Slide 1: Driving growth & Getting ready for launch
Driving growth & Getting ready for launch Evotec SE, H1 2021 Interim Report, 11 August 2021
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements Information set forth in this presentation contains forward-looking statements, which involve a number of risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, which are often indicat
Slide 3: Welcome to H1 2021 – The Management Team
Welcome to H1 2021 The Management Team Werner Lanthaler1) Enno Spillner1) Craig Johnstone Cord Dohrmann CEO CFO COO CSO PAGE 2 1) On the call for the H1 2021 interim report
Slide 4: Agenda
Agenda Highlights Financial performance H1 2021 “Building for growth” Guidance 2021 PAGE 3
Slide 5: Strong overall performance and progress in all "lanes"
Strong overall performance and progress in all “lanes” H1 2021 – Highlights & Lowlights Highlights Business building accelerated, despite COVID-19 Multiple new & extended integrated drug discovery and development alliances (EVOiR&D) J.POD® 1 US in Redmond opening August 18th; construction of J
Slide 6: Fully in line with strategy – investments for long-term growth
Fully in line with strategy – investments for long-term growth Financials H1 2021 & FY 2021 Guidance Strong overall performance Confirmation of 2021 outlook & Action Plan 2025 ambitions Group revenues increase by 17% to € 271.3 m (H1 Group revenues € 550 - 570 m (2020: € 500.9 m) 2020: € 231.0 m
Slide 7: Our innovation hub addresses the industry's needs
Our innovation hub addresses the industry’s needs Leadership in efficiency, data, science, multimodality and access Evotec’s integrated platforms Core collaboration routes Fully integrated AI/ML-driven R&D efficiency drug discovery & development EVOiR&D platforms1) platforms Precision medicine Indus
Slide 8: Stand-alone & integrated offerings see strong demand
Stand-alone & integrated offerings see strong demand Examples of capabilities & expertise overview Industry needs Capabilities & expertise (illustrative) R&D efficiency platforms1) Target ID & Hit Sample DMPK & Research Bio In vitro In vivo Biomarker Integrated Lead validation identification managem
Slide 9: Agenda
Agenda Highlights Financial performance H1 2021 “Building for growth” Guidance 2021 PAGE 8
Slide 10: Strong growth & investments into capacity, R&D, and SG&A
Strong growth & investments into capacity, R&D, and SG&A Condensed income statement H1 2021 – Evotec SE and subsidiaries in € m1) H1 2021 H1 2020 Change Revenue growth 17% (27%, Revenues from contracts with customers 271.3 231.0 17% adjusted for portfolio3) & fx effects) R&D expenses up 19% as G
Slide 11: Gross margin affected by ongoing capacity build-up – as planned
Gross margin affected by ongoing capacity build-up – as planned Revenues & Gross margin overview – Evotec SE and subsidiaries Revenues from contracts Gross margin Base revenues up 17% or € 38.1 m to with customers (in € m) (in %) € 261.3 m. Adjusted for anticipated end Base revenues Total Margin o
Slide 12: Strong performance across all business lines
Strong performance across all business lines Segment information H1 2021 – Evotec SE and subsidiaries in € m1) Inter- EVT EVT segment Evotec Both segments show very strong Execute Innovate elimination Group performance versus Q1 Revenues 279.5 57.3 (65.5) 271.3 EVT Execute: 18% growth including
Slide 13: Growth acceleration continues in second quarter
Growth acceleration continues in second quarter Revenue bridge H1 2020 – H1 2021 – Evotec SE and subsidiaries in € m -11.5 271.3 17% growth of Group revenues 60.4 231.0 222.4 fx effect: € (11.5) m (-5%) -8.6 Organic growth of € 60.4 m translates in record growth rate of 27%, driven by base bus
Slide 14: Well-balanced global customer mix further improving
Well-balanced global customer mix further improving Selected KPIs H1 2021 Revenue by customer type YTD1) Revenues by region YTD1) in % (H1 2021) in % (H1 2021) 100% 4% 100% Mid-sized Pharma 14% Rest of World Foundation/ 9% NFP/Academic USA 53% Biotech 41% Europe 43% Top 20 Pharma 36% H1 2021 H1 2021
Slide 15: Double-digit organic EBITDA growth year-on-year
Double-digit organic EBITDA growth year-on-year EBITDA bridge H1 2020 – H1 2021 – Evotec SE and subsidiaries in € m 47.3 Pure organic growth of adjusted -8.6 EBITDA in H1 reached 13% 38.6 5.0 -7.4 36.2 fx effect of € 7.4 m amounts to -19% Decrease of 23% mainly due to delay of milestones as we
Slide 16: Capacity build-up temporarily affects margin
Capacity build-up temporarily affects margin Condensed income statement Q2 2021 – Evotec SE and subsidiaries in € m1) Q2 2021 Q2 2020 Base revenues accelerated in Q2 Revenues from contracts with customers 138.2 111.6 versus Q1 2021 across all business lines while fx headwinds Gross margin 18.5% 17
Slide 17: Strong balance sheet supporting accelerated growth
Strong balance sheet supporting accelerated growth Balance sheet and liquidity – 31 Dec. 2020 vs. 30 June 20211) – Evotec SE and subsidiaries Balance sheet total Equity Ratio Total assets, liabilities and equity in € m in % increased by around 11% Equity ratio again increased by 3.2 percentage p
Slide 18: Agenda
Agenda Highlights Financial performance H1 2021 “Building for growth” Guidance 2021 PAGE 17
Slide 19: Record demand – Capacity expansion around the globe
Record demand – Capacity expansion around the globe Expansion of footprint at all sites France – “Campus Curie” J.POD® 2 EU initiated Italy – Verona Acquisition of Verona site from GlaxoSmithKline SpA – Now “Campus Levi-Montalcini” Germany – Hamburg, Goettingen – “Manfred Eigen Campus”, Munich, Colo
Slide 20: Campus Levi-Montalcini creates long-term growth opportunities
Campus Levi-Montalcini creates long-term growth opportunities “Campus Levi-Montalcini” – Acquisition of the Verona site from GlaxoSmithKline SpA Ownership improves flexibility Acquisition from GSK strengthens fully integrated R&D solutions for partners 75,000 m² of state-of-the-art scientific an
Slide 21: J.POD 1 in US - Grand opening on 18th of August
J.POD® 1 in US - Grand opening on 18th of August State-of-the-art manufacturing facility for biologics 12,077 m² development and commercial production site Certificate of Occupancy in May (employees on site) Aerial view of new location in Redmond, Cost effective and flexible. Washington, US In
Slide 22: New manufacturing options to avoid biologics shortage in EU
New manufacturing options to avoid biologics shortage in EU Campus Curie home for new J.POD® showcases next-generation options Europe is second-largest market for biologics; local capacities to secure supply urgently needed J.POD® 2 EU creates operational efficiency and capacity for biological t
Slide 23: The iceberg of co-owned product opportunities is growing
The iceberg of co-owned product opportunities is growing In total > 200 projects with big financial upside Global Neuroscience & Pain Oncology Metabolic Diseases Inflammation & Immunology* Virology Anti-bacterial Health Ph3 Insomnia Endo – P2X3 Carrick Ph2 CC - P2X3 NP– P2X3 OAB–P2X3 Breast cancer B
Slide 24: Protein degradation partnership extended and expanded
Protein degradation partnership extended and expanded Alliance with BMS since 2018 – already proven to be highly productive & Proteomics approach May 2020 Oct 2020 Mar 2021 June 2021 to targeted protein First screening First project Significant New protein degradation degradation milestone initiatio
Slide 25: "Evotec Inside" – Fully invested pipeline gaining visibility
“Evotec Inside” – Fully invested pipeline gaining visibility Progress of drug candidates in advanced stages Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III Selected pipeline events within next 18 – 24 months EVT201 Insomnia (GABA-A) BAY-1817080 Chronic
Slide 26: Positive Phase IIb headline data supports best-in-class potential
Positive Phase IIb headline data supports best-in-class potential P2X3 antagonist – eliapixant (BAY1817080) Refractory Chronic Cough (RCC) Positive outcome of Phase IIb trial (PAGANINI) Cough frequency in Phase IIa1) Multiple indications potential Statistically significant improvement in 24-hour c
Slide 27: Lessons from COVID-19
Lessons from COVID-19 Building a unique pandemic Preparedness and Rapid RespOnse TEChnology PlaTform PAGE 26
Slide 28: Welcome back, Kara!
Welcome back, Kara! Kara Carter re-joining Evotec to strengthen Evotec’s position in Virology “Chronic Hepatitis B continues to have a tremendous burden on global health. Finding a cure for this disease requires innovative approaches and is critically important to improving the health of millions of
Slide 29: Keeping the promise
Keeping the promise ESG & Sustainability – Measures taken in H1 2021 Responsible use of resources Sourcing of 100% renewable energy since January 2021 at all German sites Decision on replacement of heating system in building B95 in Abingdon (estimated savings of CO2e of ~800t per year as of Q2 2
Slide 30: BRIDGEs bring multiple future investment options
BRIDGEs bring multiple future investment options Creating long-term optionality with efficient translation Basic Applied Technology Development Product Commercialisation Market Entry & Research Research and Demonstration and Market Development Market Volume Public Market Funding Level Pension Plan P
Slide 31: Growing portfolio with operational synergies
Growing portfolio with operational synergies EVOequity overview At equity investments (share ≥ 20% or significant influence) Joint Venture Equity Spin-off Equity Equity (in-kind) Spin-off Equity Equity Spin-off Equity Equity Joint Venture participation participation participation participation (LAB2
Slide 32: Agenda
Agenda Highlights Financial performance H1 2021 “Building for growth” Guidance 2021 PAGE 31
Slide 33: Strong year ahead – Guidance 2021
Strong year ahead Guidance 2021 Very good top-line growth expected Assumption based on current orders, prospective milestone payments Total Group revenues € 550-570 m (€ 565-585 m at constant exchange rates1)) EBITDA guidance confirmed – despite massive investments Expanding scope of strategic
Slide 34: Our mid-term aspirations are "...just the beginning"
Our mid-term aspirations are “…just the beginning” 2020-2025e Key Performance Indicator goals Revenues Adjusted EBITDA1) in € m in € m >100% ≥180% 500.9 >1,000 106.6 ≥300 Unpartnered R&D Co-owned projects2) in € m >100% >100% 46.4 >100 118 >250 PAGE 33 1) before significant royalties 2) incl. Equity
Slide 35: Upcoming important dates
Upcoming important dates Financial calendar 2021 Quarterly Statement Q1 2021 11 May 2021 Virtual Annual General Meeting 2021 15 June 2021 Half-year 2021 Interim Report 11 August 2021 Quarterly Statement 9M 2021 11 November 2021 Virtual Capital Markets Day 02 December 2021 PAGE 34
Slide 36: Virtual Capital Markets Day on 02 December 2021
e, evotec #RESCARCHNEVERSTOPS RIGHT NOW, WE HAVE TO WAIT. We will switch to virtual CAPITAL MARKETS DAY ON 02 DECEMBER 2021
Slide 37: Questions and Answers
Slide 38: 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
Slide 39: Appendix
Appendix PAGE 38
Slide 40: Plenty of headroom despite significant capex & equity invested
Plenty of headroom despite significant capex & equity invested Liquidity bridge H1 2021 in € m 481.9 41.1 -47.2 -25.4 -9.9 449.3 -13.6 21.7 0.7 31 December Operating Capex Capex Equity Bank loans & Repayment of F/X 30 June 2020 cash flow J.POD All other investments Promissory lease difference & 2021
Slide 41: Further improvement of accounts receivables management
Further improvement of accounts receivables management Days Sales Outstanding comfortably within target range DSO quarterly and LTM DSO average in days Trade accounts receivables including receivables from associated companies 100 DSO in days decreased to € 79.8m quarterly "BMS effect" (Dec 2020:
Slide 42: Our purpose is to go VERY long as ONE
Our purpose is to go VERY long as ONE – #researchneverstops Sustainable thinking is holistic and ensures long-term success Our employees and potential Co-ownership recruits We offer > 800 partners an integrated People platform and share values of highest Creating environment that makes Partners inte