For personal use only - ASX · 2015 Study Preliminary Results Sensivity Specificity Accuracy ... (2014 es)mates) 5. Research2guidance mHealth App Developer Economics (2014) 700M

Digitalhealthcareforrespiratorydisease

TonyKea)ngChiefExecu)veOfficerandManagingDirector

[email protected]

InvestorPresenta)onMay2016

ASX:RAP

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DisclaimerThispresenta)onhasbeenpreparedbyResAppHealthLimited(“ResApp”).Theinforma)oncontainedinthispresenta)onisaprofessionalopiniononlyandisgiveningoodfaith.Certaininforma)oninthisdocumenthasbeenderivedfromthirdpar)esandthoughResApphasnoreasontobelievethatitisnotaccurate,reliableorcomplete,ithasnotbeenindependentlyauditedorverifiedbyResApp.Anyforward-lookingstatementsincludedinthisdocumentinvolvesubjec)vejudgmentandanalysisandaresubjecttouncertain)es,risksandcon)ngencies,manyofwhichareoutsidethecontrolof,andmaybeunknownto,ResApp.Inpar)cular,theyspeakonlyasofthedateofthisdocument,theyassumethesuccessofResApp’sstrategies,andtheyaresubjecttosignificantregulatory,business,compe))veandeconomicuncertain)esandrisks.Actualfutureeventsmayvarymateriallyfromtheforward-lookingstatementsandtheassump)onsonwhichtheforward-lookingstatementsarebased.Recipientsofthisdocument(Recipients)arecau)onedtonotplaceunduerelianceonsuchforward-lookingstatements.ResAppmakesnorepresenta)onorwarrantyastotheaccuracy,reliabilityorcompletenessofinforma)oninthisdocumentanddoesnottakeresponsibilityforupda)nganyinforma)onorcorrec)nganyerrororomissionwhichmaybecomeapparentaZerthisdocumenthasbeenissued.

Totheextentpermi[edbylaw,ResAppanditsofficers,employees,relatedbodiescorporateandagents(Agents)disclaimallliability,direct,indirectorconsequen)al(andwhetherornotarisingoutofthenegligence,defaultorlackofcareofResAppand/oranyofitsAgents)foranylossordamagesufferedbyaRecipientorotherpersonsarisingoutof,orinconnec)onwith,anyuseorrelianceonthispresenta)onorinforma)on.

Thispresenta)onisnotanoffer,invita)on,solicita)onorrecommenda)onwithrespecttothesubscrip)onfor,purchaseorsaleofanysecurity,andneitherthispresenta)onnoranythinginitshallformthebasisforanycontractorcommitmentwhatsoever.

AllamountsinAustraliandollarsunlessstatedotherwise.

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Digitalhealthcareforrespiratorydisease§  Developingtheworld’sfirstclinically-tested,regulatory-approvedrespiratorydisease

diagnos)ctestandmanagementtoolsforsmartphones-  Noaddi'onalhardwareneeded

§  Hugeglobalmarket,700M+doctorvisitsannuallyforrespiratorydisease1

-  Uniqueopportunitytointegrateintotelehealthproviders’exis)ngplaborms-  Strongdemandalsoseenwithinclinics,emergencyroomsandoutpa)entfacili)es

§  Compellingclinicalevidencefrommul)plepediatricclinicalstudies,adultstudyunderway§  SuccessfulPre-Submissionmee)ngheldwithUSFDA,targe)ngUSapprovalbyendof2016§  Recentlycompleteda$12.5Mcapitalraisetopursuenewmarketopportuni)esand

strengthenbalancesheet

31.ResAppes)matebasedonOECDdoctorvisitspercapitadataandassuming10%ofvisitsareforrespiratorydisease(basedonUSdata)

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Companyoverview

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CapitalStructure(ASX:RAP)MarketCap. $132M

SharePriceasof29April2016

$0.205

SharesonIssue1 644M

PerformanceShares2 93.75M

Op)ons3 21.8M

StaffIncen)veOp)ons4 25M

CashBalanceasof29April2016

$14.9M

1.  Includes121Mescrowedshares2.  Issuedonachieving$20Mofannualrevenueoronanacquisi)on3.  15.5M,exercisepriceof2.6c,expire31/12/16;4.5M,exercisepriceof

28c,expire29/4/19;1.87M,exercisepriceof30c,expire29/4/194.  IssuedtoMD,5Mop)onsatexercisepriceof2.5c,5Mat5cand10M

at10c,5yearexpiry;IssuedtoDrAbeyratne,3Mat5cand2Mat10c

BoardofDirectorsDrRogerAston Non-Execu)veChairman(ChairmanofOncosil,formerCEOofMaynePharma,CambridgeAn)body,cofounderofpSividaCorp)

DrTonyKea)ng ManagingDirectorandCEO(formerDirector,CommercialEngagementofUniQuest,engineeringmanagementroleswithExaCorpora)on)

MrBrianLeedman Execu)veDirectorandVP(ChairofAusBiotech-WA,co-founderofImugeneLtdandOncosilMedicalLtd,formerVP,IRatpSividaCorp.andGroupMarke)ngManageratE&Y-WA)

MrChrisNtoumenopoulos Non-Execu)veDirector(14+yearsinvestmentbanking,AssociateDirectoratCPSCapital,formerlyatCi)group,IndianOceanCapital)

Substan)alShareholdersFreemanRoad:6.84%UniQuestPtyLtd:6.57%Top20Shareholders:41.6%

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Diagnosisofrespiratorydiseaseisthemostcommonoutcomefromavisittothedoctor

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Acutecondi'onsURTIs,influenza,bronchi)s,bronchioli)s,pneumonia,pertussis,croupChronicCondi'onsAsthma,COPD,cys)cfibrosis,bronchiectasis

§  700M+doctorvisitsp.a.globally1forrespiratorydisease→  125MinUS2(10%ofallvisits)→  6-8MinAustralia3

§  US$10.5Bp.a.UShospitalcostsforpneumonia4§  HighprevalenceandgrowthinAsia

1.ResAppes)matebasedonOECDdoctorvisitspercapitadataandassuming10%ofvisitsareforrespiratorydisease(basedonUSdata)2.Ambulatorycasevisits,Na)onalAmbulatoryMedicalCareSurvey20103.AustralianLungFounda)on4.HCUPSta)s)calBrief#160

Currentlydiagnosedusingstethoscope,imaging(x-ray,CT),bloodand/orsputumtests

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Revolu)onarytooltodiagnoserespiratorydiseasebasedonsoundsignatures

§  ExclusiveworldwidelicensetomachinelearningtechnologydevelopedbyAssociateProfessorAbeyratneatTheUniversityofQueensland

§  Usessignaturesincoughingandbreathingsoundstodiagnosedisease

§  Ini)aldevelopmentatUQfundedbyTheGatesFounda)ontoreducethe1Mchilddeathsp.a.duetopneumoniainthedevelopingworld

§  Patentapplica)onfiledinUS,Australia,Europe,China,JapanandSouthKorea

§  Canusemicrophonesintoday’ssmartphones→  Noaddi'onalhardwarerequired

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Cough Spectra too is different

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Easytouse,instantdiagnosisusingonlyasmartphone

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Verifiedbycompellingpediatricclinicalevidence

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2013Study Sensi'vity Specificity Accuracy

Pneumoniavs.allrespiratory1 94% 100% 96%

Asthmavs.pneumonia2 100% 80% 90%

1.  Abeyratneetal.,AnnalsofBiomedicalEngineering,20132.  Kosashietal.,IEEETransac)onsinBiomedicalEngineering,20153.  ResAppPressRelease30September20154.  ResAppPressRelease10November20155.  ResAppPressRelease31March2016

Currentstudy(startedMarch2015)-  FundedbyResApp-  ManagedbyTheUniversityofQueensland-  Sites:JoondalupHealthCampusandPrincess

MargaretHospital,Perth,Australia-  598pediatricpa)entsenrolledtodate

Proofofconceptstudy(2013)-  FundedbyTheBillandMelindaGates

Founda)onandTheUniversityofQueensland-  Site:SardjitoHospital,Indonesia-  91pa)ents,majorityundertheageof5-  Resultspublishedinpeer-reviewedjournals1,2

2015StudyPreliminaryResults Sensi'vity Specificity Accuracy

Pneumoniavs.norespiratory4 100% 95% 97%

Asthmavs.norespiratory3 97% 92% 95%

Bronchioli'svs.norespiratory4 100% 100% 100%

Croupvs.norespiratory4 94% 100% 99%

URTIvs.norespiratory4 100% 95% 96%

Pneumonia,crouporbronchioli'svs.URTI4 89-100% 90-95% 89-98%

Differen'aldiagnosisofpneumonia,croup,URTIandbronchioli's5

91-99% 89-98% 89-98%

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Achievingbreakthroughperformanceindiagnosis§  Lowerrespiratorytractdiseasediagnosis

-  Effec)vetreatmentneedsiden)fica)onoflowerrespiratorytractinvolvement-  Correctlydetectedlowerrespiratorytractinvolvementin97%ofcasesini'ally“missed”by

experiencedcliniciansusingastethoscope

§  Causeofpneumoniadiagnosis“Weneedfaster,less-expensivediagnos@ctestsfordoctorstoaccuratelydiagnosethe

causeofpneumoniasotheycaneffec@velytreatit”USCDC(2015)1-  Incorrectdiagnosisleadstounnecessaryandineffec)vean)bio)cuse-  Iden)fyingthecausetodayis)meconsuming,costlyandonlyavailableinter)aryhospitals-  Preliminaryresultsdemonstratedsepara'onofbacterialandatypicalfromviralpneumoniawith

89%and90%accuracy

91.  USDepartmentofHealthandHumanServicesPressRelease,Feb25,2015

(h[p://www.cdc.gov/media/releases/2015/p0225-pneumonia-hospitaliza)ons.html)

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Uniqueopportunitytodeployalongsidetelehealth,oneofthefastestgrowingtrendsinhealthcare§  DeliverResApp’sdiagnos)ctestanywhere,any)mewhileretainingaclinician’sinput§  UStelehealthisalreadylarge,andgrowingrapidly

§  Telehealthbenefitsall:payors,pa)entsandhealthcareproviders§  30%oftelehealthconsultsforrespiratorydisease1,noaccurateremotediagnosisavailable

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75Mconsultsp.a.

(UStelehealth‘evisits’in2014es)matedbyDeloi[e)1

US$12BUSTAM

(GoldmanSachsUStotaladdressablemarketes)mate)

56%growth

(Growthrateun)l2018es)matedbyIHS)

1. Deloi[e,eVisits:the21stcenturyhousecall(August2014)2. HIS,WorldMarketforTelehealth(2014)3. GoldmanSachsEquityResearch,TheDigitalRevolu)onComestoUSHealthcare(June2015)4. Uscher-PinesandMehrotra(HealthAffairs,2014)

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Pursuingatrulyglobalopportunity§  SignificantgrowthintelehealthinEuropeandAustralia

-  PlantofileforCEMarkinsecondhalfof2016

§  Hugepoten)alinAsiaPacificwherethereareover1billionsmartphoneusers1

-  Highprevalenceofrespiratorydiseaseandna)onwideshortageofdoctorsinChina2

-  Chinesemobileonlineconsulta)onexamples:

§  Ac'vepartnershipdiscussionsinallregions

111. ForresterResearch2. “DearthofDoctorsinChinaSaidtoPutChildren’sHealthatRisk,CaixinOnline,h[p://english.caixin.com/2016-01-21/100902234.html

92Mac)veusers229ques)onsperminute

Chunyuyisheng PingAnHaoyisheng

25Mac)veusers95,000appointmentsperday

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Targe)ngmul)plemarketsegments

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Telehealth Clinicaluse Developingworld Directtoconsumer

Marketsize

• 22.5Mrespiratory-relatedUStelehealthconsultsp.a.

• 13.4MUSEDvisitsforrespiratorydiseasep.a.1(~4.6Mforchildren)

• 1Mchilddeathsduetopneumoniap.a.3• 151Mcasesofpneumoniaindevelopingcountriesp.a.3

• 400MiPhoneusers4• 1.6BAndroidusers4• mHealthappmarketexpectedtogrowto$25Bbyendof20175

Valueproposi'on

✓  Theonlyremoteclinically-accuratediagnos)ctoolavailable

✓  Easilyintegratedintoexis)ngplaborms

✓  Reducecosts(<$10vs>$200forx-ray)

✓  Reduce)me(x-rayadds~30mins,culturescantakedays)

✓  Lowcost,accurate&fast✓  Usablebynon-medical

personnel✓  IntegratesintoIMCI

framework

✓  Convenience✓  Lowcost✓  Consumer

empowerment

Commercialstrategy

Partnerwithtelehealthproviderstoreach10sofmillionsofpa)ents

Ini)aluseinemergencydepartments(ED),extendingtoregularclinics

Partnerwithleadinginterna)onalaidagenciestoequipfieldpersonnel

Directtoconsumerviaappstorestotargetgrowthinconsumer-ledhealth

Revenuemodel B2Bpertestfee(<$10)fromtelehealthproviders

B2Bpertestfee(<$10)fromhealthcarepayors

B2Bannualsubscrip)onfromaidagencies

B2Cdownloadandpertestfeedirectfromconsumers

1. ResAppes)matebasedonOECDpercapitadata2. NHAMCS(2011)3. WHOes)mate

4. Sta)sta(2014es)mates)5. Research2guidancemHealthAppDeveloperEconomics(2014)

700MdoctorvisitsinOECDforrespiratorydiseasep.a.1

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Improvingchronicrespiratorydiseasemanagement§  334Mpeoplehaveasthma1

-  17.7MinUS2,30MinEurope3,2.3MinAustralia4

-  $30B+p.a.USeconomicburden2

-  Pa)entadherencetoasthmamedica)onsisgenerallyverypoor

§  65MpeoplehavemoderatetosevereCOPD5

-  Emphysemaandchronicbronchi)s,primarycausedbysmoking-  3M+peoplediedofCOPDin2012,6%ofalldeathsglobally5

§  HighprevalenceofasthmaandCOPDinChina

§  OpportunitytomeasuretheseverityofasthmaandCOPD,withoutthecostofaddi)onalhardwareortheneedtocarryanextradevice

§  Clinicalcollabora'onstobeannouncedshortly

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1. TheGlobalAsthmaReport2014(GlobalAsthmaNetwork)2. USCDC3. EuropeanLungWhiteBook4. AsthmaAustralia

5. WHO6. Interna)onalStudyofAsthmaandAllergiesinChildhood7. COPDFounda)on

1in7childrenhasasthma6

1in5adultsover45hasCOPD7

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2015:Anoutstandingyearofachievements

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¨  RaisedAU$4millionandlistedontheASX¨  Ini)atedandenrolled598pa)entsinmul)-sitepediatricclinicalstudy¨  Reportedposi)vepreliminaryresultsfrompediatricclinicalstudy¨  Ini)atedadultclinicalstudy¨  Appointedbest-in-classFDAregulatoryconsultant–ExperienGroup(Sunnyvale,CA)¨  FiledPre-SubmissionpackagewiththeUSFDA¨  Builtuptheteamwiththreenewhires(soZwaredevelopment,clinical/regulatory

opera)ons)¨  Developedhighperformancecross-plabormsoZwarelibrarythatcanbedeployedvia

smartphoneapp,SDKorcloud-hostedSoZware-as-a-ServiceAPI

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2016:Keymilestoneswellinhand

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¨  Obtainedapprovaltoenrolladultpa)entsatsecondhospitalsite,TheWesleyHospital(Q1)¨  Demonstratedsuperioritytostethoscopeforlowrespiratorytractdiseasediagnosis(Q1)¨  Securedpartnershipwithglobalhumanitarianorganisa)onfordevelopingworldtrial(Q1)¨  SuccessfullyheldPre-Submissionmee)ngwiththeUSFDA(Q1)¨  Newbenchmarkresultsachievedusingexpanded524pediatricsubjectdataset(Q1)¨  Reportedpreliminaryresultsforsepara)onofviral,bacterialandatypicalpneumonia(Q1)¨  Raised$12.5Mtoexpandmarketopportunity(Q2)¨  Reportpreliminaryresultsfromadultclinicalstudy(Q2)¨  Ini)atepivotalclinicalstudyinUSandAustralia(Q2)¨  FiledenovopremarketsubmissionwithFDAforfirstResAppproduct(mid-year)¨  FileforCEMarkinEurope(secondhalfofyear)¨  FDAmarke)ngapprovalforfirstResAppproduct(Q4)

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Summary§  Revolu)onarytechnology–diagnosisandmanagementofrespiratorydiseasewithoutthe

needforaddi)onalhardware§  Compellingpediatricclinicalevidence§  Newbreakthroughresults:

-  Detec)nglowerrespiratorytractinvolvementwhichmaybemissedbyausculta)on-  Diagnosingthecauseofpneumonia(viral,bacterialoratypical)

§  ResultsfromadultclinicalstudydueinQ22016§  SuccessfulUSFDAPre-Submissionmee)ngheldinQ12016

-  Confirmeddenovoregulatorypathway,combinedUSandAustralianpivotalclinicalstudy§  On-tracktobringproducttoUSmarketbyendof2016,launchviatelehealthpartnerto

reachmillionsofpa)entsquickly§  Poten)alEuropean,AustralianandAsianmarketentryinparalleltoUS§  Strongcashposi)onfromrecent$12.5Mcapitalraise

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