Photocure ASA

Investor Presentation • Aug 10, 2022

Photocure ASA Second Quarter 2022 Results

August 10, 2022

Dan Schneider, President and CEO

Erik Dahl, CFO

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Second Quarter 2022 Highlights: Recovered from difficult Q1 and prepared for H2 improvement

+9% Hexvix®/Cysview® unit growth Revenue Growth +12% EBITDA NOK 1.4 million Studies & Publications Positive Danish Registry study results in nearly 10,000 patients

Improved healthcare access globally; staffing shortages & Karl Storz launch delay in U.S. tempered growth

German price increase & subsequent inventory build supported European unit growth along with ongoing recovery

Commercial investment for post-Covid growth and launch of upgraded BLC® system in U.S.

Q2 2022 OPEX remains mostly level with Q4 2021

Primary bladder cancer patients treated at clinics with high BLC use experienced better results for disease recurrence and progression

Partnership Activity

Hexvix distribution partnership in Israel ^l Cevira progress (post-period)

Israel: Photocure enters into license agreement with IGL Medical Ltd. for approval & distribution of Hexvix in Israel

Cevira: Asieris announces completion of enrollment in Cevira Phase III trial (August 2022)

Segment Trends

North America and Europe markets

COVID-19 Update

Healthcare access re-opened in Q2, staffing shortages remain

• Staffing shortages are impacting case load capacity / procedure volume in both regions
• OR and physician clinic access more restrictive in the U.S. given ongoing Covid-19 risk and reduced staffing
• Hospital access good during Q2 in Europe with exception of some remaining limitations in Germany

• Procedure volumes anticipated to normalize in the U.S. and Hospital access in Europe anticipated to remain open during H2 2022

• Outlook both regions: Access expected to remain open in H2 2022 as Covid more manageable;

  • Staffing shortages remain a challenge

Trends Continue to Improve in Both Regions

Second Quarter Hexvix/Cysview Units Last 3 Years by Month

Europe

Q2 2022 Trends in North America

• Continued business growth of existing base business despite latest staffing shortages and delayed launch of the Karl Storz new BLC system
• Highest quarterly unit sales in U.S. in Photocure's history
• Contracting remains a key growth driver with accounts taking advantage of volume-based programs
• Demand for both flexible cystoscopy and the new blue light system continues to be strong
• Staffing shortages remain a challenge nationwide

May 2022: New Blue Light featured at AUA

U.S. continued blue light cystoscope placements

18 BLC tower placements in H1 2022 (10 flexible) ahead of upgraded Karl Storz system launch

*2012 – 17 of the 23 installations were converted clinical sites upon Cysview approval

Q3 2021: 14 Installations (11 Rigid & 3 Flex) Q4 2021: 9 Installations (6 Rigid & 3 Flex) Q1 2022: 13 installations (8 Rigid & 5 Flex) Q2 2022: 5 Installations (0 Rigid & 5 Flex)

Annual New Installations Cumulative install base continues strong trend

Q2 2022 Trends in Europe

Second Quarter units +11% vs. Q2 2021; overall positive trend in Q2 vs prior year. Price increase in Germany, effective August 1st, triggered inventory build in certain hospitals in June/July

Photocure European KOL Faculty executing on physician education programs during 2022,

• Photocure Bladder Cancer Bus Tour Events in Denmark in May and at the European Association of Urology (EAU) Congress in July
• New high-definition BLC system launches (Karl Storz and other manufacturers) anticipated in Europe / Ongoing cooperation between Photocure and equipment suppliers

as well as country-specific BLC advisory boards

Large Untapped Potential in European Market

Established Hexvix Markets

Nordics: ~40% penetration

Active Hexvix Markets

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

Untapped Large EU Markets

UK, Italy, Spain, Poland ~0% penetration

Untapped Small EU Markets

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

*In-Market Units Sales Photocure – Presentation of Q2 2022 Results

10

Change in Trend* in large European Priority Growth Markets continues

Q2 2022 Financials

Segment Performance Second Quarter 2022

North America Segment

NOK million Amounts in	Q2 '22	Q2 '21	Change	YTD '22	YTD '21 Change
Total revenues (1)	38.7	31.4	24%	69.2	58.6	18%
Gross profit	37.7	30.3	24%	67.0	56.9	18%
of % revenue	97%	97%		97%	97%
Direct costs	-40.2	-31.6	27%	-78.2	-61.7	27%
Contribution (2)	-2.5	-1.2		-11.1	-4.8
EBITDA	-11.1	-7.9		-28.5	-16.7
of % revenue	-29%	-25%		-41%	-28%

• Q2 revenue growth 24%. In-market U.S. unit sales grew 4%
  • FX impact 11%, price increase 3%
• Q2 & YTD direct costs growth as planned
  • YTD includes NOK 2.5m in expenses related to launch of Canadian operations

Europe Segment

in NOK million Amounts	Q2 '22	Q2 '21	Change	YTD '22	YTD'21 Change
Total revenues	61.1	57.6	6%	111.6	111.9	0%
Gross profit	57.3	53.4	7%	103.0	103.4	0%
% of revenue	94%	93%		92%	92%
Direct costs	-26.3	-23.0	14%	-47.9	-39.1	22%
Contribution (2)	31.0	30.4		55.1	64.3
EBITDA	16.0	17.7		24.2	40.7
of % revenue	26%	31%		22%	36%

• Q2 revenue increase 6%. FX impact in Europe -2%
• In-market unit sales grew 10% in Q2; main contributors Germany, Italy and U.K.
  • German sales impacted by several hospitals acquiring inventory ahead of price increase
• Headcount & costs increase as planned as access to care improves

(1) North America revenue 2021 does not include Canada

(2) Contribution = revenue – COGS – direct/local sales, marketing, medical and G&A costs

Consolidated Income Statement Second Quarter 2022

Amounts in NOK million	Q2 '22	Q2 '21	Change	YTD '22	YTD '21	Change
Hexvix/Cysview Revenue	99.9	88.9	12%	181.2	170.5	6%
Other Revenue	0.7	1.5		0.9	8.1
Total Revenue	100.6	90.4	11%	182.2	178.6	2%
Gross Profit	95.3	84.3	13%	170.9	167.4	2%
Operating Expenses	-93.9	-78.5	20%	-183.3	-143.5	28%
EBITDA	1.4	5.8		-12.5	24.0
Depreciation & Amortization	-6.0	-6.1		-12.0	-11.9
EBIT	-4.6	-0.2		-24.5	12.0
Net Financial Items	-4.5	-7.3		-11.8	0.8
Earnings before Tax	-9.1	-7.6		-36.3	12.8
Tax Expenses	-9.4	-3.0		-4.1	-8.2
Net earnings	-18.5	-10.6		-40.4	4.6

Revenue

• Q2 Hexvix/Cysview revenue 12% above last year, driven by volume and FX
• Q2 total revenue 11% above last year. YTD total revenue in 2021 included sign-on fee from Asieris of NOK 6.4m

Operating Expenses

• Q2 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
• Q2 operating expenses mostly level compared to Q4 2021 (increased 1.5% due to FX)

EBITDA

Decline in Q2 EBITDA driven by higher operating costs partly offset by higher revenue. Approx. half of decline driven by FX

Net financial items

Q2 for both years driven mainly by the Ipsen earnout. YTD 2021 net financial income driven by unrealized currency gain

Cash Flow & Balance Sheet Second Quarter 2022

million Amounts in NOK	Q2 '22	Q2 '21	YTD '22	YTD '21
Operations Cash Flow	-2.0	14.0	-24.1	12.1
Earnings before tax	-9.1	-7.6	-36.3	12.8
Depreciation & amortization	6.0	6.1	12.0	11.9
Working capital	-11.6	7.2	-20.1	-13.3
Other	12.7	8.3	20.3	0.7
Investments Cash Flow -2.5 0.8		-2.0	0.5
Financing Cash Flow	-8.0	-4.1	-23.8	-7.3
Net Change in Cash -12.4 10.8			-49.8	5.3
NOK million Amounts in			30.06.22	31.12.21
Non-current assets	362.7	376.5
Inventory & receivables	98.1	90.3
Cash & short-term deposits	273.1	322.9
Equity			474.8	502.6
Long-term liabilities	169.4	185.0
Current liabilities	64.7	77.0

Cash Flow

• Net cash flow from operations in Q2 NOK -2.0m, impacted by working capital -11.6m
  • Increased receivables revenue driven, DSO approx. 45 days
• Net cash flow from financing in Q2 NOK -8.0m includes loan repayment of NOK 6.3m and earnout payments of NOK 6.2m
• Remaining loan NOK 25m, will be fully repaid in Q2 2023
• Net cash flow Q2 NOK -12.4m, cash balance end of Q2 2022 NOK 273.1m

Financial position

• Non-current assets includes intangibles and goodwill from Ipsen transaction totaling NOK 281.5m
• Long-term liabilities includes deferred Ipsen earnout totaling NOK 136.9m
• Equity NOK 474.8m, 65% of total assets

Strategy for Shareholder Value Creation

Hexvix®/Cysview® – ambition to become standard of care in a \$1.9 billion total addressable market**

KEY SUCCESS FACTORS

*AUA, EAU, SUO, AFU, NICE, DGU guidelines **TAM = estimation of total addressable market U.S. and EU5 ¹Source: Photocure internal patient-based model built on Globocan 2019 EU5 data.

Photocure – Presentation of Q2 2022 Results

Anticipated Milestones & Corporate Priorities

• Regain prior sales momentum on full Covid recovery including resolution of staffing shortages
• Late Q3 launch of Karl Storz's upgraded Blue Light system in U.S.; 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 on the use of BLC® with Hexvix®/Cysview®
• Report on the progress of partnered companies and license agreements
• Evaluate strategic product or business opportunities that leverage organizational strengths

Summary

Executed on Key Deliverables Ahead of Anticipated Second Half Improvement

• 12% Hexvix®/Cysview® revenue growth YoY despite ongoing staffing shortages & lack of rigid towers
• Strong new account pipeline; customers anticipate new Karl Storz Blue Light system
• 5 flexible BLC® towers placed in the U.S. during Q2 expanding the installed base
• New Karl Storz BLC system launch expected late Q3 in U.S.; H2 2022 in Europe
• Continuing to drive key initiatives in both commercial regions and with licensing partners
• Photocure is well-positioned for strong organic growth

Leading change in bladder cancer