Nanosonics : 2021 Annual General Meeting Chairman's and CEO's Address

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Nanosonics Limited

2021 Annual General Meeting

Chairman's and CEO & President's Address

Introduction

Good morning ladies and gentlemen. My name is Maurie Stang, and it's my pleasure to welcome you to the Nanosonics 2021 Annual General Meeting. While this meeting is being conducted in a virtual manner, we have made arrangements to ensure shareholder engagement and interaction is strong and do look forward to returning to our normal in person and hybrid formats in the future.

The FY21 year, whilst within a challenging environment, was one of both momentum and innovation across our broad growth agenda. Your company proactively met the needs of its customers, adapting to new and innovative ways of conducting business, whilst expanding its sales, marketing and service offerings across multiple geographies.

The Nanosonics team has delivered a truly impressive series of milestones across all facets of the business. This has resulted in a strategy and capability to continue to grow in a global market that is showing encouraging signs of increased activity and access. In parallel, the fundamentals of both regulation and customer demand for automated reprocessing continue to strengthen and we see a more optimistic landscape going forward.

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People & Culture / Values

Nanosonics' growth and success continue to be driven by our people, our culture, our leadership team and the support and guidance from our Board. This unity and collaboration has ensured the health and safety of our team through the challenges of the global pandemic, whilst delivering a work environment which is capable of continuing to lead in our commitment to "infection prevention for life".

This is illustrative of our people living our Values. "Collaboration, Innovation, Discipline, Agility and the Will to Win" represent core values that define everything we do at Nanosonics.

We recognise the tremendous value that our people provide to the Company. Throughout the year we continued to expand our capacity and capability with the total number of employees increasing 9% to 339.

Our people focus was recognised with exceptional results in the Company's Employee Engagement survey which showed that almost the entire workforce is strongly aligned with the Company's purpose and importantly, understand how their work directly contributes to the goals of the Company.

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Opportunity

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GROWING OPPORTUNITIES

MARKETS

INCREASED TAM IN NORTH AMERICA

50% growth introphonTAM (to 60,000 units), driven by strong ultrasound growth.

IMPROVING FUNDAMENTALS FOR ADOPTION IN EMEA

Increase in guidelines and associated Nanosonics investment in the region.

EXPANDING OUR BUSINESS IN ASIA PACIFIC

Strengthening fundamentals in Japan, and established local presence in China.

PRODUCTS

Driving trophon ® business growth

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INVESTMENTS IN INNOVATION

Continued investments in product expansion strategy with $17.2 million in R&D directed across multiple projects.

NANOSONICS AUDITPRO TM

Launched new digital product platform delivering a unique new digital workflow compliance management system.

NEXT TECHNOLOGY PLATFORM

- CORIS ®

Advanced our next infection prevention technology platformfocussed on one of the most significant issues in instrument reprocessing today- flexible endoscope cleaning.

Nanosonics Limited | Annual General Meeting 20218

As an infection prevention company, the opportunities for Nanosonics are in greater focus than ever. North America has experienced a significant growth in the usage of ultrasound in recent years. This has contributed to an increase in the opportunity for the trophon technology in North America where the addressable market has been estimated to be 50% greater, growing to 60,000 units. We are now witnessing an improvement in the fundamentals for adoption of trophon in the European region with the number of guidelines increasing and Nanosonics is increasing its investment in this region to take advantage of those opportunities. Similarly, we are expanding our business throughout the Asia Pacific including the important markets of Japan and China.

It is very pleasing to see that Nanosonics continues to deliver on the growth of its installed base of trophon® and the associated ecosystem, particularly in the second half of the year, whilst proactively responding to the significant impact of COVID-19 in creating unprecedented headwinds. This clearly demonstrates the strength and resilience of Nanosonics' business model, its solid relationship with GE Healthcare and other global OEMs and distributors, together with the inherent value proposition of its proprietary infection prevention ecosystems and services.

On 28 June 2021 our release of Nanosonics AuditPro™ extended our activities into digital health. AuditPro represents Nanosonics' entry into the important area of data and compliance in infection prevention which in turn has the capacity to increase adoption of automated HLD across more procedures.

Consistent with our significant investment in R&D and innovation is our new CORIS platform in endoscopy which is based on the principles of automation, patient safety

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and enhanced work flow. This development program addresses important unmet needs and has been driven by a deep engagement with customers and industry. Michael will do a deeper dive on this new innovation.

R&D

Beyond these opportunities, we remain firmly of the belief that leveraging our skills into the broader infection prevention market will be our growth engine and significant investment is being made in our R&D program as well as new initiatives under a dedicated group to identify and assess strategic acquisition opportunities across key vectors of infection.

The expanded technology group is now focussed in four areas: core R&D, sustaining engineering, external technology evaluation and Nanosonics Investments. These important capabilities allow us to engage with a combination of organic and collaborative opportunities which support our position of growth and customer focus.

Property

With the ongoing growth opportunities and momentum of the business, we are pleased to announce that in the first half of calendar 2022 we will move to a new global headquarters in the Macquarie Park precinct in NSW. The move will see a significant expansion in the Company's R&D and a doubling in manufacturing capacity and capability as well as increased capacity for operational support for the growing global business.

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The significant investment in the relocation to the new global headquarters is supported by the NSW Government over 3 years through its Investment NSW Jobs Plus Program and positions the Company well for its ongoing global growth by increasing capacity of all functions of the organisation.

1. am particularly excited about the construction of new state-of-the-art laboratories with an almost trebling of laboratory space that will increase our R&D capability and capacity.

We thank the NSW Government and in particular the Premier, Dominic Perrottet, the Honourable Stuart Ayres MP, Minister for Jobs, Investment, Tourism & Western Sydney and the CEO of Investment NSW, Amy Brown for their recognition of the Nanosonics' growth story. We look forward to continuing our growth trajectory with a strong commitment to NSW and the scale up of our facilities will directly support growing international business and exports.

ESG and Diversity

Nanosonics' Sustainability Report contains an extensive amount of information on the environmental, social and governance practises that are core to the Company's mission, future success and represents the Company's DNA. I trust shareholders will see that the Report showcases our approach to caring for our employees, customers, suppliers, and critically, our investment in social responsibility and the environment.

In our Sustainability Report, I was very proud to see the scale of recycled "end-of-life" products and service parts that were responsibly recycled, as well as the increasing

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