Gentian Diagnostics ASA

Investor Presentation • Feb 17, 2022

Q4 21 Presentation

February 17th, 2022

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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.

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Today's presenters

Hilja Ibert

CEO

Njaal Kind CFO & COO

Gentian's value proposition

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, fast and 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

Revenue ambition of NOK 1bn in 5-7 years**

Delivered ~27% average annual revenue growth 2018-21

* 5 launched, further 2 in development. **Dependent on timing of NT-proBNP launch

7 diagnostic tests, including two potential blockbusters

ESTABLISHED PRODUCTS			IN MARKET DEVELOPMENT			IN PRODUCT DEVELOPMENT
Kidney disease	Inflammation & infection	Inflammation	Pancreas	Inflammation & infection	Inflammation		Cardiac
Cystatin C	Canine CRP	fCAL®	fPELA®	GCAL®	SARS-CoV-2		NT-proBNP
2006	2012	2015	2020	2019	Q1 2022		TBD

Growing into a serviceable market of USD 1.3bn

Total Addressable Market: Total demand within targeted markets 2020 (Kalorama 2020). Total Serviceable Market: The segment of the TAM targeted by Gentian's products (company estimates). Gentian's share of revenues net of partner take is 30-50% on average with product variations. Note: SARS-CoV-2 Ab, targeting a USD 20m Nordic serviceable market, not shown separately in graph.

Ambitions for impact, high growth and value creation

Market opportunity and long-term ambitions Strategic pillars

5-7 year revenue ambition* NOK 1bn

60%+ Gross margin at volume production

Long-term EBITDA margins 40%

• Grow annual revenue from established products through additional commercial partners and regulatory approvals
• Prove clinical relevance of GCAL for sepsis and COVID-19
• Launch one new product per year; SARS-COV-2 Ab scheduled for Q1 2022
• Secure one new contract with a global commercial partner per year, building on established partnerships
• Grow gross margin through economies of scale
• Deliver healthy long-term EBITDA margins through operational leverage and cost discipline

Q4 2021 highlights

Sales NOK 21.7m +26% vs Q4'20	EBITDA NOK -8.5m NOK -7.4m vs Q4'20
Cash	SARS
NOK 114.9m	CoV-2 Ab
NOK -43m vs Q4'20	development completed

• Total operating revenue of NOK 26.2 million, up 10% from Q4 2020
• EBITDA of NOK -8.5 million, of which NOK -4.4 related to implementation of a new ERP system, compared to NOK -1.1 in the corresponding quarter in 2020
• Sales revenue of NOK 21.7 million, up 26% compared y-o-y with organic growth at 33%
• Development of the SARS CoV-2 assay completed, with launch planned during Q1 2022
• Finalised negotiations with Siemens Healthineers for commercial rollout of GCAL®, with contract signed in Q1 2022

NT-proBNP timing remains uncertain

• Revised timeline to be communicated upon completion of the optimization phase
• Optimization has been more complex than first assumed
• Making progress with particle coating and stability, and showing reproducible results in controlled environment
• Remaining challenges with likely interference between the NT-proBNP molecule and clinical plasma material
• Work ongoing to reveal and remove the interference sources

Main achievements in 2021

• Achieved 31% sales growth -and 43% organic sales growth - mainly from the established products Cystatin C and fCAL® turbo
• Expansion of commercial footprint including third party sales in Norway, Finland and Iceland
• Completed development of the SARS COV-2 Antibody assay
• Increased momentum for GCAL with several new routine users - secured interest from several global distribution partners
• Achieved development of an independent reference method for NT-proBNP
• Successfully transferred the Gentian share to Oslo Børs

Financial review

Financial highlights

NOKm	Q4 2021	Q4 2020	2021	2020
Sales	21.7	17.2	83.1	63.3
Other revenues	4.5	6.6	18.2	15.6
Total revenues	26.2	23.8	101.3	78.9
COGS	10.7	9.1	43.3	32.6
Employee benefit expenses	11.2	8.8	38.4	37.2
D&A	1.0	2.0	7.3	6.6
Other OPEX	12.8	7.0	35.0	20.3
EBITDA	-8.5	-1.1	-15.5	-11.2
EBIT	-9.5	-3.1	-22.8	-17.8

Sales and other revenues

• Total revenue of NOK 26.2m in the quarter, up 10% vs Q4 20
• 33% growth in organic sales (26% reported)

Driven mainly by increased adoption of Cystatin C as a routine marker for chronic kidney disease, and by strong demand growth in China and South Korea

• Other revenues related to amounts received from associated research grants and tax incentives

NOKm

Sales - geographic split

MNOK	4Q21	4Q20	2021	2020
US	0.5	0.7	2.5	3.0
Europe	13.6	13.0	55.6	45.4
Asia	7.6	3.6	25.0	14.9
Total	21.7	17.2	83.1	63.3

Sales - product split

MNOK	4Q21	4Q20	2021	2020
Cystatin C	10.5	6.6	36.2	25.8
fCAL®turbo	5.8	6.2	28.0	20.9
Other	5.4	4.5	18.9	16.6
Total	21.7	17.2	83.1	63.3

Operating expenditures in the quarter

NOKm

	4Q21	4Q20	2021	2020
Sales and marketing expenses	4.2	4.6	15.2	14.2
Administration expenses	12.9	3.7	32.3	19.4
Research and development expenses	6.9	7.5	25.9	23.9
Total	24.0	15.8	73.4	57.5

• High Opex in the quarter, with administration expenses including NOK 4.4 million related to implementation of new ERP system
• Sales and marketing and R&D expenses below Q4 2020 and moderately higher than 2020 for the full year
• Capitalised R&D expenses of NOK 2.5 million in Q4 and NOK 10.2 million for the full year 2021, compared to NOK 2.5 million in Q4 2020 and NOK 3.4 million for the full year 2020

Strong cash position; fully financed business plan

NOKm	Q4 21	Q4 20	2021	2020
Operating activities	-15.0	2.6	-28.9	-12.5
Investing activities	-1.9	2.2	-12.2	0.3
Financing activities	0.5	0.9	-1.8	-1.5
Changes in cash and cash equivalent	-16.4	5.7	-42.9	-13.8
Cash and cash equivalent at the beginning of period	131.3	152.3	158.0	171.6
Cash and cash equivalent at the end of period	114.9	158.0	114.9	158.0

Summary and outlook

Positive portfolio outlook

ESTABLISHED PRODUCTS	GCAL	SARS-COV-2 AB	NT-proBNP
Targeting additional large commercial partners	Increasing endorsements from key opinion leaders	Successful validation and launch, scheduled for Q1 2022	Continuing work on optimisation
Additional regulatory approvals, including IVDR* Continued double digit sales	Strengthening clinical confirmation of relevance for sepsis and Covid-19	Entering commercial partnerships for the Nordics	Challenges remain with likely interference between the NT proBNP molecule and clinical plasma
growth expected	Securing global commercial partnerships and initiating EU rollout		Revision of timeline not meaningful until optimisation has been completed
	Expecting significant sales growth going forward

Further potential milestones in pipeline with 3 biomarkers currently in exploration and 'proof of concept'

* IVDR: A new regulation requiring 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