ImpediMed Limited

Thank you for standing by and welcome to the Impedimed Investor Call Q4 FY25 results call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you'll need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Ms. Palmjot Baines, CEO and MD. Please go ahead. Thank you.

Good morning and thank you for joining us to discuss the quarter four FY25 results. I'm pleased to be here with McGregor Grant, our CSO. We will be referencing the 4C quarterly activity report and presentation that we lodged this morning with the ASX. The presentation is a summary of the more detailed 4C. After our remarks, we'll be taking questions. It's been another busy and encouraging quarter. clear signs that the strategy we've been working hard on is starting to pay off. We recorded our highest ever total contract value this quarter, which is a fantastic achievement. On top of that, a major commercial pay began coverage, something we believe will have a significant impact going forward. We also achieved the key goals that we set for ourselves, including exceeding our sales target to trigger access to the next tranche of our debt facility and exceeding the cost reduction targets we put in place. The American Society of Breast Surgeons Conference was another highlight last quarter. It was led by our new VP of Sales, Scott Long, and gave us a great opportunity to connect with both current and potential customers. What really stood out was the importance of survivorship in cancer care, and more and more clinicians turning to SOZO to lower the lymphedema risk for their patients. This quarter, we also initiated a measured expansion into two new clinical areas, both of which represent major opportunities for the business. I'm really looking forward to giving you an update in what was achieved this quarter and where we're headed as we move into the new financial year. Let's move into the presentation and we'll begin on page three with an overview of the agenda. Looking at page three, we'll start with the key highlights for quarter four, We will take you through an overview of the business and give an update on the strategy, including the expansion of body comp and heart failure. McGregor will present the financials, and to finish off, we'll cover the outlook for the balance of the year before commencing the Q&A session. Now, turning to page five. We have delivered on our plan. We've been consistently messaging about building a strong opportunity pipeline and focusing on conversion. This quarter, we started to see the results and we delivered a significant increase in U.S. sales and a record PCV. Today, we're going to walk you through why we had this confidence going into the quarter, and importantly, why we believe that this is just the beginning. To succeed in the U.S. healthcare market, there are a few key pieces that need to be in place, and one of the biggest is reimbursement. We're pleased to announce the news that another major commercial player is now providing coverage. It's a significant milestone and a real credit to our VP of Market Access and the hard work that she has put in. I'm also presenting this morning from my new corporate office in Sydney, and it's great to have a core part of the management team based in Australia. This setup aligns with how other successful Australian medtech companies are run, with governance, product development, finance, operations and business development led out of Australia, and with US sales, marketing and medical affairs staying focused in the US. close to our customers. It's also been positive from a cost point of view as we rationalise our facilities. It's a fantastic team across two geographies that really complement each other and I'm genuinely looking forward to what we can achieve together. My team's approach is that we will touch on the key highlights of Q4. As I mentioned at the start, this was a very pleasing result and I want to leave you with three key takeaways. First, work with PCV, clearly a standout highlight. It wasn't just about new sales, it also reflects the strength and quality of our renewal. When I meet with customers from some of the world's leading institutions and hear first hand about how much they value Sozo and how it's become a game changer in the clinical practice, that really reinforces that we are on the right track. Secondly, sales momentum, 44 units this quarter. That's a 100% increase on quarter three, and it sets a new base for the balance of the year. It also means we qualify for tranche two of the debt facility. This gives us added flexibility to fund the business as we continue executing on our path to profitability. Thirdly, reimbursement, a major step forward. The additional coverage we secured will make a big difference. It's great to see that the number states with coverage above 80% increased from 25 to 36 states. But it's not just about the number of states, but the depth of the coverage within those states. The number of states now with over 90% coverage jumped from 7 to 21. As a result, some states that were difficult to access with low reimbursement moved to very high levels of reimbursement. In one example, a state moved from around the mid-30s to the mid-90s with this range of coverage increase. at the top of things of our population, and it's been hard as a prospect ever before. At times, four major IDNs with potential 80 to 120 devices. That's meaningful. These improvements in coverage will help us move faster and lift us to the next level. Now on to page eight. As we mentioned last quarter, we have very strong foundations that have taken a lot of work. These include, one, the strength of the ARR business model that builds on itself with every contract, and the quality of our customers. Reflecting on our customers, the list is of new and renewed institutions over who's who of world-renowned hospitals. This quarter, our U.S. sales included a standout nine-unit lead contract with Legacy Health, a leading six-system hospital healthcare system serving Oregon and Washington. Legacy is committed to delivering comprehensive cancer survivorship programs that meet the NAPC standards. And that commitment played a key role in the decision to adopt SOGO as the foundation for the Lepidemia Prevention Strategy. Renewing customers continue to validate the value of our offering. Not only are they renewing, but renewing with price increases. Overall, we saw a 13% rise in CCV for these renewals, in turn remaining at less than 4%. Now to page 9. We now have a strong foundation in place to drive the level of sales required. Expanded reimbursement, a strong and growing pipeline, and a well-connected, high-performing sales team. That foundation gave us the confidence to see real results, which will be just incremental. It will be a series of step-by-changes. It was clear from the start we needed to invest in systems and processes to support a more robust pipeline. Quite simply, the volume of leads being generated when we came on board wasn't enough to support the sales needed. We addressed that by rolling out tools like SecurityMD and SeamlessAI, implementing full-force productivity measures and ramping up targeted lead generation activity. That investment has paid off, creating a major uplift in the quantity and quality of leads. As a result, the pipeline is now in excellent shape. It includes multiple multi-unit sales opportunities, 27 master service agreements with healthcare providers that represent hundreds of potential service sites, and with more than enough qualified leads to support our initial goal of being profitable. Now turning to page 10. We have confidence that sales will continue to grow. We have a product that addresses a real clinical need Strong clinical validation and a solid pipeline and a very positive reinvestment environment. The final piece of the puzzle is conversion, turning those leads into sales. Another area we really needed a boost was sales team experience, specifically in breast cancer devices. And that's why we were really, really pleased to bring on Scott Long as our new VP of sales. Scott runs over 30 years of experience with breast cancer medical devices, and was that a deep understanding of that space. He has spent his career building strong relationships with breast surgeons, and he's used to working with sales teams in smaller companies. That means he not only knows how to get the results, but he has a great network of top tier sales talent. Scott has already hit the ground running. He's assessed the current team, led our presence at the ASCS conference, and has been out in the field with the RETs, coaching them and making key introductions from his own network. As part of that, we've recently hired two new peer-counted RETs, both with a very solid birth cancer experience and both who are now on board. It is great to have them on board and we're very excited about the opportunity. It will take a quarter for them to fully hit their stride, but based on their track records, we are very confident that they'll start to deliver impact soon. One factor people often underestimate is the network effect in hospital systems. Getting a device approved at a hospital isn't quick. There are legal contracts, budgets and IT approvals. It can take months. But once these items are completed, adding a sickle cell device within a hospital system is a much faster process because those details are already cleared. That is a big advantage that we will continue to build on. Currently in one state, we're finalising three new contracts that unlock the potential for up to 35 more units, which lines up with improved reimbursement in that state. All these changes are just now taking effect, but the tailwind is strong and as we move through the financial year, we are confident in delivering sustained sales flows. Now turning to page 11. The start of the new year is always a great time to revisit our strategy and check in on where we're headed. We're not making any major changes. We're continuing to appear on the strategy without lines, but there is a natural progression as we move forward. ECRL remains the core focus for us, along with maintained strong financial discipline, and Madhuda will talk about our progress on that front. Over the past couple of quarters, you've also heard us talk about moving into stages four and five of our strategic plan. That is starting to take shape. We recently shared our updated product roadmap with the board, which highlighted two key focus areas. First, body composition. We've initiated active sales in this market with our current product offering. Initially, we talked about oncology as a natural adjacency, and that continues to be a focus. But we're also looking at how we can leverage sales as a unique position within hospitals to support clinically managed weight loss, a space where there is growing and real potential. Secondly, heart failure. We started to re-engage in that space with some early steps. We began with a key investigator-initiated observational cancer trial, which produced promising data that supports the clinical utility of a cell-based diet, both for managing steroid levels as well as body composition in heart failure patients. Building on that, we're now expanding our efforts through additional clinical research partnerships to better define how SOZO can be utilized within that healthcare pathway. Firstly, over to body composition on page 12. As I mentioned, we are continuing our work in body composition within the oncology space. We believe that there is a clear clinical demand to support body composition management in cancer patients as part of their survivorship journey. At the same time, we're seeing a generational opportunity emerging around the whys of the GLP-1 weight loss drugs, like Ozempic and Manjaro, that is supported by new guidelines. What makes this especially compelling is that our unique position in the market, SOZO is currently the only FDA-cared bioimpedance device. At a time when leading medical societies are specifically calling for muscle mass monitoring during pharmacological weight loss, they are recommending validated tools like a bioimpedance as part of best practice care. We already have a body composition application. We have now begun a measured expansion into that space, assigning sales resource to build up the market and gather early feedback from customers to optimise our offering. It is still early days, but the initial signals are very encouraging and we're genuinely excited about where this opportunity will lead. Now to page 13. Hype flow is something that the company identified as a major opportunity quite some time ago. ImpedaMed has invested in clinical trials, developed the heart failure software, explored reimbursement and secured FDA clearance, not just for fluid status monitoring heart failure patients, but also for body composition assessment for cardiac rehab and prehab. ImpedaMed has invested in developing a SOVA with scales to improve workflow and remove the contraindications for implantable cardiac devices. Heart failure is one of the most serious and growing health challenges we face today. It affects over 64 million adults globally and is one of the top causes of hospitalization, especially in older adults. And it's not just a clinical issue. It faces a significant burden on health care systems because of the complexity of care, high rate of admission rates, and the sheer volume of patients involved. That's why we've now started to rebuild our hospital and heart center, and we're doing it in a very smart, needed way. leveraging off investment to date and utilising investigator-led trials to build the clinical utility needed for adoption, which includes leveraging guidance from two previous and head event-run heart failure advisory boards. Professor Sindoni, a leading cardiologist based in Sydney, has just completed a 116-patient observation study on heart failure using SOVO. From that work, abstracts are being presented at the Cardiology Society in Australia, of the Australian New Zealand Conference in Brisbane next month. We also have chemo-investigator-initiated studies underway in the US, both exploring key cardiac study markers alongside size and measurement. It's still early days, but importantly, we have a plan, and we don't expect you to require a major investment going forward. Most of the groundwork has already been done, and it's about leveraging that early investment to shape a clear and practical path forward. Now I'll turn the presentation over to our CFO, McGregor Grant, to go through the financials.

Thanks, Pamjot. Starting on page 15, as Pamjot mentioned, it was a positive quarter from a financial perspective. A significant achievement for the year was making our commitment of reducing the cash cost base in FY25 by 10% versus FY24. We recorded a 16% reduction, which mostly came from a 22% reduction in staff remuneration. with the most significant part from senior management costs. Financial discipline continues to be a core goal of the business as we head into the new financial year. Operating cash outflow came in on budget at $3.5 million in line with last quarter's results. Last quarter we flagged that we expected a one-off $1.2 million payment for key electronic components in quarter four. This will now occur in quarter one, FY26. Cash receipts were at $3.8 million, slightly down on the $4.5 million last quarter due to the timing of customer receipts. The cash balance of $22.2 million that served in June equates to 6.3 quarters of operating cash flow. If we adjust to the additional $5 million U.S. drawdown of the debt facility that occurred in July, there are 8.4 quarters of operating cash flow remaining. The strengthening of the Australian dollar relative to the US dollar resulted in an unrealised FX loss of around $1 million. Moving on to page 16. Clearly the standout financial result was the record TCV of $6.3 million, up 86% year-on-year and 29% versus the prior quarter. As well as a strong contribution from new sales, there was also a large number of contracts removing a quarter, with solid price increases adding to the record results. We continue to be very pleased with the quality of accounts, either initiated or renewed in the quarter, together with continued solid price increases on renewed contracts, averaging 13% for the quarter. Turn remains low, below 3%. The upward trajectory in TCV translates to an increase in annual recurring revenue, or ARR. TCV contracts in place as of 30 June 2025 are expected to generate core business ARR of $14 million for the 12 months to 30 June 2026. That equates to a 27% rise year-on-year and a 3% increase on the prior quarter. The strong Australian dollar reduced the increase in ARR as the FX effect is applied to the whole balance. Turning to page 17. Revenue for the quarter remained close to record levels at $3.4 million, up 15% year-on-year, but down 1% on quarter three. U.S. revenue was flat as a result of the relatively stronger Australian dollar. West of world revenue was down 19%. Millions were sold to the rest of the world compared with 14 units sold in quarter three, FY24. The reduction is the result of timing of distributed inventory restocking. But I know that in July, the company received an 18-unit order from its Australian distributor. Cash-in-sweeps of $3.8 million were up 27% year-on-year, but down 8% against the prior quarter. The reduction from Q3 was largely due to timing of customer receipts. On to page 18. We've already mentioned the significant lift in U.S. unit sales, and I've commented on the lack of worth-of-word sales. We've been investigating several rest-of-the-world options. In BCRL, the work we've done to date suggests that many of the European markets are more focused on treatment than prevention. We continue to work to identify the best way to approach these markets. The Australian distributor continues to make incidental sales, and with over 400 units deployed across Australia and New Zealand, we are working closely with the distributors to explore other applications. and we plan to extend survey sales into the body comp and cardiology markets in FY26. Testing continues to trend upward, up 3% on the prior quarter. We continue to monitor testing numbers closely because the health of the lymphoedema prevention programs by our customers is essential to patient outcomes and essential for renewals. Accordingly, monitoring utilization remains a priority for our company. I'll now pass it back to Pandya to wrap up before going on to Q&A.