Slide 1: Acquisition of Compound Focus Inc.
Building innovative drug discovery alliances Go for o GGROWTH! O Acquisition of Compou und Focus Inc. Evotec AG, Investor and Analyst call, 1st June 2011
Slide 2: Forward-looking statements
Forward-looking statements s Information set forth in this presen ntation contains beyond our control, and which could cause actual results forward-looking statements, which invo olve a number of to differ materially from those contemplated in these risks and uncertainties. ncertainties The forward-
Slide 3: Acquisition of Compound Focus Inc. Summary
Acquisition of Com mpound Focus Inc. Summary Strategic g rational • Evotec expands integrated drug discovery alliance solutions with best in class, profitable offering in compound managemeent Structure • Evotec E t acquires i allll shares h iin Compound C d Focus F Inc. I from f Bi F BioFocus, a Gal
Slide 4: Agenda
Agenda • Market opportunity & strategic rational • Company profile and competitive c advantage • Transaction & Outlookk PAGE 3
Slide 5: Building best in class drug discovery infrastructures
Buildingg best in class drug g discovery y infrastructures Strategic imperatives for our o business model Strengthen core business S • Expand quality leadership position in small molecule drug discovery • Invest in highly innovative approaches to open new Metabolic alliances p therapeutic routes in
Slide 6: Better solutions for integrated drug discovery alliances
Better solutions fo or integrated g drug g discovery alliancees Strategic rational of acquissition Industry drivers in compound manageme ent High expenses in specialized infra- • Increasing outsourcing of 1 compound management structure (IT, robotics, analytical support) • Critical for government an
Slide 7: Compound management as an integrated solution in our alliances
Compound p manag gement as an integrated g g solution in our alliances Role of compound manageement in Evotec’s value chain Best practice operations Target ID & Lead Preclinical Clinical Screening Hit-to-lead Hit to lead validation lid ti optimisation ti i ti d development l t d development l t Full
Slide 8: An even better Evotec
An even better Evo otec Where is the fit? • Compound Focus’ services sttrengthen Evotec’s position in the drug discovery market • Unique outsourcing partner fo or all research projects with a long-term g incentive linked to compound c p storage g and management • Government organisations g an nd exi
Slide 9: Agenda
Agenda • Market opportunity & strategic s rational • Company profile and d competitive advantage • Transaction & Outlookk PAGE 8
Slide 10: Compound Focus – leader in a niche market
Compound Focus – leader in a niche market Purchase, Storage and Ma anagement of Compound Libraries • Compound Fo ocus, Inc • 100% owned by BioFocus • Located in S. San Francisco • Established in n 2004 –the company wass acquired by Galápagos in 2006 • Ca. 30 employees PAGE 9
Slide 11: Quality leadership position fits to Evotec offerings
Quality leadership p position fits to Evotec offerings Market position of Compo ound Focus Selected players in the marketplace - Potentia al market opportunity ca. € 50m p.a. • In house Pharma • SPECS (Europe) • Sigma Aldrich • ASDI Strong market presence – Compound Focus has signed 6 of the last 9
Slide 12: A stable, profitable business, ready to grow
A stable, profitable e business, ready to grow Historic performance & an nd revenue profile Revenues and EBIT, in m USD Revenue profile 12.5 11.9 Revenues 11.1 EBIT Ca 65% Ca. 2.9 3.6 1.7 Ca. 65% NIH 2008 2009 2010 Revenue growth and profitability driven by increased pharma outsourcing and cross sel
Slide 13: Agenda
Agenda • Market opportunity & strategic s rational • Company profile and competitive c advantage • Transaction & Outlook PAGE 12
Slide 14: Acquisition of Compound Focus Inc. Terms and integration
Acquisition of Com mpound Focus Inc. Terms and integration • Evotec acquires all shares in Co ompound Focus Inc. • Total Deal €12.5m in cash Transaction • Structure and Consideration: − Upfront: €10.25m − Earn-out of up to €2.25m, payyable in three installments over the next 2 years, depending on re
Slide 15: Global reach for global projects
Global reach for global projects Ca. 580 Evotec employeess worldwide Abingdon, UK ~225 employees Thane, India • Medicinal chemistryy ~140 140 employees • Zebrafish screening • Library synthesis & management • ADMET • Medicinal chemistry support • Structural biology • Development chemistry S Francisc
Slide 16: Compound Focus adds revenues in 2011
Compound p Focus adds approx. pp €3 - 4 m revenues in 2011 Deal will be fully accretivee in 2011 in € m FY Guidance New FY 3/2011 G id Guidance 68 70 68-70 64-66 4 Revenues 64 - 66 68 – 70 Operating income Improved Improved (loss) over 2010 over 2010 Net income Improved Improved (loss) over 2010 ove
Slide 17: Strong news flow to come
Strong news flow to come Outlook and next steps forr 2011 ff Key milestones for 2011 Grow discovery • Build at least two significcant new integrated technology/disease alliances alliances, build • Deliver significant and accelerated a preclinical/clinical milestones 1 jjoint innovation • Show expans
Slide 18: Building innovative drug discovery alliances
Building innovative drug discovery alliances Your contact: Dr Werner Lanthaler Chief Executive Officer +49.(0).40.560 ( ) 6 81-242 8 +49.(0).40.560 81-333 Fax werner.lanthaler@evotec.com