24 slides from Arcticzymes Technologies Asa's earnings presentation, Jan 30, 2020
Slide 1: Q4 2019 Presentation
Q4 2019 Presentation 30.01.2020, Oslo
Slide 2: Agenda
Agenda • Recap on New Strategic Direction • Highlights • Q4 Achievements • Deliverables 2019 • ArcticZymes Update • BetaGlucans Update • Q4 Financials • Outlook for 2020 2
Slide 3: Recap on New Strategic Direction
Recap on New Strategic Direction From 10 Dec 2019 Investor Update Meeting
Slide 4: No. 1 Strategic Goal: All About Profitability
No. 1 Strategic Goal: All About Profitability Focus on the right things Customer Excellence Change course Drives towards profitability sustainable profit Main Strategic Focus – ArcticZymes Fuels How? shareholder value Why? 4
Slide 5: Future direction of Biotec Pharmacon
Future direction of Biotec Pharmacon Main Focus Biotec BetaGlucans ArcticZymes Animal Health Consumer Health SBG (Adjuvant) Woulgan Profitable Profitable Profitable Non-commercial Loss maker B2B & OEM sales B2B product sales B2B product sales Research service Distributor & & distributors & distribut
Slide 6: Highlights
Highlights
Slide 7: Highlights Q4 2019
Highlights Q4 2019 Sales & Gross profit • Positive EBITDA with NOK 4.6 million (1.8)* 25,000 Sales Gross profit • Gross profit improved 27% to NOK 18.1 million (14.2)* 20,000 • ArcticZymes had Q4 2019 sales of NOK 16.3 million (10.7) growing by 52% 15,000 • Net Cash-flow Q4 was NOK 9.2 million (3.5)
Slide 8: Deliverables 2019
Deliverables 2019 Overall sales growth in Group – 13%* Organic growth in ArcticZymes – 40% Significant reduction in cash consumption – 0.4 MNOK Renewed clinical trial agreement with MSKCC. Part of 2020 goal *Excludes “Assets held for sale” - Woulgan 8
Slide 9: ArcticZymes
ArcticZymes wet). BIOTEC So PHARMACON
Slide 10: ArcticZymes Updates
ArcticZymes Updates Commercial achievements • Quarterly performance: highest sales – 16.3 MNOK • Annual performance: ✓ Annual sales growth 40% ✓ Achieved a double-digit EBITDA – 14.3 MNOK • Key attributors to growth: ✓ Salt Active Nuclease (SAN) product portfolio – represents 25% sales ✓ Molecular b
Slide 11: ArcticZymes Updates
ArcticZymes Updates Innovations • ArcticZymes launched its 7th product of the year > M-SAN • ArcticZymes and Cell and Gene Therapy Catapult presented a scientific poster at the “Cell Therapy Manufacturing & Gene Therapy Congress 2019” in Amsterdam • Growing portfolio of new enzyme leads in the pipel
Slide 12: ArcticZymes Updates
ArcticZymes Updates Operations • Scaling operations to maintain security of supply as we grow with our customers and expanding product range • Implemented a second production line during Q4 • Several products are undergoing process development to scale up their production in order to meet future dem
Slide 13: Inorganic Growth Initiatives
Inorganic Growth Initiatives Objectives • Strengthens brand position as one-stop- shop via deeper and broader offering • Accelerate opportunities to grow sales • Enhance operational and innovation capacity • Achieve a central EU base Status • Q4: Advanced discussions with several companies • Expect
Slide 14: BetaGlucans
BetaGlucans Woulgan®, Adjuvant, Consumer Health, Animal Health
Slide 15: Woulgan Updates
Woulgan Updates Strategic • Decision to divest • Customer reaction towards decision to divest Woulgan has been mixed • Positivity around Woulgan with potential consultants and interested parties Commercial • Germany is still a key market and main driver for revenues • A new distribution agreement wa
Slide 16: Other BetaGlucans segments
Other BetaGlucans segments Adjuvant Biotec continues discussions with the vaccine owner, Y-Mabs, and MSKCC in translating the research studies into commercial value Consumer Health • Achieved growth in sales of M-Gard® in Q4 2019 • Growth is driven by new customers • Expanding “funnel” of potential
Slide 17: Q4 Financials
Q4 Financials ites. BIOTEC ret” PHARMACON
Slide 18: Cash flow explained by underlying performance
Cash flow explained by underlying performance Net cash position 40,000 Amounts in NOK 1.000' Fourth quarter changes in cash of 9.2 MNOK: 35,000 • 14.7 (17.6) MNOK in short-term receivables. 30,000 • 17.6 (17.3) MNOK in short-term payables. 25,000 20,000 • Cash Flow from operations 12.7 MNOK (8.7 MNO
Slide 19: Sales for Q4 continues positive trend
Sales for Q4 continues positive trend Biotec revenues per segment Amounts in NOK 1.000' 17,000 Segment Q4 Sales Animal & Consumer Health ArcticZymes ArcticZymes MNOK 16.3 (10.6) 12,000 Woulgan Animal & Consumer Health MNOK 5.7 (8.0) 7,000 Woulgan® MNOK 1.1 (0.9) Group MNOK 23.1 (19.5) 2,000 Q1 2018
Slide 20: EBITDA all time high
EBITDA all time high EBITDA Operating Expenses Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2018 2018 2018 2019 2019 2019 2019 6,000 Amounts in NOK 1.000' Personell expenses Property, plant and 4,000 equipment IT 2,000 External services 0 Marketing and sales License, patent and -2,000 trademark Other operating expe
Slide 21: ArcticZymes performance
ArcticZymes performance Enzymes Q4 YTD • Sales are up by 5.7 MNOK compared to same 2019 2018 2019 2018 (Amounts in NOK 1.000) quarter last year. Sales revenues 16 336 10 643 45 192 32 457 Operating expenses -8 556 -8 508 -33 634 -28 381 • 2019 sales have increased by 12.7 MNOK or EBITDA 9 056 3 018
Slide 22: BetaGlucans performance
BetaGlucans performance BetaGlucans Q4 YTD • Woulgan had a weaker quarter compared to (Amounts in NOK 1.000) 2019 2018 2019 2018 Sales revenues 5 656 8 004 24 245 31 517 the previous quarters with 1.1 MNOK in sales Gross profit 1 845 3 535 10 040 12 779 Operating expenses -5 056 -5 689 -18 152 -20 7
Slide 23: Outlook
Outlook
Slide 24: Outlook 2020
Outlook 2020 Full speed in executing new strategic direction No. 1 goal > drive whole business into profitability in 2020 Organisation realigned to support ArcticZymes which represents the main strategic and high growth business ArcticZymes 1st acquisition expected during the 1st half Operate BBG as