USCOM LIMITED — AGM Information 2015

Nov 23, 2015

Uscom Limited

2015 ANNUAL GENERAL MEETING

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Board of Directors: Prof Rob Phillips (Executive) Ms Sheena Jack (Non-executive) Mr Christian Bernecker (Non-executive) Company Secretary – Ms Catherine Officer BDO Auditors – Mr Tim Sydenham

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Uscom Annual General Meeting 2015

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• Quorum / Open meeting

• Chairman’s Welcome, Introduction of Board Members

• Chairman’s Presentation

• GM Operations Update

• US Operations Update

• Objectives 2016

• Notice of Meeting – Taken as Read

• Consideration of Reports

• Business – Resolutions 1 - 7

• Close of Meeting

• Question and Answers

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Uscom Annual General Meeting 2015

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Associate Professor Rob Phillips PhD(Med), MPhil(Med), FASE, DMU(Cardiol) Executive Chairman, Chief Executive Officer, Head Clinical Science

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Uscom Annual General Meeting 2015

“It is simple to start a business, but it takes time to build a global medical technology Company…… Now is Uscom’s time.”

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Uscom Annual General Meeting 2015

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Distribution. Sales. Revenue.

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Uscom Annual General Meeting 2015

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• Revenue +48%, sales +59%

• Record growth and sales of USCOM 1A devices

• Distribution increased 57%

• Acquisition of 100% of Thor Laboratories

• Raised capital ($2.1m) and paid cash for acquisition

• Johnson&Johnson Innovation AusBiotech Company of the Year

• Established UK entity – Uscom Medical

• Thor FDA clearance

• USCOM 1A 5yr CFDA clearance for China

• Appointment of former Senior Welch Allyn Exec to lead US

• USCOM 1A and Uscom BP+ leading sector science

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Uscom Annual General Meeting 2015

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Distribution Agreements

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Revenue and Income

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40 $2,500,000
36
35
$2,039,426
$2,000,000
30
25 23
$1,500,000 $1,377,716
20
$1,010,942
15 $1,000,000
12
10
+48% +57% $500,000 +36% +48%
5
0
$0
2013 2014 2015
2013 2014 2015
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Current revenue only from USCOM 1A Revenue lag from distributor appointments - revenue in pipeline Distribution – sales – revenue

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Uscom Annual General Meeting 2015

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Uscom has acquired 100% of Thor Laboratories - Asthma

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Company Overview

• High fidelity digital ultrasonic spirometers

• Established manufacturing - 15 years

• Global reach

• Reimbursement in multiple markets

• Strong R&D and grant history

• Partners in Home Care Asthma in the USA

Uscom benefits

• Cash flow positive, revenue of $500k

• Accredited international manufacturing

• 4 + 3 products, CE, FDA, TGA approvals

• Global distribution

• Technical R&D team 12 engineers

• $4bn respiratory + $700m US Spiro markets

Synergy of science, operations and strategy

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Uscom Annual General Meeting 2015

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Product Release – 7 new products Uscom high fidelity, multi-path digital ultrasonic spirometers

Series Name: Spirosonic™

Logo:

Product Features:

• Multi-path ultrasonic sensors

• Research quality

• FreeFlo tube - low resistance, no turbines or mesh FDA, CE, and TGA

• Auto calibration

• Software guided examination and report

• Research, home and clinical applications

• Simple disinfection

• Reliable and accurate

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Uscom Annual General Meeting 2015

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1. Flo 2. Mobile 3. Smart

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High fidelity, multi-path digital ultrasonic spirometers

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Uscom Annual General Meeting 2015

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4. HD
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5. Pro 6. SpiroReader
7. SpiroReporter
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Uscom Annual General Meeting 2015

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8. SmartSpacer Dose management

9. WiFi Home care

10. Whistler Neonatal asthma diagnostic

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Uscom Annual General Meeting 2015

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Uscom Annual General Meeting 2015

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“Oxygen delivery from nose to toes”

*

Fluid, Sepsis Hypertension & COPD & Heart Failure Vascular Health & Asthma

• CE, FDA, TGA, CFDA

• US 1.3bn market[*]

• CAGR of 7.6%[*]

• CE, FDA, TGA, CFDA (active)

• US 1.7bn market[*]

• CAGR of 11.5%[*]

• CE, FDA, TGA

• US 4b+700m market[**]

• CAGR of 6.5%[*]

SpiroSonic Pulmonary Monitoring

USCOM 1A BP+ Cardiac Output Monitoring Blood Pressure Monitoring

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Complementary products and technology

• Source: MedTech Insight; Transparency Market Research

• • WHO

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Uscom Annual General Meeting 2015

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_*_ Why the Uscom mission is important for medicine**

• Life is dependent on the delivery of adequate oxygen

• Deprived of oxygen the cells begin to die in 2 minutes

• The circulation delivers oxygen to the cells Air, carrying oxygen, is inhaled into the lungs

• Oxygen is transferred to the blood in the lungs Blood is circulated to the cells via the vessels The heart pumps the blood

• Uscom owns practice leading and innovative technologies in all areas

• SpiroSonic measures the air entering and leaving the lungs

• Uscom BP+ measures the function of the vessels

• USCOM 1A measures the function of the heart

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Synergy of science, operations and strategy

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Uscom Annual General Meeting 2015

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Uscom BP+ Thor Granted 12 21 3 Pendin 4 1 1 g

Patents - Real IP, real value

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Uscom Annual General Meeting 2015

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Over 800 USCOM units sold worldwide

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Key Markets
1. Nth America – 8%
2. Europe – 27%
3. AsiaPAC – 65%
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Uscom Annual General Meeting 2015

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Nick Schicht Steve Haken Andrew Kenig

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Denise Pater Tina Wu Rik Denicke

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Rob Phillips

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Global Euro Aus

Global Global USA Global

Bev Jacobson Richard Scott Hanna Maartensson George Tang Lindy Belleza George Ferenczi Hagay Gilad Steve Wilson

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Global Global Aus

Aus

Aus

Global Aus

USA

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Uscom Annual General Meeting 2015

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1. George Ferenczi	Thor and product development		12. Balazs Herczeg	Mechanical engineer, product dev
2. Nikolett Makovinski	General Manager		13. Szabolcs Reichhardt	Quality Assurance
3. Nora Sima	Marketing Manager		14. George Szabo	Software developer
4. Zoltan Rozsnyik	Software developer		15. Szabolcs Hogye	Software developer
5. Gergely Csiszler	Electronics Development		16. Balazs Szakolczai	Mechanical engineer and design
6. Attila Stefan	Embedded systems engineer
			17. Zsolt Nemeth	Regulatory
7. Gyorgy Salanki	Production Manager		18. David Krcs	Software
8. Aniko Gyori	Quality Management and sales
			19. Hunor Racz	Web Developer (PT)
9. Adam Szabo	Mechanical Engineer
			20. Ferenc Nagy	Med Device Auditor (PT)
10. Gabor Marko	Electrical Engineer
			21. Daniel Gizella	Product Design (PT)
11. Robert Pataki	Design and electronics engineer

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Thor (Uscom Budapest) = 18 full time, 3 part time

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Uscom Annual General Meeting 2015

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“Paediatric intensive care in Hungary; Saving Children with Sepsis

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https://www.youtube.com/watch?v=zvFXUnKiAH8

Uscom Annual General Meeting 2015

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“USCOM for screening in pregnancy” “USCOM to replace catheters in children”

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2015
410
46
+
papers
papers
1. Tiralongo GM, Presti DL, Pisani I, Gagliardi G, Scala RL, Novelli GP, Vasapollo B, Andreoli A, Valensise H. Assessment of total vascular resistance and total body
water in normotensive women during the first trimester of pregnancy. A key for the prevention of preeclampsia. J Preg Hypertension: An International Journal of
Women’s Cardiovascular Health 2015;5(2): doi.org/10.1016/j.preghy.2015.02.001
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2. Beltramo F, Menteer J, Razavi A, Khemani RG, Szmuszkovic J, Newth CJL, Ross PA. Validation of an ultrasound cardiac output monitor as a bedside tool for pediatric patients. Ped Cardiol 2015, DOI 10.1007/s00246-015-1261-y

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Uscom Annual General Meeting 2015

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Uscom

AusBiotech Company of the Year Johnson & Johnson Innovation Industry Excellence Awards

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Uscom Annual General Meeting 2015

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Mr Nick Schicht Uscom General Manager

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Uscom Annual General Meeting 2015

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Uscom products are cleared for sale in the following regions  Australia - TGA  USA - FDA 510k  Europe - CE  China - CFDA  Canada - Canada Health

CE is also used for other countries as a basis for registration

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Uscom Annual General Meeting 2015

Regulatory Audits and Renewal

Uscom is audited quarterly, yearly and by schedule by various governing bodies

Current update activities include  BP+ improvements and FDA  SpiroSonic product addition

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Uscom Annual General Meeting 2015

Manufacturing

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Uscom products are manufactured

• USCOM 1A and BP+ in Sydney, Australia

• Thor range in Hungary

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Activities have begun to

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• Manufacture BP+ in Hungary

• Manufacture SpiroSonic in Hungary

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Uscom Annual General Meeting 2015

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Mr Stephen Wilson Uscom Vice President US Business Development

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Uscom Annual General Meeting 2015

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Uscom Annual General Meeting 2015

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Care

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Uscom Annual General Meeting 2015

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Uscom 1A

BP +

SpiroSonic OEM

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+ Establish CPT Code

+ Leverage CPT Code

• + Clinical Grade 510K

+ Connected Spiro

• + Target High Acuity Distributors

• + Establish FDA 510K and Distribution

• + Position Portfolio with a disposable

+ Partner into Home Health

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Uscom Annual General Meeting 2015

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Product	Measure	Region	Code	Price (AUD)	Status
Uscom BP+	Central BP	USA	93050	$25.60	S*
USCOM 1A	Cardiac Output	USA	76999	$107.00	S**
	Cardiac Output	China	310701023	$44.00	✓
	Cardiac Output	China	220600010	$13.50 + $2.50 measure	✓
	Cardiac Output	Australia	TBD	TBD	S**
Uscom Thor	Spirometry	USA	94010	$51.43	✓
	Spirometry	USA	94060	$87.14	✓
	Spirometry	USA	94070	$87.00	✓
	Spirometry	USA	94375	$57.14	✓
	Spirometry	Australia	11506	$20.55	✓
	Spirometry	Australia	11509	$35.65	✓
	Spirometry	Australia	11512	$61.75	✓

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S[] Subject to Software modification and FDA notification S[] Under submission – in review

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Uscom Annual General Meeting 2015

TBD –To be determined

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Original equipment manufacturer (OEM) is a term used when one company makes a part or subsystem that is used in another company's end product

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Uscom Annual General Meeting 2015

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Three product ranges entering profit phase

	Concept	Product	Pilot	Validation	Regulatory	Revenue	Global Distribution	Profit 2016
USCOM	✓	✓	✓	✓	✓	✓	✓	±✓
Uscom BP+	✓	✓	✓	✓	✓	✓	✓	±✓
Thor	✓	✓	✓	✓	✓	✓	✓	✓

Investment to Profit

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IP shifting to profit

Uscom Annual General Meeting 2015

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Thor
Total Revenue
20,000,000
18,000,000
16,000,000
BP+
14,000,000
12,000,000
Thor
$ 10,000,000
BP+
USCOM
8,000,000
USCOM
6,000,000
4,000,000
2,000,000
0
2015 2016 2017 2018 2019 2020
$20m revenue by 2020 - 5 year CAGR of 58%
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Uscom Annual General Meeting 2015
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Uscom Share Price

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25
22
21
20
15
15
10.5
10
6.7
5
0
Jan-12 2012 vwap 2013 vwap 2014 vwap 2015 vwap
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5,166,718 shares traded $1,066,182 by value VWAP 20.6c

Uscom Annual General Meeting 2015

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5[th] Oct 2015 5[th] Oct 2016 12mth Change 0.14c (14m) 0.42c (42m) +200%

12 month Projections and price and cap value targets

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Ben Kakoschke – 5[th] October, 2015

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Uscom Annual General Meeting 2015

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Risks

Mitigants

• Global markets unpredictable

• Diversified and expanded products

• Thor integration & key staff retention

• Earn outs in Thor deal structure

• Ongoing Thor business management

• Earn outs in Thor deal structure

• Competitiveness of market sectors

• Senior sales and marketing personnel

• Thor distraction from USCOM & BP+

• Product diversification

• Regulatory costs and timelines

• Resources focussed on integration

• Distribution & revenue growth

• Key Uscom and Thor staff

 Working capital requirements to meet increased product demand

• Senior sales and marketing resource

• Additional WC in capital raise

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Uscom Annual General Meeting 2015

Milestones 2016

• More products Global launch BP+ Global launch SpiroSonic products (+8) - More Revenue Continue sales growth ±50% More and better distribution Cross distribute Thor/USCOM/BP+ US market development Reimbursement drive – Global operations Grow US, UK and Budapest Grow China Market value - Grow company awareness

More to come…….

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Meeting our milestones

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Uscom Annual General Meeting 2015

2016 Strategy

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Product. Distribution. Sales. Revenue.

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Uscom Annual General Meeting 2015

“It is simple to start a business, but it takes time to build a global medical technology Company…… Now is Uscom’s time.”

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Uscom Annual General Meeting 2015

Uscom Limited

2015 Annual General Meeting

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Questions and Discussion

The Measure of Life