Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q3 2020 Earnings Presentation
25 slides from Niagen Bioscience's earnings presentation, Nov 4, 2020
Slide 1: Earnings Conference Call Third Quarter 2020
(> ChromaDex. TRU NIAGEN ChromaDex Earnings Conference Call Third Quarter 2020 Rob Fried Chief Executive Officer Frank Jaksch Co-Founder / Executive Chairman Kevin Farr Chief Financial Officer Nasdaq: CDXC | November 4, 2020 1
Slide 2: ChromaDex TRU NIAGEN
e€ ChromaDex. TRU NIAGEN
Slide 3: Q3 2020 & Recent Highlights
Q3 2020 & Recent Highlights Y Strong sequential top-line growth in the core business, e-Commerce (+7%) and Watsons (+93%), after a temporary slowdown due to the coronavirus last quarter. ¥ Total company net sales down 7% and TRU NIAGEN up 2% sequentially due to a tough comparison ($1.6 million Horiz
Slide 4: Management Team
Management Team Rob Fried — Chief Executive Officer Mr. Fried is an Academy Award and Emmy Award winning motion picture producer. He has held senior roles at entertainment companies Savoy Pictures (CEO), Columbia Pictures (Executive Vice President) and Fried Films (founder, CEO). He has also founded
Slide 5: Scientific Update
Scientific Update
Slide 6: Scientific Advisory Board
Scientific Advisory Board Rudolph Tanzi, Ph D Charles Brenner, PhO Roger Kornberg, Ph.D ‘Aled E Mann Famiy Chairman ‘Kennedy Professor of Founsaton Chat. Professor of Structural Neurology Department of Diabetes & Boooy Harvard University Career Merabousm Stanford University City of Hope Leading Alhe
Slide 7: Most prominent human clinical research areas for Niagen
Most prominent human clinical research areas for Niagen® are vitality, locomotion, cognition, and sensory viraurry (nc, Crdlovascuey, LocomoTion (coenTON sensory Metabolic) {Mearologieat) Hum 9% 20% My 0% Concons Stued {ype Diabetes (sun Parkinson's Oisase a Concussion Nowopatis (eg ibote Stet) Need
Slide 8: Science Continues to Expand
Science Continues to Expand + Two new human studies on nicotinamide riboside initiated since prior update:(") + University of Health & Sciences Istanbul, Training and Research Hospital, Turkey, in collaboration with ScandiBio Therapeutics (September 2020) The objective is to assess the clinical effi
Slide 9: Recent Peer-Reviewed Publications
Recent Peer-Reviewed Publications + The Journal of Clinical Investigation — Zhou et al., 2020 August 2020 + Second clinical study focused on the potential cardiovascular benefits of nicotinamide riboside ("NR") supplementation in humans. + According to the lead researchers, by increasing the mitocho
Slide 10: Financial Highlights
Financial Highlights
Slide 11: Q3 2020 Net Sales Mix
Q3 2020 Net Sales Mix Q3 2019 Q3 2020 <= vn te merits $12.1 MM $14.2MM a RY cero a) a Analytical Reference NIAGEN Ingrediont berets Standards & Services (1) 1% >» TRU NIAGEN net sales increased to 84% of net sales in Q3 2020 compared to 81% in Q3 2019) > NIAGEN-related net sales increased to 90% of
Slide 12: Q3 2020 Net Sales
Q3 2020 Net Sales Q3 2020 Net Sales Growth Rates ($ in millions) YoY % Q0Q % (vs Q3 2019) (vs Q2 2020) $11.9 NIAGEN Ingredient | 09 +20% 56% Analytical Reference Standards & Services (1) Other Ingredients | 06 424% 26% Total +18% T% Continued strong growth in TRU NIAGEN, NIAGEN and other ingredients
Slide 13: Year-to-Date 2020 Net Sales
Year-to-Date 2020 Net Sales YTD 2020 Net Sales ($ in millions) YoY % (vs YTD 2019) e-Commerce Watson's & Other B2B. NIAGEN Ingredient Fy 48 +65% Analytical Reference m ere Standards & Services (1) 30% Other Ingredients | 20 +67% Total 432% Continued strong growth in, TRU NIAGEN, NIAGEN and other ing
Slide 14: 2018 — 2020 YTD Net Sales Summary
2018 — 2020 YTD Net Sales Summary (lo miions) Description Ecommerce 13835 T1739 27582 BT 37] Watsons os 03 2300449731843] 285 Internationa Oth 04 00 03 04 131123] Total TRU NIAGER 30 3 97 002 61 | 119 NIAGEN ingredient 1313 o7 20 4920 20 | os ‘IAGEN Related Revenues 4367 705 2141.0 —ta.1 Tar | 128)
Slide 15: Q3 2020 vs Q2 2020 Key P&L Metrics
Q3 2020 vs Q2 2020 Key P&L Metrics (in thousands) Q3 2020 22020 | Notes ‘TRU NIAGEN business up 2% driven by global eCommerce and Net Sales $14,180 $15,287 Watsons, partially offset by the $1,.6MM purchase by Honzon. Ventures in Q2 2020, which did not repeat) Up 20bps driven by product cost savings
Slide 16: Q3 2020 vs Q3 2019 Key P&L Metrics
Q3 2020 vs Q3 2019 Key P&L Metrics (in thousands) @3 2020 32019 | Notes TRU NIAGEN business up 22% with growth in global e-commerce, Net Sales $14,180 $12,053 Watsons, international launches (Australia, U.K.) and new platforms (Persona Nutrition) Gross Profit 8,454 6,749 Up 360bps driven by favorabl
Slide 17: Adjusted EBITDA Summary
Adjusted EBITDA Summary ChromaDex Corporation and Subsidiaries Reconeilation of Non-GAAP Financial Measures (in thousands) Three months ended Mar 31, Jun 30, Sep 30, Dec.31, Mar 31, Jun.30, Sep. 30, Dect, Mar 31, Jn.90, Sep. 30, 20182018018 2018201919201 2019 202020202020 Net oss, as reported $ (8.4
Slide 18: Q3 2020 Operating Loss vs Q3 2019
{in millions) (2.0) (3.0) (4.0) (5.0) (6.0) (7.0) (8.0) (6.9) Q3 FY19 Actual Operating Loss. Q3 2020 Operating Loss vs Q3 2019 42 Volume 05 @ Gross Margin Improvement TRU NIAGEN Legal Equity Comp (G+A) R+D Decrease Other Gea = (0.8) (0.2) Sales & Marketing ‘Severance and Restructuring Q3 FY20 Operat
Slide 19: Quarterly Balance Sheet Highlights
Quarterly Balance Sheet Highlights (in thousands) 12/31/18 | 3/3119 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 Cash used in operations to Cash $22,616 $19,327 $19,760 $18.879 | $48,812 $13,608 $18,890 $15,478 grow the business plus $5 milion capital raise Investments to support Inventory 8,249
Slide 20: Quarterly Cash Flow Highlights
Quarterly Cash Flow Highlights (in thousands) | FY 2018 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | FY 2019 | 3/31/20 | 6/30/20 | 9/30/20 | YTD 2020 Net Loss. $(33,316) $ (8,337) $(7,755) $(7,202) $ (8,853) S(B2447) $(5,902) $(3,711) $(4,215) | $113,828) Working Capital 5050 2.888") (3.969) (2,943) 3,0
Slide 21: 2020 Financial Outlook
2020 Financial Outlook (in thousands) 2018 Actual 2019 Actu 2020 Outlook | Key Drivers Continued growth in top-line but lower than 2019 growth rate due to: Growth driven by U.S. e-Commerce business, Net Sales $31,557 $46,291 + Larger revenue base launches in new international markets (U.K. and + Cor
Slide 22: Adjusted EBITDA 2018 vs 2019
Adjusted EBITDA 2018 vs 2019 x Corporation and Subsidiaries jion of Non-GAAP Financial Measures. (In thousands) Year ended Year over Year Dec 31,2018 Dee. 34, 2079 Change Net loss, as reported” s (33,316) $ (32,147) s 4,169 Adjustments Interest (income) expense 79 847 768 Depreciation 607 762 155 ‘A
Slide 23: Cash Flow Break-even Framework
Cash Flow Break-even Framework Quarterly P&L Framework? Somsenrs + U.S. e-Commerce marketing efficiency -$17 milion _* Watson's international business Net Sales to 2319 milion 7 Acceleration in cross border launches ° + Successful launch with Nestle + Now business / market opportunities aroaa marae
Slide 24: Q3 2020 Financial Highlights - Recap
Q3 2020 Financial Highlights - Recap + Total net sales of $14.2 million in Q3 2020 (+18% YoY, -7' fo versus Q2 2020) + Demonstrated continued progress building TRU NIAGEN into a global brand + TRU NIAGEN net sales of $11.9 million in Q3 2020 (+22% YoY) + Continued sequential growth in TRU NIAGEN net
Slide 25: 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 TRU NIAGEN