CleanSpace : Half Year FY22 Results Presentation

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HALF YEAR FY22 RESULTS

PRESENTATION

CLEANSPACE HOLDINGS LIMITED (ASX:CSX)

CleanSpace designs and manufactures innovative respiratory protection solutions for healthcare & industrial employers globally

We understand the importance of best-in-class personal protective equipment that not only performs, but allows the wearer to work comfortably and interact naturally in their work environment. Our products are designed for maximum compliance and comfort in the industrial and healthcare setting.

FEBRUARY 2022

CleanSpace Holdings Limited | 1H FY22 Results Presentation | February 2022

IMPORTANT NOTICE & DISCLAIMER

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ACCEPTANCE

This presentation has been prepared by CleanSpace Holdings Limited (ACN 150 214 636) (CleanSpace).

By accepting, accessing or reviewing this presentation, you acknowledge and agree to the terms set out in this Important Notice and Disclaimer.

SUMMARY OF INFORMATION

This presentation has been provided to you solely to convey information about CleanSpace and its related entities, and their activities, for the half year ended 31 December 2021. The information in this presentation is general in nature and does not purport to be complete, nor does it contain all the information which a prospective investor may require in evaluating a possible investment in CleanSpace. It has been prepared by CleanSpace with due care, but other than as required by law, no representation or warranty, express or implied, is provided in relation to the accuracy, fairness or completeness of the information. Statements in this presentation are made only as of the date of this presentation, unless otherwise stated, and the information in this presentation remains subject to change without notice.

None of CleanSpace, its representatives or advisers is responsible for updating, or undertakes to update, this presentation. Items depicted in photographs and diagrams are not assets of CleanSpace, unless stated.

This presentation should be read in conjunction with CleanSpace's Half-Year Financial Report for the year ended 31 December 2021 as well as other periodic and continuous disclosure information lodged with the ASX, which are available at www.asx.com.au and the CleanSpace's Investor page accessible via https://cleanspacetechnology.com/investor/.

NOT FINANCIAL PRODUCT ADVICE OR OFFER

This presentation is for information purposes only and is not a prospectus, product disclosure statement, pathfinder document for the purposes of section 734(9) of the Corporations Act or other disclosure document under Australian law or the law of any other jurisdiction. It is not, and should not be considered as, an offer, invitation, solicitation, advice or recommendation to buy or sell or to refrain from buying or selling any securities or other investment product or to enter into any other transaction in any jurisdiction. It has been prepared without accounting for any person's individual objectives, financial or tax situation or any particular needs. Readers should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs, make their own enquiries and investigations regarding all information in this presentation including but not limited to the assumptions, uncertainties and contingencies which may affect future operations of CleanSpace and the impact that different future outcomes may have on CleanSpace, and seek legal and taxation advice appropriate for their jurisdiction.

FINANCIAL DATA

CleanSpace's financial results are reported under International Financial Reporting Standards (IFRS). This release includes certain non-IFRS measures including EBITDA and Free Cash Flow. These measures are presented to enable understanding of the underlying performance of the Company without the impact of non-trading items and foreign currency impacts. Non-IFRS measures have not been subject to audit or review.

All currency figures in this presentation are in Australian dollars ($ or A$) unless stated otherwise.

CleanSpace Holdings Limited | 1H FY22 Results Presentation | February 2022

EFFECT OF ROUNDING

A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.

PAST PERFORMANCE

Past performance of CleanSpace, including past share price performance, cannot, and should not, be relied upon as an indicator of (and provides no guidance as to) future CleanSpace performance. Nothing contained in this presentation nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee, whether as to the past, present or future.

FUTURE PERFORMANCE AND FORWARD-LOOKING STATEMENTS

This presentation may contain forward-looking statements with respect to the operations and businesses of the Company. The assumptions underlying these forward-looking statements involve circumstances and events that have not yet taken place, and which are subject to uncertainty and contingencies outside the Company's control. Readers are cautioned not to place undue reliance on any forward-looking statements. The Company does not undertake any obligation to publicly release the result of any revisions to forward- looking statements in this presentation or to otherwise update forward-looking statements, whether as a result of new information, future events, or otherwise, after the date of this presentation, except as required by law.

No representation, warranty or assurance (express or implied) is given or made in relation to any forward- looking statement or estimate by any person (including CleanSpace). In particular, no representation, warranty or assurance (express or implied) is given in relation to any underlying assumption or that any forward-looking statement will be achieved. Actual future events may vary materially from the forward- looking statements and the assumptions on which the forward-looking statements are based.

AUTHORISATION

This presentation has been authorised for lodgement to the ASX by the CleanSpace Board of Directors.

OVERVIEW

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FINANCIAL RESULTS

• 1H FY22 Revenue ($7m) was significantly down (PCP 1H FY21 $39.7m); gross margin remain high (75%).
• Operating Spend ($12.1m) was in line with PCP and previously provided guidance. EBITDA loss of -$6.8m for the six month period.
• Cash in bank $30.5m.

PERFORMING AT PRE-PANDEMIC LEVELS

• Current period follows an extraordinary pandemic fuelled demand (PCP Revenue $39.7m). Despite challenges, 1H FY22 revenue is at pre- pandemic levels with higher consumable sales (56% of total Sales) and improved gross margins.
• Pre-pandemicsales growth avg 40% yoy (in industry). Post pandemic, a return to growth benefits from expanded customer base and tailwinds from education in respiratory protection and CleanSpace brand awareness with customers and policy makers.

REVENUE LEVELS TURNING AROUND

• Following a turbulent last half, where the business experienced its lowest sales months, recent months are at higher sales levels and increased pipeline activity.
• The markets appear to be stabilising with stronger purchasing drivers (cost, sustainability and protection) supporting CleanSpace sales initiatives in healthcare and industrial sectors.

CleanSpace Holdings Limited | 1H FY22 Results Presentation | February 2022

US HEALTHCARE MAJOR OPPORTUNITY

• COVID fast tracked market penetration: Large customer base of several
  hundred hospitals including reference sites: Sutter Health, University of Maryland and Kaiser Permanente.
• Sector undergoing the most significant change in decades with providers focused on cost efficiencies, staff retention and digitisation (providing opportunity for our solutions).
• US salesforce expansion included the recent hire of the Senior VP Sales (formally Medtronic and Agiliti Inc) to capture healthcare customers from the pandemic market penetration and establish larger purchasing channels (GPOs, government contracts).

SALES AND MARKETING FOCUS

• The business has been refining its sales and marketing strategies: distribution programs, product/service models and digital marketing.
• Recently launched its e-commerce platform in Australia. Open to the US in March. European markets are later this year. While still early, initial e- commerce activity is encouraging.

BOARD RENEWAL ENHANCES CLEANSPACE'S GROWTH AMBITIONS

• Three new independent directors with experience in sales/marketing, healthcare, North American and APAC markets.
• Focus is on sales and marketing to support technology enterprise adoption.

FY22 INTERIM RESULTS SUMMARY

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56%	75%
CONSUMABLE / ACCESSORIES	GROSS MARGIN
SALES OF TOTAL SALES
3	REGISTERED
SUPPLIER IN
MAJOR GPOs	47
(US and JAPAN)	OUT OF 50 US STATES

REVENUE BY REGION 1H FY22

26%	3
	55%
				REGIONS
19%
		ROW		North America		Europe

CleanSpace Holdings Limited | 1H FY22 Results Presentation | February 2022

• 1H FY22 Revenue $7m; Operating Spend ($12.1m) was in line with PCP and previously provided guidance. Resulting in EBITDA loss of -$6.8m for the six month period. Cash in bank $30.5m and minimal debt
• Consumables/Accessories sales are recovering (56% of total sales). By value consumables sales 20%+ up from pre-pandemic 1H FY20 period demonstrating use by healthcare and industrial customers
• The business maintained high gross margin (75%)
• In the Regional sales split, APAC was the major market driven by healthcare sales. North American sales were significantly down due to lower healthcare sales. Overall, healthcare sales were 56% of total sales
• More recently, sales activity returning in North America and Europe. Major distributors ordering to hold stock - indicating ongoing support for the CleanSpace brand and demand from their large customers
• Registered with three major GPOs in US and Japan. CleanSpace is a now registered supplier to 47 US States to benefit as government funding is deployed
• The challenges to sales (oversupply of disposables and ongoing outbreaks) are presenting as key drivers in a shift to reusable (cost effective and sustainable) PPE in stockpiling and pandemic preparedness strategies

OPERATIONAL UPDATE

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1H FY22 experienced ongoing volatility in purchasing patterns as customers were impacted by global challenges in PPE oversupply, supply chains disruption, material and staff shortages. CleanSpace implemented sales and marketing initiatives to address these immediate challenges and leverage an expanded customer base to drive ongoing use and wider adoption.

• Expanded sales/marketing capabilities in North America, Europe and APAC to:
• • Accelerate a direct model of lead acquisition as traditional distribution channels deal with the oversupply in PPE;
  • Establish deeper engagement with existing customers to support the 'land and expand' strategy and ongoing sale of products and services
• Healthcare procurement strategies have advanced: hospitals re-ordering directly and through distribution partners, supply contracts in place, registered with three major GPOs (US and Japan); registered supplier with 47 US States; and referenced in government and medical association PPE guidelines
• Industrial markets recovery was impacted by global supply issues, disruptions from outbreaks and distributors managing through surplus stock. During this period, CleanSpace increased its focus on existing key accounts and is seeing positive activity in its key sectors - mining, stone, metal, chemical and pharma. Recently, major distributors are moving back to stocking levels indicative of building market confidence and larger customers purchasing patterns
• Marketing initiatives are focused on increased lead acquisition, media and thought leadership. The business has replaced a traditional advertising model with its global digital marketing strategy. The business recently launched its e-commerce platform in Australia, which will open to the US in March, with European markets to follow later this year. While still early, the initial e-commerce traffic and sales activity are encouraging

CleanSpace Holdings Limited | 1H FY22 Results Presentation | February 2022