SUPER WEAR. The first skin-like wearable that improves your back.

Transcription

1 The first skin-like wearable that improves your back. In the next decade, billions of people will benefit from a wearable device that connects to their smartphone. Issued by SuperWear Pty Ltd

2 IMPORTANT NOTES AND DISCLAIMER This presentation is confidential and is being provided to prospective investors with information on SuperWear Pty Ltd (SuperWear). Its use for any other purpose is not permitted. It may not be reproduced or redistributed, in whole or in part, and its contents may not be disclosed to any person. These slides have been prepared as a presentation aid only and the information they contain may require further explanation and/or clarification. Accordingly, these slides should not be relied upon as an independent source of information. The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking statements in this presentation have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events are subject to risks, uncertainties and other factors, many of which are SuperWear s control. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its Directors and management. Although the Company believes that the expectations reflected in the forward looking statements included in this presentation are reasonable, none of the Company, its Directors or officers can give, or gives, any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this document will actually occur or that the assumptions on which those statements are based will prove to be correct or exhaustive beyond the date of its making. Investors are cautioned not to place undue reliance on these forward-looking statements. Except to the extent required by law, the Company has no intention to update or revise forwardlooking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this presentation. This presentation should not be relied on as a recommendation or forecast by SuperWear. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. Important factors that could cause actual results to differ materially from assumptions or expectations expressed or implied in this presentation include known and unknown risks. Because actual results could differ materially to assumptions made and SuperWear s current intentions, plans, expectations and beliefs about the future, you are urged to view all forward looking statements contained in this presentation with caution.

3 INVESTMENT OVERVIEW 1. Super Wear Founded by Michael Simonetti, Owner and Director of digital agency AndMine.com. Michael s Idea for SuperSpine came after experiencing back pain following a hit-and-run accident 2. Products development over three years in conjunction with The University of Melbourne. 3. Clear unmet market need to create a wearable sensor device that would enhance and promote good posture. 4. Created SuperWear to commercialise and launch SuperSpine as its first product and to create a suite of wearable products. 5. Company value further underpinned by early IP filing date of skinlike resistive adhesive sensor October SuperSpine - final stages of product development and early product sales anticipated 9 months post funding finalisation 7. Market ready Product set to be developed by Hydrix 8. Experienced board, management and technical team 9. SuperWear has local and global opportunities 10. First year sales through Practitioner Network

4 EXPERT TEAM Michael Simonetti Managing Director Andrew Batty Chief Operating Officer Peter Marks Corporate Advisor Duncan Bucknell Intellectual Property Advisor Jason Chen Product Engineer Michael Dermanski Physiotherapist Scientist and engineer developed the initial product after a suffering a hit-and-run accident and looking for alternatives to back surgery. His company Andmine.com are experts in successfully marketing products for profit. MedTech Professional with extensive network in medical device industry. Proven track record generating revenue from new technology. Network includes AusIndustry and securing matched funding grants for projects. 30+ years in corporate finance specialising in capital raisings, underwritings, IPOs And Venture Capital (VC) transactions in Australia and cross border investment. Provides leading IP and patent advice and services for Australian and global clients. Built the strategy for our skin-like sensor and product patent and is managing the global patent process with our applications in Asia, Europe, USA and Australia. Part of the initial product development team and Melbourne University, Jason s expertise and knowledge in the technical product is unmatched. He s onboard to transition the prototypes for the commercial development partners. Enhancing in the product pathways for practitioners for profit and patient benefits. Michael is an MBA from Melbourne University who owns the market leading MDHealth. They use data in all aspects of their patients progress and see wearables as major part of wellness future.

5 DEVELOPMENT PARTNERS MU s Electrical Engineering Department built Superwear prototypes for Patent validation and pre-market testing. They remain partners in the product to see it commercialise A leading Australian digital agency partner who provide the marketing and online advertising pathways for the practitioner launch year 1 and consumer launch year 2+ As electronic device commercialisation experts, Hydrix are partnering Superwear to ensure our to-market product is robust and user aligned for easy of use, practical and robust. Physiotherapists and patients have guided the product development for real world application and app data benefits, validating the product for practitioner distribution and direct consumer sales. Cutler leverage their medical grade and print innovation expertise to produce the sensors for mass market.

6 WEARABLES MARKET Both Apple ios and Google s Android support the personal wellness market. Personal health technologies are driven by mobiles first. SuperSpine aligns with this established and growing wearable market which is estimated to be at $34 billion by 2020 [Source: Forbes]. Low back & neck pain Costing the US alone $88bn a year [US Govt, 2016]

7 THE ISSUE : BACK PAIN Sitting for at least 8 hours a day could increase the risk of premature death by up to 60% [SMH, 2016] Sitting for long stretches of time may be just as dangerous as smoking [CBS, 2012] Epidemic of untreatable back and neck pain costs billions, study finds [Guardian, 2014] Low back & neck pain Costing the US alone $88bn a year [US Govt, 2016]

8 THE SOLUTION : SUPERSPINE SuperSpine is a simple to use, low profile, skin-like flexible wearable and mobile app to improve posture and total well-being ü Easy to apply adhesive strip with 16 sensors to monitor posture ü Placed down the centre of the spine to monitor spine curvature ü Skin-like feel means wear is not noticeable by the user ü Poor posture identified in real time and alerts mobile app. ü Improves posture significant health benefits ü May assist physiotherapy or chiropractic intervention with monitored data ü May assist with back pain treatment to reduce the reliance on anti-inflammatory or pain medications

9 COMPETITORS SuperSpine UpRight Pro Lumo Lift Alex Aligned Posture Shirts Posture Pulse Description Entire spine Lumbar device Waist belt Sits around neck Garments Waist belt Disposable ü û û û û û Ease of use ü ü ü ü ü ü Adhesive ü ü û û û û Skin-like ü û û û û û Price AU$150 for 30 days US$ for 60 days US$79.00 US$69 US$99 per garment US$79

10 PATENT PROTECTION October 2014 Unique Value Proposition Patent Early Filing date for Skin-Like Resistive Ink Sensors US UK EU China / HK Global Benefit Patent filing has the potential to corner the market on low cost Skin- Like Sensors Australia

11 PATENT PROTECTION Once granted, the patent ensures SuperSpine can be the premier skin-like responsive device in market. SuperWear has filed a patent application based on the product s unique features and IP advisors are confident of securing a viable patent. All IP in this project resides in SuperWear Pty Ltd. The IP position gives the company a competitive edge and creates barriers for competition to enter the market. The possible leverage of a resistive ink, skin-like sensor patent is huge. New applications from personal to medical are almost limitless.

12 ACCESSING MARKETS Target Customers ü Office workers / white collar ü ü Children / teenagers Patients, medical distributors, health insurance companies and medical associations US UK EU China / HK Channels ü Health Care Professionals (Practitioners) ü ü Retail and Pharmacy Direct Digital Sales (via ecommerce) Australia

13 GO TO MARKET STRATEGY 2018 B2B Professionals Rollout! Complete engineering of the SuperSpine Gen 1 product ready for sale FY19 (Practitioner Product)! Engage healthcare professionals and recruit 3 rd party distribution offering a margin on sales.! Go-to-market via healthcare professionals for cost effective distribution, sales ROI and credibility! Build direct sales channels including direct online and retail, wellness practitioners and other suitable distributors Package SuperSpine;! Starter Pack consisting of 2 x 10 sensor strips and a transmitter ; and! Replacement Pack of 1 x 10 sensor strips.! Target international and domestic sales! Begin the regulatory process to register SuperSpine as a medical device B2C Sales and New Products! Marketing and Direct Sales to Consumers of Gen 1 Product.! Continue product development for a Gen 2 SuperSpine device (B2B Practitioner vs. B2C Consumer Product Options)! Expand the Super Wear range using the skinlike sensor to be used on wrists, elbows, knees, shoulders or any body part! SuperWear can effectively create the gateway to consumer wellness through a variety of sensors channelled through the single SuperWear App

14 FINANCIALS Sitting for at least 8 hours a day could increase the risk of premature death by up to 60% [SMH, 2016]

15 USE OF FUNDS $1,000,000 Establishment & launch capital to maximise investment to date Secure $1,000,000 Matched Grant Funding from AusIndustry Product Development $445,000 Marketing $50,000 IP Protection $65,000 Manufacturing $300,000 Contingency $140,000 Commercialisation in 9 months, establish supply chain, partnerships & reach first revenues Matched funding to be utilised for B2C Marketing, and Reduce or Eliminate need for Share Dilution

16 REVENUE MODEL Practitioner Conservative With RRP Incentive $28M Consumers Conservative $37M Global x 50

17 Y/Y PROFIT ($AUD Millions) UNITS SOLD k 100k 150k 200k 300k Revenue Profit

18 SHAREHOLDING STRUCTURE Current Michael Simonetti 100% Investment finalisation; 1.0m for 40% of expanded capital. $225k purchases 10% Investment Finalisation Michael Simonetti 40% Stakeholders 20% Investors 40%

19 INVESTMENT HIGHLIGHTS Back pain causing by poor posture and slouched sitting is a chronic health issue with no simple consumer solutions available SuperSpine, the first SuperWear product, has the potential to reduce the increasing incidence of degenerative spine disease SuperSpine promotes wellness and may reduce the incidence of issues associated with poor posture in a cost-effective + easy to use wearable Provisional patent application filed to protect key elements of the low cost, skin-like sensor technology in October 2014 and creates barriers for competitor entry Go-to-market strategy targeting consumers with back pain, office workers and wellness practitioners who would realise the greatest benefit SuperWear has experienced operational and technical team to commercialise SuperSpine both in Australian and international markets Strong financial potential once SuperSpine is an accepted solution for posture correction with an ongoing, high margin consumable Consumer wellness wearables have corporate M&A appeal for tech +health companies. Interim ROI from dividends once profitable SuperWear technology has the potential expand and remedy issues with wrists, elbows, knees, shoulders Sitting for long stretches of time may be just as dangerous as smoking [CBS, 2012]

20 INVESTMENT OPPORTUNITY Applicants should read the Information Memorandum (IM) for SuperWear Pty Ltd in its entirety before completing an Expression of Interest in this Offer. The Information Memorandum is available on request; Peter Marks : pmarks@henslow.com For Questions regarding Super Wear and SuperSpine, please contact Michael Simonetti at AndMine.com (03) SuperWear.com.au