Download - Leading Industrial Biotechnology Company
2Copyright © 2015 Amyris, Inc. All rights reserved.
FORWARD LOOKING STATEMENTS
This presentation and oral statements accompanying this presentation contain forward-looking statements, and any statements other
than statements of historical facts could be deemed to be forward-looking statements. These forward-looking statements include,
among other things, statements regarding future events such as new collaborations and products to be introduced in 2015, customer
acceptance of Amyris products, product sales growth and market sizes for potential products, improvements in development times
and production capacities and costs, expected production and sales of fragrance molecules, commercialization of jet fuel, revenue
and cash flows for 2015, components of growth in revenues during the year, product launches, and Amyris’s business outlook, 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 uncertainty regarding timing of closing transactions and growth
in sales, potential delays or failures in development, production and commercialization of products, liquidity and ability to fund
operating and capital expenses, Amyris's reliance on third parties to achieve its goals, and other risks detailed in the "Risk Factors"
section of Amyris's annual report on Form 10-Q filed on August 10, 2015. Amyris disclaims any obligation to update information
contained in these forward-looking statements whether as a 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
on the call to discuss this presentation you will hear discussion of non-GAAP financial measures. Reconciliation of these non-GAAP
measures to the most comparable GAAP financial measures is contained in the news release distributed today, which is available at
investors.amyris.com.
Cautionary Notes
4Copyright © 2015 Amyris, Inc. All rights reserved.
Amyris at a glance
Strategic Partners Commercial Products Product sales growth
Brands with Amyris “inside”
Consumers touched by Amyris Product Pipeline
1110
over
400 100M
c.a.$50Mcollaborations
20products
$400Msales
c.a.50%
7Copyright © 2015 Amyris, Inc. All rights reserved.
Leading shareholders and board of directors
Geoff Duyk
John Melo
Patrick Yang
Philippe Boisseau
Carole Piwnica
B I O L D I N G
I N V E S T M E N T S
HH Sheikh Abdullah bin Khalifa Al Thani
Neil WilliamsFernando Reinach
John Doerr
Bram Klaeijsen
9Copyright © 2015 Amyris, Inc. All rights reserved.
Industrial
Disrupting industrial markets using biotechnology
What We Do… How We Do It… What We Produce…
Using our proprietary biotechnology
process, we engineer microbes to
become living factories that produce
target ingredients in our industrial
fermentation facility
Delivering renewable ingredients and formulated products
Sustainable, cost-competitive and
high-performance ingredients and
formulated products serving the
Cosmetics, F&F, Pharma, Solvents,
Polymers, Fuels and Lubricants
markets
Performance Chemicals
Personal Care
Disrupting industrial markets using
our technology to manufacture and
sell high performance, low cost
ingredients and formulated products,
solving supply issues for multiple
industrial applications
10Copyright © 2015 Amyris, Inc. All rights reserved.
Leaders in high-margin, high-growth markets
Polymers
Displacing existing high margin, specialty chemical ingredients using our proven technology and
flexible, commercial-scale production to provide a stable supply of lower cost, better performing
replacements
Population growth driving skincare, household, fragrance
Aging and beauty driving skincare products
Supply and price volatility from higher demand of limited products
Increased consumer demand for natural and renewable products
Mega trendsdriving growthopportunities
Regulatory environment favoring sustainable products
● Differentiated product at low cost
● Focus on higher margin specialty sectors
● Low cost provider in a high margin market
● Technology and production is flexible to adapt and supply the market
Fuels
F&F
Emollients
Solvents
Amyris Focus
High Margin
Low Margin
Commodity Specialty
Ethanol
11Copyright © 2015 Amyris, Inc. All rights reserved.
Strategic supplier to leading brands
Performance Chemicals IndustrialPersonal Care
PharmaceuticalsCosmetics
Amyris Products
Markets
Hemisqualene
Farnesene Myralene
Farnesene
Diesel Jet FuelSqualene
Fragrance #2
Fragrance #1
Isoprene
Flavors & Fragrances
Polymers Solvents
Lubricants
Diesel
Adhesives & Coatings
Jet Fuel
Select Consumer
Brands
12Copyright © 2015 Amyris, Inc. All rights reserved.
0%
25%
50%
75%
100%
2011 2012 2013 2014
Amyris
Novozymes
Croda
Industry
Disrupting the personal care ingredients market
Taking market share in Personal Care
● Creating lower cost, higher
performing products
incumbents can’t match
● Guaranteeing a stable supply
and long-term price visibility
● Adaptable and flexible
production to participate in
rapidly changing industry
trends—without capex
This success is transferable to multiple markets
given the flexibility of our technology and
production
Product Sales Growth
in Personal Care Market
% G
row
th
13Copyright © 2015 Amyris, Inc. All rights reserved.
Squalane: formulated product case study
Advantage of the Amyris Model:
• Amyris has benefitted from the IP from farnesene (developed via collaboration) and further evolved it into squalane for use in its own products
• Production tightly controlled, ensuring consistency from lot to lot, both from a chemical and sensorial (i.e., odor and color) standpoint
• The highest quality emollient,
Squalane, is naturally present in the
skin lipid barrier, preventing
moisture loss while restoring the
skin’s suppleness and flexibility
• Commercial use of squalane is
constrained by inconsistent supply
and price volatility, impurities, and
overall quality
• Until recently, it could only be
sourced from deep sea shark liver
or olive oil
• Market was 3x larger 5-6 years ago
than today given limited supply
• Amyris technology enables market
acceleration, which is expected to
return to its prior size
• Market is expected to grow at a
CAGR of 10.3% to $177.1 million by
2019
• Amyris has developed a new
approach based on the isoprenoid
pathway to enable the commercial
scale manufacture of squalane from
fermentable sugars
What is Squalane? The Problem Why it Matters
Amyris as the Solution
Over 3 years, Amyris has already captured 20% of the market
14Copyright © 2015 Amyris, Inc. All rights reserved.
High growth, low opex business model driving revenue from numerous streams
● Collaboration partnerships fund
R&D
● Intellectual property owned by
Amyris
● Revenue earned at all stages,
from collaboration through
royalty
● Contracted product stream
● Amyris formulated product
stream
● Low opex model given funded
R&D and leverage collaboration
partner sales channel
Collaboration / R&D
Amyris IP
Partner sales
IngredientsConsumer Products
Direct sales
Formulated ProductContracted Product
Profit Share
= Revenue stream $
15Copyright © 2015 Amyris, Inc. All rights reserved.
Collaboration partners support revenue growth
Total Estimated Collaboration Inflows: $278M +
Performance Materials IndustrialsPersonal Care
Estimated Annual Product Revenue Potential: $400+
Eleven current collaboration partners across three market verticals including:
Amyris has not missed a milestone arrangement with a collaboration partner
16Copyright © 2015 Amyris, Inc. All rights reserved.
Collaboration success with a fragrance partner
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$USD, in millions
2010 2014 2018
Fragrance #2
Fragrance #3
Collaboration Funding Inflow
Fragrance #1
Amyris now partners with 4
of top 5 industry players
representing >54% market
share, replicating the
successful revenue model
Co
llab
ora
tio
n I
nfl
ow
s an
d P
rod
uct
Rev
enu
e (N
on
-GA
AP
)
Collaboration dollars fund the programs with agreed milestones, in
addition to our product sales and profit shares earned with
partners
● In Nov. 2010, Amyris partnered with a
top fragrance provider to produce a
cost-effective, sustainable ingredient
for the fragrance market
● Agreement provided partner with
option to collaborate on 2nd
ingredient, if successful
● Amyris delivered on key development
milestones for the first ingredient, well
ahead of schedule
● In July 2011, the companies expanded
their agreement to include a third
ingredient—indicative of the
partnership’s success
● Further expanded partnership in
March 2013
Estimated $13 Billion Market Opportunity with
existing partners
17Copyright © 2015 Amyris, Inc. All rights reserved.
A strong pipeline of potential partners
PreliminaryDiscussions
ApplicationValidation
ContractDiscussion
PartnershipAgreement
Launch
Partner 2
Partner 3
Partner 4
Partner 5
Partner 6
Partner 7
Partner 8
Partner 9
Partner 10
Partner 11
Partner 12
Partner 1 $30M
$5M – 6M
$25M
$15M
$8M
$5M
$5M
$5M
$3M
$8M
$25M
$25M
RevenueOpportunity*
Collaboration partnerships expected to grow within existing
products / markets without need for new technology
* Revenue Opportunity assumes successful completion of milestones and annual payments over 3-5 years.
18Copyright © 2015 Amyris, Inc. All rights reserved.
Advanced engineering capability
Innovative Industrial Biotechnology Engineering Platform
1. Identify target molecules – customize, replicate, and improve microbial strains
2. Develop initial strains / proof of concept
3. Improve strain performance and process development – lower-cost, higher-performing
targeted molecules for industrial scale production
4. Move production from lab to commercial scale
Build Strains Test Strains and Processes
120,000 strains
per month
60 strains per month
2 strains per month
2 to 4 strains
per year
Manufacture
Millions strains per
month
96-wellScreening
Mutagenesis,Meiosis &
AutomatedStrain
Engineering
0.5 & 2 LiterFermentation
300 LiterFermentation& Recovery
200,000 LiterFermentation& Recovery
Amyris Industrialized Organism Development Factory
● 136 R&D employees
● 65 Ph.Ds
● “Big data” repository of yeast
design data
● Over 350 patents
● Funded by partners
19Copyright © 2015 Amyris, Inc. All rights reserved.
Amyris engineers microbial factories to produce diverse molecules sold into a variety of markets
ETHANOL
Biomass
Central metabolism
pyruvate
“Baker’s Yeast”Saccharomyces cerevisiae
IsoprenoidSynthesis
acetaldehyde
Acetyl CoA
ISOPRENE
GPP
FPP
FRAGRANCE OILS
ARTEMISINIC ACID
monoterpenes
sesquiterpenes
IPP/DMAPP
FARNESENE
Shikimate pathway
VITAMINS
CONFIDENTIAL
GGPP
TAMIFLU ingredientsMUCONIC ACID
TAXOL
20Copyright © 2015 Amyris, Inc. All rights reserved.
Reducing time to market for our partners
Reduced Lab-to-Market Time for products
● Engineered over 485,000
farnesene strains in 2014
and 4.6 million unique
strains since inception
● High-throughput system
capable of producing and
screening more than
100,000 strains per month
● ~95% lower cost per strain
than achieved in 2009
● Significant improvement in
cost and time of molecule
delivery for partners
0
10
20
30
40
Amorphadiene Farnesene Fragrance #1 Fragrance #2
Time to 40 g/L
Mo
nth
s
21Copyright © 2015 Amyris, Inc. All rights reserved.
Flexible, industrial-scale production
Biorefinery in Brotas, Brazil
● Status: Completed in 2012
● Size: 1.2 million liter production capacity (Six 200,000
liter production fermenters)
● Capacity: Designed to process up to one million tons
of raw sugarcane annually into sugarcane juice or its
equivalent
● Flexibility: Uniquely designed to nimbly switch
between the manufacturing of multiple products in an
abbreviated timeframe
● Co-location: Strategically positioned next to the sugar
mill that provides feedstocks for production
● Payback: Management expects the plant to reach
cash payback by early 2016
22Copyright © 2015 Amyris, Inc. All rights reserved.
Farnesene – game changing cost evolution
0
5
10
15
20
25
30
35
40
45
$2.36/L
Present
● Focused on building and commissioning
own plant while reducing contract
manufacturing
● December 2012: began production of Farnesene at the Brotas
facility, significantly reducing capital investment and production
costs
● Operating Brotas facility at better tank utilization and
up times further reducing production cost
● Introduced new generation of cost
effective Farnesene strains
Drove Farnesene production cash costs from ~$40 per liter to under $2 per liter and have visibility on
under $1 within the next 24 to 36 months
Visibility to <$1.0/L
Technology ScaleProcess
ImprovementCo-Production
PR
OD
UC
TIO
N C
OST
EV
OLU
TIO
N
($/L
, no
n-G
AA
P)
23Copyright © 2015 Amyris, Inc. All rights reserved.
Summary
1. Amyris is the partner of choice to solve supply challenges for
leading brands
2. Distinctive business model that funds R&D, accelerates and
de-risks time to market and delivers a long-term annuity from
value share arrangements
3. Fully funded business with operations at industrial scale
generating 50% annual product sales growth
25Copyright © 2015 Amyris, Inc. All rights reserved.
Financial highlights summary
YTD June cash rev inflow Current cash balance Debt conversion
$35M c.a. $33M $180M
Non-GAAP cash revenue inflows of
$35.5M in H1, a 34% increase vs.
2014, and compared to full year
guidance of $82M-$102M
Continue to maintain $50-million equity
facility
Temasek and Total debt to be
converted to equity/JV interest; $143M
at closing and $37M at maturity. Pro
forma debt of $140M
2015 new products plan Q2 farnesene cost GAAP revenue fcast
5 $2.36/Liter $63M-$75M
The Revitalizer (cosmetic), Muck
Daddy (hand cleaner), three new
fragrance molecules to be delivered
Achieved another new product cost
record in June, with expectations for
the year to be well below this by year
end
First GAAP revenue guidance for FY
2015 relatively evenly split between
collaboration revenues and product
sales; range due to collaboration timing
26Copyright © 2015 Amyris, Inc. All rights reserved.
Improved capital structure with $180M debt conversion
● Converted $180M of debt, with $138M exchanged at $2.30/share, $5M into JV
interest, and $37M converted at maturity
● Q2 pro forma debt of $140M excludes the $37M of debt that converts at maturity
● Earliest remaining maturities in 2017, include Hercules loan and Fidelity convertible
notes. Remaining other debt matures in 2018, 2019, 2022
-
50.0
100.0
150.0
200.0
250.0
300.0
June 30 PF June 30
June 30, 2015 debt and pro forma debt(before debt discount; ex future conversion)
Fidelity convertible note
Senior secured loan
Total R&D notes/other
Tranche 1 convertible notes
Tranche 2 convertible notes
6.5% convertible 144A notes
Brazil loans
Other loans
27Copyright © 2015 Amyris, Inc. All rights reserved.
Historical cash revenue inflows (non-GAAP)
Outlook $82.0-$102.0
0.0
20.0
40.0
60.0
80.0
100.0
2010 2011 2012 2013 2014 2015
Renewable Products -excluding ethanol Collaboration Inflows
$'s
in M
illio
ns
(1) GAAP Grants and Collaboration Revenue for the year-ended 2014, 2013, 2012, 2011 and 2010 were $19.9 million, $25.3 million, $24.1 million, $17.2 million and $11.6 million, respectively. Cash revenue inflows, a Non-GAAP measure, represent renewable GAAP product revenue plus the cash received from collaborations and grants. Cash revenue inflows are calculated using GAAP revenues and adding the related changes in accounts receivable and deferred liabilities related to revenue recognized for these collaborations and grants to equal funds received during the period, along with any funding associated with collaborations.
(2) 2015 based on business outlook provided on August 6, 2015, of $82M-$102M for anticipated cash revenue inflows expected to be balanced between collaborations and new product revenue.
2015 expected Cash Revenue Inflows weighted to collaboration inflows compared to product sales
28Copyright © 2015 Amyris, Inc. All rights reserved.
Focusing sales on higher value products
Continued growth in our higher margin personal care and performance chemicals
driving commodity industrials (fuels) contribution decline
Performance chemicals
29Copyright © 2015 Amyris, Inc. All rights reserved.
10 commercialized products inside over 400 brands and reaching over 100 million consumers
11 industry leading collaboration partners funding R&D and purchasing products with a long-term value share
Best-in-class technology platform and microbe engineering disrupting multiple markets
Flexible, low cost, industrial-scale production
Proven business model delivering 50% annual product sales growth
Investment highlights
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