EFTA01114097.pdf

STOCKHOLM DIGNITANA PRESERVING DIGNITY OF UFE CORPORATE Chairman: Semmy Ri.ilf FINANCE CEO: Jan Richardsson Listing (ticker): Nasdaq First North (DIGN) Market capitalisation: SEK 320 m (Price SEK 19, April 4. 2016) Website: www.dignitana.com Strictly confidential ABOUT DIGNITANA Dignitana AB (pub,' ("Dignitana" or the "Company"), founded 2007, is a INVESTMENT CASE world leader in medical scalp cooling technology and the manufacturer • Breakthrough in December 2015 - FDA clearance, own or- of the DigniCap scalp cooling system. DigniCap reduces hair loss when ganization and new business model in USA, "paid per treat- patients are going through chemotherapy and has been used world- ment" with high margins (three times production cost 12 wide for many years. Approximately 400 systems have been delivered year). Ten contracts signed in the USA as of end of March. worldwide and more than 15,000 patients have been treated. • Only the US market is valued at approx. 5400 m yearly. December 2015 represented a significant breakthrough for the company • First mover advantage - Supplier of the most advanced auto- when FDA clearance for the Dignicap system was received. The DigniCap mated cooling caps in the world. scalp cooling system was cleared for use in women with breast cancer in • Excellent new management with proven track record from the U.S. To date, contracts have been signed with ten cancer centers the medical device sector - Chairman Semmy Waif has a long across the United States (March-16). experience from the medtech-sector. CEO Jan Richardsson Dignitana is listed on the NASDAQ First North Stock Exchange since 2011. previously VP sales Nederman with proven track record from developing sales organizations. In the USA Bill Cronin is the CEO of the US office and is also a large shareholder and has significant scalp cooling experience. • Large media coverage in the USA since the launch drives market demand from patients and clinics - Prevention of hair loss through scalp cooling contributes to the patient's well-being and quality of life. In the U.S. patients will re- quest and demand clinics to provide DigniCap. FINANCIAL INFORMATION During 2015 the main focus of the Company has been to receive the FDA- approval as well as build up an organization. These investments have ob- BUSINESS CONCEPT viously affected the sales activities during the year. Dignitana's business concept is to develop, produce and market scalp- Full year Full year cooling technology. Dignitana 2015 2014 THE MARKET (Group) (AB) Breast cancer is the most common malignancy in women worldwide. (KSEK) Although the majority of women will survive the disease, treatment Total revenues 801 21 219 often includes chemotherapy. Hair loss remains an almost universal Net profit after financial items -16 569 -10914 side effect of chemotherapy and is rated by breast cancer patients as one of the most distressing side effects of treatment, affecting qual- ity of life, return to work, and self-image. Some clinical studies indi- Cash and bank balances 19 042 1094 cate that as many as 5% of the patients refuse chemo therapy in fear OWNERSHIP STRUCTURE of hair loss. As of 31 Dec. 2015, the Company had some 2,000 shareholders. Approximately 230,000 new breast cancer patients are diagnosed per Number of Percentage of Shareholder on 31 December 2015 Shares capital and orates year in the United States of which approximately 60% can use Digni- Euzosund 3 750222 22.4% Cap. Each patient receives on average 5 cycles of chemotherapy. The AViati Pension 2 112 505 12.6% market potential for this particular segment in the USA is approx. C3 Dente Partners LP 1 653 551 9.9% 700 000 treatments per year, or about 5400 m per year. Nordnet Pennon 6417% 3,4% Green Pads & Golf Ventures 629 397 3,4% ML, Pierce, Fenner & Smith Inc. 371 064 2,2% BUSINESS MODEL Semmy RUN 335 079 2,0% Citibank, CENT-Charles Schwab. Newyork 254 233 1,5% The DigniCap system is sold to distributors as a stand-alone system in Citibank, CHIDN-LIIIS, London 152 000 0,9% most countries in Europe and in Asia. Sysmex Europe GmbH is responsi- William Cronin 147 021 0,9% ble for sales in the major European markets. Konica Minolta Medical & Others 6717005 40.1% Graphic Inc. is responsible for the largest Asian markets, such as China, Sum 16774 164 100,016 Japan and India. U.S. is expected to be the largest market for the Company and represents SHARE PRICE, PAST 12 MONTHS 50% of the total medical device market worldwide. The Company has, a EalA since the FDA clearance, established its own organization in the U.S with headquarters in Dallas. The company has been able to hire a group of INiam scalp cooling professionals who have experience using manual scalp cooling techniques and significant contacts within the oncology commu- nity. The business model in the U.S. is to lease the system to the facility and also receive payment per treatment. Standard contract: two-year lease at 600-1,000 USD/month plus 175.350 USD/treatment. PATENT Currently, the Company holds two patents; sensors in the cap and split cap functionality. Separate Coolant Circuits - patent expires in 2034. Temperature sensors - patent expires this year. Stodhcim Corporate Finance AB, Engelbrettscian 1, 114 29 Stockholm Tel Fax Aviv,.stockholmcmy.se 'Ma ExecutiveSummary provides a summary of the Company on./ and does not represent a complete presentation of the Company or the Milt% on which 4 operates. This Executor* Summary h bunion Somalian provided by the Company. It is up to investors to performan independent audt. SCF is not responsible for any direct or inerect losses oe damages suffered In connection with an investment in the company. EFTA01114097