ArcticZymes Technologies — Investor Presentation 2023

May 4, 2023

Q1 2023

Agenda

Highlights – Q1 2023

Business Update

Financials

Summary

Highlights Q1 2023

Business update

CEO Search Process

• CEO resigned March 2023. Effective date Sept. 30th, 2023
• Coulter Partners hired to search
• Significant interest in position
• Good candidates are in high demand
• Location in Tromso is main concern

• Kick-off client meeting
• Create Job Specification
• Research development strategy
• Define KSCs and Key Competencies
• Updates to be agreed

Research

• Target company identification
• Target candidate identification
• Market knowledge

• Prospective profiles /

  • benchmarking

• Approach and contact sources

• Approach prospective candidates

Contact

• Exchange
  • information (Job Specification and CVs)

Screen

• In-depth telephone screening
• Assess for suitability and motivation
• Utilise CP screening tool to rank candidates against criteria and each other

Assess

• CP interviews
• Candidate assessment

Present

• Presentation of candidates
• Client candidate interviews
• Client feedback
• Psychometric assessments

Complete

• Successful candidate ID
• Final referencing
• Offer negotiation
• Successful candidate monitoring
• Client and candidate followup
• 360° referencing

Newly launched product & pending products

B2B market version existing ArcticZymes Proteinase, with expanded E.g., Quality Statements for endotoxins, bioburden and 'animal origin

Product positioning: gentle proteinase to facilitate handling whilst

Next product launches. Scheduled for later this year

New patent application

RNA therapeutics

«New nuclease enzyme composition and method-of-use in the processing & analysis of RNA for therapeutic purposes»

• Discovery phase project for new sequence specific RNA endonuclease
• |Active test-site discussions with biomanufacturing customers (under MTA) on-going

The Drug Master File (DMF) for SAN HQ "GMP grade"

Priority one project first half of 2023

• A Drug Master File is a FDA submission document that typically contains detailed confidential information about the Chemistry, Manufacturing, and Controls (CMC) of a component of a drug product.
• DMF is not required by law or FDA regulation. It is used to provide information to the FDA without revealing trade secrets to the customer.
• DMF Type II: Drug substance, Drug Substance Intermediate, and Material Used in Their Preparation; or Drug Product.
• ArcticZymes AS is the DMF holder (Owner).
• External US Agent: Pharmalex.
• DMF to be submitted for SAN HQ "GMP grade" by the end of Q2 2023.

Post DMF Submission

Outline of Process

Recent Publication

Compelling Evidence to Support our Biopharma Product Range

The salt-tolerant endonucleases SAN and M-SAN were more efficient in the removal of chromatin compared with the non-salt-tolerant endonucleases Benzonase® and DENARASE®.

"Many researchers and bioprocess engineers are not aware that host cell DNA is present in the form of chromatin associated with histones. In the presence of salt, chromatin opens and becomes better accessible for a nuclease. Therefore, it is obvious for me that a salt-tolerant nuclease does a much better job in digesting DNA."

Professor Alois Jungbauer, University of Natural Resources and Life Sciences in Vienna

University College London Poster M-SAN HQ for purification of Lentiviruses

M-SAN HQ was benchmarked against Benzonase

for removal of host-cell DNA from Lentiviruses intended for CAR-T based cell therapy.

M-SAN HQ was preferred due to:

• Saves cost: >4-fold better DNA removal per unit
• Saves time: Faster digestion of DNA
• Purer product: Better DNA removal in size-filtration
• Higher potency: Less aggregates likely

SAN GMP – pre-launch data

Benchmarking

	SAN GMP	Benzonase	Denarase
Salt tolerance	✓		
ISO13485	✓	✓	✓
Scale	✓	✓	✓
ELISA kit	✓	✓	✓
GMP grade/DMF	✓	✓	✓

SAN GMP is the ultimate solution for the efficient removal of nucleic acids in manufacturing and bioprocessing workflows

Sales & Marketing: Key areas to improve in 2023

Commercial Excellence

• Execute price increase of 8.5% from January 1, 2023
• Execute Shipping & Handling fee structure from Oct. 1, 2022
• Utilizing analytics in Power BI
• Drive Opportunity Management leveraging CRM
• Accelerate sales cycle & improve conversion rate
• Use regulatory documentation (DMF) as competitive advantage
• Continue to build & invest into a high performing team

Demand Generation

• Laser sharp focus on generating new business with Key Accounts
• Aggressively take share in both, Biomanufacturing and Molecular Tools
• Update & leverage digital capabilities to create leads
• Attend selective trade shows to create awareness and leads
• Optimize product launch strategy and execution
• Capitalize on Asian opportunity
• Explore new, adjacent markets
• Hire additional resource for North America

Collaboration

• Closer collaboration between Market Development Managers and R&D community
• Market Development Managers key drivers in new product launch initiatives
• Product ideation and development with KOLs
• Oslo lab to improve and create content around workflows and applications

Tapping into the Chinese growth opportunity

Through Nordic collaboration

CAGR for Gene Therapy in China

28.6% - 33.8%

Over next 6 years, reaching \$1.9 to \$3.3B*

"Driving Growth Together in China"

Sales per area

Commercial

• ✓ Quarterly sales 16.4 MNOK
• ✓ Accounts for 52% of total Q1 sales
• ✓ Research and Diagnostics contribution to Q1 sales were 26% and 26%, respectively
• ✓ Research large orders from key customers after slow end to 20222
• ✓ Diagnostics "no" coronavirus LTM

Sales Commercial

Covid related sales

• ✓ 0 MNOK in Covid related sales for Q1
• ✓ Q1 2022 had 14 MNOK
• ✓ Headwind for sale of COD Ung in Q1 (as expected and announced)
• ✓ Expect to achieve only marginal sales from Coronavirus⁰

Estimated Coronavirus related sales

Sales per area

Commercial

Biomanufacturing

• ✓ Quarterly sales 14.9 MNOK (21% decline)
• ✓ Continuous positive trend we've seen last years
• ✓ Accounts for 48% of total Q1 sales
• ✓ Drug Master File (DMF) submission for SAN HQ to the U.S. FDA is "all hands on deck"

Sales per area

12 month rolling average quarterly sales

Expect growth to pick up again….

• See signs of market normalising
  • Number of orders increased by 3% to 408
  • 28 new customers in Q1
• Nothing fundamentally has changed
  • Growing markets
  • Attractive and novel products
• …but there is still uncertainty on short term customer behaviour
  • Inflation
  • Macro economic climate
  • Financing cost ⁰

Business Updates

Commercial

Geographical Sales Contribution

2021	Americas	EMEA	APAC
	39 %	48 %	13 %
2022	Americas	EMEA	APAC
	44 %	45 %	11 %
Q1	Americas	EMEA	AP.
2023	52 %	44 %	4 %

Currency impact

Weak Norwegian Krone

• Majority of revenues are in foreign currency
  • 83% in USD and 17% in EURO for Q1
  • 68% in USD and 31% in EURO for 2022
• Currency effect on P&L
  • Finance +0.6 MNOK in Q1
  • Other operating expenses reduced by 1.0 MNOK Q1
• With constant currency est. 3.8 MNOK positive impact on underlying sales in Q1

USDNOK

Expenses and profitability

Organisation

Productive and efficient

• Ambition and strategy has been to grow company organically
• 0% increase in employees in Q1
• 61 employees per 31.03.2023

Profitability and expenses

Looking at improved profitability

Sales & EBITDA

EBITDA

• Q1 MNOK 6.1 vs 27.9 (13.9 Covid adjusted)
• Expenses increased by 3.7 MNOK in Q1
  • Personnel, consumables and IPR
• Full year expenses: 105 MNOK (2022: 91 MNOK)
  • Personnel 75 MNOK (2022: 59 MNOK)
  • Other operating exp. <32 MNOK (2022: 32 MNOK)
• MNOK 2.5 per employee in revenues should be within reach

Cash flow

- 11.7 MNOK in cash flow for Q1

Outlook

Outlook 2023

• Committed to achieve its strategic goals through organic and inorganic growth.
• Fundamental business remains strong and therefore we expect annual sales to grow from 2022 to 2023.
• Capitalise on organic investments carried out in 2022 through productive organisation while having an opportunistic approach to inorganic growth.
• Aim to launch new products throughout the year.
• Generate traction and sales in China through collaboration with Genovis

Thank you

Q&A Session