NANOSONICS LIMITED — AGM Information 2009

Nov 3, 2009

Nanosonics Limited (ASX:NAN) Annual General Meeting 4 November 2009

Nanosonics Limited (ASX:NAN) Annual General Meeting

Maurie Stang Non-Executive Chairman

4 November 2009

Nanosonics

"At Nanosonics our goal is to safeguard the health and wellbeing of individuals, communities and environments by commercialising a stream of breakthrough disinfection and sterilisation technologies"

Nanosonics in transition

Nanosonics today

12 months of delivering on commitments

• 9TGA approval
• 914 European distribution partners appointed
• 9Successfully transitioned from R&D to commercial activity
• 9Production commenced
• 9 Controlled roll out and sales to ANZ and targeted European countries
• 9 Trophon EPR driving additional product opportunities with potential partners
• 9510(k) application to USA FDA
• 9 Negotiations underway with distributors in US/Canada/targeted Asian countries

Nanosonics today

• • Nanosonics has today been advised that its Australian distributor has reached an in-principle agreement with a highly regarded Australian organisation for the large-scale roll-out of the Trophon EPR reprocessor. The implementation is likely to commence in January 2010 with an initial installation of over 200 Trophon devices over the short-term.
• • The agreement covers both the Trophon device and related consumables and will provide greater efficiency and enhanced safety for both patients and professional staff.
• • Nanosonics and its distributors have received orders from a number of leading healthcare providers in Australia and New Zealand who have indicated their intention to standardise on the Trophon system as an integral part of their infection prevention protocols.

Nanosonics today

Financials

C t a e g o r y	D t a e	A t m o n u
T l h i t o a s a r e s o n s s u e	@ 3 N b 0 9 o v e m e r	1 9 6 i l l i m o n
S h i a r e p r c e	@ N b 3 0 9 o e m e r v	\$ A 0 5 1
M k i l i i t t t a r e c a p a s a o n	@ 3 N b 0 9 o v e m e r	\$ A 1 0 0 i l l i m o n
A d i l t e r a g e r a n g o m e v v u	@ 3 N b 0 9 o e m e r v	/ 1 0 0 0 0 h d 5 s a r e s a y ,
C h h d * a s o n a n	@ S b 3 0 0 9 t e p e m e r	\$ A i l l i 1 2 1 m o n
C / h b h t a s u r n m o n	@ S 3 0 b 0 9 t e p e m e r	\$ A 0 6 i l l i m o n
F i R t r s e e n e v u	Q F Y 4 0 9 -

* Nanosonics is debt-free and has expensed the majority of its R&D to date.

The healthcare revolution to P.o.C.

TEMPERATURE 'POINT OF CARE' SOLUTIONS

Market opportunity

Market issuesScope of the healthcare challenge

Golden staph kills 20% of patients

Sydney Morning Herald, Monday 5th October

Staphylococcus aureus bacteraemias: time to act, The Medical Journal of Australia, October 2009

• • Forty per cent of cases of Staphylococcus aureus bacteraemia are hospital-acquired, and most are preventable.
• • There are about 6,000 golden staph infections in Australia each year, putting the death toll at about 1,200.

Germs 'costing hospitals \$1B a year'

ABC news, Wednesday 2 September

Economic rationale for infection control in Australian hospitals, Healthcare Infection 14(3) 81–88, 26 August 2009

• It is estimated that there are 175,153 cases of healthcare-acquired infection among admissions to Australian hospitals annually.

Product pipeline

Leveraging current platform technologies into a leadership position in low temperature disinfection

Key drivers of shareholder value

Financial

• • The company is well positioned for expected growth with Trophon EPR and consumables
• •Sustainable high margins on Trophon EPR

Pipeline

• •Strong pipeline development
• • Growing demand for P.o.C. infection control solutions
• • Establish commercial partnerships for further applications of Nanosonics' platform technology

Nanosonics Limited (ASX:NAN) Annual General Meeting

David Radford Director and CEO

4 November 2009

Our people

Trophon – a breakthrough in the world of low temperature, point of care disinfection

Trophon EPR Competitive advantage

The only point of care, low temperature, automated ultrasound reprocessor available globally

Customer benefits

–New standard in high level disinfection

• Short operating time
• •Process time only 7 minutes
• • Improve workflow Æmore patients

–

•

• Outstanding materials compatibility
• No operator and patient exposure to harmful chemicals
• •Alternative solutions dependent on toxic chemicals
• – Environmentally friendly solution
• No post-processing, only by-products water and oxygen

End user endorsement of Trophon EPR

"The Trophon greatly improves our workflow." Mr David Singe, Radiographer , Maryborough Hospital, Victoria

"The Trophon EPR will make the task of disinfecting ultrasound transducers significantly faster, safer and more convenient and it is easily integrated into current medical practices and procedures"

Dr Michael Cooper, Head of Gynaecology at Royal Prince Alfred Hospital, NSW

"It is a well-known problem that sonographic transducers can become contaminated with pathogenic agents like MRSA, HBV, HCV, HIV or Herpes viruses, and turn into a source of infection that is not to be underrated. For this reason, correct handling as well as cleaning and disinfection of the transducers are indispensable." Professor E. Merz, Director Gynaecological Hospital, Krankenhaus Nordwest, Frankfurt/M. (Germany)

Commercial availability of Trophon EPR

• • Initial controlled roll-out to Australia, New Zealand and France.
• •US FDA 510(k) application in process
• • Japan Ministry of Health submission targeted mid 2010

Distribution strategy

• • Dual channel distribution strategy in place
• Primary channel dedicated ultrasound distributors appointed in 14 European countries and ANZ
• OEMs granted full access across all regions
• • Attractive margins guaranteeing distributor focus for Trophon EPR and associated NanoNebulant consumables

Roll-out strategy

Australia & New Zealand

• •Product launched
• •Market opportunity \$ 40M
• •Strong regulatory support
• •Positive market feedback

Roll-out strategy

Europe

•Market opportunity \$ 420M

France

• •Product introduction
• •National move banning the use of glutaraldehydes
• •Positive market feedback

Germany & UK

• •Product launch FY2010
• •Nanosonics invited to participate in establishing new national ultrasound standards in UK

Roll-out strategy

US & Canada

• •Market opportunity \$ 700M
• • CDC guidelines recommending use of hydrogen peroxide based product
• •510(k) application lodged with US FDA
• •Negotiations underway with distributors

Japan

• •Market opportunity \$500M
• •Distributors identified
• •Application to Ministry of Health targeted mid 2010

Production capacity

• •Current potential 2,000 devices per annum/shift
• • Move to increase capacity to 8,000 devices per annum expected early 2010 with outsourcing
• • Current strategy enables continuous supply through inventory management
• • Mission critical tooling and parts are owned by Nanosonics
• • NanoNebulant production in 2 global locations enables flexibility in meeting supply and demand

Product development

Nanosonics' platform technologies are transferable and highly scalable to other applications

Product opportunities

Leveraging current platform technologies into a leadership position in low temperature disinfection

Summary

• 9 Significant commercial demand and acceptance for Trophon EPR
• 9 Global infection control awareness and regulation driving growth opportunities
• 9 Expected entry to US market in 2010 (pending FDA approval)
• 9Manufacturing capability implemented
• 9 Focus on strong commercial product pipeline and partnership opportunities
• 9 Continued investment in R&D projects to drive shareholder value
• 9Strong focus on revenue in FY2010