Medistim

Investor Presentation • Aug 16, 2024

Second Quarter and First Half 2024 Financial Results

Kari E. Krogstad President & CEO

Thomas Jakobsen CFO

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Disclaimer

The information included in this Presentation may contain certain forward-looking statements that address activities, events or developments that Medistim ASA ("the Company") expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties.

The Company is subject to a large number of risk factors including but not limited to economic and market conditions in the geographic areas and markets where Medistim is or will be operating, such as IP risks, clinical development risks, regulatory risks, fluctuations in currency exchange rates, and changes in governmental regulations. For a further description of other relevant risk factors, we refer to Medistim's Annual Report for 2023. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements.

The reservation is also made that inaccuracies or mistakes may occur in this information given above about current status of the Company or its business. Any reliance on the information above is at the risk of the reader, and Medistim disclaims any an all liability in this respect.

Agenda

01 - Highlights

Medistim Second Quarter and First Half Financial Results 2024

Medistim Track Record

Sales per year in MNOK EBIT in MNOK and EBIT % Dividend per share in NOK

Highlights Q2 2024

	Q2 2024	QoQ
Revenue	MNOK 144.9 (137.4)	+5.5 %
EBIT	MNOK 41.3 (42.2)	-2.3 %
Currency		+1.4 %

• o New record for quarterly sales
• o Currency neutral sales development:
  • Total sales up 4.1%
  • Own products sales up 1.7% quarter
    • AMERICAS up 6.0%
    • EMEA up 5.0%
    • APAC down 15.5%
• o Operating profit slightly down, however, EBIT margin is normalizing:
  • Q2-24: 28.5% EBIT (30.7%)
  • Q1-24: 24.0% EBIT
  • Q4-23: 16.4% EBIT
• o A dividend of NOK 4.50 (NOK 4.50) per share was paid 6th May, MNOK 82.4 in total

• Third-party products up 17.7%

7

Highlights
H1 2024

• o Currency neutral sales development:
  • Total sales up 3.2%
  • Own products sales up 1.5%
    • AMERICAS up 1.4%
    • EMEA up 17.3%
    • APAC down 23%
  • Third-party products up 12.8%
• o Operating profit slightly down, however, EBIT margin is normalizing:
  • 26.3% EBIT (28.4%)
  • Running operating expenses at a higher level
    • New direct sales organizations in China, Canada and Sweden
    • Double shift in probe production

02 – Financial Statements

Profit & Loss Q2 2024

PROFIT & LOSS	Q2 2024	Q2 2023
All numbers in NOK 1000
Total revenue	144 917	137 386
Cost of goods sold	28 957	29 898
Salary and social expenses	39 836	34 200
Other operating expenses	28 439	25 564
Total operating expenses	97 232	89 662
EBITDA	47 685	47 723
EBITDA%	32,9 %	34,7 %
Depreciation	6 428	5 509
Operating profit (EBIT)	41 257	42 215
EBIT %	28,5 %	30,7 %
Financial income	1 782	838
Financial expenses	(1 622)	2 025
Net finance	3 404	(1 186)
Pre tax profit	44 660	41 028
lax	0 939	8 112
Profit after tax	34 721	32 916

Sales per Quarter (MNOK)

Profit & Loss H1 2024 Sales per Quarter (MNOK)

PROFIT & LOSS	H1 2024	H1 2023	FY 2023
All numbers in NOK 1000
Total revenue	278 704	266 647	526 364
Cost of goods sold	53 936	55 798	112 280
Salary and social expenses	85 905	74 412	162 597
Other operating expenses	52 772	49 481	96 388
Total operating expenses	192 613	179 692	255 944
EBITDA	86 091	86 954	155 099
EBITDA%	30,9 %	32,6%	29.5%
Depreciation	12 767	11 288	23 657
Operating profit (EBIT)	73 324	75 667	131 442
EBIT %	26,3 %	28,4%	25.0%
Financial income	5 366	8 394	17 123
Financial expenses	3 366	8 834	13 352
Net finance	2 001	(441)	3 770
Pre tax profit	75 324	75 226	135 212
Tax	16 223	16 644	31 389
Profit after tax	59 101	58 582	103 823

Balance Sheet Assets

ASSETS	30.06.2024	30.06.2023	31.12.2023
All numbers in NOK 1000
Assets
Intangible assets	56 787	44 646	50 517
Fixed assets	59 363	52 954	63 635
Total intangible and fixed assets	116 150	97 601	114 152
Inventory	164 436	137 308	145 391
Customers receivables	66 473	103 422	74 303
Other receivables	22 734	12 762	18 000
Cash	107 058	90 844	153 872
TOTAL CURRENT ASSETS	360 700	344 336	391 566
TOTAL ASSETS	476 850	441 936	505 718

• o High inventory levels due to company policy of securing stock of critical components and finished goods
• o Reduction in customer receivables
• o Cash position by quarter end was MNOK 107.1
• o Dividend of 82.4 MNOK was paid 6th of May

Balance Sheet Equity & Liability

EQUITY AND LIABILITY	30.06.2024	30.06.2023	31.12.2023
All numbers in NOK 1000
Share capital	4 585	4 585	4 584
Share premium reserve	44 172	44 172	44 172
Other equity	334 497	305 184	349 185
Total equity	383 254	353 941	397 941
Lease obligations	10 320	6 369	9 260
Deferred income	1 622	767	4 233
Total long term liability	11 942	7 136	13 493
Total short term liability	81 654	80 859	94 284
TOTAL EQUITY AND LIABILITY	476 850	441 936	505 718

• o No interest-bearing debt
• o 18.7 MNOK in obligations related to lease contracts, where 10.3 MNOK is long term
• o Deferred revenue related to extended warranty amounted to 1.6 MNOK

Key Figures

KEY FIGURES	Q2 2024	Q2 2023	H1 2024	H1 2023	FY 2023
Equity share	80.4 %	77.7 %	80.4 %	80.1 %	78.7 %
Earnings per share	NOK 1.90	NOK 1.80	NOK 3.23	NOK 3.21	NOK 5.68
Earnings per share diluted	NOK 1.90	NOK 1.80	NOK 3.23	NOK 3.20	NOK 5.67
Average shares outstanding in 1000	18 314	18 264	18 314	18 264	18 267
Average shares outstanding in 1000 diluted	18 314	18 289	18 314	18 289	18 296

Cash Flow

CASH FLOW ANALYSIS	30.06.2024	30.06.2023	31.12.2023
All numbers in NOK 1000
Operating profit for the period	75 324	75 226	135 212
Cash from depreciation, tax and change in working capital	(27 934)	(43 047)	(19 372)
Cash flow from operation	47 390	32 179	115 840
Cash flow from investments	(7 598)	(8 252)	(29 726)
Cash flow from lease obligations and dividends	(86 606)	(85 723)	(84 883)
Change in cash for the period	(46 814)	(61 796)	1 231
Cash at the start of the period	153 872	152 641	152 641
CASH BY THE END OF THE PERIOD	107 057	90 844	153 872

03 Business Segments Update

Medistim Second Quarter and First Half Financial Results 2024

Flow-and-Imaging Systems in

Units (capital sales)

2 more Flow-and-Imaging units sold as capital in Q2 compared to Q2 last year

o 2 more in AMERICAS, sold in Latin America and Canada.

USA sold 4 units which is the same as last year

19

Flow-and-Imaging systems in units sold as capital

Imaging Probes in Units

17 fewer Imaging probes sold

• o APAC down by 16 imaging probes
  • Last order from the former Chinese distributor in Q2 23
  • No probe sales to the distributor in Japan this quarter reflects variation in purchasing pattern

Flow-only Systems in Units

(capital sales)

Capital sales of Flow systems in Q2 down by 6 units

o APAC down by 8 flow systems, highly affected by the transition from distributor to direct sales in China

Flow-only systems in units sold as capital

Flow Probes in Units

Flow probe unit sales down 5% in Q2

• o AMERICAS up 11%
• o EMEA down 3%
• o APAC down 19%
  • Last order from former distributor in China
  • Lower sales to the distributor in Japan due to variation in purchasing pattern

Flow Probes in units

AMERICAS

MNOK 54.8 (53.9) in sales in Q2 MNOK 101.1 (106.0) in sales for the first half

Currency neutral, revenue is up 6.0% for the quarter and 1.4% in the first half year

• o Total number of systems sold as capital, is at the same level as last year, both for the quarter and first half o However, more units were sold in Canada and Latin America, at lower price and margin compared to USA. Further, USA was boosted by a one -off deal of 5 Flow and -Imaging systems in Q1 LY
• o New direct market Canada continues the great start; MNOK 2.4 in Q2 and MNOK 8.2 in H1
• o Distributors in Latin America delivers high growth to MNOK 1.9 in Q2 and MNOK 4.5 in H1

Performance AMERICAS Number of procedures sold in the USA

SYSTEM SALES AND OUTPLACEMENTS Q2 2024		Q2 2023	CHANGE IN %
Capital sales flow	5		-28.6 %
Capital sales flow & imaging	6	4	50.0 %
Outplacement flow			-100.0 %
Outplacement flow & imaging			0.0 %
Total number of units	11	12	-8.33 %

Same total number of MiraQ systems sold as capital and one less outplaced on lease

NUMBER OF PROCEDURES FROM:	Q2 2024	Q2 2023	CHANGE IN %	H1 2024	H1 2023	CHANGE IN %
PPP or lease flow	6 182	6 545	-5.5 %	12 505	13 113	-4.6 %
Flow probes to capital customers	10 765	10 706	0.5 %	23 000	21 000	9.5 %
Total flow procedures	16 947	17 251	-1.8 %	35 505	34 113	4.1 %
PPP or lease imaging	2 027	2 022	0.2 %	4 025	4 173	-3.5 %
Imaging probes to capital customers	1 400	1 200	16.7 %	1 900	2 600	-26.9 %
Total imaging procedures	3 427	3 222	6.4 %	5 925	6 773	-12.5 %
Total flow and imaging procedures	20 374	20 473	-0.5 %	41 430	40 886	1.3 %

Total number of procedures sold*) is flat with Q2 LY

• Flow procedures down 1.8%
• Imaging procedures up 6.4%

*) Procedures are counted based on PPP cards and Probes sold.. the number sold is an estimate for utilization

2 (12) new customers in Q2 and 11 (18) in the first half

APAC

MNOK 17.7 (20.7) in sales in Q2 MNOK 34.6 (44.4) in sales for the first half

Currency neutral, revenue is down 15.5% for the quarter and down 23.3% in the first half year

Growth was challenged by strong Q1 and Q2 from last year;

• o Exceptional high system sales to our distributor for China, prior to Medistim going direct in Q2-23
• o Weak sales to the distributor in Japan so far this year

Decent quarter from our own direct sales operation in China, MNOK 7.3 in sales for the quarter (11.1 MNOK in 2023 through distributor) and 15.7 MNOK for the first half (24.9 MNOK)

EMEA

MNOK 43.7 (41.0) in sales in Q2 MNOK 83.5 (70.1) in sales for the first half

Currency neutral, revenue is up 5.0% for the quarter and up 17.3% in the first half year

o Strong development in direct markets (Spain, Germany, Sweden) with currency neutral growth of 12% for the quarter and 29% for the first half

3rd party products

MNOK 24.4 (20.7) in sales in Q2 MNOK 46.8 (41.5) in sales for the first half

Revenue is up 17.7% for the quarter and up 12.8% in the first half year

• o Highly diversified product portfolio
• o Mentor, Icare and A.M.I. are the biggest contributors
• o New agency from Peters Surgical signed in the first quarter, for Norway and Sweden

Revenue Performance by Region

GEOGRAPHIC SPLIT OF SALES	Q2 2024	Q2 2023	CHANGE IN % -- H1 2024		H1 2023	CHANGE IN %
All numbers in NOK 1000
USA	54 763	53 915	1,6 %	101 134	106 018	-4,6 %
Canada	2 358	348	577,0 %	8 184	3 364	143,3 %
Latin America	1 927	e39	201,4 %	4 480	1187	277,3 %
Total AMERICAS	59 049	54 903	7,6 %	113 798	110 569	2,9 %
China	7 299	11 138	-34,5 %	15 731	24 934	-36,9 %
Japan	3 157	6 560	-51,9 %	6752	12 838	-47,4 %
Rest of APAC	7 293	3 012	142,1 %	12 086	6 664	81,4 %
TOTAL APAC	17 749	20 710	-14,3 %	34 569	44 436	-22,2 %
Europe	41 576	39 079	6,4 %	80 531	67 235	19,8 %
MEA	2 149	1964	9,4 %	3 005	2 899	3,7 %
TOTAL EMEA	43 725	41 043	6,5 %	83 536	70 134	19,1 %
Third party products/other	24 394	20 730	17,7 %	46 802	41 508	12,8 %
TOTAL SALES	144 916	137 385	5.5 %	278 704	266 647	4.5 %

Cardiac and Vascular Sales Split

SPLIT OF SALES BETWEEN CARDIAC SURGERY. VASCULAR SURGERY AND THIRD-PARTY PRODUCTS	Q2 2024	Q2 2023	CHANGE IN %	H1 2024	H1 2023	CHANGE IN %
All numbers in NOK 1000
Sales within coronary surgery	95 648	97 053	-1.4 %	186 182	187 026	-0.5 %
Sales within vascular surgery	24 875	19 603	26,9 %	45 720	38 113	20,0 %
Sales of 3rd party products	24 394	20 730	17,7 %	46 802	41 508	12,8 %
TOTAL SALES	144 917	137 386	5.5 %	278 704	266 647	4.5 %

Flow and Imaging Sales Split

SPLIT OF SALES BETWEEN FLOW PRODUCTS, IMAGING PRODUCTS AND THIRD-PARTY PRODUCTS	Q2 2024	Q2 2023	CHANGE IN %	H1 2024	H1 2023	CHANGE IN %
All numbers in NOK 1000
Flow products	89 312	86 601	3,1 %	174 199	160 213	8.7 %
Imaging products	31 210	30 055	3.8 %	57 703	64 925	-11.1 %
Sales of 3rd party products	24 394	20 730	17,7 %	46 802	41 508	12,8 %
TOTAL SALES	144 917	137 386	5.5 %	278 704	266 647	4.5 %

Recurring vs Capital Revenue

Split between recurring and capital sales (MNOK)

04 Implementing the Strategy

The Growth Strategy

• 1. Convert high-penetrated Flow-only CABG markets to Flow-and-Imaging and the New-Standard-of-Care
  • → Early adopter & KOL support
  • → REQUEST study
  • → Ease conversion with the upgradable MiraQ

2. Grow adoption in under-penetrated markets

• → Clinical marketing, Guidelines, Education
• → Product innovation for ease of use

3. Flexible pricing and business models

• → Entry-level solution in price sensitive markets
• → Price-per-procedure model & capital sales

4. Build position in Vascular surgery

• → Dedicated system MiraQ Vascular & probes
• → Build position with societies and KOLs

5. Expand direct market coverage

→ Get closer to the customer

Medistim Shareholders

RANK	NAME	NUMBER OF SHARES	SHARES IN %	COUNTRY
1	ACAPITAL MEDI HOLDCO AS	1 900 219	10,36 %	Norway
2	State Street Bank and Trust Comp	1 307 240	7,13 %	United States
3	FLØTEMARKEN AS	1 285 000	7,01 %	Norway
4	VERDIPAPIRFOND ODIN NORDEN	1180 000	6,43 %	Norway
5	FOLLUM INVEST AS	970 000	5,29 %	Norway
6	State Street Bank and Trust Comp	919 043	5,01 %	United States
7	Skandinaviska Enskilda Banken AB	829 347	4,52 %	Sweden
8	State Street Bank and Trust Comp	637 398	3.48 %	United States
9	ODIN Small Cap	600 000	3,27 %	Norway
10	VERDIPAPIRFONDET HOLBERG NORGE	547 850	2.99 %	Norway
11	J.P. Morgan SE	512 801	2,80 %	Luxembourg
12	The Northern Trust Comp, London Br	440 375	2,40 %	United Kingdom
13	SKANDINAVISKA ENSKILDA BANKEN AB	398 134	2,17 %	Luxembourg
14	BUANES	381 876	2,08 %	Norway
15	SKANDINAVISKA ENSKILDA BANKEN AB	337 332	1.84 %	Luxembourg
16	BNP Paribas	298 381	1.63 %	Luxembourg
17	BNP Paribas	275 041	1.50 %	Italy
18	Skandinaviska Enskilda Banken AB	255 802	1.39 %	Sweden
19	The Bank of New York Mellon SA/NV	250 000	1.36 %	Belgium
20	Skandinaviska Enskilda Banken AB	238 314	1.30 %	Sweden
	TOTAL 20 LARGEST SHAREHOLDERS	13 564 153	73.97%
	TOTAL SHARES OUTSTANDING	18 337 336		MED