Simavita Annual Report 2018

Introduction Simavita Limited (ASX: SVA) is a MedTech Company focused on the development of smart, wearable and disposable platform technologies for the health care market. Our key platform AlertPLUS™ is a highly disruptive technology focused on transforming a traditional “dumb” diaper into a smart device to help parents and carers of both infants and adults. Importantly, AlertPLUS™ is an everyday technology focused on a USD64bn annual market for diapers. With AlertPLUS™, manufacturers will reduce product manufacturing costs and maintain or improve efficiencies without changing equipment. Retailers will reduce their costs and create significantly better consumer loyalty whilst consumers obtain a vastly superior product at no or little cost increase. This technology will transform the global diaper market that until now has remained largely unchanged for over 25 years. The Company is committed to creating a profitable and valuable future through rapid innovation and the delivery of product that is truly transformational. In 2016 Simavita embarked upon its PIVOT strategy to restructure its focus, products and operations. Key to our goal has been to transition into a MedTech Company with a low recurring cost structure, capable of delivering product to new and major markets of interest. The Company can now deliver a portfolio of sensors and systems that meet a clear demand for change, cost effectiveness as well as better and timely information to address all segments of the international infant diaper and adult incontinence industry. The opportunity represents a clear unmet market need to provide low cost product to a rapidly growing US$53bn diaper market for infants and a US$11bn market for adult incontinence pads. An outstanding validation of our PIVOT strategy was the signing in August 2018 of the first major marketing agreement to target the sale of infant and adult products incorporating Simavita’s AlertPLUS™ platform technology. The Agreement, for a 12 month period of collaboration, will initially be focused on major customers in mass markets in North America and Europe. Simavita will be entitled to a share of profits generated from sales under this agreement. Technology Platforms AlertPLUS™ is our latest platform addition and core to the company’s future. AlertPLUS™ is available for infant and adult markets. It is, we believe, an industry disruptive, platform technology due to: –– Extremely low cost –– Negligible impact on current diaper manufacturing process –– Real time data delivered directly to the carer –– Significantly better outcomes at lower real cost to end users –– Ability to rapidly deliver new product to meet customer demand –– Materially reduced wastage and impact upon the environment –– Materially reduce inventory costs by understanding real time market demand It has 5 components which may be modified to suit product and market requirements. Components include: –– An integrated electronic sensor which forms part of the diaper materials. The sensor is added to the diaper during manufacture and does not require alteration of, or addition to, manufacturing equipment or the manufacturing process, nor does the addition of the sensor impact manufacturing efficiency. Current estimates of a standard sensor will be immaterial to the input costs of each diaper. Importantly, the sensor may be adapted to specified diaper types. Simavita makes diapers SMART and CONNECTED About Simavita Simavita Limited 2018 Annual Report 2