ASX code: LBT lbtinnovations.com

LBT Innovations Limited (ASX:LBT) So You’ve Built It, Now You Have to Sell It! Brent Barnes

Chief Executive Officer & Managing Director

July 2017

Slide No. 1 © LBT Innovations 2017

Disclaimer

This document contains certain forward-looking statements that involve risks and uncertainties. Although we believe that the expectations reflected in the forward-looking statements are reasonable at this time, we can give no assurance that these expectations will prove to be correct.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements due to many important factors, risk and uncertainties including, without limitation, risks associated with medical device development and manufacture, risks inherent in the extensive regulatory approval processes mandated by regulatory authorities, delays in clinical trials, future capital needs, general economic uncertainly and other risks detailed from time to time in the Company’s announcements to the ASX.

Moreover, there can be no assurance that others will not independently develop similar products or processes or design around patents owned or licensed by the Company, or that patents owned or licensed by the Company will provide meaningful protection or competitive advantages.

Slide No. 2 © LBT Innovations 2017

Current Focus: What are we trying to solve?

Insight: Microbiology laboratories

Slide No. 3 © LBT Innovations 2017

Market Need

• Shortage of qualified technicians and technologists available

• A 2014 study published by the College of American Pathologists (CAP) showed:

• 43% of clinical laboratories surveyed reported it is difficult to find personnel and

• over 8% of microbiologist’s positions remain unfilled.

• Demand for diagnostic tests rising steeply

• The aging and increase of chronic diseases in Western populations increases the demand for tests

• 70% of diagnostic decisions are made on the basis of laboratory test results

• Laboratory automation ensures consistent quality

• Laboratory automation products demonstrably save time, reduce manual steps and labour

• They remove the human variability resulting in lower risk for errors

• Laboratories want rapid turnaround time and increased throughput

Slide No. 4 © LBT Innovations 2017

Microbiologist spend half of every day reading plates

* LBT time and motion study, September 2016

Opportunity:

Nearly 50% spent of time reading plates

Up to 95% are

negative

Slide No. 5 © LBT Innovations 2017

Global Market Opportunity – APAS® Independence

1,000 labs

12,000 labs

15,000 labs Small Labs Less than 400 plates

per day

Medium Labs 400 – 1,000 plates

per day

Large Labs More than 1,000 plates per

day

Number of labs globally

Solution for all sized laboratories

Total market opportunity: ~13,000

laboratories

APAS® Independence: • First and only artificial intelligence technology in microbiology to be cleared by FDA • At least 3 times faster than manual process • Stand-alone instrument; fast, flexible and affordable

Slide No. 6 © LBT Innovations 2017

Revenue & Margin

Instrument once off purchase price:

Annual Software License:

Annual accessories:

Regional Distributor(s)

End Customer Pricing

Sell, service, support

*industry expected margin from distributors Supply at set

transfer price

Legal manufacturer of APAS® Independence

Joint Venture 50/50

$$ $$ *Margin: 20% - 40% Margin: Confidential

50/50 Owners of JV

Profits and costs shared

$$ Instrument

development

~USD$300,000

~USD$20K - $40K

~USD$1K - $2K

Slide No. 7 © LBT Innovations 2017

Distribution linked to opportunity

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

USD

$B

n

2012 Healthcare Spend (USD $bn)

*Derived from OECD Health Data 2015, WHO World Health Statistics 2015, IMF World Economic Outlook 2015

LBT have focused on de-risking regulatory pathway in key markets.

APAS® Independence is the only FDA cleared instrument.

Slide No. 8 © LBT Innovations 2017

Clearly defined distribution objectives

42% North

America

Global reach through allocation of the right strategic distribution partner(s)

* % based on global dollar spend References: Microbiology Testing/Clinical Microbiology Market – Global Forecasts to 2021, Markets and Markets, Jun 2016 Global Clinical Microbiology Market Revenue, 2014 to 2024 – Grand View Research,Oct 2016

32% Europe

Distributor: LBT Innovations Direct sales knowledge to ensure effective training of distributors in larger markets.

Distributor: Selection Due Diligence Process commenced

Distributor: Selection Due Diligence Process commenced

Slide No. 9 © LBT Innovations 2017

First global launch market: Australia/New Zealand

Distributors attitude “If you can’t sell in a market you know well … how can anyone else be expected to commit?”

Ideal global launch market:

Market Opportunity

100 labs

(total 276 labs)

• Big enough to have the diversity and the nuances of a major economy, while being small enough to not have to scale the product extensively to go to market

• Setting up for global success: establish capability based on direct market feedback to support global distribution partners

• The launch market will establish firm reference data

• St Vincent’s Hospital, Melbourne to be first global reference site starting in September 2017

Slide No. 10 © LBT Innovations 2017

Spotlight: United States

• Single largest global market, launching APAS® Independence in 2018

• 5,724 hospitals in the U.S.

• Market Opportunity: ~1500 hospitals

• Five major regions within the U.S. that are highly concentrated: California, Texas, North East, South East, East North Central

• ~100 significant reference laboratories

• Critical to have U.S. based trial site’s to support sales process and adoption in market

Slide No. 11 © LBT Innovations 2017

Trade Show activity: Clever Culture Systems

Feedback from End Users / Microbiologists:

• Customers liked: high throughput, consistency and reproducibility which introduces efficiencies into their laboratory workflow

• Purchase price of ~USD$300K is compelling if the instrument delivers the efficiency claims

• Looking forward to seeing the reference laboratory performance data

• Wanted to know who will distribute the instrument, as service is very important

Feedback from business-to-business:

• Saw a unique instrument that has no direct competition in the market

• Engineering teams reviewed the instrument in detail and were impressed by the quality, design and look of instrument

• Useability and cleanability have clearly been thought through

• Wanted to understand how they would be supported by CCS (technical, service, sales)

• What publications will be made available

Feedback extremely positive from both stakeholder groups. Questions were expected and forecast in future anticipated milestones

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No direct competitors

APAS Independence® competes against two substitutes:

• Current laboratory best practice, where plates are barcoded and results are placed in a Laboratory Information Management System, but otherwise managed and screened manually.

• High end (US$2.5+ million) Laboratory Automation Systems.

• There are around 150 of these systems sold life to date • Provide full end-to-end streaking, incubation and

visualisation on a screen for a scientist to analyse

• Of these, one product (Copan PhenoMatrix) claims an APAS - like technology

• Demonstrates desire for automation of plate analysis • Yet to be released, yet to start FDA clearance process • Our scientists believe it relies on being part of a full

Laboratory Automation System, so can’t be scaled down to compete with APAS Independence®

Slide No. 13 © LBT Innovations 2017

Sales process considerations

• Capital Equipment sales generally have a long lead-time. Prospective purchasers need to understand the value & payback of each competitive system

• In the case of APAS®, the technology is new and there needs to be understanding at all levels of the lab organisation. (cannot rely on lab manager alone to do the internal selling)

• Typical stakeholders will include:

• Lab Manager/Section Head • Chief Microbiologist (pathologist) • Operations Manager • Finance • Board

• Distributor will need to have capability of dealing at ALL levels and sell the ‘value’ rather than a box. This will also involve thorough understanding of the financial/labour model

• Typically with such an investment, the lab may want to ’evaluate’ to validate the financial model. An understanding of the purchasing/procurement process will need to be thoroughly understood to determine whether or when this should occur.

Brent Barnes Chief Executive Officer & Managing Director

Level 1, 300 Flinders Street Adelaide SA 5000 P +61 (0)8 8227 1555 F +61 (0)8 8223 1775 info@lbtinnovations.com lbtinnovations.com

© LBT Innovations 2017