#1BAIL AROA CAPITAL RAISING PRESENTATION July 2021 | ASX: ARX Unlocking regenerative healing for everybody AROA™#2Important Notice and Disclaimer This investor presentation (Presentation) is dated 26 July 2021 and has been prepared by Aroa Biosurgery Limited (NZ Company number 1980577 / ARBN 638 867 473) (AROA, ARX or the Company) in connection with a proposed capital raising and includes information regarding an institutional placement and share purchase plan of new fully paid ordinary shares in AROA (New Shares) (Offer) Summary information The information in this Presentation is of a general background nature, is in summary form and does not purport to be complete. It does not contain all information relevant or necessary for an investment decision or that would be required to be included in a prospectus under the Corporations Act 2001 (Cth) (Corporations Act) for an offer of securities in Australia. It should be read in conjunction with AROA's most recent financial report and other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX) available at www.asx.com.au. The content of this Presentation is provided as at the date of this Presentation (unless otherwise stated). The information in this Presentation is subject to change without notice. No representation or warranty, express or implied, is made by AROA or any of its advisers as to the accuracy, adequacy or reliability of any information contained in this Presentation. Not a prospectus or an offer of securities This Presentation is not a prospectus or any other offering document under Australian law (and will not be lodged with the Australian Securities and Investments Commission (ASIC)) or under the law of any other jurisdiction in which an offer of New Shares may be received. This Presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. The distribution of this Presentation outside Australia may be restricted by law. Any recipient of this Presentation who is outside Australia must seek advice on and observe any such restrictions. Recipients of this Presentation in Hong Kong and New Zealand, should carefully read the international offer restriction statements in this Presentation. This Presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written permission of AROA. Not for release or distribution in the United States of America This Presentation may not be distributed or released in the United States of America or to any person acting for the account or benefit of a person in the United States of America. This Presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States of America or any other jurisdiction in which such an offer would be illegal. The securities referred to in this Presentation have not been, and will not be, registered under the U.S. Securities Act of 1933 as amended (the Securities Act) or the securities laws of any state or other jurisdiction of the United States of America and may not be offered or sold, directly or indirectly, in the United States of America or to any person acting for the account or benefit of a person in the United States of America, unless the securities have been registered under the Securities Act (which AROA has no obligation to do or procure) or are offered and sold in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and any other applicable securities laws, of any state or other jurisdiction in the United States of America. Each institution that reviews the information contained in this Presentation that is in the United States, or that is acting for the account or benefit of a person in the United States, will be deemed to represent (x) that each such institution or person is either (1) an institutional "accredited investor" or (2) a dealer or other professional fiduciary organised or incorporated in the United States that is acting for an account (other than an estate or trust) held for the benefit or account of persons that are not "U.S. persons" (as defined in Rule 902(k) of the Securities Act) for which they have, and are exercising, investment discretion, within the meaning of Rule 902(k)(2)(i) of Regulation S, and (y) agree that it will not forward or deliver this Presentation, electronically or otherwise, to any other person. TM AROA 2#3Not financial or product advice This Presentation does not constitute financial product or investment advice or a recommendation to acquire securities in AROA. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Each recipient is solely responsible for forming its own opinions and conclusions on such matters and the market and for making its own independent assessment of the information provided. To the extent permitted by law, no reliance may be placed for any purpose whatsoever on the information included in this Presentation or on its accuracy or completeness. An investment in securities is subject to known and unknown risks, some of which are beyond the control of AROA and its directors, including, possible loss of income and principal invested. AROA does not guarantee any particular rate of return or the performance of AROA, nor does it guarantee any particular tax treatment. Prospective investors should have regard to the "Key Risks" section in this Presentation when making their investment decision. Cooling off rights do not apply to the acquisition of the New Shares. Financial data The historical and pro forma financial information provided in this Presentation is for illustrative purposes only and is not represented as being indicative of AROA's views on its future financial condition and / or performance. Investors should also be aware that certain financial data included in this Presentation are "non-GAAP financial measures" under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. The disclosure of such non-GAAP financial measures in the manner included in this Presentation may not be permissible in a registration statement under the Securities Act. These non-GAAP financial measures do not have a standardized meaning prescribed by New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and therefore may not be comparable to similarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures determined in accordance with NZ IFRS. Although the Company believes these non-GAAP financial measures provide useful information to users in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-GAAP financial measures included in the Presentation. All references starting with "FY" refer to the financial year for AROA ended 31 March in each year. For example, "FY2021" refers to the financial year ending 31 March 2021. Certain figures, amounts, percentages, estimates, calculations of value and fractions provided 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 information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Future performance The Presentation contains certain "forward-looking statements". The words "forecast", "expect", "anticipate", "estimate", "intend", "believe", "guidance", "should", "could", "may", "will", "predict", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice and involve known and unknown risks and certainties and other factors which are beyond the control of AROA and its respective directors and management and the Joint Lead Manager Parties (defined below), and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. This includes statements about market and industry trends, which are based on interpretations of current market conditions. None of the Joint Lead Manager Parties have authorised, approved or verified any forward- looking statements. Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Actual results, performance or achievements may differ materially from those expressed or implied in such statements and any projections and assumption on which these statements are based. These statements may assume the success of AROA's business strategy. The success of any of those strategies will be realised in the period for which the forward looking statement may have been prepared or otherwise. Prospective investors are cautioned not to place undue reliance on forward-looking statements. No representation or warranty, express or implied, is made as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in this Presentation. The forward looking statements are based on information available to AROA as at the date of this Presentation. Except as required by law or regulation (including the ASX Listing Rules), none of AROA, its representatives or advisers undertakes any obligation to provide any additional or updated information whether as a result of a change in expectations or assumptions, new information, future events or results or otherwise. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward looking statements. TM AROA 3#4Disclaimer No party other than AROA has authorised or caused the issue, lodgement, submission, dispatch or provision of this Presentation, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this Presentation. To the maximum extent permitted by law, AROA (including its subsidiaries, related bodies corporate, shareholders, affiliates, advisers and agents): disclaims all responsibility and liability (including, without limitation, any liability arising from fault, negligence or negligent misstatement) for any loss arising from this Presentation or reliance on anything contained in or omitted from it or otherwise arising in connection with this Presentation; disclaims any obligations or undertaking to release any updates or revision to the information in this Presentation to reflect any change in expectations or assumptions; and does not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information in this Presentation or that this Presentation contains all material information about AROA or which a prospective investor or purchaser may require in evaluating a possible investment in AROA or acquisition of shares in AROA, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in any forward-looking statement. Joint Lead Manager Parties Neither Bell Potter Securities Limited nor Wilsons Corporate Finance Limited (the Joint Lead Managers), nor any of their respective affiliates, related bodies corporate (as that term is defined in the Corporations Act), nor their respective directors, employees, officers, representatives, agents, partners, consultants and advisers (together the Joint Lead Manager Parties), have authorised, permitted or caused the issue or lodgement, submission, dispatch or provision of this Presentation (or any other materials released by AROA) and, except to the extent expressly referred to in this Presentation, none of them makes or purports to make any statement in this Presentation and there is no statement in this Presentation which is based on any statement by any of them. The Joint Lead Manager Parties take no responsibility for any part of this Presentation or liability (including, without limitation, any liability arising from fault or negligence on the part of any person) for any direct, indirect, consequential or contingent loss or damage whatsoever arising from the use of any part of this Presentation or otherwise arising in connection with it or the Offer. The Joint Lead Manager Parties make no recommendation as to whether a recipient or its related parties should participate in the Offer nor do they make any representations or warranties, express or implied, to any recipient concerning this Offer or any such information, and each recipient represents, warrants and agrees that they have not relied on any statements made by the Joint Lead Manager Parties in relation to the New Shares, this Presentation or the Offer generally. Further, none of the Joint Lead Manager Parties accept any fiduciary obligations to or relationship with any recipient of this Presentation, any investor or potential investor in connection with the Offer or otherwise. The Joint Lead Manager Parties may, from time to time, have interests in the shares or other securities of AROA, including by providing investment banking services to AROA. Further, they may act as market maker or buy or sell those securities or associated derivatives as principal or agent, and may earn brokerage, fees or other benefits from AROA. The Joint Lead Manager will receive fees for acting in their capacity as joint lead managers to the Offer. Acceptance By attending an investor presentation or briefing, or accepting, accessing or reviewing this Presentation, the recipient acknowledges and agrees to the terms set out in this section of the Presentation titled 'Important Notice & Disclaimer'. TM AROA 4#5AROA at a Glance Well established high-growth soft tissue regeneration company JE NZ$30-33m product sales forecast for FY221 68% Gross Margin FY21, impacted by lower sales and FX TIT 6 patented product families selling in United States Regulatory Approvals in 49 countries 32 三回 Peer Reviewed Publications $ -mm-0 >US$2.5b² TAM 88 for existing products 4 million+ Procedures with AROA's products AROA ECM™ platform Provides new products and line extensions year on year ~170 personnel³ 1. Guidance subject to no resurgence of COVID-19 in the US, continued improvement in US medical procedure numbers & TELA Bio sales performance. It assumes an average $NZD-$USD exchange rate of US$0.72 2. SmartTRAK Biomed GPS data 2020; DRG Millennium Research data; Hernia Repair Devices, 2020, AROA management estimates; DRG Millennium Research, Breast Implants & Reconstructive devices, 2018 Market data was prepared before the onset of COVID-19, the economic effect of which is currently not possible to predict with any certainty. Consequently, while the Company has no reason to believe that the market data does not remain accurate based on the relevant markets operating normally, the impact of COVID-19 on the market data that is referenced is not possible to currently predict with any certainty and investors are cautioned against placing undue reliance on such data. 3. AROA NZ & US employees. AROA TM 5#6June Quarter and Outlook Product sales guidance reiterated of $30-33 million for FY22 (up 39-53% on FY21)4 and gross margin above 70% Continued improvement seen in US medical procedure numbers New Myriad Morcells TM product line extension launched at Society for Advanced Wound Care conference 10-14 May 2021 ✓ Large retrospective Endoform TM real-world study in diabetic foot ulcers concluded and submitted, with publication expected in September quarter 45 AROA's dead space management system targeting an unmet need with an estimated US$2.5 billion 5 market was previewed with investors and three further patents filed relating to key aspects of this technology Manufacturing construction progressing to plan to expand capacity from NZ$35 million to NZ$100 million in annual sales TELA Bio, (AROA US partner selling OviTexTM and OviTex PRSTM) maintains its total revenue guidance of US$27.0 million to US$30.0 million (48% to 65% over prior year period). With launch inventory levels now consumed, AROA expects ongoing shipments to TELA Bio to correspond with increasing hospital demand Guidance subject to no resurgence of COVID-19 in the US, continued improvement in US medical procedure numbers & TELA Bio sales performance. It assumes an average $NZD-$USD exchange rate of US$0.72 AROA management estimates AROA™#7Offer Details AROA™#8Offer Overview AROA is conducting a capital raising of up to approximately A$52 million via an institutional placement and share purchase plan at $1.165 per share Placement Placement Pricing • Placement to raise up to approximately A$47 million ("Placement") Up to 40.5m New Shares under the Company's existing placement capacity under ASX Listing Rules 7.1 The offer price of A$1.165 per share ("Offer Price") represents: o A discount of 1.7% to the last close of A$1.185 on 26 July 2021 o A discount of 4.6% to the 5-day VWAP of A$1.221 up to and including 26 July 2021 Ranking New Shares issued under the Placement will rank pari passu with existing Shares from their date of issue Share Purchase Plan • AROA intends to offer eligible shareholders an opportunity to subscribe for up to A$15,000 of New Shares under a Share Purchase Plan ("SPP") at a price per share equal to the Offer Price It is intended the SPP will be capped at approximately A$5 million Joint Lead Managers Bell Potter Securities Limited and Wilsons Corporate Finance Limited TM AROA 8#9Use of Funds and Balance Sheet Remaining Hollister debt of NZ$11m to be repaid from existing cash reserves - company will be debt free AROA will have pro-forma net cash of NZ$65m¹ post offer (net of debt repayment) Use of Funds • Fully funded through to profitability • Investment in US commercial operations to take advantage of the market opportunity for AROA's portfolio of products Additional funds deployed to accelerate and broaden R&D pipeline to bring more products to market 1. Assumes fully subscribed Placement. Does not include proceeds from SPP. Amount Investment in US commercial operations A$15m R&D and product pipeline A$5m Cash on Balance Sheet A$25m Costs of the Offer A$2m Total A$47m¹ AROA™ 9#10Offer Timetable Event Trading halt Record Date for SPP Placement announced & AROA shares resume trading on ASX Settlement of Placement shares Allotment of Placement shares Placement shares commence trading on ASX SPP offer period opens and SPP offer booklet dispatched SPP offer period closes SPP results announced Allotment of SPP shares SPP shares commence trading on ASX AEST Tuesday, 27 July 2021 Wednesday, 28 July 2021 Thursday, 29 July 2021 Tuesday, 3 August 2021 Wednesday, 4 August 2021 Thursday, 5 August 2021 Wednesday, 4 August 2021 Thursday, 19 August 2021 Monday, 23 August 2021 Wednesday, 25 August 2021 Thursday, 26 August 2021 The timetable is indicative only and subject to change by the Company and Joint Lead Managers 10 10 AROA™#11About AROA Unlocking regenerative healing for everybody AROA™#12Unlocking Regenerative Healing for Everybody AROA ECM technology offers leading regenerative performance at a significantly lower cost than other biologics enabling more patients to have access to the benefits of regenerative healing Price Synthetics 'Durable & Strong' Biologics 'Regenerative but weak' AROA Products Regenerative, cost effective, +/- strength as required Healing impairment & complexity Note: AROA Management compilation based on peer reviewed publications. AROAT™ 12#13AROA ECM - An Ideal Foundation for Regenerative Healing AROA's products utilise the proprietary AROA ECM, which is a unique Extracellular Matrix (ECM) platform technology derived from sheep forestomach Esophagus Forestomach Rumen Omasum Reticulum Intestines Abomasum (stomach) Laminin Collagen IV Elastin Vascular channels Collagen I & III GAG's, hyaluronic acid, heparin sulphate Fibronectin Source Ovine Forestomach has natural characteristics that are desirable in a regenerative soft tissue technology o Thick porous ECM with basement membrane o Highly vascular o Constantly renewing & growing AROA ECM Technology (Structural and Biological Building Block) AROA ECM (gently processed Ovine Forestomach Matrix) contains: o Native porous structure o Residual vascular channels 150+ signalling molecules and substrates known to be important in healing Clinically this translates to ready to use scaffold and biology which the body uses to direct healing Products All products that utilise the AROA ECM provide a short-cut to growing new tissue and an associated blood supply • Each product is engineered for the challenges of a specific use case AROA™ 13#14Substantial Growth Opportunities ~$2.5B¹ TAM AROA™ Wound Care Endoform™ Symphony™ Proliferative Bioscaffold Antimicrobial Restorative Bioscaffold Endoform™ Natural Restorative Bioscaffold Myriad Matrix™ Soft Tissue Bioscaffold Soft Tissue Reconstruction Myriad Morcells Morcellized Bioscaffold TELA BIO SURGICAL RECONSTRUCTION COMPANY SCIENCE. VALUE. INNOVATION. I OVITEX REINFORCED TISSUE MATRIX OVITEX PRS REINFORCED TISSUE MATRIX Total Addressable Market $1.4B1 USD e.g. Diabetic Foot Ulcers, Venous Ulcers, Pressure Ulcers, chronic wounds e.g. Trauma, tumour removal, general surgery, inflammatory skin disease Total Addressable Market $1.3B² USD e.g. Hernia repair, abdominal dehiscence, breast surgery 1. SmartTRAK BiomedGPS data 2020. AROA management estimates; 2. DRG Millennium Research data; Hernia Repair Devices, 2020. DRG Millennium Research, Breast Implants & Reconstructive devices, 2018. AROA TM#15AROA PRODUCT RANGE ADDRESSES A WIDE RANGE OF APPLICATIONS AND LARGE ADDRESSABLE MARKETS Brand name Use case Endoform Natural & Antimicrobial Stalled complex wounds FY'18 FY'19 FY'20 FY'21 FY'22 FY23 US TAM (USD) Sales Launch Channel New Pipeline Existing Commercial Products Ovitex Myriad Ovitex PRS Symphony TBC Hernia Dermal & implantable Reconstruction Licensed to TELA Bio solely for Breast Surgery Complex wounds & Limb salvage Dead Space Management Sources: 1 & 5 SmartTRAK Biomed GPS data 2020, 2. DRG Millennium Research data, Hernia Repair Devices, 2020, 3 AROA management estimates, 4. DRG Millennium Research, Breast Implants & Reconstructive devices, 2018. 6. Based on current project timeline but remains subject to changes in circumstances and regulatory clearances. *Note: Symphony requires a new reimbursement code, whereas all other products fall under existing reimbursement codes $78m1 AROA FY'13 $845m² TelaBio FY'17 $200m³ AROA FY'20 $463m4 TelaBio FY'20 $1.15b5 AROA FY'216 TBD AROA FY'23/246 Product Development Regulatory clearance Reimbursement* Commercial sales TM AROA 15#16Endoform Natural and Antimicrobial A unique "Tissue Matrix" used to "short-cut" healing in complex wounds such as diabetic foot ulcers and venous ulcers Endoform Natural in a Diabetic Foot Ulcer endoform Natural Dermal Template Fenestrated 4 x 57 - Roma 1 endolom endoform Hebral Duca Template endoform Antimicrobial Dermal Template Fenestrated 45-10or 12.7mm endolom endoform Antimicrobial Cerul Template endolom Endoform Natural is a single layer of the Aroa ECM. Endoform Antimicrobial a single layer of Aroa ECM with 0.3% ionic silver embedded to provide broad spectrum antimicrobial activity Week 8 Week 5 Week 0 10 AROA™ 16#17Ovitex & Ovitex PRS "Reinforced Bioscaffold" which combines layers of the AROA ECM reinforced with polymers for abdominal wall repair (hernia) & soft tissue reinforcement OviTex® Licensed to Tela Bio for Hernia OviTex® PRS Licensed to Tela Bio for Breast Surgery OviTex repair of a midline fascial dehiscence and fistula Ovitex® is an abdominal wall reinforcement product comprised of multiple layers of AROA ECM reinforced with permanent (polypropylene) or resorbable (PGA) polymers. Ovitex® PRS is a soft tissue reinforcement product comprised of multiple layers of AROA ECM reinforced with permanent (polypropylene) or resorbable (PGA) polymers 1 week Post-op 21-6. Depth 4 weeks Post-op 8 weeks Post-op AROA™ 17#18Myriad Matrix Engineered ECM containing layers of AROA ECM suitable for soft tissue reconstruction, both dermal repair and surgical implantation The AROA ECM provides a biological scaffold known to support cell infiltration and migration. Natural vascular channels support angioconduction. Myriad Matrix placement prior to dermal skin graft Pre-op Week 1 Week 0 Week 2 O Engineered perforations and interstitial spaces facilitate cell access and lateral cell migration. Q Myriad Matrix surgical implantation in an armpit post significant tissue excision Excision Graft Placement Week 3 AROA™ 18#19Myriad Morcells A 'Morcellized Bioscaffold' suitable for a wide range of dermal reconstruction and complex wound repair procedures • • Deliver a bolus of the AROA ECM biology to help kick start & sustain healing Conforms to optimise contact with irregular wound beds Used in combination Myriad Morcells works synergistically with Myriad Matrix to speed the establishment of new tissue AROA™ 19#2020 20 Symphony "Proliferative Bioscaffold" for use in patients with severely impaired healing such as Diabetic Foot Ulcers & Venous Leg Ulcers in the outpatient wound care center setting Optimized structure Gentle procesing conserves structure, function and angioconduction Better cell access Porous architecture, perforations, multiple layers and high surface area support rapid cell migration into a high volume graft to accelerate tissue formation High Aroa ECM Dose Higher level of collagen and secondary molecules compared to EpiFix and OaSIS Hyaluronic acid - maintains wound moisture - synergistically promotes angioconduction & vascularisation - encourages granulation and epithelial migration leading to closure Less inflammation Acellular so reduced inflammatory response FDA Clearance: 30 July, 2020 AROA™#21AROA Product Portfolio Products to match wound type, stage & site of care Stabilize Correct Build Organize Hemostasis Inflammation Proliferation Soft Tissue Reconstruction Operating Room/Physician Office E.g. Trauma, Dehiscence, Tissue Loss, Breast Surgery, Inflammatory Skin Lesions, Hernia Myriad Matrix™ Myriad Morcells Soft Tissue Bioscaffold Morcellized Bioscaffold (+/-) Endoform Natural Restorative Bioscaffelé Healing Complex Wounds Operating Room/Physician Office/Home E.g. Diabetic Foot Ulcers, Venous Ulcers, Pressure Ulcers Healing Difficulty OVITEX PRS REINFORCED TISSUE MATRIX Difficult Very Difficult Endoform Antimicrobial Restorative Bioscaffold (+/-) Endoform Natural Restorative Bioscaffold Endoform Natural Restorative Bioscaffold Remodelling Wound Closure (+/-) Symphony Proliferative Bioscaffold DESIGNED FOR: 1. Improved Clinical Outcomes 2. Wider Access 3. Lower Treatment Cost 21 21 AROA TM#22% WOUNDS CLOSED AT 12 WEEKS 100 90 80 70 60 50 40 30 20 10 0 Liden_2013 Bohn_2014 Ferreras 2017 Clinically effective wound products Endoform demonstrates increased wound closure rates at 12 weeks in complex wounds compared to market leading biologics which lowers the cost of treating patients AROA Competitors (Tissue Matrix) Lullove_2017 I AROA Endoform Ⓡ Acelity Promogran TM Raizman_2019 Better clinical outcome at a lower cost Veves_2002 Vin_2002 Lazaro 2007 Schmutz_2008 Gootrup_2013 Mostow 2005 Smith & Nephew Oasis ™ Cryopreserved Allograft Cazzel_2015 Treadwell_2018 Lavery_2014 Bianchi_2017 US wound registry Fife (2018) Real World Data for Standard of Care (DFUS, VLUS and PUs) Mimedx Human Amnion AROA™ 22#23BRAVO Clinical Study 91 patient multi-centre study with simple and complex ventral hernias in United States Number of patients who completed 23 23 Product Name Category Hernia recurrence rate¹ Number of hernia recurrence¹ Follow up Ovitex (Aroa) Reinforced Tissue Matrix 2.6%² 2 Ovitex (Aroa) Reinforced Tissue Matrix 0% 2 follow up period Months 76 12 0 51 24 Phasix (CR Bard) Resorbable Synthetic Mesh 5% 5 95 12 Phasix (CR Bard) Resorbable Synthetic Mesh Phasix (CR Bard) Resorbable Synthetic Mesh Strattice (Lifecell) Biologic Matrix 12% 23% 22% 11 95 18 19 82 36 15 69 12 Strattice (Lifecell) Biologic Matrix 33% 33 67 24 1. The level of recurrence at 90 days, 12 & 24 months are key metrics and have major cost implications for surgeons, hospitals, payors and patients. 2. Hernia recurrence rate based on number of hernia recurrences reported in patients who completed follow up and patients who reported recurrent hernia before the specified follow up period. Other clinical literature and conference presentations were based on all patients treated including those who did not complete follow up. AROA™ • Data for first 50 patients at 24 months from BRAVO shows significantly better outcomes compared to market leaders • Full data for 24 months due H2 2021#24Sales Channels Channel Description Products Target Specialties Call point Sales force (FTE) US Commercial operations based in San AROA™ Diego, with sales professionals across US Endoform Myriad Symphony Physicians, WOCN's/ RN's Podiatric, Plastic, Trauma & Outpatient Wound Centres & Inpatient Operating Rooms Orthopaedic surgeons TELA BIO SURGICAL RECONSTRUCTION COMPANY 20 field, 8 Inside & 20 Independent Sales Representatives NASDAQ listed US$233 Market Cap exclusively sells Aroa licensed products Ovitex® Ovitex PRS TM (US and European Rights) General Surgeons Plastic Surgeons 46 sales territories as Operating Room at 31 March 2021 • Aroa is appointing distributors for the countries outside the US in which it has received regulatory approvals. International • (Ex-USA) Aroa has the rights for Ovitex and Ovitex PRS outside of US and Europe 24 24 AROAT™#25Manufacturing and Production Well established commercial manufacturing facility · Unique process produces a high-quality product 12 successful Quality inspections since 2014 83 staff in Manufacturing and Quality Assurance 2 Sites 5100 m2 total - manufacturing floor 25 25 ARDA In-house manufacturing facility – Auckland, New Zealand Scalable • Raw materials readily available in New Zealand Modular manufacturing design allows production to be easily scaled as sales volumes grow Production capacity in place to support revenue of up to NZ$35m. An investment of ~A$3 A$4 million required to increase facilities capacity by approximately 3x (facilities supporting ~NZ$100m of revenue). This is expected to be completed end of 2021 - Efficient and low cost • Purposefully designed gentle & low-cost process & equipment Controlled clean room environment built to pharmaceutical standards WONTWICK Manufacturing Facility AROA™#26Management team AROA is led by a highly experienced management team with long tenure 26 26 Brian Ward CEO, Founder BVSC MBA +11 years with AROA +25 years in life sciences Commercial leadership roles including sales & marketing, strategy & corporate development Previous experience: Baxter, Beecham, SmithKline Beecham James Agnew CFO BCom LLB +6 years with AROA +15 years in finance Corporate finance, investment, M&A, strategic & ops planning, contracting & tax Previous experience: MXM Mobile, Hyperfactory Brad Adams - VP Commercial (USA), MHA, BA +10 months with AROA +20 years in life sciences Commercial leadership roles - sales management, marketing, commercial strategy Previous experience: Acell, Smith & Nephew, HealthPoint, J&J Simone Von Fircks VP - Operations +6 years with AROA +30 years in life sciences Biologics development tech transfer, facilities and regulatory & quality compliant up-scaled manufacturing Previous experience: Baxter, Mologen Dr. Barnaby May VP - Clinical Dev & Research, PhD + 11 years with AROA +20 years in life sciences - research & development strategy, management and execution Previous experience: UCSF & University of Canterbury AROA™#27Financial 27 27 AROA™#28Product sales Product sales (Reported) FY20: $21.9m FY21: $21.6m $11.9m $10.0m down 10% YoY $9.0m H1 FY20 H2 FY20 H1 FY21 up 6% YoY $12.6m H2 FY21 Product sales (Constant Currency¹) FY20: $21.9m FY21: $23.1m $11.9m $10.0m down 8% YoY $9.2m H1 FY20 up 17% YoY $13.9m H2 FY20 H1 FY21 H2 FY21 Product sales for H1 FY21 of $9.0m down 10% on H1 FY20, reflecting the impact of the COVID-19 pandemic. Despite NZD/USD exchange headwinds, product sales recovered strongly in H2 FY21, increasing 6% on H2FY20 (17% in constant currency). Full year product sales of $21.6m decreased 2% on FY20, however increased 5% on a constant currency basis. 1 Constant currency (CC) removes the impact of exchange rate movements. This approach is used to assess the Group's underlying comparative financial performance without any distortion from changes in foreign exchange rates, specifically the USD. The NZD/USD exchange rate of 0.64 has been used in the constant currency analysis, representing the average rate for FY2020. 28 28 AROA™#29Financial Results Normalised Profit or Loss² Commentary 29 29 Product gross margin was impacted in H1 FY21 as a result of lower product sales but improved significantly in H2 FY21. Reduction in Other revenues represent one-off license fees in FY20. Normalised selling and administration expenses increased $2.7m or $3.5m in constant currency, reflecting increased investment in the US sales operations and increasing expenses from becoming a publicly listed entity. Research and development expenses increased $1.4m reflecting the increase in staffing on pipeline products. Normalised EBITDA loss of $3.3m. Reported Reported Reported CC³ CC³ 2021 2020 YoY % 2021 YoY % Product sales Other revenue Total revenue NZ$000 21,575 NZ$000 NZ$000 21,924 (2) 23,123 5 767 3,152 (76) 822 (74) . 22,342 25,076 (11) 23,945 (5) Gross profit 15,524 18,737 (17) 17,127 (9) Product gross margin % 68% 71% (3) bps 71% 0 bps • Other income 2,682 1,137 136 2,722 139 Normalised selling and administrative expenses4 (18,142) (15,401) 18 (18,900) 23 Research and development expenses (6,425) (5,042) 27 (6,425) 27 Total normalised operating expenses (24,567) (20,443) 20 (25,325) 24 Normalised EBIT (6,361) (569) 1,018 (5,476) 862 Add back: Depreciation & amortisation 3,078 2,741 12 3,078 12 Normalised EBITDA (3,283) 2,173 (251) (3,613) (210) Net finance expenses Normalised loss before income tax (1,111) (7,472) (3,317) (3,886) 67 92 (1,753) (7,229) 47 86 • 2 The Normalised Profit or Loss is non-GAAP financial information, as defined by the NZ Financial Markets Authority, and has been provided to assist users of financial information to better understand and assess the Group's comparative financial performance without any distortion from NZ GAAP accounting treatment specific to one-off, non-cash fair value adjustment of pre-offer shares issued in February and May 2020 and the one-off transaction costs associated with the IPO. The impact of non- cash share-based payments expense has also been removed from the Profit or loss. This approach is used by management and the Board to assess the Group's comparative financial performance. 3 Constant currency (CC) removes the impact of exchange rate movements. This approach is used to assess the Group's underlying comparative financial performance without any distortion from changes in foreign exchange rates, specifically the USD. The NZD/USD exchange rate of 0.64 has been used in the constant currency analysis, representing the average rate for FY2020. 4 These items have been normalised by the amounts outlined within the 'Reconciliation to NZ GAAP Profit or Loss'. TM AROA#30Cash flows 2021 2020 Commentary $000 $000 Cash flows from operating activities Net cash (outflow)/inflow from operating activities (5,007) 1,660 · Cash flows from investing activities Net cash (outflow) from investing activities (1,500) (1,870) Cash flows from financing activities Net proceeds from issue of equity and convertible debt securities 50,426 Net repayment of borrowings/deferred consideration (12,596) 5,995 (7,730) Lease liability - Principal and interest (731) (546) Net cash inflow/(outflow) from financing activities5 37,099 (384) Net increase/(decrease) in cash on hand Effect of exchange rate fluctuations on cash and cash equivalents TOTAL CASH ON HAND6 5 Cash flows from financing activities excludes the transfer of $20 million from Cash to Term Deposits 6 Cash on hand includes $20 million held on Term Deposit 30,592 939 35,381 (594) (13) 3,850 • • • Net cash outflow from operating activities of $5.0 million for FY21 compared to a net cash inflow from operating activities of $1.7 million in FY20, reflecting the increased investment in operating expenses. Purchases of property, plant and equipment remained modest. Net proceeds from pre-IPO and IPO placements of $50.4m. Repayment of borrowings of $12.6m. Cash (including short term deposits) on hand of $35.4m. AROA™ 30 30#31Future AROA™ 31#32Catalysts 22 32 Post-COVID Vaccinations expected to improve throughout CY2021 AROA Direct Sales Fully dedicated field sales team. Myriad™ expected to drive growth. TELA BIO® Momentum Clinical outcomes & cost savings driving increasing adoption Product Synergies Complementary products for every phase of healing & continuum of care Clinical Data Endoform TM, Myriad™ & Symphony™ $ Reimbursement Potential for changes in the reimbursement of cell and tissue products (Symphony) in outpatient wound centres & Pipeline Products From AROA ECM platform & new single-use dead space management platform Global Expansion Regulatory approval in 49 countries AROAT™#33AROA FY22 Outlook $ E 00 NZ$30-$33m¹ product sales FY22 39-53% higher than FY21 இ GM improvement • . • AROA is well placed for FY22 following an improved second half of FY21 and sales transition Focused on building our US commercial operations over next 24 months to drive revenue growth to take advantage of the opportunities presented by our expanded product portfolio TELA Bio sales expected to deliver strong growth based on their revenue guidance of 48% to 65% growth in CY21 compared to CY20 EBITDA will be negative (as previously forecasted) as a result of increased investment into its sales force (announced in February 2021) 1Guidance subject to no resurgence of COVID-19 in the US, continued improvement in US medical procedure numbers & TELA Bio sales performance. It assumes an average $NZD-$USD exchange rate of US$0.72 TM AROA 33#34CONTACTS Simon Hinsley Investor Relations m +61 401 809 653 [email protected] Matt Wright m +61 451 896 420 Media [email protected] Visit our website www.aroabio.com and find us on LinkedIn at www.linkedin.com/company/aroa-biosurgery-limited/ 64 Richard Pearse Drive, Auckland 2022, New Zealand PO Box 107111, Auckland Airport, Auckland 2150, New Zealand Unlocking regenerative healing for everybody AROAT™#35Unlocking regenerative healing for everybody ? Q&A AROAT™#36Appendix AROA™ 36#37Reconciliation of Normalised Profit or Loss to NZ GAAP Reconciliation of Normalised Profit or Loss to NZ GAAP Profit or Loss Normalised loss before income tax Share based payments Transaction costs Other losses Loss before income tax (NZ GAAP) Share Based Payments Reported 2021 Reported 2020 NZ$000 NZ$000 (7,472) (3,886) (2,010) (418) (1,607) (850) (8,013) (1,006) (19,102) (6,160) Share based payments of approx. $2.0 million relate to the vesting of the share options issued to Directors and employees of the Company on IPO and certain employees in September 2020. Transaction Costs Transaction costs of $1.6 million relate to the costs associated with the IPO, including lead manager fees, legal fees, accounting and audit fees, ASX listing fees and road show expenses. Out of the total costs of $3.2 million incurred during the year ended 31 March 2021, $1.6 million was recognised against share capital, with the remaining $1.6 million recorded within operating expenses. Other Losses Other losses of $8.0 million are a non-cash, one-off expense attributable to the fair value adjustment of pre-offer shares issued in February and May 2020, which were classified as financial liabilities as opposed to equity in accordance with NZ IAS 32. During the reporting period, these financial liabilities at fair value through profit or loss were fully reclassified as equity, following the IPO. AROA™ 36 37#38Risks¹ Topic Summary Topic Summary Reliance on partners Product acceptance Competition Product pipeline and development of new products Intellectual property Product liability Manufacturing/production risks A large portion of AROA's revenue is reliant on its US sales and distribution partner, TELA Bio. TELA Bio is a US corporation listed on NASDAQ, whose business focuses on the sale, distribution and marketing of the OviTex product range. A slowdown, decrease in demand or failure to grow demand from TELA Bio could adversely impact AROA's operating and financial performance. AROA's growth and the commercial success of AROA's products and future products is reliant on the acceptance of AROA's products by healthcare professionals, including surgeons and wound care specialists. The acceptance of AROA's existing products may slow, and planned future products may gain acceptance slower than planned or may not gain broad market acceptance by healthcare professionals which, should this arise, would impact AROA's operating and financial performance AROA competes against many existing and potential competitors with significantly more resources than AROA and with greater access to more markets. AROA's competitors may be able to increase market share through aggressive marketing campaigns, product improvements, acquisitions or price discounting which will affect AROA's market share and margins. AROA's commercial success is dependent on the continued improvement of existing products and the research and development of new products utilising the AROA ECM technology platform. Product development involves a high degree of risk, and there are no guarantees that new product development efforts will result in any clinically or commercially successful products. The value of AROA's products depends in part on its success in obtaining and maintaining issued patents, trademarks and other intellectual property rights and protecting the Company's proprietary technology. If AROA's intellectual property and proprietary technology is not adequately protected, competitors may be able to use the technologies or the goodwill AROA has acquired in the marketplace and erode or negate any competitive advantage AROA may have, which could harm AROA financially. Any defects in AROA's products may harm AROA and its customers' reputation and business. AROA may also be subject to warranty and liability claims for damages related to defects in its products. AROA manufactures its products in a single location in Auckland, New Zealand and is exposed to risks of harm caused by natural or man-made disasters, or operation or human error, which may result in manufacturing disruptions or an inability to manufacture and produce its products for some time. AROA has formal commercial agreements in place for most of its critical suppliers eg Ovine rumen supplier. A limited number of supply arrangements are subject to course of conduct, rather than set out in written agreements. Whilst AROA considers this to be reasonably normal in the clinical/biosurgery industry. To the extent practicable, AROA has in place or has identified alternate suppliers. If alternative supply arrangements are not in place, this could result in manufacturing disruptions. Supply of Ovine rumen Hazardous substances Country/region specific risks Macro-economic risk Market conditions Reliance on key personnel Other risks The ovine (sheep) rumen used in the manufacturing of AROA products is currently sourced from New Zealand sheep. Currently, New Zealand sheep are not known to carry any prion disease (progressive neurodegenerative disorders, including scrapie disease). However, the geographic concentration of AROA's ovine rumen supply creates risks of disruption due to natural disasters, disease or other events. AROA's activities in manufacturing its products involve the controlled storage, use and disposal of hazardous materials. AROA is subject to laws and regulations governing the use, generation, manufacture, storage, handling and disposal of these hazardous materials. Although AROA's safety procedures for handling and disposing of these materials and waste products comply with these standards, AROA cannot eliminate the risk of accidental injury or contamination from the use, storage, handling or disposal of hazardous materials. AROA has operations in the US and has to comply with a range of different US legal and regulatory regimes. As AROA expands the sales of its products geographically into new international jurisdictions, it is subject to the risks associated with conducting its business in the relevant countries, which include adapting to, and complying with, the differing laws and regulations, business and clinical practices, and patient preferences in foreign countries, developing and managing foreign relationships and operations and being subject to the political and economic climate of the various countries. The ongoing impact of the Coronavirus pandemic (COVID-19) on the Company's operations is not currently fully ascertainable and may not be known for a period of time. Following COVID-19, the Company has experienced a reduction in sales of its products due to elective surgeries being cancelled and outpatient clinics being closed as a result of COVID-19. Whilst AROA has seen a continued positive trend in US medical procedure numbers to date, these are yet to return to pre COVID-19 levels. In light of the COVID-19 pandemic, extra care should be taken when assessing the risks associated with investment. The rapidly changing COVID-19 situation is bringing unprecedented challenges to global financial markets, and the economy as a whole. There is no assurance that AROA will be able to retain key personnel. The departure of key personnel may adversely affect AROA until suitable replacements are recruited. The above risks are a summary of some of the key risks, but not an exhaustive list of all of the risks associated with the Company or an investment in the Shares. Further details on the risks summarised in this Section and other key risks are included in Section 5 of the IPO Prospectus dated 22 June 2020, and investors should review all of those risks carefully before making an investment decision. Notes 1. This section is not intended to be a fulsome overview of key risks. For detailed information on the specific risks and general risks relating to an investment in AROA, please see section 5 of the IPO Prospectus dated 22 June 2020 AROAT™ 38#39Board of Directors AROA has a highly experienced Board with healthcare, operational and financial experience Jim Mclean Non-Executive Chairperson (Independent) BSc(Hons)PGDA Current Brian Ward Managing Director (Non- Independent) Steve Engle Phil McCaw Non Executive Director BBS Non Executive Director (Independent) M.S.E.E., B.S.E.E. Current Chair of Prevar, RJ Hill Laboratories Ltd, Information Tools Ltd Previous •Ernst & Young •Genesis Research Per previous slide (Non-Independent) Current Movac Founding Partner •Prescient Therapeutics Previous Previous •Cohbar ⚫Deloitte •Averigon •Xoma •La Jolla Pharmaceutical John Diddams Non Executive Director (Independent) B.Com. FAICD, FCPA Current •Volpara Health Technologies •Surf Lakes Holdings •CPA firm providing corporate advisory Previous •Managed IPO process for >20 ASX IPO's John Pinion II Non Executive Director (Independent) B.S. Current ⚫Ultragenyx Previous •Roche •Genentech •Baxter AROA™ 39#40International offer restrictions This document does not constitute an offer of New Shares of Aroa in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in Australia or any country outside Australia (or in the case of the SPP outside Australia and New Zealand), except to the extent permitted below. Australia The offer of New Shares is being made in Australia only to persons who meet the requirements of section 708(8) or section 708(11) of the Corporations Act 2001 (Cth) as either a professional or sophisticated investor or the requirements of section 761G of the Corporations Act 2001 (Cth) as a wholesale client. New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (FMC Act). The New Shares are not being offered or sold in New Zealand (or allotted with a view to being offered for sale in New Zealand) other than to a person who: is an investment business within the meaning of clause 37 of Schedule 1 of the FMC Act; ☐ meets the investment activity criteria specified in clause 38 of Schedule 1 of the FMC Act; ☐ is large within the meaning of clause 39 of Schedule 1 of the FMC Act; ☐ ☐ is a government agency within the meaning of clause 40 of Schedule 1 of the FMC Act; or is an eligible investor within the meaning of clause 41 of Schedule 1 of the FMC Act. AROA™ 40#41International offer restrictions (continued) Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong pursuant to the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong (the "SFO"). No action has been taken in Hong Kong to authorise or register this document or to permit the distribution of this document or any documents issued in connection with it. Accordingly, the New Shares have not been and will not be offered or sold in Hong Kong other than to "professional investors" (as defined in the SFO and any rules made under that ordinance). No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the possession of any person for the purpose of issue, in Hong Kong or elsewhere that is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to New Shares that are or are intended to be disposed of only to the persons outside Hong Kong or only to professional investors. No person allotted New Shares may sell, or offer to sell, which securities in circumstances that amount to an offer to the public in Hong Kong within six months following the date of issues of such securities. The contents of this document has not been reviewed by any Hong Kong regulatory authority. You are advised to exercise caution in relation to the offer. If you are in doubt about any contents of this document, you should obtain independent professional advice. United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this document have not been, and will not be, registered under the US Securities Act 1933, as amended (US Securities Act) and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws. TM AROA 41