Vistin Pharma — Earnings Release 2024

Aug 23, 2024

Presentation 2024

Magnus Tolleshaug (CEO) / Alexander Karlsen (CFO) 23 August 2024

Highlights Market overview Financial review Summary Appendix

Highlights

Second quarter 2024 results

MNOK 106 in revenue vs. MNOK 107 in Q2 2023

• Currency neutral revenue slightly higher in the quarter compared to Q2'23 (+1%)
• MNOK 210 in revenue YTD 2024 compared to MNOK 208 YTD last year

Record high EBITDA of MNOK 27 vs. MNOK 20 in Q2 2023, an increase of 40%

• EBITDA positively affected by product mix, favorable material cost prices and good cost control in quarter
• EBITDA YTD of MNOK 48 compared to MNOK 34 YTD 2023, an increase of 42%

Other

• Manufacturing line 2 has been producing according to plan from April, after the unplanned maintenance/repair in first quarter
• Planned bi-annual maintenance stop successfully completed in second quarter
• Cash dividend of NOK 0.50 per share distributed in June 2024. Additional dividend of NOK 0.50 per share planned to be distributed in Q4
• Net profit positively affected with MNOK 2.5 in quarter by fair value of future FX cash flow hedging contracts (unrealized gain - no cash effect in quarter)

Vistin has high focus on reducing local and global emissions, and programs are in place to consume responsibly and recycle where possible

Highlights Market overview Financial review Summary Appendix

A pure play metformin company – supporting patients worldwide in a growing market

Diabetes

One of the largest health emergencies in the 21st century

Metformin

The gold standard treatment of type 2 diabetes + =

Vistin Pharma growth opportunity A leading global producer of premium metformin

• Market demand for Metformin is expected to grow 4-6% annually
• Vistin's global market share will be approx. 10% when new capacity expansion is fully utilized

Diabetes – A global emergency

Number of people with diabetes expected to increase by 50% from 2019-2045 to 750 million people

Vistin Pharma produces about 10% of the world's demand of metformin and has a world-wide sales coverage

World sales map

Highlights Market review Financial review Summary

Appendix

Long track of profitable growth

Sales volume increased by 4% compared to Q2'23, even with limited available volume in April due to production downtime in Q1

Quarterly sales volume metformin (HCl & DC)

Figures in Metric Tons (MT)

Revenue increased compared to Q2'23 (currency neutral), partly offset by lower global metformin prices due to decreased raw material prices

• Revenue of MNOK 106 in Q2'24 vs 107 in Q2'23, adjusted for slightly stronger NOK compared to EUR/USD in 2023, revenue increased by 1%
• April affected by limited sales volume available due to unplanned production downtime in Q1 – May and June available sales volume was according to plan
• Global Metformin prices are lower past twelve months as raw material prices have decreased from high post pandemic levels

Figures in MNOK

Positive development in gross margin with stable production volumes and economies of scale in raw material purchasing

Q4 2022 adjusted for the one-time positive liquidated damage compensation (MNOK ~12.5)

Gross margin (Total revenue – raw materials & freight costs)

• Positive development in gross margin due to stable production and favorable economies of scale in raw material purchasing
• Vistin' s ambition for long-term gross margin is >60%

Record high EBITDA of MNOK 27.3 vs. MNOK 19.6 in Q2 2023, a 40% increase compared to same quarter last year

• EBITDA positively affected by product mix, favorable material cost prices and good cost control in quarter

Figures in MNOK

Key figures: income statement

(NOK 1 000)	Q2 2024	Q2 2023	YTD 2024	YTD 2023	FY 2023
Total revenue and other income
Total revenue and other income	106 081	106 729	209 964	207 669	438 328
EBITDA
EBITDA	27 337	19 546	47 778	33 688	85 944
EBIT
EBIT	22 328	15 313	38 087	25 255	68 597
Depreciation & amortisation	-5 009	-4 233	-9 691	-8 433	-17 347
Net finance income/(expense)	2 239	-6 214	-3 704	-19 977	-10 079
Profit/(loss) before tax	24 567	9 099	34 383	5 278	58 517
Profit/(loss) for the period	19 162	7 097	26 819	4 117	45 595

Balance sheet

Assets

	30.06.2024	30.06.2023	31.12.2023
ASSETS
Non-current assets
Fixed assets	229 973	218 433	219 984
Financial Assets	11 433	-	-
Deferred tax assets	7 074	27 440	14 638
Total non-current assets	248 480	245 873	234 622
Current assets
Inventory	68 787	80 579	80 171
Trade receivables	67 216	52 373	47 023
Other receivables	7 099	1 356	15 376
Cash & cash equivalents	11 389	2 920	26 204
Total current assets	154 490	137 229	168 774

Total Assets 402 970 383 103 403 397

• Deferred tax asset in relation to realized loss for Energy Trading in Q1 2020
• Inventory consisting of approx. 70/30 raw materials and finished goods
• Reduced sea transportation through the Suez canal has significantly increased freight lead times. However, no impact on production in the first half of the year, due to safety stock of critical raw materials

Balance sheet

Equity and liabilities

	30.06.2024	30.06.2023	31.12.2023
EQUITY AND LIABILITIES
Equity
Share capital	44 345	44 345	44 345
Share premium	151 470	206 885	206 885
Retained earnings	98 360	26 372	71 540
Total equity	294 175	277 602	322 770
Non-current liabilities
Other non-current liablites	1 764	2 489	2 287
Pension liabilites	8 372	13 199	8 864
Total non-current	10 136	15 687	11 151
liabilities
Current liabilities
Trade payables	13 443	33 940	18 916
Short term debt	45 835	-	-
Other current liabilities	39 380	55 873	50 558
Total current liabilities	98 658	89 814	69 473
Total liabilities	108 795	105 501	80 624
Total Equity and Liabilities	402 970	383 103	403 397

• Strong balance sheet with an equity ratio of 73%
• Net interest-bearing debt of MNOK 34.4 as of end June. Change from net cash as of end 2023 and to net debt driven by dividend payout in January and June (total NOK 1.25 per share) and the acquisition of 15% of the shares in CF Pharma
• Vistin has additional credit facilities available if needed

Highlights Market overview Financial review Summary Appendix

All time high EBITDA of 27.3 MNOK in Q2'2024 with gross margin of 64%

Metformin market expected to continue to grow by 4-6% annually

Freight prices are expected to gradually increase during 2024 due to recent spike in freight rates

Sales prices and volume for remaining 2024 are booked

The long-term renewable energy supply agreement signed with Statkraft until 2032 provides predictable cost and secures 100% green hydropower long-term

Attractive Metformin growth potential to be realized when the remaining manufacturing capacity is fully available and utilized

Vistin is strategically well positioned as leading European clients prefer high quality supplies, near-shore production and an attractive ESGprofile

Vistin has an ambition to pay out 50 percent of net annual profit as dividend, to be balanced against the company's financial strength and capital requirements for future growth

After the purchase of 15% of CF Pharma in Q1, Vistin is exploring our various strategic options for further growth

Highlights Market overview Financial review Summary Appendix

Double capacity double care metformin strategy

Strategically positioned producer of two different metformin products: Metformin HCl and DC

• Enhance our capability to supply tailor-made products
• Improve COGS by investing in costefficient supply of raw materials, waste handling and LEAN
• Strategically well positioned as many European clients prefer high quality supplies, near-shore production and a leading ESGprofile

Attractive growth potential with new production line installed in 2022

• Decided in April '20 to invest MNOK 100 to increase the annual production capacity up to 7000MT
• Sales volume increased by ~44% from 2022 to 2023
• Vistin is experiencing a strong demand for it's Metformin

A premium producer in a competitive market

• Sales to reputable international pharmaceutical companies
• State-of-the-art, fully automated manufacturing plant in Kragerø, Norway
• Certified by all significant international regulatory bodies

Metformin market expected to continue to grow by 4-6% annually

• Diabetes is one of the largest health crises of the 21st century
• Metformin is expected to maintain its position as the Gold Standard treatment for T2D in the foreseeable future
• The additional demand for metformin HCl is by industry experts forecasted to grow by approx. 21.000MT to 90.000MT by 2029

Appendix

Top 20 shareholders as of end June 2024

NAME	SHAREHOLDING	% SHARE
INTERTRADE SHIPPING AS*	12 575 000	28,36 %
HOLMEN SPESIALFOND	3 842 055	8,66 %
PACTUM VEKST AS*	2 991 773	6,75 %
MP PENSJON PK	1 719 848	3,88 %
FERNCLIFF LISTED DAI AS*	1 234 280	2,78 %
STORKLEIVEN AS	751 000	1,69 %
AUGUST RINGVOLD AGENTUR AS	750 315	1,69 %
LUCELLUM AS	720 000	1,62 %
HENRIK MIDTTUN HAAVIE	670 580	1,51 %
IVAR LØGES STIFTELSE	550 000	1,24 %
SURFSIDE HOLDING AS	527 960	1,19 %
TOM RAGNAR PRESTEGÅRD STAAVI	526 324	1,19 %
CORTEX AS	508 989	1,15 %
SANDEN EQUITY AS	500 000	1,13 %
WEM INVEST AS	500 000	1,13 %
DNB BANK ASA	493 327	1,11 %
DELTA AS	410 000	0,92 %
GINKO AS	400 000	0,90 %
ØYSTEIN STRAY SPETALEN*	323 650	0,73 %
MELESIO INVEST AS	309 808	0,70 %
Total 20 largest shareholders	30 304 909	68,34 %
Other shareholders	14 039 683	31,66 %
Total number of shareholders	44 344 592	100,00 %

*Board members of Vistin Pharma ASA

Thank you for your attention

www.vistin.com

Magnus Tolleshaug (CEO) Alexander Karlsen (CFO) 23 August 2024