Nova Eye Medical Limited

Okay, good morning everybody and thanks again for joining us. My name is Mark Flynn, Investor Relations at Novi Medical. Today we're covering the June 26th quarterly report which we lodged last week with the ASX and also we'll provide some outlook on FY27. Presenting as always today is Tom Sperling, our Managing Director. Again, Q&A available if you look inside Zoom. Q&A function. We'll look to get to as many questions as possible. Also, we can follow up post the webinar, but I will ask a number of questions. So please place them in the Q&A function within Zoom. As we can see from the recent results, Tom's led the company through a wonderful four consecutive years of sales growth, above 25%. And our FY26 closed at just below US$24 million, up 26%. And the second half delivered the company's first positive EBITDA as guided by Tom and the team. So Tom will take you through these results, what drove it, and also it provides an FY27 guidance. So over to you, Tom.

Thanks, Mark. I'm very pleased, again, to be speaking and talking to our company. It's another record attendance, and having a lot of people interested in our company, another record attendance webinar, having a lot of people interested in our company is very, I'll just say heartwarming, because it is. Now you see our opening slide. Just leave it up there. Sorry, Mark. Just back, back, back. Our opening slide, I just want to say regular viewers will note that that's quite a change in our slide formatting and that's intentional. We've hit some major milestones in this last half and we are different. We are combining profitability with sales growth just as we promised. We promised it and we've delivered it. It's a big thing today. Thanks, Mark. Let's just not forget glaucoma. The second leading cause of blindness in the developed world is a well-documented statistic. We build and design devices that enable surgeons to treat patients with glaucoma. Glaucoma is incurable, but we can delay the progression of glaucoma. Nobody can cure it. It is about a failure of, on the slide there, it's a failing of the eyes, ocular irrigation. causing a rise in pressure which cuts the optic nerve. Our glaucoma solutions work with the body's anatomy, open up the natural outflow pathway, and use surgical interventions to stop this without leaving anything behind. Tissue sparing. Very, very important. We are promoting the body to do its own work. Next slide. There's the top line. We want the message you received today that the market we are in is early in the commercial growth stage of this market. We're early in our commercial rollout and we've achieved strong growth. 26% year on year to $23.7 million. EBITDA positive in the second half as we've guided and EBITDA positive in FY27. We haven't put our We haven't put a number out, but we will be EBITDA positive. We are FDA cleared and MDR compliant. That MDR is, some people may consider it very boring. Some people who follow healthcare stops know it was a milestone, a very important milestone we achieved during fiscal 25 to make sure that we converted from the CE mark regime into an MDR compliant regime. And the truth of the matter is that MDR has made it more, it is a higher bar than CE. It is closer to FDA. So, we have a, we're not, we are well positioned to move forward and grow. Now, I'll accept that I'm cheating with the scale a little bit here, but that's so what. I put the numbers there US $9.3 million in fiscal year 22. Following the release of our ITRAC advance over these last three years, four years, we've got to 23.7. And we can do all the corporate finance maths on that, and that is a 26% compounded growth rate. You almost couldn't make up a curve looking at that so strong and consistent. And I ask you to put your rulers on that so that you can say, well, what could it be next year? We've given guidance, but... I would like you to form your own view just on that trend. Next slide. Interventional glaucoma is the future. In this approach, surgeons treat the disease surgically and early instead of reliance on drops and the latency approach. I have, in our quarterly report, we flagrantly, and with the permission of Glaucos, inserted some of their statistics because I think they have a really good outlook. They have a really good description. 90% of patients don't take their drops as prescribed. The old legacy of drops and drops and when it gets really bad, you drill a hole in your eye to relieve that pressure. It's far-fetched. The idea of intervening surgically early to improve the outcomes with minimally invasive solutions like ITRAQ, particularly the tissue sparing nature of ITRAQ means that we provide better quality of life to patients, which is wonderful, better quality of life for patients, but there is a business to be made. Doctors can make money out of that and so it is a valid a real theme that is only in its infancy globally. Next slide. So currently glaucoma about 944 million, so that's not much. Well, I don't care. We only need a very small part of that. Gloufos have said that by 2035 they expect that there'll be just as many IG procedures as there are cataract procedures in America. Currently, there's about 500,000, 600,000, 700,000 cataract procedures, so they see that growing by 10 times. That is, currently, we estimate that we have about 4%, 3% to 5%, put 4% in the quarterly report, of the interventional glaucoma procedures. And that means I estimated in our quarterly report, we stated that there are about 30,000 to 35,000 procedures in the USA every month, and we're doing 4% or 5% of those and growing. So I often talk about this market share. Market share of 4%, oh, that's meaningless. It's a tiny market share. It doesn't matter. That has developed 23 or 24 million of revenue for us, or 19 in America, sorry. and that just shows there's room to grow and we're proving our platform can participate in that growth profitably. Next slide. Here's another depiction of the opportunity. These are estimates of cataract surgeons driving interventional glaucoma growth. That is, as I've said a number of times in these talks, 20% of the patients who present for cataract surgery have concurrent glaucoma, 15 to 20%. That presents the doctor with an opportunity to say to his or her patient, at the same time as me fixing your eye so you can see the golf ball or drive better at night, I can do a minimally invasive procedure that will ensure, or not ensure, which will get you off drops. The data says it will get you off the drops or reduce the number of drops you're taking and that will improve your quality of life. All at the same time. And that offering by cataracts and comprehensive surgeons is appealing to their patients. That is the space we're working on. That very, very simple concept that a patient doesn't have to go in and can get better vision through the cataract surgery and improve quality of life by getting off drops or reducing the drops. With our advice there, you know, this green light and the green eye track advance was just released in the last six months and it, with the Shear Clear technology, is a driving growth. It is driving growth, I have to say. Next slide. That's a cut-off version. We keep refining these pictures, but that's a cut version. The canal is theoretically wrapping right around that. You can see a picture of our brain catheter running through the canal. I actually personally believe that it's obviously a depiction. That canal is a bit fat on the left-hand side. It's thinner than that. But you can see the idea of our catheter running through that canal and clearing out clearing the blockages and then we withdraw the catheter and flush it with viscoelastic fins with the ShearClear technology, our proprietary ShearClear technology to make the way into the collector channels, into the whole ocular system to reduce pressure and clear blockages. It works with the anatomy. We do not have an implant and we do not tear the tissue. a note there about our reimbursement, or the reimbursement, $542 for the surgeon to do the procedure, $2,204. They're currently 2026. Draft of 2027 results were released and they're approximately by Medicare in America and they're approximately the same. That we highlight as a, they will be confirmed, or we hope they will be confirmed, they should be confirmed, in November later this year, but it provides confidence in our going forward American revenue and therefore our guidance for our business. We're approaching 20,000 procedures a year in the United States with the device. A tiny part of the market, but for us, 20,000 procedures is good. Thanks. ITRAC Advance is ready for the interventional movement. No trials to run. We have our approvals. There's no reimbursement to secure. Plenty of people on this call may be following various medtech companies that are trying to have a deciding note. Will we get a FDA approval? Will we get reimbursement? When will we get first revenue? How are we going to get first revenue? And on this slide, I debated whether to pick revenue growth. We decided that we finally ticked first revenue. Revenue growth is what's about to happen. Okay? Very important. Let's go. And here's the revenue growth. All lots of numbers, but it does show the dominance, 18.6 million in the United States, 30% year-on-year growth. Interestingly, in our quarterly, you'll see that our USA growth was 21%, quarter on quarter, really had a great quarter in America. Germany is steady, or it's growing steady. The rest of the world out. Guidance is sales, including China, 22.7, was above the midpoint of our guidance, 29% growth. And yet, China, we're only, there's a, you know, 18% theoretically is a big drop, and it's what, $200,000, it's not very much. That, we are growing in Europe, In China, it's lumpy and we're only just getting started. Next one. So further, the opportunity in China, we consider that interventional glaucoma is a nascent stage outside the US. China lags most on interventional glaucoma adoption. The statistics say that when interventional glaucoma picks up, China will be there. Our investment in peak... I've had a few questions about our investment in China and why has it gone back and et cetera, et cetera. Gone back was the 18% loss. Well, first of all, it's a tiny amount. It's about percentages on small numbers. But second, our investment, we are proudly putting forward our EBITDA positive position. We've put forward that EBITDA positive position because we're very careful with every dollar we spend. The opportunity in America is large. We invest in America. We are investing more slowly in China because we have that constant need to improve the bottom line at the same time. It will come. We are well positioned. We have our structure. We have our platform. But for the time being, we're excluding China from our guidance. Let's go. Now, dwelling a little, there's a lot of numbers here. but the messages are on the left-hand side. We hit our guidance target on revenue, revenue growth, and even our positive in the second half. And operating expense, regular followers will know, I often get asked about operating cost leverage. We've provided there a breakdown of the OPEX, sales and marketing, operations, product development, engineering, corporate and clinical data so that people can look at the history and have a look at what is varying with sales. And they say, what's your leverage? What's your leverage? Lots of people are telling me that our sales, our costs just keep going up at the same rate as sales. Well, it's not. Our sales and marketing costs in fiscal, in the first half of 2024 was 76% of sales. That's a big number. In this last half, it's 52. The trend between 76 and 52 has been very consistent improvement. That data has all been provided historically. It's all in our releases. But one can assume, then, that that progression will continue. However, we're not. So that, someone called it JAWS. I've got a note about it being JAWS, the widening of the gap between SARS-CoV-2 growing faster than OPEC. That's where we are. So we got there on the eve of that. We said we'd get there on FY26. Guidance we did, and in July we started F27 with continued growth in America. That's right up to today, or well, last Friday. Our guidance is 26 to 31 million US dollars in excluding China. people interested can add on to China after what they will. That's between 15% and 37% growth. As I said, we point out we always have achieved for years 26% growth. So some people may say that 15% is too low, but we're not. That's what we're saying. We want to hit our guidance. We have not forecast what our EBITDA will be, but we are saying that it's positive. and as I said, we're tracking at 30% above in July. We have liquidity in place that will facilitate us achieving these targets. You often get, say, we don't have enough money, when are you going to do a capital raise? We have enough money to meet our FY27 guidance. Next slide. I think this is the last one. It's just getting started. We built our business for this exact opportunity, and it is now hitting the market, hitting the streets, and turning into fiscal outcomes that we think are interesting to our shareholders, that add value, even that and sales growth. Nobody can tell me what's more important. Plenty of people say, oh, you've got to have sales growth. People say, you've got to have a profit. We're doing both. More than 25% growth and even that positive, I believe, we believe, makes a valuable company. And we think we do have a valuable company. Next one.

Okay, Tom.