Slide 1: The data-driven R&D Autobahn to Cures
The data-driven R&D Autobahn to Cures Evotec SE, Full-year 2020 results, 25 March 2021
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: The Management Team
Welcome The Management Team Werner Lanthaler Enno Spillner Craig Johnstone Cord Dohrmann CEO CFO COO CSO p. 2
Slide 4: Agenda
Agenda 1 Highlights & Strategy 2 Financial performance 2020 3 Scientific and operational progress 4 Guidance 2021 p. 3
Slide 5: Highlights & lowlights 2020
The data-driven R&D Autobahn to Cures Highlights & lowlights 2020 Highlights Lowlights • Very good progress within co-owned pipeline – on our way to build long-term royalty-pool • Delay of • New and extended EVT Innovate partnerships in e.g. kidney disease, protein degradation, rare milestones and d
Slide 6: Guidance comfortably met – despite COVID-19 pandemic
Guidance comfortably met – despite COVID-19 pandemic Results and guidance 2020 Final results Latest guidance Initial guidance 2020 November 2020 March 2020 Group revenues1) € 500.9 m € 440 – 480 m € 440 – 480 m Unpartnered R&D2) € 46.4 m Approx. € 45 m Approx. € 40 m Adjusted Group EBITDA3) € 106.6
Slide 7: Evotec today – 14 Sites & close to 4,000 employees
New technologies, more precision, higher speed and efficiency Evotec today – 14 Sites & close to 4,000 employees USA Austria Italy Germany UK France ~ 400 ~30 ~700 ~ 900 ~ 850 ~ 800 • Princeton • Orth an • Verona • Hamburg (HQ) • Abingdon • Lyon • Seattle der Donau & Goettingen (Dorothy Crowfoot • T
Slide 8: > 500 new top drivers joined the data-driven R&D Autobahn for Cures
> 500 new top “drivers” joined the data-driven R&D Autobahn for Cures Growth of talent in 2020 • > 80% with at least one academic > 4,000 qualification; > 30% PhDs 3,572 • > 8 years drug discovery and 3,030 development experience 2,600 • 54% female; > 75 nationalities 1,900 • > 500 new talents plann
Slide 9: Top talents in important leadership roles enable long-term vision and acceleration
Top talents in important leadership roles enable long-term vision and acceleration Selected recent new hires Claudia Karnbach Christine Guenther Christiane Honisch Adam Stoten Global Head of Strategic Partnerships Cell Therapy, Medical Director Evognostics Academic Partnerships (BRIDGEs) & Alliances
Slide 10: Industry dynamics support our vision of more precise and accessible medicine
Industry dynamics support our vision of more precise and accessible medicine Growth drivers for the future RNA analysis/transcriptomics market1) Global AI market in drug discovery2) in US$ bn in US$ bn CAGR ~ 14% 8.7 20.0 CAGR ~ 96% 4.5 0.7 2020 2025 2020 2025 Global drug discovery external innovati
Slide 11: Multi-modality increasingly opens new doors to cures
Multi-modality increasingly opens new doors to cures Small molecules, biologics, cell and gene therapy Global biologics market1) Global gene therapy market2) in US$ bn in US$ bn CAGR 559 CAGR 5.2 ~ 12% ~ 20% 317 2.1 2020 2025 2020 2025 Global antisense & RNAi therapeutic market3) Global stem-cell th
Slide 12: The acceleration of multi-omics data generation “Omics Tsunami”
The R&D Autobahn to Cures is data-driven The acceleration of multi-omics data generation “Omics Tsunami” Omics data entered exponential growth phase Sequencing costs dropped dramatically4) Normalised database growth per Mb4) [in USD] 140 10000 Genomics1) 1000 100 Moore’s law Transcriptomics2) 120 10
Slide 13: “…we are just at the beginning” Action Plan 2025
“…we are just at the beginning” Action Plan 2025 – The data-driven R&D Autobahn to Cures 2025 2021 2018 2012 Action Plan 2025 2009 Data, multimodality & access Action Plan 2022 Action Plan 2016 Aspire global leadership Action Plan 2012 Build innovation seeds Restructure for growth p. 12
Slide 14: Unique business model - Co-ownership (EVOroyalty)
Precision, AI/ML, and excellent execution accelerate our path to co-ownership Unique business model - Co-ownership (EVOroyalty) R&D and IP EVOroyalty 1 Multi-modality Innovation Platforms generation Co-owned EVOiR&D: Integrated drug discovery & development pipeline EVOpanOmics & EVOpanHunter: Data-d
Slide 15: Agenda
Agenda 1 Highlights & Strategy 2 Financial performance 2020 3 Scientific and operational progress 4 Guidance 2021 p. 14
Slide 16: Reaching € 500 m landmark in a challenging year
Reaching € 500 m landmark in a challenging year Key financials 2020: Condensed income statement (IFRS) 2020 2019 % in € m1) Actual Actual vs. 2019 • Strong revenue growth of 12% despite COVID, delays in milestones, Revenues from contracts with customers2) 500.9 446.4 +12% and unfavourable fx rates (
Slide 17: Very convincing performance in both segments
Very convincing performance in both segments Condensed income statement based on segments for FY 2020 Inter- EVT EVT segment Not Evotec • EVT Execute revenues up 16% in € m1) Execute Innovate elimination allocated2) Group due to strong base business, over- compensating for moderate net External reve
Slide 18: Positive trend continues in Q4
Positive trend continues in Q4 Q4 2020 results Q4 2020 Q4 2019 % vs. in € m1) Actual Actual 2019 • Q4 revenues with 12% growth from strong base revenues. Milestone and Revenues2) 140.5 125.1 +12% upfront revenues were extraordinarily high in Q4 2019 Gross margin 26.0% 27.2% – • R&D increased as expe
Slide 19: Organic growth continues at double-digit rates
Organic growth continues at double-digit rates Revenue bridge 2019-2020 Composition of revenue growth • Reported growth of 12% in € m • Cumulated portfolio changes 500.9 (end of Sanofi subsidy, (6.8) 446.4 63.0 consolidation of Just – Evotec (1.7) Biologics) • fx effect: -1.5% • Organic growth: 14%,
Slide 20: Organic EBITDA growth despite material mix effects
Organic EBITDA growth despite material mix effects Adjusted EBITDA at constant exchange rates € 111 m Composition of EBITDA development • Decline by 13% affected from in € m portfolio, fx effects and lower 123.1 contribution from milestones (17.2) 4.9 • Cumulated portfolio changes (end of 106.6 subs
Slide 21: Strong balance sheet and cash position leaving room for strategic growth
Strong balance sheet and cash position leaving room for strategic growth Balance sheet – 31 Dec. 2019 versus 31 December 2020 Balance sheet total Equity ratio Capital increase strengthening KPIs in € m in % Equity ratio step-up to 50% Leverage ratio close to zero, 1,180.9 1,462.9 40.4 49.4 pro
Slide 22: Agenda
Agenda 1 Highlights & Strategy 2 Financial performance 2020 3 Scientific and operational progress 4 Guidance 2021 p. 21
Slide 23: Precision medicine is our focus
Precision medicine is our focus Patient databases and models combined with EVOpanHunter/EVOpanOmics and Multi-modality Molecular patient Patient (iPSC) – Diagnostics and databases derived disease models biomarkers • Re-defining health and • Focus on disease relevance • Precision diagnostics disease
Slide 24: Fully invested pipeline, strongly gaining visibility in the next 18 months
Fully invested pipeline, strongly gaining visibility in the next 18 months Progress 2020 of drug candidates in advanced stages Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III EVT201 Insomnia (GABA-A) Selected pipeline events BAY-1817080 BAY-1817080 Chro
Slide 25: Continuously investing into precision medicine
Continuously investing into precision medicine Maintaining leadership with next generation discovery platforms Molecular patient Various Various cohorts databases indications Patient (iPSC) – Astrocytes Oligodendrocytes Natural killer cells Clinical trial in dish derived disease models Microglia Mye
Slide 26: Molecular patient databases generate significant value
Molecular patient databases generate significant value Kidney disease data base (NURTuRE) delivered multiple high value partnerships 2016 2019 2020 Q1 2021 • Upfront payment: € 6 m • Funded by Vifor: € 25 m • Upfront payment: ND • Pipeline building initiated • Research funding • 50% ownership on all
Slide 27: Evotec and Takeda unlocking the undruggable genome
Evotec and Takeda unlocking the undruggable genome RNA-binding small molecules: a complementary approach to antisense oligonucleotides Evotec’s proprietary RNA targeting platform is specifically designed to • Identify RNA tertiary structural elements where SM are able to bind with sufficient selecti
Slide 28: Excellent position for continued growth
Excellent position for continued growth Major developments in 2020 (selection) • EVOiR&D: Multiple new and extended drug discovery and development agreements e.g. Austrianni, BI, Ildong Pharma, Rappta, STORM, Takeda High quality and high performance acknowledged through feedback, 90% repeat busi
Slide 29: The time is now for J.POD® 2 EU
The time is now for J.POD® 2 EU … Rationale for J.POD® 2 in Toulouse, France1) • Global demand for flexible biologics capacity and for more affordable access to medicines is accelerating • J.POD®1 US in Redmond is on track and demand is strong, including co-owned pipeline • Europe is the second larg
Slide 30: Leading in AI / ML driven biologics from discovery to manufacturing
Leading in AI / ML driven biologics from discovery to manufacturing Biologics Platform overview – AI / ML tools accelerate learning PD to manufacturing model GMP Characterisation to PD model (100,000s) (10s) (10,000s) Structure to (100s) data available Sequence to characterisation model Amount of st
Slide 31: (100,000s) (10,000s) (100s)
(100,000s) Modality HT Omics Biomarker(s) DISCOVER Drug intervention point (10,000s) DMTA cycles OPTIMISE Biomarker validation create biomarkers, drive projects… (e.g. tox prediction) 1 vs 1 vs 1 vs 1 vs rest rest rest rest no with no with Compound Name Chen or papers Avg Cmax Cma Cma Cma Cma acetam
Slide 32: Offering resonates with partners
Offering resonates with partners Attraction, Extension, Retention Attraction Extension Structural Retention ≥ 90% CAGR CAGR +9% 100 +18% 1,000 315 315 80 800 283 275 263 263 60 600 40 400 20 200 0 0 2018 2019 2020 2018 2019 2020 2018 2019 2020 New customers during the year No. of customers > € 1 m r
Slide 33: Agenda
Agenda 1 Highlights & Strategy 2 Financial performance 2020 3 Scientific and operational progress 4 Guidance 2021 p. 32
Slide 34: ESG & Sustainability – Committed to take action
ESG & Sustainability – Committed to take action Unique business model aligned with sustainable development goals • #researchneverstops …to develop more precise, accessible and affordable therapies for uncured diseases, underserved patients and a vast amount of people who have no access to modern and
Slide 35: “The data-driven R&D Autobahn to Cures” – In numbers
Strong growth continues while expanding investment into long-term upside “The data-driven R&D Autobahn to Cures” – In numbers Strong revenue growth Adjusted Group EBITDA2) in € m in € m 550-5701) 123.1 105-1201) 500.9 106.6 446.4 95.5 375.4 263.8 57.2 2017 2018 2019 2020 2021 (e) 2017 2018 2019 2020
Slide 36: Strong year ahead: Guidance 2021
Strong year ahead Guidance 2021 Very good top-line growth expected • Assumption based on current orders, prospective milestone payments • Total Group revenues € 550 - 570 m (€ 565 - 585 m at constant exchange rates1) Strong EBITDA – despite massive investments • Regardless of COVID-19, increasing ex
Slide 37: Strong news flow to be continued …
Strong news flow to be continued … Selected latest news in Q1 and goals 2021 Important initial achievements in 2021 Next steps • Contract expansion with DOD on COVID-19 • JPOD® 2 EU to be initiated in Toulouse • Start clinical development of chikungunya (EVT894) • Acceleration of AI/ML partnering ac
Slide 38: Important next dates
Important next dates Financial calendar 2021 Annual Report 2020 25 March 2021 Virtual CMD 2021 20 April 2021 Quarterly Statement Q1 2021 11 May 2021 Virtual Annual General Meeting 2021 15 June 2021 Half-year 2021 Interim Report 11 August 2021 Quarterly Statement 9M 2021 Please click here for the ann
Slide 39: Virtual Capital Markets Day
VIRTUAL CAPITAL MARKETS DAY CAPITAL MARKETS DAY ON 20 APRIL 2021
Slide 40: Your contact:
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Slide 41: Back-up // Additional Financial information
Back-up // Additional Financial information p. 40
Slide 42: Continuously strong revenues, slight GM decline due to different business mix
Continuously strong revenues, slight GM decline due to different business mix Revenues & Gross margin Improved base business and first full Just – Decreasing gross margin (GM) due to lower Evotec Biologics milestone-level in € m in % 500.9 29.8 29.8 30.1 446.4 25.1 39.0 23.9 23.2 23.7 375.4 +12% 29.
Slide 43: Overall growth and acquisitions reflected
Overall growth and acquisitions reflected R&D and SG&A expenses overview, in € m R&D: Focus on metabolic diseases, oncology, and SG&A increase due to overall growth and acquisitions platforms projects 63.9 77.2 58.4 9.3 66.5 6.4 2.0 3.6 57.0 35.6 4.2 0.6 50.0 51.0 30.8 2018 2019 2020 2018 2019 2020
Slide 44: Expansion of equity portfolio affects net result, but holds great value potential
Expansion of equity portfolio affects net result, but holds great value potential Investments in growth strategy set to pay off in future Composition of Net result development • Decline of net result affected from Changes 2020 vs 2019 in € m investments in growth of all 37.2 building blocks and supp
Slide 45: Strong balance sheet with nearly 50% equity ratio
Strong balance sheet with nearly 50% equity ratio Balance sheet overview, in € m Asset base increased due to higher liquidity Strong equity ratio at 49% due to capital increase in from capital increase and growing PPE capex October 1,462.9 1,462.9 1,180.9 481.9 1,180.9 492.0 Cash, cash equivalents a
Slide 46: Healthy DSO growth better than peers’ standards
Healthy DSO growth better than peers’ standards DSO1) development Development of DSO • End of Sanofi subsidy and Covid-19 related (temporary) DSO and LTM DSO, in € DSO in days quarterly LTM-average eased payment terms for 90 partners affected year-over-year 80 comparison only temporarily 70 • Trend
Slide 47: Strong balance sheet is the basis for future growth
Strong balance sheet is the basis for future growth Net debt / EBITDA ratio close to zero Total Net Debts with IFRS 16 Net Debt Leverage Ratio with IFRS 16 Development of Net debt (+) / Net Cash (-) and Net Debt / EBITDA Total Net Debts excl. IFRS 16 Net Debt Leverage exc. IFRS 16 Including IFRS 16
Slide 48: Liquidity growth from capital increase lays the foundation for further growth
Liquidity growth from capital increase lays the foundation for further growth Liquidity bridge FY 2020 vs YE 2019, in € m 15.0 481.9 (20.2) (5.8) 250.0 320.0 44.7 (99.1) (22.7) 31 Dec, 2019 Operating Capex excl. Equity Capital increase Bank loans & Repayment of fx difference Dec 31, 2020 cash flow F