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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, 2016


© 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, 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.



Speakers

Dr. Jürgen Eck

(CEO)

• Micro- & Molecular Biologist

• 53 years

• Co-founded BRAIN in 1993

• 25+ y of industry expertise

• Well connected in industry

• Management & Strategy

• R&D, IP and Technology

Eric Marks

(COO)

• Industrial Engineer, Business Economist

• 54 years

• Joined BRAIN in 2015

• 20+ y of expertise in industrial enzymes

• Track record with industry leaders

• Sales, Business Operations

• Strategic & Innovation Management

• Master of Business Adminstration

• 68 years

• Joined BRAIN in 2016

• 35+ y of experience as CFO

in 4 listed companies

• Finance, Accounting Controlling

• Compliance & IR

Dr. Georg Kellinghusen

(CFO)



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.



Significant Events 9M 2015/16

• Important milestone reached in the strategic partnership with

DIANA Pet Food

Already in the first year an initial milestone in understanding taste function in

cats was reached and proliferating cat taste cells (CTCs) were achieved faster

than planned

• BRAIN and Südzucker AG are intensifying their cooperation in the field

of microbial utilization of carbon dioxide

The two partners enter into scale-up to a pilot facility at the Südzucker

CO2-emitting plant in Zeitz

• BRAIN accelerates biotechnology production process optimisation

Under the successfully started alliance “NatLifE 2020” BRAIN is working

together with PS Biotech GmbH on optimizing biofermentation production

processes expecting time savings of 30% compared to the conventional

timelines



Financial Highlights



BRAIN Group Financial Highlights 9M 2015/16

• BRAIN Group generated a total operating performance of Euro 19.0m (9M 2014/15: Euro 19.8m)

• Revenues increased to Euro 16.5m (9M 2014/15: Euro 16.1m)

• Further expansion of “BioScience” segment based on growing collaboration business with

international industrial partners reaching € 9.1 million in 9M period (+ 5% YOY)

• In 9M period “BioIndustrial” segment accounted for Euro 10.0m (9M 2014/15: Euro 11.2m)

• The Group EBIT amounted to Euro -7.7m (9M 2014/15: Euro -3.9m)

• Adjusted by IPO costs of Euro 1.1m and adjusted by personnel expenses resulting from a share-

based compensation scheme at Analyticon of Euro 1.3m

• The adjusted EBIT amounted to Euro -5.2m (9M 2014/15: Euro -3.7m)

• Euro -4.9m related to the “BioScience” segment and Euro -0.3m related to the “BioIndustrial” segment

• BRAIN will continue to pursue its course of profitable growth

• From today's perspective BRAIN expects to reach EBIT break-even as planned in fiscal year 2017/18



Key Quarterly Financials 9M FY 2015/16

(in Euro million) 1 9M 9M

2015/16 2014/15

Total operating performance2 18.993 19.755

BioScience 9.126 8.653

BioIndustrial 9.964 11.211

Adjustments (consolidation effects) -0.097 -0.109

EBIT -7.682 -3.861

Adjusted EBIT3 -5.244 -3.709

Group result -8.656 -4.686

Result per share (in Euro) -0.58 -0.36

Cash flows from operating activities -6.944 -3.266

Cash flows from investing activities -2.772 -0.427

Cash flows from financing activities 25.304 2.678

1) The financial figures of the first nine months of fiscal year 2015/16 are comparable only to a limited extent to the values of 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 2) Revenues + change in inventories + other income including R&D grants, only comparable to a limited extent

3) Adjusted for one-off costs of the IPO and expenses resulting from share-based employee participation plans



Financials

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

4.3 5.6 8.9

12.3 8.7 9.1

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



Business Highlights



BRAIN Group “BioIndustrial “ - Highlights 9M 2015/16

• Within the segment “BioIndustrial” our emphasis on the more profitable specialty enzymes business

continues to deliver results. While the global market weakness of bulk enzymes for bioethanol production

continues, several customers have increased production again, resulting in a recovery of the enzyme sales.

In total the segment generated Euro 10.0m revenues.

• In Q3 2015/16 a new product was launched, the new Serie Monteil ProBeActive. This product is a probiotic,

activating Anti-Aging treatment created on the basis of the lactic acid bacterium Lactococcus lactis. The use of

this natural active compound is a first in the global cosmetics industry.



BRAIN Group “BioScience” - Highlights 9M 2015/16

• Further expansion of “BioScience” segment based on growing collaboration business with international

industrial partners reaching € 9.1 million in 9M period (+ 5% YOY).

• Important milestone reached in the strategic partnership with DIANA Pet Food. Already in the first year an

initial milestone in understanding taste function in cats was reached and proliferating cat taste cells (CTCs) were

achieved faster than planned. The CTC technology is derived from BRAIN’s proprietary Human Taste Cell

Technology (HTC) enabling to screen for bioactive natural substances to improve foodstuff preparations.

• BRAIN and Südzucker AG are intensifying their cooperation in the field of microbial utilization of carbon

dioxide. The two partners enter into scale-up to a pilot facility at the Südzucker CO2-emitting plant in Zeitz.

Based on producer microorganisms developed by BRAIN the partnership makes use of CO2 as a feedstock for

the production of intermediate products including monocarboxylic and dicarboxylic acids for bioplastics.

• BRAIN to accelerate biotechnology production process optimisation. Under the successfully started

alliance “NatLifE 2020” BRAIN receives funding of the German Federal Ministry of Education and Research

(BMBF). As part of this alliance, BRAIN is working together with PS Biotech GmbH on optimizing

biofermentation production processes expecting time savings of 30% compared to the conventional timelines.



Events after the end of the quarter

• US patent granted for new generation of taste cell technology. On 2 August 2016, BRAIN received the US

patents to utilise taste bud technology for screening purposes. The company has developed this technology on

the basis of human taste buds, resulting in Human Taste Cell lines enabling high-throughput screening programs

for the identification of natural substances for novel food formulations which improve taste and also help reduce

calorie and salt content.

• 'DOLCE' strategic industrial partnership to develop new generation of biological sugar substitutes. One

focus of BRAIN new product development portfolio lies on the development of biological sweeteners. On 29

August, BRAIN AG, AnalytiCon Discovery GmbH as part of the BRAIN Group, and Roquette S. A. (Roquette) – a

market leader in intermediate products for the food manufacturing industry agreed a strategic partnership to

develop a new generation of natural sweeteners and sweet flavour enhancers. Negotiations with two major

consumer goods manufacturers concerning participating in "DOLCE" advanced further in Q3 2015/16. Additional

consumer goods manufacturers have been invited to join the industrial partnership in various foodstuff markets

and participate in the partnership's innovations.



DOLCE Consortium new sweet solutions for industry

World market leading food

manufacturing and

converting industry



Financial Calendar

August 31, 2016 Publication of the quarterly report for the

period ending 30 June 2016 (9M)

December 20, 2016 Publication of the annual report for the

period ending 30 September 2016 (12M)

February 28, 2017 Publication of the quarterly report for the

period ending 31 December 2016 (3M)

March 2017 Annual General Meeting



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]



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