Presentation to Annual Meeting of Shareholders
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
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TruScreenAugust 2019 CEO Presentation
At the Start of the year we set
our key business priorities as
Increase sales
of 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
TruScreenAugust 2019 CEO Presentation3
FY19 PRIORITIES, RESULTS & BUSINESS HIGHLIGHTS
TruScreenAugust 2019 CEO Presentation4
-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
organisations 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
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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
TruScreenmeets the market demand
TruScreenAugust 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
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TruScreenAugust 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
China4018%32.0810.6986.49
Mexico316%1.860.626.38
Russia446%2.640.8810.35
Africa2262%4.521.5122.16
India 3023%9.063.0231.09
Mid East702%1.400.475.49
Latam1201%1.200.404.71
Total119452.7617.59166.67
NZD : USD0.68
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
occur in low and
middle income
nations
TruScreenAugust 2019 CEO Presentation
COMMERCIAL STRATEGY
•Lacking lab infrastructure
•High prevalence ofHPV &
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
orders> 150,000 SUS units
Global Distribution
•31 countries
•Pilot public healthinitiatives
Research and Development
•2
nd
generation device
TARGETING LOW/MIDDLE
INCOME COUNTRIES
MARKET ENTRY &
DEVELOPMENT
SUCCESS TO DATE
Expand Distribution
•Local distributorstrategy
•Public health initiatives
•Partnerships with Non-
Government Organisations and
Government agencies
Technology transfer to key
markets
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TruScreenAugust 2019 CEO Presentation
SALES DATA-FY2019
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COMMERCIALISED IN MULTIPLE MARKETSSALES 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
TruScreenAugust 2019 CEO Presentation
SALES DATA-FY2019
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ACCELERATING SALES OF DISPOSABLE SUS
ACCELERATING SALES GROWTH
TruScreen(Units) SUS Growth
TruScreenAugust 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
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TruScreenAugust 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
31Mwomen of screening age
8% of TruScreen sales
Initial distribution agreement
signed 2015
FACTS
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TruScreenAugust 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 IMSystemswith initial orders in Feb 2019
•Advanced payment of USD $250k for multiple TruScreenDevices and Single Use Sensors
(SUS)
•IMSystemshas 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
44Mwomen of screening age
20% of TruScreen sales
Original agreement in 2015
New agreement distribution
agreement signed in Feb 2019
FACTS
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TruScreenAugust 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, Teleganaand 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.gFortis, Apollo)
•Tenders for State Screening Programs
India
300Mwomen of screening age
Initial distribution agreement
signed 2017
Sales commenced in FY18
FACTS
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TruScreenAugust 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
13.1Mwomen suffer from HIV
Zimbabwe 7% of TruScreen sales
HIV+ women up tox5 increased
risk of developing cervical cancer
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TruScreenAugust 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: TruScreenadopted as a national screening programme
Vietnam
26Mwomen of screening age
Initial distribution agreement
signed 2016
Pilot Programme Commenced in
August 2019
FACTS
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TruScreenAugust 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
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TruScreenAugust 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
of Executives as Thought
Leaders
•List on Australian Stock
Exchange
•Investment in skilful
people
•Investigating further
cost-reduction strategies
PLANNING FOR GROWTH
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TruScreenAugust 2019 CEO Presentation
FY18 Goals and Strategic Progress
Tony HoMartin DillonGuy Robertson
ChairmanChief Executive OfficerChief Financial Officer
tonyho@truscreen.commartindillon@truscreen.comguyrobertson@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 assurancethatactual outcomes will notmaterially differ from the forward looking statements presented.
A number of important factors could cause actual results or performanceto differ materiallyfromtheforward-looking statements.Theforward-looking statements are
based on information available toTruScreen as at thedateof this presentation. Except as requiredby law (including the NZAX ListingRules), TruScreen undertakes no
obligation to provide any additional orupdatedinformation whether asa result of new information, future events or results or otherwise. TruScreen, its advisers,
affiliates,related bodiescorporate, directors, officers,partners, employees and agents make no representation or warranty, express or implied, as to thecurrency, accuracy,
reliabilityor completeness ofinformation in this presentation.
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