#1Avita Medical William Dolphin, Ph.D. Chief Executive Officer Equity Raising Presentation Australia May 2011 Galatéa de las esferas Salvador Dalí, 1952#2Disclaimer 2 This presentation has been produced by Avita Medical Limited ("Avita") only and may contain forward-looking statements that are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in this presentation include statements about future financial and operating results, status of our regulatory submissions, possible or assumed future growth opportunities and risks and uncertainties that could affect Avita's product and products under development. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which Avita expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. We are not under any duty to update forward-looking statements unless required by law. This investor presentation is not an offer of the sale of securities. 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Accordingly, the new Avita shares may not be offered, sold or otherwise transferred in the United States or to, or for the account or benefit of, any US Person absent registration or an exemption from registration. medical avita#3Overview recELL® SPRAY ON SKIN™ Seeking to raise up to A$11M through a non- underwritten Conditional Placement and Share Purchase Plan (“SPP”) - $9M via a placement to institutions and sophisticated investors; and - a SPP capped at $2M at the AVH Board's discretion to be offered to eligible shareholders ■ Both placement and SPP to be subject to shareholder approval at an EGM to be held in June ■ Fixed offer price of $0.10 per share which represents a discount of 33.3% to Avita's closing price on 13 May 2011 ■ Proceeds from the Conditional Placement and SPP will be primarily directed toward increased sales and marketing efforts THE REVOLUTION IN SKIN REGENERATION 3#4Regenerative Medicine Goal: Regrow, replace, restore function of tissues, organs or limbs damaged, lost or non-functional (e.g., trauma, disease, senescence) Fundamental change to practice of medicine All tissues and organs - in theory - have capability to regenerate Key Product: ReCellⓇ Spray-On Skin 4 medical avita#5ReCell Spray-On-Skin Avita's regenerative technology: Harnesses body's intrinsic ability to heal itself and packages it into an easy-to-use bedside kit for the clinician " ☐ Patients: Provides improved outcomes Surgeon/Clinician: Easy, fast and effective with reduced morbidity; revenue generator Healthcare Provider: Reduced costs to system 5 medical avitä#6Preparation of skin graft Graft taken from patient's healthy skin Skin is meshed to cover a large wound medical avita 6#7Application of meshed graft 7 medical avitä#8Ⓡ Preparation of ReCell Suspension 1. 2. 3. 4. LGCE 6. 5. ம் 10 Le (10 cm) 1. 2. Thin, split thickness biopsy (200 x 200 x 0.2-0.3 mm) of similar skin Biopsy incubated in enzyme 'cocktail' approx 20 min 3. 4. 5. ம் ம் 6. 8 Biopsy removed from incubator, mechanically agitated to separate cells Cells rinsed in 'buffer cocktail' Suspension filtered Suspension sprayed on wound, covered with dressing. Remove dressing 5-7 days post-op; wound fully re-epithelialized medical avitä#9Using the body's natural regenerative capability to enhance and accelerate healing 9 ReCell® suspension sprayed onto wound surface Result: 'normal', healthy, new skin with full complement of constituent cells types, including melanocytes, keratinocytes, fibroblasts and basal cells in proper proportion Disaggregated cells migrate over wound area Cultured Epidermal Call Suspension Appled To The Wound Bed Migratory Keratinocyte 96 12 Cell signalling encourages and directs proliferation, vascularisation and innervation Activated progenitor cells undergo period of high mitotic activity with rapid proliferation and differentiation medical avita#10Week 4 Treatment apCARD NO Donor Site: STSG vs ReCell Split Thickness Skin Graft OpCARD 101. ReCell® 10 medical avita#11ReCell: Platform technology with wide range of immediate applications Applications: Burns, scalds and donor sites associated with grafts Scar revisions to improve colour, texture & function Pigmentation disorders such as Vitiligo Epidermal defects such as naevi, acne, discolouration Prophylactic aesthetic rejuvenation procedures 96 12 11 medical avita#12Key Market Segments Burns Plastic and Reconstructive Surgery Aesthetic/Cosmetic Procedure 12 medical avita#13Facial Burn 13 Day 1 prep and debridement 3 weeks post-ReCell® 10 months post-ReCell® medical avita#14Hypertrophic Dyspigmented Neck 14 Neck pre-treatment 12 months post-ReCell® medical avita#15Surgical Scar 15 Pre-ReCell® 10 months post- ReCell® medical avita#16Acne scarring 16 Before treatment 2 months post-treatment medical avita#17Acne Scarring 17 Pre-ReCell® 12 month post- ReCell® medical avita#18Facial Rejuvenation (wrinkle) 18 Pre-ReCell® 12 months post- ReCell® medical avitä#19Market Introduction Cascade 19 Wound Care Plastics Aesthetics Burns - ReCell® Alone - Combination with other treatments (e.g., mesh grafts, dermal substitutes) Acute wounds -Surgical - Abrasion - Lacerations Chronic Wounds - Graft loss - Ulcers (diabetic or venous), alone or in combination with other treatments Scar remodelling - Pre-existing - Burn, graft scars -Surgical scars - Biopsy - Mohs surgery Reconstructive procedures - Face, nose In combination with prostheses Cosmetic relief Acne scars Hyper or hypo- pigmentation Liver spots - Sun-damaged skin Rejuvenation procedures (wrinkle) Disease treatment - Vitiligo - Leucoderma medical avita#20Financial Performance Operating Loss, $M Gross Margin, % Revenue, $M 4.0 3.0 2.0 1.0 0.0 2007 2008 2009 2010 100% 75% 50% 25% 0% -25% 2007 2008 2009 2010 0 -5 -10 -15 -20 Increase sales revenues in high value markets ReCell® represented approximately 30% of total sales in Q3 FY11 (total Q3 sales of c.$950k) Increased 73% over previous Q2 FY11 Implement "continuous improvement" models to operations Tighten management of working capital 20 medical avita#21Sales & Marketing Building the "ReCell Experience" Targeted messaging to stakeholder: Surgeon, Clinician, Patient, Payer. Bottom up Brochures Directed Marketing ■ Presentations ■ Patient Leaflets ■ Local PR articles Media Top Down Approach Clinicians "Push Strategy" Leaflet recE SON A recELL SKIN REGENERATION Fulfilling expectations Delivering benefits Bottom up Visibility Patients "Pull Strategy" Top down Clinical evidence 21 New Studies Workshops Seminars Clinical support & update Conferences Corporate PR medical avita#22ReCell® Multiplier Effect ■ Establish Centres of Excellence (COEs) with key, highly regarded surgeons (KOLs) ◉ Surgeon-to-surgeon training ■ Trained surgeons establish own COES 22 ■ Mixed Distribution Model - Direct representation in Germany, France, UK Distributors in Russia, Netherlands, Portugal Establishing JVs in key markets medical avita#23Avita Medical Avita Medical HQ Los Angeles Avita Medical Europe Cambridge, UK Avita Medical Asia Pacific Perth, Australia 23 medical avita#24The message: Regain your healthy, normal and beautiful skin recELL® SPRAY-ON SKINTM THE REVOLUTION IN SKIN REGENERATION The Revolution in Skin Regeneration 24 medical avitä#25Regulatory Clearance To Market Regulatory clearance in Europe (CE Marked), Australia (TGA), China (SFDA) US FDA trials underway US$2M grant from US DoD (AFIRM) - Burns ReCellⓇ vs Split Thickness Graft ➤N=92; 24 week endpoint Commenced enrolment US$2M contract from US DoD (OTT) - Scar Remodeling ReCell® vs SOC ➤IDE submitted 25 medical avita#26Marketing Studies ◉ ◉ France STIC study - €1.2M Medico-economic study funded by French Ministry of Health Vitiligo - France, UK Treatment of Acne Scarring - UK, Germany Skin rejuvenation (wrinkles removal) - Marketing Studies Venous ulcers - Italy Approx 50 peer-reviewed publications 26 medical avita#27Intellectual Property Broad intellectual property portfolio - 7 patents granted (US, PCT, Australia, Japan) - 6 applications pending 27 27 medical avita#28ReCell® Markets Condition Burns Annual number of procedures potentially appropriate for ReCell application 650,000 Plastic/ 580,000 (US) Dermatology/ Reconstructive Vitiligo >200,000 Aesthetics 600,000 (US) TOTAL 2-3 Million Burns requiring medical intervention (2) Treatments sought from plastic surgeons for scar remodeling. (3) Reported cases seeking treatment (prevalence: 2% of population ~ 12 million) (4) Treatment sought from cosmetic surgeons for skin discoloration, acne, skin defects, stretch marks (4) Potential annual procedures Sources: US Center for Disease Control (CDC); American Burn Association National Burn Repository 2005 Source: American Society for Aesthetic Plastic Surgery 2004; 4 Source: Forschner et al. Current state of vitiligo therapy. J Dtsch Dermatol Ges 5(6):467-75 2007 28 medical avita#29Competition Procedure Skin graft Advantages • Standard of care • Specific graft procedure inexpensive Rapid procedure Disadvantages • Scarring, cosmetic issues, skin "quality" • Large, painful donor site • Infection, rejection • Extended hospitalization • Repeated operations Cultured epithelia (auto or allo) • Large coverage • Small donor site • Low infection • Expensive •2-6 weeks to grow • Allograph high rejection rate • Fragile ⚫ Cosmetic issues (skin matching, scarring) • Expensive • Fragile • Not skin matched: scarring • Extended hospitalization with interim wound coverage . Multiple procedures • Require specialised lab facilities ⚫ cost of immunosuppressive treatment Multiple procedures ⚫ "Not-ready-for-prime-time" Artificial skin Dermal matrixes • Large coverage • No donor site • Low infection/reject • Requires combination of above •Provide rapid coverage • Useful in severe, deep wounds Expensive • Extended hospitalization with interim wound coverage Multiple procedures Requires 'skin' of some sort ReCell Spray-On Skin • Rapid • Low cost, decrease hospitalization • Minimize donor site • Minimal scar • Low infection/reject ⚫ No lab requirements • Can be used in combination with other techniques • Requires paradigm change 29 medical avitä#30Competition Range of companies involved with burns/wound care products Procedure Skin graft: Cultured epithelia (autologous, allogeneic or xenogeneic) Dermal matrixes . . 3M Health Care Baxter Carrington Laboratories, Inc. ConvaTec, Ltd. Covidien, Ltd • Derma Sciences GlaxoSmithKline Plc Healthpoint, Ltd. Advanced BioHealing • Ethicon Fidia Farmaceutici s.p.a. Integra Inc Companies Hill-Rom Company, Inc. Johnson & Johnson Kinetic Concepts, Inc. Medline Industries Molnlycke Health Care Mylan Pfizer, Inc. Smith & Nephew, Plc Genzyme Organogenesis Inc. Spray-on (ReCell) . Avita Medical 30 medical avitä#31Senior Management William F. Dolphin, Ph.D., CEO; 28 years international executive experience; significant M&A experience Tiziano Caldera, General Manager EMEA; 20 years senior management experience in Sales & Marketing within the medical devices industry Andrew Quick, VP Research & Technology; 20 years medical device experience; expertise in design, development and clinical research Lorraine Glover, General Manager, Asia Pacific; 20 years experience in the commercial biotechnology and medical devices industry William Marshall, VP Operations; 31 years industry experience; expertise in lean manufacturing, quality and regulatory systems Eric Airiau Manager Europe Sales & Marketing; 18 years experience in international medical sales and marketing 31 medical avitä#32Target news flow - 2011-2012 ■ Results from United States FDA burns and scar trials and subsequent clearance of ReCell® for sales within the United States market Trial Dec-11 Burns Trial Full recruitment Jun-12 Dec-12 Jun-13 Results Scar Trial* IDE approval and commence recruitment Full recruitment Results & submit application to FDA Results & FDA application Approve and on market in US On market *Assumes IDE as proposed is approved by FDA ■ Additional Patents Issued ■ Market Development: - Appointment of Distributors - Initiation of Joint Ventures - China - pricing registration through Chinese Ministry of Health; commencement of sales ■ Product expansion Expansion of ReCell® product line 32 medical avita#33Use of funds ■ Funds raised from the Capital Raising will be directed toward: -Increased sales and marketing efforts Education of Key Opinion Leaders and establishment of Centres of Excellence Clinical labeling studies - Development of second generation ReCell® kit - Working capital requirements 33 medical avita#34Investment highlights Frontier of medical technology Unique product offering Potential of the technology is recognised by US DoD Established track record Regenerative medicine in wound care is one of fastest growing areas in healthcare and offers vast potential for unmet therapeutic needs ReCell® services a significant market for the treatment of burns, reconstructive/plastic applications, vitiligio and aesthetics; estimated at approximately 2-3 million treatments p.a. ReCell® Spray-on-Skin is rapid, low cost, minimises scarring, has a low risk of infection, minimises the donor site (stamp-size vs. up to 30cm x 30cm), has no lab requirements and can be used in combination with other techniques There is no similar harvesting, processing and delivery device for autologous tissue commercially available The US Department of Defense has provided a cash grant, contract and clinical trial support for the ReCell® technology; this enhances ReCell® credibility and recognition of the technology's potential Avita's burns study is the only study conducted by a non-US company to receive such support from the US Armed Forces (as part of the AFIRM trial) Over 3,500 patients have been treated with ReCell® Spray-on-Skin ReCell's® Spray-on-Skin has been embraced by key influential surgeons and Centres of Excellence in the UK, France and Germany Avita has an experienced management team Philanthropic acknowledgement ReCell® Spray-on-Skin was used to help the Bali bomb victims Inventor and Director, Professor Fiona Woods, was awarded Australian of the Year in 2005 34 medical avita#35Key Offer Details Offer size and Structure Conditional Placement to raise A$9 million, comprising - 90 million new AVH shares to be issued New shares issued will rank equally in all respects with existing ordinary shares from allotment New shares to be issued subject to shareholder approval - Not underwritten Share Purchase Plan ("SPP") will be provided for eligible shareholders - SPP is capped at A$2 million for a maximum of A$15,000 per eligible shareholder, at the AVH Board's discretion SPP booklet to be mailed to shareholders in due course Not underwritten Pricing - New shares to be issued subject to the Conditional Placement being approved at the EGM Fixed price of A$0.10 per share Discount is based on the AVH closing price as at 13 May 2011 of A$0.150 which represents: 28.6% to the 1-month VWAP (A$0.140) 32.2% to the 5-day VWAP (A$0.148) 33.3% to the last close (A$0.150) Lead Manager Wilson HTM Corporate Finance Ltd 35 medical avita#36Capitalisation and trading performance Capitalisation Share price $0.15 (as at 13-May-11) Listed shares on issue 118.1m Unlisted options (1) 15.5m Undiluted market $17.7m capitalisation Fully diluted market $20.0m capitalisation (2) Cash (3) $2.2m Enterprise value(4) $15.5m (1) Includes all options outstanding (weighted-average exercise price of A$0.146; 14,101,851 options are in-the-money). (2) Based on all options outstanding. (3) As at 31 March 2011. (4) Excludes options outstanding. Source: Company filings, Iress. Share price performance Last twelve months $0.17 Closing share price (A$ per share) $0.15 3,500 3,000 2,500 $0.13 2,000 $0.11 1,500 $0.09 $0.07 $0.05 13-May-10 13-Aug-10 15-Nov-10 15-Feb-11 0 1,000 500 Volume traded ('000) AVH volume traded ('000), RHS AVH share price, LHS medical avita 36#37Indicative Timetable Conditional Placement Trading halt Close Placement book (4:00pm AEST) Announcement of the Placement and lift trading halt Lodge notice of Extraordinary General Meeting ("EGM") EGM Conditional Placement settlement (subject to shareholder approval) Conditional Placement shares commence trading Timing(1) 16 May 2011 16 May 2011 17 May 2011 17 May 2011 22 June 2011 23 June 2011 24 June 2011 Share Purchase Plan Timing(1) Record date to determine right to participate in SPP 16 May 2011 SPP opens 20 May 2011 SPP closes 23 June 2011 New Shares issued under the SPP commence trading 30 June 2011 (1) Dates are indicative only and are subject to change. medical avita 34 37#38Thank you medical avita 38