Medistim

Quarterly Report • Oct 28, 2022

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Medistim ASA Q3 2022

October 28th 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 3 rd Quarter

	Q3 2022	Q o Q		Another strong quarter from Medistim
Revenue MNOK 116.5 (102.1) EBIT MNOK 34.0 (25.1)		+14.0 % +35.6 %		Established quarterly sales above MNOK 100 in sales revenues Imaging sales up 44.1 % in NOK, Flow sales up 6.8 %
Currency		+ 3.5 %	o	Asia up 32.0 % and "Rest of the world" up 27.3 %
Number of	units sold or leased:		o	Europe at same level as last year
Flow systems	37	+ 23.3 %	o	Currency neutral growth for own products was 14.7 %
Imaging systems Flow probes Imaging probes	24 (ex USA) 2 014 41	+ 33.3 % + 0.9 % + 7.9 %	o o	Currency neutral total growth was 10.5 % Third-party products down by 10.0 %
Procedures (USA) 22 234		+ 18.1 %

➢ Established quarterly sales above MNOK 100 in sales revenues

• o Imaging sales up 44.1 % in NOK, Flow sales up 6.8 %
• o Vascular sales up 26.7 % in NOK, Cardiac sales up 17.2 % in NOK

➢ Sales growth is driven by USA with a currency neutral sales increase of 18.7 %

• o Asia up 32.0 % and "Rest of the world" up 27.3 %
• o Europe at same level as last year
• o Currency neutral growth for own products was 14.7 %
• o Currency neutral total growth was 10.5 %
• o Third-party products down by 10.0 %

EBIT margin at 29.2 % (24.6 %)

New Guidelines from the European Society of Vascular Surgery (ESVS) recommending intraoperative ultrasound after Carotid Endarterectomy (CEA)

Highlights YTD September

YTD 2022		Y o Y	Best YTD September ever for revenue
Revenue MNOK 350.1 (314.5)		+ 11.3 %	➢ Sales revenue grows 13.2 % in NOK to MNOK 350.1 (MNOK 309.2) when excluding the PPP grant revenue of MNOK 5.3 from 2021
EBIT	MNOK 104.8 (96.8)	+ 8.2 %	o Imaging sales up 47.9 %, Flow up 3.9 % in NOK
			o Vascularsales up 36.0 %, Cardiac up 12.6 % in NOK
Currency		+ 3.4 %
			➢ Currency neutral total revenue growth was 9.8% (excl. PPP grant)
			o Currency neutral growth for own products was 11.8 %
Number of	units sold or leased:		▪ USA up 24.1 %, Europe up 1.0 %, Asia up 1.4 %, RoW up 15.3 %
Flow systems	113	+ 8.6 %
Imaging systems	75	+ 10.3 %%	o Third-party products at same level as last year
Flow probes	(ex USA) 5 516	- 3.7 %
Imaging probes	133	+ 27.9 %
Procedures (USA)	66 746	+ 23.1 %	Best YTD September ever for operating result (EBIT),

• ➢ Sales revenue grows 13.2 % in NOK to MNOK 350.1 (MNOK 309.2) when excluding the PPP grant revenue of MNOK 5.3 from 2021
• o Imaging sales up 47.9 %, Flow up 3.9 % in NOK
• o Vascularsales up 36.0 %, Cardiac up 12.6 % in NOK
• ➢ Currency neutral total revenue growth was 9.8% (excl. PPP grant)
• o Currency neutral growth for own products was 11.8 %
  • USA up 24.1 %, Europe up 1.0 %, Asia up 1.4 %, RoW up 15.3 %
• o Third-party products at same level as last year

with margin at 29.9 % (30.8 %)

02 Financial Statements

Profit and loss Q3 2022

Profit & loss	Q3 2022	Q3 2021
All numbers in NOK 1000
Sales revenue	116 490	102 138
Other revenue	-	-
Total revenue	116 490	102 138
Cost of goods sold	21 892	23 793
Salary and sosial expenses	38 927	35 478
Other operating expenses	15 973	11 882
Total operating expenses	76 792	71 152
EBITDA	39 699	30 986
EBITDA%	34,1 %	30,3 %
Depreciation	5 681	5 909
Operating result (EBIT)	34 017	25 077
EBIT %	29,2 %	24,6 %
Financial income	4 858	3 258
Financial expenses	8 355	4 351
Net finance	-3 497	-1 093
Pre tax profit	30 520	23 984
Tax	5 873	5 186
Result	24 647	18 798

Sales per Quarter (TNOK)

Profit and loss YTD September 2022

Profit & loss	YTD Sept 22	YTD Sept 21
All numbers in NOK 1000
Sales revenue	350 114	309 244
Other revenue	-	5 292
Total revenue	350 114	314 536
Cost of goods sold	73 714	69 231
Salary and sosial expenses	103 579	93 089
Other operating expenses	50 690	38 000
Total operating expenses	227 984	200 319
EBITDA	122 130	114 217
EBITDA%	34,9 %	36,3 %
Depreciation	17 353	17 400
Operating result (EBIT)	104 777	96 817
EBIT %	29,9 %	30,8 %
Financial income	14 495	6 509
Financial expenses	15 131	8 670
Net finance	-635	(2 161)
Pre tax profit	104 141	94 656
Tax	22 646	19 869
Result	81 496	74 788

Sales per Quarter (TNOK)

Balance sheet – Assets

Cash position by end of the quarter was MNOK 124.6

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

Increased customers receivables due to strong sales by the end of the quarter

Balance sheet	30.09.2022	31.12.2021
All numbers in NOK 1000
Assets
Intangible assets	36 381	33 410
Fixed assets	59 941	63 337
Total intangible and fixed assets	96 322	96 747
Inventory	103 309	97 413
Customers receivables	93 411	68 634
Other receivables	14 829	10 960
Cash	124 557	129 490
Total current assets	336 107	306 497
Total assets	432 429	403 244

Balance sheet	30.09.2022	31.12.2021
All numbers in NOK 1000
Share capital	4 585	4 585
Premium fund	44 172	44 172
Other equity	296 932	257 295
Total equity	345 689	306 052
Total long term debt	17 248	19 589
Total short term debt	69 491	77 603
Total equity and liability	432 429	403 244

Balance sheet – Equity and Liability

No interest-bearing debt

18.8 MNOK in obligations related to lease contracts where 11.7 MNOK is long term

Strong balance sheet with 79.9 % 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 29.4 % this quarter

Unit sales of imaging probes is growing 7.9 %

Imaging probes US imaging probes

Imaging probes in units (capital sales)

Imaging systems in units (capital sales)

Flow probes and systems in units

Number of flow systems sold as capital equipment is up 23.3 % from Q3 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 12 units or 25.5 %, securing future sales of consumable flow - and imaging probes

Flat development in number of flow probes sold this quarter and down 3.7 % YTD. High probe sales in 2021

Flow systems in units (capital sales)

Flow probes in units (excl USA)

Revenue performance by region

Mill NOK	Q3 22	Q3 21	Q / Q	YTD 22	YTD 21	YTD / YTD	2021
Europe	43,3	45,8	-5,5 %	140,2	140,8	-0,5 %	190,2
USA	50,4	38,5	30,8 %	150,1	115,0	30,5 %	154,1
Asia	17,1	13,2	29,2 %	46,1	46,5	-0,8 %	66,8
ROW (MEA, CAN, SA, AUS)	5,7	4,6	24,6 %	13,7	12,2	12,8 %	16,1
Total	116,5	102,1	14,1 %	350,1	314,5	11,3 %	427,3

• In Europe, Q3 sales of own products decreased with 2.8 % in NOK and currency neutral sales was at the same level as last year. 3. party decreased with 10.0 %. Year to date sale of own products was at the same level as last year while currency neutral sales increased by 1.0 %. 3.party sales ended at the same level as last year. The main reason for low growth of own products is less sales to Russia.

• In the USA, currency neutral sales for the quarter increased with 18.7 %. Year to date, currency neutral sales increase with 24.1 % (ex. PPP grant).
• In Asia, we continue to see recovery from the slow Q1, as an interim solution has been found while we await the regulatory approval in China for the upgraded version of MiraQ.
• ROW is a smaller sales territory for Medistim, with significant quarter to quarter variation.

Positive currency effects for YTD 2022 vs YTD 2021 was 10.7 MNOK.

Average actual exchange rate for USD 9.42 and EUR 10.01 versus last year USD 8.55 and EUR 10.23.

Revenue performance by product category

Mill NOK	Q3 22	Q3 21	Q / Q	YTD 22	YTD 21	YTD / YTD	2021
Procedures (USA)	34,4	28,4	21,3 %	101,9	83,2	22,6 %	111,8
Flow probes	29,1	30,2	-3,5 %	81,1	85,4	-5,0 %	115,7
Flow systems (MiraQ)	12,8	12,0	7,4 %	36,6	33,5	9,4 %	51,0
Imaging systems (MiraQ)	22,3	12,5	77,6 %	66,1	42,8	54,4 %	57,9
Imaging probes	2,3	1,6	46,6 %	6,1	5,1	19,7 %	7,1
3rd party	15,3	17,0	-10,0 %	56,2	55,9	0,5 %	74,3
Other	0,2	0,5	-64,5 %	2,1	8,7	-76,4 %	9,5
Total revenues	116,5	102,1	14,0 %	350,1	314,5	11,3 %	427,3

• Procedure sale in the USA: Strong procedure sales both for the quarter and first half; the total number of procedures increased with 18.1 % and 23.1 %, respectively.

• Flow probes: In number of units same as for last year for the quarter and 3.6 % decline year to date. Sale of probes in 2021 is a strong comparable due to the increased activity level in the operating room after the slow-down during COVID in 2020.
• Flow systems (capital): In number of units, a strong quarter with 23.3 % growth and up 8.7 % YTD. The lower growth in NOK is due to the higher level of sales going through the distributor sales channel.
• Imaging systems (capital): 29.4 % increase in units for the quarter and 21.7 % year to date. The higher growth in NOK is driven by strong sales through the direct US sales channel and positive currency.
• 3 rd party products: A weak Q3 with a 10 % decline in sales, resulting in a flat development year to date.

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 as winter approaches
• 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 18.7 % in Q3 and 24.1 % YTD
• Total number of procedures was up 18.1 % in Q3 and 23.1 % YTD
• o Flow procedures up 18.2 % Q3 and 20.3 % YTD
• o Imaging procedures up 17.8 % Q3 and 36.3 % YTD

Strong capital systems sales

• o 13 units this Q3 vs 10 last year
• o 40 units year to date vs 27 last year

Keep winning new customers

• o 8 this Q3 vs 9 last year
• o 27 year to date vs 33 last year

Number of procedures per year

Number of procedures per quarter

Medistim growth strategy

Emerging high-growth economies (e.g. BRIC)	3
Developing Medistim markets (e.g. USA, UK, France)	2
Strong Medistim markets (e.g. Jp, Nordic, Germany) >50% CABG share	1	4
	CABG surgery (2 BNOK)	Vascular surgery (>1.5 BNOK)	Other open heartsurgery (1BNOK)

GEOGRAPHIES

APPLICATION AREAS

• 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

Build and strengthen postition in vascular surgery

ESVS guidelines recommend intraoperative ultrasound after CEA

The new Clinical Practice Guideline was presented at the European Society of Vascular Surgery (ESVS) in September 2022

It added a recommendation for the use of intra-operative completion control, with ultrasound imaging, angiography or angioscopy, to reduce risk of peri-operative stroke for patients undergoing carotid endarterectomy (CEA).

• The recommendation is based on a meta-analysis done by Knappich et al. 2021, that shows that both ultrasound imaging and angiography are associated with a reduced risk of death and stroke after CEA

In the CIDAC study, benefits of using ultrasound imaging compared to the current gold standard angiography were documented:

• More defects were detected with ultrasound
• Higher reproducibility (interrater reliability) with ultrasound
• In addition, ultrasound is safer for the patient with no use of x-rays and contrast agents
• Ultrasound is more cost efficient
• ➢ In Q3, vascular sales revenues are MNOK 18.9, growing at 26.7 %
• 26 ➢ YTD September, vascular sales is MNOK 50.7, growing at 36 %, representing 17.5 % of Medistim sales of own products

20 largest shareholders per 26th October

Rank	Name	Number of shares	Shares in %	Country
1	Aeternum Capital AS	1 862 500	10,2 %	Norge
2	ODIN Fonder	1 800 000	9,8 %	Norge
3	SEB Fonder	1 750 621	9,5 %	Sverige
4	Øyvin A. Brøymer with companies	1 285 000	7,0 %	Norge
5	Swedbank Robur Fonder	1 191 000	6,5 %	Sverige
6	Berenberg Funds	1 059 845	5,8 %	Tyskland
7	Follum Invest AS	970 000	5,3 %	Norge
8	Danske Invest	922 368	5,0 %	Danmark
9	Invesco	859 892	4,7 %	USA
10	Fidelity Investments (FMR)	573 889	3,1 %	USA
11	SEBinvest	505 967	2,8 %	Danmark
12	Asbjørn John Buanes	381 876	2,1 %	Norge
13	Montanaro	314 500	1,7 %	Storbritannien
14	DNCA Finance S.A	260 303	1,4 %	Frankrike
15	TIN Fonder	238 314	1,3 %	Sverige
16	Humle Fonder	235 234	1,3 %	Sverige
17	Holberg Fonder	217 338	1,2 %	Norge
18	La Financière de l'Echiquier	181 347	1,0 %	Frankrike
19	Aktia Asset Management	180 337	1,0 %	Finland