Slide 1: "We are Autobahn" – H1 2020 Interim Report
“We are Autobahn” Evotec SE, H1 2020 Interim Report, 12 August 2020
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: Welcome to H1 2020 – The Management Team
Welcome to H1 2020 The Management Team Werner Lanthaler Enno Spillner Craig Johnstone Cord Dohrmann CEO CFO COO CSO PAGE 2
Slide 4: One direction – Growth and innovation for more precise medicine
One direction – Growth and innovation for more precise medicine H1 2020 – Highlights & Lowlights Highlights Business continuity fully maintained without significant negative impact despite COVID-19 Multiple new & extended drug discovery and development alliances New long-term contract with US
Slide 5: Agenda
Agenda Highlights Financial performance H1 2020 Scientific and operational performance H1 2020 Guidance 2020 PAGE 4
Slide 6: Strong financials despite delayed milestones and COVID-19
Strong financials despite delayed milestones and COVID-19 Financials H1 2020 & FY 2020 Guidance Strong financial performance Revenue and EBITDA Guidance confirmed2); Unpartnered R&D updated Group revenues from contracts with customers up 12% to € 231.0 m (H1 2019: € 207.1 m) Total Group revenues
Slide 7: "… just the beginning" – Ideally positioned for next growth level
“… just the beginning” – Ideally positioned for next growth level Long-term strategy – Action Plan 2025 2025 2021 2018 2012 Action Plan 2025 2009 Leadership in Multimodality & Access Action Plan 2022 Action Plan 2016 Aspire global Leadership Action Plan 2012 Build Innovation Seeds Restructure for Gr
Slide 8: Recruiting talent during crisis to secure capacity and growth
Recruiting talent during crisis to secure capacity and growth Development of global number of Evotec employees 3,350 3,278 3,172 3,207 3,145 3,089 3,050 Jan Feb Mar Apr May Jun Jul Aug - Dec 2020 PAGE 7
Slide 9: Agenda
Agenda Highlights Financial performance H1 2020 Scientific and operational performance H1 2020 Guidance 2020 PAGE 8
Slide 10: Solid financial performance
Solid financial performance Condensed income statement H1 2020 – Evotec SE and subsidiaries in € m1) H1 2020 H1 2019 % vs. 2019 Strong performance across all Revenues from contracts with customers 231.0 207.1 12 business lines despite loss of Sanofi payments (€ 7.5 m); Just – Gross margin 23.0% 30
Slide 11: Growth in base revenues; margin reflects delayed milestones in H1
Growth in base revenues; Margin reflects delayed milestones in H1 Revenues & Gross margin overview Revenues from contracts Gross margin >10% revenue growth due to strong with customers (in € m) (in %) performance in base business and Base revenues Total Margin Just – Evotec Biologics contribution
Slide 12: Continued good performance in both segments
Continued good performance in both segments Segment information H1 2020 – Evotec SE and subsidiaries in € m1) Inter- EVT EVT segment Tran- Evotec Revenue growth of 16% in EVT Execute Innovate elimination sition2) Group Execute reflects strong base business and Just – Evotec Revenues 228.2 44.6 (51
Slide 13: Good base business carries growth
Good base business carries growth Condensed income statement Q2 2020 – Evotec SE and subsidiaries in € m1) Q2 2020 Q2 2019 Revenue growth driven by good Revenues from contracts with customers 111.6 103.2 performance in base business, despite loss of Sanofi payments Gross margin 17.7% 31.1% (€ 7.5
Slide 14: Strong balance sheet and solid liquidity position
Strong balance sheet and solid liquidity position Balance sheet and liquidity – 31 Dec. 2019 versus 30 June 2020 Balance sheet total Equity Ratio Robust liquidity position despite in € m in % significant capex and equity investments Strong balance sheet total 1,180.9 1,190,7 40.4 40.0 Strong a
Slide 15: Increased Capex – preparing the ground for additional growth
Increased Capex – preparing the ground for additional growth Liquidity bridge H1 2020 vs YE 2019 in € m 320.0 (7.0) (15.7) 275.7 (13.0) (16.1) 15.8 (8.4) 0.1 31 Dec, 2019 Operating Capex J.POD® Capex Equity Bank loans Repayment of F/X difference 30 Jun, 2020 cash flow All other investments lease obl
Slide 16: Agenda
Agenda Highlights Financial performance H1 2020 Scientific and operational performance H1 2020 Guidance 2020 PAGE 15
Slide 17: Strong performance in all business lines despite COVID-19
Strong performance in all business lines despite COVID-19 EVT Execute – Major achievements H1 2020 Multiple new and extended drug discovery and development agreements (e.g. Amgen, Boston Pharma, two INDiGOs with Ildong, …) Evotec GT, strong start, extended Takeda partnership Increasingly stron
Slide 18: Integrated discovery-development continuum for quality & speed
Integrated discovery-development continuum for quality & speed Evotec Development Services High quality and integrated operating model increases projects in development Integrated CMC (iCMC) offering includes Drug Substance (API) and Drug Product development and manufacturing from Phase I to comme
Slide 19: Technology leadership drives strong market growth
Technology leadership drives strong market growth Evotec ADME-tox and DMPK Services Continued high-quality expansion Continued increase in capacity and throughput and 8% revenue growth in H1 2020 (vs H1 2019) – despite COVID-19 impact on customers in Q2 Increase in integrated discovery and devel
Slide 20: Better biologics with next-generation technologies
Better biologics with next-generation technologies Just – Evotec Biologics Services Significant scientific synergies and cross selling within Evotec Group through step into biologics Multiple new contracts e.g. with Advanced BioScience Laboratories, Biocon, MSD, OncoResponse, Teva, Ology, Depart
Slide 21: Clinical and commercial GMP manufacturing
Clinical and commercial GMP manufacturing J.POD® – Flexible, Clinical and Commercial Manufacturing Design Seamless Transfer Clinical & Commercial at same Highly scale, flexible mitigating operation scale-up risks J.Plant: Phase I/II cGMP J.POD®: Clinical–Commercial cGMP Production from a few kilos t
Slide 22: Campus Curie Toulouse secures essential growth opportunity
Campus Curie Toulouse secures essential growth opportunity “Campus Curie Toulouse” - Acquisition of “Biopark by Sanofi” in Toulouse Expansion in Toulouse is an important part of overall growth strategy – More than 50 third-party customers Acquisition of site from Sanofi (“Biopark by Sanofi”) sec
Slide 23: "…just the beginning" of EVT Innovate
“…just the beginning” of EVT Innovate EVT Innovate – Major achievements H1 2020 Good pipeline progress despite certain COVID- related delays, e.g. Bayer, Exscientia, JingXin) “QRbeta” initiated and accelerated within Evotec Global health as an important platform element and increasing portfoli
Slide 24: Portfolio across all modalities steadily growing
Portfolio across all modalities steadily growing Our co-owned pipeline of assets Number of projects (owned/co-owned) Small molecules Biologics Gene & Cell therapies Discovery >10 >10 >50 Pre-clinical 3 10 15 Clinical – – 15 iPSC HBV Cure P2x3 – Example derived beta immune A pipeline in cell therapy
Slide 25: Fully invested pipeline, gaining visibility
Fully invested pipeline, gaining visibility Overview & Recent Highlights Bayer-Evotec P2X3 alliance Preparation of Phase II b in refractory and/or unexplained chronic cough ongoing Start of Phase in other high-value indications expected within next 12 - 18 months Jingxin: EVT 201 Phase III
Slide 26: Phase II proof-of-concept results support best-in-class potential
Phase II proof-of-concept results support best-in-class potential P2X3 – BAY1817080 – Proven mechanism – Safe & well tolerated – Efficacious after 1 week P2X3 Mechanism of action Awake cough counts versus placebo (%) BAY1817080 – Cough severity Reduction in cough count versus placebo compares well w
Slide 27: Beta cell therapy – the new standard of care
Beta cell therapy – the new standard of care QRbeta Therapeutics iPSC1)-derived beta cells Tremendous therapeutic & commercial opportunity 1 Potential to develop a cure for insulin-dependent diabetic patients “Edmonton protocol”2) provides unique clinical PoC Excellent foundation to lead the bet
Slide 28: Creating important footprint in infectious disease
Creating important footprint in infectious disease Focus areas for long-term value creation Viral infections Antimicrobial Global health Evotec supporting NIH-led initiative Several partnerships to discover Several new TB initiatives Therapeutic Interventions and novel antibiotics (GARDP, Forg
Slide 29: Creating the next major classes of antibacterial drugs
Creating the next major classes of antibacterial drugs Partnership between Evotec, Resolute Therapeutics, and CARB-X Global antibiotics market: Evotec received award of up to $ 8.4 m for development of novel broad- $ 45 bn in 2018 and expected spectrum antibiotic to reach $ 62 bn by 20261) Gra
Slide 30: Partnership to build antisense pipeline
Partnership to build antisense pipeline Evotec and Secarna Further expansion of Perfect match of capacities and capabilities multimodality “Autobahn” Joint strategic multi-target drug discovery alliance Global antisense & RNAi thera- Secarna provides proprietary LNAplus™ antisense molecules; Evo
Slide 31: BRIDGEs to link academia with industry continue roll-out
BRIDGEs to link academia with industry continue roll-out Long-term optionality with efficient translation Basic Applied Technology Development Product Commercialisation Market Entry & Research Research and Demonstration and Market Development Market Volume Public Market Funding Level Pension Plan Pr
Slide 32: Technology, platform and R&D driven investments
Technology, platform and R&D driven investments Equity participations for co-owned pipeline is expanding Equity Equity Spin-off Equity Equity Equity Consortium Equity Joint Venture participation participation participation participation participation membership participation with Vifor Nanoparticle-
Slide 33: Agenda
Agenda Highlights Financial performance H1 2020 Scientific and operational performance H1 2020 Guidance 2020 PAGE 32
Slide 34: Strong news flow to be continued in H2 2020
Strong news flow to be continued in H2 2020 Overview EVT Execute New integrated service alliances in drug discovery & development EVT Innovate New clinical initiations and progress of co-owned pipeline New co-owned partnerships EVT Equity & BRIDGES Initiation of new BRIDGEs New operational
Slide 35: Revenues and profits confirmed; higher investments in R&D
Revenues and profits confirmed; higher investments in R&D Guidance 2020 Total Group revenues expected to range from € 440 – 480 m, based on constant 2019 Good top- 1 exchange rates, despite loss of € 20 m payment from Sanofi, and certain COVID-19 line growth challenges1) Adjusted Group EBITDA2)
Slide 36: Upcoming important dates
Upcoming important dates Financial calendar 2020 Annual Report 2019 26 March 2020 Quarterly Statement Q1 2020 14 May 2020 Virtual Annual General Meeting 2020 16 June 2020 Half-year 2020 Interim Report 12 August 2020 Quarterly Statement 9M 2020 12 November 2020 PAGE 35
Slide 37: Virtual Capital Market Day on 19 November 2020
2, evotec HRESEARCHNEVERSTOPS RIGHT NOW, WE HAVE TO WAIT. We will switch to virtual CAPITAL MARKET DAY ON 19 NOVEMBER 2020
Slide 38: Questions and Answers
Slide 39: 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