Evotec SE — Interim / Quarterly Report 2019

May 14, 2019

Quarterly Statement Q1 2019 (unaudited)

Very strong start into 2019

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 2018 and 2019 results are not fully comparable. The difference stems from the acquisition of Evotec ID (Lyon) SAS, effective 01 July 2018. The results from Evotec ID (Lyon) SAS are only included from 01 July 2018 onwards.

The accounting policies used to prepare this interim information are the same as those used to prepare the audited consolidated financial statements for the year ended 31 December 2018, except for the adoption of IFRS 16 as of 01 January 2019. From 01 January 2019 onwards, Evotec applies IFRS 16.

Excellent scientific and operational progress

Significant events Q1 2019 – Evotec Group

EVT Execute & EVT Innovate

• New and extended drug discovery and development agreements
• Pipeline progress with Phase II starts in Second Genome alliance (NASH1) ) and in Bayer alliance (Chronic cough)
• Increased demand for INDiGO solutions
• Multiple important milestone achievements
• New licence agreement with Galapagos in fibrosis
• Driving innovation in anti-infective research through alliances with Helmholtz and GARDP2)
• Strategic agreement with The Mark Foundation in immunooncology based on Evotec's discovery platform TargetAlloMod
• BRIDGE model gaining further momentum

Corporate

• Conversion into European Company (SE) effective 29 March 2019
• Repayment of debt bridge facility (€ 140 m) in context of Aptuit acquisition in August 2017 completed (after periodend)
• Participation in further financing round of Eternygen GmbH
• Outlook for 2019 confirmed

¹⁾ NASH = Non-alcoholic Steatohepatitis

²⁾ GARDP = The Global Antibiotic Research and Development Partnership initiated by the World Health Organization ("WHO") and the Drugs for Neglected Disease initiative ("DNDi")

Strong base business and high milestones

Condensed income statement Q1 2019 – Evotec SE and subsidiaries

in € m1)

	Q1 2019	Q1 2018	% vs 2018
Revenues from contracts with customers2)	103.8	81.6	27%
Gross margin2)	30.5%	22.6%	–
 R&D expenses	(14.4)	(4.6)	211%
 SG&A expenses	(14.8)	(13.3)	11%
 Other op. income (expenses), net	16.5	6.0	178%
Operating result	19.1	6.5	192%
Adjusted Group EBITDA3)	30.0	14.0	114%
Net income	13.1	3.5	278%

• Group revenue growth mainly due to strong performance in the base business and milestone contributions
• Gross margin in Q1 2019 impacted by better base margins, higher milestone contributions, and favourable FX effects
• Unpartnered R&D expenses of € 8.1 m (Q1 2018: € 4.6 m)
• Other operating income higher due to reimbursement of ID expenses and increased R&D tax credits
• Adjusted Group EBITDA in Q1 2019 positively affected by first-time application of IFRS 16 (€ 3.1 m)

Continued growth path at strong margin

Revenues & Gross margin overview

• Revenue growth due to strong performance in the base business and positive milestone contributions (e.g. Bayer, Boehringer Ingelheim, Second Genome)
• Favourable impact on gross margin following milestone contributions, higher margins in some business lines, and positive FX effects (1.5%-points)
• Gross margins from Q1 2018 onwards represent a different business mix and are affected by increased amortisation resulting from the PPA of strategic acquisitions

PAGE 4 Evotec SE I Quarterly Statement Q1 2019 (unaudited) | 14 May 2019 1) Gross margin in the future may be 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 business through Aptuit.

²⁾ 2017 and 2018 data including reclasses of recharges according to IFRS 15

Accelerated R&D investments, SG&A reflect growth

R&D and SG&A expenses overview

• Focused unpartnered R&D expenses in Q1 2019 mainly in metabolic and oncology projects as well as in iPSC research
• Partnered R&D expenses in infectious disease portfolio

Increase in SG&A expenses in Q1 2019 mainly due to increased personnel expenses (addition of Evotec ID (Lyon)), consultancy fees, and overall Company growth

Both segments fully on strategy

Segment information Q1 2019 – Evotec SE and subsidiaries

in € m1)

	EVT Execute	EVT Innovate	Inter segment elimination	Not allocated2)	Evotec Group
Revenues	100.3	18.8	(18.8)	3.5	103.8
Gross margin	29.0%	24.8%	–	–	30.5%
 R&D expenses	(0.1)	(16.3)	2.0	–	(14.4)
 SG&A expenses	(12.0)	(2.8)	–	–	(14.8)
 Other op. income (expenses), net	4.8	11.7	–	–	16.5
Operating result	21.8	(2.7)	–	–	19.1
Adjusted EBITDA3)	32.3	(2.3)		–	30.0

• Revenue growth in EVT Execute driven by strong performance in the base business and milestone contributions
• Gross margin in EVT Execute affected by highmargin base business; gross margin in EVT Innovate affected by larger contracts with higher material costs
• Increase in R&D expenses in EVT Innovate both in unpartnered and partnered R&D
• Significantly improved EBITDA for EVT Execute (Q1 2018: € 17.2 m), EVT Innovate EBITDA as planned

goodwill, other intangible and tangible assets as well as the total non-operating result

¹⁾ Differences may occur due to rounding

PAGE Evotec SE I Quarterly Statement Q1 2019 (unaudited) | 14 May 2019 2) Revenues in the segments consist of revenues from contracts with customers without revenues from recharges as those are not of importance for the management to assess the economic situation of the segments. 3) Before contingent considerations, income from bargain purchase and excl. impairments on

Strong business performance reflected in EBITDA

Adjusted Group EBITDA overview

Adjusted Group EBITDA1) (in € m)	in € m3)	EVT Execute	EVT Innovate	Interseg ment elimination	Evotec Group
30.0	Operating income (expense)	21.8	(2.7)	–	19.1
	 plus depreciation of tangible assets	7.7	0.4	–	8.1
	 plus amortisation of intangible assets	2.8	0.0	–	2.8
	Adjusted EBITDA1)	32.3	(2.3)	–	30.0
14.0 13.4
	 Higher R&D tax credits and reimbursed partnered R&D expenses from Sanofi lead to increase in other operating result in Q1 2019
	 Adjusted Group EBITDA increase of 114% reflects growth in the base business, high milestone contributions, and effects from the first-time application of IFRS 16
Q1 20172) Q1 2018 Q1 2019

²⁾ 2017 data adjusted according to IFRS 15 3) Differences may occur due to rounding

Good momentum across all business lines

EVT Execute – Key performance indicators Q1 2019

• Revenue growth in EVT Execute driven by strong performance in the base business and milestone contributions
• Significant upswing of adjusted EBITDA mainly due to the strong growth in revenues and first-time application of IFRS 16

Continued focus on acceleration of platform innovation

EVT Innovate – Key performance indicators Q1 2019

• Revenues in Q1 2019 positively impacted by strong performance in the base business as well as milestone and upfront contributions from new and ongoing partnerships
• Adjusted EBITDA in Q1 2019 as expected following higher expenses in Q1 2019
• Unpartnered R&D expenses in Q1 2019 with a focus on metabolic and oncology projects and iPSC research; partnered R&D expenses of € 6.3 m fully reimbursed by Sanofi

Significant impact of new IFRS 16 standard

Balance sheet and liquidity – 31 March 2019 versus 31 December 2018

Assets (in € m)			Liabilities & Stockholders' equity (in € m)
115.7	115.4	880.8			880.8
	771.9	141.6		771.9
Cash, cash equivalents and investments	149.4		Loans and lease obligations	114.5 189.9	227.2
Other current		202.9	Current liabilities	139.3	120.0
and non current assets	188.2		Non-current liabilities and	93.2	85.3
Property, plant	90.5	190.1	deferred taxes
and equipment Intangible assets and goodwill	343.8	346.2	Total stockholders' equity	424.9 213.9	448.3
	31.12.2018	31.03.2019		31.12.2018	31.03.2019

• Increase in property, plant and equipment following capitalisation of operating leases as fixed assets (€ 100.3 m) (IFRS 16 application)
• Higher non-current assets due to increase in R&D tax receivables
• Loans and finance leases heavily affected by first-time application of IFRS 16 (€ 102.3 m)
• Decrease in non-current liabilities due to lower contract liabilities
• Strong equity ratio of 50.9% (31 December 2018: 55.0%)

Cash flow according to plan

Cash flow – Q1 2019 versus prior-year period

• Operating cash flow in Q1 2019 mainly affected by seasonal high cash outflow and a reduction in contract liabilities
• Investing cash flow in Q1 2019 includes € 10.5 m proceeds from sale of current investments off-set by capital expenditures
• Cash flow from financing activities in Q1 2019 mainly impacted by a new tranche of the European Investment Bank loan (€ 11.2 m)
• Strong liquidity position at € 141.6 m (31 December 2018: € 149.4 m)

Guidance 2019 confirmed

Overview – Guidance 2019

in € m

KPIs	Guidance 2019	Actual 2018
Group revenues from contracts with customers without revenues from recharges	Approx. 10% growth	€ 364.0 m1)
Unpartnered R&D expenses	Approx. € 30-40 m	€ 22.9 m
Adjusted Group EBITDA2)	Improve by approx. 10% compared to 2018	€ 92.0 m3)

APPENDIX (unaudited)

Consolidated interim statement of financial position as of 31 March 2019

Balance sheet – Evotec SE and subsidiaries

in T€ except share data	As of 31 March 2019	As of 31 Dec 2018
ASSETS
Current assets:
Cash and cash equivalents	111,630	109,055
Investments	29,974	40,394
Trade accounts receivables	48,817	45,938
Accounts receivables from related parties	2,041	2,092
Inventories	5,643	5,660
Current tax receivables	16,115	13,829
Contract assets	13,766	12,913
Other current financial assets	492	430
Prepaid expenses and other current assets	26,171	19,458
Total current assets	254,649	249,769
Non-current assets:
Investments accounted for using the equity method
and other long-term investments	28,578	28,963
Property, plant and equipment	190,078	90,519
Intangible assets, excluding goodwill	121,021	122,989
Goodwill	225,203	220,791
Deferred tax asset	42,293	43,329
Non-current tax receivables	18,048	14,601
Other non-current financial assets	20	27
Other non-current assets	931	895
Total non-current assets	626,172	522,114
Total assets	880,821	771,883

in T€ except share data	As of 31 March 2019	As of 31 Dec 2018
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current loan liabilities	54,818	55,069
Current portion of lease obligations	12,293	1,850
Trade accounts payable	32,583	31,137
Provisions	23,570	27,979
Contract liabilities	44,050	49,676
Deferred income	2,150	11,511
Current income tax payables	5,710	4,232
Other current financial liabilities	42	42
Other current liabilities	11,931	14,779
Total current liabilities	187,147	196,275
Non-current liabilities:
Non-current loan liabilities	67,886	54,680
Long-term lease obligations	92,212	2,866
Deferred tax liabilities	21,391	21,517
Provisions	21,028	19,986
Contract liabilities	35,629	44,041
Deferred income	6,500	7,000
Other non-current financial liabilities	770	638
Total non-current liabilities	245,416	150,728
Stockholders' equity:
Share capital	149,765	149,063
Additional paid-in capital	784,032	783,154
Accumulated other comprehensive income	(20,671)	(27,200)
Accumulated deficit	(465,739)	(481,013)
Equity attributable to shareholders of Evotec SE	447,387	424,004
Non-controlling interest	871	876
Total stockholders' equity	448,258	424,880
Total liabilities and stockholders' equity	880,821	771,883

Consolidated interim income statement for the period from 01 January – 31 March 2019

Profit and loss – Evotec SE and subsidiaries

in T€ except share and per share data	Three months ended 31 March 2019	Three months ended 31 March 20181)
Revenues from contracts with customers	103,849	81,637
Costs of revenue	(72,196)	(63,149)
Gross profit	31,653	18,488
Operating income and (expenses)
Research and development expenses	(14,359)	(4,616)
Selling, general and administrative expenses	(14,762)	(13,294)
Other operating income	18,398	8,065
Other operating expenses	(1,872)	(2,112)
Total operating expenses	(12,595)	(11,957)
Operating income	19,058	6,531
Non-operating income (expense)
Interest income	191	177
Interest expense	(1,061)	(447)
Share of the loss of associates accounted for using the equity
method	(1,364)	(728)
Other income from financial assets	1	3
Foreign currency exchange gain (loss), net	434	(1,527)
Other non-operating income	106	3
Total non-operating income (expense)	(1,693)	(2,519)
Income before taxes	17,365	4,012
Current tax expense	(2,523)	(1,530)
Deferred tax income	(1,792)	973
Total taxes	(4,315)	(557)
Net income	13,050	3,455
thereof attributable to:
Shareholders of Evotec SE	13,055	3,457
Non-controlling interest	(5)	(2)
Weighted average shares outstanding	149,140,885	147,292,602
Net income per share (basic)	0.09	0.02
Net income per share (diluted)	0.09	0.02

Condensed consolidated interim statement of cash flows for the three months ended 31 March 2019

Cash flow – Evotec SE and subsidiaries

in T€	Three months ended 31 March 2019	Three months ended 31 March 2018
Cash flows from operating activities:
Net income	13,050	3,455
Adjustments to reconcile net income to net cash provided by operating activities	15,260	8,224
Change in assets and liabilities	(41,451)	(7,540)
Net cash provided by (used in) operating activities	(13,141)	4,139
Cash flows from investing activities:
Purchase of investments in associated companies and other long-term investments	(979)	(2,689)
Purchase of property, plant and equipment	(5,845)	(6,212)
Payment of subsequent contingent considerations	–	(1,460)
Proceeds from sale of current investments	10,533	2,835
Net cash provided by (used in) investing activities	3,709	(7,526)
Cash flows from financing activities:
Proceeds from option exercise	676	15
Proceeds from issuance of loans	28,399	4,000
Repayment lease obligation	(2,492)	(208)
Repayment of loans	(15,455)	(10,596)
Net cash provided by (used in) financing activities	11,128	(6,789)
Net decrease in cash and cash equivalents	1,696	(10,176)
Exchange rate difference	879	511
Cash and cash equivalents at beginning of year	109,055	67,017
Cash and cash equivalents at end of the period	111,630	57,352

Segment information for the period from 01 January – 31 March 2019

Segment information 2018 & 2019 – Evotec SE and subsidiaries

2019 in T€	EVT Execute	EVT Innovate	Intersegment eliminations	Transition	Evotec Group
External revenues	81,571	18,824	–	3,454	103,849
Intersegment revenues	18,745	–	(18,745)	–	–
Costs of revenue	(71,240)	(14,155)	16,653	(3,454)	(72,196)
Gross profit	29,076	4,669	(2,092)	–	31,653
Operating income and (expenses)
Research and development expenses	(131)	(16,320)	2,092	–	(14,359)
Selling, general and administrative expenses	(11,975)	(2,787)	–	–	(14,762)
Other operating income	6,466	11,932	–	–	18,398
Other operating expenses	(1,616)	(256)	–	–	(1,872)
Total operating expenses	(7,256)	(7,431)	2,092	–	(12,595)
Operating income (loss)	21,820	(2,762)	–	–	19,058
Interest result					(870)
Share of the loss of associates accounted for using equity method					(1,364)
Other income (expense) from financial assets, net					1
Foreign currency exchange gain (loss), net					434
Other non-operating income					106
Income before taxes					17,365
EBITDA adjusted	32,330	(2,294)		–	30,036

2018 in T€	EVT Execute	EVT Innovate	Intersegment eliminations	Transition	Evotec Group1)
External revenues	68,565	10,419	–	2,653	81,637
Intersegment revenues	9,979	–	(9,979)	–	–
Costs of revenue	(62,185)	(7,177)	8,866	(2,653)	(63,149)
Gross profit	16,359	3,242	(1,113)	–	18,488
Operating income and (expenses)
Research and development expenses	(142)	(5,587)	1,113	–	(4,616)
Selling, general and administrative expenses	(11,524)	(1,770)	–	–	(13,294)
Other operating income	9,535	1,183	–	(2,653)	8,065
Other operating expenses	(4,260)	(505)	–	2,653	(2,112)
Total operating expenses	(6,391)	(6,679)	1,113	–	(11,957)
Operating income	9,968	(3,437)	–	–	6,531
Interest result					(270)
Share of the loss of associates accounted for using equity method					(728)
Other income (expense) from financial assets, net					3
Foreign currency exchange gain (loss), net					(1,527)
Other non-operating income					3
Income before taxes					4,012
EBITDA adjusted	17,163	(3,148)		–	14,015

Important next dates

Financial calendar 2019

Annual Report 2018	28 March 2019
Quarterly Statement Q1 2019	14 May 2019
Annual General Meeting 2019	19 June 2019
Half-year 2019 Interim Report	14 August 2019
Quarterly Statement 9M 2019	12 November 2019

Your contact: 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