Engineering Biology. BRAIN Key Enabler for a Biobased Economy. Corporate Presentation. Zwingenberg, October 26, Engineering Biology.

Transcription

1 BRAIN Key Enabler for a Biobased Economy Corporate Presentation Zwingenberg, October 26, 2017 BRAIN Aktiengesellschaft Zwingenberg Germany (0)

2 Disclaimer This document may contain forward-looking statements. These forward-looking statements are subject to risks and uncertainties, as they relate to future events and are based on current assumptions of the Company, which may not occur at all in the future or may not occur as assumed. They do not represent a guarantee for future results or performance of the Company, and the development of economic and legal conditions may materially differ from the information expressed or implied in the forward-looking statements. The Company assumes no obligation to update or revise any forward-looking statement contained herein or to adapt them to future events or developments. The information contained in this document has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinion contained herein. The Company or any of its shareholders, affiliates, advisors, employees or representatives shall have no liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its content or otherwise arising in connection with this document. By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsibility for forming your own view of the potential future performance of the Company s business. This presentation speaks as of October 26, Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. 2

3 Speakers/Management Dr. Jürgen Eck (CEO) Frank Goebel (CFO) Dr. Martin Langer (evp Corporate Dev.) Micro- & Molecular Biologist 55 years Co-founded BRAIN in y of industry expertise Well connected in industry Management & Strategy R&D, IP and Technology Master of Business Administration 48 years Joined BRAIN in Feb years structured/ corporate finance expertise Well connected in finance community Asset management, M&A Molecular Biologist & Biochemist 51 years Joined BRAIN in y of management expertise Well connected in industry Corporate & Business Development Marketing & Communication 3

4 Our mission: enabling BioEconomy We discover and produce novel biological ingredients on the basis of our proprietary BioArchive for the improvement of product applications in multiple B2B markets. Enzymes Microbial Strains BioActives We enable sustainable, efficient and bio-based products & processes in the specialty and consumer goods segments of the chemical industry. We are on our way to become a fully integrated bio-specialty company. 4

5 BioEconomy - driver for a sustainable future Need for sustainability Challenge: healthy food, bio-based products, CO 2 reduction and energy saving Response: sustainable biological resources and solutions Sustainability Rise of BioEconomy Governments and businesses have realized the need of a bio-based economy BioEconomy is fueled by constant innovation and public interest BioEconomy Game-changing technology Industrial Biotechnology: key enabling technology in the transition to an eco-friendly, low carbon and resources-efficient economy Industrial Biotechnology BRAIN Solution provider for sustainable, all-natural product ingredients and processes we make packaged food healthier and consumer care products more natural we transform waste streams into new products we substitute chemical products by bio-based solutions BRAIN Source: BMBF - National Research Strategy BioEconomy 2030, EU Commission (2010), J.M. Barroso Europe 2020, Thomas M. Connelly, Jr. et al. in The National Academies, USA in "Industrialization of Biology: A Roadmap to Accelerate the Advanced Manufacturing of Chemicals" (2015); Bioökonomie für die Industrienation, Bioökonomierat, December 2016, 5

6 BioEconomy outgrowing chemical industries Growing industrial biotechnology sales in industry Biotech sales in industry in bn US $ USDA (2008) Festel (2012) Frost & Sullivan (2013) MC Kinsey (2009) Chemical Weekly (2012) Grandviewresearch (2016) All values in bn US $; Exchange rate 1 = 1,18 US $:; (as of September 29, 2017) Experts expect the revenues of biotech-based chemicals to grow from some 203 bn US $ in 2015 to around 610 bn US $ in This revenue increase over the 15 year period represents a CAGR of ca 11%. Industrial biotech sales are expected to outgrow the overall Chemical markets which are expected to grow at 4.1% (CAGR 15-20e) Source: German Bioeconomy-Council, December 2016, Roland Berger; Grandviewresearch (2016), adapted 6

7 Key facts European leader in BioEconomy Founded in 1993 >230 staff employed in BRAIN Group Three unique selling propositions Comprehensive proprietary BioArchive of natural solutions (Result of >450 man years) Unique combination of technological expertise and BioArchive (>350 patents) Successful track-record of delivering B2B products Growth platform Pipeline of own product candidates M&A track record and expertise Established industrial partnerships 7

8 BioArchive BRAIN has gathered a proprietary collection of unique enzymes, microorganisms and bioactive compounds 8

9 Monetizing the BioArchive 9

10 BRAIN s solution validated by a broad customer universe Enzymes Performance Microorganisms BioActive Compounds BRAIN provides all-natural ingredient solutions from its BioArchive More than 100 Exclusive Partner Collaborations (EPC) successfully completed 10

11 BioScience - selected examples of BRAIN inside Enzymes Performance Microorganisms BioActive Compounds BioActive Compounds Product Range Beiersdorf BRAIN inside Low temperature detergent enzymes Optimisation of microbial strain for Isomalt production Skin anti-irritant Symsitive 1609 Development of Biotech cosmetics Industrial partner #3 detergent business globally #1 European sugar company #4 ingredients supplier globally own cosmetics subsidiary 11

12 BioIndustrial BRAIN product pipeline (steady state) Feasibility candidates 15 Pipeline programmes 6 Markets adressed Revenues Outlet Contiuous feasibility study programmes for the generation of pipeline programmes 4 3 Enzyme developments Microorganism developments Food, Beverages, Feed and Woundcare Green mining and Bioplastics From 2017/18 first product market launches expected 8 BioActive Food, Beverages, Feed developments and Cosmetics 12

13 BioIndustrial - selected examples of BRAIN s product pipeline BioActive Compounds Enzymes Performance Microorganisms Performance Microorganisms Product Range Taste modulators for healthier nutrition Advanced wound care system CO 2 as feedstock for bio-plastics Green mining Innovation Field Salt taste enhancement Sweet Cleaning Debridement Producion of bioprecursor materials Enrichment of industrially relevant metals Industrial Partner #4 packaged food CPGC (confidential) DOLCE program partner Roquette; First two CPGCs committed as members EU: development within BRAIN US: negotiations ongoing Südzucker Partnered for selected metals (confidential) 13

14 Example: Performance Microorganisms for Green Mining Our addiction to electronic devices is causing an environmental nightmare around the globe BRAIN Solution Performance Microorganisms for Green Mining BRAIN proprietary technologies in place (Biosorption, Bioflotation, Bioleaching) Reuse Gold from secondary resources E-waste from mobile phones in Germany: 100 mio old/defect mobile phones 2.4 tons of gold, market value 90 mio Average gold concentration in one mobile phone: 24 mg per phone (c240 ppm) 200 x higher concentrated than average gold ore Several patents have been filed and granted Pilot processes (kg-scale) established, upscale under development E-waste: 42 Mio tons p.a. globally; 1.8 Mio tons p.a.in Germany (2014) Source: Gold.de; United Nations University, 2014; 14

15 Green Mining Demonstration plant Mobile biomining lab Batch treatment, 600 L 5-20% solid content (ore, e-scrab) 0.1% biomass On-site demonstration and validation 15

16 Example DOLCE: Novel biological Sweetener Source: 23 Jan 2016, U.K. BRAIN Solution Next generation natural sweet solutions Natural Sweetener & Sweet Taste Enhancer Global sugar market > 53 bn US$ 2, 172 Mio tons 1 (2016) Big potential for natural sweet solutions with currently only 1% market share 3 New opportunities for different consumer goods markets and products Natural High Intensity Sweeteners (HIS) Sugar (82% of total sweetener market) Source: 1 USDA 2016, 2 Finanzen.net 2017, 3 LMC-Report 2015 High fructose corn syrup Others (e.g. sugar alcohols) Source: 1 USDA 2016, 2 Finanzen.net 2017, 3 LMC-Report

17 How to adress the demand for new natural sweeteners 100 µm Ready to screen Human Taste Cells (green) Cell nucleus (blue) 17

18 DOLCE Partnership - new sweet solutions for industry World market leading food manufacturing and converting industry 18

19 Aurase Enzyme in Advanced Woundmanagement Chronic wounds are growing in incidence due to increasing number of diabetis, age of population Increasing incidence of prolonged healing times In USA 6.7 million patients are suffering with non-healing advanced wounds High demand for advanced wound care Aurase treatment BRAIN Solution: Aurase Aurase to enable the efficient treatment of chronic wounds in clinical- and home-based wound care Need for Advanced Woundmanagement Global advanced woundcare and closure market is expected to reach 20.5 bn US$ by 2020 (Germany: ~3 bn p.a.) Growing at a CAGR of 8.0% ( ) Worldwide people p.a., in Germany people p.a. are suffering from chronic wounds (2012) Total costs per patient in Germany: p.a., ~20% for medication Patent protection for a total of 20 countries in Europe, Asia, Source: MarketsandMarkets,2015; MedMarket Diligence, 2015; PMV 2015; Stat. Bundesamt, 2013; North America, Oceania and Africa (WO 2010/099955) Production process established TIME Care Program established; Aurase as part of Medical device 19

20 Financial Highlights unaudited BRAIN Aktiengesellschaft Zwingenberg Germany (0)

21 Statement Statement of the CEO Dr. Jürgen Eck: BRAIN continues on its growth path. In the third quarter of the fiscal year 2016/17, we increased our revenues again by more than 8 percent. In addition, we achieved an important milestone in the strategic cooperation with Diana Pet Food, which underlines the applicability of the BRAIN technology platforms and development competencies for new ingredients, here in the field of pet animal feed. These developments confirm our view that BRAIN is increasingly benefiting from the advancing biologization of different industries. This is also reflected in the high interest that we see in our developments of new biological sweeteners. Shortly after the end of the quarter, we have won a globally active US beverage group as a new member of the DOLCE program and signed a partnership agreement." BRAIN Aktiengesellschaft Zwingenberg Germany (0)

22 Key Financials 9M 2016/17 (unaudited) (in Euro million) 9M 9M 2016/ /16 Revenues Total operating performance BioScience BioIndustrial Adjusted EBIT IPO one-off costs Share based employee compensation AnalytiCon Post IPO-Framework EBIT Operating cash flow ) Revenues + change in inventories + other income including R&D grants Cash & cash equivalents ) Total operating performance = revenues + change in inventories + other operating income + Grants 2) Including IPO related one-off costs of 1.1 million in the fiscal year 2015/16 3) Including fixed term deposits 4) Summation differences are solely due to rounded figures BRAIN Aktiengesellschaft Zwingenberg Germany (0)

23 Financials Total Operating Performance by Segments 1) 2) 3) (in m) Total Operating Performance 9M 1) 2) (in m) BioScience BioIndustrial ,6 4,3 5, , ,9 12,3 12,4 19.0* 19.6* 10,0 9,8 9,1 9,9 2011/12A 2012/13A 2013/14A 2014/15A 2015/16A 2015/16 9M 2016/17 9M (*Adjusted) EBIT (in m) 2011/12A 2012/13A 2013/14A 2014/15A 2015/16A³ 2015/16 9M³ 2016/17 9M -5,7-4,4-4,8-3,9-7,6-5.2* -4.4* 1) Total operating performance = revenues + change in inventories + other operating income + Grants 2) w/o intersegment elimination of c 0.2m in FY12/13, FY13/14, FY14/15 and 0.1m in FY 15/16 3) The financial figures of the FY 2015/16 are comparable only to a limited extent to the values of the previous year, as for the FY 2014/15 they include the financial figures of the WeissBioTech organisations only since November 2014 due to the acquisition * unaudited BRAIN Aktiengesellschaft Zwingenberg Germany (0)

24 Shareholder structure & proceeds IPO BRAIN AG BRAIN shares started trading on February 9, 2016 (issue price 9.00, first price 9.15) The public offer consisted of 3,500,000 primary shares and 108,054 secondary shares Total issue volume of 32.5m Proceeds: R&D (60%), M&A (20%), Working Capital (20%) Shareholder structure of BRAIN AG Free Float DAH Beteiligungs GmbH 48,5% 9.1% 7,7% Founders/ Management 34,7% MP Beteiligungs-GmbH Capital increase A total of 1,641,434 new registered no-par-value shares were subscribed by the DAH Beteiligungs- GmbH on September 07, 2017 DAH is long term investor with a clear focus on sustainability companiesand programmes Net proceeds for BRAIN of 28 m from the capital increase Notes Current number of shares: 18,055,782 Strong long term investor base Free float of 48.5% >5,000 Shareholders (Retail) 24

25 Financial Calendar January 11, 2018 Publication of the annual report for the period ending 30 September 2017 (12M) February 28, 2018 Publication of the quarterly report for the period ending 31 December 2017 (3M) March 08, 2018 Annual General Meeting in Zwingenberg, Germany 25

26 Analysts covering BRAIN AG Analyst Company Phone Number Falko Friedrichs Gunnar Romer Igor Kim Sebastien Malafosse Markus Mayer Laura López Pineda Deutsche Bank, Frankfurt Deutsche Bank, Frankfurt ODDO BHF, Frankfurt ODDO BHF, Paris Baader Helvea, Munich Baader Helvea, Munich Thomas Schießle EQUI.TS, Frankfurt

27 Thank you for your interest. BRAIN Aktiengesellschaft Darmstädter Straße Zwingenberg +49 (0) Your Contact: Dr. Jürgen Eck, Frank Goebel, & Dr. Martin Langer BRAIN Aktiengesellschaft Zwingenberg Germany (0)