Evotec Se · XETR:EVT
Evotec — BioCapital Europe 2018
33 slides from Evotec's conference presentation, Feb 6, 2018
Slide 1: Evotec – Leading external innovation
Evotec – Leading external innovation Evotec AG, Company Presentation, BioCapital Europe 2018, Amsterdam, 06 February 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: Leading external innovation to accelerate new drugs
Leading external innovation to accelerate new drugs Evotec at a glance Evotec delivers a fast growing and 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 indi
Slide 5: The macro trend in R&D productivity is just starting
The macro trend in R&D productivity is just starting Market dynamics in external innovation Key growth drivers Drug discovery outsourcing is a macro trend Market overview – Revenues, in € bn Capital efficiency 5-10% p.a. ~33 Switch from fixed costs to variable 28 ~30 business models 25 20 22 17 Capi
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% 80% 5 Not 55 ~7 (~50%) outsourced (~60%) 60% ~25 (~70%) (~90%) 40% 5 35 Outsourced 20% ~3 (~50%) (~40%) (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Discove
Slide 8: Global presence in centres of excellence
Global presence in centres of excellence Evotec’s global footprint Hamburg (HQ), Abingdon/ Toulouse Verona (Italy), Princeton, Göttingen, Munich Alderley Park (UK) (France) Basel (CH) Watertown, (Germany) Branford (USA) ~500 employees ~600 employees ~350 employees ~600 employees ~90 employees Hit
Slide 9: Highly skilled and experienced workforce
Highly skilled and experienced workforce Human Resources >2,300 >2,000 1,000 1,238 717 2014 2015 2016 2017 2018(e) Highly skilled workforce >2,100 scientists in Europe & USA >80% of employees have at least one academic qualification 6.2 years of average experience in drug discovery and develop
Slide 10: Leading external innovation
Leading external innovation Long-term strategy “Co-own to win for all” 2022 2018 2012 2009 Business segmentation Service & innovation partner in drug discovery and development for large Restructuring Investments and M&A to build Pharma, biotech and foundations highest quality service platfor
Slide 11: ONE stop-shop for external innovation
ONE stop-shop for external innovation The business model – EVT Execute & EVT Innovate PAGE 10
Slide 12: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 11
Slide 13: No 1 in quality and R&D efficiency
No 1 in quality and R&D efficiency EVT Execute – Comprehensive integrated service offering PAGE 12
Slide 14: Integrated and systematic working on all modalities
Integrated and systematic working on all modalities M&A/Capabilities upgrade along the value chain since 2010 Biological validation Technological validation Disease relevance & production Target ID/ Compound Assay Screening & Lead Pre-clinical High-end CMC1) validation management development Proteom
Slide 15: Strong organic growth, supported by acquisitions
Strong organic growth, supported by acquisitions EVT Execute – Key performance indicators 9M 2017 Revenues1) Adjusted EBITDA2) Gross margin (in € m) (in € m) (in %) Intersegment revenues +1% 165.1 41.3 41.7 32.9 27.4 29.0 +30% 126.6 24.8 23.4 23.9 93.4 19.5 61.5 137.7 16.1 13.2 102.7 9.9 73.9 48.3 9
Slide 16: Clear targets, strong outlook for 2018
Clear targets, strong outlook for 2018 EVT Execute – Expected key milestones 2018 New long-term alliances integrating offering of Aptuit New performance-based integrated technology/disease alliances Expansion of foundations and biotech network in USA/Europe Milestones from existing alliances
Slide 17: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 16
Slide 18: Addressing major market needs
Addressing major market needs EVT Innovate – Fields of core expertise NEURONAL DIABETES & RESPIRATORY FIBROSIS DISEASES COMPLICATIONS Market potential Market potential Market potential Market potential > € 100 bn > € 100 bn > € 500 bn > € 500 bn ANTI- PAIN ONCOLOGY INFECTIVES Market potential Market
Slide 19: Building a co-owned pipeline
Building a co-owned pipeline EVT Innovate – Initiatives PAGE 18
Slide 20: Milestones are key growth driver
Milestones are key growth driver EVT Innovate – Key performance indicators 9M 2017 Revenues Adjusted EBITDA1) Gross margin (in € m) (in € m) (in %) 53.5 45.6 46.2 +84% 33.2 32.0 17.9 10.6 4.3 (2.4) (9.5) (10.7) (12.7) 9M 2014 9M 2015 9M 2016 9M 2017 9M 2014 9M 2015 9M 2016 9M 2017 9M 2014 9M 2015 9M
Slide 21: >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 r
Slide 22: Fully invested co-owned pipeline
Fully invested co-owned pipeline Partnership portfolio Molecule Therapeutic Area / Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia EVT401 Immunology & Inflammation ND1) Oncology Clinical ND1) Oncology Various Women’s health – Endometriosis Various Women’s health – En
Slide 23: First-in-class alliances with significant upside
First-in-class alliances with significant upside Examples First milestone achieved Chronic kidney disease (“CKD”) Immuno-oncology Highly innovative therapeutics in diabetic Small molecule-based cancer immunotherapies complications (e.g. CKD) to complement checkpoint inhibitors (together with APEIRON
Slide 24: iPSC-based patient-focused discovery
iPSC-based patient-focused discovery Strong focus on iPSC1) platform “IPS cells can become a power- Disease-specific drugs ful tool to develop new drugs to cure Screening intractable di- Patient seases because they can be made from patients’ somatic cells.” Disease Patient- in a dish specific Shinya
Slide 25: Continued expansion of iPSC projects
Continued expansion of iPSC projects Next opportunities in iPSC drug discovery Myopathies Duchenne’s muscular dystrophy (DMD) Retinal diseases Age-related macular dystrophy Lysosomal Pompe, Krabbe, NPC, Batten, … storage diseases NPC, Batten, … Neurodevelopmental Autism, Fragile X, … disea
Slide 26: BRIDGEs over the “Valley of death”
BRIDGEs over the “Valley of death“ The funding gap Basic Applied Technology Development Product Commercialisation Market Entry Research Research and Demonstration and Market Development and Market Volume Public Market Funding Level Pension Plan Project Governments Finance Funding Gap Banks / Credit
Slide 27: Upside participation in first-in-class innovation
Upside participation in first-in-class innovation Innovative building & investing Spin-offs outside of Evotec’s main areas of interest Panion Ltd/ for potential broader/later stage applications Fibrocor Tx Participation in financing rounds, built on Evotec’s platforms, via strategic investments
Slide 28: Even more innovation in 2018
Even more innovation in 2018 EVT Innovate – Expected key milestones 2018 New clinical initiations and good progress of clinical pipeline within existing partnerships Expansion of academic BRIDGE network Strong R&D progress within Cure X/Target X platforms Strong expansion of iPSC (induced pl
Slide 29: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 28
Slide 30: Continued strong financial performance expected
Continued strong financial performance expected Financial history 2014-2018 (e) – Selected performance indicators Total Group revenues (in € m) R&D expenses (in € m) 18.3 18.1 164.5 12.4 127.7 89.5 2014 2015 2016 2017(e) 2018(e) 2014 2015 2016 2017(e) 2018(e) Adjusted Group EBITDA (in € m) Gross mar
Slide 31: Strong team and shareholders for innovation
Strong team and shareholders for innovation Management & shareholder structure ̴ 9% Roland ̴ 5% AGI2) ̴ 5% DAMI3) Oetker/ROI Management Board Supervisory Board ̴ 5% Goldman Werner Lanthaler (CEO) Wolfgang Plischke Sachs Long-time experience in Ex-Bayer Pharma & biotech Bernd Hirsch Enno Spil
Slide 32: New guidance in March 2018, Strong growth and profitability expected
New guidance in March 2018, Strong growth and profitability expected Guidance 20171) Double- 1 digit top- More than 40% (previously: 15%) Group revenue growth2) line growth Profitable Adjusted Group EBITDA3) expected to improve by more than 50% 2 and growing (previously: significantly) compared
Slide 33: 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