Evotec Se · XETR:EVT
Evotec — Jefferies Healthcare Conference 2018
30 slides from Evotec's conference presentation, Jun 5, 2018
Slide 1: Evotec – Leading external innovation
Evotec – Leading external innovation Evotec AG, Company Presentation, Jefferies Healthcare Conference 2018, New York, 05 June 2018
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 – Evotec at a glance
Leading external innovation to accelerate new drugs Evotec at a glance Evotec delivers a fast growing & profitable drug discovery and development business to Pharma, biotech and foundations Evotec and its partners are progressing a pipeline of > 80 co-owned first-in-class projects in major indic
Slide 5: Consequent and fast forward – AP 2022
Consequent and fast forward – AP 2022 “Action Plan 2022 – Leading External Innovation” – The strategic goals 2022 2018 2012 2009 Sustainable profitability with positive Business segmentation operating cash flows including milestone and royalty potential Investments to build a world-class Res
Slide 6: Unique business model for high value generation
Unique business model for high value generation Linking strategic goals with operational imperatives Value generation from three initiatives EVT Execute Expand critical mass, world-leading platforms, and maintain delivery culture Continued focus on operational excellence, innovation efficiency,
Slide 7: “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 8: R&D holds great potential for further outsourcing
R&D holds great potential for further outsourcing R&D outsourcing market by stage in € bn ~30-36 ~85-90 ~10 ∑ ~ €130 bn 100% 90% 80% 5 Not 55 (~50%) outsourced 70% ~7 (~60%) 60% ~25 (~70%) 50% (~90%) 40% 30% 5 35 Outsourced 20% ~3 (~50%) (~40%) 10% (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 50% 60% 70% 8
Slide 9: Unique disease expertise coming together
Unique disease expertise coming together Global footprint – Evotec’s centres of excellence Hamburg (HQ), Abingdon, Toulouse, Verona (Italy), Princeton, Göttingen, Alderley Park (UK) (France) Basel (CH) Watertown, Munich (Germany) Branford (USA) ~530 employees ~640 employees ~365 employees ~610 emplo
Slide 10: ONE stop-shop for external innovation
ONE stop-shop for external innovation The business model – EVT Execute & EVT Innovate PAGE 9
Slide 11: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 10
Slide 12: No 1 in quality and R&D efficiency – EVT Execute
No 1 in quality and R&D efficiency EVT Execute – Comprehensive integrated service offering PAGE 11
Slide 13: Healthy, slightly altered customer base following Aptuit acquisition
Healthy, slightly altered customer base following Aptuit acquisition EVT Execute – Selected KPIs Q1 2018 Revenues by customer Customer type ytd1) Revenues by region ytd1) segment ytd1) (in %) (in %) (in %) 100% 3% 100% Mid-sized 9% 100% RoW 2% Remaining 15% Pharma 15% Foun- 12% Top 11-30 41% 9% 38%
Slide 14: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 13
Slide 15: 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 14
Slide 16: Partnership portfolio of co-owned pipeline programmes
Fully invested > 80 co-owned pipeline programmes Partnership portfolio Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia EVT401 Immunology & Inflammation ND1) Oncology ND1) Oncology Clinical Various Women’s health – Endometriosis Various Women
Slide 17: > 80 co-owned projects across broad range of therapeutic areas
> 80 co-owned projects across broad range of therapeutic areas Co-owned portfolio Co-owned Co-owned Co-owned Value chain Discovery Pre-clinical Clinical > 50 projects > 25 projects > 10 projects Ø € 1-10 m upfront Ø € 150 m mile- Ø Commercials and substantial Ø 8% royalties stones per project
Slide 18: Celgene & Evotec – Expansion of relationship into oncology
Long-term strategic solid tumour partnership Celgene & Evotec – Expansion of relationship into oncology Strategic oncology partnership with Celgene Long-term strategic drug discovery and development partnership to identify new therapeutics in oncology Initial focus on solid tumours, leveraging a
Slide 19: Sanofi & Evotec – Transaction expected to close in H1 2018
One big effort for the benefit of many Sanofi & Evotec – Transaction expected to close in H1 2018 Pipeline-building collaboration in infectious diseases (ID) Strong and diverse portfolio of > 10 research & early-stage development projects licensed from Sanofi to Evotec (EVT Innovate) – Sanofi will r
Slide 20: Global leadership in iPSC
Global leadership in iPSC Strong focus on iPSC1) platform “IPS cells can become a powerful tool to develop new drugs to cure intractable diseases because they can be made from patients’ somatic cells.” Shinya Yamanaka Disease-specific drugs Screening Patient Disease Patient- in a dish specific iPSCs
Slide 21: Paradigm shifts in neurodegeneration and diabetes
Paradigm shifts in neurodegeneration and diabetes iPSC – Alliances; Progress overview iPSC alliance in neurodegeneration iPSC alliance in diabetes Development of novel therapies for a broad Development of beta cell replacement therapy and range of neurodegenerative diseases drug discovery based on f
Slide 22: 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 Market Volume Public Market Funding Level Pension Plan Project Finance Governments Funding Gap Banks/Cr
Slide 23: 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 platforms, via strategic Panion Ltd/ investments Fibrocor Tx Approx. € 22 m investments in 2017; long-term commitments with payback horizon > 5 years Attrac
Slide 24: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 23
Slide 25: Strong performance continues – “3x30”
Strong performance continues – “3x30” 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)
Slide 26: Good performance with new business mix, milestones still missing in Q1 2018
Good performance with new business mix, milestones still missing in Q1 2018 Condensed income statement Q1 2018 – Evotec AG and subsidiaries in € m1) Q1 2018 Q1 20174) % vs. 2017 Group revenue growth mainly due to good performance in the Revenues 79.0 50.9 55% base business and contribution from Ap
Slide 27: EVT Execute expanded, EVT Innovate on strategy
EVT Execute expanded, EVT Innovate on strategy Segment information Q1 2018 – Evotec AG and subsidiaries in € m1) Inter- Revenue growth in EVT EVT EVT segment Evotec Execute driven by Execute Innovate elimination Group performance in the base business and contribution Revenues 78.5 10.4 (9.9) 79.0
Slide 28: Strong team and shareholders for innovation
Strong team and shareholders for innovation Management & shareholder structure ̴ 9% Roland >5% AGI2) >5% DAMI3) Management Board Supervisory Board Oetker/ROI Werner Lanthaler (CEO) Wolfgang Plischke Long-time experience in Ex-Bayer >3% Goldman pharma & biotech Sachs Bernd Hirsch Enno Spillne
Slide 29: “3x30” – Strong growth and profitability expected
“3x30” – Strong growth and profitability expected 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 € 20-30 m investments PAGE 28 1) Before contin
Slide 30: 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