sustainability. efficacy. health....starch processing enzymes wbt yes natural beverages suntory uk...

Engineering Biology.© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0

Sustainability. Efficacy. Health.BRAIN – Key Enabler for a Biobased Economy

Corporate Presentation

May 29, 2019 “ ”[Our exceptional research-driven innovative strength continues to form the core of BRAIN’s success. We continue to see ourselves well positioned with our current development pipeline and disruptive product ideas.]Dr Jürgen Eck, CEO BRAIN, Annual Report BRAIN 10.01.2019

Engineering Biology.© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 2CONFIDENTIAL

Disclaimer

This document may contain forward-looking statements. These forward-looking statements are subject to risks and uncertainties, asthey relate to future events and are based on current assumptions of the Company, which may not occur at all in the future or may notoccur as assumed. They do not represent a guarantee for future results or performance of the Company, and the development ofeconomic 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 futureevents or developments. The information contained in this document has not been independently verified. No representation orwarranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness orcorrectness of the information or opinion contained herein. The Company or any of its shareholders, affiliates, advisors, employees orrepresentatives shall have no liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or itscontent 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 themarket position of the Company and that you will conduct your own analysis and be solely responsibility for forming your own view ofthe potential future performance of the Company’s business.

This presentation speaks as of May 29, 2019. Neither the delivery of this presentation nor any further discussions of the Companywith any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of theCompany since such date. The term “BRAIN”, as used in this presentation means B.R.A.I.N. Biotechnology Research andInformation Network AG and its affiliates, if not otherwise specified.

Engineering Biology.© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 3

Speakers/Management

Dr. Jürgen Eck (CEO)

• Micro- & Molecular Biologist

• 56 years

• Co-founded BRAIN in 1993

• 25+ y of industry expertise

• Well connected in industry

• Management & Strategy

• R&D, IP and Technology

Dr. Martin Langer (eVP Corporate Dev.)

• Molecular Biologist & Biochemist

• 53 years

• Joined BRAIN in 1995

• 20+ y of management expertise

• Well connected in industry

• Corporate & Business Development

• Marketing & Communication

Manfred Bender(CFO)

• Master of Business Administration

• 53 years


• 20+ y international industry expertise

• Product Development &

Industrial Transactions

• Strategy & Portfolio Management

Ludger Roedder(CBO)

• Diploma in Business Administration

• 54 years


• 20+ y of finance leadership experience

as CFO and CEO in listed companies

• Successful in market cap &

Revenue Growth

• Asset management, M&A


Our ambition:To make products more

efficient and healthy as well as industrial processes more sustainable.


BRAIN is a key enabler of a bio-based economy

Enzymes PerformanceMicroorganisms

BioActiveNatural Compounds

• Our MissionWe discover and produce novel biological

ingredients on the basis of our proprietary BioArchive

for the attractive B2B markets Nutrition & Health,

Skin Care and Industrial BioSolutions

• Our Commitment

To grow as a fully integrated bio-specialty

company providing novel bio-based products

and efficient processes


BRAINs focus on global Megatrends

BioEconomy drivers

Consumer demands

• Healthier food, no compromise on taste

• Natural ingredients for food, feed, cosmetics

• Eco-friendly and sustainable production

Political demands

• Regulations are increasing to protect consumer,

citizens, society, environment

• Increasing efforts to implement UN Sustainable

Development Goals

Industry demands

• Natural ingredients and biological solutions

• First-mover advantage, Speed-up innovation cycles

• Energy- and resource-efficient production processes

BRAIN delivers

Bio-based ingredients

• Access to unique BioArchive collection

• Biological ingredients and solutions for food,

feed, cosmetics and consumer care products

Game-changing technologies

• Sophisticated screening technologies

• Microbial production strains

• Enzymes and biocatalysts for industry

Disruptive product innovations

• First-in-class products & development pipeline

• Substituting chemical by bio-based solutions

• Growing product-based business


Sustainability Development Goals and contributions of BRAIN

GREEN & URBAN

MINING Microbial usageCO2

FRESCO

Engineering Biology.

© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 8CONFIDENTIAL

Bioeconomy is transforming industries

2568

259

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218

Biot

ech

sale

s in

indu

stry

in U

S$ b

n

2010 A 2 2016 A 1,2 2025 E

1.367

355

105

• In 2016, global industrialbiotech sales were at US$ 355 bn 1, 5

• Revenues of biotech

sales are expected togrow to US$ 1.367 bn in 2025

• CAGR of Biotech sales

(2010-2016) was 18,6% 2

and is expected to be16,2% (2016-2025) 3

• CAGR of Chemical

market was 3,4% (2010-

2016) 4

The global chemical industry is transforming: Growing biotech sales in industry subsectors

Biotechnology share of total

chemicalindustry2,6

6.2% 9.3% c25%

Sources: 1German Bioeconomy Council (2016); 2Festel et al. (2012); 3Bio-Based.eu (Aug 2017); 4Statista (2019); 5USDA (2008, 2018) 6CEFIC (2018)

Consumer Chemicals

Specialty Chemicals

other


Key facts about BRAIN

LLC

European leader in BioEconomy• Founded 1993

• >300 staff employed

• Since 2016 listed at Frankfurt Stock Exchange

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 (>100 industrial partnerships)

Growth opportunities• Further growth with improved own product business

• Pipeline of own product candidates

• Ongoing internationalization of business

• M&A track-record and integration expertise


BRAIN BioArchive

• Unique collection of enzymes, microorganisms

and natural compounds

• BioArchive fully owned by BRAIN

Metagenome libraries

43

Habitat collections and environmental

samples

450

Characterized Microorganisms

53.000Plant fractions

available for isolation campaigns

13.000

Giga-bp DNA ready to screen

231

Natural and naturally inspired compounds

49.500Reusable ready-to-

screen Metagenome clones

300 Mio.Gene libraries available for screening

464

Samples derived from edible biomaterials

11.700


More than 100 exclusive

partner collaborations successfully completed

Enzymes

PerformanceMicro-

organisms

BioActiveCompounds

Selected industry partners of BRAIN


Monetizing the BioArchive

BRAINBioArchive

EnzymeTechnologies

PerformanceMicroorganismTechnologies

BioActiveCompoundTechnologies

Natural resources

Technology plattforms

Active naturalingredients

Tailor-madeSolutions forIndustry

New ProductDevelopment

ProductSales

Enzymes

PerformanceMicro-

organisms

BioActiveCompounds

Business models and growth pillars


BUNutrition& Health

BUSkin Care

BUIndustrial

BioSolutions

Enzymes BioActivesStrains

Three business units addressing attractive markets

Starter Culturesand PerformanceMicroorganisms

forGreen Mining

CO2-to Bioplastics

EnzymesStarter Cultures

Natural Ingredientsfor

Food, Feed, Pet food, Beverages

Active IngredientsFormulated Ingredients and White Label Systems

for Biological Skin Care


Business models & growth pillars

CONFIDENTIAL

Tailor Made Solutions Products

Growing Product Sales• Product sales account for more

than 60% of the BRAIN revenues

• Portfolio of >100 specialty

B2B products

• Business: product sales

New Product Development• Pipeline of 12 R&D programs

fuelling product business

• Businesses: a) product sales

b) product scalable royalties

via industrial partnerships

Programs for Industry• BRAIN AG has a long track

record with dedicated

contract R&D programs

• Business: tech-access,

fees and milestone

payments or royalties


Growing product sales: Top 10 enzyme products

< 10% 10-20% > 20%

Brand Enzyme Class Application Affiliate Growth

YOY

FlavorproTM Protease FLAVOURcreation

FlavorproTM Peptidase FLAVOURdebittering

PromodTM Protease PROTEIN modificationgluten

PromodTM Protease PROTEIN modificationhydrolysates

DepolTM Betaglucanase FRUIT / VEGETABLES Naturals extraction

NATUZYM Pectinase Fruit / Beveragejuice yield increase

Pectinase Polygalacturonase FRUIT / VEGETABLES juice yield improvement

LipomodTM Esterase DAIRYflavour

D-zym Glucoamylase STARCH / BioETOHsaccharification

D-zym Alpha-amylase STARCH / BioETOHliquefaction


New Product Development pipeline

• Further product revenues from new product development in 2018/19 expected

• BRAIN plans to be supplier of active ingredient in 7 out of 12 programs

Pipeline Partner R&D Own Production

BU Nutrition & Health

Salt taste enhancer 1.0 US-CPGC No

Salt taste enhancer 2.0 Yes

DOLCE Natural Sweet Solutions Roquette No

DOLCE Natural Sweet Enhancers Roquette No

Starch processing enzymes WBT Yes

Natural beverages Suntory UK Yes

Natural antimicrobials Jap. Bev-Co. No

Specialty Enzymes Food Biocatalysts Yes

BU Skin Care & Cosmetics

Aurase SolasCure Yes

BU Industrial BioSolutions

Gold from Waste Streams Yes

Green Metal Mining CyPlus Under discussion

CO2 for value chemicals Südzucker No

Market


New Product Development: Selected business updatesGreen MetalMining

Natural sweetener/enhancer

Wound managingenzymes

Natural Preservatives

CO2 fixingmicroorganisms


New Product Development: Selected business updates

Green Metal Mining


Wound managing enzymes


Natural Ingredients forfood safety and security


FRESCO: Natural microbial control for food safety

Goal: sustainable use of food products

• Globally, 1.3 billion tons of food are thrown away p.a.- 180 to 190 kg per head1;2

• Food losses worldwide: 30 and 40%2

• Approximately 70% of food losses are post-harvest losses3

• One quarter saved, could feed 870m people3

• 21% of food waste arises from spoilage4

Source: 1 New York Times 2017;2 WWF Deutschland 2015; 3 UN F.A.O. 2015; 4 wrapni.org.uk 2011

Need for natural preservatives to reduce post-harvest losses


BRAIN Solution

• Natural preservatives from the BioArchive

• Joint industrial partnership of AnalytiCon

Discovery GmbH, BRAIN AG and a globally

acting Japanese beverage company

• Further companies invited to join FRESCO

Market

• Total biocide market: 8.5 bn US$1

• Actual antimicrobials / preservatives

are under discussion; not only in

food sector

• Increased consumer demand for

healthy, all natural food and clean

label

Source: 1 gminsights.com

FRESCO: Natural microbial control for food safety



Green Metal Mining




Biological process forenvrionmental-friendlyaccess to preciousmetals as gold and silver


Study of Umweltbundesamt concerning industrial metals

• German Umweltbundesamt sees a high risk of reduced access to raw materials• Current technologies (table 18) show a hig ecological damage for metals like gold,

platinum, palladium. Alternative access (e.g. bio-recyceling) is recommended.


Green & Urban Mining – need for biological solutions

• Challenge: Find sustainable alternative for use of chemicals in gold production

• BRAIN solution: Microorganisms for gold mining in ore and wastestream

BioFlotationTech-scale-plant at BRAIN

Mobile BioXtractor foron site-validation on customers mines


Chemicals-replacing microorganisms for Green & Urban Mining

B: Gold & Silver from secondary resources

• Program and IP with BRAIN

• BioXtractor as pilot plant

• E-scrab globally : 42 mio t p.a. (D: 1.8 mio t)

• 1 ton computer platines may contain up to

250 g gold and up to 1 kg silver (~ 200 x

higher concentrated than in average ore)

• Business model:

Joint development and marketing

A: Gold & Silver from ore

• Partnered with

• Global mining chemicals market US$ 10 bn

(outlook 2017-2026)

• Business model:

Fees, milestone payments & royalties for BRAIN

Additional production of performance micro-

organisms through BRAIN under discussions

Two running businesses at BRAIN

Upside: Technology can be adapted on other precious metals (IP with BRAIN)

Source: Research and Markets, 2018; Gold.de; United Nations University, 2014; https://de.statista.com, 2017



Green Metal Mining




Natural ingredientsfor healthy, calorie-reduced nutrition


BRAIN Solution:

• Next generation natural sweetener

and sweet taste enhancer

Global sugar market:• > 61 bn US$2, 185 mio tons1 (2017)

• Big potential for natural sweet solutions with

currently only 1% market share3

Source: 1USDA 2016, 2Finanzen.net 2017, 3LMC-Report 2015

Sugar (82% of total sweetener market)

High fructose corn syrup

Others (e.g. sugar alcohols)

Natural High Intensity Sweeteners (HIS)

Sources: 1USDA 2017, 2Finanzen.net 01/2018, 3LMC-Report 2015 & nutraceuticalsworld.com 2017

DOLCE program – next generation natural based sweeteners


Health care costs from malnutrition in Germany

Source: PLOS ONE | DOI:10.1371/journal.pone.0135990 September 9, 2015

Results:In Germany, annual health care costscoming from mal nutrition habits sum upto 16.8 bn € per year.


DOLCE program – next generation natural based sweeteners

Reshape business options

• Increase business development

to reach out to new DOLCE

members

• Easier access to the program

for non-exclusive partnerships

• In March 2019 new globally

acting Europe-based member

announced in field “beverages”

• Exclusive partnership for

category “non-alcoholic

beverages” in place

Actual development in DOLCE

• Program successful and on track

• Formulation of novel natural

sweeteners and sweet taste

enhancers

• Several milestones achieved in

first two years of partnership


Microbial CO2 fixationand utilisation in a BioRefinery approach


BRAIN technology suitable for CO2 utilizationA modular BioRefinery concept

power plant

bioethanol plant

BRAIN BioArchives& Biodiversity

wind

sunlight

Process Development& DSP

chem. redox

neg. Ktrl.

Example: CO2 to carotenoid s (C40)

Target molecules: > 1.500 €/t


Biological CO2 Fixation

• Biogenic CO2 Fixation

Partner: SüdzuckerField: Biological CO2 FixationSource: Biogenic CO2Product: Dicarbonic acidDeal: R&D partnership,License for Biomass

• Upside: other products1. Terpenoids (e.g. squalane(C30) with 37.000 € / ton; (www.synbiowatch.org)

• Fatty acids (1.500 € / ton for C16)

• Driver: Use of CO2 as carbon source (feedstock)

• Need for more sustainable processes


Biological ingredient forpatient friendlywound management


Aurase® for advanced wound management

• Chronic wounds: growing in incidence (diabetis and ageing)

• In 2012 worldwide 40.5 mio patients1, 2.7 mio in Germany2

• Costs per patient in Germany: 9.570 € p.a., ~20% for medication3

• Global wound care market 2016: 17.7 bn US$4 and at

22 bn US$ by 2022; CAGR of 3.7% (2017-2022)4

Target indications• Aurase® is an enzyme for wound cleaning

• Aurase® IP is with BRAIN (WO 2010/099955)

Sources: 1 Global Industry Analysis, Inc. 2016; 2 PMV 2015; 3 Stat. Bundesamt 2013; 4 MarketsandMarkets,2017

Chronic wounds a growing global problem:

BRAIN Solution:


SolasCure® Ltd. – revolutionising wound care

• Mission SolasCure: support healthcare professionals with groundbreaking wound care products

• BRAIN has licensed IP for the commercialization of future Aurase®-based products to SolasCure

• BRAIN will supply the enzymatic ingredient Aurase® to SolasCure

SolasCure is part of BRAIN’s strategy to strengthen growth

SolasCure team with successful track records in wound business

• Dr Sam Bakri (Executive Chairman): healthcare entrepreneur,

co-founder of SolasCure and other medical technology companies

• Dr David Goldsmith (CMO): several academic positions in Europe

• Prof Keith Harding (Chairman of the Medical Advisory Board):

Director of the ‘Welsh Wound Innovation Centre’ at Cardiff University


Key Financials


Statement of the CEO Dr. Jürgen Eck:

„We are looking back on a successful first half of the

2018/19 financial year, with a significant increase of

60.7% in total operating performance compared with

the previous year.

As in the first quarter of 2018/19, both business segments

contributed to this growth. Our product scalable BioIndustrial segment again accounted for the

lion's share of the increase in total operating performance. We regard this as a clear confirmation of

our strategy to achieve our growth targets mainly by continuously increasing our product scalable

business. The implementation of the three business units Nutrition & Health, Skin Care and

Industrial BioSolutions, has helped us sharpening our market focus.

Based on the first half of the 2018/19 financial year, we continue to expect a positive business

development with a double-digit increase in total operating performance."

Statement


Key consolidated financials

Total Operating Performance by Segments [€m]6M 2016/17 6M 2017/18 6M 2018/19

Adjusted EBITDA [€m]6M 2016/17 6M 2017/18 6M 2018/19

-2.1 -1.7

BioScience BioIndustrial *Change yoy

Key consolidated financials 6M 2018/19

6,9 5,6 6,2

6,56,8

13,7

6M 6M(in € million) 2018/19 2017/18Revenues 18.5 10.7

Total operating performance1 19.8 12.3BioScience 6.2 5.6

BioIndustrial 13.7 6.8

Adjusted EBITDA2 -1.7 -2.8Acquisition and integration costs -0.0 -0.8Employee participation programAnalytiCon Discovery GmbH -0.0 -0.1

Share based compensations -0.0 0.0

EBITDA -1.8 -3.7

Operating cash flow -2.9 -2.831.03.2019 30.09.2018

Cash 18.5 25.5

1 Revenues + change in inventories + other income + R&D grants2 The reconciliation from adjusted to unadjusted EBITDA can be found in the quarterly

statement for the period ended March 31, 2019.

-2.8

13.3 12.3

19.8+61%*


• BRAIN Group revenues increased by 73.0% to €18.5m (PY €10.7m)

• Group generated a total operating performance (TOP) of €19.8m vs. PY €12.3m (+60.7%)

• The “BioScience” segment increased its TOP by 10.4% to €6.2m (PY €5.6m), mainly due to new and follow-up projects as well as received milestones

• TOP of the “BioIndustrial” segment increased to €13.7m (+102.1%), with positive impacts coming from consolidation of Biocatalysts as well as an increasing operating business

• The reported Group adjusted EBITDA accounts for €-1.7m (PY €-2.8m), driven mainly due to grown revenues and a lower material cost ratio, adjusted for:

• €35k for personnel exp. resulting from a share-based compensation scheme at AnalytiCon

• €41k for personnel exp. resulting from ESOP

• €6k for acquisition- and integrations cost

• The brutto cash-flow at €-3.4m vs. €-5.3m reflects the stronger operating performance y-o-y,Cash position as at 31.03.2019 accounts for €18.5m

Key Financials 6M FY 2018/19


Shareholder structure of BRAIN

• Current number of shares: 18,055,782

• Free float of 45.0%

• Strong long term investor base

• ~ 7,000 shareholders

Free Float

DAH BeteiligungsGmbH

MP Beteili-gungs-GmbH

Notes

Founders/Management

8,7%

37,9%44,8%

8,6%

Status May 17, 2019WKN 520394 / ISIN DE0005203947 / Symbol BNN; Prime Standard Frankfurt/M


Financial Calendar FY 2018/19 and beginning FY 2019/20

May 29, 2019 Publication of the interim report for the period ending 31 March 2019 (6M)

August 30, 2019 Publication of the quarterly report for the period ending 30 June 2019 (9M)

January 14, 2020 Publication of the annual report for theperiod ending 30 September 2019 (12M)

February 28, 2020 Publication of the quarterly report for the period ending 31 December 2019 (3M)

March 05, 2020 Annual General Meeting in Zwingenberg, Germany


Analysts covering BRAIN

Analyst Company Phone Number

Falko Friedrichs

Gunnar Romer

Pierre Corby

Deutsche Bank, Frankfurt

Deutsche Bank, Frankfurt

ODDO BHF, Paris

+49 69 91 03 62 70

+49 69 91 03 19 17

+33 1 44 51 84 04

Markus Mayer

Laura López Pineda

Baader Helvea, Munich

Baader Helvea, Munich

+49 89 51 50 18 18

+49 89 51 50 18 04


Thank you for your interest.BRAIN AktiengesellschaftDarmstädter Straße 34-36

64673 Zwingenberg, Germany

+49 (0) 6251-9331-0

www.brain-biotech.de

Your Contact:

Dr. Jürgen Eck, Manfred Bender, Ludger Roedder, Dr. Martin Langer

[email protected], [email protected], [email protected], [email protected]

+49 (0) 6251-9331-16

@BRAINbiotech

BRAIN AG

http://www.brain-biotech.de/

mailto:[email protected]




sustainability. efficacy. health....starch processing enzymes wbt yes natural beverages suntory uk...

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