Slide 1: Emerging stronger
Emerging stronger Pipeline building gaining speed Evotec SE, H1 2023 results call, 29 August 2023
Slide 2: Disclaimer
Disclaimer This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries) is being delivered on behalf of Evotec SE (the “Company”, “we,” “our” or “us”). This presentation is made pursuant to Sec
Slide 3: Welcome! The Management Team
Welcome! The Management Team Werner Lanthaler Laetitia Rouxel Matthias Evers CEO CFO CBO Craig Johnstone Cord Dohrmann COO CSO PAGE 3
Slide 4: Agenda
Agenda 1. Highlights 2. Financials H1 2023 & Guidance 2023 3. Science & Operations H1 2023 4. ESG, Outlook PAGE 4
Slide 5: Positive developments outlast impact from cyber attack
Positive developments outlast impact from cyber attack Highlights & lowlights Highlights • 14% revenue growth despite cyber-incident; Record Q1 at 30% growth and strong profitability • Collaboration with Janssen for development of innovative immune-based therapies in oncology • Extension and expansi
Slide 6: Action Plan 2025 on track despite external challenges
Action Plan 2025 on track despite external challenges Action Plans in numbers External challenges Financial Avian War in Cyber- MERS Brexit COVID-19 crisis Influenza Ukraine attack 2025 2021 2018 Emerging 2012 2009 Action Plan 2025 stronger Action Plan 2022 Leadership in data, science, Action Plan 2
Slide 7: Growing milestone cascade towards a massive royalty pool
Growing milestone cascade towards a massive royalty pool Selected KPIs # programmes by disease area* Immunology / >140 19 Inflammation 12 Oncology Commu- 43 nicable 30 Co-owned Clinical diseases pipeline assets stage 25 31 Neuroscience Metabolic disease and Pain > 300 programmes by model >€ 15 bn 8-
Slide 8: Agenda
Agenda 1. Highlights 2. Financials H1 2023 & Guidance 2023 3. Science & Operations H1 202 4. ESG, Outlook PAGE 8
Slide 9: Strong start in Q1 – massive Q2 impact of temporary nature
Strong start in Q1 – massive Q2 impact of temporary nature H1 2023 revenue composition by quarters/months (€ m) € ~70 m Business dynamics intact (net) • Very strong start to the year with 30% revenue growth in Q1 2023 • Just – Evotec Biologics ahead of plan based on closing of Tech- Partnership with
Slide 10: H1 2023 – a coin with two sides
H1 2023 – a coin with two sides Income statement KPIs H1 2023 – Evotec SE and subsidiaries in € m1 H1 2023 H1 2022 Change Drivers Revenues 383.8 336.9 14% Precision Medicine and Biologics of which Just – Evotec Biologics (JEB) 59.0 21.4 >>100% Pilot studies recognised by Sandoz Milestones, Upfronts
Slide 11: Strong balance sheet as solid base for future growth
Strong balance sheet as solid base for future growth Balance sheet and Cash-flow items H1 2023 – Evotec SE & subsidiaries Balance sheet total Equity ratio Operating Cash-flow in € m vs. 31 Dec 2022 in % vs. 31 Dec 2022 in € m vs. H1 2022 2,257.2 2,301.2 52.6 51.0 240.6 (5.6) Net Debt ratio Liquidity
Slide 12: Resilient with strong comeback in H2
Resilient with strong comeback in H2 Guidance 2023 Guidance 20234 YE 2022 Comments At least stable Group revenues € 750– 790 m € 751.2 m despite approx. € 70 m (at constant fx-rates1) (€ 765 – 805 m) one-off effect Unpartnered R&D2 € 60 – 70 m € 69.9 m Stable Mitigation of large parts Adjusted EBITD
Slide 13: Approx. 8% revenue one-off impact due to cyber-attack
Approx. 8% revenue one-off impact due to cyber-attack Revenue guidance bridge € 820 – 840 m € 750 – 790 m Manageable one-off effects and € -100 m reflecting market sentiment € 20 – 40 m €- 20 m € 30 m • Revenues (net), missed in Q2 2023, representing ~8% of initial revenue guidance • Missed revenues
Slide 14: Embracing the moment to learn, grow, and become even more efficient
Embracing the moment to learn, grow, and become even more efficient Better, safer, more agile Bouncing back better • Securing liquidity and profitability 1 Value Protection Programme (VPP) • Improving processes and systems • Improving GMP compliance • Preparing focused ERP build-out in UK and J.POD
Slide 15: Offsetting one-off burdens
Offsetting one-off burdens Adj. EBITDA guidance bridge € 115 – 130 m Better, safer & more efficient • Net impact of one-off costs to re-build business and missed € -80 – revenues of € 80 – 85 m -85 m € -10 m € 60 – 80 m € ~25 m • Biggest impact from missing revenues of Development / API € ~15 m manu
Slide 16: Agenda
Agenda 1. Highlights 2. Financials H1 2023 & Guidance 2023 3. Science & Operations H1 202 4. ESG, Outlook PAGE 16
Slide 17: Scientific leadership translating in commercial success
Scientific leadership translating in commercial success Massive milestone & royalty pool “…just at the beginning” Technology-Partnership for biosimilars develop- Broadened and deepened strategic alliance in neurodegeneration ment and manufacturing • Extension and expansion for eight more years • Por
Slide 18: The growing “iceberg” of first & best-in-class treatment options
The growing “iceberg” of first & best-in-class treatment options >140 co-owned projects Inflammation & Neuroscience & pain Oncology Metabolic diseases Immunology1 Virology, Anti-bacterial & Global health Approved SK Bio PhIII Jingxin PhII Bayer Carrick Topas Clinical Centrexion ND Exscientia Exscien
Slide 19: >140 co-owned projects leading to massive milestone cascade
>140 co-owned projects leading to massive milestone cascade1 20-yr milestones pipeline • Collaborations with more than 30 Partners bearing massive upside from milestones… • … and subsequent royalties in case of success 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2
Slide 20: Just – Evotec Biologics – Sales order book approaching € 1 bn
Just – Evotec Biologics – Sales order book approaching € 1 bn Key achievements 2021-2023 Closed Sales Key progress in € m >850 Up to US$ 640 m for development work plus massive upside Anti-Plague mAb develop- ment programme initiated >8x Development programme for Orthopoxvirus mAb candidates 3x >100
Slide 21: J.POD – commercial biologics manufacturing stepping up
J.POD – commercial biologics manufacturing stepping up Progress and status Aerial view of new location in Redmond, Washington, US View of coming J.POD in Toulouse (architectural rendering)1 Arrival and installation of first PODs in Toulouse • Start of operations on track, e.g., Sandoz, US Department
Slide 22: Agenda
Agenda 1. Highlights 2. Financials H1 2023 & Guidance 2023 3. Science & Operations H1 202 4. ESG, Outlook PAGE 22
Slide 23: Keeping the promise
Keeping the promise ESG & Sustainability – Measures taken in H1 2023 / Goals 2023 • Environment − Scope 1 & 2 and supplier related Scope 3 SBTi near-term targets set and submitted − SBTi review of targets (after period-end) − Preparation of Supplier engagement programme to manage Scope 3 emissions G
Slide 24: 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, e.g. Bayer • Significant progress of later stage co-owned pipeline iPSCs • New strategic partnerships, e.g.,
Slide 25: “Evotec inside” – further progressing
“Evotec inside” – further progressing Selected pipeline events within next 12-24 months Phase III & registration (CHN) JingXin in insomnia (EVT201) Phase I data with BMS in CNS (EVT8683) Phase I data with Kazia in Oncology (EVT801) Phase I data in Chikungunya virus (EVT894) Phase Ib / II initiation
Slide 26: Upcoming important dates
Upcoming important dates Financial calendar 2023 Commerzbank & ODDO BHF Corporate Conference 2023, Frankfurt/Main 05 September 2023 Citi Annual BioPharma Conference, Boston 07 September 2023 Morgan Stanley 21st Annual Global Healthcare Conference, New York 11 September 2023 H.C. Wainwright 25th Annu
Slide 27: Questions and Answers
Slide 28: Volker Braun, SVP Head of Global Investor Relations & ESG
Volker Braun SVP Head of Global Investor Relations & ESG +49 (0) 151 1940 5058 (m) volker.braun@evotec.com www.evotec.com