SomnoMed : FY17 Investors Presentation 24.08.2017

Investor Presentation‌‌‌‌‌‌‌‌

Financial Year 2016/17

entation | Slide 0

Investor Pres

This document has been prepared as a summary only, and does not contain all information about the Company's assets and liabilities, financial position and performance, profit and losses and the rights and liabilities attaching to the Company's securities. This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by SomnoMed Limited. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future.

Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of future sales, expected revenues and costs, statements relating to the continued advancement of the Company's operations and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as "aim", "could", "estimate", "expect", "intend", "target", "forecast", "future", "will", "may", "potential", "should" and similar expressions are forward-looking statements.

Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results and projections of future performance to differ from these forward looking statements as a result of known and unknown risks, uncertainties and other factors not anticipated by the Company or disclosed in the Company's published material. Many of these factors are beyond the control of SomnoMed Limited and may involve subjective judgement and assumptions as to future events, which may or may not be correct.

The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document.

Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position.

Renew Sleep Solutions ("RSS") - Seven centres opened in 2016/17

• Head office organisation, reimbursement and claims capabilities fully established

• Seven centres opened across six states in the US in the first year of trading and well ahead of plan

• Centre investment and start-up cost below model assumptions

• Patient flow volumes tracking to plan

• Centre operating costs and head office expenses in line with expectations

• Breakeven reached in centres open for 5 months or longer

SomnoMed Core - Continued strong performance in Europe and US returning to growth

• Global MAS sales volumes +15.5%; group revenues +12%

  • Good return to positive growth in US in fourth quarter

  • Consistently strong sales performance and growth in Europe

  • APAC flat due to lack of reimbursement and slow adoption of COAT™

• MAS gross margin improved from 68.6% to 70%, with group gross margin up to 58.4%

• EBITDA up 60% to $2.366m (excluding RSS)

Global unit sales growth Units Global revenue growth A$'000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

43,438 $30.3m 51,355

Other revenues

+20.0%

58,983 68,100

Units

MAS

revenues

+10.6%

+15.5%

60,000

50,000

40,000

30,000

20,000

10,000

0

$34.4m $49.3m $44.1m

2013/14 2014/15 2015/16 2016/17

2013/14 2014/15 2015/16 2016/17

Units Sold

Other revenues MAS Revenue