Presentation of 6M Figures BRAIN AG BRAIN Key Enabler for a Biobased Economy Zwingenberg, May 31, 2016 BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0
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 May 31, 2016. 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. BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 2
Speakers Dr. Jürgen Eck (CEO) Dr. Georg Kellinghusen (CFO) Dr. Martin Langer (evp Corporate Dev.) Eric Marks (COO) Micro- & Molecular Biologist 53 years Co-founded BRAIN in 1993 25+ y of industry expertise Well connected in industry Management & Strategy R&D, IP and Technology Master of Business Adminstration 68 years Joined BRAIN in 2016 35+ y of experience as CFO in 4 listed companies Finance, Accounting Controlling Compliance & IR Molecular Biologist & Biochemist Industrial Engineer, Business Economist 50 years 54 years Joined BRAIN in 1995 Joined BRAIN in 2015 20+ y of management expertise 20+ y of expertise in industrial enzymes Well connected in industry Track record with industry leaders Corporate & Business Development Sales, Business Operations Marketing & Communication Strategic & Innovation Management BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 3
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. We enable sustainable, efficient and bio-based products & processes in the speciality and consumer goods segments of the chemical industry. We are on our way to become a fully integrated bio-speciality company. BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 4
Significant Events 6M 2015/16 Successful initial public offering (IPO) First BioEconomy company listed at Frankfurt Stock Excange (Prime Standard). First listing on February 9, 2016. Contrary difficult market conditions, all 3.5m shares could be placed at a course of 9. First price was 9.15. The company was able to redeem gross proceeds of 31.5m. After deduction of bank charges the net proceeds amounted to 30.4m. Successful interim evaluation of strategic alliance grant NatLifE 2020 The strategic alliance NatLifE 2020 has been evaluated by experts. The partners of the alliance successfully answered all questions from the experts upon the first phase and the plannings of Phase II. The experts recommended to continue the program and the state funding. Expansion of collaboration with Südzucker on microbial CO 2 usage Successful completion of research phase Joint development of a pilot plant and a scale-up of the process BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 5
Financial Highlights BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0
BRAIN Group Financial Highlights 6M 2015/16 The total operating performance increased yoy to Euro 13m (6M 2014/15: Euro 12.8m) Growth in 6M period was primarily driven by the BioScience segment, with a significant contribution from the collaboration business with international industrial partners. In 6M period BioIndustrial segment decreased to Euro 6.6m (6M 2014/15: Euro 7.1m). Despite double digit growth in the specialty enzyme business, the segment was affected by a global market weakness of bulk enzymes for bioethanol production The Group EBIT were affected by non-recurring cost for IPO resulting in Euro -5.3m (6M 2014/15: Euro -2.1m) The adjusted EBIT amounted to Euro -3.3m Adjusted by IPO costs of Euro 1.1m and adjusted by non-liquidity related expenses from a sharebased compensation scheme at Analyticon of Euro 0.9m Euro -3.1m related to BioScience including expenses for Research and Development of new ingredient product pipeline, Euro -0.2m related to BioIndustrial BRAIN will continue to pursue its course of profitable growth From today's perspective BRAIN expects to reach EBIT break-even as planned in fiscal year 2017/18 Also if the oil price related commodisation of the bioethanol-enzymes should persist BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 7
Key Quarterly Financials 6M FY 2015/16 (in Euro million) 1 6M 6M 2015/16 2014/15 Total operating performance 2 12.952 12.791 - BioScience 6.375 5.722 - BioIndustrial 6.577 7.068 EBIT -5.271-2.099 Adjusted EBIT 3-3.253-2.087 Group result -6.125-7.748 Equity 31.826 5.755 Equity in percent of total assets 67.8% 17.99% Result per share (in Euro) -0.44-0.21 Cash flows from operating activities -4.568-2.713 Cash flows from financing activities 25.238 1.633 1) The financial figures of fiscal 2015/16 are comparable only to a limited extent to the values of the previous year, as for the first quarter of FY 2014/15 they only include the financial figures of the WeissBioTech organisations for the months of November and December 2014 due to the acquisition. 2) Total operating performance = revenues + change in inventories + other operating income 3) Adjusted for one-off costs of the IPO and expenses resulting from share-based employee participation plans BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 8
Financials Total Operating Performance by Segments 1) 2) (in m) Total Operating Performance 3M 1) 2) 4) (in m) BioScience BioIndustrial 25.7 13.5 7.9 10.2 3,6 4.7 4,3 5.5 13.8 5.0 8.8 12.2 12.8 13.0 7,1 6,6 5,7 6,4 2011/12A 2012/13A 2013/14A 2014/15A 2014/15 6M 2015/16 6M EBIT (in m) 2011/12A 2012/13A 2013/14A 2014/15A 2014/15 6M³ 2015/16 6M³ -5,7-4,4-4,8-4,6-2,1-3,3 1) Total operating performance = revenues + change in inventories + other operating income 2) w/o intersegment elimination of c 0.2m in FY12/13, FY13/14 and FY14/15 3) Adjusted EBIT 4) The financial figures of fiscal 2015/16 are comparable only to a limited extent to the values of the previous year, as for the first quarter of FY 2014/15 they only include the financial figures of the WeissBioTech organisations for the months of November and December 2014 due to the acquisition. BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 9
Business Highlights BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0
BRAIN Group BioScience - Highlights 6M 2015/16 + 11% YOY growth in 6M period by BioScience segment, with a significant contribution from the collaboration business with international industrial partners. BRAIN Research & Development for new product ingredients on track. Positive evaluation and R&D funding granted by the Federal Ministry of Education and Research (BMBF) via strategic alliance NatLife 2020 for Phase II (3 year period, 01.03.16-28.02.19). BRAIN and Südzucker AG are intensifying their cooperation in the field of microbial utilization of carbon dioxide. The partnership makes CO 2 available for the production of interesting intermediates using optimized platform micro-organisms. The two partners enter into scale up to a pilot facility at the Zeitz CO 2 -emitting bioethanol plant. One focus of BRAIN new product development portfolio lies on the development of biological sweeteners. On the basis of three letters of intent (LOI) with two big consumer goods companies and one European converter company, the negotiations are ongoing according to plan. BRAIN currently assumes that the program could possibly start in second half of FY 2015/16. The Company wishes to draw attention to the fact that BRAIN is still in the negotiation phase and that, as a result, at the date of this report the partnering is still uncertain. BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 11
BRAIN Group BioIndustrial - Highlights 6M 2015/16 In 6M period BioIndustrial segment decreased to Euro 6.6m (6M 2014/15: Euro 7.1m). Despite double digit growth in the specialty enzyme business, the segment was affected by a global market weakness of bulk enzymes for bioethanol production Christine Kiefer (formerly Goldwell and KAO) appointed as new CEO of Monteil Paris (with effect from 1 April 2016). She has a broad track record in sales and marketing and will bring in that experience also in the future Monteil business. On 18 December 2015 and with effect from 1 January 2016, Dr Georg Kellinghusen was appointed to the Management Board by the Supervisory Board and named Chief Financial Officer (CFO). Relying on many years of experience serving as CFO of publicly listed companies such as Varta AG, Escada AG, Zapf Creation AG and Alno AG. On 1 November 2015, Mr Henricus (Eric) Marks was appointed to the Management Board by the Supervisory Board and named Chief Operating Officer (COO) of the BRAIN Group. Within the BRAIN Group, Mr Marks (formerly AB Enzymes and Genencor heads the BioIndustrial business. BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 12
Financial Calendar 2016 May 31, 2016 Release of the interim report for the period ending 31 March 2016 (6M) August 31, 2016 Release of the interim statement for the period ending 30 June 2016 (9M) December 20, 2016 Release of the annual report for the fiscal year 2015/16, ending September 30, 2016 BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 13
Thank you for your interest. BRAIN Aktiengesellschaft Darmstädter Straße 34-36 64673 Zwingenberg +49 (0) 6251-9331-0 www.brain-biotech.de Your Contact: Investor Relations Dr Martin Langer ir@brain-biotech.de +49 (0) 6251-9331-16 BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0