Evotec SE — Call Transcript 2024

May 28, 2024

Resetting for profitable growth

Evotec SE, Q1 2024 Analyst Call, 2024-05-22

Disclaimer

This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries) is being delivered on behalf of Evotec SE (the "Company", "we," "our" or "us"). This presentation is made pursuant to Section 5(d) and/or Rule 163B of the Securities Act of 1933, as amended, and is intended solely for investors that are qualified institutional buyers or certain institutional accredited investors solely for the purposes of familiarizing such investors with the Company. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy Evotec securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No representations or warranties, express or implied, are made as to the accuracy or completeness of the statements, estimates, projections or assumptions contained in the presentation, and neither the Company nor any of its directors, officers, employees, affiliates, agents, advisors or representatives shall have any liability relating thereto.

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This presentation contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business operations and financial performance and condition. Many of the forward-looking statements contained in this presentation can be identified by the use of forwardlooking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "should," "target," "would" and other similar expressions that are predictions of or indicate future events and future trends, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forwardlooking statements due to a variety of factors. The forward-looking statements contained in this presentation speak only as of the date of this presentation, and unless otherwise required by law, we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

Welcome! The Team

Mario Polywka Interim CEO

Laetitia Rouxel CFO

Matthias Evers CBO

Craig Johnstone COO

Cord Dohrmann CSO

1. Business Update & Financials 2. Strategic & Operational Update 3. Priority Reset & Outlook 4. Questions & Answers

1. Business Update & Financials

• 1. Strategic & Operational Update
• 1. Priority Reset & Outlook
• 1. Questions & Answers

Q1 2024 at a glance

Summary

Shared R&D

• New partnerships disclosed e.g., AI-powered strategic partnership with Owkin, precision medicine partnership in cardiology with Bayer
• Progress in BMS collaboration
• Discovery with +70% growth in Closed Sales as signal pointing to recovery in late 2024
• Revenue decline by (23%) versus exceptionally strong comparable Q1 2023
• Continued headwinds for transactional business

Evotec Group

• Reset of business progressing well

Just – Evotec Biologics

• Expanded development & manufacturing agreement with ABL
• Increase on number of projects and order book value
• Revenue increase by more than 380%
• EBITDA break-even

Condensed income statement Q1 2024 – Evotec SE and subsidiaries

in € m1	Q1 2024	Q1 2023	Change	Comments
Revenues	208.7	213.6	(2)%	Strong Discovery
Shared R&D	155.2	202.5	(23)%	Development behind
Just – Evotec Biologics (JEB)	53.5	11.1	>380%	Expanding pipeline
Intersegment	0.3 –		nm	Complexity reduction
Gross margin	17%	25%		High fix cost base Capacity ramp up at JEB
R&D expense2	16.2	18.5	(12)%	Focus on platforms
Adjusted Group EBITDA3	7.8	34.3	(73)%	High fix cost base in
Shared R&D	(5.5)	47.9	nm	transactional business
Just – Evotec Biologics	13.3	(13.6)	nm	Op. leverage at JEB

1 Differences may occur due to rounding

2 Comparable number of previous year adjusted for "partnered R&D" of € 0.8 m

3 Adjusted EBITDA excludes changes of contingent considerations, income from bargain purchase and impairments on goodwill, other intangible and tangible assets as well as the total non-operating result

Differentiated offerings driving the business

Q1 2024 income statement by segment – Evotec SE and subsidiaries

in € m1	Shared R&D	Just – Evotec Biologics	Inter segment elimination	Evotec Group
Revenues	155.2	53.8	(0.3)	208.7
Gross margin	13%	28%	–	17%
R&D expenses	(16.3)	(0.06)	0.07	(16.2)
SG&A expenses	(38.2)	(7.8)	–	(45.9)
Other op. income	12.2	0.5	–	12.7
Other op. expenses	(3.5)	–	–	(3.5)
Operating result	(25.9)	7.7	–	(18.2)
Adjusted Group EBITDA2	(5.5)	13.33	–	7.8

• Shared R&D

• − Revenues -23%
• − COGS -1%
• − SG&A +7%
• Just – Evotec Biologics
  • − Revenues +383%
  • − COGS +66%
  • − SG&A +12%
• Evotec Group
  • − Revenues -2%
  • − COGS +9%
  • − SG&A +8%

1 Differences may occur due to rounding

2 Adjusted EBITDA excludes changes of contingent considerations, income from bargain purchase and impairments on goodwill, other intangible and tangible assets as well as the total non-operating result. 3 Including SG&A allocation of €2.4m

Strong balance sheet as solid base for strategy execution

Balance sheet and Cash-flow items Q1 2024 – Evotec SE & subsidiaries

1. Business Update & Financials 2. Strategic & Operational Update 3. Priority Reset & Outlook 4. Questions & Answers

Green shoots in Shared R&D

Selected disclosed new partnerships

New AI-powered partnership with Owkin to accelerate discovery and development of therapeutics in oncology and I&I

New agreement with the Crohn's & Colitis Foundation for novel therapeutics in Inflammatory Bowel Disease, including Crohn's and ulcerative colitis

Collaboration framework launched with Claris Ventures to accelerate the development of innovative therapies across various therapeutic areas

New partnership with Bayer leveraging Evotec's precision medicine platform to discover new targets in cardiology (after period-end)

First signal pointing towards business recovery in late 2024

Closed Sales in Discovery by quarter, indexed

Discovery Q1 orders +70%

• Discovery segment roughly 70% of Shared R&D revenues
• 2024 Q1 for Discovery 2nd best quarter in history of Evotec in terms of Closed Sales
• Leading indicator pointing to positive revenue momentum over 6-8+ months

Development

• Development with increased proposal flow / momentum at 50% probability-stage

Just – Evotec Biologics is building markets faster than expected

Business momentum 2021-2024

Our continuous platform with strong traction in complex biologics

Trends in global biologics pipelines compared with Just – Evotec Biologics molecule portfolio

1 Innovative drugs only, excluding reformulations, biosimilars, diagnostics & imaging; snapshot as of June each year with missing phases not approximated; development status based on most progressed indication Source: Pharmaprojects Oct 2021; McKinsey analysis; interpolated data

Molecule portfolio advancing towards commercial manufacturing

High level longitudinal portfolio overview: Just – Evotec Biologics

Opening of J.POD Toulouse is fully on track

Progress and status

Building of shell and installation of PODs in second biologics facility "J.POD Toulouse" completed

Grand opening in September – two years after ground-breaking CMD: 10 October on site

Expanded Process Development capabilities launched to rapidly expand portfolio

1. Business Update & Financials 2. Strategic & Operational Update 3. Priority Reset & Outlook 4. Questions & Answers

Executing on our three priorities towards profitable growth

Priority update

Focus on strengths and drive smart partnering 1

• Focus on core modalities Exit Gene Therapy (Orth)
• Focused capital allocation to "right" R&D projects
• Ongoing strengthening of business development
• Early signals of positive momentum particularly in Discovery (Closed Sales)

Adjust organisation 2 and footprint

• Initiated global purchasing optimisation programme to maximize 2024 savings
• Triggered short-term facility space reduction & footprint optimization (Orth & Marcy)
• Started constructive discussions with Workers Councils

Put a strong 3 team in place

• Pre-boarding of CEO and CPO ongoing

We are driving the execution of priority reset cost optimisation Status update

Priority	Initiative		Current progress (by mid-May)1
Facility space & footprint	Short-term facility space reduction Footprint right sizing	C	A	I	S
Capital allocation	Global purchasing optimisation
	Capital allocation to "right" R&D projects	C	A	I	S
	IT system improvements
Capacity Management	Cost conscious hiring only
	where needed (IT / Just) Headcount review to address over capacity	C	A	I	S

Focus and disciplined execution leading to better results

Roadmap

H1	H2
•	•
Focus on execution against new priorities,	Translate BD pipeline momentum and Closed Sales
improving cost base as of H2 2024	into revenue growth
•	•
Focus on continuing positive trajectory in early	Continue execution to capture efficiency gains and
BD pipeline towards Closed Sales	cost savings
•	•
Navigate through still challenging Q2	Launch J.POD Toulouse

Faster than market growth, more profitable

Guidance 2024

	Guidance 2024	YE 2023	Comment
Group revenues	Low double digit percentage growth	€ 781.4 m	Navigating in a challenging market with differentiated offering
R&D1	Mid-single to low double digit percentage reduction	€ 64.8 m	Long-term expansion of pipeline / Focus on first-in-class platforms and project
Adjusted EBITDA2	Mid double digit percentage growth	€ 66.4 m	At least doubling rate of revenue growth / upside from efficiency measures and improving demand

€ 150-200 m continued investment programme for enabling and supporting growth Refined guidance to be assessed together with new CEO – Update planned for H1 results

Upcoming important dates

Financial calendar 2024

Reset is underway

Key takeaways from today

Reset for profitable growth fully on its way

Challenging H1 - expected "trough"

Credible signals for business recovery in H2

Putting an even stronger team in place

Volker Braun EVP Head of Global Investor Relations & ESG

+49 (0) 40 228 999 338 (d) +49 (0) 151 1940 5058 (m) volker.braun@evotec.com