NANOSONICS LIMITED — AGM Information 2011

Nov 10, 2011

Nanosonics Limited (ASX:NAN) Annual General Meeting 11 November 2011

Nanosonics Limited (ASX:NAN) Annual General Meeting

Maurie Stang Non-Executive Chairman

11 November 2011

Nanosonics" aim…

"….is to "make money while doing good"; that is, delivering better health outcomes for our customers and their patients whilst delivering a stream of innovative, safer and greener technologies to the world market"

2011 has been a pivotal year

• 2 x FDA 510(k) approvals and 3 clean major audits
• Executed pivotal exclusive agreement with GE Healthcare to distribute Trophon EPR® in US/Canada
• Appointment of new CEO and significant expansion of leadership team
• Immediate successful scale-up of manufacturing capacity by 50%
• Launch of flagship N10/N20 Trophon EPR® model worldwide
• Pleasing Q1 result

GE marketing mailout

Microbial control: A growing challenge and market opportunity

• Bacterial Spores e.g. C.Difficile; never thought to be a reason for concern, now pose a global epidemic in health care systems. Most resistant organism to disinfection.
• Protein based infectivity (Prions) now identified as a serious contamination risk and not deactivated by present disinfection processes

Nanosonics identified these as future threats early, has IP in both of these areas, placing it as a forward looking leader in infection control

Regulatory drivers for change and growth

Awareness if impact of Healthcare Associated Infections (HAIs) and increased regulation will dramatically enhance Nanosonics" revenue opportunities.

• HAIs are the 4th highest cause of death in the US
• ASUM guidelines support use of an automated system utilising hydrogen peroxide
• HLD for intra-cavity probes is mandated
• HMOs refusing to reimburse costs linked to HAIs

7

Market is rapidly evolving

Central sterilising services

Low temperature "point of care" solutions

Trophon EPR® market ~\$1.5B*

• Global installed base ~500,000 ultrasound machines
• Approx. 20% of procedures are intra-cavity Ob/Gyn
• Ultrasound machines are replaced every 4 5 years (similar life as Trophon EPR®)
• Assuming an average of 5 cycles per day, > 600 million cycles per annum (~20% Ob/Gyn)

\$A Million	Ob/Gyn only	Total market opportunity
Trophon	133	664
Sonex	148	741
Chemical Indicator	20	99
Wall Mount / Cart	5	20
Total	306	1,523

* Ultrasound market estimated to be growing at 6-8% p.a.

GE Healthcare"s launch of Trophon EPR®

Dear Ron and the Nanosonics Team,

We are now well into the launch of the Trophon EPR in partnership with Nanosonics. We are encouraged that a number of high-profile customers across North America have already installed the Trophon. Early feedback from these customers continues to indicate that Trophon is quickly being recognized as the preferred choice in automated ultrasound probe reprocessing. Our GE team is enthusiastic about expanding globally to offer our customers an innovative technology that supports their patient safety initiatives and offers environmental benefits by eliminating the use of toxic chemicals and the associated OH&S risks. Our customers also value the rapid speed and automation of the Trophon EPR to enhance clinical workflow.

GE Healthcare has a large global installed base of ultrasound devices with a strong emphasis on women's health and reproductive medicine. We are pleased with the early acceptance of the benefits of the Trophon EPR in these areas.

GE has featured Nanosonics' Trophon EPR at a number of key trade shows across North America and we are looking forward to featuring this exciting new technology at the Radiological Society of North America (RSNA) conference in Chicago later this month.

GE Healthcare's commitment to patient safety and the delivery of advanced imaging technologies provides an ideal platform for further growth in the partnership between Nanosonics and GE Healthcare.

Regards,

10

Market drivers

US market feedback:

• Sterilization leadership is progressively rejecting legacy aldehyde & OPA chemicals
• IVF specific concerns around toxicity leading to phasing out of aldehydes
• Significant benefits in total cost of ownership and enhanced workflow productivity
• Customers care about cycle-time 7 minutes was a big selling point
• Strong acceptance of the advantages of Point-Of-Care reprocessing

Other market opportunities

• Market for low temperature sterilisation continues to grow rapidly
• Fully validated NanoNebulant platform is now scalable into a number of medical device applications. GE Healthcare has indicated a desire to explore developing an "Infection Control Portfolio" with Nanosonics

• Multiple trade alliances under discussion for partnerships using Nanosonics" unique "sterilant" and prionicidal technologies across the spectrum of healthcare
• Nanosonics is focussing on a range of commercial, industrial and scientific applications on a global basis. ¹²

Nanosonics" distributors exhibits Trophon EPR® worldwide

featuring Trophon EPR® at 21st Medica, Dusseldorf, November 2010

World Congress on Ultrasound in Obstetrics and Gynaecology – LA, September 2011

Financials

Category	As at
Total shares on issue	9 November 2011	230.5 million
Share price	9 November 2011	A\$ 0.53
Market capitalisation	9 November 2011	A\$ 122 million
Average daily trading volume (3 months)	9 November 2011	150,000
Cash on hand	30 September 2011	A\$ 10.3 million
Gross operating expenses	30 September 2011	~A\$1.1 million / mth.

* \$952,000 received in October

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

Nanosonics Limited (ASX:NAN) Annual General Meeting

Dr Ron Weinberger Executive Director and CEO

11 November 2011

Trophon EPR® N10/N20 and Consumables

Sealed chamber with a disinfectant delivery and removal system

Chemical Indicator

Cartridge of disinfectant

The next generation in Ultrasound Transducer Disinfection

N10/N20 Trophon EPR®

Key enhancements:

• Parameters that comply to FDA requirements
• Multi-lingual capability
• Incorporates Chemical Indicator
• In-field service capability
• Enhanced design for manufacture
• New energy management systems (green energy savings)
• Cost savings

Trophon EPR® Accessories

®

Current

Trophon Mobile Cart

Wall Mount

In development

Printer, Software, Wipes

Soft / hard copy patient specific records Significant revenue opportunity

Trophon EPR® current revenue streams

Capital Equipment

Medical device margins

Consumables

• Major source of annuity revenue Very high margins
• Accessories
• Highly attractive margins Limited investment
• Service Annual service contracts 10-15% of the capital equipment cost

A \$1.5 Billion Opportunity

Trophon EPR® - Our goal

To own the value chain in ultrasound probe reprocessing

Trophon EPR® supported by all major OEMs

Trophon EPR® is approved for use by:

• GE
• Siemens
• Phillips
• Sonosite
• Ultrasonix
• Toshiba
• BK Medical

Accounts for the majority of the ultrasound market

A highly skilled team with international medical device experience

McGregor Grant CFO / Secretary

Gerard Putt Head of Manufacturing

Vincent Wang Head of Service

Michael Potas Head of Research, Design & Development

Ruth Cremin Regulatory Affairs Manager

Joe Buttacavoli Financial Controller

Lisa Springer Head of Business Operations

Jianhe Chen QA Manager

Kirste Jarvis HR Manager

Driving achievements into 2012

• Initiated global rollout of international version of Trophon EPR®
• Upgraded engineering, R&D and regulatory capabilities
• Expanded manufacturing capacity
• Improved production efficiencies
• Identified additional revenue opportunities, now in development
• Launched online customer training program
• Initiated Service revenue model
• Performance culture

23

Global rollout of the Trophon EPR® (1)

Australia

• Installed base ~500 systems
• Uptake of N20 indicates continued strong demand

New Zealand

• NZ launch of N20 highly successful implementation
• High immediate rate of conversion of trial sites to commercial orders

North America

• Rapid early adoption by high profile/prestigious medical centres across North America
• Trophon EPR® N10 featured extensively by GE Healthcare and featured at the RSNA (Radiology Society of North America) Nov. 2011

Global rollout of the Trophon EPR® (2)

Europe

Priority focus to launch N20 in six key high value markets

South East Asia

• Early demand/sales opportunities extremely promising
• Hong Kong Hospital Authority (40 hospitals) will recommend the adoption of Trophon in its all facilities

Israel / Middle East

Initial devices installed

Opening new markets

Argentina China Brazil India Korea Japan Mexico Singapore Taiwan Thailand Turkey Vietnam Phase 2 Phase 3

GE"s Healthymagination program

		Heart	Dinhetes	98,987
Proctota	Breast. Cancer-	Failure 56,752	68,504
Concer 之间间长山	01.115

Business development opportunities

• Prioritising market entry for Trophon EPR "line extensions" e.g. TEE, ENT scopes
• Expanding use of NanoNebulant technology into new commercial, industrial and scientific applications
• Nanosonics has a valuable portfolio of unique sterilant and prionicidal chemistries which target significant global opportunities

Summary

• Low temperature reprocessing is fastest growing market segment
• Nanosonics is recognised as the emerging "Point Of Care" global leader
• Investment risk now minimised with expanding installed base and endorsement by manufacturers, Key Opinion Leaders and customers
• High and sustainable margins validated in the commercial rollout
• Broad technology portfolio and multiple revenue opportunities for application of our proven proprietary NanoNebulant platform
• World class team focussed on our unlimited growth potential and all committed to delivering outstanding returns to our shareholders