Brent Barnes Will Be Providing a Company Update

The Manager Company Announcements Office ASX Limited

LBT PRESENT AT AUSBIOTECH INVESTOR CONFERENCE

Adelaide, Australia, 24 October 2017: Australian medical technology company LBT Innovations Limited (ASX: LBT) will be presenting at the Australia Biotech Invest conference today being held at the Sofitel on Collins Street in Melbourne, Australia.

CEO and Managing Director Brent Barnes will be providing a company update. The attached presentation provides details of this update.

– ENDS –

About LBT Innovations LBT Innovations (LBT) improves patient outcomes by making healthcare more efficient. Based in Adelaide, South Australia, the Company has two world class-leading products in microbiology automation: MicroStreak®, which provides automated culture plate streaking and Automated Plate Assessment System (APAS®). Based on LBT’s intelligent imaging and interpretative software, US FDA- cleared APAS® automates imaging, analysis and interpretation of culture plates following incubation. LBT has entered into a joint venture Clever Culture Systems AG (CCS) with Hettich Holding Beteiligungs- und Verwaltungs-GmbH to commercialise APAS® products. LBT’s third product WoundVue® is in early development; this is a proposed automated solution to assist in the management of chronic wounds.

For personal use only use personal For CONTACTS LBT Innovations Media Relations Sarah Kemter Brent Barnes Monsoon Communications Chief Executive Officer & Managing Director Tel: +61 (0)3 9620 3333 Tel: +61 (0)8 8227 1555 M: +61 (0) 407 162 530 E: [email protected] E: [email protected]

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LBT Innovations Company Profile

Overview

LBT Innovations (ASX:LBT) uses Artificial Intelligence to provide tools that automate diagnosis of pathogens and wound care. Based in Adelaide, South Australia, the Company has delivered two world‐ class leading products in microbiology automation: Microstreak®, which provides automated culture plate streaking and Automated Plate Assessment System (APAS®). The US FDA‐cleared APAS® Independence instrument utilises LBT’s intelligent imaging, and machine learning platform to automate the analysis and interpretation of culture plates following incubation. LBT has entered into a joint venture Clever Culture Systems AG to commercialise APAS® products. WoundVue® is LBT’s third product under early development which automates chronic wound assessment using the machine learning technology.

Speaker Profile

Brent Barnes, Chief Executive Officer and Managing Director

After launching his career with global defence contractor Thales, Brent Barnes spent 11 years in a range of senior executive roles with the pioneering Australian medical device manufacturer, Cochlear Limited. Having led an important transformation project within Cochlear’s Global Quality and Regulatory Group, Brent worked for Cochlear Americas in the United States, where he held senior operations and sales roles based in Colorado and Texas. During this time he established a US manufacturing subsidiary from the ground up, where product was manufactured and business audited by the FDA with no observations. After four years in the US, Brent relocated to Sydney and Singapore Cochlear offices as Director Asia Growth Markets & Operations, Asia Pacific.

Brent is also a non‐executive director of Connek Pty Ltd, a telecommunications and IT professional services company that sub‐contracts specialist services to leading blue chip telecommunications companies working on the rollout of For personal use only use personal For Australia’s National Broadband Network.

In his spare time, he enjoys a broad array of sports and tries to keep fit. A keen Aussie Rules follower, Brent is a life member of Sydney’s North Shore Bombers and, during his US posting, he played Australian Rules football for the Denver Bulldogs.

For more information, please visit: lbtinnovations.com

ASX code: LBT lbtinnovations.com

LBT Innovations Limited (ASX:LBT) Business Update

Brent Barnes Chief Executive Officer & Managing Director

October 2017 For personal use only use personal For 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. For personal use only use personal For

Slide No. 1 © LBT Innovations 2017 Operating business: What are we trying to solve?

For personal use only use personal For Insight: Microbiology laboratories

Slide No. 2 © LBT Innovations 2017 LBT Solution: quality, efficient, automation products

Process Steps for Culture Plate Flow

Inoculation Identification & and Culture Incubate Plate Reading antibiotic Plate Streaking sensitivity testing

Automation Automation

For personal use only use personal For PREVI® Isola APAS® Independence Launched in 2009 Current Focus Launching in 2017 Slide No. 3 © LBT Innovations 2017 Executive Summary – current focus

LBT Improves patient outcomes by making healthcare more effective

Technology Patented artificial intelligence platform using intelligent imaging and machine learning to automate manual processes in healthcare. Product Automated Plate Assessment System (APAS®) which automatically screens and interprets microbiological growth on an agar plate Sells for ~US$300,000 plus annual software fees of ~US$30,000 Status FDA cleared after 10,000 patient clinical study Addressable market of 13,000 labs globally 1st instrument installed at St. Vincent’s Hospital, Melbourne (Sep-17) Pipeline APAS Extensions WoundVue® prototype, automating measurement and analysis of chronic wounds.

Outcome Sales starting in January 2018 For personal use only use personal For

Slide No. 4 © LBT Innovations 2017 APAS® Independence

Automated Plate Assessment System (APAS®) - a platform technology for the automation of culture plate screening and interpretation, currently being launched by Clever Culture Systems AG, a joint venture between LBT Innovations and Hettich Holding Beteiligungs- und Verwaltungs-GmbH (“Hettich”).

APAS® uses intelligent imaging and machine learning technology to read and interpret the presence of bacteria in culture plates.

Features • At least 3 times more efficient than manual plate reading; • First and only (to date) intelligent imaging cleared by FDA; • Hence, only system able to be used in the US; • First to market with intelligent imaging device; • Modular design easily integrated into culture plate work flow; • More affordable stepwise entry

For personal use only use personal For into lab automation.

Slide No. 5 © 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

For personal use only use personal For Significant economic benefits to installing APAS® to help solve cost pressures on laboratories

Slide No. 6 © LBT Innovations 2017 Microbiologist spend half of every day reading plates

Opportunity:

Nearly 50% spent of time reading plates

Up to 95% are

negative For personal use only use personal For * LBT time and motion study, September 2016

Slide No. 7 © LBT Innovations 2017 Global Market Opportunity – APAS® Independence

Number of labs globally

Small Labs Less than 400 plates 15,000 labs per day

Medium Labs 12,000 labs 400 – 1,000 plates per day Total market opportunity: ~13,000 Large Labs 1,000 More than 1,000 plates per labs laboratories day Solution for all sized laboratories

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

Slide No. 8 © LBT Innovations 2017 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 For personal use only use personal For down to compete with APAS® Independence

Slide No. 9 © LBT Innovations 2017 Revenue & Margin

End Customer 50/50 Owners of JV Pricing

Profits and costs shared

Instrument $$ development Instrument once off purchase price: ~USD$300,000 $$ *Margin: 20% - 40% $$

Annual Software Legal manufacturer of License: Regional APAS® Independence Distributor(s) ~USD$20K - $40K *industry expected Annual accessories: margin from Sell, service, distributors Supply at set

For personal use only use personal For ~USD$1K - $2K support transfer price Joint Venture 50/50

Slide No. 10 © LBT Innovations 2017 Trade Show activity: Clever Culture Systems

Feedback from business-to-business: Feedback from End Users / Microbiologists:

• Saw a unique instrument that has no direct • Customers liked: high throughput, consistency and competition in the market reproducibility which introduces efficiencies into their laboratory workflow • Engineering teams reviewed the instrument in detail and were impressed by the quality, design • Purchase price of ~USD$300K is compelling if the and look of instrument instrument delivers the efficiency claims

• Useability and cleanability have clearly been • Looking forward to seeing the reference thought through laboratory performance data

• Wanted to understand how they would be • Wanted to know who will distribute the supported by CCS (technical, service, sales) instrument, as service is very important

• What publications will be made available

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

Slide No. 11 © LBT Innovations 2017 Clearly defined distribution objectives

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

32% Europe

Distributor: Selection Due Diligence 42% Process commenced North America Working partnership to support EU roll out

Distributor: Selection Due Diligence Process commenced

* % based on global dollar spend References: Microbiology Testing/Clinical Microbiology Market – Global Forecasts to 2021, Markets and Markets, Jun 2016

For personal use only use personal For Distributor: LBT Innovations Global Clinical Microbiology Market Revenue, 2014 to 2024 – Direct sales knowledge to ensure effective Grand View Research,Oct 2016 training of distributors in larger markets.

Slide No. 12 © 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:

• 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 Market Opportunity 100 labs • Setting up for global success: establish capability based on direct (total 276 labs) market feedback to support global distribution partners

• The launch market will establish firm reference data For personal use only use personal For APAS® Independence installed: St Vincent’s Hospital, Melbourne in Sep-17

Slide No. 13 © LBT Innovations 2017 St Vincent’s evaluation started

• Centre of excellence laboratory to test automation efficiency in a busy real-life setting

• Trained pathology scientists at the hospital

• Initial feedback very positive

• Market feedback on the St Vincent’s operation is expected in December 2017

• Generated interest from other laboratories in Australia

• Expect additional laboratory evaluations to commence in Australia and Europe in Q1 CY18

Channel 7 Melbourne, Sunday 8th October 2017

https://www.facebook.com/7NewsMelbourne/videos/10155915549244301/ For personal use only use personal For

APAS® Independence: Economic Justification Index: 0.41 Strategic Justification Index: 0.83

A standard methodology has been created to determine whether investing in automation is justified for laboratories. Reference: Society for Laboratory Automation and Screening

A laboratory processing 400 urine plates per day worked out a payback of 2.5 For personal use only use personal For years for APAS® Independence

Matrix assisted laser desorption/ionisation time of flight mass spectrometry (MALDI-TOF MS) provides microorganism identification results in minutes versus hours for phenotypic methods. Such rapid identification is by detecting and analysing the organism’s proteomic fingerprint. Two instruments dominate the market. • Bruker Biotyper • bioMérieux Vitek MS • Average selling price US$250K

• 2004 First MALDI-TOF installed Bruker Biotyper • 2007 Bruker release Biotyper 2004 – 2013: • 2011 bioMérieux release Vitek MS 800 units placed globally • 2013 1st FDA clearance

• 2013 – 2015: 700 units sold in the US following FDA clearance

TOTAL SALES 2004 – 2015: 1500 UNITS GLOBALLY

LBT research For personal use only use personal For * Clinical Laboratory Products Magazine February 4, 2015 * http://www.ecmm.eu/files/Prof._Alex_van_Belkum_MALDI_India.pdf

Developed by LBT Innovations Launched 2008 by bioMérieux List price $185K • 2008 – 2015: ~450 – 500 • US market was not a focus (predominately Europe and China)

TOTAL SALES 2008 – 2015: 450-500 UNITS GLOBALLY

LBT research For personal use only use personal For * Anthony Croxatto, ECCMID Barcelona 2014, Automation in Bacteriology * Clin Microbiol Infect. 2016 Mar;22(3):217-35.Laboratory automation in clinical bacteriology: what system to choose? Croxatto A et.al.

LBT’s core platform, Intelligent Imaging and Machine Learning used for new clinical applications.

Intelligent Imaging Platform – WoundVue® • Hand-held, operator-friendly device designed for analysing and tracking the treatment of chronic wounds. Product progressing through research development following market survey. • WoundVue® will not only help doctors and nurses to accurately diagnose wounds based on their patient’s health status, but also to closely track the healing process and revise their treatment regimens accordingly. • August 2017 LBT entered into a collaboration agreement with Central Adelaide Local Health Network (CALHN) Vascular and Endovascular Services, to use LBT’s novel WoundVue™ prototype device in their clinical trial.

Intelligentonly use personal For Imaging Platform – New product Streams • Several other Healthcare product opportunities being evaluated to utilise LBT’s core technology.

LBT maintains an IP portfolio across its core technologies of MicroStreak® and APAS®, Supporting Tools, Instrument Designs, and Trademarks presently containing:

• 61 patents and patent applications;

• 21 design registrations; and

• 72 trade mark registrations and applications.

Activity over the past 15 months: • Patents granted – APAS®: 5 • New patent applications filed – APAS®: 2 • Designs registered: 2

• Trade Marks registered: 6 For personal use only use personal For

2017 Category News details Successful completion of $7 million placement to accelerate APAS® technology Financial development and launch. APAS® / CCS APAS® Independence usability trial. Q1 Build fully functioning APAS® Independence device and APAS® Incubot Design APAS® / CCS Prototype for trade shows. WoundVue® Complete market assessment of technology. Key Launch: APAS® product demonstrators displayed at European Congress of APAS® / CCS Clinical Microbiology and Infectious Diseases (Vienna, 22-25 Apr). Key Launch: APAS® product demonstrators displayed at American Society APAS® / CCS Q2 Microbiology Conference (New Orleans, 1-5 June). APAS® / CCS CE Marking of APAS® for European Conformity WoundVue® WoundVue® prototype study complete. APAS® / CCS Signing of alliance/distribution agreement with global partner(s) for APAS®. APAS® / CCS APAS® Independence first global trial, St Vincent's Hospital, Melbourne Q3 APAS® / CCS Cost utility and quality studies conducted in key opinion leader laboratories. MicroStreak® Signing of license or sale agreement with new partner(s). WoundVue® WoundVue® reference partner selected. APAS® / CCS CE Marking for APAS® Independence instrument Q4 APAS® / CCS First lab trial preliminary results published APAS® Independence device ships to fulfil open orders by global APAS® / CCS

alliance/distribution partner(s). For personal use only use personal For

Post FDA Clearance Positive Announcements: Announcement Current Share  1st – 5th June – American Society price $0.30 of Microbiology meeting, New Orleans USA  5th June – LBT appoints artificial Placement: intelligence expert and Raised $7m at SPP: Raised entrepreneur Matthew $0.31. New $500K at $0.26 Michalewicz as Non-executive shareholders to existing Director shareholders  14th June – LBT appointed Distributor for Australia and New Zealand  21st June – St Vincent’s Hospital Melbourne first APAS® trial site  23rd June – CE Mark Self

Certification Finalised for APAS® For personal use only use personal For

Channel 7 Exclusive: Sunday 8-Oct-17

Top Shareholders (as at 13-Oct-17) bioMérieux (non-exclusive licencee PREVI® Isola) 7.0% B Moran 5.1% R A Finder (Retired Jul-17, LBT Chairman) 3.8% L H Guthrie (Retired Aug-16, LBT founder) 3.0% PA & A Beale 2.2% Avanteos 1823205 2.0% Ruin Pty Ltd (LBT Director) 1.9% Mazoni Pty Ltd 1.9% Mr David Cattuzzo & Mrs Elizabeth Cattuzzo 1.8% Avanteos 1823201 1.7% Mr Richard Anthony Earp 1.5%

Key Statistics Citicorp Nominees Pty Ltd 1.2% Code ASX:LBT Mr Ari Pullinen 1.0% Listed ASX 2006 Costello Consulting Pty Ltd (LBT Director) 1.0% Current Price (as at 23 Oct 2017) $0.30 Mr Leng Kuan NG + Ms Junisilver Taij + Mr Leng Ming NG 0.9% 52 Week High (as at 23 Oct 2017) $0.735 52 Week Low (as at 23 Oct 2017) $0.225 C Costello (LBT Director) 0.9% Shares Outstanding (as at 23 Oct 2017) 141.9 million Chag Pty Ltd 0.8% Market Cap (as at 23 Oct 2017) ~A$43 million Mr Stephen Goodwin 0.8% Net Cash (30 June 2017) $3.5 million For personal use only use personal For KMEC Superannuation Pty Limited 0.7% Directors and Senior Management (as at 7 July 2017) ~4% Miss Alecia Stoodley 0.7%

Slide No. 22 © LBT Innovations 2017 Brent Barnes Chief Executive Officer & Managing Director Level 8, 44 Waymouth St, Adelaide SA 5000 P +61 (0)8 8227 1555 F +61 (0)8 8223 1775 [email protected]

lbtinnovations.com For personal use only use personal For