Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Biotec Pharmacon — Q2 2019 Earnings Presentation
19 slides from Arcticzymes Technologies Asa's earnings presentation, Aug 15, 2019
Slide 1: Q2 2019 Presentation
Q2 2019 Presentation 15.08.2019, Oslo
Slide 2: Agenda
Agenda • Highlights • Q2 • ArcticZymes • BetaGlucans • Woulgan® • Other BetaGlucans segments • Q2 Financials • Outlook for 2019 2
Slide 3: Biotec Pharmacon
Biotec Pharmacon • Focused on specialized, novel enzyme and immunomodulating beta-glucan technology. • Two divisions, driving revenues and cash generation across USA, Europe and Asia: • ArcticZymes develops, manufactures and commercializes novel recombinant enzymes for use in molecular research, In
Slide 4: Highlights Q2 2019
Highlights Q2 2019 Sales & Gross profit • Strong growth in sales and gross profit compared 25 000 to Q2 2018. Sales Gross profit • EBITDA of MNOK -0,5 compared to MNOK -3.5 Q2 20 000 2018, driven by higher sales. • ArcticZymes had its historically best Q2. 15 000 • Continued sales growth for Woulgan
Slide 5: ArcticZymes
ArcticZymes wet). BIOTEC So PHARMACON
Slide 6: ArcticZymes Updates
ArcticZymes Updates • Commercial achievements • During the quarter the customer base expanded which makes ArcticZymes less vulnerable to major customers purchase pattern. • Sales of Salt Active Nuclease has continued the positive development from Q1 and is now one of top products in ArcticZymes. 6
Slide 7: Innovation & strategic initiatives
Innovation & strategic initiatives Innovation: • ArcticZymes launched 2 new Tritron free products in Q2 (COD UNG and HL dsDNase). This is another step towards establishing an EU-Reach compliant portfolio. Furthermore the COD UNG formulation is also glycerol free, which makes it suitable for freeze d
Slide 8: BetaGlucans
BetaGlucans Woulgan®, Adjuvant, Consumer Health, Animal Health
Slide 9: Woulgan Updates
Woulgan Updates • Commercial achievemtents • Sales continued to increase in Q2 – driven by progress in Germany. • First half year sales in 2019 almost at the same level as full-year 2018 sales . • The UK and Nordic markets continue to be a challenge. • Germany is the core market, structured around 8
Slide 10: Woulgan Updates
Woulgan Updates • Marketing and legislation: • Participated in Deutscher Wundkongress (71 participants in symposium) in May and EWMA in June – both with nice attention to Woulgan. • New definition of reimbursable dressings finally decided in Law on Security in Medical Supplies (GSAV) in Germany. Wou
Slide 11: Other BetaGlucans segments
Other BetaGlucans segments Adjuvant study with MSKCC in New York: • The study is continuing to recruit patients at a good pace, where more than 230 of the planned 260 patients are included. • The study is aimed at being finished in May 2020. Consumer Health: • Good progress from customers especially
Slide 12: Q2 Financials
Q2 Financials ites. BIOTEC ret” PHARMACON
Slide 13: Cash Flow explained by changes in working capital
Cash Flow explained by changes in working capital Net Cash position 40 000 Amounts in NOK 1.000' Second quarter changes in cash of -6.8 MNOK: 35 000 • 17.3 (13.5) MNOK in short-term 30 000 receivables. 25 000 • 9.0 (10.6) MNOK in short-term payables. 20 000 • Cash Flow from operations -5.7 MNOK 35 1
Slide 14: Sales for Q2 significantly improved
Sales for Q2 significantly improved Biotec revenues per segment Animal & Consumer Health Amounts in NOK 1.000' ArcticZymes Segment Q2 Sales Woulgan 10 000 ArcticZymes MNOK 9.0 (5.7) Animal & Consumer Health MNOK 6.4 (4.6) Woulgan® MNOK 1.4 (0.5) 5 000 Group MNOK 16.9 (10.8) 0 Q1 2018 Q2 2018 Q3 2018
Slide 15: EBITDA improvement on a quaterly basis
EBITDA improvement on a quaterly basis EBITDA Operating Expenses Amounts in NOK 1.000' Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 1 000 Personell expenses Property, plant and equipment 0 IT -1 000 External services -2 000 Marketing and sales -3 000 License, patent and trademark -4 000 Other ope
Slide 16: ArcticZymes performance
ArcticZymes performance Enzymes Q2 YTD • Sales are up by 3.3 MNOK compared to same 2019 2018 2019 2018 (Amounts in NOK 1.000) quarter last year. Sales revenues 9 002 5 701 16 871 12 038 Operating expenses -7 658 -5 597 -16 543 -13 222 • Sales YTD have increased by almost 5 MNOK EBITDA 1 701 936 1 45
Slide 17: BetaGlucans performance
BetaGlucans performance BetaGlucans Q2 YTD (Amounts in NOK 1.000) 2019 2018 2019 2018 • Woulgan continues to generate growth on the Sales revenues 7 851 5 170 14 798 13 075 sales side, 1.4 MNOK vs 0.5 MNOK . Gross profit 3 315 2 616 7 467 6 249 Operating expenses -5 140 -6 227 -11 660 -14 162 • Redu
Slide 18: Outlook
Outlook
Slide 19: Outlook 2019
Outlook 2019 • Management expect revenue growth in the two focus areas – ArcticZymes and Woulgan® to be strongest in H2 – whilst reducing cash consumption. • ArcticZymes – objectives are to grow business organically, launching new products, whilst seeking inorganic growth opportunities. • Woulgan® –