Presentation of 9M Figures BRAIN AG...Key Financials 9M 2016/17 (unaudited) 1) Revenues + change in...

Engineering Biology.

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

Presentation of 9M Figures BRAIN AG

BRAIN – Key Enabler for a Biobased Economy

Zwingenberg, August 31, 2017


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

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.


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

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



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



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."



Financial Highlights

unaudited



• 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)



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



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



Highlights



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.



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.



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.



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.



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%



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



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

[email protected]

+49 (0) 6251-9331-16

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



mailto:[email protected]



Presentation of 9M Figures BRAIN AG...Key Financials 9M 2016/17 (unaudited) 1) Revenues + change in...

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