May 2012

WE TURN DNA INTO PRODUCTS

DYADIC INTERNATIONAL, INC.

(Symbol: DYAI)

2

Safe harbor statement

Certain statements contained in this presentation are forward-looking

statements. These forward-looking statements involve risks and uncertainties

that could cause Dyadic’s actual results, performance or achievements to be

materially different from any future results, performance or achievements

expressed or implied by such forward-looking statements. Except as required

by law, Dyadic expressly disclaims any intent or obligation to update any

forward-looking statements.

Dyadic overview

3

Leading developer and supplier of enzymes

and other protein-based products

End markets of biofuels and bio-based

chemicals, industrial enzymes and

biopharmaceuticals

Revenue through product sales, funded

research and technology licensing

Licensees and partners include BASF,

Abengoa and Sanofi Pasteur

Seeking capital raise of $5 to $10 million

in Q1 2015 to fund growth and general

business operations

Class-leading technology, used to turn genes

into protein-based products at large volumes

and low cost

Two decades of development with nearly $100

million invested in Dyadic

“High Cellulase” (HC) platform used in textile,

pulp & paper and bioenergy markets

commercialized in 1996

“White Strain” (LC) platform used to develop

enzymes for food, animal nutrition, textile,

pulp & paper and biopharmaceutical

applications commercialized in 2011

Few companies that possess comparable

technology include DuPont, Novozymes,

DSM, Abengoa1 and BASF1

1 Technology access through Dyadic license

Business overview C1 technology overview

Global footprint

4

Jupiter, FL

Warehouse (3rd party)

Corporate headquarters

Toll manufacturing (3rd party)

R&D centers

Wageningen, NL

Tilburg, NL

Hong Kong Charlotte, NC

Sales and distribution

Tlalnepantla, MX

Minneapolis,

MN

Berlin, DE

Business model

5

23%

35%

51% 47%

0%

20%

40%

60%

80%

100%

0

2

4

6

8

10

12

14

16

18

20

2010 2011 2012 2013

Licensing Fees R&D

Enzyme Sales Gross Margin

Historical revenue ($ millions) Proprietary enzyme sales

C1 licensing and partnerships

Currently sell niche products into food,

animal feed, pulp & paper, textile and

other end markets

Several potential new products in

pipeline

Profitable, established business with

recurring revenue and long-term

customers

Currently 7 blue chip strategic partners

and licensees

Projects in pharmaceutical, feed, food

and biofuels

8.4

10.3

15.6

17.1

Funded research

Funded R&D from strategic partners

and government projects

17%

35%

0%

20%

40%

60%

80%

100%

0

3

6

9

12

15

9mo 2013 9mo 2014

Product R&D

Milestones Payments Gross Margin

9 month 2014 highlights

6

Revenue excluding license fees increased

23% for the 9mo 2014 vs 9mo 2013

Enzyme revenue increased 8% to $7.6

million

R&D revenue increased 60% to $1.5 million

Received milestones from BASF and

Abengoa

Gross profit increased 155% to $3.5 million

for the 9mo 2014 vs 9mo 2013 excluding

licensing fee

Gross margins for the 9mo 2014 increased

to 35% from 17% in the 9mo 2013

Enzyme gross margins up 13% percentage

points

Scalability of R&D lab reducing costs per

FTE and driving higher margins

9-mo 2014 vs 9-mo 2013 ex license

fees ($ millions)

8.0

9.8

Memo: Certain figures shown are non-GAAP

Business by end market

7

Cellulosic Sugars Industrial Enzymes Biopharmacuticals

End

mark

ets

Mark

et

siz

e

Part

ners

&

licensees

Biofuels

Bio-based chemicals Animal feed

Food & Beverage

Starch & Alcohol

Pulp & Paper

Textiles

Vaccines

Antibodies (e.g. mAb)

Therapeutic proteins

Biocatalysts for API

$5+ billion today

$5+ billion new

enzymes in

next decade

$90+ billion today

Major

animal

health &

nutrition

company

Market

leading

food and

enzyme

company

Leading

animal

health &

nutrition

company

Leading

pharmaceutical

company

Pro

ducts

Alternafuel CMAX5

On-site licensing model

Enzyme sales to 35+

countries Preclinical drug

development

(ABGOY)

(BASFY)

(SNY)

Abengoa case study

8

November 2006 R&D Agreement

Securities Purchase

(6% ownership of Dyadic)

February 2009 License Agreement

April 2012 Expanded License

Agreement

October 2014 Opening of 25 million

gallon Hugoton facility

using C1 technology

Relationship with Dyadic

One of the largest ethanol producers and alternative energy companies in the world

Agreement overview

Non-exclusive

Fields: Biofuels and bio-based chemicals

Territory: Worldwide

Rights: Abengoa has the right to produce,

improve, use, sell C1 enzymes

Terms: License fee, funded research,

milestones and per gallon royalties

Abengoa’s 25 million gallon plant in Hugoton, Kansas came online in October 2014 and is using Dyadic C1 enzyme technology

BASF case study

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One of the largest chemical companies in the world

Industrial enzymes Target

Product and platform development Current Phase

$6 million up front license

Funded research and development

R&D and commercialization milestone payments

Royalties based on revenue of products sold

Terms

Ongoing funded research continues at Dyadic

Netherlands

Scientific results to-date continue to be very exciting

Timeline and

next steps

10

Sanofi Pasteur case study

Vaccine using C1 expression system Target

Preclinical testing Current Phase

Expressed, purified and delivered

protein to Sanofi

Modifications to the protein are ongoing Status

Project began in 2011

Project funding recently extended

Additional preclinical trials expected to

follow

Timeline and

next steps

One of the largest vaccine companies in the world

Dyadic 3-year outlook

11

• BASF license

agreement

• Initiation of New Product

Development Program

• Abengoa plant online

• CIMV biofuel agreement

• C1 White Strain

achieves 50g/L of target

enzyme

BASF

• BASF, Sanofi and

animal feed R&D funding

extension

• Expected court date for

lawsuit

• New licensees, licensing

new products in

development

• Targeted cash

flow break even

• CIMV demo plan

online

• New licensees,

licensing new

products in

development

• Initial potential

launch of new

products in

development

2013 2014 2016 2017 2015

New product

development &

Abengoa plant

Key project

extensions & Court

date

Cash flow

break even &

CIMV demo

plant online

New

products to

market

License agreement

Hugoton plant opening

Milestone payment

Commercial agreement

Project extension

Demo plant opening

R&D and potential milestones

Hugoton plant royalties

Hugoton plant royalties Hugoton plant royalties

2016-2017 and later potential for:

Abengoa and CIMV commercial plants

New products to market

New partnerships and licensees

Additional milestones and royalties from

current licensees Pote

ntial m

ilesto

nes

Active new products being developed in many industries

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Type of project # o

f

pro

jec

ts

Bio

fue

ls &

bio

-ba

se

d

ch

em

icals

An

ima

l

He

alt

h

Sta

rch

&

alc

oh

ol

Fo

od

&

be

ve

rag

e

Pu

lp &

pa

pe

r

Ph

arm

a-

ce

uti

ca

ls

Internal new product

development 6

Ongoing EU funded

projects 9

Applied for EU funded

projects 4

3rd party funded projects1 3

1 BASF end market undisclosed

We have identified six key new products in development

Commercialization in 2017

Potential nearer-term revenue from licensing of these new products

Based on our past success in obtaining EU and other government funding we have applied

for four new European Union subsidized projects for 2015, 2 have already been approved

We believe the tangible progress in C1 can be applied to many different end markets

13

Potential upside from lawsuit of former legal counsel

We are currently engaged in litigation with three former professional service

providers

In 2009, we sued our former professional service providers in connection

with events relating to alleged improprieties at our former Asian subsidiaries,

which we abandoned in May 2007

Claimed damages in excess of $200 million

Defendants include Greenberg Traurig, Bilzin Sumberg and Moscowitz

& Moscowitz

Jenkens & Gilchrist, one of the defendants, has already settled

Court ordered mediation occurred on November 10 & 11, 2014

Expected trial date in Q2 or Q3 of 2015

THE C1 EXPRESSION

SYSTEM

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Expression systems turn DNA into products

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Enzymes and other

proteins control

particular chemical

reactions

Dyadic Inside® Protein products

C1 Expression

System turns genes

into products

A template for

enzymes and other

proteins

Genes

C1 expression system advantages

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Track record of producing at industrial scale

Identified over 500 potentially useful enzymes in genome, of which over

100 already been expressed

Many enzymes active in broad pH and temperature range

Excellent safety record and has Generally Recognized as Safe (GRAS)

status acknowledged by the FDA

Platform

technology

Extensive molecular toolbox with genome sequenced and annotated

Programmable to produce tailored “pure” enzymes and mixtures

Effective homologous and heterologous gene expression

Serves as both a research and production host

Cost

effective

product

development

Freedom to

operate

Dyadic is the sole owner of the C1 expression system and has broad

patent claims

Two commercial platforms allow for broad applications

17

HC White Strains

HC vs. White Strain

End

Market 1

Enzyme 2

(thermostable)

(12 g/L)

Enzyme 3

(thermostable)

(15 g/L)

End

Market 2

White Strain (LC) product development

Enzyme 1

(20 g/L)

The White Strain expresses dedicated enzyme mixture

Composition can be easily adapted for various applications

New HC strains can be constructed from the White Strain

Effectively degrade or

modify a wide range of

biomass into sugars

HC Strain (1996) White Strain (2011)

Textiles, pulp & paper, biofuels Animal nutrition, dairy, baking, brewing, pharmaceuticals

Enzyme productivity improvements by generation

Gen 3 commercial product:

12x cost reduction

Gen 2 commercial product:

4x cost reduction

Project resources included approximately 1 scientist over 2 years

C1-cellulase accepted by FDA on

September 29, 2009

GRAS Notification letter is a public

statement by FDA acknowledging Dyadic’s

safety determination for the intended uses

of C1

GRAS Notification letters are broadly

recognized in the food and consumer

products industries as the safety standard

C1 strain non-toxic

Pathogenicity and toxigenicity data:

strain is non-infectious and no

known toxins are produced

Peer-reviewed scientific literature

have confirmed — no known

pathogencity

No mycotoxins found

C1 enzyme testing

In vivo feeding trails:

14 day dose study in rats

13 week subchronic rat study

Genotoxicity testing:

AMES bacterial mutagenesis

Chromosomal aberration test

Genetic mutation test

No adverse effects observed

No foreign DNA

Safety confirmed

C1 has an excellent safety profile

Generally Recognized as Safe (GRAS) status

acknowledged by the FDA

19

CELLULOSIC BIOFUELS AND

BIO-BASED CHEMICALS

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C1 is one of only three leading enzymatic platforms

21

C1 biofuel enzymes have several key advantages

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Industry-leading enzyme performance at breaking down biomass

Robust enzymes that work at high temperature and pH

Effective

performance

Proven at 500,000 liter scale production

Morphology and other characteristics allows for low viscosity Scalable

production

On-site

production

Producing enzymes on site at biorefineries eliminates downstream

processing, stabilization ingredients, warehousing, shipping and

handling (representing 30-50% of total enzyme cost)

On-site licensing business model unique to Dyadic among Tier-1

players

Can be grown on low cost media with low glucose inhibition

Organism is rich in enzyme encoding genes allowing for low cost

product development and customization

Low cost

platform

C1 has twice the enzyme-encoding genes than competing

systems for biofuels and bio-based chemicals

23

0

50

100

150

200

C1 Trichoderma

186

84

Large variety of lignocellulolytic enzymes enables development of efficient

dedicated enzyme mixtures (produced by a single engineered C1-strain)

26

3

Example: C1 has 26 GH61 genes vs. 3 for

Trichoderma

Several countries, such as Japan, consider

self cloned strains as non-GMO

BIOPHARMACEUTICALS

24

25

Influenza vaccine

(human)

Viral influenza

vaccine

(veterinary)

Antibodies

(diagnostic and

therapeutic)

C1 has many high-potential opportunities in biologics

Prospective game-changing platform for biologics market

Biocatalysts for

API production

Therapeutic

proteins

Antiviral (HIV and

other)

Extremely high yield, industrial scale production in world’s largest

fermenters

Ability to more quickly modify cell lines to create and modify biologics

Near human glycosylation

Track record of expressing therapeutic proteins in C1

Potential to fight epidemics at global scale

Fast response to an emerging new strains of infectious disease at global scale

Origin of recent

diverse or serious

outbreaks of

emerging

infectious diseases

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FINANCIAL OVERVIEW

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28

Income statement

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Balance sheet

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Cap table as of September 30, 2014