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Digital healthcare for respiratory disease Tony Keating CEO and Managing Director [email protected] Investor Presentation April 2018 ASX: RAP

Digital healthcare for respiratory disease · and management tools for smartphones ... Community-acquired pneumonia (n=360) 90% (95%CI,86-93) ... , double-blind US study with endpoints

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Digitalhealthcareforrespiratorydisease

TonyKeatingCEOandManagingDirector

[email protected]

InvestorPresentationApril2018

ASX:RAP

Disclaimer

This presentation has been prepared by ResApp Health Limited (“ResApp”). The information contained in this presentation is a professional opiniononly and is given in good faith. Certain information in this document has been derived from third parties and though ResApp has no reason tobelieve that it is not accurate, reliable or complete, it has not been independently audited or verified by ResApp. Any forward-looking statementsincluded in this document involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies, many of which areoutside the control of, and may be unknown to, ResApp. In particular, they speak only as of the date of this document, they assume the success ofResApp’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future eventsmay vary materially from the forward-looking statements and the assumptions on which the forward-looking statements are based. Recipients ofthis document (Recipients) are cautioned to not place undue reliance on such forward-looking statements. ResApp makes no representation orwarranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating anyinformation or correcting any error or omission which may become apparent after this document has been issued.

To the extent permitted by law, ResApp and its officers, employees, related bodies corporate and agents (Agents) disclaim all liability, direct, indirector consequential (and whether or not arising out of the negligence, default or lack of care of ResApp and/or any of its Agents) for any loss or damagesuffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.

This presentation is not an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security,and neither this presentation nor anything in it shall form the basis for any contract or commitment whatsoever.

AllamountsinAustraliandollarsunlessstatedotherwise.

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Digitalhealthcareforrespiratorydisease

§ Developingtheworld’sfirstclinically-tested,regulatory-clearedrespiratorydiseasediagnostictestandmanagementtoolsforsmartphones- Noadditionalhardwareneeded

§ Hugeglobalmarket,700million+doctorvisitsannuallyforrespiratorydisease1

§ Compellingclinicalevidencewith2,600+patientsenrolledinAustralianpediatricandadultstudies§ Well-fundedtoexecuteourongoingclinicalstrategy

- ExecutionissuesidentifiedinfirstUSpivotalstudy– notanaccurateevaluation- RevisedUSpediatricstudynowrecruiting,on-trackforcompletionmidCY2018- RecruitinginprospectiveAustralianstudies,resultsexpectedH1CY2018

§ Broadeningproductportfolio- Chronicrespiratorydiseasemanagement,at-homescreeningofobstructivesleepapnea

31.ResAppestimatebasedonOECDdoctorvisitspercapitadataandassuming10%ofvisitsareforrespiratorydisease(basedonUSdata)

Companyoverview

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CapitalStructure(ASX:RAP)

MarketCap. AU$99M

SharePriceas of6April2018

AU$0.15

Shares onIssue 659M

Performance Shares1 93.75M

Options2 6.37M

IncentiveOptions3 51.45M

CashBalanceasof31December2017

AU$5.8M

1. IssuedonachievingAU$20Mofannualrevenueoronanacquisition2. 4.5M,exercisepriceof28c,expire29/4/19;1.87M,exercisepriceof

30c,expire29/4/193. Issuedtodirectors,staffandscientificadvisoryboard

BoardofDirectorsDr RogerAston Non-Executive Chairman(ChairmanofRegeneus,PharmAust and Immuron,Non-Exec. DirectorofOncosilMedical,formerlyCEOofMaynePharma,CambridgeAntibody,co-founderofpSivida)

Dr TonyKeating Managing DirectorandCEO(formerlyDirector,CommercialEngagement atUniQuest,engineeringmanagementroleswithExa Corporation)

Mr NathanBuzza Non-ExecutiveDirector(formerly founderof Commtech Wireless,EVPAzureHealthcareandnon-executivedirectorofAlcidion)

Mr ChrisNtoumenopoulos Non-ExecutiveDirector(ManagingDirectoratTwenty1Corporate,Non-Exec.DirectoratRaceOncology,formerlyatCitigroup,IndianOceanCapitalandCPSCapital)

SubstantialShareholdersFidelityInternational:9.23%FreemanRoad:6.84%IanFrancisReynolds:5.60%

Diagnosisofrespiratorydiseaseisthemostcommonoutcomefromavisittothedoctor

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AcuteconditionsURTI,influenza,bronchitis,bronchiolitis,pneumonia,pertussis,croup,reactiveairwaysdisease

Chronicconditionsasthma,COPD,cysticfibrosis,bronchiectasis

§ 700M+ doctorvisitsp.a.globally1 forrespiratorydisease→ 125M inUS2 (10%ofallvisits)→ 6-8M inAustralia3

§ Mostcommonreasonsforhospitaladmission4→ Bronchiolitis(infants)→ Asthmaandpneumonia(children)

§ US$10.5Bp.a.directUShospitalcostsforpneumonia5

§ HighprevalenceandgrowthinAsia

1.ResApp estimatebasedonOECDdoctorvisitspercapitadataandassuming10%ofvisitsareforrespiratorydisease(basedonUSdata)2.Ambulatorycasevisits,NationalAmbulatoryMedicalCareSurvey20103.AustralianLungFoundation4.HCUPStatisticalBrief#1485.HCUPStatisticalBrief#160

Diagnosedtodayusingstethoscope,imaging(x-ray,CT),spirometry,bloodand/orsputumtests→Timeconsuming,expensive,subjectiveandnotveryaccurate

Easytouse,instantdiagnosisusingonlyasmartphone§ Machinelearningtechnology developedbyAssociate

ProfessorAbeyratne atTheUniversityofQueensland- Usessignaturesincoughsoundstoinstantlydifferentially

diagnoserespiratorydisease- Abletoautomaticallyimproveperformanceandlearnnew

diseasesfromnewclinicaldatasets§ Usesthebuilt-inmicrophoneinmodernsmartphones

- Noadditionalhardware/accessoriesrequired- Real-timeon-deviceanalysis,noconnectivity/cloudneeded

§ Growingpatentportfolioanddataassets- CorepatentinnationalphaseexaminationinUS,Australia,

Europe,China,Japan,SouthKorea;threepatentapplications- Proprietarydataset,over3,800patients’(includingUS

SMARTCOUGH-Cdata)coughandbreathingsoundsandmatchingclinicalsigns,symptomsanddiagnosis

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Verifiedbycompellingpediatricclinicalevidence

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Breathe-EasyPediatric Study(populationofpatientswithbroadrespiratorysymptoms)

Positive PercentAgreement

NegativePercentAgreement

PrimaryUpperRespiratoryTractInfection(n=53) 92%(95%CI, 82-98) 89%(95%CI,86-91)

Croup(n=57) 100%(95%CI, 94-100) 96%(95%CI, 94-97)

Lower RespiratoryTractDisease(n=492) 90%(95%CI, 87-93) 92%(95%CI, 86-96)

Asthma/ReactiveAirwaysDisease(n=234) 92%(95%CI,88-95) 89%(95%CI,85-92)

Bronchiolitis(n=101) 95%(95%CI, 89-98) 94%(95%CI, 92-96)

Pneumonia(n=123) 89%(95%CI,82-94) 79%(95%CI,75-83)

Breathe-EasyPediatricStudy(2015-)Joondalup HealthCampusandPrincessMargaretHospital,PerthAustralia1,127patients(continuing)- Latestanalysis(announced22/6/17)optimised tomatchdesignofUSSMARTCOUGH-Cstudy- Comparisontoclinicaldiagnosis(incl.CXR,labtests)- Achieved90-100%PPAand89-96%NPAforURTI,croup,LRTD,asthmaandbronchiolitis- Achieved89%PPAand79%NPAforpneumonia

AsperFDAguidance,positiveandnegativepercentagreement(ratherthansensitivityandspecificity)areusedwhenanewtestiscomparedtoanon-referencestandardsuchasaclinicaldiagnosis.

2013PediatricProof-of-ConceptStudySardijto Hospital,Indonesia- 91patients- FundedbytheBill&MelindaGatesFoundation- Achieved>90%accuracyfordiagnosisofpneumoniaandasthmavspneumonia

2013 PediatricProof-of-Concept Sensitivity Specificity Accuracy

Pneumoniavs.allrespiratory 94% 100% 96%

Asthmavs.pneumonia 100% 80% 90%Publishedinpeer-reviewpublications:Abeyratne etal.,AnnalsofBiomedicalEngineering(2013)andKosashi etal.,IEEETransactionsinBiomedicalEngineering(2015)

Buildingstrongclinicalevidenceinadults

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Breathe-EasyAdultStudy(2015-)Joondalup HealthCampus,PerthAustraliaandWesleyHospital,BrisbaneAustralia1,387adultpatients(continuing)- Latestanalysistargetedintendeduse

populationstoprepareforpivotalstudies- Achievedhighlevelsofaccuracyindiagnosis

ofpneumoniaandacuteasthma- DiagnosisofCOPDandchronicasthma

comparedtothegoldstandardofLFT

Breathe-EasyAdultStudy(comparedtoclinicaldiagnosis,populationofpatientswithbroadrespiratorysymptoms)

Positive PercentAgreement

NegativePercentAgreement

Community-acquiredpneumonia(n=360) 90%(95%CI, 86-93) 88%(95%CI,83-92)

Acuteasthma(n=54) 91%(95%CI, 80-97) 88%(95%CI, 85-91)

Breathe-EasyAdultStudy(comparedtolungfunctiontesting,populationofpatientsreferredtolungfunctiontesting) Sensitivity Specificity

COPD(n=41) 89%(95%CI, 74-96) 87%(95%CI,79-92)

Chronicasthma(n=34) 87%(95%CI, 73-97) 90%(95%CI, 83-95)

Achievingbreakthroughperformanceindiagnosis§ Lowerrespiratorytractdiseasediagnosis

- Effectivetreatmentneedsidentificationoflowerrespiratorytractinvolvement- Correctlydetectedlowerrespiratorytractinvolvementin97%ofcasesinitially“missed”byexperienced

cliniciansusingastethoscope

§ Causeofpneumoniadiagnosis“Weneedfaster,less-expensivediagnostictestsfordoctorstoaccuratelydiagnosethecauseof

pneumonia sotheycaneffectivelytreatit”USCDC(2015)1

- Incorrectdiagnosisleadstounnecessaryandineffectiveantibioticuse- Identifyingthecausetodayistimeconsuming,costlyandonlyavailableintertiaryhospitals- Preliminaryresultsdemonstratedseparationofbacterialandatypicalfromviralpneumoniawith89%-90%

accuracy

91. USDepartmentofHealthandHumanServicesPressRelease,Feb25,2015

(http://www.cdc.gov/media/releases/2015/p0225-pneumonia-hospitalizations.html)

Uniqueopportunitytodeployalongsidetelehealth,oneofthefastestgrowingtrendsinhealthcare§ UStelehealthislarge,andgrowingrapidly§ Providesbenefitsacrossthehealthcaresystem:payors,patientsandhealthcareproviders

§ 30-50%oftelehealthconsultsareforrespiratorydisease4- Todaythereisnoabilitytouseastethoscopeandnoaccurateremotediagnosistoolsavailable

§ ResApp’s testcanbedeliveredanywhere,anytimewhileretainingaclinician’sinput

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75Mconsultsp.a.

(UStelehealth ‘evisits’in2014estimatedbyDeloitte)1

US$12BUSTAM

(GoldmanSachsUStotaladdressablemarketestimate)3

56%growth

(Growthrateuntil2018estimatedbyIHS)2

1. Deloitte,eVisits:the21st centuryhousecall (August2014)2. IHS,WorldMarketforTelehealth (2014)3. GoldmanSachsEquityResearch,TheDigitalRevolutionComestoUSHealthcare(June2015)4. Uscher-PinesandMehrotra (HealthAffairs,2014)andUnitedHealthcare Presentation

Pursuingatrulyglobaltelehealthopportunity§ SignificantgrowthintelehealthinEuropeandAustralia

- PlantofileforCEMarkinCY2018

§ HugepotentialinAsiaPacificwherethereareover1billionsmartphoneusers1

- HighprevalenceofrespiratorydiseaseandnationwideshortageofdoctorsinChina2

- Chinesemobileonlinemedicalconsultationexamples:

§ Activediscussionsinallregions

111. ForresterResearch2. “DearthofDoctorsinChinaSaidtoPutChildren’sHealthatRisk,CaixinOnline,http://english.caixin.com/2016-01-21/100902234.html3. http://www.hkexnews.hk/app/SEHK/2018/2018012901/Documents/SEHK201801290023.pdf

92Mactiveusers229questionsperminute

Raised$183Min2016Chunyuyisheng(SpringRainDoctors)

PingAnHaoyisheng(GoodDoctor)

192.8Mregisteredusers370,000onlineconsultationsperday

ListingonHKEXin20183RaisedUS$500Min2016

Targetingmultiplemarketsegments

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Telehealth Clinical use Developingworld Directtoconsumer

Marketsize

• 22.5Mrespiratory-relatedUStelehealth consultsp.a.

• 13.4MUSEDvisitsforrespiratorydiseasep.a.1(~4.6Mforchildren)

• 1M childdeathsduetopneumoniap.a.3• 151Mcasesofpneumoniaindevelopingcountriesp.a.3

• 400MiPhoneusers4• 1.6BAndroidusers4• mHealth appmarketexpectedtogrowto$25Bbyendof20175

Valueproposition

✓ Theonlyremoteclinically-accuratediagnostictool available

✓ Easilyintegratedintoexistingplatforms

✓ Reducecosts(<$10vs >$200forx-ray)

✓ Reducetime(x-rayadds~30mins,culturescantakedays)

✓ Lowcost,accurate&fast✓ Usablebynon-medical

personnel✓ IntegratesintoIMCI

framework

✓ Convenience✓ Low cost✓ Consumer

empowerment

Commercialstrategy

Partnerwithtelehealthproviderstoreach10sofmillionsofpatients

Initialuseinemergencydepartments(ED),extendingtoregularclinics

Partnerwithleadinginternationalaidagencies toequipfieldpersonnel

Directtoconsumerviaappstorestotargetgrowthinconsumer-ledhealth

Revenuemodel $5-$10pertestfeefromtelehealth providers

$5-$10pertestfeefromhealthcarepayors

annualsubscriptionfromaidagencies

downloadandpertestfeedirectfromconsumers

1. ResApp estimatebasedonOECDpercapitadata2.NHAMCS(2011)3.WHOestimate

4. Statista (2014estimates)5. Research2guidancemHealth AppDeveloperEconomics(2014)

700MdoctorvisitsinOECDforrespiratorydiseasep.a.1

SMARTCOUGH-Cstudy

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§ Prospective,multi-site,double-blindUSstudywithendpointsofURTI,bronchiolitis,asthma/reactiveairwaysdisease,pneumoniaandlowerrespiratorytractinvolvement- Top-tierUShospitals:MassachusettsGeneralHospital,ClevelandClinic&TexasChildren’sHospital- Recruited1,245patientsaged29daysto12years(December2017– June2017)- Detailsonwww.clinicaltrials.gov (NCT0973282)

§ Top-lineanalysisshowedpredefinedendpointsnotmet§ Studyexecutionissuesidentifiedasskewingtop-lineresults

- Patientstreatedbeforecoughrecordingmade(particularimpactoncroupandasthma/RAD)- Pooraudiorecordingquality(non-patientcoughs,backgroundnoiseandmachinenoiseinterference)- Materialvarianceinfinalclinicaldiagnoses

Aclearpathforward

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§ RevisedUSpediatricstudy,SMARTCOUGH-C-2underway- Detailsonwww.clinicaltrials.gov (NCT03392363)- Recruitingupto1,667patientsaged29daysto12years- SamerecruitmentsitesatSMARTCOUGH-C- Upgradedrecordingapp andtraining,on-sitedataverification- Centralised,independentclinicaladjudication- 640patientsrecruitedasof9th ofMarch2018- AudioQAshowinghighqualityaudio,on-trackforcompletioninmid

CY2018

§ Broadenedpediatricstrategywithprospective,double-blindAustralianstudyunderwaytosupportCEandTGAfilings

§ Prospective,double-blindAustralianadultclinicalstudyunderway(USadultstudiesplanned)

Proof-of-concept Large-scalestudies Pivotalstudies Regulatory submissions Commercialisation

Acuterespiratorydisease

Chronicrespiratorydisease

Otherindications

Broadeningproductportfolio

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Pediatric

Adult

ChronicObstructivePulmonaryDisease

Asthma

ObstructiveSleepApnea

AUstudytocompleteH1CY2018USstudytocompletemidCY2018

AUstudytocompleteendCY2018

AUstudytocompleteendCY2018

AUstudytocompleteendCY2018

RegulatorysubmissionbyendofCY2018Prospectivestudyunderway

Improvingchronicrespiratorydiseasemanagement§ 334Mpeoplehaveasthma1

- 17.7MinUS2,30MinEurope3,2.3MinAustralia4

- $30B+p.a.USeconomicburden2

- Patientadherencetoasthmamedicationsisgenerallyverypoor

§ 65MpeoplehavemoderatetosevereCOPD5

- Emphysemaandchronicbronchitis,primarilycausedbysmoking- 3M+peoplediedofCOPDin2012,6%ofalldeathsglobally5

§ OpportunitytomeasuretheseverityofasthmaandCOPD,withoutthecostofadditionalhardwareortheneedtocarryanextradevice- Demonstrated94%accuracyinidentifyingasthmapatientswhorequireadditionaltreatment- IdentifiedinfectiveexacerbationsinCOPDpatientsat91%(95%CI,84-96)PPAand90%(95%CI,80-96)NPA

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1. TheGlobalAsthmaReport2014(GlobalAsthmaNetwork)2. USCDC3. EuropeanLungWhiteBook4. AsthmaAustralia

5. WHO6. InternationalStudyofAsthmaandAllergiesinChildhood7. COPDFoundation

1in7childrenhasasthma6

1in5adultsover45hasCOPD7

Sleepapneaisthemostcommonsleepbreathingdisorderandissignificantlyunderdiagnosed§ Morethan3in10men,andnearly2in10womenhavesleep

apnea1

§ 80%withmoderateorseveresleepapneaareundiagnosed2

§ Untreated,sleepapneahasbeenlinkedtoheartdisease,strokeandtype2diabetes

§ Majorbarrierstodiagnosis:

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Sleeplaboratorypolysomnography(PSG)

RequiresreferralLongwaittimes$600-$5,000pertestUncomfortable&unfamiliarenvironment

Homesleeptesting(HST)

Requires referral&trainingUpto18%failurerate$150-$500pertestUncomfortable

1. Peppard etal.,AmJEpidemiol (2013)2. AmericanAcademyofSleepMedicine

Convenient,at-homescreeningofobstructivesleepapnea

§ ReplacetheHSTdevicewithasmartphone onthebedsidetable

§ Easytouseandcomfortable,nocables§ Software-only,simpleappdownload

- Usesaudiosignaturesinovernightbreathingandsnoringsoundstoidentifysleepapnea

§ Proof-of-conceptclinicalstudy- Comparedtosimultaneous,in-laboratoryPSG- 731patients,62%male,meanageof53years

(range:18-87),meanahiof24(range:0-196)- 86%sensitivity,83%specificity,0.91AUCROC

§ ProspectivestudyunderwaywithregulatorysubmissionplannedbyendofCY2018

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Summary§ Revolutionarytechnology– diagnosisandmanagementofrespiratorydiseasewithouttheneedfor

additionalhardware§ CompellingclinicalevidencefromAustralianstudiesof2,600+patients§ Multipleclinicalprogramsunderway

- RevisedUSpediatricclinicalstudyrecruitingwell,on-tracktocompletemidCY2018- Australianprospectivepediatricandadultstudiesrecruiting,expectingpediatricresultsinH1CY2018

§ Wellunderstoodregulatorypathway- HeldUSFDAPre-SubmissionmeetinginQ1CY2016,confirmeddenovoregulatorypathwaystrategy- FDAsubmissionfollowingUSpediatric studycompletion- CE(Europe)andTGA(Australia)submissionsfollowingAustralianprospectivestudycompletion

§ Broadenedproductportfolio- Chronicrespiratorydisease(asthma,COPD)management- At-homescreeningofobstructivesleepapnea,regulatorysubmissionbyendofCY2018

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