Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Q1 2024 Earnings Presentation
24 slides from Arcticzymes Technologies Asa's earnings presentation, May 8, 2024
Slide 1: Building a Platform for Long-term Growth: Q1 2024 update
May 8, 2024 Building a Platform for CEO Michael Akoh CFO Børge Sørvoll Long-term Growth Q1 2024 update
Slide 2: Agenda
Agenda 1 Overview, Highlights & Strategic Priorities 2 Sales Update 3 Portfolio Segment Updates 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 Q1 2024
Highlights Q1 2024 acib research Achieved Launch of partnership Q1 Sales SAN HQ GMP support by 30.0 MNOK COMET (31.2 MNOK) University of EBITDA Tübingen Performance M SAN HQ 2.3 MNOK publication (6.1 MNOK) 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 Current portfolio focus Advanced therapies biomanufact. segment pipeline • New GMP variants • RNA enzymes & NextGen SAN Relaunch of existing Molecular tools enzymes Develop/commercialize new
Slide 6: Sales Update Q1 2024
Sales Update Q1 2024
Slide 7: Sales per area Molecular Tools
Sales per area Commercial Sales per area 20 18 16 14 Molecular Tools 12 Sales in MNOK 10 ✓ Quarterly sales 18.3 MNOK 8 ✓ Accounts for 61% of total Q1 sales 6 ✓ Best quarter since Q1 2022 4 ✓ Facilitated by larger order that came in during Q1 instead of Q2 2 0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Slide 8: Sales per area Biomanufacturing
Sales per area Commercial Sales per area 20 18 16 14 Biomanufacturing 12 Sales in MNOK 10 ✓ Quarterly sales 11.7 MNOK 8 ✓ Accounts for 39% of total Q1 sales 6 ✓ The US biotech market continued to be challenging and impacted sales negatively 4 ✓ In discussion with several accounts for future needs 2
Slide 9: Combined sales
Sales Sales Trend continues to be flat 35 30 25 20 Combined sales MNOK 15 ✓ Quarterly sales of 30.0 MNOK (31.2 MNOK) ✓ Slight increase from Q4 2023 10 ✓ 2/3 of sales came from EMEA region, whereas US 5 only 1/3 (normal is 50/50 split) 0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 ✓ 25 new customers plac
Slide 10: Biomanufacturing Update
Biomanufacturing Update
Slide 11: Launched World's 1st: GMP-grade Salt Active Nuclease
Launched Worlds 1st: GMP-grade Salt Active Nuclease First orders received for SAN HQ GMP Launched Customers requesting Quality Dossiers & Supply Quotes SAN HQ GMP Sales Incentives Supporting Webinars Crystal structure of SAN HQ nuclease Sales Customer Launch Offers Activities New Business Dev employ
Slide 12: Penetrating the Advanced Biomanufacturing Market
Penetrating the Advanced Biomanufacturing Market Asending the ladder for long-term growth Go to Market Value Proposition Channel decision √ Application & Rival Data Tangible benefits of Selling the right product Regulatory to the right customer switching to SAN √ through the right channel Compliance
Slide 13: Joint Research Project with acib
Joint Research Project with acib Renowned research centre for industrial biotechnology Complements AZ research capabilities Project goal: Generate user-relevant application data for use of AZT nucleases in Bioprocessing Basis for scientific marketing content • Benchmarking data • Scientific contribu
Slide 14: Recent Publication
Recent Publication Compelling evidence supports our SAN portfolio at large scale Publ. concluded: • Nuclease treatment is “decisive” for optimizing yield • Benchmarked AZ vs key rival Denarase concluding M-SAN HQ is superior to Denarase • Performance (remaining DNA) • Speed (incubation time) • Cost
Slide 15: Molecular Tools Update
Molecular Tools Update
Slide 16: Customer Case with Revenue Potential
Customer Case with Revenue Potential A collaboration with a diagnostic company bringing low-cost cancer screening to market with AZ Proteinase Company Track Record Legacy Validation Milestones Well-funded with history History of collaboration. Validated with AZ Product validation: of moving fast to
Slide 17: Revenue development potential
Revenue development potential Past and future revenue - pending successful development and launch MNOK 20 18 16 14 12 10 8 6 4 2 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 17 MNOK
Slide 18: Expenses & Profitability
Expenses & Profitability
Slide 19: Organisational changes
Organisational changes Oslo site closed in Q1 Number of employees 70 Reduced number of employees in first quarter 60 Impact on R&D side of business 50 Administration 11 % R&D 40 32 % Corporate development 6% 30 Business development 20 and marketing 15 % 10 QA and 0 Operations 2020 2021 2022 2023 Q1
Slide 20: Profitability and expenses
Profitability and expenses Reducing expenses moving forward Q1 Sales & EBITDA 2024 2023 45 Sales revenues 30,0 31,2 Sales EBITDA Other revenues 0,0 0,0 40 Sum revenues 30,0 31,2 35 Cost of materials -1,0 -7,4 30 Change in inventory -0,3 5,4 Personnel expenses -18,0 -15,5 25 Other operating expenses
Slide 21: …but also impacted by other items
…but also impacted by other items One-offs and extraordinary Q1 2024 2023 • Q1 2023 impacted positively by MNOK 1.4 Sales revenues 30,0 31,2 Other revenues 0,0 0,0 due to reversal of option expense (-1.8) and Sum revenues 30,0 31,2 social security (+0.4) Cost of materials -1,0 -7,4 • Q1 2024 impacte
Slide 22: Cash flow and short-term investments
Cash flow and short-term investments - 6,9 MNOK in cash flow for Q1 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 10 200 5 0 180 -5 160 -10 140 -15 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 22
Slide 23: Outlook
Outlook • As stated, earlier Q2 market conditions will remain challenging for the bio manufacturing segment in particular • It is expected the market conditions will improve gradually during H2 but this is surrounded with uncertainty • We will continue to develop both our portfolio and commercial en
Slide 24: Thank you Q&A
Thank you Q&A arcticzymes.com
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