Ginkgo Bioworks Holdings, Inc. · NYSE:DNA
Ginkgo Bioworks — Q1 2023 Earnings Presentation
47 slides from Ginkgo Bioworks's earnings presentation, May 10, 2023
Slide 1: Grow with Ginkgo: Q1 2023 Update & Business Review
Grow with Ginkgo Q1 2023 Update & Business Review May 10, 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation, the conference call and webcast contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, strategies, including with respect to our balance sheet and cash runway, ac
Slide 3: Agenda
Property of Ginkgo Bioworks — 3 Agenda Introduction Jason Kelly, Co-Founder and CEO Q1 2023 Financial Update Mark Dmytruk, CFO Q1 2023 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 4: Our mission is to make biology easier to engineer
Our mission is to make biology easier to engineer Property of Ginkgo Bioworks — 4 “I'm not spending [our balance sheet] on clinical trials or new food products or ag products – that's all of you all – I'm spending that on platform Q1 2023 UPDATE & BUSINESS REVIEW technology to make it easier for you
Slide 5: Our breadth of experience is a competitive advantage
Property of Ginkgo Bioworks — 5 Our breadth of experience is a competitive advantage Non-exhaustive PHARMA INDUSTRIAL BIOTECHNOLOGY AGRICULTURE LARGE COMPANIES Q1 2023 UPDATE & BUSINESS REVIEW STARTUPS
Slide 6: Q1 2023 UPDATE & BUSINESS REVIEW
Watch Now Q1 2023 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 6
Slide 7: Downstream value
Property of Ginkgo Bioworks — 7 Downstream value Customers will always want things better, faster, and cheaper. We aim to deliver all three. Q1 2023 UPDATE & BUSINESS REVIEW Our platform improves with scale so when we add a new customer it benefits other customers on the platform.
Slide 8: Agenda
Property of Ginkgo Bioworks — 8 Agenda Introduction Jason Kelly, Co-Founder and CEO Q1 2023 Financial Update Mark Dmytruk, CFO Q1 2023 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 9: Cell Engineering Highlights (Unaudited)
Property of Ginkgo Bioworks — 9 Cell Engineering Highlights (Unaudited) New Programs Current Active Programs Total Active Customers 52% Government Pharma & Biotech 88% 18% Food & Agriculture Industrial & Environmental Q1 2023 UPDATE & BUSINESS REVIEW Consumer & Technology (1) (1) Cell Engineering Re
Slide 10: Biosecurity Highlights (Unaudited)
Property of Ginkgo Bioworks — 10 Biosecurity Highlights (Unaudited) Biosecurity Revenue ($M) 6 North 15 America Europe 26 Asia 20 Africa Q1 2023 UPDATE & BUSINESS REVIEW Countries in which Biosecurity Gross Profit Margin Concentric has active programs, pilots, or MoUs 3 South America # Countries of o
Slide 11: Q1 2023 Financial Summary (Unaudited)
Property of Ginkgo Bioworks — 11 Q1 2023 Financial Summary (Unaudited) In millions of USD Three Months Ended March 31, except new programs and % YoY 2023 2022 % YoY New programs launched 13 11 18% Revenue: Cell Engineering ⁽¹⁾ $ 34 $ 21 59% Biosecurity 47 147 (68%) Total revenue 81 168 (52%) Biosecu
Slide 12: Reaffirming 2023 Full Year Outlook
Property of Ginkgo Bioworks — 12 Reaffirming 2023 Full Year Outlook In millions of USD Historical Outlook except new programs and % YoY FY2020 FY2021 FY2022 FY2023 New programs 18 31 59 100 Revenue Q1 2023 UPDATE & BUSINESS REVIEW Cell Engineering(1) $59 $113 $144 $175+ Services $59 $86 $106 $175+ Dow
Slide 13: Agenda
Property of Ginkgo Bioworks — 13 Agenda Introduction Jason Kelly, Co-Founder and CEO Q1 2023 Financial Update Mark Dmytruk, CFO Q1 2023 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 14: We believe: customers increasingly outsource cell engineering R&D
Property of Ginkgo Bioworks — 14 We believe… 1 2 3 Customers are We can compete in Technology is rocking our increasingly choosing specialized markets with a world. It is imperative that to outsource cell general purpose platform we treat it with care. engineering R&D Q1 2023 UPDATE & BUSINESS REVIE
Slide 15: We believe: customers increasingly outsource cell engineering R&D
Property of Ginkgo Bioworks — 15 We believe… 1 2 3 Customers are We can compete in Technology is rocking our increasingly choosing specialized markets with a world. It is imperative that to outsource cell general purpose platform we treat it with care. engineering R&D Q1 2023 UPDATE & BUSINESS REVIE
Slide 16: Ginkgo customers have spanned industries and maturity
Property of Ginkgo Bioworks — 16 Ginkgo customers have spanned industries and maturity Non-exhaustive PHARMA INDUSTRIAL BIOTECHNOLOGY AGRICULTURE LARGE COMPANIES Q1 2023 UPDATE & BUSINESS REVIEW STARTUPS
Slide 17: Why are companies outsourcing to our platform?
Property of Ginkgo Bioworks — 17 Brian VanDahl — Novo Nordisk Head of Global Research Technologies “Science is currently undergoing a revolution, driven by scientists being Why are companies able to ask bigger questions by the combination of expanded data sets and outsourcing to our groundbreaking t
Slide 18: Customers are outsourcing to us because we help with their most important problems
Property of Ginkgo Bioworks — 18 Customers are outsourcing to us because we are helping them with their most important problems Get More Data per R&D Dollar Access Existing Large Data Asset and Why are companies Scientific Experts to Help Navigate it outsourcing to our Q1 2023 UPDATE & BUSINESS REVIE
Slide 19: More data per R&D dollar
Property of Ginkgo Bioworks — 19 More Data Democratizing access to large data set creation Per R&D Dollar Foundry scale allows customers to get further and learn more per dollar Marcus Schindler — Novo Nordisk Chief Scientific Officer “We are constantly evaluating our scientific processes for opportunit
Slide 20: Tap our existing large and growing data asset
Property of Ginkgo Bioworks — 20 Access to Tap our Existing Large and Growing Data Asset Data And scientific experts to help you navigate it Givaudan ~2 Bn genes Research Director "The breadth of existing assets and data is very Novel protein valuable for us. We're looking forward to additional examp
Slide 21: Launch work fast with capacity already in place
Property of Ginkgo Bioworks — 21 Launch Launch Work Fast with Capacity Already in Place Faster Get started on large scale work in weeks, not months Trent Munro — Microba SVP Therapeutics Nicholas Ohler — Lygos Chief Technology Officer “Microba's project with Ginkgo has really accelerated our progress
Slide 22: Save laboratory CapEx
Property of Ginkgo Bioworks — 22 Save Save Laboratory CapEx CapEx Startups can avoid spending on overpriced lab space and overpriced lab equipment Jasmina Aganovic — Arcaea Chief Executive Officer “Arcaea was able to begin lab work in weeks without building out our own biotech capabilities but more im
Slide 23: Replace fixed cost with variable cost
Replace Property of Ginkgo Bioworks — 23 Fixed with Replace Fixed Cost with Variable Cost Variable Costs Invest in R&D just when it’s needed and benefit from Ginkgo’s marginal costs Kristen Albright — Prokarium Chief Executive Officer “As an early-stage biotech, Prokarium values prioritization and agil
Slide 24: We believe: we can compete in specialized markets
Property of Ginkgo Bioworks — 24 We believe… 1 2 3 Customers are We can compete in Technology is rocking our increasingly choosing specialized markets with a world. It is imperative that to outsource cell general purpose platform we treat it with care. engineering R&D Q1 2023 UPDATE & BUSINESS REVIE
Slide 25: As our capabilities mature, we can add new services over time
Property of Ginkgo Bioworks — 25 As our capabilities mature, we can add new services over time Introduced 4 new services at Ferment Ginkgo Microbe Services NEW ✨ STRAIN IMPROVEMENT AT GINKGO Ginkgo Cell Therapy Services NEW ✨ Learn more: Virtual Event May 31 Q1 2023 UPDATE & BUSINESS REVIEW NEW ✨ WA
Slide 26: Ginkgo Microbe Services
Property of Ginkgo Bioworks — 26 Ginkgo Microbe Services NEW ✨ Ginkgo Microbe Services PLATFORMS Strain Optimization and Strain Discovery Deployment Engineering ● Broad capabilities and asset libraries in microbial strain engineering enables applications across industrial biotechnology, agriculture,
Slide 27: Ginkgo Cell Therapy Services
Property of Ginkgo Bioworks — 27 Ginkgo Cell Therapy Services NEW ✨ Ginkgo Cell Therapy Services Learn more: Virtual Event May 31 PLATFORMS Regulatory Elements Novel CAR Designs iPSC engineering Agile HTS at scale underlies all work FOCUS AREAS Q1 2023 UPDATE & BUSINESS REVIEW ● Promoters induced by
Slide 28: Ginkgo AAV Gene Therapy Services
Property of Ginkgo Bioworks — 28 Ginkgo AAV Services NEW ✨ Ginkgo AAV Gene Therapy Services PLATFORMS Inverted Terminal Repeat Regulatory Elements Capsid Engineering Stable Cell Lines (ITR) Engineering FOCUS AREAS ● Cell-type specific promoters ● Capsid design using ● Strong internal DNA synthesis ●
Slide 29: AAV capabilities enhanced with acquisition of StrideBio
Property of Ginkgo Bioworks — 29 Ginkgo AAV Services NEW ✨ Ginkgo AAV Gene Therapy Services Ginkgo’s AAV Gene Therapy capabilities enhanced with acquisition of StrideBio Capsid Engineering Q1 2023 UPDATE & BUSINESS REVIEW ● Capsid design using rational and unbiased approaches ● Pooled and arrayed sc
Slide 30: Ginkgo RNA Therapeutics Services
Property of Ginkgo Bioworks — 30 Ginkgo RNA Therapeutics Services NEW ✨ Ginkgo RNA Therapeutics Services RNA Therapeutics Services How to dial in (cell-specific) expression strength? Codon Modified Translation Structure Usage Nucleotides Elements RNA Sequence Discovery Circularization Miniaturized cir
Slide 31: #1 request from customers is to help technically de-risk cell engineering
Property of Ginkgo Bioworks — 31 Keith Kleeman — Optimvia Chief Executive Officer “Ginkgo possessed a combination of technical capabilities that other partners lacked. While there were several good choices for enzyme engineering, Ginkgo also had the chassis component, as well as the automation of the
Slide 32: Offering customers a truly differentiated value proposition
Property of Ginkgo Bioworks — 32 As our capabilities advance, we can offer customers a truly differentiated value proposition Where can we do this? Ginkgo Enzyme Services “Foundry friendly” areas of work Enzyme Discovery Service SUCCESS-ONLY PAYMENT (lower technical overhead + mature workflows)... Enzy
Slide 33: We believe: security must be built into our tools
Property of Ginkgo Bioworks — 33 We believe… 1 2 3 Customers are We can compete in Technology is rocking our increasingly choosing specialized markets with a world. It is imperative that to outsource cell general purpose platform we treat it with care. engineering R&D Q1 2023 UPDATE & BUSINESS REVIE
Slide 34: We believe biosecurity is as critical as cybersecurity
Property of Ginkgo Bioworks — 34 We believe biosecurity is as critical as cybersecurity Just as the advent of the information age underscored the need for cybersecurity, the growth of the biotechnology sector and increasing infectious disease risks should spur significant investments in biosecurity C
Slide 35: Expanding the geographical breadth and diversity of biosecurity nodes
Property of Ginkgo Bioworks — 35 We are expanding the geographical breadth and diversity of nodes in our biosecurity network Expanding Geographic Footprint Diversifying Q1 2023 UPDATE & BUSINESS REVIEW Nodes of Collection communities & airports & ports of crisis & low-resource agricultural sites hos
Slide 36: Biosecurity platform transitioning towards longer-term infrastructure
Property of Ginkgo Bioworks — 36 Our flexible biosecurity platform is transitioning towards longer-term infrastructure, which we expect will enable more recurring revenue mix New nodes Collection Platform (strategic international collection sites) VALUABLE DIVERSE NODES INSIGHTS ATTRACT DRIVE PLATFOR
Slide 37: Let's grow the world we want to see
Let’s grow the world we want to see
Slide 38: Agenda
Property of Ginkgo Bioworks — 38 Agenda Introduction Jason Kelly, Co-Founder and CEO Q1 2023 Financial Update Mark Dmytruk, CFO Q1 2023 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 39: Appendix
APPENDIX
Slide 40: Cell Program Counts
Property of Ginkgo Bioworks — 40 Cell Program Counts Three Months Ended March 31, LTM (1) 2023 2022 2023 New Programs 13 11 61 Current Active Programs 97 64 121 Cumulative Programs 177 116 177 Q1 2023 UPDATE & BUSINESS REVIEW New Programs: New Programs represent the number of unique programs commenc
Slide 41: Adjusted EBITDA Reconciliation (Unaudited)
Property of Ginkgo Bioworks — 41 Adjusted EBITDA Reconciliation (Unaudited) In millions of USD Three Months Ended March 31, 2023 2022 (as adjusted)* Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders $ (205.0) $ (590.5) Interest income, net (14.5) (0.2) Income tax expense (benefit)
Slide 42: Segment Information (Unaudited)
Property of Ginkgo Bioworks — 42 Segment Information (Unaudited) In millions of USD, except % YoY Three Months Ended March 31, 2023 2022 (as adjusted)* % YoY Revenue: Cell Engineering(1) $ 34 $ 21 59% Biosecurity 47 147 (68%) Total Revenue 81 168 (52%) Segment cost of revenue: Biosecurity 22 85 (74%
Slide 43: Cell Engineering Revenue (Unaudited)
Property of Ginkgo Bioworks — 43 (1) Cell Engineering Revenue (Unaudited) In millions of USD, except % of total Three Months Ended March 31, 2023 % of Total 2022 % of Total Related Parties $ 4.7 14% $ 13.5 63% Third Parties 29.4 86% 8.0 37% Cell Engineering Revenue $ 34.1 100% $ 21.5 100% Cash consi
Slide 44: Stock-Based Compensation (Unaudited)
Property of Ginkgo Bioworks — 44 Stock-Based Compensation (Unaudited) In millions of USD, except % YoY Three Months Ended March 31, 2023 2022 % YoY Total Stock-Based Compensation $ 75.2 $ 659.0 (89%) Amount included in Research and Development expenses: 47.5 266.3 (82%) Stock-Based Compensation 46.5
Slide 45: Stock Based Compensation Expense Supplement (Unaudited)
Property of Ginkgo Bioworks — 45 Stock Based Compensation Expense Supplement (Unaudited) As disclosed in our SEC filings, the vast majority of Ginkgo’s stock-based compensation expense since going public relates to the accounting treatment of RSUs granted prior to Ginkgo becoming a publicly traded co
Slide 46: Founder Selling Supplement
Property of Ginkgo Bioworks — 46 Founder Selling Supplement Ginkgo’s Founders currently own over 20% of the outstanding shares of Ginkgo, the vast majority of which are in Class B shares ● Class B shares are not freely tradable (must be converted to Class A) and are often not shown on automated data
Slide 47: Share Supplement
Property of Ginkgo Bioworks — 47 Share Supplement Illustrative Fully-Diluted Share Count Shares in millions Basic Shares (1) 1,929.0 RSUs (2) 197.1 Options (Treasury-stock method) (3) 7.1 Q1 2023 UPDATE & BUSINESS REVIEW Fully-Diluted Shares 2,133.2 Memo: Remaining Earnout Shares Outstanding (4) 156
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