Navamedic

Investor Presentation • Oct 31, 2024

Highlights and key figures 31 October 2024

Kathrine Gamborg Andreassen, CEO Lars Hjarrand, CFO

Q3 and YTD 2024

Our edge explained

A reliable supplier of high-quality pharma products, within Prescription drugs (RX), Consumer Health, and

Hospital products including Medical nutrition

Presence and sales across the Nordics

With a product portfolio approved and ready for wider distribution across Europe

Strong local insight and understanding of patients' needs

Strong local competence (~40 employees) in regulatory, reimbursement, marketing and sales

Understanding patients, their situation and challenges, increasing customer loyalty through guidance and inspiration

Ambitious growth strategy

High-potential pipeline and M&A capabilities Maximising product potential throughout the value chain, focusing on economies of scale, sales excellence and regulatory expertise

Business remains strong in a quarter impacted by cyclical nature of the business

Double-digit growth in Consumer Health and Hospital

Nordic tender win in quarter

	REVENUE	GROSS MARGIN	Adjusted EBITDA
Q3	123.1 MNOK	37.1%	8.6 MNOK
2024	-12.7% YoY	37.6% in Q3 23	17.4 MNOK in Q3 23
YTD	400.2 MNOK1	41.1%	49.8 1 MNOK
2024	+3.5% YoY	39.7% YTD 23	43.6 MNOK YTD 23

Eroxon – named launch of the year in Boots (NO)

Key financial indicators | Third quarter and nine first months of 2024

1 YTD 2024 includes milestone revenues of 22.7 MNOK from Orion Corporation in Q2

Revenue growth and EBITDA fluctuations from quarter to quarter mainly due to seasonality and stock buildup/down effects

Revenue rolling 12 months Adjusted EBITDA rolling 12 months 1 Milestone revenues of 22.7 MNOK from Orion Corporation is included in Q2 2024

The longer perspective

High-quality portfolio with several hero products

Prescription Drugs (RX) Sold through pharmacies

Consumer Health Sold through pharmacies

Hospital Antibiotics and Medical nutrition*

*IEM Products for treatment of Inborn Errors of Metabolism (IEM), a lifelong, genetic disorder where the body cannot properly turn food into energy. Non-recurring milestone fee payment 22.7 MNOK in Q2 2024 not included in revenues 5

Fluctuations in tenders compared to last year

Prescription Drugs (RX)

MYSIMBA® WHOLESALER VOLUME

Iqvia data; Norway, Sweden, Finland Sales to retailers, rolling 12 months

6

Strategy for growth

• Focusing on individual reimbursement in NO/FI and the unique positioning for Mysimba® in a growing market
• Commercialization and out-licensing activities for Flexilev (MyFID® and OraFID®)

Q3 highlights

Mysimba® showing positive trend

Imdur® lower in Q3 due to fluctuations between quarters and increased competition

Strong quarter for Forlax®, which delivered doubledigit growth YoY

Working towards commercialization of Flexilev® and the OraFID® dispenser, exploring markets outside of Europe

The RX segment comprises Navamedic's prescription products

Q3 2024 revenue

67.1 MNOK

(Q3 2023: 92.1 MNOK)

Double-digit growth Year-over-Year

Consumer Health

Q3 highlights

Modifast delivered strong double-digit growth YoY. Record high number of participants joining Lättare tillsammans, our knowledge-led patient support program

Several products delivered strong growth in the quarter and YoY, including Absolut Torr, MedMade, ThermaCare and Aftamed.

Navamedic is exploring out-licensing opportunities in other markets for both Absolut Torr and MedMade

Strategy for growth

• Launch, distribute, in-license and build unique profitable hero brands in own countries
• Out-licensing of own products to other markets

The Consumer Health segment comprises Navamedic's over-the-counter products, available to patients without a prescription

Q3 2024 revenue

29.3 MNOK (Q3 2023: 25.0 MNOK)

7

Good growth in the quarter and another tender win

Hospital

The Hospital segment comprises Navamedic's antibiotics portfolio and medical nutrition products for the treatment of Inborn Errors of Metabolism (IEM)

Q3 2024 revenue

26.6 MNOK

(Q3 2023: 24.0 MNOK)

Q3 highlights

The Medical Nutrition portfolio continues to deliver steady growth

Secured a significant joint Nordic antibiotics tender to deliver certain antibiotics to hospitals in Denmark, Norway and Iceland. Starting in 2025, the contracts run until 2027 with the opportunity for an extension

Strategy for growth

• Expand and secure market access for new antibiotics in the Nordics and Netherlands, explore opportunities for launch in other Northern European countries
• New product and concept launches in Medical Nutrition

• Antibiotics remain critical to treat bacterial infections
• Antimicrobial resistance (AMR) threatens its effectiveness
• Main issues
  • Overuse and misuse
  • Lack of access to correct products
  • Reliable supply chain
• New guidelines published in September 2024 by the World Health Organisation and Norway's government

Profitable growth built on our strengths Antibiotics

-

• Partnerships with renowned producers
• ISO certified and reliable supply chain
• ESG credentials, which has increasingly become a highly valued attribute for antibiotics

GROWTH BASED ON A STRONG FOUNDATION

Untapping the potential within existing products, categories and territories. Strengthening the core with a disciplined approach to portfolio management, including adding attractive new products in our distribution model

CONTINUING GROWTH THROUGH VALUE ADDING M&A

Acquisitions of smaller companies and product portfolios that have significant growth potential, both through Navamedic's existing platform and in new markets in collaboration with distributors or partners

PORTFOLIO EXPANSION WITH OWN PRODUCTS

Proactively securing and increasing the portfolio value through inlicensing of products and brands. Create value through market growth opportunities outside own territory with own, unique products in cooperation with distributors or partners

1

2

3

Delivering on our strategy to become a NOK 1 billion revenue company with increased

profitability

FINANCIALS

(in NOK '1000)	Q3 2024	Q3 2023	YTD 2024	YTD 2023	FY 2023
Operating revenues	123 062	140 999	400 240	386 686	511 997
Gross profit	45 685	52 970	164 608	153 351	199 054
Gross profit %	37.1 %	37.6 %	41.1 %	39.7 %	38.9 %
Operating cost	-37 069	-35 604	-114 856	-109 697	-147 487
Adjusted EBITDA (excluding transaction cost)	8 616	17 366	49 753	43 654	51 566
Adjusted EBITDA %	7.0 %	12.3 %	12.4 %	11.3 %	10.1 %
Transaction cost	0	-1 118	0	-13 453	-16 061
EBITDA	8 616	16 248	49 753	30 201	35 505
EBITDA %	7.0 %	11.5 %	12.4 %	7.8 %	6.9 %
Depreciation	-1 141	-1 207	-3 151	-2 861	-3 315
Amortization	-2 712	-2 290	-8 023	-4 673	-8 610
Operating result (EBIT)	4 764	12 751	38 578	22 667	23 580
Net financial income and expenses	-1 776	-2 527	-11 546	-11 953	-12 746
Profit before tax	2 988	10 224	27 032	10 715	10 834
Income taxes	-253	-3 452	-5 569	-6 550	-7 529
Net profit / loss (-)	2 735	6 772	21 463	4 165	3 305

In Q3 2024, revenues were below last year mainly due to the cyclical nature of our business

Gross Profit came in at 37.1% for Q3 mostly due to product mix and currency effect

Operating costs are in line with expectations, and we continue to invest in future growth initiatives

Adjusted EBITDA was NOK 8.6M for the quarter and NOK 49.8M YTD

Net financial items was negative NOK 1.8M mostly due to interest expense and currency effects

Profit before tax was NOK 3.0M

Net profit of NOK 2.7M for the quarter

Key consolidated profit and loss figures

Financials

Assets

Financials

Inventory has decreased in line with our expectations

Trade receivables at normalized level

Cash level is mostly the combination of the net result and changes in working capital

Loan receivable is loan to Observe Medical

Information request received from Finanstilsynet regarding the accounting of the loan to Observe Medical

Other current financial assets is the Observe Medical shares at market value

(in NOK '1000)	30.09.2024	30.09.2023	31.12.2023
Goodwill	160 732	140 825	156 729
Deferred tax assets	930	835	930
Other intangible assets	93 492	80 821	97 627
Property, plant and equipment	3 317	1 548	3 692
Right of use assets	5 100	6 579	6 060
Non-current loans receivable	0	0	49 149
Total non-current assets	263 571	230 608	314 186
Tax receivables	13 334	15 128	14 858
Inventories	92 072	79 393	105 200
Trade and other receivables	57 030	60 358	50 631
Cash	46 467	46 768	38 036
Current loans receivable	53 421	47 566	0
Other current financial assets	1 605	5 030	1 393
Total current assets	263 928	254 243	210 118
Total assets	527 499	484 851	524 304

Equity and liabilities

Financials

Equity ratio of 50%

Total loans and borrowings is down in line with loan payment plan

Trade payables is slightly down since last quarter

(in NOK '1000)	30.09.24	30.09.23	31.12.2023
Total equity	264 134	218 269	222 391
Non-current interest-bearing borrowings	87 100	103 292	95 479
Non-current license liabilities	4 166	3 945	3 988
Non-current right of use liabilities	2 273	4 102	3 892
Deferred tax liabilities	8 725	0	9 271
Total non-current liabilities	102 263	111 339	112 629
Current interest-bearing borrowings	34 402	20 455	51 067
Trade and other payables	59 120	72 860	68 300
Current right of use liabilities	3 147	2 227	2 453
Current license liabilities	17 328	228	16 861
Taxes payable	11 360	6 724	8 149
Other current liabilities	35 743	52 750	42 454
Total current liabilities	161 101	155 243	189 284
Total liabilities	263 365	266 582	301 913
Total equity and liabilities	527 499	484 851	524 304

The cash flow from Operating Activities is mainly the result of Net profit coupled with changes in working capital items

The cash flow from financing activities is related to loan payments as well as interest payments

The cash at the end of the period was NOK 46.5M

Cash flow Group – total operations

Financials

(in NOK '1000)	Q3 2024	Q3 2023	YTD 2024	YTD 2023	Year 2023
Net cash flow from operating activities	29 081	25 416	34 622	27 528	2 179
Net cash flow from investing activities	- 63	-9 833	- 435	-99 030	-104 583
Net cash flow from financing activities	-11 629	-2 589	-26 623	63 255	83 235
Changes in currency	758	472	867	- 280	1 909
Net change in cash	18 147	13 466	8 431	-8 527	-17 260
Cash and cash equivalents end period	46 467	46 769	46 467	46 769	38 036

SUMMARY & OUTLOOK

All business areas and new partnership support continued growth

Navamedic ASA summary and outlook

• Navamedic delivered NOK 400.2 million in revenue YTD Q3 2024, representing a 3.5% increase year-over-year
• The growth in 2024 is supported by growth in the Hospital and Consumer Health business areas as well as the licensing and supply agreement for Flexilev®
• Navamedic continues to deliver steady operational progress and growth on a scalable platform and through value adding M&A. Continued to strengthen the core by driving underlying growth

We are building on our solid foundation

• Strengthen the existing business by leveraging our highly scalable market access platform
• Exploring opportunities for market expansion with own products with European/global rights
• Increase value by acquiring and strengthening own products and brands while increasing gross margins through careful management of product portfolio

Ambition of building a NOK 1 billion

revenue company through profitable growth

… and vision of building a leading Nordic pharmaceutical company

Visit our website https://navamedic.com/

Follow us on LinkedIn #InvestInNavamedic

Email infono@navamedic.com

Want to know more?

Thank you for your attention!

Navamedic's Q4 2024 presentation will be held on February 12, 2025

Basis for preparation

Appendix

This presentation provides financial highlights for the quarter for Navamedic Group. The financial information is not reported according to the requirements in IAS 34 (Interim Financial Reporting) and the figures are not audited. The same measurement principles as presented in the Annual Report 2021 have been used preparing this presentation.

The APMs are regularly reviewed by management and their aim is to enhance stakeholders' understanding of the company's performance. APMs presented may be determined or calculated differently by other companies.

APMs:

EBITDA is equal to earnings before interest, tax, depreciation and amortization. EBITDA is a sub-total in the condensed consolidated statement of comprehensive income. EBITDA margin is equal to EBITDA as a percentage of total operating revenues. Gross profit is equal to total revenues minus cost of materials. Gross profit is a sub-total in the condensed consolidated statement of income. Adjusted EBITDA means normal EBITDA less acquisition transaction costs.

Gross margin is equal to gross profit as a percentage of total operating revenues. Equity ratio is equal to total equity as a percentage of total shareholders' equity and liabilities.

Definitions of Alternative Performance Measures (APM)

Copyright and disclaimer

Appendix

Copyright

Copyright of all published material including photographs, drawings and images in this document remains vested in Navamedic and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about economic. Navamedic ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Navamedic ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Navamedic ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. Navamedic ASA consists of several legally independent entities, constituting their own separate identities. Navamedic is used as the common brand or trademark for most of these entities. In this presentation we may sometimes use "Navamedic", "we" or "us" when we refer to Navamedic companies in general or where no useful purpose is served by identifying any particular Navamedic company.