Photocure ASA

Earnings Release • May 19, 2021

Photocure ASA Results for 1st Quarter 2021

19 May 2021

Daniel Schneider, President and CEO

Erik Dahl, CFO

Disclaimer

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2

First Quarter 2021 Highlights: Progress in both commercial regions despite Covid-19

COVID-19 Update Access restrictions continue due to "third wave"

U.S.

• Significant access restrictions continued in Eastern states during Q1, access remains limited in certain areas (several waves of re-openings & closings)
• Large metropolitan cities beginning to loosen in Q2 (Los Angeles/New York City regions hardest hit during 2020 outbreak)
• New towers installed and placed into service during Q1, unit sales growth despite challenging environment

Europe

• Severe lockdowns and restrictions continued from Q4 2020 into Q1 2021
• Successful remote interactions in established markets, but difficulty in connecting with customers in re-launch markets
• Still in third wave of COVID-19 today: situation improving, expecting hospital access restrictions to lift over the summer

Hexvix/Cysview Revenue Development

US - Cysview Europe - Hexvix Other

Segment Trends

U.S. and Europe markets

Improving Trend in Both Regions Exiting Q1

First Quarter Hexvix/Cysview Units Last 3 Years by Month

Photocure – Presentation of Q1 2021 Results

Q1 2021 Momentum in U.S.

• 12 new towers installed in Q1 2021, backlog suggests acceleration in Q2 and throughout 2021
• Unit volume up 4.2% in Q1 vs. prior year where Covid-19 surge occurred late March 2020
• Access restrictions are lifting in Q2 and procedural volumes starting to pick up across the United States
• Contracting led to first multi-hospital system agreement which included 5 rigid towers in 4 hospitals from a key health system in the Mid-Atlantic Region
• Momentum also being seen with contracting efforts to drive adoption and awareness of surveillance opportunity (flexible BLC)
• Significant pick up in unit sales in March 2021 following challenging January and February

U.S.: Continued blue light cystoscope placements

Strong Start with 12 Installations in Q1 2021 Despite Access Restrictions

Annual New Installations Cumulative install base continues strong trend

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

Key Initiatives Will Drive Growth for the U.S.

CONTRACTING

Ongoing contracting with key health systems such as Kaiser and community-based Urology Groups

REFRESHED CYSVIEW CAMPAIGN

New campaign tailored to key physician segments & to educate on the disadvantage of using WLC alone

VETERANS AFFAIRS

Recent tower installations, pipeline building interest and demand with key VAs in the United States

PEER-TO-PEER

Virtual and on-site programs have increased given the surge of interest in Blue Light

PATIENT DEMAND

Cysview website locator map serving as a useful tool to get physicians to notice patients are looking for BLC locally

NON-PERSONAL PROMOTION

Expanding brand awareness, opening doors for sales reps through advertisements, mailers etc.

Q1 2021 Momentum in Europe

• European business exceeded forecast from original business plan
• Successfully re-connecting with leading European KOL community "as Photocure"
• Introduced our commercial/medical team as the sponsor of Hexvix in priority markets
• Very positive response to future cooperation with Photocure
• Established cooperation projects with European capital equipment providers
• Completed work-down of excess inventory in Germany from 2020 tax incentive
• First signals of turn-around in large growth markets (UK, FR, IT)

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

First Signals of Turn-Around in Large European Future Growth Markets

Q1 2021 Financials

Segment Performance First Quarter 2021

U.S. Segment

million Amounts in NOK	Q1 '21	Q1 '20	Change
Total revenues	27.3	28.2	-3%
Gross profit	26.6	26.7	- %
% of revenue	98%	95%
Direct costs	-30.2	-34.9	-14%
Contribution (2)	-3.6	-8.2
% of revenue	-13%	-29%

• Revenue growth in USD: 8% (FX impact -10%)
• Volume increase 4% YoY
• Direct cost driven by cost containment and FX
• Covid-19 impact

Europe Segment

NOK million Amounts in	Q1 '21	Q1 '20	Change
Total revenues (1)	54.3	26.2	128%
Gross profit	50.0	21.9	128%
% of revenue	92%	84%
Direct costs	-16.1	-3.9
Contribution (2)	33.8	18.0	88%
of % revenue	62%	69%

• FX impact:-2%
• Volume decline 9% YoY
• Staffing w/ additional FTEs as Covid-19 resolves
• Covid-19 impact

Consolidated Income Statement First Quarter 2021

million Amounts in NOK	Q1 '21	Q1 '20	Change	FY '20
Hexvix®/Cysview® Revenue	81.6	54.4	50%	255.2
Other Revenue	6.6	0.6		1.3
Total Revenue	88.2	55.0	60%	256.5
Gross Profit	83.1	48.8	70%	238.0
Operating Expenses	-65.0	-53.6	21%	-241.9
EBITDA before Restructuring	18.1	-4.8		-3.9
Depreciation & Amort.	-5.9	-3.9		-19.3
EBIT before Restructuring	12.3	-8.6		-23.2
Restructuring Expenses	-	-1.9		-12.9
Net Financial Items	8.1	5.7		2.8
Earnings before Tax	20.3	-4.8		-33.2
Tax Expenses	-5.2	-12.9		10.8
Net earnings	15.2	-17.7		-22.4

Revenue

• Revenue driven by inclusion of European operations
• Foreign exchange impact: USD down 10%
• Sign-on fee from Asieris of NOK 6.4 million (Hexvix)

Operating Expenses

• Q1 increased due to investment in the European commercial operation
• Operating expenses excluding European operation level with Q1 '20

EBITDA

• EBITDA improved NOK 22.9 million YoY
• Driven by Asieris milestone (NOK 6.4 million), improved contribution Europe (NOK 15.8 million)

Net financial items

Driven by interest component of Ipsen earnout and currency gain on earnout liability (Note 6 to accounts)

Cash Flow & Balance Sheet First quarter 2021

Amounts in NOK million	Q1 '21	Q1 '20	FY '20
Operations Cash Flow	-8.2	3.0	15.6
Earnings before tax	20.3	-4.8	-33.2
Currency gain, unrealized	-14.0	-0.6	0.8
Contract receivable	-	12.3	23.0
Working capital	-20.5	-6.6	-5.9
Other	6.0	2.7	30.9
Investments Cash Flow	-0.3	-0.4	-166.2
Financing Cash Flow	3.0	-0.4	360.2
Net Change in Cash	-5.5	2.3	209.6

in NOK million Amounts	31.03.21	31.03.20	31.12.20
Non-current assets	353.9	54.6	363.8
Inventory & receivables	83.6	57.8	77.4
Cash & short-term deposits	329.4	127.6	334.9
Equity	530.0	190.4	508.1
Long-term liabilities	165.0	9.8	188.1
Current liabilities	71.8	39.8	79.8
Total balance	766.9	239.9	776.0

Cash Flow

• Comparison with Q1 '20 mainly driven by improved EBITDA from the European operation and from Asieris milestone payment (Hexvix), offset by one-off items
• Q1 '20: Payment of contract receivable by Asieris
• Q1 '21: Cash outflow from working capital, driven by European integration, accounts payable and receivables
• Net cash flow NOK -5.5 million, cash balance end of first quarter 2021 NOK 329.4 million

Assets

Non-current assets includes intangibles and goodwill from Ipsen transaction totaling NOK 302.4 million

Liabilities

Long-term liabilities includes deferred Ipsen earnout (NOK 126.9 million) and long-term portion of bank term loan (NOK 31.3 million)

Strategy for Shareholder Value Creation

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

*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.

APPROVAL ACCEPTANCE MAJOR & LOCAL GUIDELINES* ACCESS PERMANENT AND FAVORABLE REIMBURSEMENT "ACTIVATED" AWARENESS PATIENT DEMAND VIA ADVOCACY GROUPS AND MEDIA SURGICAL & SURVEILLANCE

KEY SUCCESS FACTORS

ACCELERATE

COMMERCIAL INVESTMENT TO OPTIMIZE THE OPPORTUNITY

Our Mission: Delivering transformative solutions to improve the lives of bladder cancer patients

Photocure's four step strategy to deliver on our mission & vision

Photocure's global commercial bladder cancer platform will be the foundation for transformative deals and value growth

Anticipated Milestones & Corporate Priorities

• Regain prior sales momentum once Covid-19 is in significant decline
• Continue geographic expansion by penetrating untapped European markets, and through additional Hexvix licensing agreements ROW
• Further execute on contracting with Group Purchasing Organizations and Key Hospital/Health Systems in the U.S.
• Present/publish additional clinical data on the use of BLC with Hexvix/Cysview at medical conferences and in journals
• Report on progress of partnered companies and projects -- including Asieris agreements: Hexvix in China & Chile, Cevira Phase III development
• Continue evaluating strategic product or business opportunities

Summary

Summary

Continuing to execute; positioned for growth

• Managed well through a challenging quarter
• Achieved Hexvix/Cysview sales growth in Q1 2021, despite Covid-19 & foreign currency headwinds
• Added 12 new towers in Q1; run-rate above 2020 and current backlog suggests acceleration in 2021
• Continued to drive key initiatives in both commercial regions and with licensing partners
• Delivered positive EBITDA in Q1; Cash position NOK 329.4M vs. NOK 127.6M in Q1 2020
• Covid-19 volatility remains; guidance to be issued when trends are more clear
• Photocure is well-positioned for strong growth post-pandemic

Leading change in bladder cancer