Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Investor Presentation (December 2020)
43 slides from Niagen Bioscience's investor presentation, Dec 9, 2020
Slide 1: Investor Presentation
Investor Presentation Rob Fried Chief Executive Officer Kevin Farr Chief Financial Officer eal TRU NIAGEN Nasdaq: CDXC | December 2020
Slide 2: FDA Disclaimer
FDA Disclaimer (> ChromaDex. TRU NIAGEN
Slide 3: ChromaDex Investment Highlights
ChromaDex Investment Highlights DIETARY SUPPLEMENT DISTRIBUTION AND Total TTM net sales of $57 million with INTRODUCING NEW PRODUCTS $45 million of Tru Niagen® net sales + E-commerce represents ~60% of the [Ey Proven & PROPRIETARY EXPANDING GLOBAL Tru Niagen® is the most efficient way business today
Slide 4: The Science
The Science
Slide 5: NAD+ declines by ~50% with age
NAD+ declines by ~50% between the age of 40 and 60 r ¥ a NAD ON ro (> ChromaDex.
Slide 6: What is NAD+ and Why is it Essential?
What is NAD+ and Why is it Essential? Nicotinamide Adenine Dinucleotide (NAD+)... + Is the mission critical co-enzyme in cellular metabolism that is constantly being consumed and created by cells * Plays a vital role in: + Cellular defense and repair + Energy production and the optimal function of o
Slide 7: Basic Physiological Functions are NAD+ Dependent
Basic Physiological Functions are NAD+ Dependent INTRINSIC CAPACITY DOMAIN Based on World Health Organization's definition COGNITION LOCOMOTION Memory Muscle strength Problem-solving Gait Intelligence Balance | "Emotional vitality e
Slide 8: NAD+ Declines with Age, Physiological Stress & Disease
NAD+ Declines with Age, Physiological Stress & Disease AGING Muscle 30-85% OVERNUTRITION Liver 40-20% @ @ Muscle 68-100% Adipose 55-75% Liver 25-100% Brain 35-90% @ Adipose 15-20% Pancreas 80-85% Blood Plasma 46% Spleen 35-40% . ° Heart 30-70% Kidney 15-98% Lung 20-25% AXONAL DEGENERATION Cerebrospi
Slide 9: NAD+ replenishment strategies quote
‘With careful scientific evaluation, NAD+ replenishment strategies might serve as a promising multifunctional approach to improve the quality of life for an increasingly aged population.” NAD+ in Aging: Molecular Mechanisms and Translational Implications Fang EF et al. Trends Mol Med. 2017;23(10):89
Slide 10: How is Nicotinamide Riboside (NR) Different than Other NAD+ Precursors?
How is Nicotinamide Riboside (NR) Different than Other NAD+ Nicotinamide Riboside (NR)... Precursors? @NACPH + Novel form of Vitamin B3 @ NADH * Specific pathway to convert NR into CBpe- NAD+ (NRK pathway) + More efficient NAD+ precursor than Tryptophan and Nicotinic Acid + NRK genes are activated u
Slide 11: Our Solution
r Solution: (> ChromaDex. TRU NIAGEN
Slide 12: How It Works
How It Works Tru Niagen® Is Scientifically Proven to Increase NAD+* Tru Niagen® contains the sole active ingredient NIAGENE (nico © riboside), a unique form of vitamin B3. It's clinic proven and backed by Nobel-Prize winners and Ivy League scie from reducing the cellular effects of aging, Ind the wo
Slide 13: Committed to Safety and Quality
Committed to Safety and Quality Science Highlights © __ 1 Pulishea Human 100+ Preclinical L_\ Clinical studies Studies 3 Successful FDA Notifications ash 225+ Research a Collaborations 20+ Owned & Ucensed Patents
Slide 14: Regulatory Approvals and Health Claims for Niagen
Regulatory Approvals“) and Health Claims for Niagen® Ee ivi Country United States. European Union Canada Australia & NZ Food & Drug Therapeutic Goods Regulatory bodies Administration European Commission Health Canada ‘Administration Regulatory approvals NDIN & GRAS Novel Food Ingredient Natural Heal
Slide 15: 225+ Pre-Clinical & Clinical Studies on NR
225+ Pre-Clinical & Clinical Studies on NR Represents ~$50MM of Third-Party Research National Institute on Aging Bmmx | aan oF lowa 3s St. JUDE MEDICAL EMORY Dartmouth OUCIwwe & vom MAYO § Nit SE" eee: @ ora CLINIC Ucpavis w We boen UNIVERSITY Jniversity UY y INSTI U E Wis Mcveannoseit™t WASHINGTON
Slide 16: Most prominent human clinical research areas for Niagen
Most prominent human clinical research areas for Niagen® are vitality, locomotion, cognition, and sensory VITALITY (incl. Cardiovascular, N COSMO SENSORY Metabolic) (Neurological) Human Studies 59% 20% 14% 8% Conditions Studied ‘Type Il Diabetes (Insulin Parkinson's Disease Mild Concussion Neuropath
Slide 17: NR Research Impact is Accelerating
NR Research Impact* is Accelerating 1200 1000 S $s "Vitality $ 800 ri = Locomotion 8 ‘= Cognition a = 600 = Sensory $ ™Psychological 8 = Pharmacokinetic/Safety = — 400 ™Basic Research 6 200 0 *NR Research Impact by domains of Intrinsic Capacity. 2013 2014 2015 2016 2017 2018 2019 2020 Chart data ind
Slide 18: Strong Intellectual Property Portfolio for Niagen
Strong Intellectual Property Portfolio for Niagen®) tent ID ( Summary US 8114626 Manufacture of NR via recombinant microorganisms ~ Charles Brenner of Dartmouth College Us 8197807 NR for increasing NAD biosynthesis — Charles Brenner of Dartmouth College US 8383086 Compositions comprising NR - Charle
Slide 19: Market Opportunity
Slide 20: Billions spent annually on looking and feeling younger
Billions spent annually on looking and feeling younger Global Addressable Market ~$410 billion (2019E)* *Rounded to nearest billion Personal Care, Beauty & Anti-Aging Market (9) + Skin care market + cosmetic surgery + Beauty from Within supplements Fitness / Sports Nutrition / Energy Market) (9) + G
Slide 21: Strategic Progress
Strategic Progress
Slide 22: Evolution of ChromaDex
Evolution of ChromaDex 2000 2012 2013 2017 2018 2020 a ett e. /, ©. e |. | t) <<) 2003 2012 2017 2019 PROVIDED ucENsED PARTNERED WITH A.S. WATSON RAISED $17 MILLION; ANALYTICAL TESTING DARTMOUTH GROUP, ASIA’S LEADING HEALTH LED BY EXISTING AND NEW AND CONTRACT SERVICES PATENTS ON NR 2017 ‘AND BEAUTY
Slide 23: Management Team
Management Team Rob Fried Frank Jaksch Kevin Farr Chief Executive Officer Executive Chairman (Chief Financial Officer E-Commerce & Co-ounded ChromaDex in Former CFO, Mattel ‘entertainment industry 2000 PriceWaterhouse executive Licensed CPA ‘Savoy Pictures, Columbia Pictures, Fried Films, Feeln, WHN
Slide 24: Global Multi-Channel Distribution Strategy
Global Multi-Channel Distribution Strategy CANADA\a) Ke CHINA Trane Amazon runiagen.ca Eee, Truniagen.cn Selected Retailers April 2020: Tmall : JD.com Kaola = April 2049 — SINGAPORE Watsons January 2018 HONG KONG Watsons September 2017 AUSTRALIA Matakana Health Ltd. March 2020 NEW ZEALAND Matakana H
Slide 25: E-Commerce Platform Drives Consumer Insights
E-Commerce Platform Drives Consumer Insights TRU NIAGEN Products Science News Blog About Login WO Core) ED Product Line Build your routine. Explore our pioneering science in cellular nutrition on your terms. Tru Niagen® 300mg Tru Niagen® 150mg Tru Niagen® Stickpacks TRU NIAGEN
Slide 26: Strong Global Partners
Strong Global Partners e Nestle “" HealthScience A.S. Watson Group >» World's largest international health & beauty retailer (~15,000 stores)(") > Europe ~9,000 stores > Asia ~6,000 stores >» Announced global supply and license agreement in December 2018 » Exclusive rights in medical nutrition > Ext
Slide 27: Nestlé Health Science Supply and License Agreement
Nestlé Health Science Supply and License Agreement Market Size — 2018 Est. Key Terms of the Agreement > Upfront payment: $4MM > Cash received in Q1 2019 > Amortized as revenue over term of the agreement (2036) > Few major players > Nestlé exclusivity: i~$2.0Bil(} > Nestlé Health Science > Exclusive
Slide 28: Financial Highlights
Financial Highlights
Slide 29: Focus on operational and financial discipline quote
“We continue to focus on operational and financial discipline, on our path to achieving cash flow break-even.” Kevin Farr, CFO
Slide 30: Steady Growth — Tru Niagen
Steady Growth — Tru Niagen® Tru Niagen® Sales by Quarter YoY growth (in $ millions) wom SIT 457% $11.4 $10.2 +134% $9.7 a $3.6 +86% +146% $8.7 $2.3 $2.6 +143% S75 Fan 497% $6.5 $5.2 $1.3 +2528% EY $3 $7.9 $8.2 $3.4 $2.6 $2.7 $3.0 | $6.5 ar4 $1.2 $52 = $4.4 $2.3 $1.9 $3.5 $1.8 $0.8 $0.: Q32017 Q42017
Slide 31: Q3 2020 Net Sales Mix
Q3 2020 Net Sales Mix Q3 2019 Q3 2020 e-Commerce 1% Watson's & Other 828 23% $12.1 MM $14.2MM Other Ingredients co Standards & Services ci] 6% () a \ ical Reference Witecn'se. Standards & Services (1) NIAGEN Ingredient Other B28 6% 6% 22% Other Ingredients 4% > Tru Niagen® net sales increased to 84%
Slide 32: Key P&L Metrics - Sequential
Key P&L Metrics - Sequential (in thousands) Q3 2020 Q2 2020 Notes Tru Niagen® business up 2% driven by global e-Commerce and Net Sales $ 14,180 $ 15,287 Watsons, partially offset by the $1.6MM purchase by Horizon Ventures in Q2 2020, which did not repeat.) Up 20bps driven by product cost savings ini
Slide 33: Key P&L Metrics - YoY
Key P&L Metrics - YoY (n thousands) | cs2020 | asaca [notes Tru Niagen® business up 22% with growth in global e-commerce, Net Sales $ 14,180 $12,053 Watsons, international launches (Australia, U.K.) and new platforms (Persona Nutrition). Gross Profit 8,454 6,749 Up 360bps driven by favorable mix fro
Slide 34: Adjusted EBITDA Summary
Adjusted EBITDA Summary ‘ChromaDex Corporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures (In thousands) Three months ended Mar, 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, 2018 2018 2018 2018 2019 2019 2019 20192020 20202020 Net
Slide 35: 2020 Financial Outlook
2020 Financial Outlook (in thousands) 2018 Actual 2019 Actual FUL Continued growth in top-line but lower than 2019 growth rate due to: Growth driven by U.S. e-Commerce business, Net Sales $31,557 $46,291 + Larger revenue base launches in new international markets (U.K. and + Coronavirus impact on re
Slide 36: Cash Flow Break-even Framework
Cash Flow Break-even Framework Quarterly P& a Framework() Comments + U.S. e-Commerce marketing efficiency $17 million _* Watson's international business Net Sales to-319 milion _* Acceleration in cross border launches + Successful launch with Nestlé + New business / market opportunities Gross Margin
Slide 37: Contact Info
TRU NIAGEN Contact Info Brianna Gerber Vice President of FP&A and Investor Relations T: +1.949.419.0288 ext. 127 BriannaG@chromadex.com www.chromadex.com Where to buy Tru Niagen® www.truniagen.com www.amazon.com
Slide 38: Appendix
Appendix.
Slide 39: Key Statistics
Key Statistics Trading Data (@ December 7, 2020) Financial Highlights (LTM ended Sep '20) Stock Price $5.06 _Net Sales (LTM) $56.9M 52 Week High/Low $6.00/82.50 EPS (LTM) ($0.38) iv. 15. ‘Avg. Daily Vol. (50 day) ye | eae aay OEY Total Assets $37.4M Shares Outstanding 62.0M Total Debt $0.0M Public F
Slide 40: 2018 — 2020 YTD Net Sales Summary
2018 — 2020 YTD Net Sales Summary (a mitions) ription Ecommerce 18 35 44 52 15.0 59 65 TA 79 275 82 Watsons. 08 03 07 12 29 13 19 23 19 73 18 International / Other 04 or) Ot 04 06 03 03 03 04 13 14 Total TRU NIAGEN 3.0 37 52 65 185 75 87 97 10.2 364 1.4 NIAGEN ingredient 413 19 4.0 4.0 52 44 44 07 2
Slide 41: FY 2019 vs FY 2018 Key P&L Metrics
FY 2019 vs FY 2018 Key P&L Metrics (n thousands) Total net sales up 47%. Tru Niagen® business up 96% Net Sales $46,291 $31,557 with diversified growth across U.S. e-commerce, Watson's, and international cross border platforms, Gross Profit 25,769 16,055 Up 480bps driven by favorable mix with growing
Slide 42: Adjusted EBITDA 2018 vs 2019
Adjusted EBITDA 2018 vs 2019 ChromaDex Corporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures (In thousands) Year ended Year over Year Dec. 31, 2018 Dec. 31, 2019 Change Net loss, as reported" $ (33,316) $ (32,147) $ 1,169 Adjustments: Interest (income) expense 79 847 768 607 762
Slide 43: Scientific Advisory Board
Scientific Advisory Board Charles Brenner, Ph.0. ‘Atrod E Mann Farnily Foundation Choir, Department of Diabetes & Cancer Metabolism City of Hope World's Foremost Authority fon NAD Metabolism Dr. Bruce German ‘Chairman of Food, Nutrition, & Health University of California, Davis Leader in Food, Nutri