Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Q4 2018 Earnings Presentation
29 slides from Niagen Bioscience's earnings presentation, Mar 7, 2019
Slide 1: Earnings Conference Call Fourth Quarter 2018
hromaDex Earnings Conference Call Fourth Quarter 2018 Rob Fried “"~-e—" Chief Executive Officer Frank Jaksch Co-Founder / Executive Chairman Kevin Farr Chief Financial Officer Nasdaq: CDXC | March 7, 2019
Slide 2: Disclaimers
Disclaimers “This prosnttn and fer writen roa stalemate made rom tno tine by rpresntalves of Chroma0ex conan anwardooking sates within a maaning of Secon BA ih ect tof 53 ne are an acon 21 he Secs cage itl "Fon aig stare eect re i ste Stet Solos tha oe oon ie, uch as 2919 franca aie, onc. be Kes Bee
Slide 3: Q4 and Full Year 2018 Takeaways
Q4 and Full Year 2018 Takeaways Total net sales of $9.1 million in 4 2018 (+20% YoY) and $31.6 million in FY 2018 (+49% YoY) Significant progress on strategy to build TRU NIAGEN into a global brand + TRU NIAGEN net sales of $6.5 milion in Q4 2018 (+143% YoY) and $18.5 milion in FY 2018 (+298% YoY) +
Slide 4: Nestlé Supply and License Agreement
Nestlé Supply and License Agreement Market Size ~ 2018 Est. Key Terms of the Agreement Protein Based Nutrition Drinks" > Upfront payment: S4MiM c i > Cash received in Qi 2019 | 1 ills > Amortized as revenue over minimum of three years > Nests He pease, > Nestlé exclusivity: senha here "> Exclusive r
Slide 5: Building a Global Brand
<= a Global Brand ‘CANADA gS 7 He ac ~— Ss 16° oe ate Ty ne _. “= Pea | F eet THEE ssifes age fe aa Hea, NASDAQ: COxC 5
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 ‘charles Bremer. PRD. dep Tara, PhO eaderBocremst soy Poet Wor Feast they Hatin 2018. ‘4 Bruce German Professor Sk Jtn ‘arma to hen, Weaker PRO Gries of ccna Sey ae ats trversy at Cononoge sage Food Nab, & nonterce wnt, ‘eins onan Shona, ta NASDAQ: CDXC 7
Slide 8: Scientific Update
Slide 9: Science Continues to Expand
Science Continues to Expand + 28 human studies on nicotinamide riboside in various stages + Three new clinical studies since prior update" + University of Colorado, Boulder, Dr. Douglas Seals (January 2019) + Follow-up to Martens 2018 study from University of Colorado, Boulder + Showed trends toward
Slide 10: Cell Reports – Maternal Nicotinamide Riboside Study
+ Cell Reports — Brenner ~ “Maternal Nicotinamide Riboside Enhances Postpartum Weight Loss, Juvenile Offspring Development, and Neurogenesis of Adult Offspring” - Jan. 2019 + First study to examine the NAD metabolome and NR supplementation in the context of lactation and the postpartum period + Resu
Slide 11: Financial Highlights
Slide 12: Q4 Net Sales Mix
Q4 Net Sales Mix Q4 2017 Q4 2018 ” ‘Watson’s/Other B2B Drevwacen pein AGE groin = $7.5MM Drrvwisane $9.1MM = NIAGEN ingredient = *Cemnmeree uy ‘Other Ingredients o core) ‘oe ore) ‘omer ingredients ie ‘on > TRUNIAGEN net sales increased to 71% of net sales in Q4 2018 compared to 35% in Q4 20172) > NI
Slide 13: Q4 Net Sales
Q4 Net Sales Q4 2018 Net Sales Growth Rates ($ in millions) YoY % Q0Q % (vs 04.2017) (vs. Q3 2018) connec TT © rarscen $6.5 Watson'siOther 828 NIAGEN Ingredient Core (1) Other ingredients Total +20% +12% due to initial launch in 2017 NASDAG COX 13 (1) Core inchudes Anstiical Relerence Stondards and
Slide 14: Full Year Net Sales
Full Year Net Sales FY 2018 Net Sales (Sin millions) Growth Rates YoY% (vs FY 2017) von: TT | rece $18.5 Watson's/other 828 i] 35 (+238% YoY) NacEN moreso A +2 com) I + onerinoreions II » 1 Delivered 49% growth, driven by TRU NIAGEN, partially offset by expec |(1) Core includes Anahylical Reference
Slide 15: Q4 vs Q3 2018 Key P&L Metrics
Q4 vs Q3 2018 Key P&L Metrics : (in thousands) 242018 @32018 | Notes Net Sales $9,067 $8,120 TRUNIAGEN business up 24% 4,361 —_Negativaty impacted by the wind down of Purple 30% Com and PURENERGY ingredients (140bps) ‘Selling and Marketing 4,658 4,837 Marketing efficiency improved by 820ps driven by
Slide 16: Q4 2018 Profit and Loss
Q4 2018 Profit and Loss 242018 (tn thousands, excopt EPS) 242018 242017 v.08 2017 Nat Stee : so —r] Gross Margin 3,835 ave Sls ce eB Sales ane rt act Research and Development 1,453, sacamese , 7s General and Administrative ars ober " ‘etal Opeating Exposes —— “s Operating Loss (8,778) ‘Net Loss $ $
Slide 17: (nmitions) wT
N \ (nmitions) wT a “ — ii es es) ma —— @0) 88) q (9.8) (108) ae Tis: Srgiaa amy pare pi eee ee cee er anata ee = oath NASDAQ: CDXC 17
Slide 18: FY 2018 Profit and Loss
FY 2018 Profit and Loss (inthousanis, except EPS) Net Sales Gross Margin 35 et Sle Sales and Marketing Research and Development General and Administrative other 35% tt Sale ‘Total Operating Expenses 359% Net Slee ‘Operating Loss from Continuting Operations Income from Discontinued Operations NetLoss
Slide 19: anmomy
anmomy st pert oss — G4) G32) eoiyconm Tor s.orA rs NaSDAG:coKe 19
Slide 20: Full Year Balance Sheet and Cash Flow Highlights
Full Year Balance Sheet and Cash Flow Highlights 1213017 | Key Drivers (in thousands) 123 Cash used in operations to grow the Cash SREB $45,389 business and i! ght erave in Capex Inventory 8,249 5,796 Increase in inventory, higher advertising and ‘Accounts Payable 9,548 3,719 jalapenos Investments t
Slide 21: 2018 Quarterly Cash Flow
2018 Quarterly Cash Flow (in thousands) 3/31/18 30/18 12/34/48 Net Loss $ (8,443) $ (8,050) $ (8,606) $ (8,218) Cash From / (Used For) Operations (3,988) (6,549) (5,235) (5,136) Cash From / (Used For) Investing (161) on (82) (419) Cash From / (Used For) Financing (202) 13 142 (43) Net Increase / (De
Slide 22: Twelve Months Highlights
Twelve Months Highights (inthowsands) Dec. 2018 Dec. 2017 + Changes in Working Capita mproved, den by change in AP. Netloss $3816) $ (11378) ‘Share-based Compensation ea7t 4.605 zorra Depreciation and Amortization ‘saz 716 AR a Fs Gain from Lab Sales & Other : (6483) Inventory 2477 Changes in Workin
Slide 23: 2019 Financial Outlook
2019 Financial Outlook (in thousands) 2017 Actual 2018 Actual Continiod growth in sales of U.S. €-Commerce, Watson's intemational Net $21,201 $31,557 business, launches in cotan new ae International markets, including cross border Gross Margin % Increased sales of TRU NIAGEN in e- 49% 51% Continued
Slide 24: Appendix
Slide 25: 2017 – 2018 YTD Net Sales Summary
SV crromanex. a 2017 — 2018 YTD Net Sales Summary <= tome — eatin : Pee a ‘iat Fe ee i a a a a reales oom we ot fe to ewes (an nest a pane Raid as a Otherness ois
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ChromaDex Corporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures (In thousands) Net loss. as reported Adjustments: Interest expense (income) Depreciation Amortization of intangibles Share-based Compensation Adjusted EBITDA, ‘Three mon
Slide 27: NIAGEN Has Reached the Significant Milestone of Registered Human Investigations
NIAGEN® has Reached the Significant Milestone of 28 Registered Human Investigations") Clinical Health Outcomes Preclinical > Human > Research Studies 4 published Moreton 190) eet clinical trials of preclinical peer- Sarena NIAGEN® led the way Teviewed studies on clinicaltriats.gov have been publishe
Slide 28: Most Prominent Human Clinical Research Areas for NIAGEN
Neurological, Cardiovascular Health, and Obesity are the Most Prominent Human Clinical Research Areas fo NIAGEN® Human Studies 34% 28% 19% 19% Conditions Studied - Parkinson disease Heart failure - Type 2 diabetes + Immunityinflammation (nsulin sensitivity) ~ Mild cognitive impairment - Hypertension
Slide 29: Contact Info
Contact Info SZ Brianna Gerber \ Senior Director of FP&A and Investor Relations T: +1.949.344.3782 BriannaG@chromadex.com www.chromadex.com