October 2019 Matt Sassone Chief Executive Officer Tim Hall Chief - PowerPoint PPT Presentation

Interim Results Presentation Six months to 31 July 2019 October 2019 Matt Sassone Chief Executive Officer Tim Hall Chief Financial Officer

Disclaimer The Presentation Materials includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the anticipated future performance of the Company. Any such forward-looking statements in the Presentation Materials reflect the Company’s current expectations and projections about future events but, by their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Save as required by law or regulation or the rules of any securities exchange, the Company undertakes no obligation to release the results of any revisions to any forward-looking statements in this Presentation that may occur due to any change in its expectations or to reflect events or circumstances after the date of the Presentation Materials. In particular, no representation or warranty is given by the Company as to the achievement of, and no reliance should be placed on, any projections, targets, estimates or forecasts and nothing in the Presentation Materials is or should be relied on as a promise or representation as to any future event. 2

Hemodynamic monitoring company, helping doctors to manage patient’s cardiac function during high risk surgery and critical illness. 3

Market Overview Enhanced Recovery to Accelerate Segment Growth 1. Third party research and internal estimates 2. Includes pulmonary artery catheters and invasive pressure monitoring products, excludes capital 3. Includes minimally invasive and non-invasive advanced hemodynamic monitoring products, excludes capital 4

Competitive Landscape Competitive Landscape Changing Due To Recent Acquisitions Advanced Hemodynamics Market Share* In 2014 Getinge acquired Pulsion for €139m representing 4 times revenues and 11 times EV/EBITDA Getinge 2019: Agreement to be acquired by Baxter Healthcare. Transaction consists upfront $190 million Acquired BMEYE in 2012 Cheetah with additional $40 million based on clinical & for €28m commercial milestones Medical Acquired CASMED for $100m. At time of LiDCO Edwards acquisition CASMED had revenues of $21m and Deltex Medical Lifesciences negative EBITDA of 6.4m. Other Manufacturers: CN Systems Osypka Retia Medical Vygon * Source: internal estimates based on published data 5

Respective Competitive Offerings Less invasive Strategy More invasive Advanced Hemodynamic products Pulmonary Blood Non- Arterial Bio- Calibrated Artery Pressure Invasive Line Impedence Technology Catheters Transducers Sensors sensors Sensors Finger Cuffs Differentiate through innovation i.e. incorporating AI into technology Address today’s customer needs of economical value & ease of use Recently addressed product offering by launching non-invasive finger cuff technology Planned acquisition by Baxter may change strategy Multiple technologies on legacy monitor 6

LiDCO Product Sales 10% (H1 2019) LiDCO product revenues (H1 2019) and % growth vs H1 2018 EUROPE UK 27% 8% £0.3m £1.6m New distribution in Poland Retained leading & Romania market share – USA reported revenues down as transitioning 47% largest customers to Latest monitor HUP regulatory £0.9m approval (China & S Korea) Continued success of the HUP offering ROW 27% £0.5m Appointment of Elysian Fields as Master Distributor for South America 7

H1 Revenues By region (£m) Revenue (£m) 4.0 0.5 3.5 UK 0.3 US 3.0 1.6 Europe 2.5 ROW 2.0 0.9 H1 FY19 H2 FY19 H1 FY20 LiDCO 3rd Party By revenue type (£m) 0.0 0.8 • LiDCO product sales up 10% on prior year and 5% on prior 6 months Capital • Total revenue down 4% due to Recurring termination of Argon distribution Other contract 2.5 8

LiDCO – HUP strategy OFFERING STRATEGY Disruptive model to take share & Software as a Service expand globally Treat unlimited number of patients Accelerate US market penetration Drive greater adoption of Potential for significant cost saving hemodynamic monitoring No expensive per patient Customers sign multi-year disposable required agreements HUP REVENUES UP 115% to £0.8m (H1 2018: £0.4m) 9

HUP Performance HUP performance by region  To date 242 monitors signed on ACV the Software as a Service “SaaS” No. of HUP (£000s) Monitors model 300 2500  US: 130 monitors spread across 250 15 hospital accounts 2000  26% of UK business converted to 200 HUP 1500  Total annualised contract value 150 (ACV) £2.1m 1000 100 £7.0m total value of HUP  contracts signed as of August 500 50 2019 trading statement 0 0 Jan '18 Jul '18 Jan '19 Jul '19 YTD USA UK Distributors Annual Revenue 10

Building market share in US Gaining share, winning trust 15 HUP accounts currently: 1. Multiple teaching institutions across US 2. Increasing penetration in multiple Depts 3. Long term renewal for largest US HDM user 4. 4 renewals for longer terms (2-4 years) Exciting pipeline  Excellent customer/user feedback Current Prospects  Major hemodynamic monitoring accounts across USA engaged  10+ centres in Purchasing stage today Competitor reaction: new capital, bundling,  research grants & leveraging relationships Interest Evaluation Decision Purchasing 11

UK Market LiDCO products 8%  Active strategy to convert largest customers to HUP. Following success of largest customer converted in January 2018  To date eight customers converted, representing 26% of LiDCO’s annual recurring revenues in the UK  H1 disposable revenues impacted strategy, as customers typically de- stock inventory ahead of transitioning to HUP  Supporting large UK clinical study (FLoELA) investigating the impact of hemodynamic monitoring in patients undergoing emergency surgery  Team ramping up efforts with 3 rd party products * Percentage of H1 recurring revenues generated from HUP licences 12

USA Market 47%  Revenues were up 42% on a constant currency basis  Utilising independent resources when appropriate  Increased clinical presence & expertise  ‘Trust in Better’ marketing campaign launched  HUP performance:  Increasing penetration in multiple departments  Long-term renewal for largest US HUP customer  4 renewals for longer terms (2-4 years). Only 1 from 16 HUP’s not renewed, opting to revert to per patient option, still with LiDCO  New NED appointment, brings extensive US knowledge and relationships * Percentage of H1 recurring revenues generated from HUP licences 13

Distributor Markets 27%  Aim is to build a number one or two position in specific target countries that are rapidly adopting relevant clinical pathways such as enhanced recovery after surgery  In the first six months achieved regulatory approval for latest hemodynamic monitor LiDCOrapid v3 in both China and South Korea  China commercial launch at end of October 2019  Elysian Fields appointed as master distributor in Latin America  European distributors building inventory ahead of a no-deal Brexit  Good progress with new distributors in Eastern Europe * Percentage of H1 recurring revenues generated from HUP licences 14

3 rd party distribution in UK Key Learnings Strategy moving forward Pressure Transducers - Excellent market feedback - Leveraging existing - Highly competitive product relationships by targeting features existing LiDCO accounts - Price sensitive using competitor products Disposable NIBP cuffs - Market concerns about - Selective opportunities environment impact of shifting to disposables - Highly price sensitive Advanced Nerve Stimulation - One-off quick sale - Ancillary product to the LiDCO - Excellent market feedback product sale - Portability meets key clinical - Leveraging existing relationships needs Over time target is to collectively exceed the financial contribution previously generated by the Argon distribution 15