Medistim

Investor Presentation • Oct 22, 2021

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Medistim ASA Q3 2021

October 22nd 2021

Kari E. Krogstad Thomas Jakobsen

PRESIDENT & CEO CFO

Disclaimer

The information included in this Presentation contains 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, 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 2020. 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.

Table of Contents

01 Highlights

Highlights 3 rd Quarter

Revenue	MNOK 102.1 (83.4)			+22.5 %
EBIT	MNOK 25.1 (20.8)			+20.3 %
Currency				- 8.1 %
Number of units sold or outplaced:
Flow systems		30		0 %
Imaging systems		17		+70 %
Flow probes	(ex USA)	1 996		+50.9 %
Imaging probes		38		+137.5 %
Procedures (USA)		18 822		+28.9 %

Q3 2021 Q o Q 3rd quarter in a row with sales over MNOK 100

• ➢ First time a 3rd quarter is above MNOK 100 in sales revenues
  • o Imaging sales up 43.5% in NOK, Flow sales up 16.3% in NOK
  • o Vascular sales up 57.0% in NOK, Cardiac sales up 17.9 %in NOK
  • o Currency neutral growth was 30.6% in total and 33.0% for own products:
    • o USA up 24.9%, Europe up 39.3%, Asia up 27.8%, RoW up 126%
• ➢ Third-party products grow by 19.0 %

Solid EBIT growth with margin at 24.6%

Highlights YTD September

Revenue	MNOK 314.5 (268.9)		+17.0 %
EBIT	MNOK 96.8 (73.3)		+ 32.0 %
Currency			- 7.5 %

Number of units sold or outplaced:

Flow systems	104	- 8.0 %
Imaging systems	68	+ 51.1 %
Flow probes (ex USA)	5 727	+ 28.7 %
Imaging probes	104	+ 36.8 %
Procedures (USA)	54 211	+ 28.6 %

YTD 2021 YTD o YTD Best YTD September ever for revenue and EBIT

➢ Sales revenue YTD September is up 15% to MNOK 309.2

• o Imaging sales up 23.2%, Flow up 11.9% in NOK
• o Vascularsales up 10.1 %, Cardiac up 14.4% in NOK
• o Currency neutral growth was 24.5% in total and 25.3% for own products:

o USA up 23.3%, Europe up 25.1%, Asia up 28.3%, RoW down 9.7%

➢ Total revenue YTD September is up 17% to MNOK 314.5, due to the extraordinary revenue of MNOK 5.3 from the COVID-related U.S. Paycheck Protection Program granted in Q2

➢ Third-party products grow by 20.8 %

EBIT YTD September of MNOK 96.8 is higher than for the full year of 2020 (MNOK 95.5)

02 Financial Statements

Profit and loss Q3 2021

Profit & loss	Q3 2021	Q3 2020
All numbers in NOK 1000
Sales revenue	102 138	83 361
Other revenue	-	-
Total revenue	102 138	83 361
Cost of goods sold	23 793	15 379
Salary and social expenses	35 478	31 186
Other operating expenses	11 882	10 170
Total operating expenses	71 152	56 736
Op. res. before depr. and write-offs (EBITDA)	30 986	26 625
EBITDA %	30,3 %	31,9 %
Depreciation	5 909	5 772
Operating result (EBIT)	25 077	20 853
EBIT %	24,6 %	25,0 %
Financial income	3 258	4 678
Financial expenses	4 351	6 864
Net finance	-1 093	-2 185
Pre tax profit	23 984	18 668
Tax	5 186	4 225
Profit after tax	18 798	14 442
Dividend	-	-

Sales per Quarter (TNOK)

Profit and loss YTD September 2021

Profit & loss	YTD 30.09.21	YTD 30.09.20
All numbers in NOK 1000
Sales revenue	309 244	268 949
Other revenue	5 292	-
Total revenue	314 536	268 949
Cost of goods sold	69 231	54 346
Salary and social expenses	93 089	86 889
Other operating expenses	38 000	37 517
Total operating expenses	200 319	178 752
Op. res. before depr. and write-offs (EBITDA)	114 217	90 197
EBITDA %	36,3 %	33,5 %
Depreciation	17 400	16 848
Operating result (EBIT)	96 817	73 348
EBIT %	30,8 %	27,3 %
Financial income	6 509	12 704
Financial expenses	8 670	14 367
Net finance	-2 161	-1 663
Pre tax profit	94 656	71 686
Tax	19 869	15 867
Profit after tax	74 788	55 818

Sales per Quarter (TNOK)

Balance sheet – Assets

Cash position by end of quarter was MNOK 89.6

Securing end-of-life components and keeping security stocks of components explain the high inventory level

A dividend of NOK 3.00 per share, total MNOK 54.6, was paid in May

Balance sheet	30.09.2021	31.12.2020
All numbers in NOK 1000
Assets
Intangible assets	30 643	33 464
Fixed assets	59 406	66 570
Total intangible and fixed assets	90 048	100 034
Inventory	106 128	112 667
Customers receivables	66 907	57 485
Other receivables	9 847	3 744
Cash	89 658	71 891
Total current assets	272 540	245 786
Total assets	362 588	345 820

Balance sheet	30.09.2021	31.12.2020
All numbers in NOK 1000
Share capital	4 585	4 585
Premium fund	44 172	44 172
Other equity	232 907	208 089
Total equity	281 664	256 846
Total long term debt	18 339	29 497
Total short term debt	62 585	59 477
Total equity and liability	362 588	345 820

Balance sheet – Equity and Liability

2.25 MNOK in interest-bearing debt

23.3 MNOK in obligations related to lease contracts where 16.4 MNOK is long term

Strong balance sheet with 77.7 % equity ratio

03 Business segments update

Imaging probes and systems in units

Unit sales of imaging systems sold as capital equipment continue to be strong after the COVID slow down, growing 70% this quarter

Unit sales of imaging probes are also back to normal, growing 137.5% this quarter

Imaging probes in units

20

25

30

Imaging systems in units

ROW Europe Asia US

Flow probes and systems in units

• Number of flow systems sold as capital equipment is flat from Q3 last year.
• It is Medistim's strategy to convert the market from Flow -only to Flow -and -Imaging technology
• The total sale of systems (Flow and Flow -and -Imaging) sold as capital equipment shows an increase of 7 units or 17.5%

50.9% growth in number of flow probes sold this quarter reflects that the surgical activity level is getting back to normal

Flow systems in units (MiraQ capital sales)

Flow probes in units (excl USA)

Revenue performance by region

Mill NOK	Q3 21	Q3 20	Q / Q	YTD 21	YTD 20	YTD / YTD	2020
Europe	45,8	35,9	27,4 %	140,8	117,4	19,9 %	173,3
USA	38,5	34,5	11,8 %	115,0	99,4	15,7 %	126,4
Asia	13,2	10,8	22,0 %	46,5	38,0	22,4 %	46,8
ROW (MEA, CAN, SA, AUS)	4,6	2,1	116,4 %	12,2	14,1	-13,8 %	16,7
Total	102,1	83,4	22,5 %	314,5	268,9	17,0 %	363,1

• In Europe, Q3 sales of own products increased with 33.0% in NOK and 39.3% currency neutral. YTD September, sales of own products increased with 19.4% in NOK and 25.1% currency neutral. 3. party increased with 19% in Q3 and 20.8% YTD.

• In the USA, currency neutral sales for the quarter increased with 24.9%. Total revenues YTD include the extraordinary MNOK 5.3 related to the U.S. Paycheck Protection Program. When excluding this, sales revenue YTD was NOK 109.8, a 10.4 % increase. Currency neutral this corresponds to an increase of with 23.3 %.
• In Asia, solid growth both for the quarter and YTD.
• ROW continues to be a small sales territory for Medistim, with significant quarter to quarter variation.

Negative currency effects for YTD 2021 vs 2020 was 20.0 MNOK .

Average actual exchange rate for USD 8.55 and EUR 10.23 versus last year USD 9.55 and EUR 10.72.

Revenue performance by product category

Mill NOK	Q3 21	Q3 20	Q / Q	YTD 21	YTD 20	H1 / H1	2020
Procedures (USA)	28,4	25,3	12,2 %	83,2	76,0	9,4 %	99,4
Flow probes	30,2	23,4	28,7 %	85,4	69,8	22,3 %	92,6
Flow systems (MiraQ)	12,0	9,9	21,3 %	33,5	33,8 -0,9 %		47,2
Imaging systems (MiraQ)	12,5	9,3	35,5 %	42,8	34,2	25,1 %	44,2
Imaging probes	1,6	0,8	96,0 %	5,1	3,9	29,5 %	5,2
3rd party	17,0	14,3	19,0 %	55,9	46,3	20,8 %	67,5
Other	0,5	0,4	22,6 %	8,7	4,9	77,2 %	6,9
Total revenues	102,1	83,4	22,5 %	314,5	268,9	17,0 %	363,1

• Procedure sale in the USA: The total number of procedures increased with 28.9% for the quarter and with 28.6 % YTD September. Lower % growth in NOK is explained by unfavorable currency.

• Flow probes: In units the growth is 50.9 % for the quarter and 28.7 % YTD September. The lower % growth in NOK is due to higher sales through distributors and unfavorable currency.
• Flow systems (capital): At the the same level in number of units but higher sales through direct operation increases revenue in NOK.
• Imaging systems (capital): 80% increase in capital units. The lower increase in NOK is related to high sales through distributors this quarter and currency. YTD September, the % growth in number of capital units sold is 51%. The lower increase in NOK has same explanation as for the quarter.
• 3 rd party products: Strong quarter and YTD September.
• Other: Includes an extraordinary revenue of MNOK 5.3 related to the U.S. Paycheck Protection Program

Conclusion: We are in recovery from the COVID-19 pandemic

From gradually decreasing impact to strong recovery in 2nd and 3rd quarter 2021

Currency neutral sales development Not completely back to normal A positive outlook

• → Q2-20: 19.3 % vs LY
• → Q3-20: 9.7 % vs LY
• → Q4-20: 7.2 % vs LY
• → Q1-21: + 4.4 % vs LY

→ Q2-21: + 36.7 % vs LY

(strongest quarter ever)

→ Q3-21: + 30.6 % vs LY

• o Still some travel and hospital access restrictions

• o In some countries, and some states in the U.S.A., elective surgeries may still be postponed

• → Increasing vaccination rates ensure capacity for cardiovascular surgery

• → Medistim remains optimistic about the future

04 Implementing the strategy

Medistim growth strategy

• 1. Convert the routine Flow market to a Flow-and-Imaging market by establishing Surgical Guidance and Quality Assessment as the new standard of care through
  2. → Early adopter & KOL support
  3. → REQUEST study
  4. → Ease conversion from flow to imaging with MiraQ
• 1. Achieve routine use of both Flow and Imaging by fighting ignorance, indifference and ease-of-use objections through
  2. → Clinical marketing, guidelines and educational programs
  3. → Product innovation for ease of use
  4. → Increased sales force capacity
• 1. Offer an entry-level solution to reach emerging, price-sensitive, high-growth markets
• 1. Build and strengthen position in vascular surgery
  2. → Dedicated system (MiraQ Vascular) & probes
  3. → Build position with societies and KOLs
• 1. Expand our direct market coverage

GEOGRAPHIES

APPLICATION AREAS

Sales growth in the USA

Performance US sales

• Currency neutral sales revenue grow by 24.9% in Q3 and by 23.3% YTD
  • o Total YTD revenue in USD includes the Paycheck Protection Program revenue of TUSD 630. YTD total revenue grows by 29.2%
• Total number of procedures was up 28.9% in Q3 and 28.6% YTD
  • o Flow procedures up 19.5% in Q3
  • o Imaging procedures up 87.8% in Q3
• Capital systems sales:
  • o 10 units in Q3 vs 9 LY
  • o 27 units YTD September vs 23 LY
• Strong growth in new customers
• o 33 YTD September vs 18 last year

New publications

Hot off the press: Review-article in CIRCULATION, Oct 5th 2021

• Authored by 19 cardiac surgeon experts (4 from REQUEST study) from all over the world
• Published in Circulation, one of the highest ranked journals in cardiology and cardiovascular medicine

	Title	Type	↓ SJR	H index	Total Docs. (2020)	Total Docs. (3years)	Total Refs. (2020)	Total Cites (3years)	Citable Docs. (3years)	Cites / Doc. (2years)	Ref. / Doc. (2020)
	Journal of the American College of Cardiology	journal	10.315 Q1	431	935	2960	22363	23475	1191	7.44	23.92	1
വ	Circulation	journal	7.795 Q1	607	778	2685	22242	26532	1702	9.48	28.59	1
3	JACC: Heart Failure	journal	6.123 Q1	67	184	596	2888	2708	262	4.38	15.70
বা	JAMA Cardiology	journal	6.108 Q1	63	349	944	4752	4608	486	4.92	13.62	1
ട	JACC: Cardiovascular Imaging	journal	5.790 Q1	120	481	1051	9756	4889	422	4.57	20.28	=
6	Nature Reviews Cardiology	journal	5.495 Q1	130	175	550	8971	3856	268	7.24	51.26	网
7	European Journal of Heart Failure	journal	5.149 Q1	133	397	825	12087	5341	445	6.01	30.45	1
8	Circulation Research	journal	4.899 Q1	336	352	1256	19861	10880	933	7.71	56.42	1
ਰੇ	European Heart Journal	journal	4.336 Q1	293	1008	2579	16028	14482	1859	5.52	15.90	20
10	Journal of Heart and Lung Transplantation	journal	3.549 Q1	135	1537	645	4734	3313	371	4.74	3.08
11	Stroke	iournal	3.397	319	775	2080	15700	11233	1632	4.99	20.26	=

	25

"The Use of Intraoperative TTFM for CABG"

Circulation, October 2021

• o Systematic review of 229 publications
  • o 2,200 articles identified
  • o 1,550 screened
  • o 38 cited in the review
• o 10 expert statements for TTFM use were formulated
  • o 2 x electronic voting, 1 F2F
  • o 80% agreement was required for acceptance of the statements
  • o 2-level scale for clinical benefit (strong, moderate)

Method Conclusion

• o "…TTFM's cost/benefit ratio seems largely favorable, in view of the potential clinical consequences of graft dysfunction."
• o "These consensus statements will help to standardize the use of TTFM in clinical practice and provide guidance in clinical decision-making"

10 CONSENSUS STATEMENTS:

1 reads: "TTFM should be used in every CABG case"

Several expert consensus statements published in 2021

The advocacy is getting loader and more prominent

Influencing peers; driving routine use and setting the standard-of-care

Reasonable to expect new and stronger clinical guideline endorsements

20 largest shareholders per October 19th

Rank	Name	Holding	% of total	Citizenship	Type of account
	1 AETERNUM CAPITAL AS	1 862 500	10,16 %	Norway	Ordinary
	2 VERDIPAPIRFOND ODIN NORDEN	1 800 000	9,82 %	Norway	Ordinary
	3 INTERTRADE SHIPPING AS	1 285 000	7,01 %	Norway	Ordinary
	4 State Street Bank and Trust Comp	1 238 675	6,75 %	United States	Nominee
	5 State Street Bank and Trust Comp	1 103 921	6,02 %	United States	Nominee
	6 Skandinaviska Enskilda Banken AB	1 029 728	5,62 %	Sweden	Nominee
	7 FOLLUM CAPITAL AS	970 000	5,29 %	Norway	Ordinary
	8 State Street Bank and Trust Comp	616 154	3,36 %	United States	Nominee
	9 Skandinaviska Enskilda Banken AB	598 092	3,26 %	Denmark	Nominee
	10 State Street Bank and Trust Comp	466 805	2,55 %	United States	Nominee
	11 Skandinaviska Enskilda Banken AB	409 723	2,23 %	Sweden	Nominee
	12 SKANDINAVISKA ENSKILDA BANKEN AB	387 682	2,11 %	Luxembourg	Nominee
	13 FD INVT TR: FD SRS INTL SML CP FD	382 845	2,09 %	United States	Ordinary
	14 BUANES	379 936	2,07 %	Norway	Ordinary
	15 The Bank of New York Mellon SA/NV	257 500	1,40 %	Denmark	Nominee
	16 Skandinaviska Enskilda Banken AB	238 314	1,30 %	Sweden	Nominee
	17 BNP Paribas Securities Services	233 392	1,27 %	Italy	Nominee
	18 Euroclear Bank S.A./N.V.	232 559	1,27 %	Belgium	Nominee
	19 Danske Invest Norge Vekst	228 000	1,24 %	Norway	Ordinary
	20 The Bank of New York Mellon SA/NV	210 931	1,15 %	Ireland	Nominee

Date:	19.10.2021
Name: MEDISTIM ASA	Medistim ASA
ISIN: NO0010159684	NO0010159684
Number of investors: 1009	1 009
Number of shares: 18337336	18 337 336