USCOM LIMITED — Investor Presentation 2012

May 29, 2012

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Commercialising the next generation non-invasive cardiac monitoring technology

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

May 2012

Our goal

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

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The measure of life www.uscom.com.au

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Agenda today

• Who we are

• What we do and why our product is needed

• Current market and the future potential

• Our strategy to create value

• Next steps

• Background on the market and new product pipeline

The measure of life www.uscom.com.au

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Uscom (ASX: UCM) corporate overview

• We are transforming and improving the practice of cardiac monitoring

• Main product is U ltra- S ound C ardiac O utput M onitor (USCOM)

• US FDA cleared, CE marking for Europe and rest of world

• Revenues of approximately $1.0 million and growing

• Excellent clinical evidence backed by growing awareness / demand

• A large unmet clinical need is driving growing demand

• Very strong competitive position and product pipeline

• Significant and sustained long-term growth ahead

The measure of life www.uscom.com.au

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Selected financial snapshot 1H2012

• ASX code: UCM

• • Listed: 2003

• • Market cap: $5 million

• • Stock on issue: 52 million

• • 52 week high/low $0.24-$0.07

• 1H2012 product sales: $0.5 million

• • Cash @ 31 Dec ‘11: $1.0 million

• • Top 20 holders: 80%

Major holders:

• Rob Phillips 32.6%

• • Gary Davey 11.9%

• • Colin Bell 4.1%

• JP Morgan Nom 3.8%

• • OSI Systems 3.0%

Summary of 5-year annual revenues

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$’000
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1,400
1,000
600
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2007 2008 2009 2010 2011
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How it works...

“ The most accurate clinical method of measuring cardiac output”

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Non-invasive Compact Intuitive Real time Accurate Simple

Cardiac output Cardiac index Stroke volume Stroke volume index Heart rate Peak velocity Measures left and right heart Software works with all touch screen units

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Non invasive, real time, beat to beat haemodynamics

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What it does now...

• Monitors the heart noninvasively using patented ultra-sound

• Safe, painless, non-invasive method to measure how well the heart is functioning – a key measure for most hospital patients

• Allows quick and very accurate cardiac assessment

• Uses state-of–the-art patented technology, software and electronics

• Meets the major need among clinicians for fast, simple, accurate noninvasive hemodynamic monitoring.

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What it can also do…

Current markets:

• Paediatrics

• Critical care

• Emergency

• Anesthesia

Future new market applications:

• Heart failure and hypertension

• Heart transplantation

• Liver transplantation

• Drug research

• Emergency Response, Military

• Electrophysiology (pacemaker optimisation)

• Haemodialysis

• Burns units

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• Pregnancy and neonatal

• Veterinary and ethical animal research

• Sports Medicine

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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

The measure of life www.uscom.com.au

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A business with multiple opportunities…

In hospital market (current)

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

Un-partnered new markets

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

Technology Licensing

• 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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…and 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	✗	✓	✓	✗	✓	✗
Nexfin	Bmeye	APP	✗	✓	✓	✓	✓	✗
CardioQ	Deltex	Doppler	✓	✗	✗	✗	✓	✓
LiDCO	LiDCO	LiCl dilution +APP	✓	✗	✗	✗	✗	✓
LiDCOrapid	LiDCO	APP	✗	✗	✓	✗	✗	✓
PiCCO (mod Tx + PP)	Pulsion	APP	✓	✗	✗	✗	✗	✓
FloTrac	Edwards	APP	✗	✗	✓	✗	✗	✓
PAC (Tx)	Many	Thermodilution	✗	✗	✗	✗	✗	✓

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Commercial achievements to date

Product validated

• Independently validated as safe and effective

• Manufacturing and distribute

• Growing KOL interest and support worldwide

• Established global brand protected by extensive long-term IP estate

Regulatory approvals worldwide

• Approved for by the FDA, TGA and CE marking

• Growing recognition in standards of clinical care worldwide

Sales and Marketing (growing)

• No manufacturing or supply issues

• Clinical evidence will drive adoption and sales growth

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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 %
13
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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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Short term growth – expand current markets

Europe

• Recently added to UK’s NHS Technology Adaptation Centre guidelines

• Program to ensure USCOM included in all EU treatment guidelines

USA

• Working with established distributor to engage new customers/KOLs

• Lost momentum post-GFC but now rebuilding

Asia Pacific

• Recently appointed seven new distribution partners in China

• Currently represented in 14 out of 23 provinces in China and growing

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Long term growth – new products

• Invested total of $20 million to date to develop the technology

• New products are catalyst for long term growth and shareholder value

• Several new technologies moving closer to the clinic

• Each has own significant global market potential

• Focus is based on KOL feedback and market demand:

• Miniaturised and continuous monitoring – PulseCom

• Hypertension and heart failure devices – PressureCom

• New therapy guidance software – CareCom

• Lead global position in non-invasive cardiac monitoring products

The measure of life www.uscom.com.au

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Long term growth – clinical evidence

• Sales and revenues will grow with awareness and acceptance

• 253 papers and peer reviewed articles across multiple disciplines

• Growing body of positive independent clinical evidence

• Evidence and outcomes data coordinated with sales and marketing to maximise clinical awareness among KOLs and clinical community

• Evidence also aids new product development and competitive marketing efforts

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Results focused strategy to create value

• Practice changing research has established USCOM as the new clinical gold standard cardiac monitor – this can be converted to sales

• EU and US Government practice recommendations – UK NHS intraoperative fluid optimisation recommendations– this can be converted to sales

• New distribution strategy

• Rejuvenate current global distribution

• Establish strategic partnerships – access to established mass markets through global distribution channels

• Develop new markets and clinical applications

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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
partnership or
Rapidly grow current
distribution
sales revenues
proven
deals for the
by using new
platform
USCOM 1A
clinical
technology.
evidence and
Complete
data to focus on
current
most promising
capital
markets like
raising
China.
FY2012
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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

• Expand sales into new medical markets (hypertension and CHF)

• Bring new products and software pipeline into 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’ medical technology poised to transform current inefficient and inferior medical practices

• Potential to create another world-class Australian medical device business based on constant investment in innovation

• Very strong competitive position backed by solid IP protection

• Foundations for significant long term growth are all in place

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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

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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The emerging gold standard of clinical care

• 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 3.36.6l/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 non- invasive method for AVI optimization in CRT.” PACE 2007 30;1: 50–55

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Cardiac monitoring market landscape

Clinical assessment – BP, HR, colour, reperfusion time etc. Inaccurate

Non-invasive

• USCOM – Transcutaneous CW Doppler - safe, accurate, effective

• ICG – Bio-impedance (inaccurate) – questionable accuracy and unproven

• Tonometry – Transcutaneous APP – measures BP, difficult to use

Less invasive

• Calibrated APP

• PiCCO – transpulmonary thermodilution- invasive catheters (infection+ risk)

• LiDCO - LiCl dilution - invasive catheters (infection+ risk)

• Uncalibrated APP

• LiDCOr – monitors BP, invasive catheters (infection+ risk)

• FloTrac – monitors BP, Invasive catheters (infection+ risk)

• NiCCO – Expired CO2 exchange - requires intubation

• TODoppler – DTA flow – effective, invasive, requires sedation

Invasive

• Swan – Thermodilution (bolus, CCO) - invasive catheters (infection+ risk)

• Fick – Oxygen concentration - invasive catheters (infection+ risk)

• Art or central line – arterial or venous pressures - invasive catheters (infection+ risk)

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Cardiac monitoring market landscape

Capitalised value of USCOM and current competitors, $ million

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•
Last capital
raising $0.30
•
Current price
$0.09
•
Equivalent price
to competitors
$1.20
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Potential value of product pipeline

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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Potential value of product pipeline

License Gold Standard CO monitoring

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Crit Care Monitoring module Ultrasound CO module
$500m = 20% of 250k x$10kpa $500m = 20% of 250k x $10kpa
Ultrasound CO module
Home care
Hypertension, HF and sleep monitoring
Anesthesia CO module
?
$240 = 20% of 120k x
Mobile Monitoring module
$10kpa
$100m = 20% of 50k x $10kpa
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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

• Hypothetical estimation not a projection

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Potential value of product pipeline

Uscom sales potential and goals $million

• Partnership with instant take up of technology

• 4 new markets

• 20% Penetration

• No Upgrades

• USCOM gross $84m pa

• Cap val = 12xPE =

• $1,008m

• 100m shares @ $18

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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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A growing body of independent 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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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.

“We have used USCOM for over 5 years now on our very sick children, and we use it to guide our 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.

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