Mach7 Technologies : Annual Report to Shareholders FY20

FOCUSED ON INTRODUCING A NEW ERA IN ENTERPRISE IMAGING INNOVATION AND INDEPENDENCE

Annual Report 2019/20

(ASX: M7T) ABN 007 817 192

CONTENTS

02. CEO/Chairman's Letter

04. Global Presence

05. Customer Expansion

06. Customers - FY20

07. Who is Mach7?

08. The Mach7 Customer Values Differentiators

11. The Mach7 Enterprise Imaging Solution - Product Suite

15. Board of Directors and Company Secretary

1. Financial Report 2019/20
2. Directors' Report

1. Auditor's Independence Letter
2. Statement of Financial Position
3. Statement of Profit and Loss and Other Comprehensive Income
4. Statement of Changes in Equity
5. Statement of Cashflows
6. Notes to the Consolidated Financial Statements

82. Independent Auditor's Report

1. Corporate Governance Statement
2. Additional Shareholder Information

90. Corporate Directory

CEO/CHAIRMAN'S LETTER

Dear Mach7 Shareholders,

We're delighted to present you with our Annual Report for 2020. This year has been a very successful year for our Company, having doubled our revenue and achieved profitability and positive cash flows for the first time since listing in 2016. These were all goals we set at the start of the year, and we are proud to have successfully delivered on these. This has put Mach7 in an excellent position to achieve future growth.

We are pleased to have seen all our three major regions (North America, Asia-Pacific, and Middle East) contribute to our revenue and profitability growth during the year. In particular, the Asia-Pacific region continues to grow as we consolidate our position in Hong Kong and expand into other surrounding countries.

Whilst the Coronavirus pandemic created a challenge this year, the Company continued to deliver results. The Executive team has executed two successful capital raisings during the year which puts us in a strong financial position for the year beyond.

STRATEGIC ACQUISITION

A big part of our year included pursuing our planned strategic initiative, the acquisition of Client Outlook, whose "eUnity" SMARTViewer is a recognised leader in the universal viewer market. We were pleased to announce this deal successfully closed on July 13, 2020, a deal which we believe is transformational for the Company. The powerful combination of eUnity and Mach7's platform provides our customers with a true end-to-end enterprise imaging solution.. This opens a much larger addressable market for the Company, extending beyond Enterprise Imaging to teleradiology and PACS. The prioritisation of Enterprise Imaging Infrastructure in the imaging market is a continuing trend which favours Mach7. Teleradiology and remote reading have also emerged as prominent growth areas which we are well placed to compete in. We are optimistic about what these market opportunities will yield in the months and years to come.

PEOPLE & EXPERTISE

Following the prior year appointment to the Board of leading Radiologist Dr. Eliot Siegel, this year Rob Bazzani was appointed to our Board. Rob is amongst Australia's most highly respected business leaders and has added tremendously to our range of skill sets.

Through the acquisition of Client Outlook, we have also added significantly to our imaging industry talent base across all staffing levels, and importantly, to the executive team.

CUSTOMERS

We have gained the endorsement of the market by capturing a number of preeminent sites this year and delivering on our commitments to enable better productivity and improved clinical outcomes.

Customer advocacy and our commitment to innovation is establishing our brand as a leader in the imaging industry. We continue to leverage our existing installation base to attract new customers.