INNOVATION

COLLABORATION

GROWTH

ANNUAL REPORT 2016

Contents

Financials at a glance 2

Chairman's letter 4

CEO's report 6

Regional highlights North America 9

Regional highlights Asia Pacific 10

Regional highlights Europe/rest of world 11

Contents of the financial statements 49

Auditor's independence declaration 50

Financial statements 51

Notes to the financial statements 55

Directors' declaration 85

Independent auditor's report to the members 86

trophon®EPR: innovative technology delivering improved standards of care

12 Shareholder information 88

Glossary 90

Clinical research program 14

Corporate directory and information for investors 91

Information on the directors, company secretaries and 15

senior management

Directors' report 17

Company overview

Nanosonics (ASX: NAN) has developed a unique automated disinfection technology, which is the first major innovation in high level disinfection (HLD) for ultrasound probes in more than 20 years. This proprietary technology is now being introduced around the world and has the opportunity to become the new standard of care as it safely and effectively addresses the issues with traditional ultrasound probe disinfection practices.

Mission statement

We improve the safety of patients, clinics, their staff and the environment by transforming the way infection prevention practices are understood and conducted, and introducing innovative technologies that deliver improved standards of care.

NANOSONICS 2016 Annual Report | Page 1 Financials 2016 At a glance

93%

SALES

Total sales for the year were

$42.8 million, an increase of 93% driven by the continued strong adoption of trophon in North America following the establishment of Nanosonics direct operations in 2015.

$14.9m

$21.5m$22.2m

$42.8m

$15.6m

$27.2m

2013 2014 2015 2016 2016 H1 2016 H2

110%

GROSS PROFIT

Gross profit increased 110% with improvement in gross profit rate by 6% reflecting higher margin direct sales

in the US plus higher sales associated with consumables and service.

$8.5m

$13.9m

$15.3m

$32.2m

$12.6m

$19.6m

2016 H2

$122THOUSANDPROFIT/(LOSS) AFTER TAX

The Company recorded its maiden full year profit of $122,000.

2013

2014

2015

2016

2016 H1

($5.8m)

($2.6m)

($5.5m)

$122,000

($3.3m)

$3.4m

2013 2014 2015 2016 2016 H1 2016 H2

$1.9MILLION

FREE CASH FLOW

The Company recorded its first full year positive free cash flow of $1.9 million.

($5.9m) ($3.1m) ($4.7m)

$1.9m

($5.0m)

$6.9m

2013 2014 2015 2016 2016 H1 2016 H2

NANOSONICS2016 Annual Report |Page 2

Nanosonics Limited published this content on 17 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 August 2016 08:05:01 UTC.

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