CEO AGM Presentation August 2019 TRUSCREENS MISSION To provide - - PowerPoint PPT Presentation

CEO AGM Presentation

August 2019

To provide primary screening for cervical cancer in developing nations via the TruScreen device – the latest single-visit, real time screening technology solution.

TRUSCREEN’S MISSION

2 TruScreen August 2019 CEO Presentation

At the Start of the year we set

• ur key business priorities as

Increase sales

• f TruScreen

Enhance our distribution networks Expand manufacturing capability Export low technology manufacturing to key market Submit and gain adoption in selected international government screening programmes Continue to be assessed and endorsed by key opinion leaders and government policy setters

FY19 PRIORITIES, RESULTS & BUSINESS HIGHLIGHTS

TruScreen August 2019 CEO Presentation 3

FY19 PRIORITIES, RESULTS & BUSINESS HIGHLIGHTS

TruScreen August 2019 CEO Presentation 4

• Sales up 132% to NZ $1.9m
• Total Revenue up 43% to

NZ$3.11m

• New Distribution agreements in

Russia, Zimbabwe, Saudi, Israel, Sri Lanka

• China Pilot Studies
• Continued work with aid
• rganisations in East Africa
• WHO Recognition to increase

access to international programs and funding organisations

• Pilot in-house manufacturing

facility established

• Investigating overseas

assembly/manufacturing

• Successful Capital Raise Oct

2018

• New NED Con Hickey appointed

Aug 2018

• New Chairman Appointed Sept

2018

• New Chief Financial Officer

Appointed Nov 2018

• Migrated from NZAX to NZX

Main Board Dec 2018

FY19 Results and Highlights:

CONTINUE ON OUR STRATEGY

5

Drive Sales and Growth from Geographic Footprint Strategic Partnerships and Relationships Manufacturing Capabilities

• Underpinned

by Research and Development People and Capability Building our internationally approved device, experiencing sales momentum in key markets through a global distribution model 87% of deaths from cervical cancer occur in low and middle income nations There is limited lab infrastructure and diagnostic technicians TruScreen meets the market demand

TruScreen August 2019 CEO Presentation

THE OPPORTUNITY

AFRICA

226M

MEXICO

31M

LATIN AMERICA

120M

RUSSIA

44M

CHINA

401M

Screening age population - solution for cervical cancer screening needed

Ref: Based on U.S Central Intelligence Agency (CIA) World Factbook

MIDDLE EAST

70M

6 TruScreen August 2019 CEO Presentation

INDIA

302M

THE OPPORTUNITY

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Screening Population

(x1M)

Target Market Share

• No. of

Women

(x 1M)

Screen Annually

(x 1M)

NZD $1M China 401 8% 32.08 10.69 86.49 Mexico 31 6% 1.86 0.62 6.38 Russia 44 6% 2.64 0.88 10.35 Africa 226 2% 4.52 1.51 22.16 India 302 3% 9.06 3.02 31.09 Mid East 70 2% 1.40 0.47 5.49 Latam 120 1% 1.20 0.40 4.71 Total 1194 52.76 17.59 166.67 NZD : USD 0.68

TruScreen’s addressable market is NZD $166m

Fourth most common cancer worldwide 1BN+ women of screening age in low and middle income countries 87% of deaths

• ccur in low and

middle income nations

TruScreen August 2019 CEO Presentation

COMMERCIAL STRATEGY

• Lacking lab infrastructure
• High prevalence of HPV &

cervical cancer

• Governments investing in

women’s health

• Market need for portable

real time accurate screening technology Build Awareness

• Key Opinion Leaders

engagement

• Social Media
• Medical conferences​
• Clinical trials/studies

Strong Sales Momentum

• Total Sales FY19 > 190

Devices

• Annuity revenue with SUS
• rders > 150,000 SUS units

Global Distribution

• 31 countries
• Pilot public health initiatives

Research and Development

• 2nd generation device

TARGETING LOW/MIDDLE INCOME COUNTRIES MARKET ENTRY & DEVELOPMENT SUCCESS TO DATE

Expand Distribution ​

• Local distributor strategy
• Public health initiatives
• Partnerships with Non-

Government Organisations and Government agencies Technology transfer to key markets

8 TruScreen August 2019 CEO Presentation

SALES DATA - FY2019

9

COMMERCIALISED IN MULTIPLE MARKETS SALES FOCUS

Commercial stage cervical cancer screening technology

• Key Focus is on China (400m women of screening

age)

• Use AIIMS report to open Govt sales in India
• Continue to support current second tier markets –

Russia, South East Asia and Vietnam, Mexico and Middle East

• Continue to work with aid organisations in East Africa
• Receiving recognition from key NGO’s: UNITAID, the

World Health Organisation and Clinton Health Access Initiative

TruScreen August 2019 CEO Presentation

SALES DATA - FY2019

10

ACCELERATING SALES OF DISPOSABLE SUS ACCELERATING SALES GROWTH

TruScreen (Units) SUS Growth

TruScreen August 2019 CEO Presentation

World’s biggest cervical cancer market

(Screening age population: 400M)

52% of TruScreen sales

Initial distribution agreement signed 2014

KEY MARKET: CHINA

Screening Programs

• Various programs run by Central, State and Municipal governments, plus charities and major

state owned enterprises (e.g. Sinopec) Market Presence

• COGA (Chinese Obstetricians & Gynaecologists Association) – screen 20,000 women in

public hospitals. Commenced Nov 2018, 52 Hospitals installed, completion in 2020

• Western China target 190 hospitals
• Hospital target usage of SUS: 150/m, with some using 1,000/m

Pipeline

• KOL support from COGA
• CDC program: Target is adoption in 3,000 women and children’s hospitals
• COGA program: Target to Open up 200 public hospitals in 2019
• West China: Target 90 devices in 2019 and another 100 in 2020 for government screening

program - up to 2M women every two years

• Target Installation in 50 ‘Breast and Cervical Cancer Centres’ in rural areas in 2019

commencing with Xinjian province in the far west

• ‘Medical Checkup’ centres - target at least 50 in 2019, and then expand

FACTS

11 TruScreen August 2019 CEO Presentation

KEY MARKET: LATIN AMERICA

Screening Programs

• Split between Central Govt and State Health Secretariats, public Insurance agencies (ISSTE and

IMES), armed forces and state owned monopolies – e.g. Pemex

• New central government is conducting an overhaul of the National Health administration and

TruScreen will adjust its plans to suit Market Presence

• Installed in National Cancer Institute
• Installed in ‘Health Train’, ISSTE, Pemex and state-owned hospitals

Pipeline

• Central and State Government Health Secretariats
• National health insurer, ISSSTE - 500,000 pap tests p.a. (installed in 4 ISSTE hospitals)
• National oil monopoly, PEMEX - 60,000 pap tests p.a. (installed in 2 Pemex hospitals)
• Private lab and clinic chains

Mexico 31M women of screening age 8% of TruScreen sales

Initial distribution agreement signed 2015

FACTS

15 TruScreen August 2019 CEO Presentation

KEY MARKET: RUSSIA

Screening Programs

• No central government screening programs
• State and municipal governments conduct ad hoc programs

Market Presence

• Distribution agreement with IMSystems with initial orders in Feb 2019
• Advanced payment of USD $250k for multiple TruScreen Devices and Single Use Sensors

(SUS)

• IMSystems has extensive expertise in the distribution of medical equipment and devices in

Russia and partnerships with global brands and manufacturers, including GE Healthcare. Pipeline

• Evaluated by ROSZDRAVNADZOR (Russia FDA)
• Major target is State Government Health Systems, starting with St Petersburg
• Private clinics and hospitals

44M women of screening age

20% of TruScreen sales Original agreement in 2015 New agreement distribution agreement signed in Feb 2019

FACTS

13 TruScreen August 2019 CEO Presentation

KEY MARKET: INDIAN SUBCONTINENT

Screening Programs

• Split between Central Govt and State Health agencies and govt institutions – Armed Forces,

State Rail et al.

• Central government has mandated that all women over 25 be screened for breast and cervical

cancer Market Presence

• Engaged major distributor (KLAB) – 700 employees
• Commenced marketing in three regions

Central – Delhi NCR, Madhya Pradesh, Haryana, Telegana and Maharashtra North East - Manipur and Assam South – Tamil Nadu Pipeline

• All India Institute of Medical Science (AIIMS)
• Central and state governments (aim for inclusion in the 2020 National Ministry of Health

Budget)

• Armed Forces Hospitals and Armed Forces Medical Research Centre
• Major Private Hospital Groups (e.g Fortis, Apollo)
• Tenders for State Screening Programs

India 300M women of screening age

Initial distribution agreement signed 2017 Sales commenced in FY18

FACTS

14 TruScreen August 2019 CEO Presentation

KEY MARKET: AFRICA

Screening Programs

• Step 1: National Aids Council (NAC) of Zimbabwe
• Step 2: Use this for both government and NGO support for other projects in East Africa –

Malawi and Mozambique submission being prepared

• Collaborating with DYSIS Medical and WISAP Medical Technology GmbH

Market Presence

• TruScreen selected by Zimbabwe NAC program for more than 800,000 HIV-affected women
• Ministry of Health supported aid grant application to use TruScreen for a national screening

program Pipeline

• Evaluated by National Aids Council of Zimbabwe
• Target East and Southern African countries with high HIV prevalence

FACTS

227M women of screening age 13.1M women suffer from HIV

Zimbabwe 7% of TruScreen sales HIV+ women up to x5 increased risk of developing cervical cancer

15 TruScreen August 2019 CEO Presentation

KEY MARKET: SOUTH EAST ASIA

Screening Programs

• Government Hospitals, Private Hospitals and Government programs.
• No organised Screening

Market Presence

• Distributor Appointed
• Several medical expert delegations conducted
• Presented to Key Opinion Leaders and MOH administration
• Evaluated by Appraisal Committee of MOH

Pipeline

• Hanoi O & G Hospital to conduct pilot programme
• Stage 1: 1000 patients
• Stage 2: 5000 patients
• Target: TruScreen adopted as a national screening programme

Vietnam 26M women of screening age

Initial distribution agreement signed 2016 Pilot Programme Commenced in August 2019

FACTS

16 TruScreen August 2019 CEO Presentation

Current Capacity

• Established in-house EOA (Electrical Optical Assembly)

manufacturing facility at CSIRO

• Increased capacity: Expandable to 200 units/month
• Can be doubled in short time to meet demand
• R&D tax offset

Future Capacity

• improvement in gross profit per device
• Cost reduction initiatives:
• Bring high tech processes in-house
• Technology transfer to key markets – ‘local device’ for

domestic registration

MANUFACTURING

17 TruScreen August 2019 CEO Presentation

Strategic Partnerships & Relationships

• Endorsement from Key

Opinion Leaders

• Government public

health adoption

• Major screening

programmes

• Build NGO funding

support for TruScreen programmes

• Enhance distribution

networks and key partnerships

Manufacturing Capabilities

• Expand capacity
• Lower cost
• Potential overseas

assembly - but key IP processes retained by TRU

• Underpinned by

Research and Development Ongoing product improvement

• Ongoing product

improvement

• SUS Counterfeit

prevention

Build on Revenue Streams

• Drive Sales and growth

from geographic footprint

• Sustainable Recurring

Revenue Stream

• Transition early adopters

to commercial users

• Further regulatory

approvals and clinical trials

People & Capability

• Social media marketing

campaign to raise awareness and position

• f Executives as Thought

Leaders

• List on Australian Stock

Exchange

• Investment in skilful

people

• Investigating further

cost-reduction strategies

PLANNING FOR GROWTH

18 TruScreen August 2019 CEO Presentation

FY18 Goals and Strategic Progress

Tony Ho Martin Dillon Guy Robertson Chairman Chief Executive Officer Chief Financial Officer tonyho@truscreen.com martindillon@truscreen.com guyrobertson@truscreen.com Investor relations enquiries: truscreen@we-buchan.com

CONTACT

www.TruScreen.com

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Disclaimers

This presentation should be viewed in conjunction with TruScreen’s Financial Statements for the 12 months to 31 March 2019 and the accompanying NZX release. The information presented is a snapshot and does not contain supporting information necessary to make an investment decision. It is not intended to act as a recommendation to acquire TruScreen shares. There can be no assurance that actual outcomes will not materially differ from the forward looking statements presented. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements. The forward-looking statements are based on information available to TruScreen as at the date of this presentation. Except as requiredby law (including the NZAX Listing Rules), TruScreen undertakes no

• bligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. TruScreen, its advisers,

affiliates, related bodies corporate, directors, officers, partners, employees and agents make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of information in this presentation. 20