1

27 February 2013

Ticker : ige

Web : www.ish.co.uk

2013 ANNUAL GENERAL MEETING

2

Company Overview

• Shares in issue 76,267,932

• Market Cap £1.24m @ 1.62p per share

• Est .1996 acquiring IP from Nottingham Trent University

• Floated on AIM in 2002 on back of 3D x-ray technology

• Operates in Security and Industrial inspection markets

• Security portfolio includes a range of portable, baggage

and vehicle x-ray screening products

• Industrial applications include x-ray inspection of

catalytic converters, batteries and medical devices

• Maiden profit in 2012

• Employs 20 staff based near Loughborough

AXIS-3D

3

Experienced Management

• Brian Emslie Chairman

• Louise George Chief Executive Officer

• Nick Fox Chief Technical Officer

appointment as NED from11th June 2013

• Vincent Deery Sales and Marketing Director

appointed 1st January 2013

• Ian Johnson Non-Executive Director

4

Investor Opportunity

• Company has a diversified portfolio of products across two sectors

• With national and international reach and blue-chip customers

• The Company has a well-qualified, experienced and balanced Board

• Finances have been well managed and costs controlled

• Revenue doubled and maiden profit achieved in tough economic

climate

• Opportunity to participate in AIM-listed British technology company

• Image Scan remains low investment threshold stock

5

Low Investment Threshold

• Sustainability of business performance

remains a challenge and a priority

• Company continues to be more sales

and marketing driven

• Extension of product range driven by

end user and customer feedback

• Contracts drawn from wider range of

customers and territories

• Appointed Financial PR advisers

0

2

4

6

8

10

12

14

16

18

20

Pence

2004 2006 2008 2010 2012

3 0 Se pte mbe r

SharePrice

Share-holding Share-

holding

Rise Step Int’l Dev 26.05%

D Allenby 8.08%

Calculus Capital 7.30%

A P Stirling 4.94%

Directors 4.12%

6

FY12 Highlights

• Revenue doubled to £4.3million

• Increased sales across both sectors

• Significant investment of £388,000 (2011: £137,000) in

R&D

• Expansion of product line to include 4 new products

• Break-even in both half-years

• Maiden profit after 16 years

MedSpect

7

Security Overview

• Security sales up 119% to £2,954,000 (2011: £1,351,000)

• Successful roll-out of new SVXi vehicle screening product

• First sale of AXIS-100 baggage screening system

• Margin of 35% reflecting sales mix:

– Lower margins on highly competitive baggage screening market

– Major elements of the SVXi subcontracted

– One-off costs associated with product introductions

8

Industrial Overview

• Industrial revenue increased by 64% to £1,348,000 (2011: £ 823,000)

• Developed two additional industrial inspection systems:

– MDXi-200, a more compact, lower cost system

– MedSpect, for inspection of small medical devices

• Two new industrial customers with repeat business potential

• Nuclear contract proving to be more costly than originally planned

• Overall Industrial margin at 45%

9

Sales Mix by Sector

0

500

1000

1500

2000

2500

3000

£'000

2005 2006 2007 2008 2009 2010 2011 2012

Financial Years

Security

Industrial

10

Income Statement

2009 2010 2011 2012

Revenue (£’000) 1,444 1,472 2,173 4,302

Gross Margin (%) 48% 55% 41% 38%

Overheads (£’000) 1,283 1,218 1,169 1,624

Profit/(Loss) (£’000) (537) (382) (237) 108

EPS (pence) (1.0) (0.6) (0.4) 0.14

11

Balance Sheet

£’000 2009 2010 2011 2012

Tangible Assets

(£’000) 73 49 44 39

Inventories (‘000) 233 273 315 413

Receivables (‘000) 246 348 596 1,197

Net Cash (£’000) 850 348 945 74

Current Liabilities

(£’000) (323) (204) (1,029) (746)

Net Assets (£’000) 1,079 814 871 977

12

Balance Sheet

• Year-end cash balance of £74,000

• Receivables at £1,197,000 of which £350,000

received within 3 days of the year end

• Current bank balance of £166,000

• RBS overdraft facility of £100,000

• Company remains debt-free

• Investment in inventory continues to support wider

product range

EOD vehicle inspection

Drugs in petrol tank

13

Commercial Strategy

Since 2009 the Company has adopted a strategy to:

Establish a range of standard products

Incrementally develop products to meet market demands

Invest in new products where commercially justified

Extend reach in territory through experienced sales team

Invest in marketing collateral and website

Positive signs that strategy adopted is valid:

Enhanced volume and quality of sales enquiry pipeline

Both sectors increasing in revenue and sales opportunities

FlatScan-TPXi

FlatScan-15

14

Product Portfolio

SVXi

2008 2012

Security

AXIS-3D AXIS-3D, AXIS-64,

AXIS-100, AXIS-53

FlatScan-TPXi FlatScan-TPXi Gen 2

FlatScan-15, ThreatSpect

SVXi

Industrial

MDXi-400, MDXi-NT MDXi-400, MDXi-NT

CatSpect, MDXi-200

MedSpect

15

Outlook

• Cumulative orders for current financial year of £1,145,000

– Opening order book of £417,000

– New order intake since 1st October of £728,000

• Order intake exceeds that first 5 months last year by 39%

• Increase evident across both sectors

– FlatScan sales reach extended to new territories

– Repeat sales of industrial system to a new customer

– Industrial opportunities opening up from niche expertise

• However, profitability reliant on securing 2 significant contracts

16

Challenges for 2013

• Improve profitability through increased gross margins

• Incremental investment in product range driven by market feedback

• Strong pipeline but sales target for 2013 is challenging

• Build on industrial expertise to secure new business opportunities

• Limited cash resources

• Sustainability of business performance remains the major challenge

17

Contact Us

Brian Emslie Chairman

Louise George CEO

Image Scan Holdings plc

3DX-RAY Limited

16-18 Hayhill Industrial Estate

Barrow-upon-Soar

Leicestershire, LE12 8LD

Tel : 01509 817400 Email : ir@ish.co.uk

Web : www.ish.co.uk Ticker : ige

18

Important Notice

• This document is issued and approved for distribution within the United Kingdom by

Image Scan Holdings plc (the “Company”) only to eligible counterparties and

professional clients as defined in the FSA rules. It is not directed at, may not be

suitable for and should not be relied upon by any other person. The information in this

document is compiled from a number of sources and is believed to be correct, but

cannot be guaranteed and should not be relied upon. This document does not

constitute or form any part of, and is not to be construed as an offer, invitation or

solicitation to buy or sell any securities issued by any of the companies referred to in it.

Any opinions expressed are subject to change without notice.