Visioneering Technologies : Appendix 4C and Business Activity Report - Dec-21 Qtr

For personal use only

ASX Announcement | 25 January 2022

Visioneering Technologies (ASX:VTI)

Visioneering Delivers Another Record Net Revenue Quarter in Q4 FY21 Culminating a Record Year and Exceeding Annual Forecast

Q4 FY21 Operational Highlights:

• VTI set record revenues for the quarter and FY2021 aided by the successful launch of its new product NaturalVue® Enhanced™ Multifocal
• Net Revenue (unaudited): US$2.1 million (A$2.9M), +46% vs. Q4 FY20, +7% vs. Q3 FY21; Fiscal Year 2021 net revenue (Unaudited) was US$7.2 million (A$9.9M), +40% vs FY20 and exceeding company forecast of US$7.0 million by US$0.2 million
• Cash receipts from customers: US$2.6 million (A$3.7M), +135% vs. Q4 FY20, +34% vs. Q3 FY21
• Net cash used in operating activities: US$2.1 million, +32% vs. Q4 FY20 and +13% vs. Q3 FY21; excluding inventory build for new product launch, cash use improved by 18% vs. Q3 FY21 to US$1.2 million

Atlanta, Georgia, USA Monday, 24 January 2022 (Sydney Tuesday, 25 January 2022): US-based

medical device company and producer of the NaturalVue® Multifocal 1 Day Contact Lenses

('NVMF'), Visioneering Technologies, Inc (ASX: VTI) ('Visioneering', 'VTI' or 'the Company') today announced its unaudited results for the quarter ended 31 December 2021 (Q4 FY21). The Company's fiscal year coincides with the calendar year.

In Q4 FY21, VTI achieved record net revenue of US$2.1 million (A$2.9 million), an increase of 46% over Q4 FY20. Fiscal year 2021 net revenue was US$7.2 million (A$9.9 million), an increase of 40% over fiscal year 2020 and US$0.2 million over the Company's previous forecast of US$7.0 million. This represents the 6th consecutive quarter of increased revenues on a year over year basis (excluding the Menicon initial stocking order in Q4 FY19).

The Company successfully launched its NaturalVue® (etafilcon A) Enhanced Multifocal 1-Day™ (Enhanced NVMF) contact lens in the quarter, improving its product offerings and adding to net revenue by filling initial stocking orders.

10745 Westside Way, Suite 200 Alpharetta, GA 30009 USA • E: info@vtivision.com • P: +1 (844) 884 5367

10745 Westside Way, Suite 200 Alpharetta, GA 30009 USA • E: info@vtivision.com • P: +1 (844) 884 5367

For personal use only

Shipments to US ECPs in Q4 FY21 were US$1.7 million (A$2.4 million), up 25% from Q4 FY20 and down 13% from the record results achieved in Q3 FY21. Fiscal year 2021 Shipments to US ECPs were US$7.0 million (A$9.7 million), up 24% from fiscal year 2020.

Gross profit margin was 41.5% in Q4 FY21, up from 40.1% in Q3 FY21 and down from 45.9% in Q4 FY20. Gross profit margin was 41.5% in fiscal year 2021 compared to 43.6% in fiscal year 2020. The lower margins in the FY21 periods were due primarily to higher logistics (i.e., shipping) expenses related to COVID-19.

The Company implemented a price increase effective 1 January 2022 and began shipping product primarily by ship from its manufacturer in Taiwan to the US, saving approximately 75% of the cost of the air freight used in FY21. The Company expects the price increase to improve margins in the first quarter, with further savings in shipping costs in the second quarter and the remainder of the year assuming no further deterioration in the shipping industry.

Cash and Cash receipts

Net cash used in operating activities was US$2.1m in Q4 FY21, an increase of 13% compared with Q3 FY21. Excluding inventory build for the 4Q FY21 launch of NaturalVue Enhanced Multifocal, net cash used in operating activities was US$1.2m, a decrease of 18% from the adjusted net cash used in operating activities in the previous quarter.

VTI will complete the inventory build for the new product launch in Q1 FY22. The Company also will incur an increase in cash use due to the initiation and execution of the PROTECT Study (see "Clinical Projects" below) in the first half of FY22. Nevertheless, VTI expects cash use to decrease in Q1 FY22 despite these investments and to improve further in Q2 FY22 when the inventory build and other costs associated with the launch of NaturalVue Enhanced Multifocal no longer impact net cash use. The Company remains confident that it has sufficient cash to reach approximately break-even.

In December 2021, VTI announced the departure of its then CEO and indicated plans to launch a focused recruitment campaign to source a replacement. After careful consideration of several factors germane to the replacement of a CEO, the Board of Directors of VTI has decided to not presently pursue the recruitment of someone to fill this position. The Board believes that the expertise and operational continuity provided by the existing VTI executive team in combination with the increased managerial involvement of the Chairman, Dr. David J. Mazzo, is providing adequate and appropriate overall executive management to the Company. The Company fully expects to achieve its operational and strategic goals going forward under this management arrangement, but will review it periodically and make adjustments as needed.

Payments made to related parties as described in item 6.1 of Appendix 4C were for non-executive director remuneration.

Clinical Projects

VTI announced on 24 January 2022 that the first patient completed the initial visit in the Company's landmark international multi-center clinical study to provide an additional measure of the effectiveness of its NaturalVue® (etafilcon A) Multifocal 1-Day Contact Lenses ('NaturalVue MF') for myopia progression control. The study, referred to as 'PROTECT' (PROgressive Myopia Treatment Evaluation for NaturalVue Multifocal Contact Lens Trial), is a multi-center, randomized, double- masked clinical trial with participating investigators in centers in Canada, the United States and Hong

10745 Westside Way, Suite 200 Alpharetta, GA 30009 USA • E: info@vtivision.com • P: +1 (844) 884 5367

For personal use only

Kong. PROTECT is an investment in the NaturalVue Multifocal product that the Company believes will be an important value driver beginning with the release of interim 1-year data in mid-2023. This study represents VTI's renewed commitment to invest in research and development and to leverage its leadership position in the rapidly growing area of myopia progression control.

VTI Product Development

In 4Q FY21, VTI launched its NaturalVue Enhanced Multifocal product, the next generation of VTI's successful flagship multifocal contact lens for managing myopia and presbyopia. The lens features the TripleTear® lubrication system and Ultra-Tapered Edge designed for optimal fit and comfort for all day wear.

On 26 July 2021, the Company announced an agreement for the Company to be the exclusive sales and distribution partner in the United States and Canada of the Forge Ortho-KTM and other contact lenses designed by the EyeSpaceTM software offered by Innovatus Technology Pty Ltd. Recently, VTI was informed that a third-party supplier critical to the arrangement would not deliver raw materials essential to the production of the contact lenses. Consequently, VTI will not be able to perform under the agreement and expects to terminate the contract. The Company's FY21 net revenue includes no net revenue from this contract.

VTI non-executive Chairman, David J. Mazzo, Ph.D. said: "VTI completed a successful launch of the NaturalVue Enhanced Multifocal contact lens and delivered record net revenue in the fourth quarter. Following on a strong finish to fiscal year 2021, we kicked off fiscal year 2022 with the start of the PROTECT Study. We believe this study will corroborate the real-worlddata we've shared for the past several years and dramatically expand interest from practitioners and parents in our products. We target having 1-yearinterim study results in mid-2023and expect that these data will strengthen our leadership position in myopia management, increase practitioner interest in and use of our product and create greater opportunities for strategic partnerships."

Ends.

This release was authorized by the CFO, Brian Lane.

Invitation To Join Investor Conference Call

Investors are invited to join a conference call on Thursday, 27 January 2022, at 9 AM AEDT (Wednesday, 26 January 2022, 5 PM EST) hosted by VTI's CFO, Brian Lane.

To pre-register for the call please use this link: https://s1.c-conf.com/diamondpass/10019184-samsdb44.html

VTI also will present slides to synchronize with the presentation. To pre-register for the webcast and view the slides, please use this link:

https://ccmediaframe.com/?id=ABSAQN2C

10745 Westside Way, Suite 200 Alpharetta, GA 30009 USA • E: info@vtivision.com • P: +1 (844) 884 5367

For personal use only

You will receive a calendar notification with dial in details and a PIN for fast track access to the call. Alternatively you can dial in using the details below at the scheduled call start time.

About Visioneering Technologies

Visioneering Technologies Inc. (ASX:VTI) is an innovative eye care company committed to redefining vision. A pioneer in myopia management, VTI merges advanced engineering with a relentless drive to achieve superior results for patients and practitioners. VTI's flagship product is the NaturalVue® (etafilcon A) Multifocal 1-Day Contact Lens, an extended depth of focus lens that is one of the most significant innovations in the eye care industry in more than 20 years. For more information, please visit www.vtivision.com.

Foreign ownership restrictions

VTI's CHESS Depositary Interests (CDIs) are issued in reliance on the exemption from registration contained in Regulation S of the US Securities Act of 1933 (Securities Act) for offers which are made outside the US. Accordingly, the CDIs have not been, and will not be, registered under the Securities Act or the laws of any state or other jurisdiction in the US. As a result of relying on the Regulation S exemption, the CDIs are 'restricted securities' under Rule 144 of the Securities Act. This means that you are unable to sell the CDIs into the US or to a US person for the foreseeable future except in very limited circumstances after the expiration of a restricted period, unless the re-sale of the CDIs is registered under the Securities Act or an exemption is available. To enforce the above transfer restrictions, all CDIs issued bear a 'FOR US' designation on the Australian Securities Exchange (ASX). This designation restricts any CDIs from being sold on ASX to US persons. However, you are still able to freely transfer your CDIs on ASX to any person other than a US person. In addition, hedging transactions with regard to the CDIs may only be conducted in accordance with the Securities Act.

Forward-Looking Statements

This announcement contains or may contain forward-looking statements that are based on management's beliefs, assumptions, plans and expectations and on information currently available to management.

10745 Westside Way, Suite 200 Alpharetta, GA 30009 USA • E: info@vtivision.com • P: +1 (844) 884 5367