ArcticZymes Technologies — Earnings Release 2022

Oct 27, 2022

Q3 2022

Agenda

Highlights – Q3 2022

Business Update

Financials

Outlook 2022 and Beyond

Highlights

Highlights Q3 2022

Growth trend continues

Business Update

Business Updates

Commercial

• ✓ Quarterly sales 15.9 MNOK (26% growth)
• ✓ Accounts for 54% of total Q3 sales
• ✓ Upturn in sales following pandemic continues
• ✓ Leveraging sales in all geographical regions. Americas is the largest contributor (>75% in Q3)
• ✓ Sessional effect impacted European sales

• ✓ Drug Master File (DMF) for SAN HQ for submission to the U.S. FDA is progressing well

• ✓ Quarterly sales 13.4 MNOK (2% growth)

• ✓ Accounts for 46% of total Q3 sales
• ✓ Research and Diagnostics contribution to Q3 sales were 19% and 27%, respectively
• ✓ Research Seasonal dip in rSAP sales but strong dsDNase sales (67% contribution)
• ✓ Diagnostics Cod UNG sales remain lower due to market readjustment following Omicron outbreak

Business Updates

Commercial

Geographical Sales Contribution

2021	Americas	EMEA	APAC
	39 %	48 %	13 %
Q1	Americas	EMEA	APAC
2022	41 %	46 %	13 %
Q2	Americas	EMEA	AP.
2022	39 %	52 %	9 %
Q3	Americas	EMEA	APAC
2022	50 %	37 %	13 %

• Seasonal effects most prominent in the EMEA
• Extended customer holidays following the pandemic

Product portfolio and innovation pipeline

Bulk, OEM and customised – to meet customers needs

Business Updates

Strategic Growth Initiatives

• AZT remains committed to execute on its strategic growth initiatives
• Organic growth
• Ongoing recruitment drive to strengthen the organisation cross functionally
• Open-mindset with respect to location
• Inorganic growth
• Intensive activity towards M&A
• M&A process is being led by Alira Health
• Discussions with a highly focussed and limited group of international companies
• Announcement of a deal may extend into early 2023

Financials

Sales

Continues to grow

• Sales increase of 16 % compared to same quarter last year
• Achieved 29.3 MNOK (25.2 MNOK)
• Biomanufacturing (SAN)
• 15.9 MNOK (12.6 MNOK)
• Increase of 27% (+3.3 MNOK)
• Molecular Tools (Research & Diagnostics)
• 13.4 MNOK (13.2 MNOK)
• Increase of 1% (+0.2 MNOK)

Currency impact

Tailwinds in currency

• Majority of revenues are in foreign currency
• 73% in USD and 27% in EURO for Q3
• USD/Euro has strenghtened towards NOK last year positive effect on P&L
• Finance +0.2 MNOK in Q3
• Other operating expenses reduced by +1.3 MNOK due to currency in Q3
• With constant currency an estimated 2.8 MNOK positive impact on underlying sales in Q3 and NOK 6.0 MNOK YTD

12 month rolling average quarterly sales

On track to deliver on our promises

13

Profitability and expenses

Investments in organic growth influences our figures

Sales

• Q3 MNOK 29.3 vs. 25.2 (+16%)
• YTD MNOK 108.8 vs 87.5 (+21%)

EBITDA

• Q3 MNOK 2.8 vs 9.0 (-69%)
• YTD MNOK 40.2 vs 40.8 (-1%)
• Expenses increased by 9.8 MNOK in Q3
• Personnel, external support and consultancy increased
• Currency effects reduces other operating expenses by MNOK 1.3 in Q3

Cash flow

+8 MNOK in positive cash flow for Q3

Outlook

Outlook 2022 and Beyond

Remains mostly unchanged

The Company outlook for 2022

• Annual sales target of NOK 155 million
• Quarterly fluctuations will continue
• Lower contribution from coronavirus-related sales
• Expanded innovation activities into the Oslo region
• Further new product launches
• Continue to invest in talent acquisition to support short- and long-term growth
• M&A activities will be a priority and with a goal to announce a deal within 2022. May extend into early 2023

Longer-term outlook

The goal is to realise an annual sales potential of NOK 350 million by 2025 through organic growth

Annual Sale Target

Quarterly Rolling 12 Month Sales

Thank you

Q&A Session