Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q2 2019 Earnings Presentation
27 slides from Niagen Bioscience's earnings presentation, Aug 7, 2019
Slide 1: Earnings Conference Call Second Quarter 2019
- ChromaDex Earnings Conference Call Second Quarter 2019 Rob Fried * Chief Executive Officer Frank Jaksch Co-Founder / Executive Chairman Kevin Farr Chief Financial Officer Nasdaq: CDXC | August 7, 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 2TA ol the Secures Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, Forward-loo
Slide 3: Q2 2019 Takeaways
Q2 2019 Takeaways Grew total net sales to $11.1 million in Q2 2019 (+42% YoY, +10% versus Q1 2019) Demonstrated continued progress building TRU NIAGEN into a global brand with top-line momentum + TRU NIAGEN net sales of $8.7 milion in Q2 2019 (+134% YoY) + Continued strong sequential growth in TRU N
Slide 4: Building a Global Brand
Building a Global Brand maDex has expanded retail distribution of TRU NIAGEN@® into four new international markets ice September of 2017 a) TRU NIAGEN® was launched on ww. truniagen.ca and to health care practitioners at Fullscript Canada in December 2018. It was previously sold on www.amazon.ca. NA
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
Scientific Advisory Board Rudolph Tanzi, Ph.D. ‘Kennedy Professor of ‘Neurology Harvard University Leading Alzheimers Researcher, TIME 100 ‘Most infiuenti 2015 NEW NASDAQ: CDXC 6
Slide 7: Scientific Update
Slide 8: Science Continues to Expand
Science Continues to Expand + 32 human studies on nicotinamide riboside in various stages on clinicaltrials.gov + Three new clinical studies since prior update: + University of Colorado, Dr. Michel Chonchol (August 2019) + Study will measure the effects of NR on arterial stiffness and other measures
Slide 9: Scientific Reports study: NR supplementation sustains elevated blood NAD+ levels
+ Scientific Reports — Conze et al. — “NR supplementation safely and effectively sustains elevated blood NAD+ levels at recommended daily serving” — Jul. 2019 + Fifth published human clinical study on NR, but the first to measure both the kinetics and dose-dependent effects of chronic NR supplementa
Slide 10: Financial Highlights
Slide 11: Q2 Net Sales Mix
Q2 Net Sales Mix Q2 2018 Q2 2019 TRUNIAGEN 8 @ rruniacen e-Commerce man @rrvmiacen Widionek ebaieenancs International 50% 20% TRUNIAGEN Watson's & $7.8 MM — $14.1MM ; AGEN ogre nig tte “ | es MIAGEN Ingrodiont \ Owner tagiesients CP iar opedente Analytical Reference ee Standards & Services (1) 9% >
Slide 12: Q2 Net Sales
Q2 Net Sales Q2 2019 Net Sales Growth Rates ($ in millions) YoY % Q0Q % (vs Q2 2018) (vs Q1 2019) connec ES © revr0scex $8.7 Watson's & International fe 22 NIAGEN Ingredient | 41 Analytical Reference io Standards & Services (1) 5 Other Ingredients | 03 Total +42% +10% Continued strong growth in e-Co
Slide 13: Q2 YTD Net Sales
Q2 YTD Net Sales Q2 YTD 2019 Net Sales Growth Rates ($ in millions) YoY % (vs 1H 2018) von ES 2g 0.102 $16.2 Analytical Reference 8 a Standards & Services (1) cc content me Total +47% e-Commerce and Watson’s more than doubled, partially offset by expected lower ingredient sales and legacy businesses
Slide 14: Q2 2019 vs Q1 2019 Results
(in thousands) | a22019 | Qi 2019 Notes TRU NIAGEN business up 17% with strength in Net Sales $11,101 $10,048 Watson's international business and continued double-digit growth in e-Commerce Gross Profit 6,254 5,301 Favorable mix shift toward TRU NIAGEN e- ‘een Salsa eee pe Commerce business. Complet
Slide 15: Quarterly Adjusted EBITDA
Quarterl ChromaDex Corporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures (In thousands) y Adjusted EBITDA Three months ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31, Jun. 30, 2018 2018 2018 2018 2019 2019 Net loss, as reported $ (8,443) $ (8,050) $ (8,605) $ (8,218) $ (8,337
Slide 16: Q2 2019 vs Q2 2018 Results
(in thousands) Q2 20° Q2 2018 Notes $7,803 TRU NIAGEN business up 134%, with e-Commerce Net Sales $11,101 up 88% and Watson's & International up 749% 700 bps improvement driven by favorable mix shift Gross Profit Gee) toward TRU NIAGEN e-Commerce business and ofNet Sates mu absence of certain charge
Slide 17: Q2 2019 Operating Loss vs 2018
Q2 2019 Operating Loss vs 2018 ] \ (in millions) | | 2019 Q2 Operating Loss vs 2018 $M (5.0) (5) os m (60) J — 1.6 (0.5) 0.3 (6s) Ea = (70) {8} = || os (05) 73) (8.0) (8.5) ‘a2 Fras Actual Volume Gross Margin Sales & Marketing fqulty Comp veal RO toyaties ‘other Gin Operating Loss Improvement (Gray
Slide 18: Quarterly Balance Sheet Highlights
Quarterly Balance Sheet Highlights (in thousands) 12/31/18 3/31/14: 6/30/19 Key Drivers Cash used in operations to grow the business and higher IT related CapEx. Includes $10 million from convertible notes offering. Investments to support growth in 2019 and 2020 Cash $ 22,616 $19,327 $19,760 Invento
Slide 19: Quarterly Cash Flow Highlights
Quarterly Cash Flow Highlights (in thousands) 6/30/18 9/30/18 12/31/18 3/31/19 6/30/19 Net Loss $ (8,050) $ (8,605) $ (8,218) $ (8,337) Working Capital (616) 1,825 866 (1,074) Cash From / (Used For) Financing 13 142 (43) 55 Net Increase / (Decrease) in Cash $ (7,648) $ (5,175) $ (5,598) $ (3,289) NA
Slide 20: 2019 Financial Outlook
2019 Financial Outlook (in thousands) 2017 Actual PEE CACC 2019 Outlook Key Drivers U.S. e-Commerce, Watson's international business, launches in certain new Continued growth in sales of Net Sales $21,201 $31,557 TRU NIAGEN Gross Margin % Increased sales of TRU NIAGEN in e- 49% 51% Continued improve
Slide 21: Cash Flow Break-even Framework
Cash Flow Break-even Framework Quarterly P&L Metrics Framework Comments + U.S. e-Commerce marketing efficiency Watson's international business Acceleration in cross border launches ‘Successful launch with Nestlé (e.g. Sports, HCP) ~$17 million Net Sales to ~$19 million + Increased sales of TRU NIAGE
Slide 22: Appendix
Slide 23: 2017 – 2019 YTD Net Sales Summary
(in millions) Description Ecommerce Watsons International / Other Total TRU NIAGEN: NIAGEN Ingredient 2017 — 2019 YTD Net Sales Summary 'NIAGEN Related Revenues Other Ingredients Reference Standards & Services: YOY Growth Rate - Net Sales Total Company NIAGEN Related Total TRU NIAGEN Sequential Grow
Slide 24: NR has Reached the Significant Milestone
NR has Reached the Significant Milestone of 37 Registered Human Studies") Preclinical Clinical Health Research Outcomes 5 published clinical studies of NIAGEN® led the way More than 100 37 studies are preclinical peer- currently registered reviewed studies on clinicaltrials.gov have been published i
Slide 25: Neurological, Cardiovascular, and Metabolic Health are Most Prominent Research Areas
Neurological, Cardiovascular, and Metabolic Health are the Most Prominent Human Clinical Resea Areas for NAGEN® Human Studies 36% 34% 12% Conditions Studied ~ Parkinson disease - Heart failure - Type 2 diabetes (Insulin sensitivity) - Mild cognitive impairment - Hypertension - Weight loss - Neuropat
Slide 26: Market Size — 2018 Est.
Market Size — 2018 Est. Protein Based Nutrition Drinks) > Few major Intl players . > Nestlé Health ~$2.0Bil Science has a significant share us. Medical Nutrition?) > Few major players > Nestlé Health Science has a ~$16Bil Intl. significant share Nestlé Supply and License Agreement .< Key Terms of th
Slide 27: Contact Info
Contact Info Brianna Gerber Senior Director of FP&A and Investor Relations T: +1.949.419.0288 ext. 127 BriannaG@chromadex.com www.chromadex.com