Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q1 2020 Earnings Presentation
28 slides from Niagen Bioscience's earnings presentation, May 11, 2020
Slide 1: Earnings Conference Call First Quarter 2020
ChromaDex Earnings Conference Call First Quarter 2020 Rob Fried Chief Executive Officer Frank Jaksch Co-Founder / Executive Chairman Kevin Farr Chief Financial Officer (> ChromaDex. TRU NIAGEN Nasdaq: CDXC | May 11, 2020 1
Slide 2: ChromaDex TRU NIAGEN
(> ChromaDex TRU NIAGEN
Slide 3: Q1 2020 Takeaways
Q1 2020 Takeaways + Grew total net sales to $14.3 million in Q1 2020 (+43% YoY, +10% versus Q4 2019) + Demonstrated continued progress building TRU NIAGEN into a global brand with top-line momentum + TRU NIAGEN net sales of $11.1 million in Q1 2020 (+50% YoY) * Continued sequential growth in TRU NIA
Slide 4: Build a Global Brand
Build a Global Brand CANADA(a) UK(b) ‘Amazon ‘Amazon Truniagen.ca Superdrug Selected Retailers HONG KONG SINGAPORE Watsons Watsons: September 2017 termery 2038 AUSTRALIA Matakana Health Ltd. March 2020 NEW ZEALAND Matakana Health Ltd. September 2018 Global expansion continues with TRU NIAGEN® launch
Slide 5: 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 6: Scientific Advisory Board
(> ChromaDex Scientific Advisory Board Charles Brenner, Ph.O. Head of Biochemistry University of lowa ‘World's Foremost Authority fon NAD Metabolism Dr. Bruce German ‘Chairman of Food, Nutrition, & Hoatth University of California, Davis, Leader in Food, Nutrition, & Wellness Innovation Roger Kornber
Slide 7: Scientific Update
Scientific Update
Slide 8: Science Continues to Expand
Science Continues to Expand + 40 human studies on nicotinamide riboside in various stages on clinicaltrials.gov) + Two new clinical studies since prior update : + Koc University Hospital, Turkey (April 2020) + Study entitled “Metabolic Cofactor Supplementation in Obese Patients with Non-Alcoholic Fa
Slide 9: Recent Peer-Reviewed Publications
Recent Peer-Reviewed Publications + Journal of Molecular and Cellular Cardiology — Matasic et al., 2020 — “Modulation of the cardiac sodium channel Na,1.5 peak and late currents by NAD* precursors.” — April 2020 - + Preclinical study demonstrating the effects of both nicotinamide (NAM) and nicotinam
Slide 10: Financial Highlights
Financial Highlights
Slide 11: Q1 2020 Net Sales Mix
Q1 2020 Net Sales Mix Q1 2019 Q1 2020 e-Commerce Watson's & International e-Commerce 20% 57% $10.0 MM $14.3MM NIAGEN Ingredient otter ngrelonts co SB ne NIAGEN Ingredient 11% Watson's & intomaonad Analytical Referonce Analytical Reference vente Standards & Services (1) Standards & Services Other Ing
Slide 12: Q1 2020 Net Sales
Q1 2020 Net Sales Q1 2020 Net Sales Growth Rates ($ in millions) YoY % Q0Q % (vs Q1 2019) (vs Q4 2019) — ES: oo... Ea NIAGEN Ingredient La 20 +77% Flat Analytical Reference oF Standards & Services (1) Other Ingredients. ll 0s +34% +332% Total +43% +10% Continued strong growth in TRU NIAGEN sales, pa
Slide 13: Q1 2020 vs Q4 2019 Key P&L Metrics
Q1 2020 vs Q4 2019 Key P&L Metrics (n thousands) jar z0z0 | aszota [Notes TRU NIAGEN business up 10% with growth in U.S. e- Net Sales $ 14,345 $ 13,089 commerce, and initial shipments for new launches, partially offset by slightly lower Watsons sales Gross Profit 8,311 7,465 Up 90bps driven by produ
Slide 14: Q1 2020 vs Q1 2019 Key P&L Metrics
Q1 2020 vs Q1 2019 Key P&L Metrics (in thousands) Net Sales Gross Profit % of Net Sales Selling and Marketing $14,345 $10,048 TRU NIAGEN business up 50% with diversified growth across U.S. e-commerce, Watson's, and international cross border platforms (TMall, Amazon) Up 520bps driven by favorable mi
Slide 15: Q1 2020 Operating Loss vs Q1 2019
(in millions) (3.0) (4.0) (5.0) (6.0) (7.0) (8.0) (9.0) (6.4) Qt 2019 Operating Loss Q1 2020 Operating Loss vs Q1 2019 23 Volume 2020 vs 2019 Q1 Operating Loss - = 09 ES (0.3) “ | (0.6) (5.9) Gross Margin Legal Equity Comp. Rao Sales & Severance and Other G&A 1 2020 Improvement (G&A) Marketing Restr
Slide 16: 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. 34, 2018 2018-2018 2018 2019 2019 2019 2019 2020 Net loss, as reported” $ (8,443) $
Slide 17: Quarterly Balance Sheet Highlights
Quarterly Balance Sheet Highlights (in thousands) 12/31/19 | 3/31/20 | Key Drivers Cash $22,616 $19,327 $19,760 $18,879 | $18,812 $13,608 hale! Injoperaiions io. crow te Inventory 8249 8670 10,714 9,820. «14,835 —«11,280_ Investments to support growth Driven by mix of customer sales and “0 Accounts
Slide 18: Quarterly Cash Flow Highlights
Quarterly Cash Flow Highlights (in thousands) FY 2018 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | FY 2019 | 3/31/20 Net Loss $(33,316) $ (8,337) $(7,755) $(7,202) $ (8,853) | $ (32,147) $ (5,902) Working Capital 5059 2,888") (3,969) (2,943) 3,956 (68) (1,583) Cash From / (Used For) Operations 20,908 (3
Slide 19: 2020 Financial Outlook
2020 Financial Outlook (in thousands) 2018 Actual Net Sales $31,557 Gross Margin % 50.9% (as a % of net sales) Selling, Marketing & Advertising 52.4% (as a % of net sales) General & Administrative”) $17,317 Adjusted EBITDA excluding legal $(16,204) 2019 Actual $46,291 55.7% 2020 Outlook Continued gr
Slide 20: Cash Flow Break-even Framework
Cash Flow Break-even Framework Quarterly P& Framework) Comments + U.S. e-Commerce marketing efficiency ~$17 million Watson's international business Net Sales Acceleration in cross border launches Successful launch with Nestlé New business / market opportunities to ~$19 million + Increased sales of T
Slide 21: Appendix
ei Lo Appendix
Slide 22: NR has reached the significant milestone of registered human studies
NR has reached the significant milestone of 49 registered human studies") Preclinical Research More than 100 49 studies are preclinical peer- currently registered reviewed studies on clinicaltrials.gov have been published investigating the At least 8 more are science behind in planning and not NIAGE
Slide 23: Cellular Health Supports Intrinsic Capacity
Cellular Health Supports Intrinsic Capacity Molecular Integrity Cellular Function Physiological ae PSYCHOLOGICAL Intrinsic Capacity Wi ° yy Intrinsic capacity is the composite of all Xe j¥_ the mental and physical capacities that a SSS person can draw on and includes their ability to walk, think, se
Slide 24: Most prominent human clinical research areas for Niagen
Most prominent human clinical research areas for Niagen® are vitality, locomotion, cognition, and sensory vimaurry (ine. Cardiovascular, LocoMoTION (Neurological) SENSORY Metabolic) — Human Studies 55% n% 146% 10% Conditions Studied ‘Type Il Diabetes (Insulin Parkinson's Disease ‘Mild Concussion Neu
Slide 25: 2018 – 2019 YTD Net Sales Summary
2018 — 2019 YTD Net Sales Summary Description Ecommerce 18 79 275] 8.2) Watsons. 0.8 19 73 1.8] International / Other 0.4 0.4 1.3] 14 Total TRU NIAGEN 3.0 10.2 36.4 11.4 NIAGEN Ingredient 1.3 2.0 49) 20) NIAGEN Related Revenues 4.2 12.1 41.0 13.1 Other Ingredients 14 04 1.3] 0.5] Analytical Referenc
Slide 26: 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. 34, 2019 Change Net loss, as reported'”” $ (33,316) $ (32,147) $ 4,169 Adjustments: Interest (income) expense 79 847 768 Depre
Slide 27: Nestle Supply and License Agreement
Nestle 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 slightly more than 4 years > Few major players > Nestlé exclusivity: ~$2.0Bil > Nestlé Health > Exclusive rights in medical nutrition
Slide 28: Contact Info
romaDex 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