Ginkgo Results Presentation Deck slide image

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 21 Property of Ginkgo Bioworks Q2 2022 UPDATE & BUSINESS REVIEW
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