Investing in Pulseboot® Les Lindsay CEO The Diabetic Boot Company Why Invest In Pulseboot? *  Easy to understand *  technology *  Clinical problem it addresses *  B2B business model *  Global $1billion opportunity *  Not NHS centric *  NHS SC registered *  Clinical interest *  *  *  *  *  Supported by Global experts IP granted in Us and GB (EPO application) Interest from Global players already CE mark granted FDA submission process begun Diabetes battle 'being lost' as cases hit record 382 million hit record 382 million (Reuters) -‐ The world is losing the battle against diabetes as the number of people estimated to be living with the disease soars to a new record of 382 million this year, medical experts said on Thursday. The vast majority have type 2 diabetes -‐ the kind linked to obesity and lack of exercise -‐ and the epidemic is spreading as more people in the developing world adopt Western, urban lifestyles. The latest estimate from the International Diabetes Federation is equivalent to a global prevalence rate of 8.4 percent of the adult population and compares to 371 million cases in 2012. By 2035, the organization predicts the number of cases will have soared by 55 percent to 592 million. "The battle to protect people from diabetes and its disabling, life-‐threatening complications is being lost," the federation said in the sixth edition of its Diabetes Atlas, noting that deaths from the disease were now running at 5.1 million a year or one every six seconds. Diabetic Foot Ulcers are hard to heal wounds Point prevalence in diabetic population 5-‐15% Lifetime prevalence in Diabetic population 10-‐25% 1 DFU related amputation every 20 seconds globally! 100 lower extremities chopped oﬀ this week in the UK Competitors Dumb Technologies With no blood pumping Design Goals for Pulseboot® *  Heal DFUs more eﬃciently *  Oﬄoad at least as well as market leader *  Pump blood through the foot *  Improve patient compliance *  Look like normal footwear *  Record patient compliance Ø Added Value; patient gets to keep footwear Ø Works with all other known DFU wound care products Business Model *  Single patient use, 1000 hours therapy *  B2B sales to distributors *  Unique product *  High Margin *  Good training & back up *  Av cost of therapy approx $10 per day = 4-‐10% of therapy cost Pulseboot needs to be only 5% more eﬀective than standard therapy to achieve break even *  36 target markets *  Small direct USA team Conservative Goals & 3 yr internal target Market potential £756m & growing ASP = £360 £30m by 2017 3.8% ms =84,000 boots 15% get oﬄoaded= 2.1m boots potential 7% = 14.5m DFUs 208 million in our 36 target markets 366 million diabetics globally Source for population data; IDF.org Thank you for listening History of DBC to date *  IP Granted Dec 2009 (UKPO) / DBC founded in Feb 2010 *  Seed funding from Directors £80k *  Further IP and early prototypes *  Angel Funds Sept 2012 £272k *  Oﬃce opened in Aylesbury *  2 employees *  R&D / Prototype reﬁnement / PoC shows good results *  TSB grant £190k *  Round 2 fundraising over subscribed £850k *  Move to production/ Begin clinical studies *  FDA submission / Begin recruiting distributors *  Next round *  full commercialisation and market penetration Financials FY end Turnover Cost of sales Gross Profit Grant income - Salaries T&E Bonus & Commissions Marketing R&D Operational General and Admin EBITDA Mar-14 Mar-15 Mar-16 146,041 146,041 842,400 306,094 536,306 16,250 552,556 10,299,600 2,159,710 8,139,890 8,139,890 125,656 39,504 119,758 330,700 14,180 76,673 192,449 36,955 20,860 169,580 216,500 88,560 80,436 542,303 182,065 81,575 259,200 90,000 608,156 274,515 706,471 805,340 2,037,814 (560,430) (252,784) 6,102,076