Medistim

Investor Presentation • Aug 23, 2022

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Medistim ASA Q2 and First Half 2022

August 23rd 2022

Kari E. Krogstad Thomas Jakobsen

PRESIDENT & CEO CFO

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 2021. 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

01 Highlights

Highlights 2 nd Quarter

	Q2 2022	Q o Q	Another all-time high for quarterly sales
Revenue	MNOK 117.5 (109.8)	+7.0 %	➢ th 6 quarter in a row above MNOK 100 in sales revenues
EBIT	MNOK 37.3 (42.7)	-12.5 %	o Vascular sales up 44.5 % in NOK, Cardiac sales up 12.4 % in NOK
Currency Number of units sold or outplaced:		+ 2.6 %	and EBIT in Q2 2021
Flow systems	38	+ 18.7 %
Imaging systems	26	- 3.7 %	➢ Currency neutral total growth was 4.4 % incl. PPP and 9.7 % excl. PPP
Flow probes	(ex USA) 1 658	- 15.3 %
Imaging probes	55	+ 57.1 %	• USA up 28.0 % (excl PPP grant) and Asia up 17.7 %
Procedures (USA)	23 592	+ 26.0 %	• Europe down 4.0 % and "Rest of the world" down 13.2 %

➢ 6 th quarter in a row above MNOK 100 in sales revenues

• o Imaging sales up 65.4 % in NOK, Flow sales at same level as last year
• o Vascular sales up 44.5 % in NOK, Cardiac sales up 12.4 % in NOK

➢ Moderate 7 % total revenue growth due to the extraordinary revenue in Q2 2021 of MNOK 5.3 from the COVID-related Paycheck Protection Program from the U.S. federal government ('the PPP grant'), boosting both revenue and EBIT in Q2 2021

• ➢ Currency neutral total growth was 4.4 % incl. PPP and 9.7 % excl. PPP
• o Currency neutral growth for own products was 13.4 % (excl. PPP grant):
  • USA up 28.0 % (excl PPP grant) and Asia up 17.7 %
  • Europe down 4.0 % and "Rest of the world" down 13.2 %
• o Third-party products down by 5.5 %

Second highest EBIT result ever, margin at 31.8 % (38.9 %)

A dividend of NOK 3.75 per share paid in May

Highlights 1 st Half

	H1 2022	H o H	Best first half ever for revenue
Revenue	MNOK 233.6 (212.4)	+10.0%
EBIT	MNOK 70.8 (71.7)	-1.4%	o Imaging sales up 50 %, Flow up 2.8 % in NOK
Currency		+2.7%
Number of	units sold or outplaced:		➢ Currency neutral total revenue growth was 7.3%
Flow systems	73	+7.3%
Imaging systems	51	+18.6%
Flow probes (ex USA)	3 502	-6.1%	• Asia down 10.9 %
Imaging probes	92	+39.4%	o Third-party products up 5.2 %
Procedures (USA)	44 512	+25.8%

• ➢ Sales revenue grows 12.8 % in NOK to MNOK 233.6 (MNOK 207.1) when excluding the PPP grant revenue of MNOK 5.3 in first half 2021
• o Imaging sales up 50 %, Flow up 2.8 % in NOK
• o Vascularsales up 42.2 %, Cardiac up 10.3 % in NOK
• ➢ 10.0 % total revenue growth (incl. the PPP grant in Q2 2021)
• ➢ Currency neutral total revenue growth was 7.3%
• o Currency neutral growth for own products was 11.2 % (excl. PPP grant)
  • USA up 29.4 %, Europe up 1.7%, RoW up 7.7 %
  • Asia down 10.9 %
• o Third-party products up 5.2 %

First half EBIT margin ends at 30.3 % (33.8 %)

A dividend of NOK 3.75 per share

02 Financial Statements

Profit and loss Q2 2022

Profit & loss	Q2 2022	Q2 2021
All numbers in NOK 1000
Sales revenue	117 495	104 476
Other revenue	-	5 292
Total revenue	117 495	109 768
Cost of goods sold	28 141	22 637
Salary and sosial expenses	28 241	25 208
Other operating expenses	17 973	13 611
Total operating expenses	74 356	61 456
Op. res. before depr. and write-offs (EBITDA)	43 139	48 312
EBITDA %	36,7 %	44,0 %
Depreciation	5 800	5 637
Operating result (EBIT)	37 339	42 675
EBIT %	31,8 %	38,9 %
Financial income	8 472	1 250
Financial expenses	5 077	1 103
Net finance	3 395	147
Pre tax profit	40 734	42 821
Tax	7 610	8 653
Result	33 124	34 168

Sales per Quarter (TNOK)

EBIT per Quarter (TNOK and %)

Profit and loss H1 2022

Profit & loss	YTD 2022	YTD 2021
All numbers in NOK 1000
Sales revenue	233 623	207 106
Other revenue	-	5 292
Total revenue	233 623	212 398
Cost of goods sold	51 823	45 438
Salary and sosial expenses	64 652	57 611
Other operating expenses	34 717	26 118
Total operating expenses	151 192	129 167
Op. res. before depr. and write-offs (EBITDA)	82 431	83 231
EBITDA %	35,3 %	39,2 %
Depreciation	11 672	11 491
Operating result (EBIT)	70 759	71 741
EBIT %	30,3 %	33,8 %
Financial income	9 637	3 251
Financial expenses	6 775	4 320
Net finance	2 862	(1 069)
Pre tax profit	73 621	70 672
Tax	16 773	14 682
Result	56 849	55 990

Sales per Quarter (TNOK)

EBIT per Quarter (TNOK and %)

Balance sheet – Assets

Cash position by end of the quarter was MNOK 104.0

Securing end-of-life components and keeping security stocks explain the high inventory level

A dividend of NOK 3.75 per share, total MNOK 68.4 was paid in May

Balance sheet	30.06.2022	31.12.2021
All numbers in NOK 1000
Assets
Intangible assets	35 146	33 410
Fixed assets	58 274	63 337
Total intangible and fixed assets	93 420	96 747
Inventory	104 492	97 413
Customers receivables	79 189	68 634
Other receivables	16 514	10 960
Cash	104 026	129 490
Total current assets	304 221	306 497
Total assets	397 641	403 244

Balance sheet	30.06.2022	31.12.2021
All numbers in NOK 1000
Share capital	4 585	4 585
Premium fund	44 172	44 172
Other equity	260 323	257 295
Total equity	309 080	306 052
Total long term debt	17 759	19 589
Total short term debt	70 803	77 603
Total equity and liability	397 641	403 244

Balance sheet – Equity and Liability

No interest-bearing debt

21.2 MNOK in obligations related to lease contracts where 13.5 MNOK is long term

Strong balance sheet with 77.7 % equity ratio

03 Business segments update

Imaging probes and systems in units

Unit sales of imaging systems sold as capital equipment continue to be strong, growing 28.6 % this quarter

Unit sales of imaging probes is growing 57.1 %

Imaging probes US imaging probes

Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22

-

10

20

30

40

50

60

Imaging systems in units (capital sales)

Flow probes and systems in units

Number of flow systems sold as capital equipment is up 37.9 % from Q2 last year.

It is Medistim's strategy to convert the market from Flow -only to Flow and -Imaging technology. MiraQ flow system is easy to upgrade to the combined solution

The total sale of systems (Flow and Flow -and -Imaging) sold as capital equipment shows an increase of 17 units or 34 %, securing future sales of consumable flow - and imaging probes

15.3 % decline in number of flow probes sold this quarter reflects normal variation in sales towards

Flow systems in units (capital sales)

Flow probes in units (excl USA)

Revenue performance by region

Mill NOK	Q2 22	Q2 21	Q / Q	H1 21	H1 21	H1 / H1	2021
Europe	47,5	50,4	-5,7 %	96,9	95,1	1,9 %	190,2
USA	50,5	41,4	22,1 %	99,7	76,5	30,3 %	154,1
Asia	15,9	13,8	15,0 %	29,0	33,2	-12,6 %	66,8
ROW (MEA, CAN, SA, AUS)	3,5	4,1	-14,7 %	8,0	7,6	5,3 %	16,1
Total	117,5	109,8	7,0 %	233,6	212,4	10,0 %	427,3

• In Europe, Q2 sales of own products decreased with 5.9 % in NOK and 4.0 % currency neutral. 3. party decreased with 5.5 %. For the first half sale of own products was at the same level as last year while currency neutral sales increased by 1.7 %. 3.party sales increased by 5.1 %.
• In the USA, currency neutral sales for the quarter increased with 28.0 % (excluding the PPP grant of MNOK 5.3 in Q2 2021). For the first half, currency neutral sales increase of 29.4 % (ex. PPP grant).
• In Asia, we see a strong quarter and recovery from the slow Q1, as an interim solution has been found while we await the regulatory approval in China for new components for the MiraQ.
• ROW continues to be a smaller sales territory for Medistim, with significant quarter to quarter variation.

Positive currency effects for H1 2022 vs H1 2021 was 5.7 MNOK.

Average actual exchange rate for USD 9.13 and EUR 9.98 versus last year USD 8.44 and EUR 10.18.

Revenue performance by product category

Mill NOK	Q2 22	Q2 21	Q / Q	H1 21	H1 20	H1 / H1	2021
Procedures (USA)	35,1	28,9	21,3 %	67,5	54,8	23,2 %	111,8
Flow probes	24,8	29,0	-14,5 %	52,0	55,2	-5,8 %	115,7
Flow systems (MiraQ)	12,3	8,4	46,0 %	23,8	21,5	10,5 %	51,0
Imaging systems (MiraQ)	23,0	14,8	55,7 %	43,8	30,3	44,5 %	57,9
Imaging probes	2,3	1,9	23,5 %	3,8	3,5	7,7 %	7,1
3rd party	19,1	20,2	-5,5 %	40,9	38,9	5,1 %	74,3
Other	0,9	6,5	-86,6 %	1,9	8,2	-77,0 %	9,5
Total revenues	117,5	109,8	7,0 %	233,6	212,4	10,0 %	427,3

• Procedure sale in the USA: Strong procedure sales both for the quarter and first half; the total number of procedures increased with 26.0 % and 25.8 %, respectively.

• Flow probes: In number of units, the there was a decline of 15.3 % for the quarter and 6.1 % for the first half. The decline for the quarter is related to normal variation in sales towards distributors, this quarter to Asia, that often purchases probes in large quantities depending on their inventory levels.
• Flow systems (capital): In number of units, a strong quarter with 37.8 % increase in units for the quarter. YTD number of units increases with 7.3 %. Increased sales in NOK is explained by higher level of sales through direct channels.
• Imaging systems (capital): 28.6 % increase in units for the quarter and 18.6 % for the first half. The higher sales in NOK is driven by strong sales through the direct US sales channel.
• 3 rd party products: After a strong Q1 we see a 5 % decline for the quarter, resulting in a 5 % increase for the first half year ¹⁸

Covid-19: From gradually decreasing impact to strong recovery towards normalcy

Not completely back to normal

• Lockdowns and restrictions in China
• New virus variants, new outbreaks
• Still some hospital access restrictions
• Elective surgeries may still be postponed

Global supply chains and economy

• In general, both the continued Covid situation and the ongoing Russian-Ukrainian war create increased uncertainty in global supply chains and the world economy at large
• Medistim is actively monitoring and managing the situation, particularly regarding sourcing and stocking up of components

04 Implementing the strategy

Medistim growth strategy

• 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
• → Early adopter & KOL support
• → REQUEST study
• → Ease conversion from flow to imaging with MiraQ
• 1. Achieve routine use of both Flow and Imaging by fighting ignorance, indifference and ease-of-use objections through
• → Clinical marketing, guidelines and educational programs
• → Product innovation for ease of use
• → Increased sales force capacity
• 1. Offer an entry-level solution to reach emerging, price-sensitive, high-growth markets
• 1. Build and strengthen position in vascular surgery
• → Dedicated system (MiraQ Vascular) & probes
• → Build position with societies and KOLs
• 1. Expand our direct market coverage

GEOGRAPHIES

APPLICATION AREAS

Developing the US market

Performance US sales

• Currency neutral sales revenue grows by 28.0 % in Q2 and 29.4 % first half
• Total number of procedures was up 26.0% in Q2 and 25.8% in first half
• o Flow procedures up 20.6% Q1 and 21.4% first half
• o Imaging procedures up 55.6% Q1 and 48.6% first half

Strong capital systems sales

• o 13 units this Q2 vs 8 last year
• o 27 units this first half vs 17 last year

Keep winning new customers

• o 6 this Q2 vs 12 last year
• o 19 this first half vs 24 last year

Number of procedures per year

Number of procedures per quarter

20 largest shareholders per 19th August

Date: 19/08/2022
Name: MEDISTIM ASA
ISIN: NO0010159684
Number of investors: 1029
Number of shares: 18337336

Rank	Holding	Stake %	Name	Citizenship	Type of account
1	1 862 500	10.15687	AETERNUM CAPITAL AS	Norway	Ordinary
2	1 285 000	7.00756	FLØTEMARKEN AS	Norway	Ordinary
3	1 200 000	6.54403	VERDIPAPIRFOND ODIN NORDEN	Norway	Ordinary
4	1 196 862	6.52691	State Street Bank and Trust Comp	United States	Nominee
5	970 000	5.28975	FOLLUM INVEST AS	Norway	Ordinary
6	950 133	5.18141	State Street Bank and Trust Comp	United States	Nominee
7	915 482	4.99245	Skandinaviska Enskilda Banken AB	Sweden	Nominee
8	667 953	3.64258	State Street Bank and Trust Comp	United States	Nominee
9	600 000	3.27201	ODIN Small Cap	Sweden	Ordinary
10	502 828	2.74210	Skandinaviska Enskilda Banken AB	Denmark	Nominee
11	414 011	2.25775	Skandinaviska Enskilda Banken AB	Sweden	Nominee
12	398 004	2.17046	SKANDINAVISKA ENSKILDA BANKEN AB	Luxembourg	Nominee
13	396 445	2.16196	The Northern Trust Comp, London Br	United States	Nominee
14	391 892	2.13713	State Street Bank and Trust Comp	United States	Nominee
15	379 936	2.07193	BUANES	Norway	Ordinary
16	312 162	1.70233	RBC Investor services bank S.A.	Luxembourg	Nominee
17	270 000	1.47241	The Bank of New York Mellon SA/NV	Denmark	Nominee
18	260 087	1.41835	BNP Paribas Securities Services	Luxembourg	Nominee
19	246 845	1.34613	BNP Paribas Securities Services	Italy	Nominee
20	238 314	1.29961	Skandinaviska Enskilda Banken AB	Sweden	Nominee