2021 BUSINESS PLAN – MDS Cardio Poland

Dear Hillrom,

enclosed please find 2021 business plan that we use to identify & agree key sales, marketing,
investment actions aimed to develop our common business.

General company information – please provide general information on the company, in case any
changes took place:

 Ownership structure: PRIVATE OWNERSHIP – TWO SHAREHOLDERS (no changes to

FY20)
 Territory coverage: POLAND (no changes to FY20)
 Medical segment coverage
o Primary Care (public/private)
o Emergency (SOR mainly)
o Medical Transport – no, or fraction of it
o State Hospital
 Specialty – Medical diagnostic
 Specialty – Medical Imaging
 Specialty – Radiology
 Specialty – Cardiology
o Private Hospital
 Same as for State Hospitals
o Home care – no, or fraction of it

 Major suppliers/products/solutions:

o Medical Devices
 Hillrom, CarestreamHealth – full RTG portfolio, Lode, SphygmoCor,
PhysioFlow, Cortex, SOMNOmecdics
o Disposables
 CIVCO, Argon, Usono, Nicast
o IT, Software, EMR solutions
 Authorized cooperation with most of major vendors: Asseco, CGM, Alteris, Pixel,
Synektic, Kamsoft and others.

Key Hillrom focus products of 2021 –highlighted priority product groups that are of most focus for
MDS company in 2021:
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 YES/NO
THERMOMETRY
YES/NO
BLOOD PRESSURE
YES/NO
STETHOSCOPES
YES/NO
PHYSICAL ASSESSMENT
YES/NO
EYE CARE
YES/NO
EAR CARE
YES/NO
MEDICAL LIGHTING
YES/NO
VITAL SIGNS MEASUREMENT
YES/NO
CARDIOPULMONARY
YES/NO
WOMEN HEALTH
YES/NO
ENDOSCOPY & LARYNGOSCOPES

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Sales structure - Company sales structure to take the responsibility for sales of Hillrom (number of
people, duties) – if changes took place from 2021:

o Direct Representative team

1. Number of sales representatives
At MDS WelchAllyn business is driven by the team responsible for entire Hillrom business. It consists
of:
 1 Team Leader
 4 senior Regional Sales Managers
 1 senior Regional Sales Manager to be hired - focused on West Poland territory (in process)
 1 senior Sales Director to be hired (in process)
 2 senior public tender managers
 1 senior manager - disposables and other hospital solutions, incl. internet shop
 4 senior service engineers, with 1 person fully dedicated to Hillrom, acting as product expert for
demo purposes, POC and installations

Dedicated resources - Hillrom business management

1 Paweł Goławski Team Leader / Regional Sales Manager Hillrom [email protected] MDS Cardio Gdańsk

2 Tomasz Zaremba Regional Sales Manager Hillrom [email protected] MDS Cardio Warsaw
3 Patryk Zalewski Regional Sales Manager Hillrom [email protected] MDS Cardio Warsaw
4 Maciej Maleszyk Regional Sales Manager Hillrom [email protected] MDS Cardio Warsaw
5 Kamil Baran Regional Sales Manager Hillrom [email protected] MDS Cardio Krakow
6 To Be Hired Regionla Sales Mnagager MDS Cardio West PL
7 To Be Hired Senior Sales Director Hillrom MDS Cardio Warsaw

Shared resources - driving given sales plan for Hillrom Hospital Solutions
8 Tomasz Matyjasiak Sales Manager - Hospital Solutions & Disposables [email protected] MDS Cardio Warsaw
9 Tomasz Kodłubaj Senior Public Tenders Specialist [email protected] MDS Cardio Warsaw
10 Grażyna Kwapisz Senior Public Tenders Specialist [email protected] MDS Cardio Warsaw

Dedicated sales support (POC and installations)

1 Jakub Wójcik Service Manager (Mortara and VSM) [email protected] MDS Cardio Warsaw

Shared Service Team

2 Przemysław Fąk service [email protected] MDS Cardio Warsaw
3 Mateusz Smarzewski service [email protected] MDS Cardio Warsaw
4 Marcin Janiszewski service [email protected] MDS Cardio Warsaw

2. Territory Coverage
Poland

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 3. Sales targets for Hillrom

Our understanding of Addressable Market Opportunity is as follows, based on joint analysis with
Hillrom team:

Total Addressable Market Opportunity

Total Revenue Sales

Plan Current
Last FY 20 Growth %
FY21
Vital Signs 8 500 000 8 585 000 1%
(US$)

Therm/ Blood Pressure 8 000 000 8 080 000 1%

Out

Physical Assessment 4 500 000 4 545 000 1%

Lighting, WH, RESP, Service 8 000 000 8 080 000 1%
MORTARA 14 000 000 14 140 000 1%
0 0
TOTAL 43 000 000 43 430 000 1%

From that point here you go proposed consolidated commitments – based on combined MDS Cardio
performance itself and summary of all the other Hillrom partners/distributors in Poland – subject for sole
distribution by MDS Cardio:

Last FY20 Plan Current

Growth %
(MDS) FY21 (MDS)
Hillrom Sales In
Revenue Split

Vital Signs 450 584 660 000 46%

Therm/ Blood Pressure 32 985 270 000 719%
(US$)

Physical Assessment 31 442 150 000 377%

Lighting, WH, RESP, Service 29 215 50 000 71%
MORTARA 210 690 460 000 118%

Total 754 916 1 590 000 111%

It means overall growth expectation for Hillrom business at 111% YoY FY20 to FY21, from app.
$0,75m - in FY20, to $1,5m - in Fy21.
Major contribution comes from new business of VSM – expected to become well marketed and grow
YOY by over app 50%. We want to make it happen by new and more efficient accounts segmentation,
management and development strategy being implemented at MDS already (described later in this
document), as well as new resources to be allocated (already done) and hired in course of FY2021 – as
soon as it’s only possible (please refer to hiring plan reported earlier).

Second biggest contributor is Mortara business, which is already pretty stabilized and we do expect to
get growing partially in line with market dynamics, but also due to new and more efficient accounts
segmentation and management, being already implemented at MDS, as well as new resources to be
hired in course of FY2021 – as soon as it’s only possible (please refer to hiring plan reported earlier).

Third element consists in new product lines to MDS i.e. Therm/BP and PA. This is to be achieved by
dedicating own MDS resources (please refer to resources setup reported earlier), MDS internet shop
(covered later) and partnering with MDS external partners (covered later), including former Hillrom
distributors becoming MDS Cardio subcontractors in FY2021.

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It all comes with four distinct tasks to be driven over FY21 and on and new MDS Management strategy
framework, both described below:

Accounts segmentation itself including detailed focused accounts set for Hillrom, with respective
resources allocation are both completed and listed below:

Tutaj opis zespołu MDS – Hillrom, przypisani do regionów i mapping klientów

The territory of Poland is divided into 5 regions assigned to Regional Sales Managers:
 Northern Region - 105 medical facilities with hospital treatment contracts - Paweł Goławski
 North-Eastern Region - 149 medical facilities under contract for hospital treatment - Tomasz
Zaremba
 Central-Eastern Region - 170 medical facilities with hospital treatment contracts - Maciej
Maleszyk
 Southern Region - 180 medical facilities with hospital treatment contracts - Kamil Baran
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  Central Southern Region - 160 medical facilities with hospital treatment contracts - Patryk
Zalewski
 Western Region - 147 medical facilities with hospital treatment contracts - Vacat
Differences in the number of facilities in individual regions result from the potential for purchasing and
investment opportunities.
Until the vacancy is filled - Western Region is served by Paweł Goławski and Patryk Zalewski.

The illustrative Polish territorial division - MDS

As a consequence, dedicated MDS representatives are about to look after geographically segmented
accounts, out of TOP500 and keep focus on particularly app. 120 focused accounts selected for
acquisition, management and development. Selection is based mainly on independent analysis driven by
i.e. CMJ authorities and based on relevant criteria i.e. quality of medical care, IT infrastructure
readiness, financial standing, market competitive management. This is subject for later adjustments in
line with experienced real performance results and new resources being hired in course of FY2021.

That’s all about getting entire sales force to be proactively engaged in market penetration, and doing this
in organized and well setup way, set for activity and performance tracking and management. That
consists of, but it’s not limited to categories as per outcome of business case calculation:

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 Quarterly Business Plan Tactics
Run Rate Solutions Marketing Programs 14 166
Average Project Value ($) 30 000
Anticipated Yield Rate 40%
# of projects (total) 50
Pipeline Target (QSO's) 124
Pipeline Target ($) 3 726 539
QSO Acquisition Cost 7 453
# of NEW accounts 24
# of EXISTING accounts 32

From that point, here you go MDS Sales Out commitment estimation:

MDS Business (Sell-Out)* MDS Share of Wallet

Total Revenue Sales

Last FY20 Plan Current Plan Current

Growth % Last FY
(done) FY21 FY
Vital Signs 570 367 857 143 50% 7% 9,98%
(US$)

Therm/ Blood Pressure 9 512 321 429 3279% 0% 3,98%

Out

Physical Assessment 9 024 178 571 1879% 0% 3,93%

Lighting, WH, RESP, Service 8 293 57 471 593% 0% 0,71%
MORTARA 341 463 589 744 73% 2% 4,17%
0
TOTAL 938 660 2 004 358 114% 2% 4,62%

Category Share
Vital Signs 43%
Therm/ Blood Pressure 16%
Physical Assessment 9%
Lighting, WH, RESP, Service 3%
MORTARA 29%
0 0%
Check 100%

With expected seasonality in Hillrom FY structure:

Seasonality FY Q1 24%
Seasonality FY Q2 16%
Seasonality FY Q3 29%
Seasonality FY Q4 31%
Seasonality total year 100%

Here you go quarterly Sales Out targets with prepared quarterly and YTD monitoring template:

Plan Revenue Actual

% of plan Actual YTD % of Plan YTD
by Qtr. (Total)
Q1 480 000
Q2 330 000
Q3 580 000
Q4 620 000

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We do consider major opportunities to be lie in:

Growing market for VSM solutions. Expected strenghteening of fierce competition - Mindray, Philips, but still high
dynamics in terms of overall revenue growth, as well as higher margin experience - justifying investment in dedicated
HQ and new dedicated team setup for FY2021, towards better market penetration.
Key opportunities current FY

Gaining back position with Mortara, based on stable market position, by proper business and market segmentation.
Expectatoin to run deals in size of $100k+ each, while giving smaller ones to be managed by Public Tender Team.

New hospital protfolio added. To be driven by existing MDS team: "Disposables" and "Public Tenders Team" and "e-
shopper by MDS" internet shop being considered, and respective Reginal Sales Managers actively promoting.

Positive climate for partnering with selected business partners i.e. former Hillrom distributors, effectively utilizing
multiple sales resources spreaded around entire country.

Key challenges, out of these we can influence and deal with, are as follows.
Key challenges to capture the opportunities

Problem with business case profitability while allocating additional fully dedicated resources (HQ) to Hillrom business.
So far it seems we can setup the team of 7 fully dedicated Sales Managers - 5 of them already on board and 2 to be
hired (in process now).

Gaining necessary knowledge in respect to Hillrom hospital solutions - realtivey new to MDS. Series of trainings and
certifications for MDS by Hillrom (in process now)

New hospital portfolio requires additional investments in i.e. e_shopping solution. The decision to go for it is already
taken, but there is time needed to set it right and get promoted.

Marketing budget to support all activities requred to effectively promote VSM and hospital solutions. Tight
cooperation with Hillrom is a must i.e coop marketing fund and Back&Rebate incentive.

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To bluntly and firmly comment profitability and investments situation, here you go Hillrom business
case analysis below, with respective product group lines percentage contribution to it.

Please bear in mind this is only healthy, i.e. set for profitable performance, in case MDS delivers all
quarterly commitments and is awarded by Back&Rebate credit. That’s very brave assumption, but in
MDS opinion necessary to go for.

Business Case Assessment (US$) Value

MDS Transaction Value 1 590 000
MDS Sell-out Target 2 015 204
Vital Signs 861 781
Therm/ Blood Pressure 323 168
Physical Assessment 179 538
Lighting, WH, RESP, Service 57 782
MORTARA 592 935
0 0
Revenue Type
Run Rate 472 185
Project 1 490 615
Fulfillment 52 403
GP1 Contribution
Run Rate 75 550
Project 342 842
Fulfillment 6 812
Inventory 198 750
Depreciation 2 981
Finance Charges 10 076
Demonstration Equipment 20 152
Misc. Cost Item 20 152
GP1 Ratio (blended) (%) 21,10%
Total GP1 Contribution 425 204
CoS - Compensation 300 000
CoS - Training/Certification 25 000
Back&Rebate (GP2) 31 800
Total 78 642
Expense-to-Revenue Ratio (E/R) 1,07%
GP2 Ratio (%) 3,90%

Total Marketing Investment Needed 21 619

Coop/MDF/BDF Accruals 15 900
Marketing Investment Gap - 5 719

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Few comments to it in terms of FY21 planned business case vs. FY20 actuals and reality:
o MDS Sell-out Target is a minimum that business can become profitable for the company
with current and planned headcount and cost setup
o Critical for healthiness of business case – expected business profitability – is successful
quarterly performance by MDS, so the company is granted by respective Back&Rebates,
set in business case at 2% against Sales In performance. This has to be confirmed by
Hillrom upfront, so the business case is solid stated and valid.
o Revenue Type can be seen as some theoretical exercise, but actually we do look for these
three categories:
o Run-Rate – related to two product categories: Therm/ Blood Pressure and
Physical Assessment - to be driven by dedicated manager by MDS subdistis /
partners i.e. former distributors of Hillrom and supported/directed to MDS
e_shop.
o Project – related to two product categories: Vital Signs & Cardio and
MORTARA - to be driven by dedicated sales team and mostly expected to be
multi-unit opportunities after selected named accounts, in size of ~$100k+ each.
o Fulfilment – related to two product categories: Lighting, Women Health,
Service and Respiratory (VEST) - deals developed together with
subdistis/partners i.e. former distributors of Hillrom and supported/directed to
MDS e_shop

o Inventory – including demo equipment to be kept at max. $200k (including new hospital
solutions portfolio), in line with revenue panned and expected for FY21. After recent
inventory check and clearing, it’s all possible and fine.
o Demonstration Equipment – we want to distinguish that cost our from Inventory and keep
an eye on proper usage and utilization. So far, budget is set at minor level, to make
business case running well. Free of charge demo units support by Hillrom are very
welcome. Every Regional Sales Manager is supposed to be fully equipped with proper
demo set. Detail plan provided earlier. It’s all together budgeted in business case for up to
$20k.
o Total Marketing Investments need – that’s pretty modest expectation and we do count on
Hillrom to invest in marketing activities in form of coop marketing sponsoring at budget
level of min. ~$30-35k+ as per business case calculation.

Overall, there is very modest gross profit expected in FY21, respectively 3,9%. It means we’re in the
heavy investment phase, Mortara part of business also has to be manage carefully looking from P&L
perspective, due to experienced push by GE lately, VSM by Philips. Anyway, we see more to gain by
growing sales revenue and gaining market share, than squeezing particular costs, or limiting planned and
rational investments.

From business case perspective we’re ready to execute the business as planned, being aware of series of
critical business case factors to make FY21 fly right:

1. Consistent pipeline generation and management of min. $3.7m (Pipeline Target)

2. Number of projects in consistent pipeline – min. 124
3. Number of project to be won – min. 50
4. Increase size of average single opportunity to $30k each (Average Project Value) and keep
winning ratio at rational 35% and higher (directly managed opportunities)
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To summarize - MDS focus areas for FY21 would be than:

Mortara - EKG solutions - further growth

VSM further business development and growth stabilization
New healcare solutions transition - to secure smooth YoY typical performance, while getting into this new for MDS
Focus Areas for current fiscal year

business

Market segmented named accounts: in line with ranking of biggest, most profitable and well developed hospitals (IT
infrastructure and quality of dignostic services). Based on reports by CMJ, PulsMedycyny, Wprost and others. Selected
120+ hospitals, out of public sector and 20 out of private. Full coverage by dedicated HQ.

Marketing investments, likely with Hillrom participation budgeted and commited at 1.5-2% of expected revenue level,
estimated in Buiness Case outcome at $30-35k level minimum.

Back & Rebate incentive for reaching agreed SalesIn goals at 2% level, i.e. $32k as per Business Case outcome

4. Training needs

 Mandatory sales accreditations trainings by Hillrom:

 Requested:
o Hospital solutions portfolio introduction
o Connectivity solutions training and installation/service authorization for VSM
o Deep service authorization for Mortara (back to self-repairment authorization, instead of
shipping to central service of the vendor

5. Incentive plan/proposal for sales representatives

Incentives for meeting and overachieving quarterly and yearly revenue targets, i.e.:
 quarterly incentive: vouchers or cash; respective % of delivered result.
 yearly incentive: Sort of “TOP Performers Club” event by Hillrom

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 o Subdistribution channel
1. Number of subdealers

 On our radar and target to be recruited based on common needs and interest:
o Former Hillrom partners – need Hillrom to get together
o Vo2max: https://www.vo2max.pl/
o http://dsskoperwas.pl
o http://www.alisios.eu/
o http://www.lmline.pl/

2. Territory Coverage
Poland
3. Product focus
Entire Hillrom portfolio (covered and listed earlier)

o Web based sales engines

1. Webshop details
Plan to setup a “e-shopper by MDS”. Likely to be based on https://www.shoper.pl/ platform, if we can
meet all necessary functionality there.

The concept consist in giving dedicated portals to future customers, with agreed portfolio access and
with individually agreed prices.
Goal is to be able to direct also public accounts to “e-shopper by MDS” service, after public tender is
won, so they can order contractual quantities at fixed prices and agreed conditions.
Same concept for non-public accounts, we wish to have contractually agreed products, prices,
conditions, than automatic process for easy execution of orders and purchases

2. Product focus
Hospital solutions by Hillrom mainly.

3. Other web based actions

Promotions to existing accounts: platform itself and new products and solutions.

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Marketing strategy – please provide sales and marketing strategy milestones for 2021

 Marketing team responsible for Hillrom

o Product Manager
o Marketing specialist

Both roles has to be served by Team Leader Sales Manager – Paweł Goławski and supervised by Board
Assistant – Małgorzata Bazańska.

o Showrooom

No plan. We rather believe in direct presence and POC at targeted account site and plan to drive it with
MDS and Hillrom demo units.

 Key sales actions by product category

o Marketing material printouts, brochures, mailings
 We rather count on Hillrom to produce necessary brochures and hand them out to
MDS. This can be templates ready to be printed with MDS logo added.
 Call-centre engagement - Scripts for call centre agents to run market penetration
calls and generate hot leads to be followed by sales reps.
 Joint solutions with sub-distributors
 Blueprints and cheat sheets for sub-distributors sales reps.
 “e-shopper by MDS” internet portal promotion
o Seasonal promotions,
 No particular plans, rather than via e-shopper. Otherwise just to follow Hillrom
programs.
o Exhibitions, symposia, Key opinion Leaders initiatives, demos & trials, references
 POC dedicated for targeted accounts; Live/reference cases presentations.
 Participation at major industry events:
 HIS vendors (CGM, Asseco) – promoting connectivity services
 Forums for IT in Health
o Advertisements, e-marketing & web based actions
 Connectivity Web Demo by Hillrom
 YouTube platform with guided demo etc.
 Limited to “e-shopper by MDS” promotion
 Out of “e-shopper by MDS”, for registered accounts

 2021 Demo requirements:

Covered earlier but in essence to be agreed for VSM, Mortar and hospital solution mainly. In
process now.

Investment Plan:

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  Potential new personnel hires

As covered earlier and marked respectively:

o In Blue: existing dedicated team
o In Green: existing team reallocations / assignments
o In Yellow: new hires

Dedicated resources - Hillrom business management

1 Paweł Goławski Team Leader / Regional Sales Manager Hillrom [email protected] MDS Cardio Gdańsk

2 Tomasz Zaremba Regional Sales Manager Hillrom [email protected] MDS Cardio Warsaw
3 Patryk Zalewski Regional Sales Manager Hillrom [email protected] MDS Cardio Warsaw
4 Maciej Maleszyk Regional Sales Manager Hillrom [email protected] MDS Cardio Warsaw
5 Kamil Baran Regional Sales Manager Hillrom [email protected] MDS Cardio Krakow
6 To Be Hired Regionla Sales Mnagager MDS Cardio West PL
7 To Be Hired Senior Sales Director Hillrom MDS Cardio Warsaw

Shared resources - driving given sales plan for Hillrom Hospital Solutions
8 Tomasz Matyjasiak Sales Manager - Hospital Solutions & Disposables [email protected] MDS Cardio Warsaw
9 Tomasz Kodłubaj Senior Public Tenders Specialist [email protected] MDS Cardio Warsaw
10 Grażyna Kwapisz Senior Public Tenders Specialist [email protected] MDS Cardio Warsaw

Dedicated sales support (POC and installations)

1 Jakub Wójcik Service Manager (Mortara and VSM) [email protected] MDS Cardio Warsaw

Shared Service Team

2 Przemysław Fąk service [email protected] MDS Cardio Warsaw
3 Mateusz Smarzewski service [email protected] MDS Cardio Warsaw
4 Marcin Janiszewski service [email protected] MDS Cardio Warsaw

Also trained for respective products installations

Tomasz Zaremba Sales Manager EKG [email protected] MDS Cardio Warsaw
Patryk Zalewski Sales Manager EKG [email protected] MDS Cardio Warsaw
Maciej Maleszyk Sales Manager VSM [email protected] MDS Cardio Warsaw

 2021 Demo investment plan (additional demo units planned to be ordered in 2021):

We have to stick to the budget presented in Business Case, although there is agreed plan to refresh full
set of demo sets for every Regionla Sales Managers. In progress now.

Tu szczegóły zestawów demo dla handlowców itp.

Each Regional Sales Manager has a set of demo equipment at their disposal, which includes:
- CSM
- CVSM
- ECG - ELI 280
- ECG - ELI 230
- H3+
- PRO 6000 Ear Thermometer
- Cuffs REUSE-08/09/11/12
- ECOCUFF

In addition, we have available:

- Connex ProBP 3400 - 3pc.
- 767 Sphygmomanometr - 3pcs.
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 - H12+
- ELI 380
- GS300

In progress - Demo case - Kit (RR measuring instruments, otoscopes, ophthalmoscopes) - 3pcs.

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  Training requirements (please list your training needs):

Covered earlier and here repeated and extended for needs related to planned newly allocated resources
skills development:
o Products specifications: VSM, Mortara and Hospital Solutions for Public Tender Team
members and new commers.
o Mandatory sales accreditations trainings by Hillrom: VSM mainly
o Requested:
 Connectivity solutions training and installation/service authorization for VSM
 Deep service authorization for Mortara (back to self-repairment authorization,
instead of shipping to central service of the vendor

Tu pełny opis szkolenia jakie planujemy

Below is the thematic scope of the training, which is planned for 25-26.01.2021:

1. Presentations by product groups, taking into account the technologies used to offer WA
 Medical lighting (areas of application - outside the operating theater, division of
lighting by area of application and functions, basic terms related to medical lighting,
main types of WA lamps - benefits and their special features)
 Non-invasive blood pressure measurement (what is pressure measurement, pressure
measurement methods, pressure measurement technologies from Welch Allyn, WA
distinguishing features for aneroid technology, WA distinguishing features for electronic
measurement technology, benefits of WA pressure cuff solutions).
 Temperature measurement (what is temperature measurement, temperature
measurement methods, hypothermia / guidelines, temperature measurement
technologies offered by Welch Allyn, WA distinguishing features for tympanic
technology, WA distinguishing features for predictive measurement technology).
 SpO2 measurement (what is the measurement of saturation and what is the saturation
measurement technique, Welch Allyn saturation measurement technologies,
distinguishing features of the Nellcor technology, features distinguishing the Masimo
technology, features distinguishing the Nonin technology, other parameters tested using
the saturation module, correct frequency ranges pulse)
 EWS - early warning score (explanation of the concept, application, benefits, values and
component parameters)

2. Connectivity, integration with HIS hospital systems (Basic connectivity terms - HIS, EMR,
ADT, ORU, HL7, DICOM, LAN, WAN; Possible connective WA solutions - CS, NCE,
dicom, pdq mortara servers - main features and benefits; Benefits of using connective
solutions for the user; Main parties involved in the implementation of connection projects;
Project Qualification; Proof of concept; Implementation of connective projects - stages and
time; References - completed projects)

3. Qualitative parameters distinguishing CSM and CVSM and CIWS in the Terms of
Reference - analysis on the example of Gdańsk and Katowice.

4. ECG - basic aspects of examination, recording, connectivity possibilities – Mortara.

5. Quality parameters distinguishing blood pressure monitors, cuffs and WA lamps in the
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 Terms of Reference.

6. Training in conducting presentations for the Chief and Ward Nurses – WA.

7. Practical presentation exercises for the Head Nurse and departmental nurses - participants of
the training.

Service/Technical support - information on company's service infrastructure and potential to offer

local service for selected above Welch Allyn products.

Not much has changed from FY19. MDS service team consists of 4 persons, fully certified. As motioned
earlier, we are ready, capable and enable to drive local service including reparations. If it’s only in line
with Hillrom strategy, we’re keen to get into formal process of accreditation and execution.

Dedicated sales support (POC and installations)

1 Jakub Wójcik Service Manager (Mortara and VSM) [email protected] MDS Cardio Warsaw

Shared Service Team

2 Przemysław Fąk service [email protected] MDS Cardio Warsaw
3 Mateusz Smarzewski service [email protected] MDS Cardio Warsaw
4 Marcin Janiszewski service [email protected] MDS Cardio Warsaw

 Service Training requirements (please list your training needs):

Mentioned earlier and repeated here:

o Connectivity solutions training and installation/service authorization for VSM
o Deep service authorization for Mortara (back to self-repairment authorization, instead of
shipping to central service of the vendor

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Subdistribution Strategy (if applicable i.e. subdealers net active) - network of sub distributors that
will sell and market Hillrom products with region/product coverage. Please suggest the strategy of
discounting and logistics (stock, deliveries) that you plan to apply for the potential partners in sub
distribution.

 Number/location of subdistributors:

Covered earlier and repeater here:

 On our radar and target to be recruited based on common needs and interest:
o Former Hillrom distributors
o Vo2max: https://www.vo2max.pl/
o http://dsskoperwas.pl
o http://www.alisios.eu/
o http://www.lmline.pl/

 Territory coverage of subdistributors:

Poland – different regions, as per company presence and competencies.
 Product mix for the subdistributors:
Mostly VSM an Hospital Solutions
 Pricing/discount structure for sub distribution:
Sharing MDS margin. We assume by Business case we can gain ~20% margin overall on all Hillrom
products together, so are ready to scarify 10% for sub-distribution. This is to gain marketshare by
addressing more market opportunities.
 Demo/exhibition set for the subdealers:
Out of MDS demo stock and Hillrom demo (covered earlier).
 Stock requirements to secure subdistribution:
As above. We do not plan to keep high stock for sub-distributors, rather like for Hospital Solutions
mainly, not VSM.
 Marketing tools to be implemented to support subdistribution:
Same as specified for MDS and provided by MDS mainly, as joint activities. Covered earlier in
marketing section.
 Training requirements:
Same as for sales accreditation for MDS and covered earlier in marketing and training section.
 Sales support/incentive plan for subdealers:
No specific plan or covered earlier in marketing section.

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