Slide 1: Evotec – Leading external innovation
Evotec – Leading external innovation Evotec AG, Company Presentation, dbAccess Berlin Conference 2018, Berlin, 07 June 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 Macro trend in R&D outsourcing Market overview – Revenues, in € bn Capital efficiency 5-10% p.a. ~33 Switch from fixed costs to 28 ~30 variable business models 25 20 22 17 Capital elasticit
Slide 6: Consequent and fast forward – AP 2022
Consequent and fast forward – AP 2022 “Action Plan 2022 – Leading External Innovation” 2022 2018 2012 2009 No 1 external innovation partner in drug Business segmentation discovery and development for Pharma, Investments to build a world-class biotech and foundations Restructuring service pla
Slide 7: "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 8: 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 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 (France) Basel (CH) Watertown, Munich (Germany) (UK) Branford (USA) ~530 employees ~640 employees ~365 employees ~610 emplo
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: 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 14: Healthy, slightly altered customer base following Aptuit acquisition
Healthy, slightly altered customer base following Aptuit acquisition EVT Execute – Selected KPIs Q1 2018 in % Revenues by customer segment ytd1) Customer type ytd1) Revenues by region ytd1) 100% 100% 100% Mid-sized 9% RoW 2% Remaining 15% 15% 3% Pharma 12% Top 11-30 41% Foun- 9% 19% USA 43% 38% cust
Slide 15: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 14
Slide 16: Building co-owned pipeline with superior platforms and first-in-class targets
Building co-owned pipeline with superior platforms and first-in-class targets EVT Innovate – Initiatives PAGE 15
Slide 17: Addressing major market needs
Addressing major market needs EVT Innovate – Fields of core expertise NEURONAL DIABETES & FIBROSIS RESPIRATORY DISEASES COMPLICATIONS Market potential Market potential Market potential Market potential > € 100 bn > € 500 bn > € 500 bn > € 100 bn PAIN ONCOLOGY ANTI- INFECTIVES Market potential Market
Slide 18: Co-owned pipeline programmes
Fully invested > 80 co-owned pipeline programmes Partnership portfolio Molecule Therapeutic Area / Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia EVT401 Immunology & Inflammation ND1) Oncology ND1) Oncology Clinical Various Women’s health – Endometriosis Various Wom
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: Long-term strategic solid tumour partnership
Long-term strategic solid tumour partnership Celgene & Evotec – Expansion of relationship into oncology Strategic oncology partnership with Celgene Long-term strategic drug discovery and development partnership to identify new therapeutics in oncology Initial focus on solid tumours, leveraging a
Slide 21: One big effort for the benefit of many
One big effort for the benefit of many Sanofi & Evotec – Transaction expected to close in H1 2018 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 r
Slide 22: Global leadership in iPSC
Global leadership in iPSC 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 iPSCs Yama
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 range of Development of beta cell replacement therapy and drug neurodegenerative diseases discovery based on f
Slide 24: 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 and Market Volume Public Market Funding Level Pension Plan Project Governments Finance Funding Gap Banks/
Slide 25: 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 Panion Ltd/ platforms, via strategic investments Fibrocor Tx Approx. € 22 m investments in 2017; long-term commitments with payback horizon > 5 years Attrac
Slide 26: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 25
Slide 27: 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 28: Good performance with new business mix, milestones still missing in Q1 2018
Good performance with new business mix, milestones still missing in Q1 2018 Condensed income statement Q1 2018 – Evotec AG and subsidiaries in € m1) Q1 2018 Q1 20174) % vs. 2017 Group revenue growth mainly due to Revenues 79.0 50.9 55% good performance in the base business and contribution from Ap
Slide 29: EVT Execute & EVT Innovate right on strategy
EVT Execute & EVT Innovate right on strategy Segment information Q1 2018 – Evotec AG and subsidiaries in € m1) Inter- EVT EVT segment Evotec Revenue growth in EVT Execute Execute Innovate elimination Group driven by performance in the base business and contribution from Revenues 78.5 10.4 (9.9) 79
Slide 30: 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 31: "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 30 1) Before contin
Slide 32: 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