Capital raising presentation ASX: OSP 4 August 2017 Executive - PowerPoint PPT Presentation

Capital raising presentation ASX: OSP 4 August 2017

Executive summary Osprey is pleased to announce the launch of an equity raising to provide approximately A$32.5m in funding to accelerate commercialisation Osprey continues to experience significant growth across key metrics • 42% q-o-q unit sales growth in Q2 FY17, resulting in 11 consecutive quarters of growth • Stable pricing leading to strong growth in cash receipts (up 158% in 2Q FY17 vs 2Q FY16) Capital raising to fund accelerated commercialisation • Osprey is launching a capital raising of approximately A$32.5m to accelerate commercialisation • Offer price of A$0.40 per share represents an 8.0% discount to last close and a 14.8% discount to 10 day VWAP Capital raising structure • A$22.2m placement to sophisticated and professional investors within Osprey’s placement capacity under ASX Listing Rule 7.1 and 7.1A ( Placement ) • A$10.3m underwritten entitlement offer to existing shareholders ( Entitlement Offer ) • Brandon Capital Partners (23.5% shareholder) intends to participate in the Placement as well as take up its pro-rata entitlement in the Entitlement Offer • Brandon has also agreed to fully sub-underwrite the remainder of the Entitlement Offer (in addition to its pro-rata entitlement) • Total of approximately 81.3m shares to be issued from the equity raising 2

Capital raising overview Osprey intends to raise A$22.2m via a placement and A$10.3m via an underwritten non-renounceable entitlement offer Capital raising overview • New CDIs under the Placement and Entitlement Offer will be issued at A$0.40 Issue price • Represents an 8.0% discount to last close and a 14.8% discount to 10 day VWAP • A$22.2m is to be raised through the issue of 55.5m New CDIs under a placement to institutional and sophisticated investors Placement • Placement New CDIs will be within the Company’s capacity under ASX Listing Rule 7.1 and 7.1A • Placement New CDIs will not be eligible to participate in the Entitlement Offer • A$10.3m is to be raised through the issue of 25.8m New CDIs under an underwritten 1 for 10 non-renounceable entitlement offer to existing shareholders Entitlement • Eligible CDI holders may also apply for New CDIs in excess of their entitlement, Offer subject to any scale back at the sole discretion of Osprey’s Board • In connection with the raising, Osprey intends to increase its authorised capital in order to effect the Entitlement Offer in full 3

Capital raising use of funds Capital raised will enable the accelerated commercialisation of Osprey’s successful DyeVert and DyeVert Plus system Expand US sales force to increase coverage of the US with focus on geographies with a high share of AKI • Current sales force of 18 people • Planned to grow to ~26-28 people by end of 2017 Initiate a pilot European sales programme in Germany • Pilot sales programme planned following initial market soundings • Germany as initial target market Ongoing support for post approval market trials and physician sponsored trials for scientific presentation and publications • Recently published research in JAMA supports greater adoption of Osprey’s products Continued research and development of the product portfolio • Recent R&D successes include DyeVert Plus and DyeTect 4

Capital raising timetable The indicative timetable for the capital raising is provided below Company in trading halt Wednesday – Thursday, 2 – 3 August 2017 Closing date for receipt of firm and irrevocable bids in Placement Thursday, 3 August 2017 Offer announced, lodge Entitlement Offer booklet with ASX and company resumes trading Friday, 4 August 2017 “Ex” date for Entitlement Offer Tuesday, 8 August 2017 Record date for Entitlement Offer Wednesday, 9 August 2017 Settlement of Placement New CDIs Thursday, 10 August 2017 Allotment of Placement New CDIs Friday, 11 August 2017 Despatch of Entitlement Offer booklet and acceptance form to Shareholders Monday, 14 August 2017 Closing date of Entitlement Offer Friday, 25 August 2017 Entitlement Offer shortfall notification Wednesday, 30 August 2017 Settlement of Entitlement Offer New CDIs Friday, 1 September 2017 Allotment of Entitlement Offer New CDIs Monday, 4 September 2017 * The above timetable is indicative only and may be varied subject to the ASX Listing Rules 5

Company overview Osprey’s positive share price momentum is supported by strong sales growth and reflective of its exciting pipeline of future customers Financial information Share price performance Acps Volume Share price (1-Aug-17) A$0.435 55 2.0 52 week low / high A$0.32 / A$0.50 50 Number of shares (m) 257.9 45 1.5 Market capitalisation A$112.2m Cash (30-Jun-17) US$15.1m / A$20.1m 40 A$0.40 offer price Debt (30-Jun-17) No debt 35 1.0 Enterprise value A$92.1m 30 Note: Assumes AUDUSD exchange rate of 0.75 Top shareholders CDIs % 25 0.5 Brandon Capital Partners 60.5m 23.5% 20 Talu Ventures 34.0m 13.2% 15 - Kinetic Investment Partners 18.4m 7.1% Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Note: Grey shading represents substantial holdings associated with Osprey Board members, Volume OSP close price Chris Nave and Andy Jane 6

Osprey is dedicated to protecting kidneys Osprey specialises in the commercialisation of proprietary technologies designed to protect kidneys from the harmful effects of dye Commonly performed surgical imaging procedures for the heart and legs require the injection of x-ray dye, which is then cleared by the kidney • The harmful effects of dye can cause damage to patients’ kidneys, known as Contrast Induced Acute Kidney Damage (CI-AKI) • DyeVert and DyeVert Plus are proprietary dye reduction and monitoring technologies designed to protect the kidneys of patients with chronic kidney disease, who are most at risk of CI-AKI • Osprey’s new DyeTect system leverages technology from DyeVert to help physicians monitor dye volumes for patients without chronic kidney disease 7

DyeVert Plus System Easy to set up, and does not disrupt patient flow and requires no change from standard physician technique Without Osprey dye reduction With Osprey dye reduction 8

Strong performance on key sales metrics Osprey’s 3 key sales metrics for DyeVert have been consistently positive 1 Quarterly product unit sales & samples since inception Quarterly unit sales growth 1,400 42% unit sales growth in Q2 1,200 2017, as compared to Q1 2017 1,000 2 Total hospitals 800 purchasing DyeVert 600 36% increase in total hospitals purchasing in Q2 2017 400 200 3 Strong pipeline of hospitals 0 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 39 hospitals at end of Q2 2017 in AVERT sales AVERT samples the sample-to-purchase process DyeVert sales DyeVert samples 9

Profitable growth in two territories San Antonio and Atlanta continue to be profitable, with other sales territories following a similarly strong trajectory Quarterly product unit sales in San Antonio 1 Current: • San Antonio and Atlanta continued profitable 363 growth in Q2 2017 with 363 and 272 units sold 314 respectively, compared to the break-even 236 requirement of 225 units per quarter 196 180 128 121 • 114 70% (16 of 23) of San Antonio hospitals and 55% 56 (12 of 22) of Atlanta hospitals have approved and 37 17 purchased Osprey’s products 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Future: Quarterly product unit sales in Atlanta • Future hospital growth in these areas driven by increased penetration in existing territories and expansion of sales coverage into surrounding 272 areas 235 140 • Future growth in utilization of DyeVert driven by 117 84 increased physician adoption within existing 17 hospitals 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1. Quarterly unit sales fell in Q4 2015 following the introduction of the DyeVert System, as hospitals sampled the new product 10

Focused commercialisation approach Osprey follows a two-step sales process in all territories Sample-to-purchase (approx. 3-4 months) 01 • Sales reps directly approach key physicians to sample DyeVert • Physicians approached progress to evaluating the product • These physicians then support the product’s purchase with the hospital Valuation Assessment Committee Increasing penetration within hospitals 02 • Once a hospital is approved to purchase, the focus shifts to expanding the product’s reach to all physicians • Increased penetration within purchasing hospitals ensures that all patients with poor kidney function are covered by DyeVert 11

Pillars of sales growth strategy Aggressive commercialization strategy focuses on new sales representatives and increasing awareness about the importance of kidney protection Sales territory expansion Focus on adding new highly experienced sales reps in territories with the highest rates of poor kidney function Marketing kidney protection Focus on marketing the benefits of Osprey’s products in protecting patients’ kidneys and their ability to help hospitals adhere to national guidelines around dye savings Podium presentations and physician advocates Focus on key opinion leading physicians who advocate for the benefits of Osprey’s products at key industry conferences Improvements and new technologies and platforms Constant innovation focused on improving patient outcomes and reducing hospital costs. 12