Hong Kong – the Gateway to China CellaVision in March 2014 Yvonne Mårtensson CEO

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Creating value in healthcare Through innovative solutions, we optimize the process of blood analysis so that more patients can get better and faster care, implying cost-effectiveness in health care.

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The automated testing process

Sample taken.

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Analysis by cell counter.

1,3 billion

Samples which show signs of disease are sent on for further analysis.

15 %

Sales via the 4 major players Parallel distribution channels increase market penetration. • Broad and efficient market penetration. Partners have global sales forces with local knowledge. • CellaVision’s products are often sold via large procurements in which laboratories increasingly require that purchases of hematology equipment are made via one and the same supplier. Our partners have wide product ranges. A narrow range of products requires cooperation.

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Proportion of installed base

World leading supplier of digital solutions for blood and body fluids analyses Potential world market share

The hematology market • 1.3 billion blood cell analyses in cell counter a year. • About 15 percent of these samples require further analysis. • Potentiel world market: 15 000 laboratories. • Annual target market: 1 bilion SEK.

Annual target market share

• 95% of all digital image analysis systems comes from CellaVision.

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Market drivers Growing rationalization requirements in health care 1. Aging population and increased prosperity. 2. Reduced healthcare resources. Saving requirements and labor shortage of qualified laboratory staff. 3. Consolidation of health care resources.

Global demand for efficiency, quality and cost reduction.

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Unique product offering Analyzers, software and a minor part consumables

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Q4 2013: Sales per geographical market • Improved market conditions in the US: + 50%. • Continued strong sales in China and Japan: +45%.

• Weak economic situation in Europe partly compensated by strong sales channels and the new DI-60: -19%. Full year 2013 20% (7) (61) 29% (33) 8

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51% (60)

CellaVision in Hong Kong – mainland China 2005 First sales to Queen Elisabeth Hospital in Hongkong Sold by our Korean distributor  2006 Distribution agreement with Vastec Medical Ltd a Hongkong based company. 2008 CFDA approval in China Vastec Medical has received its first order from Xijing Hospital i Xi'an.

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CellaVision in the world • 2000

Nordic and Europe several small distributors, Sysmex starts w Germany 2013 BEC, Siemens, Abbott

• 2001

US, CellaVision Inc. 2004 Sysmex, 2010 BEC, 2013 Siemens, Abbott

• 2005

Asia Korea, Taiwan, Hong Kong, China

• 2007

Canada, CellaVision Canada Inc.

• 2008

Japan

CellaVision KK

• 2012

China

CellaVision BSO in Shanghai/Bejing

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Market in number of hospital laboratories • Hong Kong

38 public + 11 private 10-15 within our target group

• China

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800 on the most advanced level

CellaVision Customers DM96 Distribution Map

Shenyang Tianjin

Lanzhou

Shaanxi

Shanxi Beijing

Xinjiang

Shandong Shanghai

Anhui

Hongkong

Wuhan

Guangdong

Fujian

Taiwan

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Why Hong Kong? • Relatively small easy to reach market • Get market experience • Entrance to China which we did know very little about

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Why Vastec Medical? • First meeting at the Medica show in Düsseldorf 2003 • Based in Hongkong • Easy to communicate with

• Already successfully selling an American digital imaging product for urine analysis • Experience from American company and image analysis

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2013: Growth: 6 %. Operating Margin: 14,4 % Sales, Personnel

EBIT

200

30

180 25

160 140

20

120 Sales, MSEK

100

15

EBIT, MSEK

80 10

60 40

5

20

0

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Personell, end of period

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08

09

10

11

12

13

0

Since the target was set in 2010, sales growth has averaged 13.5 %.

Learn more! • Web: www.cellavision.com • Blog: http://blog.cellavision.com • App: CellAtlas® – 90,000 users!

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