Austofix Group Limited

Chairman’s Address to AGM – 18 November 2011

WELCOME

Good morning ladies and gentlemen, welcome to the 2011 Austofix Annual General Meeting.

My name is Mark Balnaves and I am the chairman of Austofix. Together with Austofix CEO,

Mark Szolga, we will be updating you on the events of 2011 and the business challenges and

opportunities that lie ahead.

There is a quorum of shareholders present and I declare the meeting open.

At this point I would like to introduce the Board

Tony Ingman – Executive Director and Founder of Austofix;

Greg Bittar – Non-executive Director.

I would also like to introduce Alex Porter, our Company Secretary.

Our auditors, Grant Thornton, are represented here today by Simon Gray. Our lawyers,

Johnson Winter & Slattery, are represented here today by Kerry Morrow.

Shortly I will introduce Mark Szolga to present a review of the Group’s operations and future

outlook. Following on from Mark’s presentation we will deal with the formal resolutions and

any questions relating to those resolutions.

2011 IN REVIEW

Austofix has continued to invest in bringing products to market, with our key focus being to

build sales of our hip replacement products. Mark Szolga will provide further detail in his

presentation.

THE FUTURE

Our goal is to be the leading Australian manufacturer of major joint replacements, a provider

of safe and responsible orthopaedic products and a Company which has extensive engagement

with Australian surgeons.

In 2012 our focus will continue to be on selling our products into the Australian market.

CEO’S ADDRESS

I now hand over to Mark Szolga to provide further information for you.

CLOSING

In calendar 2011 Austofix hip replacements have been implanted in NSW, WA, Tasmania

and South Australia. We need to continue to build our sales capacity and we are focused on

significantly increasing our sales.

For

per

sona

l use

onl

y

I’d like to thank my fellow Board Members for their commitment and support and our

management team led by Mark for their dedication and hard work. Finally, I would like to

thank all of you, our shareholders, for your continued support. Thank you for your attendance

and I declare the meeting closed. I encourage you to stay and partake in refreshments.

For

per

sona

l use

onl

y

Orthopaedic solutions for an Ageing Population

CEO Presentation

November 2011

For

per

sona

l use

onl

y

Austofix – Foundations in place • Australian orthopaedic company – design and manufacture

implants to fix broken or degenerating bones and joints

• 3-Stage Growth Strategy to become a significant player in the Australian Orthopaedic Market

• Stage 1: Grow product range

• Stage 2: Gain approvals to sell hip replacement products

• Stage 3: Invest in stock, appoint sales resources and significantly grow sales.

• Stage 3: Expanding product portfolio in key segments: Knee & Spine - Currently reviewing potential Knee products for the Australian market

2

For

per

sona

l use

onl

y

Developments in 2010/2011 Business Development • Total hip replacement technology access, regulatory approvals and

PBL listing

• Purchase initial stocking order of total hip replacements

• Added distributors in UK, Spain, Austria, Czech Republic, Slovakia, Romania, Dubai, Brazil

• Appointed new sales agent in WA

• Implanted 50 Hemi/Total Hip replacements since launch hip product, comprising approximately 150 hip products.

3

For

per

sona

l use

onl

y

Product Launched in 2010/2011

4

For

per

sona

l use

onl

y

International Distributor Network

5

China/Malaysia

Argentina

Spain Romania

South Africa

UK / Northern

Ireland

Turkey

Greece

Brazil

Czech Republic

Slovakia

U.A.E

Ecuador Bolivia

For

per

sona

l use

onl

y

Stage 2: Hip Market

• Stage 2 of our strategy will deliver a high quality Total Hip Replacement (THR) system to market

6

$270

$285

$105

$140

$53$24 $36

Hips and Trauma account for over 41% of the Australian

Orthopaedic market

Source: PWC data, to end June 2009

* Spinal market size Company estimate

Spine *

Instrumentation

Bone Cements

and Substitutes Other

Hip

Knee

Trauma

For

per

sona

l use

onl

y

Why focus on Hip? • Product Strategy:

- Pre-IPO: Femoral Nail

- Post-IPO: Tectona plate and Partial Hip Replacement

- Now: Total Hip Replacement

• Commercial Strategy: able to sell effectively to hospitals when offering a Total Hip Replacement system

7

TECTONA PARTIAL /

HEMI

THR

Trauma Total Hip Replacement

For

per

sona

l use

onl

y

Hip – now offering THR

8

Hip trauma products

Total Hip Replacement System

For

per

sona

l use

onl

y

Value in THR

9

Trauma

PBL Rebate Code

Tectona Plate (1) 800$ AX056

Standard Lag Screw (1) 200$ AX054

Cortical Screw (1) 30$ AX051

Locking Plate Screw (2) 360$ AX053

1,390$

Total Hip Replacement

PBL Rebate Code

Hyperion Uncemented System 4,300$ AX044

Head 800$ AX047

Plasma Cup 2,700$ AX082

Poly liner 820$ AX072

8,620$

6x increase in revenue by selling Total Hip

Replacement versus Trauma for Hip fracture

For

per

sona

l use

onl

y

Summary

• Company well positioned for healthy revenue build

• Focus is building inventory, appointment of additional high quality sales staff and growing sales in Australia

• Expanding portfolio of products in key growth areas

10

For

per

sona

l use

onl

y