Slide 1: Ahead of the curve
Ahead of the curve Leadership in our focus areas for medicines that matter Evotec SE, Preliminary 2022 results, 28 March 2023
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: Thank you, Enno! Welcome Laetitia!
Thank you, Enno! Welcome Laetitia! The Management Team Werner Laetitia Craig Lanthaler Rouxel Johnstone CEO CFO COO (from April 2023) Enno Cord Matthias Evers Spillner Dohrmann CBO CFO CSO (till March 2023) PAGE 3
Slide 4: Quote from Laetitia Rouxel, incoming CFO
“I am excited to join Evotec at this stage of its impressive journey. Helping to shape the organisation to foster resilience and agility as well as improving its sustainable profitable growth is what I want to contribute.“ Laetitia Rouxel Chief Financial Officer (as of 1 April) PAGE 4
Slide 5: Agenda
Agenda Highlights Scientific and operational performance 2022 Financial performance 2022 Outlook and Guidance 2023 PAGE 5
Slide 6: Convergence, right tools, technologies & disease understanding
Convergence, right tools, technologies & disease understanding Evotec advancements against industry trends Selected industry trends Evotec selected advancements Evolvement of targeted Paradigm shift in biologics with A.I./M.L.-based protein degradation discovery to continuous manufacturing mRNA vacc
Slide 7: Strong demand in all lanes
Strong demand in all lanes Highlights & lowlights 2022 Highlights • Significant progress in major partnerships with Bristol Myers Squibb (BMS); targeted protein degradation alliance extended for additional 8 years; important milestones achieved in iPSC-neuro strategic collaboration • Eight-year expa
Slide 8: Another year with strong double-digit growth
Another year with strong double-digit growth Results versus previous year and guidance FY 2021 FY 2022 Yoy growth like-for-like / results results4) at constant fx-rates1) Guidance Group revenues € 748.4 m € 715 – 735 m € 618.0 m 21% / 15% (at constant fx-rates1)) (€ 707.7 m) (€ 690 – 710 m) Unpartne
Slide 9: Strong growth and improving profitability towards Action Plan 2025
Strong growth and improving profitability towards Action Plan 2025 Guidance 2023 Guidance 2023 YE 20223) Implied growth at midpoint Group revenues € 820 – 840 m € 751.4 m >10% (at constant fx-rates1)) (€ 835 – 855 m) Unpartnered R&D2) € 70 – 80 m € 70.2 m At least stable Adjusted EBITDA € 115 – 130
Slide 10: Action Plan 2025 on track
Action Plan 2025 on track Action Plans in numbers 2025 2022 2018 2012 Action Plan 2025 2009 Leadership in data, science, Action Plan 2022 multimodality & access Action Plan 2016 Aspire global Action Plan 2012 Build innovation leadership Restructure for growth seeds 2010 2015 2020 2025 • Revenues: €
Slide 11: Building a massive long-term royalty pool
Building a massive long-term royalty pool Selected KPIs # programmes Immunology / by disease area Inflammation >130 18 Commu- nicable diseases 37 34 63 Oncology Co-owned pipeline assets Clinical stage 40 40 Neuroscience Metabolic and Pain disease 91 # programmes by model >€ 15 bn 8 -10 % 56 45 22 Po
Slide 12: Agenda
Agenda Highlights Scientific and operational performance 2022 Financial performance 2022 Outlook and Guidance 2023 PAGE 12
Slide 13: Our four Focus Areas
Our four Focus Areas Overview iPSC-based Cell End-to-end PanOmics Just – Evotec Biologics Therapies Shared R&D Deep disease “Off-the-shelf” cell From Artificial Intelligence Integrated business-to- understanding for effective therapies based on (“A.I.”) to continuous business platform for therapies
Slide 14: Fully integrated in discovery, development & manufacturing
Fully integrated in discovery, development & manufacturing Illustrative functional capabilities along the value chain Lead Pre-clinical Clinical Sourcing novel ideas Target ID / validation Hit identification Approval1) Market1) optimisation development Phase I/II/III1) PanOmics-driven drug discovery
Slide 15: PanOmics-driven drug discovery for better disease understanding
PanOmics-driven drug discovery for better disease understanding PAGE 15
Slide 16: PanOmics is already a success – much more to come!
PanOmics is already a success – much more to come! Examples of PanOmics-driven collaborations PanOmics data generation PanHunter data analytics Revenues of > € 150 m > 20 collaborations > 50 programmes PAGE 16
Slide 17: Largest deal in one of the most competitive fields in the industry
Largest deal in one of the most competitive fields in the industry Targeted protein degradation alliance with BMS signed in 2022 Developing a pipeline of breakthrough therapies based on molecular glue degraders • 8-year extension and significant expansion of original agreement signed in 2018 • Colla
Slide 18: Strategic expansion of a highly successful partnership
Strategic expansion of a highly successful partnership Leveraging precision medicine platform in neurodegeneration Screening Expansion Expansion Early extension Expansion Expansion Expansion Extension 2016 2017 2018 2019 2020 2021 2022 2023 Start of Lead 1st IND collaboration Expansion Expansion Exp
Slide 19: Quotes from BMS and Evotec on neurodegeneration collaboration
“We look forward to continuing our drug discovery research into key mechanisms in neurodegeneration and delivering potential therapeutic candidates for patients who are suffering from these devastating diseases.“ Prof. Richard Hargreaves, PhD SVP, Neuroscience Thematic Research Center – Bristol Myer
Slide 20: Aging is driving incidence rates of neurodegenerative diseases
Aging is driving incidence rates of neurodegenerative diseases Societal burden of Central Nervous System related diseases % of people aged 60+ by region (2020 vs. 2050e) Need for paradigm shift 34% • Limited understanding of the underlying molecular mechanisms 27% 25% • Second leading cause of death
Slide 21: Increasing PoS with differentiated precision drug discovery
Increasing PoS with differentiated precision drug discovery Industrialised iPSC disease models and Omics-platforms at scale Wealth of „inputs“ Program pipeline Panhunter A.I./M.L. driven data analytics PanOmics Industrialised Omics data generation Modality Tissues, agnostic primary cells „Study dise
Slide 22: High-value dealmaking underlines big pharma CNS ambitions
High-value dealmaking underlines big pharma CNS ambitions Analysis of selected deals in the last years Diseases of the 4.0 central nervous system continue to catalyse dealmaking as companies search Deal value, in $ bn for new therapies to tackle some major unmet medical 2.0 Roche / Recursion Biogen
Slide 23: iPSCs – Cell Therapy based on induced-pluripotent stem cells
iPSCs – Cell Therapy based on induced-pluripotent stem cells PAGE 23
Slide 24: Off-the-shelf approach will revolutionise cell therapy applications
Off-the-shelf approach will revolutionise cell therapy applications Benefit of manufacturing process for iPSC-based therapeutics Autologous Just-in-time iPSC-based therapeutics • Reduced manufacturing complexity – Patient is not part of manufacturing Patient Manufacturing 1x dose process Allogeneic
Slide 25: “The product is the process”
“The product is the process” Cell therapy manufacturing facility with acquisition of Rigenerand now Evotec Modena • Founded in 2009 as spin-off of the University of Modena and Reggio Emilia • Scientific founder Prof. Massimo Dominici one of the pioneers in clinical cell therapy • State-of-the art GM
Slide 26: A comprehensive portfolio of early iPSC-based cell therapy assets
A comprehensive portfolio of early iPSC-based cell therapy assets Off-the shelf cell therapy programmes Protocol Pre-clinical Pre-clinical IND / iPSC-derived cell types Field Program/Project Disease area development research development Phase I iNK Oncology 1) • iNK Natural killer cells iM Oncology
Slide 27: Just – Evotec Biologics
Just – Evotec Biologics Continuous manufacturing for better access to biologics PAGE 27
Slide 28: Our mission is to contribute to much better access to biologics
Our mission is to contribute to much better access to biologics Access for all 7,000 70% 6 bn 12 months underserved rare higher prices for without access to biologics to first Ab therapy indications that could be antibodies vs. small based on geography in COVID addressed with biologics molecules in
Slide 29: First strong quarter, many more to come …
First strong quarter, many more to come … Key achievements 2022 Closed Sales, Key progress Revenues and EBITDA by quarter Sales in € m in 2022, in € m >100 25 Secured and initiated new 20 anti-Plague mAb develop- 15 ment programme 10 3x 5 First commercial 0 31 process development -5 -10 Undisclosed
Slide 30: J.POD – commercial biologics manufacturing stepping up
J.POD – commercial biologics manufacturing stepping up Progress and status Signature ceremony of EIB loan at Evotec’s Campus Curie in Toulouse Aerial view of new location in Redmond, Washington, US View of coming J.POD® in Toulouse (architectural rendering)1) • Start of operations fully on track, e.
Slide 31: End-to-End Shared R&D
End-to-End Shared R&D – Integrated B2B platform for increased probability of success PAGE 31
Slide 32: Well-balanced global customer mix further improving
Well-balanced global customer mix further improving Sharing as basis for success RoW 4% >800 ~38% Europe Revenue 35% by region 61% USA Partners Revenue share with TOP 10 partners (2021: 42%) Top 20 NFP, Academic Pharma 7% Foundations 38% 92% 118 Revenue by partner 42% Biotech repeat business No. of
Slide 33: Comprehensive integrated research and development
Comprehensive integrated research and development Major developments (selection) in End-to-End shared R&D • € 495.4 m1) revenue in end-to-end shared R&D Ent-to-End Shared R&D business mix +18% • >5 new and/or extended integrated drug again faster than market discovery agreements centered on A.I./M.L
Slide 34: Agenda
Agenda Highlights Scientific and operational performance 2022 Financial performance 2022 Outlook and Guidance 2023 PAGE 34
Slide 35: Very strong progress in a challenging year
Very strong progress in a challenging year Condensed preliminary income statement 2022 – Evotec SE and subsidiaries in € m1) 2022 2022 Guidance 2021 Change Comment Revenues 751.4 715 – 735 618.0 22% Strong base business • of which Just – Evotec Biologics (JEB) 51.3 – 52.9 (3)% Improved mix Gross mar
Slide 36: High-quality gross margin in base business
High-quality gross margin in base business Revenues & Gross margin overview – Evotec SE and subsidiaries Revenues from contracts Gross margin • 15% organic growth of Group with customers (in € m) (in %) revenues, at constant fx-rates Base revenues Total Margin Milestones, upfronts and licences Margi
Slide 37: Q4 2022 - The anticipated strong finish to the year
Q4 2022 - The anticipated strong finish to the year Adj. EBITDA overview – Evotec SE and subsidiaries incl./excl. Just – Evotec Biologics +20% 138.3 • Visible contribution from milestones, upfronts, licenses & royalties 115.2 107.3 101.7 − BMS Neuro, Janssen, others • Excellent base business with st
Slide 38: Q4 2022 – The strongest quarter in 30-year history
Q4 2022 – The strongest quarter in 30-year history Condensed income statement Q4 2022 – Evotec SE and subsidiaries in € m1) Q4 2022 Q4 2021 Change • 29% revenue growth versus strong Revenues 240.7 187.1 29% comparable base Gross margin 34.3% 27.8% 650bp • Substantially improved gross margin due to •
Slide 39: Strong balance sheet as very solid base for future growth
Strong balance sheet as very solid base for future growth Balance sheet and Cash-flow items – 31 Dec. 2022 vs. 31 Dec. 2021 – Evotec SE & subsidiaries Balance sheet total Equity ratio Operating Cash-flow in € m in % in € m 2,235.2 2,257.2 61.6 52.6 122.2 203.0 Net Debt ratio Liquidity position Capex
Slide 40: Agenda
Agenda Highlights Scientific and operational performance 2022 Financial performance 2022 Outlook and Guidance 2023 PAGE 40
Slide 41: Our mid-term aspirations are “… just the beginning”
Our mid-term aspirations are “… just the beginning” 2020-2025e Key Performance Indicator goals (as introduced on 20 April 2021) 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 41 1) before sig
Slide 42: Sustainable growth enabled by strong culture, values & people
Sustainable growth enabled by strong culture, values & people Innovation – Entrepreneurship – Collaboration 33% 91 46% 54% Men Women Share of PhDs Nationalities 4,952 3,572 4,198 31% 38 2020 2021 2022 Women in Senior Average age Ca. 500 net new talents Management planned for 2023 PAGE 42
Slide 43: Keeping the promise
Keeping the promise ESG & Sustainability – Measures taken in 2022 • Environment − Scope 1 & 2 and supplier related Scope 3 SBTi near-term targets set and submitted − Installation of first air source heat pump (Building B95 in Abingdon) − Campus Curie connected to renewable energy heating network Tou
Slide 44: Our promise
Our promise ESG Goals 2023 Approve and implement the SBTi initiative action plan at all Evotec sites and invest one percent of 2022 revenues to achieve SBTi targets. Conduct engagement survey by mid 2023. Define and communicate a management plan for 2024 and beyond based on results of engagement sur
Slide 45: Executing to accelerate growth along Action Plan 2025
Executing to accelerate growth along Action Plan 2025 Selected major newsflow 2023 • New strategic partnerships and expansions of co-owned alliances PanOmics • New clinical trial initiations • Significant progress of later stage co-owned pipeline • New strategic partnerships iPSCs • Progression of p
Slide 46: Upcoming important dates
Upcoming important dates Financial calendar 2023 Quarterly Statement Q1 2022 10 May 2023 1st Capital Markets Day 2023 (virtual) 5 June 2023 Virtual Annual General Meeting 2023 20 June 2023 Half-year 2023 Interim Report 09 August 2023 Quarterly Statement 9M 2023 08 November 2023 2nd Capital Markets D
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Slide 48: Appendix
Appendix PAGE 48
Slide 49: Segment information 2022 – Evotec SE and subsidiaries
Revenues up Segment information 2022 – Evotec SE and subsidiaries in € m1) Inter- EVT EVT segment Evotec • Accelerated growth in fourth quarter Execute Innovate elimination Group • EVT Execute total revenue growth up 21%; Growth excluding Revenues 735.6 204.7 (188.9) 751.4 Just – Evotec Biologics pl
Slide 50: Business-to-business model in Biotech is highly scalable
Business-to-business model in Biotech is highly scalable Value creation pillars IP partnering1) / Pipeline of co-owned assets Partner owns IP Value Creation • Fee for Service / FTE rates • Fee for Service / FTE rates Model • Upfront payments, milestones, licenses, • Success payments royalties • Pric
Slide 51: Strong Sustainability Governance in place
Strong Sustainability Governance in place Supervisory Board assumes responsibility for sustainability reports into Management Board Supervisory Board supervise and guides • The Supervisory Board as a whole is responsible support in strategy for ESG oversight and therefore addresses ESG defines devel
Slide 52: Growing fast and responsibly
Growing fast and responsibly SBTi1) targets language „Evotec SE commits to reduce absolute Science-based targets Scope 1 and 2 GHG emissions 50% by balancing fast growth and responsibility for the planet 2032 from a 2021 base year. Evotec SE also commits to increase annual sourcing of • RE100 target
Slide 53: EVOequity complements co-owning strategy
EVOequity complements co-owning strategy Operational VC model – diversified portfolio with multiple shots on goal At Equity Holding (≥20%) or signi- ficant influence Starting Minority points to fuel Shareholdings EVOequity (<20%) portfolio BRIDGEs PAGE 53 https://actionplan.evotec.com/evoequity
Slide 54: Centres of excellence to discover, develop & manufacture
Centres of excellence to discover, develop & manufacture Together for medicines that matter with ~5,000 people at 17 sites Hamburg (GER - HQ) – Manfred Eigen Campus – A major hub for integrated drug discovery including variety of HTS screening activities; home of neuroscience experts & the basis for
Slide 55: Pipeline of co-owned assets
“Evotec inside” Pipeline of co-owned assets Molecule Therapeutic Area / Indication Partner Discovery Pre-clinical Phase I Phase II Phase III Approved Selected pipeline events SKYCovione COVID-19 within next 12-24 months EVT201 Insomnia (GABA-A) BAY2395840 Multiple Indications (B1) • Phase III & regi
Slide 56: The growing “iceberg” of first & best-in-class treatment options
The growing “iceberg” of first & best-in-class treatment options >250 projects including EVOequity and BRIDGEs: ~190 in partnerships, >60 internal R&D Inflammation & Neuroscience & Pain Oncology Metabolic Diseases Communicable diseases Immunology1) Approved COVID-19 Registration Insomnia Breast Ph3
Slide 57: Your contact: Volker Braun
Your contact: Volker Braun SVP Head of Global Investor Relations & ESG +49 (0) 40 560 81-775 +49 (0) 151 1940 5058 (m) volker.braun@evotec.com