TruScreen Group Limited — AGM Information 2020

Sep 10, 2020

Annual Shareholders Meeting Presentation TruScreen Group Limited 10 September 2020

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Introduction of Chief Executive Officer – Victoria Potarina

• ⚫ Joined TruScreen as CEO as of March 2020;

• ⚫ Over 20 years of experience with major multinational blue chip companies;

• ⚫ 12 year of experience in Medical Device business of Johnson & Johnson;

• ⚫ International career across Eastern Europe, Russia, the UK, Ireland, Australia;

• ⚫ Deep expertise in the business model based on sale of consumables;

• ⚫ Focussed on commercial efficiency and customer experience;

• ⚫ Masters in App Ling (Hons), GAICD, MBA candidate with MGSM

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TruScreen Vision: A world without cervical cancer. Cervical cancer can and should be prevented. TruScreen provides an accurate, real-time screening solution.

Our screening solution is ideal for communities that can’t access conventional laboratory-enabled screening methods. It is affordable and easy to learn. Our purpose is to ensure that all women of screening age – no matter who they are – can have access to quality screening.

Cervical cancer is a major public health issue

Fourth most common cancer, affecting women

• 570,000 new cases p.a.

• 311,000 deaths p.a.

Young women in low and middle income countries (LMIC) are most at risk

• Most diagnoses occur at age 35-44

► 85% of cases and 87% of deaths occur in LMICs

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WHO Global Targets for 2030 (Draft)

The World Health Organisation has set a target to eliminate cervical cancer by the end of the century.

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90% coverage of HPV Vaccination of girls (by 15 years of age);

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70% coverage of screening (70% of women are screened with high performance tests by the ages of 35 and 45 years) and 90% treatment of precancerous lesions;

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Management of 90% of invasive cancer cases

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TruScreen Presence in biggest Emerging and LMIC markets

1bn Women eligible for targeting in key markets

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In millions
TruScreen’s
current markets
Targeting
commercial roll-out
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27
4
24
33 42
402
318
Europe
Eastern Mexico
Zimbabwe Vietnam Russia India China
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Results FY 31 March 2020

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FY 31 March 2020 Highlights

• ⚫ Progress in commercial roll-out with big trials finalized in China, India and Vietnam

• ⚫ Main market continues to be China with over 60% of sales

• ⚫ Initial results from COGA trial in China surpassed expectations (better or equal to LBC and hrHPV in the same study)

• ⚫ Service centres established in China, Russia and Vietnam

• ⚫ TruScreen cervical cancer screening device acknowledged in Unitaid/WHO report on screening and treatment technologies and advantages of use in low and middle-income countries

• ⚫ New CEO started as of 2[nd] March

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FY 31 March 2020 Finance Results

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• ⚫ Sales down 31% to NZ$1.3m, from Chinese procurement delays and initial COVID-19

• ⚫ Total revenue down 18% to NZ$2.55m

• ⚫ EBITDA improvement of 23% YOY with reduction in overhead costs

• ⚫ China remains primary focus, recent entry into Vietnam

• ⚫ Improvement in operating cash outflow

• ⚫ Successful capital raise of NZ$5.243m early in the new year

	KEY FINANCIALS	FY 18	FY 19	FY 20	% Change
	NZD (m)	Actual	Actual	Actual	FY20/FY19
	Sales	0.8	1.9	1.3	-31%
	Total Revenue	2.2	3.1	2.5	-18%
	COGS	.74	1.4	0.8
	R&D	1.9	1.7	1.1
	EBITDA	(3.6)	(2.8)	(2.1)	+23%
	Net Assets¹	11.6	11.3	7.2
	Cash²	1.2	1.7	1.0

¹Net assets in 2020 reflects a $2.4m write down of intangible assets.

Revenue, $NZ

Total revenue

Device revenue

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$800,000
$3,500,000
$700,000
$3,000,000
$600,000
$2,500,000
$500,000
$2,000,000
$400,000
$1,500,000
$300,000
$1,000,000 $200,000
$500,000 $100,000
$0 $0
2019 2020 2019 2020
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Consumables (SUS)

R&D Income

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$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2019 2020
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$1,260,000
$1,230,000
$1,200,000
2019 2020
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Device and SUS Revenue

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SUS
Device
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0 yrs.

5 yrs.

Full-Service Distribution Chanel

• ⚫ SUS revenue will grow at a higher rate than Device revenue

• ⚫ SUS revenue will become a sustainable recurring revenue stream

• ⚫ The device has an expected lifetime of 5-7 years and the SUS is used once per test per patient

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China: The biggest market with a growing sales trend and huge potential

404m women of screening age. No centralized screening program

FY2020 Market Progress:

• ⚫ Number of installed devices increased by 13% vs LY.

• ⚫ SUS sales increased by 38% in units despite of COVID-19 lockdown since January 2020

• ⚫ Expanded sales network to cover all the major areas in the country

• ⚫ Commenced a large clinical trial project with COGA, aiming to complete by end of December 2020. Preliminary results are promising

• ⚫ Distributor Sponsored more than 100 conferences/workshops including COGA and CSCCP annual meetings

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RUSSIA: Early commercialisation stage with focus on clinical education

42m women of screening age. No centralized screening program

FY2020 Market Progress:

• ⚫ New highly professional distributor established in 2019.

• ⚫ TruScreen conducted a clinical training program with IMS and KOL in June 2019.

• ⚫ TruScreen completed technical training with IMS, established a local service centre in September 2019.

• ⚫ Commercial sales proceeded in line with 2-year contract.

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Clinical studies: China, Vietnam, India

• ⚫ China – COGA project 1[st] phase completed with a multi-centre study involving 5 top level teaching hospitals and 1,022 women, TruScreen performance proved superior or equal to the LBC and hrHPV testing.

• ⚫ China – 4 separate clinical trials involving total 1,857 women were completed throughout 2019. Results in line with other studies.

• ⚫ India – at end of 2019 AIIMS (All India Institute of Medical Sciences) completed a study involving 645 women, demonstrated better sensitivity and specificity than that of Pap smear.

• ⚫ Vietnam – Hanoi Obstetrics and Gynaecologic Hospital finished a comparison study in November 2019 confirming TruScreen is a better solution for cervical cancer screening in Vietnam.

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Our plans for FY 31 March 2021

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TruScreen Path to Growth*

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Transformation Rapid Growth 2023 &
Setting the fundamentals 2014 – 2020
2021 – 2022 beyond
2019 Sep
Rapid non-linear sales growth
China COGA study
Company growth to support the sales
first screening
CFDA approval for results exceed Strategic partnerships
second generation 2018 Oct 2019 May
expectations
device
523% sales Recognition by
2017 Dec growth in H1 World Health
Organization
Commence large
2014 Nov
scale pilot with China Migration to NZX
Listing on NZAX CDC and COGA
2018 Dec Strengthen / growing team
2018 Jul
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Strengthen / growing team Recovery COVID-19 Margin improvement Further roll-out and manufacture in China

• Subject to covid-19 and geopolitical situation

Setting commercial roll-out in Vietnam and India

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4 Business Strategy Pillars - FY 31 March 2021

Drive adoption in Relentless focus on Expanding clinical established markets product quality and support and new markets innovation

• Continue roll-out in more established markets (China, Russia, Zimbabwe)

• New Quality Assurance (QA) systems implementation

  • New clinical publications under MAC supervision

  • ► Continue local trials to ensure local KOL support

  • ► Launch online education module with certification to prepare the company for rapid expansion

• Ongoing improvement of device in line with feedback from markets

• Drive adoption in Vietnam and prepare roll-out in India based on successful clinical trials finalized recently

• Innovative approaches to communication with customers and doctors, re-branding.

• Seed in promising LMIC markets (Eastern Europe)

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Enhance team capabilities

• Hiring of high profile executives with expertise in medical devices / LMIC markets (CEO, CTO)

• ► Leverage digital solutions for QA, training & education, sales support

• ► Grow the team in line with sales progress/business needs

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Highlights of FY 31 March 2021 - progress

• ⚫ Sales YTD +69% vs. last year, NZD (April-Aug’19 to April-Aug’20, unaudited)

• ⚫ Sales of SUS +79% YTD vs last year, units (April-Aug’19 to April-Aug’20, unaudited)

• ⚫ Milestone of 100 installed devices achieved (devices that are used for screening in key countries)

• ⚫ Approval from Vietnamese Ministry of Health and roll-out in major Hanoi hospital

• ⚫ Further progress with COGA - over 6,000 women screened

• ⚫ Further progress with clinical educational program in Russia:

• In May 2020 IMS launched a national education campaign, “Women of a different age: from onco-denial to onco-phobia” featuring TruScreen as the primary screening method. Over 2,800 doctors and specialists across 18 cities completed the training

• on-line format started, 7 on-line webinars conducted with over 350 doctors educated on-line on benefits of Truscreen screening system

• ⚫ Appointment of a specialized medical device distributor for Eastern Europe (Aspironix) to cover 3 countries: Czech, Slovak and Poland (27m screening population).

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Number of installed devices on track to double by 31[st] March 2021*

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160
100
90
88
81
64
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March’19

March’20

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May’20
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June’20
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July’20
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• Excluding Mexico. Subject to cvoid-19 conditions and geopolitical situation.

March’21

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Future outlook for FY 31 March 2021

• ⚫ Continue to focus on commercial roll-out in key markets - China

• ⚫ Achieve above 160 installed devices across key markets (+100% YoY)

• ⚫ Obtain COGA consensus in China in cervical cancer screening

• ⚫ Continue with HCP education program in Russia, increase of commercial clinics’ coverage

• ⚫ Roll out commercially in Vietnam and Zimbabwe

• ⚫ To establish a presence in Eastern Europe with 1[st] commercial sales to start in H1CY’21

• ⚫ Roll out of new branding across all communication channels

• ⚫ Enhancing team capabilities in Technology and Medical Affairs groups.

• Subject to covid-19 and geopolitical situation

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Contact us for more information:

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Disclaimers

This presentation has been prepared by TruScreen Group Limited (the “Company”) and is dated 10 September 2020. This presentation contains summary information about the Company and its activities which is current as at the date of this presentation. The information in this presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in the Company. This presentation should be read in conjunction with the Company’s annual report, market releases and other periodic and continuous disclosure announcements, which are available at www.nzx.com. This presentation does not constitute an offer, advertisement or invitation in any place in which, or to any person to whom, it would not be lawful to make such an offer, advertisement or invitation.

Not financial product advice

This presentation is for information purposes only and is not financial or investment advice or a recommendation to acquire the Company’s securities, and has been prepared without taking into account the objectives, financial situation or needs of prospective investors. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and consult a financial adviser, solicitor, accountant or other professional adviser if necessary.

Past performance

Any past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. No representations or warranties are made as to the accuracy or completeness of such information.

Future performance

This presentation includes certain “forward-looking statements” about the Company and the environment in which the Company operates. Forward-looking information is inherently uncertain and subject to contingencies, known and unknown risks and uncertainties and other factors, many of which are outside of the Company’s control, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. A number of important factors could cause actual results or performance to differ materially from any forward-looking statements. No assurance can be given that actual outcomes or performance will not materially differ from the forward-looking statements. The forward-looking statements are based on information available to the Company as at the date of this presentation. Except as required by law or regulation (including the Listing Rules), the Company undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

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Thank you
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