Slide 1: Expansion of innovation
Leading external innovation Expansion of innovation Evotec AG, Nine-month 2017 Quarterly Statement, 08 November 2017
Slide 2: Forward-looking statements
Forward-looking statements 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 st
Slide 3: Welcome to 9M 2017 Your Management Team
Welcome to 9M 2017 Your Management Team Werner Lanthaler, CEO1) Enno Spillner, CFO1) Mario Polywka, COO1) Cord Dohrmann, CSO1) PAGE 2 1) On the call for the Nine-month 2017 Quarterly Statement
Slide 4: Agenda
Agenda Highlights 9M 2017 EVT Execute EVT Innovate Financial performance and outlook PAGE 3
Slide 5: Strong business performance continues
Strong business performance continues First nine months 2017 – State of play EVT Execute EVT Innovate Corporate Extension of value chain Important milestones Aptuit acquisition closed and high-quality achieved Continued high-value development services Strong focus on strategic investments
Slide 6: Financials reflect steep growth path
Financials reflect steep growth path Financial highlights 9M 2017 & Guidance 20171) Strong financial performance Guidance 2017 confirmed Group revenues up 42% to € 170.9 m More than 40% (previously: more than (9M 2016: € 120.6 m) 15%) Group revenue growth4) EVT Execute revenues up 30% to Adj
Slide 7: Vision to lead external innovation fully intact
Vision to lead external innovation fully intact Strategic long-term plan 2017 2020 2016 2012 2009 Global leadership position in drug discovery and Business segmentation development Restructuring Investments in discovery Highest quality drug discovery Capital efficiency service platform a
Slide 8: Acquisitions help to build highest quality platform
Acquisitions help to build highest quality platform Constant upgrade and improvement of technologies Compound Focus 2010 2011 2011 2012 2013 TI/TV platform Comprehensive Versatile proteomics Rapid Fire/ Access to patient- in diabetes/ compound/library platform, compound MS screening derived iPS cell
Slide 9: Strong momentum in both segments
Strong momentum in both segments EVT Execute & EVT Innovate – Strategic business drivers PAGE 8 Special offering: INDiGO®, IND-enabling studies and support
Slide 10: Agenda
Agenda Highlights 9M 2017 EVT Execute EVT Innovate Financial performance and outlook PAGE 9
Slide 11: Strong growth also supported by recent acquisitions
Strong growth also supported by recent acquisitions EVT Execute – Key performance indicators 9M 2017 Revenues1) Adjusted EBITDA2) Revenue growth in EVT (in € m) (in € m) Execute due to strong base business and Intersegment +1% revenues 165.1 41.3 41.7 contributions from 27.4 Cyprotex and Aptuit +3
Slide 12: Cyprotex integration fully on track
Cyprotex integration fully on track Cyprotex – Integration & outlook Summary of transaction Organisation, leadership New business and further Acquisition closed in 20161) and systems integration opportunities on horizon Post-merger integration on Strong leadership team in Very good integrati
Slide 13: Extension of value chain and high-end services
Extension of value chain and high-end services Initial achievements & outlook of Aptuit acquisition Summary of transaction Organisation, leadership and New business and further Acquisition closed in systems integration opportunities on horizon August 20171) (Total deal Strong leadership team in
Slide 14: The leading one-stop-shop for external innovation
The leading “one-stop-shop” for external innovation Evotec’s integrated value chain1) Target Hit- Lead Pre- Academia ID/Vali- Identi- Optimi- Phase I Phase II Phase III Approval Market clinical dation fication sation Evotec integrated discovery PDC Evotec including INDiGO® IND package (INDiGO®) Evot
Slide 15: Integrated offering leads to more long-term alliances
Integrated offering leads to more long-term alliances EVT Execute – First nine months of 2017 Extension of value chain and high-quality development services Cyprotex integration and performance according to plan Multiple new and extended integrated drug discovery alliances (e.g. Abivax, Blackt
Slide 16: Continued well balanced customer mix
Continued well balanced customer mix EVT Execute – Selected customer and revenue metrics (excl. Aptuit)1) Revenues by customer Customer type ytd 20172) Revenues by region ytd segment ytd 20172) (in %) (in %) 20172) (in %) 100% Mid-sized 100% 1% 2% 100% Remaining 12% 10% 12% ROW Pharma Top 11-30 26%
Slide 17: Many things already achieved and more to come
Many things already achieved and more to come EVT Execute – Expected key milestones 2017 New long-term alliances with large and mid-sized Pharma New performance-based integrated technology/disease alliance Expansion of foundations and biotech network in USA/Europe Milestones from existing al
Slide 18: Agenda
Agenda Highlights 9M 2017 EVT Execute EVT Innovate Financial performance and outlook PAGE 17
Slide 19: Strong scientific progress and accelerated innovation
Strong scientific progress and accelerated innovation EVT Innovate – First nine months of 2017 EVT Innovate Important milestones achieved (Kidney disease alliance with Bayer, iPSC alliances with Celgene (neurodegeneration) and Sanofi (diabetes) Strong focus on expansion of DIABETES & NEURONAL iP
Slide 20: Milestone achievements are key growth driver
Milestone achievements are key growth driver EVT Innovate – Key performance indicators 9M 2017 Revenues Adjusted EBITDA1) R&D expenses (in € m) (in € m) (in € m) 33.2 +84% 17.9 16.6 16.3 (6)% 14.3 15.3 (2.4) (12.7) (10.7) 9M 2015 9M 2016 9M 2017 9M 2015 9M 2016 9M 2017 9M 2015 9M 2016 9M 2017 Reve
Slide 21: >80 co-owned product opportunities and growing
>80 co-owned product opportunities and growing Partnership portfolio Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III EVT3021) CNS – Alzheimer’s disease EVT201 CNS – Insomnia Clinical EVT1001) CNS – Depression EVT401 Immunology & Inflammation ND2) Oncolo
Slide 22: Expansion of leading iPSC-based & patient-focused discovery
Expansion of leading iPSC-based & patient-focused discovery Strong focus on Evotec’s iPSC1) platform High-end iPSC-based drug discovery Broad network to source high-quality patient-derived iPSCs High-quality iPSC lines cultured at industrial scale (QC) Robust disease-relevant phenotypic readou
Slide 23: iPSC alliances start to deliver key milestones
iPSC alliances start to deliver key milestones iPSC – Alliances First milestone achieved First milestone achieved iPSC alliance in neurodegeneration iPSC alliance in diabetes Development of novel therapies for a broad range Development of beta cell replacement therapy and of neurodegenerative diseas
Slide 24: Continued expansion of iPSC-based drug discovery
Continued expansion of iPSC-based drug discovery Ample opportunities for iPSC drug discovery – Selection Partnered Unpartnered Neurodegenerative diseases, e.g. Lysosomal storage diseases Amyotrophic lateral sclerosis Pompe, Krabbe Frontotemporal dementia NPC, Batten, … Parkinson’s disease
Slide 25: New BRIDGEs over the Valley of death
New 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/Credit
Slide 26: Reducing cost of capital
Reducing cost of capital European fund for strategic investment – First larger risk-shared deal1) European Fund for Significant upside strategic investment potential for EIB & Evotec Initiative helps to Up to € 75 m senior overcome the current unsecured loan investment gap Internal R&D financi
Slide 27: Investment in artificial intelligence in drug discovery
Investment in artificial intelligence in drug discovery Exscientia Ltd: Pioneer of Artificial Intelligence (“AI”) Human & Machine – AI is a new approach to drug discovery that uses AI systems with expert performance computer algorithms to speed up drug discovery, cut R&D costs, reduce failure rate
Slide 28: The next generation patient-focused kidney platform
The next generation patient-focused kidney platform NURTuRE & NEPLEX Access to unique patient sample collection Unique consortium combines technology coordinated by Kidney Research UK platforms to generate “Nephron-on-a-chip” 3,000 patients with chronic kidney disease Human iPSC lines & expe
Slide 29: Successful first nine months and more to come
Successful first nine months and more to come EVT Innovate – Expected key milestones 2017 New clinical initiations and good progress of clinical pipeline within partnerships Expansion of academic BRIDGE network Strong R&D progress within Cure X/Target X initiatives Strong focus on iPSC (indu
Slide 30: Agenda
Agenda Highlights 9M 2017 EVT Execute EVT Innovate Financial performance and outlook PAGE 29
Slide 31: Financial performance reflects strong business
Financial performance reflects strong business Condensed income statement 9M 2017 – Evotec Group, including Aptuit in € m* Revenue increase due to YTD 2017 YTD 2016 % vs. 2016 strong performance in base business, contributions from Revenues 170.9 120.6 +42% acquired business and milestone achievem
Slide 32: Strong positive momentum across both segments
Strong positive momentum across both segments Segment information 9M 2017 – Evotec Group, including Aptuit in € m* Inter- Revenue growth in EVT EVT segment Evotec EVT Execute due to Execute Innovate elimination Group strong base business Revenues 165.1 33.2 (27.4) 170.9 and contributions from Cypr
Slide 33: Strong Q3 despite increase in cost base and lower milestones
Strong Q3 despite increase in cost base and lower milestones Condensed income statement Q3 2017 – Evotec Group, including Aptuit in € m Q3 2017 Q3 2016 Strong performance and initial contributions from Revenues 67.5 45.2 acquisitions Q3 2016 revenues and Gross margin 34.1% 45.1% gross margin dri
Slide 34: Strong growth but slightly different business mix
Strong growth but slightly different business mix following acquisitions Revenues & Gross margin overview 9M 2017 Group revenues Gross margin Group revenue growth due to (in € m) (in %) increase in strong performance Base revenues Total Margin in the base business, the +42% Milestones/ 170.9 Margi
Slide 35: Strong growth and accelerated innovation
Strong growth and accelerated innovation Guidance 2017 update following closing of Aptuit transaction1) Double- 1 digit top- More than 40% (previously: more than 15%) Group revenue growth2) line growth Profitable Adjusted Group EBITDA3) expected to improve by more than 50% 2 and growing (previou
Slide 36: Important next dates
Important next dates Financial calendar 2018 Annual Report 2017 28 March 2018 Quarterly Statement Q1 2018 09 May 2018 Annual General Meeting 2018 20 June 2018 Half-year 2018 Interim Report 09 August 2018 Quarterly Statement 9M 2018 13 November 2018 PAGE 35
Slide 37: HRESEARCHNEVE
HRESEARCHNEVE ASTOPS