ArcticZymes Technologies — Investor Presentation 2024

Nov 6, 2024

A Platform for Long term Growth

Q3 2024

November 6, 2024 CEO Michael Akoh CFO Børge Sørvoll

Overview Overview

A Norwegian biotech with growth potential A Norwegian biotech with growth potential

A provider of novel enzymes for advanced therapies and molecular Targeting segments with considerable growth Worldclass Products

potential

Listed on the Norwegian Stock Exchange

• World class R&D team • Provide novel enzymes for advanced therapies and molecular diagnostics
• and strong manufacturing capabilities complying to both ISO13485 and GMP Margins above 90% across all products • Strong reputation in Molecular Tools and Bioprocessing segments.
  • Net Promoter Score = 84

diagnostics

No debt – 250 NMOK in Cash reserve

2

Customers are life science tools companies, CDMO, Pharma and World class products and reputation in Molecular Tools and Bioprocessing Segment & Customers

segments

US and Europe

• Targeting segments with high growth potential

biotech

55 employees, Headquartered in Tromsø

International management and Board

Recuring revenue streams – sticky business Sales of 119 MNOK (2023), positive cash flow and results • Customers are life science tools companies, CDMO, Pharma and Biotech

Talent & Culture

• Management team committed to creating a culture where exceptional innovation thrives
• World class R&D team
• Strong manufacturing capabilities complying to ISO13485 and GMP
• 53 employees, HQ in Tromsø
• Direct sales force in the • Direct sales in US & Europe

Strong Financials

• Margins > 90% all products
• Recurring revenue streams sticky business
• Sales of 119 MNOK (2023)
• No debt 240 MNOK in Cash reserve
• Listed on the Norwegian Stock Exchange

Agenda

Highlights, commercial transformation and priorities

Sales update

2

Biomanufacturing update and future portfolio

5

Financials

Q&A

Highlights Q3 2024

Achieved revenue 24.1 MNOK (31.2 MNOK) New VP of Sales Paul Blackburn onboard in September

Publication on ET-N1 in Nucleic Acids Research and acib Webinar

EBITDA Performance -2.3 MNOK (7.3 MNOK)

SAN OEM agreement and CDMO integration progressing according to plan

SAN White paper released confirming portfolio competitiveness

Building a Platform for Long-term Growth

Commercial Transformation

Increased investment in commercial transformation to drive growth in coming years

Commercial Transformation

The Board and management are aligned in accelerating ArcticZymes' commercial transformation, building on past successes to capture new market opportunities

Solution Provider

We are committed to build ArcticZymes' role as a solution provider, enhancing its ability to solve client challenges in molecular diagnostics, research, and biomanufacturing through a collaborative, customer-focused transformation

Strategic Investment

In a joint effort, the Board and management have approved investments to strengthen the commercial organisation, supporting ArcticZymes' goal to become a truly customer-centric organization

Incremental steps have been taken but we are accelerating initiatives

Strategic priorities

Building a platform for long term growth – the journey has started

Customer centric organisation

The commercial transformation journey

	What	Why	When
1	Balance between Internal and customer focused resources	Ensure a market and customer driven organisation	Q1 2024-
2	Strategic pipeline review and future portfolio road map	Align development portfolio with market needs	Q2/Q3 2024
3	GMP compliance and diversification into advanced therapies	SAN market penetration and portfolio diversification	Ongoing
4	Increase use of scientific marketing with R&D involvement	Sell scientist to scientist	Q2 2024 -
5	SAN OEM and CDMO partnerships	Increase market reach through external channels	Q3 2024 -
6	Sales organisation and lead generation investment	Accelerate growth with market relevant portfolio	Q4 2024 -

It is a journey but it has started and we are executing on key initiatives

Investment in commercial transformation

New website, webinars, whitepapers, talks, publications and collaborations

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New VP of Sales – Paul Blackburn

Driver of commercial transformation

• Joined: September 2024
• Qualifications: Ph.D. in Vaccine Development (University of Glasgow); Degree in Medical Microbiology (University of Edinburgh)
• Experience: Over 20 years in life sciences with a strong technical and commercial track record
• Leadership: Built and led successful teams at 10x Genomics, Thermo Fisher Scientific, Bio-Rad, and GE
• Initiatives: Conducted a comprehensive assessment of the sales team, structure, and processes
  • Focus Areas:
    • Team dynamics and capabilities
    • Optimizing ways of working
    • Becoming customer centric

Sales Update Q3 2024

Total Sales

Molecular tools down and upward trend for Biomanufacturing

Combined sales

• ✓ Quarterly sales of 23.3 MNOK (31.2 MNOK)
• ✓ Sales impacted by performance in Molecular tools segment
• ✓ 58% of sales coming from the USA, 41% EMEA and 1% APAC
  • ✓ Q3 2023: 43%, 56% and 1%, respectively

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Molecular Tools

• ✓ Weak quarter driven by absence of major order from key account
• ✓ Accounts for 44% of total Q3 sales

Sales per area

Commercial

✓ Expect organic growth opportunities, especially with its Endonuclease and Polymerase product offerings during 2025

Sales per area

Commercial

Biomanufacturing

• ✓ Quarterly sales 12.7 MNOK
• ✓ Positive trend during last 3 consecutive quarters in a challenging environment
• ✓ Accounts for 56% of total Q3 sales
• ✓ SAN HQ GMP continues to be picking up in sales
• ✓ High interest in segment also from competitors
• ✓ Increase in Unique customers in the segment for each Quarter this year compared to previous years indicating a growing customer base

Biomanufacturing Update

SAN market oveview

Intensified competition but SAN portfolio remains competitive

• Strong Interest: Significant interest in the segment, with competitors closely following ArcticZymes' advancements
• Published Insights: Released a whitepaper on Select Science titled "Efficient Chromatin Removal in Viral Vector Manufacturing Using Salt-Active Nucleases"
• Specialized Product Offerings:
  • M-SAN HQ: Optimized for physiological salt conditions, delivering faster digestion and cleaner viral vector products
  • SAN HQ GMP: Tailored for high-salt environments, supporting comprehensive viral vector production
• Positive CDMO Feedback: Strong reception from CDMOs with validation at ESGCT. Performance data presented reinforcing the impact of SAN in gene therapy processes

SAN OEM update

Proceeding according to plan

• Active Partner Engagement:
  • Ongoing discussions with multiple potential partners
• New Product Launch:
  • OEM agreement discussions for new SAN product, launching in December 2024
• Supply and Rebranding:
  • ArcticZymes to provide bulk material for repackaging and rebranding under partner's label
• Term Sheet Negotiations:
  • Progressing with one key partner
• Execution Timeline:
  • Term sheet expected to finalize by early Q1, contingent on successful negotiation
• Revenue Impact:
  • Anticipated contribution starting in Q2/Q3 2025

CDMO opportunities

Becoming the standard nuclease on a CDMO platform

• Trend in the CGT space a return to the CDMO model
• Trough a partnership with CDMOs we will expand our reach significantly into several projects at once
• M-SAN and SAN has been tested in an initial study with good data outcome at CDMO
• M-SAN enhances
  • Downstream recovery
  • Reduces DNA contamination
  • Minimizes vector aggregation, leading to cleaner, higher-quality lentiviral vectors
• Goal for CDMO is to start utilizing M-SAN for new projects next year on their platform

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The future portfolio - Diversification

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RNA based therapeutics update

AZT's first innovation - «RNA restriction enzyme ET-N1»

• Enzymes are key in development, analytics and manufacturing process of mRNA
• AZT is now exploring new innovations in the field of RNA therapeutics through RCN funded collaboration project.
• First major innovation is a sequence specific RNA cleaving enzyme enabling controlled fragmentation of RNA
• First patent filed February 7, 2023 further filing ongoing to secure broader IPR and lead market
• Multiple applications are possible, currently testing use for improving analytic methods for mRNA
• In contact with numerous companies with ongoing testing at 7 sites

Due to its large size, mRNA needs to be fragmented prior to analysis e.g. using LC-MS. ET-N1 can speed up and simplify the cleaving process prior to analysis.

Expenses & Profitability

Profitability and expenses

Expense development continue according to plan

	03		YTD
	2024	2023	2024	2023
Sales revenues	23,3	31,2	79,8	90,6
Other revenues	0,8	0,0	1,9	0,0
Sum revenues	24,1	31,2	81,7	90,6
Cost of materials	-4,7	-1,9	-7,2	-0,9
Change in inventory	3,7	0,9	2,8	6,1
Personnel expenses	-16,2	-14,8	-47,1	-43,5
Other operating expenses	-9,1	-8,1	-27,6	-23,1
Sum expenses	-26,3	-23,9	-79,1	-70,4
EBITDA	-2,2	7,3	2,6	20,2
Depreciation and amortisation	-1,5	-1,6	-4,5	-4,9
EBIT	-3,7	5,7	-1,9	15,4
Net financials	1,8	2,8	1,4	6,8
EBT	-1,9	8,5	5,5	22,2

…but Q3 also impacted by other items One-offs and extraordinary

		03
	2024	2023
Sales revenues	23,3	31,2
Other revenues	0,8	0,0
Sum revenues	24,1	31,2
Cost of materials	-4,7	-1,9
Change in inventory	3,7	0,9
Personnel expenses	-16,2	-14,8
Other operating expenses	-9,1	-8.1
ERP project	1,2
Sum expenses	-25,1	-23,9
Adjusted EBITDA	-1,0	1,3

• Q3 2024 impacted negatively by MNOK 1.2 in ERP implementation. Expected to be finalised in 2H 2024.

Cash flow and short-term investments +0.9 MNOK in changes for Q3*

23 *includes changes in STI of +1.1 MNOK

Outlook

• SAN OEM Opportunity: Term sheet expected to finalize by early Q1, contingent on successful negotiation, with expected contributions to SAN revenue growth in Q2/Q3 2025.
• CDMO platform progress: Successful evaluation of SAN by CDMO partner presented at ESGCT, positioning it for platform implementation in 2025.
• Product Portfolio Expansion: Over the next 8 months, ArcticZymes will launch two new GMPgrade nucleases and an ELISA kit, solidifying its position with a leading nuclease portfolio in the CGT space.
• Strategic Investments: Increased focus on commercial transformation to enhance market penetration and establish a more customer-centric organization.

Thank you

Q&A

arcticzymes.com