Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Q2 2024 Earnings Presentation
20 slides from Arcticzymes Technologies Asa's earnings presentation, Aug 22, 2024
Slide 1: A Platform for Long-term Growth
August 22, 2024 A Platform for Long- CEO Michael Akoh CFO Børge Sørvoll term Growth Q2 2024
Slide 2: Agenda
Agenda 1 Overview, highlights & strategic priorities 2 Sales update 3 Biomanufacturing segment update 4 Financials 5 Q&A
Slide 3: Overview
Overview Overview AANorwegian Norwegianbiotech biotech with with growth growth potential potential A provider of novel Customers are life World class products and Targeting segments with Worldclass Products enzymes for advanced considerable growth therapies and molecular Segment & Customers science
Slide 4: Highlights Q2 2024
Highlights Q2 2024 Achieved Presentation at All time high Q1 revenue ASGCT on SAN number of 27.5 MNOK HQ GMP orders (28.2 MNOK) EBITDA Significant Performance progress in CDMO 2.6 MNOK / Distribution (6.8 MNOK) partnership talks Building a Platform for Long-term Growth
Slide 5: Strategic priorities
Strategic priorities Building a platform for long term growth – the journey has started Short Term Long Term 1 Continue journey to become more market driven 1 Build Advanced therapies biomanufacturing pipeline Commercialization RNA enzymes & NextGen SAN Channel development through partners Scientifi
Slide 6: Sales Update Q2 2024
Sales Update Q2 2024
Slide 7: Sales: Combined sales
Sales Trend continues to be flat but positive indicators for long term growth Sales combined 40 35 30 Combined sales 25 Sales in MNOK 20 ✓ Quarterly sales of 26.5 MNOK (28.2 MNOK) ✓ Slight decrease from Q1 2024 15 10 ✓ 52% of sales came from EMEA region, whereas US had 45% and APAC 3% 5 ✓ Similar to
Slide 8: Sales per area: Molecular Tools
Sales per area Sales per area Commercial 20 18 16 14 12 Sales in MNOK Molecular Tools 10 8 ✓ Quarterly sales 14.6 MNOK ✓ Accounts for 55% of total Q2 sales 6 ✓ Expect growth especially within Endonuclease and 4 Polymerase 2 0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 8
Slide 9: Sales per area: Biomanufacturing
Sales per area Sales per area Commercial 20 18 16 14 12 Sales in MNOK Biomanufacturing 10 8 ✓ Quarterly sales 11.9 MNOK 6 ✓ Accounts for 45% of total Q2 sales 4 ✓ The US biotech market continued to be challenging but orders starting to pick up 2 ✓ SAN HQ GMP picking up in Q2 sales 0 Q1 2023 Q2 2023
Slide 10: Orders
Orders Uptick in orders shipped in Q2 ✓ YoY orders shipped up 18.9% ✓ QoQ orders shipped up 29.7% ✓ Total orders shipped and Biomanufacturing orders shipped at all-time high levels ✓ Driven by smaller (value) orders from existing and new customers, fewer than normal larger orders ✓ Overall, order vo
Slide 11: Biomanufacturing Update
Biomanufacturing Update
Slide 12: Penetrating the Advanced Biomanufacturing Market
Penetrating the Advanced Biomanufacturing Market Ascending the ladder for long-term growth Go to Market Value Proposition Channel decision √ Application & Rival Data, patents Tangible benefits of Distribution Partnership Regulatory switching to SAN √ Selling the right product Compliance Publications
Slide 13: SAN OEM Partnership Update
SAN OEM Partnership Update Why Progress Outcome • Historical OEM company with • 2 partners progressing • At least 1 multi-year supply limited reach to the same agreements expected market as our competition • Requirement will be GMP grade nuclease • Expected volume-based • Identified large companies
Slide 14: Partnership update - CDMO
Partnership update - CDMO Proceeding according to plan Become part of a CDMO’s platform CDMO platform provider partnership deal is progressing with leading GCT CDMO Goal is to become standard nuclease applied in all new projects at CDMO Revenue from platform partnership expected Q4/Q1 Gradual ramp u
Slide 15: Expenses & Profitability
Expenses & Profitability
Slide 16: Profitability and expenses
Profitability and expenses Expense development according to plan Sales & EBITDA Q2 YTD 2024 2023 2024 2023 Sales 35 Sales revenues 26,5 28,2 56,5 59,4 EBITDA Other revenues 1,0 0,0 1,1 0,0 30 Sum revenues 27,5 28,2 57,6 59,4 25 Cost of materials -1,5 -0,7 -2,5 -8,1 Change in inventory -0,5 -0,2 -0,9
Slide 17: …but Q2 also impacted by other items
…but Q2 also impacted by other items One-offs and extraordinary Q2 2024 2023 Sales revenues 26,5 28,2 Other revenues 1,0 0,0 • Q2 2024 impacted negatively by MNOK 0.6 Sum revenues 27,5 28,2 related to disposal of expired Elisa kits. Elisa kits are acquired by 3rd party and does not Cost of materials
Slide 18: Cash flow and short-term investments
Cash flow and short-term investments - 1.7 MNOK in cash flow for Q2* 280 30 Short term investments (STI) Net Cash (MNOK) 25 260 Changes in Cash and STI (MNOK) 20 240 Changes in cash and STI (MNOK) 15 Net Cash (MNOK) 220 10 5 200 0 180 -5 160 -10 140 -15 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 202
Slide 19: Outlook
Outlook • Long term market fundamentals are intact, and there are a significant number of new drug approvals within CGT – SAN growth • Partnership deals with CDMO and distribution partners are important inflection points going forward for revenue growth • Within the next 12 months two new GMP grade
Slide 20: Thank you Q&A
Thank you Q&A arcticzymes.com
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