CONNECTING IMAGING TO CARE
EOS imagingCorporate PresentationMike Lobinsky, CEO
Valérie Worrall, CFO
October 14, 2019
> This document has been prepared by EOS imaging (the "Company") and is provided for information purposes only.
> The information and opinions contained in this document speak only as of the date of this document and may be updated, supplemented, revised, verified or amended, andsuch information may be subject to significant changes. EOS imaging is not under any obligation to update the information contained herein and any opinion expressed in thisdocument is subject to change without prior notice.
> The information contained in this document has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to the accuracy,completeness or appropriateness of the information and opinions contained in this document. The Company, its subsidiary, its advisors and representatives accept noresponsibility for and shall not be held liable for any loss or damage that may arise from the use of this document or the information or opinions contained herein.
> This document contains information on the Company’s markets and competitive position, and more specifically, on the size of its markets. This information has been drawnfrom various sources or from the Company’s own estimates. Investors should not base their investment decision on this information.
> This document contains certain forward-looking statements. These statements are not guarantees of the Company's future performance. These forward looking statementsrelate to the Company's future prospects, developments and marketing strategy and are based on analyses of earnings forecasts and estimates of amounts not yetdeterminable. Forward-looking statements are subject to a variety of risks and uncertainties as they relate to future events and are dependent on circumstances that may or maynot materialize in the future. EOS imaging draws your attention to the fact that as forward-looking statements cannot under any circumstance be construed as a guarantee of theCompany's future performance and that the Company’s actual financial position, results and cash flow, as well as the trends in the sector in which the Company operate maydiffer materially from those proposed or reflected in the forward-looking statements contained in this document. Furthermore, even if EOS imaging’ financial position, results,cashflows and developments in the sector in which the Company operates were to conform to the forward-looking statements contained in this document, such results ordevelopments cannot be construed as a reliable indication of the Company's future results or developments. The Company does not undertake any obligation to update or toconfirm projections or estimates made by analysts or to make public any correction to any prospective information in order to reflect an event or circumstance that may occurafter the date of this presentation. A description of those events that may have a material adverse effect on the business, financial position or results of EOS imaging, or on itsability to meet its targets, appears in the "Risk Factors" section of EOS imaging Registration Document registered with the Autorité des marches financiers
> Certain figures and numbers appearing in this document have been rounded. Consequently, the total amounts and percentages appearing in the tables are therefore notnecessarily equal to the sum of the individually rounded figures, amounts or percentages.
> This document does not constitute or form part of an offer to sell or to purchase securities or the solicitation of an offer to purchase securities in the United States of America orin any other jurisdiction. The securities mentioned in this presentation have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the“Securities Act”) or under any other legislation of any jurisdiction in the United States of America and may not be offered or sold in the United States absent registration or anapplicable exemption from registration under the Securities Act.
Disclaimer
EOS imaging: EOSI.PA
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Connecting Imaging to Care
~170 employees, including an R&D team of 45 engineers
Clearance to market in 51 countries incl. U.S. (FDA), Japan, China, and the European Union (CE), with >300 units installed worldwide
Unique, innovative, low dose 2D/3D full body imaging and software solutions bridging the gap between imaging and orthopedic surgery
Targeting a ~€2 billion per year addressable market
Direct commercial presence and tactical partnerships with offices in Paris France (HQ), Cambridge Massachusetts, Montreal Quebec, Besançon France, Frankfurt Germany, and Singapore
Created from a technology developed by Dr Georges Charpak, awarded Nobel Prize in Physics, with growing medical endorsements, including >385 publications since 2012
4
Company Milestones
Continued Innovation and Growth
1992
1998
2007
2008
2012
2014
2017
2018
2019
Radiation detection technology used to create EOS imaging was awarded the Nobel Prize in Physics
Initial steps in medical radiology under Marie Meynadier’s leadership
EOS® receives CE mark, initial commercialization team established
FDA clearance received. First EOS systems installed in Europe and North America
EOS imaging listed on Euronext Paris (EOSI)
EOS imaging installs 100th
system globally and authorized to market in 48 countries
Receives FDA clearance on EOSapps surgical planning portfolio and launches EOS 3Dservices
100 EOS systems installed in U.S. and 300 systems globally. EOS Private Practice Program launched in U.S.
Mike Lobinsky transitions into CEO role
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Management Team
Combined 140+ Years Medical Technology Experience
Mike Lobinsky – Chief Executive Officer
• 20+ years medical device experience including senior management positions at Smith and Nephew, Brainlab, Blue Belt Technologies, Stryker Corp
• Joined EOS imaging in 2017• Appointed CEO January 2019
Valerie Worrall - Chief Financial Officer
• 20+ years finance experience in the healthcare industry including Novartis and previously CFO of Balt
• Joined EOS imaging in 2018
Eric Maulave - Chief Operating Officer
• 25+ years experience including business engineer for the IT and multimedia sectors and international Sales and Marketing Director within the Philips Group
• Joined EOS imaging in 2012
Didier Saint-Felix - Transformation Director
• 30+ years experience in the research and development of innovative medical imaging systems.
• Began his career at the French National Center for Scientific Research (CNRS) and then led R&D at General Electric Healthcare
• Joined EOS imaging in 2006
Kären Solie - Vice President Global Marketing
• 25+ years marketing experience in the medical device industry including senior marketing and market development positions at Stryker, Mako Surgical, superDimension, Covidien (Medtronic), Smith & Nephew and AxoGen
• Joined EOS imaging in 2018
Maurice Delplanque- Vice President of Engineering
• 20+ years experience in R&D and engineering in the healthcare industry
• Contributed to the development of the first digital radiography of neurology and cardiovascular systems at General Electric Healthcare
• Joined EOS imaging in 2007
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EOS – Recognized 2D/3D Low Dose Radiology Solution for Orthopedics
Basic offering
Imaging
EOS systemBiplanar, low dose image capture
Imaging center takes full-body images of patients in a standing or seated position
sterEOS workstation3D modelling done by radiology technicians
1st generation visualization of 3D
Manual 3D modeling
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One of the 5 imaging modalities
CT Scan
MRI
Conventional radiography
Ultrasound
EOS System
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Differentiated Orthopedic Imaging Platform
Addressing Weaknesses in Conventional Imaging
1Patients treated for Adolescent Idiopathic Scoliosis had an overall cancer rate 5 times higher than of an age matched populationIncidence of cancer in adolescent idiopathic scoliosis patients treated 25 years previously, Simony A et al. Eur Spine J. 2016
EOS Platform X-ray: CR/DR CT Scanner MRI Ultrasound
Low dose1P P P
3D imaging P P* P*
Full-body(no stitching) P P P
Weight-bearing P P P
Low cost P P
*Only available in non functional positions
EOS X-Ray
Continuous, full-body imaging
Imprecise, stitched imaging
Bone imaging Soft tissue imaging
Other orthopedic imaging modalitiesExam
time cut up to
80% vs Xray
Dose cut2-10x
vs Xray
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EOS Orthopedic Solutions
Expansion Beyond Radiology System & Creation of Two Focused Divisions In 2019
Advanced Orthopedic Solutions Division Imaging Division
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EOSapps Gaining Traction in Orthopedic Surgery Planning
Web-based, 3D Planning & Simulations of Surgical Outcome
spineEOS› Open architecture (currently) – able to add
vendor specific CAD screws, cages, rods, other
› 3D rod information exportable to rod bender or 3D printer
hipEOS› 3D range of motion simulations of surgical
outcome based on pre-op plan› Better understand patient’s hip & spine
relationship and identify patients at risk of early revision/dislocation
kneeEOS› Real time optimization of knee alignment and surgical
strategy› Automatic proposal of implant size and position according
to EOS images and 2D/3D patient dataset› Open platform, enables compatibility with all primary TKA
implants
Provides for inventory management and optimal instrument set logistics
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Launch of EOSlink™
Integration of EOS images + 3D models + EOSapps surgical plans into the operating room
Patient specific 3D planning and transfer of EOSapps data in the OR
Seamless integration with existing intra-operative execution systems, including navigation and robotics-based platforms
Secure data transfer
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~€2b Addressable Market Opportunity
1More than 100 joint orthopedic and/or 30 complex spine surgeries per year, worldwide estimation2Considering: services charged at €200 per surgery with 200 surgeries per EOS platform per year & 1 platform per site
€0,7b €0.5b €0.5b
Equipment +
• €400k ASP• Renewal market for
7-year lifetime• 12,000 sites with
significant orthopedic surgery volumes1
• €45k per unit • Online services and consumables2 (patient specific instruments)
€1.7b
Total
€0.7b
Maintenance Services =
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Installed Base Growth by Region
300 units Worldwide
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Over 330 Systems Installed Worldwide
EMEA45.1%NAM
38.6%
Asia-Pac.16%
Lat. Am0.3%
(1)
EOS Installed Base
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Global Sales Channels
Addressable Market Represents ~12,000 EOS® Systems Worldwide
Co-marketing program
Partnership associating EOS equipment to implant volumes in multi-year implant procurement contracts
Direct Sales Distributors & Agents Strategic Partnerships
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› Privately owned orthopedic practices operate their own imaging equipment
› >10 private practices purchased EOS
Continued Expansion Beyond Hospital Market
Growing Adoption in Imaging Centers & Orthopedic Private Practices
France: >80 EOS Installed 70% In Private Imaging Centers
› 2/3 of radiologists are in private sector
› Serving orthopedic surgery private clinics
Australia: 20 EOS Installed70% In Private Imaging Centers
Germany: 13 EOS Installed 40% In Private Settings
› Serving orthopedic private clinics
U.S.: >110 EOS InstalledLaunched Orthopedic Private Practice Program
› Serving orthopedic surgery hospitals and private clinics
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U.S. Market Opportunity
~2% Penetration Rate
~ 1,000 tier one hospitals
~ 5,000 hospitals
(w/ inpatient treatment)
~100+ installed
Private Ortho Groups Practice
~ 750 tier one Practices
~ 1,600 private practices
(w/o inpatient treatment)
10+ installed
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EOSone Program Traction
Opening up new segment with EOSone in the U.S.
Launch of EOSone Private Practice Program in US with greater focus on customer targeting and financing options to minimize capital outlay
Example at Cantor Spine Institute, the first private practice in Florida to install the EOS system with EOSone program
60%+ growth in EOSone Opportunity Growth in 2019
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Continued US Top Hospital Penetration
Group Purchasing Contracts with Major Hospital Networks
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Top U.S. Hospital Penetration
Leveraging Customer Networks to Accelerate Expansion
Increased Usage Driving Repeat Purchases
Hospital for Special Surgery (HSS)#1 orthopedic hospital in US
(US News & World Report 2019-2020)
Advocate Good Samaritan Hospital333-bed community hospital in US (Illinois)
Bone & Joint Center - HMCBranch of Hamad General Hospital - QATAR
✓ 41% Average increase in EOS exams ordered annually since year 1
✓ 125 Total number of physicians ordering EOS exams
✓ 4X Number of EOS systems installed in HSS network
✓ 1,461 Total number of EOS exams performed year 1
✓ 76% Percentage of full body exams✓ 2X Number of EOS systems installed
in Advocate Healthcare network
✓ 161%+ Percent of EOS exam growth year 1 to year 2
✓ ≈70% Percentage of full body exams✓ ≈20% Percentage of lower limb
exams
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Global Top Hospital Penetration
EOS in 7 of the top 10 best hospitals in the world
1. Mayo Clinic
2. Cleveland Clinic*
3. Singapore General Hospital (Bukit Merah)
4. The Johns Hopkins Hospital (Baltimore)
5. Charité (Berlin)
6. Massachusetts General Hospital (Boston)
7. Toronto General Hospital
8. University of Tokyo Hospital
9. Lausanne (Switzerland) University Hospital
10. Sheba Medical Center (Tel Aviv, Israel)
TOP # 10
WORLD BEST HOSPITAL
*https://www.newsweek.com/2019/04/05/10-best-hospitals-world-1368512.html
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› Expanding alliance with a leader in the industry
› 10th EOS installation within the group at GRH Le Havre
› Total opportunity of 40 centers in the group
EOS System France Network Expansion
Partnership agreement with VIDI Group : 10th installation in the group
Reimbursement opening up in Germany
Enhanced reimbursement for spine and lower limb exams
✓ Reimbursement coverage for EOS exams approved in Germany in August 2019.
✓ The reimbursement for public patients has now been approved by the local authorities (KBV) for both Spine and Lower Limb exams.
✓ Important step towards EOS imaging’s ability to develop in the German medical imaging market.
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Continued Growing Medical Endorsement and Publications
Increasing Global Visibility
› Growing number of publications and podium presentations on EOS
› Meet The Experts: Surgeon presentations at EOS’ booth during major shows
› EOS Webinar Series: Symposiums with KOL presenters re-aired
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U.S. Spine KOL Team
Defining the future of spine treatment
Dr. ShaffreyChief of Spine DivisionDuke Health - Durham, NC• 2011-2018 Best Doctors in America® List• 300+ publications, greater than 750 national and
international presentations and served as editor for several textbooks on spinal surgery
• Chair of IMAST, member of ISSG
Dr. BessOrthopaedic Surgeon Denver International Spine Center (DISC) - Denver, Colorado• Member of the SRS, NASS, current Chair of ISSG
Dr. NewtonChief of the division of Orthopedics & Scoliosis,Rady Children’s Hospital - San Diego, CA• One if not the most respected pediatric spine
surgeons worldwide• Over 250 publications, 5500 citations• Numerous chairs, current president of the SRS, head
of HSG
Dr. BucklandAssistant Professor, Department of Orthopaedic Surgery,NYU Langone - New York, NY
Dr. HeyFounder & Surgeon Hey Clinic for Scoliosis and Spine Surgery - Raleigh, NC
Dr. LenkeSurgeon-in-Chief at The Spine HospitalNew York Presbyterian - New York, NY• One if not the most respected spine surgeon
worldwide• Over 450 publications and 1000 presentations• Defined the classification of scoliosis used worldwide
(Lenke Clasification) • Former chair of the SRS and key member of the ISSG
Dr. ParentAssociate Professor, Department of SurgeryCHU St. Justine - Montreal, Canada• Member of the SRS, NASS, current Chair of ISSG
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THA/TKA KOL’s
Defining the future of joint replacement
Dr. VigdorchikTHA-TKA surgeon at HSS, formerly at NYU• Strong research focus on hip-spine relationship• Over 87 publications
Dr. MaymanTHA-TKA surgeon at HSS• High interest in technology • Strong research focus on accurate placement of
acetabular cup and hip-spine relationship• Over 94 publications
Dr. SculcoTHA-TKA surgeon at HSS• Strong research focus on hip-spine relationship• Over 129 publications
Dr. LazennecSpine and hip surgeon at La Pitié Salpétrière hospital (France)• Known as a pioneer in the assessment of spine-hip relationship in THA• First publication on this topic years ago • Over 132 publications to date
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Q3 Highlights
Visible Presence at Major Scientific Society Meetings
› Successful Scoliosis Research Society (SRS) 54th Annual Meeting :
• EOS images and 3D models supported more than 35 podium presentations and scientific posters
• Highlights the importance of EOS in the management of scoliosis, assessment of sagittal alignment and surgical planning
› North American Spine Society (NASS) 34th Annual Meeting with :
• A prototype of a new Auto 3D modeling application, which uses artificial intelligence to automatically generate weight-bearing 3D spine models showcased at the congress
• Auto 3D very well received by attendees
CONNECTING IMAGING TO CARE
2019 9-Month Revenue
32
EOS imaging | 9-month Revenue 2019 Key Facts
Highlights
2019 YTD
Equipment Orders of
44 units
€5.8m recorded in Q3 2019, i.e. +5.9%
versus Q3 2018
€18.6mEquipment
orders
€26.6m commercial
performance as of
September 2019
led by EMEA (+24%) and NAM (+13%)
offset by a high H1 2018 comparable base
in APAC and LATAM
+4%Commercial Performance
+4% increase in
ASP over 2019 YTD,
excl. LATAM
primarily driven by North America
+4%ASP
growth
11 EOS Systems
delivered since
January 2019
9 Equipment delivered in Q3
marking the gradual and expected
restart of billing
€4.3m Equipment
sales
€8.0m of recurring revenues
+25% in recurring
revenues recorded
since January 2019
driven by maintenance
contracts revenue
*(equipment orders + recurring revenues)
Change in Commercial Cycle in 2019
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Better meet customer satisfaction and reduce working capital
In order to better meet customer expectations and improve its working capital, EOS imaging made a
change in its commercial cycle at the beginning of 2019 by organizing the delivery of EOS® systems at the
start of the installation phase, and no longer at the receipt of the equipment order. This evolution has
created a transition period during which (i) new received orders build an order book and (ii) sales are
recorded according to the pace of delivery of the EOS® systems. As installations usually take place 3 to 12
months after the order, a similar lag is expected on deliveries. While 2019 revenues are temporarily
impacted by the transition phase, this evolution leads to improvements in production and logistics
management, and contribute to the reduction of working capital.
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EOS imaging | Q3 & 9-months 2019 Equipment Orders –
Solid business performance with 44 EOS® system orders booked as of September 2019
EOS imaging 3rd Quarter Equipment Orders by RegionEUR million
EOS imaging 9-months Equipment Orders by RegionEUR million
› €18.6 million of equipment orders booked over 9-months 2019, i.e. -2.4% vs 2018 due to high comparison base in APAC over H1 2019 not yet offsetdespite the strong momentum in the region over Q3 2019 (+61.0%), and to one spot sales in LATAM in Q3 2018
› €5.8 million of equipment orders booked in Q3, +5.9% vs 2018 driven by EMEA (+91.9%). Q3 order rhythm in NAM impacted by the strong order booking in Q2 2019 (+52%).
4.9 5.3
8.2
0.7
19.1
6.3
3.6
8.7
-
18.6
EMEA APAC NAM LATAM GLOBAL
2018 9-months 2019 months
+29.3% -32.3% +6.5% -2.4%
0.8 1.1
2.9
0.7
5.5
1.6 1.82.4
-
5.8
EMEA APAC NAM LATAM GLOBAL
2018 Q3 2019 Q3
+91.9% +61.0% -14.3% +5.9%-100% -100%
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EOS imaging | Order Book as of September 30, 2019
Gradual build-up of Order Book since January 2019
› €14.4 million Order Book as of September 30, 2019 resulting from Equipment orders (€18.6m) less 9-months sales (€4.3m)
EOS imaging Order Book VariationEUR million
€6.3m#15 EOS©
€-0.1m €6.2m
€-0.7m#2 EOS©delivered
€12.1m
€-3.5m#9 EOS©delivered
€14.4m
Quarterly Equipment new Orders Quarterly Revenues recorded from Equipment delivered
€6.6m#15 EOS©
€5.8m#14 EOS©
Equipment Oder Book Value as of end of the quarter
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6.48.0
19.1
4.3
14.4
2018 9-months 2019 months
Recurring Revenues Equipement Sales Order Book Variance
2.5 2.8
5.53.5
2.3
2018 Q3 2019 Q3
Recurring Revenues Equipement Sales Order Book Variance
EOS imaging | Q3 & 9-months 2019 Commercial Performance
Progressive restart of sales invoicing of EOS© systems after change in commercial cycle effected in January 2019
EOS imaging 3rd Quarter Commercial PerformanceEUR million
€8.0m€8.6m
EOS imaging 9-months Commercial PerformanceEUR million
€25.5m€26.6m
Recurring Revenues Performance Equipment Orders
› €12.3 million of revenues generated over 9-months 2019
› €4.3 million of equipment sales, of which €3.5 millions recorded over Q3 2019
€12.3m9-monthsrevenues
€6.3mQ3 revenues
37
Revenues fueled by the recording of 11 EOS® systems and recurring revenues
Revenues by product linesNon-audited / Including forex impact / € million / As of September 30
9-months
2019
9-months
2018
Equipment 4.28 19.10
Maintenance contracts 7.16 5.76
Consumables and services 0.83 0.65
TOTAL REVENUES 12.27 25.51
Revenues by geographiesNon-audited / Including forex impact / € million / As of September 30
9-months
2019
9-months
2018
EMEA 6.60 8.19
APAC 1.29 5.75
NAM 4.39 10.86
LATAM - 0.71
TOTAL REVENUES 12.27 25.51
› €12.3 million of revenues generated over 9-months 2019, of which
› €4.3 million of equipment sales, included €3.5m recorded in Q3 2019, and €8.0m of recurring revenues (i.e. +24.7% vs. 2018)
EOS imaging Quarterly Revenues Evolution over 2019 YTDEUR million
2.5 2.7 2.8
0.1
0.7
3.5
2019 Q1 2019 Q2 2019 Q3
Recurring Revenues Equipement Sales
› Gradual restart of sales invoicing of EOS© systems
EOS imaging | 9-months 2019 Detailed Revenues Breakdown
€2.6m
€3.4m
€6.3m
38
14 EOS® system orders and 9 equipment sold over Q3 2019
Revenues by product linesNon-audited / Including forex impact / € million / As of September 30
Q3
2019
Q3
2018
Equipment 3.51 5.50
Maintenance contracts 2.50 2.30
Consumables and services 0.26 0.17
TOTAL REVENUES 6.27 7.97
› €6.3 million of revenues generated over Q3 2019, down by -21.3% compared to the third quarter of 2018
› €3.7 million recorded in EMEA, close to normalized level due to the shorter commercial cycle in the area
EOS imaging | Q3 2019 Detailed Revenues Breakdown
Revenues by geographiesNon-audited / Including forex impact / € million / As of September 30
Q3
2019
Q3
2018
EMEA 3.68 1.91
APAC 0.93 1.31
NAM 1.65 4.03
LATAM - 0.71
TOTAL REVENUES 6.27 7.97
EOS imaging Quarterly Revenues Evolution over 2019 YTDEUR million
2.5 2.7 2.8
0.1
0.7
3.5
2019 Q1 2019 Q2 2019 Q3
Recurring Revenues Equipement Sales
› Gradual restart of sales invoicing of EOS© systems
€2.6m
€3.4m
€6.3m
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EOS imaging | 9-months Revenues 2019 Key Facts
Conclusion & Perspectives
› Reinforcing business dynamic along 2019 with €18.6m Equipment Orders booked over 2019 YTD
• +5.9% growth over Q3 2019 compare to 2018
› Equipment Commercial cycle progressing as planned
• 9 EOS® systems delivered over Q3 2019; 11 over 2019 YTD
› Confident in delivering strong YOY commercial performance growth in Q4 and FY 2019
Release of FY 2019 Revenues on January 8, 2020
CONNECTING IMAGING TO CARE
Contact:
Phone: +33 (0)1 55 25 60 60
Email: [email protected]
www.eos-imaging.com