ArcticZymes Technologies — Investor Presentation 2021

Oct 28, 2021

Q3 2021

Agenda

Highlights - Q3 2021

Business Update

Financials

Outlook 2021

Highlights

Highlights Q3 2021 Business is returning to normal. AZT is back on the road

Quarterly noncoronavirus -related sale 89% contribution

2 nd best quarter for non-coronavirus related sales 22.7 MNOK

Best quarterly sales performance for Therapeutics 12.6 MNOK

Advance prototypes released for customer testing 4 new enzymes

Executing on strategic growth initiatives Intensifying M&A process

Business Update

Business Updates

Commercial Segment Sales

• ✓ Highest quarterly sales performance 12.6 MNOK
• ✓ 49% contribution to total Q3 sales
• ✓ Customer activities mostly returned to normal
• ✓ Majority of revenue are achieved through CDMOs
• ✓ Business to large pharma companies is direct and indirect. Serving 7+ large pharma companies
• ✓ Transition segment name to Biomanufacturing

• ✓ Research and Diagnostics contribution to Q3 sales were 24% and 27%, respectively
• ✓ Third consecutive quarter research sales reestablished to normal level
• ✓ Diagnostic sales impacted by lower demand for Cod UNG for coronavirus testing
• ✓ Customer engagement has shifted away from coronavirus and back to normal activities

Business Updates Coronavirus-related sales

• 11% contribution of total Q3 sales
• Decline in coronavirus-related sales is directly linked to fall in demand for coronavirus testing
• Expect recurring business to continue but with progressively smaller orders
• Still attracting new opportunities multiplex testing
• Vaccine related sales are expected to increase but they will take time before having a noticeable impact to revenues

Business Update

Innovations

• Four advanced prototype enzymes available to customers prior to launch in Q4 2021/Q1 2022
  • Dual Splint Ligase
  • Heat-tolerant Duplex-Specific Nuclease (new DNase)
  • High quality MMLV Reverse Transcriptase
  • High Concentration IsoPolTM BST⁺ DNA polymerase
• M-SAN ELISA pilot production successful. Launching in Q4
• Taq DNA polymerase and novel reverse transcripases are taking longer to optimise their manufacturing process. Expect launch first half of 2022
• SAN HQ 2.0 ELISA development initiated
• Upscaling projects for M-SAN and Proteinase are progressing

ArcticZymes scientist purifying an enzyme

Business Update

Operations

• New production facilities progressing according to plan
• Infrastructure changes completed
• Equipment is being unpacked, undergoing qualification and verification in accordance with ISO13485 requirements and cGMP guidelines
• Expect relocation to new facilities to be accomplished and fully operational by end of 2021

Installation of new chromatography systems

Business Updates

Strategic Growth Initiatives

• AZT is committed to execute on its strategic growth initiatives
• Organic growth
  • Establishing a laboratory in Oslo focusing on applications development
  • Rationale: Oslo has a talent pool of commercially experienced application scientists
  • Expect to be operational within Q2 2022
• Inorganic growth
  • Intensified activities towards acquisitions
  • Re-established discussions with several earlier acquisition targets
  • Expanded search to identify new acquisitions targets
  • Engaged a specialised constancy to support search

Financials

ArcticZymes Sales Q3 2021

Therapeutics picking up speed

• Sales increase of 31% compared to same quarter last year
• Currency had negative impact on underlying sales growth
• Therapeutics segment (SAN):
  • 12.6 MNOK (10.2)
  • Increase of 24% (2.4 MNOK)
  • Higher than previous quarters
• Research & Diagnostics:
  • 13.2 MNOK (9.4 MNOK)
  • Increase of 41% (3.8 MNOK)
  • Underlying business drives the quarter

Sales per segment

ArcticZymes Sales Q3 2021

Covid-19 impact continues to slow down

Estimated Coronavirus related sales

Trend is positive for Q3 2021 12 Month rolling average quarterly sales

Profitability and expenses

Investments in organic growth influences our figures

Amounts in NOK 1.000'

• 31% increase in sales (MNOK 25.6 vs 19.5)
• EBITDA increased by 1.9 MNOK (MNOK 9.0 vs 7.1)
• Expenses increased by 3.3 MNOK
  • Increase in personnel as we invest in organic growth
  • Increased commercial activities and conference attendance
  • 0.5 MNOK in employer national insurance contribution

Cash Flow

9 MNOK invested in new premises

Cash position

Outlook

Outlook 2021 Financial guidance

• Last quarter provided guidance with an annual sales revenue target of 120 MNOK in 2021
  • AZT upholds this guidance
• Longer-term growth is expected due to:
  • Momentum mostly in the non-coronavirus-related business
  • Supported by a growing product portfolio and expanding customer base
• Future guidance will be provided for financial expectations for 2022 and longer-term during the beginning of next year

Quarterly Rolling 12 Month Sales

18

Thank you

Q&A Session