Slide 1: Evotec AG, Full-year 2018 results, 28 March 2019
Evotec AG, Full-year 2018 results, 28 March 2019
Slide 2: Forward-looking statement
Forward-looking statement Information set forth in this presentation contains forward-looking statements, which involve a number of risks and uncertainties. The forward-looking statements contained herein represent the judgement of Evotec as of the date of this presentation. Such forward-looking sta
Slide 3: Welcome to Evotec SE
Welcome to Evotec SE1) The Management Team Werner Lanthaler Enno Spillner Craig Johnstone Cord Dohrmann CEO2) CFO2) COO2) CSO2) PAGE 2 1) Conversion of Evotec AG to Evotec SE expected to become effective at the end of March 2019 2) On the call for FY 2018 results
Slide 4: Agenda
Agenda Highlights & strategy review Financial performance 2018 Excellence in partnered drug discovery and development Guidance 2019 and next steps PAGE 3
Slide 5: Many steps in the right direction
Many steps in the right direction Highlights & lowlights 2018 Highlights Multiple new and extended drug discovery and development alliances INDiGO roll-out and integration of high-end CMC offering Leading application of Artificial Intelligence (“AI”) in drug discovery projects Continued stro
Slide 6: All moves follow consistent long-term strategy
All moves follow consistent long-term strategy “Action Plan 2022 – Leading External Innovation” 2022 Today 2018 2012 2009 PAGE 5
Slide 7: Strategy on track despite loss of subsidies in 2020
Strategy on track despite loss of subsidies in 2020 “Action Plan 2022 – Leading External Innovation” – In numbers1) Strong revenue growth (in € m) Adjusted Group EBITDA2) (in € m) 375.4 ~ 400 ~100 92.0 263.8 57.2 2017 2018 2019(e) 2020(e) 2021(e) 2022(e) 2017 2018 2019(e) 2020(e) 2021(e) 2022(e) Hig
Slide 8: Integration of top talent is essential for our growth
Integration of top talent is essential for our growth Human Resources Total operations personnel: Chemists Biologists ~2,200 ~1,900 ~870 ~ 1,000 ~600 2014 2015 2016 2017 2018 2019(e) Scientific background: Approx. 2/3 Biologists, 1/3 Chemists > 70% of employees with at least one academic qualifi
Slide 9: Agenda
Agenda Highlights & strategy review Financial performance 2018 Excellence in partnered drug discovery and development Guidance 2019 and next steps PAGE 8
Slide 10: Excellence in science and execution drives results
Excellence in science and execution drives results Results and guidance history 2018 in € m Final results Guidance Guidance Initial guidance 2018 December 2018 August 2018 March 2018 Group € 375.4 m More than More than More than 30% growth revenues (+42%) 30% growth 30% growth (2017: € 263.8 m)1) R&
Slide 11: New business mix very well integrated in operations
New business mix very well integrated in operations Key financials 2018: Condensed income statement (IFRS) in € m1) 2018 2017 Actual Actual2) % vs. 2017 Revenue growth in base business, strong milestone payments and positive first full- Revenues from contracts with year contribution from Aptuit (€
Slide 12: Long-term organic growth reflected in guidance
Long-term organic growth reflected in guidance Financial history 2015-2019 (e) – Selected performance indicators Approx. 10% Group revenue growth1) € 30-40 m unpartnered R&D expenses2) in 2019 (in € m) (in € m) 364.0 263.8 22.9 18.3 18.1 17.6 164.5 127.7 2015 2016 2017 2018 2019(e) 2015 2016 2017 20
Slide 13: Both segments right on strategy
Both segments right on strategy Condensed income statement based on segments for FY 2018 in € m1) Inter- EVT EVT segment Not Evotec EVT Execute revenues Execute Innovate elimination allocated2) Group up 39% due to strong base business and Aptuit Revenues 347.2 68.9 52.1 11.4 375.4 EVT Innovate r
Slide 14: Strong Q4 confirms upward trend
Strong Q4 confirms upward trend Q4 2018 results in € m Q4 2018 Q4 20171) % vs. Higher base revenues Actual Actual 2017 Gross margin improve- Revenues 105.4 92.2 +14% ment despite low level of milestones Gross margin 26.9% 24.0% +2.9%-pts Partnered R&D expenses R&D expenses (14.7) (5.1) +188%
Slide 15: Agenda
Agenda Highlights & strategy review Financial performance 2018 Excellence in partnered drug discovery and development Guidance 2019 and next steps PAGE 14
Slide 16: Building a co-owned portfolio in partnerships
Building a co-owned portfolio in partnerships Unique strategy and business approach Own R&D Co-Owned Pipeline Action Plan 2022 Fee for Service PAGE 15
Slide 17: Highest quality science – Thinking, computational tools, AI
Human knowledge and technologies combined with operational excellence Higher degree of Human creativity, insight, intuition, inspiration innovation for more precise drugs More cost-efficient Extensive knowledge, experience, expertise, know-how drug candidates at faster development times Multi-di
Slide 18: Integrated services are key to partnership success
Integrated services are key to partnership success EVT Execute – Major achievements 2018 Multiple new drug discovery alliances, e.g. Novo Nordisk, Ferring, LEO Pharma Extensions and growth of existing, long-term partnerships > 90% repeat business Aptuit integration completed; Launch of INDiG
Slide 19: Blended offering with Aptuit starts to deliver
Blended offering with Aptuit starts to deliver World-class drug discovery, INDiGO and high-end CMC Target Hit- Lead Pre- Academia ID/Vali- Identi- Optimi- Phase I Phase II Phase III Approval Market clinical dation fication sation PDC Drug Discovery INDiGO High-end CMC Integrated solutions Seamless t
Slide 20: INDiGO roll-out just at the beginning
INDiGO roll-out just at the beginning INDiGO – Initial achievements Launch of INDiGO services in 2018 Reducing time from nomination to regulatory submission to less than 52 weeks1) More than 15 projects ongoing Many new contracts signed in 2018 and increased demand for 2019 Robust pipeline
Slide 21: Development offering for higher quality and speed
Development offering for higher quality and speed Verona and Abingdon – Fully integrated in value chain Consultative approach and cross-selling increased number of integrated projects in development 2018: 24 active iCMC projects, > 100 projects in total 2019: > 40 active iCMC projects in progr
Slide 22: Portfolio of highest quality partners is growing
Portfolio of highest quality partners is growing EVT Execute alliances – Examples Partnership Partnership Partnership Partnership Partnership Partnership Partnership focused on focused covering broad focused on focused on focused focused on Huntington on various range of DMPK services infectious on
Slide 23: Strong start
Strong start Latest news in Q1 and goals 2019 Important initial achievements Very good start to performance in first quarter Strong performance of Aptuit following completion of operational integration Signing of new and extended drug discovery and development agreements Good progress in cur
Slide 24: Important progress in co-owned partnered pipeline
Important progress in co-owned partnered pipeline Partnership portfolio – Highlights in 2018 marked in green Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia BAY-1817080 Chronic cough 2nd Ph. II ND1) Chronic cough Ph. II start SGM-1019 Inflam
Slide 25: Superior platforms deliver first-in-class targets
Superior platforms deliver first-in-class targets EVT Innovate – Major achievements 2018 Multiple milestone achievements in iPSC-based alliances (e.g. Sanofi, Celgene) Strong progress and important milestones in kidney alliance with Bayer New alliances with Celgene in oncology and targeted pro
Slide 26: Co-owned portfolio with great partners is growing
Co-owned portfolio with great partners is growing EVT Innovate alliances – Examples Oncology I Chronic kidney Oncology Fibrosis Neurodegeneration Picornavirus disease (“CKD”) Multi-target alliance Small molecule- Novel mechanisms iPSC-based drug Respiratory Diabetic immunotherapies to in multi-organ
Slide 27: Re-defining DD paradigm from patient to patient
Re-defining DD paradigm from patient to patient Game-changing platforms for better translation Translational Holistic Superior Models Profiles Knowledge iPSC PanOmics AI & ML platform platform platform1) PAGE 26 1) Artificial Intelligence & Machine Learning
Slide 28: World-leading initiative in nephrology
World-leading initiative in nephrology NURTuRE – Kidney disease processes, platforms and networks Biomarker & stratification Disease-affected cell type Patient data Human kidney- and samples on-a-chip Disease- specific Patient drugs Clinical Centers “The anonymised data contained within the NURTuRE
Slide 29: Our patient-derived assays as new gold standard
Our patient-derived assays as new gold standard World-leading iPSC processes and network “IPS cells can become a powerful tool to develop new drugs to cure intractable diseases because they can be made from patients’ somatic cells.” Shinya Yamanaka, Nobel prize laureate Disease-specific drugs Screen
Slide 30: Just the beginning of iPSC-based drug discovery
… just the beginning of iPSC-based drug discovery Patient-derived disease models open doors to new indications Partnered programmes Under development / Unpartnered protocols Microglia Neurodevelopmental diseases Motor neurons & Dopaminergic neurons, Cortical neurons – CELGENE Retina pigment epithe
Slide 31: Creating important footprint in infectious disease
Creating important footprint in infectious disease Focus areas for long-term value creation HBV & Viral Infections Novel Anti- high risk/reward value infectives generation initiatives best-in-class platform with public Global health leverage execution platform for funded partnerships Know-how and te
Slide 32: Early-stage commitment for long-term leadership
Early-stage commitment for long-term leadership BRIDGEs and investments over the “Valley of death“ Basic Applied Technology Development Product Commercialisation Market Entry & Research Research and Demonstration and Market Development Market Volume Public Market Funding Level Pension Plan Project F
Slide 33: "Optionality portfolio" with strong progress
“Optionality portfolio” with strong progress BRIDGEs & Equity participations – Examples Equity participation Equity participation Equity participation Equity participation Equity participation Consortium membership Artificial Intelligence Facioscapulohumeral Metabolic disorders Fibrosis partnership
Slide 34: ...just the beginning
…just the beginning Latest news in Q1 and goals 2019 Important initial achievements Initiation of Phase II clinical study in NASH by Second Genome 2nd Start of Phase II clinical study in chronic cough by Bayer Initiation of Phase I clinical study in pain and multiple smaller milestones (e.g. f
Slide 35: Agenda
Agenda Highlights & strategy review Financial performance 2018 Excellence in partnered drug discovery and development Guidance 2019 and next steps PAGE 34
Slide 36: Strong year ahead
Strong year ahead Guidance 2019 Double- Approx. 10% growth in Group revenues from contracts with customers 1 digit top- without revenues from recharges1) line growth Profitable Adjusted Group EBITDA2) expected to improve by approx. 10% 2 and growing compared to € 92.0 m in 20183) Focused 3 unpar
Slide 37: Important next dates
Important next dates Financial calendar 2019 Annual Report 2018 28 March 2019 Quarterly Statement Q1 2019 14 May 2019 Annual General Meeting 2019 19 June 2019 Half-year 2019 Interim Report 14 August 2019 Quarterly Statement 9M 2019 12 November 2019 PAGE 36
Slide 38: HRESEARCHNEVE
HRESEARCHNEVE ASTOPS
Slide 39: Additional Financial information
Additional Financial information PAGE 38
Slide 40: New revenue mix and amortisation becomes visible
New revenue mix and amortisation becomes visible Revenues & Gross margin Improved base business, development Margin change due to amortisation and contribution, milestones and Evotec ID (Lyon) different revenue mix1) in € m in % +42% 35.6 375.4 31.0 29.8 29.5 27.3 22.9 23.9 263.8 27.8 164.5 345.9 18
Slide 41: Overall growth and acquisitions reflected
Overall growth and acquisitions reflected R&D and SG&A expenses overview in € m New efforts in infectious diseases, iPSC SG&A increase due to overall growth, discovery and new platforms are key R&D acquisitions and costs related to Aptuit initiatives and Evotec ID (Lyon) 57.0 35.6 4.2 42.4 0.6 27.0
Slide 42: Operating cash flow allowing reduction of bridge loan
Operating cash flow allowing reduction of bridge loan Liquidity bridge 2018 vs 20171) in € m (27.9) 18.1 (10.8) (78.2) 156.2 2.7 (1.9) 149.4 91.2 31 Dec 2017 Operating Capex excl. Cash Equity Bank loans F/X difference Other 31 Dec 2018 cash flow finance acquired ID Investments leases Lyon PAGE 41 1)
Slide 43: Even stronger balance sheet with 55% equity ratio
Even stronger balance sheet with 55% equity ratio Balance sheet overview in € m Asset base increased Strong equity ratio at 55.0%, Bank loans significantly reduced 771.9 771.9 Cash and marketable 666.5 Loans and 666.5 114.5 149.4 securities finance leases 91.2 Other current 189.9 139.3 188.2 Short-t
Slide 44: Your contact: Dr Werner Lanthaler
Your contact: Dr Werner Lanthaler Chief Executive Officer +49.(0).40.560 81-242 +49.(0).40.560 81-333 Fax werner.lanthaler@evotec.com