Presentation of 3M Figures FY 2018/19 - BRAIN - Key Enabler for a Biobased Economy - Brain Biotech
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Presentation of 3M Figures FY 2018/19
BRAIN – Key Enabler for a Biobased Economy
[We are convinced that the bioeconomy is
gathering further momentum and we are
clearly sensing the confidence that the 21st
century will enjoy a more sustainable
economy.]
Zwingenberg, 28 February 2019 Dr. Jürgen Eck, CEO BRAIN, Annual Report 2017/18
Engineering Biology.
© 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 28 February 2019. 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. The term “BRAIN”, as used in this presentation means B.R.A.I.N. Biotechnology Research
and Information Network AG and its affiliates, if not otherwise specified.
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 2
Speakers/Management
Dr. Jürgen Eck Manfred Bender Ludger Roedder Dr. Martin Langer
(CEO) (CFO) (CBO) (eVP Corporate Dev.)
• Micro- & Molecular Biologist • Master of Business Administration • Master of Business Administration • Molecular Biologist & Biochemist
• 56 years • 53 years • 53 years • 53 years
• Co-founded BRAIN in 1993 • Joined BRAIN in 2018 • Joined BRAIN in 2018 • Joined BRAIN in 1995
• 25+ y of industry expertise • 20+ y of finance leadership experience • 20+ y international industry expertise • 20+ y of management expertise
• Well connected in industry as CFO and CEO in listed companies • Product Development & • Well connected in industry
• Management & Strategy • Successful in market cap & Industrial Transactions • Corporate & Business Development
Revenue Growth • Strategy & Portfolio Management
• R&D, IP and Technology • Marketing & Communication
• Asset management, M&A
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 3
Our ambition:
To make products more
efficient and healthy as well as
industrial processes more sustainable.
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 4
BRAIN is a key enabler of a bio-based economy
• Our Mission
We 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
Enzymes Performance BioActive
Microorganisms Natural Compounds
• Our Commitment
To grow as a fully integrated bio-specialty
company, by providing novel bio-based products
and efficient processes
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 5
Three business units within BRAIN Group
BU BU
Industrial Nutrition
BioSolutions & Health
Starter Cultures
and Performance Enzymes Strains BioActives Enzymes
Microorganisms Starter Cultures
for Natural Ingredients
Green Mining for
CO2-to Bioplastics Food, Feed,
Pet food, Beverages
BU
Skin Care
Active Ingredients
Formulated Ingredients and White Label Systems
for biological skin care
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 6
Business models & growth pillars
Tailor Made Solutions Products
Programs for Industry New Product Development Growing Product Sales
• BRAIN has a long track • Pipeline of 12 R&D programs • Product sales account for more
record with dedicated fuelling product business than 60% of the BRAIN revenues
contract R&D programs • Businesses: a) product sales • Portfolio of >100 specialty
• Business: tech-access, b) product scalable royalties B2B products
fees and milestone via industrial partnerships • Business: product sales
payments or royalties
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 CONFIDENTIAL 7
Growing product sales: Top 10 enzyme products
< 10% 10-20% > 20%
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 8
New Product Development Pipeline
• Additional product revenues from new product development in 2018/19 expected
• BRAIN plans to be supplier of active ingredient in 7 out of 12 programs
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 9
Statement
Statement of the CEO Dr. Jürgen Eck:
„We are very satisfied with the performance of the BRAIN
Group in the first quarter of the financial year 2018/19 with a
growth in total operating performance compared to the previous
year. It is satisfactory to learn that both business segments
contributed to a positive start in the year.
Of strategic importance is the product-scalable BioIndustrial segment. In this segment we were able
to report a significant increase in the total operating performance, but also organically meaning
without the contribution of our newly acquired subsidiary Biocatalysts Ltd we were able to generate
positive growth. The set-up and implementation of the three business units Nutrition & Health, Skin
Care and Industrial BioSolutions, focusing on the most promising markets, has contributed to this
development.
Based on the first quarter, we continue to expect a positive business development with a double-
digit increase in total operating performance."
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 CONFIDENTIAL 10Key Financials
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0Key consolidated financials
Total Operating Performance by Segments [€m]
Key consolidated financials 3M 2018/19
3M 2016/17 3M 2017/18 3M 2018/19
3M 3M
9.9
(in € million) 2018/19 2017/18 +64%*
Revenues 9.4 5.3
6.6
Total operating performance1 9.9 6.0 6.0
BioScience 3.4 2.9
6,5
BioIndustrial 6.5 3.1
Adjusted EBITDA -0.0 -1.3 3,4
3,1
Acquisition and integration costs -0.0 -0.3
Employee participation program
-0.0 -0.1
AnalytiCon Discovery GmbH
3,2 2,9 3,4
Share based compensations -0.0 0.0
EBITDA -0.1 -1.7
Operating cash flow -0.1 1.4 Adjusted EBITDA [€m]
3M 2016/17 3M 2017/18 3M 2018/19
31.12.2018 30.09.2018
Cash 23.8 25.5 -0.0
-1.3
-1.9
1 Revenues + change in inventories + other income + R&D grants BioScience BioIndustrial *Change yoy
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 12Key Financials 3M FY 2018/19
BRAIN Group revenues in FY 2018/19 increased by 78.7% to Euro 9.4m (3M 2017/18: Euro 5.3m)
BRAIN Group generated a total operating performance (TOP) of Euro 9.9m (3M 2017/18: Euro 6.0m)
• Revenues of the BioIndustrial segment increased by 116.6% to Euro 6.6 m (3M 2017/18: Euro 3.1m) and
TOP increase by 108.9% to Euro 6.5m (3M 2017/18: Euro 3.1m)
• The BioScience segment increased its TOP by 15.3% to €3.4m (3M 2017/18: Euro 2.9m), mainly due to
new and follow-up projects as well as received milestones. Revenue increased by 26.3% from €2.2m to
€2.8m.
The adjusted BRAIN Group EBITDA increased from Euro -1.3m (3M 2017/18) to -0.0m
• BioIndustrial segment with positive EBITDA Euro 0.8m (3M 2017/18 -0.1m)
• BioScience adj. EBITDA increased about Euro 0.3m to Euro -0.9m (3M 2017/18 -1.2m)
The brutto cash-flow at Euro -0.8m (3M 2017/18 Euro -2.5m) reflects the stronger operating perfomance yoy
• The operating cash-flow descreased from Euro 1.4m (3M 2017/18) to Euro -0,1m due to last years one
time effects
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 13Business Events
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0Business events in first quarter of FY 2018/19
• Suntory Beverage & Food Europe and BRAIN AG start Joint Development Program
BRAIN AG and Suntory Beverage & Food Europe (SBFE), the regional division of
Suntory Beverage & Food operating in the non-alcoholic beverage business in EMEA
through a broad variety of brands, announced on 26 November 2018 the start of a JDP to
develop new natural beverage solutions for specified product categories of SBFE‘s
portfolio. The joint development activities will address growing demands for new varieties
of natural ingredients in beverages.
• Global beverage company joins BRAIN’s newly established FRESCO program for
nature-based preservation ingredients
BRAIN AG, AnalytiCon Discovery GmbH and a leading consumer product market player
with a highly diverse portfolio of beverage products, headquartered in Japan, announced
on 11 December 2018 the start of a strategic partnership within the FRESCO program.
Within this program, BRAIN Group is developing bioactive natural ingredients with
preserving or preservation enhancing traits for diverse industrial applications. The
program will also contribute to reducing product losses resulting from microbial decay.
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 15FRESCO: 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 feeds 870m people3
• 21% of food waste arises from spoilage4
Need for natural preservatives to reduce post-harvest losses
Source: 1 New York Times 2017;2 WWF Deutschland 2015; 3 UN F.A.O. 2015; 4 wrapni.org.uk 2011
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 16FRESCO: Natural microbial control for food safety
BRAIN Solution Market
• Natural preservatives from the BioArchive • Total biocide market: 8.5 bn US$1
• Actual antimicrobials / preservatives
are in discussion; not solely in food
sector
• Increased consumer demand for
healthy, all natural food and clean
• Joint industrial partnership of AnalytiCon
label
Discovery GmbH, BRAIN AG and a globally
operating Japanese beverage company
• Additional companies invited to join FRESCO
Source: 1 gminsights.com
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 17Business events after end of first quarter of FY 2018/19
• Manfred Bender takes over as CFO and Ludger Roedder as CBO of BRAIN
As of 1 January 2019 Manfred Bender was appointed as Chief Financial Officer (CFO) of
Manfred Ludger
the Management Board of BRAIN AG. On the same day Ludger Roedder was appointed Bender Roedder
as Chief Business Officer (CBO) on the Management Board of BRAIN AG.
• Scheduled exercise of put option rights of shareholders of a subsidiary
After the end of the first quarter, BRAIN AG increased its financial share at AnalytiCon
Discovery GmbH to 99.70% through exercising the put option rights of the minority
shareholders. BRAIN AG will pay out the purchase price in the lower seven-digit range
over a period of three years to the shareholders.
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 18Shareholders & Calendar
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0Shareholder structure of BRAIN
DAH Beteiligungs Founders/
GmbH Management
Notes
8,6% 8,7%
• WKN 520394 / ISIN DE0005203947 /
Acronym: BNN
• Prime Standard Frankfurt/M
45,0% • IPO on February 09, 2016
37,7%
• Current number of shares: 18,055,782
• Free float of 45.0%
MP Beteili-
• Strong long term investor base
Free Float gungs-GmbH • 7,000 shareholders
Status February 12, 2019
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 20Financial Calendar FY 2018/19
07 March 2019 Annual General Meeting in Zwingenberg,
Germany
31 May 2019 Publication of the mid-year financial
statement for the period ending
31 March 2019 (6M)
30 August 2019 Publication of the quarterly report for
the period ending 30 June 2019 (9M)
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0 21Thank you for your interest.
BRAIN Aktiengesellschaft
Darmstädter Straße 34-36
64673 Zwingenberg, Germany
+49 (0) 6251-9331-0
www.brain-biotech.de
Your Contact:
Dr. Martin Langer
ml@brain-biotech.de
+49 (0) 6251-9331-16
@BRAINbiotech
BRAIN AG
Engineering Biology.
© BRAIN Aktiengesellschaft Zwingenberg Germany www.brain-biotech.de +49 (0) 6251-9331-0You can also read
