brain ag · brain ag management presentation ... grow at c15.5% from € 94 bn to ... earths,...
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Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0
BRAIN AG Management Presentation Oct 31st, 2016
“ ”
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 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 31st, 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.
Engineering Biology. © 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.
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 4
Setting the scene
Sustainability
BioEconomy
Industrial Biotechnology
BRAIN
• Need for sustainability • Challenge: provision of healthy food, bio-based products and CO2/ energy-
saving processes • Response: increased use of sustainable biological resources and solutions,
rather than non-renewable alternatives like fossil oil or chemicals
• Rise of BioEconomy • Governments and businesses have realized the need of a bio-based economy • BioEconomy is fueled by constant innovation and public interest
• Game-changing technology • Industrial Biotechnology: “key enabling technology in the transition to an eco-friendly,
low carbon and resources-efficient economy”
• BRAIN • Solution provider for sustainable, all-natural product ingredients and processes
• we make packaged food healthier • we make consumer care products more natural • we transform waste streams into new products • we substitute (hazardous) chemical products by biobased/natural solutions
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)
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 5
• Chemicals and materials are
increasingly produced using
biotechnology
• BRAIN focuses on Consumer and
Speciality Chemicals, expected to
grow at c15.5% from € 94 bn to
€ 193 bn in the next five years
• Industrial biotech sales are expected to
outgrow the overall Chemical markets –
which are expected to grow at 4.1%
(CAGR‘15-20e)
Sources: Festel et al., Journal of Commercial Biotechnology, 2012, modified (2015 and 2020 estimated, excluding pharmaceutical and biofuels); CEFIC, BRAIN estimates; Roland Berger
Global chemical industry is transforming: growing biotech sales in industry subsectors
18 43
104
2010A 2015E 2020E
92
228
515
in E
UR
bn
Specialty Chemicals
Consumer Chemicals
Others
CAGR ‘15-20
15.5%
BioEconomy share of total chemical Industry
6.2% 12.1% c20%
19.4%
11.8%
Total
BRAIN’s focus due to attractive growth and margin prospects
40 94 193
BioEconomy – transformation of industries
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 6
BRAIN – full product spectrum for BioEconomy solutions
BioEconomy solutions from BRAIN
BioEconomy competitors
Enzymes Performance Microorganisms
BioActive Compounds
Solutions for BioEconomy based on three bio-based ingredient categories
Established industries
Innovation dilemma
Enzymes have been at the forefront of BioEconomy products, innovators have been able to establish themselves as global players
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 7
Key facts
• European leader in BioEconomy and Industrial Biotechnology • Founded in 1993
• >215 staff employed in BRAIN Group
• Three unique selling propositions • Comprehensive proprietary BioArchive of natural solutions
• Unique combination of technological expertise and access to fully
owned BioArchive
• Successful track-record of delivering novel biological ingredients
• Growth prospects • Attractive pipeline of own product candidates
• Access to selected markets through own subsidiaries
• Access to global markets through licensing to industrial partners
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 8
Financials Total Operating Performance by Segments 1) 2) (in € m)
3,6 4.7
5.0
13.5
11,2 10,0
2011/12A 2012/13A 2013/14A 2014/15A 2014/15 9M 2015/16 9M
BioScience BioIndustrial
25.7
13.8
10.2
7.9
19.8 19.0
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 the first nine months of fiscal 2015/16 are comparable only to a limited extent to the value sof the previous year, as for the first nine months of FY 2014/15 they include the financial figures of the WeissBioTech organisations only since November 2014 due to the acqusition
EBIT (in €m)
-5,7 -4,4 -4,8 -4,6 -3,7 -5,2
2011/12A 2012/13A 2013/14A 2014/15A 2014/15 9M³
Total Operating Performance 9M 1) 2) 4) (in € m)
2015/16 9M³
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 9
BRAIN’s solution – validated by a broad customer universe
• BRAIN provides all-natural ingredient solutions from its BioArchive • More than 100 Exclusive Partner Collaborations (EPC) successfully completed
Enzymes Performance Microorganisms
BioActive Compounds
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 10
BioScience - selected examples of ‘BRAIN inside’
Product Range
Industrial partner #3 detergent
business globally #1 European sugar company
#4 ingredients supplier globally
Beiersdorf
own cosmetics subsidiary
Enzymes BioActive Compounds
BioActive Compounds
Performance Microorganisms
BRAIN inside Low temperature detergent enzymes
Optimisation of microbial strain for Isomalt production
Skin anti-irritant Symsitive 1609
Development of Biotech cosmetics
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 11
BioIndustrial - selected examples of BRAIN’s product pipeline
Product Range
Industrial partner
Partnered #4 packaged food business globally (confidential)
Taste modulators for healthier nutrition
Sweetener & sweet taste enhancer
Cleaning / debridement of chronic wounds (medical device)
Producion of precursor materials for bio-plastic using CO2
Green mining
Microorganisms enrich industrially relevant metals (rare earths, precious metals)
Advanced wound care system
CO2 as feedstock for bio-plastics
Salt taste enhancer
Partnered within strategic alliance ZeroCarbFP
Partnered for selected metals with chemical company
Performance Microorganisms
BioActive Compounds Enzymes Performance
Microorganisms
BRAIN inside
LOIs with gobal food and beverage companies and converter
EU: development within BRAIN US: negotiation ongoing with US medical device company
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 12
DOLCE Consortium new sweet solutions for industry
World market leading food manufacturing and converting industry
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 13
Superior technologies and R&D expertise
• R&D machinery of diversified technology platforms • Platforms for Microbial strains, Enzyme technologies, BioActive
Compounds • c350 registered patents/patent applications in
48 patent families • 150 employees in R&D, >60% with university degree
• BRAIN’s BioArchive – the toolbox of nature
• Result of >450 R&D man years and >100 industrial collaborations Difficult to replicate (unique combination of people with different know-how and profession)
• Fully owned by BRAIN
• Pioneering R&D • First player with industrial metagenome technology • First player with Human Taste Cell technology • First player with novel antiperspirant research
CrispRcas9
BRAINzyme
EvoSolution
LIL® ABEL®
CompActives®
BioCompActives®
ScreenLine®
®
®
®
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 14
BioArchive
BRAIN has gathered a proprietary collection of unique enzymes, microorganisms and bioactive compounds
Engineering Biology. © BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 15
BRAIN – Monetizing the BioArchive
Technologies Active biological ingredients
Natural resources
BRAIN’s BioArchive
Enzyme Technologies
Microbial Strains
BioActives
Nutrition & Feed
Bio Substitutes
Cosmetics/ Care
Woundcare
Enzymes
Performance Microorganisms
BioActive Compounds
Enzymes
BioScience BioIndustrial
Consumer / End User markets
(B2c)
Production Formulation
Ingredients markets (B2B)