Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Investor Presentation (December 2018)
34 slides from Niagen Bioscience's investor presentation, Dec 4, 2018
Slide 1: Investor Presentation December 2018
Investor ; Presentation “a » Sanat s,, December 2018 Nasdaq: CDXC
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 21€ of the Securities Exchange Act of 1934. Forward-
Slide 3: Slide 3
Slide 4: Partners and affiliated companies
AGEX resTOR THERAPEUTICS & BioViva 1D mitobridge JUVENESCENCE
Slide 5: Role of NAD / Nicotinamide Riboside
licotinamide’ Role of NAD NASDAQ: CDXC 5
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 5 O 5% he 2003 2012 2017 PROVIDED LICENSED PARTNERED WITH A.S. WATSON
Slide 7: Building a Global Brand
Building a Global Brand é UNITED KINGDOM Amazon SINGAPORE Watsons January 2018, ~NEW ZEALAND Matakana Superfoods i te NASDAQ:COXC 7
Slide 8: The Opportunity with A.S. Watson Group
The Opportunity with A.S. Watson Group Country Number of Stores!) Approval China 3,500 Germany 2,200 Poland 1,250 European Union 1,100 Netherlands 950 United Kingdom 800 Philippines 650 Taiwan 550 Hong Kong 250 v Singapore 100 v Sub-Total 11,250 Other 3,300 Total 14,550 (1) Rounded to the nearest 50
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: Scientific Advisory Board
Scientific Advisory Board Chief Scientific Advisor Roger Kornberg, Ph.D. Rudolph Tanzi, Ph.D. Charles Brenner, Ph.D. Professor of Structural Biology Kennedy Professor of Neurology Head of Biochemistry Stanford University Harvard University University of lowa Professor Sir John Walker, Ph.D. Or. Bruc
Slide 11: 160+ Pre-Clinical & Clinical Studies in Progress on NR
160+ Pre-Clinical & Clinical Studies in Progress on NR Represents over $50 million of research paid for by third parties Areas of * Alzheimer's Disease * Diabetes + Melanoma + Heart Failure * Diabetic Neuropathy * Steatosis * Chronic Kidney Disease * Parkinson's Disease + Immune Response * Breast Ca
Slide 12: Preclinical Research and Clinical Health Outcomes
Preclinical Research More than 100 preclinical peer- reviewed studies have been published investigating the science behind NIAGEN® NIAGEN® has Reached the Significant Milestone of 24 Registered Human Investigations 24 trials are currently registered on clinicaltrials.gov At least 10 more are in plan
Slide 13: Most Prominent Human Clinical Research Areas for NIAGEN
Neurological, Cardiovascular Health, and Obesity are the Most Prominent Human Clinical Research Areas for NIAGEN® NEUROLOGICAL CARDIOVASCULAR OBESITY OTHER Pe: Human Studies 31% 28% 24% 17% Parkinson disease “Tyee 2 diabetes Mild cognitive Heart failure (Insulin sensitivity) Immunity/Inflammation im
Slide 14: Intellectual Property
Intellectual Property US 8106184: Synthetic manufacture of NR — Anthony Sauve of Cornell University US 8114626: Manufacture of NR via recombinant microorganisms — Charles Brenner of Dartmouth College US 8197807: NR for increasing NAD biosynthesis — Charles Brenner of Dartmouth College US 8383086: Co
Slide 15: We Are a Growth Company
WE ARE A GROWTH COMPANY Driven by sales of TRU NIAGEN Total Company Sales by Quarter ($M) TRU NIAGEN Sales by Quarter ($M) YoY growth foY gro 133% YoY growth on 485% $5.2 +69% 42528% $3.7 495% +21550% $3.0 i I 932017 42017 a1 2018 a2 2018 032018, 032017 042017 12018 02 2018 932018 mWatsons/Other Eco
Slide 16: Strategic Initiatives
Strategic Initiatives Y Continue to raise awareness of TRU NIAGEN and NAD Y Open International markets Y New Channels = Health Care Practitioners = Sports VY Strategic NIAGEN ingredient deals ¥ Focused R&D investments Nasdaq: COXC 16
Slide 17: Key Accomplishments in 2018
Key Accomplishments in 2018 v YTD September, company grew by 65% to $22.5 million, driven by TRU NIAGEN v Expanded TRU NIAGEN retail partnership with Watsons through mid-September 2021 ¥ Launched TRU NIAGEN PRO to Healthcare Practitioners, highest dose of NR in single capsule ¥ Launched TRU NIAGEN i
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Slide 19: Managing Change: Business Model Transformation
9 Months YTD 2017 Net Revenue Y Science Based v Ingredients Y Standards Y Quality Assurance Managing Change Business Model Transformation I TRU NIAGEN Niagen ingredient Wl Other ingredients Core +65% YoY _=»> 9 Months YTD 2018 Net Revenue Y Science Based Y Consumer Focused Y Marketing Driven Nasdaq:
Slide 20: Financial Discipline
Financial Discipline CFO Mandate “Bring financial discipline to a company that is experiencing significant organizational changes and rapid growth.” 20
Slide 21: Financial Discipline
Financial Discipline Holistic Approach P+L Balance Sheet Cash Flow v Scale Revenues v Manage Working ¥ Reduce Cash Burn v Manage Costs Capital Y Lower Net Losses Prudently Y Inventory Y Control Working Y impr ntrols Capital Marketing v Return on Efficiency Focused R+D Control G+A Investment Y Target
Slide 22: Financial Discipline: Deep Dive by Business Segment
Financial Discipline Deep Dive by Business Segment Business Segments Evaluating Goals Y Growth Prospects Vv Ass Y Gross Profit Margin v Operating Expenses Y Profitability v Return on Investment v Assess Growth Prospects v Reallocate existing resources to TRU NIAGEN/NIAGEN Nasdaq: COXC 22
Slide 23: Financial Discipline: Ecommerce Focus
Financial Discipline Ecommerce Focus (In millions) . es0) seo Investing to optimize revenue growth $5.0 $4.4 28% $a0 - v Real-time dashboards tracking key metrics 88% Y Decision support models $3.0 $1.8 = Reduce customer acquisition costs $2.0 Aza = Increase lifetime value of customers $0.8 $1.0 $0.
Slide 24: Operational Discipline
Standardizing Systems v Modest Incremental IT Investments Operational Discipline Scale Processes to Support Rapid Growth Streamlining Processes Y Automating Manual Activities v Eliminate Low Value Activities Supply Chain Optimiza Product Flows Improved Inventory Requirements Reduce Customer Delivery
Slide 25: NIAGEN Related Sales in Q3 2018
NIAGEN Related Sales in Q3 2018 Year-over-Year (Q3 2018 vs Q3 2017) Quarter-over-Quarter (Q3 2018 vs Q2 2018) {inmitions) (inmitions) : . = 2018 i $ 40 $40 ™ ™ rot mm ratat aa = im = _ = se $20 sett sae $10 $10 $s. s- NAGENlated NIMGEN-reltes NIAGEN-elted NiAGENelted Sales Sales Sales Sales v Strong
Slide 26: Recent Financial Performance
Recent Financial Performance Investing Ahead of Growth Q3 2018 Operating Loss Increased by $5.4MM vs Q3 2017 (in millions) (1.0) (2.0) 1.0 a 20) Ba (3.2) (4.0) (5.0) (6.0) (3.9) || (7.0) (12) fincas (0.6) =x (8.0) (0.3) = (9.0) (0.9) (10.0) am volume Gross Marin commerce eet tqoty Come m0 nner, 048
Slide 27: Overhead Costs
Overhead Costs v v Investments in senior leadership Bring strong capabilities to support rapid global growth Expect to achieve scale with management team largely built out Opportunity for Improved Profitability Three areas driving spending today Legal Costs v Driven by protection of the company’s IP
Slide 28: Recent Financial Performance: Cash Flow
Recent Financial Performance Cash Flow 2018 Nine Months Net Cash Used in Operating Activities Nine Months Highlights (in thousands) Sep 2018 Sep 2017 + Changes in Working Capital improved, driven by change in AP. Net loss. $ (25,098) $ (2,633) Share-based Compensation 4,386 1,211 2018.4 2017.4 YOY A
Slide 29: Outlook
Outlook * Continued growth in sales of TRU NIAGEN, driven by: * U.S. eCommerce * Watsons international business * Launch in certain new international markets ° Gross profit % of net sales continues to expand Investment spending ahead of revenue growth * Marketing * More focused R&D * Protecting/mana
Slide 30: Key Statistics
52 Week Low $7.15/$3.19 Key . . Avg. Dail . (90 day) 180,000 Stati st Ics Shares Ot nding 55.1M Public Fl excl. >5% ownt 67% 33% | Stock Pri + $3.50 | | | | | Insider H gs Market $195M | | $167M Ev/Revei |LTM) | 5.6X P/E (LTM N/M Enterpris@Walue NASDAQ: CDXC 30
Slide 31: 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 32: 2016 - 2018 YTD Net Sales Summary
2016 - 2018 YTD Net Sales Summary , af (in milions) 2017 Description a Ecommerce oo 01 03 O08 13 18 35 Watsons 23 18 41 08 03 International / Other oo 00 o1 04 00 Total TRU NIAGEN 0.0 0.0 OL 26 27 5S 3.0 3.7 NIAGEN Ingredient 10.8 1.0 2.0 18 3.0 78 13 19 'NIAGEN Related Revenues wos 10" 21 44 57 432
Slide 33: Q3 2018 Net Sales Up 33% to $8.1 Million
Q3 2018 Net Sales Up 33% to $8.1 Million, Fueled by Growth of TRU NIAGEN® * TRU NIAGEN sales were 84% of total NIAGEN-related sales in Q3 2018 * NIAGEN-related sales in Q3 2018 grew 40% compared to Q3 2017 + NIAGEN-related sales in Q3 2018 were 77% of total sales, compared to 73% in Q3 2017 Q3 2017
Slide 34: The Enormous Opportunity for NAD and TRU NIAGEN
The Enormous Opportunity for NAD and TRU NIAGEN * Billions spent worldwide on Looking, Acting and Feeling Younger * Anti-Aging Market was $250 billion worldwide in 2016+ * Skin care, cosmetic surgery, hair restoration, fitness, vitamins & supplements etc. * Gym memberships - $28 billion US?, $84 bil