Announcement PDF ImpediMed Limited 1/50 Parker Court Pinkenba, QLD, 4008 Australia E: investorrelations@impedimed.com W : impedimed.com 30 April 2025 Companies Announcements Office Australian Securities Exchange Investor Presentation ImpediMed Limited (ASX:IPD) releases the attached presentation to be delivered to investors and analysts today. Approved for release by the Board of ImpediMed Limited. For more information, contact Leanne Ralph, Company Secretary, at leanne.ralph@bellev.com.au Impedimed Limited Q3 FY25 Results April 2025 Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 1 Forward Looking Statements This presentation contains or may contain forward-looking statements that are based on ImpediMed Limited (ImpediMed) management’s beliefs, assumptions and expectations and on information currently available to management. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements, including without limitation our expectations with respect to our ability to expand sales and market acceptance in the US and Australia including our estimates of potential revenues, costs, profitability and financial performance; our ability to develop and commercialise new products including our ability to obtain reimbursement for our products; our expectations with respect to our clinical trials, including enrolment in or completion of our clinical trials and our associated regulatory submissions and approvals; our expectations with respect to the integrity or capabilities of our intellectual property position. Any forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. While management has prepared this information based on its current knowledge and understanding and in good faith, there are risks and uncertainties involved which could cause actual results to differ from projections. You should not place undue reliance on forward-looking statements which speak only as of the date when made. Except as required by law, ImpediMed does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. ImpediMed may not actually achieve the plans, projections or expectations disclosed in forward-looking statements. Actual results, developments or events could differ materially from those disclosed in the forward-looking statements and no representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including ImpediMed Limited). Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 2 Agenda 1 Strategy Recap 2 Q3 Key Highlights 3 Business Overview 4 Financial Performance 5 Q4 FY25 Outlook Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 3 Immediate strategy Execute to breakeven with a focus of sales, marketing and clinical execution in BCRL 12-Month Priorities Next 12 months: Execute towards break even July 2025 Next 1-2 years: Innovate and expand GOAL 1 GOAL 2 GOAL 3 GOAL 4 GOAL 5 BCRL sales execution World-class customer experience Progress to break even Expand reach in oncology Develop new markets • Continued focus on sales execution with urgency • Manage cash burn • Support LPP implementation and patient utilisation • Progress towards break even • Body composition expansion • ROW activities initiated with market assessments underway • Execute on discussions with large IDNs on systemwide implementation • Leg lymphoedema • Continued progress to towards payor coverage target 85% through support of Academic Societies and KOLs • Heart failure development initiated through clinical research partnerships with SOZO Pro • Deliver actionable insights at the point of care Ensure everything we do is underpinned by quality and integrity Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 4 Key Q3 highlights Financial • • • • • Record revenue $3.4m. Record cash receipts $4.1m. Quarterly operating cash outflow ($3.5m). US$15m growth capital facility established, with US$10m Tranche 1 drawn in the quarter. Cash balance $27.9m, equating to 8.1 quarters of operating cash flow. Reimbursement • Coverage remained static with 25 states now above 80% coverage equating to 258.5M covered lives. • Extensive initiatives underway to support customers and update guidelines. • Despite low reimbursement in some states, coverage is considered sufficient to achieve sales that will meet the Company’s stated goals. Sales • 36 SOZO units sold vs 49 Q2FY25. • US 22 SOZO units +10% on Q2 FY25, ROW 14 SOZO units -52% on Q2 FY25. • Confidence in pipeline driving measured expansion of customer facing staff. • 19% increase in TCV for contracts renewed in the quarter. Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 5 Business Overview - Sales Continued focus on accelerating BCRL • Solid foundation set - ARR business model, 1,000+ devices deployed, leading US healthcare customers, NCCN & NAPBC guideline inclusions. • Current reimbursement levels considered sufficient to support sales needed to achieve Company’s stated goals. • Continued focus on cost control. Key Accounts, IDNs and NCCN Centres remain a focus • High quality leading healthcare centres added and renewed in the quarter including: Health, University of Miami, Sutter Health, Baylor Scott & White, University of Rochester, University of Colorado, University of Florida, UC Health, Texas Breast, UT San Antonio, RWJ Barnabas, Baptist Health, Ohio Health, Endeavour Health. • Expansion within existing accounts evident: SOZOs in 23 of 33 NCCN Member Institutions, with a total of 88 SOZOs, equating to ~4 SOZOs per institution. • Master Services Agreement (MSA) in place with 28 IDNs – enabling more rapid system wide expansion. NAPBC focus has begun with early positive signs • Significant opportunity with 145 of 570 NAPBC centres as clients and actively building the pipeline. Renewals • Positive momentum continues with an average 19% increase in TCV of contracts renewed in the quarter. Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 6 Business Overview – Focus on sales conversion Lead generation was an initial area of focus • Record number of leads generated in the quarter resulting from the following initiatives: • Improvement in field force productivity metrics and implementation of new systems such as AcuityMD and Seamless AI. • Lymphoedema awareness activities, including the first-time participation at ONS Conference, generated over 500 new leads. American Society of Breast Cancer conference commencing 30 April with significant attendance by ImpediMed team. • Focus now on conversion of leads to sales • Appointment of Scott Long as new SVP of Sales: • • 30+ years in breast cancer medical device sales, predominantly in start-ups. • Extensive relationships with breast surgeons and high potential sales candidates. Sales leadership and executive team spending more time in the field and upskilling the sales teams to execute. • • 2 additional KAEs with breast cancer experience being recruited to support accelerating qualification and conversion of leads into sales. Focus on expanding in key accounts with existing MSAs totally >750 identified opportunities. Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 7 Business Overview - Other US tariffs • After conducting a preliminary assessment, the Company does not expect any material impact. • The vast majority of the value in a standard 3-year contract is derived from the various software applications not subject to tariffs. • ImpediMed manufactures SOZO in the United States utilising third party manufacturers and a substantial number of components are manufactured in the US. • ImpediMed maintains a high level of devices and component inventory. In Q4 FY25 the Company will purchase an additional $1.2m of key electronic components, at pre-tariff pricing, ensuring continuity of supply against potential external supply shocks. SOZO Pro limited launch • SOZO Pro launched initially for clinical research applications. • Onboarding users and acquiring valuable customer feedback. • Building data sets in new indications such as heart failure, creating a foundation for future growth. Positive update to National Comprehensive Cancer Network (NCCN) Guidelines • The NCCN updated its Breast Cancer Clinical Practice Guidelines as of January 2025. • The guideline now includes the words "Consider baseline lymphedema screening, as per NCCN Guidelines for Survivorship" in BINV-1 which are the guidelines for Invasive Breast Cancer. Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025ImpediMed Limited. 8 Cash Flow Summarized Cash Flow In thousands AUD Receipts from customers Research & development Product manufacturing & operating costs Advertising costs Staff costs Administration and corporate costs Interest received Government grants and tax incentives Net operating cash in/(out)flow: Q1 Actual FY25 Q2 Actual Q3 Actual 2,718 (88) (314) (301) (4,899) (2,199) 279 (4,804) 3,419 (78) (389) (117) (4,801) (1,637) 217 915 (2,471) 4,059 (57) (643) (505) (4,789) (1,731) 200 (3,466) Purchase of intangibles Net investing cash in/(out)flow: (447) (447) (144) (144) (405) (405) Transaction costs from capital raise Proceeds from borrowings Operating leases Net financing cash in/(out)flow: (107) (107) (115) (115) (1,303) 15,967 (86) 14,578 (5,358) (2,730) 10,707 (626) 1,775 (487) 24,632 18,648 18,648 17,693 17,693 27,913 Net cash in/(out)flow: Net foreign exchange differences Cash at beginning of period Cash at close of period Record quarterly cash receipts of $4.1m. • Q3 operating cash outflow of $3.5m, in line with forecast. • Product manufacturing & operating cost increased with a planned inventory build. Forecasting an additional one-off $1.2m payment in Q4 for key electronic components, at pre-tariff pricing, to ensure continuity of supply. • Increased advertising cost reflects investment in conferences. The recent ONS conference generated a substantial number of new leads. The upcoming ASBrS conference runs from April 30 to May 4 is ImpediMed’s largest conference investment. • FY25 cash expenditure is forecast to be 10% below FY24 and cost control remains a focus. • $US10m of the $US15m debt facility drawn. • Net cash balance $A27.9m, equal to 8.1 quarters of operating cashflow. Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 9 Revenue and Cash Receipts Revenue Quarterly Cash Receipts A$ millions A$ millions • Q3 FY25 revenue up 2% vs Q2 FY25. • Record quarterly cash receipts of $4.1m. • Q3 North America revenue up 5% vs Q2 FY25. • Q3 operating cash outflow of $3.5m in line with budget. • 28% growth versus Q3 FY24. • Cash to fund 8.1 quarters of operating cashflow. Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 10 ARR and TCV SOZO Annual Recurring Revenue1 SOZO Core Business Quarterly Total Contract Value2 A$ millions A$ millions • ARR up 27% vs Q3 FY24; up 10% vs prior quarter. • Price of renewed contracts increased 19% on average. • ARR continues to grow as quarterly TCV gain translates into annual revenue. • Significant number of Key Accounts, IDNs and NCCN Centres renewed in the quarter. 1.Annual Recurring Revenue (ARR) represents the amount of revenue reasonably expected to be recognised for the next 12-month period based on existing contracts, assuming installation upon sale and no churn. The amounts shown are as reported. The exchange rate used for Q3 FY25 ARR calculation was 0.62384 (Q2 FY25: 0.64720). 2.Total Contracted Value (TCV) relates to new and renewed contracts and includes any consideration for the sale of SOZO units as well as the total licence fees for the duration of the signed contracts. Typically, these contracts are for a period of three years. Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 11 Sales Global Installed Base Units Patient Tests (000s) ROW Installed Base U.S. Installed base 21% 3-year CAGR1 • 36 SOZO Units Sold vs 49 Q2FY25 • US units sales increase by 10% to 22 units from 20 in Q2FY25 • Reduction was in ROW units, 14 units in Q3FY25 vs 29 in Q2 FY25 • Churn remains low at <3% pa • • 72,000 Patient Tests in Q3 FY25 Up 3% versus Q2 FY25 1.Compound Annual Growth Rate. Quarterly patient tests Q3 FY22 to Q3 FY25 Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 12 Q3 FY25 vs Outlook q Continued to initiate Lymphoedema awareness activities to generate leads q Measured investment to accelerate sales strategy q Continued focus on private payor coverage q Drive improvement in sales metrics q Optimise contract renewal outcomes q Continued focus on costs Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 13 Outlook for Q4 FY25 q Significant increase in US sales expected in Q4 and the balance of the 2025 calendar year: q Continue to initiate Lymphoedema awareness activities to generate leads. q Further measured investment to accelerate sales strategy. q Drive improvement in sales metrics. q Continued focus on private payor coverage. q Optimise Lymphoedema Prevention Programs (LPP) to support customer utilisation and support renewals. q Continued focus on costs. q Round out Australian executive team with appointment of Chief Product Officer and Head of Business Development. Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 14 The Value Proposition Multiple Regulatory Clearances Reimbursement 75% of US Insured Lives covered Critical mass coverage in 25 US States Lymphoedema Heart Failure Renal Failure Body Comp Lymphoedema prevention Initial TAM $600M Guideline and Standard Inclusion Multi-Application TAM significantly larger NCCN & NAPBC Platform Technology Lymphoedema Body Comp Heart Failure Renal Failure Successful Global RCT 1000+ Devices deployed Globally Growing Pipeline exceeds required devices to breakeven Proprietary, do not reproduce, distribute, or excerpt without written permission from ImpediMed. ©2025 ImpediMed Limited. 15 16