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1 MEDIVAC LIMITED Annual General Meeting 27 October, 2011 Chairman s Address to AGM (New Slide Our Mission ) MediVac s mission is to build shareholder value by profitably developing & commercialising cleaner, safer healthcare solutions for Domestic and International markets. We are developing & delivering healthcare solutions that protect people and the environment. This is a clear point of differentiation / uniqueness that sets us apart from our competition. This commitment is at the core of the products we sell, our research and development, and our relationship with our customers, shareholders and the community at large. Our core two technologies can be summarised as follows: (New Slide MediVac Technology ) MediVac Technology provides the best practice environmentally friendly solution to the handling and remediation of clinical and quarantine waste through a unique range of clean technologies the MetaMizer and the Ozonator. (New Slide SunnyWipes ) SunnyWipes is a more natural eco friendly range of antimicrobial hand sanitising gels and general virucidal and antimicrobial hard surface wipes that contain no harsh chemicals, are gentle on skin and are both recycleable and compostable.
2 (New Slide - FY 2011 Year in Review ) 2 I am pleased to report that Medivac Limited group has significantly improved its financial performance in the financial year ended 30 June 2011, when compared with the previous corresponding year. This was a notable achievement given the economic conditions during the year under review and the investment made in completing its key commercialization activities. FY 2011 has seen the completion of MediVac Limited s two key development activities the new MetaMizer 240 SSS clinical waste converter and SunnyWipes professional range of natural based antimicrobial hand sanitisers and general virucidal wipes. Whilst there have been some frustrating delays in extracting favourable decisions from domestic and overseas governments, we believe the company is in its best ever position to capitalize on the investment in its two key technologies The Company was able to fund this development investment through successful capital raisings of $2.638 million and borrowings from shareholders and third parties, whilst at the same time maintaining a rigid focus on cost reduction and containment and reducing overall debt. As a result net equity was increased. After conducting an extensive search for a commercialisation partner for Diakyne, the Company believes it more prudent to sell its non-core Tracesmart technology and accordingly, after taking advice from an independent valuation expert, has taken an impairment charge of $343,049 in the FY 2011 accounts against the carrying value of the Diakyne subsidiary and the Tracesmart technology. Operating profit (loss) from continuing operations for the FY 2011 year of (A$1,965,066) was an improvement of 21% on the previous (FY 2010) period. After taking into account the above impairment charge, net loss was still an 8% improvement on the previous period. I would like to take you briefly through a summary of key highlights from each of our operating divisions. (New Slide MediVac Technology )
3 MediVac Technology has significantly improved its market positioning and product offering. Development of the new MetaMizer MM 240 SSS clinical waste converter was completed. The new MetaMizer has significantly higher capacity, improved durability and longevity, and reduced maintenance costs, increasing its appeal to a large potential global market. 3 With its partner CME Medical, the Company has secured a Memorandum of Understanding (MOU) with the Sri Lanka Ministry of Health for a potential order of a minimum of 25 new MetaMizer 240 SSS machines with revenue of in excess of A$ 15 million over four years. (New Slide Recent Progress ) Full functionality testing of the new MetaMizer MM 240 SSS has now been completed with results exceeding expectations, including faster throughput, even higher capacity and ability to treat alternative feedstock. The first new MetaMizer is ready for sale and shipping. It is expected that this will occur shortly, once one of the company s key customers has received requisite local approvals for its new facility. MediVac is also progressing with a significant number of other opportunities for the new MetaMizer both those previously announced and further new ones - in both domestic and export markets. The timing of some of these deals especially where Governments are involved, is and has been, beyond MediVac s direct control - but we remain confident that these are very much alive. Inventory building is underway for the next three machines. The new MetaMizer will also be showcased next month at Medica in Dusseldorf, Germany. (New Slide Sri Lanka ) Despite the ongoing delays out of our direct control, the large export order for Sri Lanka is still very much alive and we are confident of bringing this initiative to fruition. I am pleased to report today that the Sri Lanka Government Technical Evaluation Committee has approved our proposal and we are moving forward in the process.
4 Whilst we understand and share the frustration caused by the ongoing delays impacting this project, we do assure all shareholders that the project is most certainly still a real opportunity for our company and will be a major milestone. 4 As previously advised, this project will ultimately require confirmation of the funding facilities to be provided by the Export Finance and Insurance Corporation (EFIC), the Australian Government s export credit agency, EFIC has issued a letter of indication to the Sri Lankan Government to consider providing financial accommodation for this deal. Any provision of financial accommodation by EFIC is, among other things, subject to satisfactory due diligence being undertaken, credit approval being obtained, the provision of an offer by EFIC and the finalisation of contracts and documentation. This offer remains open. (New Slide Other Opportunities ) I have just yesterday returned from a business development trip to Russia and Asia and am pleased to report on some new key opportunities in those markets. Our partner in Russia and the CIS States Medical Company Limited, a division of Delrus Russia has identified a number of significant new opportunities in several regions of the Russian Federation. I visited some of these regions and it was obvious that Medical Waste Utilisation is a hot topic and regional governments are tightening regulations regarding the safe treatment of medical waste. Our distributor is well placed and connected to deliver on these opportunities, which could be as high as 7 to 12 new MetaMizer MM 240 s over the next 2 to 3 years. This is of course subject to contract negotiations, including pricing terms etc. We have also more recently identified new market opportunities in Malaysia, Western Australia and the Antartic. The new MetaMizer is an excellent environmental fit for the latter market. (New Slide Other Opportunities ) In tandem with our MM 240 SSS, we have the distribution rights for the Ozonator, a complementary cleaner, safer technology using ozone as the sterilisation agent. We are targeting opportunities with major airports, ports and very large hospitals.
5 5 (New Slide SunnyWipes FY 2011 Highlights ) SunnyWipes has completed the development of its new professional range of natural based antimicrobial hand sanitisers and general virucidal and antimicrobial workplace wipes. Both the gel and wipes ranges are now registered on the Therapeutic Goods Australia (TGA) register making SunnyWipes the world s first Type 1 Eco certified and professionally registered range. Following successful trialling, we have secured distribution with NSW Ambulance for SunnyWipes Antimicrobial Hand Sanitising & Moisturising Gel. Paramedics user feedback was overwhelmingly positive. SunnyWipes has also continues to invest in international Patent (PCT) applications for intellectual property protection. (New Slide SunnyWipes Recent Progress ) As recently announced, SunnyWipes has secured distribution for its new professional range of natural based antimicrobial hand sanitisers and general virucidal and antimicrobial hard surface wipes through Bunzl Outsourcing Services Limited. Bunzl is a leading supplier of a range of business-to-business consumable products in Australasia, and delivers value-added distribution and outsourcing solutions across healthcare, industrial, hotel and catering, retail and safety markets. This is the most significant achievement to date in the commercialisation of SunnyWipes. With Bunzl as a distribution partner, we now have access to their wide distribution, marketing and logistical expertise. The first priority for this partnership has been to submit joint submissions for the NSW Government Hand Hygiene and Wipes tenders. This follows other distribution gains with Critical Dental and the Australian Diabetes Council.
6 6 The new SunnyWipes range will also be featured at Medica (New Slide SunnyWipes R & D ) Leveraging our unique IP, research & development work has been completed for the new SunnyWipes Antimicrobial Hand Rub. We have successfully completed necessary efficacy, safety and stability tests achieving internationally recognised standards as a surgical hand rub and skin wash pre op antiseptic, and also complying to international benchmarks EN and EN The market potential for hand rubs is huge, being significantly higher than that for gels. With the above results in hand, we are now preparing our TGA submission for the new hand rub. (New Slide Increased market exposure and PR ) MediVac has showcased its world leading technologies at domestic and international trade shows, including Medica in Germany, the Australian Hospital Waste Management Conference and the Australian Infection Control Association Exhibition. SunnyWipes was also invited to join collaborating activities and to work with the World Health Organisation (WHO) and other worldwide stakeholders to improve world hand hygiene practices with its First Global Patient Safety Challenge: Clean Care is Safe Care initiative. (New Slide Increased market exposure and PR ) The Company has received increased market exposure through several independent research reports, various media interviews, publications and forums. Positive feedback was received from investor road shows in Sydney, Melbourne and the USA. (New Slide Other highlights ) As we move from an R & D focussed company, your Board felt it necessary to enhance both the Board s and Management s capabilities.
7 As a result, The Hon. Reba Meagher and Helen Owens were appointed as Non Executive Directors of the Company bringing strong healthcare and government experience. 7 In addition, the Company appointed Vishal Khanna as Finance Manager and Paul Cross as Business Development Manager. The Company has maintained, and will continue to maintain, a rigorous focus on cost reduction and cost containment. As part of this containment, the Company closed its Melbourne Office and consolidated all operations into new premises at Kings Park in Sydney. The new premises has ample capacity for increased output and assembly capability for the new MetaMIzer 240SSS. (New Slide FY 2012 Key objectives ) Our focus moving forward is to turn MediVac into a revenue and profit focussed business. This will entail achieving the following objectives: Secure the significant export order for the new MetaMizer MM 240 SSS with CME Medical and the Sri Lanka government. Achieve other significant MetaMizer sales, both in Australia and in export markets. Build assembly capability and inventories for the new MetaMizer. Undertake and complete necessary trials amongst health care workers to secure listing for its products in key State Hospital Public Health systems. Identify and appoint further key international partners for both the MetaMizer and SunnyWipes. Achieve TGA listing for SunnyWipes new Antimicrobial Hand Rub. Complete a trade sale of the Diakyne TraceSmart technology
8 (New Slide Potential quoting on OTC QX ) 8 Earlier this year in conjunction with Arrowhead Business and Investment Decisions, I undertook an investor road show in the USA. There was strong interest in MediVac s technologies from potential investors. Following almost universal recommendations from these prospective US investors, the Company will investigate the possibility of its shares being quoted on the US OTC QX exchange. The OTC QX market provides a cost effective means for increased visibility and exposure to US institutional and retail investors, facilitating investment in MediVac. The OTC QX also creates liquidity and diversifies the Company s shareholder base, and has the potential to increase both Australian and global trading volume and value. (Closing Slide) The Company is most appreciative of the support of its shareholders and investment partners in funding the past twelve months and securing future working capital. With the majority of our development work completed and secured funding in place, the Company s focus will be to convert this investment into sales. In closing, I would like to express my gratitude to the Company s employees and Directors for their dedication, energy and continued enthusiasm and support. I would like to express my gratitude and appreciation to the Company s employees and Directors especially to retired Director, Mr Stephen Copulos and retiring Director, Mr Pete Steve - for their dedication, energy and continued enthusiasm and support. I also welcome the Hon. Reba Meagher and Ms Helen Owens to the Board. FY2012 promises to be an exciting year in the evolution of MediVac Limited. We are excited with the demand for our products and we will now be concentrating on building assembling capability and inventories to meet market demand
9 We look forward to a stronger period ahead. 9 Thank you. Paul McPherson Executive Chairman & Chief Executive Officer
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