Slide 1: Resetting for profitable growth
Resetting for profitable growth Evotec SE, Q1 2024 Analyst Call, 2024-05-22
Slide 2: Disclaimer
Disclaimer This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries) is being delivered on behalf of Evotec SE (the “Company”, “we,” “our” or “us”). This presentation is made pursuant to Sec
Slide 3: Welcome! The Team
Welcome! The Team Mario Polywka Laetitia Rouxel Matthias Evers Interim CEO CFO CBO Craig Johnstone Cord Dohrmann COO CSO PAGE 3
Slide 4: Agenda
Agenda 1. Business Update & Financials 2. Strategic & Operational Update 3. Priority Reset & Outlook 4. Questions & Answers PAGE 4
Slide 5: Agenda
Agenda 1. Business Update & Financials 2. Strategic & Operational Update 3. Priority Reset & Outlook 4. Questions & Answers PAGE 5
Slide 6: Q1 2024 at a glance
Q1 2024 at a glance Summary Shared R&D Just – Evotec Biologics • New partnerships disclosed – e.g., AI-powered strategic • Expanded development & manufacturing agreement partnership with Owkin, precision medicine with ABL partnership in cardiology with Bayer • Increase on number of projects and orde
Slide 7: Solid underlying performance held back by transactional business
Solid underlying performance held back by transactional business Condensed income statement Q1 2024 – Evotec SE and subsidiaries in € m1 Q1 2024 Q1 2023 Change Comments Revenues 208.7 213.6 (2)% Strong Discovery Shared R&D 155.2 202.5 (23)% Development behind Just – Evotec Biologics (JEB) 53.5 11.1
Slide 8: Differentiated offerings driving the business
Differentiated offerings driving the business Q1 2024 income statement by segment – Evotec SE and subsidiaries Just – Inter- Shared Evotec segment Evotec • Shared R&D in € m1 R&D Biologics elimination Group − Revenues -23% Revenues 155.2 53.8 (0.3) 208.7 − COGS -1% − SG&A +7% Gross margin 13% 28% –
Slide 9: Strong balance sheet as solid base for strategy execution
Strong balance sheet as solid base for strategy execution Balance sheet and Cash-flow items Q1 2024 – Evotec SE & subsidiaries Balance sheet total Equity ratio Operating Cash-flow in € m vs. 31 Dec 2023 in % vs. 31 Dec 2023 in € m vs. Q1 2023 2,252.5 2,208.7 49.7 50.1 0.6 2 (50.9) Net Debt ratio Liq
Slide 10: Agenda
Agenda 1. Business Update & Financials 2. Strategic & Operational Update 3. Priority Reset & Outlook 4. Questions & Answers PAGE 10
Slide 11: Green shoots in Shared R&D
Green shoots in Shared R&D Selected disclosed new partnerships New AI-powered partnership with Owkin to accelerate discovery and development of therapeutics in oncology and I&I New agreement with the Crohn’s & Colitis Foundation for novel therapeutics in Inflammatory Bowel Disease, including Crohn’s
Slide 12: First signal pointing towards business recovery in late 2024
First signal pointing towards business recovery in late 2024 Closed Sales in Discovery by quarter, indexed Discovery Q1 orders +70% • Discovery segment roughly 70% of Shared R&D revenues • 2024 Q1 for Discovery 2nd best quarter in history of Evotec in terms of Closed Sales • Leading indicator pointi
Slide 13: Just – Evotec Biologics is building markets faster than expected
Just – Evotec Biologics is building markets faster than expected Business momentum 2021-2024 Closed Sales Progress markers in € m ~900 Molecules now under development Contract extension and expansion 9x Undisclosed Signature of first Phase III supply 3x >100 Undisclosed Work on bi-specific molecule
Slide 14: Our continuous platform with strong traction in complex biologics
Our continuous platform with strong traction in complex biologics Trends in global biologics pipelines compared with Just – Evotec Biologics molecule portfolio Size of global pipeline by therapeutic modality (Phase I to III) Share of complex Number of products1 biologics in portfolio 4,000 3,000 >40
Slide 15: Molecule portfolio advancing towards commercial manufacturing
Molecule portfolio advancing towards commercial manufacturing High level longitudinal portfolio overview: Just – Evotec Biologics More than 150 biologics ‘touched’ • AI-driven platforms for design of monoclonal Antibodies, Bi-specifics, Molecules in Fabs & Fusion and Proteins molecular optimisation1
Slide 16: Opening of J.POD Toulouse is fully on track
Opening of J.POD Toulouse is fully on track Progress and status J.POD Toulouse – (January 2024) Building of shell and installation of PODs in second biologics facility “J.POD Toulouse” completed Grand opening in September – two years after ground-breaking CMD: 10 October on site Expanded Process Dev
Slide 17: Agenda
Agenda 1. Business Update & Financials 2. Strategic & Operational Update 3. Priority Reset & Outlook 4. Questions & Answers PAGE 17
Slide 18: Executing on our three priorities towards profitable growth
Executing on our three priorities towards profitable growth Priority update Focus on strengths Adjust organisation Put a strong 1 and drive smart 2 and footprint 3 team in place partnering • Focus on core modalities - • Initiated global purchasing • Pre-boarding of CEO and Exit Gene Therapy (Orth) o
Slide 19: We are driving the execution of priority reset cost optimisation
We are driving the execution of priority reset cost optimisation Status update Priority Initiative Current progress (by mid-May)1 Facility space & Short-term facility footprint space reduction C A I S Footprint right sizing Capital allocation Global purchasing optimisation Capital allocation to C A
Slide 20: Focus and disciplined execution leading to better results
Focus and disciplined execution leading to better results Roadmap H1 H2 • Focus on execution against new priorities, • Translate BD pipeline momentum and Closed Sales improving cost base as of H2 2024 into revenue growth • Focus on continuing positive trajectory in early • Continue execution to capt
Slide 21: Faster than market growth, more profitable
Faster than market growth, more profitable Guidance 2024 Guidance 2024 YE 2023 Comment Low double digit Navigating in a challenging market Group revenues € 781.4 m percentage growth with differentiated offering Long-term expansion of pipeline / Mid-single to low double R&D1 € 64.8 m Focus on first-i
Slide 22: Upcoming important dates
Upcoming important dates Financial calendar 2024 Annual General Meeting 2024 10 June 2024 Half-year 2024 Interim Report 14 August 2024 Capital Markets Day 10 October 2024 Quarterly Statement 9M 2024 06 November 2024 PAGE 22
Slide 23: Reset is underway
Reset is underway Key takeaways from today Reset for profitable growth fully on its way Challenging H1 - expected “trough” Credible signals for business recovery in H2 Putting an even stronger team in place PAGE 23
Slide 24: pRescaRcHnevensTors
pRescaRcHnevensTors
Slide 25: Volker Braun, Investor Relations
Volker Braun EVP Head of Global Investor Relations & ESG +49 (0) 40 228 999 338 (d) +49 (0) 151 1940 5058 (m) volker.braun@evotec.com