Slide 1: Half-year 2022 results presentation
Evolva Half-year 2022 results presentation 25 August 2022 Christian Wichert, CEO Carsten Däweritz, CFO
Slide 2: Disclaimer
Disclaimer The shares of Evolva Holding (“Evolva”) are traded on the SIX Swiss Stock Exchange (ticker: “EVE”). This presentation may contain specific forward-looking statements, relating to Evolva's future business, development and economic performance. e.g., statements including terms like "believe
Slide 3: Agenda
Agenda 1. Business highlights Christian Wichert 2. Mid-term plan 2023 – 2025 Christian Wichert 3. 1H 2022 financial results Carsten Däweritz 4. Outlook 2022 and beyond Christian Wichert © Evolva 2022 – 1H 2022 results – 25 August 2022 3
Slide 4: Business Highlights: Strong increase in revenues and gross contribution margin
Business Highlights Strong increase in revenues and gross contribution margin Total revenues: Gross contribution margin of 10.9% Cash at end of June: CHF 8.1 million CHF 7.4 million (+28%) (-73% in 1H 2021) Profitability Revenues Liquidity Product revenues: Adj. EBITDA1: Available CHF 7.8 million CH
Slide 5: Highest-ever revenue level in 1H 2022 accomplished
Business highlights Highest-ever revenue level in 1H 2022 accomplished, well on track to reach FY guidance of CHF 15 million Product-related revenues (CHF million) Transformation from R&D to commercial Guidance stage has resulted in 46% CAGR with product- >50%1 related revenues since 2017 Increase o
Slide 6: Gross contribution margin of 11% in 1H 2022 achieved
Business highlights Gross contribution margin of 11% in 1H 2022 achieved, well on track to reach full year guidance of “double-digit” Half-yearly development of Gross contribution margin gross contribution margin (in %) << turned positive and double-digit, expected to increase further 20 11 0 A resu
Slide 7: Evolva is active in three promising business areas
Business highlights Evolva is active in three promising business areas Core business areas today Developing business Business Flavors & Fragrances (F&F) Health Ingredients (HI) Health Protection (HP) Nature-based ingredients for F&F Nature-based ingredients for dietary Nature-based products with hig
Slide 8: Flavors & Fragrances: 247% sales growth in 1H 2022
Business highlights Flavors & Fragrances: 247% sales growth in 1H 2022 vs. 1H 2021, driven mainly by Vanillin Sales (CHF million) Main developments 1H 2022 Expected key drivers 2H 2022 247% 308% • Initial focus to boost commercial • Positive momentum continues – performance was on F&F, resulting in
Slide 9: Health Ingredients: sequential sales growth of 28%
Business highlights Health Ingredients: sequential sales growth of 28% in 1H 2022 vs. 2H 2021, next focus area to boost commercial growth Sales (CHF million) Main developments 1H 2022 Expected key drivers 2H 2022 • 28% sequential growth vs. 2H 2021. • Anne De Vos newly appointed as 1H 2021 character
Slide 10: Continuous work on increasing organizational productivity
Business highlights Continuous work on increasing organizational productivity as a foundation for future profitable growth Immediate focus on 3 levers Achievements so far ➢ Supply chain issues resolved Boost commercial • CMO network significantly strengthened, sustainable and scalable performance: •
Slide 11: Agenda
Agenda 1. Financial and business highlights Christian Wichert 2. Mid-term plan 2023 – 2025 Christian Wichert 3. 1H 2022 financial results Carsten Däweritz 4. Outlook 2022 and beyond Christian Wichert © Evolva 2022 – 1H 2022 results – 25 August 2022 11
Slide 12: Mid-term plan: revenues up to 45-50M and EBITDA/Cash break-even in 2025
Mid-term plan 2023 – 2025 Mid-term plan expected to accelerate the positive trend with revenues up to 45-50M and EBITDA/Cash break-even in 2025 Key targets and highlights Key development targets (CHF million) 45-50 < Revenue growth of 40-60% p.a. < targeted >30 Continuous increase of gross >20 contr
Slide 13: Evolva is developing into a biotech leader based on fermentation
Mid-term plan 2023 – 2025 Evolva is developing into a biotech leader providing solutions around natural ingredients based on fermentation Ambition: Resolving bottlenecks of nature Addressing global mega-trends 1. 2. 3. • Wellness Developing new Upscaling of Commercializing • Health molecules molecul
Slide 14: Spotlight 1: Evolva's innovation pipeline
Mid-term plan 2023 – 2025 Spotlight 1: Evolva’s innovation pipeline provides exciting potential for future growth Identification of Scale-up / Full Proof of concept Development Market launch new candidates Formulation Commercialization EFF-231 Market trends EFF-012 EHI-031 L-Arabinose Valencene Mark
Slide 15: Spotlight 2: Vanillin success story
Mid-term plan 2023 – 2025 Spotlight 2: Vanillin success story demonstrates Evolva’s strong R&D and upscaling capabilities Evolva’s core competencies along the value chain: Vanillin is an exciting success story: • Proprietary biotech fermentation Research technology • Vanillin: top ingredient, widely
Slide 16: Spotlight 3: Natural Nootkatone market share gains
Mid-term plan 2023 – 2025 Spotlight 3: Natural Nootkatone allows substantial market share gains addressing naturality and sustainability Evolva today Evolva 2025 ➢ Strong value proposition of Evolva’s Natural Natural Gaining ~50% bioprocess Not present leadership Nootkatone (Value pricing – more aff
Slide 17: Spotlight 4: Resveratrol as powerful anti-oxidant
Mid-term plan 2023 – 2025 Spotlight 4: Resveratrol as very powerful anti-oxidant provides holistic benefits for modern consumer products Cognitive support Healthy ageing, stress relief, mood support, Oral Health mental acuity, cognitive performance, Healthy ageing, periodontitis Alzheimer, e-gaming
Slide 18: Spotlight 4: Resveratrol market share gains and new markets
Mid-term plan 2023 – 2025 Spotlight 4: Evolva aims for substantial market share gains and additional potential from entering new markets Resveratrol market Evolva today Evolva 2025 Strong value proposition of Evolva’s Veri-te Resveratrol: Fermented Evolva as Share of overall market expected to (biot
Slide 19: Spotlight 4: Entering new markets with segment-specific strategies
Mid-term plan 2023 – 2025 Spotlight 4: Entering new markets with segment- specific go-to-market strategies to boost Resveratrol sales Planned expansion trajectory Today’s Core Immediate focus 2023 forward Beyond Human Dietary Pet dietary Functional Pet Cosmetics Pharma supplements supplements Food &
Slide 20: Three phases to develop Evolva to its full potential
Mid-term plan 2023 – 2025 Three phases to develop Evolva to its full potential 3. Evolution to next level 2. Accelerate growth 1. Further build foundation • Commercialize product portfolio for commercial success towards full potential • Enter new market segments with • Further broaden product portfo
Slide 21: Agenda
Agenda 1. Financial and business highlights Christian Wichert 2. Mid-term plan 2023 – 2025 Christian Wichert 3. 1H 2022 financial results Carsten Däweritz 4. Outlook 2022 and beyond Christian Wichert © Evolva 2022 – 1H 2022 results – 25 August 2022 21
Slide 22: Recap: Strong increase in revenues and gross contribution margin
1H 2022 results Recap: Strong increase in revenues and gross contribution margin Total revenues: Gross contribution margin of 10.9% Cash at end of June: CHF 8.1 million CHF 7.4 million (+28%) (-73% in 1H 2021) Profitability Revenues Liquidity Product revenues: Adj. EBITDA1: Available CHF 7.8 million
Slide 23: P&L highlights: Product-related revenue +30%
1H 2022 results P&L highlights: Product-related revenue +30% CHF million 1H 2022 1H 2021 adjusted* adjusted* Revenue from contracts with customers 8.1 6.4 • 30% growth of product-related revenues Product-related revenues 7.8 6.0 Direct production costs (6.9) (10.4) • Gross contribution margin of pro
Slide 24: Key balance sheet items - Assets
1H 2022 results Key balance sheet items - Assets CHF million 1H 2022 2021 • Intangible assets reduced through CHF 17.0 million extraordinary Assets impairment of royalty & licenses, patents & patent applications and Intangible assets 96.6 113.3 product & process development Property, plant and equip
Slide 25: Key balance sheet items – Equity and liabilities
1H 2022 results Key balance sheet items – Equity and liabilities • Equity increase through placement of CHF 6.3 CHF million 1H 2022 2021 million to several long-term oriented institutional shareholders at now discount Equity and liabilities • Members of the Board and Management participated with CHF
Slide 26: Operating free cash flow
1H 2022 results Operating free cash flow CHF million 1H 2022 1H 2021 • Operating activities include CHF 3.9 million Cash Flow increase in Net Working Capital, driven by build-up of finished products inventory Cash position at beginning 11.0 19.7 • Investing activities include capitalized Cash flow f
Slide 27: Agenda
Agenda 1. Financial and business highlights Christian Wichert 2. Mid-term plan 2023 – 2025 Christian Wichert 3. 1H 2022 financial results Carsten Däweritz 4. Outlook 2022 and beyond Christian Wichert © Evolva 2022 – 1H 2022 results – 25 August 2022 27
Slide 28: Well positioned to unlock value creation
Outlook 2022 and beyond Well positioned to unlock value creation Outlook 2022 Mid-term targets ▪ Ongoing positive business momentum ▪ 40-60% revenue growth, mainly driven by ▪ Revenue growth of >50% to CHF 15 million at existing products constant currencies vs. FY 2021 ▪ CHF 20 million in 2023, > CH
Slide 29: Q&A
We are happy to Q&A answer your questions. © Evolva 2022 – 1H 2022 results – 25 August 2022 29
Slide 30: Financial Calendar
Financial Calendar Investora Zurich 21 September 2022 FY 2022 Results 9 March 2023 Annual General Meeting 18 April 2023 © Evolva 2022 – 1H 2022 results – 25 August 2022 30
Slide 31: Appendix
More detailed information about our half year Appendix 2022 financial results can be found here: https://evolva.com/financial-data/hy-results/ © Evolva 2022 – 1H 2022 results – 25 August 2022 31
Slide 32: Gross contribution as key performance measure
HY 2022 results Gross contribution as key performance measure Sales - Direct production costs Declining unit costs due to efficiency gains = Gross contribution Going forward: positive and increasing - Operational costs Largely fix (around CHF 2.5 million) - Operational staff - D&A Mainly capitalized
Slide 33: Precision-fermentation to solve FMCG's challenge
Precision-fermentation to solve FMCG’s challenge to ensure both functionality and sustainability of their products Our USP Functionality Sustainability Consumers want a product Consumers want a product “that doesn’t harm them nor the “that works” planet” But natural ingredients have But synthetic in
Slide 34: Strong proprietary technology platform as backbone
Strong proprietary technology platform as backbone Technology platform STARTING MATERIAL NATURE-BASED INGREDIENTS We are using sugar, water, salts vitamins We provide products that can contribute to health, and minerals to grow our proprietary wellbeing and sensory enjoyment. yeast enabled to produc
Slide 35: Multiple technology approach enables access to many compound classes
Multiple technology approach enables access to many different compound classes Technology approach Sugars Terpenes de novo BIOSYNTHESIS Flavones BIOTRANSFORMATION/BIOCONVERSION Phenylpropanoids Flavonoids Using metabolically engineered microbial cell Using enzymes or microbial cells, inexpensive and
Slide 36: Evolva's strain engineering with new and optimized pathways
Evolva’s strain engineering with new and optimized pathways Strain engineering Yeast Metabolism Yeast is able to metabolize sugar towards a Sugar certain intermediate that can be used as starting point for the biochemical pathway required for the biosynthesis of the new molecule. New Pathway/Enzymes
Slide 37: Evolva runs on fully-fledged organizational capabilities
Evolva runs on fully-fledged organizational capabilities Organizational capabilities Strain Engineering Analytical Chemistry Fermentation DSP Fast integration methods Increased capacities Benchtop bioreactors Filtration, centrifuges, Screening capacities GC, HPLC, LC-MS, LC-UV platform distillation