Ginkgo Results Presentation Deck
Significant incremental upside opportunities in Zymergen transaction that
could improve financial case
1 Product Portfolio
• Zymergen exploring strategic alternatives for its Advanced Materials and Drug
Discovery businesses
2
o Sale(s) could create additional cash proceeds and reduce operating expenses
o Spin-out could reduce costs, create a new customer for Ginkgo, and provide an
opportunity for additional upside through equity appreciation
• Not contemplated in base case runway and revenue forecasts, but believe
product portfolio is strong, and Zymergen has already received serious inbound
interest in the portfolio since announcement
Real Estate Rationalization
• Ginkgo assuming a present value of ~$186 million in total future lease liabilities(1)
(including ~$30 million in 2023) in connection with Zymergen's real estate
portfolio, largely due to their new HQ in Emeryville, CA
o Note: the merger agreement provides protections related to cost overruns so
minimal uncertainty re: build-out costs
• We will actively evaluate real estate portfolio rationalization, and any successful
effort to mitigate the lease liability could represent meaningful upside to the base
case and further reduce incremental cash burn from the Zymergen transaction
(1) Represents the lump sum present value across Zymergen's leases
Ginkgo's vision fits well with where Zymergen is in its transformation
Over the last year, Zymergen has simplified
its business into 3 core areas: Advanced
Materials, Drug Discovery, and Automation
Previously
Zymergen was
focused on
pursuing many
discrete product
opportunities
Advanced Materials
Drug Discovery
Automation & Tech Platform
(and enabling SW/Data and biological assets)
Ginkgo's expertise in creating and supporting NewCos
will support Zymergen's plans to explore standalone
opportunities for the product areas
ON
Advanced Materials
• Independent product portfolio in areas like water
repellency, advanced polymers, and enzymes
• Zymergen may explore standing up a NewCo in
the space and/or selling certain product concepts
to strategic acquirers
Drug Discovery
Long-term goal to develop owned therapeutic
assets, potentially as another NewCo
• Certain enabling technologies may remain at
Ginkgo and enable therapeutics developers
Core technology assets that Ginkgo will integrate into
its platform to improve its service offering to customers
Excerpt from M&A Strategy Update Call (July 25, 2022)
The site of Zymergen's new HQ in Emeryville
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Property of Ginkgo Bioworks
Q2 2022 UPDATE & BUSINESS REVIEWView entire presentation