Ginkgo Bioworks Holdings, Inc. · NYSE:DNA
Ginkgo Bioworks — Q4 2022 Earnings Presentation
39 slides from Ginkgo Bioworks's earnings presentation, Mar 1, 2023
Slide 1: Grow with Ginkgo: 2022 Update & Business Review
GINKGO BIOWORKS Grow with Ginkgo 2022 Update & Business Review March 1, 2023
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation, the conference call and webcast may contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, strategies, current ‘expectations, operations, anticipated results of o
Slide 3: Agenda
Agenda Introduction Jason Kelly, Co-Founder and CEO 2022 Full Year Financial Update Mark Dmytruk, CFO Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development Property of Ginkgo Bioworks — 3 $2) 2022 UPDATE & BUSINESS REVIEW
Slide 4: Our mission
Our mission Make biology easier to engineer
Slide 5: Customers outsource their cell engineering to Ginkgo's platform
Property of Ginkgo Bioworks — 5 Customers outsource their cell engineering to 2022 UPDATE & BUSINESS REVIEW Ginkgo’s platform
Slide 6: Ginkgo invests in automation scale that customers don't have in house
invests in automation scale that our customers don’t have in house e 550K+ sq ft. of facilities e@ 1,200+ FTE e Continuous improvement of capabilities and scale = w > a a o 0) a z a =) a 8 = z fa) a =) Q qQ ° 1
Slide 7: Customers sign up to access unique scale in both Foundry and Codebase
Customers sign up to access unique scale in both Foundry and Codebase Foundry (Automation) << A Foundry scale economic allows us to take We can invest in both more shots on goal Foundry and Codebase Daily Stain Tests: Measuring the Output ofthe Platform scale to increase success 100, 000000 rate of
Slide 8: We increased our rate of new program additions especially in biopharma
We increased our rate of new program additions especially in biopharma and diversified our downstream value share in 2022 Industry Mix Downstream Value Mix New Program Launch Trajectory . ry » — £ 4 covermrert Milestones = o a Pea fee Milestones + Royalties 5 : 3 g : ECM Royaltios Ao 3 7 Food & > ae
Slide 9: Agenda
Agenda 2022 Full Year Financial Update Mark Dmytruk, CFO Property of Ginkgo Bioworks — 9 $2) 2022 UPDATE & BUSINESS REVIEW
Slide 10: Cell Engineering Highlights
Cell Engineering Highlights New Programs Current Active Programs Total Active Customers - r _ a = 7 7 11 i 1 A; 7 = = a a 7 Q4 2021 Q4 2022 FY2021 FY2022 Q4 2021 Q4 2022 FY2021 FY2022 Q4 2021 Q4 2022 FY2021 FY2022 Cell Engineering Revenue ($M)" by Party Cell Engineering Revenue ($M) by Type 27% 27%
Slide 11: Biosecurity Highlights
Biosecurity Highlights Biosecurity Revenue ($M) $147 $114 $100 $43 $42 $45 $22 $22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22) Q2'22 Q3'22 Q4'22 Biosecurity Gross Profit Margin 48% 42% 42% A1% 36% 33% 10% Q1'21 Q2'21 Q3'21 Q4'21. Q1'22 Q2'22 Q3'22 Q4'22 Concentric’s pathogen monitoring network has delivered test
Slide 12: 2022 Financial Summary
2022 Financial Summary In millions of USD except new programs and % YoY New programs launched Revenue: Cell Engineering Biosecurity Total revenue Biosecurity cost of sales Research and development (excl. SBC) General and administrative (excl. SBC) Total operating expenses (excl. SBC) Stock-based com
Slide 13: 2023 Full Year Outlook
2023 Full Year Outlook In millions of USD Historical except new programs and % YoY FY2020 FY2021 FY2022 = (21-22) New Programs 18 31 59 90% Revenue Cell Engineering $59 $113 $144 27% Services $59 $86 $106 23% Downstream Value $1 $27 $38 40: Biosecurity $17 $201 $334 66% Total Revenue $77 $314 $478 5
Slide 14: #1 focus in 2023 is improving efficiency in converting platform output
#1 focus in 2023 is improving efficiency in converting platform output into program progress Key Drivers of Risk / Opportunity Demand Driven Capacity Driven A e Program ramp: In 2022 we got faster at launching and ramping programs; this is key as we plan to increase the number of new programs we add
Slide 15: Agenda
Agenda Strategic Review Jason Kelly, Co-Founder and CEO Property of Ginkgo Bioworks — 15 $2) 2022 UPDATE & BUSINESS REVIEW
Slide 16: We believe...
We believe... 1 While hard to forecast, downstream value share is an important component of our model Over time, we expect downstream value share to be the bulk of our revenue and more recurring in nature; we are laying the foundation for that future today 2 The inflection in our growth in biopharma
Slide 17: We believe...
We believe... 1 While hard to forecast, downstream value share is an important component of our model Over time, we expect downstream value share to be the bulk of our revenue and more recurring in nature; we are laying the foundation for that future today 2 The inflection in our growth in biopharma
Slide 18: Diversity of customers, markets, and revenue streams is our strength
Diversity of customers, markets, and revenue streams is our strength Mix of Current Active Programs By Partnership Type By Industry Program Economics Cell Engineering Services Revenue®) Growth driven entirely by third parties as Ginkgo is penetrating more traditional platform ventures and structured
Slide 19: Downstream value structure is influenced by industry, customer, and macro environment
Downstream value structure is influenced by the industry, customer, and macro environment Sources of Downstream Value Downstream Value Shifting Towards Milestones & Royalties Royalties By Milestones . . Equity e The most common way we negotiate downstream value with new customers Royalty rates vary
Slide 20: While hard to forecast, downstream value is a significant source of long-term value
While hard to forecast, we believe downstream value is a significant source of long-term value Royalties Milestones Equity < & 3 A o g 4 2 ® Longer Shorter Royalty rates and time to market vary by vertical and product = Pharma - Discovery ———= =— Ag — Pharma - Process Optimization .__ Ind. Biotech -
Slide 21: Actual value to Ginkgo driven by technical and commercial success probabilities
Actual value to Ginkgo will be driven by the probabilities of both technical and commercial success Royalties Milestones Equity We’ve generated royalty and legacy product supply revenue from several programs $1.0M $0.8M $0.5M $0.3M so.om — 2020 2021 2022 Royalty Revenues Royalty Revenues represent p
Slide 22: Economics of an illustrative biopharma discovery program
Bringing it all together: economics of an illustrative biopharma discovery program Aggregate royalties: $400 — $950 million A Biopharma discovery programs tend Milestones: Hypothetical product assumes: $1.5 billion peak sales, 3-7% royalty rate, to have a relatively high value $100 million no price
Slide 23: We believe...
We believe... 1 While hard to forecast, downstream value share is an important component of our model 2 The inflection in our growth in biopharma is a key indicator of success Ginkgo’s biopharma traction is an important marker of our technical and commercial credibility and is creating runway for ro
Slide 24: Ginkgo is signing up biopharma customers across many modalities
Ginkgo is signing up biopharma customers across many modalities (i.e. types of drugs) Cell Therapy Gene Therapy Small Molecule Biologics Microbiome RNA Tx and Vaccines Discovery Leading CGT . oS : SOMATA platform company a Bee ices she Seleca MiCROBA “partner Internal platfo Confidential j L ° — rat
Slide 25: Ability to earn downstream value depends on our relative technical advantage
Both our ability to earn downstream value and sell into sophisticated end markets depend on our relative technical advantage Ginkgo has many tools to drive economic value... e Upfront fees (Cell Engineering Services Revenue)” e Royalties, milestones, and equity (Downstream Value Share)” ...but our r
Slide 26: We're finally opening up the biopharma market growth opportunity
We’re finally opening up the biopharma market growth opportunity Market Opportunity Ginkgo has the opportunity to both grow with emerging markets and penetrate large existing R&D budgets Market Size Ginkgo penetration Market growth can accelerate when biological solutions become cost competitive wit
Slide 27: We believe...
We believe... 1 2 3 While hard to forecast, The inflection in our growth 2023 marks the beginning downstream value share in biopharma is a key of biosecurity as a is an important component _ indicator of success recurring infrastructure of our model service We expect the diversification of our produ
Slide 28: COVID response efforts created tools that may become backbone of biosecurity infrastructure
Our COVID response efforts helped us create tools that may become the backbone of a more robust biosecurity infrastructure » Revenue Mix Biosecurity is becoming a national security priority both domestically and internationally NATIONAL BIODEFENSE Building on COVID-19 surveillance infrastructure, in
Slide 29: Biosecurity business transitioning to a more recurring, subscription-based model
The biosecurity business is transitioning and we aim to build a more recurring, subscription-based model COVID-19 Monitoring Programs === Longer-term Biosecurity Infrastructure cok = oe OR oon 0° fon je} x0 / {83 80 (aS a mm + ae GUL a 233 Key Supply Staffing Couriers Labs Sequencing Eraser ‘J eu ea
Slide 30: We envision a bio-radar capable of serving as a global solution
Property of Ginkgo Bioworks — 30 We envision a “bio-radar” capable of serving as a global solution International Expansion Market Leadership Non-exhaustive; some partnerships remain confidential Ginkgo Bioworks and XpresCheck Expand CDC's Traveler-Based Genomic Surveillance Program to Detect Influenza
Slide 31: Let's grow the world we want to see
Slide 32: Agenda: Q&A Session
Agenda Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development Property of Ginkgo Bioworks — 32 $2) 2022 UPDATE & BUSINESS REVIEW
Slide 33: Appendix
APPENDIX
Slide 34: Cell Program Counts
Cell Program Counts New Programs Current Active Programs Cumulative Programs Three Months Ended December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 20 10 SY 31 96 60 112 71 164 105 164 105 New Programs: New Programs represent the number of unique programs commenced within the reporting
Slide 35: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Twelve Months Ended In millions of USD December 31, December 31, 2022 2021 2022 2021 Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders $176.5) $ (1,600.7) $ (2,104.9) $ (1,830.0) Interest income 4) (0.5) (20.3) (0.8) Interest expen
Slide 36: Stock-Based Compensation
Stock-Based Compensation In millions of USD, except % YoY Three Months Ended December 31, Twelve Months Ended December 31, 2022 2021 % YoY 2022 2021 % YoY Total Stock-Based Compensation $111.2 $ 1,672.8 (93%) $ 1,940.9 $ 1,687.6 15% Amount included in Research and Development expenses: 68.2 930.3 (9
Slide 37: Cell Engineering Revenue
Cell Engineering Revenue” In millions of USD, except % of Total Three Months Ended December 31, Twelve Months Ended December 31, 2022 % of Total 2021 % of Total 2022 =% of Total 2021 = % of Total Related Parties $7.3 14% $10.4 30% $38.8 27% $47.2 42% Third Parties 46.0 86% 237; 70% 104.9 73% 65.8 58
Slide 38: Segment Information
Segment Information In millions of USD, except % YoY Revenue: Cell Engineering Biosecurity Total Revenue Segment cost of revenue: Biosecurity Segment research and development expense: Cell Engineering Biosecurity Total segment research and development expense Segment general and administrative expen
Slide 39: Share Supplement
Property of Ginkgo Bioworks — 39 Share Supplement Illustrative Fully-Diluted Share Count Shares in millions Basic Shares (1) 1,913.0 RSUs (2) 134.4 Options (Treasury-stock method) (3) 9.0 2022 UPDATE & BUSINESS REVIEW Fully-Diluted Shares 2,056.4 Memo: Remaining Earnout Shares Outstanding (4) 156.8
Ginkgo Bioworks Holdings — Q4 2022 Earnings Presentation on 6ix