Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Biotec Pharmacon — Q4 2018 Earnings Presentation
19 slides from Arcticzymes Technologies Asa's earnings presentation, Jan 30, 2019
Slide 1: Q4 2018 Presentation
Q4 2018 Presentation 30.01.2019, Oslo
Slide 2: Agenda
Agenda • Highlights • Q4 and 2018 • ArcticZymes • BetaGlucans • Woulgan® • Other BetaGlucans segments • Q4 & 2018 Financials • Outlook for 2019 2
Slide 3: Biotec Pharmacon
Biotec Pharmacon • Focused on specialized, novel enzyme and immunomodulating beta-glucan technology • Two divisions, driving revenues and cash generation across USA, Europe and Asia: • ArcticZymes develops, manufactures and commercializes novel recombinant enzymes for use in molecular research, In V
Slide 4: Highlights Q4 2018
Highlights Q4 2018 Sales & Gross contribution 25 000 • As forecasted, the growth in sales occurred in the Sales second half of 2018 20 000 Gross contribution • 2018 EBITDA deficit reduced with ~50% in comparison to 2017 due to focus on high margin 15 000 areas and rigid cost control • ArcticZymes ha
Slide 5: Delivered on 2018
Delivered on 2018 ✓Overall sales growth ✓Significant reduction in cash consumption ✓Organic growth in ArcticZymes while looking for inorganic growth opportunities ✓Review go-to market model for Woulgan® ✓Renewed clinical trial agreement with MSKCC 5
Slide 6: ArcticZymes
ArcticZymes wet). BIOTEC So PHARMACON
Slide 7: ArcticZymes Updates
ArcticZymes Updates • Commercial achievements • Achieved first ever double digit quarter – 10.6 MNOK in sales revenues • Signed two new supply agreements in Q4, securing long-term value, totalling five in 2018 • Innovation: • Launched a new formulation of our most popular IsoPolTM polymerase in resp
Slide 8: BetaGlucans
BetaGlucans Woulgan®, Adjuvant, Consumer Health, Animal Health
Slide 9: Status Woulgan®
Status Woulgan® • Finn Ketler started as new VP for the Woundcare business. Revised strategy approved for 2019. • 2018 results have been lower than expected, but showing positive signs in the second half of 2018 • A few distributors in Germany are pulling the sales, but more homecare companies are i
Slide 10: Adjusted Woulgan Strategy
Adjusted Woulgan Strategy ® • Telling the SBG® story of how it “activates the immune system” has become a priority, as a supplement to promoting Woulgan® in specific indications • Focus is on Woulgan® , with an increasing number of clinical studies that prove our case – niche by niche • A broader pr
Slide 11: Other BetaGlucans Segments
Other BetaGlucans Segments Over 20 years experience with immune-modulating beta-glucans Adjuvant study with MSKCC in New York: • A new clinical trial agreement was signed during Q4 2018 securing rights for possible inventions from the study being carried out • Study is now developed into a two-arm s
Slide 12: Q4 Financials
Q4 Financials ites. BIOTEC ret” PHARMACON
Slide 13: Positive Cash Flow from operations
Positive Cash Flow from operations Net cash position Amounts in NOK 1.000' Fourth quarter changes in cash of +3.5 MNOK 50 000 45 000 • 17.6 (14.4) MNOK in short-term 40 000 receivables 35 000 • 14.1 (16.9) MNOK in short-term payables 30 000 25 000 • Cash Flow from operations +4.5 MNOK 46 489 (-1.4 M
Slide 14: Record sales for ArcticZymes in Q4
Record sales for ArcticZymes in Q4 Biotec revenues per segment Amounts in NOK 1.000' 12 000 Animal & Consumer Health Segment Q4 Sales ArcticZymes Woulgan ArcticZymes MNOK 10.6 7 000 Animal & Consumer Health MNOK 8.0 Woulgan® MNOK 0.9 2 000 Group MNOK 19.5 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2
Slide 15: Solid quarter with improved EBITDA… again
Solid quarter with improved EBITDA… again EBITDA Operating Expenses Amounts in NOK 1.000' Personnel expenses Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Property, plant and 0 equipment IT -1 000 External services -2 000 Marketing and sales -3 000 License, patent and -4 000 tradem
Slide 16: ArcticZymes performance
ArcticZymes performance Enzymes Q4 YTD • Improvement of 1.9 MNOK in Q4 sales 2018 2017 2018 2017 (Amounts in NOK 1.000) compared to Q4 2017 – best quarter ever Sales revenues 10.643 8.757 32.457 31.628 Operating expenses -8.886 -8.432 -29.627 -29.856 • Operating expenses on annual basis EBITDA 2.640
Slide 17: BetaGlucans performance
BetaGlucans performance BetaGlucans Q4 YTD (Amounts in NOK 1.000) 2018 2017 2018 2017 • Sales continue to be driven by Animal Health Sales revenues 8.857 8.911 34.303 35.051 • Reduced expenses on an annual basis primarily Gross profit 4.229 2.997 15.511 13.169 Operating expenses -8.606 -8.468 -31.43
Slide 18: Outlook 2018
Outlook 2018 rf. a + a8. BIOTEC ret” PHARMACON
Slide 19: Outlook 2019
Outlook 2019 • Stronger Group position entering 2019 than before. • Management expect revenue growth in the two focus areas – ArcticZymes and Woulgan® to be strongest in H2 – whilst reducing cash consumption. • ArcticZymes – objectives are to grow business organically, launching new products, whilst