Evotec Se · XETR:EVT
Evotec — Investor Day (June 2023)
68 slides from Evotec's investor day presentation, Jun 5, 2023
Slide 1: Capital Markets Day
Capital Markets Day Together for a sustainable & efficient Shared Economy in R&D Evotec SE, Capital Markets Day, 5 June 2023
Slide 2: Cautionary statement regarding forward-looking statement
Cautionary statement regarding forward-looking statement Information set forth in this presentation contains forward-looking statements, which involve a number of risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, which are often indicate
Slide 3: Agenda
Agenda 1. Sustainability makes us better & more competitive 2. Where we stand today 3. Our contribution to UN SDG 3 4. Better access for tomorrow 5. Resilient into the future 6. Q&A PAGE 3
Slide 4: Sustainability makes us better & more competitive
Sustainability makes us better & more competitive Ahead of the curve PAGE 4
Slide 5: Navigating through challenging times requires high agility and resilience
Navigating through challenging times requires high agility and resilience Global risk landscape Adverse outcomes of frontier technologies Widespread cybercrime Nodes & cyber insecurity Interstate conflict Risk influence Digital power concentration High Digital inequality Terrorist attacks Ineffectiv
Slide 6: Climate protection is life saving and a key theme for R&D
Climate protection is life saving and a key theme for R&D Health and climate change: code red for a healthy future • Heat-related deaths have increased in 94% of Days with temperatures > 30°C, globally global regions monitored from 2000 to 20201 • Increasing temperatures enable vectors of infectious
Slide 7: Reducing DALY with precision medicine and better access for all
Reducing DALY1 with precision medicine and better access for all Reducing the burden of diseases Shifting Disability-adjusted Life Years with Reducing inequalities prevention, early intervention & better access2 • Prevalence of DALYs range from 20,000 per 100,000 inhabitants in industrialised 3 coun
Slide 8: Our purpose is to go VERY long as ONE – #researchneverstops
Our purpose is to go VERY long as ONE – #researchneverstops Sustainable thinking is holistic and ensures long-term success Best possible environment for The “shared economy” in R&D employees and potential recruits • Integrated platform for >800 partners • Engagement & commitment • Sharing values of
Slide 9: Staying ahead of the curve
Staying ahead of the curve Key levers for resilient responses • Together for Medicines that matter • Precision medicine, better access Business model • Diverse portfolio contributing to UN SDGs Environmental Social Governance • ESG Performance & compliance Organisational • Holistic risk and impact m
Slide 10: Action Plans give clear guidance despite external challenges
Action Plans give clear guidance despite external challenges Action Plans in numbers Challenges Financial Avian War in Cyber- MERS Brexit COVID-19 crisis Influenza Ukraine attack 2025 2021 2018 2012 2009 Action Plan 2025 Action Plan 2022 Leadership in data, science, Action Plan 2016 Aspire global le
Slide 11: Bouncing back better
Bouncing back better Development since detection of cyber-attack and plans forward Shut-down / containing risk of propagation Forensics protecting data assets Restart in Zero contained area compromise >80% Robust processes in “mixed zone” productivity Most secure Design and implementation of upgrade
Slide 12: Already designed for sustainability right from the very beginning
Already designed for sustainability right from the very beginning The core idea of Evotec – evolutionary technology for all “The goal of Evolution is not one single human, it is mankind.” Eigen’s theories about self-organisation of complex molecules and his development of the evolution machine found
Slide 13: Global needs require global collaboration
Global needs require global collaboration Building a strong network for better access Meeting with Mia Mottley, Signature top 100 global ceremony leader - of EIB loan outspoken at Evotec’s advocate for Campus Curie addressing in Toulouse climate change • Global network of >15 mission-driven foundati
Slide 14: Precision & efficiency enhancing human well-being
Precision & efficiency enhancing human well-being The shared economy platform in R&D Our focus areas Our contribution to UN PanOmics1 iPSCs SDG 9.4, 9.5 & 9.b • Building resilient research infrastructure that promotes innovative and sustainable biomedical R&D to enhance human well- being • Enhancing
Slide 15: Sharing as basis for success of R&D network
Sharing as basis for success of R&D network A stable foundation RoW 4% >800 ~38% Europe Revenue 35% by region 63% USA Partners Revenue share with TOP 10 partners NFP, Academic, Foundations 7% >92% 118 Top 20 Pharma Revenue 38% by partner 42% Biotech Repeat No. of partners with business > € 1 m reven
Slide 16: Building a massive long-term royalty pool
Building a massive long-term royalty pool Selected KPIs # programmes by disease area Immunology / >130 18 Inflammation 34 Oncology 63 Commu- Co-owned Clinical nicable diseases 37 pipeline assets stage 40 40 Neuroscience Metabolic disease and Pain 91 # programmes by model >€ 15 bn 8-10% 44 56 Potenti
Slide 17: Agenda
Agenda 1. Sustainability makes us better & more competitive 2. Where we stand today 3. Our contribution to UN SDG 3 4. Better access for tomorrow 5. Resilient into the future 6. Q&A PAGE 17
Slide 18: Where we stand today: ESG Performance
Where we stand today ESG Performance PAGE 18
Slide 19: Benchmarking based on selected ESG-KPIs in our industry
Where we stand Benchmarking based on selected ESG-KPIs in our industry Workforce turnover 25% 50% 12% Only 9% with SBTi targets with Engagement programme Benchmark Evotec EcoVadis Score 46% 62% 52% Men 39% Evotec SE with Supply chain ESG assessments 4% 5% 0% 54% 0-25 25-45 45-65 65-85 85-100 Women P
Slide 20: In alignment with partners – improving share of wallet
In alignment with partners – improving share of wallet Partners committed or with set SBT targets (Examples1) Reduce scope Reduce scope Reduce scope Reduce scope Reduce scope Reduce scope Reduce scope Reduce scope 1 GHG emissions 1 and 2 GHG 1 & 2 GHG 1, 2 & 3 GHG 1 & 2 emissions 1 & 2 emissions 1 &
Slide 21: Committed to Science-based targets to mitigate climate change
Committed to Science-based targets to mitigate climate change Our near-term goals Science-based targets balancing fast growth and responsibility for the planet Commu- Commit Develop Submit nicate Disclose • RE100 by 2026 (LTI goal 2023) • 50% reduction of Scope 1 and Evotec SE commits to reduce abso
Slide 22: Our reference point
Our reference point GHG inventory results • Reduction of Scope 1&2 emissions by 2%, while growing the business at 22% • Energy intensity reduction based on all relevant metrics • Scope 3 emission still growing in line with revenues – Supplier Engagement programme starting in 2023 PAGE 22 Scope 1: Na
Slide 23: Mitigation measures already started … and rewarded
Mitigation measures already started … and rewarded Emission reductions in Abingdon and Toulouse / Award win in Italy B95 renovation, 2021-2022: Replaced heating system with electrical even before heat pump system with estimated savings of ~800 tons target setting CO2e per year 2022: Joined the renew
Slide 24: Additional fast improvements are possible
Additional fast improvements are possible Our Scope 1 & 2 emissions by site 0 5,000 10,000 15,000 20,000 25,000 ~40,000 tCO2e Scope 1&2 Verona • Base year-2021 Toulouse • Top six sites accounting for Halle >90% of emissions Redmond • Verona site with exceptional Abingdon CO2e savings potential due t
Slide 25: Lowering the environmental burden
Lowering the environmental burden Waste Waste 2022 (~3,600 tonnes) Just the beginning • 2022 was first year of systematic Composted waste measurement 0.3% 14.7% • 25% decrease versus 2021 Landfill overstated due to overly conservative modelling last year • Aiming to achieve 0% landfill waste disposa
Slide 26: Water savings almost mitigating construction work related effects
Water savings almost mitigating construction work related effects Water consumption by site (mega litres) 0 5 10 15 20 25 30 • Increase of total water usage Toulouse by 5% from 99.3 mega litres in Verona 2021 to 104.3 mega litres in 2022 Redmond Hamburg • Construction work in Toulouse and first full
Slide 27: Supplier engagement for supply chain resilience
Supplier engagement for supply chain resilience Location of our suppliers Increasing our supply chain resilience • We register and track our > 6,000 suppliers • 99% of our suppliers are 78% 1% from Europe and the US 21% in Europe in Asia Pacific − Close to our partners in North America − Reduced ris
Slide 28: Sustainable growth enabled by strong culture, values & people
Sustainable growth enabled by strong culture, values & people ~5,000x talent and agility 46% Men 4,952 91 33% employees Nationalities 54% Share of PhDs Women 4,952 4,198 3,572 31% 38 2020 2021 2022 Women in Average age Senior Management Ca. 500 net new talents planned for 2023 PAGE 28
Slide 29: Building resilience to support our people
Building resilience to support our people People's development and health & safety EVOacademy Health & safety strategy • Web-based platform for skills development • New health & safety vision and plan driving 2025 goals • Broad catalogue of learning opportunities; • Greater attention and focus on le
Slide 30: Strong Sustainability Governance in place for better preparedness
Strong Sustainability Governance in place for better preparedness Governance structure reports into Management Board Supervisory Board supervise and guides Supervisory Board as a whole is responsible for defines support in strategy ESG oversight and therefore addresses ESG corporate development topi
Slide 31: Agenda
Agenda 1. Sustainability makes us better & more competitive 2. Where we stand today 3. Our contribution to UN SDG 3 4. Better access for tomorrow 5. Resilient into the future 6. Q&A PAGE 31
Slide 32: Our contribution to UN SDG 3: Partnering for global impact
Our contribution to UN SDG 3 Partnering for global impact PAGE 32
Slide 33: Strong contribution to achieve UN SDG 3 sub targets
Strong contribution to achieve UN SDG 3 sub targets R&D and Access to improve Global Health Support the research and development • Most powerful discovery & of vaccines and medicines for the development infrastructure communicable and non-communicable diseases and access for all to affordable • Para
Slide 34: Creating a valuable social impact
Creating a valuable social impact Our portfolio in the light of SDGs Disease areas related to SDG 3 & 5 Kidney Diseases Others2 11% Women’s reproductive SDG 7% health 28% related areas 5% Tuberculosis 57% Cancer 25% 4% Hepatitis 15% Age- 2% Diabetes related 1% Cardiovascular diseases diseases1 Respi
Slide 35: An active contribution to UN Sustainable Development Goals
An active contribution to UN Sustainable Development Goals Selected targets of UN SDGs 3 & 5 Combat Hepatitis End epidemic of TB by 2030 End epidemic of Malaria Chronic hepatitis B virus carriers Fatal TB cases in 2020 by 2030 Malaria cases 2020 350 m 1.5 m 241 m Achieving universal access to Treatm
Slide 36: More antibacterial drugs are increasingly needed
More antibacterial drugs are increasingly needed A limited pipeline driven by smaller organisations NMEs are being rendered obsolete or commercially unattractive A 2021 survey indicates smaller because of drug resistance, toxicity, or newer-generation derivatives institutions developing new drugs2 N
Slide 37: Antibacterials are essential for life saving medical procedures
Antibacterials are essential for life saving medical procedures Prevention and treatment of infections Cancer Organ Dialysis Sepsis Surgery Chronic diseases 9.8 million people transplants >2 million people 11 million people Globally 1 in 5 >422 million people receive Globally >150,000 with kidney di
Slide 38: Anticipating a resurgence of vector-borne diseases in a changing world
Anticipating a resurgence of vector-borne diseases in a changing world Urbanization, climate change & globalization fueling re-emergence of vector-borne disease Urbanization Globalization Increasing temperatures Creates ideal breeding grounds Increasing both Enables aedes species of for vectors & de
Slide 39: Viral pandemics are a permanent threat
Viral pandemics are a permanent threat >10 pathogenic viruses have emerged in the last century, many more are being identified Viral pandemics killed >85 million people in the last 100 years. The next pandemic is certain. Hong Kong Spanish Asian In- Influ- Influ- SARS- Monkey- Influenza CCHF fluenza
Slide 40: Sustaining the shared Infectious diseases R&D economy
Sustaining the shared Infectious diseases R&D economy Ideally positioned end-to-end R&D engine combining world-class expertise and platforms Extensive experience and innovation in infectious diseases R&D • Deep rooted heritage in anti-infectives built upon years of experience • Global partner networ
Slide 41: Partnering in TB for global impact
Partnering in TB for global impact A major contribution to the TB R&D ecosystem Supporting our partners in the Member of 3 major consortia as Maximizing impact through sha- shared R&D economy well as long-term partnerships in ring of knowledge and expertise • A globally unique, deep and broad TB TB
Slide 42: Example: Investing in solutions to antimicrobial resistance
Example: Investing in solutions to antimicrobial resistance Driving innovation against bacterial threats Platform investments for antimicrobial R&D at the leading edge • EvostrAInTM: Highly valuable collection of ~10,000 strains from clinic and reference collections • Complex assays, technologies an
Slide 43: Therapeutic approaches in virology to target host and pathogen
Therapeutic approaches in virology to target host and pathogen Working across modalities to target essential viral processes or the host response Boosting innate Boosting adaptive Neutralising immune system immune system antibodies RNA targeting • First line of • Antigen specific Enzyme inhibition d
Slide 44: Significant pipeline against a range of viral threats
Significant pipeline against a range of viral threats Complementary antiviral approaches and modalities Lead Virus Target Modality TV / Assay dev Hit ID Hit to lead optimization PCD Phase I CHICKV Neutralizing Antibody Host SARS-CoV 2 Neutralizing Antibody Host HBV Target RNA Protein degradation Tar
Slide 45: Agenda
Agenda 1. Sustainability makes us better & more competitive 2. Where we stand today 3. Our contribution to UN SDG 3 4. Better access for tomorrow 5. Resilient into the future 6. Q&A PAGE 45
Slide 46: Better access for tomorrow
Better access for tomorrow Efficient use of resources for equitable benefits for all PAGE 46
Slide 47: Solving one access challenge at a time: underserved regions
Solving one access challenge at a time: underserved regions Illustration of challenge and solution elements Case study – Countries where key PD-1 Enabling new antibodies are currently not available business models Facility building costs, US$m Traditional ~800 – Facility 1,000 -70- J.POD® - 250 80%
Slide 48: Solving one access challenge at a time: underserved indications
Solving one access challenge at a time: underserved indications Illustration of challenge and solution elements 50% 30 million people of the people affected by 1. High titer cell lines in Europe are living rare diseases are children with rare disease 2. Rapid turn around 7,000 30 Product A 2 days mi
Slide 49: Solving one access challenge at a time: underserved populations
Solving one access challenge at a time: underserved populations Illustration of challenge and solution elements Case example for top-5 mAb therapy – Psoriatic Arthritis Comparison of annual treatment costs U.S., in USD (000s)1 US 65 Lower COGs potential Italy 15 US$/g UK 13 Top-quartile -77% facilit
Slide 50: With the IRA, a first domino piece fell over with regard to drug pricing
With the IRA, a first domino piece fell over with regard to drug pricing Illustrative scenario for end-of-lifecycle biologics and biosimilars A scenario for pricing impact? Conceptual view on future price levels Before IRA After IRA Biologics Biosimilars (2-3 years before patent loss) PAGE 50 Source
Slide 51: Partnership for better access
Partnership for better access 9 May – signing of collaboration with Sandoz Strategic tech partnership 1 for biosimilars development and manufacturing 2 Addressing health inequity & inequality worldwide 3 Expanding global access to biotherapeutics 4 Global network access with global PAGE 51
Slide 52: Tech partnership for biosimilars development and manufacturing
Tech partnership for biosimilars development and manufacturing Deal rationale and key elements • Long-term partnership covering development and commercial manufacturing Strategic • Non-disclosed double-digit-million upfront; future payments dependent on partnership in successful development progress
Slide 53: Global access with global network
Global access with global network Cloning of J.POD facilities – Status and timing J.PLANT Seattle, Washington, US • 500L SUB • Phase I – Clinical • Over 34 runs “S.POD” – Cloning • 100% success years of J.POD® facilities (option) J.POD® Redmond, Washington, US • 100% Sandoz-owned • 500L & 1,000L SUB
Slide 54: Just – Evotec Biologics business model just at the beginning
Just – Evotec Biologics business model just at the beginning Key facts • First large-scale industry partnership for Just – Evotec Biologics • Validation of continuous manufacturing platform as platform of choice for novel biotherapies and biosimilars • Introducing the shared economy for biosimilars
Slide 55: Aspiring "Lights-out manufacturing"
Aspiring “Lights-out manufacturing” Less human intervention reduces risk of failure Protein A Viral Polishing Capture Viral Inactivation Chromatography Depth Filtration ILC/ILDF Formulation • Manual operations Traditional Filtration • Each of the operations fed batch Mix Mix is an individual batch H
Slide 56: Highly intensified processing yields to lowest possible COGs
Highly intensified processing yields to lowest possible COGs The key to start the paradigm shift Fully end-to-end continuous process COGs for late-stage products >25-day production • COGS from 200 to 50 $/g -75% • Shorter switch between products Traditional Just – Evotec CDMOs Biologics PAGE 56 DS =
Slide 57: Disrupting the industry with flexible and agile continuous manufacturing
Disrupting the industry with flexible and agile continuous manufacturing J.POD® – The physical expression of agility Time to set up a J.POD® Cost of a J.POD® Smaller Footprint is short, Years facility, US$ m Square feet x 1,000 • Reduced cost and time to set ~4.0 ~800 - 1,000 ~400 up facility Both s
Slide 58: J.PODs are environmentally friendly by design
J.PODs are environmentally friendly by design J.POD Toulouse’s incorporated key LEED1 principles Key LEED elements • Water usage reduced − No clean/steam in place = 50% less process water needed − Low flow fixtures for showers/restrooms; Aquasense faucets • Sustainable building materials − Low-carbo
Slide 59: Plant design determines efficient energy use
Plant design determines efficient energy use Energy profile of J.PODs Energy consumption • Reduced facility footprint of biologics manufacturing − Single Use systems eliminate clean/steam utilities & piping − Small cleanroom PODs reduce HVAC (Heating, Ventilation, Air Conditioning) energy demand • E
Slide 60: Together in collaboration for a better future
Together in collaboration for a better future Just-Evotec Biologics memberships NIIMBL Impact • The program provides scientists and the teams that support laboratories with actionable ways to make meaningful change. Members National To date, My Green Lab has supported over 1500 labs in a range • Ind
Slide 61: Agenda
Agenda 1. Sustainability makes us better & more competitive 2. Where we stand today 3. Our contribution to UN SDG 3 4. Better access for tomorrow 5. Resilient into the future 6. Q&A PAGE 61
Slide 62: Resilient into the future: Setting effective goals
Resilient into the future Setting effective goals PAGE 62
Slide 63: Our promise: ESG Goals 2023
Our promise ESG Goals 2023 Approve and implement SBTi initiative action plan at all Evotec sites and invest one percent of 2022 revenues to achieve SBTi targets Conduct engagement survey in 2023 Define and communicate a management plan for 2024 and beyond based on results Engage sustainability champ
Slide 64: On track towards reaching Action Plan 2025 goals
On track towards reaching Action Plan 2025 goals Guidance 2023, updated for non-recurring effects of cyber-attack Implied growth Guidance 2023 YE 20221 at midpoint Group revenues € 820– 840 m € 751 m >10% (at constant fx-rates2) (€ 835 – 855 m) Unpartnered R&D3 € 70 – 80 m € 70 m At least stable Adj
Slide 65: Our mid-term aspirations are "… just at the beginning"
Our mid-term aspirations are “… just at the beginning” 2020-2025 estimated key performance indicator goals1 Group revenues Adjusted group EBITDA in € m in € m >100% ≥180% 500.9 >1,000 106.6 ≥300 Unpartnered R&D Co-owned projects2 in € m >100% >100% 46.4 >100 118 >250 PAGE 65 1 As presented H1/2021 2
Slide 66: Executing to accelerate growth along Action Plan 2025
Executing to accelerate growth along Action Plan 2025 Selected major newsflow 2023 PanOmics • New strategic partnerships and expansions of co-owned alliances • New clinical trial initiations • Significant progress of later stage co-owned pipeline iPSCs • New strategic partnerships • Progression of p
Slide 67: pREscaRcHnevensTors
pREscaRcHnevensTors
Slide 68: Volker Braun, SVP Head of Global Investor Relations & ESG
Volker Braun SVP Head of Global Investor Relations & ESG +49 40 560 81 775 volker.braun@evotec.eu << temporary