USCOM LIMITED — Investor Presentation 2014

Sep 8, 2014

Premium non-invasive cardiovascular monitoring for global medical markets

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September Update Expanding revenues – Building towards profitability

Rob Phillips PhD(med), MPhil(med), FASE, DMU(cardiol) Executive Chairman & Chief Executive Officer September 2014

Uscom - The measure of life

Important Notice

This Investor Presentation contains confidential information regarding Uscom and its affiliates. The information contained in this Investor Presentation is believed to be reliable. No assurance is given as to the accuracy or completeness of such information This Investor Presentation does not purport to contain all the information that may be required or desired to evaluate the Company or an investment and any recipient hereof should conduct its own independent analysis of the Company and the data contained or referred to herein and an investment. In determining whether or not to proceed with an investment, the recipient must rely on their own examination of the Company.

No person has been authorized to give any information or make any representation concerning the Company not contained in this Investor Presentation and, if given or made, such information or representation must not be relied upon as having been authorized by the Company. Statements in this Investor Presentation are made as of 10 September 2014 . The delivery of this Investor Presentation at any time thereafter shall not under any circumstances create an implication that the information contained herein is correct as of any time subsequent to such date or that there has been no change in the business, condition (financial or otherwise), assets, operations, results of operations or prospects of the Company since such date. The Company undertakes no obligation to update any of the information contained in this Investor Presentation, including any projections, estimates or forward looking statements.

Any statement, estimate or projection as to events that may occur in the future (including, but not limited to, projections of revenue, expenses and net income) were not prepared with a view toward public disclosure or complying with any guidelines of the Institute of Certified Public Accountants, any federal or state securities commission or any other guidelines regarding projected financial information. Such statements, projections and estimates are inherently imprecise and unreliable and the assumptions upon which they are based may prove to be incorrect. Achieving such statements, estimates or projections will depend substantially upon, among other things, the Company achieving its overall business objectives and other factors (including general, economic, financial and regulatory factors) over which the Company may have little or no control. There is no guarantee that any of these statements, estimates or projections will be attained. Actual results may vary significantly from the statements, estimates and projections, and such variations may be material and adverse.

Recipients should not construe the contents of this Investor Presentation as legal, tax or investment advice. Recipients should consult their counsel, accountant, tax, business and other advisors as to legal, accounting, tax, business and other matters concerning the Company or any investment therein. This Investor Presentation does not purport to be all-inclusive or to contain all the information that a recipient may require. Recipients are advised of the need to conduct their own thorough investigation of the Company.

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Message

“Uscom is focused on growth

Two real, practice changing cardiovascular devices selling into massive global medical markets

Immediate mission is grow distribution, sales and revenue Strategic view of the future”

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Corporate Snap Shot

Corporate

• ASX listed (ticker UCM)

• Headquartered in Sydney

• Market cap ~$22m (29 Aug 14)

Board

• Rob Phillips (Chairman & Founder)

• Sheena Jack (HCF, Moneytime Health)

• Christian Bernecker (Nightingale Partners, Stream)

Financials

• FY14 Revenue $1.1m

• Gross margins ~ 78%

• Operating Cashflow -$66k (June Qtr)

• 30 June 14

• Cash $1.6m ( )

Key Executives

• Rob Phillips (CEO)

• Nick Schicht (General Manager)

• Steven Haken (Global Sales Manager)

• Key hires underway

Capital Structure

• Shares on Issue - 81.5m

• Unlisted Options - 0.7m

• Robert Phillips ~21%

• Stephen Woodford ~13%

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Investment Overview

• Premium cardiovascular device company poised for global growth

• with revenue

• Two platform technologies and un-recognised value

• Demonstrable benefits over existing technology – saves lives

• Strong margin , low capex business model

• Distributors in key overseas markets – 3 contracts ~$12m sales

• Rapidly growing distribution, sales and revenues

• Cashflow breakeven last quarter

• Targeting profitability in FY2015

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Our Business

• Uscom manufactures and sells two, proprietary, FDA/CE approved premium cardiovascular monitoring products – USCOM 1A and Uscom BP+ measuring cardiac output and central blood pressure

• USCOM – Cardiac Output

  • Customers are hospitals, emergency, ICU, anesthesia, paediatrics

  • Global sales - 650 USCOM units installed worldwide ($11m total revenue)

  • Optimising and growing global distribution channels and revenue

• BP+ - Blood Pressure (suprasystolic oscillometry)

  • Clinical and home use – emerging gold standard

  • BP+ volume manufacture and distribution

  • Building international distribution and revenues

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US$3b Global Market opportunity

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USCOM 1A Market

“the global physiology monitoring market was valued at USD $1.3b in 2012 with an estimated CAGR of 7.6% from 2013 to 2019.”

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BP+ Market

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“the global blood pressure monitoring testing market was valued at USD $1.7b in 2012 and is estimated to reach a market worth USD 3.7b in 2019, at a CAGR of 11.5% from 2013 to 2019.”

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Ultra-Sound Cardiac Monitor (USCOM 1A)

Non invasive, accurate, compact technology platform solution

Accurate cardiac output Cardiac stroke volume Systemic vascular resistance Left + right heart measurement

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Works with all other hospital equipment Intuitive touch screen

Real time data Platform technology with multiple uses

Non invasive, real time, beat-to-beat haemodynamics

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USCOM 1A – clinically accepted technology Featured in 350+ peer reviewed publications and presentations

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Sepsis, Heart failure, Hypertension, Fluid management, Emergency, Pediatrics, Cardiac transplantation, Electrophysiology, Emergency transport, Anesthesia, Liver transplantation, ICU, Pre-eclampsia, Pulmonary hypertension, Nurse outreach, Organ procurement, Haemodialysis, Neonates, infants, Children etc……..

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USCOM1A Competitive Advantages

Method	Manufacturer	Technology	Rel+Re p	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 dilutio +APP	✓	✗	✗	✗	✗	✗
LiDCOrapid	LiDCO	APP	✗	✗	✓	✗	✗	✗
PiCCO (mod Tx + PP)	Pulsion	APP	✓	✗	✗	✗	✗	✗
FloTrac	Edwards	APP	✗	✗	✗	✗	✗	✗
PAC (Tx)	Many	Thermodilution	✗	✗	✗	✗	✗	✗

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Central BP+

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New Wave Supra-systolic Oscillometry Central Blood Pressure and Pulse Pressure Wave Analysis

FDA, CE Mark, TGA approvals

Home or clinical use

Supra-systolic Central BP+ Reliable and accurate Central and Brachial BP Replaces sub-systolic methods (cuff)

PPW Analysis Results in 30 seconds No training required Platform technology with multiple uses

Stand alone, non invasive, accurate, compact system

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BP+ - Superior BP measurement

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+ Other BP devices
+
+
Heart
Vessels
+
Blood Pressure Plus… demonstrating what others cant!
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Competitive Advantages cBP

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Uscom BP+	TensioMed	BPLab	IEM	Centron	AtCor
Australia	Hungary	Russia	Germany	UK	Australia
USD 3,950	USD 6,000	USD 7,000	USD 7,000	USD 6,300	USD 14,000
1 min	2 min	2 min	2 min	1 min	1 min
Stand-alone	ABP, needs computer	ABP, needs computer	ABP, needs computer	Stand-alone	Needs computer
CE, FDA, TGA	CE	CE	CE, FDA	CE	CE, FDA
Aortic + brachial waveform	Central systolic BP	Rough waveform	Rough waveform	Rough waveform	Rough waveform
Physical model	Statistical regression	Transfer function	Transfer function	Transfer function	Transfer function
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Why ?

Independent published research by University of Cambridge – Benefits of measuring central blood pressure

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Broad patent portfolio

Core technology protected by granted patents – patents run to 2024 and beyond

USCOM 1A

22 granted patents 5 pending applications

BP+

34 granted patents

4 registered trade marks

2 registered trade marks

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Distribution Focus

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New Global Sales Manager Pioneer Medical – China BP+ Deltex Medical – USCOM 1A Unetixs – Strategic cardiovascular USA USCOM 1A

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30 distributors – increased by 13 New support and training New performance monitoring On going strategic discussions – OEM, Licensing, distribution

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BP+ – China Distribution

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New 5 year, A$7m distribution deal 510 Regional Distributors 20,000+ Hospitals Every Region in China

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Hemodynamics. Fluid. Innovation.

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Experienced management team

• Rob Phillips Founder and inventor of the USCOM1A Executive Chairman &

• Recognised leader and innovator in the field of non-invasive cardiovascular monitoring with multiple peer review papers

CEO

• Detailed knowledge of the platform and its applications

• Nick Schicht Former manager with Ericsson with broad background in General Manager electronics and product development

• Responsible for the operational management of the company including finance, marketing, administration and product development

• Steve Haken Critical Care Nursing, MBA Imperial College, London

Global Sales Manager • Research and clinical roles in ICU, CCU, ED and OT worldwide (UK based)

• 16yrs device sales for GE Medical, Medtronic, Philips, Novartis and others

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Recent Achievements / Targeted Milestones

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

• • Growth – Successful integration of Pulsecor IP, systems and assets • Milestones - Manufacture and sale of the first Uscom BP+, new USA BP+ patent, and CE approval

• •

• 2014 Distribution – Increased distributors from 12 to 27 with more in negotiation

• Achievements • Science – 36 new publications for USCOM 1A and BP+ • New sales and distribution partners appointed – 2014 / 2015 • Volume manufacturing - 2015 • New products/partnerships – 2015 • Expanding management team and Board – in process

• •

• Targeted Profitability – FY2015

• Milestones

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Broker Research – 3 April 2014

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APPENDICES

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Independent published research – identifies BP+ most clinically applicable cBP monitor

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McEniery CM, Cockcroft JR, Roman MJ, Franklin SS, Wilkinson AB. Central blood pressure: current evidence and clinical importance. Euro Heart J 2014;doi10.1093/eurojeartj/eht565

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Uscom - The measure of life

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

“USCOM has changed the way I look at the cardiovascular status of my patients. It’s part of the initial shock evaluation and monitored regularly thereafter…. USCOM has now been established as the standard of care.”

Dr Akash Deep, Director of Paediatric ICU, King's College Hospital, London

“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 sepsis, heart failure and hypertension.” Professor Malcolm West, Cardiologist, Mayne Professor of Medicine at The University of Queensland School of Medicine, Brisbane, Australia and Uscom Medical Advisory Board Member.

“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.

“The USCOM device is really good; I use it in all my aneasthetics. I think there should be one on every ICU bed and on every anaesthetic patient.”

Dr Steve Woodford, Consultant Anaesthetist, circulatory researcher at Australian School of Advanced Medicine, and Uscom Investor,

“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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New Science - USCOM Saving Lives National ICU Study – Sepsis and septic shock mortality 6yr Australian Practice Audit ANZICS CORE Adult database

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30
Bathurst USCOM
25
Australia
20 Australian Rural
15
BUSH protocol introduced
10
5
0
2006 2007 2008 2009 2010 2011 2012
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Smith BE, Phillips RA, Madigan V, West MJ. Decreased Mortality, Morbidity and Emergency Transport in Septic Shock; A New Protocol Based on Advanced Noinvasive Haemodynamics (USCOM) and Early Antibiotics. Crit Care Med 2012; 40(12):1023. doi: 10.1097/01.ccm.0000424114.76434.7a

Uscom - The measure of life

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New Science - USCOM Reducing Costs National ICU Study – 6yr Australian Practice Audit ANZICS CORE Adult database

Mean Cost per Admission 2007-2012

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$60,000
$48,000
$50,000
$41,645
$40,000
$30,000
$26,273
$20,000
$10,000
$0
Australian Australian Rural BUSH
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Mean cost per hospitalisation for sepsis and septic shock patients between 2007-2012 assuming $1233 per ward day and $4427 per ICU day.

Smith BE, Phillips RA, Madigan V, West MJ. Decreased Mortality, Morbidity and Emergency Transport in Septic Shock; A New Protocol Based on Advanced Noinvasive Haemodynamics (USCOM) and Early Antibiotics. Crit Care Med 2012; 40(12):1023. doi: 10.1097/01.ccm.0000424114.76434.7a

Uscom - The measure of life

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Risk factors

• Global medical markets unpredictable

• Product development /regulatory approvals slower and more costly than expected

• Distribution slow to achieve revenue goals

• Competitive threats

• Patent breaches

• Currently not profitable

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