Slide 1: Driving Drug Discovery and Development fast forward
Driving Drug Discovery and Development fast forward Evotec SE, Quarterly Statement 9M 2019, 12 November 2019
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: Welcome: The Management Team
Welcome The Management Team Werner Lanthaler Enno Spillner Craig Johnstone Cord Dohrmann CEO CFO COO CSO PAGE 2
Slide 4: Agenda
Agenda Highlights & strategy Financial performance Scientific and operational performance Guidance & next steps PAGE 3
Slide 5: Strong positive momentum across all business lines
Strong positive momentum across all business lines Recent highlights New strategic drug discovery and development alliances Successful progress in co-owned pipeline Multiple important milestones achieved Just – Evotec Biologics picking up speed Extension into 2023 of iPSC alliance with Cel
Slide 6: Strong performance – increase in EBITDA guidance
Strong performance – increase in EBITDA guidance Financials 9M 2019 & FY 2019 Guidance Strong financial performance Revenue guidance 2019 confirmed; EBITDA guidance increased Increase of revenues by 16% to € 321.4 m (9M 2018: € 278.1 m1)) Approx. 15% revenue growth (2018: € 364.0 m3))4) Adjust
Slide 7: “… just the beginning”
“… just the beginning” “Action Plan 2022 – Leading External Innovation” 2022 Today 2018 2012 2009 PAGE 6
Slide 8: Co-owned pipeline gains momentum and visibility
Co-owned pipeline gains momentum and visibility Unique business model Own R&D Co-owned Pipeline Action Plan 2022 Action Plan 2012 Fee for Service PAGE 7
Slide 9: ONE platform open for tailor made business formats
ONE platform open for tailor made business formats EVT Execute & EVT Innovate Intellectual Intellectual Property with Property with Partners Evotec PAGE 8
Slide 10: Agenda
Agenda Highlights & strategy Financial performance Scientific and operational performance Guidance & next steps PAGE 9
Slide 11: Strong growth translates into strong profitability
Strong growth translates into strong profitability Condensed income statement 9M 2019 – Evotec Group in € m1) YTD 2019 YTD 20183) % vs. 2018 Strong base business and Just – Revenues from contracts with customers 321.4 278.1 16% Evotec Biologics lead to significant revenue growth Gross margin 30.7%
Slide 12: Growth trend comes with increased gross margin
Growth trend comes with increased gross margin Revenues & Gross margin overview 9M 2019 Revenues from contracts Gross margin1) Despite slightly lower contribu- with customers (in € m) (in %) tion from milestones, upfronts and licenses in first 9M 2019, Base revenues Total Margin Margin excl. miles
Slide 13: Very good Q3 shows strong utilization of platform
Very good Q3 shows strong utilization of platform Condensed income statement Q3 2019 – Evotec Group in € m1) Q3 2019 Q3 2018 % vs. 2018 Q3 revenue growth driven by Revenues from contracts with customers 114.3 99.2 15% strong base business and contribution from Just – Evotec Gross margin 30.6% 33.7
Slide 14: Both business segments fully on strategy
Both business segments fully on strategy Segment information 9M 2019 – Evotec Group in € m1) Inter- Not EVT EVT segment allocated Evotec Growth of 21% in EVT Execute Innovate elimination (IFRS 15)3) Group Execute due to strong base business and contributions Revenues 308.1 61.8 (59.1) 10.6 321.4 f
Slide 15: Agenda
Agenda Highlights & strategy Financial performance Scientific and operational performance Guidance & next steps PAGE 14
Slide 16: Strong progress for our partners
Strong progress for our partners EVT Execute – Major achievements 9M 2019 Strong demand and performance on all business lines with strong increased demand from all customer groups New strategic multi-year drug discovery collaboration across multiple thera- peutic areas with Takeda Milestone ac
Slide 17: Well-balanced global customer mix
Well-balanced global customer mix EVT Execute – Selected KPIs 9M 2019 Revenues by customer Customer type ytd1) Revenues by region ytd1) segment ytd1) (in %) (in %) (in %) 100% 100% Mid-sized RoW 7% 100% Pharma 19% Foundation/ 7% USA NFP/ Remaining 42% 40% Academic Biotech 45% Top 11-30 20% customers
Slide 18: “just the beginning …” for dramatically improved access and processes in biologics
“just the beginning …” for dramatically improved access and processes in biologics Just – Evotec Biologics – Value Proposition Molecule and process optimization ensure predictable performance and manufacturability with significant time and cost savings. Our modular production system enables maximum
Slide 19: Multimodality offering and partnering is reality
Multimodality offering and partnering is reality Initial achievements & outlook of Just – Evotec Biologics Integration of processes, services, and team into Evotec Group on track Molecular Design Teva alliance for design and development of J.MD™ high-productivity biomanufacturing Out-licensing
Slide 20: Co-ownership for massive pipeline opportunities
Co-ownership for massive pipeline opportunities EVT Innovate – Major achievements 9M 2019 Very good pipeline progress Extension of iPSC partnership with Celgene Multiple new co-ownership agreements Collaboration with Celmatix in woman’s health JV with Vifor in nephrology (after period-end)
Slide 21: Fully invested pipeline is gaining visibility
Fully invested pipeline is gaining visibility Partnership portfolio pre-clinical and clinical Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III EVT201 CNS – Insomnia BAY-1817080 Chronic cough 1) ND Chronic cough CT7001 Oncology CT7001 Oncology Clinical EV
Slide 22: >100 discovery projects are progressing rapidly
>100 discovery projects are progressing rapidly Partnership research and discovery portfolio Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III 1) Various ND Nephrology Various ND1) Immunology & Inflammation Various ND1) Nephrology Various ND1) Metabolic –
Slide 23: Precision medicine in kidney disease
Precision medicine in kidney disease Evotec and Vifor Joint Venture & Chronic kidney disease (CKD) means your Focus on patient data driven target identi- kidneys are damaged and losing ability to fication to pursue precision medicine for keep you healthy – CKD is the 9th leading treatment of kid
Slide 24: Precision medicine in Women’s Health
Precision medicine in Women’s Health Evotec and Celmatix in e.g. PCOS & Polycystic ovary syndrome (“PCOS”) is most Focus on patient-centric approaches leveraging frequent endocrine disorder – Underlying human genetic and big data into women’s health cause unknown specific drug discovery to build c
Slide 25: First milestone achieved in less than 3 months
First milestone achieved in less than 3 months Evotec and Indivumed – precision medicine in colorectal cancer (CRC) & Colorectal Cancer (CRC) Focus on precision medicine to deliver highly Third most common cancer type effective and durable treatments with clear strategies for CRC patient stratific
Slide 26: Extension into 2023 triggers $30 m payment
Extension into 2023 triggers $ 30 m payment iPSC CNS alliance with Celgene iPSC alliance in neurodegeneration Goal: Development of novel therapies for a broad range of neurodegenerative diseases Initiated 2016 initially for 5 years; Productivity and success trigger extension into 2023 Disease-sp
Slide 27: BRIDGE concept continues rollout
BRIDGE concept continues rollout LAB282, LAB150, LAB591, LAB031, LAB10x, LAB555, … 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 Governmen
Slide 28: Co-owned pipeline of equity holdings is emerging
Co-owned pipeline of equity holdings is emerging Equity participations – Overview Equity participation Equity participation Equity participation Equity participation Equity participation Equity participation Artificial Intelligence Facioscapulo- Metabolic disorders Fibrosis partnership Targeting Inn
Slide 29: Agenda
Agenda Highlights & strategy Financial performance Scientific and operational performance Guidance & next steps PAGE 28
Slide 30: Very positive outlook for full-year 2019
Very positive outlook for full-year 2019 Updated Guidance 2019 Double- Approx. 15% growth in Group revenues from contracts with customers 1 digit top- without revenues from recharges1) line growth Profitable Adjusted Group EBITDA2) expected to improve by approx.15% 2 and growing (previously: >10
Slide 31: Stay tuned: Financial calendar 2020
Stay tuned Financial calendar 2020 Annual Report 2019 26 March 2020 Quarterly Statement Q1 2020 14 May 2020 Annual General Meeting 2020 16 June 2020 Half-year 2020 Interim Report 12 August 2020 Quarterly Statement 9M 2020 12 November 2020 PAGE 30
Slide 32: HRESEARCHNEVE
HRESEARCHNEVE ASTOPS
Slide 33: Your contact: Dr Werner Lanthaler
Your contact: Dr Werner Lanthaler Chief Executive Officer +49.(0).40.560 81-242 +49.(0).40.560 81-333 Fax werner.lanthaler@evotec.com