Slide 1: First nine months 2018 – Delivering
First nine months 2018 – Delivering Evotec AG, Quarterly Statement 9M 2018, 13 November 2018
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: Thank you Mario! Your Management Team
Thank you Mario! Your Management Team Werner Lanthaler Enno Spillner Mario Polywka Cord Dohrmann CEO1) CFO1) COO1), 2) CSO1) PAGE 2 1) On the call for the Quarterly Statement 9M 2018 2) Retiring by the end of 2018, which marks end of contract period. Dr Polywka will remain on several Boards and in c
Slide 4: Meet Craig! Dr Craig Johnstone, COO
Meet Craig! Dr Craig Johnstone CChem FRSC, COO1) – Career summary to date Drug discovery and development leader and scientist Direct contributions to > 20 PDCs > 20 years in Pharma and biotech > 6 years with Evotec Currently Site Head at Evotec (France) SAS in Toulouse and Global Head Inte
Slide 5: Agenda
Agenda Highlights 9M EVT Execute & EVT Innovate Financial performance and outlook PAGE 4
Slide 6: Scientific excellence meets operational excellence
Scientific excellence meets operational excellence First nine months 2018 – State of play EVT Execute EVT Innovate Corporate Strong performance across Milestones in iPSC Aptuit integration on track all business lines alliances and further Action Plan 2022 Strong progress within expansion o
Slide 7: Strong performance with new business mix
Strong performance with new business mix Financials 9M 2018 & FY 2018 Guidance Group revenues up 57% to € 270.0 m Guidance 2018 confirmed, (9M 2017: € 171.5 m1)) strong initial outlook into 2019 Adjusted Group EBITDA2) up 77% to > 30% Group revenue growth € 68.7 m (9M 2017: € 38.9 m1)) (2017:
Slide 8: ONE fully integrated platform
ONE fully integrated platform Unique business model PAGE 7
Slide 9: Agenda
Agenda Highlights 9M EVT Execute & EVT Innovate Financial performance and outlook PAGE 8
Slide 10: Continued strong growth
Continued strong growth EVT Execute – Key performance indicators 9M 2018 Revenues1) Adjusted EBITDA4) Strong upswing in revenues (in € m) (in € m) due to growth in the base Intersegment business and Aptuit revenues +53% 254.3 +50% 62.1 contribution 35.6 Increase in adjusted EBITDA follows revenu
Slide 11: Strong and well-balanced customer mix
Strong and well-balanced customer mix EVT Execute – Selected KPIs 9M 2018 Revenues by customer Customer type ytd1) Revenues by region ytd1) segment ytd1) (in %) (in %) (in %) 100% 100% 100% Mid-sized RoW 16% 3% Pharma Remaining 39% Foun- 7% dations USA 42% Biotech 38% Top 11-30 18% customers Top 10
Slide 12: The leading "one-stop-shop" for external innovation
The leading “one-stop-shop” for external innovation Evotec’s integrated offering and core competences along the value chain Pre- Hit Lead Target ID/ clinical identi- optimi- IND Phase I Phase II Phase III Approval Market validation Tox fication sation testing Evotec offers end-to-end platform soluti
Slide 13: Delivering excellence to our > 200 partners
Delivering excellence to our > 200 partners EVT Execute – Major achievements 9M 2018 Strong performance across all business and service lines New contracts and increased demand for INDiGO solutions and development services (e.g. Ankar, Astex, Yumanity) Signing of multiple new and extended drug
Slide 14: INDiGO meets demand for higher quality and speed
INDiGO meets demand for higher quality and speed Initial achievements of Aptuit integration – Example Roll-out of INDiGO Reducing time from nomination to regulatory submission to less than 52 weeks1) Launch of INDiGO services in Q1 2018; new contracts signed in 2018 and increased demand for INDi
Slide 15: Strong outlook for rest of year and deep into 2019
Strong outlook for rest of year and deep into 2019 EVT Execute – Expected key milestones 2018 New long-term alliances integrating the offering of Aptuit, strategic launch of INDiGO New performance-based integrated technology/disease alliances Expansion of foundations and biotech network in USA
Slide 16: Milestones, new partnerships and accelerated R&D
Milestones, new partnerships and accelerated R&D EVT Innovate – Key performance indicators 9M 2018 Revenues Adjusted EBITDA1) R&D expenses (in € m) (in € m) (in € m) +55% 51.3 33.2 +58% 24.1 17.9 16.3 15.3 6.6 (2.5) (10.7) 9M 20162) 9M 20173) 9M 2018 9M 20162) 9M 20173) 9M 2018 9M 20162) 9M 20173) 9
Slide 17: EVT Innovate ventures gaining momentum
EVT Innovate ventures gaining momentum EVT Innovate – Major achievements 9M 2018 High-value milestones in iPSC alliances Continued expansion of iPSC platform New partnerships with Celgene in oncology and targeted protein degradation New pipeline-building innovation efforts in infectious dise
Slide 18: Strong progress in building co-owned pipeline
Strong progress in building co-owned pipeline Partnership portfolio of approx. 100 co-owned, fully invested projects Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia BAY-1817080 Chronic cough Phase II start EVT401 Immunology & Inflammation Cl
Slide 19: New strategic partnerships
New strategic partnerships Celgene & Evotec – Overview of new alliances Strategic oncology partnership Targeted protein degradation partnership (initiated May 2018) (initiated Sept 2018) Long-term drug discovery and development Promising approach addressing “undruggable” partnership to identify
Slide 20: Components to redefine drug discovery paradigms
Components to redefine drug discovery paradigms Cutting-edge technologies and leading platforms iPSC Panomics Translational models Molecular phenotyping Patient-derived disease models, personalised Molecular readouts with high-throughput medicine – ‘Clinical trial in dish’ ‘omics’ to re-defining pha
Slide 21: BRIDGE concept becoming established
BRIDGE concept becoming established LAB282, LAB150, LAB591 and LAB031 – Progress YTD 2018 Basic Applied Technology Development Product Commercialisation Market Entry & Research Research and Demonstration and Market Development Market Volume Public Market EIGHT PROJECTS FOUR PROJECTS Funding Level Pe
Slide 22: Strong performance, but "just the beginning"
Strong performance, but “just the beginning” EVT Innovate – Expected key milestones 2018 New clinical initiations and good progress of clinical pipeline within existing partnerships Expansion of academic BRIDGE network Strong R&D progress within Cure X/Target X platforms and new EVT Innovate p
Slide 23: Agenda
Agenda Highlights 9M EVT Execute & EVT Innovate Financial performance and outlook PAGE 22
Slide 24: Strong financials with new business mix
Strong financials with new business mix Condensed income statement 9M 2018 – Evotec Group in € m1) YTD 2018 YTD 20175) % vs. 2017 Growth in base business, Revenues 270.0 171.5 57% Aptuit contribution (2018: € 83.6 m) and milestones Gross margin2) 31.0% 34.8% – Expected increase in R&D following
Slide 25: Strong performance across the board
Strong performance across the board Segment information 9M 2018 – Evotec Group in € m1) Inter- EVT EVT segment Not Evotec Growth in EVT Execute Execute Innovate elimination allocated Group due to strong base business including Aptuit Revenues 254.3 51.3 (35.6) – 270.0 Milestone growth and new pa
Slide 26: Strong base business & milestones drive strong Q3
Strong base business & milestones drive strong Q3 Condensed income statement Q3 2018 – Evotec Group in € m Q3 2018 Q3 20172) Strong revenue growth of Revenues 96.3 67.2 43% due to base busi- ness, Aptuit contribution Gross margin 34.7% 33.4% and milestones Gross margin reflects R&D expenses (1
Slide 27: Strong growth continued, new margin composition
Strong growth continued, new margin composition Revenues & Gross margin overview 9M 2018 Group revenues Gross margin1) Strong margin despite different (in € m) (in %) business mix following recent Base revenues Total Margin acquisitions Milestones/upfronts/ licences Margin excl. milestones/upfront
Slide 28: Guidance confirmed
Guidance confirmed Guidance 2018 Double- 1 digit top- More than 30% Group revenue growth line growth Profitable 2 Adjusted Group EBITDA1) expected to improve by approx. 30% and growing Focused 3 Group R&D expenses of € 35-45 m2) (previously: € 20-30 m) investments PAGE 27 1) Before contingent
Slide 29: Stay tuned – Financial calendar 2019
Stay tuned 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 13 August 2019 Quarterly Statement 9M 2019 12 November 2019 PAGE 28
Slide 30: HRESEARCHNEVE
HRESEARCHNEVE ASTOPS
Slide 31: Your contact
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