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1 28 April 2015 Company Announcements Office Australian Securities Exchange Quarterly Cash Flow Statement HIGHLIGHTS Third quarter sales of $3.742 million in line with expectations during transition period while North American direct sales operations are established Installed base continuing to grow well with over 4,500 trophon EPR units now installed in North America with a market potential of approximately 40,000 units Strong balance sheet to support growth strategy with cash reserve of $ million Establishment of direct sales operations in North America ahead of plan and expected to be fully operational by the end of Q4 Relocation to new global headquarters on track for Q4 Approval obtained from certified body to manufacture and release product from new facility Nanosonics Limited (ASX: NAN), a leader in infection control solutions, today released its Appendix 4C Quarterly Report for the quarter ended 31 March Following the announcement in February 2015, Nanosonics has made rapid progress in establishing its direct sales operations in North America to expand its presence and drive sales more broadly and deeply in the market alongside its distribution partner GE Healthcare. Sales for the quarter of $3.742 million were in line with expectations and reflect anticipated lower purchases of trophon EPR units by GE as the companies transition to a nonexclusive partnership and as Nanosonics establishes its direct sales operations. Sales of trophon EPR units by GE to customers continued to grow, with the installed base in North America reaching in excess of 4,500 units; trophon EPR is now represented in 44 of the top 50 hospitals and over 1,600 hospitals in total in North America. Cash at the end of the quarter totalled $ million compared with $ million as at 31 December The cash balance reflects the successful Placement announced on 5 March 2015 which raised $25.0 million and the subsequent Share Purchase Plan which raised a further $3.0 million. The funds raised during the quarter provide a very strong balance sheet to support the Company s growth objectives. This quarter has been one of significant achievement for Nanosonics, said Michael Kavanagh, Nanosonics Chief Executive Officer and President. The establishment of Nanosonics direct operations in North America is progressing ahead of plan and will be fully operational by the end of Q4. The Company has already hired most of the planned 15 infection prevention sales specialists, the majority of whom have commenced working for Nanosonics. These highly experienced sales professionals join Nanosonics six existing specialist infection prevention sales professionals and are starting to build momentum which is expected to grow steadily through this transition period going into the first quarter Nanosonics Limited ABN Unit Gardeners Road, Alexandria NSW 2015 Australia Tel: Fax: info@nanosonics.com.au w:

2 of FY16. Order fulfilment, warehousing and service operations in the US are now established and fully operational. Sales for the quarter were in line with expectations during this transition period. Importantly, the installed base in North America continued to grow strongly and there are now over 4,500 units across 1,600 hospitals. Based on the progress achieved to date in North America, Nanosonics remains confident of the overall market potential for trophon EPR. North America is estimated to have an installed base potential of 40,000 units and this represents approximately one third of the global market opportunity. Good progress continues to be made in Europe as well as in Australia and New Zealand. The fit out and construction activities at our new global headquarters in Lane Cove, NSW are well advanced and with approval now obtained from the Nanosonics certified body to manufacture and release product from the new facility, the organisation is on track to relocate by the end of June We continue to invest in our R&D program which is actively investigating significant applications leveraging both our core platform technology as well as new technologies. This supports Nanosonics objective of becoming the market leader in low temperature high level disinfection. The achievements of this quarter are pleasing and further drive our confidence in Nanosonics position to deliver on its growth objectives. Investor conference call Investors are invited to join a conference call hosted by Michael Kavanagh at 3.00pm AEST on Tuesday 28 April To access the call please use the following details: Conference ID: Australian Participant Dialin Numbers Toll: (this number can be used if dialing from an international location) Toll Free: International Participant Dialin Numbers Tollfree dialin numbers for each country are listed below. For countries not listed below, the Australian Toll number provided above may be used. New Zealand China Canada Hong Kong India Japan Singapore United Kingdom United States

3 An archive of the conference call will be available at and on the Company s website Nanosonics Limited Michael Kavanagh CEO / President For more information please contact: Michael Kavanagh, CEO / President or McGregor Grant, CFO, on (02) Kyahn Williamson, Investor Relations, Buchan Consulting on (03) Ben Oliver, Media Relations, Buchan Consulting on (03) About Nanosonics Nanosonics Limited is developing a portfolio of decontamination products designed to reduce the spread of infection. The Company owns intellectual property relating to a unique disinfection and sterilisation technology which can be suited to a variety of markets. Initial market applications are designed for the reprocessing of reusable medical instruments. The Company s first product is designed to disinfect Ultrasound Transducers. For more information about Nanosonics please visit

4 Appendix 4C QUARTERLY REPORT Name of entity NANOSONICS LIMITED ABN Quarter ended ( current quarter ) March 2015 Consolidated statement of cash flows Cash flows related to operating activities Current quarter Year to date (9 months) 1.1 Receipts from customers 9,294 25, Payments for: (a) staffing costs (b) intellectual property (c) quality and regulatory management (d) business development (e) premises, plant and equipment (f) external consultants and advisors (g) other operating costs, including working capital 1.3 Dividends received (3,704) (57) (92) (340) (340) (361) (3,401) (11,107) (232) (265) (842) (844) (965) (8,106) 1.4 Interest and other items of a similar nature received Interest and other costs of finance paid 1.6 Income taxes refund received (paid) Other (R&D Tax Incentive/EMDG) 60 Net operating cash flows 1,143 3,243 Page 1 of 4

5 Quarterly Report (4C Statement) for Quarter ended 31 March 2015 Current quarter Year to date (9 months) 1.8 Net operating cash flows (carried forward) 1,143 3,243 Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical noncurrent assets (e) other noncurrent assets (496) (908) 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical noncurrent assets (e) other noncurrent assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (provide details if material) Net investing cash flows (496) (908) 1.14 Total operating and investing cash flows 647 2,335 Cash flows related to financing activities 1.15 Proceeds from issue of shares and exercise of options 28,000 28, Net proceeds from issue of convertible note 1.17 Proceeds from borrowings 1.18 Repayment of borrowings (2) (5) 1.19 Dividends paid 1.20 Share issue costs (908) (908) Net financing cash flows 27,090 27,418 Net increase (decrease) in cash held 27,737 29, Cash at beginning of quarter/year to date 23,529 21, Exchange rate adjustments to item Cash at end of quarter 51,542 51,542 Page 2 of 4

6 Quarterly Report (4C Statement) for Quarter ended 31 March 2015 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions Payments are for director fees to non executive directors and salaries to executive directors including superannuation, rent to, and various services provided by directorrelated entities. Costs are determined on an arms length basis. Rent is at market rate determined by independent valuers. Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows None 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest N/A Financing facilities available Amount available Amount used 3.1 Loan facilities Credit standby arrangements Guarantee facilities Page 3 of 4

7 Quarterly Report (4C Statement) for Quarter ended 31 March 2015 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter Previous quarter 4.1 Cash on hand and at bank 3,470 3, Deposits at call 1,372 2, Bank overdraft 4.4 Term deposits 46,700 17,528 Total: cash at end of quarter (item 1.23) 51,542 23,529 Acquisitions and disposals of business entities Acquisitions Disposals (Item 1.9(a)) (Item 1.10(a)) 5.1 Name of entity N/A N/A 5.2 Place of incorporation or registration 5.3 Consideration for Incorporation 5.4 Total net assets 5.5 Nature of business Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX. 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed. Sign here: Date: 28 April 2015 Print name: Michael Kavanagh CEO/Managing Director Page 4 of 4