Ginkgo Bioworks Holdings, Inc. · NYSE:DNA
Ginkgo Bioworks — SPAC Merger (May 2021)
66 slides from Ginkgo Bioworks's SPAC merger presentation, May 11, 2021
Slide 1: Grow with Ginkgo Investor Presentation
Exhibit 99.2 Grow with Ginkgo GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 1Exhibit 99.2 Grow with Ginkgo GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 1
Slide 2: Disclaimer
DIS CL AIMER Disclaimer This confidential presentation (the “presentation”) is being delivered to you by Soaring Eagle Acquisition Corp. (“SRNG”) and Ginkgo Bioworks, Inc. (“Ginkgo”) for use by Ginkgo and SRNG in connection with their proposed business combination and the offering of the securities
Slide 3: Disclaimer: Trademarks, Private Placement, Financial Information
DIS CL AIMER Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners, and SRNG’s and Ginkgo’s use thereof does not imply an affiliation with, or endorsement by, the owners of such trademarks,
Slide 4: Transaction Overview
Transaction Overview (4) Transaction Summary Pro Forma Enterprise Value ($M, except per share amount) • Ginkgo Bioworks has entered into a definitive agreement to merge with Soaring Eagle Acquisition Corp. (Nasdaq:SRNG), valuing Ginkgo at an enterprise value of $15 billion Share Price $10.00 • All-p
Slide 5: Our Mission: Make biology easier to engineer
Our Mission Make biology easier to engineer 5 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 1Our Mission Make biology easier to engineer 5 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 1
Slide 6: Founders working together for nearly 20 years on synthetic biology
2006 Tom Knight with his master’s MIT,1972 thesis, a “minicomputer” The founders have been working together for nearly 20 years on this vision of synthetic biology 2019 6 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 12006 Tom Knight with his master’s MIT,1972 thesis, a “m
Slide 7: We can program cells like we program computers
LEARN MORE LEARN MORE We can program cells (DNA) like we program computers (code) 7 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 1LEARN MORE LEARN MORE We can program cells (DNA) like we program computers (code) 7 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO
Slide 8: Cell programming is increasingly impacting our lives
Cell programming is increasingly impacting our lives Ginkgo’s work to close raw material gaps in the mRNA vaccine supply chain was recently featured on 60 Minutes Vaccines are developed and manufactured using cell programming tools 8 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y
Slide 9: Cell programming is addressing environmental and social issues
Cell programming is addressing our most challenging environmental and social issues Food & Agriculture Industrials & Environment Consumer & Technology Pharma & Biotech Nucleic acid Wastewater Renewable Animal protein Sugar Plant extracts: Haircare and Antibody vaccine remediation chemicals replaceme
Slide 10: Program, platform and technology layers
PROGRAM LAYER Ginkgo provides program management and technical execution to product companies across all industries LEARN MORE PLATFORM LAYER Ginkgo is building the leading horizontal platform for Ginkgo is the interface cell programming across all industries between a series of complex technologies
Slide 11: We program cells for our customers
We program cells for our customers so they can develop new products 11 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 1We program cells for our customers so they can develop new products 11 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 1
Slide 12: Customers run programs on Ginkgo's platform
CASE STUDY Customers run their programs on Ginkgo’s platform to drive business value % 303 300 Ginkgo partnered with Motif to develop more delicious and IMPROVEMENT OVER PROTEINS UNMODIFIED sustainable food. SOURCED STRAINS In just 1 year, 6 prototype strains were developed, and product samples were
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Slide 14: Ginkgo is a valuable partner
Ginkgo is [a] valuable partner Ginkgo is critical to our success and Ginkgo is addressing a foundational providing services to our R&D group development of synbio solutions needed for us challenge that enables us to scale our that could not otherwise be to be successful. antibody discovery platform.
Slide 15: Founding team with proven executives and board
Combining an industry-defining founding team with proven executives who have built iconic public companies Founding team has been working together for nearly 20 years Soaring Eagle brings a track record of success in SPACs Harry Sloan Jeff Sagansky Eli Baker Reshma Shetty Jason Kelly CEO, Chairman P
Slide 16: We believe: cell programming as impactful as programming computers
We believe… 1 2 3 4 Programming cells Ginkgo’s platform Ginkgo is becoming Our value increases will be as impactful improves with scale the industry standard with each new program as programming added to the platform computers The same underlying Each new program drives We believe Ginkgo’s Each new
Slide 17: We believe: cell programming as impactful as programming computers
We believe… 1 2 3 4 Programming cells Ginkgo’s platform Ginkgo is becoming Our value increases will be as impactful improves with scale the industry standard with each new program as programming added to the platform computers The same underlying technology can be used to create applications across
Slide 18: The promise and power of biology has never been more apparent
The promise and power of biology has never been more apparent 1 YEAR LATER: MARCH 2021 APRIL 2019 11 MONTHS L ATER: MARCH 2020 “...permits the manufacture of all manner of things “Planet earth is shutting down… desperate “Now we have entered…a life-science which used to be hard, even impossible, to
Slide 19: R&D spending accounts for nearly $40B in untapped demand
R&D spending alone accounts for nearly $40B in untapped demand Existing market for cell engineering lab operations ($B) $60 $58B Cell Engineering Labor Cell Engineering Tools $48B $50 Our scale $22 dramatically reduces costs $40B $40 $18 $33B This market represents $15 $28B $30 over 20,000+ potentia
Slide 20: $2 to $4 trillion emerging market for bioengineered products
$2 to $4 trillion emerging market for bioengineered products Annual Direct Economic Impact By Domain 2030—2040 (partial estimate) $1.2T $1.2T High Estimate Low Estimate Programming + significant secondary effects not measured biology is to the physical world what $700B programming computers is to th
Slide 21: We believe: platform improves with scale
We believe… 1 2 3 4 Programming cells Ginkgo’s platform Ginkgo is becoming Our value increases will be as impactful improves with scale the industry standard with each new program as programming added to the platform computers Each new program drives platform improvements, leading to more demand. 21
Slide 22: Major customer programs across diverse industries
Over 70 major customer programs across diverse industries have run on our platform = DIVERSIFIED PLATFORM Cumulative Major 3rd Party Programs Can respond rapidly to emerging opportunities and global threats 80 + PHARMA & BIOTECH Mammalian capabilities & PRE-2015: GOVERNMENT PROGRAMS Synlogic partner
Slide 23: Market defining customers validate the platform
Market defining customers have validated the platform across a wide range of end markets Industrials CONSUMER & TECH INDUSTRIALS & ENVIRONMENT AGRICULTURE FOOD & NUTRITION PHARMA & BIOTECH Fragrances Commodities & Specialty Chemicals Fertilizers & Crop Animal-free proteins Microbiome Therapeutics (G
Slide 24: The Foundry drives a strong scale economic
The Foundry - Ginkgo’s physical infrastructure - drives a strong scale economic BW5 Lab-scale automation and significantly increased NGS capacity BW4 Added mammalian cell engineering capabilities BW3 Created scale modules by function KNIGHT’S LAW – our scale theory (e.g. DNA synthesis, -omics, BW2 s
Slide 25: Ginkgo's Foundry is scaling roughly 3x per year
Ginkgo’s Foundry is scaling roughly 3x per year L A B OPER ATIONS: MEASURING WORK DONE ON THE PLATFORM STR AIN TESTS: MEASURING THE OUTPUT OF THE PLATFORM 1,000,000 10,000,000 1,000,000 100,000 100,000 3-4x annual increase pre-COVID 10,000 10,000 1,000 1,000 2-3x annual increase pre-COVID 100 100 10
Slide 26: Unit costs to program cells have decreased by 50% per year
Unit costs to program cells have decreased by 50% per year $10,000 $1,000 FOUNDRY IS 5-10X CHEAPER THAN THE STATUS QUO ESTIMATED “BY HAND” COST $100 BY 2025, WE SHOULD BE TWO ORDERS OF MAGNITUDE MORE EFFICIENT THAN “BY HAND” COVID impact $10 $1 2015 2016 2017 2018 2019 2020 2021 2025 Note: Costs inc
Slide 27: Codebase is a source of long-term competitive advantage
Codebase - Ginkgo’s scale data asset - is a source of long-term competitive advantage unique gene sequences pulled 3.4B+ from all public databases proprietary gene sequences acquired 440M And growing… codebase accumulates as we run new experiments in the foundry and build new: “Ginkgo will organize
Slide 28: Learning from wild biology: nitrogen fertilizer
(1) The $70B+ nitrogen-based fertilizer market accounts for approximately: 5% of global greenhouse We learn from wild (2) gas emissions biology to grow our 4% of global natural gas (3) Codebase production …and local environmental problems from runoff IMAGE CREDIT: KAREN INGRAM Some crops, such as le
Slide 29: Designing codebase for cattle industry alternatives
IMAGE CREDIT: KAREN INGRAM We design codebase when C AT TLE (BEEF & DAIRY ) INDUS T RY: working on programs (1) $1 trillion global market (2) 9% of global greenhouse gas emissions Organisms like yeast (shown above) are the biological factories for producing a wide range of molecules (1) Source: imar
Slide 30: We re-use codebase across programs
We re-use codebase across programs to improve outcomes and efficiency z C OD EB A S E The SAME YEAST used to generate proteins for food can produce proteins used in personal care products, such as collagen, elastin, and keratin Kalo 30 (1) Note targets are illustrative as Kalo has not announced spec
Slide 31: Ginkgo's virtuous cycle drives platform growth
Ginkgo’s virtuous cycle drives platform growth 31 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 1Ginkgo’s virtuous cycle drives platform growth 31 GI NKGO BI O W O R K S INV E S T O R P R E S E N T A T IO N| M A Y 2 0 2 1
Slide 32: We believe: ecosystem of services
We believe… 1 2 3 4 Programming cells Ginkgo’s platform Ginkgo is becoming Our value increases will be as impactful improves with scale the industry standard with each new program as programming added to the platform computers We believe Ginkgo’s ecosystem of services will make us the obvious partne
Slide 33: Each new cell program can accelerate adoption
Each new cell program can accelerate adoption within new markets and lead to further sales with existing customers Ability to grow significantly within existing Early proof points within an industry customer accounts can lead to follow-on demand 12 10 (1) Major Program Minor Program Proof of Concept
Slide 34: Strong 2021 sales pipeline
Strong 2021 sales pipeline with mix of new customers and expanded relationships [CONFIDENTIAL] Kalo Launched a new spin-out in personal New relationship with top 5 agchem New multi-product collaboration with top global care space, with strategic and financial company, focused on discovery and flavor
Slide 35: Ecosystem will support hundreds of new cell programs a year
Our ecosystem will soon support hundreds of new cell programs a year 600 508 500 Self-Service Portals 400 Ecosystem Support 300 268 Still only 1-2% Platform Scaling of the market for 200 cell engineering (1) R&D services 136 Expand within Base 100 Leverage Proof Points 60 23 17 0 2020A 2021E 2022P 2
Slide 36: Ginkgo is creating the industry standard ecosystem
Ginkgo is creating the industry standard ecosystem Like other horizontal tech platforms, Ginkgo is building a strong developer community - wrapping services around the platform to drive industry growth and, ultimately, demand Launched Ginkgo Ferment, our annual conference, in 2018 VIEW KEYNOTE Other
Slide 37: Expanding our ecosystem of services
REGULATORY We will be greatly expanding our ecosystem of services for cell programmers running on the Ginkgo platform Ginkgo annual developer Open-source conference and product Source of innovative bioengineering tools showcase technologies for industry partners: hub for investment, Help drive legis
Slide 38: We believe: each new program adds revenue
We believe… 1 2 3 4 Programming cells Ginkgo’s platform Ginkgo is becoming Our value increases will be as impactful improves with scale the industry standard with each new program as programming added to the platform computers Each new program adds predictable near-term revenue from usage fees and p
Slide 39: Programs drive near-term revenues and long-term value
Programs drive both predictable near-term revenues and long-term value creation with asymmetric upside potential Foundry Downstream Value Upfront payments to cover R&D Value sharing via customer equity and/or costs for customer programs royalties on completed programs Foundry Royalty Stream Equity E
Slide 40: Program unit economics are strong and improving
Program unit economics are strong and improving FOUNDRY USAGE FEES DOWNSTREAM VALUE CAPTURE Foundry Downstream Value Ginkgo receives downstream value in multiple forms. The equity Ginkgo has steadily increased the portion of program value per program provides context for the future value. R&D costs
Slide 41: Growth in foundry revenues and new programs drives valuation
Growth in foundry revenues and new programs drives valuation Actuals Projections (1) ($M) 2018 2019 2020 2021 2022 2023 2024 2025 Foundry Billable Revenue $30 $54 $64 $100 $175 $341 $628 $1,099 % growth 78% 18% 57% 75% 95% 84% 75% memo: GAAP Adjustments $3 $0 ($4) GAAP Foundry Revenue $33 $54 $59 20
Slide 42: Value streams support a strong valuation
These value streams support a strong valuation with meaningful upside potential FOUNDRY DOWNSTREAM VALUE BIOSECURITY 2021E Revenue (2024E) $628M 2025E New Programs 500+ $50M Revenue $12 Biosecurity may become a long- Rev. Growth (21-24E) 84% Annual Platform Value Add term revenue stream if = New Pro
Slide 43: Leveraging capital to build the cell programming ecosystem
Leveraging capital to build the heart of the emerging cell programming ecosystem PL ATFORM & CAPACIT Y We are accelerating growth in capacity by integrating new technologies across the existing footprint, building new foundry space, and investing in software and automation to increase utilization. W
Slide 44: The most powerful technologies require the most care
The most powerful technologies require the most care Our culture is built on care, transparency, diversity, employee ownership and a deep, humble respect for biology. We take care in considering which programs we pursue We invest in our and which we do not, and explore the implications of biotechnol
Slide 45: We believe... we hope
We believe… 1 2 3 4 Programming cells Ginkgo’s platform Ginkgo is becoming Our value increases will be as impactful improves with scale the industry standard with each new program as programming added to the platform computers We hope… …that when technology meets biology, life finds a way. 45 GI NKG
Slide 46: Appendix
a by Ginkgo ====Born in Boston APPENDIX —
Slide 47: Attractive entry valuation vs. peers
Attractive entry valuation vs. peers CY 2021-24E Revenue CAGR (2) (1) Median: 32% Median: 33% 84% 54% 53% 38% 36% 32% 33% 32% 29% 28% 14% NM (4) Adjusted for CY 2024 TEV / Revenue value share Median: 18.7x Median: 16.6x 27.2x (1) 24.1x 21.6x 20.9x 19.2x 18.9x 16.6x 16.5x 15.5x 13.7x (3) 12.6x 10.8x
Slide 48: Projected P&L
Projected P&L (1) ($M) 2020 2021 2022 2023 2024 2025 Foundry Billable Revenue $64 $100 $175 $341 $628 $1,099 % growth 18% 57% 75% 95% 84% 75% memo: GAAP Adjustments ($4) GAAP adjustments not projected Foundry Revenue (GAAP) $59 $100 $175 $341 $628 $1,099 Emerging business, projections not provided (
Slide 49: Summary of Historical Income Statements
Summary of Historical Income Statements Year Ended December 31, (1) ($ in M) 2019A 2020A (2) Revenue $54.2 $76.7 % Growth 66% 41% Cost of Biosecurity product revenue 0.0 6.7 Cost of Biosecurity service revenue 0.0 8.9 Research & development 96.3 159.8 General & administrative 29.5 38.3 Total Operati
Slide 50: Historical Net Loss to Adjusted EBITDA Reconciliation
Historical Net Loss to Adjusted EBITDA Reconciliation Year Ended December 31, (1) ($ in M) 2019A 2020A Net Loss Attributable to Ginkgo ($119.3) ($126.6) Net interest income (3.3) ($0.2) Depreciation and amortization 10.8 $13.9 Loss attributable to equity method investments, net of NCI 46.4 $2.9 Loss
Slide 51: Historical Foundry GAAP to Billable Revenue Reconciliation
Historical Foundry GAAP to Billable Revenue Reconciliation Year Ended December 31, (1) ($ in M) 2019A 2020A Foundry Revenue (GAAP) $54.2 $59.2 % Growth 66% 9% (2) 2.7 13.6 Synlogic Adjustment (3) (3.2) (9.3) Equity Investee Adjustment Total Adjustments ($0.4) $4.3 Foundry Billable Revenue $53.7 $63.
Slide 52: Additional Case Studies
ADDITIONAL CASE STUDIES 52ADDITIONAL CASE STUDIES 52
Slide 53: Case study: Producing cultured ingredients at scale
CASE STUDY 1 A leading company for production of natural Producing cultured ingredients was looking for cost-saving opportunities. Ginkgo identified a plan to ingredients at scale fine-tune existing pathways in yeast to produce multiple flavors more efficiently, then optimized the conditions for sca
Slide 54: Case study: Producing cultured ingredients at scale
CASE STUDY 1 Producing cultured ingredients at scale Ginkgo ambr250 EOF Optimal Process (average of 20 runs) Ginkgo’s system enables high Ginkgo ambr250 EOF throughput screening without Deployed Process (increased process robustness) compromising quality of data. The conditions optimized at a Pilot
Slide 55: Case study: Using biomining techniques to recycle compounds
CASE STUDY 2 6 GINKGO APPROACH 5 LED TO DISCOVERY OF Using biomining 4 A BETTER PROTEIN techniques to 3 recycle compounds 2 1 Some of the compounds in objects we 0 use everyday are difficult to recycle. Previous Best in Market Best Ginkgo Identified By identifying proteins that selectively Protein P
Slide 56: Case study: Exploring broader biological diversity
CASE STUDY 3 Foundries allow us to explore a broader range of biological diversity Enzymes come from a wide variety of source organisms Powered by gigabase-scale DNA synthesis, Ginkgo explores biodiversity to identify novel or improved enzyme activities and design pathways programmatically Clusters
Slide 57: Case study: Pathway design for a complex metabolic pathway
CASE STUDY 4 Approach: By capitalizing on the capacity of the Foundry, Ginkgo could screen a large number of pathway architectures to construct the pathway. Pathway design promoters enzyme 1 enzyme 2 enzyme 3 for a complex x 8 x 4 9 x 4 metabolic pathway Situation: A client wished to decrease = 1,15
Slide 58: Case study: Pathway design results
CASE STUDY 4 30 Pathway design for a complex 22.5 metabolic pathway 15 The strains transferred to the customer could assimilate the 7.5 new feedstock 25 times more than the original strain, achieving the target. 0 1 2 3 4 5 6 Results over time à 58 Assimilation of new feedstock (%) GI NKGO BI O W O
Slide 59: Case study: Sustainable foods with kilogram-scale protein production
CASE STUDY 5 Making more sustainable foods with kilogram-scale protein production Situation: Ginkgo partnered with Motif FoodWorks to develop commercial yeast strains and processes for protein production at the kilogram scale. The target protein would be used to make foods more delicious and sustain
Slide 60: Case study: Sustainable foods, discovery
CASE STUDY 5 Making more sustainable foods % with kilogram-scale protein production 303 300 IMPROVEMENT OVER PROTEINS UNMODIFIED Discovery: Leveraging our Codebase and Foundry, we SOURCED STRAINS identified and screened hundreds of distinct candidate proteins. Top performers were engineered with nov
Slide 61: Case study: Sustainable foods, scale
CASE STUDY 5 Making more sustainable foods with kilogram-scale protein production Scale: Within 2 years, Ginkgo developed commercial strains from scratch, as well as fermentation and downstream purification processes that are now being used at kilogram-scale, with a total projected 3 years time-to-m
Slide 62: Case study: Producing cultured cannabinoids
CASE STUDY 6 Producing cultured cannabinoids Plants like cannabis hold many unique compounds that can have important health benefits, but many of those compounds are impractical and expensive to extract and purify. With our landmark partnership with Cronos Group, we are working to produce eight targ
Slide 63: Case study: Engineering living medicines
CASE STUDY 7 Engineering living Situation: For approximately 2 years, Synlogic had been prototyping a strain and pathway to medicines consume leucine, but initial modeling suggested that more activity was needed for target therapeutic effect. Approach: To optimize the complex pathway to increase con
Slide 64: Case study: Rapid pathway development
Enzyme 2 Enzyme 3 Enzyme 1 CASE STUDY Leucine Byproduct 7 Rapid pathway development 3-step leucine consumption pathway PARENT PATHWAY PERFORMANCE High-throughput screening of pathways using targeted metabolomics Metagenomic enzyme High throughput screening Use top enzymes to design sourcing and synt
Slide 65: Case study: Engineering living medicines results
CASE STUDY 7 Engineering living medicines With a simpler biological design, Ginkgo improved the Synlogic strain’s ability to consume leucine by nearly 7x. Furthermore, the Synlogic-Ginkgo optimized strain SYN5941 lowers protein-induced leucine consumption in non-human primates. Presented at SEED Jun
Slide 66: Case study: Leveraging scale to optimize enzyme activity
CASE STUDY 8 Leveraging scale to optimize enzyme activity enzyme activity C A S E S T UD Y Our client was seeking an enzyme that could New IP enhance an underperforming, in-house program in the industrials space Ginkgo created a diverse library of 1,700+ enzyme variants, informed by our Codebase I M