Singular Research Conference September 22, 2016 - Amyris ...
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Singular Research Conference
September 22, 2016
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 1Cautionary Notes
FORWARD LOOKING STATEMENTS
This presentation and oral statements accompanying this presentation contain forward-looking statements, and any statements other than historical facts
could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events, such
as future product sales and product sales growth rates, future product engineering, development, production and scale-up, the ability of Amyris to disrupt
existing markets, future farnesene production costs, future collaboration inflows and profit sharing revenues, and future product performance, that involve
risks and uncertainties. These statements are based on management’s current expectations and actual results and future events may differ materially due to
risks and uncertainties, including Amyris’s liquidity and ability to fund operating and capital expenses, timing and execution risks associated with
manufacturing, uncertainty regarding timing of closing transactions and growth in sales, potential delays or failures in development, production and
commercialization of products, Amyris's reliance on third parties to achieve its goals, and other risks detailed in the “Risk Factors” section of Amyris’s quarterly
report on Form 10-Q filed on August 9, 2016. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as
result of new information, future events, or otherwise.
NON-GAAP FINANCIAL INFORMATION
This presentation and oral statements accompanying this presentation contains both GAAP and non-GAAP financial information. Amyris considers non-GAAP
information to be a helpful measure to assess its operational performance and for financial and operational decision-making. Where non-GAAP financial
measures are presented in these slides, a presentation of the most directly-comparable GAAP financial measure, as well as a quantitative reconciliation of the
differences between the non-GAAP financial measure and the most comparable GAAP financial measure, accompanies such information. In addition, please
note that oral statements accompanying this presentation may include discussion of non-GAAP financial measures. Reconciliation of these non-GAAP measures
to the most comparable GAAP financial measures is contained in Amyris’s earnings press release for the second quarter of 2016, which is available at
investors.amyris.com.
Non-GAAP revenue represents GAAP product revenue plus the cash received from collaborations and grants. Non-GAAP revenue is calculated using GAAP
revenues and adding the related changes in accounts receivable and deferred revenue related to revenue recognized for these collaborations and grants to
equal funds received during the period, along with any funding associated with collaborations.
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 2Our Goal
Making renewable products mainstream
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 3Amyris at a glance
Collaboration &
Strategic partners Commercial products Product sales growth
16
c.a. $50M 15 c.a. 50%
Avg. collaboration
inflows/yr
Brands with “Amyris Consumers touched by
inside” Amyris Product Pipeline
over
500 150M 18
Products
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 4Disrupting global markets with our technology platform
Engineer a living
1 Emeryville, CA, USA
factory
Low-cost
2 production at our Brotas, Brazil
fermentation
facility
b Formulate and sell
Commercialize
3
through through strategic
collaboration partnerships
partners
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 5Our integrated technology platform provides access to a nearly unlimited ingredients market September 22, 2016 Copyright © 2016 Amyris, Inc. All rights reserved. 6
Accelerating the speed of product development
Predictable time to market, beating customer expectations
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 7Our 614 issued and pending patents provide significant entry
barriers and a strong, sustainable competitive advantage
158
25 pending
20379 pending
Biosynthetic
Products
pathways
Broad coverage of isoprenoid Across performance materials,
biosynthesis in microbes fuels, lubricants, personal care
products
• Automated DNA design
and assembly
• High speed genome
Editing (HI-RYSE™)
344
192 pending
• High-throughput
Platform technology
screening methods
• Optimized
fermentation
methods
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 8The value to our customers: high performance, lower
cost and reliable ingredients supply
Low cost
producer
High
High
investment
performance
returns
Sustainably Reliable supply,
produced stable price
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 9Clear leadership in advancing the bio-economy from engineering
microbes to production of multiple commercial products
2015: 2nd fragrance
product successfully
2014: Commercial scaled and planned
scale fermentation for shipment in Q4
2012: Issues identified issues resolved and
in commercial scale-up significant decline in
of Brazil fermentation production cost 2020
plant (Brotas) attained
2015
Sanofi licenses Amyris
anti-malarial
development
2010 2015: Converted $180M
of debt to equity
technology
2014: 1st fragrance 2015: microPharm
product developed platform for drug
2005 2010: Amyris IPO, focusing
and sold to partner discovery
on biofuels market
launched
2015: Farnesene
production costs
Bill Gates funds Amyris
hit record low
to produce a synthetic
$2.18/liter
version of Artemisinin,
an anti-malarial drug
2015: Launched two
first consumer
brands: Biossance
and Muck Daddy
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 10Target developing and producing 3 new molecules per
year through 2020
2016 2020
4
Fermentation
16
Fermentation
products products
Farnesene products
Squalane
Hemi-squalane Fragrance 1 Our technology platform
Farnesene
Myralene
Fene
can access a nearly
HP fene
Flavor & Fragrance
unlimited supply of
Nutraceuticals ingredients without the
Solvents
Diesel Fragrance 2 need to invest in a new
Jet fuel
Biossance production facility for each
Muck Daddy
Artemisinic product
Acid
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 11Farnesene demand is surging and will drive revenue
growth over the next several years
120
Estimated farnesene demand potential
100
80
Metric Tonnes ('000)
60
40
> 80% contracted
20
0
2016 2017 2018 2019 2020
Nutraceuticals Cosmetics Polymers/adhesives Tires/LFR/Other Solvents, incl Myralene
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 12Farnesene: game changing cost evolution
Drivers to production $1.0/L:
Late 2006: Farnesene (fene) identified as target
45 • Co-products
• Low cost feedstock
40 Mid 2007: First drop of fene
• Continued technology innovation
35
Production cost per liter
Mid 2010: Liters of fene
30
($/L, non-GAAP)
25 Dec 2012: Fene produced at Brotas, Brazil
Present
20
Dec 2014: Ops streamlined,
production cost lowered
15
April 2015: 2nd generation fene strains
10
$2.51/L (2015 avg.)
5
Visibility to
0 PresentOur distinctive collaboration business model funds
R&D and eliminates risk to market access
Benefits of model
• More than covers direct R&D costs
• High investment returns from funded development
• Long-term annuity from product profit share
1 Target 2 Develop 3 Supply 4 Profit split
Milestone Sale and profit on Split profit on
Upfront partners
payments from shipment to
funding downstream sale
partner partner
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 14Key near-term collaboration product pipeline opportunities
Targeted Product
Upfront/Milestone
Potential Partner Expected Supply
Payment
Closing Agreement
Cosmetic Ingredients #1 2016 Closed in Q2
µPharm #1 2016 Closed in Q2
Biotechnology #1 2016 Closed in Q3
µPharm #2 2016
Farnesene #1 2017
µPharm #3 2017
Pharmaceutical #1 2017
Fragrance #3 and #4 2017
Cosmetic Ingredients #2 2017
Agriculture #1 2017
Targeted expected closing dates are estimated
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 152016 key objectives tracking
2016 Key Objectives Status
1 Sign large cosmetic ingredients Givaudan closed
collaboration
2 Execute 2-3 pharma 2 closed; 3rd in second half
collaborations
No Q2 fuel sales; new agreements
3 Successfully shift business shifted focus from fuel to pharma;
away from fuels TOTAL partnership is sole fuel focus
4 Scale and supply 2 new F&F Fragrance #2 completed
ingredients
Novvi JV equity sale in Q2; first of 3
5 Monetize non-core assets
Partially done with senior loans;
6 Refinance debt expected finalization in second half
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 16Q2 and YTD Highlights
Best-ever quarter for signing new partnerships
Q2 GAAP Revenue Q2 Non-GAAP Revenue Q2 Product sales growth
$9.6M
+23% growth
$12.4M
+138% growth
47%
Q2 SG&A expense Q3 expected 2016 Target Adjusted
reduction collaboration inflows Operating Expense
$18 - $70-
21% $75M
$20M
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 17Debt at June 30, 2016
Debt
Debt - June 30, 2016 Cash/ Debt Debt
$ millions Maturity Rate PIK Dec-15 Jun-16
Fidelity convertible notes Mar-17 3.0% Cash 15.3 15.3
Stegodon senior secured loans Feb-17 8.5-9.5% Cash 32.0 28.6
TOTAL R&D notes Mar-17 1.5% PIK 5.1 3.7
Tranche I convertible notes Oct-18 5.0% PIK 20.5 21.5
Tranche II convertible notes Jan-19 10.0% PIK 10.0 11.0
6.5% convertible notes May-19 6.5% Cash 52.1 52.1
9.5% convertible notes Apr-19 9.5% Cash/stock 56.2 48.5
May 2016 convertible notes Nov-17 Cash/Stock - 7.4
Shareholder loan May-17 13.5% Cash - 25.0
Brazil bank loans Various Various Cash 16.3 16.0
Other loans 0.4 0.1
Total Debt (ex-debt discount) 207.9 229.2
Unamortized debt discount (51.9) (47.8)
Total debt (net of debt discount) 156.0 181.4
Total debt (ex debt discount) 229.2
Less: Debt mandatorily convertible to equity at maturity (42.6)
Total debt (before discount), excluding mandatory convertible debt 186.6
● Issued a $10 million convertible note in May 2016, and a closed on a $5M shareholder loan in June 2016
● $157 million of the $229 million is convertible at various prices ranging from $1.14 to $7.07 per share
● $42.6 million of the $229.2 million of debt is mandatorily convertible at maturity held by Temasek and
TOTAL
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 18Leading shareholders and Board of Directors
Main shareholders
John Doerr Philippe Boisseau
24% 26%
2%
3%
3%
28%
7%
2% HH Sheikh Abdullah
bin Khalifa Al Thani Geoff Duyk
BIOLDING
INVESTMENTS
Margo Georgiadis
President, Americas
Google
Fernando Reinach Neil Williams
Managing Partner, CFO, Intuit
Bram Klaeijsen Pitanga Fund
Former President,
Cargill Asia
John Melo
Patrick Yang
Carole Piwnica
Former Global Head,
Director, NAXOS
Technical Operations
Roche/Genentech
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 19Amyris investment highlights
1 15 commercialized products inside over 500 brands and reaching over
150 million consumers
2 Proven business model delivering approximately 50% annual product
sales growth and increasing
3 16 industry leading collaboration partners funding R&D and
purchasing products with a long-term profit share
4 Best-in-class technology platform and microbe engineering
disrupting multiple markets
5
Flexible, low cost, industrial-scale production running at full scale
September 22, 2016
Copyright © 2016 Amyris, Inc. All rights reserved. 20You can also read
