Ginkgo Bioworks Holdings, Inc. · NYSE:DNA
Ginkgo Bioworks — Q2 2022 Earnings Presentation
40 slides from Ginkgo Bioworks's earnings presentation, Aug 15, 2022
Slide 1: Grow with Ginkgo: Q2 2022 Update & Business Review
Grow with Ginkgo Q2 2022 Update & Business Review August 15, 2022
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation, the conference call and webcast may contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, strategies, current expectations, operations and anticipated results of
Slide 3: Disclaimer: Trademarks and Additional Information
Disclaimer Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners, and Ginkgo’s use thereof does not imply an affiliation with, or endorsement by, the owners of such trademarks, service marks,
Slide 4: Agenda
Property of Ginkgo Bioworks — 4 Agenda Introduction Jason Kelly, Co-Founder and CEO Q2 2022 Financial Update Mark Dmytruk, CFO Q2 2022 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 5: Our mission: Make biology easier to engineer
Our mission Make biology easier to engineer Q2 2022 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 5
Slide 6: Making biology easier to engineer through our cell programming platform
Property of Ginkgo Bioworks — 6 We aim to make biology easier to engineer for our customers by leveraging our platform for programming cells Q2 2022 UPDATE & BUSINESS REVIEW
Slide 7: Continuing to execute well on our plans in Q2 2022
Property of Ginkgo Bioworks — 7 Continuing to execute well on our plans in the second quarter of 2022 Progress on Key Metrics Strong Financial Health Active 73 +13 Diverse New Programs: $145 Programs Government Biosecurity ($M) 3x+ Foundry ($M) Pharma & Y-o-Y 46 Biotech Revenue Growth Food & ~$1.4 b
Slide 8: Agenda
Property of Ginkgo Bioworks — 8 Agenda Introduction Jason Kelly, Co-Founder and CEO Q2 2022 Financial Update Mark Dmytruk, CFO Q2 2022 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 9: Total Ginkgo Revenue
231% Total Ginkgo Revenue (Unaudited) 257% Foundry Biosecurity Q2 2022 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 9
Slide 10: Cell Programming Highlights
Property of Ginkgo Bioworks — 10 Cell Programming Highlights (Unaudited) New Programs Total Active Programs 59% 86% Q2 2022 UPDATE & BUSINESS REVIEW Total Active Customers Foundry Revenue ($M) 64% 105%
Slide 11: Biosecurity Highlights
Property of Ginkgo Bioworks — 11 Biosecurity Highlights (Unaudited) Concentric’s pathogen monitoring network has (*) Biosecurity Revenue ($M) delivered testing across most of the U.S. Demonstrated ability to deliver testing in diverse jurisdictions Q2 2022 UPDATE & BUSINESS REVIEW Biosecurity Gross
Slide 12: Q2 2022 Financial Summary
Property of Ginkgo Bioworks — 12 Q2 2022 Financial Summary (Unaudited) In millions of USD Three Months Ended June 30, Six Months Ended June 30, except new programs and % YoY 2022 2021 % YoY 2022 2021 % YoY New programs launched 13 7 86% 24 11 118% Revenue: Foundry $ 44 $ 22 105% $ 66 $ 44 49% Biosec
Slide 13: Increasing our 2022 Full Year Outlook
Property of Ginkgo Bioworks — 13 Increasing our 2022 Full Year Outlook In millions of USD Historical FY2022 Forecast except new programs and % YoY Original First Revision Second Revision FY2020 FY2021 (20-21) (March 28) (May 16) (August 15) New Programs 18 31 72% 60 60 60 Q2 2022 UPDATE & BUSINESS R
Slide 14: Agenda
Property of Ginkgo Bioworks — 14 Agenda Introduction Jason Kelly, Co-Founder and CEO Q2 2022 Financial Update Mark Dmytruk, CFO Q2 2022 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 15: We believe...
Property of Ginkgo Bioworks — 15 We believe… 1 2 3 Zymergen and Bayer will We remain focused on our Sustainability is improve our platform and cash runway and achieving fundamental to our drive better customer profitability strategy outcomes Q2 2022 UPDATE & BUSINESS REVIEW The pending additions of Z
Slide 16: We believe: Zymergen and Bayer will improve our platform
Property of Ginkgo Bioworks — 16 We believe… 1 2 3 Zymergen and Bayer will We remain focused on our Sustainability is improve our platform and cash runway and achieving fundamental to our drive better customer profitability strategy outcomes Q2 2022 UPDATE & BUSINESS REVIEW The pending additions of Z
Slide 17: Zymergen and Bayer transactions expected to be valuable platform additions
Property of Ginkgo Bioworks — 17 Zymergen and Bayer transactions expected to be valuable platform additions Transactions build on our successful history of opportunistic M&A and technology acquisition integrations Zymergen Bayer Integration of Zymergen’s automation and technical Bayer transaction ex
Slide 18: Transactions complement each other, opening new market opportunities
Property of Ginkgo Bioworks — 18 These transactions complement each other, opening new market opportunities and improving our platform capabilities for our customers Asset purchase deepens ag biologicals vertical expertise ● Leading “translational research” capabilities enhance our offering and will
Slide 19: We believe: cash runway and profitability focus
Property of Ginkgo Bioworks — 19 We believe… 1 2 3 Zymergen and Bayer will We remain focused on our Sustainability is improve our platform and cash runway and achieving fundamental to our drive better customer profitability strategy outcomes Q2 2022 UPDATE & BUSINESS REVIEW We are focused on maintain
Slide 20: Cash runway and profitability are important in this environment
Property of Ginkgo Bioworks — 20 Cash runway and profitability are important in this environment, and our underwriting and structuring of the Zymergen and Bayer deals reflects that Significant cost efficiencies in Zymergen transaction means recurring OpEx investment is minimal ● Zymergen to progress inde
Slide 21: Incremental upside opportunities in Zymergen transaction
Property of Ginkgo Bioworks — 21 Significant incremental upside opportunities in Zymergen transaction that could improve financial case 1 Product Portfolio ● Zymergen exploring strategic alternatives for its Advanced Materials and Drug Discovery businesses ○ Sale(s) could create additional cash procee
Slide 22: Business model levers to drive towards profitability
Property of Ginkgo Bioworks — 22 While we’re focused on costs in this environment, our business model has several unique levers we can pull to drive towards profitability Platform Scale Program Risk Sharing Program Choice Our platform benefits from scale We can adjust how we structure contracts We can
Slide 23: We believe: Sustainability is fundamental to our strategy
Property of Ginkgo Bioworks — 23 We believe… 1 2 3 Zymergen and Bayer will We remain focused on our Sustainability is improve our platform and cash runway and achieving fundamental to our drive better customer profitability strategy outcomes Q2 2022 UPDATE & BUSINESS REVIEW ESG is not window dressing
Slide 24: We care... and that drives everything we do
Property of Ginkgo Bioworks — 24 We care… and that drives everything we do “We believe that caring about people and the planet now requires being able to imagine a better world. And we believe that programming biology offers us an opportunity to imagine and build such a world, because biology grows a
Slide 25: Our investors also care about sustainability
Property of Ginkgo Bioworks — 25 Our investors also care… and we believe investors will increasingly need to focus on the sustainability of their portfolios Our approach to sustainable investing and ESG integration builds upon [our] active management legacy, with the understanding that every company
Slide 26: Q2 2022 UPDATE & BUSINESS REVIEW
Q2 2022 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 26
Slide 27: Our Impact: Cell Programming
Property of Ginkgo Bioworks — 27 Our Impact: Cell Programming We believe the world is recognizing that biology will be a necessary tool to combat our most pressing challenges; we expect our focus on the responsible deployment of biology can benefit from that increasing interest The CHIPS and Science
Slide 28: Our Impact: Biosecurity
Property of Ginkgo Bioworks — 28 Our Impact: Biosecurity Our COVID response efforts were not simply opportunistic, they built upon years of work in biosecurity… Q2 2022 UPDATE & BUSINESS REVIEW
Slide 29: Our Impact: Biosecurity foundation for a robust industry
Property of Ginkgo Bioworks — 29 Our Impact: Biosecurity …and have built a foundation from which we plan to develop a more robust industry CDC launches Traveler-based SARS-CoV-2 Genomic Surveillance Program Today announced we were May 27, 2022 awarded a contract with Concentric by Ginkgo crosses 10
Slide 30: Social: Technology Isn't Neutral
Social: Technology Isn’t Neutral Q2 2022 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 30
Slide 31: Board of Directors welcomes Dr. Kathy Hannan
Property of Ginkgo Bioworks — 31 Our team is supported by a strong, experienced, and diverse Board of Directors... and we’re thrilled to have recently welcomed our newest board member, Dr. Kathy Hannan Q2 2022 UPDATE & BUSINESS REVIEW Kathy Hopinkah Hannan, PhD, CPA - Board Director ● Director at An
Slide 32: Let's build the world we want to see
Let’s build the world we want to see
Slide 33: Agenda
Property of Ginkgo Bioworks — 33 Agenda Introduction Jason Kelly, Co-Founder and CEO Q2 2022 Financial Update Mark Dmytruk, CFO Q2 2022 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 34: Appendix
APPENDIX
Slide 35: Cell Program Counts
Property of Ginkgo Bioworks — 35 Cell Program Counts Three Months Ended June 30, Six Months Ended June 30, LTM (1) 2022 2021 2022 2021 2022 New Programs 13 7 24 11 44 Current Active Programs 73 46 77 51 88 Cumulative Programs 129 85 129 85 129 (1) Last Twelve Months Ended June 30, 2022 Q2 2022 UPDAT
Slide 36: Adjusted EBITDA Reconciliation
Property of Ginkgo Bioworks — 36 Adjusted EBITDA Reconciliation (Unaudited) In millions of USD Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders ($668.8) ($53.9) ($1,259.3) ($127.5) Interest (income) expense
Slide 37: Stock-Based Compensation
Property of Ginkgo Bioworks — 37 Stock-Based Compensation (Unaudited) In millions of USD Three Months Ended June 30, Six Months Ended June 30, 2022 2021 % YoY 2022 2021 % YoY Total Stock-Based Compensation $607.3 $14.5 NM $1,266.3 $14.6 NM Amount included in Research and Development expenses: 217.3
Slide 38: Foundry Revenue
Property of Ginkgo Bioworks — 38 Foundry Revenue (Unaudited) In thousands of USD, except percentages Three Months Ended June 30, Six Months Ended June 30, 2022 % of Total 2021 % of Total 2022 % of Total 2021 % of Total Related Parties 7,973 18% 10,962 51% 21,501 33% 23,622 54% Third Parties 36,269 8
Slide 39: Segment Information
Property of Ginkgo Bioworks — 39 Segment Information (Unaudited) In millions of USD Three Months Ended June 30, Six Months Ended June 30, 2022 2021 % YoY 2022 2021 % YoY Revenue: Foundry $ 44 $ 22 105% $ 66 $ 44 49% Biosecurity 100 22 355% 247 44 467% Total Revenue 145 44 231% 313 88 257% Segment co
Slide 40: Share Supplement: Illustrative Fully-Diluted Share Count
Property of Ginkgo Bioworks — 40 Share Supplement Illustrative Fully-Diluted Share Count Shares in millions Basic Shares(1) 1,624.3 RSUs(2) 214.3 Options (Treasury-stock method)(3) 18.3 Q2 2022 UPDATE & BUSINESS REVIEW Fully-Diluted Shares 1,856.9 Memo: Remaining Earnout Shares Outstanding(4) 160.5
Ginkgo Bioworks Holdings — Q2 2022 Earnings Presentation on 6ix