25 slides from Arcticzymes Technologies Asa's earnings presentation, Aug 16, 2018
Slide 1: Q2 2018 Presentation
Q2 2018 Presentation 16.08.2018, Oslo
Slide 2: Agenda
Agenda • Highlights • Beta-glucans • Animal- and Consumer health • Cancer • Advanced wound care • Enzymes • Molecular and new markets • Q2 Financials • Outlook for 2018 2
Slide 3: Biotec in brief
Biotec in brief A corporation with two independent versatile technology platforms who both benefit from underlying market growth Beta-glucans Enzymes • A common unique technology platform with • Fast growing business that is developing and immune modulating products for improved selling unique enzym
Slide 4: Highlights Q2 2018
Highlights Q2 2018 Sales & Gross contribution • Raised NOK 22.1 million in new equity 20 000 by issuing 4,390,000 new shares 18 000 Sales Gross contribution • Q2 sales of MNOK 10.9 (16.4) 16 000 14 000 • EBITDA of MNOK -4.2 (-4.4) 12 000 • Neuroblastoma phase II interim results 10 000 presented at A
Slide 5: New capital raised in June 2018
New capital raised in June 2018 The new capital raised is intended to accelerate the company's value building activities, which in a cash constrained environment otherwise would have taken second priority: * Biotec Pharmacon's SBG® has in a recent phase II study shown promising effects as an adjuvan
Slide 6: Beta-glucans
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Slide 7: Activities for M-Glucan® and M-Gard®
Activities for M-Glucan® and M-Gard® Over 20 years experience with immune-modulating beta-glucans Animal health • Sales experiences annual and seasonal fluctuations driven by demand for health feed within the aquaculture sector. • Difficult for Biotec to influence consumption in the aqua marine sect
Slide 8: SBG® in current neuroblastoma vaccine trial
SBG® in current neuroblastoma vaccine trial SBG® and Neuroblastoma • High impact indication in children with a large unmet medical need (<50% survival in high-risk patients) • Proof of concept study for use of SBG® as adjuvant in immunotherapy of cancer Relapse-free survival (red) and overall surviv
Slide 9: SBG® in immunotherapy of neuroblastoma
SBG® in immunotherapy of neuroblastoma Clinical trial program of the bivalent ganglioside vaccine in combination with SBG® for high-risk neuroblastoma 2009 – 2013 2013 – 2016 2016 – 2019 2019 – 2021 Phase I Safety Phase I/ II Efficacy Phase II Efficacy Phase II/III Efficacy Multi-site Randomised ≥2n
Slide 10: Status Woulgan®
Status Woulgan® • Number of Woulgan accounts increasing • Sellers focus on increasing number of users & • Driving adoption of new, additional treatment • UK and Nordic studies accepted for publication • strong healing benefits with excellent safety • simple and well-tolerated formulation • Continue
Slide 11: Activities in all markets
Activities in all markets UK Nordics Germany Clinical 300 patient study manuscript accepted for publication in September’s Journal of Wound 2 articles from Nordic case series published in “Sårmagasinet” (Sweden) and “Sår” (Norway, Care Denmark) In ulcer-type wounds, Woulgan shows 62% 12 week healing
Slide 12: ArcticZymes: Molecular and new markets
ArcticZymes Molecular and new markets
Slide 13: Commercial Updates
Commercial Updates Sales Dynamics Experienced headwinds during the second quarter and first half. Two factors have contributed to lower sales revenues: Largest Customer Changes in Salesforce Catalogue Business Sales of main product lower during this period compared to The salesforce was changed and
Slide 14: New Product Launches
New Product Launches ArcticZymes has had a busy second quarter in launching 3 new products • Novel heat-labile enzyme easily inactivated after use Proteinase • Open doors to penetrate the rapidly growing liquid biopsy and sample preparation markets. e.g. non-invasive tests based on cancer biomarkers
Slide 15: Upscaling of Production
Upscaling of Production Scaling Up Production to Meet Commercial Demand • Following the launch of several products over the last 2 years new supply deals and opportunities are now materializing • With this new commercial potential on the table AZ is prioritizing production scale up of three of its n
Slide 16: ArcticZymes Road Map
ArcticZymes Road Map • Focus on leveraging increased capacity and higher- level sales expertise within our new business development team • Sales efforts will very much be prioritized on: ✓ develop new key accounts ✓ leveraging cross sales with existing customers ✓ secure new molecular customers we h
Slide 17: Q2 Financials
Q2 Financials vitae. BIOTEC ret” PHARMACON
Slide 18: Cash flow explained by private placement
Cash flow explained by private placement Net cash position Second quarter changes in cash of +15.2 MNOK 50 000 Amounts in NOK 1.000' • Private placement of 22.1 MNOK 45 000 40 000 • 13.5 (20.4) MNOK in short-term 35 000 receivables 30 000 • 10.6 (13.9) MNOK in short-term payables 25 000 46 489 38 40
Slide 19: Q2 2018 Cash flow detailed
Q2 2018 Cash flow detailed Q2 2018 Cash flow Amounts in NOK 1.000' • Q2 2018 Cash flow from operations -5.9 MNOK 40 000 • Explained by change in working capital of 35 000 • Receivables -0.4 MNOK 30 000 • Payables -1.8 MNOK 25 000 • Inventory 0.2 MNOK • Q2 2018 Cash flow from investments -1.0 MNOK 20
Slide 20: Q2 sales was low and below expectations
Q2 sales was low and below expectations Biotec revenues per segment Animal & Consumer Health ArcticZymes Amounts in NOK 1.000' 10 000 Woulgan Segment Q2 Sales ArcticZymes MNOK 5.7 Animal & Consumer Health MNOK 4.7 5 000 Woulgan MNOK 0.5 Group MNOK 10.9 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 20
Slide 21: EBITDA improved due to reduction in operating expenses
EBITDA improved due to reduction in operating expenses EBITDA Operating Expenses Amounts in NOK 1.000' Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 0 Personell expenses -1 000 Property, plant and equipment -2 000 IT -3 000 External services Marketing and sales -4 000 License, patent and -5 000 tr
Slide 22: Beta-Glucan performance
Beta-Glucan performance Beta-Glucans Q2 YTD (Amounts in NOK 1.000) 2018 2017 2018 2017 • Sales continues to be driven by Animal Sales revenues 5 170 7 957 13 075 17 305 Health and Consumer Health Gross profit 2 616 3 625 6 249 7 090 Operating expenses -6 584 -8 936 -14 878 -17 691 • Reduced expenses
Slide 23: ArcticZymes performance
ArcticZymes performance Enzymes Q2 YTD (Amounts in NOK 1.000) 2018 2017 2018 2017 • Q2 2018 sales 2.7 MNOK lower than Sales revenues 5 701 8 420 12 038 17 269 second quarter of 2017 Operating expenses -5 886 -6 621 -13 800 -14 090 EBITDA 647 2 566 -20 5 161 • Operating expenses decreased compared to
Slide 24: Outlook 2018
Outlook 2018 cay. ¢ o@ete. BIOTEC ret” PHARMACON
Slide 25: Outlook 2018
Outlook 2018 • Overall sales growth versus 2017 uncertain • Reduction in cash consumption • Review of Woulgan go-to-market model to ensure further growth • AZ expects to grow the business organically while also looking for inorganic growth opportunities 25