Presentation of 9M Figures BRAIN AG...Key Financials 9M 2016/17 (unaudited) 1) Revenues + change in...
Transcript of Presentation of 9M Figures BRAIN AG...Key Financials 9M 2016/17 (unaudited) 1) Revenues + change in...
Engineering Biology.
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Presentation of 9M Figures BRAIN AG
BRAIN – Key Enabler for a Biobased Economy
Zwingenberg, August 31, 2017
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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 August 31, 2017. 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.
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Speakers/Management
Dr. Jürgen Eck
(CEO)
• Micro- & Molecular Biologist
• 55 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
• 51 years
• Joined BRAIN in 1995
• 20+ y of management expertise
• Well connected in industry
• Corporate & Business Development
• Marketing & Communication
Frank Goebel
(CFO)
• Master of Business Administration
• 47 years
• Joined BRAIN in Feb. 2015
• 17+ years structured/
corporate finance expertise
• Well connected in finance community
• Asset management, M&A
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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
specialty and consumer goods segments of the chemical industry.
• We are on our way to become a fully integrated bio-specialty company.
Enzymes Microbial Strains BioActives
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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."
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Financial Highlights
unaudited
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• BRAIN Group revenues increased by 8% to Euro 17.9m (9M 2015/16: Euro 16.5m)
• Group generated a total operating performance (TOP) of Euro 19.6m (9M 2015/16: Euro 19.0m)
• Revenue of the “BioIndustrial” segment increased by 8% to Euro 10.0 million (9M 2015/16: Euro 9.3m)
and TOP was stable at Euro 9.8m (9M 2015/16: Euro 10m), mainly due to means of reducing working
capital and corresponding reduction in inventories
• The “BioScience” segment increased its TOP by 8% to Euro 9.9m (9M 2015/16: 9.1m)
• The adjusted Group EBIT improved from Euro -5.2m (9M 2015/16) to -4.4m, adjusted for:
• Euro 0.6m for personnel exp. resulting from a share-based compensation scheme at AnalytiCon
• Euro 2.4m from post IPO framework agreement (no cash and equity-effect for BRAIN)
• The operating cash-flow improved significantly to Euro -4.2m vs. Euro -6.9m (9M 2015/16)
• “BioIndustrial” segment generated a positive EBIT in 9M 2016/17 vs. Euro -0,3m (9M 2015/16)
Key Financials 9M 2016/17 (unaudited)
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Key Financials 9M 2016/17 (unaudited)
1) Revenues + change in inventories + other income including R&D grants
(in Euro million) 9M 9M
2016/17 2015/16
Revenues 17.9 16.5
Total operating performance1 19.6 19.0
BioScience 9.9 9.1
BioIndustrial 9.8 10.0
Adjusted EBIT -4.4 -5.2
IPO one-off costs 0 -1.1
Share based employee compensation AnalytiCon -0.6 -1.3
Post IPO-Framework -2.4 0
EBIT4 -7.3 -7.7
Operating cash flow2 -4.2 -6.9
30.06.2017 30.09.2016
Cash & cash equivalents3 13.5 18.3
1) 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
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Financials
Total Operating Performance by Segments 1) 2) 3) (in € m)
4,3 5,6 8,9
12,3 12,4 9,1 9,9
3,6 4.7
5.0
13.5 13,9
10,0 9,8
2011/12A 2012/13A 2013/14A 2014/15A 2015/16A 2015/16 9M 2016/17 9M
BioScience BioIndustrial
25.7
13.8
10.2
7.9
19.0* 19.6*
26.1
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
(*Adjusted) EBIT (in €m)
-5,7 -4,4 -4,8 -3,9 -7,6 -5.2* -4.4*
2011/12A 2012/13A 2013/14A 2014/15A 2015/16 9M³
Total Operating Performance 9M 1) 2) (in € m)
2016/17 9M 2015/16A³
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Highlights
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Significant events in third quarter of FY 2016/17
• BRAIN and Roquette successfully complete multi-year research project
The main objective of this research project was to improve the efficiency and
sustainability of manufacturing processes for food substances.
BRAIN developed and optimized biological resources by making recourse to its
in-house BioArchive. BRAIN and Roquette are also cooperating in the DOLCE program to
develop and produce a new generation of natural sweeteners for foods.
• BRAIN achieves important milestone in its partnership with Diana Pet Food
BRAIN and Diana Pet Food are collaborating in a strategic partnership in taste
research among cats. BRAIN reached a further important milestone in the strategic
partnership. The parties have agreed confidentiality about the milestone and
milestone payment made to BRAIN. The early achievement of a first milestone was
already published in June 2016.
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Significant events in third quarter of FY 2016/17
• BRAIN receives award for the content and design of its first annual report after its IPO
The first annual report of BRAIN after its IPO has received a Silver Certificate award
for its content-related design as well as for its conceptual and design implementation
as part of the renowned Best of Content Marketing Award in the “Reporting” category
(Print Industry Annual Report).
• BRAIN ranks among the most innovative companies in Germany in 2017
In May 2017, business magazine “brand eins” and online portal Statista paid tribute to BRAIN
as an innovative company. Accordingly, BRAIN ranks as one of 424 German companies
that significantly outshine their competitors with their services and products, smart
processes or special corporate culture.
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Events after the end of the quarter
• Global beverages company joins DOLCE
BRAIN AG, AnalytiCon Discovery GmbH and Roquette announced on 12 July that a
globally operating US beverage company has signed as a new member for the
strategic DOLCE partnership. The beverage company receives exclusive global access to
DOLCE sweeteners in the “nonalcoholic beverages” category, as well as non-exclusive global
access to the “milk and yoghurt beverages” and “ginger ale and tonic” categories. The two
product categories “breakfast cereals” and “snacks” were already contractually agreed with a CPGC in
November 2016. The objective is to reduce the sugar and calorie content in food.
• Successful conclusion of a joint research project between BRAIN and BASF
The research collaboration aims to identify and develop new substances for cosmetics
applications. BRAIN contributed expertise in identifying natural active molecules with the
help of special receptor technology. BASF provided extensive expertise in the product
development, production process and marketing strategy areas. A first product has already
been launched in the market.
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Events after the end of the quarter
• BRAIN BioXtractor – Next Generation Metal Extraction
There is an increasing demand for precious metals such as gold, silver, platinum or palladium, which are a
key resource for many high tech applications. BRAIN has developed game changer technologies that allow
us to isolate e.g. gold out of secondary resources and waste streams. The technologies are based on
microorganisms identified in the BRAIN BioArchive and further optimized. On August 17, 2017, the
BioXtractor arrived in Zwingenberg. The pilot container is ready to get explored by enterprises willing to
test, co-develop or license our microorganisms or the entire technology package at their own production
plants worldwide.
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Shareholder structure & proceeds
• 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
• Net proceeds from the offering to be used as follows:
• 60% Research & Development
• 20% M&A
• 20% Working capital and general purposes
• Re-placement of 1,21 million shares of Green
Industries Group GmbH & Co. KG to institutional
investors on August 29, 2017
• Current number of shares: 16,414,348
• Strong long term investor base
• Free float of 49%
• >5,000 Shareholders (Retail)
Free Float Founders/
Management
MP Beteiligungs-GmbH
Shareholder structure of BRAIN AG
Notes
IPO BRAIN AG
Proceeds
Re-placement shares
12%
39%
49%
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Financial Calendar 2017
August 31, 2017 Publication of the quarterly report for the
period ending 30 June 2017 (9M)
January 11, 2018 Publication of the annual report for the
period ending 30 September 2017 (12M)
March 08, 2018 Annual General Meeting in Zwingenberg,
Germany
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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
+49 (0) 6251-9331-16