Evotec SE — Interim / Quarterly Report 2020

May 14, 2020

Multimodality = More Opportunity

Forward-looking statement

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:

Just-Evotec Biologics (JEB, former Just.Bio) was acquired effective July 2, 2019 and was fully consolidated in the group numbers from the respective date onwards. Hence, 2019 and 2020 numbers are not fully comparable for Q1, in particular with reference to the EVT Execute segment.

Welcome

The Management Team

#Researchneverstops

Mastering COVID-19

What is paramount in this situation
Protect	Respect	Focus	Help
 and Vaccines ("ACTIV")   and vaccines   …	Involved in multiple activities to combat COVID-19	NIH-led initiative Accelerating COVID-19 Therapeutic Interventions "COVID R&D", global initiative, leading repurposing workstream Conducing concept work for a COVID-19 proof of concept research project for N4 Pharma's novel delivery system for cancer treatments Partnership with Ology for the evaluation and analytical characterisation of antibodies against SARS-CoV-2 virus

Agenda

Highlights

Financial performance Q1 2020

Scientific and operational performance Q1 2020

Guidance 2020

Our mission is more relevant than ever before

Our long-term mission in drug discovery and development

Manfred Eigen Nobel Prize 1967

We design and apply innovative technologies and processes across all modalities. We want to expand access to more precise and effective medicines together with our partners.

Strong start into 2020

Q1 highlights

• Multiple new and extended drug discovery and development agreements on all platforms
• Entering gene therapy through establishing Evotec GT and alliance with Takeda
• Just Evotec Biologics on track; J.POD® on track
• Further programme from multi-target alliance with Bayer in Phase I
• Expansion of iPSC therapy platform through alliance with panCELLa
• Strategic partnership with leon-nanodrugs
• Rights to beta cell replacement therapy regained start of "QRbeta Therapeutics" initiative (after period-end)

Guidance on track

Financials Q1 2020 & FY 2020 Guidance1)

Good financial performance

• Increase of revenues by 15% to € 119.4 m (Q1 2019: € 103.8 m)
• Adjusted EBITDA2) stable at € 30.0 m (Q1 2019: € 30.0 m)
• Increased unpartnered R&D expenses of € 11.4 m (Q1 2019: € 8.1 m)
• Strong liquidity position of € 320.7 m (31 December 2019: € 320.0 m)

Guidance - Confirmed (despite: COVID-19; loss of Sanofi subsidy; ramping up J.POD® capacities)

• Total Group revenues € 440 480 m (2019: € 446.4 m)
• Adjusted Group EBITDA2) € 100 120 m, (2019: € 123.1 m)
• Unpartnered Group R&D3) expenses of approx. € 40 m (2019: € 37.5 m)

¹⁾ Given current global insecurities, a likely negative impact from the ongoing Corona pandemic is already estimated within the introduced guidance for revenues & adjusted EBITDA

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⁾ Evotec focuses its guidance & upcoming reporting on the "unpartnered R&D" part. ID-related R&D expenses will be fully reimbursed by its partner Sanofi ("partnered R&D").

Multimodality = More Opportunities

Small molecules, Biologics, Cell & Gene therapy in R&D

Agenda

Highlights

Financial performance Q1 2020

Scientific and operational performance Q1 2020

Guidance 2020

Continued growth despite slow start of milestones

Condensed income statement Q1 2020 – Evotec Group

in € m1)

	Q1 2020	Q1 2019	% vs. 2019
Revenues from contracts with customers	119.4	103.8	15%
Gross margin	27.9%	30.5%	–
 R&D expenses	(15.1)	(14.4)	5%
 SG&A expenses	(17.3)	(14.8)	17%
 Other op. income (expenses), net	15.1	16.5	(8)%
Operating income	16.1	19.1	(16)%
Adjusted Group EBITDA2)	30.0	30.0	0%
Net income	17.1	13.1	31%

• Revenue driven by strong performance in base business across all business lines, as well as Just – Evotec Biologics (€ 7.9 m)
• SG&A reflects organic and strategic growth
• Other operating income mainly influenced by reduced R&D tax credits in Italy
• Favourable FX effect from strengthened USD vs EUR

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

Strong base business and gross margin

Revenues & Gross margin overview Q1 2020

Both segments with strong performance

Segment information Q1 2020 – Evotec Group

in € m1)

	EVT Execute	EVT Innovate	Inter segment elimination	Not allocated (IFRS 15)3)	Evotec Group
Revenues	118.2	23.3	(26.3)	4.1	119.4
Gross margin	29.3 %	4.6 %	–	–	27.9 %
 R&D expenses	(1.3)	(16.2)	2.5	–	(15.1)
 SG&A expenses	(14.1)	(3.2)	–	–	(17.3)
 Other op. income (expenses), net	3.6	11.5	–	–	15.1
Operating result	22.9	(6.8)	–	–	16.1
Adjusted EBITDA2)	35.4	(5.4)	–	–	30.0

• Increase of 18% in EVT Execute reflects strong base business growth
• Revenue growth of 24% in EVT Innovate driven by long-term alliances
• R&D expenses in EVT Execute in context of Just - Evotec Biologics
• R&D expenses in EVT Innovate as planned
• Adjusted EBITDA of EVT Execute improved

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) Not allocated to segments: Material charges according IFRS 15

¹⁾ Differences may occur due to rounding

Strong balance sheet and liquidity position

Balance sheet and liquidity – 31 March 2020 versus 31 Dec. 2019

Agenda

Highlights

Financial performance Q1 2020

Scientific and operational performance Q1 2020

Guidance 2020

Important strategic expansion on many fronts

EVT Execute – Major achievements Q1 2020

• Important step into gene therapy and longterm research alliance with Takeda
• New integrated agreement with Amgen
• Strategic INDiGO collaboration with Ildong Pharmaceutical Co., Ltd.
• Very good start for Just Evotec Biologics:
• Continued good construction progress of first J.POD®
• Multi-year collaboration with MSD around the J.POD®
• Development and manufacturing agreement with OncoResponse
• Development of library of a new class of humanoid antibodies using a novel, AI-derived approach (HAL)
• Partnership with Ology on COVID-19

Well-balanced global customer mix

EVT Execute – Selected KPIs Q1 2020

Revenues by customer segment YTD1) (in %)		Customer type YTD1) (in %)		Revenues by region YTD1) (in %)
		100%	Mid-sized Pharma	15%	100%	Rest of World		100% 4%
Remaining	34%		Foundation/ NFP/ Academic	7%		USA	40%
Top 11-30 customers	23%		Biotech	48%
Top 10 long-term strategic alliances	43%		Top 20 Pharma	30%		Europe	56%
	Q1 2020			Q1 2020			Q1 2020

Expanding the multimodality "Autobahn"

Establishing Gene Therapy

Evotec GT – Gene Therapy

• Strong leadership team with acknowledged expertise in gene therapy
• Extensive disease insights and expertise in gene therapy applications for hemophilia, hematology, metabolic and muscle diseases
• World-class expertise and know-how in the field including vectorology, virology, analytics & assays, etc.
• Smooth entry into the gene therapy market planned – starting with Takeda alliance

J.POD® – The Biologics Facility of the Future

J.POD® – relatively low CAPEX and primary OPEX-driven manufacturing

First J.POD® facility – exterior complete

J.POD® – construction progress

Clinical & commercial facility for biologics. Building size: 130,000 SF1)

Continued expansion of iPSC leadership

EVT Innovate – Major achievements Q1 2020

• Good pipeline progress, e.g. new clinical entries with Bayer, Exscientia, NIH
• Regained rights to beta cell replacement therapy – "QRbeta Therapeutics" initiative (after period-end)
• Expansion of iPSC-based cell therapy platform with panCELLa
• Important role in global initiatives to fight Tuberculosis and COVID-19

Fully invested pipeline, gaining visibility

Partnership portfolio pre-clinical and clinical

	Molecule	Therapeutic Area/Indication	Partner	Discovery	Pre-clinical	Phase I	Phase II	Phase III
	EVT201	CNS – Insomnia
	BAY-1817080	Chronic cough
	Backup 1817080	Chronic cough
	CT7001	Oncology
	CT7001	Oncology
	EVT401	Immunology & Inflammation
Clinical	ND1)	Multiple targets – Endometriosis
	ND1)	Multiple targets – Endometriosis
	ND1)	Multiple targets – Endometriosis
	Various	Respiratory
	ND1)	Oncology
	ND1)	Immunology & Inflammation
	DSP-1181	Obessive-compulsive disorder
	Chick V	Antibody project
	ND1)	Pain
	Various	Multiple targets – Endometriosis
	EVT801	Oncology
Pre-clinical	TargetImmuniT	Oncology – Immunotherapy
	ND1)	Oncology (+ several discovery programmes)
	ND1)	Fibrosis
	Various ND1)	Nephrology
	Various ND1)	Metabolic – Diabetes
	Various	Neurodegeneration
	Various	CNS, Metabolic, Pain & Inflammation	>10 further programmes

>100 discovery projects are progressing rapidly

Partnership research and discovery portfolio

	Molecule	Therapeutic Area/Indication	Partner	Discovery	Pre-clinical	Phase I	Phase II	Phase III
	Various ND1)	Nephrology
	ND1)	Nephrology
	ND1)	PCOS
	ND1)	PCOS
	INDY inhibitor	Metabolic
	Various	Oncology
	ND1)	Oncology
	ND1)	Oncology – Colorectal cancer
	ND1)	Oncology – DNA damage response
	ND1)	Novel antibiotics
	ND1)	Novel antibiotics
	ND1)	Anti-bacterial
Discovery	TargetPicV	Antiviral
	Various	Anti-infectives	>5 programmes
	Various	All indications
	ND1)	Dermatological diseases
	ND1)	Facioscapulohumeral Dystrophy
	Various	Immunology & Inflammation – Tissue fibrosis
	Various	Fibrotic disease	Fibrocor Therap./ Galapagos
	Various ND1)	Immunology & Inflammation
	ND1)	Inflammatory
	ND1)	Cancer
	Various	Internal: Oncology, CNS, Metabolic, Pain & Inflammation	>40 further programmes

Development of beta cell therapy product

Despite successful pre-clinical development project returns to Evotec

Durable normalisation of blood glucose levels

iPSC-derived beta cells in diabetic animal PoC study

• Sustained normoglycemia
• Normoglycemia achieved upon vascularisation
• Circulating human insulin levels are consistent with full glucose control1)

Paradigm shift to provide a cure

Current insulin therapy versus beta cell therapy

Beta cell therapy - the new standard of care

Off-the-shelf iPSC-derived beta cells

¹⁾ Induced pluripotent stem cells

²⁾ Transplantation of cadaveric human islets into the liver for the treatment of diabetes; Shapiro et al., 2017

Non-encapsulated beta cells will be next

Enabled by enhanced iPSC lines – panCELLa1)

Cloaking	 Genetic modifications to prevent rejection by the host immune system (auto- and allo-immunity)  Avoids the need for immunosupressants or immunoisolating device	CTLA4-Ig T-cells NK-cells HLA-G Examples for cloaking strategies
Inducible kill switch	 Fail-safe concept through suicide gene approach2)  Allows to selectively eliminate tumour-forming, dividing cells pre-transplantation or in patients  Establishes safety handle for device-less cell transplantation	Gancyclovir Dividing graft cell expresses TK and is suceptible to killing by Gancyclovir

1) https://www.evotec.com/en/invest/news--announcements/p/evotec-expands-its-ipsc-based-cell-therapy-platform-evocells-through-licensing-agreement-withpancella-5921 2) www.pancella.com

Disruption of one of the biggest healthcare markets

Market potential for treatment of insulin-dependent diabetes

• Insulin-dependent diabetes is high and rising globally1)
• ~ \$ 30 bn market in 20182)
• 578 million diabetes patients predicted for 2030
• ~90% of which are T2D patients, which eventually progress to insulin injections
• Tremendous commercial potential with market entry expected 2027

3) Globaldata list more than 500 companies active in diabetes (count includes affiliates or large pharma companies)

⁴⁾ Insulin and its analogues, with or without additional technical devices like pumps, closed loop systems, etc.

Co-owned pipeline of equity holdings is expanding

Equity participations

Equity participation Facioscapulo humeral mus cular dystrophy Initiated 2011	Equity participation Metabolic disorders Initiated 2016	Spin-off Nanoparticle based therapeutics Initiated 2016	Equity participation Targeting metallo enzymes Initiated 2016	Equity participation Innovative pathways in oncology Initiated 2016	Equity participation Fibrosis partnership Initiated 2017	Consortium membership Kidney diseases Initiated 2017	Equity participation AI for auto mated drug design Initiated 2018
Joint Venture with Vifor Pharma	Spin-off DNA damage	Equity participation	Equity participation	Equity participation	Equity participation	Equity participation
Kidney diseases Initiated 2019	response Initiated 2019	Inflammatory disease Initiated 2019	Oncology/ Biologics Initiated 2019	Women's health Initiated 2019	Formulation nanotechno logies Initiated 2020	Failsafe cloaking for cell therapies Initiated 2020	More to come …

Agenda

Highlights

Financial performance Q1 2020

Scientific and operational performance Q1 2020

Guidance 2020

Experts strengthen long-term vision

New appointments

Friedrich Scheiflinger EVP Head of Gene Therapy	 30+ years of GT experience with Baxter, Baxalta, Shire, Takeda  Strong science background in hematology, LSDs and gene therapy
Markus Dangl EVP Head of Innovate Oncology	 19 years experience in leading oncology projects at e.g. Roche  Former CSO at Achilles Therapeutics
Volker Braun SVP Head of ESG & Investor Relations	 20+ years capital market participant as sell-side analyst at equinet Bank, Commerzbank & Bankhaus Lampe  Strong interest and background in ESG

On track to master also pandemic challenges

Guidance 2020

1	Good top line growth	Total Group revenues expected to range from € 440 – 480 m, despite loss of € 20 m subsidy from Sanofi, and certain COVID-19 challenges1)
2	Strong EBITDA	Adjusted Group EBITDA2) expected to be in the range of € 100 – 120 m, at comparable level as in 2019, despite loss of € 20 m subsidy from Sanofi, significant ramping up J.POD® capacities, and certain COVID-19 challenges
3	Focused R&D investments	Unpartnered Group R&D expenses of approx. € 40 m3)

1) Given current global insecurities, a likely negative impact from the ongoing Corona pandemic is already estimated within the introduced guidance for revenues and adjusted EBITDA

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) Evotec focuses its guidance and upcoming reporting on the "unpartnered R&D" part. ID-related R&D expenses will be fully reimbursed by its partner Sanofi ("partnered R&D").

Upcoming important dates

Financial calendar 2020

Annual Report 2019	26 March 2020
Quarterly Statement Q1 2020	14 May 2020
Virtual Annual General Meeting 20201)	16 June 2020
Half-year 2020 Interim Report	12 August 2020
Quarterly Statement 9M 2020	12 November 2020

1) Invitation went out on May 6; the entire annual general meeting, will be live-streamed (audio and video) for shareholders and their representatives via a passwordprotected internet service; all further information available on the Evotec website under https://www.evotec.com/en/invest/annual-general-meeting

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