Slide 1: Capital Market Briefing
Capital Market Briefing Nine-month results & update on transformation process Scientific Operational Excellence Excellence Evotec SE, 9M 2024 results call & Capital Market briefing, 06 November 2024
Slide 2: Disclaimer
Disclaimer This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries) is being delivered on behalf of Evotec SE (the “Company”, “we,” “our” or “us”). This presentation is made pursuant to Sec
Slide 3: Agenda
Agenda 1. Introduction 2. Q3 results 3. Priority reset – On track 4. Strategic review – Briefing 5. Questions & Answers PAGE 3
Slide 4: Agenda
Agenda 1. Introduction 2. Q3 results 3. Priority reset – On track 4. Strategic review – Briefing 5. Questions & Answers PAGE 4
Slide 5: Uncompromising Excellence
What you can expect from us Our principle Uncompromising Excellence PAGE 5
Slide 6: Exceptional fundamentals in place…
Exceptional fundamentals in place… Quickly evident that core strengths are driving scientific excellence Strong customer relationships Commitment, flexibility, problem solving, responsiveness Customer Centricity Scientific Excellence Market relevance Best-in-class, skilled team Differentiated, Highe
Slide 7: …now pairing with operational excellence
…now pairing with operational excellence Improvements to the way we work will elevate our performance Scientific Operational Excellence Excellence Delivering Growth & Performance PAGE 7
Slide 8: Change is in progress, with more to come
Change is in progress, with more to come Restart Review Reset Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2026 Reset: Review: Restart: Strong performance so far Broad spectrum program will cover Activation of new strategy and accelerated transformation • Visible savings as of Q3/
Slide 9: The transformation process has started
The transformation process has started Q3 Priority 360° Results Reset Review Strengthening Progressing at pace Transforming partnerships and 2024 with significant for long-term guidance confirmed savings realised profitable growth Progressing towards 2025 outlook PAGE 9
Slide 10: Agenda
Agenda 1. Introduction 2. Q3 results 3. Priority reset – On track 4. Strategic review – Briefing 5. Questions & Answers PAGE 10
Slide 11: Summary of operational update
Summary of operational update Shared R&D Just – Evotec Biologics • Extension of BMS collaboration into new disease area • Continued strong growth momentum • Novo collaboration in Cell Therapy • Expansion of Tech partnership with Sandoz and Grand Opening of J.POD2, France on 20 • Progress in existing
Slide 12: 60% growth of Discovery sales
60% growth of Discovery sales Closed Sales in Discovery by quarter, excluding BMS partnership, indexed Discovery +60% • Adjusted 12-moths rolling Discovery sales1 as of 30 Sep 60% higher compared to previous year • Q3 2024 sales in Discovery up ~20% versus Q3 2023 • Growing share of integrated, mult
Slide 13: Significant business expansion of JEB with commercial manufacturing
Significant business expansion of JEB with commercial manufacturing Just – Evotec Biologics (JEB) closed sales, in € m >1,000 ~900 ~850 >> 10x 3x >100 Dec 2021 Dec 2022 Dec 2023 Mar 2024 June 2024 Sep 2024 PAGE 13
Slide 14: Soft revenue offsets first cost improvements – JEB revenue +74%
Soft revenue offsets first cost improvements – JEB revenue +74% Condensed income statement 9M 2024 – Evotec SE and subsidiaries in € m1 9M 2024 9M 2023 Change Comments Revenues 575.7 580.1 (1)% Shared R&D 447.0 506.1 (12)% Soft market in Shared R&D Just – Evotec Biologics (JEB) 128.7 74.1 74% JEB wi
Slide 15: Core operations break-even
Core operations break-even Condensed income statement 9M 2024 – Evotec SE and subsidiaries Core Non-core assets Focus on core in € m Reported Operations (Halle, Orth) operations Revenues 575.7 570.1 5.6 • Sites in Halle and Orth Shared R&D 447.0 441.4 5.6 are no longer considered Just – Evotec Biolo
Slide 16: Hitting the low point in 2024
Hitting the low point in 2024 Condensed quarterly income statement numbers 2024 – Evotec SE and subsidiaries in € m1 Q1 2024 Q2 2024 Q3 2024 Comments Revenues 208.7 182.1 184.9 Shared R&D 155.2 147.2 144.6 Still soft market & seasonality Just – Evotec Biologics 53.5 34.9 40.3 15% Revenue pickup JEB
Slide 17: Solid funding profile
Solid funding profile Streamlined financing 2% • Undrawn liquidity reserve: mix, Share of liabilities & 23% − Undrawn project and research lease obligations 40% financing of € 75 m € 467 m − Revolving credit facility (RCF) Research Financing Promissory Note of € 250 m Project Financing 34% • Financi
Slide 18: Positive turn in cash flows strengthens Q3 liquidity
Positive turn in cash flows strengthens Q3 liquidity Quarterly Free Cash Flow and liquidity development 9M 2024 – Evotec SE & subsidiaries Q1 2024 Q2 2024 Q3 2024 • Q3 cash increase driven by: Liquidity − Increasing liquidity balance in 509.9 299.0 303.3 Q3 through positive OCF position1, in €m driv
Slide 19: Clear path towards guidance
Clear path towards guidance Key contributions to FY2024 adjusted EBITDA, in €m, illustrative 15-35 -6.0 9M 20241 Profit from Priority Reset & FY2024 revenue upside Q4 further measures PAGE 19 1. Actuals
Slide 20: Guidance 2024 confirmed
Guidance 2024 confirmed Guidance 20241 YE 2023 Comment Strong growth of JEB; Group revenues € 790 - 820 m € 781.4 m Soft market environment in Shared R&D Focus on scalable first-in-class R&D expenditure2 € 50 - 60 m € 64.8 m platforms and projects, safeguarding sustainable growth High fixed costs ba
Slide 21: Agenda
Agenda 1. Introduction 2. Q3 results 3. Priority reset – On track 4. Strategic review – Briefing 5. Questions & Answers PAGE 21
Slide 22: Resetting Priorities
Priority Reset as response to a challenging environment Observations in 2024 Challenging market High fixed cost base development Change in structure Revenue phasing / of Closed sales mix for 2024 Resetting Priorities PAGE 22
Slide 23: Three pillars towards profitable growth & focus on stronger liquidity
Three pillars towards profitable growth & focus on stronger liquidity Portfolio Capacity & 1 adjustments 2 External spend 3 Footprint • Exit Gene Therapy • Reduction in force across • Site exits (Orth, Halle, US, UK, Italy, Germany and Cologne, & Marcy) • Scale back API capacity France • Building cl
Slide 24: On track delivering cost optimisation plan & improved one-off cost
On track delivering cost optimisation plan & improved one-off cost EBITDA contribution of Reset measures Expected adj. EBITDA impact, in €m • De-prioritisation of non-core business Exit of gene therapy and large-scale API manufacturing +60% of annualised >40 • External spend optimisation impact alre
Slide 25: Doubling down on successful partnerships
1 Doubling down on successful partnerships Land & expand in Q3 • Expanding partnership to include commercial supply in Toulouse • Adding potentially additional biosimilars to Sandoz • Guaranteeing Sandoz long-term commercial supply security • Technology development partnership in cell therapy • Coll
Slide 26: Headcount rightsizing on track
2 Headcount rightsizing on track Status by country as of 30 Sep 2024 Orth UK Italy Germany France US Austria Voluntary n/a redundancy phase Social process ongoing Notification to Social impacted employees process ongoing ~200 role reductions (out of ~400 identified) effective at the end of September
Slide 27: Progressing global purchasing optimisation
2 Progressing global purchasing optimisation Core levers & achieved annualized savings as of 30 Sep 2024 Renegotiate prices Harmonise Optimise demand through global scale specifications management • Leverage full global scale of • Optimise number of • Deploy spend control tower Evotec by bundling vo
Slide 28: Footprint optimisation: 1/3 of the reduction completed
3 Footprint optimisation: 1/3 of the reduction completed1) Initiative status as of Sep 30th, 2024 Initiatives target a 13% footprint • Completed activities size reduction in Shared R&D − Site exit Marcy completed − Hamburg MEC II and Abingdon B90 closure / transfer to other buildings completed end o
Slide 29: Measures on track to improve liquidity position in 2024 and beyond
4 Measures on track to improve liquidity position in 2024 and beyond Liquidity development 2024 and ongoing optimization measures Liquidity 2024, in € m Ongoing activities 510 • Cash from factoring of outstanding R&D tax credits > €50 m received in October (after period end) • Further cash upside ex
Slide 30: Change is in progress, with more to come
Change is in progress, with more to come Restart Review Reset Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2026 Reset: Review: Restart: Strong performance so far Broad spectrum program will cover Activation of new strategy and accelerated transformation • Visible savings as of Q3/
Slide 31: Agenda
Agenda 1. Introduction 2. Q3 results 3. Priority reset – On track 4. Strategic review – Briefing 5. Questions & Answers PAGE 31
Slide 32: A new chapter: Growth & Profitability
A new chapter: Growth & Profitability Strategic review to strengthen profitable growth 2024 2018 2012 2009 Growth & Profitability Aspire global Build innovation leadership Focus & grow 2025 - 2030 seeds 2023 Scientific & operational ‘Back to the roots’ 2015 excellence strategy with • Revenues: € 781
Slide 33: Superior business model positions us well for sustainable growth
Superior business model positions us well for sustainable growth Offering & commercialization streams today • Transactional services Services e.g. HTS, DMPK, CMC,… • Distinct work packages • Partner: Entire Pharma – Biotech spectrum / Academia Integrated • Revenue model: FTE-based revenues (FTE) off
Slide 34: Attractive markets – Technology as accelerator
Attractive markets – Technology as accelerator Growth dynamics in our industry – Overview PanOmics Biologics manufacturing CAGR CAGR >10% 15 >20% 80 60 in USDbn in USDbn 10 R&D Outsourcing 40 5 20 & CAGR 5-10% 0 0 30 2022 2030 2022 2030 25 Multi-Omics market Continuous manufacturing in USDbn 20 Biol
Slide 35: Creating operational excellence
Creating operational excellence Strengths to build on and areas needing transformation To build on … Transformation required … People / • Scientific skills • Profitability, cash and ROI focus Culture • Customer orientation: commitment, flexibility, • Company orientation: performance, planning, probl
Slide 36: The team is ready to take your questions
The team is ready to take your questions Christian Wojczewski Laetitia Rouxel CEO CFO Aurélie Dalbiez Craig Johnstone Cord Dohrmann CPO COO CSO PAGE 36
Slide 37: pRescaRcHnevensTors
pRescaRcHnevensTors
Slide 38: Volker Braun, EVP Head of Global Investor Relations & ESG
Volker Braun EVP Head of Global Investor Relations & ESG +49 (0) 228 999 338 (d) +49 (0) 151 1940 5058 (m) volker.braun@evotec.com www.evotec.com