Slide 1: Priority Reset underway
Priority Reset underway Evotec SE, H1 2024 results call, 14 August 2024
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 Christian Wojczewski Laetitia Rouxel Aurélie Dalbiez CEO CFO CPO Craig Johnstone Cord Dohrmann Matthias Evers COO CSO CBO PAGE 3
Slide 4: Agenda
Agenda 1. Business Update & Financials 2. Operational Update 3. Priority Reset & Outlook 4. Questions & Answers PAGE 4
Slide 5: Agenda
Agenda 1. Business Update & Financials 2. Operational Update 3. Priority Reset & Outlook 4. Questions & Answers PAGE 5
Slide 6: Leveraging the power of trust and collaboration in attractive markets
Leveraging the power of trust and collaboration in attractive markets Sharing as basis for success Shared R&D Biologics CAGR 12% >500 30 25 2x >90% 80 60 in USDbn in USDbn 20 partners working 15 40 10 in parallel on our 5 repeat business 20 platform 0 0 2022 2030 2022 2030 R&D outsourcing Continuous
Slide 7: H1 2024 at a glance
H1 2024 at a glance Headline numbers Revenues Adj. EBITDA € 390.8 m € (0.5) m (H1 2023: € 383.8 m) (H1 2023: € 33.9 m) PAGE 7
Slide 8: 2024 – Operating in challenging environment
2024 – Operating in challenging environment Observations Recovery of market in 2024 High fixed cost base Closed sales (fueled by increasing Reset of priorities share of strategic multi-year deals) Revenue phasing / mix for 2024 PAGE 8
Slide 9: Two percent organic top-line growth in first half
Two percent organic top-line growth in first half Condensed income statement H1 2024 – Evotec SE and subsidiaries in € m1 H1 2024 H1 2023 Change Comments Revenues 390.8 383.8 2% Challenging market in Shared R&D 302.4 324.8 (7)% Shared R&D Just – Evotec Biologics (JEB) 88.5 59.0 50% JEB with continue
Slide 10: Non-core assets accounting for € (4.1) m
Non-core assets accounting for € (4.1) m Condensed income statement H1 2024 – Evotec SE and subsidiaries Core Non-core assets Comment in € m Reported Operations (Halle, Orth) • Sites in Halle and Revenues 390.8 386.7 4.2 Orth are no longer Shared R&D 302.4 298.2 4.2 considered part of Just – Evotec
Slide 11: Seeing the trough
Seeing the trough Condensed quarterly income statement numbers 2024 – Evotec SE and subsidiaries in € m1 Q1 2024 Q2 2024 Comments Revenues 208.7 182.1 Shared R&D 155.2 147.2 Revenue behind Q1 as anticipated Just – Evotec Biologics (JEB) 53.5 34.9 Phasing of revenue recognition Gross margin 16.7% 8.6
Slide 12: Conscious management of balance sheet
Conscious management of balance sheet Balance sheet and Cash-flow items H1 2024 – Evotec SE & subsidiaries Balance sheet total / Equity ratio Operating Cash-flow Key post-period events in € m / vs. 31 Dec 2023 in € m vs. H1 2023 • Restructuring of debt completed in July: Revolving Credit Facility of
Slide 13: Agenda
Agenda 1. Business Update & Financials 2. Operational Update 3. Priority Reset & Outlook 4. Questions & Answers PAGE 13
Slide 14: Shared R&D – Discovery of next generation medicines
Shared R&D – Discovery of next generation medicines with higher efficacy and probability of success PAGE 14
Slide 15: Strong signal pointing towards business recovery in 2025
Strong signal pointing towards business recovery in 2025 Closed Sales in Discovery by quarter, excluding BMS partnership, indexed Discovery • 2024 Q2 for Discovery exceptionally strong in terms of Closed Sales • Mix with growing share of integrated, multi-year partnerships • Sales momentum demonstra
Slide 16: Scientific and strategic progress
Scientific and strategic progress Selected news – update Alliances / Partnerships Co-owned Pipeline / Equity & BRIDGEs • Extension of 20-year collaboration with CHDI • Aurobac to advance ATX101 in septic shock • Precision medicine partnership in cardiology with Bayer • Breakpoint nominated its first
Slide 17: Building a co-owned pipeline in neuro
Building a co-owned pipeline in neuro Long-term partnership with BMS in neuronal diseases Dec 2016 May 2018 Jan 2019 Jan 2020 Jan 2021 Oct 2021 Jan 2022 Dec 2022 Jul 2023 Jun 2024 Signing of Expansion LO Expansion Expansion Expansion Targeted Expansion Programme Preclinical designation protein & lic
Slide 18: Building a molecular glue-based co-owned pipeline
Building a molecular glue-based co-owned pipeline Long-term partnership with BMS in oncology Mar 2021 May 2022 Extension Extension of (undisclosed payment) partnership Upfront $ 200 m 2018 2019 2020 2021 2022 2023 2024 May 2018 Q4 2020 Jan 2022 March 2023 Aug 2024 Initiation of Further Payments of i
Slide 19: Just – Evotec Biologics
Just – Evotec Biologics Design and application of innovative technologies from discovery to commercial supply to dramatically expand global access to biotherapeutics. PAGE 19
Slide 20: Portfolio advancing towards clinical & commercial manufacturing
Portfolio advancing towards clinical & commercial manufacturing High level longitudinal portfolio overview: Just – Evotec Biologics Selected by U.S. Department of Defense for Manufacturing More than Technology Optimisation Programm 150 biologics ‘touched’ Partnerships Molecules in New partnerships i
Slide 21: Solidifying our commitment to providing long-term commercial supply
Solidifying our commitment to providing long-term commercial supply Expansion of tech partnership with Sandoz Q2 2023 Launched market-disruptive partnership, leveraging proprietary technology to expand biosimilar access to millions of patients Scientific and strategic progress Q3 2024 Expanded partn
Slide 22: Significant business expansion with commercial manufacturing
Significant business expansion with commercial manufacturing Closed Sales, in € m >1,000 ~900 >> 10x 3x >100 Dec 2021 Dec 2022 Dec 2023 Mar 2024 June 2024 July 2024 PAGE 22
Slide 23: Stable revenue growth
Stable revenue growth Revenue by quarter vs. last twelve months rolling (LTM) revenue Volatility set to ease • Quarterly minimum revenue base tripled within two years • Process Development still main revenue contributor • Share of clinical manufacturing increasing • Significant commercial volumes se
Slide 24: Summary of operational update
Summary of operational update Shared R&D Just – Evotec Biologics • No visible recovery of market, yet • Expansion of Tech partnership with Sandoz • Only parts of strong Discovery Closed Sales momentum − Portfolio expansion translating into revenues in 2024 (multi-year deals) − Secured significant vo
Slide 25: Agenda
Agenda 1. Business Update & Financials 2. Operational Update 3. Priority Reset & Outlook 4. Questions & Answers PAGE 25
Slide 26: What has changed? Key levers of guidance refinement
What has changed? Key levers of guidance refinement Levers 2024 EBITDA impact Delayed market recovery & part of Shared R&D sales-to-revenue translation in 2025 € (50) – (55) m Just – Evotec Front-loading costs to meet € ~(15) m Biologics significantly expanded sales orders Non-core assets identified
Slide 27: Guidance 2024
Guidance 2024 Guidance 20241 YE 2023 Comment Strong growth of JEB; Group revenues € 790 - 820 m € 781.4 m Soft market environment in Shared R&D Focus on scalable first-in-class R&D expenditure2 € 50 - 60 m € 64.8 m platforms and projects, safeguarding sustainable growth High fixed costs base; balanc
Slide 28: Three pillars towards profitable growth
Three pillars towards profitable growth Priority update (mid August 2024) Portfolio Capacity & 1 adjustments 2 External spend 3 Footprint • Exit Gene Therapy • First reduction in force • Site exits (Orth, Halle, & concluded (100 roles); U.S. Marcy) • Scale back API capacity and UK done • Hamburg: •
Slide 29: Cost optimisation plan confirmed and on track
Cost optimisation plan confirmed and on track EBITDA contribution of Reset measures (mid August 2024) Expected adj. EBITDA impact, in €m • De-prioritisation of non-core business Exit of gene therapy and large-scale API >40 manufacturing Non-core • External spend optimisation business Reduction of ex
Slide 30: Looking ahead: Priority Reset
Looking ahead Strategic review & accelerated transformation (illustrative) Leverage through revenue growth - faster than market Productivity levers Footprint Priority Reset Capacity & external spend Portfolio // // - - 2024 2025 2026+ PAGE 30
Slide 31: Upcoming important dates
Upcoming important dates Financial calendar 2024 Commerzbank & ODDO BHF Corporate Conference 2023, Frankfurt/Main 03 September 2024 Morgan Stanley 21st Annual Global Healthcare Conference, New York 05 September 2024 Berenberg Goldman Sachs 12th German Corporate Conference, Munich 23 September 2024 R
Slide 32: pRescaRcHnevensTors
pRescaRcHnevensTors
Slide 33: Volker Braun, Investor Relations
Volker Braun EVP Head of Global Investor Relations & ESG +49 (0) 151 1940 5058 (m) volker.braun@evotec.com www.evotec.com