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2 nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview

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Page 1: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

2nd Annual Capital Markets Day

François R Martelet, M.D.CEO, NetScientific

NetScientific Overview

Page 2: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

2nd Annual Capital Markets DayBuilding transformative healthcare businesses to target chronic diseases

14 June 2016

Page 3: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Disclaimer

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This presentation is not an offer or solicitation of an offer to buy or sell securities. It is solely for use at this investor meeting and is provided for information only. This presentation does not contain all the information that is or may be material to a prospective investor (such as risk factors). By attending the presentation or by reading the presentation slides you agree to be bound as follows:

This presentation has been prepared by NetScientific plc (the “Company”), is strictly confidential and is not, and should not be construed as, a prospectus or listing particulars relating to the Company. This presentation does not constitute or form part of, and must not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, or a recommendation regarding, any securities of the Company, nor should it or any part of it form the basis of or be relied on in connection with (i) any contract to purchase or subscribe for any securities of the Company, or (ii) any other contract or commitment whatsoever. Nothing in this presentation shall be deemed to be binding against, or to create any obligations or commitment on the part of, any prospective investor or the Company. The contents of this presentation should not be considered to be legal, tax, investment or other advice, and any prospective investor considering the purchase of any securities of the Company should consult with its own counsel and advisers as to all legal, tax, regulatory, financial and related matters concerning an investment in such securities and as to their suitability for such prospective investor.

This presentation has been made to you solely for your information and background for discussion purposes only, and may be amended and supplemented and must not be relied upon for the purpose of entering into any transaction. This presentation and its contents are confidential and proprietary to the Company, and no part of it or its subject matter may be reproduced, redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the relevant person’s professional advisers) or published in whole or in part for any purpose without the prior written consent of the Company. If this presentation has been received in error it must be returned immediately to the Company.

This presentation is not directed to or intended for distribution, or transfer, either directly or indirectly to, or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, transfer, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. In particular, neither this presentation nor any copy hereof may be sent, or taken, transmitted or distributed, directly or indirectly, in or into Australia, Canada, Japan, or the United States (including its territories and dependencies, any state of the United States and the District of Columbia) or to any resident of Australia, Canada or Japan. This presentation is only being provided to persons outside of the United States in reliance on exemptions from the US Securities Act of 1933, as amended (the “Securities Act”).

This presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein or offered in connection with this presentation have not been, and will not be, registered under the Securities Act. They may not be offered, sold, transferred, distributed or delivered, directly or indirectly within, into or in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. No public offering of the securities will take place in the United States. Neither the US Securities and Exchange Commission nor any securities regulatory authority of any state or other jurisdiction of the United States has approved or disapproved of an investment in the securities or passed on the accuracy or adequacy of the contents of this presentation. Any representation to the contrary is a criminal offence in the United States.

This communication is directed at (i) persons outside the United Kingdom, or, if this presentation is intended for distribution in the United Kingdom, (ii) solely to (a) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”); (b) members or creditors of a corporate body within the meaning of article 43 of the order; (c) those persons falling within Article 49(2)(a) to (d) of the order; or (d) those persons to whom it can otherwise be distributed without contravention of Article 21 of the Financial Services and Markets Act 2000 or to whom it may otherwise lawfully be distributed (each, a “relevant person”). This presentation must not be acted or relied upon by persons other than relevant persons. Any investment or investment activity to which this communication relates is available only to (i) in the United Kingdom, relevant persons and, (ii) in any member state of the European Economic Area other than the United Kingdom, “qualified investors” within the meaning of article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC), and will be engaged in only with such persons.

This presentation contains forward-looking statements. These statements may include the words “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “project”, “will”, “may”, “targeting” and similar expressions as well as statements other than statements of historical facts including, without limitation, those regarding the financial position, business strategy, plans, targets and objectives of the management of the Company for future operations (including development plans and objectives). Such forward-looking statements involve known and unknown risks, uncertainties and other important factors which may affect the Company’s ability to implement and achieve the economic and monetary policies, budgetary plans, fiscal guidelines and other development benchmarks set out in such forward-looking statements and which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future policies and plans and the environment in which the Company will operate in the future. Furthermore, certain forward-looking statements are based on assumptions or future events which may not prove to be accurate. The forward-looking statements in this presentation speak only as of the date of this presentation, and the Company expressly disclaims to the fullest extent permitted by law any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. Nothing in the foregoing is intended to or shall exclude any liability for, or remedy in respect of, fraudulent misrepresentation.

The information in this presentation has been verified by NetScientific only, and has been independently verified by any other person. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the presentation and the information contained herein and no reliance should be placed on it. Information in this presentation (including market data and statistical information) has been obtained from various sources (including third party sources) and the Company does not guarantee the accuracy or completeness of such information. All projections, valuations and statistical analyses are provided to assist the recipient in the evaluation of matters described herein. They may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results and to the extent they are based on historical information, they should not be relied upon as an accurate prediction of future performance.

No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of any modelling, scenario analysis or back-testing. The information in this presentation is not intended to predict actual results and no assurances are given with respect thereto. None of the Company, its advisers, connected persons or any other person accepts any liability whatsoever for any loss howsoever arising, directly or indirectly, from this presentation or its contents. All information, opinions and estimates contained herein are given as of the date hereof and are subject to change without notice. The financial information referenced in this presentation was derived from financial estimates and/or statements prepared in accordance with accounting principles generally accepted in the United Kingdom (“UK GAAP”).

The financial data in this presentation are solely for your information, as background for discussion purposes and may not be relied upon for the purpose of entering into any transaction. The unaudited pro forma financial information set out in this presentation is based on certain important assumptions and adjustments and does not purport to represent what our results of operations actually will be in any future periods.

This presentation does not disclose all the risks and other significant issues related to an investment in any securities of the Company / any transactions referred to herein. In making any investment decision, prospective investors must rely on their own examination of the Company and the terms of any transaction, including the merits and risks involved.

Page 4: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

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Our vision is to become the leading transatlantic healthcare IP commercialisation group focused on chronic diseases through building world class companies in digital health, diagnostics and therapeutics

Page 5: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Tackling the biggest challenges in healthcare Our focus is on chronic diseases

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More than 50% of the world population lives with chronic disease

89m people89.1 million people with the major 4 chronic conditions living in US. This figure is growing due to ageing populations

$1.7tn spend$1.7 trillion already being spent each year fighting chronic conditions in US

€700bnEuropean spend on Chronic diseases EUR 700 billion

70-80%Europe 70-80% of healthcare spend in on chronic diseases

86%86% of deaths in Europe due to Chronic diseases (source for all of this –European Commission – Health & Consumers Directorate General 2014)

14m peopleCancer is one of the world’s biggest killers, with approximately 14 million new cases and 8.2 million deaths a year

31% deathsCardiovascular diseases account 31% of all deaths worldwide

Page 6: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Holistic healthcare investmentBuilding businesses that fight chronic diseases on three fronts

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Digital HealthUsing data to provide clinical grade actionable insight.DiagnosticsNovel highly specific tests to provide earlier diagnosis, accurate monitoring of disease progression and the ability to personalize therapy based on an understanding of an individuals ability to respond to treatment.TherapeuticsNovel mechanisms of action, new targeted delivery methods and safe but highly personalized therapeutic options to significant improve or cure the disease.

Page 7: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Not just investment, we are creating valueOur sharpened growth strategy

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2013IPO on AIM

2014Dual Strategy

2015Turnaround year

Management changes

Portfolio rationalisation

Divestments of non core assets and

non performing assets

Recruitment of world class CEOs

Fundraising for PLC

2016Portfolio Management

Single focused strategy for maximum value creation

Drive towards value inflection points, external financings

Re-build pipeline –balance portfolio across Digital Health, Diagnostics and

Therapeutics

Venture creation

Venture creation

Venture creation

Venture capital

Page 8: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Experienced sector specialists with a commercial track record

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Francois Martelet, MDCEO• CEO Topotarget • CEO Avax Technologies• Senior positions at Merck

& CO, Novartis, Schering-Plough and Eli Lilly

Ian PostlethwaiteCFO• FD Allergy Therapeutics• Senior finance positions

as AFS, Ericsson, Philips Electronics

Vijay Barathan, MDChief Investment Officer• Healthcare Investment

Banker Peel Hunt and Piper Jaffray

• Medical Doctor NHS

Ernest SchneiderCommercial-Legal Director• Partner Reynolds Porter

Chamberlain and Mishcon De Reya

• Founder Schneider Page

Sir Richard SykesChairman• CEO, Chairman of GSK • Chairman NHS London• Rector Imperial College• Fellow Royal Society &

Academy of Medical Sciences

Barry WilsonNED• President of Medtronic• President of Lederle• President of BMS Europe

Prof. Stephen SmithNED• CEO Imperial College Trust• Dean Medicine, Dentistry and

health science University of Melbourne

• Founder Metris Therapeutics and GNI Group

Jonathan PaisnerNED• Founder LMN Capital• Lawyer Mathias Gentle

Page Hassan• Board Shore Capital

Page 9: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Pipeline targeting chronic diseasesAdvanced opportunities in the UK and USA

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Page 10: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Healthy investmentOur capital efficient venture creation model

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External financingsExternal financings (Series A) to support acceleration towards value inflections points

SourceUniversities, institutions, foundations, networkMost promising opportunities selected based on extensive due diligence (Science, IP, commercial)

SeedSponsored research agreements based on milestone achievements

IncubationProject manager leads early development and business building

GrowthExternal experienced CEOs brought in to commercialize

ExitSell and reinvest

Early stage funding gap navigation

Page 11: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Early stage funding gap exampleWanda

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Initial technologyDeveloped in the labs of Professor Majid Sarrafzadeh at UCLASponsored research agreement to develop the initial application

US$11m non-dilutive grant funding

2013NS project managed

2014Recruited CTO from Google and built team of developersTechnology platform advancedFirst commercial application developed for managing patients with Congestive Heart Failure

2015Steve Curd, Digital Health Veteran hired as CEOChief Commercial Officer recruited and sales teamAdditional applications in development

2016-20182016New customer HRS and others signed up for CHF and COPD applicationsNew cancer application in partnership with Dignity Health Hospital GroupInvestment to date at May 31st 2016: US$9m

Page 12: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Early stage funding gap exampleVortex Biosciences

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Initial technologyInitial technology developed in the labs of Professor Dino Di CarloSponsored research agreement to develop the initial applicationUS$2.5m non-dilutive grant funding

2013NS project managed, recruited CTO from ULCA and built team of scientists

2014Technology platform advanced – VTX 1 in development as a standalone bench top instrumentMultiple research agreements signed with Harvard and Stanford for applications

2015Product developmentSRA’s signed

2017-onwards2016Gene Walther, Diagnostics Veteran hired as CEOChief Commercial Officer recruited Manufacturing partners securedSoft launch at AACRInvestment to date at May 31st 2016: $11.4m

Page 13: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Key figures

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Listed on AIM (NSCI) Top 3 institutional shareholders

45.1% Woodford Investment Management

18.1% Invesco Asset Management

9.2% JO Hambro

£41.1mMarket Cap

80.5pShare price

£19mCash

51,075,695ISC

Page 14: 2nd Annual Capital Markets Day - NetScientific · 2nd Annual Capital Markets Day François R Martelet, M.D. CEO, NetScientific NetScientific Overview. 2nd Annual Capital Markets Day

Our goals for 2016 and beyond...

...to deliver value enhancing news flow

...to actively manage current portfolio to value realisation

...to start to build the pipeline

...to continue to build the group organically and strategically

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