Slide 1: Multimodality = More Opportunity
Multimodality = More Opportunity Evotec SE, First quarter 2020 results, 14 May 2020
Slide 2: Forward-looking statement
Forward-looking statement 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 sta
Slide 3: Welcome: The Management Team
Welcome The Management Team Werner Lanthaler Enno Spillner Craig Johnstone Cord Dohrmann CEO CFO COO CSO PAGE 2
Slide 4: #Researchneverstops: Mastering COVID-19
#Researchneverstops Mastering COVID-19 What is paramount in this situation Protect Respect Focus Help Involved in multiple activities to combat COVID-19 NIH-led initiative Accelerating COVID-19 Therapeutic Interventions and Vaccines (“ACTIV”) “COVID R&D”, global initiative, leading repurposing w
Slide 5: Agenda
Agenda Highlights Financial performance Q1 2020 Scientific and operational performance Q1 2020 Guidance 2020 PAGE 4
Slide 6: Our mission is more relevant than ever before
Our mission is more relevant than ever before Our long-term mission in drug discovery and development We design and apply innovative technologies and processes across all modalities. We want to expand access to more precise and effective medicines together with our partners. Manfred Eigen Nobel Priz
Slide 7: Strong start into 2020
Strong start into 2020 Q1 highlights Multiple new and extended drug discovery and development agreements on all platforms Entering gene therapy through establishing Evotec GT and alliance with Takeda Just – Evotec Biologics on track; J.POD® on track Further programme from multi-target allian
Slide 8: Guidance on track
Guidance on track Financials Q1 2020 & FY 2020 Guidance1) Good financial performance Guidance - Confirmed (despite: COVID-19; loss of Sanofi subsidy; Increase of revenues by 15% to ramping up J.POD® capacities) € 119.4 m (Q1 2019: € 103.8 m) Total Group revenues € 440 – 480 m Adjusted EBITDA2)
Slide 9: Multimodality = More Opportunities
Multimodality = More Opportunities Small molecules, Biologics, Cell & Gene therapy in R&D Global pharmaceutical market1), 2) in bn USD CAGR 2017-22e +7% 918 856 >50% 794 743 670 703 8% Cell & Gene Tx Biologics Small molecules 5% 2017 2018 2019 2020e 2021e 2022e PAGE 8 1) Small molecules forecast fro
Slide 10: Agenda
Agenda Highlights Financial performance Q1 2020 Scientific and operational performance Q1 2020 Guidance 2020 PAGE 9
Slide 11: Continued growth despite slow start of milestones
Continued growth despite slow start of milestones Condensed income statement Q1 2020 – Evotec Group in € m1) Q1 2020 Q1 2019 % vs. 2019 Revenue driven by strong Revenues from contracts with customers 119.4 103.8 15% performance in base business across all business Gross margin 27.9% 30.5% – lines,
Slide 12: Strong base business and gross margin
Strong base business and gross margin Revenues & Gross margin overview Q1 2020 Revenues from contracts with Gross margin1) Strong base customers (in € m) (in %) revenue growth, in Base revenues Milestones/upfronts/licences Total Margin Margin excl. milestones/upfronts/ particular in biology licenc
Slide 13: Both segments with strong performance
Both segments with strong performance Segment information Q1 2020 – Evotec Group in € m1) Inter- Not EVT EVT segment- allocated Evotec Increase of 18% in Execute Innovate elimination (IFRS 15)3) Group EVT Execute reflects strong base business Revenues 118.2 23.3 (26.3) 4.1 119.4 growth Revenue g
Slide 14: Strong balance sheet and liquidity position
Strong balance sheet and liquidity position Balance sheet and liquidity – 31 March 2020 versus 31 Dec. 2019 Balance sheet total Equity Ratio Strong liquidity in € m in % position Strong balance sheet total 1,180.9 1,183 40.5 41.4 Equity ratio remains strong Conservative Net Debt ratio of 1.1
Slide 15: Agenda
Agenda Highlights Financial performance Q1 2020 Scientific and operational performance Q1 2020 Guidance 2020 PAGE 14
Slide 16: Important strategic expansion on many fronts
Important strategic expansion on many fronts EVT Execute – Major achievements Q1 2020 Important step into gene therapy and long- term research alliance with Takeda New integrated agreement with Amgen Strategic INDiGO collaboration with Ildong Pharmaceutical Co., Ltd. Very good start for Just
Slide 17: Well-balanced global customer mix
Well-balanced global customer mix EVT Execute – Selected KPIs Q1 2020 Revenues by customer Customer type YTD1) Revenues by region YTD1) segment YTD1) (in %) (in %) (in %) 100% 100% 100% Mid-sized Rest of World 4% Pharma 15% Foundation/ Remaining 34% 7% USA NFP/ 40% Academic Biotech 48% Top 11-30 23%
Slide 18: Expanding the multimodality Autobahn
Expanding the multimodality “Autobahn” Establishing Gene Therapy Evotec GT – Gene Therapy Strong leadership team with acknowledged expertise in gene therapy Extensive disease insights and expertise in gene therapy applications for hemophilia, hematology, metabolic and muscle diseases World-cla
Slide 19: J.POD – The Biologics Facility of the Future
J.POD® – The Biologics Facility of the Future J.POD® – relatively low CAPEX and primary OPEX-driven manufacturing Just – Evotec Biologics and MSD enter collaboration around facility of the future (Jan 2020) QC Lab Utilities Mechanical Warehouse Support J.POD® Manufacturing Administration Fixed Varia
Slide 20: First J.POD facility – exterior complete
First J.POD® facility – exterior complete J.POD® – construction progress Clinical & commercial facility for biologics. Building size: 130,000 SF1) May 2020 PAGE 19 1) Approx. 12,100 qm2
Slide 21: Continued expansion of iPSC leadership
Continued expansion of iPSC leadership EVT Innovate – Major achievements Q1 2020 Good pipeline progress, e.g. new clinical entries with Bayer, Exscientia, NIH Regained rights to beta cell replacement therapy – “QRbeta Therapeutics” initiative (after period-end) Expansion of iPSC-based cell the
Slide 22: Fully invested pipeline, gaining visibility
Fully invested pipeline, gaining visibility Partnership portfolio pre-clinical and clinical Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III EVT201 CNS – Insomnia BAY-1817080 Chronic cough Backup 1817080 Chronic cough CT7001 Oncology CT7001 Oncology EVT4
Slide 23: >100 discovery projects are progressing rapidly
>100 discovery projects are progressing rapidly Partnership research and discovery portfolio Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III 1) Various ND Nephrology ND1) Nephrology 1) ND PCOS ND1) PCOS INDY inhibitor Metabolic Various Oncology ND1) Onc
Slide 24: Development of beta cell therapy product
Development of beta cell therapy product Despite successful pre-clinical development project returns to Evotec Start of 1st 2nd 3rd Sanofi Evotec collaboration Milestone Milestone Milestone strategy regains with Sanofi update rights In vivo func- In vivo func- In vivo func- Sanofi an- Sanofi and tio
Slide 25: Durable normalisation of blood glucose levels
Durable normalisation of blood glucose levels iPSC-derived beta cells in diabetic animal PoC study Sustained normoglycemia Normoglycemia achieved upon vascularisation Circulating human insulin levels are consistent with full glucose control1) Random-fed blood glucose in diabetic mice 600 5
Slide 26: Paradigm shift to provide a cure
Paradigm shift to provide a cure Current insulin therapy versus beta cell therapy Old Paradigm New paradigm Insulin therapy Beta cell therapy Insulin injections Beta cell implant or infusion Therapy dominates daily life Significant improvement in quality Glucose measurements of life Hypoglyc
Slide 27: Beta cell therapy - the new standard of care
Beta cell therapy - the new standard of care Off-the-shelf iPSC-derived beta cells iPSC1)-derived Tremendous therapeutic & commercial opportunity beta cells Potential to develop a cure for insulin-dependent diabetic patients 1 “Edmonton protocol”2) provides unique clinical PoC Attractive for b
Slide 28: Non-encapsulated beta cells will be next
Non-encapsulated beta cells will be next Enabled by enhanced iPSC lines – panCELLa1) Cloaking Genetic modifications to prevent rejection by the CTLA4-Ig host immune system (auto- and allo-immunity) T-cells Avoids the need for immunosupressants or immunoisolating device NK-cells HLA-G Examples fo
Slide 29: Disruption of one of the biggest healthcare markets
Disruption of one of the biggest healthcare markets Market potential for treatment of insulin-dependent diabetes Insulin-dependent diabetes is Three major players high and rising globally1) Novo Nordisk, Eli Lilly, Sanofi and many followers3) ~ $ 30 bn market in 20182) 578 million diabetes pat
Slide 30: Co-owned pipeline of equity holdings is expanding
Co-owned pipeline of equity holdings is expanding Equity participations Equity Equity Spin-off Equity Equity Equity Consortium Equity participation participation participation participation participation membership participation Nanoparticle- Facioscapulo- Metabolic based Targeting Innovative Fibros
Slide 31: Agenda
Agenda Highlights Financial performance Q1 2020 Scientific and operational performance Q1 2020 Guidance 2020 PAGE 30
Slide 32: Experts strengthen long-term vision
Experts strengthen long-term vision New appointments Friedrich Scheiflinger 30+ years of GT experience with Baxter, Baxalta, Shire, Takeda EVP Head of Strong science background in hematology, LSDs and gene therapy Gene Therapy Markus Dangl 19 years experience in leading oncology projects at e.
Slide 33: On track to master also pandemic challenges
On track to master also pandemic challenges Guidance 2020 Good top- Total Group revenues expected to range from € 440 – 480 m, despite 1 line growth loss of € 20 m subsidy from Sanofi, and certain COVID-19 challenges1) Adjusted Group EBITDA2) expected to be in the range of € 100 – 120 m, at comparab
Slide 34: Upcoming important dates
Upcoming important dates Financial calendar 2020 Annual Report 2019 26 March 2020 Quarterly Statement Q1 2020 14 May 2020 Virtual Annual General Meeting 20201) 16 June 2020 Half-year 2020 Interim Report 12 August 2020 Quarterly Statement 9M 2020 12 November 2020 PAGE 33 1) Invitation went out on May
Slide 35: Your contact
HRESEARCHNEVE ASTOPS
Slide 36: Your contact: Dr Werner Lanthaler
Your contact: Dr Werner Lanthaler Chief Executive Officer +49.(0).40.560 81-242 +49.(0).40.560 81-333 Fax werner.lanthaler@evotec.com