Slide 1: Second quarter presentation 2023
Kjell-Erik Nordby(CEO) Kjell-Erik Nordby / Alexander (CEO) /Karlsen Alexander (CFO) Karlsen (CFO) 23 August 2023 23 August 2023
Slide 2: We believe in balance in life
We believe in balance in life. We want to grow our business but not at the expense of the environment, people’s wellbeing, or sound business principles
Slide 3: Agenda
Agenda Highlights Operational review Financial review Summary Appendix
Slide 4: All time high sales volume and significantly improved cash flow
Highlights All time high sales volume and significantly improved cash flow MNOK 107 in revenue vs. MNOK 69 in Q2 2022 Other • Increased volume from the new production line compared to the • Net profit negatively affected with MNOK 3 in quarter same quarter last year has resulted in more volumes avai
Slide 5: Slide 5
Slide 6: Vistin has high focus on reducing local and global emissions
Vistin has high focus on reducing local and global emissions, and programs are in place to consume responsibly • Zero impact on surrounding environment and safe workplace • Double production volume without increased impact on environment • Invested more than EUR 4 mill in sustainable initiatives, 20
Slide 7: Slide 7
Slide 8: Agenda
Agenda Highlights Operational review Financial review Summary Appendix
Slide 9: We are pure play metformin company with a bright outlook
We are pure play metformin company with a bright outlook A bright outlook Diabetes Metformin for Vistin Pharma One of the largest + The gold standard = A leading global health emergencies treatment of type in the 21st century 2 diabetes producer of premium metformin • Market demand for Metformin is
Slide 10: Diabetes – A global emergency
Diabetes – A global emergency
Slide 11: Metformin is the 1st-line treatment for type 2 diabetes
Metformin is the 1st-line treatment for type 2 diabetes, being cost-efficient with limited side effects An estimated 537 million adults aged 20–79 years are currently living with diabetes. This represents 10.5% of the world’s population Today Vistin contributes to deliver Metformin diabetes type 2 m
Slide 12: Total number of diabetes patients expected to rise to 783 million by 2045
Total number of diabetes patients expected to rise to 783 million by 2045 (+46%) Number of people living with diabetes / Source: International Diabetes Federation, IDF Diabetes Atlas, tenth edition, 2021
Slide 13: Vistin Pharma produces about 10% of the world's demand of metformin
Vistin Pharma produces about 10% of the world’s demand of metformin and has a world-wide sales coverage
Slide 14: World sales map
World sales map North Atlantle Ocean North South Atlantic ‘Ocean
Slide 15: Slide 15
Slide 16: Agenda
Agenda Highlights Operational review Financial review Summary Appendix
Slide 17: Long and successful growth track record
Financial review Long and successful growth track record Revenues Vistin Metformin (MNOK) 350 305 300 279 254 250 228 208 201 200 176 171 177 150 150 142 111 101 100 88 50 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H 2023
Slide 18: Production volume increased in Q2, and is expected to continue to increase
Financial review Production volume increased in Q2, and is expected to continue to increase throughout 2023 Quarterly sales volume metformin (HCl & DC) Production volume metformin 1400 1600 1200 1400 1400 1200 1140 1110 1240 1030 1030 1200 1200 1000 950 1060 860 850 1000 920 930 860 890 800 800 600
Slide 19: Revenue: Increased volume from new production line
Financial review Revenue: Increased volume from new production line compared to same quarter last year has resulted in more volumes available for sale 120 107 • Revenue positively affected by a stronger EUR 100 99 101 vs NOK (+17% compared to Q2’22) 92 • Currency neutral revenue increased by approx.
Slide 20: Gross margin: Q2 positively affected by a weaker NOK compared to EUR
Financial review Gross margin: Q2 positively affected by a weaker NOK compared to EUR, partly offset by a stronger USD 80% • Adjusted for currency (EURNOK & USDNOK) and 68% 68% mix, the gross margin is approx. 2% better in Q2’23 70% 64% compared to Q1’23 58% 60% 57% 54% • Gross margin in Q2’22 affec
Slide 21: EBITDA: MNOK 20 vs. MNOK 5 in Q2 2022
Financial review EBITDA: MNOK 20 vs. MNOK 5 in Q2 2022 25 20 • EBITDA positively affected by increased sales 20 volume, competitive energy costs and a strong 15 13 14 EUR vs NOK, partly offset by a strong USD vs 11 10 NOK 10 5 • Q2’22 unfavorably affected by limited sales 5 4 volume available, start
Slide 22: Key figures: income statement
Financial review Key figures: income statement (NOK 1 000) Q2 2023 Q2 2022 YTD 2023 YTD 2022 FY 2022 Total revenue and other income Total revenue and other income 106 729 68 989 207 669 102 208 304 852 EBITDA EBITDA 19 546 4 720 33 688 -13 474 6 184 EBT EBT 9 099 310 5 278 -19 114 -6 009 Depreciatio
Slide 23: Balance sheet
Financial review Balance sheet Assets 30.06.2023 30.06.2022 31.12.2022 ASSETS Non-current assets • Deferred tax asset in relation to Fixed assets 218 433 194 358 219 430 realized loss for Energy Trading in Q1 Deferred tax assets 27 440 32 063 28 601 2020 Total non-current assets 245 873 226 422 248
Slide 24: Balance sheet
Financial review Balance sheet Equity and liabilities 30.06.2023 30.06.2022 31.12.2022 EQUITY AND LIABILITIES Equity Share capital 44 345 44 345 44 345 • Strong balance sheet with an equity ratio of Share premium 206 885 206 885 206 885 72% Retained earnings 26 372 9 629 22 033 Total equity 277 602
Slide 25: Slide 25
Slide 26: Agenda
Agenda Highlights Operational review Financial review Summary Appendix
Slide 27: Producer of two different metformin products
Producer of two Manufacturing Positioned as a Strategically different metformin capacity premium producer in positioned with products a competitive market proximity to key customers • Metformin HCl • Decided in April ‘20 to • Sales to reputable • Delivery time less (bulk API, “fine, dry invest MNOK
Slide 28: Summary
Summary Metformin market expected to continue to grow The long-term renewable energy supply by 5-6% annually agreement signed with Statkraft until 2032 will • Diabetes is one of the largest health crises of the 21st century significantly improve Vistin’s competitive • Metformin is expected to mainta
Slide 29: Slide 29
Slide 30: Agenda
Agenda Highlights Operational review Financial review Summary Appendix
Slide 31: Top 20 shareholders as of 30 June 2023
Appendix Top 20 share- NAME INTERTRADE SHIPPING AS* SHAREHOLDING % SHARE 12 575 000 28,36 % holders as of HOLMEN SPESIALFOND PACTUM AS* 3 520 243 3 519 733 7,94 % 7,94 % 30 June 2023 MP PENSJON PK FERNCLIFF LISTED DAI AS* STORKLEIVEN AS 1 719 848 1 034 280 751 000 3,88 % 2,33 % 1,69 % AUGUST RINGVOL
Slide 32: Thank you for your attention.
Thank you for your attention. www.vistin.com Kjell-Erik Nordby (CEO) Alexander Karlsen (CFO) 23 August 2023