Aziyo Biologics : 2Q 2023 Financial Results Presentation

Aziyo Biologics

2nd Quarter 2023 Conference Call

C. Randal Mills, PhD

Chief Executive Officer

Matt Ferguson

Chief Financial Officer

August 14, 2023

Forward-Looking Statements

This presentation of Aziyo Biologics, Inc. ("Aziyo," "we," "us," "our" or the "Company") (together with any other statements or information that we may make or discuss in connection herewith) contains forward- looking statements. All statements other than statements of historical facts, including but not limited to statements regarding future financial condition, results of operations, including, without limitation, cash flow improvement, business strategies, development plans, industry trends, regulatory activities, market opportunity, competitive position, potential growth opportunities, our products, their targeted effects and expected commercial availabilities, distribution agreements, our pipeline and investments in new products and technologies, approvals of future products or product uses, expectations regarding acquisitions or dispositions, ability to close and execute on strategic transactions and the potential results of such transactions are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "aim," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements are based on our management's current expectations, beliefs and assumptions and on information currently available to us. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

The forward-looking statements in this presentation are only predictions. These statements involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements due to various factors, including, but not limited to risks regarding the ability to successfully execute or realize the anticipated benefits under our distribution arrangements with LeMaitre Vascular and Sientra; our inability to generate sufficient revenue to achieve or sustain profitability; adverse changes in economic conditions and instability and disruption of credit markets; our ability to continue as a going concern; our ability to successfully execute or achieve expected benefits from a divestiture of our Orthopedics business; our products and our ability to enhance, expand, develop and commercialize our product offerings; the impact on our business of the recall of a single lot of our FiberCel product and the discontinuation of its sales by our distribution partner; consequences of our recall of a single lot of one of our viable bone matrix products and market withdrawal of all of our viable bone matrix products; our dependence on our commercial partners; the impact of the bankruptcy of Surgalign Holdings, Inc., a significant customer of the Company, on our future revenues; physician awareness of the distinctive characteristics, and acceptance by the medical community, of our products; the ability to obtain regulatory approval or other marketing authorizations; and our intellectual property rights and other important factors discussed under the caption "Risk Factors" section of Aziyo's public filings with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the year ended December 31, 2022, as such factors may be updated from time to time in our other filings with the SEC, including, our Quarterly Reports on Form 10-Q, accessible on the SEC's website at www.sec.gov and the Investor Relations page of Aziyo's website at www.Aziyo.com. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified.

This presentation includes a discussion of non-GAAP gross profit and non-GAAP gross margins, which exclude intangible asset amortization. We present these because we believe they provide meaningful supplemental information regarding our operating performance by removing the impact of amortization expense, which is not indicative of our overall operating performance. We use these measures in assessing the health of our business and our operating performance, and we believe investors' understanding of our operating performance is similarly enhanced by this presentation. We recommend that you do not rely on any single financial measure to evaluate our business. The Appendix to this presentation includes reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure.

This presentation may also contain statistical data, estimates and/or other information or data made by independent parties and/or by us relating to market size and growth, as well about our industry and business. Any such data or information that is based on estimates, forecasts, projections, market research, or similar methodologies, involve a number of assumptions and limitations and are inherently subject to uncertainties, and we have not independently verified the accuracy or completeness of these data. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of our industry or the markets in which we operate are necessarily subject to a high degree of uncertainty and risk.

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Aziyo Reports 2Q23 Financial Results

Transformation Continues to Drug-Eluting Biomatrix Company

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Negotiating multiple LOIs to divest Orthopedic business

CanGaroo® RM 510(k) resubmission to the FDA remains on track

SimpliDerm® quarterly net sales up 32% year-over-year

Successful transfer of Cardiovascular product distribution to LeMaitre Vascular

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The Products

BIOENVELOPE

Creates a stable, healthy pocket for the placement of pacemakers, defibrillators, and neurostimulators.

BIOMATRIX

For use in the repair

or replacement of tissue in postmastectomy reconstructive breast surgery.

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Original In Vitro Elution Method

Limit - 80%

Old: 75% eluted

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