Evotec Se · XETR:EVT
Evotec — H.C. Wainwright Global Life Sciences Conference 2018
34 slides from Evotec's conference presentation, Apr 9, 2018
Slide 1: Evotec – Leading external innovation
Evotec – Leading external innovation Evotec AG, Company Presentation, H.C. Wainwright Global Life Sciences Conference in Monte Carlo, Monaco, 09 April 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: Fast-growing platform and co-owned pipeline: Highlights 2017
Fast-growing platform and co-owned pipeline Highlights 2017 EVT Execute EVT Innovate Corporate Cyprotex integration and New record level of milestones Continued high-value performance ahead of Expansion of iPSC platform investments and company plan and patient-centric approaches formations
Slide 6: Strong financial performance: Results and guidance 2017
Strong financial performance Results and guidance 2017 Guidance Initial guidance in € Final results 2017 August 2017 March 2017 € 257.6 m More than 15% growth Group revenues More than 40% growth (+57%) (2016: € 164.5 m) Approx. € 20 m R&D expenses € 17.6 m Approx. € 20 m (2016: € 18.1 m) Significant
Slide 7: Consequent and fast forward – AP 2022
Consequent and fast forward – AP 2022 “Action Plan 2022 – Leading External Innovation” – The strategic goals 2022 2018 2012 2009 Sustainable profitability with positive Business segmentation operating cash flows including milestone and royalty potential Investments to build a world-class Res
Slide 8: "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 9: 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) Lyon (France) Basel (CH) Watertown, Munich (Germany) Branford (USA) ~500 employees ~600 employees ~350 employees ~600
Slide 10: ONE stop-shop for external innovation
ONE stop-shop for external innovation The business model – EVT Execute & EVT Innovate PAGE 9
Slide 11: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 10
Slide 12: No 1 in quality and R&D efficiency
No 1 in quality and R&D efficiency EVT Execute – Comprehensive integrated service offering PAGE 11
Slide 13: Strong organic growth supported by acquisitions
Strong organic growth supported by acquisitions EVT Execute – Key performance indicators FY 2017 in € m Revenues1) Adjusted EBITDA2) Revenue growth driven by strong Intersegment revenues +46% +26% performance in base business, 250.3 63.2 initial contributions 36.6 from acquired 50.2 businesses and
Slide 14: Further improved customer base
Further improved customer base EVT Execute – Selected KPIs 2017 Revenues by customer Customer type ytd 20171) Revenues by region ytd segment ytd 20171) (in %) (in %) 20171) (in %) 100% Mid-sized 100% ROW 1% 2% 100% 10% 13% Remaining 15% Pharma 29% Foundations 16% Top 11-30 11% 34% 15% USA 42% Custom
Slide 15: Clear targets, strong outlook for 2018
Clear targets, strong outlook for 2018 EVT Execute – Expected key milestones 2018 New long-term alliances integrating the offering of Aptuit, strategic launch of INDiGO® New performance-based integrated technology/disease alliances Expansion of foundations and biotech network in USA/Europe M
Slide 16: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 15
Slide 17: Addressing major market needs
Addressing major market needs EVT Innovate – Fields of core expertise RESPIRATORY NEURONAL DIABETES & FIBROSIS DISEASES COMPLICATIONS Market potential Market potential Market potential Market potential > € 100 bn > € 500 bn > € 500 bn > € 100 bn ANTI- PAIN ONCOLOGY INFECTIVES Market potential Market
Slide 18: Milestones are the key growth driver
Milestones are the key growth driver EVT Innovate – Key performance indicators FY 2017 Revenues Adjusted EBITDA1) R&D expenses (in € m) (in € m) (in € m) 43.9 Intersegment 26.7 21.5 22.4 22.7 21.4 +65% 4.6 4.7 4.5 17.8 18.0 16.9 (5.2) (15.1) (14.0) 2015 2016 2017 2015 2016 2017 2015 2016 2017 Revenu
Slide 19: > 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 20: 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 – Endo
Slide 21: One big effort for the benefit of many: Sanofi & Evotec
One big effort for the benefit of many Sanofi & Evotec – Transaction expected to close in H1 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 retain
Slide 22: 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 23: Paradigm shifts in neurodegeneration and diabetes
Paradigm shifts in neurodegeneration and diabetes iPSC – Alliances; Progress overview iPSC alliance in neurodegeneration iPSC alliance in diabetes Development of novel therapies for a broad Development of beta cell replacement therapy and range of neurodegenerative diseases drug discovery based on f
Slide 24: Strong progress in first-in-class alliances
Strong progress in first-in-class alliances Progress overview (Examples) Chronic kidney disease (“CKD”) Immuno-oncology Highly innovative therapeutics in diabetic Small molecule-based cancer complications (e.g. CKD) immunotherapies to complement checkpoint inhibitors (together with APEIRON Biologics
Slide 25: 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 26: 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 27: Just the beginning for EVT Innovate
Just the beginning for EVT Innovate 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 and new Innovate partnerships
Slide 28: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 27
Slide 29: 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 30: Very strong financial performance: Key financials 2017
Very strong financial performance Key financials 2017: Condensed income statement (IFRS) in € m1) 2017 2016 % vs. Revenue growth due to strong Actual Actual 2016 performance in the base business, increased milestones and positive Revenues 257.6 164.5 +57% contributions from acquisitions Gross ma
Slide 31: Both segments perform according to strategy
Both segments perform according to strategy Condensed income statement based on segments for FY 2017 in € m1) Inter- EVT EVT segment Evotec EVT Execute revenues up Execute Innovate elimination Group 46% and EVT Innovate revenues up 65% Revenues 250.3 43.9 (36.6) 257.6 compared to 2016 EVT Innova
Slide 32: 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 33: "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 32 1) Before contin
Slide 34: 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 — H.C. Wainwright Global Life Sciences Conference 2018 on 6ix