Arctic Bioscience

Presentation of financial results; Q4 2024 update / prelim. FY 2024 results

February 27th 2025

Christer L. Valderhaug (CEO) Jone R. Slinning (CFO) Runhild Gammelsæter (Medical Director) Matters discussed in this Presentation may constitute or include forward-looking statements. Forward-looking statements are statements that are not historical facts and may include, without limitation, any statements preceded by, followed by or including words such as "aims", "anticipates", "believes", "can have", "continues", "could", "estimates", "expects", "intends", "likely", "may", "plans", "forecasts", "projects", "should", "target" "will", "would" and words or expressions of similar meaning or the negative thereof. These forward-looking statements reflect the Company's beliefs, intentions and current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. Forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The forward-looking statements in this Presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions that may not be

accurate or technically correct, and their methodology may be forward-looking and speculative.

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A multitude of factors can cause actual results to differ significantly from any anticipated development expressed or implied in this Presentation, including among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Company's businesses, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other

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This Presentation is not a prospectus and does not contain the same level of information as a prospectus.

Disclaimer

Developing and commercializing pharmaceutical and nutraceutical products based on unique bioactive marine compounds, utilizing proprietary technology and methodology

Intro and 2024 operational highlights Operational review Nutra Operations and Financing Operational review Pharma Business outlook Q&A

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2024 consolidated Group financial review (prelim.)
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Agenda

Intro and 2024 operational highlights

Strong ending to 2024 Q4 2024 with highest ever sales revenue, leading to 29 % y/y growth	Positive development in gross margin Gross margin 32,7 % (2024) vs. 29,0 % (2023)	Joint Venture with Kotler to be established Term sheet agreed to commonly develop the Chinese and Southeast Asian market together
ABS302: Arctic Orphan Grant received from Innovation Norway to develop pre-clinical material, and provide further basis for development of the pharmaceutical business	New funding of NOK 30 million secured Long term funding to bring the Company into cash positive operations	Focus on cost reductions into 2025 Several cost reduction initiatives to reduce operational and capital expenditures already implemented

2024 highlights

Phase IIb clinical trial for HRO350 moving towards 12-months readout Results from 6-months readout published in October 2024, 12-months readout expected end Q1 2025

Operational review Nutra

Nutra Norway – B2C/B2B

Record high B2C sales under challenging market conditions in Norway with a 15 % y/y growth – mainly subscriptions based

B2B sales in Norway also reached record high sales, with offline distribution trough Sunkost, Life, Kinsarvik and Farmasiet

Launched ROMEGA® Gravid in the Norwegian market

Planning to launch ROMEGA® Beauty in H1 2025

Looking to extend B2C sales outside of Norway – infrastructure/supply chain being established

Nutra B2B International

B2B products: sold in Americas, Europe and APAC

− Bulk products (oil, capsules, protein)
− Private label
− Customized products
− The ROMEGA® ingredient present in more than 40 consumer brands globally

Strong sales in the European market with a 50% y/y growth

A somewhat disappointing development in North America, but action taken during Q4 2024 through establishing a sales and distribution agreement with Berkem Group, already showing positive signs

Further expansion in both existing and new markets expected going forward

ROMEGA® in China – a success story

In 2020 ABS entered into an exclusive distribution agreement with Kotler Marketing Group China for sale and distribution of ROMEGA® products in the Chinese market

Kotler Marketing group invested in ABS in 2020 and is currently the 8th largest shareholder

ROMEGA® products are currently sold cross-border eCommerce into China from Hong Kong

An approval process is ongoing with the Chinese food authorities to approve herring caviar oil as an ingredient into China. This will open up new commercial opportunities with a much broader distribution. Approval is expected in 2026

The partnership has been a success – and a formal strengthening of the partnership is in process through establishing a Joint Venture for the development of the Chinese and Southeast Asian markets

Operations and Financing

Operational improvements

Operational improvements and cost reduction initiatives to reduce operational and capital expenditures under implementation:

Improve manufacturing process
Reduce OPEX related to external consultants, services, premises, communication & IT and travel
Reduce personnel cost
Reduce CAPEX by prioritizing projects and adjusting ongoing projects

Convertible loan from investors;

30 MNOK financing solution established in January '25 Expected to bring the company into a profitable operation in 2026*

• Conversion possible immediately after tranches paid at 75% of VWAP last 5 trading days • Max convertible price at 3 NOK/share

* Pharma development beyond the HeROPA phase IIb-study will be financed separately

2024 consolidated group financial review

(prelim.)

Key financial figures

GROSS MARGIN AVAILABLE LIQUIDITY

Breakdown of Nutra revenue

REVENUE BY BUSINESS LINE REVENUE BY REGION

Strong ending to 2024 led to a growth in sales revenues of 29 %

compared to 2023

Continued positive development in B2C-segment in line with expectations, with a y/y revenue growth of 15 %
Very strong development for the European market, 50 % y/y revenue growth in 2024
Sales in the American market slower than expected, new distribution partner in the US will contribute positive in 2025

Positive gross margin development in 2024

2024 gross margin 3,7 percentage points above 2023 gross margin
Increased prices and more advantageous product mix of goods sold contributed positive to this development

Operating costs in line with total budget for the year, but significant cost reduction initiatives taken, and some already implemented, which will materialize in 2025

EBITDA results

TNOK	2024	2023
Sales revenue	43 484	33 750
Other income	920	6
Cost of goods sold	29 256	23 976
Gross profit	14 228	9 773
Gross margin %	32,7 %	29,0 %

Employee benefits expenses	25 949	23 513
Other expenses	29 498	29 470

EBITDA	-40 299	-43 204
One-off costs EBITDA adj.	3 484	4 606
Adj. EBITDA	-36 815	-38 598

Available liquidity end of period of MNOK 7,0

Cash flow from operations MNOK -39,3 mainly driven by negative operating result

Cash flow from investments MNOK -56,8, mainly all related to the HRO350 phase IIb study

Cash flow from financing activities MNOK 19,8, mainly related to use of credit facility

New financing of MNOK 30 secured in January 2025

• MNOK 15 in long-term loan from Innovation Norway

• MNOK 15 in long-term convertible loan from existing and new

investors

The new funding, in combination with cost reduction initiatives to reduce both operational and capital expenditures, will give a financial runway and stability towards cash positive operations.

Cash flow development

TNOK	2024	2023

Net cash flow from operating activities	-39 333	-40 286

Net cash flow from investment activities	-56 760	-43 104

Net cash flow from financing activities	19 759	18 841

Net change in cash	-76 334	-64 549
Cash at the start of the period (1.1)	79 603	144 152
Cash at the end of the period (31.12)	3 269	79 603

Unused credit facility	3 738	30 000
Available liquidity at the end of the period (31.12)	7 007	109 603

Operational review Pharma

Endpoints analysed at 26 and 52 weeks

HeROPA phase 2b clinical trial in mild-to-moderate psoriasis

Secondary endpoints at 52 weeks include:

Physical symptom assessments

Comparisons of Psoriasis Area and Severity Index (PASI) scores Body Surface Area (BSA) static Physician Global Assessment (sPGA) Scalp PGA (ScPGA)

Patient Reported Outcomes

SF-36 Dermatology Life Quality Index (DLQI)

Safety

Treatment-emergent Adverse Events (TEAEs) and Serious Adverse Events (SAEs)

	Primary Endpoint at week 26 PASI 50				Secondary Endpoints at week 52 Including Change in PASI
od A : RCT eek 0-26)			Period B: RCT (week 26-52)			Follow-up week 52-60)
2100 mg DDD oral iii b.d.			HRO350 2100 mg DDD per oral iii b.d.			No treatment
1050 mg DDD oral iii b.d.			HRO350 1050 mg DDD per oral iii b.d.			No treatment
Placebo oral iii b.d.			Placebo per oral iii b.d.			No treatment
5 6	1 12 13 14 15 16 17 18 19 20 21 22 26 27 28 29 30 32 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 58 59 60 8 7	9	11 10	12	13	14 15	16

Primary endpoint at 26 weeks has been read out:

The proportion of patients with ≥50% reduction in Psoriasis Area and Severity Index (PASI50) from Baseline to Week 26 Endpoint not met due to unexpectedly high placebo

Preparations for 12-month read-out of the HeROPA trial

Process for read-out and communication of results

February	March	April	May	June	Fall 2025
• Last Patient Last Visit • Monitoring Visits at sites to verify data	• 12-Month readout on efficacy endpoints Safety data •	• Database lock Analyses being • conducted on all endpoints	• Full dataset available (Clinical Study Report) Announce any • endpoint with relevant effects • Safety database ready EADV May 22-24th • (Prague)	• Prepare posters for scientific conferences on data from study	• Data presented at congresses EADV 17-21st September • (Paris)

Path forward after 12-month readout of the HeROPA trial

Data after 52 weeks of treatment will give further information about the risk-benefit profile of HRO350 and long-term treatment results versus placebo in a population with chronic and fluctuating disease

Evaluate a phase 3 program with different primary endpoint

Late onset: Primary endpoint at a later time than 26 weeks (e.g. 39 weeks)
PASI too difficult to measure in mild patients: Use a different primary endpoint
- as for apremilast in mild-to-moderate psoriasis in the US
Combination/cross-over treatments

Evaluate alternative development route

Develop HRO350 as a non-prescription drug
- Different regulatory routes in different geographies
- Further clinical testing may be required
- Safety data from HeROPA trial important

Secondary endpoint demonstrates efficacy

Long-term safety is established

Placebo still high - obscuring efficacy Long-term safety is established

Evaluate continuation of paediatric clinical program

Safety data from HeROPA trial important
Paediatric only

Specialized pro-resolving mediators (SPMs) are endogenous molecules that have been proven to stimulate resolution of inflammation

Most existing drugs are designed to reduce inflammation by inhibiting pro-

inflammatory cytokines

Immunoresolution seeks to correct lipid mediator and SPM imbalances to allow for self-limitation of inflammation

Push rather than pull: "push" the inflammation towards resolution rather than "pull" away downstream effects through inhibition of pro-inflammatory cytokines

Immunoresolution: a therapeutic frontier

HRO350 promotes SPM biosynthesis in immune cells and skin cells

Fullerton, J., Gilroy, D. Resolution of inflammation: a new therapeutic frontier. Nat Rev Drug Discov 15, 551–567 (2016). https://doi.org/10.1038/nrd.2016.39. Park J, Langmead CJ, Riddy DM. New Advances in Targeting the Resolution of Inflammation: Implications for Specialized Pro-Resolving Mediator GPCR Drug Discovery ACS Pharmacol. Transl. Sci. 2020, 3, 1, 88–106; . Serhan CN, Chiang N, Dalli J. The resolution code of acute inflammation: Novel pro-resolving lipid mediators in resolution. Seminars in Immunology. 2015 May;27(3):200-215. DOI: 10.1016/j.smim.2015.03.004. PMID: 25857211; PMCID: PMC4515371.. Ringheim-Bakka T, Mildenberger J, Dalli J, Saliani A, Petrucelli F, Busygina M, Mancinelli D, Gammelsæter R. Phospholipid Esters from Herring Roe promotes SPM biosynthesis in human monocyte-derived macrophages with implications for the treatment of psoriasis. Poster (37) at the 9th European Workshop on Lipid Mediators, June 26-28th, 2024. Mildenberger J, Solberg N, Østbye TK, Høst V, Petruccelli F, Gammelsæter R, Rønning SB, Pedersen ME. "Phospholipid Esters from Herring Roe promotes SPM biosynthesis in human monocyte-derived macrophages with implications for the treatment of psoriasis". Poster 3243 at the EADV congress, Amsterdam, September 25-28th, 2024.

Inflamed primary immune cells treated with HRO350 produced SPMs involved in resolution of inflammation and tissue regeneration in vitro

Phospholipid Esters from Herring Roe can have immunomodulatory antipsoriatic effects by affecting signaling on the IL-17/23 axis in immune cells and psoriatic skin cell models

Arctic Orphan (ABS302): Novel orphan designation drug candidate for brain development in extremely premature infants

~15 million premature births annually worldwide1

~5% are extremely premature (< 28 weeks)2

Extremely premature infants are bereaved three months of the normal in utero development time, do not have fully developed brains, and a high risk of disability and complications

Lipid drug candidate ABS302 is intended for the support for brain development and prevention of neurodevelopment complications in extremely premature infants

Arctic Bioscience awarded 2.3MNOK grant from Innovation Norway to support development of ABS302 for pre-clinical studies

Activities covered

Pharmaceutical development of a dual API
Pharmaceutical development of drug product ABS302
In-house capabilities for GLP manufacture
Manufacture of ABS302 for pre-clinical studies

PL: Omega-3 Phospholipids from Herring Roe. PK/PD: Pharmakinetics/Pharmacodynamics

References: 1) Tveit, K. S. et al. (2020). A Randomized, Double-blind, Placebo-controlled Clinical Study to Investigate the Efficacy of Herring Roe Oil for Treatment of Psoriasis. Acta Dermato-Venereologica. 2) Tveit, K. S. et al. (2021).Long Term Efficacy and Safety of Herring Roe Oil in the Treatment of Psoriasis, a 39-week Openlabel Extension Study. International Journal of Clinical and Experimental Medical Sciences. Vol 7, No. 1, pp. 13-20. 3) Petrovic A, Bueide I, Tveit KS, Hallaråker H, Bjørndal B, Holmes TD, Davies R, Brokstad KA, Bergum B, Appel S. Herring roe oil in treatment of psoriasis - influence on immune cells and cytokine network. Front Immunol. 2023 Sep 8;14:1128986. doi: 10.3389/fimmu.2023.1128986. PMID: 37744329; PMCID: PMC10515196. 4) Cook, C. M. et al. (2016).Bioavailability of long-chain omega-3 polyunsaturated fatty acids from phospholipid-rich herring roe oil in men and women with mildly elevated triacylglycerols. Prostaglandins Leukot. Essent. Fatty Acids, 111, 17–24. 5) Bjørndal, B. et al. (2014). Phospholipids from herring roe improve plasma lipids and glucose tolerance in healthy, young adults. Lipids Health Dis., 13. 6) Mildenberger J, Solberg N, Østbye TK, Høst V, Petruccelli F, Gammelsæter R, Rønning SB, Pedersen ME. "Phospholipid Esters from Herring Roe promotes SPM biosynthesis in human monocyte-derived macrophages with implications for the treatment of psoriasis". Poster 3243 at the EADV congress, Amsterdam, September 25-28th, 2024. 7) Ringheim-Bakka T, Mildenberger J, Dalli J, Saliani A, Petrucelli F, Busygina M, Mancinelli D, Gammelsæter R. Phospholipid Esters from Herring Roe promotes SPM biosynthesis in human monocyte-derived macrophages with implications for the treatment of psoriasis. Poster (37) at the 9th European Workshop on Lipid Mediators, June 26-28th, 2024. 8) Caputo MP, Radlowski EC, Lawson MA, Antonson AM, Watson JE, Matt SM, Leyshon BJ, Das A, Johnson RW. Herring roe oil supplementation alters microglial cell gene expression and reduces peripheral inflammation after immune activation in a neonatal piglet model. Brain Behav Immun. 2019 Oct;81:455-469. doi: 10.1016/j.bbi.2019.06.046. Epub 2019 Jul 2. PMID: 31271868; PMCID: PMC6754775.

Ongoing and planned studies

Business outlook

Outlook 2025

12 months readout expected end of Q1 2025 when all patients have completed 52 weeks of treatment

HeROPA 12 months readout

New funding in January 2025 estimated to bring the company into a positive cash flow position

Further development of HRO350, beyond phase IIb, will be funded separately through partnership or specific project funding

Liquidity situation strengthen

In 2025 the work to establish a JV operation will continue to further develop the Chinese and Southeast Asian market

Continue product innovations and further market introductions

Positive nutra growth potential

Continue to focus on operational and R&D improvements to strengthen innovation and product quality, reduce cost and increase profit margins

Operational improvement

Contact

CEO - Christer L. Valderhaug: [email protected]

CFO - Jone R. Slinning [email protected]

Medical Director - Runhild Gammelsæter: [email protected]