AVITA Medical Provides Preliminary Top Line Results for the Third Quarter and COVID-19 Update - Seite 4

Authorized for release by the Chief Executive Officer of Avita Medical Limited.

Non-IFRS Financial Measures and Other Items

The foregoing information and estimates are preliminary in nature and are subject to revision as we prepare our 4C Cash Flow Report and other disclosures as of and for the three months ended 31 March 2020, including all disclosures required by ASX Listing Rules. Because we have not completed our normal quarterly closing and review procedures for the three months ended 31 March 2020, and subsequent events may occur that require material adjustments to these results, the final results and other disclosures for this period may differ materially from these estimates. These estimates should not be viewed as a substitute for the full disclosure of our 4C Cash Flow Report. These estimated results of operations should be read together with subsequent filings and announcements, including any subsequent press release announcing the Company’s earnings for the quarter ended 31 March 2020.

Non-IFRS Financial Measures and Other Items

We use the following measures of financial performance which are not presented in accordance with IFRS:

• "U.S. RECELL Sales," which is the amount of revenue, denominated in United States dollars, we generate from our commercial efforts in relation to the sale of RECELL Systems within the United States. Management believes that this measurement is useful for comparing period to period sales performance, and product acceptance, of the Company’s lead product, the RECELL System, within the United States burn market.

U.S. RECELL Sales is a non-GAAP financial measure used by management in evaluating sales performance, and product acceptance, within the United States and for the purposes of making strategic decisions. Management believes that the presentation of U.S. RECELL Sales provides useful information to investors regarding our revenue results because they assist both investors and management in analyzing and benchmarking the performance and value of our business. U.S. RECELL Sales provides indicators of product performance that are not affected by currency fluctuations. Accordingly, management believes that this measurement is useful for comparing general sales performance from period to period in the Company’s largest market.