Evotec Se · XETR:EVT
Evotec — Merger or Acquisition (July 2017)
25 slides from Evotec's merger presentation, Jul 31, 2017
Slide 1: Evotec to acquire Aptuit
Evotec to acquire Aptuit Expanding leadership in external innovation Evotec AG, Investor and Analyst call, 31 July 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 from the management team
Welcome from the management team Investors call on acquisition of Aptuit Werner Lanthaler, CEO Enno Spillner, CFO Mario Polywka, COO Cord Dohrmann, CSO PAGE 2
Slide 4: Agenda
Agenda Strategic rationale and transaction overview Introduction to Aptuit and combined business Financials Next steps PAGE 3
Slide 5: Vision to lead services for external innovation and build co-owned pipeline
Vision to lead services for external innovation and build co-owned pipeline Our strategic agenda 2017 2020 2016 2012 2009 Global leadership position in drug Business segmentation discovery and development Restructuring Investments in discovery Highest quality drug discovery Capital effic
Slide 6: Building highest quality integrated external innovation platform
Building highest quality integrated external innovation 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 der
Slide 7: Compelling transaction rationale for acquisition
Compelling transaction rationale for acquisition Overview – Acquisition of Aptuit Unique cost and time efficient approach for translation of PDCs into clinic (INDiGO®) Best-in-class, integrated capabilities offer end-to-end solutions across drug discovery, pre-clinical and high-end CMC (Chemistr
Slide 8: Fast execution and immediate value generation
Fast execution and immediate value generation Overview – Acquisition of Aptuit Highly accretive to revenue growth with strong margins and solid cash generation:1) 2016 Revenues: € 88 m; 2017(e) Revenues of ~€ 100 - 110 m 2016 EBITDA: € 11 m; 2017(e) EBITDA of ~€ 20 - 22 m Strong growth above
Slide 9: Global centres of excellence for external innovation
Global centres of excellence for external innovation Evotec’s global footprint post integration Princeton, Hamburg (HQ), Watertown, Abingdon/ Toulouse Verona (Italy), Göttingen, Branford (USA) Alderley Park (UK) (France) Basel (CH) Munich (Germany) ~110 employees ~570 employees ~300 employees ~590 e
Slide 10: Scientists at work for new products
Scientists at work for new products Aptuit overview PAGE 9
Slide 11: Agenda
Agenda Strategic rationale and transaction overview Introduction to Aptuit and combined business Financials Next steps PAGE 10
Slide 12: World-class in drug discovery and development
World-class in drug discovery and development Aptuit overview (www.aptuit.com) Most comprehensive set of integrated early discovery to mid-phase drug development services in biotech and Pharma Unique mix of services including integrated drug discovery IND enabling studies and support (INDiGO®)
Slide 13: Market dynamic supports extending value chain
Market dynamic supports extending value chain Growing outsourcing market potential in $ bn Currently available outsourced market Core DD and development outsourcing markets Adjacent markets 60 Total Market Size Available Outsourced Market 18 50 48 17 40 30 16 21 20 16 13 15 11 10 7 3 4 0 14 Drug Dis
Slide 14: Integrated offering improves efficiency
Integrated offering improves efficiency Adding world-class drug discovery, INDiGO® and high-end CMC Target Hit- Lead Pre- Academia ID/Vali- Identi- Optimi- Phase I Phase II Phase III Approval Market clinical dation fication sation PDC Drug Discovery INDiGO® High-end CMC Integrated solutions across
Slide 15: A one-stop-shop for external innovation
A “one-stop-shop” for external innovation Extension of Evotec’s value chain Target Hit- Lead Pre- Academia ID/Vali- Identi- Optimi- Phase I Phase II Phase III Approval Market clinical dation fication sation Evotec today PDC Partner Evotec including INDiGO® IND package Evotec (INDiGO®) Partner Evotec
Slide 16: Market leading solution for effective IND enabling
Market leading solution for effective IND enabling Benefits of INDiGO® process INDiGO® is a unique workflow IND >50% process, accelerating early timeline drug candidates into the clinic reductions (# of weeks INDiGO® removes white space from first across the service continuum synthesis to which
Slide 17: Strong support to create even higher value offerings
Strong support to create even higher value offerings Synergies for EVT Innovate & EVT Execute IND capabilities EVT Innovate & EVT Execute supporting at pre- clinical testing stage DIABETES & NEURONAL Additional highly RESPIRATORY COMPLI- FIBROSIS DISEASES needed top-quality Market potential CATIONS
Slide 18: Complementary customer base offers cross-selling opportunities
Complementary customer base offers cross-selling opportunities Customer synergies with EVT Execute & EVT Innovate Aptuit’s customer base Highly complementary client bases, with limited overlap of customers Low customer/project concentration 5% Venture Capital within Aptuit (no single project wit
Slide 19: All Evotec offerings benefit, especially from INDiGO
All Evotec offerings benefit, especially from INDiGO® Significant operational benefits from acquisition EVT Execute “Expansion along logical next steps of EVT Execute outsourcing value chain” Leading integrated offering in industry “under one roof” and “within one network” Unique INDiGO® increas
Slide 20: Agenda
Agenda Strategic rationale and transaction overview Introduction of Aptuit and combined business Financials Next steps PAGE 19
Slide 21: Accretive revenue growth and solid margin profile
Accretive revenue growth and solid margin profile Aptuit – Revenues and EBITDA1) in € m CAGR 2016-2021 160 > 15%(e) 140 120 ~100-110 100 87.7 Revenues Aptuit 80 65.3 show strong Revenues 60 46.5 40 growth 20 0 2014 2015 2016 2017 (e) 2018 (e) 2019 (e) 2020 (e) CAGR 2016-2021 35 > 15%(e) 30 Solid 25
Slide 22: Significant headroom to fund future operations post-acquisition
Significant headroom to fund future operations post-acquisition Transaction financing in € m Debt financing on consolidated balance sheet (Rev > € 300 m, Assets 140 > € 500 m) is available at excellent terms € 187 m liquidity and € 20 m 20 credit line available to Evotec immediately 100 € 140 m
Slide 23: Agenda
Agenda Strategic rationale and transaction overview Introduction of Aptuit and combined business Financials Next steps PAGE 22
Slide 24: Transaction to be effective latest by Q3 2017
Transaction to be effective latest by Q3 2017 Summary of acquisition 1 Financial Purchase of all of Aptuit shares with payment in cash The transaction is subject to customary closing conditions, 2 Transaction including receipt of all regulatory approvals and is expected to close in Q3 2017 Fur
Slide 25: Research never stops
‘RESEARCH NEVER STOPS’