Grow with Ginkgo Q3 2025 Update & Business Review November 6, 2025 Property of Ginkgo Bioworks — 1 Q2 2025 UPDATE & BUSINESS REVIEW Disclaimer FORWARD-LOOKING STATEMENTS This presentation, the conference call and webcast contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, including with respect to technology adaptations to meet our customers' needs, strategies, including with respect to our current expectations, operations a ...

Market Overview - Hong Kong stocks experienced a decline, with the Hang Seng Index falling 0.2% to 26,282.69, reversing earlier gains that had reached 0.9% [1] - The Hang Seng Tech Index also dropped by 0.7% [1] - On the mainland, the CSI 300 Index decreased by 0.8% and the Shanghai Composite Index lost 0.7% [2] Company Performance - Sunny Optical Technology Group's stock fell by 4.8% to HK$76.95, while Budweiser Brewing also saw a decline of 4.8% to HK$8 [3] - Biotech firm Wuxi AppTec retreated by 3.7% to HK$108.50 following a major shareholder's announcement to sell a stake on the Shanghai exchange [3] - In contrast, Meituan's stock advanced by 2.4% to HK$102.40 due to a plan to sell US$3 billion of dual-currency notes [3] Geopolitical Impact - The meeting between Chinese President Xi Jinping and US President Donald Trump resulted in a tariff truce that was largely anticipated by the market [4] - Key outcomes included China delaying a curb on rare earth exports and resuming purchases of American soybeans, while the US would extend a pause on reciprocal tariffs for an additional year [5] - Analysts noted that the results of the meeting were in line with a preliminary agreement previously reached, which had already been factored into market expectations [6]

Financial Data and Key Metrics Changes - The group's revenue increased by 81.9% year over year to approximately $519 million [43] - Adjusted profit from continuing operations grew significantly to about $178 million [43] - The net loss narrowed to approximately $24.5 million, largely affected by Legend Biotech's performance [43] Business Line Data and Key Metrics Changes - GenScript Life Science Group's revenue grew by 11.3% to about $248 million [45] - ProBio's revenue surged by 511% to around $402 million [43] - Bestzyme's revenue increased by 8.4% to $28.3 million [43] Market Data and Key Metrics Changes - Revenue from industry customers, particularly pharma, increased due to the development of more M&D companies [45] - Revenue from the Americas and European markets grew, thanks to the successful execution of the global market strategy [48] Company Strategy and Development Direction - The company is focused on expanding market penetration for protein, mRNA, and cell and gene engineering [55] - Investments are being made in automation, capacity expansion, and digital transformation to enhance operational efficiency [55] - The company aims to leverage its global footprint to provide speed, reliability, and consistent delivery to customers [78] Management's Comments on Operating Environment and Future Outlook - Management noted that the geopolitical environment remains complex but the company delivered rapid growth [6] - There is confidence in achieving margin improvement through strategic investments and operational efficiencies [94] - The company anticipates a stronger growth trajectory in the second half of the year across all segments [45] Other Important Information - The company achieved significant ESG milestones, including an upgrade to AA in MSCI ESG ratings and inclusion in the FTSE4Good index [10] - The cash position stood at $970 million, supporting global expansion and R&D efforts [9] Q&A Session Summary Question: ProBio's fee for service and COGS trends - Management clarified that excluding the Lenovo collaboration impact, fee for service business achieved double-digit growth [62] Question: Bestzyme's product breakdown and growth expectations - Management indicated that new product launches and expanded sales personnel in key markets are expected to drive growth in the second half [65] Question: Future milestone payments from Lenovo collaboration - Management expects to recognize a milestone payment of $300 million in the second half, with further payments dependent on clinical trial progress [76] Question: Global expansion and long-term revenue contribution - Management emphasized the importance of a robust global footprint for flexibility and resilience, aiming for sustainable growth [78] Question: Tariff impact on profits - Management reported that tariffs had a low impact on profits, under $4 million, due to the nature of the business [85] Question: ProBio's order trends and backlog - Management noted steady growth in orders and a clear recovery in antibody and protein R&D, with a focus on active backlog management [88]

Financial Data and Key Metrics Changes - Fiscal year 2025 marked a record-setting year for the company, with fourth-quarter revenue reaching $7 million, the highest in the company's history, representing an 8.1% increase year-over-year and a 13.5% increase quarter-over-quarter [4][16] - Gross margin improved to 64% in the fourth quarter, up from 48% in the same quarter last year, and 55% for the full fiscal year, an increase from 49% in fiscal year 2024 [4][17] - Adjusted EBITDA loss narrowed to $316,000 in the fourth quarter, a significant improvement from a loss of $1.7 million in the same quarter last year [6][19] - Cash position improved to $10.8 million as of April 30, 2025, compared to $3.5 million at the end of fiscal year 2024 [20] Business Line Data and Key Metrics Changes - The BioStrand segment experienced exceptional growth, increasing over 180% year-over-year, with gross margins approaching 90% [5][17] - Canadian business showed strong growth, with sales orders reaching $4.3 million in the fourth quarter, more than double historical quarters, and year-over-year sales in Canada increased by 47% [6][17] Market Data and Key Metrics Changes - The company is actively divesting its Dutch subsidiary, with the process in the final stages, which is expected to streamline operations and generate additional cash [7][8] - The company plans to rebrand shortly after the divestiture to reinforce its position as a bio-native AI platform [9] Company Strategy and Development Direction - The company is shifting from a service-oriented model to a customizable platform-driven business, focusing on AI and data integration in drug discovery [9] - Strategic collaborations have been established, including partnerships with Ribopro and a publicly traded technology company, aimed at enhancing therapeutic development offerings [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering the new fiscal year with a financially disciplined position to support growth, driven by strong cash position and validated AI economics [20] - The company anticipates continued growth in its core capabilities and expects the trend of increased inquiries related to IND applications to persist [35] Other Important Information - The FDA's plans to phase out animal testing for monoclonal antibodies align with the company's Lens AI capabilities, which predict toxicity and immune response [11] - The company regained compliance with Nasdaq's minimum bid price requirement, reflecting growing market confidence [13] Q&A Session Summary Question: What should be expected for the clinical development of GLP-one peptides? - The company is working with two partners on drug product manufacturing and unique administration routes, with plans to bring in a financial sponsor for clinical trials [22][24] Question: What milestones are needed to recognize payments from the biotech partner on oncology assets? - Initial payments are expected to be visible in the second quarter, with no unusual deal-breaking milestones [25][27] Question: What traffic has been seen for services since the FDA's guidance on AI-based systems? - There has been a significant increase in inquiries related to IND applications, particularly for immunogenicity and epitope mapping [29][35] Question: How far along is the divestment of European facilities? - The divestment process is in the final stages, with a dedicated buyer and no expected detrimental impact on the Canadian facility [36][39]

Financial Performance & Targets - Ginkgo achieved $205 million in annual run-rate cost savings from Q1 2024 to Q1 2025[13] - The company maintains a strong financial position with $517 million in cash, cash equivalents, and marketable securities[15] - Total Adjusted EBITDA improved from $(117) million in Q1 2024 to $(47) million in Q1 2025, a 59% increase[34] - Ginkgo is targeting Adjusted EBITDA breakeven by the end of 2026[11, 49] - The company aims for $250 million of annualized run-rate savings target by the end of Q3 2025[53] Revenue & Growth - Cell Engineering revenue increased by 37% year-over-year, reaching $38 million in Q1 2025[34] - This includes recognition of $75 million non-cash deferred revenue from BiomEdit[24] - Total revenue increased by 27% year-over-year, from $38 million to $48 million[34] - Biosecurity revenue remained stable at $10 million in Q1 2025 compared to Q1 2024[34] Biosecurity Expansion - Ginkgo's biosecurity segment has expanded its reach to 127 countries of origin of flights sampled, representing 65% of nations globally[33] - The biosecurity network includes 11 key international airports and 45 collection nodes cumulatively in 2025[33]

Financial Data and Key Metrics Changes - The company achieved a reduction in annual run rate costs of $205 million between Q1 2024 and Q1 2025, surpassing the initial target of $200 million [8] - Total company adjusted EBITDA improved to negative $47 million in Q1 2025 from negative $117 million in Q1 2024 [17] - Cash burn decreased significantly to $58 million in Q1 2025 from $104 million in Q1 2024 [18] Business Line Data and Key Metrics Changes - Cell engineering revenue reached $38 million in Q1 2025, a 37% increase year-over-year, with a 10% increase to $31 million when excluding noncash revenue [11][12] - Biosecurity revenue was $10 million in Q1 2025, with a segment gross margin of 28% [13] - The number of revenue-generating programs in cell engineering increased by 32% year-over-year, totaling 123 programs [12] Market Data and Key Metrics Changes - The company has 28 government projects across cell engineering and biosecurity, with a contracted backlog exceeding $180 million [30] - The biotechnology sector is currently facing challenges in capital markets, but companies that navigate these difficulties are expected to emerge stronger [10][25] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven by the end of 2026 while maintaining a cash margin of safety [5][6] - A focus on expanding the tools business to market directly to a wider range of customers, moving beyond traditional R&D solutions [7] - The company is positioning itself as a trusted R&D service provider to the U.S. government, with ongoing investments in biotechnology and biosecurity [20][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the biotechnology sector's resilience and the potential for growth despite current market challenges [10][25] - The new U.S. administration is expected to continue funding biotechnology, with a focus on reducing regulations and increasing investment in critical technologies [26][30] - The company is well-positioned with over $517 million in cash and no bank debt, allowing it to navigate the current market environment effectively [9][25] Other Important Information - The company has made significant progress in restructuring efforts, achieving substantial cost reductions while maintaining service to existing customers [8][19] - The introduction of new metrics for revenue-generating programs aims to provide more useful data for analysts and improve revenue modeling [12] Q&A Session Summary Question: Is there an opportunity for data points to evolve into a SaaS cloud computing product? - Management acknowledged the potential for Ginkgo to assist large pharma companies in developing their data architecture and systems, indicating a possible opening in the SaaS space [85][86] Question: Can you provide more details on the ARPA H contract and its revenue recognition? - The ARPA H contract is a $29 million, two-year agreement, with revenue expected to be recognized over that period, significantly derisking the company's guidance for the year [92][94]

Financial Data and Key Metrics Changes - The company achieved a reduction in annual run rate costs of $205 million between Q1 2024 and Q1 2025, surpassing the initial target of $200 million [7] - Cash and cash equivalents on the balance sheet stand at $517 million with no bank debt, positioning the company strongly among peers in the biotechnology sector [8][26] - Total company adjusted EBITDA improved to negative $47 million in Q1 2025 from negative $117 million in Q1 2024, indicating significant progress in profitability [17] - Cash burn decreased to $58 million in Q1 2025 from $104 million in Q1 2024, reflecting the impact of restructuring efforts [18] Business Line Data and Key Metrics Changes - Cell engineering revenue reached $38 million in Q1 2025, a 37% increase year-over-year, with a 10% increase to $31 million when excluding noncash revenue [11] - The biosecurity business generated $10 million in revenue in Q1 2025, with a segment gross margin of 28% [13] - The number of revenue-generating programs in cell engineering increased by 32% year-over-year, totaling 123 programs [12] Market Data and Key Metrics Changes - The company has 28 government projects across cell engineering and biosecurity, with a contracted backlog exceeding $180 million [32] - The company is positioned to benefit from increased government investment in biotechnology, as highlighted by recent speeches from government officials [28][32] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven by the end of 2026 while maintaining a cash margin of safety [4] - The strategic focus includes expanding the tools business and enhancing the way the platform is sold, moving beyond traditional R&D solutions [6][21] - The company is actively pursuing opportunities in the automation and data points sectors, leveraging its expertise in high-throughput screening and AI [46][84] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the biotechnology sector's resilience despite current market challenges, emphasizing that companies that navigate this period successfully will be in a strong position [9][26] - The management highlighted the importance of government funding for biotechnology and expressed confidence in the continuation of such funding [32][96] Other Important Information - The company has made significant strides in cost reduction while continuing to serve existing customers effectively [7][20] - The introduction of new metrics for revenue-generating programs aims to provide more useful data for analysts and investors [12] Q&A Session Summary Question: Is there an opportunity for data points to evolve into a SaaS cloud computing product? - The management acknowledged the potential for Ginkgo to assist large pharma companies with data architecture and automation technology, but clarified that the approach to market is still being evaluated [87][89] Question: Can you provide more details on the ARPA H contract and its revenue recognition? - The ARPA H contract is valued at $29 million over two years, with revenue expected to be recognized accordingly, which significantly derisks the revenue guidance for the year [94][95] - The management remains hopeful about the continuation of funding for biotechnology projects despite potential cuts in government spending [96]