Evotec Se · XETR:EVT
Evotec — Bank of America Merrill Lynch Health Care Conference 2018
28 slides from Evotec's conference presentation, May 16, 2018
Slide 1: Evotec – Leading external innovation
Evotec – Leading external innovation Evotec AG, Company Presentation, Bank of America Merrill Lynch Health Care Conference 2018, 16 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: Evotec at a glance
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 > 80 co-owned first-in-class projects in major indic
Slide 5: Action Plan 2022 – Leading External Innovation
Leading external innovation “Action Plan 2022 – Leading External Innovation” 2022 2018 2012 2009 Sustainable profitability with positive Business segmentation operating cash flows including milestone and royalty potential Investments to build a world-class Restructuring service platform No
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 incl
Slide 7: 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% 90% 80% 5 Not 55 (~50%) outsourced 70% ~7 (~60%) 60% ~25 (~70%) 50% (~90%) 40% 30% 5 35 Outsourced 20% ~3 (~50%) (~40%) 10% (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 50% 60% 70% 8
Slide 8: 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 (UK) (France) Basel (CH) Watertown, Munich (Germany) Branford (USA) ~530 employees ~640 employees ~365 employees ~610 emplo
Slide 9: ONE stop-shop for external innovation
ONE stop-shop for external innovation The business model – EVT Execute & EVT Innovate PAGE 8
Slide 10: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 9
Slide 11: No 1 in quality and R&D efficiency
No 1 in quality and R&D efficiency EVT Execute – Comprehensive integrated service offering PAGE 10
Slide 12: Integration of Aptuit progressing as planned
Integration of Aptuit progressing as planned Initial achievements & status quo Summary of transaction and Launch of INDiGO services in post-merger integration Q1 2018 Acquisition effective on Reducing time from nomina- 11 August 2017, approx. tion to regulatory submission 750 employees across 3
Slide 13: Healthy, slightly altered customer base following Aptuit acquisition
Healthy, slightly altered customer base following Aptuit acquisition EVT Execute – Selected KPIs Q1 2018 Revenues by customer Customer type ytd1) Revenues by region ytd1) segment ytd1) (in %) (in %) (in %) 100% 3% 100% Mid-sized 9% 100% RoW 2% Remaining 15% Pharma 15% Foun- 12% Top 11-30 41% 9% 38%
Slide 14: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 13
Slide 15: Building co-owned pipeline with superior platforms and first-in-class targets
Building co-owned pipeline with superior platforms and first-in-class targets EVT Innovate – Initiatives Personalised medicine Human genetics and biomarkers Unbiased disease-relevant readouts Patient-derived disease models Molecular phenotyping Artificial intelligence to analyse high- vo
Slide 16: Fully invested co-owned pipeline programmes
Fully invested > 80 co-owned pipeline programmes 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
Slide 17: > 80 co-owned projects across broad range of therapeutic areas
> 80 co-owned projects across broad range of therapeutic areas 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
Slide 18: Sanofi & Evotec – Transaction expected to close in H1 2018
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 19: 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 20: 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 21: 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 Panion Ltd/ investments Fibrocor Tx Approx. € 22 m investments in 2017; long-term commitments with payback horizon > 5 years Attrac
Slide 22: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 21
Slide 23: Good performance with new business mix, milestones still missing in Q1 2018
Good performance with new business mix, milestones still missing in Q1 2018 Condensed income statement Q1 2018 – Evotec AG and subsidiaries in € m1) Q1 2018 Q1 20174) % vs. 2017 Group revenue growth mainly due to good performance in the Revenues 79.0 50.9 55% base business and contribution from Ap
Slide 24: EVT Execute expanded, EVT Innovate on strategy
EVT Execute expanded, EVT Innovate on strategy Segment information Q1 2018 – Evotec AG and subsidiaries in € m1) Inter- Revenue growth in EVT EVT EVT segment Evotec Execute driven by Execute Innovate elimination Group performance in the base business and contribution Revenues 78.5 10.4 (9.9) 79.0
Slide 25: 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 26: "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 25 1) Before contin
Slide 27: Strong team and shareholders for innovation
Strong team and shareholders for innovation Management & shareholder structure ̴ 9% Roland >5% AGI2) >5% DAMI3) Management Board Supervisory Board Oetker/ROI Werner Lanthaler (CEO) Wolfgang Plischke Long-time experience in Ex-Bayer >3% Goldman pharma & biotech Sachs Bernd Hirsch Enno Spillne
Slide 28: Your contact: Enno Spillner
Your contact: Enno Spillner Chief Financial Officer +49.(0).40.560 81-238 +49.(0).40.560 81-333 Fax enno.spillner@evotec.com
Evotec — Bank of America Merrill Lynch Health Care Conference 2018 on 6ix