Medistim

Investor Presentation • Apr 20, 2016

Medistim ASA First Quarter 2016

Kari E. Krogstad, President and CEO Thomas Jakobsen, CFO April 20th, 2016

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 2015. 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 first quarter
• 1. Financial statements
• 1. Business segments update
• 1. Implementing the strategy

1. Highlights first quarter

Highlights first quarter 2016

	Q1 2016	Q o Q
• 13.1 % sales growth for the quarter Sales of own products increased with 28.8 % to o MNOK 49.1	Revenue MNOK 65.5 (57.9)	13.1%
US sales up 42.8 % to MNOK 22.9 o
3. party sales down by 17.1 % to MNOK 16.4 o	EBIT MNOK 13.5 (9.9)	37.2 %
• 37.2 % EBIT growth to MNOK 13.5 for the quarter
• Profit per share grows 26.8% to NOK 0.52 (0.41)	Currency	8.1 %
• The MiraQ product line launched in the USA	No of units sold:
• The General Assembly decided to pay a dividend of NOK 1.65 (1.40) per share at the General Meeting 19th	Systems 27	-3.6 %
of April	Flow probes 1 501	13.9 %
	Imaging probes 15	16.6 %
	Procedures (USA) 10 623	28.3 %

2. Financial statements

Profit and loss Q1 2016

Profit & loss	Q1 2016	Q1 2015
All numbers in NOK 1000
Sales	65 500	57 907
Cost of goods sold	15 686	16 979
Salary and sosial expenses	22 397	18 864
Other operating expenses	11 044	9 640
Total operating expenses	49 127	45 483
Op. res. before depr. and write-offs (EBITDA)	16 373	12 424
EBITDA %	25,0 %	21,5 %
Depreciation	2 834	2 554
Operating result (EBIT)	13 539	9 870
EBIT %	20,7 %	17,0 %
Financial income	126	8 246
Financial expenses	1 065	7 208
Net finance	(939)	1 038
Pre tax profit	12 600	10 909
Tax	3 091	3 499
Result	9 509	7 410

Sales per Quarter (TNOK)

8

Balance sheet - Assets

Balance sheet	31.03.2016	31.12.2015
All numbers in NOK 1000
Assets
Intangible assets	55 347	55 122
Fixed assets	14 707	14 158
Total intangible and fixed assets	70 054	69 280
Inventory	53 996	46 613
Customers receivables	43 546	44 831
Other receivables	9 113	8 787
Cash	43 282	48 925
Total current assets	149 937	149 156
Total assets	219 991	218 436

• Compensation for returned inventory to Medtronic due in April

Balance sheet - Equity and liability

Balance sheet	31.03.2016	31.12.2015
All numbers in NOK 1000
Share capital	4 585	4 585
Premium fund	41 852	41 852
Other equity	119 269	109 727
Total equity	165 706	156 164
Total long term debt	6 721	7 001
Total short term debt	47 564	55 271
Total equity and liability	219 991	218 436

• 9.3 MNOK in interest bearing debt
• The General Meeting decided a dividend of NOK1.65 per share

3. Business segments update

Flow probes and systems in units

• Strong quarter with 13.9 % overall growth in units, driven by Asia and RoW

• After a strong fourth quarter probe sales in Europe, first quarter 2016 ended at the same level as for the comparable quarter in 2015

• Number of units sold was 17 compared to 16 systems for the comparable quarter

• Higher level of sales to end customer rather than distributors gives increased system sales revenues for the quarter
• Of the 17 flow systems sold, 5 were MiraQ systems sold in Europe

Imaging probes and systems in units

Imaging probes in units (incl USA)

• A slow quarter after a strong fourth quarter 2015

• 50 % of the imaging probes were sold in Asia

• A slow quarter after a strong fourth quarter in 2015

• Of the 8 imaging systems sold, 4 were MiraQ systems; 1 were sold in the UK, 2 in the USA and 1 in ROW

Q1 revenue performance by region

Mill NOK	Q1 '16	Q1 '15	Q / Q
Europe	31,7	33,4	-5,0 %
USA	23,0	16,1	42,8 %
Asia & Jp	7,1	5,9	22,0 %
ROW (MEA, CAN, SA)	3,7	2,6	41,8 %
Total	65,5	57,9	13,1 %

• In Europe, 3. party products declined by 17.1 % due to the loss of the Medtronic agency. Own products increased with 12.8 % mainly driven by favorable currency.
• In the USA, the strong growth in NOK in Q1 was driven by both volume growth and favorable currency. Currency neutral sales for the quarter shows a 24.6 % increase. The growth came from both capital sales and procedure sales (PPP).
• Both Asia/Japan and ROW are so far smaller sales territories for Medistim and quarterly performance varies significantly. Sales in China drives the growth in the first quarter.

Positive currency effects for Q1 with 4.7 MNOK.

Q1 revenue performance by product

Mill NOK	Q1 '16	Q1 '15	Q/Q
Procedures (USA)	20,5	15,4	32,9 %
Flow probes	17,2	13,8	24,5 %
Flow systems (VeriQ & MiraQ)	4,3	2,7	59,9 %
Imaging systems (VeriQ C & MiraQ)	5,9	4,6	26,6 %
Imaging probes	0,8	0,9	-7,7 %
3rd party	16,4	19,8	-17,1 %
Other	0,4	0,6	-36,6 %
Total revenues	65,5	57,9	13,1 %

• Procedure sale in the USA: Flow procedures are up 27.5% and imaging procedures are up 35.9 % in Q1. Strong contribution from probes sold to capital investments.
• Flow probes revenue: Volume growth was 13.9 % and remaining sales increase is related to favorable currency.
• Flow systems: Sold 1 more unit compared to last year. Revenue increase is related to higher level of sales to end customers rather than through distributors, in addition to favorable currency.
• Imaging systems and probes: 3 sales to end users drive the increase; 2 capital sales in the US and 1 in UK.
• 3rd party products: Decrease in sales due to the loss of the Medtronic agency.

4. Implementing the strategy

16

Growth opportunities – in underdeveloped markets

• 1. Strengthen our position as market leader by establishing combined TTFM & Imaging as the new standard of care through
• o Early adopter KOL support
• o Easier conversion to imaging with MiraQ
• 2. Fight ignorance and indifference to QA by increasing the level of evidence and awareness through
• o Clinical marketing
• o Educational programs
• o Increased sales capacity
• 3. Product innovation and positioning to target new segments in vascular and open heart surgery
• o MiraQ Vascular
• o Entry-level flowmeter for price sensitive segments

20.04.2016 Medistim ASA Q1 2016 17

Number of procedures per year

RESULTS 2015

• Revenues up by 42.8 % in NOK
• 24.6 % growth in USD
• Number of procedures up by 28.3%
• o 27.5 % growth in flow procedures
• o 35.9 % growth in imaging procedures

High performance US sales organization

• 1 new account
• 1 TTFM account converted to Imaging

# of Procedures

The MiraQ system family launched in the USA

• 23-25. January 2016:

MiraQ Cardiac, Vascular and Ultimate launched at the Society of Thoracic Surgery meeting in Phoenix, Az

• Sales team fully trained
• Over half of the pipeline deals are MiraQ
• Complete vascular product package provides further opportunities for growth in the USA