Photocure ASA

Investor Presentation • Nov 10, 2020

Photocure ASA Results for 3rd quarter 2020

10 November 2020

Daniel Schneider, President and CEO

Erik Dahl, CFO

Disclaimer

By reading this company presentation (the "Presentation") or attending any meeting or oral presentation held in relation thereto, you (the "Recipient") agree to be bound by the following terms, conditions and limitations.

The Presentation has been produced by Photocure (the "Company") for information purposes only and does not in itself constitute, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction. The distribution of this Presentation may be restricted by law in certain jurisdictions, and the Recipient should inform itself about, and observe, any such restriction. Any failure to comply with such restrictions may constitute a violation of the laws of any such jurisdiction.

The Recipient acknowledge that it will be solely responsible for its own assessment of the Company, the market and the market position of the Company and that it will conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the Company's business. The Company shall not have any liability whatsoever (in negligence or otherwise) arising directly or indirectly from the use of this Presentation or its contents, including but not limited to any liability for errors, inaccuracies, omissions or misleading statements in this Presentation, or violation of distribution restrictions.

An investment in the Company involves significant risk, and several factors could adversely affect the business, legal or financial position of the Company or the value of its securities. For a description of relevant risk factors we refer to the Company's annual report for 2019. Should one or more of these or other risks and uncertainties materialize, actual results may vary significantly from those described in this Presentation. An investment in the Company is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment.

This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it operates. Any forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts and are subject to risks, uncertainties and other factors that may cause actual results and events to be materially different from those expected or implied by the forwardlooking statements. The Company cannot provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments.

This Presentation speaks as at the date set out on herein. Neither the delivery of this Presentation nor any further discussions of the Company shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements).

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts.

Thousands of bladder cancer patients across the world have received our breakthrough product

Photocure Marketing Authorization

• Partner for Marketing Authorization
• Partner Marketing Authorization in process

Photocure – Presentation of Q3 2020 Results 3 Hexvix Summary of product characteristics: https://www.hexvix.com/safety-information / Cysview prescribing information: https://packageinsert.s3.us-east-2.amazonaws.com/Cysview+PI+2020.pdf

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

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

ONE PRODUCT

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

Highlights in the 3rd quarter:

Bladder cancer has been chronically underserved

1) Globocan. Incidence/mortality by population. Available at: https://gco.iarc.fr/today, accessed [December 2019]. 2) Sievert KD et al. World J Urol 2009;27:295–300 and Bladder Cancer. American Cancer Society. https://www.cancer.org/cancer/bladdercancer.html. 3) Mariotto AB, Yabroff KR, Shao Y, Feuer EJ, Brown ML. Projections of the cost of cancer care in the United States: 2010-2020. J Natl Cancer Inst. 2011;103(2):117-28. 4) Sylvester RJ et al. Eur Urol 2006; 49:466-467 Global Data: Bladder Cancer Report Photocure – Presentation of Q3 2020 Results 6

Blue Light Cystoscopy: Creating a New Standard of Care "You cannot treat what you cannot see!"

Improved detection vs. white light cystoscopy alone¹–⁴

• Hexvix®/Cysview® is a drug that preferentially accumulates in bladder cancer cells, making them glow bright pink during blue light cystoscopy⁵
• Hexvix blue light cystoscopy offers improved detection during surgery and surveillance leading to a reduced risk of recurrence vs. white light cystoscopy alone¹–4,6–⁹

Bladder cancer seen under white light (left) and using Hexvix®/Cysview® blue light cystoscopy® (right) - Courtesy of Professor Dirk Zaak; Traunstein, Germany.

Summary of product characteristics: https://www.hexvix.com/safety-information/ Cysview prescribing information: https://packageinsert.s3.us-east-2.amazonaws.com/Cysview+PI+2020.pdf References: 1. Hermann GG et al. BJU Int 2011; 108(8 Pt 2):E297–E303. 2. Daneshmand S et al. J Urol 2018; 199(5):1158–1165. 3. Stenzl A et al. J Urol 2010; 184(5):1907–1913. 4. Burger M et al. Eur Urol 2013; 64(5):846–854. 5. Hexvix® (hexaminolevulinate hydrochloride) 85 mg Summary of Product Characteristics. 2019. 6. Drejer D et al. Urology 2020; 137:91–96. 7. Gallagher KM et al. World J Urol 2017; 35(12):1871–1877. 8. Geavlete B et al. BJU Int 2012; 109(4):549–556. 9. Grossman HB et al. J Urol2012; 188(1):58–62.

Supportive environment for becoming the standard of care for the detection & management of bladder cancer

Recommended in global & national guidelines:

The Patient Journey: Characterized by long term follow-up with repeat procedures

Q3 2020 Financials

Q3 Financial Highlights - Strong Development Negatively Impacted by one-off Transition Costs

NOK million Amounts in	Reported Q3 '20	Transition Impact *	Adjusted Q3 '20	Q3 '19
Unit Sales ('000)	16.9k	-	16.9k	15.8k
Hexvix/Cysview Rev.	49.6	8.9	58.5	51.1
Total Revenue	49.9	8.9	58.8	60.8
Cost of Goods Sold	-3.5	2.5	-6.0	-4.7
Operating Expenses	-51.9	-1.5	-50.4	-47.8
EBITDA before Restr.	-5.4	7.9	2.5	8.3
Restructuring Exp.	-7.2	-7.2	-	-
Earnings before Tax	-14.2	15.1	0.9	5.3

* Impact of Q3 Transition Activities in Europe

Strong Sales Development in Key Markets

• U.S. volume growth 17%
• Europe volume growth 7%
• Hexvix/Cysview revenue growth (adjusted) 14%

Successful Transition and Launch in Europe

• Transition impact on EBITDA NOK -7.9 million. Adjusted EBITDA NOK 2.5 million
  • Return of inventory from Ipsen NOK 4.8 million
  • Reduced purchase by Ipsen NOK 4.1 million
  • Operating expenses related to transition NOK 1.5 million
• Total impact on earnings before tax NOK 15.1 million
  • Restructuring expenses NOK 7.2 million

Segment Performance

Third Quarter 2020

million Amounts in NOK	Q3 '20	Q3 '19	Change	YTD '20	YTD '19	Change
Commercial Franchise
U.S. Revenue	30.3	25.2	20%	80.1	70.9	13%
Nordic Revenue	9.7	9.9	-3%	35.8	33.7	6%
Partner Revenue	9.7	16.0	-40%	44.0	49.9	-12%
Revenue Adjustment *	-			-2.3
Total Hexvix®/Cysview®	49.6	51.1	-3%	157.5	154.4	2%
Other Revenue	0.3	1.0		0.8	2.9
Total Revenue	49.9	52.1	-4%	158.3	157.3	1%
Operating Expenses	-50.2	-44.9	12%	-160.6	-136.9	17%
EBITDA before restr.	-3.7	2.6		-13.7	5.7
Development Portfolio
Total Revenue	-	8.7		0.3	8.7
Operating Expenses	-1.7	-2.9	-43%	-5.5	-10.2	-46%
EBITDA before Restructuring	-1.7	5.7		-5.4	-1.6
Total Photocure
EBITDA before Restructuring	-5.4	8.3		-19.1	4.2

* Revenue Adjustment: Revenue Items for Previous Years Accounted for this Period

Commercial Franchise

• U.S.: Q3 Revenue increase of 20% reflecting rebound from Covid-19
  • Q3 unit sales 17% above last year
• Nordic: Q3 revenue decline mainly driven by sale from Covid-19 related safety stock replacing own sales
• Partner: Revenue decline in Q3 driven by less purchase and return of remaining inventory from Ipsen, impact in total NOK 8.9 million on revenue. Adjusting for this transition impact Q3 revenue increased 16%
  • Q3 unit sales increased 7% from last year
• EBITDA: Q3 at NOK -3.7 million. Adjusting for transition costs Q3 EBITDA at NOK 4.2 million, an improvement of 61% from Q3 2019

Development Portfolio

• Revenue Q3 2019 is sign-on fee from Asieris
• Operating expenses Q3 reduced YOY 43%

Consolidated Income Statement

Third Quarter 2020

million Amounts in NOK	Q3 '20	Q3 '19	Change	YTD '20	YTD '19	Change
Hexvix®/Cysview® Revenue	49.6	51.1	-3%	157.5	154.4	2%
Other Revenue	0.3	9.7		1.1	11.5
Total Revenue	49.9	60.8	-18%	158.6	166.0	-4%
Gross Profit	46.5	56.1	-17%	147.0	151.3	-3%
Operating Expenses	-51.9	-47.8	8%	-166.1	-147.2	13%
EBITDA before Restructuring	-5.4	8.3		-19.1	4.2
Depreciation & Amort.	-3.8	-4.0		-11.6	-12.4
EBIT before Restructuring	-9.2	4.3		-30.7	-8.3
Restructuring Expenses	-7.2	-		-10.4	-
Net Financial Items	2.2	1.0		8.2	0.9
Earnings before Tax	-14.2	5.3		-32.8	-7.4
Tax Expenses	8.0	-5.9		0.2	-3.3
Net earnings	-6.2	-0.6		-32.6	-10.7

Revenue, Significant One-off Items

• Excluding one-off's Q3 YoY revenue increases 13%
  • Q3 2020: Transition items Ipsen NOK 8.9 million
  • Q3 2019: Sign-on fee paid by Asieris NOK 8.7 million

Operating Expenses

Excluding transition costs Ipsen (NOK 1.5 million) YoY Q3 growth of 5%, mainly driven by foreign exchange

EBITDA

Driven by transition costs Ipsen of NOK 7.9 million

Restructuring Expenses

One-off costs related to setting up European organization

Net financial items

Driven by foreign exchange

Cash Flow

Third quarter 2020

Amounts in NOK million	Q3 '20	Q3 '19	YTD '20	YTD '19
Operations Cash Flow	-9.9	9.9	4.5	-9.8
Earnings before Tax	-14.2	5.3	-32.8	-7.4
Working Capital	-4.2	1.8	10.2	-10.2
Other	8.5	2.9	27.1	7.8
Investments Cash Flow	-166.4	-	-166.5	0.6
Fixed & Intangible Assets	-0.1	-0.4	-1.4	-0.7
Return of Marketing Rights	-166.7	-	-166.7	-
Other	0.4	0.4	1.6	1.3
Financing Cash Flow	-1.2	-0.7	358.5	-1.8
Private Placements	-1.3	-	301.7	-
Loan	-	-	50.0	-
Other	-	-0.7	6.8	-1.8
Net Change in Cash	-177.6	9.2	196.5	-10.9
Ending Cash Balance	321.8	95.9	321.8	95.9

Cash Flow from Operations

• Q3 impacted by lower earnings than prior year as well as inventory return from Ipsen (working capital).
• YTD improvement driven by milestone payment of USD 1.5 million from Asieris

Cash Flow from Investments

Q3 includes acquisition of marketing rights from Ipsen, EUR 15 million

Cash Flow from Financing

YTD net proceeds from private placements of NOK 302 million as well as a loan provided of NOK 50 million

Cash Balance Quarter End

Quarter end cash balance at 321 million after net cash outflow in Q3 of NOK 178 million

Balance Sheet

30 September 2020

million Amounts in NOK	2020 Sept. 30	2019 Sept. 30	2019 Dec. 31
Non-Current Assets	226.7	73.1	70.5
Investments	5.9	16.1	13.6
Marketing Rights	166.7	-	-
Tax Asset	38.5	49.1	38.3
Other	15.6	8.0	18.5
Current Assets	381.7	143.5	186.9
Inventory & Receivables	59.8	47.6	61.6
Cash & Equivalents	321.8	95.9	125.3
Total Assets	608.4	216.6	257.4
Shareholders Equity	491.8	166.4	208.6
Loan	50.0	-	-
Other Long-Term Liabilities	8.0	10.8	10.0
Current Liabilities	58.7	39.5	38.7
Total Equity & Liabilities	608.4	216.6	257.4

Non-Current Assets

• Net investments of NOK 5.9 million, driven by investments in Cysview phase 3 project. This project will be fully amortized in 2020
• Marketing rights NOK 166.7 million, acquired from Ipsen
• Deferred tax asset of NOK 38.5 million, reduced YoY mainly due to foreign exchange driven movements in parent company
• Other items includes impact from adoption of IFRS 16 (Leases) as well as the long-term part of the Asieris receivable

Current Assets

Inventory & receivables increased YoY, mainly driven by inventory including inventory return from Ipsen

Equity & Liabilities

• Shareholder's equity of NOK 491.8 million. Equity ratio of 81%
• Three-year term loan of NOK 50 million, floating interest rate
• Other long-term liabilities include impact from adoption of IFRS 16 (Leases)

Launching Hexvix® Operations in Europe on 1 October

Large Untapped Potential in the 150 Mill EUR European Market

Established Photocure Markets

Nordics: 40% penetration

Commercialized countries by former partner

DACH region: 30-35% penetration France: ~15% penetration

Untapped EU Markets

UK, Spain, Italy & other countries ~0% penetration

Europe	U.S.
Europe: 165,000 new cases and more than 50,000 deaths annually1	US: 82,500 new cases and more than 18,000 deaths annually1
EU5: 360,000 TURBTs	US: 315,000 TURBTs
Ave. Hexvix® price ~ EUR 420	Ave. Cysview® price ~ USD 1071
Germany: 30-35% current penetration, >3,500 units per sales FTE, growing	Penetration 5-10% Growth rate in excess of 35% Y-o-Y
Major markets like UK, Spain were not pursued, very limited resources in Italy, France	Increased commercial investment and focus delivering results

1.Globocan 2018 data on bladder cancer. Internal patient-based model supported by 3rd party sources Potential = Total TURBTs in EU5 x Hexvix price

Photocure – Presentation of Q3 2020 Results 17

Launching Hexvix® Operations in Europe

• Key commercial resources in place and direct promotion initiated on 1 October
• 100% of previously Ipsen DACH Hexvix sales force now employed by Photocure ensuring no disruption in service and support
• Distribution channels built across all of Europe
• Legal Entities established in Germany and France

U.S. Positioned for Growth

U.S. demonstrated strong signs of recovery in Q3

amidst Covid-19 resurges with 17% unit growth from Q3 2019

U.S.: Continued blue light cystoscope placements

despite challenges of pandemic

Annual New Installations

Tower placements by year

Cumulative install base continues strong trend

Rigid Towers Flex Towers

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

Photocure – Presentation of Q3 2020 Results 21

Hexvix®/Cysview® – key Market enablers in place: ready for growth and our Ambition to become the standard of Care

KEY SUCCESS FACTORS

*AUA, EAU, SUO, AFU, NICE, DGU guidelines Photocure – Presentation of Q3 2020 Results 22

Increasing media attention for the BLC® procedure and bladder cancer

UroToday 11 and 24 June, 13 September 2020

Sept 2020

Norwegian patient

association magazine

pic Fulguration While office biopsy will other yield city a Bilandida it since on ACA/BUC) jasinfact boos J Und 2010, 1981, 1981, 1991. lamina propria it is not an optimal 11 2404 24 Storem MI, Walker MM, Harloin LJ ot all - itaging encality and resucte in Missions of the teal passells an irbitiansisply! de it rarely cibtained. In addition, while test formale? Ent Und 2001, IR 471.

specifies r'valuations of black I rythomopy with hensmibidovals mir common any andro hiladilly suma Sect 210209: eases: 10111111 Stap, 2714186.

it is largely toverated it can be quite R. Marian N. Tarcaron S. Ministlant: R at the procedure and to Including ord-pettibuts anson slowing stream uncombinenable for those with black- ty it intelled. sespect terrediance of Idadshiv namier: bock tier neck and trigone lessons. These COM, COM, Kadery nand should of statignaticy and when thereld wa parients may peopler an assenthets. Interpre) ! I Kanskomsed 2010, 301 112 4. ings, ollice Islopsy Toutels RX, Law D and Loton Y: Contrib- Despite its limitations office option for many intent of callars bases ( trainminted and Chiad biopay is feinible, conteffective, der cancer mirveil- rogy with Rivishings: Pringhouse, Rolw grand it inteologically reasonable and has Hat relieveaux planniand! Cooking ) 2005, 98 by those will red 6.6 a low rink of complications. Larly upoulergy Dingmont Jocheen (1, Wajns R. Wygman 3 (4 al: bes experience with blue light flex- intinguish between production and to and to comment of bliadely tone cystoncopy in this setting has hancell inding be submission in lieverly leaving mary lestom and a pirospeciblem, phase Ell mightoreduri smally imposied detection of high gride sise such as CIS. I Creat points, TTC: Boul discase and improves office biopsy rils techinique in 6. Durandonand S. Patril N. Lerinn Y 10 al. Ell and fulguration. Purther studies and founds and schools of folice light flexible ext es with love grade needed to evaluate cost and deter- business with helpsestmeleveling in the Ider cancers with movedame of Elaskfare concert a phand mane the uptimal patient for office bamore. However, III, contytonother, poundicionin washy } Unai blise light cystotcopy, bloper and pour 199 1118 in critics. If there Sanding, & 1. Fredelel Y . and Lotten Y . Effice . of like light · banden the small 23/67081007 114 114/812000000000 2011/110000000 I sampled may be coll nation of collegie. MIL! Sea 2019. 134. 201 1. Chang 338, Bon-Film Tria, Chossi R of sil. Di SUBTOMER OF SEARCHAE A. Lonn Y. Chopelin I. Albumail 31 at 42 Plus right-trains mont in responsible info strenger and and and the

Pack DS, Hlwama JH, Googl III xi since with at the reliesser, salesty, as classific interess of Pariginouslives windlers in called as the need claim commond i a computation analysis' ho hama mostellion of follackday Association in coloni. J Endourel 2013, EF: 12 49. 58. All Bharaskir Al Ancasalle H. Lee B. C. R at al: A your offertifyemore and misformation of him rick man cours stow loking a somete master which to be gatures. Unchegy 2015, 15:301. 11. Swants RX Phollershan k. NK, Holson tel. The microsmobile is of followere wasses and considerations of conting for a ener. Kao Used 2010, 48. 511. E. Wa L. Zham H. Worig II at all Last Irele of govery jawalbeth a ex the 1 the young and eldesky. "assired and nemaniality, noncopesticibot and tilled listopstable interest ( J. Autoclain 20057), Sinc 2.). Bargisk DL Bokle A. Burger 30 at a Develoniales on bon missante auto liad catchiseman citi that billeolidies: sepallat Rott Uval 7007; Box 447

AUA News article Sept 2020

Increasing media attention by Photocure taking over Hexvix in Europe markets

Finansavisen 18 August 2020

Dagens Medisin 5 October 2020

HealthTalk Norway 6 October 2020

Photocure – Presentation of Q3 2020 Results 24 Finansavisen 1 July 2020

Summary and outlook

Guidance: approximately 1bn revenue in 2023

Current-year guidance:

In Q3 the rebound continued

Potential increased pressure on revenue in Q4 due to COVID-19 impact:

• Hospitals are better prepared for a second wave of the pandemic
• Procedures may be postponed
• Restricted access to the OR
• Capital equipment budgets are being temporarily reprioritized, impacting installed base growth in the near term

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

Photocure's four step strategy will deliver our mission

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

Ambition of worldwide revenues in range of NOK 1 Billion in 2023 and approximate 40% EBITDA margin in 2023

Leading change in bladder cancer