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Annual General Meeting Presentation

John Conidi Managing Director of Capitol Health Limited (ASX: CAJ)

5 November 2012

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AGENDA

1. Year in review

2. Financial results overview

3. Strategy and positioning

4. Strong start to FY2013 and outlook

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CAPITOL HEALTH SNAPSHOT

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Capitol Health Limited is an ASX-listed company providing medical diagnostic imaging services

John Conidi (Managing Director) Dominik Kucera (Executive Director &CFO) Steven Sewell (Non-Executive Director) Andrew Harrison (Non-Executive Director)

Board of Directors Key Statistics

ASX Code: CAJ Market cap: $28.4 million Share price: $0.076 52 week range: $0.029 – $0.080 CAJ clinics: 37

NOTE: Data as at market close 2/11/2012

Share Price Performance Major Shareholders

Founders 35%

Directors 13%

Radiologists 11%

Retail 41%

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1. YEAR IN REVIEW

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FY2012 FY2013

Interim Dividend declared Feb 12

MRI license allocation

Jun 12

SPP closes with strong

uptake Sept 12

SPP announced

Aug 12

Share price more than doubled

since last AGM

Record full year profit

Final Dividend declared Aug 12

DRP announced

Oct 12

IMI acquisition

finalised Mar 12

High activity + high achievement

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YEAR IN REVIEW

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2500000

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3500000

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Volume

Share price

Creating shareholder value

No. of shares $

Interim Dividend declared

MRI license allocation

Record year profits & final dividend

SPP results

Completion of IMI acquisition

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2. FINANCIAL RESULTS OVERVIEW

• Operating Revenue up 15% on FY2011, to $52.3 million

• Net Profit after Tax up 122% on FY2011, $2.1 million

• Interim and final Dividend payments – totalling 0.4 cents per share

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Track record of delivering year-on-year profit growth continued N

PAT

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119.6%

Revenue increase (%)

28.8%

14.7% $m

Operations commenced

1H Revenue 2H Revenue

FY NPAT

NB: 2009 – deduction of a one-off non-cash goodwill impairment charge

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FY2012 PERFORMANCE SCORECARD

KPI FY2011 FY2012 Trend

Revenue $45.6m $52.3m

EBIT 2.0m 3.5m

EBIT margin 4.4% 6.7%

NPAT $1.0m $2.1m

EPS (diluted) 0.29c 0.63c

DPS Nil Interim: $0.002

Full: $0.002

Net debt $1.2m $43,000

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FY2012 RESULTS COMMENTARY

REVENUE UP

Driven by: - Market share gains - Organic industry growth - Acquisition of IM Medical Ltd business

NPAT UP

Reflects: - Highly scalable and low-cost business model - Cost and operational efficiencies generated by

substantial investments in IT

NET DEBT REDUCED

- Acceleration in debt repayment - Debt reduced by 96.4% - from $1.2m to $43K - Reflects strong focus on capital management

MAIDEN & FULL YEAR DIVIDENDS

- Both fully franked & 0.2 cents per share - Reflects strong financial performance, solid

funding position & positive outlook

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[NOTE: Net debt = cash and cash equivalents minus current and non-current bank Commercial Bill liabilities]

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3. STRATEGY AND POSITIONING

Strategic business plan implemented in 2008

Bulk billing pricing model

Significant investment in IT and latest high-tech medical equipment

Establishment of dedicated sales & marketing team

Expansion of geographic footprint via acquisition and organic growth

Brand aggregation

Attractive employee offering

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STRATEGY AND POSITIONING

Our value equation

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Differentiated business model

Superior market positioning

↑ Market share ↑ Financial returns

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3. STRATEGY AND POSITIONING

The Capitol Health advantage lies in its superior offering to all stakeholders:

• Patients and referrers – price and service

• Employees – stability and opportunity

• Shareholders – low-cost commercial model

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INDUSTRY OUTLOOK

Australian DI industry is continuing to grow

• Australian DI market was $2.3bn in 2011 and is growing

• Growth expected to average 4% p.a. over the next 5 years

• Key drivers of growth:

- Expanding & ageing population

- Shift in focus to early detection and prevention

- Improving accuracy and capabilities of imaging techniques

- Government initiatives

• Economic climate and Government incentives causing industry shift towards bulk billed offering.

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4. STRONG START TO FY2013 & OUTLOOK

KPI First 4 months FY2012 (1 Jul – 31 Oct)

First 4 months FY2013 (1 Jul – 31 Oct)

TREND

Underlying revenue $17.2million* $19.4million ↑ 13%

Underlying NPBT $1.1 million* $1.5 million ↑ 25%

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Strong momentum has continued into FY2013

* Excludes impact of asset sales in Q1 FY2012, which amounted to $230, 873. Note: Total asset sales for FY2012 were $254,119.

FY2013 outlook:

Organic and acquisitive growth Solid ongoing growth in revenue and profit Interim & final dividend payments to continue, based on current outlook & conditions

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INVESTMENT CASE OVERVIEW

• Consistently strong profitability – FY12 profits up 121.9% on FY2011

• Highly focused strategy and ingrained commercial culture

• Dynamic and flexible management style

• Defensive revenue base – profitable bulk billing model in a resilient & growing healthcare industry

• Attractive offering for patients, Radiologists and referrers

• Regulatory environment supports business model and growth strategy

• Highly-scalable & low cost commercial model

• Proven track record of value-added acquisitions

• Significantly undervalued with attractive dividend yield

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CONTACT DETAILS

John Conidi Managing Director

Level 3, 81 Lorimer St

Docklands, VIC 3008

P: +61 (0) 3 9348 3333 F: +61 (0) 3 9370 0336

Email: j.conidi@capitalradiology.com.au

www.capitolhealth.com.au

ASX: CAJ

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