boarding gate
Screen up to 1,200 bags p/h (currently 200)
Concept uses backscatter and 3D imaging to provide low false alarm rate
Automated threat detection software
Thales to fund development and take to market
Completed Proof of Concept imaging test for UK Government Future Airport Security Solutions
Enables next-generation checkpoint protocols- self service for check-in and X-ray screening
Another large and growing market
Large and growing addressable market

==> picture [183 x 131] intentionally omitted <==

==> picture [156 x 134] intentionally omitted <==

Company Presentation – July 2019

Thales partnership & $10m investment

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Technology partnership with a global leader in defence and aircraft security

• $10M investment via convertible loan

$5m cash received July 2019 on completion

• Contract design and licensing of Airport Checkpoint Security Imaging

• Distribution for MBI in Defence/ security - outside Five-Eyes countries

Australia, US, UK, Canada and New Zealand

• Contract manufacture of future miniature X-ray tubes

“….we are at the birth of a new technology evolution. CNT is a game changer in so many fields but none offer such practical and quantifiable benefits as in the X-ray imaging market. From airport checkpoints to counter terrorism activities to future medical imaging devices, Thales and Micro-X are at the cusp of an historical moment. This partnership will give us a technological leap that no one else in this industry has.”

Jean Jacques Guittard, Thales Vice-President, Electron Devices

Company Presentation – July 2019

Future Product Opportunity

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Brain Perfusion CT Imaging

Golden hour - time to commence stroke treatment biggest factor in patient care
Ambulances provide first patient contact – need a mobile, simple, diagnostic stroke image
Unmet need is greater in remote locations

Product Characteris7cs

Multi-beam tomography imaging
Ideal to provide early diagnosis of stroke – clot or bleed
Small, light and affordable – suits ambulances
Only available product is very large and expensive
~$1m to fund proof of concept development – Medical Research Future Fund
Addressable global market ~ $25B

==> picture [279 x 143] intentionally omitted <==

==> picture [242 x 143] intentionally omitted <==

Right: Melbourne mobile stroke unit

Left: Micro-X product concept

Company Presentation – July 2019

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Goals & Objectives We are now setting course

Company Presentation – July 2019

Milestones - setting our new course

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Focused on delivering commercial outcomes for all stakeholders

==> picture [646 x 216] intentionally omitted <==

----- Start of picture text -----

Early US sales of Nano
Thales Partnering deal & $5m
Next Stage Facility expansion
CNT in-sourcing complete
1H - Build on Nano sales Significant Rover & Nano sales
Q3 – First Nano with MX1 tube 1H – Japanese reg process Japan reg clearance – Nano
Q4 – Japan entry strategy 1H – Rover imaging then testing MBI customer demo / testing
Q4 – Nano sold new territories 2H – Rover 510(k) and first sales MBI launch in ~ 2022
Q4 – Rover tube built & test 2H – MBI first imaging demo Airport security prototype
Beyond
CY 2019 CY 2020
----- End of picture text -----

The above forecast dates are estimated and indicative and may change

Company Presentation – July 2019

Conclusions

==> picture [100 x 19] intentionally omitted <==

==> picture [622 x 6] intentionally omitted <==

Building commercialisation of next generation X-ray technology

Next generation X-ray platform – health and security markets
Significant technology advantages
smaller, lighter, more mobility, new applications
Strategy and focus on technology development & manufacture
Commercial sales via partnerships with global leaders
Carestream (Healthcare) + Thales (Security & defence)
First product in sales and now growing
New products in larger markets with increased financial returns

==> picture [481 x 122] intentionally omitted <==

Company Presentation – July 2019

==> picture [236 x 44] intentionally omitted <==

==> picture [66 x 9] intentionally omitted <==

----- Start of picture text -----

ACN 153 273 735
----- End of picture text -----

Peter Rowland Managing Director 1284 South Road Tonsley SA 5042 +61 8 7099 3966 [email protected]

AI assistant

MICRO-X LIMITED — Investor Presentation 2019

65388_rns_2019-07-25_761bcf3c-2532-4879-abf8-5afc03d39c83.pdf

COMPANY PRESENTATION

– ENDS –

About Micro-X

CONTACTS

Ltd

Disclaimer

Overview

Next generation X-ray for global health and security markets

Investment Highlights

Advanced technology, design and manufacturing company

Next generation X-ray technology

Existing X-Ray Technology

Product roadmap

Planned product evolution – from current X-ray uses to solving unmet needs

Business model & Strategies

Commercialise our proprietary technology products with selected global partners

Corporate Snapshot

Growth stage company with institutional and strategic investor support

Experienced leadership

Technical and commercial expertise to support our goals and objectives

Managing Director & CEO

Non-Executive Chairman

Dr Alexander Gosling, AM Non-Executive Director

Alexander Blackburn

Victoria Latham

DRX Revolution Nano Our first commercial product - Healthcare

New solution in mobile X-ray for healthcare

Carestream Health is a world leader in mobile X-ray for the healthcare market

Product Overview

Two year delay - lessons we have learned

Commercial teething problems we did not anticipate

Insourcing & Manufacturing Scale up

Tonsley Facility, Adelaide

Rover - Second Product in Development

Mobile X-Ray for NATO Role 2-E Deployed Military Medical Facilities

Product Overview

MBI - Third Product in development

Unmanned full assessment of potential IEDs

Product Characteris7cs

Future aviation security concepts

Next Generation Airport X-Ray screening – ‘ high speed ’ and ‘ self service ’

High speed – Airport 3D X-ray conveyor

Self service checkpoint X-ray model

Thales partnership & $10m investment

Technology partnership with a global leader in defence and aircraft security

• $10M investment via convertible loan

• Contract design and licensing of Airport Checkpoint Security Imaging

• Distribution for MBI in Defence/ security - outside Five-Eyes countries

• Contract manufacture of future miniature X-ray tubes

Jean Jacques Guittard, Thales Vice-President, Electron Devices

Future Product Opportunity

Brain Perfusion CT Imaging

Product Characteris7cs

Goals & Objectives We are now setting course

Milestones - setting our new course

Focused on delivering commercial outcomes for all stakeholders

Conclusions

Building commercialisation of next generation X-ray technology

More from MICRO-X LIMITED

MICRO-X LIMITED Investor Presentation 2019