Zelluna ASA — Earnings Release 2019

Aug 21, 2019

Activating the immune system to fight cancer

First half 2019 presentation

21 August 2019

Øyvind Kongstun Arnesen, CEO Hans Vassgård Eid, CFO

Important notice and Disclaimer

This presentation may contain certain forward-looking statements and forecasts based on uncertainty, since they relate to events and depend on circumstances that will occur in the future and which, by their nature, will have an impact on Ultimovacs' business, financial condition and results of operations. The terms "anticipates", "assumes", "believes", "can", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "should", "projects", "programmes", "targets", "will", "would" or, in each case, their negative, or other variations or comparable terminology are used to identify forward-looking statement. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in a forward-looking statement or affect the extent to which a particular projection is realised. Factors that could cause these differences include, but are not limited to, implementation of Ultimovacs' strategy and its ability to further grow, risks associated with the development and/or approval of Ultimovacs' products candidates, ongoing clinical trials and expected trial results, the ability to commercialise UV1, technology changes and new products in Ultimovacs' potential market and industry, the ability to develop new products and enhance existing products, the impact of competition, changes in general economy and industry conditions and legislative, regulatory and political factors. No assurance can be given that such expectations will prove to have been correct. Ultimovacs disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reservation is also made that inaccuracies or mistakes may occur in this information given about current status of Ultimovacs or its business. Any reliance on the information is at the risk of the reader, and Ultimovacs disclaims any and all liability in this respect.

• Ultimovacs is a research based pharmaceutical company focused on developing universal cancer vaccines applicable at all stages of cancer, including possibly prevention of cancer
• Ultimovacs' lead product, UV1, is a universal cancer vaccine developed to enable the immune system to identify and kill cancer cells
• UV1 activates the immune system against telomerase antigens (hTERT) essential to cancer cells' unlimited proliferation ability
• These antigens are present in 85 90% of all cancers
• UV1 is developed in combination with checkpoint inhibitors/other cancer treatments
• Further development of Ultimovacs' cancer vaccine platform is ongoing

UV1 is a CD4 Activating, Universal Cancer Vaccine

UV1 is directed towards hTERT, which is expressed in 85-90% of all cancer indications

UV1 can be used in the general population without pre-screening of HLA

The UV1 vaccine consists of long peptides activating CD4 helper T lymphocytes

UV1 is easily manufactured, has a long shelf life and a low unit cost

Ease of clinical use, no complex hospital infrastructure required

Ultimovacs – Development Plan

Phase II trial in First Line Malignant Melanoma Patients Indicated for Combination Treatment with Nivolumab/Ipilimumab

Proof of concept trial to compare treatment with UV1/anti-PD1/anti-CTLA-4 versus anti-PD1/anti-CTLA-4 in patients that are indicated for anti-PD1/anti-CTLA-4 treatment

Purpose

To show signal of superiority of UV1/anti-PD1/CTLA-4 over anti-PD1/CTLA-4 in 1st line metastatic malignant melanoma

Goal and timing of primary endpoints

• Evidence of signal that UV1/anti-PD1/anti-CTLA-4 is clinically superior to anti-PD1/anti-CTLA-4
• PFS read-out when 70 endpoints have been reached (expected to be appr. 30 months after study start)
• Interim immune response data in H1 2021from randomized patients

Patient population and endpoints

Target is a hazard ratio of 0.6, expected mPFS in control arm 11.5 months (CheckMate 067)

Strictly private and confidential

: First patient first visit

Clinical trial update

• Ongoing US based phase I trial study in malignant melanoma
• UV1 is given in combination with the PD-1 checkpoint inhibitor pembrolizumab.
• As per 30 June 2019, 15 out of the originally planned 20 patients have been included in this trial. As per 20 August 2019, 16 patients have been enrolled in this trial.
• There have been no observed unexpected safety issues related to UV1 for these patients.
• Ultimovacs will seek approval of an additional cohort of 10 patients to be enrolled in the ongoing phase I trial study in malignant melanoma. Thus, the total number of patients may be increased from 20 to up to 30.

Clinical trial update (cont.)

• Upcoming randomized phase II trial in malignant melanoma
• UV1 will be given in combination with the CTLA-4 checkpoint inhibitor ipilimumab and the PD-1 checkpoint inhibitor nivolumab
• Preparations are progressing according to plan towards inclusion of first patient in Q1 2020
• The main ongoing activities are finalization of the study protocol, selection of CRO (Contract Research Organization that will assist Ultimovacs in the conduct of the trial), development of the regulatory approach and selection of principal investigator

European patent approval for UV1

• In June 2019, the European Patent Office decided to grant Ultimovacs patent approval for UV1
• This gives patent protection for UV1 in Europe until 2031
• Patents for UV1 are now granted in Europe, the USA, Japan, Russia and China

Successful completion of initial public offering

• First day of trading on the Oslo Stock Exchange was 3 June 2019 (ticker 'ULTIMO')
• MNOK 370 raised in the IPO (gross proceeds)
• The new shares issued represent 42.5% of total issued shares after the IPO
• The price per Offer Share was set to NOK 31.25
• Ultimovacs' main shareholders prior to the IPO subscribed for shares close to MNOK 120
• Strong interest from domestic and international institutional investors (including international healthcare specialist funds), as well as retail subscribers in Norway. Total number of shareholders was approximately 1,500 following the IPO and 1,800 as per 30 June 2019.

Key financials per H1-2019 - Ultimovacs Group

NOK (000)	H1-18	H2-18	H1-19	FY18
Total revenues	0	0	0	0
Payroll and payroll related expenses	10 483	16 594	2 821	27 078
External R&D and IPR expenses	10 118	9 283	10 007	19 401
Other operating expenses (incl. depreciation)	5 273	4 770	6 238	10 044
Total operating expenses	25 874	30 648	19 066	56 522
Operating profit (loss)	-25 874	-30 648	-19 066	-56 522
Net financial items	190	1 053	499	1 243
Profit (loss) before tax	-25 684	-29 595	-18 568	-55 280
Net increase/(decrease) in cash and cash equivalents	-25 744	-28 604	330 630	-54 240
Cash and cash equivalents at end of period	144 144	115 540	446 041	115 540
Number of FTEs at end of period	11	14	17

Comments:

Payroll expenses

• H2-18 includes an expense of MNOK 4.7 related to share-based payment/ synthetic shares
• H1-19 includes a reversal of sharebased payment liability (synthetic shares) of MNOK 10.2 (would have been MNOK 13.0 without this reversal).

Cash

• H1-19 includes increase in cash from share issue/IPO (net MNOK 362). Without this element, net decrease in cash would have been MNOK 31.5.
• Net cash outflow related to the IPO of appr. MNOK 18 expected in H2-19 (accounts payable).

H2 2019	Regulatory response on a cohort with 10 additional patients in the ongoing US phase I trial
Q4 2019/Q1 2020	Recruitment of patients completed in the ongoing US phase I trial
H2 2019	5-years OS data from prostate cancer phase 1
Q1 2020	Initiation (first patient in) of the randomized phase II trial in malignant melanoma
H1 2020	Safety data from all patients in the ongoing US phase I trial in malignant melanoma

Øyvind Kongstun Arnesen, CEO

E-mail: oeyvind.arnesen@ultimovacs.com Phone: +47 469 33810

Hans Vassgård Eid, CFO

E-mail: hans.eid@ultimovacs.com Phone: +47 469 19822