1st : Investor Presentation - Acquisition of Visionflex

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Acquisition of Visionflex
and capital raising
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January 2022
Klaus Bartosch	Richard Rogers
ersonal	Chief Financial Officer
Chief Executive Officer

Agenda

only	1.	Transaction Summary
	2.	Visionflex overview
use	3.	The combined business
4.	Leadership team
	5.	Financials
ersonal	6.	Capital Raise
	Copyright 2022 1st Group Ltd ACN 138 897 533 • Address: Level 4, 17 Bellevue Street, Surry Hills NSW 2010 2

Transaction Summary

Acquisition

only	Visionflex
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	Strategic
		Rationale
ersonal		Equity Raising
		Financial Metrics
		Timetable /
		Approval

• 1ST to acquire 100% of Visionflex for 100% scrip consideration such that, prior to the Equity Raising below, the Vendors will hold 49% of the equity of the combined group (on an undiluted basis - excluding 1st Group options)
• Provides telehealth solutions including the design, manufacture and global distribution of a range of innovative clinical telehealth products, including multi-functional devices capable of facilitating remote medical examinations, powerful clinical telehealth video conference and diagnostic tools
• Solutions are used by clients across major government departments and large corporate groups, principally in Australia but also in the USA, UK, India, UAE and Spain. Major clients include NSW Health, Queensland Health, SA Health, WA Health, Royal Flying Doctor Service and Exxon Mobile
• Established in 2014 and headquartered in Australia with 16 employees, led by management and engineers with a deep expertise in the medical device and telehealth sectors
• This is a transformational transaction for 1ST bringing substantial operational, financial and strategic benefits
• Expansion of product portfolio, increased distribution footprint, additional high growth recurring revenue from a trophy client base and cross-sell and up-sell opportunities
• $3m equity raising via:
• • $0.5m a non-renounceable entitlement offer to eligible shareholders (Rights Issue) at the same price as the Placement, and
  • $2.5m 1ST shares being issued to Adcock Private Equity via a placement at an issue price of $0.01 per share
• Visionflex generated $2.3m of revenue in FY21 with gross margin exceeding ~70%
• Combined pro forma FY21 revenue of $7.7m before any synergies
• Share holder approval will be sought at an EGM expected to be held in early March. A Notice of Meeting and the date for the EGM will be provided once Independent Expert Advice on the purchase has been obtained
• The Acquisition is expected to be completed immediately following the EGM in March

Copyright 2022 1st Group Ltd ACN 138 897 533 • Address: Level 4, 17 Bellevue Street, Surry Hills NSW 2010

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Visionflex - Proprietary integrated clinical telehealth solutions

Visionflex designs, manufactures and distributes a range of innovative clinical telehealth products to

bridge the gap between caregiver and clinician, so the patient receives the best possible care

History

• Established in 2014 to develop medical software, and manufacture and market specialised image capture and storage systems for the medical industry
• Headquartered in Australia with 16 employees, including its co-founder, Mike Harman

Customer base

Used by clients across major government departments and large corporate groups in Australia

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Competitive Differentiators

• Unique Product: Easy-to-use,low-cost telehealth software platform that delivers health services to remote patients. Devices can connect via 4G, 5G, Star Link, or other Internet services
• Global Reach: Serves the Middle East, Asia, Europe, Antarctica, North America and Australia
• Scalability: Platform is highly flexible and can be customised to suit telehealth services of all sizes
• IP & Technology: Delivers diagnostic-quality video and audio coupled with high-speed data transmission and end-to-end encryption
• Collaborative Clinical Tools: Features unique collaborative clinical tools, including TrueSteth - a revolutionary digital stethoscope that transmits stethoscope audio, without any loss of quality
• Integration: Visionflex telehealth devices and software integrate with most global medical record & practice systems, and also work with most other video conferencing platforms

Copyright 2022 1st Group Ltd ACN 138 897 533 • Address: Level 4, 17 Bellevue Street, Surry Hills NSW 2010

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Acquisition Highlights

Benefits of acquisition flow to all shareholders

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Expands product portfolio

Product portfolio expands to an end-to-end digital patient engagement platform & marketplace, including advanced clinical telehealth solutions

Increased distribution footprint

Immediate expansion of 1st Group's distribution footprint via Visionflex's established networks

Including via clients such as NSW Health, Queensland Health and Royal Flying Doctor Service

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Operational synergies

Cross-sell and up-sell opportunities and operational cost saving opportunities

Adds rapidly growing revenue

Adds $2m+ of additional revenue from a trophy client base through several secured contracts with major government departments (in NSW, Queensland, SA, WA) and large corporate groups

Market Positioning

Positions 1st Group to take advantage of the rapidly growing global telehealth market Australian government committed to telehealth (rebates since March 2020 exceed $4.4bn)

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Lowers risk

Reduces risk through diversifying the product portfolio and client base

Bolsters Leadership

Additional management and Board capability

Copyright 2022 1st Group Ltd ACN 138 897 533 • Address: Level 4, 17 Bellevue Street, Surry Hills NSW 2010

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