Q4 2020

Agenda

Highlights Q4 2020

ArcticZymes Update

BetaGlucans Divestment

Q4 Financials

Outlook 2021 and Beyond

Highlights

Highlights Q4 2020 Company has undergone a significant transformation

Achieved 2nd best quarterly performance – 22.1 MNOK sales*

Therapeutics and molecular segments continue to grow

ArcticZymes Technologies becomes a pure enzymes company

Achieved another profitable quarter – 6.8 MNOK EBITDA* Biotec BetaGlucans successfully divested

4 *All key financial figures are excluding discontinued operations (Biotec BetaGlucans)

Deliverables 2020

All about value creation

Achieved profitability: 45 MNOK EBITDA

Sale growth achieved: 93 MNOK

Rebranded company to ArcticZymes Technologies

Became a pure enzyme company by divesting BBG

Created shareholder value through the share

Merger & acquisition – not achieved

ArcticZymes Update

ArcticZymes Updates

Commercial Segment Sales

Therapeutics

✓ Strong quarterly growth
✓ 41% contribution to total Q4 sales
✓ Several customers: purchased >5 MNOK of products during 2020
✓ ReiThera is progressing well
✓ Top tier pharma company starts purchasing SAN-HQ

Research & Diagnostics

✓ Marginal quarterly growth
✓ 59% contribution to total Q4 sales
✓ Molecular diagnostics (MDx) sales is main driver
✓ Molecular research sales are slow due to lockdowns
✓ Sales growth is robust served by 200+ customers

ArcticZymes Updates Coronavirus related sales

Integral part of underlying business
Coronavirus related sales higher for Q4 vs. Q3
32% contribution of total Q4 sales
Coronavirus related sales breakdown:
- 86% associates with MDx
- 14% associates with Therapeutics
Quarterly fluctuations to continue

ArcticZymes Update Innovation Pipeline

Salt Active Nuclease Upscaling*

First medium-scale pilot production batch was successful
Working on first large-scale pilot batch
Large scale SAN-HQ product commercially available within H1 2021
Anticipate several new products will be ready to launch in 2021
- M-SAN ELISA kit: Similar to SAN-HQ, the M-SAN ELISA kit will support sales our M-SAN enzyme to the therapeutic segment
- Taq Polymerase: 1 st thermostable polymerase optimised for robust utility in viral based PCR tests and compatible with our other enzymes*
- Reverse Transcriptase: Similar to Taq Polymerase it will be optimised for use in viral diagnostics assays for both PCR and LAMP based workflows*
- Other SAN products: capture more of the value chain beyond gene therapy and vaccine production
- Other enzymes: several customer specific innovation projects
Longer-term innovations are making progress as well

*Above are partially funded by Innovation Norway grants

ArcticZymes Update Strategic Growth Initiatives

Organic Growth

Represents main and immediate focus
Key activity for 2021 will be to complete the infrastructure expansion of R&D and operations
The project is well underway and progressing as planned
Continue to invest in new R&D and operational personnel
All about investing to leverage future growth

Inorganic Growth

M&A activities have been scaled back temporarily
Allows team to focus on the ongoing organic growth expansion initiatives
Due to the coronavirus pandemic, the market environment at this time is far from ideal

BetaGlucans Divestment

Biotec BetaGlucans (BBG)

Divesture successfully closed

Entire BBG subsidiary divested to Lallemand Inc´s subsidiary, Danstar Ferment AG
Deal was closed on 31st December 2020
ArcticZymes Technologies will support Lallemand during 2021 in managing a smooth transition
BBG will gradually relocated to the Nordøya site
Supports our strategy to focus exclusively on its profitable enzyme business
ArcticZymes Technologies enters 2021 as a pure enzymes company

Q4 Financials

Positive development

Sales growth of 35% compared to same quarter last year
Therapeutics segment (SAN) continues to deliver strong sales: 9.0 MNOK (3.8)
- Underlying growth is strong
Research & Diagnostics increase of 4% from 12.6 MNOK to 13.1 MNOK
- Significant positive COVID-19 impact
- rSAP for research segment, negatively impacted by COVID-19

Sales per segment

ArcticZymes Sales Q4 2020

Covid-19 impact is estimated at 28%of annual sales

Estimated Covid-19 related sales