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Biotage Group Q221

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Agenda

2

» Summary and Overview

» Financials

» Focus Areas 2021 and beyond

» Summary

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Summary and Overview

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Key Highlights Q221

92.3 MSEK

+35.3 MSEK

Cash flow

» Historic sales quarter exceeding 300 MSEK for the first time. Organic growth with strong contribution from all product areas and regions.

» Positive operating margin development while achieving double digit growth.

» Strong cash flow from operating activities mainly driven by a higher net result and decreased working capital

» Continued strong balance sheet – despite repayment of loans of 110 MSEK and dividend payments of 97.8 MSEK

161.1 MSEK

+129.0 MSEK

Net cash

303.5 MSEK

19.4% (organic 32.1%)

Net Sales

20.6% +11.0 p.p.

Operating margin, EBIT

Note: Orange indicators are comparison YoY vs PY

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» Americas had a good bounce back,reporting growth despite the negative FX development. With the local COVID-19 restrictions easing up, higher activity was recorded in the Analytical area as well as in Organic and Biomolecules.

» EMEA reported growth in all product areas, with Scale-Up being the main driver with customers within vaccine development and manufacturing.

» APAC continued its growth momentum with India and Japan both having strong quarters.

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Geographic Sales Performance Q2

38%

Americas

Growth+17.9%

30%

EMEA

Growth+45.0%

32%

APAC

Growth+3.6%

Note: Information refers to share of total sales and reported in Q2 compared to the same quarter last year.

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» Organic had a strong quarter with growth across all geographic areas, with the biggest impact from Americas.

» Analytical returned to growth after twelve slower months. Americas had the most impactful turnaround being the quarter’s growth engine.

» Scale up had a strong quarter with EMEA’s continued involvement in COVID-19 vaccine development and manufacturing.

» Biomolecules returned to growth driven by Americas and EMEA.

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Net Sales – Product Area Q2

32%

Analytical

Growth+15.7%

50%

Organic

Growth+21.2%

15%

Scale up

Growth+20.7%

3%

Biomolecules

Growth+25.0%

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» Systems growth - positively impacted by Americas Analytical and Organic business

» Service growth - across all geographic regions and product areas

» Consumables growth - largely impacted by the EMEA Scale up business

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Net Sales – Aftermarket vs. Systems Q2

48%

Systems

Growth+16.5%

42%

Consumables

Growth+24.9%

10%

Service

Growth+12.3%

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Commercial launches and investments

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Commercial launches in May & June

Biotage® PhyPrepBiotage® Extrahera™ LV-200

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Commercial launches in pipeline

July

TurboVap® 96 DualBiotage® Extrahera™ HV-5000

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Biotage® Selekt Enkel

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Investing for the future – in production facilities» Cardiff site in Wales, UK

» New purpose-built facilities under construction;

» specialized for production of Scale up columns;

» chemistry media production purposes;

» greater output and improved working environment; and

» several automation projects ongoing.

» San Jose site in California, US

» Increase production capacity of consumable kits and buffer solutions to support the Biotage® PhyPrep, launched in June.

» Automated solutions with built in QC control ongoing.

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Financials

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Biotage Group Financial Highlights Q2

Improved organic growth and operating margins

(MSEK) Q221 Q220 Variance

Net sales 303.5 254.2 49.2

Change, % 19.4% -9.9% 29.2 p.p.

- Organic growth, % 32.1% -12.1% 44.2 p.p.

- Currency effects, % -12.7% 2.2% -14.9 p.p.

- Acquisitions /divestments, % - 0.0% -0.0 p.p.

Gross profit 182.2 154.1 28.1

Gross margin, % 60.0% 60.6% -0.6 p.p.

Operating profit (EBIT) 62.5 24.5 38.0

Operating margin (EBIT), % 20.6% 9.6% 11,0 p.p.

Net Result 46.0 32.2 13.8

Earnings per share, SEK 0.70 0.49 0.21

Cashflow from operating activities 92.3 57.0 35.3

Key figures

Quarterly Net sales and EBIT margin development last three years

-

5%

10%

15%

20%

25%

30%

160

210

260

310

MSE

K

Net sales EBIT %

» Net sales increased by 19.4% to 303.5 MSEK (254.2) exceeding 300 MSEK for the first time in a quarter. Organically sales increased by 32.1%.

» Gross profit margin decreased by -0.6 percentage points mainly due to an adverse aftermarket share development.

» Operating margin improved by 11.0 percentage points to 20.6% from 9.6% PY. The improvement is mainly due to higher net sales and decreased expenses.

» Earnings per share increased by 0.21 SEK to 0.70 SEK (0.49).

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Biotage Group Cash Flow Q2

Increased cash flow mainly due to higher net result and decreased working capital

Cash & cash equivalent development over a three-year period

» Cash flow from operating activities increased by 35.3 MSEK due to higher profit and a decrease in working capital:

» Inventory increased due to increased use of sea freight and material with long lead times – to secure delivery on time to customers.

» Operating receivables and liabilities moved in the right direction.

» Investments stayed nearly flat at 16.4 MSEK (16.0).

» Dividend to shareholders of 97.8 MSEK and a repayment of loans of 110 MSEK.

» Cash and cash equivalents increased by 17.9 MSEK to 278.6 MSEK (260.7 MSEK).

-

75

150

225

300

375

450

MSE

K

Cash and cash quivalents CF operating activities

2021-04-01 2020-04-01

2021-06-30 2020-06-30

Profit/loss before income tax 60 575 35 221

Adjustments for non-cash items 17 857 10 975

Income tax paid -4 117 -1 278

Cash flow from operating activities before changes in

working capital74 314 44 918

Increase (-)/ decrease (+) in inventories -6 367 -4 129

Increase (-)/ decrease (+) in operating receivables 12 873 20 433

Increase (+)/ decrease (-) in operating liabilities 11 463 -4 234

Cash flow from changes in working capital 17 970 12 071

Cash flow from operating activities 92 284 56 989

Acquisition of intangible assets -9 777 -11 622

Acquisition of property, plant and equipment -6 094 -3 556

Acquisition of financial assets -500 -866

Sale of financial assets - -

Cash flow from investing activities -16 371 -16 045

Dividend to shareholders -97 803 -

Repayment of loans -120 786 -6 117

Cash flow from financial activities -218 589 -6 117

Cash flow for the period -142 676 34 827

Cash and cash equivalents opening balance 422 068 231 122

Cash flow for the period -142 676 34 827

Exchange differences in liquid assets -840 -5 257

Cash and equivalents closing balance 278 552 260 692

(KSEK)

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Long-term Financial Targets and Achievements

Note: Performance vs. target (average annually 3-years period)

» Organic growth - achieved 7.8% - target 8%

» Operating margin – achieved 19.6% - target 20%

Close to

target

- % 10%

Achievement: 7.8%

Target: 8.0%

Close to

target

- % 25%

Achievement: 19.6%

Target: 20.0%

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Focus Areas 2021 and beyond

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Focus areas 2021 and beyond

Innovation & Development

Digital Transformation

Sustainability

Ecosystem Management

Operational Excellence

People First

Value added M&A

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Note: Circled prioritized strategies will receive additional attention in FY21

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Summary

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Key Highlights Q221

92.3 MSEK

+35.3 MSEK

Cash flow

» Historic sales quarter exceeding 300 MSEK for the first time. Organic growth with strong contribution from all product areas and regions.

» Positive operating margin development while achieving double digit growth.

» Strong cash flow from operating activities mainly driven by a higher net result and decreased working capital

» Continued strong balance sheet – despite repayment of loans of 110 MSEK and dividend payments of 97.8 MSEK

161.1 MSEK

+129.0 MSEK

Net cash

303.5 MSEK

19.4% (organic 32.1%)

Net Sales

20.6% +11.0 p.p.

Operating margin, EBIT

Note: Orange indicators are comparison YoY vs PY

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