Evotec Se · XETR:EVT
Evotec — Jefferies London Healthcare Conference 2018
35 slides from Evotec's conference presentation, Nov 14, 2018
Slide 1: Evotec – Leading external innovation
Evotec – Leading external innovation Evotec AG, Jefferies London Healthcare Conference 2018, 14 November 2018, London
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 & profitable drug discovery and development business to Pharma, biotech and foundations Evotec and its partners are progressing a pipeline of approx. 100 co-owned first-in-class projects in majo
Slide 5: From fixed to variable costs to increase productivity
From fixed to variable costs to increase productivity R&D outsourcing and growth drivers in € bn Key Drivers ~30-36 ~85-90 ~10 100% 90% 80% 5 55 (~50%) 70% ~7 (~60%) 60% (~70%) ~25 Capital (~90%) ∑ 50% Elasticity € ~150 bn 40% 30% 5 35 (~50%) 20% ~3 (~40%) 10% (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 5
Slide 6: "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 inclu
Slide 7: 2,500 x unique expertise within global footprint
2,500 x unique expertise within global footprint Centres of excellence Hamburg (HQ), Abingdon, Toulouse + Lyon Verona (Italy), Princeton, Göttingen, Alderley Park (UK) (France) Basel (CH) Watertown, Munich (Germany) Branford (USA) ~540 employees ~660 employees ~520 employees ~610 employees ~150 empl
Slide 8: Fully integrated ONE stop-shop for innovation
Fully integrated ONE stop-shop for innovation The business model – EVT Execute & EVT Innovate PAGE 7
Slide 9: Building a balanced portfolio
Building a balanced portfolio Value proposition – Action Plan 2022: Leading External Innovation Pipeline assets Co-Ownership via biology and/or process and platform innovations Action Plan 2022 Services along the value chain PAGE 8
Slide 10: Output goals define R&D intensity
Output goals define R&D intensity Bayer & EVT in Endometriosis – Example Resources Mission Bayer targets 100 Result 2012 Total resource 90 20171) 80 Bayer resource 3 novel 70 first- 3 INDs 60 in-class EVT targets targets 50 40% EVT resource more cost in 40 woman's efficient 30 health in 25% faster c
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 M&A/Capabilities upgrade along the value chain since 2010
Integrated and systematic M&A/Capabilities upgrade along the value chain since 2010 Biological validation Technological validation Disease relevance & production High-end Target ID/ Compound Assay Screening & Lead Pre-clinical CMC1) manu- validation management development Proteomics optimisation & v
Slide 14: Continued growth
Continued growth EVT Execute – Key performance indicators 9M 2018 Revenues1) Adjusted EBITDA4) Strong upswing in revenues (in € m) (in € m) due to growth in the base Intersegment business and Aptuit revenues +53% 254.3 +50% 62.1 contribution 35.6 Increase in adjusted EBITDA follows revenue growt
Slide 15: Strong and well-balanced customer mix
Strong and well-balanced customer mix EVT Execute – Selected KPIs 9M 2018 Revenues by customer Customer type ytd1) Revenues by region ytd1) segment ytd1) (in %) (in %) (in %) 100% 100% 100% Mid-sized RoW 16% 3% Pharma Remaining 39% Foun- 7% dations USA 42% Biotech 38% Top 11-30 18% customers Top 10
Slide 16: Strong outlook for rest of year and into 2019
Strong outlook for rest of year and into 2019 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/Euro
Slide 17: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 16
Slide 18: Milestones, new partnerships and accelerated R&D
Milestones, new partnerships and accelerated R&D EVT Innovate – Key performance indicators 9M 2018 Revenues Adjusted EBITDA1) R&D expenses (in € m) (in € m) (in € m) +55% 51.3 33.2 +58% 24.1 17.9 16.3 15.3 6.6 (2.5) (10.7) 9M 20162) 9M 20173) 9M 2018 9M 20162) 9M 20173) 9M 2018 9M 20162) 9M 20173) 9
Slide 19: Addressing major market needs
Addressing major market needs EVT Innovate – Fields of core expertise RESPIRATORY NEURONAL DIABETES & FIBROSIS DISEASES COMPLICATIONS Market potential Market potential Market potential Market potential > € 100 bn > € 500 bn > € 500 bn > € 100 bn ANTI- PAIN ONCOLOGY INFECTIVES Market potential Market
Slide 20: Patient-centric approaches allow for better drugs
Patient-centric approaches allow for better drugs Human genetics and biomarkers improving success rates Human genetics supported targets1) Biomarker based patient stratification2) % success % success 30 30 ~3x ~2x 20 20 10 10 0 0 All Genetically No Selection programs supported biomarker biomarker PA
Slide 21: Platform initiatives with game-changing potential
Platform initiatives with game-changing potential and for better translation Next generation drug discovery iPSC Panomics Artificial Protein intelligence Homeostasis PAGE 20
Slide 22: Approx. 100 co-owned projects across broad range of therapeutic areas
Approx. 100 co-owned projects across broad range of therapeutic areas Co-owned portfolio Co-owned Co-owned Co-owned Value chain Discovery Pre-clinical Clinical > 60 projects > 25 projects > 10 projects Ø € 1-10 m upfront Ø € 150 m mile- Ø Commercials and substantial Ø 8% royalties stones per p
Slide 23: Strong progress in building co-owned pipeline
Strong progress in building co-owned pipeline Partnership portfolio of approx. 100 co-owned, fully invested projects Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia BAY-1817080 Chronic cough Phase II start EVT401 Immunology & Inflammation Cl
Slide 24: Strong progress in first-in-class alliances
Strong progress in first-in-class alliances Progress overview (Examples) Chronic kidney disease (“CKD”) Immuno-oncology Highly innovative therapeutics in diabetic Small molecule-based cancer complications (e.g. CKD) immunotherapies to complement checkpoint inhibitors (together with APEIRON Biologics
Slide 25: Global leadership in iPSC
Global leadership in iPSC Strong focus on iPSC1) platform “IPS cells can become a powerful tool to develop new drugs to cure intractable diseases because they can be made from patients’ somatic cells.” Shinya Yamanaka Disease-specific drugs Screening Patient Disease Patient- in a dish specific iPSCs
Slide 26: New strategic partnerships
New strategic partnerships Celgene & Evotec – Overview of new alliances Strategic oncology partnership Targeted protein degradation partnership (initiated May 2018) (initiated Sept 2018) Long-term drug discovery and development Promising approach addressing “undruggable” partnership to identify
Slide 27: 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 Market Volume Public Market Funding Level Pension Plan Project Finance Governments Funding Gap Banks/Cr
Slide 28: 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 platforms, via strategic Fibrocor Tx investments Approx. € 22 m investments in 2017; long-term commitments with payback horizon > 5 years Attractive € 75 m
Slide 29: 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 30: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 29
Slide 31: Strong performance continues
Strong performance continues 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) (in %) 5
Slide 32: Strong financials with new business mix
Strong financials with new business mix Condensed income statement 9M 2018 – Evotec Group in € m1) YTD 2018 YTD 20175) % vs. 2017 Growth in base business, Revenues 270.0 171.5 57% Aptuit contribution (2018: € 83.6 m) and milestones Gross margin2) 31.0% 34.8% – Expected increase in R&D following
Slide 33: Strong team and shareholders for innovation
Strong team and shareholders for innovation Management & shareholder structure ̴ 9% Roland >3% AGI2) Management Board Supervisory Board Oetker/ROI >3% DWS3) Werner Lanthaler (CEO) Wolfgang Plischke >3% Goldman Long-time experience in Ex-Bayer Sachs pharma & biotech Bernd Hirsch >3% Enno Spil
Slide 34: Guidance confirmed and strong outlook 2019
Guidance confirmed and strong outlook 2019 Guidance 2018 Double- 1 digit top- More than 30% Group revenue growth line growth Profitable 2 Adjusted Group EBITDA2) expected to improve by approx. 30% and growing Focused 3 Group R&D expenses of € 35-45 m1) (previously: € 20-30 m) investments 1) Gu
Slide 35: Dr Werner Lanthaler, Chief Executive Officer
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