Slide 1: Evolva Full-year 2022 results presentation
Evolva Full-year 2022 results presentation 09 March 2023 Christian Wichert, CEO Carsten Däweritz, CFO
Slide 2: Disclaimer
Disclaimer The shares of Evolva Holding (“Evolva”) are traded on the SIX Swiss 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", "as
Slide 3: Agenda
Agenda 1. Business highlights Christian Wichert 2. FY 2022 financial results Carsten Däweritz 3. Outlook 2023 and beyond Christian Wichert © Evolva 2023 – FY 2022 results – 09 March 2023 3
Slide 4: Financial highlights: strong revenue growth, positive double digit gross contribution
Business highlights Financial highlights: strong revenue growth, positive double digit gross contribution, substantial progress on EBITDA Total revenues: Gross contribution margin of 16.0% Cash at end of Dec: CHF 15.5 million CHF 5.1 million (+57%) (-59% in FY 2021) Profitability Revenues Liquidity
Slide 5: Strong product-related revenue growth of +62% vs. 2021
Business highlights Strong product-related revenue growth of +62% vs. 2021, driven by initial focus on Flavors & Fragrances in 2022 Product-related revenues (CHF million) +62%1 Comments: • Highest-ever revenue level in FY 2022 of +40% CHF 15.5 million, with +57% fully achieving our target +18% +62%
Slide 6: Gross contribution margin turned positive and double-digit
Business highlights Gross contribution margin turned positive and double-digit, with 16% in line with full year guidance; 2H 2022 even at 22% Half-yearly development of gross contribution margin (in %) 22 Key drivers: 20 11 • Strengthened relationships -5 with our CMO network partners • Cost improve
Slide 7: Immediate levers remain in place, expanding the focus towards HI and HP
Business highlights Immediate levers remain in place, expanding the focus now towards HI and HP and to accelerate profitable growth Immediate focus on 3 levers Achievements in 2022 Next steps ➢ Initial focus in 2022 was set on F&F ➢ Expand focus to Health Ingredients Boost commercial • CMO network s
Slide 8: Evolva is active in three promising business areas
Business highlights Evolva is active in three promising business areas Core business areas today Developing business Business Flavors & Fragrances (F&F) Health Ingredients (HI) Health Protection (HP) Nature-based ingredients for F&F Nature-based ingredients for dietary Nature-based products with hig
Slide 9: Flavors & Fragrances: sales more than tripled with growth of +265%
Business highlights Flavors & Fragrances: sales more than tripled with growth of +265% in FY 2022, mainly driven by Vanillin Sales (CHF million) Main developments 2022 Key drivers 2023 +265% • Initial focus to boost commercial • Positive momentum continues performance on F&F • Vanillin volumes expec
Slide 10: Natural Nootkatone allows to target additional customers especially in Europe
Business highlights Natural Nootkatone allows to target additional customers especially in Europe, addressing naturality & sustainability • A new fully natural flavor, with a distinct citrus and woody profile that fuels the bitter note in citrus and grapefruit flavor • Allows to capture broad opport
Slide 11: Health Ingredients: managed for profitability in 2022
Business highlights Health Ingredients: managed for profitability in 2022; next focus area to boost commercial performance Sales (CHF million) Main developments 2022 Key drivers 2023 • Anne De Vos appointed Chief Commercial • Recruiting of new commercial team for HI +46% -32% in USA and Europe to gr
Slide 12: Entering new market segments to boost Resveratrol sales
Business highlights Entering new market segments to boost Resveratrol sales Planned expansion trajectory Today’s Core Immediate focus Beyond Human Dietary Pet dietary Functional Pet Personal Care Pharma supplements supplements Food & Beverage Veterinarian • “Nutraceuticals” • Similar to human market
Slide 13: goes Responsible Care
goes Responsible Care “TBC” Consumer-oriented, The Beauty Powerhouse concept selling 13 © Evolva 2023 – FY 2022 results – 09 March 2023
Slide 14: Health Protection: market tests in APAC ongoing, support from CDC
Business highlights Health Protection: market tests in APAC ongoing, prominent support for NootkaSHIELDTM in the US from CDC Main developments 2022 Key drivers 2023 • NootkaSHIELDTM approved for use as • New Head of Health Protection insect repellent in Hong Kong and recruited in the US, build a US-
Slide 15: goes Responsible Agriculture, protecting crops, air, soil and water
Business highlights goes Responsible Agriculture, protecting crops, air, soil and water Replacing chemical fertilizers with a Leveraging existing technologies to nature-based alternative enter an attractive, sizeable market • Nitrogen-based fertilization market • Strategic partnership with Grace est
Slide 16: We built a solid foundation, now accelerating profitable growth
Business highlights We built a solid foundation, now accelerating profitable growth 3. Evolution to next level 2. Accelerate • Commercialize product portfolio towards full potential growth • Further broaden product portfolio • Enter new market segments with from innovation pipeline and partners 1. F
Slide 17: Mid-term plan: revenues up to 45-50M and EBITDA/Cash break-even in 2025
Business highlights Mid-term plan expected to accelerate the positive trend with revenues up to 45-50M and EBITDA/Cash break-even in 2025 Key development targets (CHF million) 45-50 Key targets and highlights: • 2022 guidance achieved >30 >20 • Confirming that we are on track with 15.5 mid-term plan
Slide 18: Agenda
Agenda 1. Business highlights Christian Wichert 2. FY 2022 financial results Carsten Däweritz 3. Outlook 2023 and beyond Christian Wichert © Evolva 2023 – FY 2022 results – 09 March 2023 18
Slide 19: Financial highlights: strong revenue growth, positive double digit gross contribution
Business highlights Financial highlights: strong revenue growth, positive double digit gross contribution, substantial progress on EBITDA Total revenues: Gross contribution margin of 16.0% Cash at end of Dec: CHF 15.5 million CHF 5.1 million (+57%) (-59% in FY 2021) Profitability Revenues Liquidity
Slide 20: P&L highlights: Strong product-related revenue growth of 62%
FY 2022 financial results P&L highlights: Strong product-related revenue growth of 62% and improved profitability CHF million FY 2022 FY 2021 adjusted adjusted Revenue from contracts with customers 15.5 9.9 • 62% growth of product-related revenues Product-related revenues 14.8 9.1 Direct production
Slide 21: Key balance sheet items - Assets
FY 2022 financial results Key balance sheet items - Assets CHF million 2022 2021 Assets • Intangible assets reduced through CHF 17.0 Intangible assets 92.6 113.3 million extraordinary impairment of royalty & licenses, patents & patent applications and Property, plant and equipment 5.3 6.0 product &
Slide 22: Key balance sheet items – Equity and liabilities
FY 2022 financial results Key balance sheet items – Equity and liabilities CHF million 2022 2021 Equity and liabilities • Successful capital increase in May 2022 through placement of CHF 6.3 million to several long-term institutional investors, Members of Total equity 106.2 131.8 the Board and Manag
Slide 23: Operating free cash flow
FY 2022 financial results Operating free cash flow CHF million 2022 2021 • Operating activities include CHF 2.2 million increase in Net Working Capital, driven by Cash Flow build-up of finished products inventory in 1H (NWC increase in 1H of 4.8 million, followed by a reduction of CHF 2.6 million in
Slide 24: Agenda
Agenda 1. Business highlights Christian Wichert 2. FY 2022 financial results Carsten Däweritz 3. Outlook 2023 and beyond Christian Wichert © Evolva 2023 – FY 2022 results – 09 March 2023 24
Slide 25: On track to further grow revenues and profitability
Outlook 2023 and beyond On track to further grow revenues and profitability Outlook 2023 Mid-term targets1 ▪ Ongoing positive business momentum ▪ More than CHF 30 million revenues in 2024, ▪ Continued revenue growth to more than CHF 45-50 million in 2025 CHF 20 million at constant currencies vs. ▪ C
Slide 26: Investment highlights
Outlook 2023 and beyond Investment highlights 1. Capitalizing on global megatrends health, wellness, and sustainability 2. Unique precision-fermentation platform with proprietary technology 3. Mid-term plan based on existing products, conservative planning 4. Upside potential from innovation pipelin
Slide 27: Q&A
We are happy to Q&A answer your questions. © Evolva 2023 – FY 2022 results – 09 March 2023 27
Slide 28: Financial Calendar
Financial Calendar Annual General Meeting 18 April 2023 HY 2023 Results 24 August 2023 © Evolva 2023 – FY 2022 results – 09 March 2023 28
Slide 29: Appendix
More detailed information about our full-year Appendix 2022 financial results can be found here: https://evolva.com/financial-data/full-year-results/ © Evolva 2023 – FY 2022 results – 09 March 2023 29
Slide 30: Gross contribution as key performance measure
FY 2022 financial results Gross contribution as key performance measure Sales - Direct production costs Declining unit costs due to efficiency gains = Gross contribution Going forward: positive and increasing - Operational costs Largely fix (around CHF 2.5 million) - Operational staff - D&A Mainly c
Slide 31: Precision-fermentation to solve FMCG's challenge
Precision-fermentation to solve FMCG’s challenge to ensure both functionality and sustainability of their products Our USP Functionality Sustainability Consumers want a product Consumers want a product “that doesn’t harm them nor the “that works” planet” But natural ingredients have But synthetic in
Slide 32: Strong proprietary technology platform as backbone
Strong proprietary technology platform as backbone Technology platform STARTING MATERIAL NATURE-BASED INGREDIENTS We are using sugar, water, salts vitamins We provide products that can contribute to health, and minerals to grow our proprietary wellbeing and sensory enjoyment. yeast enabled to produc
Slide 33: Multiple technology approach enables access to many different compound classes
Multiple technology approach enables access to many different compound classes Technology approach Sugars Terpenes de novo BIOSYNTHESIS Flavones BIOTRANSFORMATION/BIOCONVERSION Phenylpropanoids Flavonoids Using metabolically engineered microbial cell Using enzymes or microbial cells, inexpensive and
Slide 34: Evolva's strain engineering with new and optimized pathways
Evolva’s strain engineering with new and optimized pathways Strain engineering Yeast Metabolism Yeast is able to metabolize sugar towards a Sugar certain intermediate that can be used as starting point for the biochemical pathway required for the biosynthesis of the new molecule. New Pathway/Enzymes
Slide 35: Evolva runs on fully-fledged organizational capabilities
Evolva runs on fully-fledged organizational capabilities Organizational capabilities Strain Engineering Analytical Chemistry Fermentation DSP Fast integration methods Increased capacities Benchtop bioreactors Filtration, centrifuges, Screening capacities GC, HPLC, LC-MS, LC-UV platform distillation