Genus Plc · LSE:GNS
Genus — Investor Day (November 2023)
57 slides from Genus's investor day presentation, Nov 1, 2023
Slide 1: Delivering the PRRS Resistant Pig (PRP)
Pioneering animal genetic improvement a ee to help nourish the world Se Delivering the PRRS Resistant Pig (‘PRP’) 1 November 2023 Genus
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Genus ple ("Genus"). This presentation does not constitute or form part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction. This presentation does not purp
Slide 3: Our key messages for today
Our key messages for today €) ach = foe con PRP is a world first PIC is the market leader = Approvals in US and Clear multi-year Financially that can transform uniquely positioned key export markets commercialisation — transformative for the porcine industry to deliver PRP making good progress plans
Slide 4: Our Presenters
Our Presenters Genus Jorgen Kokke Genus CEO Our Strategic Priorities Dr. Matt Culbertson PIC COO PIC and the PRRS Resistant Pig (‘PRP’) Dr. Elena Rice Genus CSO Science of PRRS and Regulatory Approval Progress Todd Wilken PIC NAM Director Succeeding with PRP in the US Nick McCulley PIC Global Supply
Slide 5: Agenda
Agenda 10:00am 10:15am 10:30am Genus 4 Our Strategic Priorities PIC and the PRRS! Resistant Pig (‘PRP’) Science of PRRS and Regulatory Approval Progress Succeeding with PRP in the US Coffee Break Porcine Reproductive and Respiratory Syndrome virus 11:20am 11:35am 11:50am 12:05pm 12:15pm 13:00pm 14:0
Slide 6: Our Strategic Priorities
Pioneering animal genetic improvement to help nourish the world Our Strategic Priorities Jorgen Kokke - Genus CEO LU Genus
Slide 7: Our vision: Pioneering animal genetic improvement
Slide 8: Genus's strategy and business model
Genus's strategy and business model Our investment in gene editing technology has made PRP possible Strategy 01. Create differentiated and sustainable proprietary genetic solutions Harness leading technologies, talent and data to deliver industry-leading proprietary products 02. Serve sustainable an
Slide 9: Our journey so far
Our journey so far Consistent profit growth over the medium term whilst investing in a platform for the future Adjusted operating profit 5-year CAGR (S year CAGR , constant currency, inc. JVs, exc. Gene editing) FY15 - FY19 FY16 - FY20 FY17 - FY21 FY18 - FY22 FY19 - FY23 Genus Net research and devel
Slide 10: Our strategic priorities
Our strategic priorities Leveraging the investments made in innovation and supply chain her? Deliver successful commercialisation of our PRRS gene edit aad) Deliver greater value from bovine c Genus hq anil Continued growth in porcine, with more stable growth in China g Continue to generate returns
Slide 11: PRP brings significant benefits to the value chain
PRP brings significant benefits to the value chain Improved animal welfare, fewer antibiotics, lower emissions and better economics Animal welfare’ Employees e@------------------------------ yn | CU CO - er rrr rr rr rr rr rr rr rrr rrr 7 + Reduction in antibiotic usage \ * Focus on raising healthy
Slide 12: Steady progress towards PRP commercialisation
Steady progress towards PRP commercialisation Regulatory approvals progressing, market acceptance a key focus Technical Progress! Regulatory Progress Commercial progress + PRP demonstrated to be * Positive determination in + Welfare, sustainability and resistant against PRRS Colombia productivity be
Slide 13: PIC and the PRRS Resistant Pig (PRP)
») Never Stop Improving PIC and the PRRS Resistant Pig (‘PRP’) Dr Matt Culbertson — PIC COO
Slide 14: Building on a strong foundation
Building on a strong foundation 60 years of delivering success to our customers Robust Senex, \mproveme,, 60-year history of delivering genetic improvement and value to customers Lifetime customer Va, lg 2 “YonpnuaieyG Mog pasi\oo8 cad Long-term customer partnerships g PRP isa breakthrough product,
Slide 15: Never Stop Improving: our success drives better outcomes
Never Stop improving Our success drives better outcomes for farmers, pigs and the environment Nutritious, good tasting, affordable pork for consumers Drivers of economic success Sow herd productivity - High number of piglets - High quality of piglets - Sow herd efficiency Fast and efficient growth -
Slide 16: PRRS is a global problem for pork producers
PRRS is a global problem for pork producers ) Endemic in most major pork producing countries HB Pig producing country that is PRRS free. HB Pig producing country with PRRS. 1S Non major pig producing countries PIC Source: PIC estimates 2 Delivering the PRRS Resistant Pig PRP’) 16
Slide 17: PRP offers a unique global solution
PRP offers a unique global solution The US and China are the largest scalable markets for our technology Sows by market So = °¢6 37.4m 6.1m 2.3m (>) « e 1.2m! 1.1m 0.8m 0.6m? Source: PIC estimates US Core and established market a aut Foundation geography and major market for PIC ooo ooo ooo 'PIC est
Slide 18: PIC has the market leading platform to deliver PRP
» PIC has the market leading platform to deliver PRP Market Leading Genetics Value of the PRP trait is realized in combination with elite market leading genetics Removal of PRRS allows greater expression of our market leading genetics Efficient and scalable supply Two dedicated PRP farms in the US w
Slide 19: Science of PRRS and Regulatory Approval Progress
») Never Stop Improving Science of PRRS and Regulatory Approval Progress Dr Elena Rice - Genus CSO
Slide 20: How our gene edit works
How our gene edit works Removing the viral binding site without adding any genetic material Virus binds to PRRS virus e~ CD163 protein pen to enter cell rae Ce Cs) CD163 protein #=4# d i Le] CRISPR Cas? omains ie complex Virus cannot PRRS virus es bind to edited ihn. e4 CD163 protein rom} QQOS® OO2@
Slide 21: Scaling up our PRP herd
Scaling up our PRP herd Following the gene-edit, our PRP is conventionally bred Ist Generation — Edited pigs 2nd Generation — Conventionally bred pigs with Heterozygous edit E1 3rd Generation — Conventionally bred pigs with Homozygous edit When we edit pigs we select out any that don’t have the desi
Slide 22: Our gene edit achieves PRRS resistance
) improving Our gene edit achieves PRRS resistance! Measured infection of pigs (through virus replication, detection and antibody response) over 21 days? Tested two groups of animals Tested both groups of animals in each trial - edited and non- with North American PRRS edited group variants Lineage/
Slide 23: Our PRP performs identically to non-edited pigs
Never Stop improving Our PRP performs identically to non-edited pigs Birth - early life Reproductive phases Data was collected from Key Sire Dam Key Sire Dam Key Sire Dam birth to finishing and Traits? Line Line Traits Line Line Traits Line Line reproduction. A total of 20 Birth Weight Gestation phe
Slide 24: PRP meat is identical to meat from non-edited pigs
Never Stop improving PRP meat is identical to meat from non-edited pigs Evaluated two groups of 6 . i Meat iti animals — edited and control! sdoenqMelliay ear composition Data was collected from an equal Key Traits? Key Traits number of male and female animals in each group (10 animals Hot carcass w
Slide 25: PRP programme has a strong intellectual property position
» PRP programme has a strong intellectual property position 43 patents issued in 37 countries All CD163 Edits - 2015 (Missouri) CRISPR Editing - 2016 (Caribou) Genus-BCA collaboration - 2019 Genus own filings and additional CD163 edit (Roslin) - 2021 Never Stop improving First PRP developed by Genus
Slide 26: FDA regulatory process nearing completion
) improving FDA regulatory process nearing completion Approval expected first half 2024 Phase | - Product Claim and Methods 1, Product Definition 2. Molecular Characterisation of Altered DNA Phase II - Molecular Characterization 1. Molecular Characterization of Edited Animals 2023 Phase III - Animal
Slide 27: Projected global regulatory timeline
Never Stop improving Projected global regulatory timeline FDA approval (+) Canadian approval &) Chinese approval Pursue other geographies J Mexican determination Colombia positive determination! Y) PIC 1 The government of Colombia gave a favourable regulatory determination for Genus's PRP on § Octob
Slide 28: Succeeding with PRP in the US
») Never Stop Improving Succeeding with PRP in the US Todd Wilken — PIC NAM Director
Slide 29: PRRS is prevalent across the US porcine industry
PRRS is prevalent across the US porcine Industry Nearly all major systems have suffered a PRRS break in the last 3 years PRRS has become increasingly endemic Morrison Swine Health Monitoring Programme and unseasonal 100 90 Dynamic 80 I Negative At any given time, 70 1 Negative Provisionally greater
Slide 30: The cost of PRRS impacts the whole pork value chain
Never Stop improving The cost of PRRS impacts the whole pork value chain Impact on Growing Pigs O06 ay ever “Porcine reproductive and respiratory PRRS prevalence in finishing pigs is Respiratory challenges syndrome cost the U.S. swine industry amplified due to additional lateral Impeded growth $664
Slide 31: We are deeply embedded in the US market
) improving We are deeply embedded in the US market Top 20 NAM Producers by Total Sow Base EPIC Customer I Non-PIC customer PIC supplies 19 of the Top 20 NAM producers Eichelberger Schwortz Releks View Out of today’s Top 50, 45 have been Pillen Fermily Farms. Smithfiele continuous customers of PIC f
Slide 32: Customers expect us to deliver innovation and high service levels
Customers expect us to deliver innovation and high service levels Entrenched royalty model aligns us with customer success PIC Royalty Model Multiple Royalty Sources Stabilize Revenue Royalty $ Our Defining Goal NAM Royalties by Type Contract Multipliers Customer PIC Internal ry ; | an W sso, Geneti
Slide 33: We have the right platform to deliver PRP in the US
Never Stop improving We have the right platform to deliver PRP in the US PRP roll-out can leverage our existing customer relationships and innovation credentials Sal Strong track record of delivering value and innovation to the US pork value chain Unique position to address challenges and simultaneo
Slide 34: Global Genetic Dissemination Plan
4 Never Stop Improving Global Genetic Dissemination Plan Nick McCulley — PIC Global Supply Chain Director
Slide 35: Global pork trade flows require a global perspective
Never Stop improving Global pork trade flows require a global perspective We are committed to deploying PRP transparently and responsibly Major Pork Export Flows PIC Targeting countries that produce and/or import substantial amounts of pork and have clear regulatory pathways Countries that do not ex
Slide 36: Ready to supply PRP at the onset of commercialisation
) improving Ready to supply PRP at the onset of commercialisation We are committed to deploying PRP transparently and responsibly ol oe Car Infrastructure in place today to &]GISG] deliver this technology globally Each country is unique & will be approached individually to maximize value proposition
Slide 37: The pork production pyramid
The pork production pyramid Genetic improvement made at the top of the pyramid Pure line expansion at owned and contracted nucleus farms Pure line crossing and multiplication wholly outsourced to third parties and customer systems Goal: control genetic improvement and pure line access; leverage thir
Slide 38: Delivering PRP to our customers is a multi-year process
Delivering PRP to our customers is a multi-year process Introgression of PRRS-resistant trait in 100,000 sow customer herd (base case) Day 0 18 months End of year 3 End of year 5 Edited semen Edited semen Edited semen Great grand parent Grand parent Parent 144 144 +t tt Pigs 2.3M market pigs 23M mar
Slide 39: PRP Market Acceptance
») Never Stop Improving PRP Market Acceptance Banks Baker — PIC Product Sustainability Director
Slide 40: Animal protein industries are under pressure to improve
) improving Animal protein industries are under pressure to improve Corporations, shareholders and regulators are demanding progress Greenhouse gases PORK THE WALL STREET JOURNAL. ~« StarTribune THE WALL STREET JOURNAL. PIC U.S. Pork Seeks To Reduce GHGs 40% By 2030, Announces On-Farm Sustainability
Slide 41: PRP brings tremendous opportunity to all stakeholders
Never Stop improving PRP brings tremendous opportunity to all stakeholders Improving welfare and productivity, while reducing antibiotic and feed requirements! Improving Animal Welfare Premature births Fever Post wean mortality (ep Lethargy Respiratory distress Ae Anorexia Stillborn or weak piglets
Slide 42: Pioneering the dual use of genetics
Pioneering the dual use of genetics PIC genetics: best-in-class performance and a high-single-digit percentage reduction in GHG emissions! Creating a robust pathway for our customers and their customers to use our genetics to deliver both a meat product and a carbon reduction value Life Cycle Assess
Slide 43: PRP reduces the need for antibiotics
PRP reduces the need for antibiotics! 4 SJ Dr. Gustavo Silva & Dr. PRRS infections more than Isadora Machado, lowa double the use of antibiotics State University College of Veterinary Medicine Research: Impact of PRRS tT tT on need for antibiotic use 380% Outcome: Study shows increase in that PRRS i
Slide 44: Research validates consumer preferences
Research validates consumer preferences FDA approval, animal welfare and environmental benefits are the top 3 motivating factors Qualitative 6 virtual focus groups * Evaluate reactions ° Test messaging to the concept * Prioritise consumer * Identify concerns benefits Quantitative 1,000 online survey
Slide 45: Spreading the message through the pork value chain
Spreading the message through the pork value chain Working with industry partners to communicate shared benefits PIC Stakeholder engagement G We have engaged the pork value chain on 4 continents Speaking at industry events about the potential opportunities of this technology ‘Lhttps://geneediting fo
Slide 46: There are different segments of the pork value chain
There are different segments of the pork value chain Developing thoughtful engagement that resonates with each group Farmer/Producer PRP will drive greater productivity, animal welfare and efficiency for farmers Improving the sustainability of producer operations Directly reducing emissions and inpu
Slide 47: Multiple benefits will drive market acceptance
Multiple benefits will drive market acceptance PRP provides real and quantifiable benefits across the pork value chain, from farmer to consumer PRP is a forerunner to a suite of GE products that are being researched by industry for human and agricultural purposes ee Creating global standards to deli
Slide 48: PRP Financial Drivers
») Never Stop Improving PRP Financial Drivers Matt Biancheri — PIC Finance Director
Slide 49: Market leading and proven Royalty Model
Market leading and proven Royalty Model Mutually beneficial contracts that drive long-term partnerships Royalty Fees: £b =} ro @ @ 1 Payment at time 2 Ongoing royalty fees paid when value of delivery at cost is delivered (pigs weaned, pigs Royalty Model Upfront pricing of goods marketed, sows used,
Slide 50: PRP pricing strategy
PRP pricing strategy Matching our goals with customers’ goals to incentivise adoption Goal Rapid, widespread adoption Share in the value created Support multi-year genetic dissemination Share in the value sooner Align steady state performance with our customers How we do it Incremental PRP trait fee
Slide 51: Projected Regulatory & Commercialisation Timeline
Projected Regulatory & Commercialisation Timeline Potential for earlier adoption in some markets > 6 5 H cS FDA approval ( ) conadian approval @ Chinese approval | : — > H ‘S) Brazilian determination @ Japanese determination = a H . is ae P th hi oe Colombia positive determination Vv) ® Mexican dete
Slide 52: PRP financial guidance (United States only)
Never Stop improving PRP financial guidance (United States only) Assuming regulatory progress continues as anticipated: + USDA data indicate there are a total of circa 6.1m sows currently in the US By June-26, PIC estimates that 30-40% of its customers’ sows will be on the PRP programme * By June-28
Slide 53: Closing Remarks
Pioneering animal genetic improvement to help nourish the world Closing Remarks Alison Henriksen - Genus CFO LU Genus
Slide 54: Leveraging our investments
Leveraging our investments Multiple levers to propel ROIC back to historical levels Return on Invested capital $ Genus has invested significantly . in R&D, capex and its biological 23% assets in the last three years - 20% “7 a 15% ae Cumulative Gene Editing expenses to FY23 have been c.£50m We are f
Slide 55: FY15 - FY19 FY16 - FY20 FY17 - FY21
14% 128% 10% 10% 10% 10% 113% 105% 82% 82% FY15 - FY19 FY16 - FY20 FY17 - FY21 FY18 - FY22 FY19 - FY23 FY19 FY20 FY21 FY22 FY23 3.2 1.7 1.6 2.7 2.7 2.6 1.0 2.3 0.8 0.9 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Slide 56: Our key messages for today
Our key messages for today €) ach = foe con PRP is a world first PIC is the market leader = Approvals in US and Clear multi-year Financially that can transform uniquely positioned key export markets commercialisation — transformative for the porcine industry to deliver PRP making good progress plans
Slide 57: Pioneering animal genetic improvement to help nourish the world
Pioneering animal genetic improvement to help nourish the world Genus