Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Investor Presentation (March 2019)
32 slides from Niagen Bioscience's investor presentation, Mar 11, 2019
Slide 1: Investor Presentation
Investor Presentation Nasdaq: CDXC | March 2019
Slide 2: Disclaimers
Disclaimers This presentation and other written or oral statements made from time to time by representatives of ChromaDex contain “forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-
Slide 3: NAD
Slide 4: The Critical Role of NAD
© chromadex The Critical Role of NAD + Nicotinamide adenine dinucleotide (NAD) is a coenzyme found in every living cell. + NAD is mission-critical for cellular health. + NAD declines as we age. + When NAD levels are low, cells don’t function optimally. * Scientists now understand that low NAD or rel
Slide 5: Our Solution: TRU NIAGEN
© chromadex Our Solution : TRU NIAGEN® Safe NIAGEN is the only proprietary nicotinamide riboside approved as a New Dietary Ingredient and that has achieved GRAS status Effective NIAGEN increases NAD Patented 16 licensed global patents or patents pending NASDAQ: CDXC
Slide 6: Evolution of ChromaDex
Evolution of ChromaDex 2000 2012 2013 2017 2018 ‘COMPANY FORMED; ACQUIRED SCIENTIFIC ‘COMMERCIALIZATION RAISED $48 MILLION; GLOBAL EXPANSION REFERENCE STANDARDS AND REGULATORY OF NIAGEN® LED BY HORIZONS VENTURES ‘CONSULTING BUSINESS le o2—* O-, © 2003 2012 2017 PROVIDED LICENSED PARTNERED WITH A.S,
Slide 7: Building a Global Brand
Building a Global Brand HONG KONG Watsons — ‘September 2017 SINGAPORE — Watsons January 2018 NASDAQ: CDXC 7
Slide 8: Strong Global Partners
Strong Global Partners d TRU NIAGEN ‘A member of CK Hutchison Holdings A.S. Watson Group ke f watsons ] >» World’s largest international health & beauty retailer > Extended partnership through mid-September 2021 > Selling in Hong Kong, Macau, and Singapore Nestle HealthScience > Announced global sup
Slide 9: Management Team
Management Team Rob Fried — Chief Executive Officer Board member since 2015, President, CEO & Director of Ideation Acquisition Corp. 2007-2009, Founder & CEO of Spiritclips LLC 2007-2017 (acquired by Hallmark Cards Inc. in 2012), and Academy Award and Emmy Award winning motion picture producer Frank
Slide 10: Charles Brenner, Ph.D. / Scientific Advisory Board
Charles Brenner, Ph.D. Head of Biochemistry University of lowa World's Foremost Authority ‘on NAD Metabolism Leader in Food, Nutrition, & Wellness Innovation Scientific Advisory Board Dr. Rob Beudeker VP of Innovation osm Leads innovation program for Human ‘Nutrition and Health at DsM NASDAQ: CDXC 1
Slide 11: Areas of Study: 170+ Pre-Clinical & Clinical Studies
* Alzheimer’s Disease * Diabetes * Melanoma + Heart Failure * Diabetic Neuropathy + Steatosis Areas of * Chronic Kidney Disease * Parkinson’s Disease * Immune Response Study + Breast Cancer + Traumatic Brain Injury * Muscle Physiology * Chemotherapy-Induced * Cockayne Syndrome * Browning of Adipocyt
Slide 12: NR has Reached the Significant Milestone of Registered Human Investigations
NR has Reached the Significant Milestone of 33 Registered Human Investigations") Preclinical Clinical Health Research Outcomes 4 published clinical trials of NIAGEN@ led the way More than 100 33 trials are preclinical peer- currently registered reviewed studies on clinicaltrials.gov have been publis
Slide 13: Most Prominent Human Clinical Research Areas for NIAGEN
Neurological, Cardiovascular Health, and Obesity are the Most Prominent Human Clinical Research Areas fo NIAGEN® ; Human Studies 34% 28% 19% 19% Conditions Studied ~ Parkinson disease ~ Heart failure - Type 2 diabetes - Immunity/Inflammation (insulin sensitivity) - Mild cognitive impairment - Hypert
Slide 14: Intellectual Property
Intellectual Property US 8106184: Synthetic manufacture of NR — Anthony Sauve of Cornell 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: Co
Slide 15: Quarterly Net Sales
Quarterly Net Sales Total Company Sales vy Quarter aun TRU NIAGEN Sales by Quarter oY growt! = g! — YoY Growth F143% +85% $6.5 +69% +97% $13 5 $5.2 +95% +2528% li +55% +21550% 7 $2.7 ul $1.2 $44 2 $35 sia 032017 42017 Q12018 © Q22018 © Q32018 §~— a4 2018 Q32017 42017 12018 © Q22018 © Q32018 a4 2018
Slide 16: Strategic Initiatives for 2019
NIAGEN Deliver on Strategic Partnerships Focus on Watson's and Nestlé’s priority international markets for regulatory approval Strategic Initiatives for 2019 Build TRU NIAGEN® Brand Marketing campaigns targeting new demographics Increased focus on earned media & PR Defend our Intellectual roperty In
Slide 17: Financial Highlights
Slide 18: Full Year Net Sales Mix
Full Year Net Sales Mix Business Model Transformation FY 2017 FY 2018 @ truniacen Watson 2B @Drruniacen Matacrisener) B2B NAGEN morssteat ——— MIAGEN ingresiont ia $21.2MM $31.6MM cove Drv wiscen sore a e-commerce a Other Ingredients 16% > TRU NIAGEN net sales increased to 58% of net sales in 2018 co
Slide 19: Financial Discipline
Financial Discipline CFO Mandate “Bring financial discipline to a company that is experiencing significant organizational changes and rapid growth.” NASDAQ: CDXC 19
Slide 20: Financial Discipline: Comprehensive Approach
Financial Discipline Comprehensive Approach Pre Balance Sheet Cash Flow > Scale Revenues >» Manage Working >» Reduce Cash Burn >» Manage Costs Capital = Lower Net Losses Prudently = inventory = Control Working Improve Controls Capital Marketing > Return on - Investment Focused R+D Control G+A jeting
Slide 21: Full Year 2018 Financial Results
Full Year 2018 Financial Results Investing Ahead of Growth (in thousands) FY 2018 FY 2017 | Notes Net Sales $31,557 $ 21,201 Net sales +49%; TRU NIAGEN business up 238% Gross Profit $16,055 10,477 Gross margins +150bps; positive impact of TRU. ‘% of Net Sales 51% 49% NIAGEN consumer product sales an
Slide 22: Q4 2018 vs Q3 2018 Results
(in thousands) Q4 2018 Q3 2018 | Notes Net Sales $ 9,067 $8,120 TRU NIAGEN business up 24% Gross Profit % of Net Sales Negatively impacted by the wind down of Purple ‘Corn and PURENERGY ingredients (140bps) Marketing efficiency improved by 820bps driven by our e-Commerce business Selling and Marketi
Slide 23: 2018 Quarterly Cash Flow
2018 Quarterly Cash Flow (in thousands) 3/31/18 6/30/18 | 9/30/18 | 12/31/18 Net Loss $ (8,443) $ (8,050) $ (8,606) $ (8,218) Net Increase / (Decrease) in Cash $ (4,351) $ (7,648) $ (5,175) $ (5,598) Sequential improvement in cash from operations in the fourth quarter of 2018 NASDAQ: CDXC 23
Slide 24: Operational Discipline
Operational Discipline e-Commerce Marketing Platforms » Real time dashboards tracking key metrics: = Customer acquisition costs = Conversion rates = Daily sales » Analysis by platform and customer type: = Amazon vs. truniagen.com = New vs returning customers Revenues from returning customers Effecti
Slide 25: Operational Discipline
Operational Discipline 2018 Processes set Foundation for Growth Supply Chain » Focused on end-to-end processes: = Manufacturing NAAGEN > Delivering products to customers t Fulfillment rate > Strong third party relationships: y Customer delivery time = W.R. Grace for NAAGEN manufacturing = CMOs to en
Slide 26: Operational Discipline: 2019 Incremental Opportunities
Operational Discipline 2019 Incremental Opportunities e-Commerce Marketing Platforms » Continued investments in decision support models: = Reduce customer acquisition costs * Increase lifetime value > Optimize digital marketing spend Supply Chain » Product design changes > Continued improvements in
Slide 27: 2019 Financial Outlook
2019 Financial Outlook (in thousands) PUEP ULI 2019 Outlook Key rs : U.S. e-Commerce, Watson's international Net Sales $21,201 $31,557 Sates ‘ninsales of business, launches in certain new international markets, including cross border Gross Margin % Increased sales of TRU NIAGEN in e- 49% 51% Continu
Slide 28: Nestlé Supply and License Agreement
Nestlé Supply and License Agreement .< Market Size — 2018 Est. Key Terms of the Agreement Protein Based Nutrition Drinks" > Upfront payment: $4MM 3 Few major > Cash received in Q1 2019 players > Amortized as revenue over minimum of three years fet > Nestlé Health ; ~$2.0Bil Science has a > Nestlé ex
Slide 29: Questions?
Questions?
Slide 30: Contact Info
Contact Info Brianna Gerber Senior Director of FP&A and Investor Relations T: +1.949.344.3782 BriannaG@chromadex.com www.chromadex.com
Slide 31: Key Statistics
Key Statistics Trading Data (@ March 8, 2019) Stock Price $3.54 52 Week High/Low $5.11/$2.79 Avg. Daily Vol. (50 day) 200,000 Shares Outstanding 55.3M Public Float (excl. >5% owners) 68% Insider Holdings 32% Market Cap $196M Enterprise Value $173M EV/Revenue (LTM) 5.5X P/E (LTM) N/M Financial Highli
Slide 32: TRU NIAGEN 2017 – 2018 YTD Net Sales Summary
@ truniacen 2017 — 2018 YTD Net Sales Summary di (inmitions) = : 2018 FulYear Bes : Description a @ 3 20172018 : Ecommerce 1835 44 5215.0 13 150 Watsons ; 08 03° O7) 1228 ad Intemational Other 00 00 01 ot tt 06 Total TRU NIAGEN 00 800f «626 a7 58087 ZS 18S NIAGEN Ingredient 40 2018 3078 13191008 'NI