Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Investor Presentation (September 2018)
29 slides from Niagen Bioscience's investor presentation, Sep 5, 2018
Slide 1: Investor Presentation September 2018
Investor Presentation September 2018 Nasdaq: CDXC a. oe *
Slide 2: Disclaimers
Disclaimers
Slide 3: NAD
Slide 4: AGEX resTOR
AGEX resTOR THERAPEUTICS SBioViva GD mitobridge JUVENESCENCE
Slide 5: Role of NAD
Role of NAD 14004 [Oxidative sires defenses | (Creation of caular ‘ices
Slide 6: Evolution of ChromaDex
=> Evolution of ChromaDex 2 2 a Boom. em a baal morenpermnsoni
Slide 7: Building a Global Brand
buicing a Global Brand
Slide 8: Management Team
Management Team Rob Fried ~ Chief Executive Ofcer Appointed CEO lune, 2018, Kevin Farr ~ CFO Former CFO, Mattel, nc, 2000-2017 Joined ChromaDex October, 2017 Frank Jaksch - Executive Chairman ‘Co-founded ChromaDexin 2000 ‘Mark Friedman - Generol Counsel, Corporate Secretary Usa Brathovich ~ Chief Ma
Slide 9: Research Collaborations
=> Research Collaborations NG Wir 150+ HARVARD Gp Pre-Clinical & Clinical Studies in Progress onNR [ED Natonarinsttte on Acing BREST IUDEMEOVEN a mf Puc vine Represents ws over $50 8 million of research paid gs for by third Wéshington partes UnneriinS
Slide 10: Intellectual Property
Intellectual Property US 8106184: Synthetic manufacture of NR ~ Anthony Sauve of Comell University 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: Com
Slide 11: TRU NIAGEN E-Commerce Revenue
—— TRU NIAGEN® E-COMMERCE REVENUE
Slide 12: Strategic Initiatives
<= Strategic Initiatives + Broaden consumer awareness of TRU NIAGEN and NAD + Increase domestic growth of TRU NIAGEN + Expand international markets following regulatory approvals + Prevail in ongoing litigation + Forge select partnerships for ingredient deals + Enter China market + Extend TRU NIAGEN
Slide 13: Financial Highlights
Slide 14: Managing Change
Managing Change Business Model Transformation mr TRU WAGEN © Magen ingeient Wh omer ngresiets 1 core +89% Yor Y Science Based ¥ Ingredients ¥ Testing ¥ Standards First Malt 2018 tet Revenue Y Science Based ¥ Consumer Focused ¥ Marketing Driven
Slide 15: Financial Discipline
=> Financial Discipline CFO Mandate “Bring financial discipline to a company that is experiencing significant organizational changes and rapid growth.”
Slide 16: Financial Discipline
Financial Discipline Holistic Approach Pat Balance Sheet ¥ Scale Revenues Y Manage Working, ¥ Manage Costs Capital Prudently r ¥ Inventory ¥ Improve Controls Marketing fam Return on ficiency More Focused i) control GeA ¥ Targeting cash flow break-even by end of 2019 or early 2020 on “run rate basis”
Slide 17: Financial Discipline
. Financial Discipline Deep Dive by Business Segment Evaluating ¥ Growth Prospects ¥ Gross Profit Margin ¥ Operating Expenses ¥ Profitability ¥ Return on Investment Goals ¥ Understand Economics Assess Growth Prospects Reallocate existing resources to TRU NIAGEN/NIAGEN,
Slide 18: Financial Discipline
Financial Discipline Ecommerce Focus TRU NIAGEN® E-COMMERCE REVENUE Investing to optimize revenue growth ¥ Real-time dashboards tracking key metrics Y Decision support models = Reduce customer acquisition costs = Increase lifetime value of customers =| eee (2212017 (2017) oAr@O1 n=O) G2zzO8)
Slide 19: Improve Efficiency of TRU NIAGEN
: Improve Efficiency of TRU NIAGEN Marketing Spend (@2 (2017) 32017) a4(2017) 1 2018) a2{2018) EEE E-Commerce Net Revenue MENEIEEEEEEE Morketing Expenditures
Slide 20: Operational Discipline
ie Operational Discipline Scale Processes to Support Rapid Growth Standardizing Streamlining Supply Chain Systems Processes Optimization dest Increment ¥ Automating Manual Product F
Slide 21: Recent Financial Performance
Recent Financial Performance Strong TRU NIAGEN Sales NIAGEN Related Sales ~ Q2 2017 vs. Q2 2018, +168% ramon $00 | "7 - | aa 22017, ths Ha
Slide 22: Recent Financial Performance
<= Recent Financial Performance Investing Ahead of Growth Q2 2017 vs. Q2 2018 Operating Loss o eT}
Slide 23: Recent Financial Performance
Recent Financial Performance Cash Flow 2018 First Half Net Cash Used in Operating Activities (ites) V Cash Burn to moderate in the etn $ osm $ won second half of the year “Sac tevedcngemntin ‘or coms nian zt osen Y Worki it isan es —_amt__un Working Capital to be positive source of cash for full yea
Slide 24: Outlook
Outlook + Significant growth in revenues *+ Gross profit % of net sales continues to expand + Investment spending ahead of revenue growth + Marketing + More focused R&D spending + Protecting/managing patent portfolio and trademarks + Expected cash flow break even run rate for the company by the end
Slide 25: Trading Data and Financial Highlights
Trading Data (@ Aug 23,2018) Financial Highlights (CTM ended Jun ‘18) ‘Stock Price $4.43 Net Sales (\TM) '$28,0M 52 Week High/Low s72ajsa.i2—_£PS(LTM) (5053) Key ‘Ave. Dally Vol. (60 day) 350.000 Cash & Equiv amie Statistics —sroresoustandine em fea se “otal Debt None eile est ee sen onrers oy ‘Tota
Slide 26: Contact Info
Contact Info Andrew Johnson Director of Investor Relations T; +1.310.388,6706 Ext. 661 An womadex.com www chromadex.com
Slide 27: commerce ok 13k
2016 commerce 00 01 03 ok 13k Watsons 23018 4k Intemational / Other 00 01 a1 04 00 Total TRU MAGEN 00 00 ot 26 27 55 30 37 NIAGEN ingresient ws 10 20 18 30 78 13 19 MAGEN Related Revenues ws 40 214s 572 ass Other ingredient so 11 09 07 07 34 11 09
Slide 28: Q2 2018 Net Sales Up 85% to $7.8 Million
Q2 2018 Net Sales Up 85% to $7.8 Million, Fueled by Growth of TRU NIAGEN® + TRU NIAGEN sales were 66% of total NIAGEN-related sales in Q2 2018 + NIAGEN-related sales in Q2 2018 grew 168% compared to Q2 2017 + NIAGEN-related sales in Q2 2018 were 73% of total sales, compared to 50% in Q2 2qn7: 218 ne
Slide 29: Case Study: Martek and Omega
- Case Study: Martek and Omega 3 Demand for fish ol rising 6 Martek aes From 2002 to 2008 oa sco at Hie) Sra eae ae akon omen ao ‘is AGRA a0 — -a ll iil . Source: Woshington Post ly, 2035 Source: Martek Bloslences for 10-for yer ending October 2006