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©BluechiipLtd|AllRightsReserved
©BluechiipLtd|AllRightsReserved
CapitalRaisingPresentation1-for-3Non-renounceableRightsIssueAugust2016
UniquepatentedMEMStechnologycombiningsecurewirelesstrackingwithintegratedtemperaturesensingforextremeenvironments
Bluechiip Ltd (ASX:BCT)F
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DisclaimerMaterial used in this presentation is a summary of available information, and while given in good faith, isprofessional opinion only. Any investor in Bluechiip Limited (BCT) should refer to all BCT ASX releases andstatutory reports before considering investment in the company.
Certain information may have been derived from third parties and though BCT has no reason to believe that itis not accurate, reliable or complete, it has not been independently audited or verified by BCT.
Any forward-looking statements in this presentation involve subjective judgment and analysis and are subjectto uncertainties, risks and contingencies, many of which are outside control of, and maybe unknown to, BCT.Neither BCT, nor its officers, employees and advisors make or give any representation, warranty or guaranteein relation to this presentation.
BCT reserves right to update, amend or supplement information in this presentation at any time in its absolutediscretion without incurring any obligation to do so.
BluechiipSampleTrackingIntroductionF
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BluechiipSampletrackingforextremeenvironmentsusingMEMSsensors
OverviewIntroduction
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• Foundedin2003• ListedonAustralianSecuritiesExchange(ASX)in2011• HeadofficeinMelbourne,Australia• GlobalDistributionNetwork• KeymanufacturingpartnersinEurope,UKand
Malaysia.• OEMPartneringagreementinAssistedReproductive
Technologies(ART)andIVF• StrongIPportfolio– 24grantedpatents,6pendingin
9patentfamilies
TheCompany
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Corporate overview
CorporateIntroduction
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Share PriceTop Shareholders
NumberofShareholders 706 MarketCap.(30Jun‘16) $5.03m
SharePrice(30Jun’16) 2.5c NetCash(30Jun‘16) $0.49m
SharesonIssue(30Jun’16) 201,377,647 EnterpriseValue(30Jun’16) $4.54m
Summary
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Volume(m
illion)
SharePrice
(cent)
PulitanoFamily 9.04%
Dr.Stephen Woodford 7.64%
Chairman&Entities 7.13%
AustralianExecutorTrusteesLimited 5.76%
Roshi BluePtyLtd&Entities 5.09%
Top20Shareholders 49.15%
Founder 2.12%
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Our Team
Introduction
Board
Corporate
IainKirkwood AndrewMcLellan MichaelOhanessian
Chairman
Experiencedinvestorandnon-executivedirector(listedandunlisted).Iainhasconsiderablepracticalandoperationalexperiencegainedfromasuccessfulfinancialcareerspanning35yearsincludinginresources,manufacturingandlatterlyhealthcareinAustralia,BritainandtheUSA.IainhasbeenamajorshareholderinBluechiipforover5years.
ManagingDirector
Experiencedininnovationandcommercialisationcombinedwithsignificanttechnicalandoperationalbackground.Andrew hasheldseniorpositionsincludingasVPofBusinessDevelopmentinNorthAmericaandDirectoratLeicaMicrosystems(previouslyVisionBioSystemsadivisionofthepubliclylistedVisionSystems),andasCEOoftheAdvancedManufacturingCo-operativeResearchCentre(AMCRC)
Non-executiveDirector
CEOandManagingDirectorofPraemiumLtd,Michaelbringsexecutiveexperienceintechnology-relatedbusinesses.PreviouslyCEOofVisionBioSystemsMichaelledthetechnologycommercialisationintoglobalmarketsbeforeitsparentVisionSystemswasacquiredbyUSbasedDanaherCorp.Michaelbringsamixtureofoperational,strategicandleadershipcapabilitiestohisroleatBluechiip.
Team
ScottTurner DrIanJohnston IrvinTeoh DavidWhite&HughDouglas
EngineeringManager
ProductEngineeringManager,MEMS(EU)
FinanceManager BusinessDevelopmentNorthAmerica(US)
OscarVal
TechnicalSalesandMarketingManager
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Unique patented technology combining secure wireless tracking with integrated temperature sensing for extreme environments
Differentiatedtechnologytolabels,barcodesandRFID
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BluechiipSampletrackingforextremeenvironmentsusingMEMSsensors
• Uniquetechnology,superiortolabels,barcodesandRFID
• Operatesreliablydownto-196°C• Instantsampletemperaturesensing• Gammaresistant• Reduceshumanerror• Increasesproductivity• Extremelydifficult tocopy• Applicationsinnichemarkets,e.g.cryogenicstorage
andbiobanking
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OurProduct:Chip+Reader+Software
OurSolutionTechnologyIntroductionF
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Core Technology | ChiipMEMSsmartChiip
OurSolutionTechnologyIntroduction
Micro-ElectroMechanicalSystems(MEMS)isamanufacturingtechnologyusedtomakemicrodeviceswithfeatureslessthanthewidthofahumanhair
• FunctionalatCryogenictemperatures(-196oC)
• UniqueIDcodedintoeachChiip atmanufacture
• Providestemperaturewhenpolledbyreader
• Readingtimeunder0.5second,eventhroughfrost
• Gammaresistant
• Canbemolded intoanyplasticMEMSchipsaresuperiortoRFIDinharshenvironmentsMostRFIDtagsuseintegratedcircuit(IC)technologywithelectricalcomponentssensitivetodamagebytemperatureextremesandgammaradiation.MEMSdevicescontainsmicromechanicalcomponentsthatareruggedandabletowithstandexposuretowidetemperaturerangesandgammaradiation.
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MarketOpportunities
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300+millionbiosamples perannum,2+billioninstorage
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Primary Market Opportunity
MarketStrategy
Cryogenic(-196C°)
Non-cryogenic(-80C°)
Cryogenic biobanking: 680M samples Cryogenic handling: 11M samples
Total biobanking: 2B samples Annual biobanking: 300M samples
Sources:VisualFuseandMarketsandMakets2014
Note:Cryogenicbiobankingisasegmentofthebiobankingmarketwhichstoressamplesatcryogenictemperatures(-196C)forextendedperiods.Themarketisdominatedbyhumansamplesforbiomedicalapplications.
Note:Cryogenictransportreferstosupply,transportandhandlingfromlongtermstoragefacilitiestoapplicationsitesswellasshorttermstorageandmanipulationofsamplesatcryogenictemperatures(e.g.personalisedmedicineandproteincrystallography).
Global Biopreservation Market Greater than $2B in 2015
12,000
10,000
8,000
6,000
4,000
2,000
0
No.ofsam
ples (thousandsperannum
)
Proteincrystallography
Regenerativemedicine
IVFprocedures
Othercryogeniccoldchainlogistics
Totalsamplehandling
7.7%CAGR
2,660
18.5%CAGR
3,100
11.6%CAGR1,800
3,799 11,359
Cryogenictransportandhandling
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Biobanking today300+millionbiosamples perannum,2+billioninstorage
NeedsBiobanking Today
High volume processing
Dual labelling
Emerging guidelines (ISBER, CAP etc) including temperature
Increasing demand for Cryogenic storage
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SegmentsBiobankingToday
IVF Sperm/EggsBloodTissue StemCellPlasma
Biobank tracking technology is not keeping up with the increasing value of biosamples
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Alternative technologies
OurSolutionBiobankingToday
GammaResistant
Cryo safeSurvivesextremetemps
NonvisualIDReadsthroughfrost
On-boardsensorTemperaturesensing
Reducedhumanerror
Productivityimprovements
LABELS BARCODES RFID BLUECHIIP
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OurSolution- CryovialsBiobankingToday
Curren
tBiob
ankProcess
Curren
tIssue
s Poorreadabilityinfrost.Labelsunreliable
Notemperaturetrackingsosamplerisk
NotreliableinCryo temps
HumanerrorNotGammaResistant
! ! ! ! ! !
Inefficient
Vial Vialbox Cryo tank Transportdewar Vial&box
!
Blue
chiip
Solutions
GammaResistantImmunetogamma
irradiation(usedforsterilisation)
Cryo safeSurvivesextreme
temps
NonvisualIDReadsthroughfrost
On-boardsensorTemperature
sensing
Reducedhumanerror
+ + + + + +
Productivityimprovements
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Other addressable markets
AdjacentMarketsStrategy
ColdChainLogisticPharmaceuticals
ColdChainLogisticsFood
IndustrialandManufacturing
Security&Defence
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Itemleveltemperaturetrackingofpharmaceuticalsthrough-outthecoldchaincycle.
Itemleveltemperaturetrackingoffrozenandtemperaturesensitivefoodstuffsthrough-outthecoldchaincycle.
Hightemperaturetracking,structuralhealthmonitoring,trackingoftoolsandpartsthatareexposedtoionizingradiationorgammaradiation includingsterilisedmedicaldevices,disposablesandsomefoodproducts.
Anticounterfeitingfashion,foodandhighvaluecommercialitems.Cloningabluechiip®tagisextremelydifficult.trackingoftoolsandpartsthatareexposedto ionizingradiation,securityanddefense.
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Embedded solutions for OEM partners
PartneringStrategy
Service & SupportGlobal support services
Design IntegrationCustom design and solution definition
ReaderCustomisable Hardware
Software & ElectronicsIntegrated into partner products
BluechiipsSuitable for various formats
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Genea Biomedx License & Supply Agreement
OEMPartneringStrategyF
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Bluechiip IVF Transport CoolerActive ID and Temperature Recording in Liquid Nitrogen -196oC
ProductsStrategyF
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1,800,000
2,500,000
3,000,000
3,700,000
15,000,000
7,500,000
IVF PROTEINCRYSTALLOGRAPHY
REGENERATIVEMEDICINE OTHERCRYOANDTRANSPORT
GENERALBIOBANKING GENERALBIOBANKING-NEXTGENERATIONCHIPS
NUMBE
ROFUNITS
Annualconsumables(Chiips) Storedconsumables
High Value Target Markets
MarketsSalesPipeline
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Bluechiip Opportunity(USD) $20m+ $2.5M+ $30M+ $30M+ $200M+
OEMPIPELINECLIENTS
AgreementDec2015RevenueMar2016DisplayedJuly‘16TargetLaunchQ1‘17
ExecutedagreementEvaluationinprogressValidationCustomers
ExecutedagreementEvaluationinprogressValidationcustomers
Evaluationagreements&developerkitsinprogress
Developerkitssoldwithmultiplevendors& validationcustomers
R&DDevelopment.Highvalueovertemperaturesensors
300M
2B
300M
$1.5B+
33M
Bluechiipopportunity($US)
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Our Sales
OurCustomersSalesPipeline
CASE STUDY:
METHODBluechiip tracking devices were attached to five cryocytecryopreservation bags.
All bags were transferred to a cryogenic storage tank. Each bag underwent five consecutive freeze-thaw steps.
RESULTSAll bags were successfully identified without the need to manually lift and visually check the patient identification label.
The Bluechiip tracking technology provided localised temperature information during the retrieval process.Faster and more consistent search times compared to manual methods.
Bags were maintained in more ideal, less disrupted conditions compared to manual methods.
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Targeted Sales & Pipeline Progress
Market
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Target Market MarketSizebySamples Bluechiip OpportunityUSD(Licencefee’s,R&D services,Bluechiips &Readers)
OEMPartner Progress>15partnersinpipeline
Timing
AssistedReproductiveTechnology(IVF)
1.8m IVFCycles/yr,33msamplesinstorage
$20m+ DeveloperKitDeliveredSupply AgreementExecutedDueDiligenceComplete- LicenceFeereceivedTradeshowdemonstration– R&DFeereceivedTargetLaunchQ1‘17
July‘15Dec ‘15Mar’16July‘16Q1‘17
ProteinCrystallography
2.5mSamples/yr $2.5m+ ExecutedagreementanddeliveryoftrialkitEvaluationinprogressEndValidationCustomersinplace
Q4‘15
RegenerativeMedicine
3msamples/yr15m+instorage
$30-50m+ ExecutedagreementanddeliveryoftrialkitEvaluationinprogressValidationcustomers
Q4‘15
Othercryogeniccoldchainlogistics
3.5-7.5msamples/yr>250minstorage
$30m+ Multiple evaluationagreementsDeveloperkitsdelivered
Q1-3 ‘16
GeneralBiobanking 300m+samples/yr>2B instorage
$200m+ DeveloperkitssoldwithmultiplevendorsEnd validationcustomersales
FutureCore TechnologyandAdjacentMarketOpportunitiesHighvalueovertemperaturesensors
300m+ $1.5B+ Governmentco-fundedR&DDevelopment
Engagement(Non-DisclosureAgreement)
Saleofdeveloper/trialkit,
evaluationagreement
Development&Supplyagreement
Demonstrationinmarket
Commercialproduct“Bluechiip Inside”
SalesPipelineF
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Product Pipeline - Readers
ProductsStrategyF
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Product Pipeline - Readers
ProductsStrategyF
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Use of Proceeds
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The proceeds raised from the Offer will be used to:
ü Complete development of products in Assisted Reproductive Technologies Market with our first OEM partner Genea Biomedx;
ü Complete current evaluation and development trials with pipeline customers in USA, EU and Asia;
ü Launch and roll-out the first range of IVF products through partners; and
ü Corporate overheads.
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Investment HighlightsØ Unique patented technology combining secure wireless tracking with integrated temperature
sensing for extreme environmentsØ $2b+ bio-preservation/bio-storage target marketØ Executed supply agreement with Genea Biomedx in the high value IVF market with global
distribution through a major pharmaceuticals companyØ Repeat initial revenue from license fees, service and product sales (2nd half FY16 $150k); Ø Pipeline of over 15 partners with initial revenue from developer kits and validation customersØ High revenue growth expected in short to medium term on IVF product release early 2017Ø Trial and developer agreements in protein crystallography, cell therapies, general biobanking
and Auto Identification and Data Capture marketsØ Government co-funded projects with University of Melbourne & Swinburne University to
make Bluechiips adaptable and suitable for formats with significant value enhancementØ Large adjacent market opportunitiesF
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Summary of Rights Issue
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A summary of the key information in respect of the Rights Issue is shown in the table below. Shareholders should read the Offer Booklet in its entirety before deciding to participate in the Rights Issue.
Ratio: One New Share for every three existing ordinary Shares (Non-renounceable)
Issue Price: $0.0225 per share
Number of New Shares: 67,125,882
Gross Proceeds: $1,510,000 (If fully subscribed)
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Summary of Rights Issue
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KEY DATES (INDICATIVE)
15 August 2016 Announcement DateAppendix 3B lodged with ASX
19 August 2016 Ex Date
22 August 2016 Record Date
25 August 2016 Dispatch of offer documentsRights Issue opens
9 September 2016 Rights Issue Closing Date
14 September 2016 Shortfall Notification Date
16 September 2016 Settlement Date
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Contact
©BluechiipLtd|AllRightsReserved
©BluechiipLtd|AllRightsReserved
AndrewMcLellan,ManagingDirector&CEOTel:+61(0)397639763Mob:+61(0)457823470Email:[email protected]
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