Navamedic — Earnings Release 2015

Feb 18, 2016

4th Quarter and Full Year 2015 Results

Navamedic ASA - 18 February 2016

Highlights - Q4 and full year 2015

• Highest quarterly sales to date for Navamedic
• Revenues of NOK 65,4m in Q4 (+5,5%)
• Total annual revenues of NOK 248,3m in 2015 (+11%)
• EBITDA adjusted for Observe Medical, transaction and restructuring costs in line with Q4 last year
• Market introduction of Sippi moving forward
• Distribution secured and available for clinic testing in nine European markets
• Aspen cooperation for Nordic markets reinforced

Navamedic group profit and loss statement

NOK million	Q4 2015	Q4 2014	2015	2014
Income	65.4	61.9	248.3	223.1
Gross profit	15.5	14.8	60.9	54.3
Gross margin	23.7%	23.9%	24.5%	24.3%
Operating costs	15.6	9.6	52.1	38.5
EBITDA	-0.1	5.3	8.8	15.7
EBITDA margin	-0.2%	8.5%	3.6%	7.0%
EBIT	-4.8	2.6	-3.8	6.0
EBT	-10.6	-1.8	-10.3	-0.1
Net result	-10.9	-2.2	-10.9	-0.7

• Strong sales revenue growth in Q4 driven by good development in medical nutrition, urology and Womens Health
• Gross margin on similar level as previous year
• Operating costs increase attributable to Medtech business area acquisition and operational costs, restructuring costs and increased commercial resources
• Navamedic group EBITDA-margin NOK -0,1m in Q4 and NOK 8,8 million full yaer
• Net profit NOK -10,9 million
• Includes NOK 9,7 million in transaction costs, operating expenses, depreciation and interest related to OM acquisition

Pharma and Healthcare financials

NOK million	Q4 2015	Q4 2014	2015	2014
Income	65.4	61.9	248.2	223.1
Gross profit	15.5	14.8	60.9	54.3
Gross margin	23.7%	23.9%	24.5%	24.3%
EBITDA	2.6	5.3	15.1	15.7
EBITDA margin	4.0%	8.6%	6.1%	7.0%

All corporate costs are carried by the Pharma and Healthcare business

• Sales growth +5,5% in quarter and 11% YTD
• Gross margin maintained around 24%
• Operating expenses growth due to restructuring charges in Q4 and added commercial resources in 2015
• Full year EBITDA adjusted for restructuring charges is up NOK 1,2 million compared to 2014

Medtech financials

NOK mill	Q4 2015	2015 (pro forma)
Income	0.0	0.1
Gross profit	0.0	0.0
Gross margin	-	-
Operating costs	-2.0	-3.2
EBITDA ex transaction costs	-2.0	-3.1
Transaction costs, Observe Medical acquisition	-0.7	-3.2
EBITDA	-2.7	-6.3

• Sippi in early launch phase
• Sales, as expected, minor given short time on the market
• Acquisition related transaction costs of NOK 0,7 million in Q4 (NOK 3,2 million full year)
• Operating expenses in Medtech Business Area NOK 3,2 million since Aug 4, 2015

Group balance sheet

NOK million	31 Dec 2015	30 Sep 2015	31 Dec 2014
Fixed assets	160.3	155.7	102.8
Current assets	115.4	137.3	123.6
- of which is cash	12.3	10.9	6.2
Equity	118.2	131.1	106.7
Long term debt	60.7	48.7	22.2
Short term debt	96.9	113.2	97.5
Total balance	275.7	293.0	226.4
Equity ratio (%)	42.9%	44.7%	47.1%

• Changes in fixed assets, equity and long term debt reflect OM acquisition
• Inventories reduced via Benelux discontinuation affecting current assets

Full year cash flow statement

• Strengthened operational cash flow on full year basis driven by lower inventory
• Observe Medical aquisition affecting Net cash from investments
• Cash at year end strengthened compared to previous year
• Company funded to handle regular operations and international launch of Sippi®

Navamedic

"Supporting healthcare with excellent products"

A growth oriented, risk balanced Partnership Brands and Medtech company

Partnership Brands Medtech

• Distribution of pharma, medical device and medical nutrition brands to Healthcare Professionals, hospitals and pharmacies
• Main focus on Nordic markets
• Well established market position and track record
• Partnership business providing cash flow and margins

• Targeting continued Nordic sales growth and margin improvements

• Acquired Observe Medical in Q3 2015

• Groundbreaking new digital urine measurement system, potential game changer - Sippi®
• New and proprietary technology
• Adressing a global market need
• Product under introduction in nine European markets

Pharma and Healthcare Business Area Strongest sales performance in single quarter

• Pharma and Healthcare business posted 5,5% sales growth compared to Q4 2014
• Sales of NOK 65.4 million is highest quarterly figure to date
• Gross margins maintained vs previous year
• Reduced EBITDA in Q4 2015 due to one-off restructuring costs
• Navamedic to discontinue Aspen Benelux portfolio from January 2016
• Nordic sales revenues accounting for 78% in the fourth quarter

9

Pharma and Healthcare Business Area

• Highest full year sales revenues in single year NOK 248,3 million
• Full year EBITDA excluding Q4 restructuring costs NOK 16,9 million (6,8% margin)
• Continued focus on products with higher gross margin
• Expanded agreement with Aspen for the Nordic markets signed for 2016
• Sourcing base further expanded in fourth quarter with both established brands and new launches

Eltroxin Imuran Lanoxin Zyloric

MaterniT Genome ® MaterniT21 Plus ® VisibiliT®

Sippi® market introduction moving forward

• Additional markets initiated in Q4
• Sippi now in test use at approximately 40 hospitals in nine markets
• Norway, Sweden, Denmark, Finland, Germany, Netherlands, Belgium, Austria and Switzerland
• Strong market interest and positive user feedback
• Low sales in 2015 according to expectations
• Introduction in additional markets planned
• Sippi expected to generate revenues during 2016

Sippi® Wireless connectivity to be introduced during 2016

• Sippi Bluetooth wireless communication capabilities successfully developed and tested during Q4
• Collaborating with GE Healthcare on the first software connection enabling Sippi to upload data directly into the hospital's Patient Data Management System (PDMS)
• Sippi with Bluetooth connectivity feature to enter production during Q3 2016
• Compatibility with other major PDMS suppliers in planning – focus on major markets

Sippi® The first available solution for fully digitalized fluid balance measurement

Navamedic outlook

• Medtech business expected to generate revenue in 2016
• Seeking partners for additional European markets
• Sippi® wireless communication scheduled for introduction during the year
• Targeting positive cash flow for Sippi during 2017
• Healthcare and Pharma business forecasting continued growth in the Nordics
• New products in the Nordics compensating parts of Benelux discontinuation
• Continued emphasis on gross margin and EBITDA improvements
• Company funded to handle regular operations and international launch of Sippi®
• Evaluating product or company collaboration opportunities with strategic fit within Navamedics financial capabilities

Welcome back

1 st Quarter 2016 Presentation

May 11, 2016