Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Investor Presentation (May 2020)
39 slides from Niagen Bioscience's investor presentation, May 29, 2020
Slide 1: Investor Presentation
Investor Presentation Rob Fried Chief Executive Officer Kevin Farr Chief Financial Officer (> ChromaDex. TRU NIAGEN Nasdaq: CDXC | May 2020
Slide 2: About Non-GAAP Financial Measure
About Non-GAAP Financial Measure (> ChromaDex TRU NIAGEN
Slide 3: Three Core Objectives
Three Core Objectives Build TRU Own the Focus on . NIAGEN® Science Fundamentals Brand Build upon and protect Strong global Build a fundamentally our intellectual property partnerships sound business operation Invest in quality research Investments in brand Regulatory approvals and partner with leadi
Slide 4: The Science
The Science
Slide 5: NAD
NAD
Slide 6: The coenzyme NAD+ is critical in cellular bioenergetics
“The coenzyme NAD+ is critical in cellular bioenergetics and adaptive stress responses. Its depletion has emerged as a fundamental feature of aging that may predispose to a wide range of chronic diseases.” ‘With careful scientific evaluation, NAD+ replenishment might serve as a promising multifuncti
Slide 7: The Critical Role of NAD
tum to | Books to inspire budding (> 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 and resilience + NAD declines as we age + When NAD levels are low, cells don’t function optimally *
Slide 8: Our Solution: TRU NIAGEN
(> ChromaDex. TRU NIAGEN 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 * 20+ licensed global patents or patents pending
Slide 9: Kinetics & Dose-Dependent Effects of Niagen Supplementation
Kinetics & Dose-Dependent Effects of Niagen Supplementation A ) —O-Piacebdo * Daily supplementation with NR ‘a | Smee MACE, - required to maintain elevated Pd NAD+ levels is safe “is «0 Helps the body “cope” with a5 the increasing NAD+ demands associated with aging Supports the body’s “Intrinsic Day
Slide 10: 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 11: NR Research Impact is Accelerating
NR Research Impact is Accelerating £ re 8 f 3 Fy 8 £ Cumul. 1200 1000 800 600 400 200 i} 2004 2006 2007 2008 2009 2011 ChromaDex. = Vitality * = Locomotion * = Cognition* mSensor* = Psychological” = Pharmacokinetic/Safety mBasic Research “NR Research Impact by the domains of Intrinsic Capacity. 2012
Slide 12: Areas of Study
eas of Study + Cognition + Alzheimer’s Disease + Traumatic Brain Injury * Cockayne Syndrome + Vitality + Heart Failure * Chronic Kidney Disease + Breast Cancer Hypertension * Diabetes Nonalcoholic fatty liver disease Melanoma Steatosis + Immune Response + Browning of Adipocytes * Mitochondrial Myopa
Slide 13: Scientific Advisory Board
Scientific Advisory Board Charles Brenner, Ph.D. Roger Kornberg, Ph.D. Rudolph Tanzi, Ph.D. Head of Biochemistry Chairman Kennedy Professor of University of iowa Professor of Structural ‘Neurology Biology Harvard University Worl Foremost Authorty ‘Stanford University, on NAD Metabolism Leading Alzhe
Slide 14: Slide 14
Slide 15: Significant U.S. Market Opportunity
Significant U.S. Market Opportunity U.S. Supplement Industry (In $ billions) $70 +6.1% CAGR $60 $58B $50 Other! $40 $30 Meal Supplements Meal Supplements $20 Sport Nutrition ‘Sport Nutrition $10 Vitamins Vitamins $0 1 Includes Specialty/Other, Herbs and Botanicals, and Minerals ‘Source: Nutrition Bu
Slide 16: Significant Global Market Opportunity
Significant Global Market Opportunity Global Supplement Industry (In $ billions) $180 ne $160 CAGR ~$170B $140 ~$1408 now $120 LATAM a $100 _s1008 = a $80 ° China $60 Himee $40 $20 $0 2018 2022E Source: Nutrition Business Journal (NBJ) and ChromaDex internal estimates. Extrapolated 6% growth from NB
Slide 17: Our Brand
Our Brand
Slide 18: TRU NIAGEN website
our proouct —THEScIENCE. = WHOWEARE —INTHENEWS —® een Ea TRU NIA © Help TRU NIAGEN
Slide 19: Global Expansion
Global Expansion CANADA(a) UK(b) ames e oat Amazon runiagen.ca reek Selected Retailers ‘April 2020: Truniagen.cn Tmall JD.com Kaola HONG KONG SINGAPORE Watsons Watsons: September 2017 termery 2038 AUSTRALIA Matakana Health Ltd. March 2020 NEW ZEALAND Matakana Health Ltd. September 2018 Global expans
Slide 20: Strong Global Partners
Strong Global Partners A.S. Watson Group > World’s largest international health & beauty retailer (~15,000 stores)(") > Europe ~9,000 stores > Asia ~6,000 stores >» Extended partnership through mid- September 2021 in Hong Kong, Macau, and Singapore (1) Includes all stores owned by AS. Watson Group.
Slide 21: Product Expansion: TRU NIAGEN Beauty
Production Expansion: TRU NIAGEN® Beauty Cellular health and beauty daily supplement April 2020 launch Exclusively in retail with Watsons Hong Kong Builds on the success of TRU NIAGEN® in Watsons Hong Kong stores as an award-winning and best- Notin & ANTIORIOANTS selling health product amongst loyal
Slide 22: Steady Progress — TRU NIAGEN
Steady Progress — TRU NIAGEN +50% $14 (In $ millions) TRU NIAGEN Sales by Quarter YoY growth +57% $10.2 +86% $9.7 +134% $8.7 $2.2 +146% $2.6 +143% 575 $6.5 +97% $5.2 $1.2 +2528% $3.7 sos vA $7.9 $2.6 $2.7 : $5.2 - $0.3 Maa Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 20
Slide 23: FY 2019 Net Sales Mix
FY 2019 Net Sales Mix FY 2018 FY 2019 scanners anid Watson's & tnsrneton Hr $31.6 MM “oo $46.3MM AGEN ngredont Other ingredients Watson's & m 11% borne NIAGEN Ingredient ‘oe Analytical Reference Standards & Services (1) 14% Other Ingredients 9% 3% > TRU NIAGEN ret sales increased to 78% of net sales
Slide 24: Financial Highlights
Financial Highlights
Slide 25: Bring financial discipline to a company experiencing rapid growth
“Bring financial discipline to a company that is experiencing significant organizational changes and rapid growth.” Kevin Farr, CFO
Slide 26: 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 27: 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 28: 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 29: 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 30: 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
Slide 31: Appendix
Appendix
Slide 32: Evolution of ChromaDex
Evolution of ChromaDex 2000 2012 2013 2017 ms 2020 COMPANY FORMED; Aacauineo scieNmiFic COMMERCIALIZATION RAISED $48 MILON; eeetcemannen RECEIVED EV AND REFERENCE STANDARDS AND REGULATORY Orniacen {ep by HORIZONS VENTURES [AUSTRALIA REGULATORY CONSULTING BUSINESS ‘APPROVAL o- - @ = fe * os * 2008 20
Slide 33: 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 34: 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 35: FY 2019 vs FY 2018 Key P&L Metrics
FY 2019 vs FY 2018 Key P&L Metrics (in thousands) 'Y 2019 FY 201 | Notes Total net sales up 47%. TRU NIAGEN business up Net Sales $46,291 $31,557 96% with diversified growth across U.S. e-commerce Watson's, and intern Gross Profit 25,769 16,055 Up 480bps driven by favorable mix with growing TRU % of
Slide 36: 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 37: Build Upon and Protect our IP
Build Upon and Protect our IP‘) 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 — Charles Brenner of Dartmouth College US 7
Slide 38: 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 39: Key Statistics
Key Statistics Trading Data (@ May 28, 2020) Financial Highlights (LTM ended Mar ’20) Stock Price $4.77 Net Sales (LTM) $50.6M 52 Week High/Low $5.80/$2.50 EPS (LTM) ($0.51) iv. 13. ‘Avg. Daily Vol. (50 day) 596,000 Cash & Equiv. Beem Total Assets $35.6M Shares Outstanding 61.6M Total Debt $0.0M Pub