Quarterly Statement Q1 2016 (unaudited)

Strong start into the year

Forward-looking statements & General information

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 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.

Note:

The 2015 and 2016 results are not fully comparable. The difference stems from the acquisition of Evotec (France) SAS, effective 01 April 2015. While the results of Evotec (France) SAS are fully included in the accompanying consolidated income statement for the first three months of 2016, they were not included in the comparable period of the previous year. The accounting policies used to prepare interim information are the same as those used to prepare the audited consolidated financial statements for the year ended 31 December 2015.

Change in presentation:

The presented financial statements include a change in presentation in the first three months of 2015 and 2016. From 01 January 2016 onwards, amortisation of intangible assets are no longer presented in a separate line in the consolidated income statement but are allocated to the relating cost lines in the income statement. The prior-year period was changed accordingly resulting in higher costs of revenue (€ 0.6 m).

Very good start into the year

Highlights & lowlights – Significant events Q1 2016 – Evotec Group

EVT Execute

Strong growth in base business
Important milestone achievement in Padlock collaboration
Multi-year compound management agreement closed with Pierre Fabre (after period-end)
Milestone achievement in Bayer collaboration (after period-end)

EVT Innovate

Good progress in Cure X/ Target X programmes
Grant from The Michael J. Fox Foundation for Parkinson's Research
Good progress in existing partnerships (e.g. EVT201, EVT801 and other Sanofi oncology projects, kidney disease collaboration with AstraZeneca)
Partnership on immunooncology therapeutics with ex scienta

Corporate

Company formation and "Series A" funding of Topas Therapeutics
Long-term extension of Management Board contracts of CEO, COO, CSO; Nomination and contract of new CFO agreed

Lowlights

Phase out of EVT100 in TRD1) by Janssen Pharmaceuticals

Strong Q1 2016

Overview & Segment information Q1 2016 – Evotec AG and subsidiaries

in € m	EVT Execute Q1 2016	EVT Innovate Q1 2016	Intersegment eliminations	Evotec Group Q1 2016	Evotec Group Q1 2015
External revenues	31.1	6.4	–	37.5	21.5
Intersegment revenues	7.5	–	(7.5)	–	–
Gross margin	26.1%	46.1%		33.3%	28.0%
R&D expenses	(0.1)	(4.8)	0.5	(4.4)	(3.8)
SG&A expenses	(4.4)	(1.0)	–	(5.4)	(5.1)
Impairment of intangible assets	–	(1.4)	–	(1.4)	–
Other operating income (expenses), net	1.1	0.3	–	1.4	(0.4)
Operating income (loss)	6.8	(4.0)	–	2.7	(3.3)
EBITDA adjusted1)	9.6	(2.4)		7.2	(0.3)

Revenue increase mainly driven by strong performance of the base business, milestone achievement in Padlock collaboration and three months of the Sanofi contribution
Adjusted Group EBITDA strong and significantly increased

Excellent performance of base business and improved gross margin

Revenues & Gross margin – Q1 2016 versus prior-year period

Substantial Group revenue growth of 74% to € 37.5 m (2015: € 21.5 m)
Excluding milestones, upfronts and licences, Evotec's revenues for the first quarter 2016 were € 33.9 m, an increase of 83% over the same period of the comparable period of the prior year (2015: € 18.5 m)
Group revenue growth primarily due to an increase in base revenues across all business units and to contribution from Sanofi
Increased gross margin reflects growth in base revenues, improved capacity utilisation as well as favourable foreign exchange rate effects

Focused R&D efforts especially in CNS and oncology

R&D and SG&A expenses – Q1 2016 versus prior-year period

Higher R&D expenses in-line with expectations and strategic plans
Increased investments in CNS and oncology
Reduced R&D expenses compared to last year in the areas diabetes, fibrosis, inflammation and immuno-oncology due to successful partnering of EVT Innovate projects in 2015

SG&A expenses impacted by ongoing costs at Toulouse site acquired on 01April 2015 (SG&A expenses in Q1 2015 affected by transaction costs relating to the strategic collaboration with Sanofi)

Significantly improved EBITDA

Adjusted Group EBITDA – Q1 2016 versus prior-year period

Above market growth in base business

EVT Execute – Q1 2016 versus prior-year period

Revenue growth reflects new partnerships

EVT Innovate – Q1 2016 versus prior-year period

Strong revenue growth and improved EBITDA due to new partnerships signed in 2015
Increased R&D expenses due to intensified efforts in CNS and oncology
Full impairment of EVT100 series (€ 1.4 m)2)

1) Adjusted for changes in contingent considerations

2) In Q1 2016, Evotec was informed by Janssen Pharmaceuticals, Inc. that Janssen intends to terminate the licence agreement regarding NMDA antagonist with effect from August 2016.

Increase of equity ratio to 66.4%

Balance sheet and liquidity – Q1 2016 versus prior-year period

Q1 2016 cash flow in-line with expectations

Cash flow – Q1 2016 versus prior-year period

Operational cash outflow in Q1 2016 attributable to annual bonus, one-time extraordinary bonuses and advance payments being higher than in Q1 2015 (Cash inflow in Q1 2015 was primarily due to the receipt of milestone payments from the Bayer collaboration)
Investing cash flow: Investment securities matured or were sold to offset the operational cash outflow (In Q1 2015, the cash inflow from operations was used to purchase capital expenditure and investment securities)
No material changes in financing activities

Guidance 2016 confirmed

Overview – Guidance 2016

in € m

KPIs	Guidance 2016	Actual 2015
Group revenues1)	More than 15% growth	€ 115.4 m
EBITDA2) Adjusted Group	Positive and significantly improved compared to prior year	€ 8.7 m
R&D expenses	Approx. € 20 m	€ 18.3 m
Liquidity3)	Similar level compared to 2015	€ 134.5 m
Capex investments	Up to € 10 m	€ 11.2 m

2) Before contingent considerations, income from bargain purchase and excluding impairments

1) Excluding milestones, upfronts and licences

PAGE 11 Evotec AG I Quarterly Statement Q1 2016 (unaudited) | 10 May 2016

APPENDIX (unaudited)

Consolidated interim statement of financial position as of 31 March 2016

Balance sheet – Evotec AG and subsidiaries

in T€ except share data	As of 31 March 2016	As of 31 Dec. 2015
ASSETS
Current assets:
Cash and cash equivalents	49,153	44,497
Investments	73,329	89,443
Trade accounts receivables	19,013	20,933
Accounts receivables from related parties	126	136
Inventories	3,701	3,133
Current tax receivables	1,067	1,121
Other current financial assets	2,175	1,018
Prepaid expenses and other current assets	10,212	6,659
Total current assets	158,776	166,940
Non-current assets:
Property, plant and equipment	36,360	38,334
Intangible assets, excluding goodwill	22,209	25,154
Goodwill	44,008	45,648
Deferred tax asset	8,680	8,812
Non-current tax receivables	2,348	2,068
Other non-current financial assets	80	80
Other non-current assets	2,502	1,502
Total non-current assets	116,187	121,598
Total assets	274,963	288,538

in T€ except share data	As of 31 March 2016	As of 31 Dec. 2015
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current loan liabilities	14,345	14,213
Trade accounts payable	10,631	12,171
Advanced payments received	650	97
Provisions	6,055	16,694
Deferred revenues	7,283	8,763
Current income tax payables	246	232
Other current financial liabilities	1,263	633
Other current liabilities	8,659	3,597
Total current liabilities	49,132	56,400
Non-current liabilities:
Non-current loan liabilities	8,278	8,730
Deferred tax liabilities	1,377	1,538
Provisions	27,516	27,342
Deferred revenues	5,099	6,509
Other non-current financial liabilities	886	925
Total non-current liabilities	43,156	45,044
Stockholders' equity:
Share capital	132,587	132,584
Additional paid-in capital	694,358	693,740
Accumulated other comprehensive income	(22,378)	(18,510)
Accumulated deficit	(623,073)	(622,312)
Equity attributable to shareholders of Evotec AG	181,494	185,502
Non-controlling interest	1,181	1,592
Total stockholders' equity	182,675	187,094
Total liabilities and stockholders' equity	274,963	288,538

Consolidated interim income statement for the period from 01 January to 31 March 2016

Profit and loss – Evotec AG and subsidiaries

in T€ except share and per share data	Three months ended 31 March 2016	Three months ended 31 March 2015
Revenues	37,479	21,542
Costs of revenue	(25,008)	(15,506)
Gross profit	12,471	6,036
Operating income and (expenses)
Research and development expenses	(4,386)	(3,834)
Selling, general and administrative expenses	(5,367)	(5,118)
Impairment of intangible assets	(1,417)	–
Other operating income	4,403	1,258
Other operating expenses	(2,960)	(1,642)
Total operating expenses	(9,727)	(9,336)
Operating income (loss)	2,744	(3,300)
Other non-operating income (expense)
Interest income	227	178
Interest expense	(434)	(406)
Profit share from associated companies	(53)	(7)
Other expense from financial assets	(1)	–
Foreign currency exchange gain (loss), net	(2,074)	2,031
Other non-operating income	–	136
Total non-operating income (expense)	(2,335)	1,932
Income (loss) before taxes	409	(1,368)
Current tax expense	(1,508)	213
Deferred tax income	73	83
Total taxes	(1,581)	296
Net loss	(1,172)	(1,072)
thereof attributable to:
Shareholders of Evotec AG	(761)	(1,072)
Non-controlling interest	(411)	–
Weighted average shares outstanding	132,334,308	131,450,783
Net loss per share (basic/diluted)	(0.01)	(0.01)

Condensed consolidated interim statement of cash flows for the three months ended 31 March 2016

Cash flow – Evotec AG and subsidiaries

in T€	Three months ended 31 March 2016	Three months ended 31 March 2015
Cash flows from operating activities:
Net loss	(1,172)	(1,072)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities	5,474	2,672
Change in assets and liabilities	(14,331)	5,788
Net cash provided by (used in) operating activities	(10,029)	7,388
Cash flows from investing activities:
Purchase of current investments	(884)	(24,940)
Purchase of investments in affiliated companies net of cash acquired	(10)	–
Purchase of property, plant and equipment	(782)	(2,487)
Proceeds from sale of current investments	16,290	20,418
Net cash provided by (used in) investing activities	14,614	(7,009)
Cash flows from financing activities:
Proceeds from option exercise	5	49
Proceeds from issuance of loans	–	549
Repayment of loans	(162)	(45)
Net cash provided by (used in) financing activities	(157)	553
Net increase in cash and cash equivalents	4,428	932
Exchange rate difference	228	(358)
Cash and cash equivalents at beginning of year	44,497	48,710
Cash and cash equivalents at end of the period	49,153	49,284

Segment information for the period from 01 January to 31 March 2016

Segment information 2015 & 2016 – Evotec AG and subsidiaries

2016 in T€	EVT Execute	EVT Innovate	Intersegment eliminations	Evotec Group	2015 in T€	EVT Execute	EVT Innovate	Intersegment eliminations	Evotec Group
External revenues	31,067	6,412	–	37,479	External revenues	17,707	3,835	–	21,542
Intersegment revenues	7,497	–	(7,497)	–	Intersegment revenues	5,420	–	(5,420)	–
Costs of revenue	(28,511)	(3,458)	6,961	(25,008)	Costs of revenue	(17,896)	(2,158)	4,548	(15,506)
Gross profit	10,053	2,954	(536)	12,471	Gross profit	5,231	1,677	(872)	6,036
Operating income and (expenses)					Operating income and (expenses)
Research and development expenses	(57)	(4,865)	536	(4,386)	Research and development expenses	(135)	(4,571)	872	(3,834)
Selling, general and administrative expenses	(4,345)	(1,022)	–	(5,367)	Selling, general and administrative expenses	(3,849)	(1,269)	–	(5,118)
Impairment of intangible assets	–	(1,417)	–	(1,417)	Other operating income	1,032	226	–	1,258
Other operating income	3,666	737	–	4,403	Other operating expenses	(1,573)	(69)	–	(1,642)
Other operating expenses	(2,567)	(393)	–	(2,960)	Total operating expenses	(4,525)	(5,683)	872	(9,336)
Total operating expenses	(3,303)	(6,960)	536	(9,727)	Operating income (loss)	706	(4,006)	–	(3,300)
Operating income (loss)	6,750	(4,006)	–	2,744	Interest result				(228)
Interest result				(207)	Profit share from associated companies				(7)
Profit share from associated companies				(53)	Foreign currency exchange gain (loss), net				2,031
Other expense from financial assets				(1)	Other non-operating income				136
Foreign currency exchange gain (loss), net				(2,074)	Loss before taxes				(1,368)
Income before taxes				409	EBITDA adjusted	3,522	(3,849)		(327)
EBITDA adjusted	9,605	(2,371)		7,234

Important next dates

Financial Calendar 2016

Quarterly Statement Q1 2016: 10 May 2016
Annual General Meeting 2016: 14 June 2016
Half-year 2016 Interim Report: 10 August 2016
Quarterly Statement Q3 2016: 10 November 2016

Your contact:

Dr Werner Lanthaler Chief Executive Officer

+49.(0).40.560 81-242 +49.(0).40.560 81-333 Fax [email protected]