ArcticZymes Technologies — Investor Presentation 2022

Aug 18, 2022

Q2 2022

Agenda

Highlights – Q2 2022

Business Update

Financials

Outlook 2022 and Beyond

Highlights

Highlights Q2 2022

Growth trend continues

Commercial

• ✓ Quarterly sales 14.8 MNOK (78% growth)
• ✓ Accounts for 49% of total Q2 sales
• ✓ Upturn in sales following pandemic continues
• ✓ Leveraging sales in all geographical regions. Americas being largest contributor
• ✓ Initiated the implementation of a DMF for SAN HQ for submission to the U.S. FDA

Molecular Tools (Research & Diagnostics)

• ✓ Quarterly sales 15.5 MNOK (18% growth)
• ✓ Accounts for 51% of total Q2 sales
• ✓ Research and Diagnostics contribution to Q2 sales were 33% and 18%, respectively
• ✓ Research rSAP main driver (60% contribution)
• ✓ Diagnostics Cod UNG sales drop due to supply chain readjustment following Omicron outbreak

Commercial

Geographical Sales Contribution

• China: Sales hampered by Coronavirus lockdowns and closure of borders to receive international shipments

Global Reach Strengthened

• Appointed Dirk Hahneiser as VP of Bus. Dev. & Marketing (pictured above)
  • Experience from Johnson & Johnson, Ecolab and Thermo Fisher Scientific
• Doubled the N. American commercial team by hiring a new Bus. Dev. Manager (Scott Frayo)

Innovations and Operations

Innovations

• ✓ Applications Lab in Oslo (ShareLab)
  • ✓ Successfully hired 2 applications scientist
  • ✓ Focus of demonstrating utilising of AZT´s enzymes in complete workflows
• ✓ 2022 product launches on track
• ✓ RNA therapeutic enzymes are progressing

• ✓ New production facility continues to increase capacity through the incremental recruitment
• ✓ Two customer cGMP audits
  • ✓ A top 10 international pharmaceutical company
  • ✓ A leading international viral vector CDMO

Strategic Growth Initiatives

AZT remains committed to execute on its strategic growth initiatives

Organic growth

• Ongoing recruitment drive to strengthen the organisation cross functionally continues
• Greater competences/support in quality, regulatory, project management, cGMP product development and commercialisation are demanded to leverage potential from biomanufacturing

Inorganic growth

• Intensive activity towards M&A
• Established a priority list of mutually interested targets which comprises earlier and newly identified targets
• Initial discussions are ongoing between AZT and interested targets

Financials

Sales

Currency impacts underlying growth positively

• Sales increase of 43 % compared to same quarter last year
  • Achieved 30.4 MNOK (21.3 MNOK)
• Currency had an estimated 2.5 MNOK positive impact on underlying sales growth in Q2 and NOK 3.1 MNOK YTD
• Biomanufacturing (SAN)
  • 14.8 MNOK (8.4 MNOK)
  • Increase of 78% (+6.4 MNOK)
• Molecular Tools (Research & Diagnostics)
  • 15.5 MNOK (13.1 MNOK)
  • Increase of 18% (+2.4 MNOK)

12 month rolling average quarterly sales

Growth trend continues

*not reporting on Covid-19 sales separately as of Q1 2022

12

Profitability and expenses

Investments in organic growth influences our figures

Sales

• Q2 MNOK 30.4 vs. 21.3 (+43%)
• YTD MNOK 79.5 vs 62.2 (+28%)

EBITDA

• Q2 MNOK 9.5 vs 6.0 (+58%)
• YTD MNOK 37.4 vs 31.8 (+18%)
• Expenses increased by 4.5 MNOK in Q2
  • External support and consultancy increased
  • Currency effects reduces other operating expenses by MNOK 2.0 in Q2

Cash flow

+16 MNOK in positive cash flow for Q2

Outlook

Outlook 2022 and Beyond

Remains unchanged

The Company outlook for 2022

• Annual sales target of NOK 155 million
• Quarterly fluctuations will continue
• Lower contribution from coronavirus-related sales
• Expanded innovation activities into the Oslo region
• Further new product launches and upscaling
• Continue to invest in talent acquisition to support short- and long-term organic growth
• M&A activities will be a priority and with a goal to announce a deal within 2022
• Longer-term outlook
  • The goal is to realise an annual sales potential of NOK 350 million by 2025 through organic growth

Annual Sale Target

Thank you

Q&A Session