Genetron : Q4 Presentation Slides

Disclaimer

The following presentation has been prepared by Genetron Holdings Limited ("Genetron Health" or the "Company") solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities or otherwise. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. Nothing contained in this document shall be relied upon as a promise or representation as to the past or future performance of the Company. Past performance does not guarantee or predict future performance. You acknowledge that any assessment of the Company that may be made by you will be independent of this document and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company.

This document contains certain statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1953, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company's future financial or business performance, strategies or expectations. These statements typically contain words such as "believe," "may," "will," "could," "expects" and "anticipates" and words of similar import. Any statement in this document that is not a statement of historical fact is a forward-looking statement and involves known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. There can be no assurance that the results and events contemplated by the forward looking statements contained herein will in fact occur. None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of assumptions, fully stated in the document. The Company also cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and which may be beyond the Company's control. The Company assumes no duty to and does not undertake to update any forward-looking statements to reflect actual results, changes in assumptions or changes in factors affecting these statements. Factors that may materially affect our results and those risks listed in filings with the Securities and Exchange Commission.

This document also contains non-IFRS financial measures, the presentation of which is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with International Financial Reporting Standards. In addition, the Company's calculation of these non-IFRS financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. The reconciliation of those measures to the most comparable IFRS measures is contained within this document or available at our websitehttp://ir.genetronhealth.com.

This document speaks as of March 25, 2021. Neither the delivery of this document nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

China's leading precision oncology company

Business Lines

TAM

Market potential in China(1)

Genetron

• ● One of top LDT players with leading market shares in brain, digestive and lung cancers

• ● Most approved IVD products by NMPA; S5+Lung 8 NGS solution with 2-day TAT

Source: (1)Frost & Sullivan

Market potential as of 2023

Table of Contents

2020 & Recent Events Recap

2020 & Recent Events Recap

Joined National Major R&D Project	HCCscreenTM picked	Exclusive partnership for HCCscreenTM with	Exclusive licensing deal
(lung/digestive cancer screening)	by NCC/ Wuxi government project	Sino Biopharm's subsidiary, Chia Tai Tianqing	with ImmunQuad for MRD in blood cancer

(1)Chinese Anti-Cancer Association Guidelines for Patients with Primary Liver Cancer

5

Early Screening - HCCscreenTM Updates

Early Screening - Updates on HCCscreenTM

HCCscreenTM is powered by Genetron's innovative and proprietary Mutation Capsule technology

New data on our prospective cohort studies: reported 88% sensitivity, 93% specificity and 41% PPV

Massive market opportunity

Picked by the NCC/ Wuxi government for a public health initiative

•  Partnership with CTTQ (~30%+ share in hepatitis antiviral drugs, 7,000+ sales reps and 2,000+ hospitals)

•  Received U.S. FDA breakthrough designation - expands geographical reach

Three Commercialization Pathways

88%

93%

HCCscreenTM Investigational Study (the "HIT" study)

•  A collaboration study started in 2019 with the National Cancer Center

•  A multi-center study

•  2,000 HBsAg+ patients were tested by HCCScreenTM and Ultrasound + AFP

  Sensitivity

  (76/86)

  95%CI (80%, 94%)

  Specificity (1419/1529)

  95%CI (91%,94%)

  Positive Predictive

  Value (PPV)

  (76/186)Negative Predictive

  Value (NPV) (1419/1429)

•  Completed follow-up work for 1,615 cases

Clinical Diagnosis
HCCscreenTM Test	HCC	Non-HCC	Total
Test - Positive	76	110	186
Test - Negative	10	1,419	1,429
Total	86	1,529	1,615

HCCscreenTM demonstrated superior sensitivity and comparable specificity versus SOC (Ultrasound+AFP)

Sensitivity

95% CI, 80%-94%

HCCScreen (n=1615)

95% CI, 91%-94%

Specificity

95% CI, 60%-80%

Ultrasound+AFP

93%

95%

95% CI, 93%-96%

HCCScreen (n=1615)

Ultrasound+AFP

HCCscreenTM demonstrated excellent sensitivity in detecting early-stage HCC. These patients are expected to have much better prognosis than advanced-stage

Sensitivity

<3 cm

HCCscreenTM Test

Test positive

Test negative

TotalTumor Size

28	22	7	57
5	1	1	7
33	23	8	64

3-5 cm

>5 cm

Final analysis of HCCscreenTM demonstrated higher confidence intervals compared to preliminary data

Sensitivity	Specificity
95% CI, 80%-94%	95% CI, 62%-100%	95% CI, 91%-94%
92%
88%

HCCScreen (n=1615)Preliminary HCCScreen Data (n=297)

93%

93%

95% CI, 89%-96%

HCCScreen (n=1615)Preliminary HCCScreen Data (n=297)

2

Early Screening - Mutation Capsule

Mutation Capsule - Our Innovative and Proprietary Technology

MC library

Features and advantages:

•  In parallel profiling of mutation and methylation markers

•  De novo discovery of methylation sites

•  Support multiple tests from a single ctDNA sample

•  Strong performance with significant time and cost savings

cfDNA

4

4Q and FY2020

Financials

4Q and FY 2020 Revenue

4Q and 2020 revenue growth driven by both the provision of LDT services, particularly in early screening, and the sale of IVD products

•  LDT: Driven by early screening and higher ASP, offset by COVID-19 resurgence. New regulation should benefit leading LDT companies like Genetron

•  IVD: Driven by assays and sequencing platforms sold; strong momentum in hospital partnerships

•  Development services: Continued strategic shift to biopharma services

Note: (1)Unaudited financial numbers

Winning the China market - entering into hospitals

•	•
Initially hospitals unable to run complex NGS testing in house	Generate incremental revenue for hospitals
•	•
Third party labs provide service to hospitals	Currently the only pathway to public medical insurance
•	•
Fast adoption of latest technology	Lengthy large size clinical trials required by NMPA

• (1) The number of total in-hospital partners include both sales of LDT services and IVD products.

• (2) By December 31, 2020

16

4Q and FY 2020 Gross Margin

Note: (1)Unaudited financial numbers

4Q and FY Operating expenses

Selling expenses

Note:

(1)

Percentage of total revenue

Unaudited financial numbers

Administrative expensesPercentage of total revenue

R&D expensePercentage of total revenue

4Q and FY 2020 unaudited financial highlights

Fourth Quarter	Full Year
(in RMB million)	Q4 2019	Q4 2020	Y/Y Change	FY 2019	FY 2020	Y/Y Change
Revenue	102.9	133.9	30.1%	323.4	424.5	31.3%
Diagnosis & monitoring- LDT	65.3	96.9	48.5%	234.6	291.7	24.4%
Diagnosis & monitoring- IVD	20.5	26.5	29.5%	34.9	94.0	169.2%
Development services	17.2	10.5	(39.0%)	53.9	38.8	(28.1%)
Gross margin	44.5%	62.8%	1830bps	44.8%	61.3%	1650bps
Selling expenses (% of rev)	67.0%	53.7%	(1330bps)	78.4%	58.2%	(2020bps)
R&D expenses (% of rev)	31.4%	39.5%	810bps	28.4%	35.1%	670bps
Admin expenses (% of rev)	27.9%	33.1%	520bps	36.2%	29.8%	(640bps)
Operating loss	(84.8)	(88.9)	(306.9)	(268.4)	-
Net loss	(134.8)1	(73.2)	(676.0)	(3,069)1	-
Non-IFRS loss2	(86.4)	(62.5)	(280.2)	(215.7)	-
Ending cash balance3	262.2	1,516.1	262.2	1,516.1	-

-

• 1. Including RMB2.823 billion in fair value loss of financial instruments with preferred rights for 2020

  -

  -

  -

• 2. Non-IFRS loss represents net results excluding share-based expenses, fair value change and other loss of financial instruments with preferred rights. Please refer to appendix for the reconciliation of non-IFRS loss for the year/period to net loss for the year/period

3. Cash and Cash Equivalents

2021 Financial Guidance

Note: (1)Unaudited financial numbers

1

Milestones and Growth Strategy

Upcoming pipeline catalysts

Screening:

March 2021

2Q 2021

2021

2023

Diagnosis & Monitoring/ CDx:

2Q 2021

2021

2H 2021 - 1H2022

2022

2022

Well-positioned to become a prominent liquid biopsy player

Diagnosis

(LDT)

Liquid biopsy early screening (CRC + lung)

Liquid biopsy

MRDLiquid biopsy early screening

(liver)

4

Appendix

Reconciliation of non-IFRS net loss to net lossfor the period

UNAUDITED NON-IFRS FINANCIAL MEASURES

For the three months ended,

December 31, 2019

December 31, 2020

RMB'000

RMB'000

Loss for the period	(134,798)	(73,222)
Adjustments:
Share-based compensation	4,390	10,729
Fair value loss of financial instruments with preferred rights	17,439
Other loss of financial instruments with preferred rights	26,542
Non-IFRS Loss	(86,427)	(62,493)
Attributable to:
62

Owners of the Company

(86,427) (62,493)