Slide 1: ChromaDex Earnings Conference Call Fourth Quarter 2021
1 ChromaDex Earnings Conference Call Fourth Quarter 2021 Rob Fried Chief Executive Officer Kevin Farr Chief Financial Officer Andrew Shao SVP Scientific & Regulatory Affairs Nasdaq: CDXC | March 9, 2022
Slide 2: Safe Harbor Statement
2SAFE HARBOR STATEMENT 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 19
Slide 3: Q4 2021 & Recent Highlights
3 Q4 2021 & Recent Highlights • Total company and Tru Niagen® net sales were up 15% and 14% YoY, respectively, with 17% growth in e-Commerce. • Total company net sales increased 3% sequentially. Tru Niagen® net sales declined (5)% sequentially with 6% growth in e- Commerce offset by lower B2B sales
Slide 4: Management Team
4 Management Team Rob Fried Chief Executive Officer E-Commerce & entertainment industry executive Savoy Pictures, Columbia Pictures, Fried Films, FeeIn, WHN, Healthspan Research Frank Jaksch Executive Chairman Co-founded ChromaDex in 2000 Kevin Farr Chief Financial Officer Former CFO, Mattel PriceWa
Slide 5: Scientific Update
The information contained in this documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent (2019) Scientific Update
Slide 6: Science Continues to Expand
6 Science Continues to Expand • Two new human studies on nicotinamide riboside registered since prior update:¹ • Children's Hospital of Philadelphia (January 2022) • The objective is to study the effect of NR and exercise on skeletal muscle quality and VO2max in adolescents and young adults followin
Slide 7: Recent Peer-Reviewed Clinical Publications
7 Recent Peer-Reviewed Clinical Publications • Cell Metabolism – Brakedal et al., 2022 – “The NADPARK study. A randomized Phase 1 trial of nicotinamide riboside supplementation in Parkinson's disease.” – March 2022 • Phase 1 clinical study showed that NR supplementation significantly increased cereb
Slide 8: Scientific Advisory Board
8 Scientific Advisory Board Charles Brenner, Ph.D. Alfred E Mann Family Foundation Chair, Department of Diabetes & Cancer Metabolism City of Hope World's Foremost Authority on NAD Metabolism Roger Kornberg, Ph.D. Chairman Professor of Structural Biology Stanford University Nobel Prize Winner, Chemis
Slide 9: Human clinical research areas for Niagen
9 Note: Based on Niagen® nicotinamide riboside (NR) trials listed on clinical trials.gov and ChromaDex Material Transfer Agreements – studies in progress or in planning. Most prominent human clinical research areas for Niagen® are vitality, locomotion, cognition, and sensory VITALITY (incl. Cardiova
Slide 10: Financial Highlights
Financial Highlights
Slide 11: Q4 2021 Net Sales Mix
11 • Tru Niagen® net sales decreased to 79% of net sales in Q4 2021 compared to 85% in Q3 2021(2) • Niagen®-related net sales decreased to 94% of net sales in Q4 2021 compared to 95% in Q3 2021(3) 1. Analytical Reference Standards and Services previously reported as Core 2. Tru Niagen® net sales inc
Slide 12: Q4 2021 Net Sales Growth Rates
12 Growth Rates YoY % (vs Q4 2020) Q4 2021 Net Sales ($ in millions) QoQ % (vs Q3 2021) $14.1 +17% +6% +5% (30)% +14% +53% +13% +15% +94% +100% +15% +3%Total Q4 2021 Net Sales Tru Niagen® business up 14% year-over-year driven by growth in e-Commerce and Watson's / Other B2B. Sequential Tru Niagen® s
Slide 13: FY 2021 Net Sales
13 FY 2021 Net Sales ($ in millions) Total Strong growth in Tru Niagen® and Watson's / Other B2B, partially offset by lower sales in Niagen® and other ingredients. Niagen® Ingredient business expected to improve with new strategic partnerships. Full Year 2021 Net Sales +14% +21% +18% (5)% +13% (67)%
Slide 14: 2019 – 2021 YTD Net Sales Summary
14 2019 – 2021 YTD Net Sales Summary Note – Other B2B previously referred to as International / Other (in millions) 2019 2020 2021 Description Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Ecommerce 5.9 6.5 7.1 7.9 27.5 8.2 8.1 8.7 9.5 34.5 9.6 10.6 10.5 11.1 41.8 Watsons 1.3 1.9 2.3 1.9 7.3 1.8 1.3
Slide 15: Q4 2021 vs Q3 2021 Results
15 (in thousands) Q4 2021 Q3 2021 Notes Net Sales 17,759 17,308 Tru Niagen® business down (5)%. E-Commerce up 6%, offset by ANZ distributor (COVID-19 headwinds) and Watsons (catch-up in shipments from supply chain disruptions completed last quarter). Gross Profit % of Net Sales 10,868 61.2% 10,578 6
Slide 16: Q4 2021 vs Q4 2020 Results
16 (in thousands) Q4 2021 Q4 2020 Notes Net Sales 17,759 15,445 Tru Niagen® business up 14% driven by global e-Commerce growth. Niagen® ingredient sales up 14% year-over-year. Gross Profit % of Net Sales 10,868 61.2% 9,421 61.0% Up 20bps driven by product cost savings initiatives, overall scale on s
Slide 17: Q4 2021 Adjusted EBITDA Summary
17 Q4 2021 Adjusted EBITDA, excluding total legal expense, was a loss of $(1.8) million, compared to a loss of $(1.1) million in the prior year period. Higher sales and gross margins, offset by investments in marketing and R&D to capitalize on growth in the NAD market. Adjusted EBITDA Summary 1. Q4
Slide 18: Q4 2021 Operating Loss vs Q4 2020
18 Q4 2021 Operating Loss vs Q4 2020 (in millions) +$3.3 MM -$2.5 MM
Slide 19: Strengthened the balance sheet, continued to manage working capital
19 Strengthened the balance sheet, continued to manage working capital (in thousands) 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 Key Drivers (FY 2021 vs 2020) Cash $ 18,812 $13,608 $18,890 $15,478 $16,697 $44,691 $38,778 $33,102 $28,219 $25 million capital raise plus
Slide 20: Quarterly Cash Flow Highlights
20 1. Includes $4 million deferred revenue related to the upfront payment from Nestlé. 2. Includes $10 million issuance of convertible notes, net of $565,000 of issuance costs. 3. Includes $7 million issuance of common stock, net of $226,000 of issuance costs. 4. Includes $2.2 million write-off of r
Slide 21: 2021 Full Year Outlook Recap
21 2021 Full Year Outlook Recap (in thousands) 2020 Actual 2021 Outlook 2021 Actual Comments Achieved?(3) Net Sales $59,257 Continued steady revenue growth (No change) $67,449 Total net sales grew by +14% and Tru Niagen® net sales grew by +20% year- over-year ✓ Gross Margin % (as a % of net sales) 5
Slide 22: 2022 Financial Outlook
22 2022 Financial Outlook (in thousands) 2020 Actual 2021 Actual 2022 Full Year Outlook Key Drivers Net Sales $59,257 $67,449 +15-20% YoY • Tailwinds: E-Commerce, new partnerships • Headwinds: COVID-19 impact on Watsons and New Zealand and Australia distributor Gross Margin % (as a % of net sales) 5
Slide 23: Adjusted EBITDA 2021 vs 2020
23 2021 Adjusted EBITDA excluding total legal expense was a loss of $(2.5) million, compared to a loss of $(1.0) million in the prior year primarily due to higher marketing investments. Adjusted EBITDA 2021 vs 2020 ChromaDex Corporation and Subsidiaries Reconciliation of Non-GAAP Finanical Measures
Slide 24: Delivered a solid fourth quarter
24 Delivered a solid fourth quarter and continued to demonstrate financial discipline with solid gross margins and lower legal spend, while making important investments to build our Tru Niagen® brand. • Total net sales of $17.8 million in Q4 2021 (+15% YoY, 3% versus Q3 2021) • Demonstrated continue
Slide 25: Contact Info
25 Contact Info Brianna Gerber Vice President of Finance and Investor Relations T: +1.949.419.0288 ext. 127 BriannaG@chromadex.com www.chromadex.com Where to buy TRU NIAGEN® truniagen.com amazon.com Walmart.com and select Walmart Retail Locations