Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019

Page created by Robert Gonzales
 
CONTINUE READING
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Evotec
         Partnered Drug Discovery
         and Development

Evotec SE, Company Presentation, October 2019
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Forward-looking statement

           Information set forth in this presentation contains forward-looking statements, which involve a
           number of risks and uncertainties. We caution investors that forward-looking statements
           contained herein are based upon management’s expectations and assumptions as of the date of
           this presentation. Such forward-looking statements are neither promises nor guarantees, but are
           subject to a variety of risks and uncertainties, many of which are beyond our control, and which
           could cause actual results to differ materially from those contemplated in these forward-looking
           statements. We expressly disclaim any obligation or undertaking to release publicly any updates
           or revisions to any such statements to reflect any change in our expectations or any change in
           events, conditions or circumstances on which any such statement is based.

PAGE   1
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Agenda

           Overview

           Partnered drug discovery & development

           Financials & Outlook

PAGE   2
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Leading external drug discovery & development
                          Company snapshot

                   100+ € 400 m+ € 100 m+
            Co-owned pipeline                          Revenues1)    Adjusted Group EBITDA1)
   programmes with significant
   milestone & royalty potential

                       10+                    3,000+                          200+
           Co-owned companies &              Top-class employees1)     Long-term partnerships
               corporate ventures

PAGE   3                  1)   In 2019 (e)
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Medicine of the future comes with radical change
                              Technologies & mega trends

 Next gen sequencing
 More precise & early diagnostics
 iPSC & CRISPR gene editing
                                       Patient-centric medicine
 RNAi technologies, CAR-T
                                       Digital health
 Checkpoint inhibitors                                                    &   Partners
                                       Predictive & preventive medicine
 Artificial intelligence, big data
                                       Value-based care
 3D printing, blockchain,
 wearables, sensors
 Real-world data, …

PAGE   4
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Productivity challenge increases
                        Development costs vs. average peak sales

  Development Cost, $ m                                                                Sales, $ m

                                       1,992

            1,188
                     +68%
                                                                                                                816

                                                                                                                                                         465
                                                                                                                                   -43%

            2010                        2017                                                                  2010                                       2017

  Cost per asset increased ~2/3rd since 2010                                           Average peak sales almost halved since 2010

PAGE   5                Source: Deloitte’s Centre for Health Solutions: A new future for R&D? Measuring the return from pharmaceutical innovation 2017
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Switch from fixed to variable costs
                           R&D outsourcing & External Innovation
in € bn
                                          ~30-36                                                         ~85-90                 ~10
                    100%
                    90%
                    80%                                                                                   55                      5
                    70%                                                                                 (~60%)                 (~50%)
                                                           ~7
                    60%                                  (~70%)
                                      ~25
  Capital                           (~90%)                                                                                                   ∑
                    50%
  Elasticity                                                                                                                             € ~150 bn
                    40%
                    30%                                                                                   35                      5
                    20%                                                                                 (~50%)                 (~50%)
                                                           ~3
                    10%                                  (~30%)
                                  ~3 (10%)
                     0%
                           0%      10%      20%      30%     40%    50%     60%       70%    80%                              90% 100%
                                  Discovery Pre-clinical/IND Manufacturing & Clinical development                               Others

   Not outsourced
   Outsourced

PAGE   6                   Source: Visiongain – Drug Discovery Outsourcing Market Forecast 2015-2025 and Evotec’s estimates
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Building a co-owned portfolio
           Unique strategy and business approach – Action Plan 2022

                 Own R&D                       Co-Owned
                                               Pipeline

                                   Action
                                    Plan
                                    2022

                                               Fee for Service

PAGE   7
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Integrated solutions up to IND and manufacturing
                                   Our core competencies

                                    Pre-
              Hit        Lead
 Target ID/                         clinical
              identi-    optimi-                  Phase I   Phase II   Phase III   Approval   Market
 validation                         Tox
              fication   sation
                                    testing

PAGE   8
Evotec Partnered Drug Discovery and Development - Evotec SE, Company Presentation, October 2019
Multimodality in early R&D
                             Small molecules, biologics & other modalities in R&D

  Global pharmaceutical market1), 2)
  in $ bn

                                                                                                                             CAGR
                                                                                                                            2017-22e
                                                                                    +7%                             918
                                                                                                            856              >50%
                                                                                                  794
                                                                         743
                           670                  703
                                                                                                                              8%
       Cell/Gene therapy

       Biologics

       Small molecules                                                                                                        5%

                           2017                2018e                   2019e                    2020e       2021e   2022e

PAGE    9                    1)
                              Small molecules forecast from May 2017 and Biologics forecast from Dec 2017
                             2)Excluding sales not classified by EvaluatePharma
                             Source: EvaluatePharma
~3,000 x unique expertise
                                  Global centres of excellence

                                                                                                         Abingdon, Alderley Park
                                                                                                         ~700 employees

                      1st
                      J.POD1)
                                                                                                                         Hamburg, Göttingen, Munich,
                                                                                                                         Cologne ~700 employees

                                                                                                           Verona,
       Princeton, Seattle,                  Lyon, Toulouse                                                 ~660 employees
       Branford, Watertown ~250             ~600 employees

PAGE   10                         1)   1st J.POD under construction; planned to be operational in 2020
Agenda

            Overview

            Partnered drug discovery & development

            Financials & Outlook

PAGE   11
ONE fully integrated platform
            EVT Execute & EVT Innovate

                                         IP with customers   IP with Evotec

PAGE   12   IP = Intellectual Property
Improving quality and accelerating R&D
                           EVT Execute – Selected performance indicators

                      >50                                                                 >50                                                                      >10
            Successful hit-finding                                     IND – Pre-clinical &                                           Technology acquisitions1)
            campaigns each year                                         clinical candidates
                                                                      delivered (INDiGO)1)

                     92%                                                                         1.8                                                               30%
               Repeat business2)                                                   Years average                                         Lower cost to safety
                                                                                    contract time                                  assessment (FGLPD) than
                                                                                                                                       industry benchmarks3)

PAGE   13                  1) Since 2012
                           2) In 2018
                           3) Industry benchmarks disclosed in Morgan et al, NRDD, 2018 p167-181. FGLPD first good laboratory practice dose in safety assessment
Fully integrated for small molecules and biologics
            “The sharing Economy” for external innovation services

PAGE   14
Better biologics with next generation technologies
                       Just – Evotec Biologics

                   Molecular                                                                Why Just – Evotec Biologics is unique
                    Design
                                                                                             J.MD – inventive step to product
                    J.MD™
                                                                                             Proprietary ML algorithms to design and
                                                                                              select optimal antibody
                                                                                             JP3 & J.POD – innovation in product
                                                                                              design and manufacturing
    Process &                                Manufacturing                                   Highly experienced team
  Product Design                               Design
      JP3®                                     J.POD®

   Highest    Higher            Flexible                Highly Cost
   Quality    Speed             Capacity                  Efficient
PAGE   15              1)   J.POD is currently under evaluation for fastest possible initiation to build in USA and potentially also EU – expected 2021
                       2)   Purchase of 100% of shares in Just.Bio – Evotec Biologics: Total consideration of up to $ 90 m in cash including potential earn-outs upon defined milestones expected in
                            2019-2022e; >$ 30 m revenues in FY 2019; approx. EBITDA break-even (Including intercompany revenues)
Biologics will supplement and accelerate growth
                              Just – Evotec Biologics: Synergies and J.POD1) roll-out

                                                                                                                                    2022ff
                                                                                   2020-21
                     2019
                                                                                                                         Roll-Out
                                                          Leverage & Cross sell                                           Best in class end-to-end
  Build
                                                           Integrated biologics                                           biologics design, discovery
   Enhance antibody                                        discovery and development                                      and development
    technologies through AI/ML                              “Biologics INDIGO”                                            Secure US and global
    “Abacus”
                                                           Co-owned biologics clinical                                    approvals for commercial
   Seed Biologics pipeline                                 pipeline                                                       manufacture
   Initiate first J.POD in US                             Go live with first J.POD                                      Additional J.PODs

       BILL & MELINDA
           GATES foundation

PAGE   16                     1)   J.POD is currently under evaluation for fastest possible initiation to build in USA
Strong and well-balanced global customer mix
                                 EVT Execute
in %
                   Foundations                                                              RoW
                            7                                                                  4

 Mid-sized
  Pharma          17
                                                                                 USA   36
                                                                  45   Biotech               Revenue
                          Customer
                                                                                            by Region
                        type H1 20191)
                                                                                             H1 20191)   60   Europe

                       31

            Top 20 Pharma

  90% of all capacities sold for 2019, and already very strong initial book building for 2020

PAGE   17                        1)   Third-party revenues only
Building first class capacity and network for growth
                            Example: Toulouse history and outlook

                                                                                                                                             2021/22
                                                                                                                   2019/20
                                                                                  2017
                2015
                                                       Execute Services                                                         Integrated Execute Services
                                                        Tactical drug discovery                                                 Fully integrated drug discovery
  Restructuring                                          services, e.g. Compound                                                  services
   Sanofi to support restructuring                      Management, Profiling and                                               >50 customers
    over 5 years                                         DMPK, in vivo,…                                                        Innovate Initiatives
  Innovate Initiatives                                  >20 customers                                                           Multiple partnerships across
   TargetBCD – Betacell T1D                           Innovate Initiatives                                                       multiple disease areas
   TargetImmuniT with Apeiron                          BRIDGE „LAB301“                                                         >10 Innovate projects access
                                                        Multiple Oncology partnerships                                           Toulouse capacity and
                                                        Kidney partnership                                                       expertise
                                                                                                                                 …
   Selected                                             Selected
   Partners                                             Partners

  Employees: >200                                      Employees: >500                                                          Employees: >´600

PAGE   18                   1)   Total commitment of approx. 250 Mio over five years – including approx. € 20 Mio subsidy ending in 2020.
Fast growing portfolio of top-quality partners
                                EVT Execute alliances – Examples

 Partnership      Partnership       Partnership          Partnership      Partnership      Partnership      Partnership
 focused on       focused           covering broad       focused on       focused on       focused          focused on
 Huntington       on various        range of             DMPK services    infectious       on various       dermatology
 Disease          indications       services                              diseases         indications

 Initiated 2006   Initiated 2011    Initiated 2015       Initiated 2016   Initiated 2016   Initiated 2016   Initiated 2018

 Partnership      Partnership       Partnership for      Partnership      Partnership      Partnership      Partnership
 focused on       focused on        INDiGO, DD,          focused on       focused on CNS   focused on       focused on
 diabetes &       reproductive      and CMC              oncology                          oncology         inflammation
 obesity          medicine &
                  women’s health    Initiated 2015 and
                                    significantly
 Initiated 2018   Initiated 2018    expanded 2019        Initiated 2016   Initiated 2018   Initiated 2017   Initiated 2017

PAGE   19
Building a co-owned pipeline
                      EVT Innovate – Selected performance indicators

                                 7 >€ 1,000 bn                                                                                               >100
            Disease areas of                                                    Unmet markets                                                Co-owned pipe-
             core expertise1)                                                      addressed                                               line programmes

                      10                                                                   >15                                              100%
                 Clinical Co-                                             Unpartnered large                                       First-in-Class and best-in-
               owned assets                                                  R&D initiatives                                   class approaches “Going for
                                                                                                                                   Cures not for Symptoms”

PAGE   20             1)   CNS, Pain, Oncology, Respiratory, Diabetes/Metabolic diseases, Women’s health, Infectious disease
Better translation for better drugs
                          Genetics, biomarkers, and better technologies improving success

  Human genetics supported targets1)                                                       Biomarker-based patient stratification2)
  % success                                                                                % success

                                                                                                               ~3x
                         ~2x

                All                    Genetically                                                    No             Selection
            programmes                 supported                                                   biomarker         biomarker

PAGE   21                 1)   Source: Nelson et. al., Nat. Genet. 2015
                          2)   Source: Bio: Clinical Development Success Rates 2006-2015
Creating massive upside with limited cost & risk
                             Example for co-owned deal structures

Performance-based components (Illustrative)

                                                                                                               Ø 8%
                                                 Ø € 200 m Milestones (MS) per project

                          € 5-65 m

                          Upfront MS 1        MS 2   MS 3    MS 4   Clinical   MS 5      MS 6   MS 7   Total Royalties
            R&D cost
                          and/or                                     Start
                         research
                         payments

PAGE   22
>100 projects in fully invested pipeline
                                                                Partnership portfolio in small molecules
                  Molecule         Therapeutic Area/Indication                                   Partner                                  Discovery                Pre-clinical                Phase I                  Phase II
                  EVT201           CNS – Insomnia
                  BAY-1817080      Chronic cough                                                                                                                                                                               NEW data
                  ND1)             Chronic cough
                  CT7001           Oncology                                                                                                                                                                                   Ph. II start
  Clinical

                  CT7001           Oncology                                                                                                                                                                                   Ph. II start
                  EVT401           Immunology & Inflammation
                  Various          Women’s health – Endometriosis
                  Various          Women’s health – Endometriosis
                  Various          Women’s health – Endometriosis
                  Various          Respiratory
                  ND1)             Oncology
                  ND1)             Immunology & Inflammation
  Pre-clinical

                  ND1)             Pain
                  Various          Women’s health – Endometriosis
                  EVT801           Oncology
                  TargetImmuniT    Oncology – Immunotherapy
                  ND1)             Oncology (+ several discovery programmes)
                  ND1)             Fibrosis
                  Various          CNS, Metabolic, Pain & Inflammation                           >10 further programmes
                  Various ND1)     Nephrology
                  Various ND1)     Immunology & Inflammation
                  Various ND1)     Nephrology
                  Various ND1)     Metabolic – Diabetes
                  Various          Oncology
                  Various          Immunology & Inflammation – Tissue fibrosis
                  Various          Neurodegeneration
                  ND1)             Oncology – DNA damage response                                                                                                                                                           NEW spin-off
  Discovery

                  ND1)             Anti-bacterial
                  Various          All indications                                                                                                                                                                          NEW BRIDGE
                  ND1)             Dermatological diseases
                  ND1)             Facioscapulohumeral Dystrophy
                  INDY inhibitor   Metabolic
                  Various          Fibrotic disease                                              Fibrocor Therap. / Galapagos
                  TargetPicV       Antiviral
                  Various          Anti-infectives                                                        >5 programmes
                  Various          Internal: Oncology, CNS, Metabolic, Pain & Inflammation       >40 further programmes
                  ND1)             Oncology
                  ND1)             Novel antibiotics
                  ND1)             Novel antibiotics
                  ND1)             Oncology – Colorectal cancer

PAGE             23                                             1)
                                                                 Not disclosed
                                                                Note: Several projects have fallen back to Evotec, where Evotec does not intend to run further clinical trials unpartnered, e.g. EVT302, EVT101, SGM-1019
Partnering model works and delivers Phase II POC
                                  Bayer & Evotec in chronic cough

                   &
  POC1) in Phase II in chronic cough                              P2X3 – target to treat hypersensitivity in refractory chronic cough

        Chronic Cough: Lasts >8 weeks
        Patient characteristics:
         Average age Mid 40s – Early 60s
        Disease often associated with:
         e.g. Asthma, COPD, lung cancer, …
        Current standard of care: Unspe-
         cific treatment of underlying disease
        Market Size: USD 1 bn – USD 2 bn
        Key Player: Merck & Co

  Efficacy and very good safety profile achieved. Next milestone upon Phase III initiation.

PAGE    24                        1)
                                   Proof of concept
                                  Source: Kwong et al 2008 AJP Lung cell Mol Physiol 295 L858-65
Many more co-owned projects with great partners
                                   EVT Innovate alliances – Examples

 Oncology I              Chronic kidney                   Oncology             Fibrosis                  Neurodegeneration     Picornavirus
                         disease (“CKD”)
 Multi-target alliance                                    Small molecule-      Novel mechanisms          iPSC-based drug       Respiratory
                         Diabetic                         immunotherapies to   in multi-organ fibrosis   discovery             indications2)
                         complications                    complement check-
                                                          point inhibitors1)

 Initiated 2018          Initiated 2016                   Initiated 2015       Initiated 2015            Initiated 2016        Initiated 2017

 Oncology II             Endometriosis/Pain               Diabetes             Oncology &                Infectious diseases   Oncology
                         & Respiratory                    iPSC Beta Cell –     Respiratory
 Targeted protein                                                                                        Open innovation       Joint Venture on
 degradation             Non-hormonal                     Diabetes alliance    Multi-target alliance     alliance              multiple targets
                         treatments

 Initiated 2018          Initiated 2012                   Initiated 2015       Initiated 2012            Initiated 2018        Initiated 2016

PAGE   25                          1)   Together with Apeiron
                                   2)   Together with Haplogen
Re-defining the drug discovery paradigm
            Game-changing platforms for better translation

                                     Translational            Comprehensive   Superior
                                        Models                   Profiles     Analysis

                                              iPSC              PanOmics       AI & ML
                                            platform             platform     platform1)

PAGE   26   1)   Artificial Intelligence & Machine Learning
World-leading patient-centric initiative in nephrology
                                         NURTuRE – Kidney disease processes, platforms and networks

            Biomarker & stratification   Disease-affected cell type

                       Patient data      Human kidney-
                       and samples           on-a-chip

                                                     Disease-
                                                      specific
                Patient                                 drugs                                         Clinical
                                                                                                      Centers

  “The anonymised data contained within the NURTuRE biobank
  has the potential to unlock answers to some of the biggest
  questions about CKD and NS.”
                                Elaine Davies, Director of Research
                                Operations at Kidney Research UK

PAGE   27
Patient-derived assays as new gold standard
                                       World-leading iPSC processes and network

  “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, Nobel prize laureate

             Disease-specific drugs

       Screening
                                                                   Patient

                   Disease                                            Patient-
                   in a dish                                          specific
                                                                      iPSCs

                                                 Disease-affected cell
                                                 types, i.e. neurons, …

PAGE    28                             1)   iPSC = Induced pluripotent stem cells
Portfolio of cell types and patient-derived cell lines
            iPSC based Drug Discovery

            Disease area partnerships    More options for partnerships

                                          Astrocytes / Oligodendrocytes
             Neurodegenerative Disease
                                           Neuroinflammatory / MS
              Motor neurons
              Dopaminergic neurons       Cortical neurons
                                           Lysosomal Storage Diseases
              Cortical neurons
              Microglia                  Kidney
                                           Chronic Kidney Diseases / Polycystic
                                            Kidney Disease
             Diabetes Type I and II       Retinal pigment epithelial cells /
              Pancreatic beta cells      (photoreceptors)
                                           Retinopathies

                                          Cardiomyocytes
             Huntington Disease            Cardia hypertrophy / heart failure

              Cortical neurons           Sensory neurons
                                           Pain

PAGE   29
From the “Valley of death“ to “Spring of life”
                                         BRIDGEs for better academic translation and company building

             Basic                     Applied                       Technology Development                            Product Commercialisation                 Market Entry &
            Research                  Research                          and Demonstration                               and Market Development                   Market Volume

        Funding Level                                                                                                                                                    Public
                                                                                                                                                                         Market

                                                                                                                                                                         Project
                                                                                                                                                                         Finance
            Governments                                                         Funding Gap
                                                                                                                                                              Banks/Credit Lines
                       Sponsored Research
                     Public Private Consortia
                                                                                                                                                            Industry Acquisition

                                        Industry R&D                                                                            Corporate Venture Capital

                                                   Angel Investors                                                    Venture Capital/Private Equity

                                                                                   Incubator Funds

PAGE   30                                Source: Derived from an article by Sustainable Development Technology Canada (2013)
Long-term optionality with corporate co-ownership
                                           BRIDGEs & Equity participations – Examples

 Equity                Equity                   Equity                    Equity              Equity           Equity               Consortium         Spin-off
 participation         participation            participation             participation       participation    participation        membership
                                                                                                                                                       Nanoparticle-
 Artificial Intelli-   Facioscapulo-            Metabolic                 Fibrosis partner-   Targeting        Innovative mole-     Kidney diseases    based thera-
 gence for automat-    humeral muscular         disorders                 ship with MaRS      metalloenzymes   cular pathways                          peutics
 ed drug design        dystrophy                                          Innovation                           in oncology

 Initiated 2017        Initiated 2017           Initiated 2016            Initiated 2017      Initiated 2016   Initiated 2016       Initiated 2017     Initiated 2016

 Spin-off              BRIDGE                    BRIDGE                   BRIDGE              BRIDGE           Digital BRIDGE       BRIDGE
 DNA damage            Partnership with          Partnership with         Partnership with    Partnership      Partnership with     Partnership with
 response              Oxford University         MaRS Innovation          Arix and Fred       with Sanofi      Sensyne Health,      Integra Holdings
                       and OSI1)                                          Hutch                                Oxford University,   and Yissum
                                                                                                               OSI1), OUI2)

 Initiated 2019        Initiated 2016            Initiated 2017           Initiated 2018      Initiated 2018   Initiated 2019       Initiated 2019

PAGE   31                                  1)   Oxford Sciences Innovation = OSI
                                           2)   Oxford University Innovation = OUI
Agenda

            Overview

            Partnered drug discovery & development

            Financials & Outlook

PAGE   32
Culture to integrate talent is key for growth
            Human Resources

                 Total operations personnel                               > 3,000
                     Chemists
                                                                 ~2,200
                     Biologists
                                                        ~1,900

                                       ~870   ~ 1,000
                      ~600

                      2014             2015    2016     2017     2018     2019(e)

                2/3 Biologists, 1/3 Chemists
                >70% of employees with at least one academic qualification
                >40% of employees have worked for Evotec >5 years
                >7.9 years on average drug discovery and development experience
                >54% female; >60 nationalities

PAGE   33
Long-term organic growth expected
                                                        Financial history 2015-2019 (e) – Selected performance indicators

  Approx. 15% Group revenue growth1) (in € m)                                                                                                 € 30-40 m unpartnered R&D expenses2) in 2019 (in € m)

                                                                             364,0
                                                 263,8                                                                                                                                                                                  22,9
                                                                                                                                                   18,3                        18,1                         17,6
                    164,5
   127,7

       2015          2016                         2017                        2018                      2019(e)                                   2015                         2016                        2017                         2018                     2019(e)

  >10% adj. Group EBITDA growth3) (in € m)                                                                                                    Strong gross margin4) (in %)

                                                                               92,0                                                                                            35,6
                                                                                                                                                                                                            31,0                         29,8
                                                                                                                                                   27,5
                                                  57,2
                      36,2
       8,7

       2015          2016                         2017                        2018                      2019(e)                                   2015                         2016                        2017                         2018                     2019(e)

              1) 2018 total revenues excluding revenues from recharges according to IFRS 15
PAGE   34     2) Evotec focuses its guidance and upcoming reporting during the course of 2019 on the “unpartnered R&D” part. ID expenses will be fully reimbursed by its partner Sanofi (“partnered R&D”); total of R&D expenses in 2018 of € 35.6 m (incl. ID-related expenses)
              3) Before contingent considerations, income from bargain purchase and excluding impairments on goodwill, other intangible assets and tangible assets as well as the total non-operating result; 2018 total adjusted Group EBITDA excluding € 3.5 m one-off effects in 2018
              4) Gross margin in the future may be more volatile due to the dependency of receipt of potential milestone or out-licensing payments, both having a strong impact on the gross margin, also new mix of business through Aptuit
Strong performance across all business lines
                          Condensed income statement H1 2019 – Evotec SE and subsidiaries
in € m1)
                                                    H1 2019                   H1 20183)                 % vs. 2017
                                                                                                                                         Strong Gross margin
Revenues from contracts with                                                                                                              reflects capacity utilization
                                                       207.1                       178.9                       16%
customers                                                                                                                                 and demand
Gross margin                                           30.8%                      28.1%                           –                      Increase in R&D as planned
                                                                                                                                         One-off impairment
 R&D expenses                                         (29.3)                     (10.0)                     192%                         following termination of
 SG&A expenses                                        (29.9)                     (27.1)                       10%                        SGM-1019 programme
                                                                                                                                         Other operating income
 Impairment of intangible assets                                                                                                         positively impacted by
                                                       (11.9)                       (4.2)                         –
  and goodwill                                                                                                                            reimbursed partnered R&D
 Other op. income (expenses), net                       31.3                       12.7                          –                       and R&D tax credits
                                                                                                                                         Adjusted Group EBITDA in
Operating result                                         24.0                       21.7                       11%                        H1 2019 positively affected
Adjusted Group EBITDA2)                                  58.2                       38.6                       51%                        by new IFRS 16 (€ 6.4 m)

Net income                                               10.7                       17.9                     (40)%

PAGE   35                 1) Differences may occur due to rounding
                          2) Before contingent considerations, income from bargain purchase & excl. impairments on goodwill, other intangible & tangible assets as well as the total non-operating result
                          3) 2018 data including reclasses of recharges according to IFRS 15
Strong liquidity to support growth and expansion
                     Liquidity development in H1 2019
in € m
                                                                                                                              (31.3)                            341.8

                                                                                           249.1

            149.4

                      (11.0)
                                                         (14.4)

            31 Dec   Operating                       Capex excl.                        Promissory                        Bank loans                           30 June
             2018    cash flow                        finance                           note (net)2)                      and finance                           2019
                                                       leases                                                             leases and
                                                                                                                             other

PAGE   36            1)   Upfront payment of purchase price for Just.Bio– Evotec Biologics - of € 55.9m / USD 60.0m after period end H1 (July 2019)
                     2)   Promissory note volume: € 249.1 m net; 3, 5, 7 & 10 years with a fixed and variable interest rate of on average below 1.5%; non-dilutive but debt
Strong team and shareholders for innovation
                               Management & shareholder structure*

   ̴ 9% Roland       ̴ 9% Goldman
    Oetker/ROI           Sachs                         >5% Morgan                     Management Board                             Supervisory Board
                                                         Stanley
                                                                                       Werner Lanthaler (CEO)                      Wolfgang Plischke
                                                                                        Long-time experience in                      Ex-Bayer
                                                         >3% AGI1)
                                                                                        Pharma & biotech
                                                                                                                                    Iris Löw-Friedrich
                                                                                       Cord Dohrmann (CSO)                          UCB
                                                        >3% DWS2)
                                                                                        Long-time experience in
                                                                                        drug discovery                              Mario Polywka
                                                                                                                                     Consultant
                                                                                       Craig Johnstone (COO)
                                                                                        Strong drug discovery and                   Roland Sackers
                                                                                        commercial track record                      QIAGEN
   ̴ 10% Novo
  Holdings A/S
                                                                                       Enno Spillner (CFO)                         Michael Shalmi
                                                                                        Long-time experience in                      Consultant
  ̴ 56% Free float                         ̴ 1% Management                              finance & biotech
                                                                                                                                    Elaine Sullivan
                                                                                                                                     Carrick Therapeutics
Number of shares: 150.6 m
Listing: Frankfurt Stock Exchange (MDAX, TecDAX), OTCBB
52 week high/low: € 27.29/€ 16.02

                               * All stated shareholdings comprise the total of voting rights attached to shares and instruments
PAGE   37                      1) Allianz Global Investors GmbH

                               2) DWS Investment GmbH, formerly Deutsche Asset Management Investment GmbH
Strong year – and more to come
            Expected key milestones 2019

              Continued strong growth and new integrated service alliances

              New co-owned partnerships from own R&D

              New clinical initiations & important progress of co-owned pipeline

              Important milestones from existing alliances

              Initiation of new BRIDGEs

              Corporate investing initiatives

PAGE   38
Strong financial performance ahead
                          Updated Guidance 2019 (14th August 2019)

            Double-
                                Approx. 15% (previously: approx. 10%) growth in Group revenues from
 1          digit top-
                                 contracts with customers without revenues from recharges1)
            line growth

            Profitable          Adjusted Group EBITDA2) expected to improve by more than 10%
 2          and growing          (previously: approx. 10%) compared to € 92.0 m in 20183)

            Focused
 3          unpartnered         Unpartnered Group R&D expenses of € 30-40 m4)
            investments

PAGE   39                 1) 2018 total revenues excluding revenues from recharges according to IFRS 15: € 364.0 m / Based on current/updated FX rates
                          2) Before contingent considerations, income from bargain purchase & excl. impairments on goodwill, other intangible & tangible assets as well as the total non-operating result
                          3) 2018 total adjusted Group EBITDA excluding € 3.5 m one-off effects in 2018: € 92.0 m
                          4) For better comparison to previous years, Evotec focuses its guidance and upcoming reporting during the course of 2019 on the “unpartnered R&D” part. ID-related R&D expenses will be fully reimbursed by its partner Sanofi

                             (“partnered R&D”).
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
You can also read