Slide 1: Strong start 2017 – Leading innovation efficiency
EVT Execute & EVT Innovate Strong start 2017 – Leading innovation efficiency Evotec AG, First Quarter 2017 Results, 10 May 2017
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
Slide 3: Welcome: The Management Team
Welcome The Management Team Werner Lanthaler, CEO1) Enno Spillner, CFO1) Mario Polywka, COO1) Cord Dohrmann, CSO1) PAGE 2 1) On the call for the Quarterly Statement Q1 2017
Slide 4: Agenda
Agenda Highlights Q1 2017 EVT Execute EVT Innovate Financial performance and outlook PAGE 3
Slide 5: Strong operations and first-in-class innovation
Strong operations and first-in-class innovation Highlights Q1 2017 EVT Execute EVT Innovate Corporate Significant progress within Initial milestone Novo A/S new strategic ongoing alliances achievements in kidney long-term investor New integrated drug disease alliance with committing € 90.3 m
Slide 6: Very strong financial performance in Q1 2017
Very strong financial performance in Q1 2017 Financial highlights Q1 2017 & Guidance Further improved financial performance Confirmed guidance 2017 Group revenues up 34% to € 50.2 m More than 15% Group revenue growth2) (2016: € 37.5 m) Adjusted Group EBITDA significantly EVT Execute revenues
Slide 7: Long-term strategy fully intact
Long-term strategy fully intact Leading service company and first-in-class partnered product pipeline 2017 2020 2016 2012 2009 Business segmentation Highest quality drug discovery Investments in discovery Restructuring and pre-clinical services service platform Capital efficiency Cure X/
Slide 8: Global expansion
Global expansion Evotec’s global footprint – 1,272 employees, >1,000 scientists in EU & USA Princeton, Branford, Abingdon, Manchester/ Toulouse, France Hamburg (HQ), Göttingen and Watertown, Kalamazoo and Alderley Park, UK ~300 employees Munich, Germany San Francisco, USA ~400 employees Compound m
Slide 9: Agenda
Agenda Highlights Q1 2017 EVT Execute EVT Innovate Financial performance and outlook PAGE 8
Slide 10: Core business continues to be strong
Core business continues to be strong EVT Execute – First quarter of 2017 Good progress in existing collaborations New integrated alliances, e.g. lead discovery collaboration with Dermira (USA); integrated drug discovery collaboration with Asahi Kasei (Japan) on an ion channel target Strong sta
Slide 11: Strong growth in EVT Execute
Strong growth in EVT Execute EVT Execute – Key performance indicators Q1 2017 Revenues1) Adjusted EBITDA2) Increase in EVT Execute (in € m) (in € m) revenues attributable to growth in the base Intersegment +24% 47.9 +26% 12.2 business and three revenues months Cyprotex 38.6 10.3 contribution 9.6
Slide 12: Well balanced customer mix
Well balanced customer mix EVT Execute – Selected customer and revenue metrics Revenues by customer Customer type ytd 20171) Revenues by region ytd segment ytd 20171) (in %) (in %) 20171) (in %) Mid-sized 100% ROW 2% 100% Remaining 100% 9% Pharma 15% 13% Foundations Top 10-30 USA 43% Customers 19% B
Slide 13: Cyprotex' successful integration
Cyprotex’ successful integration Cyprotex – Initial achievements & outlook Summary of Transaction1) Organisation, leadership and New business and further Acquisition completed in systems integration opportunities on horizon December 2016 Strong leadership team in place Very good integration in
Slide 14: Strong growth outlook
Strong growth outlook EVT Execute – Expected key milestones 2017 New long-term alliances with large and mid-sized Pharma New performance-based integrated technology/disease alliance Expansion of foundations and biotech network in USA/Europe Milestones from existing alliances PAGE 13
Slide 15: Agenda
Agenda Highlights Q1 2017 EVT Execute EVT Innovate Financial performance and outlook PAGE 14
Slide 16: First-in-class Cure X/Target X strategy
First-in-class Cure X/Target X strategy EVT Innovate – First quarter of 2017 Initial milestone achievements in multi- target alliance with DIABETES & Bayer in kidney NEUROSCIENCE COMPLICATIONS diseases (CureNephron) First significant milestone in demonstrating pre- clinical proof of ANTI- concep
Slide 17: Revenue growth reflects partnering of R&D projects
Revenue growth reflects partnering of R&D projects EVT Innovate – Key performance indicators Q1 2017 Revenues Adjusted EBITDA1) R&D expenses (in € m) (in € m) (in € m) +96% 12.6 6.4 +19% 5.8 4.6 4.9 3.8 1.0 (2.4) (3.8) Q1 2015 Q1 2016 Q1 2017 Q1 2015 Q1 2016 Q1 2017 Q1 2015 Q1 2016 Q1 2017 Revenue
Slide 18: Partnership portfolio
> 70 co-owned product opportunities and growing Partnership portfolio Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III EVT302 1) CNS – Alzheimer’s disease EVT201 CNS – Insomnia Clinical EVT1001) CNS – Depression EVT401 Immunology & Inflammation ND2) Onco
Slide 19: First-in-class alliances with significant upside
First-in-class alliances with significant upside Key innovation alliances – Selection Chronic kidney disease (“CKD”) Immuno-oncology Highly innovative therapeutics in diabetic Development of small molecule based complications (e.g. CKD) cancer immunotherapies to complement current offerings of check
Slide 20: iPSC alliances represent paradigm shift
iPSC alliances represent paradigm shift iPSC – Alliances iPSC alliance in neurodegeneration iPSC alliance in diabetes Development of novel therapies for a broad range Development of beta cell replacement therapy and of neurodegenerative diseases based on Evotec’s drug discovery based on functional h
Slide 21: Addressing diabetes by restoring beta cell function
Addressing diabetes by restoring beta cell function Stem cell derived insulin producing human beta cells Human stem cell derived beta cells Insulin Beta cell loss and dysfunction is a key driver of diabetes Nkx6.1 Access to human beta cells has been limiting for beta cell replacement therapy and
Slide 22: BRIDGE across the valley of death in drug discovery
BRIDGE across the valley of death in drug discovery The Evotec BRIDGE Basic Applied Technology Development & Product Commercialisation & Market Entry & Research Research Demonstration Market Development Market Volume Sponsored Research Public Private Consortia Public Market Pension Funding Level Pla
Slide 23: Upside participation in first-in-class innovation
Upside participation in first-in-class innovation Strategic rationale & examples for Evotec’s innovation acceleration Accelerating innovation on EVT platform Spin off valuable platforms outside of Evotec’s main areas of interest for potential broader/later stage applications Participate in finan
Slide 24: Strong outlook
Strong outlook EVT Innovate – Expected key milestones 2017 New clinical initiations and good progress of clinical pipeline within partnerships Expansion of academic BRIDGE network Strong R&D progress within Cure X/Target X initiatives Strong focus on iPSC (induced pluripotent stem cells) pla
Slide 25: Agenda
Agenda Highlights Q1 2017 EVT Execute EVT Innovate Financial performance and outlook PAGE 24
Slide 26: Growth driven by core business and milestones
Growth driven by core business and milestones Condensed income statement Q1 2017 – Evotec AG and subsidiaries in € m* Q1 2017 Q1 2016 % vs 2016 Group revenue growth due to increase in base Revenues 50.2 37.5 34% revenues, milestones and contribution from Gross margin 37.4% 33.3% Cyprotex (€ 6.0 m)
Slide 27: Adjusted EBITDA continues to grow
Adjusted EBITDA continues to grow Segment information Q1 2017 – Evotec AG and subsidiaries in € m* Inter- Revenue growth in EVT EVT EVT segment Evotec Execute Innovate elimination Group Execute due to strong base business and Revenues 47.9 12.6 (10.3) 50.2 three months 2017 contribution from Gross
Slide 28: Even further improved gross margin
Even further improved gross margin Revenues & Gross margin overview Group revenues Gross margin 3-year trend shows strong (in € m) (in %) improvement in revenues and Total Margin margins +34% 50.2 Margin excl. milestones/ + 4.1- Points Group revenue growth due to 6.2 upfronts and increase in bas
Slide 29: Novo A/S as new strategic shareholder
Novo A/S as new strategic shareholder Shareholder overview ̴ 10% ̴ 9% Roland Novo A/S Oetker/ROI ̴ 5% AGI1) ̴ 3% DAMI2) ̴ 72% Free float ̴ 1% Management Number of shares: 146.7 m Listing: Frankfurt Stock Exchange (TecDAX), OTCBB 52 week high/low: € 11.95/€ 3.10 PAGE 28 1) Allianz Global Investors Gm
Slide 30: Strong growth and accelerated innovation: Guidance 2017
Strong growth and accelerated innovation Guidance 20171) confirmed Double- 1 digit top- More than 15% Group revenue growth1) line growth Profitable Adjusted Group EBITDA2) expected to improve significantly compared 2 and growing to 2016 Focused 3 Group R&D expenses of approx. € 20 m investment
Slide 31: 'RESEARCH NEVER STOPS'
‘RESEARCH NEVER STOPS’