SoftOx Solutions AS — Investor Presentation 2020

Jun 30, 2020

Preventing and treating difficult infections

SoftOx Solutions AS A Norwegian MedTech Company listed on Merkur, OSE

Agenda

• Highlights from Q1
• Clinical development and status
• The challenge
• The SoftOx technology
• The solution
• Product development
• Commercialising
• Hand disinfectant
• Production facilities
• Wound care products
• Animal wound care market
• Key financial figures 1st Quarter 2020
• Outlook

Highlights 1st Quarter 2020

• Established production of SoftOx Hand disinfectant
• SoftOx hand disinfectant shows full viricidal effects
• Antibac alcohol free hand disinfection "powered by SafeDes" launched
• Presafe Notified Body, approved for MDR
• Animal study started to explore potential effects on infections in the respiratory tract
• Awarded 2.4 million from NRS for establishing a doctoral scholarship for development of SoftOx second generation
• Awarded SoftOx NOK 6 million from Innovation Norway as a loan for an additional production line for hand disinfectant

Challenges

Antibiotic resistance

The ability of bacteria and other microorganisms to resist the effects of an antibiotic to which they were once sensitive

Biofilm resistance

Aggregated bacteria often covered by slime (biofilm matrix), acting as a fortress and protect bacteria from attacks such as antibiotic treatment and the immune system

Virus epidemics / pandemics

Spread of virus outbreaks leads to increased awareness of personal (hand) hygiene regimens

SoftOx reinforces nature's ability to fight antimicrobial resistance (AMR)

A unique combination

Hypochlorous acid Acetic acid

• The body's own antimicrobial agent
• Instantaneous microbial killing effect
• Superior safety profile in efficient concentrations
• Widely used in drinking water = safe

• Moderate antiseptic effect alone

• Long history of use as an antiseptic

• Potentially effective deep within the wound bed
• Good stability
• Retains antimicrobial activity despite contact with organic material (e.g. blood, tissue)
• Widely used as food additive
• Moderate antiseptic effect alone

The SoftOx Technology – the combination effect

• The combination works synergistically, and shows superior effect on microbes
• Shows no resistance or cross-resistance towards antibiotics
• Can be customized for specific purposes;
• » Higher concentration of acetic acid increases the formula's antimicrobial potency (biofilm eradication)
• » Lower concentration of acetic acid yields a softer sting when applied to wounds (disinfectant, wound irrigation)
• Effectively stabilizes hypochlorous acid at skin friendly pH

SoftOx's prerequisites for effective infection removal

The SoftOx Wound Model An effective antimicrobial for treatment of infections in wounds must:

• ➢ Penetrate and kill microbes within biofilms
• ➢ Be able to penetrate deep into the wound bed
• ➢ Be safe / non-toxic
• ➢ Be able to kill antibiotic resistant bacteria and

Pre-clinical experiments show outstanding results

In vitro in the lab

• ✓ A safe disinfectant with a unique ability to remove hard-totreat microbes embedded in biofilm
• ✓ Significantly more effective than competitors against P. aeruginosa and S. aureus, the most common bacteria in chronic wounds
• ✓ Did not induce resistance or cross-resistance development towards antibiotics

Animal models

• ✓ No negative influence on wound healing
• ✓ Well-tolerated in full-depth wounds
• ✓ Significant bacterial reduction in wounds

Effectiveness on Pseudomonas aeruginosa¹ Effectiveness on Staphylococcus aureus¹

7 1) Company information

Effect on bacteria in biofilms

SoftOx

SoftOx SoftOx

Multiple areas of use – current focus on hands and wounds

SoftOx is effective against bacteria (also in biofilms), virus, fungus and spores

SoftOx disinfection solution shows excellent tolerability

A comparison of SoftOx disinfection solution and alcohol disinfection on skin barrier properties on healthy skin in healthy individuals, N=20

Department of Dermatology, Bispebjerg Hospital, University of Copenhagen

Healthy skin assessed by: TEWL (water loss), electrical conductance, pH and color (redness/irritation).

Result:

• No observed irritation after 40 repetitive applications of the SoftOx disinfectant. No discomfort reported.
• 2 individuals reported burning sensation after use of alcohol
• 1 individual developed transient redness (irritation) after alcohol treatment.

Conclusion: "the skin barrier function of the healthy skin is unaffected by the repetitive exposure to SoftOx disinection solution as compared to ABHR and control and that the new device is subjectively well-tolerated when applied on healthy skin."

Medical Device: SoftOx Wound Irrigation Solution (SWIS) development plan

Drug: SoftOx Infection Remover (Biofilm Eradicator) – Chronic wounds

Treatment of infections in the respiratory tract

Collaboration to treat infections has been initiated by the University of Copenhagen

• ➢SoftOx is to explore effects on inhalation
• » Ability to combat viral and bacterial infections in respiratory tract and lungs.
• ➢NOK 3.5 million allocated to the project
• ➢Results from animal studies are expected in 2020

Product development plan based on the SoftOx platform

Hand disinfectant – consumer market

The Ipsos survey on hand disinfectant shows

• Majority believe the increased disinfection trend with last
• 84% report increased use of hand disinfectant.
• Users in public places has increased from 25% to 83%.
• Most common side effect dry skin.
• » 80% associate hand disinfection with dry hands.
  • 44% of women score this 6 on a scale of 1-6

Asker og Bærum Budstikka 15.05.2020

Increased demand after the introduction of a skin friendly hand disinfectant

The consumer product

Unique Combination:

• Only AntiVir provides full effects on all viruses and bacteria
• Does not dry out the skin
• No hazard labeling, nonflammable
• Not harmful to wounds or cracked skin
• Not harmful to solid surfaces or textiles «AntiVir» - Effect without side-effects»

Go-to-market strategy: Consumer market

Sales channels and target markets

• Sales through distribution partners
• Norway/Sweden and Denmark:
  • Bonaventura Scandza Retail (Scandinavia)
  • Milas Schools and Kinder gartens (Norway)
  • VESO Aquaculture and farming industry (Norway)
• Rest of Europe: In progress
• Premium product, aimed at consumers with sensitive skin incl. kids
• Available in retail stores and pharmacies
• Sold directly to kindergartens
• Web shops

250 million homes in the EU Under existing conditions market is estimated to NOK 10 - 25 bn

A unique product benefit will make allow us to dominate this segment

The hand disinfectant for the health care market

Largest segments for hand disinfectants have unique requirements:

• Must have clinical proof of better skin friendliness
• Must not cause microbial resistance
• Must be non-alcoholic

SoftOx hand disinfectant

• will be a part of HINAs autumn 2020
• Expected entry to healthcare market trough distributors and/or directly and challenge alcohol based disinfectants

Well positioned to answer a large unmet need

Go-to-market strategy: Hand disinfection for Healthcare markets

• Sales through distribution partners
• Nordics/Baltics: Kiiltoclean (Antibac) TBD
• Rest of Europe: In progress
• Premium product, aimed at healthcare workers
• 25-50%⁵ of healthcare workers (HCW) have skin problems on their hands
• Does not cause dry skin with better antimicrobial effect than alcohol
• Available in pharmacies, distributors and sold directly to large users

Market size

18.8 million HCWs in the EU and the US¹² Whereof 13.3 million have irritated skin and eczema¹

USD 1,080³ Value of effective prevention of hand eczema per HCW

18

USD 20.2 bn³

Value of hand health market in Europe and the US

Sales channels and target markets Healthcare savings and revenue scenario

Market share assumptions: Y1 (1%), Y2 (2%), Y3 (3%), Y4 (5%), Y5 (7%)

1) ec.europa.eu/eurostat/Healthcare_personnel_statistics_-_nursing_and_caring_professionals 2015 & Presentation Prim. Univ.-prof Dr. Robert Strohal, Hospital Fledkirch

2) Center for Disease Control and Prevention (CDC) homepage https://www.cdc.gov/niosh/topics/healthcare/default.html

3) MedValue+, Radbound University Medical Center and Exite International's Panel of 11 KOL/experts – "2019 Health Technology Assessment; SoftOx Hand-wash for Health Care Workers with Eczema"

4) Company estimates

5) World Health Organization – Guidelines on Hand Hygiene in Health Care

Production facilities

• Production facilities established
• » One facility for small bottles, 5.000 bottles per day
• » One facility for large bottles (1 liter and 5 liters) 40.000 bottles per day

Production Capacity

• Existing capacity 45,000 bottles per day
• » Focus on bottling and better flexibility in bottle size and shape
• » New production line for increased flexibility delayed with 1-2 month

Go-to-market strategy: Medical device (SWIS) + infection remover (drug)

• To secure market access
• Clinical development plan
  • Excite International
• KOL University of Copenhagen
• Reimbursement
• Regulatory
  • Infection prevention medical device
  • Infection remover drug
• Partnering to secure total wound care solution and distribution

External health economy assessment report Infection remover market size³

▪ Est. cost reduction by using SoftOx-technology on venous leg ulcers (VLU) and diabetic foot ulcers (DFU) below¹ :

Treatment	Prevention
VLU –	VLU –
USD 4,969	USD 643
DFU –	DFU –
USD 2,030	USD 2,692

Market access and sales strategy Infection prevention market size²

1) "MedValue health economic decision modelling; Decreased time to ulcer healing and prevention of clinical infections in diabetic foot and venous leg ulcers" 2) Wound Irrigation Solutions Market to 2027 - Global Analysis & Forecast by Product, End-user and Geography - ResearchAndMarkets.com 3) Wound prevalence and wound management, 2012-2020, Med Market Dilligence, 2013

Go-to-market strategy: Animal wound care market - delayed

• First distribution agreement with VESO, a strong distributor to the Norwegian veterinary healthcare market
• Planned launch of first products in 2020
• Will seek strong strategic partnerships for entry in the rest of Europe and the US
• Large potential for future line extensions

as high as USD 1.2-2 bn

Market size

Dairy cows: 23 million (EU) & 9.5 million (US) 20-35%¹ and 47-71%²reported prevalence of clinical mastitis across EU. Est. cost per case varies from USD 70-300 ³ . Est. cost in EU -

Cats and dogs: 160 million (EU) & 185 million (US) EU companion animal wound treatment market incl horses is est. at USD 221 million with a CAGR of 6.5%⁴

Horses: 6,4 million (EU) & 9 million (US) 6-9 times higher spending on horse wound treatment than on cats and dogs⁴

Sales channels and market entry Animal care revenue scenario – gross market

21 1) https://efsa.onlinelibrary.wiley.com/doi/abs/10.2903/j.efsa.2009.1143r

2) https://ec.europa.eu/eip/agriculture/en/content/mastitis-control-organic-dairy

3) https://www.independent.ie/business/farming/dairy/mastitis-cases-can-cost-up-to-300-per-cow-35338174.html

4) FIOR – Europe animal wound care market report 2019-2026

Key figures 1st quarter

	1Q20	1Q19	2019
SoftOx Solutions Group
Total revenue and other income	1 2 3 9	1 2 9 0	4 0 9 9
Total operating expenses	8494	5 5 6 6	25 969
Operating result	$-7254$	-4 277	$-21870$
Net result before taxes	$-7245$	-4 251	$-22178$
Net proceeds from equity issues	0	0	89 903
Net cash flow	$-21630$	$-5829$	70 246
Cash and cash equivalents at end of period	54 365	11 269	75 995
Outstanding shares, beginning of the period (1, 2)	7 751 000	2 488 500	2 488 500
Outstanding shares, end of the period (1, 2)	7 751 000	3758650	7 751 000
Employees and of the neriod	1	1Ο.	1 ว

Outlook next 12 months

• Commercialize SoftOx hand disinfectant

• » In partnership with various distributors, SoftOx will penetrate Nordic markets and challenge the position of Alcohol-based disinfectants.
• The SoftOx disinfectant is superior to alcohol-based disinfectant and is more skin friendly.
• » Expecting to receive approval for the hand disinfectant for the EU-area.

• Application for approval of SoftOx Wound Irrigation Solution

» Confirmatory clinical investigation of SoftOx Wound Irrigation Solution (SWIS) medical device.

• Preparation of first-in-human drug study (phase I) for BE in co-operation with US Authorities.

• » Completion of the preclinical repeated dose toxicity studies on SoftOx Biofilm Eradicator (BE) drug candidates
• » To secure a successful market adoption of BE, the company will also continue to cooperate closely with EXCITE International on clinical development.

Thank you for your attention!