Medistim

Investor Presentation • Apr 25, 2019

Medistim ASA First quarter 2019

Kari E. Krogstad, President and CEO Thomas Jakobsen, CFO April 25th, 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 first quarter
• 1. Financial statements
• 1. Business segments update
• 1. Implementing the strategy

1. Highlights 1st quarter

21.2 %

Highlights 1st quarter 2019 • Sales for the first quarter 2019 ended with a 19.7 % growth over Q1 2018, a strong follow-up after the all time high quarter for Q4 2018 o Currency neutral sales of own products up 20.0 % o 3rd party products flat o Growth for the quarter was driven by high performance in the USA with a currency neutral growth of 37.3 % • EBIT up MNOK 6.4 to MNOK 19.4, a 46.8 % increase • The general meeting decided a dividend of NOK 2.25 per share Revenue MNOK 88.7 (74.1) EBIT MNOK 19.4 (13.6) Currency No of capital units sold: Flow systems 23 Imaging systems 24 Flow probes 1 648 Imaging probes 29 19.7% 46.8 % 4.6 % 71.4 % 6.1 % 180 % Q1 2019 Q o Q -8.0 %

Procedures (USA) 15 245

2. Financial statements

Profit and loss Q1 2019

Profit & loss	Q1 2019	Q1 2018
All numbers in NOK 1000
Sales	88 736	74 133
Cost of goods sold	20 694	18 255
Salary and sosial expenses	31 028	26 784
Other operating expenses	12 636	12 519
Total operating expenses	64 358	57 558
Op. res. Before depr. and write-offs (EBITDA)	24 378	16 576
EBITDA %	27,5 %	22,4 %
Depreciation	4 434	2 988
Operating result (EBIT)	19 944	13 588
EBIT %	22,5 %	18,3 %
Financial income	229	1 387
Financial expenses	10	2 665
Net finance	218	(1 279)
Pre tax profit	20 162	12 309
Tax	4 191	2 865
Result	15 971	9 444

Sales per Quarter (TNOK)

EBIT per Quarter (TNOK)

8

Balance sheet - Assets

Balance sheet	31.03.2019	31.12.2018
All numbers in NOK 1000
Assets
Intangible assets	41 822	41 944
Fixed assets	44 598	37 198
Total intangible and fixed assets	86 420	79 142
Inventory	61 602	63 843
Customers receivables	72 226	70 807
Other receivables	11 356	8 309
Cash	54 351	47 490
Total current assets	199 535	190 449
Total assets	285 955	269 591

• Working capital continues to be high, related to increased customers receivables related to strong sales
• The General Assembly decided a dividend of NOK 2,25 per share

Balance sheet - Equity and liability

Balance sheet	31.03.2019	31.12.2018
All numbers in NOK 1000
Share capital	4 585	4 585
Premium fund	44 172	44 172
Other equity	174 801	157 955
Total equity	223 558	206 712
Total long term debt	8 230	7 500
Total short term debt	54 167	55 380
Total equity and liability	285 955	269 592

• 10.5 MNOK in interest bearing debt
• Strong balance sheet with 78.2 % equity ratio
• IFRS 16 increases assets and debt in the balance sheet with 6.3 MNOK

10
25.04.2019	Medistim ASA Q1 2019

3. Business segments update

Flow probes and systems in units

• 500 1 000 1 500 2 000 2 500 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19

• 6.1% increase in flow probe sales quarter over quarter driven by continued strong sale of the combined flow-andimaging system

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

• Stable sales of flow-only systems

Imaging probes and systems in units

Imaging systems in units (VeriQC & MiraQ capital sales)

• 71.4 % increase in sales of imaging systems
• Continues to drive increased sale of reusable flow probes ('consumables')

Imaging probes in units (incl USA)

• 180 % increase of imaging probes
• Strong sales after the record quarter in Q4-18

Q1 revenue performance by region

Mill NOK	Q1 '19	Q1 '18	Q / Q	2018
Europe	38,4	40,2	-4,6 %	154,8
USA	34,6	23,0	50,4 %	113,1
Asia & Jp	7,0	8,5	-17,7 %	38,7
ROW (MEA, CAN, SA, AUS)	8,8	2,4	261,4 %	19,3
Total	88,7	74,1	19,7 %	325,9

• In Europe, sales decreased with 4.6 % in Q1. Sale of own products decreased with 9.1 % while 3. party was at the same level as last year. The decrease of own products was due to normal quarterly variation.
• In the USA, sales in NOK increased with 50.4 %, and currency neutral sales was up 37.3 %.
• Both Asia/Japan and ROW are so far smaller sales territories with significant quarter to quarter variation. Q1 2019 was a very strong quarter for Middle-East and Australia.

Positive currency effects for Q1 2019 vs Q1 2018 was 3.4 MNOK .

Average actual exchange rate for USD 8.58 and EUR 9.74 versus last year USD 7.83 and EUR 9.63.

Q1 revenue performance by product

Mill NOK	Q1 '19	Q4 '18	Q/Q	2018
Procedures (USA)	26,3	19,6	34,3 %	89,5
Flow probes	21,9	20,5	7,1 %	85,7
Flow systems (VeriQ & MiraQ)	7,2	6,7	7,8 %	32,5
Imaging systems (VeriQ C & MiraQ)	12,3	7,3	68,6 %	39,9
Imaging probes	1,3	0,6	124,5 %	4,3
3rd party	18,8	18,7	0,5 %	71,1
Other	0,9	0,8	15,7 %	2,9
Total revenues	88,7	74,1	19,7 %	325,9

• Procedure sale in the USA: The total number of procedures increased with 21.2 % in Q1. The variation in NOK compared to volume growth is due to mix of procedures coming from probe sales vs card sales, as well as currency.
• Flow probes: 6.1 % increase in units corresponds well with 7.1 % increase in NOK. Little currency impact in Q1 2019.
• Flow systems: 8.0 % decrease in units and 7.8 % increase in NOK for the quarter. The increase is related to higher level of sales through the direct sales channel.
• Imaging systems and probes: Imaging systems increase with 71.4 % in units and 68.6 % in NOK. Imaging probe revenue increases 180 % in units and 124 % in NOK. More sales through distributors creates less revenue.
• 3rd party products: At same level as last year.

4. Implementing the strategy

17

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

Number of procedures per year

• Revenues up 37.3 % in USD

RESULTS Q1 2019

• o Revenues up 50.4 % in NOK, to MNOK 34.6, due to favorable currency
• Total number of procedures up by 21.2 %
  • o 15.9 % growth in flow procedures
  • o 57.6 % growth in imaging procedures
• Continued growth in new customers
  • o 6 completely new accounts in Q1

Outlook

Accelerated growth in the CABG segment:

o Leverage the REQUEST study results

Accelerated growth in the Vascular segment:

o Mobilization of sales network

Adding value to the customer experience

o Product and technology development for improved guidance and ease of use

20

20 largest shareholders

Number of shares	Shares in %	Shareholder
4 003 500	21,83	INTERTRADE SHIPPING AS
1 862 500	10,16	SALVESEN & THAMS INVEST AS
1 100 246	6,00	SWEDBANK ROBUR SMABOLAGSFOND
1 000 000	5,45	FOLLUM CAPITAL AS
882 111	4,81	State Street Bank and Trust Comp
867 193	4,73	Skandinaviska Enskilda Banken AB
832 843	4,54	Skandinaviska Enskilda Banken S.A.
657 828	3,59	Skandinaviska Enskilda Banken AB
494 936	2,70	BUANES
420 656	2,29	HSBC TTEE MARLB EUROPEAN TRUST
400 000	2,18	HOLBERG NORGE
307 272	1,68	BNP Paribas Securities Services
270 359	1,47	GRANDEUR PEAK INTERNATIONAL OPPORT
257 185	1,40	Danske Bank A/S
250 000	1,36	Danske Invest Norge Vekst
238 310	1,30	Danske Bank A/S
233 425	1,27	RBC INVESTOR SERVICES BANK S.A.
230 591	1,26	Nordnet Bank AB
200 000	1,09	SWEDBANK ROBUR MEDICA
200 000	1,09	Bank Julius Bär & Co. AG