deinove investors presentation - nov. 2015
TRANSCRIPT
DEINOVE
DEMOGRAPHIC ENVIRONMENTAL
• 9 billion humans in 2050
• 70% in urban areas
• Number of vehicles X 3
• Reduction of greenhouse gases
• Fight against global warming
• Depletion of fossil resources
ECONOMIC GEOPOLITICAL
• +40% global energy demand in
2040
• Increase in food demand
• Growth & local job creation
• Energy independence vs. instability
MEETING THE CHALLENGES OF A WORLD WITHOUT OIL
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DEINOVE
DEINOVE designs and develops disruptive technologies…
… by exploiting the exceptional properties of Deinococcus bacteria…
…to develop innovative methods of producing compounds of
industrial interest
> Replace petroleum-derived molecules with bio-based molecules
> Bring value to abundant and non-food resources
> Develop innovative natural ingredients for cosmetics, feed and
food
RENEWABLE, RESPONSIBLE AND COST-EFFECTIVE INDUSTRIAL PROCESSES
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PartnershipsWide range of applications
Exclusive world rights
DEINOVE
STRONG COMPETITIVE ADVANTAGES
DEINO-LIBRARY
6,000
strains
DEINOL
2G bioethanol
TECHNOLOGICAL
PLATFORM
DEINOCHEM
Carotenoids Muconic acid
2G BIOMASS
Microbe of the year 2014
170 patents
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DEINOVE BACTERIA LIBRARY
4 years of harvesting in numerous hostile biotopes
A patented selection method using radiation
A biobank with 6,000 strains, including:
2,500 Deinococcus strains
3,500 other rare and extremophile bacteria
Natural source of:
Pigments
Anti-oxidants
Vitamins
Enzymes
Surfactants…
BIODIVERSITY CREATING OPPORTUNITIES
All strains were collected in accordance with international laws
(Convention of Biological Diversity)
6,000exclusive strains
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A UNIQUE METABOLIC ENGINEERING PLATFORM
GUIDING DEINOCOCCUS TOWARD INDUSTRIAL PERFORMANCE
High-throughput cloning
robot combined with a
highly-specialized software
for strain construction
Instrumented technology
platform for fermentation
300 strains per month
49Collaborators
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CURRENT BIOREFINERY PROCESSES
ALREADY OPERATIONAL BUT NOT ALWAYS PROFITABLE
Conventional processes:
• Extensive pretreatments
• Enzymes for hydrolysis
representing up to 25% of
the total cost
• Multiple steps requiring
heavy equipment
• Energy consumption for
regulating biological
processes
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THE DEINOVE CONSOLIDATED BIO PROCESS (CBP)
A TECHNOLOGICAL BREAKTHROUGH CREATING INDUSTRIAL VALUE
DEINOVE
Advantages compared to conventional processes:
• Operation at high temperature
• Ability to degrade biomass
OPEX savings Savings in enzymes
Energy savings
CAPEX savings A single reactor
Simplified distillation process
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PATENTS
A VERY WIDE IP PROTECTION
PCT contracting states
PF1: Process for chromosomal engineering
using a novel DNA repair system
PF2: Use of bacteria for the production of
bioenergy
PF3: Methods for isolating bacteria
PF4: Compositions and methods for
degrading lignocellulosic biomass
PF5: High performance metabolic bacteria
PF6: Recombinant bacteria and the uses
thereof for producing ethanol
PF8/PF9: Enzymes/laccases and uses
thereof
19 patent families 170 international patent applications
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INCOME
GENERATION
STRATEGY AND BUSINESS MODEL
A CAPITAL-LIGHT BUSINESS MODEL
POTENTIAL
PARTNERS
• Biofuel producers
• Biomass
producers
• Chemical
companies
• Industrial
companies
operating in
targeted markets
(agri-food,
cosmetics, etc.)
• Technological
centres
RESEARCH PROJECTS
Structuring and screening of the bacteria bank
Tests on the various types of biomass/ pretreatments
Strain optimization according to the applications
Fermentation tests in the laboratory
Characterization of the moleculesproduced
Economic analysis and regulatory validations
Scaling up to the industrial pilot
(sub-contracting)
R&D
Partner financing
Public institutions
Marketing
Technology licenses
(non-exclusive or limited exclusivity)
Sale of batches of finished products
(e.g. carotenoids)
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Proof of concept
BIO-BASED CHEMICAL
COMPOUNDS
Genetic engineeringOptimization of the production parameters
and scale-up
Collection and knowledgeof the strains
Development of the genetic engineering platform
Creation of the Company
Start-up 9% ethanol
Collaborations with Suez, Abengoa and MBI
Start-up
Collaboration with Avril (formerly
Sofiprotéol)
20182009 2010 2011 20122008 2013 2014 2015 2016 201720072006 20202019
BIOFUELS
Commercialization of “natural"
compounds
Commercialization of GMOstrains-derived compounds
1st key milestone
Commercialization of 2G bioethanol
Selection of the chassis strain
Adaptation to industrial biomass and scale-up
Genetic engineering Licensing revenues
Development of the fermentation engineering platform
EVOLUTION OF DEINOVE PROJECTS
FROM STRAIN COLLECTION TO COMMERCIAL EXPLOITATION
3rd key milestone/300L
IPO
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Collaborationwith Flint Hills Resources
DEINOL
THE PROGRESS MADE SO FAR
SELECTION OF A CHASSIS STRAIN ADAPTED TO THE INDUSTRIAL CONSTRAINTS Ability to grow up to 48°C (minimizing contamination)Resistant to acidic and basic environments (pH 4 to 9)Resistant to desiccation (starters)
ETHANOL-PRODUCING STRAIN• 9% vol/vol – 7.2% wt/volFrom synthetic glucose substrate20L fermenters
• 7 to 8% v/v – 5.6% to 7.4% wt/volFrom synthetic glucose/xylose substrate20L fermenters
RESISTANCE TO INHIBITORSFurfural, acetic acid, aldehyde, etc.Natural property of Deinococcus clearly superior to traditional microorganisms (yeast, other bacteria, etc.)
HYDROLYSIS OF LIGNOCELLULOSIC BIOMASS
Comparable performance to Trichoderma reesei(reference organism)Natural production of cellulases and hemicellulases (hydrolytic enzymes)
DIVERSIFICATION OF 2G SUBSTRATESUse of "real" second generation biomassAgricultural waste: corn stover, wheat straw, sugarcane bagasseUrban and household wasteEnergy tobaccoetc.
ASSIMILATION OF SUGARS FROM BIOMASSStrict co-assimilation of glucose, xylose, arabinose, etc. (absence of diauxie)Assimilation of oligomersHigh temperature
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DEINOL
THE PROGRESS MADE SO FAR
SCALE-UPSuccessful 2G bioethanolproduction in a 300-liter reactor
Substrate: 2G sugars(glucose/xylose)
Production of bioethanol at 7.3% v/v (5.8% w/v), consistent with the results obtained in 20-liter fermenters
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DEINOL
NEXT STEPS AND EXPECTED RETURN
SCALE-UP2016/2017: pilot / demonstration scale (m3)2018: commercial scale
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COMMERCIALIZATIONLicense revenue on commodities:
2-3%Additional revenue from the value
created by the DEINOVE technology (reduction of process costs):
2-3% additional
~ 2-4 m € / year / factory(without upfronts)
QUANTIFICATION OF SAVINGS USING THE PROCESSvs the conventional methodQuantification of the gain in enzymes
DIVERSIFICATION OF 2G SUBSTRATESContinuation and multiplication of the experiments on 2G substrates (agricultural residues, dedicated energy crops, forest residues, household waste)
R&D PROJECT / 2 YEARS
LAUNCHED IN 2014
Conversion of urban and household waste into
ethanol using Deinococcus bacteria
Achievements:
> Characterization of the types of usable waste
> Analysis of the growth conditions on these
substrates
Next steps:
> Scale-up
> Definition of the industrial feasibility conditions
DEINOL
INDUSTRIAL PARTNERS
R&D PARTNERSHIP / 3 YEARS
LAUNCHED IN 2014
Abengoa: 1st European producer of ethanol, US
and Brazil locations
Achievements:
> DEINOVE tests on Abengoa biomass: corn
residues and sugarcane bagasse after acid
pretreatment
Next steps:
> Adaptations of the strain according to the
pretreatment
> Laboratory scale-up
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ENZYMOLOGY AND BIOPROCESSES
VTT, DEINOVE's partner since 2010,
member of the Scientific Advisory Board
Test campaigns in a 300L fermenter and
optimization of the fermentation parameters
Next steps:
> Partnership to improve Deinococcus
metabolism
> Test in a 300L-fermenter based on
2G biomass
DEINOL
TECHNOLOGICAL PARTNERS
RAW MATERIAL AND SCALE-UP
LAUNCHED IN 2014
Achievements:
> Production of ethanol from AFEX® biomass,
corn residue pretreated with ammonia
(alkaline pretreatment): very good results at
the 2L scale
Next steps:
> DEINOVE: Optimization of the strain
> MBI: scaling up to 4m3 on AFEX® biomass
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2G BIOFUELS
AN INDUSTRY THAT IS GAINING MOMENTUM
PRODUCTION CAPACITIES OF THE MAIN INDUSTRIAL UNITS
2G production capacities
350,000 t/year late 2014
+135,000 t/year late 2016
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BIO-BASED CHEMISTRY
THE PLANT CHEMISTRY VALUE CHAIN
Source: Roquette - Panorama Conference - Paris - 6 February 2014
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Biorefineries
Experts in
transforming
vegetal resources
Technologies
Experts in biotech
and solution
providers
Chemists
Bio-based chemistry Biotech & chemistry Oil-based chemistry
Developing
biobased products
& polymers
Main focus
on oil-based
commodities
Double expertise
biotech &
chemicals
DEINOCHEM
THREE MAJOR APPLICATION FIELDS
*Additions for the 2014-2015 period Source: IFPEN; Nexant
CAROTENOIDS
$1.8 Billion in 20191
AND OTHER SPECIALITY INGREDIENTS
MUCONIC ACID
$100 Million in 20192
AROMATIC ISOPRENOIDS
$2 Billion in 20143
PRODUCTION OF COMMODITY PRODUCTS FROM BIOMASS (KT)
1 BBC Research. 2 Technavio Research. 3 Fritz Consulting 19
Acids
Alcohols
Aromatics
Isoprenoids
Olefins
Acids
AlcoholsAcids
Alcohols
Isoprenoids
Acids
Alcohols
Olefins
Isoprenoids
Olefins
Capacity (ktpy)
Capacity (ktpy)
Capacity (ktpy) Capacity (ktpy)
Capacity (ktpy)
DEINOCHEM
MUCONIC ACID: A VERSATILE CHEMICAL INTERMEDIATE
Muconic acid
Caprolactam
Terephthalic acid
Adipic acid
NYLON
(textiles)
PLASTICS
(automobile/packaging)
FOOD
(acidifying agent)
World Market: several tens of
billions of dollars
Growing demand for bio-based
solutions
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DEINOCHEM
ISOPRENOIDS*
Carotenoids
(pigments/antioxidants)
Aromatic
isoprenoidsMuconic acid
(and derivatives)
Applications
Molecules
Deinoxanthin (naturally-occurring
compounds)
Commercial carotenoids (lycopene,
etc.)
Linalool, geraniol, bisabolol
Muconic acid, platform molecule for
the production of caprolactam,
terephthalic acid and adipic acid
Progress
Structuring the biobank:
identification of the various
carotenoids producers
Extraction of Deinoxanthin by
POS
Production of 2 other carotenoids
(platforms) by genetic engineering
Launch of regulatory approval
proceedings
POC production of 3 molecules
1st key milestone for the
Isoprenoids/Ademe programme
POC production / glucose+xylose
(x5 in several weeks)
POC production / 2G biomass
PROGRESS OF THE R&D PROGRAMS
*Investments for the Future programme/ADEME 21
DEINOCHEM
R&D PROJECT / 3 YEARS
LAUNCHED IN 2014
COLOR2B, development of a process for
producing natural additives for animal feed.
Achievements:
> Identify 20 strains capable of producing
the molecules of interest in terms of
animal nutrition and health.
> 1st key milestone validated in May 2015
Next steps:
> Characterize the molecules produced
> Perform applications tests
INDUSTRIAL PARTNERS
R&D PARTNERSHIP / 17 MONTHS
STARTING IN LATE 2015
Development of a method for producing natural
additives for animal feed with Flint Hills Resources,
a subsidiary of Koch Industries, one of the largest
private companies in the world, a leader in refining,
chemistry and biofuels in the United States.
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TECHNOLOGICAL AND COMMERCIAL
PARTNERSHIP - STARTING IN 2015Use of energy tobacco as a raw material in
biochemistry
Next steps:> Study on biomass assimilation by Deinococcus> Selection of the targeted molecules
DEINOCHEM
PRODUCTION OF CAROTENOIDS (STARTING IN 2015)
OBJECTIVE: DEVELOP A COMMERCIAL RANGE OF CAROTENOIDS FOR THE
FOOD, FEED AND COSMETIC MARKETS
Achievements:
> Production of Deinoxanthin, exclusive carotenoid
> Production of other commercial carotenoids
> Launch of regulatory approval processes of the strains, particularly in the US
Partnership with POS Bio-Sciences, a company specializing in the extraction,
fractionation, purification and optimization of bio-based ingredients
On-going:
> Deinoxanthin production tests
Next steps:
> Functional characterization of Deinoxanthin
> Production tests on other carotenoid compounds
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DEINOCHEM
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FUNCTIONAL TESTS Qualification of the effects of Deinoxanthine and other carotenoids
SCALE-UPExtraction of Deinoxanthine in larger volumes
IMPROVED PRODUCTION LEVELS of different carotenoids
APPROVAL OF THE STRAIN for the intended applications
IMPROVED PRODUCTION LEVELS
Choice of target molecules for industrial productionSCALE-UP
Production of industrial batches of carotenoids(up to several tons / year)
NEXT STEPS
Sale price: 300-3,000 € / kg
Production cost: 200-600 € / kg
CAROTENOIDS MUCONIC ACID
IMPROVED PRODUCTION LEVELS
DEVELOPMENT OF INDUSTRIAL PARTNERSHIPS
SCALE-UP
4-5
ye
ars
2016
2017
2018
DEINOVE
STRATEGIC ROADMAP
Partners Country Type of partnership Products Stage reached1st anticipated
revenuesFunding
DEINOL - BIOFUELS
SUEZ Environnement FranceCommercial
R&DEthanol
Laboratory pilots:
2L, 20L, 300L2017/2018
Financed by Suez
ABENGOA Spain/USACommercial
R&DEthanol
Co-financed by Bpifrance
(€5 to 6 Million)
MBI USATechnological
IndustrializationEthanol Own funds
VTT FinlandTechnological
IndustrializationEthanol
Own funds
(subcontracting; R&D Tax Credit)
DEINOCHEM – BIO-BASED CHEMISTRY
ADEME project France R&DIsoprenoids
Carotenoids
Laboratory pilots:
1 to 2 L2018
Co-financed by ADEME
(€6 Million)
AVRIL (COLOR2B) FranceCommercial
R&DConfidential - Specialty Ingredients R&D 2018 Co-financed by Avril
FLINT HILLS
RESOURCESUSA
Commercial
R&DConfidential - Specialty Ingredients R&D 2018 Financed by Flint Hills Resources
POS Bio-Sciences CanadaTechnological
IndustrializationCarotenoids - - Own funds (subcontracting)
Tyton BioEnergy
SystemsUSA
Commercial
R&D
Definition of the target compounds after studying the
assimilation of this new biomassR&D 2020 Own funds
Discussions with
potential partnersEurope/USA
Commercial
R&DMuconic acid R&D 2020 Own funds
VALORIZATION OF THE DEINO--LIBRARYDEINOBIOTICS France R&D (Participation) Antibiotics R&D - Co-financed by Bpifrance
THANAPLAST
(CARBIOS)France R&D (Participation) Polymers R&D 2017 Co-financed by Bpifrance
Other projects Europe/USA R&DProteins
EnzymesR&D 2018 Deinove / Financing by a partner
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DEINOVE
CAPITAL AND SHARE PERFORMANCE
Share performance since the IPO (April 2010)
Number of shares: 5,939 million
(7,391 million if fully diluted share capital)
Shareholders’ structure at 30.06.15
(fully diluted)
30/10/15
Market cap: €40 Million
Share price: €6.5
Average volume since early 2015:
16,000 shares/day
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Indexes:
ALTERNEXT ALLSHARE
ENTERNEXT PEA-PME 150
OSEO INNOVATION
DEINOVE
Reduction in the net loss €3,170 k vs. €3,920 k (-19%)> Good control of operating expenses, despite strong R&D activity - materialized by 2 milestones and new
partnerships - and the launch of the muconic acid program
On 30/06/15: net financial position +€1.8 Million (vs. +€2.2 in late 2014)> Needs for the half-year period: operating expenses (€3,750 k); equipment investments (€950 k)
> Resources for the half-year period: 1st key milestone DEINOCHEM – Ademe (€991 k); issuance of new shares
- Kepler (€3,041 k); 1st revenues from collaboration agreements
Post-closing receipts: €3.4 Million> 3rd key milestone DEINOL
> Issuance of new shares – Kepler
> R&D Tax Credit
> Cash ensuring a 12-month horizon (>3rd Quarter 2016)
FINANCIAL DATA – 1ST HALF OF 2015
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CONTACTS
Montpellier, FRANCE
CAP SIGMA, ZAC Euromédecine II1682 rue de la Valsière34790 GRABELS
www.deinove.com
Emmanuel PETIOTCEOTel.: + 33 6 13 80 25 [email protected]
Coralie MARTINCommunication, Marketing and Investor Relations ManagerTel.: + 33 4 48 19 01 [email protected]
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MANAGEMENT TEAM
A TEAM OF EXPERTS WITH INTERNATIONAL CULTURE
Jean Paul LEONETTI, PhD – VP R&DFormerly, Team leader at CBPS (CNRS).
PhD in Microbiology, University of Montpellier
Emmanuel PETIOTCEOFormerly, Commercial Director of NOVOZYMES North America Inc.
EDHEC Business School, École Centrale Paris
Julien COSTECFOFormerly Director of Finance & Administration at Neuro3D then the French branch of the Publicis Healthcare Communication Group (PHCG).
ESC Grenoble, Master 2 in IT Management, Paris Dauphine
Coralie MARTINCommunication and IRFormerly in charge of marketing at Pierre Fabre and bioMérieux Chili
INSA Toulouse, IAE Lyon
Marie BÉZENGERDirector of OperationsFormerly Director of Operations at Fermentalg; 20 years at Chr. Hansen
Polytech Montpellier, PhD in Biochemistry, Cell and Molecular Biology, University of Montpellier
Dennis McGREWChief Business OfficerFormerly Chairman and
CEO of NatureWorks and
VP of Business
Development at
Genomatica
Degree in Chemical Engineering Washington University, St. Louis MO
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BOARD OF DIRECTORS
FIRMLY ROOTED IN THE INDUSTRIAL ENVIRONMENT
Dr Philippe POULETTYNon-executive Chairman, Co-founderFounder and DG
TRUFFLE CAPITAL
Michael CARLOSPresident
GIVAUDAN FRAGRANCES
Christian PIERRETFormer French Minister
of Industry
Paul-Joël DERIANDirector of R&D
SUEZ ENVIRONNEMENT
Rodney J. ROTHSTEINProfessor of Genetics
COLUMBIA UNIVERSITY
New York, USA
Nabil SAKKABFormer Director of R&D
PROCTER & GAMBLE
Dennis McGREWFormer Chairman and CEO
NATUREWORKS
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SCIENTIFIC BOARD
HIGH-LEVEL EXPERIENCE AND EXPERTISE
Deep knowledge of
metabolic engineering
and fermentation
Oriented toward
industrial
applications
Jacqueline LECOURTIERPresidentFormer scientific director of IFP (IFPEN)
M. RADMANCo-founderDEINOVE
J. BITONVice-presidentFormer CEO of DEINOVE
A. GUYONVARCHMolecular biology & Fermentation
G. GOMAFermentation & Process
F. KEPESSynthetic biology & Microbiology
S. RATTONFine chemistry & Process
K. KRUUSEnzymology & Bacterial engineering
I. MATICBacterial genetics & Engineering
B. PAUBiochemistry & R&D Strategy
J. PITKÄNENBacterial metabolism & Fermentation
L. PUTMANBiochemistry& Bioremediation
P. MONSANEnzymology & Molecular engineering
A. ROBEYFermentation & Biofuels
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