solazyme q3 2012 earnings
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NOVEMBER 14, 2012
November 14, 2012 South San Francisco, CA
3Q 2012 EARNINGS REPORT
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SAFE HARBOR
This presentaAon includes forward‐looking statements that are subject to many risks and uncertainAes. These forward‐looking statements, such as our statements about our short‐term and long‐term growth strategies, can someAmes be idenAfied by our use of terms such as “intend,” “expect,” “plan,” “esAmate,” “future,” “strive” and similar words. Although we believe that the expectaAons reflected in our forward‐looking statements are reasonable, those statements involve many risks and uncertainAes that may cause our actual results to differ from what may be expressed or implied in our statements. Those risks are discussed in the documents that Solazyme, Inc. files with the SecuriAes and Exchange Commission, including its Quarterly Report on Form 10‐Q for the quarter ended June 30, 2012. No forward‐looking statement is a guarantee of future results, and you should not place undue reliance on our forward‐looking statements, which reflect our views as of the date of this presentaAon. We assume no obligaAon to update any forward‐looking statement contained in this presentaAon, except as may be required by law.
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RECENT BUSINESS HIGHLIGHTS
New commercial capacity agreement announced with ADM
On schedule with Bunge and RoqueGe JV capacity build out JV Expansion Framework Agreement announced with Bunge for 300kMT
Peoria producing and delivering mulPple tailored oils to customers
New tailored oil profile: high value cocoa buGer replacement (algal buGer)
Algenist on track to more than double revenue for FY12
Jean Marc Rotsaert joined the execuPve team as COO
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SB OILS ON TRACK FOR MOEMA 100K MT COMPLETION 4Q13
Broke ground in June 2012 Earthworks concluded; foundaPon and infrastructure in progress Long‐lead equipment ordered
EPCM team on board and working on site
Detailed engineering in sync w/site progress
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JV EXPANSION FRAMEWORK ANNOUNCED WITH BUNGE
JV Expansion Framework Agreement targets 300K MT worldwide by 2016
JV field to include certain tailored food oils in Brazil Bunge is the leader in edible oils in Brazil Joint market development in tailored food oils
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SOLAZYME ROQUETTE NUTRITIONALS PHASE I I ON TRACK FOR 2Q13
Market feedback for Almagine® HL and HP very strong
Significant progress with major CPG companies’ applicaPon development
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PEORIA MANUFACTURING OPERATION
RouPnely producing mulP‐ton tailored oil samples for strategic partners
First fully integrated facility with all large‐scale operaPons ConducPng rouPne commercial fermentaPon for Algenist products
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SOLAZYME FORGING NEW PARTNERSHIP WITH ADM
ADM corn wet mill assets (as part of ex-Telles JV) in Clinton, IA
[CONFIDENTIAL AND PROPRIETARY]
Capital efficient access to commercial capacity to speed market entry of tailored oils
Capital efficient expansion up to 100kMT of US‐based producPon
ProducPon begins with 20kMT by early 2014
SZYM accessing exisPng, idle ADM facility – fermenters comparable to Moema
Market development agreement signed accessing ADM’s broad capabiliPes
Solazyme retains all commercial economics (gross margin)
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NEW TAILORED OIL: ALGAL BUTTER PROFILE SIMILAR TO COCOA BUTTER
• Cocoa buGer valuable because it has unique physical characterisPcs • The precise composiPon gives chocolate its characterisPc hardness at room
temperature with a sharp transiPon to liquid at body temperature
• Global ASPs > $3,600/MT currently and 5 year average > $5,000/MT
ComposiAon Cocoa buGer Algal buGer
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PROPEL FUELS: FIRST CONSUMER AVAILABILITY FOR ALGAL FUELS
Month‐long market pilot program for Soladiesel®BD at B20 blend
Fuels are available exclusively at Propel’s Clean Fuel Points in mulPple ciPes in CA
Oil for fuel was produced at Solazyme’s Peoria, IL manufacturing facility
B20 Soladiesel™ blend reduces parPculates approx. 30% and 20% reducPon in CO
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STRONG GROWTH WITH ALGENIST ® LINE CONTINUES
YTD revenue ~$12m, on track for > 2x 2011 revenue in 2012
2 new products introduced in Q3, 2012; SKUs increased to 15 Complete Eye Renewal Balm is #1 eye product at Sephora inside JCPenney
Algenist® won the QVC Brand Rising Star Award
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SUMMARY
Solazyme execuPng on capacity expansion: ADM and Bunge
Capacity projects at Moema, Lestrem and Peoria are all on track
Algenist® sales remain strong
New tailored oil: algal buGer ‐ strong value proposiPon to replace cocoa buGer
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F INANCIAL HIGHLIGHTS
Three Months Ended September 30, Nine Months Ended September 30,
2012 2011 2012 2011 Revenue $8.6M $8.9M $35.7M $24.1M Product revenue $3.8M $1.9M $11.9M $5.5M R&D programs $4.8M $7.0M $23.8M $18.6M
Non‐GAAP Costs & OperaPng Exp. $28.0M $20.4M $84.3M $51.3M
Non‐GAAP Net Loss ($19.4M) ($11.5M) ($48.5M) ($27.2M) Capital Expenditures $2.9M $3.1M $11.0M $13.2M
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WELL POSITIONED TO COMMERCIALIZE
Strong cash balance
Significant commitments from industry leaders and partners
as of September 30, 2012
Cash, cash equivalents and marketable securiPes $167M
Total assets 238M
Total debt 16M
Total liabiliPes 34M
Total stockholder's equity $204M
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YEAR TO DATE AND UPCOMING MILESTONES ‐ BUILDING VALUE
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Capacity & feedstock
CommercializaPon
Achieved Upcoming Dow ojake agreement and JDA
ConPnued Algenist® sales growth Almagine® protein product developed
Green Fleet fuel delivery and Green Strike Group demonstraAon
New Bunge and ADM market development agreements
1st consumer availability of Soladiesel®BD
Entered into Bunge JV Expanded Bunge JV New ADM collaboraPon
SRN JV Phase II construcPon on track Integrated biorefinery online in Peoria On track at Moema
Phase II SRN complete 2Q13
Moema facility operaAonal by 4Q13
ADM Clinton facility operaAonal in early 2014
AddiAonal feedstock & commercial manufacturing capacity
Expansion of downstream partners
Market development agreements
Product revenue growth New product launches
New high stability high oleic oils New high myrisAc oil
New cocoa buGer replacement oil
Never missed a JDA milestone
SRN JV tech transfer to Lestrem facility
Scaled up High Oleic Oil in Peoria
New tailored oils & market applicaAons
ConAnue to meet JDA milestones
Produce new oil profiles for sampling
Joint Development Agreements
Technology
Bold = Recent achievements
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