Investor presentation November 2018

BioGaia in short

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The founders Peter Rothschild and Jan Annwall

Holds 440 patentsin 32 families

Listed on the NasdaqStockholm (mid cap list)

Offices in Sweden (Stockholm, Lund, Eslöv),

Singapore, USA, Japan

Products in 100 marketsthrough distributors

127 employeesFounded in 1990

MISSION VISION

BioGaia’s vision is to be a ground-breaking leader in probiotics

BioGaia conducts research and development to offer consumers clinically-proven,health-promoting, patentedand user-friendly probiotic products

A healthcare company working with probiotics

Flexible business model

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BioGaia

Universities and hospitals where research is conducted

Manufacturing andpackaging units

Partners with salesof products

NETWORKResearchers

Preclinical and clinicalstudies at hospitals

and universities

BioGaiaProduct development

Product strategiesResearch

Quality assurance systemMarketing support

IP

NETWORKSuppliers

Production andpackaging

NETWORKPartners

Pharmaceutical orhealthcare companies

with sales organizations

PARTNERSHIP WITH STRONG LOCAL DISTRIBUTORS

BIOGAIABRAND

SALES THROUGHPHARMACIES

DIETARYSUPPLEMENT

BioGaia’s partner network

Protectis Gastrus ProdentisProtectis

BioGaia brand

• Branding for Health professionals

• Sold in 70 countries

• 69% of sales of finished consumer products (drops, digestive health tablets, oral health tablets, oral rehydration solution) were sold under the BioGaia brand, including co-branding, in 2017

• Build value, less dependence on patents

BioGaia’s Intellectual Property

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440 issued

patents in 32 families

70Internet-domains

Trademarks in

66countries + EU

Clinical trials supporting the use of BioGaia probiotics

184clinical studies have been carried out to date, including 12 in 2017. Results have been published in 159 articles in scientific journals and 14 doctorial theses (March 2018).

15500individuals of all ages have taken part inclinical studies with BioGaia’s humanstrains of Lactobacillus reuteri

Clinical trials with BioGaia Probiotics in different age groups

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184 completed clinical trials (50% children) in 15,500 individuals (68% children)

Updated March 2018

Preterms16 studies in

2 821 subjects

Infants (0-12 mo*)32 studies in

3 109 subjects

Children (13-36 mo)17 studies in

2 039 subjects

Children (3-18 y) 31 studies in

2 786 subjects

Adults (>18 y)88 studies in

4 521 subjects

BioGaia probiotics and indications

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HP-infection

Eradication treatment associated side-effects

Functional gastrointestinal disorders

Colic

Regurgitation

Constipation

Functional abdominal pain

Acute gastroenteritis

Support of gastrointestinal health

Antibiotic-associated side-effects

Gingivitis

Periodontitis

Protectis

Protectis

Gastrus

Prodentis

THE BIOGAIA GROUP

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BioGaia GroupTHE MICROBIOME PARTNER

BioGaia Group

BioGaia Biologics Inc.

BioGaia Japan Inc.

BioGaiaPharma AB

BioGaiaProduction AB

CapAble AB MetaboGen AB

BioGaia AB

• BioGaia Pharma AB is a subsidiary to BioGaia AB applying 25 years of probiotic experience to the research and development of new microbial therapeutic platforms.

• Through an established network of research institutions and companies, BioGaia Pharma’s mission is to match early research on candidates from the microbiome with unmet medical needs to develop drug platforms.

• Formed: June 2017• Location: Stockholm, Sweden• www.biogaiapharma.com

• Areas of focus: infectious diseases; inflammatory and gastrointestinal disorders

Development of next generation probiotics• MetaboGen works to develop products from novel bacterial strains, targeted for precise

indications and derived from the human gut microbiome• Products may be food supplements, or drugs, depending on the indication and the

preference of future partners• MetaboGen provides BioGaia with access to front-line development of next generation

microbial products, including regulatory development in this emerging field

Fredrik BäckhedMetabolic diseaseR&D

Jens NielsenSystems Biology R&D

FULL METAGENOME ANALYSIS

STRAIN IDENTIFICATION

DISCOVERY, FINDING FUNCTIONAL RELATIONSHIPS

CLINICAL TRIALREGULATORY WORK

MARKETING

PRODUCTDEVELOPMENT

Performed in MetaboGen, includingunique technology for producing products of anaerobic strains Together with partners

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• Production of BioGaia drops, easydropper, MiniPack and samples• GMP pharma certified• Product development• Laboratory

BioGaia Production BioGaia ProductionGMP certified

• Providing innovative packaging solutions allowing the development of new unique beverages

• Exclusive LifeTop™ Cap and LifeTop™ Straw supplier • www.lifetop.eu

LifeTop™ Cap LifeTop™ Straw

A Foundation against Antibiotic Resistance

A BioGaia CSR initiative that supports research and education within the area of antibiotic resistance by:Giving financial support to research and education that helps to prevent infections which reduces the use of antibiotics and the risk of antibiotic resistance. Activities• Twitter account (@ResResistance)• Monthly newsletter – Resist the resistance• Meetings with companies, organizations,

politicians to influence decision makers• Articles in regional newspapers and appearances

by BioGaia representatives in media

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MARKET AND COMPETITORS

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Our Market: Global probiotic supplement market 2015 ($ 3.8 billion)

1,9

1,2

0,6

0,1

America EU Asia Pacific Rest of world

International Probiotics Association 2015, Euromonitor International 2015

Our Market: Global probiotic supplement sales (Sales 2015 projected to 2020)

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2,6

3,8

5,4

0

1

2

3

4

5

6

2010 2015 2020

Sales ($ in billion)

From 2015 to 2020, CAGR of 7,4% assumed according report from Global Market Insight

International Probiotics Association 2013 & 2015, Global Market Insights 2016

What defines a probiotic supplement leader?

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R&D Fermen-tation

Manu-facturing

B2B marketing

Brand owner

B2C marketing

Strong IP

High quality & competitively priced culture

Innovative dosage formats

Consumer and HCP

loyaltyDistribution channels

• BioGaia IP, R&D and Product Development have enabled development of the BioGaia pediatric brand with unrivaled global distribution channels

• BioGaia has decided not have in-house fermentation manufacturing

• BioGaia has focused less on B2C marketing

R&D Fermen-tation

Manu-facturing

B2B marketing

Brand owner

B2C marketing

The BioGaia benchmark

• Companies developing, producing, and selling probiotics (Chr. Hansen)

• Well studied probiotic strains (L.GG from Valio)

• Non probiotic products / drugs (Imodium, Simethicone)

• Probiotic products with strong brands (Enterogermina)

• Pharma companies (Sanofi)

• Functional Food (ProViva)

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BioGaia Competitors

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Probiotic bacteria Car

Group Lactic acid bacteria German car

Genus Lactobacillus Volkswagen

Species Lactobacillus reuteri VW Golf

Strain L. reuteri Protectis VW Golf 2.0 Turbo

VW Golf I and the VW Golf VI GTI, similar cars, but you do not expect the same outputTry convincing your teenage daughter that an

iPhone 3 is just as good as an iPhone 6

Different breeds have different characteristics and are suitable for different tasks

Importance of strain specificity

MAJOR SHAREHOLDERS AND BOARD OF

DIRECTORS

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Major Shareholders 30 September, 2018 (source: Euroclear)

Total number of shareholders 30 September 2018: 9,825Foreign owners: 49% of capital (35% of votes)

A shares B sharesShare

capitalNo. of votes Capital Votes

000's 000's SEK 000's 000's % %1 Annwall & Rothschild Inv. AB 741 509 1,250 7,916 7.2% 33.0%2 Swedbank Robur fonder 1,632 1,632 1,632 9.4% 6.8%3 Fjärde AP-fonden 1,316 1,316 1,316 7.6% 5.5%4 Öhman Bank S.A 1,177 1,177 1,177 6.8% 4.9%5 State Street Bank & Trust co 742 742 742 4.3% 3.1%6 David Dangoor 519 519 519 3.0% 2.2%7 BNY Mellon SA/NV 490 490 490 2.8% 2.0%8 Banque Pictet &CiE 459 459 459 2.6% 1.9%9 SSB and Trust company, Boston 413 413 413 2.4% 1.7%

10 State Street Bank & Trust com., Boston 342 342 342 2.0% 1.4%Other shareholders 8,997 8,997 8,997 51.9% 37.5%

Total: 741 16,596 17,336 24,002 100% 100%

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David Dangoor

Inger HolmströmPeter ElvingIsabelle

DucellierChairman

Peter Rothschild

Brit StakstonEwa Björling

Anthon Jahreskog

Board of Directors (from 25 April 2018)

SALES AND PROFIT 5 YEARS DEVELOPMENT

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0

100

200

300

400

500

600

700

2013 2014*) 2015 2016 2017

Sales – 5 years development

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9%22%

25%

15%

Average growth: 16%

11%

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Sales, Operating expenses and Profit per year (MSEK)

*) Excluding license revenue Nestlé Infant Formula

0

100

200

300

400

500

600

700

2013 2014*) 2015 2016 2017

Total sales

Gross profit

Operating expenses (costof goods excluded)

Operating result

Profit before tax

Q3 2018

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• Sales up with 18% (excluding currency effects 10%)

• Good sales growth in Pediatrics segment

• Decrease in Adult segment (excluding currency effects) related to Protectis tablets

• Good sales growth for BioGaia Protectis drops, and also good growth for BioGaia Prodentis lozenges

• Good growth in all three regions

• Continued investments in marketing activities, staff, research and clinical studies

• Royalty from Nestlé regarding GUM are estimated to decrease by SEK 40 million in 2019 compared to 2018

Quarter 3 2018 – Executive Summary

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• BioGaia increases further in MetaboGen to 92%

• Launch of BioGaia Protectis tablets in Australia and BioGaia Gastrus tablets in Poland and Hungary

Key events after the end of the quarter

• MetaboGen reaches development goal – first productready for safety study

Quarter 3 2018 – Key events

Sales per segment (MSEK)

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1) Excluding currency effects

Q3 Q3 Change Change Roll 12 Q3Roll 12 Q3 Change Change2018 2017 % % 1) 2018 2017 % % 1)

Pediatrics 138 111 24% 15% 577 473 22% 20%

Adult health 36 36 1% -7% 124 101 22% 21%

Other 0 1 -58% -58% 2 9 -82% -82%

Total sales 175 148 18% 10% 702 584 20% 19%

Sales per geographical market (MSEK)

3535

22%

Q3 Q3 Change 12 months 12 months Change

2018 2017 % Q3 2018 q32017 %

EMEA 97 86 13% 434 371 17%

Asia Pacific 36 23 61% 119 74 62%

Americas 41 39 6% 149 138 8%

175 148 18% 702 584 20%

Rolling 12 months:

EMEA 62% (63%)

Asia Pacif ic 17% (13)

Americas 21% (24)

EBIT (MSEK) and EBIT margin

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*) Excluding revaluation of share in associates 7,0 (0) MSEK

Q3 Q3 Change Roll12 Q3 Roll12 Q3 Change2018 2017 % 2018 2017 %

EBIT *) 66 54 23% 264 218 21%EBIT Margin 38% 36% 38% 37%Profit after tax 51 42 22% 206 179 15%EPS 2.97 2.43 22% 11.86 10.34 15%

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• Continued growth of existing products

• New products such as Osteoporosis

• Continued growth in Americas and Asia Pacific

• Integration of MetaboGen

Present focus

www.biogaia.com