ArcticZymes Technologies — Earnings Release 2021

Apr 22, 2021

Q1 2021

Agenda

Highlights - Q1 2021

Business Update

Financials

Outlook

Highlights

Highlights Q1 2021 Achieved an outstanding quarterly performance

Achieved best ever quarterly performance 40.4 MNOK sales

Quarterly growth in all market segments Successful upscaled the manufacturing process for SAN HQ by 100-fold

Profitability remains strong 25.8 MNOK EBITDA Molecular research sales have reestablishing to prepandemic levels

Business Update

Business Updates

Commercial Segment Sales

Therapeutics

• ✓ 36% quarterly growth compared to Q1 2020
• ✓ 25% contribution to total Q1 sales
• ✓ ReiThera has initiated phase 2/3 clinical trails
• ✓ cGMP audits from two large SAN customers

Research & Diagnostics

• ✓ 176% quarterly growth compared to Q1 2020
• ✓ 75% contribution to total Q4 sales
• ✓ Molecular diagnostic (MDx) sales is the main driver
• ✓ New supply agreement signed with an MDx company
• ✓ Molecular research sales have re-established to prepandemic levels but large fluctuations will remain

Business Updates Coronavirus related sales

• Majority of sales is recurring business rather than one off orders
• Established long-term busines with numerous companies
• 41% contribution of total Q1 sales
• Majority of sales is towards molecular diagnostic testing >90%
• Quarterly fluctuations to continue but to a lesser extent

Business Update

Innovation & Operations

Salt Active Nuclease (SAN) Upscaling

• Successfully upscaled the manufacturing process of the SAN HQ enzyme
• Achieved >100-fold increase in fermentation yield
• Commercially available to our therapeutic customers during Q2
• Serves customer requirements for larger quantities of enzyme from a single production batch
• Innovation pipeline is progressing for several products anticipated for launch in 2021
• M-SAN ELISA kit, Taq DNA polymerase, reverse transcriptase, new SAN products and other enzymes

AZT´s new production facility before renovation

Business Update

Strategic Growth Initiatives

• Main focus have been toward the infrastructure expansion of R&D and Operations
• Renovation work is underway to modify the infrastructure and install necessary utilities
• Once complete production and laboratory equipment can be moved in
• Progressing according to plan
• Continue to incrementally hire new personnel in Tromsø in order to support growth initiatives
• R&D, operational, QA/QC and customer support roles

Financials

ArcticZymes Sales Q1 2021

Growth continues to be strong

Sales growth of 119% compared to same quarter last year

• Therapeutics segment (SAN) growth: 10.2 MNOK (7.5) or increase of 36%
• On same levels as last 3 quarters
• Research & Diagnostics increase of 176% from 11.0 MNOK to 30.3 MNOK
• COVID-19 impact significant
• Strong sales within research and SAP

0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Therapeutics (SAN) Research and Diagnostics Amounts in NOK 1.000'

Sales per segment

ArcticZymes Sales Q1 2021

Covid-19 impact is estimated at 41%of quarterly sales

Estimated Covid-19 related sales

12 Month rolling average sales

Underlying growth continues across the business

ArcticZymes Technologies

Deliver beyond expectations

• 119% improvement in sales (MNOK 40.4 vs 18.5)
• 194% improvement in EBITDA (MNOK 25.8 vs 9.0)
• Expenses increased by 4.0 MNOK
• Increase in personnel as we investing in organic growth
• Increase in property, plant and equipment related expenses
• External support to drive growth initiatives

Cash Flow

Final settlement relating to divestment received on 31st March

Outlook

Outlook 2021 and Beyond

A new era as a pure enzymes company

New Innovations

Complete portfolio offering of molecular biology enzymes in the next 2-3 years

Thank you

Q&A Session

Annual General Meeting 20th May 2021