USCOM LIMITED — Investor Presentation 2012

Jun 21, 2012

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Commercialisation of USCOM; The Big Leap Forward

Robert Phillips MPhil(med), FASE, DMU(cardiol) Chief Executive Officer

June 2012

Our goal

Uscom’s mission is to create long-term shareholder value by transforming and improving cardiovascular monitoring and making USCOM the standard of clinical care worldwide

The measure of life www.uscom.com.au

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Our status

De-risked, standard of care, platform cardiac monitoring technology with a clear and activated path to market via strategic partnerships

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Our objective

Raise adequate funds to support current marketing and the new partnering strategy over the next 18mths

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Agenda

• Who we are

• What we have done

• What we can do - current market and the future potential

• Our strategy to create shareholder value

• Next steps – the business model

• The future and new product pipeline

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“This machine is thought to have saved Abbie’s life.” “There are no words to describe how we felt“ Abbie's mother Charlotte Pattison

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h"p://news.bbc.co.uk/2/hi/uk_news/england/no7nghamshire/8525901.stm

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Uscom Ltd

• Uscom Ltd – Australian medical device Company

• Mission - develop and commercialise non invasive cardiovascular monitoring devices that will improve global health care

• Focus - improving medical care and management of hemodynamics worldwide

• Outcome – lives are being saved by the Uscom device daily

• Great Company – great science, great product, great people and an emerging global brand

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What it is...

• “ The most accurate clinical method of measuring cardiac output”

Cardiac output monitor Replaces invasive catheters Noninvasive Ultrasound based Real time blood flow measure 22 parameters Portable Accurate Simple Effective Safe

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New gold standard of clinical care

Improved care, reduced risk, reduced cost

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What it does...

Practice changing platform technology!

Catheters USCOM Invasive Noninvasive Inaccurate Accurate InfecEons Safe Mortality Rapid Expensive Inexpensive

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How it works...

“ Improving care, reducing risk and reducing cost”

Safe and smart ultrasound technology

SV: Stroke
Volume SVI: Stroke
Volume
Index CO: Cardiac
Output
(l/min) CI: Cardiac
Index SVR: Systemic
Vascular
Resistance SVRI: Systemic
Vascular
Resistance
Index HR: Heart
Rate SVV: Stroke
Volume
Variability CPO: Cardiac
Power SW: Stroke
Work SpO2: Mixed
Venous
Oxygen
SaturaEon DO2: Oxygen
Delivery Vpk: Peak
Velocity
of
Flow vE: Velocity
Time
Integral MD: Minute
Distance ET%: EjecEon
Time
Percent Pmn: Mean
Pressure
Gradient FT: Flow
Time FTc: Flow
Time
corrected

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Software works with all touch screen units

Multiple parameters

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Non-invasive Compact Intuitive

Real time Accurate Simple

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Gold standard evidence

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250+
Peer reviewed publications
and presentations
Emergency, Pediatrics, Cardiac transplantation, Electrophysiology, Heart Failure,
Emergency transport, Anesthesia, Liver transplantation, ICU, Septic shock, Pre-
eclampsia, Pulmonary hypertension, Nurse outreach, Organ procurement,
Haemodialysis, Neonates, infants, Children etc……..
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The new gold standard cardiac monitor

• Fluid − “The change in SV with PLR was the only haemodynamic index with significant predictive ability” 91% +ve predictive value. Critical Care 2009;13:R111

• Inotropes/Vaso’s − “USCOM was 6 to 8 times as sensitive to changes in CO induced by inotropes and vasoconstrictors as PAC.” Crit Care Res Prac 2012;doi:10.1155/2012/621496.

• ICU/PAC − “USCOM.. may safely replace PAC in many clinical situations that call for advanced hemodynamic monitoring.” Am J Surgery 2008:196(Dec);961-968

• Pediatric Sepsis − “Haemodynamic support directed to goals of …… cardiac index of 3.3-6.6l/min/m2” Crit Care Med 2009;37:666-688

• Organ procurement − 15% increase in organs for transplantation using USCOM guided optimisation compared to BP and CVP. Chest 2008; 134(Abst): s21003

• Liver transplantation − Editorial discussing the possible replacement of PAC by USCOM in Liver Transplantation. Liver Transpl 2008;14:917-918

• Pacemakers − “USCOM operated by a trained nurse can provide a simple, accurate, and fast noninvasive method for AVI optimization in CRT.” PACE 2007 30;1: 50–55

• Ventilation – “..USCOM, as a non-invasive, easy to handle and reliable CW-Doppler-based ultrasound system, remains an important tool for diagnosis and monitoring of critically ill patients.” Acta Cardiology 2012; 67(2): 177-185

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Recognition

• 2003 Global Entropolis Winner

• Best application of technology to a strong business model.

• 2005 World Technology Awards (Time, Science, NYSE, CNN, Fortune)

• Finalist in medical technology “most likely to change medical care world wide.”

• 2007 MedGadget Journal of Emerging Medical Technologies

• “This technology from Australian company USCOM Ltd. is nothing short of miraculous“

• 2007 Emerging Medical Device Company of the Year

• Frost and Sullivan Award for Excellence in Healthcare as the Emerging Medical Device Company of the Year

• 2010 Innovation and Technology Award – MedAssets

• “Most likely product and or service to improve patient care, and add efficiency to the healthcare delivery process and fulfill a need in the delivery of healthcare” (USA). USCOM # 3

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A business with multiple opportunities…

Current markets – 5 markets

• Pediatric ICU and neonatal ICU, Adult ICU and ED, Anesthesia monitoring

Un-partnered new markets – 17 markets

• Hypertension, Heart failure, Nurse led CO measurement, Dialysis, ED trauma resuscitation, Liver transplantation, Electrophysiology – pacemaker optimisation, Drug/ Medical research, Nurse led home care monitoring, Organ procurement, Military, Retrieval, Maternal pre-eclampsia, Cytotoxic therapy, Sports med, Pulmonary hypertension, Stress testing……

Technology Licensing – New opportunities

• Ultrasound devices – USCOMmod

• Monitoring suites – USCOMmod (fixed and mobile)

• Ventilation devices – USCOMresp

• Home care – Hypertension, heart failure, out of hospital supervision…….

• New products – Uscom has multiple patents and patentable concepts for development

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Early global adoption

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• •• • • • • • • • • • • • • • ••• • •[•]

•

•

• •

•

•

Approximately

500
units
worldwide

The measure of life www.uscom.com.au

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…with a clear competitive advantage

Method	Man.	Technology	Rel+Rep	Non- invasive	Simple	Cost	Portable	SV beat to beat
USCOM 1A	Uscom	Doppler	✓	✓	✓	✓	✓	✓
BioZ	Sonosite	BioImpedance	✗	✓	✓	✗	✓	✗
NiCOM	Cheetah	BioReactance	✗	✓	✓	✗	✓	✗
Nexfn	Bmeye	APP	✗	✓	✓	✓	✓	✗
CardioQ	Deltex	Doppler	✓	✗	✗	✗	✓	✓
LiDCO	LiDCO	LiCl diluEon +APP	✓	✗	✗	✗	✗	✓
LiDCOrapid	LiDCO	APP	✗	✗	✓	✗	✗	✓
PiCCO (mod Tx + PP)	Pulsion	APP	✓	✗	✗	✗	✗	✓
FloTrac	Edwards	APP	✗	✗	✓	✗	✗	✓
PAC (Tx)	Many	ThermodiluEon	✗	✗	✗	✗	✗	✓

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Progress – technology de-risked

• Spent $20m

• Built the device

• Achieved global regulatory approval

• Validation – new gold standard cardiac monitor

• Global luminary support – excellent KOLs

• Endorsed standards of care for multiple clinical applications

• Global distribution

• Global seed adoption

• IP portfolio – supporting existing product and new products

• Annual revenues approximately $1m

The measure of life www.uscom.com.au

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Global needs driving future demand

1. Invasive methods are inaccurate and ineffective

2. Need to reduce risk of infection

3. Need to improve levels of care

4. Need to reduce costs

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Selected financial snapshot 1H2012

• ASX code: UCM Summary of 5-year annual revenues

• • Listed: 2003

• • Market cap: $5 million $’000

• • Stock on issue: 52 million 1,800

• • 52 week high/low $0.24-$0.07

• • 1H2012 product sales: $0.5 million

• • 1,400 Cash @ 31 Dec ‘11: $1.0 million

• • Top 20 holders: 80%

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$’000
1,800
1,400
1,000
600
200
0
2007 2008 2009 2010 2011
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• Major holders: • Rob Phillips 32.6%

• • Gary Davey 11.9%

• • Colin Bell 4.1%

• • JP Morgan Nom 3.8%

• • OSI Systems 3.0%

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Cardiac monitoring market landscape

Investment opportunity

Capitalised value of USCOM and current competitors, $ million

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69
68
70
•
Last capital
60
53.3
raising $0.30
•
50
Current price
40
$0.09
•
Equivalent price
30
to competitors
20
$1.20
4.7
10
0
Pulsion
Deltex
LiDCO
Uscom
$M
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Regional product sales growth 1H2012

A total of 500 units currently in use worldwide

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Units Asia
US Europe
Sold Pacific
45 % 5 %
2011 50 %
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Regional sales revenues FY2011

x $100,000

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Asia Pacific United States Europe, Africa & Mid East
12 12 12
10 10 10
8 8 8
6 6 6
4 4 4
2 2 2
0 0 0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
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Growth – Opportunity

New clinical gold standard cardiac monitor based on platform technology which can immediately be licensed into multiple clinical applications to access the ultrasound, cardiac monitoring and ventilation markets. This platform technology can then be developed for application into home care for the hypertension and heart failure market.

The measure of life www.uscom.com.au

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Growth – Plans

Short term

• Drive current US, Europe and Asian distribution – New evidence

• Develop new distribution opportunities – Govt guidelines, etc

• Initiate strategic partnership opportunities – Leverage dominant scientific position into Ultrasound, monitors and ventilators

Mid term

• Execute strategic partnership into one or multiple licensing opportunities - Ultrasound, monitoring, ventilators etc.

• Leverage patented, gold standard CO monitor platform status

Long term

• Niche markets

• New products – Home use heart failure and hypertension

• Exploit strong IP position

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Immediate growth – strategic partnerships License genuine Gold Standard CO platform technology

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Ultrasound
CO
module $500m
=
20%
of
250k
x
$10kpa

Crit
Care
CO
Monitoring
module $500m
=
20%
of
250k
x$10kpa

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Home
care Hypertension,
HF
and
sleep
monitoring ?

Ventilation CO module $240 = 20% of 120k x $10kpa

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Pacemaker
opEmisaEon
unit
-­‐
ElectroCOM ?

Mobile
Monitoring
module ? $100m
=
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x
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Potential value of product pipeline

	Current	Sales at 4yrs	USCOM 20%	USCOM 50%	Profit
USCOM – sales	1m	400 ($15k)	$6m	$6m	$3m
USCOM – new	0	400 ($15k)	$6m	$6m	$3m
USCOM – monitors	0	250,000 ($10k)	$50m	$25m	$20m
USCOM – ultrasound	0	250,000 ($10k)	$50m	$25m	$20m
USCOM – ventilators	0	120,000 ($10k)	$24m	$12m	$10m
USCOM – home	0	100,000 ($10k)	$20m	$10m	$7m
Total	1m		$156m	$78m	$63m

Assumptions

• $10k rrp with 50:50 profit split

• 20% new ultrasound, monitoring and ventilator penetration, 10% retro instal

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• Instal base; Monitors – 1,500,000, Ultrasounds – 500,000, Ventilators – 500,000

• The above represents a hypothetical estimation not a projection

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Potential value of product pipeline

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Uscom sales potential and goals
$million
25
25
•
Partnership with instant take
up of technology
•
4 new markets
•
20% Penetration
•
No Upgrades
•
12
USCOM gross $84m pa
•
10
Cap val = 12xPE = $1,008m
•
100m shares @ $18
6
6
Total = $84m pa
Current New
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USCOM monitors
USCOM USCOM
USCOM 1A USCOM new ultrasound ventilators USCOM home
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Immediate growth – strategic partnerships License patent protected genuine Gold Standard CO platform technology

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Sales
Direct Distributors Partnerships
✗ ✗ ✓
Money Time Scale
GFC Reach
Commitment? Multiple Sectors
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Immediate growth – strategic partnerships License genuine Gold Standard CO platform technology

Potential Sector Partners

ApplicaEon	Uscom Unit	PotenEalpartners
Ultrasounds	HaemoCOM	GE, Philips, Sonosite, Medison, Hitachi, Toshiba
Monitors	CardioCOM	GE, Philips, Spacelabs, Mindray, Edan, Welch Allyn, Covidian
VenElators	PulmoCOM	GE, Philips, Siemens, Viasys, Draeger, Resmed,
Pacemakers	ElectroCOM	Medtronic, St Jude, Guidant, Micromedical
HomeCare	PulseCOM	GE, Philips, J&J, Welch Allyn
New/Niche	PressureCOM	GE, Philips, J&J, St Jude, Medtronic, Guidant

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Growth – partnerships and new products

• New clinical gold standard cardiac monitor

• Platform technology

• Organic growth from current markets and incremental growth from licensing

• New products: long term growth

• Miniaturised and continuous monitoring – PulseCom

• Hypertension and heart failure devices – PressureCom

• New therapy guidance software – CareCom

• Consolidate lead global position in non-invasive cardiac monitoring

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Results focused strategy to create value

We are milestone-driven and outcomes focused

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Sell or license
Execute major
multiple new
global
products
licensing,
based on
partnerships
Rapidly grow
current
and distribution
sales revenues
proven
deals for the
by using new
platform
USCOM 1A
clinical
technology
evidence and
Complete and new
data to focus on
current concepts.
most promising
capital raising
markets like
FY2012
China.
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2012 capital raising

• Uscom is currently preparing for a capital raising in 2012

• Capital raised will be prudently used to:

• Grow sales team and revenues with focus on key markets

• Expedite business development - global partnering and licensing negotiations underway

• Develop new medical markets (hypertension and HF)

• Develop new products and software pipeline for the clinic

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Summary

• Commercially focused Sydney-based ASX-listed medical device company focused on non-invasive cardiac monitoring technology

• Revenue generating global business ($1million in 2011 and growing)

• World-leading, ‘practice changing’ platform technology poised to transform current medical practice and dominate monitoring markets

• Very strong competitive position backed by solid IP protection

• Potential to create the next world-class Australian medical device business

• Foundations for significant long term growth are all positioned

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The future?

“USCOM may just be the next big Australian medical device success story; and the blocks are falling into place.”

The measure of life www.uscom.com.au

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USCOM

Thank you

Rob Phillips

Chief Executive Officer

T: +61 418681154 E: rob@uscom.com.au

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Appendicies

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Product pipeline adds potential value

Current product line

• Patent protected USCOM technology – 2021+

• USCOM 1A – Advanced haemodynamics

• OXYCOM – Real time Oxygen Delivery (DO2)

• USCOMt – Haemodynamics transducer

• CARECOM – Physiology mapping and treatment guide

• EDUCOM – Online education package

• Validation – ‘Gold standard’ cardiac output monitor

New products

• USCOM 2 – small general haemodynamics

• PULSECOM – USCOM continuous CV monitor

• USCOMmod v1 and v2 – modular USCOM for licensing

• USCOMhaemo v1 and v2 – USCOM software for licensing

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Who says there is a need for Uscom?

“Non-invasive hemodynamic monitoring is the number one unmet need...”

Survey of 700 physicians and nurses worldwide, by GE Medical Systems .

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The emerging gold standard of clinical care

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Home
of
Jeremy
Swan
and
William
Ganz
and
the
PAC!

Question: Is there still a place for the Pulmonary Artery Catheter in the ICU Practice? ANSWER: “USCOM may safely replace the PAC in many clinical applications”

Source: Jain S, Allins A, Salim A, Vafa A, Wilson MT, Margulies DR. Non-invasive Doppler Ultrasonography for assessing cardiac function: Can it replace the Swan-Ganz catheter? Am J Surgery 2008 Dec

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Potential value of current markets

Department	Total beds* (USA)	Worldwide market estimate ($15k, 1/10beds)	Cap value at 25% penetration, 50% profit and x20PE
Neonatal ICU	17,000	$51m	$128m
Paediatric ICU	4,000	$12m	$30m
Cardiac Surgery	10,000	$30m	$75m
Adult ICU	50,000	$150m	$375m
Total	80,000	$243m	$607m

Assumptions

• Global market = US market x 2

• $15k, 1/10 beds sale, 25% market, 50% profit, 20P:E

• ICU markets only, not ED, Anaesth, Hypertension, HF, EP etc not considered

• Hypothetical estimation not a projection

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Extensive intellectual property estate USCOM has significant value in its core patent

• Ultrasound is the emerging diagnostic modality – The USCOM patent is all Doppler Ultrasound cardiac output monitoring.

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Extensive intellectual property estate USCOM has significant value in its extensive IP estate

• 23 granted patents

• 13 different applications

• 2 registered trade marks

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Testimonials

“This machine is saving lives, there are no two ways about it.” Professor Brendan Smith, Anesthetist, Intensivist and Emergency Physician, N.S.W. Dept of Health, Australia

“The USCOM device is a simple method of accurately and noninvasively measuring central circulation, a goal of cardiology for many years. …… the device has the potential to change the way we approach management of many cardiovascular diseases including sepsis, heart failure and hypertension.” Professor Malcolm West, Cardiologist, Mayne Professor of Medicine at The University of Queensland School of Medicine, Brisbane, Australia.

“I have used USCOM for over 5 years now on our very sick children, and use it to guide management. We are now beginning multi-centre, global research which will define the way USCOM is used in Paediatric Departments across the world.”

Dr Joe Brierley, Consultant Intensivist, Great Ormond Street Hospital for Sick Children, London, UK.

“To parents and doctors this machine, USCOM, is priceless. This machine is thought to have saved baby Abbie’s life.

BBC Documentary “New machine helps save babies life”, 2010, Nottingham Children’s Hospital

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