2019 Jefferies Healthcare Conference

2019 Jefferies Healthcare Conference
2019 Jefferies
Healthcare Conference
Management Presentation
June - 2019
2019 Jefferies Healthcare Conference
This presentation has been prepared by the Company. No representations or warranties are being made with respect to these materials. Except for historical
information contained herein, the matters discussed in this presentation are forward-looking statements about expected future events and financial and
operating results that involve risks and uncertainties. We have based these forward-looking statements on our current expectations, assumptions, estimates
and projections. We have not independently verified any of the third-party or publicly available information included herein nor have we ascertained the
underlying assumptions relied upon therein. As a result, any market, ranking and other similar industry data included herein, and any estimates and beliefs
based on such data, may not be accurate and complete. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,”
“anticipates,” “intends,” “projects,” “estimates” and “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,”
and “could” are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future
events, circumstances or results are forward-looking statements. All forward-looking statements are only predictions and involve known and unknown risks
and uncertainties, many of which are beyond our control, including, without limitation, risks and uncertainties related to economic, market or business
conditions. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results,
performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, the recipient agrees that
neither it nor its Representatives are entitled to or will rely on the forward-looking statements and other information contained herein. The forward-looking
statements included in this presentation are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking
statements, either to reflect new developments, or for any other reason, except as explicitly required by law. In all cases, recipients should conduct their own
independent investigation and analysis of the Company and its business, assets, financial conditions and prospects.

This presentation presents certain “non-GAAP Measures” as a supplement to results presented in accordance with accounting principles generally accepted
in the United States of America (“GAAP”). These non-GAAP Measures, such as Adjusted EBITDA, as well as other statistical measures, are presented because
management believes these measures provide additional information regarding the Company’s performance and because we believe they are useful in
evaluating operating performance compared to that of other companies in our industry. In addition, management believes that these measures are useful to
assess the Company’s operating performance trends because they exclude certain material non-cash items, unusual or non-recurring items that are not
expected to continue in the future, and certain other items. The non- GAAP Measures are not presented in accordance with GAAP, and the Company’s
computation of these non-GAAP Measures may vary from those used by other companies. These measures have limitations as an analytical tool and should
not be considered in isolation or as a substitute or alternative to net income or loss, operating income or loss, cash flows from operating activities, total
indebtedness or any other measures of operating performance, liquidity or indebtedness derived in accordance with GAAP. Past performance may not be a
reliable indicator of future results. 2019 totals are “unaudited” and final audited numbers may differ from the totals presented within.

These presentation materials do not constitute or form part of an offer to sell or issue, or a solicitation or an offer to purchase or subscribe for, any securities
of the Company. The information contained in these presentation materials may not be reproduced, disseminated, quoted or referred to, in whole or in part,
without the express prior written consent of the Company.

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2019 Jefferies Healthcare Conference
Management Presentation

 Maravai LifeSciences Overview
 Our Businesses
       Bioprocess Impurity Testing
       Oligonucleotide Synthesis
       Protein Detection
 Business Update
 Financial Review
 Q&A

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2019 Jefferies Healthcare Conference
Maravai LifeSciences Overview
Our Mission is to Enable the Miracles of Science

 Maravai – medieval Italian word for a miracle.
 In science, they’re all around us. Genomics. Tumor
 pathology. Biotherapeutics.
 Maravai LifeSciences catalyzes the growth of successful
 pioneering life science companies by providing the
 expertise, capital, processes and systems so that they
 can continue to serve scientists to improve human
 We help scientists bring the miracles of science to life.

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2019 Jefferies Healthcare Conference
Maravai LifeSciences Overview
Differentiated Product Offerings
     Maravai is a brand leader in each of its three operating segments, offering differentiated
                     products to researchers and OEM customers worldwide

      Bioprocess Impurity Testing              Protein Detection               Oligonucleotide Synthesis
      Clear worldwide leader in ELISA     Pioneer and leader in research      Niche leader in oligonucleotides
         kits to detect impurities in   products for labeling and detecting   with a focus on highly modified
                bioprocessing                   proteins in tissue                          RNA
          Enable the production and     Immunohistochemistry improves risk          Products contribute to
        commercialization of safe and        assessment, prognosis and        breakthrough genomic discoveries
           effective biotherapeutics     treatment decisions in cancer and    that are driving precision medicine
                                                other disease states
                31% of revenue                    21% of revenue                        48% of revenue

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2019 Jefferies Healthcare Conference
Maravai LifeSciences Overview
Our Operating Focus

 Leadership in
                      Market leader with sustainable market
                      positions in attractive, high-growth markets

                      Wide portfolio of products backed by decades
                      of scientific investment and supported by
                      hundreds of thousands of scientific citations

                      Specific investments in quality systems, ensuring
 Focus on quality     manufacturing consistency and continued
                      reputation for excellent product quality

                      Direct scientist-to-scientist application support
 customer and
                      and best-in-class customer support
 technical support

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2019 Jefferies Healthcare Conference
Maravai LifeSciences Overview
History of Maravai LifeSciences
   March 2014                                        September 2016                           December 2016
   Formed Maravai                                    Acquired TriLink                         Acquired Solulink
   LifeSciences                                      Biotechnologies                          product
   San Diego, CA                                     San Diego, CA

                                                     Established 1996

                              April 2016                                   October 2016                           December 2017
                              Acquired Vector                              Acquired Cygnus                        Acquired
                              Laboratories                                 Technologies                           Glen Research
                              Burlingame, CA                               Southport, NC                          Sterling, VA

                              Established 1978                             Established 1987                       Established 1984

    Bioprocess Impurity Testing        Protein Detection      Oligonucleotide Synthesis

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2019 Jefferies Healthcare Conference
Maravai LifeSciences Overview
Proven Management Team with Significant Life Sciences Experience

    Carl Hull
    Chief Executive Officer, Co-founder

    Eric Tardif
    President, Co-founder

    Kevin Herde
    Vice President, Chief Financial Officer

    David Weber
    Vice President, Chief Commercial Officer

    Mike Houston
    Chief Scientific Officer

    Brian Neel
    COO, Oligonucleotide Synthesis

    Christine Dolan                                          Solopak
    COO, Bioprocess Impurity Testing                         Division of Smith & Nephew PLC

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2019 Jefferies Healthcare Conference
Maravai LifeSciences Overview
Maravai by the Numbers

                16%                                     $128mm
                                                         XX%                          86,000
                TTM Organic                                TTM Total                  Sq. Ft. of Lab and
              Revenue Growth                               Revenue                       Production
                                                        Organic Revenue
                                                             CAGR                          Facilities
                                           43%                            5,682
                                           TTM EBITDA

           $55mm                                           298                         7,237
               TTM Adjusted                               Employees                    Sellable SKUs

  Note: TTM metrics as of April 30, 2019

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2019 Jefferies Healthcare Conference
Bioprocess                            Oligonucleotide
                                                              Protein Detection
                                           Impurity Testing                           Synthesis

Our Businesses

         Bioprocess         Protein                             Oligonucleotide
       Impurity Testing    Detection                               Synthesis

        31% of revenue    21% of revenue                          48% of revenue

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Bioprocess                               Oligonucleotide
                                                                               Protein Detection
                                                            Impurity Testing                              Synthesis

Our Businesses: Bioprocess Impurity Testing
Biologics Manufacturing Process

  Upstream Manufacturing Process                  Downstream Manufacturing Process

  Grow Proteins          Harvest   Purification      Bulk Drug Substance Collected                 Final Drug

                                   Host Cell Protein (HCP) Testing
                                   Biological drugs are manufactured in cells,
                                   like E. coli. Normal cell growth processes
                                   result in impurities, including host cell
                                   proteins. Purification steps seek to
                                   eliminate these impurities. Testing kits are
                                   used to verify the removal of impurities

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Bioprocess                               Oligonucleotide
                                                                        Protein Detection
                                                 Impurity Testing                              Synthesis

Our Businesses: Bioprocess Impurity Testing
Gold Standard Immunoassays to Detect Impurities in Biologics Manufacturing

  Host Cell Protein ELISA Kits                                      Meeting Customer Needs
  More than 20 “generic” kits targeting
  various host cells                                           • Gold standard assays, backed
                                                                 by a 30+ year reputation
  Custom Assay Services                                        • Addressing regulatory need
  Process specific assay development                             for continuous monitoring of
  services and orthogonal testing                                impurities
  methods to characterize impurities
                                                               • Customers seek trusted
  Other ELISA and DNA Kits                                       partners to avoid high
  Broad range of kits to detect DNA or                           switching costs

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Bioprocess                                  Oligonucleotide
                                                                                      Protein Detection
                                                                Impurity Testing                                 Synthesis

Our Businesses: Protein Detection
Immunohistochemistry Workflow

 Tissue       Primary antibodies      Secondary         Visual detection           Slide                  Imaging
 processing   & antigen detection     antibodies        & labeling                 processing             & analysis

              Immunohistochemistry and Immunofluorescence
              Detecting the signal emitted by the target of interest requires a
              host of reagents with specific affinity to the primary antibody and
              to amplify and preserve the signal

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Bioprocess                                 Oligonucleotide
                                                                             Protein Detection
                                                    Impurity Testing                                Synthesis

Our Businesses: Protein Detection
Highly Characterized Reagents to Detect a Range of Antigens in Tissue

  VECTASHIELD                                                           Meeting Customer Needs
  Mounting media and other reagents
                                                                  • Over 350,000 scientific
  VECTASTAIN and ImmPRESS                                              citations
  Avidin-biotin complex and enzyme                                • Quick turnaround order
  polymer detection kits                                               fulfillment
                                                                  • High touch customer support
  Secondary Antibodies
  Broad range of proprietary, highly
  purified secondary antibodies with
  specific affinity to most primary
  antibodies in use

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Bioprocess                           Oligonucleotide
                                                                                      Protein Detection
                                                                   Impurity Testing                          Synthesis

Our Businesses: Oligonucleotide Synthesis
Nucleic Acid Applications

  Life Science Tools   Research        Clinical Diagnostics   Biopharma

     Enabling Genomic Medicine
     Maravai specializes in complex nucleic acid synthesis chemistries,
     providing highly modified nucleic acids to corporate partners and
     researchers for therapeutic and diagnostic applications

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Bioprocess                                 Oligonucleotide
                                                                           Protein Detection
                                                  Impurity Testing                                Synthesis

Our Businesses: Oligonucleotide Synthesis
From Specialty Chemicals for Oligonucleotide Synthesis to Complex mRNA Synthesized
Under GMP Conditions

   Messenger RNA                                                      Meeting Customer Needs
   High-quality, broad range of mRNA for a
   variety of applications
                                                                • 20+ years of complex oligo
   Phosphoramidites & Specialty                                      synthesis experience allows us to
   Chemicals                                                         address applications at the
   Broad range of high-purity reagents for                           forefront of genomics
   in-house oligonucleotide synthesis
                                                                • GMP capabilities for therapeutic
   DNA / RNA Oligonucleotides                                        development programs
   Reliable, scalable broad range of                            • OEM partner to provide
                                                                     components for advanced
                                                                     research and regulated products
  Custom Nucleotides
  Accurate and high-purity custom synthesis
  services, including highly complex

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Business Update
YTD 2019 Highlights
 Bioprocess Impurity Testing
     Five new product launches (record): 1 Generic Kit: EndonucleaseGTP™, MAC™
       MultiAnalyte Controls, Generic Kit for Protein A and two custom CHO kits.
     Executed well attended Mass Spec Services Webinar; new revenue stream created
     Published CHO competitor assessment technical brochure – thought leadership

 Protein Detection
      Continued uptake of two truly new products (Vibrance and TrueVIEW).
      Fully owned Burlingame, CA facility continues to attract interested buyers due to re-zoning
       with a $30M to $35M fair value range.

 Oligonucleotide Synthesis
     Production efficiencies continue to improve on time delivery reaching > 90% levels.
     Strong reagents growth driven by capping products: Clean Cap and ARCA.
     mRNA Scale up – Delivered a 5 gram GMP job and ramping up 10 gram GMP run (2H 2019).
     Successful ISO audit in April.

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Current Year Business Update
San Diego Facility Expansion
                                 Maravai LifeSciences and TriLink
                                 BioTechnologies Headquarters

                                105,000 sq. ft. facility with adjacent
                                 expansion opportunity
                                50,000 sq. ft. of custom designed
                                 manufacturing and laboratory
                                Five ISO Class 7 and ISO Class 8
                                 engineered GMP customer suites.
                                 Class 5 finish/fill hoods
                                mRNA, Oligo and custom chemistry
                                 pilot scale up suite (synthesis and
                                Custom designed solvent delivery

  June - 2019                                                             18
Current Year Business Update
Strategic Focus

 Continued revenue and EBITDA growth across all business segments
 Investments in commercial resources to further international growth
 Continued integration of a single overhead structure across the business
 On-going evaluation of acquisition opportunities to complement organic growth
 Investment in new San Diego facility to further consolidate operations and provide increased
    capacity for rapidly growing Oligonucleotide franchise

  June - 2019                                                                                19
Financial Review
Revenue Performance

                                          Revenue ($mm)                                                                 Revenue by Segment

                      Pre Maravai                                                 Post Maravai
                                                                                   Post Maravai


                             $64            $68
   $57         $61                                                                                                              Oligonucleotide
                                                                                                                                Impurity Testing
  2011         2012          2013          2014          2015           2016          2017           2018
                                                                                                                                Protein Detection
                                                                           2016          2017         2018E

               Note: Historical results presented on an adjusted pro-forma basis to present full year comparable results from M&A

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Financial Review
Strong Growth, Margins and Cash Flow

                    Revenue ($mm)                           Adjusted EBITDA ($mm)               FCF ($mm)1

                                                   $124   $36                                         $41
                              $104                                                       $34

         2016                 2017                 2018   2016      2017      2018      2016         2017        2018

•        Each acquired business generates significant cash flow, with sufficient critical mass in their individual
         market segments
•        Adjusted EBITDA margins at ~43% with historical organic revenue growth in excess of 20%
•        Integration activities completed resulting in solidified business processes, combined commercial
         organization and shared corporate services, and accelerated growth from investments
•        High cash flow conversion and capital expenditure light business model
1   FCF calculated as Adjusted EBITDA less capex

    June - 2019                                                                                                            21
Financial Review
YTD 2019 Highlights
 Continued Growth and Momentum into Q2 2019
       March 2019 set a record for single month revenue and EBITDA.
       April 2019 TTM revenues were $128M with EBITDA of $55M.
       Revenue growth of 16% over TTM ended April 2018.
       EBITDA growth of 18% over TTM ended April 2018.

 EBITDA Margins and Cash Flow Conversion Continue to Maintain at Industry Leading Levels
       Pricing trends remain favorable across all businesses.
       Expenditure control with focused spend in commercial areas to drive growth.
       Overall YTD 2019 EBITDA margin of 45%.

 Governance
      2018 financial statement audit complete with an unqualified opinion from EY.
      3 years of audited financials now completed.

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