Photocure ASA

Investor Presentation • Nov 2, 2022

Photocure ASA Third Quarter 2022 Results

November 2, 2022

Dan Schneider, President and CEO

Erik Dahl, CFO

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Photocure – presentation of 3rd quarter 2022 results 3

Third Quarter 2022 Highlights:

Positive momentum into Saphira™ launch & improved Medicare reimbursement

+12% Revenue growth +3% Hexvix®/Cysview® unit growth

Karl Storz new blue light launch underway; improved healthcare access globally, staffing shortages remain

7% in-market unit sales growth for Photocure excluding German inventory sell-through

EBITDA NOK 4.7 million Key news and events

Commercial investment to support Hexvix/Cysview growth and launch of upgraded blue light system

\$1 million milestone received from Asieris for Cevira progress

Q3 2022 OPEX remains mostly level with Q4 2021 (excl. Forex)

CMS improves Cysview reimbursement: higher payment for outpatient surveillance procedures expands access in ASC and HOPD settings (post-period: November 2022)

Positive results from LASER III study: outpatient laser-mediated destruction of bladder tumors with BLC® comparable to TURBT surgery

Segment Trends

North America and Europe markets

Covid-19 impact update

Covid more manageable, access expected to remain open through year-end

Staffing shortages remain a challenge

Quarterly Unit Sales Trend Last 3 Years

Global growth continues YoY including German hospital inventory build in Q2

US In-Market Unit Sales

Q3 2022 Trends in North America

• Continued growth of existing base business despite delayed launch of the Karl Storz new blue light system (Saphira™)
• Demand for both Saphira™ and flexible cystoscopy remain very strong. Despite limited equipment, 10 towers (6 rigid & 4 flex) installed in Q3
• Improved Medicare reimbursement to begin January 1, 2023
• Contracting remains an important growth driver; expected to augment higher Medicare reimbursement in HOPD and ASC settings
• Staffing shortages remain a challenge nationwide

Photocure – presentation of 3rd quarter 2022 results

U.S. blue light cystoscope placements

28 BLC tower installations YTD (14 flexible) with new blue light system now rolling out

Annual New Installations Cumulative install base continues strong trend

Rigid Towers Flex Towers

Q3 2022 Trends in Europe

• Third Quarter in-market unit sales +6% (+1% as reported with German hospital inventory sell-through) vs. Q3 2021; inventory work-down expected to complete in Q4
• Price increase in Germany did not impact in-market usage
• Photocure Bladder Cancer Bus at National German Urology Congress (DGU) in September successfully promoting 2023 campaign
• Strong interest for new Karl Storz Saphira™ system in Europe
• Photocure European KOL Faculty continues to work on physician education programs and country-specific BLC advisory boards

Large Untapped Potential in European Market

Established Hexvix Markets

Nordics: ~40% penetration

Active Hexvix Markets

DACH: ~30% penetration Benelux: ~10% penetration

Priority Growth Markets

France, UK, Italy <2% penetration

Untapped EU Markets

Spain, Poland, Baltics, Czech Rep, Hungary, Ireland, Greece, Portugal: ~0% penetration

Change of Trend* in large European Priority Growth Markets continues

France/UK/Italy

Last 2 years CAGR Ipsen: - 8.3% vs. First 2 years CAGR Photocure: + 8.6%

*In-Market Units Sales

Q3 2022 Financials

Segment Performance Third Quarter 2022

North America Segment

in NOK million Amounts	Q3 '22	Q3 '21	Change	YTD '22	YTD '21 Change
Total revenues (1)	42.9	32.0	34%	112.1	90.6	24%
Gross profit	41.4	30.8	34%	108.5	87.8	24%
% of revenue	97%	96%		97%	97%
Direct costs	-38.8	-32.9	18%	-116.9	-94.6	24%
Contribution (2)	2.7	-2.0		-8.5	-6.8
EBITDA	-7.1	-9.8		-35.6	-26.4
% of revenue	-17%	-31%		-32%	-29%

• Q3 revenue growth 34%. In-market U.S. unit sales grew 10%
  • FX impact 14%, price increase 3%
• Q3 & YTD direct costs growth as planned
  • YTD includes NOK 3.7m in expenses related to launch of Canadian operations

Europe Segment

Amounts in NOK million	Q3 '22	Q3 '21	Change	YTD '22	YTD'21 Change
Total revenues	54.0	54.5	-1%	165.6	166.4	0%
Gross profit	50.0	50.8	2%	152.9	154.1	-1%
% of revenue	92%	93%		92%	93%
Direct costs	-25.6	-22.7	13%	-73.5	-61.8	19%
Contribution (2)	24.3	28.0		79.5	92.3
EBITDA	7.2	13.5		31.3	54.2
% of revenue	13%	25%		19%	33%

• Q3 revenue decline 1%. FX impact in Europe -3%
• In-market unit sales grew 1% in Q3; 6% growth excluding German inventory impact
• Headcount & costs increase as planned with improvement in access to care

(1) North America revenue 2021 does not include Canada

Consolidated Income Statement Third Quarter 2022

Amounts in NOK million	Q3 '22	Q3 '21	Change	YTD '22	YTD '21	Change
Hexvix/Cysview Revenue	96.9	86.7	12%	278.2	257.1	8%
Other Revenue	9.8	0.7		10.8	8.9
Total Revenue	106.8	87.4	22%	288.9	266.0	9%
Gross Profit	101.0	82.0	23%	271.9	249.5	9%
Operating Expenses	-96.3	-82.2	17%	-279.6	-225.7	24%
EBITDA	4.7	-0.2		-7.8	23.8
Depreciation & Amortization	-6.1	-6.2		-18.1	-18.1
EBIT	-1.4	-6.3		-25.9	5.7
Net Financial Items	-4.8	-5.1		-16.7	-4.3
Earnings before Tax	-6.3	-11.4		-42.6	1.4
Tax Expenses	-3.7	4.1		-7.8	-4.1
Net earnings	-9.9	-7.3		-50.4	-2.7

Revenue

• Q3 Hexvix/Cysview revenue 12% above last year, driven by volume, price and FX
• Q3 total revenue 22% above last year. Q3 2022 includes USD 1.0 million milestone revenue related to Cevira

Operating Expenses

• Q3 operating expenses increased YoY mainly due to investment in the European commercial operation and increased activity level in North America including start up of Canadian operations as well as FX
• Q3 operating expenses mostly level compared to Q4 2021 (increased 4% due to FX)

EBITDA

Improved Q3 EBITDA driven by milestone revenue of USD 1.0 million related to Cevira

Net financial items

Q3 for both years driven mainly by the Ipsen earnout. YTD 2021 also driven by unrealized currency gain

Cash Flow & Balance Sheet Third Quarter 2022

Amounts in NOK million	Q3 '22	Q3 '21	YTD '22	YTD '21
Operations Cash Flow	21.3	5.5	-2.7	17.6
Earnings before tax	-6.3	-11.4	-42.6	1.4
Depreciation & amortization	6.1	6.2	18.1	18.1
Working capital	5.6	1.5	-14.6	-11.8
Other	15.9	9.2	36.3	9.9
Investments Cash Flow	-0.3	-2.5	-2.3	-2.0
Financing Cash Flow	-10.2	-13.0	-34.0	-20.3
Net Change in Cash	10.8	-10.0	-39.0	-4.7
Amounts in NOK million			30.09.22	31.12.21
Non-current assets	355.7	376.5
Inventory & receivables
			93.1	90.3
Cash & short-term deposits			283.9	322.9
Equity			479.6	502.6
Long-term liabilities			169.1	185.0
Current liabilities			84.0	102.0

Cash Flow

• Net cash flow from operations in Q3 NOK 21.3m, impacted by working capital NOK 5.6m and milestone payment NOK 9.4m
• Net cash flow from financing in Q3 NOK -10.2m includes loan repayment of NOK 6.3m and earnout payments of NOK 8.3m
• Remaining loan NOK 18.8m, will be fully repaid in Q2 2023
• Net cash flow in Q3 NOK 10.8m, cash balance end of Q3 2022 NOK 283.9m

Financial position

• Non-current assets includes intangibles and goodwill from Ipsen transaction totaling NOK 277.4m
• Long-term liabilities includes deferred Ipsen earnout totaling NOK 135.8m
• Equity NOK 479.6m, 65% of total assets

Summary

Summary results

• 12% Hexvix®/Cysview® revenue growth YoY despite ongoing staffing shortages & lack of rigid towers
• 10 towers placed in U.S. during Q3 ahead of broad launch of Karl Storz Saphira™ system
• Strong new account pipeline; U.S. customers awaiting installations of new Blue Light system
• Improved Medicare reimbursement for BLC in surveillance setting enables access to ASC segment
• Europe to benefit from healthcare access re-openings and Saphira™ system launch
• Continuing to drive key initiatives in both commercial regions and with licensing partners
• Photocure is well-positioned for strong organic growth

Anticipated Milestones & Corporate Priorities

• Regain prior sales momentum with improved healthcare access tempered by ongoing staffing shortages
• Execute on launch of upgraded Blue Light system and improved Medicare reimbursement in the ASC and HOPD settings; continue expanding base of BLC® capital equipment in North America
• Further execute on contracting with GPOs and large Hospital/Health Systems in the U.S.
• Continue geographic expansion by penetrating untapped European and Canadian markets, and through additional Hexvix® licensing agreements ROW
• Present/publish additional data from patient registries and other studies on the use of BLC® with Hexvix/Cysview
• Report on progress of partnered companies and license agreements
• Evaluate strategic product or business opportunities that leverage organizational strengths

Leading change in bladder cancer

Q&A