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Evotec — Merger or Acquisition (October 2016)

19 slides from Evotec's merger presentation, Oct 26, 2016

  1. Slide 1: Leadership in drug discovery: Proposed acquisition of Cyprotex

    Leadership in drug discovery Proposed acquisition of Cyprotex Evotec AG, Investor and Analyst call, 26 October 2016

  2. Slide 2: Forward-looking statements

    Forward-looking statements 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 st

  3. Slide 3: Welcome: The Management Team

    Welcome The Management Team Werner Lanthaler, CEO Enno Spillner, CFO Mario Polywka, COO Cord Dohrmann, CSO PAGE 2

  4. Slide 4: Agenda

    Agenda Executive summary Leadership in drug discovery Summary & next steps PAGE 3

  5. Slide 5: Summary and rationale of acquisition of Cyprotex

    Offer expected to close before end of 2016 Summary and rationale of acquisition of Cyprotex  World leader in pre-clinical ADME-Tox and DMPK testing*  136 employees operating from 4 sites in the UK and USA  H1 2016 revenues of GBP 8.73 m (€ 9.78 m**); underlying EBITDA of GBP 2.34 m (€ 2.62 m**) 

  6. Slide 6: Agenda

    Agenda Executive summary Leadership in drug discovery Summary & next steps PAGE 5

  7. Slide 7: Best-in-class discovery services & co-owning drugs

    Best-in-class discovery services & co-owning drugs Evotec’s strategy overview 2020 2016 2012 2009  Business segmentation  Investments in discovery  Highest quality drug discovery and  Restructuring service platform pre-clinical services an platforms  Capital efficiency  Performance-based  Cur

  8. Slide 8: Leading the macro trend of R&D productivity

    Leading the macro trend of R&D productivity Market dynamics in drug discovery Growth drivers Drug discovery outsourcing is a macro trend Market overview – Revenues, in $ bn Increasing comfort with 1 outsourcing also in drug 5–10% 29.7 discovery p.a. 27.1 24.5 21.8 19.2 Higher R&D capital efficiency

  9. Slide 9: Cyprotex is right in our 'Sweet spot'

    Cyprotex is right in our “Sweet spot” Generating the Pre-clinical Development Candidate (PDC) Target Hit- Lead Pre- Academia ID/-Vali- Identi- Optimi- Phase I Phase II Phase III Approval Market clinical dation fication sation Clinical Cyprotex Phase Duration > 14 years PDC – Evotec Pre-clinical Part

  10. Slide 10: Constant upgrade and improvement of technologies

    Constant upgrade and improvement of technologies Acquisitions and consolidation to build integrated drug discovery platforms Compound Focus 2010 2011 2012 2011 2013 TI/TV platform in Comprehensive Rapid Fire/MS Versatile proteomics Access to patient- diabetes/metabolic compound/library screening pla

  11. Slide 11: Expanding leadership with acquisition of strategic niche player

    Expanding leadership in drug discovery with acquisition of strategic niche player Strategic rationale Adding the most comprehensive pre-clinical ADME-Tox full service and know-how to 1 strengthen Evotec’s drug discovery platform portfolio Dovetails with Evotec’s strategic compound profiling activiti

  12. Slide 12: Industry leader in pre-clinical ADME-Tox

    Industry leader in pre-clinical ADME-Tox Cyprotex summary  Founded 1999, Cyprotex, publicly listed on AIM  Unique portfolio and high-margin services:  In vitro ADME-PK  In vitro Toxicology  In silico PK  Biosciences (efficacy in cell-based assays)  Based in Macclesfield and Alderley Park (UK)

  13. Slide 13: Highly experienced team with best-in-class technology

    Highly experienced team with best-in-class technology Cyprotex – Differentiating factors High-throughput Highly experienced team screening approaches Pioneering technology Extrapolation and processes of results PAGE 12

  14. Slide 14: Strong overlap in client base

    Strong overlap in client base Cyprotex – Client Base 3.0% Cosmetics 7.4% Biotech 8.2% Other 6.7% Chemical 9.7% Government and Academia 64.9% Pharmaceuticals PAGE 13

  15. Slide 15: Building No 1 position in drug discovery outsourcing

    Building No 1 position in drug discovery outsourcing EVT Execute & Cyprotex Comprehensive suite of high-throughput ADME assays Proprietary toxicology and in silico PK offerings Stand-alone and integrated drug discovery support PAGE 14

  16. Slide 16: Growth and financial performance reflect outsourcing trend

    Growth and financial performance reflect outsourcing trend Summary – Cyprotex financials GBP m 2013 2014 2015 H1 2016 Growth drivers  General increase in market Revenue 9.8 11.6 15.6 8.7 (€ 9.8*) outsourcing  Continued strong business Growth – 18.4% 34.9% 26.0% in HT ADME in EU Underlying  Increa

  17. Slide 17: Agenda

    Agenda Executive summary Leadership in drug discovery Summary & next steps PAGE 16

  18. Slide 18: Transaction to be effective by year-end 2016

    Transaction to be effective by year-end 2016 Summary of proposed acquisition  Cash purchase of all issued and to be issued shares and the funding of all existing company debt; approx. GBP 55.36 m (€ 62.0 m*) 1 Financial  >50% shares already secured with irrevocables  Financial commitment covered

  19. Slide 19: 'Research never stops'

    ‘RESEARCH NEVER STOPS’

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