Slide 1: Evotec – Leading external innovation
Evotec – Leading external innovation Evotec AG, German Equity Forum 2018, 26 November 2018, Frankfurt am Main
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 approx. 100 co-owned first-in-class projects in ma
Slide 5: From fixed to variable costs to increase productivity
From fixed to variable costs to increase productivity R&D outsourcing market by stage in € bn ∑ ~ € 150 bn Key Drivers ~30-36 ~85-90 ~10 100% 80% 5 55 ~7 (~50%) Capital (~60%) 60% ~25 (~70%) Elasti- (~90%) city 40% 5 35 20% ~3 (~50%) (~40%) (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1
Slide 6: "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 7: 2,500 x unique expertise within global footprint
2,500 x unique expertise within global footprint Centres of excellence Hamburg (HQ), Abingdon, Toulouse, Lyon Verona (Italy), Princeton, Göttingen, Alderley Park (France) Basel (CH) Watertown, Munich (Germany) (UK) Branford (USA) ~540 employees ~660 employees ~520 employees ~610 employees ~110 emplo
Slide 8: Fully integrated ONE stop-shop for innovation
Fully integrated ONE stop-shop for innovation The business model – EVT Execute & EVT Innovate PAGE 7
Slide 9: Building a balanced portfolio
Building a balanced portfolio Value proposition – Action Plan 2022: Leading External Innovation Pipeline Co-Ownership via assets biology and/or process and platform innovations Action Plan 2022 Services along the value chain PAGE 8
Slide 10: Output goals define R&D intensity
Output goals define R&D intensity Bayer & EVT in Endometriosis – Example Mission Bayer targets Result 2012 20171) 3 INDs 3 novel first- in-class targets EVT targets 40% in woman's more cost health in clinic efficient by 2018 25% faster Other targets PAGE 9 1) Bayer estimates White Paper 2017; Excell
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
Integrated and systematic 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 Proteomics optimisation and valid
Slide 14: Continued growth
Continued growth EVT Execute – Key performance indicators 9M 2018 Revenues1) Adjusted EBITDA4) Strong upswing in revenues (in € m) (in € m) due to growth in the base business and Aptuit Intersegment +53% 254.3 +50% 62.1 contribution revenues 35.6 Increase in adjusted EBITDA follows revenue growt
Slide 15: Strong and well-balanced customer mix
Strong and well-balanced customer mix EVT Execute – Selected KPIs 9M 2018 Revenues by customer Customer type ytd1) Revenues by region ytd1) segment ytd1) (in %) (in %) (in %) 100% 100% 3% 100% Mid-sized ROW 16% Pharma Remaining 39% Foundations 7% USA 42% Top 10–30 Biotech 38% 18% Customers Top 10 Lo
Slide 16: Strong outlook for rest of year and into 2019
Strong outlook for rest of year and into 2019 EVT Execute – Expected key milestones 2018 New long-term alliances integrating the offering of Aptuit, strategic launch of INDiGO New performance-based integrated technology/disease alliances Expansion of foundations and biotech network in USA/Euro
Slide 17: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 16
Slide 18: Milestones, new partnerships and accelerated R&D
Milestones, new partnerships and accelerated R&D EVT Innovate – Key performance indicators 9M 2018 Revenues Adjusted EBITDA1) R&D expenses (in € m) (in € m) (in € m) +55% 51.3 +58% 33.2 17.9 24.1 16.3 15.3 6.6 (2.5) (10.7) 9M 20162) 9M 20173) 9M 2018 9M 20162) 9M 20173) 9M 2018 9M 20162) 9M 20173) 9
Slide 19: 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 18
Slide 20: Platform initiatives with game-changing potential and for better translation
Platform initiatives with game-changing potential and for better translation Next generation drug discovery iPSC Panomics Artificial Protein intelligence Homeostasis PAGE 19
Slide 21: Approx. 100 co-owned projects across broad range of therapeutic areas
Approx. 100 co-owned projects across broad range of therapeutic areas Co-owned portfolio Co-owned Co-owned Co-owned Value chain Discovery Pre-clinical Clinical > 60 projects > 25 projects > 10 projects Ø € 1-10 m upfront Ø € 150 m mile- Ø Commercials and substantial Ø 8% royalties stones per p
Slide 22: Strong progress in building co-owned pipeline
Strong progress in building co-owned pipeline Partnership portfolio of approx. 100 co-owned, fully invested projects Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia BAY-1817080 Chronic cough Phase II start EVT401 Immunology & Inflammation Cl
Slide 23: Strong progress in first-in-class alliances
Strong progress in first-in-class alliances Progress overview (Examples) Chronic kidney disease (“CKD”) Immuno-oncology Highly innovative therapeutics in diabetic Small molecule-based cancer immuno- complications (e.g. CKD) therapies to complement checkpoint inhibitors (together with APEIRON Biologi
Slide 24: 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 25: New strategic partnerships
New strategic partnerships Celgene & Evotec – Overview of new alliances Strategic oncology partnership Targeted protein degradation partnership (initiated May 2018) (initiated Sept 2018) Long-term drug discovery and development partnership to Promising approach addressing “undruggable” targets v
Slide 26: 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 27: 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 Fibrocor Tx platforms, via strategic investments Approx. € 22 m investments in 2017; long-term commitments with payback horizon > 5 years Attractive € 75 m
Slide 28: Just the beginning for EVT Innovate
Just the beginning for EVT Innovate EVT Innovate – Expected key milestones 2018 New clinical initiations and good progress of clinical pipeline within existing partnerships Expansion of academic BRIDGE network Strong R&D progress within Cure X/Target X platforms and new Innovate partnerships
Slide 29: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 28
Slide 30: Strong performance continues
Strong performance continues 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) (in %) 5
Slide 31: Strong financials with new business mix
Strong financials with new business mix Condensed income statement 9M 2018 – Evotec Group in € m1) YTD 2018 YTD 20175) % vs. 2017 Growth in base business, Aptuit Revenues 270.0 171.5 57% contribution (2018: € 83.6 m) and milestones Gross margin2) 31.0% 34.8% – Expected increase in R&D R&D expe
Slide 32: Strong team and shareholders for innovation
Strong team and shareholders for innovation Management & shareholder structure ̴ 9% Roland >3% AGI2) >3% DWS3) Oetker/ROI Management Board Supervisory Board Werner Lanthaler (CEO) Wolfgang Plischke >3% Goldman Sachs Long-time experience in Ex-Bayer >3% Pharma & biotech Bernd Hirsch BlackRock,
Slide 33: Guidance confirmed and strong outlook 2019
Guidance confirmed and strong outlook 2019 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 € 35-45 m2) (previously: € 20-30 m) investments PAGE
Slide 34: 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