3D Medical Limited
(ASX: 3DM)
Annual General Meeting
Thursday 12 November 2015 For
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Disclaimer
Summary of information: This presentation contains general and background information about 3D Medical Limited (“3DM”) activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision. This presentation is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or under any other law. The presentation does not purport to contain all the information that a prospective investor may require in assessing a possible investment in 3DM nor does it contain all the information which would be required in a prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth). The information provided is in summary form, has not been independently verified, and should not be considered to be comprehensive or complete. It should be read solely in conjunction with the oral briefing provided by 3DM and all other documents provided to you by 3DM. The information in this presentation remains subject to change without notice. 3DM is not responsible for providing updated information and assumes no responsibility to do so.
Not financial product advice: This financial information provided in this presentation is for information purposes only. The information contained in this presentation is of a general nature only and is not a financial product, investment advice or a recommendation to acquire 3DM securities and has been prepared without taking into account the objectives, financial situation or needs of any person or entity. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. 3DM is not licensed to provide financial product advice in respect of its securities or and other financial products. Cooling off rights do not apply to the acquisition of 3DM securities. 3DM assumes that the recipient is capable of making its own independent assessment, without reliance on this document, of the information and potential investment and will conduct its own investigation.
Disclaimer: 3DM and its related bodies corporate and each of their respective directors, agents, officers, employees and advisors expressly disclaim, to the maximum extent permitted by the law, all abilities (however, caused, including negligence) in respect of, make no representations regarding, and take no responsibility for, any part of this presentation and make no representation or warranty as to the currency, accuracy, reliability or completeness of any information, statements, opinions, conclusions or representations contained in this presentation. In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or future performance of 3DM.
Future performance: This presentation contains certain forward-looking statements and opinions. The forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of 3DM. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast.
Not an offer: This presentation is not, and should not be considered as, an offer or an invitation to acquire securities in 3DM or any other financial products and neither this document nor any of its contents will form the basis of any contract or commitment. This presentation is not a prospectus. Offers of securities in 3DM will only be made in places which, or to persons to whom it would be lawful to make such offers. This presentation must not be disclosed to any other party and does not carry any right of publication. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of 3DM.
No distribution in the US: This presentation is not an offer of securities for sale in the United States. Any securities to be issued by 3DM have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act. No public offer of the securities is being made in the United States and the information contained herein does not constitute an offer of securities for sale in the United States. This presentation is not for distribution directly or indirectly in or into the United States or to US persons.
Monetary values: Unless otherwise stated, all dollar values are in Australian dollars (AUD$). The information in this presentation remains subject to change without notice.
No distribution: Distribution of this presentation may be restricted by law. Persons who come into possession of this presentation should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable security laws.
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Agenda
1. 2015 Achievements
2. 2016 Strategic Targets
3. Merger with Mach7 Technologies
4. Questions
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2015 Achievements
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Achievements since listing
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February 2015
Successful ASX listing
and ~$4.1m capital raise
October 2015
Production of a medical implant used in a
pioneering Australian-first
surgery
Manufacturing
agreement established
for supply of 25
personalised medical
prosthesis
Interlad: partnership
agreement for 3D
printing fulfilment services
for radiologists
Telstra Health: software
license and support
agreement for MACH7
Capitol Health: exclusive
supply agreement:
(diagnostic imaging
(ASX:CAJ)
Genesis Cancer Care:
research collaboration
agreement for design
and production of medical consumables in
radiotherapy
Hephaestus CAD/CAM:
research collaboration
agreement for design and production dental
prosthesis
Mach7:
proposed merger
with Mach7
Technologies
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Targeting two key lines of revenue
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Revenue is sourced from two key activities:
1. Licencing: medical imaging software solutions such as Mach7,
EchoPixel and GestSure that value-add medical imaging data
2. Manufacturing: design and production of 3D-printed patient-specific
objects built from medical image data
3D Medical is uniquely focused on value-adding medical image data
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3D printing across numerous medical applications
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Dental
Biomodels
Consumables
Implants
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2016 Strategic Targets
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3D Medical 2016 Strategic Targets
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Development of intellectual
property
•ISO accreditation
•Inteleard™ software enhancement
•Continual R&D knowhow
•Collaboration with University and industry partners
New products and new markets
•Innovation in 3D printing using new materials and production technologies
•Potential for product/market acquisition opportunities
•Participation in other medical modalities
•Export market opportunities
Human Capital
•Strengthen management team
•Additional business development, sales and engineering expertise
•Medical Advisory Board
Build sales channels
•Transition away from direct territorial sales model
•Introduction of global online ordering via Intelerad™ viewer
•Embedded business development opportunities within clinical settings
Merger with Mach7
•“Game changing” opportunity
•Access to world-class medical imaging I.P.
•Existing revenue base to support business development activity
•Unique customer and product synergies
Revenue Growth
•Targeting exclusive supply agreements for 3D printed medical applications
•3D printing revenues from global client base
•Licencing revenues significantly accelerated with Mach7 merger
•Strong and growing USD revenue base with sales activities in 10 counties
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Merger with Mach7 Technologies
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MACH7 Technologies
• Enterprise imaging solutions to help healthcare businesses archive, consolidate, access, and share medical imaging data across departments, locations and regions.
• Provides a suite of image management systems and services
that allows businesses to easily identify, connect and share diagnostic images and patient care intelligence – anytime, anywhere it is needed.
• MACH7’s Vendor Neutral Archive allows consolidation of image storage irrespective of the disparate legacy systems
the healthcare business is running
• It simplifies access, increases data integrity and heightens security over images and data
• USD denominated revenue for software licence, installation,
support and customisation
Solutions Overview
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Key company highlights
• Founded in 2008
• Award winning enterprise imaging platform; recently awarded Frost & Sullivan Asia Pacific Medical Imaging Informatics Company of the Year
• Global presence in 10 countries; USA, Singapore, Indonesia,
Australia, Qatar, Saudi Arabia, India, Malaysia, UK and South Africa
• 43 FTE staff
• Holding company in Singapore and operational HQ VT
• Multi-jurisdiction sales with strong US presence
• Nearing cash flow breakeven
Key customers include
MACH7 is a best in class software that has
successfully deployed its software platform to
over 300 sites across the globe
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Proposed merger with MACH7 Technologies
• 3D Medical has entered into a binding
Heads of Agreement (HOA) to
purchase 100% of the shares issued in
Mach7
• Under the terms, 3DM will acquire all
shares in Mach7 for a scrip
consideration of:
– ~460m consideration shares plus,
– Up to 300m performance shares to
be issued over 4 tranches in the
event of certain milestones being
achieved in FY16 & FY17
• For the 9 months ending September
2015, Mach7 generated revenue of
~USD$4.1 million (AUD$5.7 million)
• Annual cash operating costs for Mach7
are approximately USD$7 million
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Mach7 Performance Milestones
As part of the consideration payable under the merger, the shareholders of Mach7
have agreed to the following revenue and share price hurdles:
• FY16 (Mach7 December year end)
1) Performance hurdle #1: 3DM share price reaches $0.20 (~2.5 x current price) and Mach7 achieves revenue of USD$6 million
2) Performance hurdle #2: Mach7 achieves revenue of USD$12 million
• FY17 (Mach7 December year end)
3) Performance hurdle #3: 3DM share price reaches $0.25 (~3 x current price) and Mach7 achieves revenue of USD$6.6 million
4) Performance hurdle #4: Mach7 achieves revenue of USD$20 million
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3DM.ASX 12 month share price
Source: Bloomberg.com
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Post transaction Capital Structure
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Shares on Issue 3DM
Shares on issue prior to capital raising 375.9 million
Option exercise* to raise up to $2 million 40.0 million
Placement to raise up to $4 million @ $0.075 per share 53.1 million
Share Purchase Plan to raise $5 million @ $0.075 per share 66.6 million
Mach7 consideration shares 459.5 million
SUB-TOTAL 998.7 million
Mach7 performance shares Up to 300 million
Total Shares on Issue 1,298.7 million
* 116.4 million unquoted options on issue exercisable at $0.05 including 34.6 million escrowed options. Assuming 1/2 of unrestricted options are exercised early.
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Timetable to completion
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• 16 November 2015: mail out details of Share Purchase Plan (SPP) to existing shareholders for participation of up to $15,000 in new 3DM
shares (priced at 7.5 cents per share).
• December 2015: Notice of meeting sent to shareholders.
• 5:00 pm (Melbourne time) on 7 December 2015: Closing date for shareholders to participate in SPP.
• 14 December 2015: SPP shares allocated.
• 15 December 2015: SPP shares commence trading on ASX.
• January 2016: General meeting of shareholders to approve merger with Mach7.
• January 2016: Merger complete and name change from 3D Medical to Mach7 Technologies.
*These dates are indicative. 3D Medical reserves the right to amend these dates at its discretion.
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3D Medical Limited Board of Directors
Dr Nigel Finch Chairman MCom, LL.M, MBA, Ph.D, CA, CTA, FCPA, F Fin, FTIA, FAICD
Frank Pertile Non Executive Director Grad Dip App Fin, F Fin
Stephen Hewitt-Dutton Non Executive Director B.Bus, CA, SA Fin
Alyn Tai Company Secretary LLB (Hons)
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Questions
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