Evonext Holdings Sa · SIX:EVE
Evonext Holdings Sa — Evolva — FY2020 Earnings Presentation
26 slides from Evonext Holdings Sa's earnings presentation, Feb 25, 2021
Slide 1: FY 2020 Results presentation
FY 2020 Results presentation February 25, 2021
Slide 2: Agenda
Agenda Highlights 4 Strategic priorities 7 Business update 13 Financials 21 Outlook 25 © EVOLVA 2021 FY 2020 RESULTS PRESENTATION 25 February 2021 2
Slide 3: Disclaimer
Disclaimer The shares of Evolva Holding (“Evolva”) are traded on the SIX Swiss Stock 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
Slide 4: Highlights
Highlights © EVOLVA 2021 FY 2020 RESULTS PRESENTATION 25 February 2021 4
Slide 5: Significant increase in customer demand for Health Ingredients and product expansion
Significant increase in customer demand for Health Ingredients and product expansion • Total order intake exceeded CHF 10m for the first time (+71% over 2019 with an order backlog of CHF 3.6m) with market gains across segments. Strong momentum in Health Ingredients with growing demand for resveratro
Slide 6: FY 2020 Highlights
FY 2020 Highlights EBITDA Product revenue 0 Cash -5 CHF 6.5m, +18% -10 CHF 19.7m -15 -12.3 Order backlog of CHF 3.6m -20 -16.7 -14.1 Available unused financing -18.4 (at the end of December 2020) EB ITDA r eported EB ITDA p roduct-based lines of CHF 14m FY 2020 FY 2019 Accelerated order momentum pos
Slide 7: Strategic priorities
Strategic priorities © EVOLVA 2021 FY 2020 RESULTS PRESENTATION 25 February 2021 7
Slide 8: On track to achieve strategic mid-term targets
On track to achieve strategic mid-term targets Sustainable innovation Productivity Profitable growth • Registered nootkatone with • Planned updates of CMO • Successfully leveraged EPA as first novel active network completed market segment-specific • Launched L-arabinose • Scaling up of manufacturing
Slide 9: Move towards a commercial company with a product-based revenue model
Move towards a commercial company with a product-based revenue model Revenue FY 2019 Revenue FY 2020 0.6 0.4 4.1 5.5 Growth 6.5 product revenues 2 Product Revenue R&D revenue (excl. BARDA) BARDA revenue Product Revenue R&D revenue (excl. BARDA) BARDA revenue 47% product-based revenues (CHF 5.5m); 87
Slide 10: Attractive addressable markets across products
Attractive addressable markets across products Market share 4 High Nootkatone, F&F 3 (7/12-15%) Medium Resveratrol, Health Ingredients (60/+10%) 2 Low Valencene, F&F (16/12-15%) Vanillin, F&F 1 (48/6-7%) Market yet L-Arabinose, F&F (F&B) / Health Ingredients to be opened (ca. 250/>5%) Nootkatone, He
Slide 11: Progress in scaling-up manufacturing to support future growth at positive product margins
Progress in scaling-up manufacturing to support future growth at positive product margins “Initial” CMO “Commercial-scale” CMO Recurring Recurring Commercial Business segment Product Revenue model Development Scale up Scale up manufacturing manufacturing sales Flavors & Valencene Product sales ü ü ü
Slide 12: Evolva focused on overcoming manufacturing and supply chain challenges in 2021
Evolva focused on overcoming manufacturing and supply chain challenges in 2021 Challenges Measures • COVID-19 ü Finding effective modus operandi with • Integration and setting up of new CMOs during pandemic manufacturing equipment to support ü Hired leader for Operations function with significant gr
Slide 13: Business update
Business update © EVOLVA 2021 FY 2020 RESULTS PRESENTATION 25 February 2021 13
Slide 14: Our key business segments
Our key business segments FLAVORS & FRAGRANCES HEALTH INGREDIENTS HEALTH PROTECTION We provide nature-based flavors and We provide nature-based dietary We offer nature-based products with fragrances’ ingredients such as supplements’ ingredients that can high efficacy that can protect health- nootkat
Slide 15: Flavors and Fragrances: Lower demand related to COVID-19 impact
Flavors and Fragrances: Lower demand related to COVID-19 impact New product variant: • Lower sales growth related to the pandemic, Valencene 94% is especially for applications in beverages and fine Evolva’s highest purity fragrances. Situation expected to continue at least natural valencene meeting
Slide 16: Health Ingredients saw significant uptake in customer demand
Health Ingredients saw significant uptake in customer demand New product variant: • Growing demand for resveratrol, which has been boosted by the pandemic due to different tangible Veri-te Aqua™ is a soluble resveratrol health benefits demonstrated in clinical studies addressing market needs • With
Slide 17: L-Arabinose, a natural sugar blocker and reducing sugar
L-Arabinose, a natural sugar blocker and reducing sugar • L-Arabinose is a natural sugar blocker for application in food and • Made by fermentation beverages. Studies show that L-arabinose as a sugar blocker can • Fully renewable and support healthy blood sugar levels and weight management. sustaina
Slide 18: L-Arabinose mode of action as a sugar blocker: Inhibition of sucrase
L-Arabinose mode of action as a sugar blocker: Inhibition of sucrase¹ Studies demonstrated that L-arabinose selectively inhibits intestinal sucrase activity – Resulting in lower levels of glucose in the blood after sucrose ingestion Lower levels of Sucrose Fructose Glucose Glucose glucose in the Suc
Slide 19: Health Protection: US EPA registration of nootkatone as a novel active ingredient
Health Protection: US EPA registration of nootkatone as a novel active ingredient Nootkatone is an ingredient • US EPA registration of nootkatone in August pivotal step found in minute quantities in the on this product’s regulatory path bark of the Alaska yellow cedar and in the skin of grapefruit.
Slide 20: Other products: Royalty income from EVERSWEET expected to grow over time
Other products: Royalty income from EVERSWEET™ expected to grow over time EVERSWEET™ is a calorie- • Evolva receives royalty payments on all EVERSWEET™ sales free stevia sweetener. Not only does it deliver a high-quality • The first commercial-scale production of EVERSWEET™ sweetness profile, it’s a
Slide 21: Financials
Financials © EVOLVA 2021 FY 2020 RESULTS PRESENTATION 25 February 2021 21
Slide 22: Key Figures
Key Figures 1) Including extraordinary FY 2020 FY 2020 FY 2019 FY 2019 costs related to delays in in CHF million Reported Product-based Reported Product-based manufacturing of CHF 2.9m Order backlog 3.6 3.6 0.4 0.4 2) Increase of DTRA accrual by CHF 0.7m Product revenue 6.5 6.5 5.5 5.5 3) Capitalize
Slide 23: Product-based EBITDA excluding extraordinary costs significantly improved
Product-based EBITDA excluding extraordinary costs significantly improved Product-based EBITDA in CHF million excl. extraordinary costs -12,3 6,1 -14,1 2,9 4,3 0,7 1,0 -16,7 -18,4 FY 2019 FY 2019 FY 2019 Organizational FY 2020 Costs Increase of FY 2020 FY 2020 Reported EBITDA Product- efficiencies P
Slide 24: Operating free cash flow in line with guidance
Operating free cash flow in line with guidance FY 2020 FY 2019 in CHF million Reported Reported Cash position at beginning 39.9 60.4 Cash flow from operating activities -23.4 -11.51) Cash flow from investing activities -5.6 -8.12) Cash flow from financing activities 8.83) -0.9 Cash position end of p
Slide 25: Outlook
Outlook © EVOLVA 2021 FY 2020 RESULTS PRESENTATION 25 February 2021 25
Slide 26: 2021 Outlook
2021 Outlook As the pandemic continues, the guidance assumes there will not be a return to normal for most of the year. Evolva expects ongoing growing demand for Health Ingredients, but sluggish demand in Flavors and Fragrances. Supply volumes are expected to gradually increase in the course of 2021