Harvard Apparatus Regenerative Technology : March 19, 2024 - Investor Presentation

Enabling discovery, safety and production of tomorrow's therapeutics

HBIO Investor Overview

Jim Green, Chairman, President & CEO

Jennifer Cote, CFO and Treasurer

March 19, 2024

Forward-Looking Statements and Non-GAAP Financial Information

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend" and similar expressions or statements that do not relate to historical matters. Forward-looking statements include, but are not limited to, information concerning expected future financial and operational performance including revenues, gross margins, earnings, cash and debt position, growth and the introduction of new products, and the strength of the Company's market position and business model. Forward-looking statements are not guarantees of future performance and involve known and unknown uncertainties, risks, assumptions, and contingencies, many of which are outside the Company's control. Risks and other factors that could cause the Company's actual results to differ materially from those described its forward-looking statements include those described in the "Risk Factors" section of the Company's most recently filed Annual Report on Form 10-K as well as in the Company's other filings with the Securities and Exchange Commission. Forward-looking statements are based on the Company's expectations and assumptions as of the date of this document. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect any change in expectations, even as new information becomes available.

Management's Use of Non-GAAP Financial Information

This document includes non-GAAP financial information including one or more of adjusted operating income (loss), adjusted net income (loss), adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings (loss) per share, and foreign exchange adjusted revenue. We believe that this non-GAAP financial information provides investors with an enhanced understanding of the underlying operations of the business. For the periods presented, these non-GAAP financial measures have excluded certain expenses and income resulting from items that we do not believe are representative of the underlying operations of the business. Items excluded include stock-based compensation, amortization of intangibles related to acquisitions, litigation settlement, restructuring and other costs, gain/loss on equity securities, income taxes and the tax impact of the reconciling items. Management believes that this non-GAAP financial information is important in comparing current results with prior period results and is useful to investors and financial analysts in assessing the Company's operating performance. Non-GAAP historical financial statement information included herein is accompanied by a reconciliation to the nearest corresponding GAAP measure which is included as exhibits below.

With respect to forward-looking measures, we provide an outlook for adjusted EBITDA margin, and net leverage ratio. Many of the items that we exclude from these forward-looking measure calculations are less capable of being controlled or reliably predicted by management. These items could cause the forward-looking measures presented in our outlook statements to vary materially from our reported net income and other GAAP results.

The non-GAAP financial information provided in this presentation should be considered in addition to, not as a substitute for, the financial information provided and presented in accordance with GAAP and may be different than other companies' non-GAAP financial information.

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Most trusted manufacturer / provider of advanced life science tools to the leading academic research institutions, contract research organizations, pharmaceutical and bio-techs in the discovery, production, and safety & regulatory testing of tomorrow's life-saving therapies

CELLULAR & MOLECULAR

Leading provider of the latest

technologies and tools necessary

for research, discovery and

creation of tomorrow's

breakthrough drugs, vaccines

and therapies.

PRE-CLINICAL SYSTEMS

Market leading provider of the recognized gold standard for data acquisition, processing, and regulatory report generation for safety pharmacology and toxicology testing

COMPANY PROFILE

• Global sales footprint, 3 core manufacturing facilities
• Approx. 420 employees, 33 PhD, 54 Masters, 77 Bachelors
• FY'23 Revenue: $112.3M
• FY'23 Adj. EBITDA: $14.6M (13% of rev), up 34% vs PY*
• 35%+ recurring revenues
• Founded 1901, Public Listing Dec. 2000 "NASDAQ: HBIO"
• Headquarters: Greater Boston, MA

	BALANCED PORTFOLIO
Biotech/			APAC
		25%
Pharma
17%	2023		2023
	REVENUE BY	Academic /
	REVENUE BY	Americas
	CUSTOMER	Research	GEOGRAPHY
	TYPE	45%
CRO /	51%

Government	EMEA
30%
32%
Revenues allocations are approximate

* Non-GAAP measure; reconciliation to GAAP financial measures are available in Appendix.

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Harvard Bioscience Highlights

Essential, secular growth markets, high	Growing global marquee
barriers, few competitors	customer base

Global sales, application science and	Highly effective sales channel
supported by elite
service structure
applications scientists

Technology leadership competitive advantage	High barrier
with high barrier innovative technologies	innovative technologies

Robust pipeline of next-gen solutions	Strong discipline,
lean operating platform

DIVERSIFIED CUSTOMER /

REVENUE MODEL

Systems & Software

Consumables

Services

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Sales and Earnings Trends

Expect weakness in the H1 of 2024 vs a strong 2023 comparison; Strong H2 2024 growth vs both H1 2024 and H2 2023

REVENUES

Portfolio Optimization	Flat to Modest
$119M	****
	Revenue Growth**
$113M		$112M

H2H2***

H1H1***

ADJUSTED EBITDA & EBITDA MARGINS*

Adj EBITDA

Margins to the

Mid-Teens**

$18M		$15M
15%	$11M	13%
	10%

• Non-GAAPmeasure; reconciliations to GAAP financial measures are available in Appendix.
• FY24 Guidance as discussed in Q4 earnings release on March 7, 2024. This presentation is not a reaffirmation of guidance.
• 2024 H1/H2 is approximate for illustrative purposes.
• 2022 Revenue includes $5.5 million in sales of discontinued products; 2023 Revenue includes estimated $0.5 million in sales of discontinued products; net difference is $5.0 million

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Today's Global Footprint

PRE-
CLINICAL
SYSTEMS		CELLULAR &
Minneapolis
	MOLECULAR
		AND HBIO
	HEADQUARTERS
		Boston

Core Operating Site

Sales Office / Small Centers of Excellence

*Headcount is approximate

CELLULAR &

MOLECULAR

Stuttgart, Germany

	12-31-18	12-31-23
Employees*	547	420
Sites	14	8

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Essential Technologies Serving Well-funded,High-growth Secular Markets Demographic Tailwinds

DRIVERS

Rising incidence of disease - cardiac, cancer, respiratory, diabetes, obesity, Alzheimer's,

neurological, infectious

Increased funding for research and development of advanced therapeutics

Increased demand for research tools, devices and systems that improve efficiency & productivity and enable therapeutics discovery and safety & regulatory through bio-production

END MARKET	PHARMACEUTICAL1	BIOTECH2	CONTRACT RESEARCH	ACADEMIC RESEARCH4
ORGANIZATIONS3
SEGMENTS
Estimated	Global	Global	Global	US Federal
size &	$1.6T 2022	$372B 2021	$61B 2021	$179B 2021
projected	7.7% 2022-2026	15.5% 2022-2030	10.9% 2021-2030	9.3% 2016-2021
CAGR
			Pre-	NIH Grants
Estimated R&D	R&D	R&D	clinical
expenditure within	$222B	$60B	market	$30.2B
HBIO markets	(2021)*	(2021)*	$5B	(2021)*
			(2021)5

1. https://www.researchandmarkets.com/reports/5553406/pharmaceuticals-global-market-report-2022-by
2. https://www.acumenresearchandconsulting.com/biotechnology-market
3. https://www.emergenresearch.com/request-sample/1221
4. https://ncses.nsf.gov/pubs/nsf22323
5. https://www.grandviewresearch.com/industry-analysis/preclinical-cro-market

*Internal estimates calculated based on publicly-available data.	7

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Blue Chip Customer Base

ACADEMIC

RESEARCH

• Scientific Research labs primarily government & grant funded
• Early discovery of new novel drugs and compounds for therapies and vaccines
• Advanced cellular testing & gene editing

CONTRACT

RESEARCH

ORGANIZATIONS

• Pre-clinicalstudies to determine safety and efficacy of new pharmaceuticals
• Pharmaceutical companies are outsourcing significant pre-clinical activities to CROs

BIOTECH,

PHARMACEUTICAL

• Perform early discovery and then transition from discovery through pre- clinical regulatory and on to production
• Leverage discoveries from academics & bio-techs
• Bridge to bio-production

Value Proposition
Breakthrough technologies and applications,	Reduce test cycle-time, increase volume and	Reduce development cycle time means more
increase innovative publications	study types, drives CROs revenue growth	compounds drives BioPharma revenue growth
Subset of blue-chip recurring customers

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Extend Technology Leadership in Academic Research & Discovery

Research & Discovery

Pre-Clinical Safety & Toxicology

Bio-Production

MOLECULES	CELLS	ORGANOIDS/	PRECLINICAL	CLINICAL
		ORGANS

Adapt Technologies to High Volume CRO & Bioproduction Applications

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Strategic Growth Drivers

ACCELERATING REVENUE GROWTH

STRENGTHEN THE BASE

• Fortify leadership position and expand recurring revenue in therapy research and pre-clinical testing
• Pre-clinicalTelemetry and GLP

compliant Ponemah data management software for data reporting and analysis

• Electroporation/Transfection/ Amino Acid Analysis
• Micro-ElectrodeArrays (MEAs) cellular electrophysiology

EXPAND HIGH VOLUME APPS

• Offerings for higher volume industrial customers including CROs, Biotech, Pharma and Government Labs
• Reduce cost and improve cycle time/throughput for therapy testing and development
• Expanded Ponemah functionality combined with

new VivaMARS system opens door to new pre-clinical opportunities

EXPAND TO BIO-PRODUCTION

• Offerings for Biotech and Pharma customers engaged in therapy development and production
• Bridge from research to production in applications that scale with production volume
• Leverage technology leadership in Electroporation/Transfection

INNOVATE CELLULAR

• Offerings for Academic, Biotech, and Pharma customers engaged in therapy discovery, development and testing.
• New opportunities for streamlined in vitro testing from cell lines to organoids early in the therapy development cycle.
• Leverage leadership in Micro-Electrode Arrays (MEAs) & electrophysiology

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