Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q3 2019 Earnings Presentation
27 slides from Niagen Bioscience's earnings presentation, Nov 12, 2019
Slide 1: Earnings Conference Call Third Quarter 2019
- ChromaDex Earnings Conference Call Third Quarter 2019 Rob Fried * Chief Executive Officer Frank Jaksch Co-Founder / Executive Chairman Kevin Farr Chief Financial Officer Nasdaq: CDXC | November 12, 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: Q3 2019 Takeaways
Q3 2019 Takeaways Grew total net sales to $12.1 million in Q3 2019 (+48% YoY, +9% versus Q2 2019) Demonstrated continued progress building TRU NIAGEN into a global brand with top-line momentum + TRU NIAGEN net sales of $9.7 million in Q3 2019 (+86% YoY) + Continued strong sequential growth in TRU NI
Slide 4: Build a Global Brand
Build a Global Brand International Expansion ‘CANADA(a) Amazon Truniagen.ca NEW ZEALAND Matakana Superfoods September 2018 ion of TRU NIAGEN international markets ChromaDex has expanded retail distrib ito four new ice September of 2017 2) TRU NIAGENO was launched on ww.truniagen.ca and to health car
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 Dr. Bruce German Professor Sir John, e Shaken of Feed Main, Walker, Ph.D. Ueceih Emeritus Diroctor, MRC University of ‘Mitochondrial Biology California, Davis University of Cambridge Leader in Food, Nutrton, & Nobel Prize Winner, ‘
Slide 7: Scientific Update
Slide 8: Science Continues to Expand
Science Continues to Expand + 36 human studies on nicotinamide riboside in various stages on clinicaltrials.gov(") + Three new clinical studies since prior update: + Istanbul Medipol University Hospital (August 2019) + Testing the hypothesis that a “metabolic cofactor supplement” including N-acetylc
Slide 9: Recent Peer-Reviewed Publications
Recent Peer-Reviewed Publications Cell Reports — Yasir S. Elhassan and colleagues — “Nic transcriptomic and anti-inflammatory signatures” — Aug. 2019 + Confirmed that NR has a positive effect on the NAD metabolome in blood, which was previously shown in four clinical studies + First study to show th
Slide 10: Financial Highlights
Slide 11: Net Sales Mix
~ Net Sales Mix Q3 2018 Q3 2019 @ trv niacen e-Commerce o% @ trvniacen Watsons & aoe \ $8.1 MM $12.1MM al Reference 10% NIAGEN Ingredient ‘Standards & Services (1) 12% 9% > TRU NIAGEN ret sales increased to 81% of net sales in Q3 2019 compared to 64% in Q3 2018) > NIAGEN-related net sales increased
Slide 12: Q3 Net Sales
Q3 Net Sales Q3 2019 Net Sales Growth Rates ($ in millions) YoY % Q0Q % (vs Q3 2018) (vs Q2 2019) $9.7 Analytical Reference Standards & Services (1) " NIAGEN Ingredient EJ 07 2% h% 82% Other Ingredients | 0s 40% 485% Total +48% +9% ntinued strong growth in e-Commerce and Watson’s, partially offset b
Slide 13: Q3 YTD Net Sales
Q3 YTD Net Sales Q3 YTD 2019 Net Sales Growth Rates ($ in millions) YoY % (vs 9M 2018) vcoonec EE 5 JQ ronson $25.9 ———t Analytical Reference Standards & Services (1) NIAGEN Ingredient Ey 29 [ 31% Other Ingredients | 12 3.2 Total +48% e-Commerce and Watson’s more than doubled, partially offset by ex
Slide 14: Q3 2019 vs Q2 2019 Financial Results
(in thousands) Q3 2019 Q2 2019 Notes TRU NIAGEN business up 11% with diversified Net Sales $ 12,053 $11,101 growth across U.S. e-commerce, Watson's and international (TM ‘ ‘a Down 30bps driven by Nestle revenue recognition Gross Profit is (no ingredient sales). Excluding this impact, margins % of Ne
Slide 15: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA 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, 2018 2018 2018 2018 2019 2019 2019 Net loss, as reported $ (8,443) $ (8,050) $ (8,605) $ (8,218)
Slide 16: Q3 2019 vs Q3 2018 Financial Results
(in thousands) Q3 20 Q3 2018 | Notes TRU NIAGEN business up 86% with strength in Net Sales $ 12,053 $8,120 ‘Watson's international business and continued growth in e-Commerce Favorable mix shift toward TRU NIAGEN e- % of Net Sales 56.0% 53.7% Commerce business at higher margins Significant improveme
Slide 17: 2019 Q3 Operating Loss vs 2018
{in millions) (5.0) (5.5) (6.0) (65) (7.0) (7.5) (8.0) (8.5) (9.0) (9.5) 03 i! a 24 Ss (02) (8.6) Ah \f 2019 Q3 Operating Loss vs 2018 $M ‘Gross Margin Sales &Maoting RD. Ue Equiny Comp (0.2) omer Gon (6.9) NASDAQ: CDXC 17
Slide 18: Quarterly Balance Sheet Highlights
Quarterly Balance Sheet Highlights da (in thousands) } szistns | 3/31/19 6/30/2019 9/30/2019 | Key Drivers (Year-to-Date) Cash used in operations to grow the Cash $ 22,616 $19,327 $19,760 $18,879 _ business. Reflects $17 million from : Continued investments in inventory to ae $1.5 million bonus to e
Slide 19: Quarterly Cash Flow Summary
(in thousands) 6/30/18 9/30/18 | 12/31/18 3/31/19 6/30/19 9/30/19 Net Loss $ (8,050) $ (8,605) —$ (8,218) $ (8,337) $ (7,755) Working Capital (616) 1,825 866 (1,074) (3,880) (6,549) (5,235) (5,136) (3,048) (9,021) Cash From / (Used For) Investing (1,113) (82) (419) (296) (69) Cash From / (Used For)
Slide 20: 2019 Financial Outlook
2019 Financial Outlook") (in thousands) 2017 Actual® 2018 Actual (PUst vel ies Key U.S. e-Commerce, Watson's international business, launches in certain new international markets, including cross border Increased sales of TRU NIAGEN in e- Continued growth in sales of TRU NIAGEN Net Sales $21,201 $31
Slide 21: Cash Flow Break-even Framework
Cash Flow Break-even Framework") Quarterly P&L Metrics os F eee Z a BOO IO GORI: + U.S. e-Commerce marketing efficiency Watson's international business Acceleration in cross border launches Successful launch with Nestlé New business opportunities (e.g. Sports, HCP) v . ~$17 million Net Sales to ~$19
Slide 22: Appendix
Slide 23: 2017 — 2019 YTD Net Sales Summary
2017 — 2019 YTD Net Sales Summary (in millions) Description Ecommerce Watsons International / Other Total TRU NIAGEN NIAGEN ingredient ‘YOY Growth Rete - Net Sales Total Company “A2% 43% 55% 69% «= -2% ©=— 95% 85% 33% 20% 49% 53% 42% (AGEN Related 68% 48% 204% += 188% = 22% = 337% 168% 40% 31% 79% 9
Slide 24: NR has Reached the Significant Milestone of Registered Human Studies
NR has Reached the Significant Milestone of 43 Registered Human Studies") Preclinical Clinical Health Research Outcomes 5 published clinical studies of NIAGEN® led the way More than 100 43 studies are preclinical peer- currently registered reviewed studies on clinicaltrials.gov have been published i
Slide 25: Neurological, Cardiovascular, and Metabolic Health are the Most Studied Areas
Neurological, Cardiovascular, and Metabolic Health are the Most Areas for NAGEN® Human Studies 34% 31% 1% Conditions Studied ~ Parkinson disease ~ Heart failure - Type 2 diabetes (insulin sensitivity) = Mild cognitive impairment _- Hypertension - Weight loss = Neuropathies - Arterial stiffness. ~Alt
Slide 26: 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 > Few major > Cash received in Q1 2019 Reyes Amortized as revenue over slightly more than 4 years pe > Nestlé Health 7 ~$2.0Bil Science has a > Nestlé exc
Slide 27: Contact Info
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