Slide 1: Together for medicines that matter
Together for medicines that matter Evotec SE, 9M 2022 Interim Statement, 09 November 2022
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 Management Team
Welcome The Management Team Werner Enno Craig Matthias Cord Lanthaler Spillner Johnstone Evers Dohrmann CEO CFO COO CBO CSO PAGE 2
Slide 4: Agenda
Agenda Highlights Financial performance 9M 2022 Scientific and operational performance 9M 2022 ESG, Outlook and Guidance 2022 PAGE 3
Slide 5: Focused on execution and acceleration
Focused on execution and acceleration 9M 2022 – Latest highlights & lowlights Highlights • Undisrupted demand in all sectors; New and extended discovery & development agreements and several smaller milestones • Significant progress in neuroscience collaboration with Bristol Myers Squibb • Just – Evo
Slide 6: Strong profitable growth of base business
Strong profitable growth of base business Financials 9M 2022 & FY 2022 guidance Undisrupted demand from all industry sectors Guidance confirmed • Group revenues of € 510.8 m up 19% • Very good top-line growth expected − Growth of Group revenues, adj. for fx-effects up 13% − Total Group revenues € 71
Slide 7: Agenda
Agenda Highlights Financial performance 9M 2022 Scientific and operational performance 9M 2022 ESG, Outlook and Guidance 2022 PAGE 6
Slide 8: Strong growth & investments in capacity, R&D, SG&A and M&A
Strong growth & investments in capacity, R&D, SG&A and M&A Condensed income statement 9M 2022 – Evotec SE and subsidiaries in € m1) 9M 2022 9M 2021 Change • Revenue growth 19% (13%, adjusted Revenues 510.8 431.0 19% for fx-effects); comparison impacted by high milestone contribution in Q3 2021 Gross
Slide 9: High quality gross margin, clearly identified challenges
High quality gross margin, clearly identified challenges Revenues & Gross margin overview – Evotec SE and subsidiaries Revenues Gross margin • Group revenues € 482.8 m – excluding (in € m) (in %) Just – Evotec Biologics up 22% Base revenues Total Margin • Base revenues € 502.7 m up 27% Milestones, u
Slide 10: Accelerating underlying EBITDA growth
Accelerating underlying EBITDA growth Adj. EBITDA overview – Evotec SE and subsidiaries incl./excl. Just – Evotec Biologics 111.8 106.7 103.4 107.3 • Group adj. EBITDA decline by 36% to € 44.6 m strongly impacted by start-up +8% 84.6 costs for Just – Evotec Biologics 74.0 70.1 • Group adj. EBITDA of
Slide 11: Strong underlying performance
Strong underlying performance Segment information 9M 2022 – Evotec SE and subsidiaries in € m1) Inter- EVT EVT segment Evotec • EVT Execute: 23% growth including inter- Execute Innovate elimination Group segment revenues; 18% growth of external revenues driven by strong base Revenues 526.7 121.9 (13
Slide 12: Strong growth of base business – expanding at high speed
Strong growth of base business – expanding at high speed Condensed income statement Q3 2022 – Evotec SE and subsidiaries in € m1) Q3 2022 Q3 2021 Change • Reported growth of 9% due to high com- Revenues 173.9 159.7 9% parable basis of milestones, upfronts & licenses in Q3 2021 (Δ € 23 m) Gross margi
Slide 13: Strong balance sheet supports strategic growth
Strong balance sheet supports strategic growth Balance sheet and liquidity – 31 Dec. 2021 vs. 30 Sep. 20221) – Evotec SE and subsidiaries Balance sheet total Equity Ratio • Small total assets increase in € m in % • With upfronts and repayment of debt, net debt leverage ratio further expanded to -7.7
Slide 14: Agenda
Agenda Highlights Financial performance 9M 2022 Scientific and operational performance 9M 2022 ESG, Outlook and Guidance 2022 PAGE 13
Slide 15: Precise medicines with omics, cell therapy & tech convergence
Precise medicines with omics, cell therapy & tech convergence Overview & focus areas to accelerate leadership and profitable growth iPSC-based Just – Evotec End-to-end PanOmics Cell Therapies Biologics Shared R&D Data-driven R&D Autobahn to Cures From disease Industry leading iPSC Disruptive technol
Slide 16: Expanded and new alliances with precision medicine platforms
Expanded and new alliances with precision medicine platforms Latest highlights in 9M 2022 iPSC-based Just – Evotec End-to-end PanOmics Cell Therapies Biologics Shared R&D Data-driven R&D Autobahn to Cures Neurodegeneration: Two new programmes identified for further development Expansion of E.MPD mol
Slide 17: Offering Software as a Service (SaaS): PanHunter
Offering Software as a Service (SaaS) PanHunter PAGE 16 https://panhunter.com/
Slide 18: Delivering health by expanding & improving cell therapy research
Delivering health by expanding & improving cell therapy research Overview 9M 2022 iPSC-based Just – Evotec End-to-end PanOmics Cell Therapies Biologics Shared R&D Data-driven R&D Autobahn to Cures • QRBeta 1.0 – First generation cell therapy for Insulin-dependent diabetes • iPSC-based beta cells com
Slide 19: Paradigm shift in biologics
Paradigm shift in biologics starting its market entry strategy Latest highlights in 9M 2022 iPSC-based Just – Evotec End-to-end PanOmics Cell Therapies Biologics Shared R&D Data-driven R&D Autobahn to Cures • Just – Evotec Biologics is in its build up and initial investment phase • Discovery and pre
Slide 20: We are expanding across disease areas
We are expanding across disease areas Just – Evotec Biologics client programmes No. of J.MDTM Pre-clinical Clinical Commercial Disease area programmes Discovery Optimization development manufacturing Manufacturing Good initial basis for growth 1 • >15 partners / >20 programmes Oncology 4 • 3 program
Slide 21: Just – Evotec Biologics sales strong growth
Annual sales have already tripled versus FY21 Biologics sales Just – Evotec Biologics Key progress • Closed sales is leading indicator Closed Sales, Sales in € m since half year results of future revenues >90 Secured and initiated • Closed sales 2022 sales show new anti-Plague mAb strong growth – in
Slide 22: Continued strong performance of shared R&D platform
Continued strong performance of shared R&D platform Latest highlights in 9M 2022 iPSC-based Just – Evotec End-to-end PanOmics Cell Therapies Biologics Shared R&D Data-driven R&D Autobahn to Cures • Several new and extended integrated drug discovery agreements e.g., Viotika, … • Continued increased d
Slide 23: Clear path to the market for rare diseases & precision medicine
Clear path to the market for rare diseases & precision medicine Complementing our Abingdon, UK and Verona, Italy API Capabilities Abingdon Verona Halle Combined high-end capabilities EU GMP certified facility • Chemical and Analytical Develop- • ~60 chemical manufacturing experts ment teams with str
Slide 24: Steady stream of high-value catalysts
“Evotec Inside” Steady stream of high-value catalysts Molecule Therapeutic Area / Indication Partner Discovery Pre-clinical Phase I Phase II Phase III Approved Selected pipeline events within next 12 – 24 months SKYCovione COVID-19 EVT201 Insomnia (GABA-A) • Phase III & registration (CHN) JingXin in
Slide 25: EVOequity continues co-owning strategy
EVOequity continues co-owning strategy Operational VC model – diversified portfolio with multiple shots on goal At Equity Holding (≥20%) or Significant influence Academia Partners & BRIDGEs Minority Shareholdings (<20%) Starting Attractive portfolio points to fuel with External EVOequity Evotec sign
Slide 26: Agenda
Agenda Highlights Financial performance 9M 2022 Scientific and operational performance 9M 2022 ESG, Outlook and Guidance 2022 PAGE 25
Slide 27: Keeping the promise: ESG & Sustainability
Keeping the promise ESG & Sustainability – Measures taken in 9M 2022 • Environment − Starting final phase of SBTi alignment project: Completion of Scope 3 emission assessment − Currently setting targets for scopes 1, 2 and 3, where engaging our suppliers is included − Installation of first air sourc
Slide 28: Guidance confirmed – On track towards reaching AP 2025 goal
Guidance confirmed – On track towards reaching AP 2025 goal Guidance 2022 Guidance 2022 YE 2021 Implied growth at midpoint Group revenues (H1 2022) € 715 – 735 m € 618 m >15% (at constant fx-rates1)) (€ 690 – 710 m) Unpartnered R&D2) € 70 – 80 m € 58 m ~30% Adjusted EBITDA3) € 105 – 120 m € 107 m At
Slide 29: Strong finish to the year needed and anticipated
Strong finish to the year needed and anticipated EBITDA bridge 9M 2022 – FY 2022 guidance target in € m >105 • Visible contribution from milestones, upfronts & licenses • Excellent base business with strong operating leverage 46.41) • Acceleration of Just – Evotec Biologics revenues leading to very
Slide 30: 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 29 1) Before significant royalties 2) Incl. Equit
Slide 31: Setting the pace to accelerate growth along Action Plan 2025
Setting the pace to accelerate growth along Action Plan 2025 Next key events to watch R&D • Continued >15% growth of base business (EVOiR&D) efficiency platforms • Significant capacity and value chain expansion for all modalities and sites • New partnerships, important milestones Precision • Multipl
Slide 32: Upcoming important dates
Upcoming important dates Financial calendar 2023 Preliminary FY 2022 results 28 March 2023 Full year 2022 report 25 April 2023 Quarterly Statement Q1 2023 10 May 2023 Virtual Annual General Meeting 2023 20 June 2023 Half-year 2023 Interim Report 09 August 2023 Quarterly Statement 9M 2023 08 November
Slide 33: Questions and Answers
Slide 34: Your contact: Volker Braun
Your contact: Volker Braun Head of Global Investor Relations & ESG +49.(0).40.560 81-775 +49.(0).40.560 81-333 Fax volker.braun@evotec.com