Evotec Se · XETR:EVT
Evotec — Berenberg USA Conference 2018
34 slides from Evotec's conference presentation, May 22, 2018
Slide 1: Evotec – Leading external innovation
Evotec – Leading external innovation Evotec AG, Company Presentation, Berenberg USA Conference 2018, Tarrytown, 22 May 2018
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: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 2
Slide 4: Leading external innovation to accelerate new drugs
Leading external innovation to accelerate new drugs Evotec at a glance Evotec delivers a fast growing and profitable drug discovery and development business to Pharma, biotech and foundations Evotec and its partners are progressing a pipeline of >80 co-owned first-in-class projects in major indi
Slide 5: The macro trend in R&D productivity is just starting
The macro trend in R&D productivity is just starting Market dynamics in external innovation Key growth drivers Macro trend in R&D outsourcing Market overview – Revenues, in € bn Capital efficiency 5-10% p.a. ~33 Switch from fixed costs to 28 ~30 variable business models 25 20 22 17 Capital elasticit
Slide 6: R&D holds great potential for further outsourcing
R&D holds great potential for further outsourcing R&D outsourcing market by stage in € bn ~30-36 ~85-90 ~10 ∑ ~ € 130 bn 100% 80% 5 Not 55 ~7 (~50%) outsourced (~60%) 60% ~25 (~70%) (~90%) 40% 5 35 Outsourced 20% ~3 (~50%) (~40%) (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Discove
Slide 7: "One stop partner" for external innovation
“One stop partner” for external innovation Evotec’s integrated offering and core competences along the value chain Pre- Hit- Lead Target ID/ clinical identi- optimi- IND Phase I Phase II Phase III Approval Market validation Tox fication sation testing Evotec offers end-to-end platform solutions incl
Slide 8: Consequent and fast forward – AP 2022
Consequent and fast forward – AP 2022 “Action Plan 2022 – Leading External Innovation” 2022 2018 2012 2009 No 1 external innovation partner in drug Business segmentation discovery and development for Pharma, Investments to build a world-class biotech and foundations Restructuring service pla
Slide 9: Unique disease expertise coming together
Unique disease expertise coming together Global footprint – Evotec’s centres of excellence Hamburg (HQ), Abingdon, Toulouse, Verona (Italy), Princeton, Göttingen, Alderley Park (France) Basel (CH) Watertown, Munich (Germany) (UK) Branford (USA) ~530 employees ~640 employees ~365 employees ~610 emplo
Slide 10: ONE stop-shop for external innovation
ONE stop-shop for external innovation The business model – EVT Execute & EVT Innovate PAGE 9
Slide 11: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 10
Slide 12: No 1 in quality and R&D efficiency
No 1 in quality and R&D efficiency EVT Execute – Comprehensive integrated service offering PAGE 11
Slide 13: Integrated and systematic working on all modalities
Integrated and systematic working on all modalities M&A/Capabilities upgrade along the value chain since 2010 Biological validation Technological validation Disease relevance & production Target ID/ Compound Assay Screening & Lead Pre-clinical High-end CMC1) validation management development Proteom
Slide 14: Strong organic and inorganic growth
Strong organic and inorganic growth EVT Execute – Key performance indicators Q1 2018 in € m Revenues1) Adjusted EBITDA2) Increase in EVT Execute revenues mainly 78.5 17.2 attributable to growth in 9.9 the base business and +38% +62% three months Aptuit 12.4 contribution 48.6 9.6 Significant upsw
Slide 15: Very healthy customer base
Very healthy customer base EVT Execute – Selected KPIs Q1 2018 in % Revenues by customer segment ytd1) Customer type ytd1) Revenues by region ytd1) 100% 100% 100% Mid-sized 9% RoW 2% Remaining 15% 15% 3% Pharma 12% Top 11-30 41% Foun- 9% 19% USA 43% 38% customers dations Biotech 35% 39% 19% Top 10 l
Slide 16: Clear targets, strong outlook for 2018
Clear targets, strong outlook for 2018 EVT Execute – Expected key milestones 2018 New long-term alliances integrating the offering of Aptuit, strategic launch of INDiGO New performance-based integrated technology/disease alliances Expansion of foundations and biotech network in USA/Europe Mi
Slide 17: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 16
Slide 18: Addressing major market needs
Addressing major market needs EVT Innovate – Fields of core expertise NEURONAL DIABETES & FIBROSIS RESPIRATORY DISEASES COMPLICATIONS Market potential Market potential Market potential Market potential > € 100 bn > € 500 bn > € 500 bn > € 100 bn PAIN ONCOLOGY ANTI- INFECTIVES Market potential Market
Slide 19: Superior platforms and targets
Superior platforms and targets EVT Innovate – Initiatives PAGE 18
Slide 20: >80 co-owned projects
>80 co-owned projects Co-owned portfolio Co-owned Co-owned Co-owned Value chain Discovery Pre-clinical Clinical > 50 projects > 25 projects > 10 projects Ø € 1-10 m upfront Ø € 150 m mile- Ø Commercials and substantial Ø 8% royalties stones per project research payments Partners PAGE 19
Slide 21: Fully invested co-owned pipeline
Fully invested co-owned pipeline Partnership portfolio Molecule Therapeutic Area / Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia EVT401 Immunology & Inflammation ND1) Oncology ND1) Oncology Clinical Various Women’s health – Endometriosis Various Women’s health – En
Slide 22: One big effort for the benefit of many
One big effort for the benefit of many Sanofi & Evotec – Transaction expected to close in H1 2018 Pipeline-building collaboration in infectious diseases (ID) Strong and diverse portfolio of > 10 research & early-stage development projects licensed from Sanofi to Evotec (EVT Innovate) – Sanofi will r
Slide 23: Strong progress in first-in-class alliances
Strong progress in first-in-class alliances Examples Chronic kidney disease (“CKD”) Immuno-oncology Highly innovative therapeutics in diabetic Small molecule-based cancer immunotherapies complications (e.g. CKD) to complement checkpoint inhibitors (together with APEIRON Biologics) Commercials1) Comm
Slide 24: Global leadership in iPSC
Global leadership in iPSC Strong focus on iPSC1) platform “IPS cells can become a power- Disease-specific drugs ful tool to develop new drugs to cure Screening intractable di- Patient seases because they can be made from patients’ somatic cells.” Disease Patient- in a dish specific Shinya iPSCs Yama
Slide 25: Paradigm shifts in neurodegeneration and diabetes
Paradigm shifts in neurodegeneration and diabetes iPSC – Alliances; Progress overview iPSC alliance in neurodegeneration iPSC alliance in diabetes Development of novel therapies for a broad range of Development of beta cell replacement therapy and drug neurodegenerative diseases discovery based on f
Slide 26: Building BRIDGEs over the "Valley of death"
Building BRIDGEs over the “Valley of death“ The funding gap Basic Applied Technology Development Product Commercialisation Market Entry Research Research and Demonstration and Market Development and Market Volume Public Market Funding Level Pension Plan Project Governments Finance Funding Gap Banks/
Slide 27: First-in-class innovation via co-investment strategy
First-in-class innovation via co-investment strategy Innovative building & investing Participation in financing rounds, built on Evotec’s Panion Ltd/ platforms, via strategic investments Fibrocor Tx Approx. € 22 m investments in 2017; long-term commitments with payback horizon > 5 years Attrac
Slide 28: Just the beginning for EVT Innovate
Just the beginning for EVT Innovate EVT Innovate – Expected key milestones 2018 New clinical initiations and good progress of clinical pipeline within existing partnerships Expansion of academic BRIDGE network Strong R&D progress within Cure X/Target X platforms and new Innovate partnerships
Slide 29: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 28
Slide 30: Strong performance continues – "3x30"
Strong performance continues – “3x30” Financial history 2014-2018 (e) – Selected performance indicators Total Group revenues (in € m) R&D expenses (in € m) 257.6 18.3 18.1 17.6 164.5 12.7 127.7 89.5 2014 2015 2016 2017 2018(e) 2014 2015 2016 2017 2018(e) Adjusted Group EBITDA (in € m) Gross margin1)
Slide 31: EVT Execute & EVT Innovate right on strategy
EVT Execute & EVT Innovate right on strategy Segment information Q1 2018 – Evotec AG and subsidiaries in € m1) Inter- EVT EVT segment Evotec Revenue growth in EVT Execute Execute Innovate elimination Group driven by performance in the base business and contribution from Revenues 78.5 10.4 (9.9) 79
Slide 32: Strong team and shareholders for innovation
Strong team and shareholders for innovation Management & shareholder structure ̴ 9% Roland ̴ 5% AGI2) ̴ 5% DAMI3) Oetker/ROI Management Board Supervisory Board ̴ 5% Goldman Werner Lanthaler (CEO) Wolfgang Plischke Sachs Long-time experience in Ex-Bayer Pharma & biotech Bernd Hirsch Enno Spil
Slide 33: "3x30" – Strong growth and profitability expected
“3x30” – Strong growth and profitability expected Guidance 2018 Double- 1 digit top- More than 30% Group revenue growth line growth Profitable 2 Adjusted Group EBITDA1) expected to improve by approx. 30% and growing Focused 3 Group R&D expenses of € 20-30 m investments PAGE 32 1) Before contin
Slide 34: 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