Gentian Diagnostics ASA

Investor Presentation • Aug 25, 2022

Q2 22 Presentation

August 25th, 2022

Important notice

This presentation has been prepared by and is the sole responsibility of Gentian Diagnostics ASA (the "Company" or "Gentian"). The presentation is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The information herein and any other material discussed is subject to change.

The presentation contains certain forward-looking statements relating to the business, future financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any forward-looking statements contained herein, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts

which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Potential investors are expressly advised that financial projections, such as the revenue and cash flow projections contained herein, cannot be used as reliable indicators of future revenues or cash flows. The Company (nor any of its parent or subsidiary undertakings) does not provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. No obligation is assumed to update any forward-looking statements or to conform these forwardlooking statements to our actual results.

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Efficient diagnostics for better treatment decisions

The growing diagnostic market puts increasing pressure on laboratories. Still, many of the existing, clinically relevant biomarkers are only available on slow and inefficient platforms.

By converting biomarkers to the most efficient automated, high-throughput analysers, Gentian contributes to saving costs and protecting life.

Introduction and highlights

Portfolio of high-impact tests provides solid growth opportunity

7* tests contributing to saving costs and protecting life

Ambition to bring a steady stream of high-impact diagnostic tests to market

Annual revenue ambition of NOK 1bn in 4-6 years**

USD 1.3bn serviceable market with 8-9% annual growth

Industry leading team and knowhow

Team with proven trackrecord and industry expertise

~27% average annual revenue growth 2018-21

2 'blockbuster' tests in market and product development

Products targeting large and growing disease groups

DISEASE GROUP		PRODUCT	APPLICATION	ATTRACTIVE CLINICAL BENEFITS
Kidney disease		Cystatin C	Early detection of reduced kidney function	Preventing severe kidney failure
Inflammation & infection	fCAL		Fast diagnosis of inflammatory bowel disease	Reducing time-consuming and costly colonoscopy
		GCAL	Early detection of severe infections, including sepsis	Reducing chance of fatality and treatment costs
		SARS-CoV-2 Ab	Measuring COVID-19 immunity	Supporting community management
		Canine CRP	Early detection and diagnosis of inflammation in dogs	High relevance of results due to dog specific CRP
Cardiac		NT-proBNP	Diagnosis, monitoring and assessment of congestive heart failure	Contributing to standardization of NT-proBNP assays
Pancreas		fPELA	Diagnosis of pancreatic elastase insufficiency in combination with fCAL	Reducing time-consuming and costly colonoscopy

USD 1.3bn global serviceable market estimated to grow by 8-9% annually next 4-6 years

	Total Addressable Market, USDbn	Total Serviceable Market, USDm	Target market share, unrisked	Gentian's revenue take	Serviceable Market annual growth rate, next 4-6 years
Established products	1.5	180	~25%	30-50%	5-10%
GCAL	2.0	300	~15%	30-50%	15%
NT-proBNP	1.6	800	~15%	30-50%	5-8%
SARS-CoV-2 Ab	2.0	20	~25%	50%	n.m.
Total	7.1	1,300	15-20%	30-50%	8-9%

Key risks include market adoption rates for GCAL, and successful launch of NT-proBNP

Sources: Kalorama 2020, company estimates. Note: Potential upside from 3 biomarkers in exploration and 'proof of concept' not included.

Good progress made on NT-proBNP product development

About NT-proBNP

Measuring NT-proBNP levels in plasma supports diagnosis of congestive heart failure. The Gentian assay will be the first test of its kind available on high-throughput analysers. It is equally precise as the currently available expensive and slower assays and can contribute to better diagnosis, monitoring and treatment. Additional benefits may include results standardization, which is a current issue with the existing assays in the market.

• Good progress made on NT-proBNP during the quarter; promising new immunoparticle candidate identified
• Earlier issues related to interference and weak signal strength appear to be less pronounced with the modified candidate
• More investigations required to further improve signal strength, clinical samples must be tested to reproduce early findings and calibration of assay towards established products needs to be achieved
• In line with established practice, should the current optimisation efforts prove unsuccessful, the company will consider returning the project to the exploration phase

Dedicated and experienced management team

CEO Hilja Ibert

25+ years' experience from the international diagnostic industry, including VP International Diagnostic Solutions at Hologic and senior positions within Becton Dickinson and bioMerieux. She was previously the CEO for miDiagnostics in Belgium. Dr. Ibert holds a PhD degree in Nutrition Science from the University of Bonn, Germany.

CFO & COO

20+ years experience and extensive track-record from financial management and reporting, corporate governance and Investor Relations. Mr. Kind has served as the CFO for TiZir, UK, Business Analyst in Eramet Comilog Manganese, France, and Investment Director in Tinfos. Kind holds a MSc from BI Norwegian Business School.

Njaal Kind

CSO Erling Sundrehagen

Erling Sundrehagen, cofounder of Gentian, holds 25 int. patents. He has headed the development of a dozen diagnostic products, creating businesses with NOK 1bn+ revenue. Dr. Sundrehagen held management positions in Axis-Shield, Axis Biochemicals and Axis Research, and is dr.med. & cand.real from University of Oslo, Norway.

VP R&D Torsten Knüttel

18+ years' experience from the diagnostic industry and commercial supply chain. His background includes OEM/B2B business development at Thermo Fisher Scientific and development and production at GE Healthcare. He holds a PhD in Chemistry from the Leibniz University Hannover, Germany.

VP Clinical Affairs Alexandra Havelka

Extensive experience in laboratory medicine. She was previously Biochemist and Unit Manager at Karolinska University Laboratory, with research focusing on biomarkers for inflammation and infection. Dr Havelka holds a PhD in Experimental Oncology from Karolinska Institute in Stockholm, Sweden.

VP Global Sales Markus Jaquemar

30+ years experience in life science and diagnostics commercialisation and marketing. He held marketing, sales and business management positions at Beckman Coulter, Agilent Technologies and Becton Dickinson. He holds a Master's degree in Biology from Vienna University, Austria.

VP BD Jack Andreassen

20+ years of experience from sales, market and business development from the global diagnostics industry. He was previously Associate Director, Global Market Development for OEM at Thermo Fisher. He holds a Msc in Chemistry, Biochemistry/Molecular Biology from the University of Oslo, Norway.

Norway.

VP QA & RA Anne-Mette Horsrud Akre

20+ years of pharma industry experience, including production of pharmaceuticals and medical devices, quality management and assurance and management positions at GE Healthcare and Fresenius Kabi. She holds a Msc in Biotechnology from the Technical University of Trondheim,

Three new board members adding complementary competence

Tomas Settevik	Espen T. Jørgensen	Tomas Kramar	Kari E. Krogstad	Susanne Stuffers	Fredrik Thoresen	Monika Neuman	Frank Frantzen
Chair of the Board	Board member	Board member	Board member	Board member	New board member	New board member	New board member
Tomas Settevik has experience in both life sciences and retail and is currently an independent investor and non exec director in several companies. He was previously CEO of Stokke, and CEO of Pronova BioPharma after serving as Vice President Pharmaceuticals and Manufacturing. Mr. Settevik has also held several senior positions – VP Northern Europe, VP Marketing and R&D, and Managing Director UK/Nordic – at Tyco Healthcare EMEA. Mr. Settevik holds a degree from Copenhagen Business School.	Espen Tidemann Jørgensen is currently Portfolio Manager of Holta Invest and Managing Director of Holta Life Sciences, a large shareholder in Gentian Diagnostics. He has 18 years of financial markets experience as equity analyst at DNB Markets and investor. Mr. Jørgensen was previously member of the Board of Directors at Weifa and Cortendo and is currently board member at Decisions. Mr. Jørgensen holds a Msc in Economics and has completed 3 years of Medicine studies at the University of Oslo.	Mr. Kramar has more than 40 years of experience from the diagnostic industry including Siemens, Abbott and Roche Diagnostics. Mr. Kramar has held several senior positions like Global Business Manager, Business Director and CEO, as well as being a founding partner in the Kramar Group. In addition, Mr. Kramar has held several board positions over the years. Mr. Kramar holds an MSc degree in Chemistry from the Faculty of Engineering at Lund University in Sweden.	Kari Krogstad has more than 25 years of experience from the biomedical industry, from commercial leadership roles within the pharma, biotech and medtech sectors. Ms. Krogstad has held her current role as President and CEO at Medistim ASA since 2009. She was previously General Manager at Invitrogen Dynal. Ms. Krogstad holds a Cand. Scient. degree in Molecular Biology from the University of Oslo as well as a Business degree from IHM Business School.	Susanne Stuffers is currently managing partner of P53 Invest AS. Previously she was an equity analyst with Arctic Securities covering the healthcare sector, and management consultant at EY. Ms. Suffers has held medical and commercial roles at Novartis and has had clinical practice as a resident in oncology at OUS Ullevål. Ms. Stuffers holds an M.D. degree from the Erasmus University Rotterdam and a Ph.D. degree in cancer biomedicine from the Norwegian Radium Hospital.	Fredrik Thoresen is a partner in Andenaesgruppen where he joined in 2021. Mr. Thoresen has previous buy and sell-side experience from Storebrand, SEB, DNB and Sector Asset Management. Mr. Thoresen has an MBA in International Business from Middlebury Institute of International Studies, Monterey, California and a bachelor's degree in Computer Science and Economics from Augustana University, Sioux Falls, South Dakota	Monika Neuman has 20 years of experience from the diagnostics industry and is currently Managing Director for Sarstedt Group in the Nordics. During the past 4 years, Ms. Neuman has been working at Siemens Healthineers Laboratory Diagnostics HQ in Tarrytown, NY, to set a successful strategy for launch and implementation of a new product portfolio on the global IVD market. Ms. Neuman holds a MSc degree in Biochemistry and a PhD degree in Clinical Bacteriology from Medical Faculty at Göteborg University in Sweden.	Frank Frantzen has more than 35 years of experience from the diagnostic industry. He has served as principal scientist and has directed larger R&D units in international IVD companies Axis Shield, Alere and Abbott. Mr. Frantzen left his Senior Director R&D position at Abbott in 2021 and is currently serving as Chief Technology Officer in CardiNor AS. Mr. Frantzen holds a master's degree in chemistry and a PhD, both from the Norwegian University of Science and Technology in Trondheim.

Solid progress recent years with sales growth and partnerships with leading global diagnostic companies

Total revenue* and CAGR Partnerships prove viability of go-to-market model

Global distribution agreement for GCAL®, initial roll-out in Europe

Long-standing commercial partnership for Cystatin C

Partnership for fCAL initiated through Bühlmann Laboratories

* Including grants and other non-customer related revenue.

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Financial review

Sales growth and milestones support long-term ambition

Q2 2022 financials Highlights

Sales	EBITDA
NOK 30.1m	NOK -1.2m
+22% vs Q2'21	NOK -0.3m in Q2'21
Cash	New Cystatin C
NOK 92.1m	agreement
NOK 138.6m in Q2'21	Announced post quarter

• Record sales of MNOK 30.1 in 2Q22, up 22% and 19% organically
• Announced additional distribution agreement for Cystatin C post quarter, initial rollout in the US
• Established a Scientific Advisory Board for GCAL® to further accelerate market development
• Good progress made on NT-proBNP product development
• Successfully completed extension of the lab and production facilities in Moss designed to support long-term revenue ambition
• Current demand and commercial progress support ambition of 20% annual sales growth from established products, with further upside from products in market development

Continued high growth driven by established products

• Sales increased by 22% to record-high NOK 30.1m (19% organic growth)
• Growth across geographical markets, Cystatin C main driver

NOKm

• Total revenues of NOK 32.9m in the quarter, up 4% from Q2 21
• Other revenues related to amounts received from associated research grants and tax incentives, which was lower in the quarter due to completion of development projects

Sales - geographic split

MNOK	2Q22	2Q21	1H22	1H21
Europe	19.2	15.7	34.3	29.7
Asia	9.4	7.9	13.5	13.1
USA	1.5	1.0	2.8	1.4
Total	30.1	24.6	50.7	44.2

Sales - product split

MNOK	2Q22	2Q21	1H22	1H21
Cystatin C	14.4	11.1	21.9	18.5
fCAL®turbo	8.8	8.3	15.6	16.7
Other	6.9	5.2	13.2	9.0
Total	30.1	24.6	50.7	44.2

Cost base reflecting continued investments in growth

NOKm

	2Q22	2Q21	2021
Sales and marketing expenses	6.8	3.7	15.1
Administration expenses	7.6	8.9	32.8
Research and development expenses	5.3	10.7	24.4
Total	19.7	23.3	72.3

• Total other operating expenses was 19.7 million in Q2 2022 compared to NOK 23.3 million in Q2 2021
• Sales and marketing expenses increased in line with the higher sales while and increased marketing activity post-COVID
• Lower R&D related expenses related to completed projects
• Capitalised R&D expenses was NOK 1.0 million in Q1 2022 compared to NOK 1.5 million in Q2 2021

Investing to scale

Q2 2022 balance sheet and cash flow

Cash NOK 92.1m NOK 138.6m in Q2'21	Capex NOK 8.4m NOK +4.4m vs Q2'21
FCF	Break-even
NOK -8.1m	pre-R&D
NOK -0.6m vs Q2'21	based on current revenue

Capital priorities

• Planned spending increase as total number of products launched and sales grow – limited increase in capex, plant expansion completed
• Current business plan fully funded
• Cost base consisting mainly of personnel
• Long-term net working capital/sales assumed at ~30%, down from ~40% currently

Summary and outlook

Long-term ambitions rooted in recent progress

Four established products with potential to grow 20%+ annually

Prove clinical relevance of GCAL and bring NT-proBNP to market

Bring a steady stream of high-impact diagnostic tests to market

Secure one new contract with a global commercial partner per year

Grow gross margin from ~50% in 2020 to 60%+ at volume production

Long-term EBITDA margins of 40%

revenue potential of NOK 1bn in 5-7 years Revenue ambition of NOK 1bn in 4-6 years*

combined net

* Dependent on timing of NT-proBNP launch

Several de-risking milestones expected next 12 months

	ESTABLISHED PRODUCTS	GCAL	SARS-COV-2 AB	NT-PROBNP
S E N O T S E L MI	Targeting additional large commercial partners Additional regulatory approvals, including IVDR*	Securing additional global commercial partnerships and continue EU rollout Continue clinical study program confirming relevance for the early detection of infections, which supports the avoidance of sepsis and the severity assessment of COVID-19 patients	Commercial launch, executed in March 2022 Initiating rollout in the EU with focus on the Nordics Entering commercial partnerships for the Nordics	Progress on remaining challenges in optimisation phase Publication on the reference method for standardisation Securing endorsements from key opinion leaders and global partnerships
		Securing additional endorsements from key opinion leaders

Further potential milestones in pipeline with 1 project currently in 'proof of concept'

*IVDR: A new regulation coming into force May 2027 for existing products, and for new products being launched after 26 May 2022. IVDR requires extensive documentation of the safety, performance and quality of each diagnostic test from manufacturers through several studies on both analytical and clinical performance.

Q&A

Appendix

Gentian Diagnostics develops and supplies innovative and efficient reagents for the clinical diagnostics market

• Gentian serves the global market for human and veterinary clinical diagnostic tests
• Expertise and focus within immunochemistry, specifically in the disease areas infection, inflammation, kidney failure and congestive heart failure
• Gentian's innovative and efficient reagents can be used on all major clinical chemistry analysers, meaning no extra investments is required by the customer
• Sales mainly through global commercial partners, which are serving the laboratories being the end users
• 4 established products, 2 products in market development, 1 in product development and 3 projects in exploration and 'proof of concept'

Founded 2001

Employees

~50

Revenue 2021 NOK 100m Up 27% Oslo listing OSE: GENT Market cap ~NOK 0.7bn

How Gentian contributes to efficient diagnostics for better treatment decisions

The industry challenge

A growing diagnostics market puts increasing pressure on clinical laboratory efficiency

Many of the existing, but clinically relevant biomarkers are available only on slow and inefficient platforms

Hours from initiation of analysis to results

Gentian's solution

Particle-enhanced turbidimetric immunoassays (PETIA) based on proprietary nanoparticle technology and knowhow

Converting existing biomarkers to the most efficient automated, high-throughput analysers

10 minutes from initiation of analysis to results

3-10x higher throughput significantly improves laboratory productivity and costefficiency

Early disease detection and faster availability of clinically relevant information leads to better treatment decisions

Combining avian antibodies and PETIA enables fast results and improved lab productivity

Avian antibodies

Avoiding interference enables conversion to PETIA

Antibodies: Proteins used by the immune system to identify bacteria and viruses

Avian antibodies: Extracted from hen eggs. Avoids interference due to lack of complement system binding antibodies and molecules, enabling analysis at lower concentrations than mammalian antibodies and conversion of existing biomarkers to PETIA

Advantages: Gentian uses avian antibodies when applicable and believes extraction from eggs rather than puncturing animals contributes to better animal welfare while also offering a cost advantage at scale

PETIA

Removing separation steps increases throughput and reduces cost

Immunoassays: Biochemical tests measuring molecule presence or concentration in human cells using an antibody

Particle-enhanced turbidimetric immunoassays: Enables moving immunoassays from low-volume to high-volume clinical analysers

Advantages: Moving immunoassays to PETIA enables removing separation steps, which increases throughput and laboratory efficiency compared to the traditional ELISA and other methods

Structured approach to product development

Diversified sales model to ensure broad market access and maximize penetration

Global diagnostics companies Specialized/local distributors Healthcare providers

• Gentian's main strategy to secure broad roll-out and acceptance of product
• Beckman Coulter and Bühlmann/Roche Diagnostics are current partners falling into this category
• Ambition to secure one new contract with global commercial partner per year

• Accelerating time to revenue and awareness
• Distribution agreements in several European countries and South Korea for GCAL, Cystatin C and Canine CRP

• Direct sales to select end-users and key opinion leaders, including laboratory and hospitals
• Sales representatives in US, Sweden and HQ in Norway
• Sales office in Sweden distributes Gentian and Bühlmann Laboratories complimentary products

P&L highlights

NOKm	Q2 22	Q2 21	2021
Sales	30.1	24.6	83.1
Other revenues	2.8	6.9	16.9
Total revenues	32.9	31.5	100.0
COGS	14.4	11.4	43.2
Employee benefit expenses	11.6	8.7	39.5
D&A	2.7	2.0	7.4
Other OPEX	8.1	12.3	32.8
EBITDA	-1.2	-0.9	-15.5
EBIT	-4.0	-2.8	-22.8

Cash flow highlights

NOKm	Q1 22	Q1 21	2021
Operating activities	1.0	-2.9	-27.1
Investing activities	-8.4	-4.0	-12.8
Financing activities	-0.1	-0.6	-3.1
Changes in cash and cash equivalent	-8.1	-7.5	-43.0
Cash and cash equivalent at the beginning of period	100.2	146.1	158.0
Cash and cash equivalent at the end of period	92.1	138.6	114.9

Top 20 shareholders

Shareholder	No of shares	%
Vatne Equity AS	2 110 224	13.68 %
Kvantia AS	1 623 368	10.53 %
Holta Life Sciences AS	1 214 702	7.88 %
Verdipapirfondet Delphi Nordic	931 217	6.04 %
Safrino AS	800 000	5.19 %
Skandinaviska Enskilda Banken AB	474 870	3.08 %
Salix AS	407 121	2.64 %
Verdipapirfondet DNB SMB	361 291	2.34 %
Verdipapirfondet Storebrand Vekst	339 503	2.20 %
Equinor Pensjon	305 465	1.98 %
Portia AS	300 000	1.95 %
Cressida AS	235 000	1.52 %
J.P. Morgan SE	232 922	1.51 %
Lioness AS	220 000	1.43 %
Marstal AS	212 407	1.38 %
Mutus AS	210 465	1.36 %
Carpe Diem Afseth AS	208 797	1,35 %
Henrik Krefting	205 700	1.33 %
Verdipapirfondet Delphi Kombinasjon	185 949	1.21 %
Vingulmork Predictor AS	184 083	1.19 %
Other Shareholders	4 659 266	30.21 %
Total shares	15 422 350	100 %