Evotec SE — Interim / Quarterly Report 2010

Nov 11, 2010

'RESEARCH NEVER STOPS'

Building innovative drug discovery alliances

First nine months 2010 -Getting stronger every quarter

Evotec AG, First Nine Months 2010 Report, 11 November 2010

Forward-looking sstatements

Information set forth in this prese nforward-looking statements, which inv orisks and uncertainties. Such forward-loinclude, but are not limited to, state mexpected 2010 financial results and fina2011, our anticipated financing needs, our on our liquidity guidance, our belief that to sustainable profitability latest in 2012, and assumptions concerning regulat obusiness strategies, ^t he progress odevelopment programmes and ti commencement and results of our clinicacollaborations and management's plans strategies. These statements are neith guarantees, but are subject to ^a varie uncertainties, many of which are beyon dwhich could cause actual results to differthose contemplated in these forward-lo oIn particular, the risks and uncertaintie other things: ri ks ^s th ^{t a} prod ^t uc candid ^{t a} clinic or may not be successfull y manufactured; the risk that we will anticipated benefits of our collaborati oand acquisitions in the timeframes expec^t relating to our ability to advance the product candidates currently in the pip etrials; our inability to further identify, dev commercial success for new products an drisk that competing products may be mor ntation containsolve ^a number ofooking statements ments about ourancial growth in r ability to deliver we are on course, our expectations ory, clinical an df l l ofouriming of the al trials, strategic s, objectives an der promises nor f i kdety ofrisks an our control, an dr materially from oking statements. ^s include, among f il i thtes may failin ^e marketed or not achieve theons, partnerships ted, or at all; risks e development of eline or in clinicalvelop and achieve technologies; the re successful; our

inability to interest potential partners in our technologies and products; our inability to achieve commercial success for our products and technologies; our inability to protect our intellectual property and the cost of enforcing or defending our intellectual property rights; our failure to comply with regulations relating to our products and product candidates, including FDA requirements; the risk that the FDA may interpret the results of our studies differently than we have; the risk that clinical trials may clinical l k bl dhkhbnot result in marketable pro ducts; t he ris that we may eunable to successfully secure regulatory approval of and market our drug candidates; and risks of new, changing and competitive technologies and regulations in the U.S. and internationally.

Th li f i k b i h i Oe list ofrisks ^above is not exhaustive.ur most recent Annual Report on Form 20-F, filed with the Securities and Exchange Commission, and other documents filed with, or furnished to the Securities and Exchange Commission, contain additional factors that could impact our businesses d fi i l f W l di l i anfinancialperformance. 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.

Agenda

•Q3 2010 Highlights

• • Discovery Alliances & D evelopment Partnerships
• •Financials & Outlook

"Action Plan 2012"" accelerates growth

Q3 2010 highlights

• • Growth in discovery alliances drives positive trend on revenues and profits
• • Ne ^{o a e} d ug d sco ^e y ^{a a} ces ^a w innovative drug discovery alliances strong performance in existing partnership anddps
• • Good progress in un-partnered programm mes
• • First product development partnership in and good progress in TRD study with Roc
• • Swift integration of DeveloGen; acquisitio completed n
• • Profitable and cash flow positive third qua with € 70m liquidity strong strategic positio arter, on

"Action Plan 2012" is delivering gsustainable revenue and profit growth insomnia che

Strong performanc ce, improvement of key indicators

Key financials first nine m months 2010 vs. 2009

Agenda

• •Q3 2010 Highlights
• • Discovery Alliances & Development Partnerships
• •Financials & Outlook

Building g inte rated product developm d drug y discovery and ment partnerships

Our business model

Discovery alliances represent long-term, high-quality revenues with strategic upside

Portfolio of discovery alliances

Partners	Focus area	Current cash impact	Upside for Evotec
Boehringer Ingelheim	Oncology / Inflammation / Diabetes		$+ + +$	$\sim$ 75% of revenues generated within
	CNS			long-term alliances
	Undisclosed		++
NOVARTIS	Pain			Q3 highlights:
Genentech Meurber of the Rooke Groud	Undisclosed		**	- New alliances
harma	Anaemia			SHIONOGI INC.
	Pain	neutral		APEIRON Almirall
CUBIST biogen idec The Shape of Cures to Come. SHIONOGI INC.	Various	various	various	Relations with you in mind - Genentech deal expanded

• BI milestone

Product developm meaningful upside ment p pp artnerships represent e

Portfolio of product develo opment partnerships

I d i i t n c a o n	P t a r n e r	S t t a u s	C h a s i t m p a c	U U i d f p s e o r E E t v o e c	N i l t t e x m e s o n e
T i t t t t r e a m e n r e s s a n ( ) d i T R D e p r e s s o n		P h I I a s e	N l t e u r a	+ + + +	P h I I d t a s e a a / H 2 2 0 1 1 H 1 2 0 1 2
1 ) T 1 d i b t y p e a e e s		P h I I I a s e	N l t e u r a	+ +	P h I I I d 2 0 1 2 t a s e a a	Q h i h l i h 3 t g g s : i f N l l e a a n c e o r w - E V T 2 0 1
2 ) I i n s o m n a		P h I I a s e	N l t e u r a	+ +	C l i i l i t t n c a s a r n 3 ) C h i 2 0 1 1 n a	i O l t p m a - f i / b l k a a n c e o r s d r e a r w
i i N h t e u r o p a c p a n		P h I a s e	N l t e u r a	+	/ P h I d 2 0 1 1 t a s e a a P h I I t t a s e s a r

Other un-partnered clinical projects e.g. EVT 401(P2X7), …

EVT 201 – a potential insomnia product

CNS ALLIANCES

• Small molecule partial positive allosteric modulator (pPAM) of GABA receptors
• Improved efficacy, improved safety, lower potential for tolerance, dependence
• Addresses limitations of market-leading insomnia drugs
• Better sleep maintenance, strong sleep onset
• No significant residual effects
• Current status: Phase II Proof-of-Concept achieved (in 2008 / 2009)
• Phase II efficacy data from two studies (adults and elderly)
• Excellent safety and tolerability
• Difficult commercial positioning in US and EU
• First Partnership: JingXin Pharma develops product for China (clinical start 2011)
• Evotec receives small upfront, milestones, royalties

Investing for the ri build new allianceig p ht value points to s – or "stop loss"

Strategy overview of select ted un-partnered assets

A t s s e	i i i i P l d t t t o e n a n c a o n	S t t a u s	S i i f f i i l t t c e n c r a o n a e	i U d p s e	i N l t t e x v a u e p o n
E V T 5 0 1 - h i i H 3 t s a m n e i t t a n a g o n s	C i i t o g n o n, l n a r c o e p s y	P l i i l r e c n c a	H 3 t t r e c e p o r s a c a s i h i b i d h t t t n o r y a u o- a n e e r o l i h t t t r e c e p o r s s r e g a n g e u f f i i l i l t t t a c o m p e v y u i t t t n e u r o r a n n s m e r s	+ + +	/ P h I d i 2 0 1 1 2 0 1 2 t a s e a a n
E V T 4 0 1 P 2 X - 7 i t t a n a g o n s	U d l i t n e r e v a u a o n	P h I a s e ( ) l d t c o m p e e	N l i A T P- d t t o n- s e e c v e g a e i h l i h i d t t t o n c a n n n e r e s r c e w l l l d i i b i t t c e u a r s r u o n	+ +	f i i i f i D l l l b l t t t e n o n o p o e n a y v a u a e i d i i t n c a o n
P X / P X 2 2 / 3 2 3 i t t a n a g o n s	N h i & t e r o p a c u i f l i t n a m m a o r p a n y ; i i i t u r n a r y n c o n n e n c e	P l i i l r e c n c a	A T P- d h d t g a e e o m o- a n h i i h l t e e r o m e e r c o n c a n n e s i h d i i t t t w s n n c h l i l d p a r m a c o o o g c a a n b i h i l i t o p s c c a p r o p e r e s y	+ + + +	f i i i i i D P l l D l t t e n o n r e- c n c a e v e o p m e n C ( C ) d i d P D t a n a e
B l l t e a c e h l t e c n o o g y	M b l i t e a o c s e. g. D i b t a e e s	P l i i l r e c n c a	N l l d t t t o e a r g g e s s e e c e v b d l d t a s e o n n n o v e y a n d b i l i t t r u g a y	+ + + +	D f i i i P l i i l D l t t e n o n r e- c n c a e v e o p m e n C d i d ( P D C ) t a n a e
O h A S I C t e r s e. g. :	O i B A C E, F A A H r e x n, , ,…

Strategic imperativ ves for our business model

Next steps

Improvement of al l key parameters

First nine months 2010: CCondensed consolidated income statement (IFRS)

i € n m
	1 ) 2 0 0 9	1 ) 2 0 1 0	% 2 0 0 9 s v
R e e n e s v u	2 9 1	3 8 8	3 3 % +
G i r o s s m a r g n	3 8 3 %	4 4 0 %		D i s c o v e r y
R & D e x p e n s e s •	1 9 5	4 2	7 9 % -	i l l a a n c e s i g r o n g w
S G & A e p e n s e s x •	1 3 1	1 1 6	1 2 % -	i i f i l t s g g n c a n y y
A i i & i i t t t m o r s a o n m p a r m e n •	6 9	0 3		i h t t o w u i f i i s a c r c n g
R i t t e s r u c u r n g e x p e n s e s •	4 7.	0 0 0 0		i i g r o s s m m a a r r g g n n ,
O h ( i ) t t e r o p n c o m e e p e n s e s n e x • ,	0 1 -	0 0		i d t o p e r a n g a n l t t n e r e s u
( ) O i i l t p e r a n g n c o m e o s s	3 2 9. -	1 0 0	1 0 3 % +	i i i i t t p o s e v
( ) N i l t e n c o m e o s s	3 4 1 -	0 7

€ 70m liquidity – ^o operating cash flow under control

First nine months 2010: CCondensed cons. statement of cash flows (IFRS)

in € m

	1 ) 2 0 0 9	1 ) 2 0 1 0
N h i d d b ( d i ) t e c a s p r o e s e n v y u
i i i i O t t t p e r a n g a c v e s •	2 3 3 6 -	1 7 -
I i i i i t t t n e s n g a c e s v v •	5 2 2	1 2 7 -
i i i i i F t t n a n c n g a c v e s •	2 2 5 -	0 4 -	F i i i d i h t t t t t r s m e n c a o r a •
E h d i f f t c a n g e r a e e r e n c e x	0 0 0 4 4 -	0 0 7 7	i b i i t o p e r a n g s n e s s s u
C i f i h d h l d d t t a s a n c a s e q a e n s a e n o p e r o u v	3 1 1	1 8 8	i h t g e n e r a n g c a s
I t t n e s m e n s v •	2 4 4 1	5 1 4	I l d f € 1 9 n c u e s c a p e x o m •
A i i i t t t u c o n r a e s e c u r e s •	8 8 8	0 0
L i i d i b i i f i d t t q a e g n n n g o p e r o u y	9 2 2 4	0 6 7
N i / d i l i i d i t t e n c r e a s e e c r e a s e n q u y	2 8 8 4 -	0 4 -
L i i d i d f i d t t q u y a e n o p e r o	6 4 4 0	0 2 7

Q3 strong, despite e relatively low milestone income

Q3 2010: Condensed cons solidated income statement (IFRS)

i € n m
	Q 3 2 0 0 9	Q 3 2 0 1 0	% 2 0 0 9 s v
R e e n e s v u	1 0 4	1 3 9	3 3 % +
G i r o s s m a r g n	3 9 4 %	4 2 0 %
R & D e x p e n s e s •	3 2	1 2	6 1 % -
S G & A e p e n s e s x •	4 1	3 9	6 % -	Q 3 2 0 1 0 t s r o n g
A i i & i i t t t m o r s a o n m p a r m e n •	0 1	0 0		i t m p r o e m e n v
R i t t e s r c r n g e p e n s e s u u x •	0 5.	0 0 0 0		f i t o o p e r a n g d l t t a n n e r e s u
O ( ) h i t t e r o p n c o m e e p e n s e s n e x •	0 1 -	0 0
O i i ( l ) t p e r a n g n c o m e o s s	3 8. -	0 0 7 7 + +	1 8 4 % +
N i ( l ) t e n c o m e o s s	3 7 -	0 6 +

October sales ordealready strong out er book +31% at € 51m – tlook for 2011

Order book overview – Staatus beginning of October

in € m

Revenue guidance stronger liquidity p e and all g g rowth targets confirmed; position

New guidance for 2010

in € m

• ¹⁶ 1) Continuing business
• 2) Excluding potential US\$ 65m milestone income from R buy-back of the EVT 100 compound family Roche

• 3) Including Renovis acquisition

• 4) Including impairment and restructuring expenses of € 8.9m

• 5) Including impairment and restructuring expenses of € 27.7m
• 6) Including impairment and restructuring expenses of € 22.7m
• 7) Net income before extraordinary effects

Strong team committed to innovation and growth

Management & new shareholder structure

1) Former Develogen shareholders agreed to a 6 months lock-up (up to 7 m shares) 2) Delisted since November 2009

Controlling is key 1)

Evotec 2012 – key perform mance indicators – status Q3 2010

		B t t e	N e r	t e u r a	l W	o r s e
	K t e y p a r a m e e r s	2 +	1 +	0	1 1 -	2 2 -
D f d d d e e n a n e x p a n d i l l i s c o v e r y a a n c e s	O l l i t t e r a c o s m p a a c v • S f d b b k t t a u s o o r e r o o • E i f h h l f f i t t x e n s o n o e c n o o g y o e r n g • f E i h t t e n s o n o c s o m e r r e a c x u •
F h i h o c s o n g u l d l t a e e e o p m e n v u v p r o g r a m m e s	V l f d t a u e o s u p p o r e e o w n p r o g r a m m e s • S f l i i l t t a s o c n c a p r o g r e s s u • V l f d t a u e o p a r n e r e e p r o g r a m m e s • N b f I N D m e r o s u •
B l i k f a a n c e r s o r i b l h t t s s a n a e g r o u w	C i d h t t o s s n n p a r n e r e r e s e a r c u • M i l / f i t t e s o n e u p r o n n n c o m e • A l l i f i t a n c e o r m a o o n • O l l h h & h f i b i l i t t t t v e r a c a s r e a c p a o p r o a y •

Strong news flow to come end 2010 / 2011

Q3 overview of expected k key events

Key milestones

1	i G d r o s c o e r w v y l l i b i l d a a n c e s u , j ja i i i t t o n n n o a o n v l l i a n c e s	( C O ) E d l l i i l l i H D I, N i P h i l… t t t x p a n a e x s n g a a n c e e s e g o v a r s n o a r m a c e u c a • , / ( G ) B i l d l i d h l d i l l i h t t t t u s e v e r a n e w n e g r a e e e c n o o g y s e a s e a a n c e s e g e n e n e c • f f / D D l l i i i i i i i i l l i i i i l l l i i i i l l i i l l t t t t e v e r s g n c a n p r e c n c a a c n c a m e s o n e s •
2	G t e n e r a e i l i l i t o p m a p p e n e & l p r o g r e s s v a u e	Q E V T 1 0 3 P h I l i 1 t a a s s e e r e e s s u u s s n • S f P h I I i h E V T 1 1 0 1 i J 2 0 1 0 E V T 2 0 1 t t t t a r o a s e w n u n e ; p a r n e r • f A l 1 i d l l t t t t t e a s s r a e g c e a o r a n e a r y a s s e • I i i P h I i H 3 t t n a e a s e n •
3	M h t a n a g e g r o w d h t t a n p a o f i b i l i t t p r o a y	G b h 1 % 5 t r o r e e n e s m o r e a a n -o w v u y y -y • O i i R & D d i i i i € 1 0 t t t t t t t p m s e a n s r a e g c c n n o a o n n e s m e n s o a a p p p p r r o o m v v x x • K i l i i d i b € 6 4 t t t e e p s r a e g c q a o o e m u y v •

Leader in a growth h industry

Investment rationale for EEvotec

• • Sustainable > 15% y-o-y growth business wi near-term biotech upside options ith very gg g g strong gross margin and significant
• • Uniqp g ueortfolio of long-term drug y discovery Genentech, Novartis, Roche, Biogen Idec, P alliances ( g e. . Boehringer Ingelheim, CHDI, Pfizer, ONO Pharmaceutical...)
• • EVT 100 Roche alliance – near-term blockbu opportunity (2011/2012) uster product and \$ 65m milestone
• • Wealth of p g reclinical assets and technologie discovery alliances s available for p g artnering and to initiate new
• • Solid liquidity of > € 64m provides very good d strategic flexibility
• •Strong news flow 2010/11 ff

Building innovative drug discovery alliances

Your contact:

Dr Werner LanthalerChief Executive Officer

+49.(0).40.560 81-242 +49.(0).40.560 81-333 Fax werner.lanthaler@evotec.com