Proven Products. Real Results. platts Renewable Chemicals

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1 Proven Products. Real Results. platts Renewable Chemicals Vonnie Estes October 18, 2012

2 Forward-Looking Statements These slides and the accompanying oral presentation contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by these forwardlooking statements. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify forward-looking statements by terms such as may, will, should, could, would, expects, plans, anticipates, believes, estimates, projects, predicts, potential, or the negative of these terms, and similar expressions and comparable terminology intended to identify forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date hereof, and, except as required by law, we undertake no obligation to update or revise publicly any forwardlooking statements, whether as a result of new information, future events or otherwise. Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in Codexis Quarterly Report on Form 10-Q filed with the SEC on August 9, 2012, including under the caption Risk Factors. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results, levels of activity, performance or achievement may vary significantly from what we projected. Our logo, Codexis, CodeXyme Cellulase, CodeXol Detergent Alochol and other trademarks or service marks of Codexis, Inc. appearing in this presentation are the property of Codexis, Inc. This presentation contains additional trade names, trademarks and service marks of other companies. We do not intend our use or display of other companies trade names, trademarks or service marks to imply relationships with, or endorsement or sponsorship of us by, these other companies SAP AG. All rights reserved. 2 2

R&D About Codexis We develop enzymes and microorganisms that enable cost-advantaged production of biofuels, bio-based chemicals, and pharmaceuticals Cost-saving biocatalysts and premium R&D services

3 R&D About Codexis We develop enzymes and microorganisms that enable cost-advantaged production of biofuels, bio-based chemicals, and pharmaceuticals Cost-saving biocatalysts and premium R&D services Headquarters in Redwood City, CA Core Assets, Key Partners & Customers Pharma Established, Growing Pharma Business Cellulase Enzymes to Enable 2 nd Gen Fuels and Chemicals Bio-Based Chemicals For Consumer Products (more to come ) SAP AG. All rights reserved. 3

4 The CodeEvolver Advantage Performance Improvement Directed DNA Sequencing and Bioinformatics Speed & Productivity Improved Lipitor enzyme 4,000-fold Improved sitagliptin enzyme 28,000-fold Improved carbon capture enzyme 100,000-fold in 6 mos. Enables vast improvement potential versus unpredictable bursts of progress from traditional enzyme design Faster, most efficient directed evolution than anyone in the business SAP AG. All rights reserved. 4

Preserve Cash Solutions Non-exclusivity Agreement Merck 3-year Extension New

5 Restructure to Allow Focus on Growth Outstanding Issues Shell Commercial Rights and Funding Driving Pharma Growth Executive Team Vacancies Right-sizing the Company to Preserve Cash Solutions Non-exclusivity Agreement Merck 3-year Extension New Management Team Headcount Reduction; Closing Singapore 2011 SAP AG. All rights reserved. 5 5

Management Team Management team brings unparalleled

Background Joined John Nicols President & CEO David O

SVP, Pharmaceuticals Douglas Sheehy SVP, General

6 Management Team Management team brings unparalleled commercial and technical experience Name & Title Background Joined John Nicols President & CEO David O Toole SVP & CFO David Anton, Ph. D. SVP, Bioindustrials Peter Seufer-Wasserthal, Ph. D. SVP, Pharmaceuticals Douglas Sheehy SVP, General Counsel & Secretary Matt Tobin SVP, Research & Development 2012 (June) 2012 (September) SAP AG. All rights reserved. 6 6

Value Prop for Pharma More efficient (fewer reaction steps, resources required) Faster

years) Environmentally friendlier (lower-impact solvents, less hazardous waste) Collaborative

blockbuster drugs Intermediates for the world s biggest blockbuster Used in the API process for

8 Value Prop for Pharma More efficient (fewer reaction steps, resources required) Faster development timelines (months vs. years) Environmentally friendlier (lower-impact solvents, less hazardous waste) Collaborative approach to development (FDA Approval Commercialization) Success supporting Big Pharma on blockbuster drugs Intermediates for the world s biggest blockbuster Used in the API process for new blockbuster Three 2011 global approvals Awards 2006: Atorvastatin (Lipitor ) 2010: Sitagliptin (Januvia ) 2012: Simvastatin (Zocor ) 2011 SAP AG. All rights reserved. 8

9 Bio-Based Fuels & Chemicals From Non-Food Biomass 2 Ways to Win in The New Sugar Economy Feedstock And Logistics Pre- Treatment Saccharification Enzymes SUGAR Conversion Micro- Organism Refining & Finishing Chemicals & Fuels Cellulase 2011 SAP AG. All rights reserved. 9 9

12 High Performance to Minimize Costs Best-in-class performance will enable greater cost savings around each customer s unique needs and processes Flexible Across Feedstocks Corn Stover Bagasse Wheat Straw Sugar Beet Pulp Forest Biomass Energy Crops Pulp and Paper Flexible Across Pretreatments Tested and well-suited for a variety of pretreatments Robust enzymes work well under a range of conditions, maximizing sugar conversion Enable use of unwashed biomass, lowering process costs, creating cheaper sugars High performing enzymes results in lower loads and less costs across a variety of feedstocks and pretreatments 2011 SAP AG. All rights reserved. 12

The CodeXyme Difference: Designed For Performance

REDUCTION IN ENZYME COST Powered by Customer

Active With Optimal Pretreatment Broad Feedstock

Failures Less Process Downtime Reduces Product COGS

13 The CodeXyme Difference: Designed For Performance STRONG ENZYME PERFORMANCE PROVIDES BENEFITS BEYOND REDUCTION IN ENZYME COST Powered by Customer Operations Customer Advantages Broad ph & Temp Range Active With Optimal Pretreatment Broad Feedstock Characteristics Fewer Process Controls Fewer Batch Failures Less Process Downtime Reduces Product COGS Reduces Capital Requirement 2011 SAP AG. All rights reserved

14 The Path Forward on CodeXyme TM Cellulase Commercial cellulases are expected to be a 3 billion gallon per year opportunity by 2020, with 20% of market demand coming from Brazil COMMERCIAL STRATEGY Partners Pursue continued CodeXyme TM Cellulase development & deployment Customers Sample various biomass and pretreatments 2011 SAP AG. All rights reserved. 14

16 What Are Detergent Alcohols? End Use Market Detergent alcohols are chemicals that are converted into surfactants, then formulated into household detergents and personal care products Currently made from unsustainable Palm Kernel Oil or Petroleum Sources Lubricants and Solvents 5% I&I Cleaners 12% Personal Care 21% Other 6% Household Detergents 56% CodeXol TM detergent alcohols address 70% of the market Initial Focus: C 12 /C 14 Drop-In for Detergents and Shampoos Source: 2009 SRI Detergent Alcohols Report. Products shown are representative only SAP AG. All rights reserved. 16

Codexol TM Detergent Alcohol Process We ve have a unique process for a truly green detergent

Detergent Alcohol Concentrated End Market In-licensed Proprietary Proprietary Jointly

Redwood City, CA Rivalta Strategic Partnerships 10 L Lab 650L Pilot 1,500 L Demo Brazil

17 Codexol TM Detergent Alcohol Process We ve have a unique process for a truly green detergent alcohol product Feedstock Pretreatment Enzyme Application Fermentation Refining CodeXol TM Detergent Alcohol Concentrated End Market In-licensed Proprietary Proprietary Jointly Developed and are currently running pilot-scale production. Redwood City, CA Rivalta Strategic Partnerships 10 L Lab 650L Pilot 1,500 L Demo Brazil focused 40,000-60,000 tons annual Commercial mid-2013 Tech & Process Licensing Package Geography Based 2011 SAP AG. All rights reserved

Customer Value Proposition Superior Performance Codexis

for enhanced cleaning, improved cold water performance Cost

companies Local sourcing reduces transportation costs and

18 Customer Value Proposition Superior Performance Codexis technology enables products not possible today Potential for enhanced cleaning, improved cold water performance Cost Advantage Lower volatility reduces long-term cost to CPG companies Local sourcing reduces transportation costs and supply delays Greener Products Reduced carbon footprint Strengthens customer brand equity Enable greener products that may be priced at a premium 2011 SAP AG. All rights reserved

19 Codexis Summary World leading enzyme and microorganism developer Fast, flexible, efficient directed evolution Ten + years refined; substantial R&D scale Established leader serving biocatalysts to global pharma industry > $50M in sales; double digit CAGR ( ); improving mix Pipeline momentum; expanding number of customers Positioned To Capture Large Future Market Upsides CodeXyme TM leadership for 2 nd generation ethanol and chemicals CodeXol TM for 2 nd generation detergent alcohols Repositioned to deliver growth Committed executive leadership team in place Operations right-sized to ensure sustainable cash position 2011 SAP AG. All rights reserved

20 Proven Products. Real Results. platts Renewable Chemicals Vonnie Estes October 18, 2012

At 700 billion tons, Cellulose is the Earth s most widespread natural organic chemical. Let s put it to work.

At 700 billion tons, Cellulose is the Earth s most widespread natural organic chemical. Let s put it to work. Cleantech to Market Presentation 2010 A. Chen, J. Hennessey, R. Kenny, L. Orbai Biofuel Momentum