BRAIN AG · BRAIN AG Management Presentation ... grow at c15.5% from € 94 bn to ... earths, precious metals) Advanced wound care system

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

BRAIN AG Management Presentation Oct 31st, 2016

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Engineering Biology. © 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 October 31st, 2016. 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.


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 speciality and consumer goods segments of the chemical industry.

•  We are on our way to become a fully integrated bio-speciality company.


Setting the scene

Sustainability

BioEconomy

Industrial Biotechnology

BRAIN

•  Need for sustainability •  Challenge: provision of healthy food, bio-based products and CO2/ energy-

saving processes •  Response: increased use of sustainable biological resources and solutions,

rather than non-renewable alternatives like fossil oil or chemicals

•  Rise of BioEconomy •  Governments and businesses have realized the need of a bio-based economy •  BioEconomy is fueled by constant innovation and public interest

•  Game-changing technology •  Industrial Biotechnology: “key enabling technology in the transition to an eco-friendly,

low carbon and resources-efficient economy”

•  BRAIN •  Solution provider for sustainable, all-natural product ingredients and processes

•  we make packaged food healthier •  we make consumer care products more natural •  we transform waste streams into new products •  we substitute (hazardous) chemical products by biobased/natural solutions

Source: BMBF - National Research Strategy BioEconomy 2030, EU Commission (2010), J.M. Barroso Europe 2020, Thomas M. Connelly, Jr. et al. in The National Academies, USA in "Industrialization of Biology: A Roadmap to Accelerate the Advanced Manufacturing of Chemicals" (2015)


•  Chemicals and materials are

increasingly produced using

biotechnology

•  BRAIN focuses on Consumer and

Speciality Chemicals, expected to

grow at c15.5% from € 94 bn to

€ 193 bn in the next five years

•  Industrial biotech sales are expected to

outgrow the overall Chemical markets –

which are expected to grow at 4.1%

(CAGR‘15-20e)

Sources: Festel et al., Journal of Commercial Biotechnology, 2012, modified (2015 and 2020 estimated, excluding pharmaceutical and biofuels); CEFIC, BRAIN estimates; Roland Berger

Global chemical industry is transforming: growing biotech sales in industry subsectors

18 43

104

2010A 2015E 2020E

92

228

515

in E

UR

bn

Specialty Chemicals

Consumer Chemicals

Others

CAGR ‘15-20

15.5%

BioEconomy share of total chemical Industry

6.2% 12.1% c20%

19.4%

11.8%

Total

BRAIN’s focus due to attractive growth and margin prospects

40 94 193

BioEconomy – transformation of industries


BRAIN – full product spectrum for BioEconomy solutions

BioEconomy solutions from BRAIN

BioEconomy competitors

Enzymes Performance Microorganisms

BioActive Compounds

Solutions for BioEconomy based on three bio-based ingredient categories

Established industries

Innovation dilemma

Enzymes have been at the forefront of BioEconomy products, innovators have been able to establish themselves as global players


Key facts

•  European leader in BioEconomy and Industrial Biotechnology •  Founded in 1993

•  >215 staff employed in BRAIN Group

•  Three unique selling propositions •  Comprehensive proprietary BioArchive of natural solutions

•  Unique combination of technological expertise and access to fully

owned BioArchive

•  Successful track-record of delivering novel biological ingredients

•  Growth prospects •  Attractive pipeline of own product candidates

•  Access to selected markets through own subsidiaries

•  Access to global markets through licensing to industrial partners


Financials Total Operating Performance by Segments 1) 2) (in € m)

3,6 4.7

5.0

13.5

11,2 10,0

2011/12A 2012/13A 2013/14A 2014/15A 2014/15 9M 2015/16 9M

BioScience BioIndustrial

25.7

13.8

10.2

7.9

19.8 19.0

1) Total operating performance = revenues + change in inventories + other operating income 2) w/o intersegment elimination of c€ 0.2m in FY12/13, FY13/14 and FY14/15 3) Adjusted EBIT 4) The financial figures of the first nine months of fiscal 2015/16 are comparable only to a limited extent to the value sof the previous year, as for the first nine months of FY 2014/15 they include the financial figures of the WeissBioTech organisations only since November 2014 due to the acqusition

EBIT (in €m)

-5,7 -4,4 -4,8 -4,6 -3,7 -5,2

2011/12A 2012/13A 2013/14A 2014/15A 2014/15 9M³

Total Operating Performance 9M 1) 2) 4) (in € m)

2015/16 9M³


BRAIN’s solution – validated by a broad customer universe

•  BRAIN provides all-natural ingredient solutions from its BioArchive •  More than 100 Exclusive Partner Collaborations (EPC) successfully completed

Enzymes Performance Microorganisms

BioActive Compounds


BioScience - selected examples of ‘BRAIN inside’

Product Range

Industrial partner #3 detergent

business globally #1 European sugar company

#4 ingredients supplier globally

Beiersdorf

own cosmetics subsidiary

Enzymes BioActive Compounds

BioActive Compounds

Performance Microorganisms

BRAIN inside Low temperature detergent enzymes

Optimisation of microbial strain for Isomalt production

Skin anti-irritant Symsitive 1609

Development of Biotech cosmetics


BioIndustrial - selected examples of BRAIN’s product pipeline

Product Range

Industrial partner

Partnered #4 packaged food business globally (confidential)

Taste modulators for healthier nutrition

Sweetener & sweet taste enhancer

Cleaning / debridement of chronic wounds (medical device)

Producion of precursor materials for bio-plastic using CO2

Green mining

Microorganisms enrich industrially relevant metals (rare earths, precious metals)

Advanced wound care system

CO2 as feedstock for bio-plastics

Salt taste enhancer

Partnered within strategic alliance ZeroCarbFP

Partnered for selected metals with chemical company


BioActive Compounds Enzymes Performance

Microorganisms

BRAIN inside

LOIs with gobal food and beverage companies and converter

EU: development within BRAIN US: negotiation ongoing with US medical device company


DOLCE Consortium new sweet solutions for industry

World market leading food manufacturing and converting industry


Superior technologies and R&D expertise

•  R&D machinery of diversified technology platforms •  Platforms for Microbial strains, Enzyme technologies, BioActive

Compounds •  c350 registered patents/patent applications in

48 patent families •  150 employees in R&D, >60% with university degree

•  BRAIN’s BioArchive – the toolbox of nature

•  Result of >450 R&D man years and >100 industrial collaborations Difficult to replicate (unique combination of people with different know-how and profession)

•  Fully owned by BRAIN

•  Pioneering R&D •  First player with industrial metagenome technology •  First player with Human Taste Cell technology •  First player with novel antiperspirant research

CrispRcas9

BRAINzyme

EvoSolution

LIL® ABEL®

CompActives®

BioCompActives®

ScreenLine®

®

®

®


BioArchive

BRAIN has gathered a proprietary collection of unique enzymes, microorganisms and bioactive compounds


BRAIN – Monetizing the BioArchive

Technologies Active biological ingredients

Natural resources

BRAIN’s BioArchive

Enzyme Technologies

Microbial Strains

BioActives

Nutrition & Feed

Bio Substitutes

Cosmetics/ Care

Woundcare

Enzymes


BioActive Compounds

Enzymes

BioScience BioIndustrial

Consumer / End User markets

(B2c)

Production Formulation

Ingredients markets (B2B)

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

Thank you for your interest.

BRAIN Aktiengesellschaft Darmstädter Straße 34-36 64673 Zwingenberg +49 (0) 6251-9331-0 www.brain-biotech.de

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BRAIN AG · BRAIN AG Management Presentation ... grow at c15.5% from € 94 bn to ... earths, precious metals) Advanced wound care system