USCOM LIMITED — AGM Information 2014

Nov 25, 2014

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**Uscom

Limited 2014
Annual
General
Mee8ng**

Wednesday 26 November 2014 Suite 1, Level 7, 10 Loftus Street, Sydney

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The Measure of Life

www.uscom.com.au

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Agenda

• Quorum / Open meeting

• Chairman’s Welcome, Introduction of Board Members

• Chairman’s Presentation

• GM Operations Update

• Notice of Meeting – Taken as Read

• Consideration of Reports

• Business – Resolutions 1 - 6

• Close of Meeting

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Introduction

Board of Directors: Dr Rob Phillips Ms Sheena Jack Mr Christian Bernecker Company Secretary – Ms Catherine Officer

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Executive Chairman’s Report

Dr
Rob
Phillips PhD(Med),
MPhil(Med),
FASE,
DMU(Cardiol) Execu=ve
Chairman,
Chief
Execu=ve
Officer,
Head
Clinical
Science

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2014 Strategy

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Distribution. Sales. Revenue.

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Achievements - 2014

• Integrated Pulsecor assets and operations - BP+ doubled company

• Appointed global sales manager

• Manufactured first Uscom BP+

• Product improvements

• Regulatory transfers and approvals

• Manufacturing specs

• Distribution – 15 new distributors (+125%) - $12m+ revenue from 3

• $7m 5 year China ($1.3m pa after CFDA)

• $2.35m 3 year Deltex ($780k pa)

• $2.7m 3 year SMT ($900k pa)

• New distribution – more in discussion

• Science – 36 new publications

• Revenue

• Q2, Q3, Q4 – Year on year growth 150-200%

• • Approaching profitability

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UCM – Revenue Growth

Annual Revenue

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$1,200,000
$1,056,619
$1,000,000
+68%
$800,000
$638,734
$600,000
$400,000
$200,000
$0
2013 2014
“Tipping point”
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UCM – Distribution Growth

Distribution Agreements

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40
34
35
+26%
30
27
25
+125%
20
15
12
10
5
FY to date
0
2013 2014 2015
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Growing distribution Growing revenue 2 year lag time

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UCM – Sales Growth

Quarterly Sales Revenue

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400000
350000
300000
250000
200000
150000
100000
50000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013 2013 2013 2013 2014 2014 2014 2014 2015
“Tipping point”
$
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Impact of new distribution strategy

Corresponding Q on Q comparison – av $120k to $300k

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UCM – Growth Rate

Quarterly Growth in Receipts

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200
150
100
50
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013 2013 2013 2013 2014 2014 2014 2014 2015
-50
-100
%
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Average % growth 150-200% for Q on Q receipts for last 3 quarters “Tipping point”

Impact of new distribution strategy

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UCM - Investment

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Uscom Share Price
25
22
20
15
15
10.5
10
6.7
5
0
Jan-12 2012 vwap 2013 vwap 2014 vwap
$ x 100
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+49% pa

3 year trend growth = 49% pa

Unrecognised value following BP+ acquisition and sales growth Significant price re-alignment as revenue recognised Tightly held – difficult to buy volume

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UCM – Investor Research

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Research – published 31[st] Mar 2014

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UCM – Investor Research

“……. in the hot biotech sector, Uscom appears to be flying under investors' radars .”

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• • • • • • • http://www.proactiveinvestors.com.au/companies/news/52663/uscoms central blood pressure device named as - - - - - - - gold standard for measurement in global study 52663.html

Research – published 10[th] Feb 2014

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Manufacture and Sales

2014

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Australian of the Year

Finalist - 2015

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Saving lives using USCOM Haemodynamics In sepsis

Professor Brendan Smith

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Biotech Company of the Year

October 2014

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Testimonial

“We bought our USCOM about 3 years ago, and we use it routinely to manage fluid and sepsis, and we love it; it’s changed the way we see and manage haemodynamics The physicians all use the USCOM, and many of the senior trainees.

Echocardiography is difficult and inaccurate, and takes so much training its not feasible for us, and paediatric cardiologists are never around at 2am in the morning when things go wrong We have had many patients whose lives were saved directly through use of the USCOM”

Dr Eniko Ujhelyi – Director, Infectious diseases PICU, Szent Istven and Szent Laszlo Hospitals, Budapest

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Strategy - 2015

Meeting the demand…..

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Distribution. Sales. Revenue.

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General Manager Nick Schicht

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Manufacturing Strategy

Three phase manufacturing growth strategy 1 Uscom – In house assembly and testing 2 Outsourced – Local purchase + manufacture 3 Outsourced – International logistics + manufacture

Depends on demand and volume – shifting as required

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Current Manufacturing

Phase 1

• USCOM 1A and BP+ - manufactured, tested and quality controlled by Uscom

• Sub assemblies are outsourced (local and international)

• Build to minimal inventory

• Component lead time - 2 to 15 weeks

• Minimum quantity orders are delivered in drops which can be called in for peaks in demand

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Future Manufacturing

• Phase 2

• Local volume manufacturer

• Uscom involvement in logistics

• Phase 3

• High volume manufacture

• Asian/European based

• Full procurement

• Global supply chain

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Executive Chairman’s Report Summary

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2015

• Maintaining momentum and growth – increased management

• Expanding distributor numbers

• Increasing distribution effectiveness

• Bring BP+ to large volume distribution partners

• Manufacturing to meet orders

• Institutionalising the share register

• Growing the science – KOLs and education programmes

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Risks

• Global medical markets unpredictable

• Product development/regulatory slower and more costly than expected

• Distribution slow to achieve revenue goals

• Competitive risks and patent breaches

• Supplying stock to meet orders

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Achievements & Targets

• Operations – Revenues from activities up 67%, and cash on hand up 292%

• Growth – Successful integration of Pulsecor IP, systems and assets

• Milestones – Manufacture/sale of Uscom BP+, USA BP+ patent, and CE approval

• 2014 Distribution • Achievements Science – 36 new publications for USCOM 1A and BP+

• Distribution – Increased distributors from 12 to 27 (125%) with more in negotiation

• New sales and distribution partners for increased coverage 2015

• New partnerships – strategic opportunities for licensing and manufacturing

• Volume manufacturing – to meet anticipated demand

• Expanding management team – to support global expansion

2015 Targets

• Strengthening balance sheet - demonstrable milestones/value inflection points

• Approaching Profitability – FY2015

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Strategy - 2015

Meeting the demand…..

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Distribution. Sales. Revenue.

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**Uscom

Limited 2014
Annual
General
Mee8ng**

Questions and Discussion

Wednesday 26 November 2014 Suite 1, Level 7, 10 Loftus Street, Sydney

www.uscom.com.au

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The Measure of Life