Evonext Holdings Sa · SIX:EVE

Evonext Holdings Sa — Evolva — H1 2023 Earnings Presentation

31 slides from Evonext Holdings Sa's earnings presentation, Aug 24, 2023

Slide 1: Half-year 2023 results presentation
Evolva Half-year 2023 results presentation 24 August 2023 Christian Wichert, CEO Carsten Däweritz, CFO
Slide 2: Disclaimer
Disclaimer The shares of Evolva Holding (“Evolva”) are traded on the SIX Swiss Exchange (ticker: “EVE”). This presentation may contain specific forward-looking statements, relating to Evolva's future business, development and economic performance. e.g., statements including terms like "believe", "as
Slide 3: Agenda
Agenda 1. Business highlights Christian Wichert 2. 1H 2023 financial results Carsten Däweritz 3. Outlook 2023 and beyond Christian Wichert © Evolva 2023 – 1H 2023 results – 24 August 2023 3
Slide 4: Strong operational performance in 1H 2023 and progress in the transformation program
Business highlights Strong operational performance in 1H 2023 and progress in the transformation program, despite major challenges Key achievements Challenges • Continuous growth of ValenceneTM and NootkatoneTM • Nice & Green informed about different interpretations of its contractual financing obli
Slide 5: Solid revenue growth and significant progress in profitability and EBITDA in 1H 2023
Business highlights Solid revenue growth (excl. Vanillin and EverSweet®) and significant progress in profitability and EBITDA in 1H 2023 Total revenues of Gross contribution CHF 4.5 million margin of 30.4% Cash at end of June: CHF 4.4 million (8.1 million in 1H 2022) (10.9% in 1H 2022) Profitability
Slide 6: 11% product-related revenue growth, driven by Valencene, Nootkatone and Resveratrol
Business highlights 11% product-related revenue growth, driven by ValenceneTM, NootkatoneTM and Resveratrol (excl. Vanillin and EverSweet®) Product-related revenues (mCHF) Comments: +62% • Underlying revenue growth of 11%, excluding the impact from Vanillin sales, 14.8 planned and budgeted into 2H 2
Slide 7: Gross contribution margin further increased to +30%
Business highlights Gross contribution margin further increased to +30%, driven by process cost improvements and value pricing Half-Yearly development of Gross Contribution Margin (%) Comments: • Improved relationships with CMO 30% 25% network 22% • Process technology enhancements 11% 5% • Value pri
Slide 8: Evolva is active in three promising business areas
Business portfolio Evolva is active in three promising business areas Core business areas Developing business area Business Areas Flavors & Fragrances (F&F) Health Ingredients (HI) Health Protection (HP) Nature-based ingredients for F&F Nature-based ingredients for dietary Nature-based products with
Slide 9: Flavors & Fragrances: continuous growth with Valencene and Nootkatone
Business highlights Flavors & Fragrances: continuous growth with ValenceneTM and NootkatoneTM F&F revenue (mCHF) excl. Vanillin Comments: • ValenceneTM and NootkatoneTM +7% continue to grow +5% 1.8 • Broadened product offering with 1.6 1.6 the successful launch of Natural NootkatoneTM for EU markets
Slide 10: Broadened product portfolio with Natural Nootkatone for EU markets
Business highlights Broadened product portfolio with successful introduction of Natural NootkatoneTM for EU markets at Simppar tradeshow Nootkatone market penetration Comments: • Broadened existing NootkatoneTM offering that opens up new addressable markets based on naturality and sustainability • N
Slide 11: Major milestone: multi-year agreement signed with leading CMO
Business highlights Major milestone achieved: multi-year agreement signed with leading CMO to ensure Vanillin business and gain enhanced profitability Vanillin sales (mCHF) Comments: • Multi-year agreement signed with 15.9 leading CMO for several key products • New contract enables Evolva first 11.4
Slide 12: Health Ingredients: further growth and market expansion
Business highlights Health Ingredients: further growth and market expansion H1 revenue (mCHF) excl. EverSweet® Comments: • Solid growth of Veri-teTM Resveratrol -46% thanks to improved go-to-market strategy 4.0 • Launched “Responsible Care” +14% concept based on Resveratrol and L-Arabinose for the a
Slide 13: Health Ingredients: launching new products and entering new market segments
Business highlights Health Ingredients: launching new products and entering new market segments Today’s Core Immediate focus Human Dietary Pet dietary Personal Care supplements supplements • “Nutraceuticals” contributing • Similar to human market • Five main application areas: to health segment skin
Slide 14: Resveratrol: strong sales pipeline materializing especially in 2H 2023
Business highlights Resveratrol: strong sales pipeline materializing especially in 2H 2023 with growth expected >80% by year-end Resveratrol sales (mCHF) Comments: • Strong Sales Pipeline starting to materialize +83% • Resveratrol on track to reach close to +46% -33% 6.9 7m CHF in 2023, representing
Slide 15: EverSweet: high potential, still disappointing, high hopes
Business highlights EverSweet®: high potential, still disappointing, high hopes Comments: • Joint venture between Cargill and DSM formed in 2019 • CEO change from DSM to Cargill as of July 2022 • Evolva is in contact with Avansya’s senior management • Market potential remains huge • Impact of COVID-
Slide 16: Health Protection: promising partnerships to enter new markets
Business highlights Health Protection: promising partnerships to enter new markets based on Nootkatone technology platform Comments: • Test markets with NootkaSHIELDTM in Southeast Asia successfully conducted • Developing new application forms for NootkaSHIELDTM in the area of tick prevention with t
Slide 17: Strict cash management and launch of Strategic Review
Business highlights After Nice & Green situation, we needed to implement strict cash management and launch Strategic Review Boost commercial Commercialize product portfolio towards its full potential, performance at a much-increased gross contribution margin Cost discipline Put funds into the most p
Slide 18: Agenda
Agenda 1. Business highlights Christian Wichert 2. 1H 2023 financial results Carsten Däweritz 3. Outlook 2023 and beyond Christian Wichert © Evolva 2023 – 1H 2023 results – 24 August 2023 18
Slide 19: Solid revenue growth and significant progress in profitability and EBITDA in 1H 2023
1H 2023 financial results Solid revenue growth (excl. Vanillin and EverSweet®) and significant progress in profitability and EBITDA in 1H 2023 Total revenues of Gross contribution CHF 4.5 million margin of 30.4% Cash at end of June: CHF 4.4 million (8.1 million in 1H 2023) (10.9% in 1H 2022) Profita
Slide 20: P&L highlights: strong product-related revenue growth and improved profitability
1H 2023 financial results P&L highlights: Strong product-related revenue growth excluding Vanillin and EverSweet® of 11% and improved profitability CHF million 1H 2023 1H 2022 adjusted adjusted Revenue from contracts with customers 4.5 8.1 • 11% growth of product-related revenues excl. Product-relat
Slide 21: Key balance sheet items - Assets
1H 2023 financial results Key balance sheet items - Assets CHF million 30 June 31 Dec 2023 2022 Assets • Intangible assets reduced through CHF 66.3 million extraordinary impairment of goodwill Intangible assets 21.9 92.6 (CHF 40.4 million), royalties and licenses (11.5), patents and patent applicati
Slide 22: Key balance sheet items – Equity and liabilities
1H 2023 financial results Key balance sheet items – Equity and liabilities CHF million 30 June 31 Dec 2023 2022 Equity and liabilities • Equity decrease through extraordinary impairment of CHF 68.3 million due to current financing situation Total equity 28.8 106.2 • Equity increase through placement
Slide 23: Operating free cash flow
1H 2023 financial results Operating free cash flow CHF million 1H 2023 1H 2022 Cash Flow • Cash flow from operating activities significantly improved by CHF 9.6 million due to higher profitability and a reduction of Net Working Cash position at beginning 5.1 11.0 Capital Cash flow from operating act
Slide 24: Agenda
Agenda 1. Business highlights Christian Wichert 2. 1H 2023 financial results Carsten Däweritz 3. Outlook 2023 and beyond Christian Wichert © Evolva 2023 – 1H 2023 results – 24 August 2023 24
Slide 25: Evolva was well on track with its transformation program
Outlook 2023 and beyond Evolva was well on track with its transformation program Build foundation for Evolution to next level Accelerate growth commercial success  Commercialize product portfolio  Enter new market segments with towards full potential  Go-to-market strategies Resveratrol () Furth
Slide 26: Way forward: strict cash management, ensure sufficient liquidity, successful strategic review
Outlook 2023 and beyond Way forward: Strict cash management, ensure sufficient liquidity until year-end, successful strategic review Short Mid- 2023 -term term • Current financing situation • Accelerated increase in • EBITDA/ Cash break-even (N&G) forced Evolva to revenues still targeted for 2025, i
Slide 27: Update on Strategic Review
Outlook 2023 and beyond Update on Strategic Review (excerpt of half-year report 1H 2023) • The Board of Directors initiated a comprehensive review of strategic alternatives, to accelerate discussions with strategic partners or to facilitate other strategic transactions, including a potential sale of
Slide 29: Financial Calendar
Financial Calendar Extraordinary General Meeting 24 August 2023, 11.00 CET in Basel © Evolva 2023 – 1H 2023 results – 24 August 2023 29
Slide 30: Appendix
More detailed information about our half-year Appendix 2032 financial results can be found here: https://evolva.com/financial-data/hy-results/ © Evolva 2023 – 1H 2023 results – 24 August 2023 30
Slide 31: Gross contribution as key performance measure
FY 2022 financial results Gross contribution as key performance measure Sales - Direct production costs Declining unit costs due to efficiency gains = Gross contribution Going forward: positive and increasing - Operational costs Largely fix (around CHF 2.5 million) - Operational staff - D&A Mainly c

Evolva — H1 2023 Earnings Presentation on 6ix

Evonext Holdings Sa — Evolva — H1 2023 Earnings Presentation

Slide 1: Half-year 2023 results presentation

Slide 2: Disclaimer

Slide 3: Agenda

Slide 4: Strong operational performance in 1H 2023 and progress in the transformation program

Slide 5: Solid revenue growth and significant progress in profitability and EBITDA in 1H 2023

Slide 6: 11% product-related revenue growth, driven by Valencene, Nootkatone and Resveratrol

Slide 7: Gross contribution margin further increased to +30%

Slide 8: Evolva is active in three promising business areas

Slide 9: Flavors & Fragrances: continuous growth with Valencene and Nootkatone

Slide 10: Broadened product portfolio with Natural Nootkatone for EU markets

Slide 11: Major milestone: multi-year agreement signed with leading CMO

Slide 12: Health Ingredients: further growth and market expansion

Slide 13: Health Ingredients: launching new products and entering new market segments

Slide 14: Resveratrol: strong sales pipeline materializing especially in 2H 2023

Slide 15: EverSweet: high potential, still disappointing, high hopes

Slide 16: Health Protection: promising partnerships to enter new markets

Slide 17: Strict cash management and launch of Strategic Review

Slide 18: Agenda

Slide 19: Solid revenue growth and significant progress in profitability and EBITDA in 1H 2023

Slide 20: P&L highlights: strong product-related revenue growth and improved profitability

Slide 21: Key balance sheet items - Assets

Slide 22: Key balance sheet items – Equity and liabilities

Slide 23: Operating free cash flow

Slide 24: Agenda

Slide 25: Evolva was well on track with its transformation program

Slide 26: Way forward: strict cash management, ensure sufficient liquidity, successful strategic review

Slide 27: Update on Strategic Review

Slide 28: Q&A

Slide 29: Financial Calendar

Slide 30: Appendix

Slide 31: Gross contribution as key performance measure