NIOX : Interim Report & Accounts 2022

NIOX Group plc

(Formerly Circassia Group plc)

Interim Report & Accounts 2022

Our ambition is to improve the quality of life of millions of people suffering from asthma.

Asthma is one of the biggest healthcare issues globally with 340 million sufferers, many of whom are undiagnosed or misdiagnosed The Group is engaged in the design, development, and commercialisation of medical devices for the measurement of FeNO, a biomarker of inflammatory asthma.

Our market leading device, NIOX VERO®, is increasingly recognised by healthcare professionals as an important tool to improve the diagnosis and management of asthma. NIOX VERO® is also the device of choice by leading clinical research organisations for respiratory studies.

We passionately believe in empowering everyone to manage their health at home and will look to provide a device designed exclusively for home use.

At present, NIOX provides products and services in around 50 countries.

For more information, please visit www.investors.niox.com

2	NIOX GROUP PLC | INTERIM REPORT AND ACCOUNTS 2022

Contents

Financial and Operational highlights	4
Executive Chairman's statement	6
Operating review	8
Financial review	10
Principal risks and uncertainties	14

Condensed interim consolidated statement of comprehensive income	18
Condensed interim consolidated statement of financial position	20
Condensed interim consolidated statement of cash flows	21
Notes to the condensed interim consolidated financial statements	22

Statement of Directors' responsibilities

30

Shareholder information

31

NIOX GROUP PLC | INTERIM REPORT AND ACCOUNTS 2022

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INTERIM REPORT Financial highlights

NIOX® Sales

£15.5m

Underlying NIOX® revenue growth of 11% to £15.5 million (excluding the effect of a one-off revenue item of £0.6 million recognised in H1 2021)

NIOX® EBITDA

£3.2m

The Group generated an adjusted EBITDA profit of £3.2 million (H1 2021: £0.3 million loss), reflecting improved margins and a substantial reduction in the cost base

Net Cash

Strong balance sheet with no debt and cash of £13.8 million as of 30 June 2022 (30 June 2021: £11.3 million, 31 December 2021: £12.6 million)

30 JUNE

2021

31 DEC

2021

30 JUNE

2022

£11.3m

£12.6m

£13.8m

Financial Progress

			H1 2022	H1 2021
			£m	£m
Revenue			15.5	14.6
Gross margin			71%	68%
Total expenditure1		(7.8)	(10.2)
Adjusted EBITDA2		3.2	(0.3)
Operating profit / (loss)		0.6	(2.6)
Beyond Air settlement consideration	8.1	-
Profit / (loss)	before tax from	continuing operations	8.9	(2.0)
Profit for the	financial period from discontinued operations	0.3	1.1
Profit / (loss) for the financial	period	9.2	(0.9)
Cash3 at period end		13.8	11.3

1. Excludes depreciation, amortisation, impairment and share option charge.
2. Earnings before interest, tax, depreciation, amortisation, impairment and share option charge. See note 12 for reconciliation.
3. Includes cash and cash equivalents.

4	NIOX GROUP PLC | INTERIM REPORT AND ACCOUNTS 2022

INTERIM REPORT

Operational highlights

Operational highlights

• FDA approval for Beyond Air's LungFit® PH device received on 28 June 2022, initiating total milestone payments of $10.5 million over the next three years, with up to a further $6 million in royalty payments thereafter.
• Ongoing transition to distributor-led business model with new arrangements in the USA and China expected to drive scalable revenue growth.

Post period end

• Initial payment of $2.5 million received from Beyond Air on 24 August 2022.
• Net cash at 31 August 2022 increased to £17.6 million.
• The Company received approval from shareholders
  on 1 September 2022 to change its name from Circassia Group plc to NIOX Group plc.
• The Company will shortly be proposing a capital reduction scheme to shareholders for approval in order to provide flexibility to enable the Board to return surplus cash to shareholders, via dividends and/or share buybacks, if considered appropriate in the future.

NIOX GROUP PLC | INTERIM REPORT AND ACCOUNTS 2022

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