Collagen Solutions PlcJamal Rushdy, CEO

Gill Black, CFO

Interim Results

6 months ended 30 September 2016

December 2016

DisclaimerThis presentation is incomplete without reference to, and should be viewed solely in conjunction with the oral briefing which accompanies it.The information in this presentation is subject to updating, revision and amendment. The information in this presentation, which includescertain information drawn from public sources does not purport to be comprehensive and has not been independently verified. Thispresentation has not been examined, reviewed or compiled by the Company’s independent certified accountants.

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December 2016 2

Our Vision

To become the industry’s first choice for regenerative biomaterials

33

Summary

4

● £1.9 million revenue and other income

● 30% growth on prior year

● Commercial and R&D investments for sustainable growth

● Progress with ChondroMimetic programme

● Further two new “finished device” projects initiated

● Goal of 5x sales in 5 years

Our Strategy

5

Biomaterials Core

Business

• Expertise in collagen and tissue biomaterials

• Supply, development and manufacturing

Novel Finished

Devices

• Internally developed finished devices

• Acquired and developed tissue engineering IP

Distribution and

Licensing

• Dedicated sales channels for core business

• Licensing partner model for owned devices

Goal:5x within 5 years

Multiple Growth Drivers

6

Sales channels, geographic expansion, OEM mix

Current finished device pipeline + licensing/distribution

Next stage pipeline + licensing/distribution

£0.1

£1.5 £1.9

£0.02

£1.0

£3.2

5x+

FY 2014 FY 2015 FY 2016 FY 2017

6 Mos Full YearSales and other income (millions)

Our Commercial Approach

7

Products

Approach

Customers

Research and

diagnostics

companies

Medical device

companies

Regenerative

medicine

companies

• Direct sales and channel partners

• Consultative sales process

• Development, supply, manufacture, & finished devices

Pericardium and other tissue products

Medical grade collagen products

• Specialised distributors

• Catalogue products

Commercial Investments and Progress

8

Distribution

• New distributors in Asia Pacific

• South Korea (October)

• Japan (November)

• USA direct order website for researchers (December)

Direct Sales

Channel

• Hired 3 Commercial Managers (total now 4)

• Supported by new marketing, sales operations team

• Training developed and delivered

• Early days: average 7 month tenure (Jan-Aug hires)

Chinese JV

(Cre8ive)

• Operational planning and implementation phase

• WFOE established

• Import agent appointed (November)

• Targeted market research and launch planning initiated

• +30% H1 YE 31 March 2017

• Foundation for sustainable growth

R&D Investments and Progress

9

Chondro-

Mimetic

• Retrospective study initiation in process

• Establishing manufacturing and regulatory

foundation for European re-launch

Research

Programmes

• Collaborator on a second Horizon 2020 project for

cell-based tissue regeneration techniques

• Grant funding of over €500k over five years

New Finished

Device Projects

• Fibrillar Collagen for wounds

• Bone Graft Substitutes for orthopaedics and

dental

• Strengthening tissue engineering expertise

• Value creation through owned products

ChondroMimetic Osteochondral PlugScaffold for treatment of cartilage defects

10

Enhanced MRI image from original pilot study showing 10 day and 6 month results.

First “Finished Device” Project Making Progress

• Retrospective 6+ year study

• Study protocol finalised

• Ethics committee submission in review

• Recent quantitative 3D MRI case study of original data:

new tissue indistinguishable from surrounding cartilage

• Manufacturing and CE Mark for re-launch in Europe

• Internal equipment installed, validations in progress

• External suppliers re-established

• 3rd party regulatory assessment complete, dossier in process

• Target European approval mid 2017

Horizon 2020 Research Programmes

11

Horizon 2020 BrainMatTrain (GA 676408)

€532,776 Started Dec 2016

Horizon 2020 Music (GA 731377)

€562,198 Starts Jan 2017

• Biomaterials-based Delivery Systems for

Parkinson’s Disease

• Partners:

• National University of Ireland, Galway

• Innsbruck Medical School

• Lund University

• CEA Paris

• Technical University of Denmark

• Radboud University

• Orbsen Therapeutics

• Neosurgery (Gipuzkoa)

• 2 new Early Stage Researchers based in Glasgow

• Multisystem Cell Therapy for Improvement of

Urinary Continence

• Partners:

• University of Zurich

• Xpand Biotechnology BV

• Tubingen University

• Paraclesus Medical University

• Research work to be carried out by existing in-house

R&D team

*These projects have received funding from the European Union’s Horizon

2020 research and innovation programme under grant agreements No

676408 and No 731377 respectively

Fibrillar CollagenPrimary applications in treatment of wounds

12

Second “Finished Device” Project Initiated

• Potential to address multiple markets in wound care and burns

• Advantages:

• Natural key molecule in wound healing process

• Flowable form provides application versatility

• 3D molecular structure to encourage fibroblast migration

• Poster presentation December, 2016 at TERMIS San Diego

• Target market clearance in 2018 in wound healing sub-indication

Bone Graft SubstitutesBroad applications in trauma, dental, extremities, and spine

13

Third “Finished Device” Project Initiated

• Existing medical device customer demand

• Over 2 million bone grafting procedures per year

• $1.7b total market, synthetic share increasing

• Advantages:

• Natural collagen matrix + Osteoconductive

• Absorbent, compression resistant, superior handling

• Formable, Non particle-shedding

• Provisional patent filed December, 2016

• Target orthopaedic market clearance in 2018

Bone Graft

Bone Putty

Dental Plug

Strengthening Our Team and Board

14

May

2016

Promoted Jamal Rushdy to

CEO and Board Member

• 20+ years medical devices, orthopaedics and biologics

• 2 public medical device companies, 3 successful start-ups• M&A, marketing, sales ops, finance

Jan-Aug

2016

Hired five new global sales and

marketing team members

• Global marketing and sales operations

• Regionally focused commercial managers

Oct

2016

Appointed Kevin Darling as GM

of New Zealand operations

• 20+ years commercial, sales & marketing, operational management

• Commercial roles with 3M (Medical), BOC Gases, Mars

Jan

2017

Geoff Bennett to transition to

Non-Executive Director

(bringing board to 3 NEDs)

• Co-founder and CEO of Southern Lights Biomaterials

• Extensive financial and commercial experience

• Will provide China JV oversight

Six months ended 30 September 2016FinancialsGill Black, CFO

15

Statement of comprehensive income

16

Unaudited 6 mths Unaudited 6 mths Audited - Year30-Sep-16 30-Sep-15 31-Mar-16

£000s £000s £000s

Revenue 1,831 1,442 3,130

Other income 60 18 1141,891 1,460 3,244

Gross profit 1,305 1,090 2,319GP % 71% 76% 74%

LBITDA (before separately (418) (79) (410)

identifiable items)

Separately identifiable items (294) 0 152

LBITDA (712) (79) (258)

Amortisation & depreciation (206) (156) (346)

Finance costs (includes unwinding of discount) (65) (122) (262)

Loss before tax (983) (357) (866)

Embedded customers driving revenue growth

17

£1.04mYear Ending

31 March 2015

£3.24mYear Ending

31 March 2016

Six month revenue & other income trend

£0.02 £0.14

£0.89

£1.46

£1.78

£1.89

31-Mar-14 30-Sep-14 31-Mar-15 30-Sep-15 31-Mar-16 30-Sep-16

Financial KPIs

18

83.2%

75.7%

71.3%

Gross Margin (%)

30-Sep-14 30-Sep-15 30-Sep-16

£143,213

£1,460,218

£1,891,001

Revenue & Other Income (£)

30-Sep-14 30-Sep-15 30-Sep-16

£119,023

£1,090,856

£1,305,150

Gross Profit (£)

30-Sep-14 30-Sep-15 30-Sep-16

Financial KPIs

19

*Before separately identifiable items:

• 2016: Unrealised translation losses on deferred consideration - £294,229 debit

• 2015: NIL

• 2014: NIL

(522,144)

(79,376)

(712,537)

LBITDA* (£)30-Sep-14 30-Sep-15 30-Sep-16

(0.88)

(0.26)

(0.60)

EPS (p)

30-Sep-14 30-Sep-15 30-Sep-16

927,094

3,104,230

1,657,193

Cash and Equivalents (£)

30-Sep-14 30-Sep-15 30-Sep-16

Revenue by geographic region

6 months ended 30 September

20

54%

10%

36%

2016 Revenue by region

North America EMEA Asia Pacific

59%

2%

39%

2015 Revenue by region

North America EMEA Asia Pacific

Revenue by activity

6 months ended 30 September

21*

58%

7%

35%

2016 Revenue by activity

Contract Manufacturing Development Materials

64%7%

29%

2015 Revenue by activity

Contract Manufacturing Development Materials

Investment in sustainable growth

• Customers – Active account management to improve customer engagement and develop commercial opportunities. Outreach programmes via newsletter

• People – increased headcount by 5 across sites in Commercial (Sales and Marketing) and Finance (NZ)

• Products and capabilities – Modest Capex invested in R&D and production facilities to achieve process improvements and increase capacity

• Growth – Website launch and re-branding, social media activities marketing collateral and focused trade show and conference attendance

21

Statement of financial position – 30 September

23

30-Sep-16 30-Sep-15 31-Mar-16

£000s £000s £000s

ASSETS

Intangible assets 14,326 12,883 12,971

Fixed assets 1,251 893 1,161

Current assets

Inventory 410 214 264

Trade and other debtors 852 524 636

Cash 1,657 3,104 2,493

Total Assets 18,496 17,618 17,525

EQUITY AND LIABILITIES

Share capital and reserves 18,017 14,307 16,480

Retained deficit (3,611) (2,053) (2,584)

14,406 12,254 13,896

Non-current liabilities 2,835 2,878 2,753

Current liabilities 1,255 2,486 876

Total liabilities and equity 18,496 17,618 17,525

Group statement of cash flows – 30 September

24

Unaudited 6 mths Unaudited 6 mths Audited - Year

30-Sep-16 30-Sep-15 31-Mar-16£000s £000s £000s

Cash flow from operations (648) 102 7

Interest and tax paid (47) (62) (191)

Capital expenditure (99) (149) (463)

Patents, IP and intangibles (71) (92) (207)

Deferred consideration (25) 0 0

Repayment of loans (11) (14) (26)

(Decrease)/increase in cash (901) (215) (880)

FX rates on balances held in foreign 65 (72) (18)

currencies

Net (decrease)/increase in cash (836) (287) (898)

Cash at beginning of period 2,493 3,391 3,391

Cash at end of period 1,657 3,104 2,493

Summary

25

● £1.9 million revenue and other income

● 30% growth on prior year

● Commercial and R&D investments for sustainable growth

● Progress with ChondroMimetic programme

● Further two new “finished device” projects initiated

● Goal of 5x sales in 5 years

Thank You