Page 1

ASX ANNOUNCEMENT / MEDIA RELEASE 27 October 2021 AROA ™ AROA BIOSURGERY SEPTEMBER 2021 4C - COMMENTARY Financial Highlights • • • • • • H1 FY22 product revenue ( unaudited ) grew 110 % on H1 FY21 and 39 % on H2 FY21 , to NZ $ 17.2 million on a constant currency basis . 1 H1 FY22 product revenue ( unaudited ) was $ 17.7 million on a reported basis . Total reported H1 FY22 revenue ( unaudited ) , inclusive of project fees was NZ $ 17.9 million . FY22 guidance for product revenue ( on a constant currency basis ) upgraded to NZ $ 34-37 million ( up 58 % -71 % on FY21 ) from previous guidance of NZ $ 30-33 million.2 Net cash flow outflow from operations was NZ $ 2.8 million for the quarter , which included a one- off interest payment of NZ $ 1.5 million to Hollister Inc. ( ' Hollister ' ) . Net cash inflow from financing activities was NZ $ 38 million for the quarter , which included the proceeds from the capital raise and full repayment of the debt outstanding to Hollister . Strong cash balance of NZ $ 65.3 million as at 30 September 2021 , and the Company is debt free . AROA will host an investor webinar today at 11.30am AEDT to discuss the results . Click here to register . Operational Highlights : • • • ⋅ Completion of approximately A $ 47.4 million capital raise predominantly with institutional investors . Contract extension for AROA's Myriad ™ products with a leading US group purchasing organization ( ' GPO ' ) , Health Trust Purchasing Group , L.P. ( ' HealthTrust ' ) . This provides approximately 1,500 US hospitals and healthcare systems access to Myriad products . Manufacturing and development activities have not been materially affected by extended lockdowns in Auckland , New Zealand to date . Construction is on track to triple manufacturing capacity , and is expected to be completed by the end of CY21 . COVID - 19 led global supply chain disruptions are not anticipated to materially impact product manufacturing in H2 FY22 . Further clinical validation for EndoformTM and Myriad Matrix ™ with clinical studies published in leading peer - reviewed scientific journals . Soft tissue regeneration company Aroa Biosurgery Limited ( ASX : ARX , ' AROA ' or the ' Company ' ) is pleased to provide an update on its activities for the quarter ended 30 September 2021 , and update its guidance for FY22 . 1 Constant currency removes the impact of exchange rate movements . This approach is used to assess the AROA group's underlying comparative financial performance without any distortion from changes in foreign exchange rates , specifically the USD . The NZD / USD exchange rate of 0.72 has been used in the constant currency analysis , representing the AROA group's budget rate for FY22 . All references in this announcement to ' constant currency ' are as set out in this footnote . 2 Given the dynamic and evolving impact of COVID - 19 , the upgraded guidance is subject to there being no material decline in US medical procedure numbers . It assumes an average NZD / USD exchange rate of 0.72 . Unlocking regenerative healing for everybody AROA BIOSURGERY LIMITED ARBN 638 867 473 NZCN 1980577 64 Richard Pearse Drive , Auckland 2022 , New Zealand AROABIO.COM