Announcement PDF WHO IS ATOMO AND WHAT DO WE DO? Our unique portfolio of test solutions are increasingly relevant in a diagnostic market transitioning to decentralised and at-home environments WHO IS ATOMO? WHAT DO WE DO? Headquartered in Australia and with operations in South Africa, we Point of Care Rapid Test Products: develop, manufacture and supply innovative rapid tests and test devices • Supply of commercialised rapid blood test for HIV across into Point-of-Care (POC) and self-test/consumer markets global markets and launch pending for blood pregnancy • Interest in a range of infectious disease and wellness Our solutions are increasingly recognised as delivering best-in-class usability & accuracy and delivering high levels of user preference applications where Atomo’s channel partners have expressed interest across rapid testing applications Proven usability and an ability to secure hard to achieve blood-based approvals in key markets gives Atomo potential to achieve first mover success in key international markets Point of Care Test Platform Technology: • Commercialised solutions supplied to partners requiring improved usability, or seeking CLIA waiver / self-test approvals Atomo’s products offer a significant growth opportunity as the market continues to shift to decentralised and at-home testing post-pandemic • Custom cassette solutions (blood and swab-based) developed for diagnostic partners in lateral flow and rapid molecular markets ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 2 H1 FY24 - PROFIT & LOSS AUD H1 FY24($m) H1 FY23($m) • (%) Normalised revenue doubled period on period from <$1m to $1.92m, suggesting increasing demand for Atomo products and technology Revenue 1.92 1.36 Cost of sales (1.05) (1.12) Gross Profit 0.87 0.24 Gross Margin 45% 18% Less COVID-19 rapid test sales 41% • gross margin for the period ended H1 FY24 at 45% 263% • (0.39) Normalised gross margin also improved materially when compared with H1 FY23, with Revenue of $1.92m includes $1.52m relating to finished product sales and $407k relating to sales of OEM cassettes. Orders continue to be received supporting H2 FY24 Normalised Revenue* Normalised Gross Margin* Other income 1.92 0.97 45% 39% 0.58 0.61 98% (5%) outlook • With historical investment already made supporting Atomo’s core business infrastructure, patents, products and manufacturing capacity, key focus is directed Employee benefits expense (2.33) (2.41) 3% Foreign exchanges gains/(losses) 0.01 0.09 89% Research and development costs (0.11) (0.38) 71% Professional fees expense (0.34) (0.42) 19% Inventory obsolescence expense (0.02) (1.05) 98% Other expenses (0.96) (1.35) 29% Underlying EBITDA (2.30) (4.67) 51% a ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) towards reducing business costs and investing prudently in key areas of the business to support revenue generating activities • Ongoing measures continued to reduce operating expenditure with expenses moderating and are within target at less than $600 per month *Excluding COVID Prior year comparative includes $1m COVID stock provision 3 H1 FY24 – BALANCE SHEET H1 FY24 FY23 AUD ($m) ($m) Cash and cash equivalents 6.51 6.47 Trade and other receivables 1.31 1.82 • Cash balance of $6.51m at 31 December 23 and debt free • Capital raised during the period resulting in share capital increase of $2m net of costs Inventories 1.81 2.14 Property, plant and equipment 2.06 2.51 • Capitalised expenditure relating to R&D and PPE was insignificant during the period. With investment in infrastructure already completed, Intangible assets 3.08 movement largely driven by depreciation/amortisation in line with useful 3.30 life assessments of assets Other assets 0.15 0.23 Total assets 14.92 16.47 • Ongoing targeted investment continues to focus on expanding finished products sales and securing new OEM cassette business (development Trade and other payables 0.69 0.86 Other liabilities 0.54 0.82 Total liabilities 1.23 1.68 Net Assets 13.69 14.79 ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) fees and cassette supply), utilising Atomo’s existing technologies and IP 4 H1 FY24 – CASH FLOW • Cash receipts for the period totalled $4.8m • ~$2m was received from product sales and an additional $761k received from the R&D tax rebate • Capital raised during the period net of transaction cost ~$2m • Cash payments for stock of $734k • Total Cash inflow for the H1 period was ~$50k - a small top up raise, increased sales revenues, improved gross margins and reduced operating costs all contributed to Atomo’s improved cash position ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 5 IMPROVING REVENUES AND MARGINS Revenue Gross Profit 50% 1.0 2.5 45% 40% 0.8 2.0 35% 30% 0.6 $’000 $’000 1.5 25% 20% 0.4 1.0 15% 10% 0.2 0.5 5% 0% - H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY22 H1 FY24 H2 FY22 H1 FY23 GP Revenue (Excld Covid) H2 FY23 H1 FY24 GP % (Excld Covid) • Revenue, Gross Profit and underlying Gross Margin all show material improvement as the company emerges into a more user- • Increasing market traction outside of global health channels sees quality of revenue and gross margins continue to improve focused market post COVID ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 6 REDUCING BUSINESS COSTS AND LOSSES Rolling 12mth EBITDA* (Excl. COVID) Operating Expenditure* 6.0 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 0.0 5.0 (0.2) (0.4) 4.0 (0.8) 3.0 $’000 $'000 (0.6) 2.0 (1.0) (1.2) (1.4) 1.0 (1.6) 0.0 H1 FY22 H2 FY22 H1 FY23 H2 FY23 (1.8) H1 FY24 (2.0) • OPEX continues to reduce materially having come down ~30% over • Growing margins and reduced operating costs see EBITDA loss now reducing the last two years, with further reduction implementation ongoing with further improvement expected to continue into the future as core in H2 FY24 business grows and new customers come to the technology *Operating expenses and EBITDA prior to one-off stock obsolescence H1 FY23 for COVID Stock $1m ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 7 DRIVERS OF MARKET ACCEPTANCE Pascal has been independently validated* as delivering very significant reduction in user errors and high levels of user preference: This combination of offering unmatched ease of use and reliability in the hands of untrained users makes Atomo’s solutions increasingly attractive in a user focused market Recent milestones such as US FDA approval and securing contacts to supply leading retail chains such as TESCO in the UK provide further evidence of the value proposition to potential partners 90% of participants found the Pascal reduced critical errors by Pascal test easier to use than a more than 90% compared to a multi-component kit* multi-component kit* *Pascal Usability Study 2023 – Ergonomie Laboratories ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 8 NOVEL TECHNOLOGY – INCREASINGLY MARKET RELEVANT Atomo offers partners a broad range of unique products that fundamentally improve rapid testing performance and user acceptance BLOOD TEST SOLUTIONS SWAB TEST SOLUTIONS INTEGRATED REAGENT SOLUTIONS DIGITAL HEALTH SOLUTIONS A range of proprietary integrated blood test Portfolio of patents and device development Direct supply opportunity to OEM device Digital IFU to improve usability. Automated devices proven to reduce common errors that improve swab and saliva rapid testing partners and POC cassette developers; esp. Image Recognition to interpret results in rapid molecular and microfluidic markets (removes errors and improves precision) multiple test applications, including many Frangible seal delivers best in class precision Result quantitation and traceability existing Quidel-Ortho rapid test products and multi-stage reagent delivery with rapid testing and improve usability, especially with untrained self-test users Commercialised across an increasing range of Supports a broad range of swabs with clinical applications Patented Blood delivery QC algorithm to Compatible with existing standard cassettes Co-commercialisation/license or component ensure valid assay result supply options ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 9 USER-FRIENDLY RAPID TESTING COMES OF AGE Post COVID and post US FDA approval of Pascal, Atomo is seeing increasing awareness of and interest in its novel integrated rapid test solutions Re-emerging OEM Technology demand post COVID: Existing OEM customers NG Biotech and Lumos Diagnostics both reordering after COVID hiatus and making good progress since recommencing activities related to their Pascal bloodbased tests post COVID: • Lumos secured US 510k approval from FDA (to add to existing Health Canada, Australian TGA and CE Mark) • NG Biotech secured Brazilian product registration and recently secured a distribution agreement with TOWA Pharmaceutical covering launch in a number of European countries Establishing a new expanded customer base for Atomo’s integrated OEM test cassettes: Increase enquiries and commercial discussions related to accessing Atomo products and technology • A $3m grant funded partnership with Nexsen Biotech and RMIT related to a Step B rapid test utilising Atomo’s Swab https://lateralflowconference.com/ test device and product development capabilities* • An inaugural purchase order from a global diagnostic company relating to assessment of Atomo cassettes for potential use with a diagnostic reader system • Several on-going custom cassette development discussions post Atomo presenting at the Advanced Lateral Flow Conference (ALFC 2024) in San Diego earlier this month https://www.rmit.edu.au/news/all-news/2024/feb/strepsure ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 10 ATOMO’S HIV BUSINESS Atomo saw good momentum in its HIV business develop this last year due to two main trends: • Increasing adoption of consumer self-test through mainstream retail channels • Recognition by public health of the need to utilise self-test to manage HIV Atomo’s contract with Newfoundland Diagnostics has Atomo’s global health partner Viatris continues to promote seen our HIV test recently launched in Tesco the Mylan branded version of the Atomo HIV Self-Test supermarkets across the UK and in pharmacy stores across Africa, with good progress made in a number of across Germany, with more than 400,000 tests national tenders recently. ordered in the first year Grindr for Equality Team’s Equality Outreach Manager, Steph Niaupari, and Director Jack Harrison-Quintana visiting Atomo’s Cape Town Facility Atomo being the only HIV Self-Test manufacturer producing in Africa continues to generate interest from leading global health funders ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 11 ATOMO’S AUSTRALIAN HIV BUSINESS HIV Sales (Australia Only) H1 FY24 100 90 80 $'000 AUD 70 60 50 40 30 20 10 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 HIV - Aus Revenue Over the last two years Atomo has helped pilot innovative 30 Nov 2023: Based on a growing body of Increased options for accessing HIV Self-Tests ways to access HIV testing in Australia, including vending evidence demonstrating demand for HIV outside of Pharmacy channels has enabled Atomo machines in Universities and adult premises, as well as a Self-Testing, the Australian Government to grow its HIV business locally ‘free to user’ funded home delivery program adopts HIV Self-Test as a key pillar of the its management of HIV moving forward It is anticipated that the formal adoption of HIV Self Test as a pillar of Government policy into health budgets will further drive demand for Atomo’s HIV Test over the coming years https://hivtest.au/ ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) https://www.health.gov.au/resources/publications/hiv -taskforce-report?language=en 12 FIRST BLOOD BASED PREGNANCY SELF-TEST PREGNANCY TO MARKET* The AtomoNOW rapid pregnancy test is a unique solution in a very large addressable consumer test market Our blood-based pregnancy test offers a number of significant advantages over traditional urine based rapid tests: • Earlier detection of pregnancy and more reliable in the early phases of pregnancy • Can perform the test at any time of day (rather than needing first flow with urine) Atomo and NG Biotech (NGB) have been generating additional data requested by TGA. Atomo submitted a response end of January and remains hopeful that both versions of the product will receive regulatory approval for Australia during 2024 NGB secured a strategic partnership agreement with multinational TOWA Pharmaceutical covering NGB’s version of the Pascal based blood pregnancy self-test with launch planned in April across several European countries, and seeing NGB now ordering an additional container of Pascal devices to support this demand We consistently see that 1 in 5 pregnancy test purchasers would buy AtomoNOW** Matches the proportion who feel very positive about the concept and express that they are very interested in purchasing it (unpriced) and the proportion who say they will buy it at US$20 **Independent survey of 300 women aged 18-45 in Australia who bought a pregnancy test in the last 12 months * The Test is commercialised in France, the UK, Brazil and other markets under the NG Biotech brand ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 13 KEY PRIORITIES AND GROWTH DRIVERS Continued growth of HIV business revenues and margins: • Extension of the Newfoundland agreement covering Europe for a further 5 years • Expansion of HIV ST into public health in Australia as policy opens up funded demand Expansion of OEM Cassette business post COVID: • Re-emergence of sales to existing customers and expansion of their products into new markets • Expanding customer based for existing cassettes • Securing additional funded development agreements for custom cassette solutions Completion of regulatory approval of Atomo’s pregnancy blood test in Australia Continued reductions in OpEx to minimise burn rate while revenues grow ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) 14 DISCLAIMER This presentation has been prepared by Atomo Diagnostics Limited (“Atomo”) based on information available as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision. Reliance should not be placed on the information or opinions contained in this presentation. An investor must not act on the basis of any matter contained in this presentation but should make its own assessment of Atomo as part of its own investigations. This presentation has been provided for general information purposes only. It does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in Atomo, nor does it constitute financial product advice or take into account any individual’s investment objectives, taxation situation, financial situation or needs. Although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and that the opinions expressed are fair and reasonable, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, neither Atomo, nor any of its officers, directors, employees and agents, nor any other person, accepts any responsibility or liability for the content of this presentation including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of or reliance on any of the information contained in this presentation or otherwise arising in connection with it. This disclaimer also extends to all and any information and opinions contained in, and any omissions from, any other written or oral communications transmitted or otherwise made available to the recipient in ATOMO DIAGNOSTICS LIMITED | (ASX: AT1) connection with the opportunity outlined in this presentation and no representation or warranty is made in respect of such information. The information presented in this presentation is subject to change without notice and Atomo does not have any responsibility or obligation to inform you of any matter arising or coming to their notice, after the date of this presentation, which may affect any matter referred to in this presentation. The cover image is illustrative only. This presentation may contains certain forward looking statements that are based on Atomo’s beliefs, assumptions and expectations and on information currently available to Atomo management. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or performance of Atomo to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding present and future business strategies and the business, economic and competitive environment in which they operate in the future, which are subject to change without notice. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast. To the full extent permitted by law, Atomo and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, but not limited to, any assumptions or expectations set out in the presentation). 15