Medistim

Investor Presentation • Oct 24, 2019

Medistim ASA Third quarter 2019

Kari E. Krogstad, President and CEO Thomas Jakobsen, CFO October 24th, 2019

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 2018. 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

• 1. Highlights third quarter
• 1. Financial statements
• 1. Business segments update
• 1. Implementing the strategy

1. Highlights 3rd quarter

9.6 %

Highlights 3rd quarter 2019 • Sales for the third quarter 2019 ended with a 10.2 % growth over Q3 2018 o Currency neutral sales of own products up 15.9 % o 3 rd party products down 25.0 % o Growth for the quarter was driven by high level of sales of combined flow-and-imaging systems and imaging probes o Asia delivered 103 % of revenue growth while USA had a flat quarter • EBIT up MNOK 4.7 to MNOK 19.2, a 32.2 % increase • MiraQ is cleared for sales in Japan Revenue MNOK 85.5 (77.6) EBIT MNOK 19.2 (14.5) Currency No of capital units sold: Flow systems 27 Imaging systems 27 Flow probes 1 677 Imaging probes 31 10.2% 32.2 % 3.9 % 108 % 10.5 % 34.8 % Q3 2019 Q o Q -3.6 %

Procedures (USA) 14 275

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24.10.2019	Medistim ASA Q3 2019

2. Financial statements

8 24.10.2019

Profit and loss Q3 2019

Profit & loss	Q3 2019	Q3 2018
All numbers in NOK 1000
Sales	85 517	77 613
Cost of goods sold	18 463	21 521
Salary and sosial expenses	32 156	26 907
Other operating expenses	11 258	11 606
Total operating expenses	43 414	38 513
Op. res. before depr. and write-offs (EBITDA)	23 640	17 579
EBITDA %	27,6 %	22,6 %
Depreciation	4 462	3 070
Operating result (ENIT)	19 178	14 509
EBIT %	22,4 %	18,7 %
Financial income	3 255	1 425
Financial expenses	1 799	1 758
Net finance	1 455	(333)
Pre tax profit	20 634	14 177
Tax	3 916	3 151
Result	16 717	11 026

Profit and loss YTD September 2019

Profit & loss	YTD Sept 2019	YTD Sept 2018
All numbers in NOK 1000
Sales	268 050	227 967
Cost of goods sold	60 302	58 382
Salary and sosial expenses	86 832	74 523
Other operating expenses	37 687	39 599
Total operating expenses	124 519	114 122
Op. res. before depr. and write-offs (EBITDA)	83 229	55 463
EBITDA %	31,0 %	24,3 %
Depreciation	13 214	9 240
Operating result (EBIT)	70 015	46 223
EBIT %	26,1 %	20,3 %
Financial income	4 161	4 179
Financial expenses	3 282	6 265
Net finance	879	(2 085)
Pre tax profit	70 894	44 138
Tax	16 076	10 974
Result	54 818	33 163

Sales per Quarter (TNOK)

10 Medistim ASA Q3 2019 24.10.2019

Balance sheet - Assets

Balance sheet	30.09.2019	31.12.2018
All numbers in NOK 1000
Assets			350 000 300 000
Intangible assets	40 943	41 944	250 000
Fixed assets	43 819	37 198	200 000
Total intangible and fixed assets	84 762	79 142	150 000 100 000
Inventory	71 631	63 843	50 000
Customers receivables	64 825	70 807	-
Other receivables	12 008	8 309	Q3 18 Q4 18 Q1 19 Q2 19
Cash	49 035	47 490	Intangible assets Fixed assets
Total current assets	197 499	190 449	Inventory Accounts receivable
Total assets	282 261	269 591	Other assets Cash

• Working capital continues to be high, related to high customers receivables from strong sales and high inventory due to security stocks of end-of-life components

Balance sheet - Equity and liability

Balance sheet	30.09.2019	31.12.2018
All numbers in NOK 1000
Share capital	4 585	4 585
Premium fund	44 172	44 172
Other equity	174 387	157 955
Total equity	223 144	206 712
Total long term debt	6 929	7 500
Total short term debt	52 188	55 380
Total equity and liability	282 261	269 592

• 8.25 MNOK in interest bearing debt
• Strong balance sheet with 79.1 % equity ratio
• IFRS 16 increases assets and debt in the balance sheet with 3.5 MNOK

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24.10.2019	Medistim ASA Q3 2019

3. Business segments update

2 500

Flow probes and systems in units

Flow probes in units (excl USA) Flow systems in units (VeriQ & MiraQ capital sales)

• 10.5 % % quarter over quarter growth in number of flow probes driven by growing installed base

• Stable sales of flow-only systems

Imaging probes and systems in units

Imaging probes in units (incl USA)

• 34.8 % increase quarter over quarter
• Increased sale in Asia drives growth for the quarter

Imaging systems in units (VeriQC & MiraQ capital sales)

• 107 % increase in sales of imaging systems
• Sales increase this quarter is driven by strong sales in Asia

Q3 and YTD September revenue performance by region

Mill NOK	Q3 '19	Q3 '18	Q / Q	YTD 19	YTD 18	H / H
Europe	36,1	37,5	-3,7 %	117,1	116,1	0,9 %
USA	29,5	27,5	7,3 %	101,0	74,4	35,8 %
Asia	14,1	7,0	102,8 %	31,0	24,8	25,2 %
ROW (MEA, CAN, SA, AUS)	5,7	5,6	2,3 %	19,0	12,7	48,8 %
Total	85,5	77,6	10,2 %	268,1	228,0	17,6 %

• In Europe, sale of own products increased with 16.7 % in NOK while 3. party decreased with 25.0 %. The decline in 3. party product sales was related to one non-recurring investment contract amounting to 3 MNOK in Q3 2018. Sale of own products YTD ended at MNOK 64.9 which represent a 5.6 % increase. 3. party decreased with 4.4 % YTD.
• In the USA, currency neutral sales was down 1 % because of weaker capital sales for the quarter. YTD the currency neutral growth is 25.3 %.
• Both Asia/Japan and ROW are so far smaller sales territories with significant quarter to quarter variation. Asia contributed strongly to the quarterly sales with >100 % growth. In both territories, it is the sales of the combined flow-and-imaging products that drive the sales increase.

Positive currency effects for YTD 2019 vs YTD 2018 was 9.9 MNOK .

Average actual exchange rate for USD 8.70 and EUR 9.77 versus last year USD 8.03 and EUR 9.59.

Q3 and YTD revenue performance by product

Mill NOK	Q3 '19	Q3 '18	Q / Q	YTD 19	YTD 18	H / H
Procedures (USA)	25,1	20,7	21,2 %	78,5	61,9	26,7 %
Flow probes	22,5	18,9	19,1 %	68,4	60,7	12,6 %
Flow systems (VeriQ & MiraQ)	8,2	11,0	-25,8 %	24,4	24,7	-1,6 %
Imaging systems (VeriQ C & MiraQ)	14,0	7,0	101,5 %	37,5	20,8	80,8 %
Imaging probes	1,7	0,9	101,3 %	3,9	2,4	66,7 %
3rd party	13,8	18,4	-25,0 %	52,1	54,6	-4,4 %
Other	0,2	0,8	-75,3 %	3,2	2,9	10,3 %
Total revenues	85,5	77,6	10,2 %	268,0	228,0	17,6 %

• Procedure sale in the USA: The total number of procedures increased with 9.6 % in Q3. The higher growth in NOK compared to volume growth is due to higher share of flow-and-imaging procedures with higher price compared to a flow-only procedure. In addition there is a positive currency effect . YTD, the number of procedures grows with 23.1 %, in line with the growth in revenue adjusted for currency effects.

• Flow probes: 10.5 % increase in units while revenue increases 19.1 %, due to higher sales through the direct sales channels. YTD the unit increase is 12.0 % vs 12.6 % in revenue.
• Flow systems: 4.5 % decrease in units and 25.8 % decrease in NOK for the quarter due to currency as well as sales channel. YTD number of units decreased with 3.8 % while revenue decreases with 1.6 %.
• Imaging systems: Imaging systems increase with 107 % in units in Q3 and 66 % YTD. Increased sales through direct channel and currency contributes to higher revenue than growth in units for the YTD figures.
• 3 rd party products: Steady performance YTD. The decline in Q3 was related to one large investment contract in Q3 2018 that amounted to 3.0 MNOK.

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24.10.2019	Medistim ASA Q3 2019

4. Implementing the strategy

Growth opportunities – in developing Medistim markets

Emerging, high-growth economies (e.g. brIC)	4
Developing Medistim markets (e.g. USA, UK, Fra)	2
Strong Medistim markets (e.g. Jp, Nordic, Germany) >50% CABG share	1		3
GEOGRAPHIES APPLICATION AREAS	CABG surgery (2 BNOK)	Vascular surgery (>1 BNOK)		Other open (1 BNOK)	heart surgery

• 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
  • o Early adopter & KOL support
  • o REQUEST study
  • o Ease conversion from flow to imaging with MiraQ
• 2. Achieve routine use of both Flow and Imaging by fighting ignorance, indifference and ease-of-use objections through
  • o Clinical marketing, Guidelines and Educational programs
  • o Product innovation for ease of use
  • o Increased sales force capacaity
• 3. Build and strengthen position in vascular surgery
  • o Dedicated system (MiraQ Vascular) & probes
  • o Build position with societies and KOLs
• 4. Offer an entry-level solution to reach emerging, pricesensitive, high-growth markets

Performance US sales organization

RESULTS Q3 2019

• Revenues down 1.0 % in USD
  • o Revenues up 7.3 % in NOK, to MNOK 29.5, due to favorable currency
  • o YTD up 25.3 % in USD

Medistim ASA Q3 2019

• Total number of procedures up by 9.6 %
  • o 4.5 % growth in flow procedures
  • o 44.8 % growth in imaging procedures
  • o YTD up 23.1 % in total number of procedures
  • o 4 capital sales for the quarter compared to 8 for the same period last year
• Continued growth in new customers
  • o 6 completely new accounts in Q3
  • o 22 new accounts YTD

Number of procedures per year

Number of procedures per consecutive quarter

MiraQ approved for sale in Japan

• A large market for Medistim due to > 600 cardiovascular centers and about 20.000 coronary bypass procedures performed per year
• Medistim has a large installed base of > 700 systems and is covering over 80 % of coronary surgeries performed
• With the latest MiraQ generation, there is a big potential to upgrade the installed base and convert to the combined use of imaging-and-flow

20 largest shareholders

Rank	Holding	Shares in %	Name
1	4 003 500	21,8	INTERTRADE SHIPPING AS
2	1 862 500	10,2	SALVESEN & THAMS INVEST AS
3	1 000 000	5,5	FOLLUM CAPITAL AS
4	910 246	5,0	SWEDBANK ROBUR SMABOLAGSFOND
5	649 373	3,5	Skandinaviska Enskilda Banken AB
6	633 403	3,5	State Street Bank and Trust Comp
7	587 828	3,2	Skandinaviska Enskilda Banken AB
8	581 577	3,2	SEB EUROPAFOND SMÅBOLAG
9	536 469	2,9	Skandinaviska Enskilda Banken S.A.
10	494 936	2,7	BUANES
11	336 456	1,8	HSBC TTEE MARLB EUROPEAN TRUST
12	331 095	1,8	JPMorgan Chase Bank, N.A., London
13	272 914	1,5	HOLBERG NORGE
14	262 643	1,4	Nordnet Bank AB
15	258 310	1,4	Danske Bank A/S
16	251 358	1,4	BNP Paribas Securities Services
17	250 000	1,4	Danske Invest Norge Vekst
18	240 106	1,3	Danske Bank A/S
19	211 000	1,2	State Street Bank and Trust Comp
20	200 616	1,1	CORE NY TEKNIK

Seeing is believing