USCOM LIMITED — Investor Presentation 2019

Oct 9, 2019

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GROWING GLOBAL

Prof. Rob Phillips PhD(Med), MPhil(Med), FASE, DMU(Cardiol) Chairman, CEO, Chief Scientist, Uscom Limited, Sydney, Australia

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INTRODUCTION

“Uscom continues to build an international growth asset, and finished FY 2019 with record revenue, increased sales for all product suites, and expanded operations across four continents. Our improving fundamentals and investment in our global strategic expansion is planned to accelerate growth into 2020 and beyond as our new products achieve worldwide regulatory approval.”

USCOM

• ASX Listed Cardiovascular and Pulmonary Medical device Company

• Established growth trends – 6 year sales CAGR 29% pa and 358% in total

• International expansion across 4 continents

• Rapidly expanding Chinese operations

• Approaching profitability with 7 imminent approvals for new products in major markets

• New products and new IP

• Management focused on optimal growth in difficult global conditions

• Invested management

THE USCOM MISSION

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Who We Are
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Our Vision
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Uscom are the experts in circulation
Uscom are the experts in circulation delivering innovative, practice changing To improve clinical care in
disease.
non-invasive cardiovascular and pulmonary
delivering innovative, practice cardiovascular and pulmonary
monitoring devices to market.
changing non-invasive cardiovascular medicine and address the
and pulmonary monitoring devices to challenges of global disease.
market.
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Our Drive
A commercial ambition to become a leader in A commercial ambition to become a
the global healthcare business, and is poised leader in the global healthcare
business, and establish an enduring for continued growth in 2020.
growth culture.
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Ambitious and growth driven

THE USCOM MARKETS

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600M 17.7M 1.13B
people suffer from asthma and people die every year due to people are affected by
COPD , and are common diseases cardiovascular disease. By 2030, hypertension. Complications of
among children. More than 3 million almost 23.6 million people will die raised blood pressure include stroke,
people die each year from COPD , from CVDs, being 31% of all deaths. heart failure, peripheral vascular
an estimated 6% of all deaths CVDs are projected to remain the disease, renal impairment and visual
worldwide. single leading causes of death. impairment.
Asthma, COPD Heart Failure, Sepsis Hypertension
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USCOM assists diagnosis and management of diseases responsible for ~75% of all global deaths

THE USCOM PRODUCTS

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Uscom SpiroSonic USCOM 1A Uscom BP+
Uscom digital ultrasonic spirometers A non-invasive advanced Provides central and brachial blood
are high fidelity, digital, pulmonary hemodynamic monitor that pressure and pulse pressure
function testing devices based on measures cardiovascular function waveforms for analysis, information
multi-path ultrasound technology. using Doppler ultrasound to detect only previously available using
ASTHMA, COPD, OLD abnormalities and guide treatment. invasive cardiac catheterization.
HEART FAILURE, SEPSIS, FLUID HYPERTENSION
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Multiple products into multiple jurisdictions

USCOM DEVICES

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BP+ Reporter

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USCOM 1A
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BP+
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Advanced Haemodynamics APP SpiroSonic SMART SpirO3

GROWING GLOBAL

• London • Beijing • Budapest • LA Operations Sydney Beijing • Singapore Budapest Offices Singapore • Sydney Auckland • Auckland London LA Defensive for applications, currencies and economics

USCOM TEAM

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Rob Phillips Nick Schicht Teresa Guo Lucy Lu Lebron Wei Denise Pater Rik Denicke George Ferenczi Kyana Chan Scarlett Zhang Curt Grosse Daniel Kenig Richard Scott Zsofia Kertesz Hagay Gilad George Tang Nancy Wang Andrea Marosan 38 employees - 4 continents Szabolcs Hogye Szabo Gergo Catherine Gao Leo Luo Helen Zhang

USCOM BUSINESS

Increasing global complexity - Multiple products across 4 continents

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Science Manufacturing Sales
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• Concept • Regulatory (Man) • Regulatory (sales)

• • IP • Assembly • Regional operations • • • Prototype Quality Management/registrations

• • • • Validation Supply chain Pricing

• • • • Clinical trials Packaging Marketing

• • • • Publications Transport/logistics Staff • Distributors/sales

• • Clinical/technical support

Uscom is a medical device development and marketing platform for multiple new products

2019: RESULTS $3.64m Income 27% $2.84m Sales 31% 6 Year Growth 6 yrs Sales CAGR 29% pa Total income up 260% Sales up 358% $1.21m 28% Cash Consumption $0m Debt Good results despite global headwinds

2019: RESULTS

Total expenses - $4.34m Total Income - $3.64m (growing at 27% pa) Deficit - $0.7m pa

Income, Expenses, and Loss

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5
4.6
4.5 4.2
4
3.5
3.5 2.9 Income up 27%
3
2017
2.5
2018
4.34 2.0
2 1.8 2019 Expenses up 3%
3.64
1.5
1 Loss reduced 29%
1.39
0.5
0
Income Expenses Loss after tax
$M AUD
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Improving Fundamentals

2019: REGIONAL AND PRODUCT SALES

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Regional Sales % 2019
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Product Sales % 2019
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5% 5%
20%
33%
62%
75%
China/Asia Europe USA etc. USCOM 1A SpiroSonic BP+
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China is the major Uscom market, and USCOM 1A the lead product. This will change as regulatory approvals are received for BP+ and SpiroSonic devices, particularly in China

Regional and product diversification

2019: MILESTONES

• ✓ Uscom record sales and growth for all Uscom products ✓ Uscom China expanded to support USCOM 1A, BP+ and SpiroSonic devices

Wholly owned Beijing based subsidiary

Regulatory applications for eight new China products approaching final stages Approval of sales license for all NMPA Type II medical devices (Uscom and non-Uscom) Importation process established for all Uscom and non-Uscom devices Expanded team - admin, finance, marketing, sales, technical and clinical

• ✓ Uscom Kft (Budapest)

Record income

Operation renamed, relocated, products rebranded New Uscom European hub established - sales, marketing, technical and clinical support SpiroSonic AIR released

• ✓ Singapore office opened

• ✓ US BP+ and SpiroSonic trials with major technology and innovation companies

• ✓ US sales innovation - dealer-led distribution

NEW PRODUCT

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BT4 digital ultrasonic spirometer

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Home care solution AIR spirometer and My AIR software Connected to cloud or SpiroReporter

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17.34%
17.128%
60.962%
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Revolutionising diagnosis and management of asthma and COPD

USCOM CHINA

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Uscom China business registration

“China remains the fastest growing medical

device market worldwide”

1. Business and finance registration

2. Import licences

3. NMPA progress to final stages

4. Expanded dealer networks – increased numbers and margins

5. Type II medical devices sales certification*

6. IP registration

7. Progressing local manufacture strategies,

clinical and technical support, etc.

• Sell all type II NMPA Approved Medical devices in China

• ultrasound, MRI and X-Ray, respiratory, anaesthetic and

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Type II Med Device Sales Registration

emergency medical devices

*CFDA is now National Medical Products Administration (NMPA)

RECORD Q4 MANUFACTURE

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Year on Year Growth %
160
Uscom BP+ USCOM 1A
143
140
120
100
80 74
60
40
17
20
0
USCOM 1A BP+ SpiroSonic
Year on year increase USCOM 17%, BP+ 143%, SpiroSonic 74%
%
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2020: STRATEGY

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✓ Rapid operational growth –

• ✓ Deliver multiple products into multiple global markets

• ✓ Consolidate China market - grow marketing and sales collateral, clinical and technical

support, expanded distribution partners - new distribution models/pricing

• ✓ Develop European and US markets – new distribution models/pricing

✓ Efficient global operations –

• ✓ Co-ordinate manufacturing, distribution and sale of our world leading technologies

• ✓ Transition from a micro-manufacturer, to a cost efficient global manufacturer of scale

• ✓ Focus on cost and profit – labour and operational rationalisation

✓ Corporate –

• ✓ Rationalise register

• ✓ Creative strategic opportunities to optimised shareholder value

CAPITAL INITIATIVES

Tightly Held

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100
90.847
90
80
70
60
50
40
30
20
Small parcels 8.227
10
0.048 0.386 0.493
0
1-1,000 1,001-5,000 5,001-10,000 10,001-100,000 >100,000
32% of investors own 67% of investors own
~0.3% of shares (~600k) 99.6% of shares (~138m)
%
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$16M 100% $0.15
CAP VALUE FREE FLOAT VWAP 2019
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Structure

~793 shareholders 142M shares on issue 3 shareholders hold ~40% 20 shareholders hold >67% Initiative Small parcel consolidation <$500) 32% of investors (252) hold less than $500 Simplify register and decrease costs 21[st] October 2019

Small parcel consolidation – rationalising the register

CAPITAL INITIATIVES

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• Private placement for growth capital – 4 investors take 7% of UCM ($1.05m)

• CEO/Chairman - Prof Rob Phillips (~20% of UCM)

• Director of China operations – Ms Teresa Guo

• Mr Meng – Beijing based international bio-investor (~20% of UCM)

• Lead Australian Investor (~5%)

• Use of funds – manufacture new devices for sale in 2020 with approvals

• Best predictor of corporate performance is management investment

Growth capital from management and lead investors for 2020 manufacturing

NOBEL PRIZE

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Nobel Prize for Medicine

Greg Semenza, Peter Ratcliffe and William Kaelin Jr

• Professors Greg Semenza, John Ratcliffe and William Kaelin Jr, received the Nobel Prize for Physiology and Medicine

• How cells sense and adapt to oxygen availability. Every cell is an oxygen sensor feeding back to the brain to regulate the supply of oxygen. This effects the body in health and disease, particularly in cancer.

• The Uscom OxyCOM device was developed specifically for non-invasive measurement of the delivery of oxygen and is leading in this field.

• A recent paper from Kings College in London and the University of Pittsburgh, Pittsburgh, found that Uscom OxyCOM measures of oxygenation predicted paediatric mortality in fluid resistant septic shock. Current studies are determining how to use these measures to direct management to save the lives of sick children.

• .“Goonasekera CD, Carcillo JA, Deep A. Oxygen delivery and oxygen consumption in pediatric fluid refractory septic shock during the first 42 hours of therapy and their relationship to 28day outcome. Front Pediatr 2018. doi: 10.3389/fped.2018.00314.”

(https://www.nobelprize.org/prizes/medicine/2019/press-release/).

2020: RISKS

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• ✓ Unpredictable global markets – Trade wars, US recession and health contraction, Brexit, China slow down, Mid-East instability, North Korea etc. potentially create revenue and capital volatility

• ✓ Scale up stress – Rapid global growth may challenge cash flow management and capital adequacy

• ✓ Operational changes – Change in sales, operations and manufacturing regulations impact us as we adjust our distribution channels

• ✓ Distribution – Uscom has revised our global sales strategy as we move to take a more direct role in all our territories using a direct dealer access which may delay revenue during adoption

• ✓ Regulatory – Regulatory certification is becoming increasingly complex, expensive and time consuming in all jurisdictions

• ✓ Key personnel – Uscom is dependent on a small and vital team working to ensure and manage ongoing rapid growth

• ✓ Other risks – Competitor risks and patent breaches are also potential threats

SUMMARY

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• Established 6 year sales growth 29% pa CAGR (358%)

• Investment - Two corporate acquisitions and global operations

• Multiple products – USCOM 1A, BP+ and SpiroSonic (8 devices)

• Multiple jurisdictions – China, Europe, US and Australia

• Multiple currencies – USD, Eu, AUD, RMB

• Record Q4, slower Q1, but rapidly increasing pipeline

• Approaching profitability with growth strategy in difficult global conditions

CONCLUSION

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“Uscom has an established growth history, and our rapidly transforming fundamentals provide us with the opportunity to leverage strategic opportunities to prepare Uscom for global growth. Management is committed to developing strategies to optimise capital and shareholder value, and this involves an open minded review of all aspects of partnership, manufacturing, distribution and capital and corporate structure. These strategies will create exciting opportunities for Uscom and its investors.”

Rob Phillips CEO

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GROWING GLOBAL

Prof. Rob Phillips PhD(Med), MPhil(Med), FASE, DMU(Cardiol) Chairman, CEO, Chief Scientist, Uscom Limited, Sydney, Australia

USCOM GLOBAL

Tim Cook appointed in August 2011 Net Income 2012-2018 6YR CAGR –6% pa $41.73B to $59.53B Share Price 2012-2018 6YR CAGR –29% pa $57.9 to $167.4 Sales - 6yr CAGR Shareprice – 6yr CAGR Apple (AAPL) 6% pa 19% pa Uscom (UCM) 29% pa 3.8% pa

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Apple Share Price
Nasdaq – AAPL
180 167.4 166.4
160
140
121.4
117.2
120
97.3
100
80 71.5
65.1
57.9
60
40
20
0
2012 2013 2014 2015 2016 2017 2018 2019
$ USD
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