Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q4 2019 Earnings Presentation
31 slides from Niagen Bioscience's earnings presentation, Mar 10, 2020
Slide 1: Earnings Conference Call Fourth Quarter 2019
ChromaDex Earnings Conference Call Fourth Quarter 2019 Rob Fried Chief Executive Officer Frank Jaksch Co-Founder / Executive Chairman Kevin Farr Chief Financial Officer S chromadex TRU NIAGEN Nasdaq: CDXC | March 10, 2020 1
Slide 2: ChromaDex TRU NIAGEN
Ee ChromaDex TRU NIAGEN
Slide 3: Q4 2019 Takeaways
Q4 2019 Takeaways Grew total net sales to $13.1 million in Q4 2019 (+44% YoY, +9% versus Q3 2019) Demonstrated continued progress building TRU NIAGEN into a global brand with top-line momentum + TRU NIAGEN net sales of $10.2 million in Q4 2019 (+57% YoY) + Continued sequential growth in TRU NIAGEN n
Slide 4: FY 2019 Takeaways
FY 2019 Takeaways + Grew total net sales to $46.3 million in 2019 (+47% versus 2018) + Expanded TRU NIAGEN business globally with retail and e-commerce launches in Canada, and cross border launches on TMall in China and Amazon in Japan TRU NIAGEN net sales of $36.1 million in 2019 (+96% YoY) + Gross
Slide 5: Build a Global Brand
Build a Global Brand ‘CANADA(a) UK(b) Amazon Amazon Truniagen.ca Retail Partner Selected Retailers. 2020 CHINA ‘April 2019. Truniagen.cn ‘Tmall Y SINGAPORE Watsons January 2018 HONG KONG Watsons September 2017, AUSTRALIA Matakana Superfoods March 2020 NEW ZEALAND Matakana Superfoods September 2018 G
Slide 6: 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 7: Scientific Advisory Board
Scientific Advisory Board Rudolph Tanzi, Ph.D. Charles Brenner, Ph.D. Roger Kornberg, Ph.D. Head of Biochemistry Chairman Kennedy Professor of University of lowa Professor of Structural Neurology Biology Harvard University World's Foremost Authority Stanford University on NAD Metabolism Leading Alzh
Slide 8: Scientific Update
Scientific Update
Slide 9: Science Continues to Expand
Science Continues to Expand + 39 human studies on nicotinamide riboside in various stages on clinicaltrials.gov’ + Three new clinical studies since prior update : + Virginia Commonwealth University (November 2019) + Examining whether the use of antioxidant supplements impacts exercise intolerance in
Slide 10: Recent Peer-Reviewed Publications
Recent Peer-Reviewed Publications + Aging and Mechanisms of Disease, member of Nature Partner Journals — Okur et al., 2020 — “Short-term NAD+ supplementation prevents hearing loss in mouse models of Cockayne syndrome” — Jan. 2020 + Demonstrated a dose-dependent reduction of hearing loss from NAD sup
Slide 11: Financial Highlights
Financial Highlights
Slide 12: Q4 2019 Net Sales Mix
Q4 2019 Net Sales Mix Q4 2018 Q4 2019 e-Commerce 57% Watson's & e-Commerce International 60% 17% Other Ingredients NIAGEN Ingredient oe 15% MIAGEN Ingredient Watson's® International 14% Analytical Reference % Analytical Reference Standards & Services (1) Standards & Services Other Ingescients 7% (1)
Slide 13: Q4 2019 Net Sales
Q4 2019 Net Sales Q4 2019 Net Sales Growth Rates ($ in millions) YoY % Q0Q % (vs Q4 2018) (vs Q3 2019) e-Commerce Watson's & International NIAGEN Ingredient Analytical Reference Standards & Services (1) Other Ingredients | 041 -76% -17% Total +44% +9% Continued strong growth in TRU NIAGEN sales and
Slide 14: FY 2019 Net Sales
FY 2019 Net Sales FY 2019 Net Sales Growth Rates ($ in millions) YoY % (vs FY 2018) $36.1 Watson's & Internationa! I «0 +1469 NIAGEN Ingredients LJ 49 6% Analytical Reference 40 Standards & Services (1) Other Ingredients J 13 61% oconmee Es ?:\¢ 0. Total +47% ‘Commerce and Watso continues to y, ly o
Slide 15: Q4 2019 vs Q3 2019 Key P&L Metrics
Q4 2019 vs Q3 2019 Key P&L Metrics TRU NIAGEN business up 4% with growth in U.S. e- Net Sales $ 13,089 $ 12,053 commerce and international cross border platforms, partially offset by slightly lower Watsons sales Up 100bps driven by favorable mix with growing TRU Gross Profit aes 6,749 NIAGEN e-comme
Slide 16: Q4 2019 vs Q4 2018 Key P&L Metrics
Q4 2019 vs Q4 2018 Key P&L Metrics (in thousands) Q4 201 Net Sales $ 13,089 Gross Profit 7,465 % of Net Sales 97.0% Selling and Marketing 5,108 % of Net Sales 39.0% Research and Development 1,139 General and Administrative 10,078 Other (0) Total Operating Expense 16,325 Operating Loss $ (8,860) (1)
Slide 17: Q4 2019 Operating Loss vs Q4 2018
Q4 2019 Operating Loss vs Q4 2018 (6.0) (7.0) (8.0) (8.2) 24 (9.0) (8.9) (10.0) (2.2) (21.0) 07 oy . (12.0) (05) a oa =a) (0.3) (13.0) 40) (4m) QUFYI8 Actual Elysium Bad Debt Other GrA Sales & Marketing Royalties Legal RO Equity Comp Gross Margin: Volume Cola Operating Loss: Decrease (Gea) Improveme
Slide 18: Adjusted EBITDA Summary
Adjusted EBITDA Summary ChromaDex Corporation and Subsi ies Reconciliation of Non-GAAP Financial Measures (In thousands) Three months ended Mar. 31, Jun. 30, Sep. 30, Dec. 31 Mar. 31, dun. 30, Sep. 30, Dec. 31, 2018 2018 2018 2018 2019 2019 2019 2019 Net loss, as reported" $(8,443) $(8,050) $(8,605)
Slide 19: FY 2019 vs FY 2018 Key P&L Metrics
FY 2019 vs FY 2018 Key P&L Metrics 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 international cross border platforms. Gross Profit 25,769 16,055 Up 480bps driven by favorable mix with growing TRU % of Net S
Slide 20: 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. 31, 2019 Change Net loss, as reported" s (33,316) $ (32,147) s 1,169 Adjustments Interest (income) expense 79 847 768 Deprecia
Slide 21: Quarterly Balance Sheet Highlights
Quarterly Balance Sheet Highlights (in thousands) 12st | 3/319 | 6/30/19 Cash used in operations to grow Cash $ 22,616 $ 19,327 $ 19,760 $18,879 $ 18,812 the business. Includes $17 million from capital raise. Inventory 8,249 8,670 10,714 9,820 11,535 Investments to support growth mae i Includes non-
Slide 22: Quarterly Cash Flow Highlights
Quarterly Cash Flow Highlights (in thousands) Net Loss $(33,316) Working Capital 5,059 Cash From / (Used For) Operations 20208 Cash From / (Used For) Financing (90) Net Increase / (Decrease) in Cash $(22,773) 3/3119 | 6/30/ $ (8,337) (3,048) $ (3,289) 9/30/19 12/31/19 | FY 20 $ (7,755) $ (7,202) $ (
Slide 23: 2019 Full Year Guidance Recap
2019 Full Year Guidance Recap (in thousands) 2018 Actual 2019 Guidance 2019 Actual Total net sales grew by +47% Net Sales $31,557 Sere OCR of $46,291 and TRU NIAGEN net sales Y grew by +96% year-over-year Gross Margin % 50.9% Continued improvement 55.7% ileal ta a year- v (as a % of net sales) fe Se
Slide 24: 2020 Financial Outlook
2020 Financial Outlook (in thousands) 2018 Actual 2019Actual Puyerers | Key Drivers Strong growth in top-line, with U.S. e-Commerce, new international Net Sales $31,557 $46,291 moderate impact from markets, such as the U.K. and Australia, and coronavirus in Q1 2020 new platforms, such as Persona Nut
Slide 25: Cash Flow Break-even Framework
Cash Flow Break-even Framework Q2 2019 + 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) ~$17 million Net Sales to ~$19 million Gross Margin % (as a % of net s
Slide 26: Appendix
Appendix
Slide 27: 2018 — 2019 YTD Net Sales Summary
2018 — 2019 YTD Net Sales Summary (In millions) scription 2 y E Ecommerce (a) 18 35 44 52 15.0 59 65 7A 79 275 Watsons 08 03 07 12 29 13 19 2 19 73) International / Other (b) 04 00 0.1 01 06 03 03 0. 04 13) Total TRU NIAGEN 30 37 52 65 18.5 75 87 9. 10.2 36.1 NIAGEN Ingredient 13 19 1.0 10 52 44 14
Slide 28: NR has reached the significant milestone of registered human studies
NR has reached the significant milestone of 46 registered human studies") Preclinical Clinical Health Research Outcomes 5 published clinical studies of NIAGEN® led the way More than 100 46 studies are preclinical peer- currently registered reviewed studies on clinicaltrials.gov have been published i
Slide 29: Most prominent human clinical research areas for Niagen
Most prominent human clinical research areas for Niagen® are neurological, cardiovascular, and metabolic health NEUROLOGICAL CARDIOVASCULAR METABOLIC Human Studies 35% 30% 10% 25% Conditions Studied - Parkinson disease - Heart failure - Type 2 diabetes - Immunity/Inflammation (Insulin sensitivity) M
Slide 30: 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 31: ChromaDex Contact Info
e ChromaDex 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