Beleggers bijeenkomst Quest Photonic Devices B.V....Fluorescent image guided surgery © 2018 Quest...

© 2018 Quest medical imaging B.V. Pn1

Beleggers bijeenkomst

Quest Photonic Devices B.V.

Quest medical imaging

Making the Invisible Visible

Fluorescent image guided surgery 2© 2018 Quest medical imaging B.V. | Pn1

DisclaimerWith the exception of historical information contained in this presentation, content herein may contain "forward looking statements" that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include general economic conditions, delays and risks associated with the performance of contracts, risks associated with international sales and currency fluctuations, uncertainties as a result of research and development, acceptable results from clinical studies, including publication of results and patient/procedure data with varying levels of statistical relevancy, risks involved in introducing and marketing new products, potential acquisitions, consumer and industry acceptance, litigation and/or court proceedings, including the timing and monetary requirements of such activities, the timing of finding strategic partners and implementing such relationships, regulatory risks including approval of pending and/or contemplated 510(k) filings, the ability to achieve and maintain profitability in the Company's business lines, and other factors. The Company disclaims any obligation to update its forward-looking relationships. It is understood that here is a risk that not all current or future risks are known.


Welcome

Opening “obligatiehouders” meeting

Documents received; foundation announcements

Clarification Financials over the year 2017

Clarification conversion of loan into shares and certificates

Current standings, 2018 expectations, trends and developments

Q&A

Closing of meeting

Agenda


Company Structure

Q3 2018

Sumeye

acquired

for 100%


Financials 2017


Rental and Pay per surgery has

• negative impact on total revenue

• Positivie impact on disposable growth

• Positive impact on long term recurring revenue

Corrected for direct sale, revenue would be close to 2M EURO

• Both EBIT and Revenue would be increased

Results revenue


Lower revenue due to pay per

surgery and rental model

• Requires additional cash

• Difference 590K Revenue

• Difference approx 400K EBIT

Influenced by onetime costs

Includes 96K on interest on

loan to Quest Management

B.V.

P&L 2017


Increased revenue due to

• Rentals

• Unit sales

• Disposable growth

Increased Earnings due to rental and disposable sales

Slight increase of quarterly costs

Offset by incidental costs in Q1 2018 for certificates of shares

P&L Q1 2018


Balance sheets


Expectation is negative cash

flow for 3 years at least

• Focused on increasing

Revenue

• Investment in Marketing &

Sales

• Investment in R&D

Negative cash flow matched to

cash position or funding

activities

Cashflow


Based on

• US KIT sales

Bigger installed base, larger growth.

Estimation is long term (5 years+)

20% – 30% on disposables without

new product development

Growth limited due to new sales

people

Q2 2018 growth aprox. 26%

Goal > 25% quarter over quarter

Influenced by # new installations

Growth disposables

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Quarterly growth (Quarter on Quarter)

Growth % Goal %


Conversion shareholder loan


Further strengthen balance position

Increases company equity value

Strengthens solvability to 41%

Shows strong commitment of management

Reduces P&L by almost 0.5M over the next 4 years

Allows for better and new external funding when required

Allows for lower interest rates on external funding

Convert total loan into certificates B (listed at NPEX) @13,27 per certificate.

effective of 1/7/2018 (to have 6 months effect on P&L)

No Pay back of Akron investment loan to secure additional investments in US market growth.

Clarification conversion of loan into

shares and certificates


Quest Photonic Devices B.V. Post investment balance, july 2018

Balans projectie na omzetting lening

Activa Passiva

Immateriele vaste activa 3.665.416 Groepsvermogen 3.325.811

Materiele vaste activa 58.933 Achtergestelde leningen 2.534.253

Financiele vaste activa 344.608 Voorzieningen 247.863

Voorraden en ohw 1.509.239 Langlopende schulden 1.162.009

Vorderingen 433.878 Kortlopende schulden 461.711

Liq. Middelen 2.076.424 Crediteuren 356.850

8.088.497 8.088.497

0



Eigen vermogen 3.325.811

Garantie vermogen 5.860.064

Vreemd vermogen 2.228.433

Solvabiliteit Eigen vermogen 41,12%

Solvabiliteit Garantie vermogen 72,45%

Balance after conversion

Healthy solvability


Strategic plan funding




Balance after potential new investment / loan of 2.5MQuest Photonic Devices B.V. Post investment balance, july 2018

Balans projectie na omzetting lening

Activa Passiva

Immateriele vaste activa 3.665.416 Groepsvermogen 3.325.811

Materiele vaste activa 58.933 Achtergestelde leningen 2.534.253

Financiele vaste activa 344.608 Voorzieningen 247.863

Voorraden en ohw 1.509.239 Langlopende schulden 3.662.009

Vorderingen 433.878 Kortlopende schulden 461.711

Liq. Middelen 4.576.424 Crediteuren 356.850

10.588.497 10.588.497

0

Eigen vermogen 3.325.811

Garantie vermogen 5.860.064

Vreemd vermogen 4.728.433

Solvabiliteit Eigen vermogen 31,41%

Solvabiliteit Garantie vermogen 55,34%

Still Healthy solvability!

Cash position to execute strategic plan at higher pace

Lower interest rate

Focus on bank loan or new obligatory note


Current standings


1M Revenue • in H1 at 75% of last years revenue

Profitable result • including rent from loan, aprox 50K.

2M Expected revenue • 56% growth against 2017

• Mix of rent and direct sale

Received patent grant in NL,

started PCT phase• Search report was very positive about granting

• Base of imaging technology

Reached > 5000 cases milestone

• Increasing rapidly

H1 2018


Increase distribution network• New distributors under negotiation to close this year

• Increase demo systems

• Increase device production

Increase direct sales network• US East coast (Sales reps + clinical assistants)

• US West coast (Sales reps + clinical assistants)

• US Central clinical assistants

• Germany office (Sales reps + clinical assistants)

Strengthen office backbone

Scale up production facility

Build out product portfolio and technology

Short term action points


Milestones

- 2017 ICG open application phase 2018 - 2019

ICG open & MIS applications phase 2020

Expected Start Targeted probe roll out phase. Gen 3 system

Key priority:

- Build out distributor network and via them install systems in key hospitals, building out install base.

- Build out production hospitals (not only university hospitals

- Expand product line

2021Adding modules / integrate with OR setup

Several additional modalities are under development that can be added to the towers in the field.

The first targeted probes will have completed registration.

Joint roll out based on install base already in place, distributor network of QMI and sales structure of probe developer.

Key priorities:

- Recruitment of Sales manager France/ internal sales/ clinical assistant

- Formalize agreements with 3 Probe developers


Sales cycle

1.Identify & Demo

2. Budget allocation

3. Rent/

Sale

Step sales approach

1. Predefined target hospital list

Demonstrate machine in real use (perform surgery with surgeon)

2. Find budget

3. Acquire machine or place through rental or pay per surgery

Average sales cycle 9 – 15 months

Rental with option to buy shortens cycle

Pay per surgery easiest. Pay through kit (US only right now)

Step 1, sales funnel grows significantly


Installed base


2018 expectations


Showing market acceptance• See press releases on SLA and Installations

Showing increased growth on disposables• Increase amount of installed devices

Increase sales funnel • Increases per quarter

• Increased distribution network

• Will result in increased sales 2019

Investors comfort• Strengthen management team

• Strengthen sales team

• Strengthen disposable sales (grow > 25% quarter over quarter)

• Strengthen installation base

Investment in Personnel

Focus on


2M Expected revenue (56% growth against 2017)

Q3 expected lower quarter

Q4 expected to see increase sales funnel conversion

New trial results outcome expected to be published in Q4 on new applications (specific to Quest Spectrum, requires Quest software)

20 systems expected to be installed in 2018

Add sales Distributors

Hiring of high end executive for US market with proven track record (Announcement expected in next weeks)

German market startup started in September

First French market success expected in Q4

Q4 New product release for breast surgery (currently in trial)

Acquisition of state license for disposable (reducing disposable costs by aprox 30%)

Development of personnel option plan (as mentioned in prospectus)

H2 2018


Trends and developments


Camera systems

Stryker buys surgical lighting company for $190M

Stryker to acquire photonics company for $190 million

Stryker Takes A Shine To Photonics Firm Invuityhttps://www.medtechdive.com/news/stryker-buys-surgical-lighting-company-for-190m/532065/

http://www.crainsdetroit.com/mergers-acquisitions/stryker-acquire-photonics-company-190-million

https://medtech.pharmaintelligence.informa.com/MT123272/Stryker-Takes-A-Shine-To-Photonics-Firm-Invuity

“In its Q2 earnings call in late July, Stryker told analysts it will continue to stick with its strategy of targeting small and

medium-size companies for acquisitions, with money to burn as earnings exceeded the company’s own projections for

the quarter led by its neurotechnology sector.”

Recent take overs / investments

https://www.medtechdive.com/news/stryker-buys-surgical-lighting-company-for-190m/532065/

http://www.crainsdetroit.com/mergers-acquisitions/stryker-acquire-photonics-company-190-million

https://medtech.pharmaintelligence.informa.com/MT123272/Stryker-Takes-A-Shine-To-Photonics-Firm-Invuity

https://www.medtechdive.com/news/stryker-says-q2-tops-goals-will-stick-to-ma-playbook/528555/


Smaller players picked out of the market by larger

companies

• Less small companies left to compete with

Application development in full force

• Trials on increasing acceptance of the technology (what more

can we do and how does this improve patient outcome!)

Increased awareness of technology

Trends


Quest company life cyclusProof Growth Capitalize Transition

- Product

- Acceptation &

validation

- Business model

- Engineering

- Process

- Customers

- Organisation

- R&D

- Application development

Focus: - Efficiency

- New product Launch

- R&D

- Application development

- Product portfolio

expansion

- Customer

Integratie

8 Years

Revenue

- Own expansion

- Strategic Sale

130


Focus on sales expansion• Quest Spectrum product placements (rental/sales)

• Increase disposable use

• Increase installations

• Both research and production hospitals

Partnerships• Smart contrast agents

• Robotics

New product developments for • reducing costs for hospitals

- New surgery because of recurrence

- Lower OR times

• Improving patient outcome- Recurrence reduction by complete tumor removal

- Less damage & quicker recovery by more precise cutting

Increase product differentiation from competition

5 Year Goal:• Exit strategy through strategic takeover (sale of medical business or product lines)

• Continue growth and turn into dividend certificates.

• Increased yearly growth to 20M Revenue in 2022

5 year Strategy

Pn1 © 2018 Quest medical imaging B.V.

Quest Medical Imaging B.V.

PO Box 22, 1770 AA, Wieringerwerf

the Netherlands

T:+31(0)227 604046 ◊ F:+31(0)227 604053

www.quest-innovations.com/ www.quest-mi.com

http://www.quest-innovations.com/

http://www.artemismi.com/

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