ArcticZymes Technologies — Investor Presentation 2021

Aug 19, 2021

Q2 2021

Agenda

Highlights - Q2 2021

Business Update

Financials

Outlook 2021

Highlights

Highlights Q2 2021 Volatility in sales due to changing coronavirus environment

Sales revenue performance 21.4 MNOK sales Milestone achieved sales revenues for last 12 months >100 MNOK

Innovation review - Invest and expand activities in Therapeutics

Profitability continues 6.0 MNOK EBITDA New product Launched SAN HQ 2.0

Business Update

Business Updates

Commercial Segment Sales

Therapeutics

• ✓ 26% quarterly reduction compared to Q2 2020
• ✓ 40% contribution to total Q2 sales
• ✓ Slow down due to several CMO´s prioritising Coronavirus vaccine manufacturing
• ✓ Several new SAN opportunities with new customers
• ✓ Growing interest for our enzymes in cell therapy applications

Research & Diagnostics

• ✓ 41% quarterly reduction compared to Q2 2020
• ✓ Research: 20% contribution to total Q2 sales
• ✓ Diagnostics: 40% contribution to total Q2 sales
• ✓ Lower sales were expected following the extraordinary spike in Q1 2021
• ✓ Q2´s performance confirms research sales have reestablished to pre-pandemic levels

Business Updates Coronavirus related sales

• 21% contribution of total Q2 sales
• Q2 sales were expected to be lower than the extraordinary performances achieved during Q1
• Majority of sales continues to be recurring business with several main customers
• Competitions in Asia between several customers
• Coronavirus test related sales expect demand to level off over next 12 months
• Vaccine related sales are expected to increase

Business Update

Innovation & Operations

• Salt Active Nuclease HQ 2.0 (SAN HQ 2.0) launched
• Represents 2nd generation of the enzyme
• Optimised for wider compatibility with downstream biomanufacturing processes
• Increases commercial reach within viral vector market and utility in recombinant protein production
• Innovation pipeline is progressing with other products anticipated for launch in 2021
• M-SAN ELISA kit, Taq DNA polymerase, reverse transcriptase, and other products

Two customers Audits

Successfully achieved/retained critical supplier status

Business Update Innovation Review

Molecular research and diagnostics

Efforts are well underway to build a complete offering via organic and inorganic growth initiatives

Therapeutics

• Current product offering and innovation efforts have focused on expanding SAN product line
• AZT plans to extend innovations beyond SAN products
• The company will integrate into its organic and inorganic grow plans enzymes that support:
• DNA/RNA therapeutics
• Gene editing technologies
• Other cell and gene therapy applications
• AZT has developed the required cGMP capabilities and is well positioned to leverage the great market opportunity

Financials

the pandemic created its foothold

difference

quarter last year

• Therapeutics segment (SAN) decline of 3.0 MNOK: 8.4 MNOK (11.3) or decrease of 26%
• On same levels as last 4 quarters
• Research & Diagnostics decrease of 41% from 22.1 MNOK to 13.1 MNOK

COVID-19 sales is primary driver of

Inventory was stocked up in Q2 2020 when

ArcticZymes Sales Q2 2021

On same level as 4 of last 6 quarters

Sales decline of 36% compared to same

Sales per segment

Amounts in NOK 1.000'

ArcticZymes Sales Q2 2021

Covid-19 impact is estimated at 21%of quarterly sales

Estimated Coronavirus related sales

Amounts in NOK 1.000'

12 Month rolling average quarterly sales

Minor change in underlying sales development

ArcticZymes Technologies

Some headwind after a strong Q1

• 36% reduction in sales (MNOK 21.4 vs 33.4)
• EBITDA reduced by 16.5 MNOK (MNOK 6.0 vs 22.5)
• Expenses increased by 5.7 MNOK
• Increase in personnel as we investing in organic growth
• 4.2 MNOK in employer national insurance contribution

Cash Flow

Continous to be positive

Cash position

Outlook

Outlook 2021 Financial goals

• Previous financial guidance given Dec 2019 with goal to reach 100 MNOK revenues by 2023
• Milestone achieved

• 100 MNOK in revenues for the last 12-months on a quarterly rolling basis in Q1 and Q2

• Future expectations
• Maintain the last 12-month revenues above 100 MNOK on a rolling quarterly basis
• Fluctuations will be unavoidable
• Overall revenues will grow by leveraging inherent momentum within the business
• Annual revenue goal for 2021 is 120 MNOK

Quarterly Rolling 12 Month Sales

Thank you

Q&A Session