Slide 1: Profitable growth & First-in-class science
EVT Execute & EVT Innovate Profitable growth & First-in-class science Evotec AG, First Quarter 2016 Results, 10 May 2016
Slide 2: Forward-looking statements
Forward-looking statements Information set forth in this presentation contains forward-looking statements, which involve a number of risks and uncertainties. The forward-looking statements contained herein represent the judgement of Evotec as of the date of this presentation. Such forward-looking st
Slide 3: Agenda
Agenda Highlights Q1 2016 EVT Execute EVT Innovate Financial performance and outlook PAGE 2
Slide 4: Strong start into the year: Highlights & lowlights Q1 2016
Strong start into the year Highlights & lowlights Q1 2016 EVT Execute EVT Innovate Corporate Lowlights Accelerated growth in Good progress in Cure X/ Company formation and Phase out of EVT100 in base business Target X programmes “Series A” funding of TRD1) by Janssen Topas Therapeutics Pharm
Slide 5: Best first quarter in Company's history
Best first quarter in Company’s history Financial highlights Q1 2016 & Guidance 2016 Improved financial performance Confirmed Guidance 2016 Group revenues up 74% to € 37.5 m More than 15% revenue growth excluding (2015: € 21.5 m) milestones, upfronts and licences EVT Execute revenues up 67%
Slide 6: Business model works: EVT Execute & EVT Innovate
Business model works EVT Execute & EVT Innovate PAGE 5
Slide 7: Agenda
Agenda Highlights Q1 2016 EVT Execute EVT Innovate Financial performance and outlook PAGE 6
Slide 8: Accelerated growth in base business
Accelerated growth in base business EVT Execute – First quarter of 2016 Important milestone achievement in Padlock collaboration Multi-year compound management agreement closed with Pierre Fabre (after period-end) Milestone achievement in Bayer collaboration (after period-end) Good progress
Slide 9: Above market performance: EVT Execute KPIs Q1 2016
Above market performance EVT Execute – Key performance indicators Q1 2016 Revenues Adjusted EBITDA1) Q1 2016 includes € 7.5 m of (in € m) (in € m) intersegment revenues 38.6 9.6 Revenue growth driven by strong performance of the base business, milestone achievement +67% from the Padlock collabor
Slide 10: Well balanced customer mix
Well balanced customer mix EVT Execute – Selected customer and revenue metrics Revenues by customer Customer type ytd 2016 Revenues by region ytd 2016 segment ytd 20161) (in %) (in %) (in %) Mid-sized 100% ROW 1% 100% Remaining 7% 100% Pharma 9% 16% Foundations 19% Top 10-30 USA 47% Customers Biotec
Slide 11: New strategic compound management alliances
New strategic compound management alliances EVT Execute – World leader in outsourced compound management • Multi-year compound management agreement with Pierre Fabre Laboratories, the 2nd largest private French pharmaceutical group (2016, after period-end) • Multi-year sample management agreement wi
Slide 12: Outlook 2016: EVT Execute expected key milestones
Outlook 2016 EVT Execute – Expected key milestones 2016 New long-term deals with large and mid-sized Pharma Expansion of foundations and biotech network in USA/EU New performance-based integrated technology/disease alliance Milestones from existing alliances PAGE 11
Slide 13: Agenda
Agenda Highlights Q1 2016 EVT Execute EVT Innovate Financial performance and outlook PAGE 12
Slide 14: First-in-class Cure X/Target X strategy
First-in-class Cure X/Target X strategy EVT Innovate – First quarter of 2016 Grant from The Michael J. Fox Foundation for Parkinson’s Research DIABETES & Good progress in existing NEUROSCIENCE COMPLICATIONS partnerships (e.g. EVT201, EVT801 and other Sanofi oncology projects, kidney disease coll
Slide 15: Strong revenue growth reflects new partnerships
Strong revenue growth reflects new partnerships EVT Innovate – Key performance indicators Q1 2016 Revenues Adjusted EBITDA1) R&D expenses (in € m) (in € m) (in € m) +67% 6.4 4.6 4.9 3.8 (2.4) (3.8) Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Strong revenue growth and improved EBITDA due to new
Slide 16: Constantly growing pipeline of product opportunities
Constantly growing pipeline of product opportunities EVT Innovate – Partnership portfolio Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III 1) EVT302 CNS – Alzheimer’s disease EVT201 CNS – Insomnia Clinical EVT1001) CNS – Depression EVT401 Immunology & In
Slide 17: Important data points within oncology portfolio
Important data points within oncology portfolio EVT Innovate – Oncology portfolio Hit finding/ Lead Pre-clinical Project Target ID Hit-to-Lead optimisation development Phase I Advanced EVT7011) projects EVT8012) EVT6013) Early Immunotherapy 3 projects Microenvironment 1 Microenvironment 2 TargetImmu
Slide 18: More than 10 projects primed for partnering
More than 10 projects primed for partnering EVT Innovate – Cure X/Target X 2011 2012 2013 2014 2015 2016 CureBeta CureNephron TargetImmuniT TargetBCD TargetFRX TargetaSN (Harvard Stem (Harvard, BWH, (Apeiron/Sanofi) (Sanofi) (Internal) (MJJF) Cell Institute) USC, AstraZeneca) TargetDBR TargetDR Targ
Slide 19: Driving value of hidden assets: Topas Therapeutics
Driving value of hidden assets – First-in-class approach for tolerance induction Topas Therapeutics: An Evotec spin-off company Topas Therapeutics GmbH is focused on the development of novel tolerizing particles for immune-mediated diseases using proprietary NdL® nanotechnology platform Use of n
Slide 20: Outlook 2016: EVT Innovate expected key milestones
Outlook 2016 EVT Innovate – Expected key milestones 2016 New clinical initiations and good progress of clinical pipeline within partnerships Expansion of network of top-class academic alliances Partnering of Cure X/Target X initiatives Strong focus on iPSC (induced pluripotent stem cells) pl
Slide 21: Agenda
Agenda Highlights Q1 2016 EVT Execute EVT Innovate Financial performance and outlook PAGE 20
Slide 22: Group revenues +74%, higher gross margin
Group revenues +74%, higher gross margin Key financials Q1 2016: Condensed income statement (IFRS) in € m Q1 2015 Q1 2016 % vs. 2015 Revenue increase Revenues 21.5 37.5 74% mainly driven by strong performance Gross margin 28.0% 33.3% – of the base business, milestone R&D expenses (3.8) (4.4) 14%
Slide 23: Strong revenue growth in EVT Execute and increased investments in EVT Innovate
Strong revenue growth in EVT Execute and increased investments in EVT Innovate Condensed segment information for Q1 2016 in € m Inter- EVT EVT segment Evotec Strong revenue growth Execute Innovate elimination Group and improved EBITDA for both segments External revenues 31.1 6.4 – 37.5 Increased
Slide 24: Strong performance of base business
Strong performance of base business Revenues & Gross margin – Q1 2016 versus prior-year period Revenues increased due to growth in base Gross margin reflects growth in base revenues across all business units1) revenues and improved capacity utilisation in € m in € m Total Margin Margin excl. milesto
Slide 25: Clear strategy for both segments
Clear strategy for both segments Segment overview – Q1 2016 versus prior-year period Revenues (in € m) Gross margin (in %) EVT Execute EVT Innovate EVT Execute EVT Innovate 38.6 46.1 43.7 23.1 26.1 22.6 3.8 6.4 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1 2016 R&D expenses (in € m) Adj
Slide 26: Thank you Colin! – Welcome Monika and Enno!
Thank you Colin! – Welcome Monika and Enno! Management Board update & Strengthening of Global HR capacities Long-term extension of New CFO New Global Head of Human Management Board contracts Resources Extension of the contract of Dr Werner Lanthaler as CEO for another five years to 2021 Extensio
Slide 27: Long-term Management commitment, New shareholders, Exit of last VC
Long-term Management commitment, New shareholders, Exit of last VC Management & shareholder structure ̴13% Roland Management Board Supervisory Board ̴ 3% DAMI1) Oetker/ROI Werner Lanthaler (CEO) Wolfgang Plischke Long-time experience in Ex-Bayer ̴ 3% AGI2) Pharma & biotech Bernd Hirsch Mario
Slide 28: Strong revenue growth and accelerated innovation: Guidance 2016 confirmed
Strong revenue growth and accelerated innovation Guidance 2016 confirmed Double- More than 15% Group revenue growth excluding milestones, 1 digit top- upfronts and licences line growth Profitable Adjusted Group EBITDA1) positive and significantly improved and strong 2 liquidity compared to 2015
Slide 29: 'RESEARCH NEVER STOPS'
‘RESEARCH NEVER STOPS’