TruScreen Group Limited — AGM Information 2019

Aug 27, 2019

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CEO AGM Presentation

August 2019

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TRUSCREEN’S MISSION

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To provide primary screening for cervical cancer in developing nations via the TruScreen device – the latest single-visit, real time screening technology solution.

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FY19 PRIORITIES, RESULTS & BUSINESS HIGHLIGHTS

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At the Start of the year we set our key business priorities as

Enhance our Increase sales distribution of TruScreen networks

Export low Expand technology manufacturing manufacturing capability to key market

Submit and Continue to be gain adoption assessed and in selected endorsed by international key opinion government leaders and screening government programmes policy setters

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FY19 PRIORITIES, RESULTS & BUSINESS HIGHLIGHTS

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FY19 Results and Highlights:

• Sales up 132% to NZ $1.9m

• Pilot in-house manufacturing facility established

• Total Revenue up 43% to NZ$3.11m

• Investigating overseas

• assembly/manufacturing

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• New Distribution agreements in Russia, Zimbabwe, Saudi, Israel, Sri Lanka

• China Pilot Studies

   - Successful Capital Raise Oct 2018
  

  • New NED Con Hickey appointed Aug 2018

• Continued work with aid

• organisations in East Africa

• WHO Recognition to increase

• access to international programs and funding organisations

• New Chairman Appointed Sept 2018

• • New Chief Financial Officer Appointed Nov 2018

• Migrated from NZAX to NZX Main Board Dec 2018

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CONTINUE ON OUR STRATEGY

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Building our internationally approved device, experiencing sales momentum in key markets through a global distribution model

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Drive Sales and Strategic
Growth from Partnerships
Geographic and
Footprint Relationships
Manufacturing
Capabilities
People and
- Underpinned
Capability
by Research and
Development
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87% of deaths from cervical cancer occur in low and middle income nations There is limited lab infrastructure and diagnostic technicians TruScreen meets the market demand

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TruScreen August 2019 CEO Presentation
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THE OPPORTUNITY

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Screening age population - solution for cervical cancer screening needed

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RUSSIA
44M
MIDDLE
INDIA CHINA
EAST
302M 401M
70M
MEXICO
31M
AFRICA
LATIN
226M
AMERICA
120M
Ref: Based on U.S Central Intelligence Agency (CIA) World Factbook
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THE OPPORTUNITY

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TruScreen’s addressable market is NZD $166m

Fourth most common cancer worldwide

1BN+ women of screening age in low and middle income countries

87% of deaths occur in low and middle income nations

	Screening Population (x1M)	Target Market Share	No. of Women (x 1M)	Screen Annually (x 1M)	NZD$1M
China	401	8%	32.08	10.69	86.49
Mexico	31	6%	1.86	0.62	6.38
Russia	44	6%	2.64	0.88	10.35
Africa	226	2%	4.52	1.51	22.16
India	302	3%	9.06	3.02	31.09
Mid East	70	2%	1.40	0.47	5.49
Latam	120	1%	1.20	0.40	4.71
Total	1194		52.76	17.59	166.67
NZD : USD	0.68

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TruScreen August 2019 CEO Presentation
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COMMERCIAL STRATEGY

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TARGETING LOW/MIDDLE INCOME COUNTRIES

MARKET ENTRY & DEVELOPMENT

SUCCESS TO DATE

• Lacking lab infrastructure

• High prevalence of HPV & cervical cancer

• Governments investing in women’s health

• Market need for portable real time accurate screening technology

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Build Awareness

• Key Opinion Leaders engagement

• Social Media

• Medical conferences​

• Clinical trials/studies

Expand Distribution ​

• Local distributor strategy

• Public health initiatives

• Partnerships with Non-

• Government Organisations and Government agencies

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Strong Sales Momentum

• Total Sales FY19 > 190 Devices

• Annuity revenue with SUS orders > 150,000 SUS units

Global Distribution

• 31 countries

• Pilot public health initiatives

Research and Development

• 2[nd] generation device

Technology transfer to key markets

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SALES DATA - FY2019

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Commercial stage cervical cancer screening technology

• Key Focus is on China (400m women of screening age)

• Use AIIMS report to open Govt sales in India

• Continue to support current second tier markets – Russia, South East Asia and Vietnam, Mexico and Middle East

• Continue to work with aid organisations in East Africa

• Receiving recognition from key NGO’s: UNITAID, the World Health Organisation and Clinton Health Access Initiative

COMMERCIALISED IN MULTIPLE MARKETS

SALES FOCUS

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SALES DATA - FY2019

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TruScreen (Units) SUS Growth

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ACCELERATING SALES OF DISPOSABLE SUS

ACCELERATING SALES GROWTH

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KEY MARKET: CHINA

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FACTS

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Screening Programs

• Various programs run by Central, State and Municipal governments, plus charities and major state owned enterprises (e.g. Sinopec)

Market Presence

• COGA (Chinese Obstetricians & Gynaecologists Association) – screen 20,000 women in public hospitals. Commenced Nov 2018, 52 Hospitals installed, completion in 2020

• Western China target 190 hospitals

• Hospital target usage of SUS: 150/m, with some using 1,000/m

World’s biggest cervical cancer market (Screening age population: 400M)

52% of TruScreen sales Initial distribution agreement signed 2014

Pipeline

• KOL support from COGA

• CDC program: Target is adoption in 3,000 women and children’s hospitals

• COGA program: Target to Open up 200 public hospitals in 2019

• West China: Target 90 devices in 2019 and another 100 in 2020 for government screening program - up to 2M women every two years

• Target Installation in 50 ‘Breast and Cervical Cancer Centres’ in rural areas in 2019 commencing with Xinjian province in the far west

• ‘Medical Checkup’ centres - target at least 50 in 2019, and then expand

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KEY MARKET: LATIN AMERICA

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FACTS
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Screening Programs

• Split between Central Govt and State Health Secretariats, public Insurance agencies (ISSTE and IMES), armed forces and state owned monopolies – e.g. Pemex

• New central government is conducting an overhaul of the National Health administration and TruScreen will adjust its plans to suit

Market Presence

• Installed in National Cancer Institute

• Installed in ‘Health Train’, ISSTE, Pemex and state-owned hospitals

Mexico

31M women of screening age

Pipeline

• Central and State Government Health Secretariats

• National health insurer, ISSSTE - 500,000 pap tests p.a. (installed in 4 ISSTE hospitals)

• 8% of TruScreen sales

• National oil monopoly, PEMEX - 60,000 pap tests p.a. (installed in 2 Pemex hospitals)

• Private lab and clinic chains

Initial distribution agreement signed 2015

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KEY MARKET: RUSSIA

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FACTS

Screening Programs

• No central government screening programs

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• State and municipal governments conduct ad hoc programs

Market Presence

• Distribution agreement with IMSystems with initial orders in Feb 2019

• Advanced payment of USD $250k for multiple TruScreen Devices and Single Use Sensors (SUS)

• IMSystems has extensive expertise in the distribution of medical equipment and devices in Russia and partnerships with global brands and manufacturers, including GE Healthcare.

44M women of screening age

Pipeline

20% of TruScreen sales Original agreement in 2015

• Evaluated by ROSZDRAVNADZOR (Russia FDA)

• Major target is State Government Health Systems, starting with St Petersburg

• Private clinics and hospitals

New agreement distribution agreement signed in Feb 2019

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KEY MARKET: INDIAN SUBCONTINENT

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FACTS

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India
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300M women of screening age Initial distribution agreement signed 2017

Sales commenced in FY18

Screening Programs

• Split between Central Govt and State Health agencies and govt institutions – Armed Forces, State Rail et al.

• Central government has mandated that all women over 25 be screened for breast and cervical cancer

Market Presence

• Engaged major distributor (KLAB) – 700 employees

• Commenced marketing in three regions

• Central – Delhi NCR, Madhya Pradesh, Haryana, Telegana and Maharashtra North East - Manipur and Assam

South – Tamil Nadu

Pipeline

• All India Institute of Medical Science (AIIMS)

• Central and state governments (aim for inclusion in the 2020 National Ministry of Health Budget)

• Armed Forces Hospitals and Armed Forces Medical Research Centre

• Major Private Hospital Groups (e.g Fortis, Apollo)

• Tenders for State Screening Programs

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KEY MARKET: AFRICA

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FACTS

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Screening Programs

• Step 1: National Aids Council (NAC) of Zimbabwe

• Step 2: Use this for both government and NGO support for other projects in East Africa – Malawi and Mozambique submission being prepared

• Collaborating with DYSIS Medical and WISAP Medical Technology GmbH

Market Presence

• TruScreen selected by Zimbabwe NAC program for more than 800,000 HIV-affected women

• Ministry of Health supported aid grant application to use TruScreen for a national screening program

227M women of screening age

13.1M women suffer from HIV

Pipeline

• Evaluated by National Aids Council of Zimbabwe

• Target East and Southern African countries with high HIV prevalence

Zimbabwe 7% of TruScreen sales

x5 increased HIV+ women up to risk of developing cervical cancer

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KEY MARKET: SOUTH EAST ASIA

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FACTS

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Screening Programs

• Government Hospitals, Private Hospitals and Government programs.

• No organised Screening

Market Presence

• Distributor Appointed

• Several medical expert delegations conducted

• Presented to Key Opinion Leaders and MOH administration

• Evaluated by Appraisal Committee of MOH

Vietnam

26M women of screening age Initial distribution agreement signed 2016

Pipeline

• Hanoi O & G Hospital to conduct pilot programme

• Stage 1: 1000 patients

• Stage 2: 5000 patients

• Target: TruScreen adopted as a national screening programme

Pilot Programme Commenced in August 2019

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MANUFACTURING

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Current Capacity

• Established in-house EOA (Electrical Optical Assembly)

• manufacturing facility at CSIRO

• Increased capacity: Expandable to 200 units/month

• Can be doubled in short time to meet demand

• R&D tax offset

Future Capacity

• improvement in gross profit per device

• Cost reduction initiatives:

• Bring high tech processes in-house

• Technology transfer to key markets – ‘local device’ for domestic registration

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PLANNING FOR GROWTH

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• People & Capability

• Strategic Partnerships Manufacturing Build on Revenue & Relationships Capabilities Streams • • • • Endorsement from Key Expand capacity Drive Sales and growth Opinion Leaders from geographic • Lower cost footprint

• • Government public • Potential overseas •

• health adoption Sustainable Recurring assembly - but key IP Revenue Stream

• • Major screening processes retained by •

• •

• programmes TRU Transition early adopters to commercial users

• • • Build NGO funding Underpinned by •

• •

• support for TruScreen Research and Further regulatory people

• programmes Development Ongoing approvals and clinical product improvement trials •

• • Enhance distribution •

• networks and key Ongoing product partnerships improvement • SUS Counterfeit prevention

• Social media marketing campaign to raise awareness and position of Executives as Thought Leaders

• • List on Australian Stock Exchange

• • Investment in skilful people

• • Investigating further cost-reduction strategies

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FY18 Goals and Strategic Progress CONTACT www.TruScreen.com Tony Ho Martin Dillon Chairman Chief Executive Officer tonyho@truscreen.com martindillon@truscreen.com Investor relations enquiries: truscreen@we-buchan.com

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Guy Robertson Chief Financial Officer guyrobertson@truscreen.com

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