Rapid Micro Biosystems, Inc. Class A Common Stock Small-Cap Virtual Conference

Thanks, Alex. Again, good morning, everyone, and thanks for joining us. Again, I am Rob Spignesi, President and CEO, and I am joined by Sean Wirtjes, our Chief Financial Officer. What we will do today is I will start with a brief overview of our business to give you a high-level sense of our business and what we are doing. We will get a little more into depth into our customers and our products and our technology. As Alex mentioned, we will have some time for some Q&A. With that, we will dive right in. In 2025, think of us as a $34-ish million business growing at about 20%. It is important to note, and this will become apparent as we work through our discussion today, our business model has a strong component of recurring revenue.

Greater than 50% of our revenue is recurring in the form of consumables, and we will walk through how that works, as well as services. In 2025, around $34 million in revenue and growing about 20%. Globally, we have a large number, relatively speaking, of systems placed and growing. About 200 systems placed around the world. We will go through our customer footprint and also installation network, and we will show you where they are. It is important to note, though, while 200 is a significant number, we are just barely getting penetrated. If you converted the market for Growth Directs, all the test volume into Growth Directs, it is about 8,000-10,000 systems globally. We are just getting started in penetrating this market. Around 169, 170 systems validated. This is an important metric.

Validation, it is a point in time in which our customers, typically a pharmaceutical manufacturer, puts a system in what is called routine testing, and it becomes the actual system of record for that pharmaceutical company, and we start generating the high rate of recurring revenue, largely in the form of consumables and recurring services. We operate globally across 20 companies. Fantastic customer base, and again, we will show you who they are in a few slides. From a high level, we are very proud to count 75% of the global top 20 pharma companies as customers. The vast majority, in pretty much all those cases, we are just getting started penetrating their global networks. It is important to note that we address all manufacturing modalities in pharmaceutical manufacturing, but we are especially strong in the higher-value advanced modalities of biologics, cell and gene therapy, et cetera.

As you can see here, we have 86% of the FDA-approved commercial CAR T manufacturers are using the Growth Direct to release their valuable therapies. Looking forward, we believe we are very well-positioned to continue to grow and expand our margins. To touch on strong business fundamentals, 200 systems placed and growing with a very strong, durable recurring revenue model. We continue to expand with existing customers across their enterprise and have many new customers in our pipeline as well, some of which have multiple system opportunities. Touched on the recurring revenue model, very powerful model where we place our Growth Direct System and pull through a high rate or a high yield of increasingly profitable consumable and service revenue. Gross margin is a very important story for us. Our margins are inflecting, and we will walk you through that. We will continue to inflect our margins higher.

We have a very exciting relationship with MilliporeSigma with regard to global distribution and the ability to supply Rapid Micro and drive and accelerate our gross margins further and the opportunity to collaborate on innovation and new product development. We are very well-positioned to capitalize on the global trends across pharmaceutical manufacturing. One of those is reshoring of manufacturing into North America. We are well-positioned to help automate those sites, and it is our belief the vast majority of those sites will be heavily automated. More broadly, the advent and the penetration of AI and automation globally, we are very well-positioned to take advantage of those trends around the world. Importantly, we have a disciplined approach to capital allocation and growth and profitability, driving a declining cash usage year-on-year and driving the cash flow positivity by year-end 2028.

With that, we continue to actively evaluate opportunities to strengthen our balance sheet, and with that, maximize shareholder value. That is a bit of an overview. We can double-click now into the business itself. Think of us as solving a problem, as I touched on, in global pharmaceutical manufacturing in the fundamental quality control infrastructure. We are targeting in an area called microbial quality control. This is a process that all pharmaceutical companies have to do. It is regulated by the FDA and all the equivalents globally. It is a high-volume testing process that is fundamental. Its fundamental job effectively is to ensure the finished pharmaceutical product is safe for a patient and it is not contaminated by bacteria or mold or fungi or other organisms. The problem with the legacy method is it has not evolved since it was created about 100 years ago by Louis Pasteur.

It is very much a slow, manual Petri dish incubation type of system. It is creating costs and risks for the industry, and in some cases, can hold up delivery to patients timely. We developed a technology that fully automates and replaces and accelerates that fundamental process and really brings it into the 21st century. This slide shows thematically and more from a strategic level, the problem we are going after. I think we all can agree that technology and advancements have dramatically impacted how we discover drugs and how we screen and perform R&D upstream in the process. Then, of course, downstream, how we manufacture pharmaceuticals and various therapies through the advanced modalities and advanced manufacturing techniques. But fundamentally, the underlying quality control infrastructure has not changed, as I touched on. It is still very manual, slow, and error-prone.

You have this incongruent tension between the balance of the value chain and the fundamental QC process, which is critical to releasing, in many cases, life-saving therapies to patients that are of high quality. The center of this picture, the black and white elements, is this is what we're going after. I'll be quick here. For those of you who have never been inside a microbial quality control lab in a pharmaceutical company, this is what one looks like. Imagine this scaled up times 10 people, in some cases 100 or more, depending on the size of the company, and the number of therapies being in scale, the therapies being manufactured. In any event, what you'll see is a lot of people, papers, pencils, pens, Petri dishes, incubators. The way the process works quickly is these technicians will take these Petri dishes.

There's various forms and flavors, but it's basically a media-type Petri dish, and perform testing, air testing, water testing, personnel, manufacturing, everything gets tested, comes back to a large room that's an incubator. You can imagine the shelving all around it. All these Petri dishes are stacked up. Then, the analyst will come back a week or 2 later and manually count each and every Petri dish by hand. This could be hundreds per day at a site, or it could be thousands of tests per day per site. So very high volume. As you can probably tell, it's a very manual, error-prone approach, usually paper-based. This is the fundamental underpinnings of most quality control operations around the world today for pharmaceutical manufacturing. Again, this is more at the deck plate level. This is the problem that we are addressing.

We're addressing that through the Growth Direct platform. The platform itself consists of the Growth Direct System. As you can see here on the left, it's the only fully automated high throughput system available, and this full automation is extremely important, where it's a walkaway system. I'll walk through the workflow in a minute. The system as well as the proprietary consumables, which is part of the platform. We designed the system and our consumables to automate the vast majority of daily routine use testing. So don't think of the Growth Direct as a niche or exotic test that you do once a month or once a quarter.

This is designed to be an everyday workhorse that's automating the vast majority of the daily routine standard tests every day in a-- My customers have multiple systems lined up, all working through very, very high volume. We also have a full data and software complement, and this interconnects the Growth Direct to the customer's information management systems to seamlessly and securely activate a paperless environment to transfer data to and from the various systems and the Growth Direct and global validation and support services. This is very important for Big Pharma, where you can seamlessly install, validate, and move the system into GMP, as they call it, manufacturing seamlessly, which we do seamlessly and effectively. The system itself delivers a very strong value proposition. The right side of this slide shows you why customers adopt in the first place. The first of which is data integrity.

Again, this is the fundamental element of can we trust these samples. The regulators are enforcing increased data integrity guidelines, and our system allows to be fully compatible with the guidelines. Operational efficiency is an important part of the hard dollar ROI for our customers. Think of this as the system is fully automated, walk away. It is also rapid. Think of a system that is replacing a legacy slow 2-week process with a leaned-out workflow that basically entails taking a sample, putting it on the machine in bulk format, and then walking away, and that is the last time a human being will ever typically see that sample. We are able to deliver an answer in half the time or less, in some cases, a day or 2 versus a week or 2. Customers can find problems faster. They can move to the next processing step faster.

They can ship to market faster. They can turn inventory faster. This just creates a significant manufacturing and quality control environment. Then accuracy and insight. There is certainly an error rate associated with the legacy method, and ours is a computer AI-driven, algorithm-driven system that eliminates human error. This is the platform, and again, the fundamental reason why customers adopt us from a value proposition standpoint. Next slide is coming up, I think. There it is. This slide, I will just go through this quickly. Again, this just reinforces my comment around we automate. Think of the Growth Direct as a high capacity, fully automated, high throughput, walkaway system that automates. It is the workhorse of the lab. It is an absolute workhorse. It is designed to, again, automate all the tests that these labs do day in, day out.