Dyadic International, Inc. · NASDAQ:DYAI
Dyadic International — Investor Presentation (January 2015)
30 slides from Dyadic International's investor presentation, January 2015
Slide 1: Dyadic International, Inc. – We Turn DNA Into Products
May 2012 DYADIC INTERNATIONAL, INC. (Symbol: DYAI) WE TURN DNA INTO PRODUCTS
Slide 2: Safe harbor statement
Safe harbor statement Certain statements contained in this presentation are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Dyadic’s actual results, performance or achievements to be materially different from any future results, performan
Slide 3: Dyadic overview
Dyadic overview Business overview C1 technology overview Leading developer and supplier of enzymes Class-leading technology, used to turn genes into protein-based products at large volumes and other protein-based products and low cost End markets of biofuels and bio-based Two decades of deve
Slide 4: Global footprint
Global footprint Wageningen, NL Berlin, DE Tilburg, NL Minneapolis, MN Charlotte, NC Hong Kong Jupiter, FL Tlalnepantla, MX Toll manufacturing (3rd party) Warehouse (3rd party) Corporate headquarters R&D centers Sales and distribution 4
Slide 5: Business model
Business model Proprietary enzyme sales Historical revenue ($ millions) Currently sell niche products into food, Licensing Fees R&D animal feed, pulp & paper, textile and other end markets Enzyme Sales Gross Margin Several potential new products in 20 100% pipeline 18 17.1 Profitable, establis
Slide 6: 9 month 2014 highlights
9 month 2014 highlights Revenue excluding license fees increased 9-mo 2014 vs 9-mo 2013 ex license 23% for the 9mo 2014 vs 9mo 2013 fees ($ millions) Enzyme revenue increased 8% to $7.6 Product R&D million Milestones Payments Gross Margin R&D revenue increased 60% to $1.5 million Received mi
Slide 7: Business by end market, products, partners and licensees
Business by end market Cellulosic Sugars Industrial Enzymes Biopharmacuticals Biofuels Animal feed Vaccines Bio-based chemicals Food & Beverage Antibodies (e.g. mAb) markets Starch & Alcohol Therapeutic proteins Pulp & Paper End Biocatalysts for API Textiles $5+ billion new Market enzymes in $5+ bil
Slide 8: Abengoa case study
Abengoa case study One of the largest ethanol producers and alternative energy companies in the world Relationship with Dyadic Agreement overview November 2006 R&D Agreement Non-exclusive Securities Purchase Fields: Biofuels and bio-based chemicals (6% ownership of Dyadic) Territory: Worldwide
Slide 9: BASF case study
BASF case study One of the largest chemical companies in the world Target Industrial enzymes Current Phase Product and platform development $6 million up front license Funded research and development Terms R&D and commercialization milestone payments Royalties based on revenue of products so
Slide 10: Sanofi Pasteur case study
Sanofi Pasteur case study One of the largest vaccine companies in the world Target Vaccine using C1 expression system Current Phase Preclinical testing Expressed, purified and delivered protein to Sanofi Status Modifications to the protein are ongoing Project began in 2011 Project funding re
Slide 11: Dyadic 3-year outlook: potential milestones
Dyadic 3-year outlook Cash flow New product Key project New break even & BASF development & extensions & Court products to CIMV demo Abengoa plant date market plant online • BASF license • Initiation of New Product • BASF, Sanofi and • Targeted cash • Initial potential agreement Development Program
Slide 12: Active new products being developed in many industries
Active new products being developed in many industries We have identified six key new products in development Commercialization in 2017 Potential nearer-term revenue from licensing of these new products Based on our past success in obtaining EU and other government funding we have applied fo
Slide 13: Potential upside from lawsuit of former legal counsel
Potential upside from lawsuit of former legal counsel We are currently engaged in litigation with three former professional service providers In 2009, we sued our former professional service providers in connection with events relating to alleged improprieties at our former Asian subsidiaries, w
Slide 14: The C1 Expression System
DYADIC’ THE C1 EXPRESSION SYSTEM ~~ a a a ee
Slide 15: Expression systems turn DNA into products
Expression systems turn DNA into products Genes Dyadic Inside® Protein products A template for C1 Expression Enzymes and other enzymes and other System turns genes proteins control proteins into products particular chemical reactions 15
Slide 16: C1 expression system advantages
C1 expression system advantages Track record of producing at industrial scale Platform Identified over 500 potentially useful enzymes in genome, of which over technology 100 already been expressed Many enzymes active in broad pH and temperature range Excellent safety record and has Generally
Slide 17: Two commercial platforms allow for broad applications
Two commercial platforms allow for broad applications HC vs. White Strain White Strain (LC) product development HC White Strains End End Market 1 Market 2 Enzyme 1 (20 g/L) Enzyme 2 (thermostable) (12 g/L) Enzyme 3 (thermostable) (15 g/L) HC Strain (1996) White Strain (2011) Effectively degrade or
Slide 18: Enzyme productivity improvements by generation
Enzyme productivity improvements by generation Gen 3 commercial product: 12x cost reduction Gen 2 commercial product: 4x cost reduction Project resources included approximately 1 scientist over 2 years
Slide 19: C1 has an excellent safety profile
C1 has an excellent safety profile Generally Recognized as Safe (GRAS) status C1 strain non-toxic acknowledged by the FDA Pathogenicity and toxigenicity data: strain is non-infectious and no C1-cellulase accepted by FDA on known toxins are produced Peer-reviewed scientific literature September
Slide 20: Cellulosic biofuels and bio-based chemicals
CELLULOSIC BIOFUELS AND BIO-BASED CHEMICALS 20
Slide 21: C1 is one of only three leading enzymatic platforms
C1 is one of only three leading enzymatic platforms 21
Slide 22: C1 biofuel enzymes have several key advantages
C1 biofuel enzymes have several key advantages Industry-leading enzyme performance at breaking down biomass Effective performance Robust enzymes that work at high temperature and pH Proven at 500,000 liter scale production Scalable production Morphology and other characteristics allows for l
Slide 23: C1 has twice the enzyme-encoding genes than competing systems
C1 has twice the enzyme-encoding genes than competing systems for biofuels and bio-based chemicals 200 186 Example: C1 has 26 GH61 genes vs. 3 for Trichoderma 150 Several countries, such as Japan, consider self cloned strains as non-GMO 100 26 84 3 50 0 C1 Trichoderma Large variety of lignocelluloly
Slide 24: Biopharmaceuticals
DYADIC’ BIOPHARMACEUTICALS
Slide 25: Prospective game-changing platform for biologics market
Prospective game-changing platform for biologics market Therapeutic Viral influenza proteins vaccine (veterinary) Antibodies Influenza vaccine (diagnostic and (human) therapeutic) Biocatalysts for Antiviral (HIV and API production other) C1 has many high-potential opportunities in biologics 25
Slide 26: Potential to fight epidemics at global scale
Potential to fight epidemics at global scale Extremely high yield, industrial scale production in world’s largest fermenters Ability to more quickly modify cell lines to create and modify biologics Near human glycosylation Track record of expressing therapeutic proteins in C1 Origin of recen
Slide 27: Financial overview
DYADIC’ FINANCIAL OVERVIEW ~~ ee a a ee
Slide 28: Income statement
DYADIC’ Income statement 2011 2012 2013 2013 2014 Revenue Industrial enzyme 74 78 98 7.1 76 R&D 18 23 1.3 09 15 Royalties & Milestones - - - - 07 Total recurring revenue 9.2 10.1 11.1 8.0 9.8 % growth 9% 10% 23% Licensing 1.0 5.5 6.0 5.0 - Total Revenue 10.3 15.6 17.1 13.0 9.8 COGS 6.6 76 91 67 64 T
Slide 29: Balance sheet
DYADIC’ Balance sheet 2011 2012 2013 2013 2014 Assets Cash and Cash Equivalents 3.7 40 89 8.5 3.4 Restricted Cash 0.2 02 0.2 0.2 02 Accounts Receivable, Net 18 1.3 17 19 19 License Fee Receivable - 3.5 01 08 - Inventory, Net 3.3 28 28 17 3.4 Prepaid Expenses and Other Current Assets 0.3 0.2 0.2 0.2
Slide 30: Cap table as of September 30, 2014
Cap table as of September 30, 2014 30
Dyadic International — Investor Presentation (January 2015) on 6ix