Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q1 2019 Earnings Presentation
25 slides from Niagen Bioscience's earnings presentation, May 9, 2019
Slide 1: Earnings Conference Call First Quarter 2019
- ChromaDex Earnings Conference Call First Quarter 2019 Rob Fried * Chief Executive Officer Frank Jaksch Co-Founder / Executive Chairman Kevin Farr Chief Financial Officer Nasdaq: CDXC | May 9, 2019
Slide 2: Disclaimers
Disclaimers This presentation and other writen or oral statements made from time to time by representatives of ChromaDex contain “forward-looking statements” within the meaning of Section 2TA ol the Secures Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, Forward-look
Slide 3: Q1 2019 Takeaways
Q1 2019 Takeaways + Grew total net sales to $10.0 million in Q1 2019 (+53% YoY, +11% versus Q4 2018) + Demonstrated continued progress building TRU NIAGEN into a global brand with top-line momentum + TRU NIAGEN net sales of $7.5 milion in Q1 2019 (+146% YoY) + Continued strong sequential growth in T
Slide 4: Building a Global Brand
Building a Global Brand it sae HE is expanded retail distribution of TRU NIAGE! ito four new international markets ice September of 2017 NASDAQ: CDXC 4 (1) TRU NIAGEN® was launched on www. truniagen,ca and to health care practitioners at Fullscript Canada in December 2018. It was previously sold on
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
Charles Brenner, Ph.D. ‘Head of Biochemistry University of iowa World's Foremost Authority, ‘on NAD Metabotism Dr. Bruce German ‘Chairman of Food, Nutrition, Health University of California, Davis Leader in Food, Nutrition, & Wellness Innovation Scientific Advisory Board Dr. Rob Beudeker VP of Innov
Slide 7: Scientific Update
Slide 8: Science Continues to Expand
Science Continues to Expand + 29 human studies on nicotinamide riboside in various stages on clinicaltrials.gov + Two new clinical studies since prior update, including one registered with the World Health Organization: + John Hopkins University (April 2019) + Evaluate effects of NR in preventing sm
Slide 9: Recent Published Research on NR
Journal of American College of Cardiology - Smyrnias et al., Kings College London — “Cardioprotective Effect of the Mitochondrial Unfolded Protein Response During Chronic Pressure Overload” — Apr. 2019 + Showed that supplementation with NR helps maintain mitochondrial and cardiac function in an anim
Slide 10: Financial Highlights
Slide 11: Q1 Net Sales Mix
Q1 Net Sales Mix Qi 2018 Qi 2019 _— pena: er TRUNIAGEN ae jatson's/Other 828 E ee @ truniacen eruotier - : $6.6 MM $10.0MM AGEN ngredint @ trv niacen 11% e-Commerce Analytical Reference NIAGEN Ingredient 59% Other Ingredients Standards & Services 19% bis 18% Reseraee Analytical Referer SERS Other in
Slide 12: Q1 Net Sales
Q1 Net Sales Q1 2019 Net Sales Growth Rates ($ in millions) YoY % Q0Q % (vs Q1 2018) (vs Q4 2018) -C z von EE © | gr sscex $7.4 Analytical Reference - i Standards & Services (1) 3 on natens o 8 Total +53% +11% Continued strong growth in e-Commerce and Watson’s, partially offset by expected lower ing
Slide 13: Q1 2019 vs Q4 2018 Results
(in thousands) Q1 201 Q4 2018 Notes TRU NIAGEN business up 15% with e-Commerce Net Sales $ 10,048 $ 9,067 and Watson's each up double digits Gross Profit % of Net Sales and Marketing % of Net Soles Research and Development 1,168 1,275 Slightly down quarter-over-quarter "Higher by $1.4MM primarily dr
Slide 14: Q1 2019 vs Q1 2018 Results
(in thousands) Q1 201 Q1 2018 Notes TRU NIAGEN business up 146%, with e-Commerce Net Sales $10,048 $6,567 45.220% and Watson's up 146% Gross Profit 500 bps improvement driven by favorable mix shift 1% of Net Sales and Marketing 4,174 3,269 Marketing efficiency improved by 820bps driven by % of Net S
Slide 15: Q1 2019 Operating Loss vs 2018
Q1 2019 Operating Loss vs 2018 \ ; \f | ( os . (0.9) gq 03 a ee {in millions) (5.5) (6.0) (6.5) (7.0) (7.5) (8.0) (es) (84) 03) (20) QL FYI8 Actual Volume Gross Margin: ‘Sales & Marketng. Equity Comp: Lat hited Royalties: Otter Gea aris Opening tons inerrant (ony eceare penis NASDAQ: CDXC 15.
Slide 16: Q1 Balance Sheet and Cash Flow
Q1 Balance Sheet and Cash Flow Highlights (in thousands) 3/31/19 3/31/18 Key Drivers Cash used in operations to grow the business and higher IT related CapEx Cash $19,327 $ 41,037 Inventory 8,670 5,063 Investments to support growth in 2019 Increase in inventory, higher advertising and legal expenses
Slide 17: Quarterly Cash Flow Highlights
Quarterly Cash Flow Highlights (in thousands) 3/31/18 6/30/18 9/30/18 12/31/18 $ (8,443) $(8,050) —$ (8,606) $ (8,218) 2,984 Cash From / (Used For) Operations") (3,988) (6,549) (5,136) Cash From / (Used For) Investing (161) (1,113) Cash From / (Used For) Financing (202) 13 (43) Net Increase / (Decre
Slide 18: 2019 Financial Outlook
2019 Financial Outlook {in thousands) 2017 Act PEP CTEE 2019 Outlook Key Drivers U.S. e-Commerce, Watson's international business, launches in certain new international markets, including cross border Continued growth in sales of TRU NIAGEN Net Sales $21,201 $31,557 Gross Margin % Increased sales of
Slide 19: Appendix
Slide 20: Net Sales by Category and Growth Rates
(in millions) Description Ecommerce (a) Watsons Intemational / Other (b) Total TRU NIAGEN NIAGEN Ingredient 'NIAGEN Related Revenues ther Ingredients CORE YOY Growth Rate - Net Sales Total Company NIAGEN Related Total TRU NIAGEN Sequential Growth Rate - Net Sales Total Company NIAGEN Related Total T
Slide 21: Reconciliation of Non-GAAP Financial Measures
Measures ChromaDex Corporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures (In thousands) Three months ended Mar. 31, 2019 Mar. 31, 2018 Net loss, as reported $ (8,337) $ (8,443) Adjustments: Interest (income) expense (35) 44 Depreciation 173 121 Amortization of intangibles 61 58
Slide 22: NR has Reached the Significant Milestone of Registered Human Studies
NR has Reached the Significant Milestone of 34 Registered Human Studies") Preclinical Clinical Health Research Outcomes More than 100 34 studies are “4 published reclinical peer- currently registered cheilcal studies of Pre: pee ney red NIAGENG® led the way reviewed studies on clinicaltrials.gov hav
Slide 23: Neurological, Cardiovascular Health, and Obesity are the Most Prominent
Neurological, Cardiovascular Health, and Obesity are the Most Prominent . NIAGEN® SREERES Human Studies 38% 26% 18% 18% Conditions Studied ~ Parkinson disease - Heart failure - Type 2 diabetes - Immunity/inflammation : (Insulin sensitivity) heats - Mild cognitive impairment - Hypertension - Aging ee
Slide 24: Market Size — 2018 Est. and Nestlé Agreement
Market Size — 2018 Est. Protein Based Nutrition Drinks) > Few major Intl players . > Nestlé Health ~$2.0Bil Science has a significant share us. Medical Nutrition?) > Few major players > Nestlé Health Science has a ~$16Bil Intl. significant share Nestlé Supply and License Agreement .< Key Terms of th
Slide 25: 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