Edap Tms SA · NASDAQ:FOCL
Edap Tms SA — Investor Presentation (July 2006)
28 slides from Edap Tms SA's investor presentation, Jul 27, 2006
Slide 1: EDAP TMS Investor Summary
EDAP TMS Investor Summary The Global Leader in HIFU for Localized Prostate Cancer “Tis presentation contains hn action fo hitaoalnommation {onerctleoking staemerts thot invealve its andl unoertcirtcs Thee de lene ea ey eer a ar expansion lens, Such aaternants ore hated on menccyernents Philippe Chau
Slide 2: EDAP at a Glance
EDAP at a Glance Nasdaq : EDAP Business Therapeutic ultrasound Strategy Address growing demand for nen-invasive therapies using therapeutic ultrasound based on 25 year successful track record in marketing innovative technologies Shares Outstanding Basic 7.8 million Shares Outstanding Diluted 8.6 mil
Slide 3: EDAP TMS: The Global Leader in Therapeutic Ultrasound
EDAP TMS: The Global Leader in Therapeutic Ultrasound Addressing two major pathologies in Urology: Prostate Cancer Kidney Stones using HIFU using Lithotripsy Agrowing market Astable and predictable business a edaptms
Slide 4: HIFU for Localized Prostate Cancer
HIFU for Localized Prostate Cancer Prostate Gland Prostate Gland _— edaptms
Slide 5: Global Prostate Cancer Market
Global Prostate Cancer Market Prostate Cancer. The most common male specific cancer = 238,000 new cases per year in Europe**; 231,000 in the USA* = In Europe, 70% of new cases (160,000) are localized T1 or 12 cancer stages — HIFU candidates Hm} EDAP targeting 140,000+ patients in Europe ‘Currently T
Slide 6: Ablatherm Brings a New Standard of Care to Prostate Cancer
Ablathenm® Brings a New Standard of Care to Prostate Cancer EDAP is committed to: + Offer patients the best combination of efficacy and safety + Fully enlighten patients about existing treatment options + Preserve patient quality of life Ablatherm-HIFU is proven to: + Provide consistently high succe
Slide 7: Ablatherm-HIFU a Proven Option
Ablatherm-HIFU a Proven Option = The recognized Global Leader in HIF for prostate cancer + Fully Approved in Europe, Canada, Russia, Australia, South East Asia, etc. = More than 10,000 treatments and 105 sites worldwide + In excess of 100 publications and posters + Already reimbursed in Germany & It
Slide 8: Ablatherm-HIFU Favorable Benefits
Ablatherm-HIFU Favorable Benefits Ablatherm-HIFU offers: * Efficacy as good as current therapies + Low side effect risks to the patient + Rapid recovery after treatment lS Ablatherm-HIFU offers patients an opportunity fo preserve their quality of life affer treating prostate cancer a edaptms
Slide 9: Ablatherm-HIFU Favorable Benefits
Ablatherm®-HIFU Favorable Benefits Favorable Disease Free Rate at 5 years for low & intermediate tisk cancers Ablatherm-HIFU offers: = Predictable outcomes = No operator dependence Surgery BRT Cryo. Brachy HIF a * No impasse: repeatable 02% iss sae The patient can have conficlence in HIFU cs alow ee
Slide 10: Ablatherm-HIFU Favorable Benefits
Ablatherm-HIFU Favorable Benefits Ablatherm Preserves Patient Quality of Life: Lower Side Effects Recto-urethral fistula Urinary incontinence (Grade 2 to 3) ini 03-68% mi 0.19% e 0.15% vw. w 02% Sager HBR Crys Boehy MU O seoey tBR Oye Bocly Ha Sexual Impotence vase 47-95% caueeeseesé a edaptms
Slide 11: Favorable HIFU Economics for Physicians and Clinics
Favorable HIFU Economics for Physicians and Clinics Ablatherm-HIFU offers* + Rapid learning in just 10 sessions * Short treatment time increases facility efficiency + Fewerstaff hours per session lowers personnel expenses * Broad indication range makes applicable to large patient population + Capita
Slide 12: Ablatherm-HIFU: An attractive Choice to all Parties
Ablatherm-HIFU: An attractive Choice to all Parties Benefits to the Patients + Minimally invasive and proven therapy that can better preserve quality of life + Can enable rapid retum te normal activity + Highly reproducible efficacy / Treatment can be repeated if needed Benefits to the Surgeons + Mi
Slide 13: RPP Model: The Growth Opportunity
RPP Model: The Growth Opportunity Ablatherm 10,000" Ist p HIFU Service & Disposable Revenues (€000s) + EDAP eamns recuning & predictable services & Imbisposcble disposable revenues 2 + European centers have limited capital budgets + Centers must treat larger populations annually — @) edaptms —— eA *
Slide 14: RPP Model: The Growth Opportunity
RPP Model: The Growth Opportunity HIFU Treatn R ed if >40 patients ¢ ile if <40 patients per RPP Treatment Revenues (€ 000s) jefime revenue and profit oy potential to EDAI ? = RPP quickly allows centers to adopt HIFU = = RPP removes financial risk fo the center : "RPP revenues are already accelerati
Slide 15: RPP Model: Capturing the Growth Opportunity
RPP Model: Capturing the Growth Opportunity Expand RPP Business + Rapidly place more EDAP owned machines with no capital required from hospital and a clear pay back to EDAP + Provide support to increase use of equipment in marketplace: patient education and medical marketing HIFU success measures: E
Slide 16: Marketing: Put the Patient in the Center of the Communication
Marketing: Put the Patient in the Center of the Communication Partners Web sites Forums blogs, buzzinfuence _— ©) edaptms —— ee
Slide 17: Marketing: Unlock the Patient Demand for Better Care
Marketing: Unlock the Patient Demand for Better Care Telling the HIFU Story to Patients = Improve patient awareness about Quallity of Life factors in treatment = Show patients that bloodless and radi of the future is already available jon-free non-invasive surgery * Inform patients this new techniqu
Slide 18: Marketing: Win the Medical Community with Results, Easy Access
Marketing: Win the Medical Community with Results, Easy Access Telling the HIFU Story to Medical Professionals ANg)) * Demonstrate the clinical success and confirmed low side effects in peer iterature I * Continue promoting HIFU in urology through leaders in every country = Further advance the medic
Slide 19: The Next Milestone: 5% of Targeted European Patients
The Next Milestone: 5% of Targeted European Patients European Market Scop: = 160,000 localized prostate cancer HIFU candidates diagnosed yearly * Growing market share builds credibility and increases demand + Next milestone: EDAP Ablatherm-HIFU treats 8,000 patients / year = 5% market share = Curren
Slide 20: Incremental Growth Drivers
Incremental Growth Drivers Additional reimbursement approvals including more UK plans and the French National Health Plan are being secured. Approval of reimbursement has a demonstrated acceleration effect on treatment rates and site launches. Launches in new markets are ongoing where Ablatherm-HIFU
Slide 21: Lithotripsy: A Strong Base for Growth
Lithotripsy: A Strong Base for Growth EDAP TMS : A World LEADER in NON INVASIVE Treatment Techniques Using Urinary stones stone — @) edaptms —— eA
Slide 22: Lithotripsy: A Recurrent & Strong Business
Lithotripsy: A Recurrent & Strong Business Current Worldwide Installed Base > 3,000 Units Replacement Market > 300 Units / Year @ average $250,000 (= $75M / Year)* EDAP is a leader in Asia, including Japan, and Europe due to customer proximity and provided services Market Drivers: * Service Capacity
Slide 23: Lithotripsy Market
Lithotripsy Market Distribution of Global Lithotripsy Market: EDAP Installed Unit Base* Global Total: 3000 litho units ‘ ? EDAP Total: } 416 litho units _— edaptms
Slide 24: Financials
Financials Financials
Slide 25: Division Performance
Division Performance 21 2006 1948, 2005 7948 50% 135 2004 638 48% 387 oo 21 2006 3868 31s (68) 2005 16154 29% 248 2004 17385 30% 184 — @) edaptms
Slide 26: Income Statement
\ Income Statement 006 5199 ose 18 vera | sie4 or7 21.985 13.000 | Gross prost 2286 8.407 8407 5379 (ogame | (2.770) (6.820) eain (03,500) (434) (1.323) (830) (8.121) (546) (961) (871) (9.090) 7) (oa) (278) 4 (423) (1.065) 1,149), (8.976) (0.08) (0.14) (0.15) (1.15) 7908301 77278 7p 7.701781 8,608,2
Slide 27: Balance Sheet
Balance Sheet rain Nee Hein They Cash, cash equivalents and short term investments Total current assets Total curtent liabisties Shareholders’ Equity march 31 2008 Euros 7591 21,846 9.675 1687 December 31 2005 Euros eai7 22,084 9.557 178r2
Slide 28: EDAP TMS Investor Summary
EDAP TMS Investor Summary The Global Leader in HIFU for Localized Prostate Cancer This presentation contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding the Company’s growth and expansion plans. Such stat