ArcticZymes Technologies — Investor Presentation 2019

Dec 10, 2019

Investors Update

10th December 2019

• Group's Strategic Goals & Objectives
• ArcticZymes Strategy
• BBG Strategy
• Outlook and Summary

Group's Strategic Goals & Objectives

ArcticZymes Strategy

BBG Strategy

No. 1 Strategic Goal: All About Profitability

Main Strategic Focus – ArcticZymes

How?

Why?

Financial Strategic Objectives

Short-term

Optimise Group to achieve profitability in 2020

Long-term

Cash position is self sustainable

Group's Strategic Goals & Objectives

ArcticZymes Strategy

BBG Strategy

ArcticZymes: Business Today

Presented at previous Capital Markets day's (Feb 2016 & Aug 2017)

What we promised & delivered

• • EBITDA positive since 2015
• • Achieved annual sales growth 19% CAGR
• • Grown business away from 1 main product & customer
• • Launched new innovation (doubled product portfolio)
• • Future innovations expanded beyond Tromsø borders

What we missed

• Did not achieve 50MNOK revenues in 2018. Why?
  • Unable to invest as planned due to Groups

Strategic Goal: One-Stop-Shop

European's leading one-stop-shop enzyme supplier

Achievable by

Drivers Behind Organic Growth

Sales

• More value to be extracted from existing products
• Drive sales growth through newly launched products

Accelerate Innovations

• Customer driven innovation
• Commercial new innovations from vast prototype library (Norway/EU)
• Fuel with more resources

Scaling Operations

• Scale to grow with customers
• Implemented 2 production lines
• Fuel with more resources and use of CMO's as needed

Inorganic Growth Strategy

Short term (2020-2022)

• Strengthens brand position as one-stopshop via deeper and broader offering
• Accelerate opportunities to grow sales
• Enhance operational and innovation capacity
• Achieve a central EU base

Status

• Expect 1st transaction in first half 2020
• Goal to complete 2-3 transactions

Long term (2023-2026)

• Our commercial customers want more than just enzymes
• Consider further transactions > companies with novel non-enzyme components

Group's Strategic Goals & Objectives

ArcticZymes Strategy

BBG Strategy

BBG Business Today & Future Directions

Woulgan

Why divest?
	What next?
Lack marketing power needed to make Woulgan economically viable Continues to burn cash	Sell off to new owner with the operational and marketing capabilities to make Woulgan a success	How?
		Hire an external business developer	Effect on Company?
		Timeframes: 6-9 months to identify a new owner and initiate negotiations	Woulgan R&D on hold Continue to support existing customers Structural reorganisation

Group's Strategic Goals & Objectives

ArcticZymes Strategy

BBG Strategy

Financial Outlook

No. 1 goal > drive whole business into profitability in 2020

AZ represents main strategic and high growth business

Remaining BBG business serves as source of cash while business remains profitable

Loss making Woulgan business will be divested

New strategic direction offers best possible situation for generating long-term shareholder value