ArcticZymes Technologies — Investor Presentation 2020

Sep 2, 2020

ArcticZymes Technologies

Shaped by the Arctic

Jethro Holter, CEO 2 nd September 2020

Disclaimer

This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of the Company or assumptions based on information currently available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. These forward-looking information and statements can generally be identified by the fact that they do not relate only to historical or current facts.

Forward-looking statements sometimes use terminology such as "targets", "believes", "expects", "aims", "assumes", "intends", "plans", "seeks", "will", "may", "anticipates", "would", "could", "continues", "estimate", "milestone or other words of similar meaning and similar expressions or the negatives thereof. By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this presentation. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition or results of operations could differ materially from that or those described herein as anticipated, believed, estimated or expected.

Any forward-looking information or statements in this presentation speak only as at the date of this presentation. Except as required by the Oslo Stock Exchange rules or applicable law, the Company does not intend, and expressly disclaims any obligation or undertaking, to publicly update, correct or revise any of the information included in this presentation, including forward-looking information and statements, whether to reflect changes in the Company's expectations with regard thereto or as a result of new information, future events, changes in conditions or circumstances or otherwise on which any statement in this presentation is based. Given the aforementioned uncertainties, prospective investors are cautioned not to place undue reliance on any of these forwardlooking statements.

Agenda

Business Model

Markets & Customers

Business Structure

Financials

Growth Strategy

6 Summary

Business Model

Specialist supplier of best-in-class novel enzymes

Our Novel Enzyme Products

Different ways in which enzyme can manipulate DNA, for example:

Salt Active Nuclease

Cuts up and destroys DNA

Joins DNA together

Proteinase

Digests cells to release DNA

Markets & customers

Target Markets & Customers

Size and growth potential

[Source: internal data and various marketing reports]

Therapeutics Gene therapy & DNA vaccine manufacturers

Molecular Research Research kit manufacturers

Molecular Diagnostics Commercial diagnostic test developers

Business Value Proposition

A reliable supplier our commercial partners trust

• Robust

Business Structure

Business Structure

ArcticZymes AS

Core business

Develops, manufactures and commercializes novel enzymes for use in molecular research, In Vitro Diagnostics (IVD) and therapeutics

Biotec BetaGlucan AS

Non-core business

Markets immunomodulating beta-glucan products, serving several market areas

ArcticZymes

Profitable & fast growing

• EBITDA positive since 2015
• Achieved annual sales growth 23% CAGR (2015-2019)
• Addressing three growth market segments:
  • Molecular research: consistent growth, addressing DNA sequencing, gene synthesis & PCR applications
  • Molecular diagnostics: growing, additional upsides relating to incorporation of enzymes into COVID-19 diagnostic tests
  • Therapeutics: fastest growing segment, recent expansion into use of enzymes for COVID-19 vaccine development
• Growing customer base with >300 active customers
• Global commercial presence
• Expanding and innovative product portfolio
• Scalable production capacity

Biotec BetaGlucans

Cash generative

• Immune-modulating beta-glucans products derived from yeast cell walls
• Segments
  • M-Gard® consumer & M-Glucan® animal health
    • Cash generative, albeit reliant on few, large customers
    • First half uplift in sales in consumer health as a result of Covid-19 and demand to improve immune system
  • SBG® adjuvant
    • Focus is on extracting its commercial value through licensing
  • Woulgan® wound care product
• Discontinued and business is positioned for divestment ¹³

Financials

Q2 Financial Highlights

Best quarterly performance to date

• Q2 sales up 163% NOK 44.3 m (2019: NOK 16.9m)
• EBITDA of NOK 27.2 m (2019: NOK -0.5m)
• Cash at period end: NOK 56.2 m (2019: NOK 21.4m)
• EPS of NOK 0.53 (2019: NOK -0.04)

Commercial drivers

• Therapeutics (SAN) segment increase in customers and sales > NOK 11m
• COVID-19 related business use of enzymes in diagnostic tests and vaccines > NOK 11m in Q2

Strong underlying growth of sales in key markets (excluding upsides relating to COVID-19 tests)

Growth Strategy

Growth Strategy

European's leading one-stop-shop enzyme supplier

Simplified Workflow

• Achieved through building a complete portfolio of enzymes to support any workflow:
  • Broader range: all key enzymes classes
  • Deeper offering: different variants in each enzyme class
• Adopting a forward leaning approach via organic and inorganic growth initiatives

Summary

Summary

High Growth Business

About leverage existing and new long-term B2B relationships

Accelerate Expansion

Build Long-Term Shareholder Value

Broaden product range:

• Bolt and build via M&A
• Ramp up innovation pipeline & operations

Driven by sustainable profitablity and topline growth

Thank you

Q&A Session