PARAGON CARE LIMITED — AGM Information 2021

Nov 17, 2021

ASX ANNOUNCEMENT

18 November 2021

Australian Securities Exchange Company Announcements Office

AGM Presentation

Paragon Care Limited (ASX: PGC) ("PGC" or the "Company"), a leading provider of medical equipment, devices, and consumables to the healthcare markets in Australia and New Zealand, will be holding its 2021 Annual General Meeting 2021 on 16 November 2021 at 1.00pm (AEDT) ("AGM") and is pleased to attach its AGM presentation.

For further information please contact:

Shane Tanner Chairman shane.tanner@paragoncare.com.au

This announcement is authorised for release to the market by the Board of Directors of Paragon Care Limited

About Paragon Care Limited

Paragon Care (ASX:PGC) is an Australian based listed company in the healthcare sector. It is a leading provider of medical equipment, devices, and consumables for the Australian and New Zealand healthcare markets. These are high growth markets driven by the ageing of the population, continuously rising consumer expectations and increasing government spending. By combining a series of strategic acquisitions of class leading companies, Paragon Care has positioned itself to provide advanced technology solutions including equipment, consumables, and services for acute and ancillary care environments.

PARAGON CARE LIMITED (ASX: PGC)

DISCLAIMER PARAGON CARE

This presentation has been prepared by Paragon Care Limited (ACN 064 551 426) (Paragon) (ASX: PGC) is current at the date of the presentation, 18 November 2021. This presentation is for information purposes only and is not a prospectus, product disclosure statement or other offering document under Australian law or any other law (and will not be lodged with the Australian Securities & Investments Commission (ASIC) or any other foreign regulator) and may not be relied upon by any person in connection with on offer or sale of Paragon securities.

This presentation contains forward-looking statements relating to the operations of Paragon that are based on Paragon management's own current expectations, estimates and projections about matters relevant to Paragon's future financial performance which may ultimately prove to be materially incorrect. Indications of, and guidance or outlook on, future earnings or financial position or performance are forward-looking statements. Words such as "likely", "aims', "forward looking", "potential", "anticipates", "expects", "predicts", "plans", "targets", "believes", "intends", "will", "may", "would", "could" and "estimates" and other similar expressions are intended to identify forward-looking statements.

References in the presentation to current assumptions, estimates and outcomes and forward-looking statements about current assumptions, estimates and outcomes, are based on internal business data and external sources and are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors, known and unknown risks, uncertainties and other important factors beyond the control of Paragon that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to, and no reliance should be placed on, the future business performance or results of Paragon or the likelihood that the current assumptions, estimates or outcomes will be achieved. Current market conditions remain challenging with ongoing lockdowns and community transmission of COVID-19. All forward-looking statements are provided on the basis that the Australian vaccination roll out continues and COVID-19 restrictions ease towards the end of 2021.

This presentation does not purport to contain all of the information that an investor may require in evaluating a possible investment in Paragon.

While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only and no representations or warranties (express or implied) are made as to, and no reliance should placed on, the accuracy or completeness of such information. To the maximum extent permitted by law, Paragon and its respective subsidiaries, interests in associates and jointly controlled operations and each of their directors, officers, management, employees and advisers expressly exclude and disclaim any liability (including, without limitation, any liability arising out of fault or negligence on the part of any person) in respect of anything done or not done, directly or indirectly, in reliance on the presentation or information contained in the presentation. This presentation should not be construed in any manner as a recommendation to any investor or potential investor or other reader of this communication. This information given in summary form does not purport to be complete and should be read in conjunction with previous ASX filings of each of Paragon, their half year reports and the audited annual report. Any arithmetic inconsistencies are due to rounding.

Any past performance information included in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) a promise, representation, warranty or guarantee as to the past, present or an indication of future performance.

All forward-looking statements made in this presentation are based on information presently available to management and, except as required by law or regulation (including the ASX Listing Rules), Paragon does not assume any obligation to, nor does it represent that it will, update any forward-looking statements or any other information contained in this presentation. Nothing in this presentation constitutes investment advice and this presentation shall not constitute or form part of an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity under the Corporations Act 2001 (Cth) or any other law.

This presentation and its content is not intended to be relied upon as a forecast or advice to investors or potential investors and does not take into account an individual investor's investment objectives or financial situation. You should make your own enquiries and take your own advice in Australia and elsewhere (including financial, taxation and legal advice) before making an investment in Paragon's shares or in making a decision to hold or sell any shares you currently hold.

FY21 OVERVIEW Q1 FY22 UPDATE MERGER WITH QUANTUM HEALTH GROUP (QTM)

ESTABLISHED RELATIONSHIPS ACROSS HEALTHCARE PARAGON CARE

Improved margins and streamlined operations

Fully franked final dividend declared

FY21 RESULTS: KEY HIGHLIGHTS PARAGON CARE

REVENUE STABILITY: DIVERSIFIED OFFERING PARAGON CARE

DEVICES	$85.8m		15%
---------	---------	---	-----

DIAGNOSTICS $25.9m 11%

CAPITAL & CONSUMABLES $105.2m <1%

SERVICE & TECHNOLOGY $19.0m 32% Diversified portfolio generated revenue stability

• Devices: Continued growth in eye care
• Diagnostics: Expansion of product range
• Capital & Consumables: Stable revenue despite difficult trading conditions
• Service & Technology: Continues to be adversely impacted by access restrictions in aged care

FY21

Revenue in Australia down by 1% on pcp to $187m, offset by 14% increase in revenue from NZ to $47m

TOTAL REVENUE $235.9m 2%

FY21 OVERVIEW Q1 FY22 UPDATE MERGER WITH QUANTUM HEALTH GROUP (QTM)

22

• Revenue stability: Revenue of $56m was down by only 2% on prior year, with continued & in some cases more severe lockdowns across Sydney, Melbourne and NZ during the quarter impacting

• Improved margins: Gross profit margin of 41.6% (up from 37.5% in Q1 FY21) due to selling higher margin products this year, rather than personal protective equipment and improved FX rates

• Growth in underlying operating performance: Underlying EBITDA increased 49% to $6.1m in Q1

• Increased inventory: Inventory has been increased to manage global supply chain delays and maintain service levels to customers; this led to a decline in cashflow from operations in Q1 FY2.

• elective surgery and aged care.
• compared with prior year.
• FY22, up from $4.1m in Q1 FY21 (excluding $3.4m in JobKeeper received in Q1 FY21).
• slightly weaker than Q1 FY22.
• Debt reduction: Total debt was reduced by $4m in Q1 FY22.
• Ongoing BAU improvements: Solid progress on Strategic Priorities during the quarter.

• Gradual rebound in Q2 FY22: It is anticipated that the operating performance in Q2 FY22 will continue to be adversely affected by the measured return of elective surgery and the delayed opening to the aged care sector. At this stage, it is possible that the Q2 performance could be

Q1 FY22 UPDATE PARAGON CARE

Solid progress in Q1 FY22 in difficult conditions

• We have a strong growth pipeline with 15 of the largest opportunities across the Group having the potential to increase sales by up to $100M in a 3 - 5 year time frame.

• H2 FY22 gradual rebound from NSW, VIC & NZ lockdowns, specifically increased elective surgery cases in our Devices pillar

• As access to aged care facilities improves, Total Communications will return to its strong pre-COVID performance.

• Plans are progressing well to more than double manufacturing capacity in our world class proprietary blood reagent business which will facilitate the expansion of Immulab into China and other Asian markets.

FY22: ORGANIC GROWTH INITIATIVES PARAGON CARE

HEALTH GROUP (QTM)

26

STRATEGIC RATIONALE

Notes: (1) Based on Enterprise Value/EBITDA using post transaction market capitalisation calculated in slide 29 plus net debt as enterprise value. The proforma combined numbers for net debt and EBITDA are based on the published FY21 Annual Reports of Paragon Care and Quantum.

New Suppliers • Attract new suppliers through a larger distribution footprint and commitment to high levels of corporate governance in Asian markets

Strengthen Balance Sheet • Strengthen balance sheet capacity and improved covenants through expanded earnings base which will enable additional opportunities

Cross-Sell	Cross-sell the combined product portfolio into the high growth Asia Pacific markets•
Growth in Asia Pacific	Enhance growth opportunities in Asia, particularly for Immulab, in Paragon Care's diagnostics pillar•
New Suppliers	Attract new suppliers through a larger distribution footprint and commitment to high levels of corporate governance in Asian markets•
Strengthen Balance Sheet	Strengthen balance sheet capacity and improved covenants through expanded earnings base which will enable additional opportunities•for growth in the future. Net Debt/EBITDA improvement to less than 2x
Merger	Merger is a nil premium transaction•Merged entity expected to have a proforma FY21 EBITDA of $37m (EV/EBITDA 6.5x)1. -Significantly below industry averages for healthcare•businesses
Synergies	Significant synergies across Asia Pacific are expected based on strong collaboration and analysis between PGC and QTM, but none have•been included in any financial numbers in this presentation
Revenue Diversification	Implementation of the Scheme is expected to result in diversified revenue across product lines, customers and geographies•
Recurring Revenue	Merged entity anticipated to benefit from stronger recurring revenue streams through maintenance revenue•

• Merged entity expected to have a proforma FY21 EBITDA of $37m (EV/EBITDA 6.5x)1. - Significantly below industry averages for healthcare

• Significant synergies across Asia Pacific are expected based on strong collaboration and analysis between PGC and QTM, but none have

CONSUMABLES

SERVICE & TECHNOLOGY

DEVICES	DIAGNOSTICS	CAPITAL &CONSUMABLES
EYE CAREORTHOPAEDICS	BLOOD BANKLABORATORY
30%FY21 Rev *	9%FY21 Rev *	36%FY21 Rev *

UROLOGY, CRITICAL CARE NEONATAL, RADIOLOGY

MANAGEMENT REPORTING & MAINTENANCE

36% FY21 Rev *

6% FY21 Rev *

QUANTUM HEALTH GROUP

MEDICAL IMAGING, EQUIPMENT & SERVICES

19% FY21 Rev *

* Proforma numbers based on FY21 Annual Reports of Paragon Care and Quantum

A FIVE PILLAR STRUCTURE

28

ESTABLISHED RELATIONSHIPS ACROSS HEALTHCARE

Notes: (1) Proforma numbers are based on the published FY21 Annual Reports of Paragon Care and Quantum. No cost or revenue synergies across Asia Pacific have been considered in the consolidation. (2) Based on Paragon Care and Quantum FY21 Annual Reports and net debt position as at 30 June 2021 and consolidated FY21 EBITDA in note 1. Gearing calculated in accordance with note 28 to the Paragon Care FY21 Annual Report

CONSOLIDATED FY21 METRICS (Pre-Synergies)

	PGC	QTM	Pro-formaCombined Group	Major Shareholders (as at 3Nov 2021)4
Number of shares (m)2	351.40	1,128.31	625.58	Board, Management &	29.1%
Market capitalisation (m)	$101.2	$79.0	$180.2	Vendors
Pre Merger Market Capitalisation (%)	56%	44%	100%	China Pioneer	8.4%
FY21 Revenue ($m)3	$236m	$55m	$291m	Realm Group Pty Ltd	4.2%
FY21 Net Profit Before Tax ($m)3	$12m	$9m	$21m
FY21 Employees	423	178	601	First Samuel Limited	3.9%
				Other shareholders	54.4%
				Total number ofshareholders	7,187

Notes: (1) Reflects current offer pricing per the agreed Scheme Implementation Deed (2) Based on the latest Paragon Care and Quantum share register and anticipated number of Paragon Care shares post transaction (3) Based off Paragon Care and Quantum FY21 annual reports. Pro forma combined cash balance is net of transaction costs. (4) Major shareholders table reflects the expected post merger shareholdings

CORPORATE OVERVIEW POST TRANSACTION

THANK YOU

Chairman

P: 1 300 369 559

E: shane.tanner@paragoncare.com.au

Shane Tanner

Paragon Care Limited (ASX:PGC) 31

Chief Executive Officer P: 1 300 369 559 E: phil.nicholl@paragoncare.com.au Phil Nicholl