Evotec SE — Interim / Quarterly Report 2022

Aug 11, 2022

Accelerating precision medicine

Evotec SE, H1 2022 Interim Report, 11 August 2022

Cautionary statement regarding forward-looking statements

Information set forth in this presentation contains forward-looking statements, which involve a number of risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as "anticipate", "believe", "could", "estimate", "expect", "goal", "intend", "look forward to", "may", "plan", "potential", "predict", "project", "should", "will", "would" and similar expressions. 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. Given these risks, uncertainties, and other factors, you should not place undue reliance on these forward-looking statements.

Welcome

The Management Team

Agenda

Highlights

Financial performance H1 2022

Scientific and operational performance H1 2022

ESG, Outlook and Guidance 2022

Significant new partnerships based on data-driven platforms

H1 2022 – Highlights & lowlights

Highlights

• Major expansion and extension of targeted protein degradation alliance with BMS
• Several new integrated drug discovery, INDiGO, CMC, sample management agreements
• New collaborations with Almirall (dermatology), Boehringer Ingelheim (iPSC; Ophthalmology), Eli Lilly (E.MPD), Janssen (TargetAlloMod) and Sernova (iPSC; Diabetes)
• Strong demand and high capacity utilisation yields excellent gross margin in base business
• Just-Evotec Biologics still in its build-up phase; Number and value of new partnerships more than doubled versus H1 2021
• Co-owned pipeline projects progressing well
• Addition of cGMP cell therapy manufacturing through acquisition of Rigenerand, now Evotec (Modena)
• Expansion of EVOequity portfolio with new equity stakes in promising companies like e.g. Sernova

Lowlights

• Delays in pipeline milestones and of revenue recognition from scaling continuous biologics manufacturing
• Termination of development of P2X3 antagonist eliapixant by Bayer
• Strong headwinds from rising energy and material costs and overall inflation

Keeping the pace

Financials H1 2022 & FY 2022 guidance

Undisrupted demand from all industry sectors

• Group revenues up 24% (€ 336.9 m vs. H1 2021: € 271.3 m)
• Like-for-like growth of Group revenues (adj. for fx effects) up 19%
• Growth of base business (excl. milestones, upfront payments, licenses) up 26%
• Adjusted Group EBITDA3) of € 33.6 m down 7% (H1 2021: 36.2 m) balancing:
• Higher margin business and positive fx-effects
• Less milestones, upfront and license revenues, capacity expansion, ramp up of J.POD® Redmond (US), M&A related costs, energy and material costs as well as higher expenses for unpartnered R&D

Guidance refined

• Very good top-line growth expected
• Total Group revenues € 715-735 m (April 2022: € 700 – 710 m); 2021: € 618 m (€ 690-710 m at constant exchange rates1))
• Accelerated R&D investments for sustained growth
• Unpartnered Group R&D expenses of € 70-80 m2) (2021: € 58 m)
• At least stable adj. EBITDA investing in growth
• Adjusted Group EBITDA3) € 105-120 m (unchanged) (2021: € 107.3 m) (April 2022: € 95-110 m at constant exchange rates1)) (New: € 85-100 m at constant exchange rates1))

3) Excluding M&A related costs and before contingent considerations, income from bargain purchase & excl. impairments on goodwill, other intangible & tangible assets as well as the total non-operating result

¹⁾ EUR/US\$ 1.18; EUR/GBP 0.86

²⁾ 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").

Agenda

Highlights

Financial performance H1 2022

Scientific and operational performance H1 2022

ESG, Outlook and Guidance 2022

Strong growth & investments into capacity, R&D, SG&A and M&A

Condensed income statement H1 2022 – Evotec SE and subsidiaries

H1 2022	H1 2021	Change
336.9	271.3	24%
18.8%	20.8%	–
(36.8)	(35.4)	4%
(67.4)	(46.4)	45%
-	(0.7)	-
37.7	34.5	9%
(3.3)	8.3	nm
33.6	36.2	(7)%
(101.2)	112.7	nm

	Revenue growth 24%
	(19%, adjusted for fx-effects)

• Increasing share of unpartnered R&D (+20%)
• SG&A up 45% due to upscaling at all sites, US-listing, consulting fees (M&A, digitalisation), energy costs, higher amortisations/depreciations
• Decline of adj. EBITDA due to change in revenue mix, and shift in cost structure
• Net income with impact from fair value adjustment of EVOequity investment Exscientia

2) Before contingent considerations, income from bargain purchase and excl. impairments on goodwill, other intangible and tangible assets as well as the total non-operating result

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¹⁾ Differences may occur due to rounding

High value alliances yield strong gross margin; Just – Evotec Biologics in build-up phase

Revenues & Gross margin overview – Evotec SE and subsidiaries

Strong performance across all business lines

Segment information H1 2022 – Evotec SE and subsidiaries

in € m1)

	EVT Execute	EVT Innovate	Inter segment elimination	Evotec Group
Revenues	351.0	78.0	(92.1)	336.9
Gross margin	17.4%	12.4%	–	18.8%
 R&D expenses	(2.6)	(42.0)	7.8	(36.8)
 SG&A expenses	(54.1)	(13.3)	–	(67.4)
 Impairment of intangible assets and goodwill	–	–	–	–
 Other op. income (expenses), net	15.6	22.2	–	37.7
Operating result	20.1	(23.4)	–	(3.3)
Adjusted EBITDA2)	54.7	(21.1)	–	33.6

• Very strong growth versus H1 2021
• EVT Execute: 26% growth including intersegment revenues (+41%); 21% growth of external revenues driven by strong base business; Growth of external revenues, excluding Just – Evotec Biologics: +24%
• EVT Innovate: 36% growth in H1 2022 after 27% in Q1 2022 implies further improving demand for precision medicine platforms
• Adjusted Group EBITDA influenced by increased R&D investments, energy and material costs, M&A costs as part of higher SG&A costs

2) Before contingent considerations, income from bargain purchase and excl. impairments on goodwill, other intangible and tangible assets as well as the total non-operating result

¹⁾ Differences may occur due to rounding

Sequential growth acceleration yields margin improvement

Condensed income statement Q2 2022 – Evotec SE and subsidiaries

Q2 2022	Q2 2021
172.2	138.2
17.9%	18.5%
(18.7)	(17.0)
(35.8)	(25.2)
–	(0.7)
–	–
19.9	18.8
(3.8)	1.5
14.8	15.1
(27.9)	60.0

• Base revenues accelerated in Q2 versus Q1 2022 across all business lines suggesting robust demand and limited impact from changing funding environment
• R&D investments accelerated as planned
• SG&A reflects further dynamic growth, scaling and strategic projects
• Adj. EBITDA stable versus previous year level despite significantly higher energy costs and M&A
• EVOequity: Net Income impacted by non-cash fair value adjustment of Exscientia stake

2) Before contingent considerations, income from bargain purchase and excl. impairments on goodwill, other intangible and tangible assets as well as the total non-operating result

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¹⁾ Differences may occur due to rounding

Strong balance sheet supports accelerated growth

Balance sheet and liquidity – 31 Dec. 2021 vs. 30 June 20221) – Evotec SE and subsidiaries

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2) Versus 31 Dec 2021; incl. IFRS16 (3.8) (30 Jun 2022 vs (3,2) (31 Dec 2021)

¹⁾ Differences may occur due to rounding

Agenda

Highlights

Financial performance H1 2022

Scientific and operational performance H1 2022

ESG, Outlook and Guidance 2022

Platforms and technologies for more precision and efficiency

Evotec today – 16 Sites and more than 4,400 employees

Developing precise medicines with panomics & tech convergence

Overview

	platforms	R&D efficiency	Precision medi cine platforms	Right modality drug design	Just – Evotec Biologics
					Data-driven R&D Autobahn to Cures – combining all relevant parts for an integrated, end-to-end approach

New and extended alliances underline growth strategy

Highlights in H1 2022

Continued strong partnerships with precision medicine platforms

Overview in H1 2022

R&D efficiency platforms	Precision medi Right modality Just – Evotec cine platforms drug design Biologics
	Data-driven Autobahn to Cure Data-driven R&D Autobahn to Cures
	Ophtalmology; iPSC- and EVOpanOmics; Undisclosed upfront and milestone payments, layered royalties
	Neurodegeneration; iPSC and expansion on target protein degradation
	Target protein degradation / molecular glues; EVOpanOmics & EVOpanHunter; € 200 m upfront, up to € 5 bn deal value, tiered royalties
	Kidney diseases & diabetes; E.MPD; EVOpanOmics; Undisclosed upfront payment; Five programmes with milestone payments of up to US\$180 m per programme, tiered royalties
	Protein homeostasis; TargetAlloMod; up to € 210 m milestone payment per project, tiered royalties

E.MPD = Molecular patient database

Delivering health by expanding & improving cell therapy research

Overview H1 2022

Evotec Cell Accelerator takes cell therapy to the next level

EVOcells – World-class end-to-end infrastructure

• Cell therapies can deliver 'functional cures' to patients
• Evotec is a leader in producing iPSC derived cell types and organoids at highest quality and industrial scale
• Evotec (Modena) expands capacity with a dedicated cell therapy manufacturing site and skilled team of cell therapy experts
• Being able to produce large quantities of cGMP cell therapy material makes Evotec the ideal partner for integrated research & development of cell therapy approaches

Evotec Partner

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1) Clinical trials, Marketing and Distribution managed by partners

Building a iPSC-based cell therapy pipeline

Internal off-the-shelf cell therapy programmes

Field	Program / Project	Disease area	Exploratory	Pre-clinical research	Pre-clinical development	IND / Phase 1		iPSC-based cell types
Anti-tumour cell therapy	iNK	IO1)					iNK	Natural killer cells
	iM	IO					iT	αβ and γδ T cells
	γδ iT	IO					iM	Macrophages
	αβ iT	IO					iBeta	Pancreatic islets
Regenerative	Sernova Cell Pouch TM	Diabetes					iCM	Cardiomyocytes
therapy	iCM	Heart failure					iMSC	Mesenchymal
	iMSCs, iMSC exosomes	Various						stromal cells
Immune-modulation	iNK, iTreg	Anti-fibrotic, auto-immune

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1) Immuno-oncology

Shaping the value proposition to meet future demand

Just – Evotec Biologics development update

Continuous process outperforming fed batch 20x

Large scale production readiness is imminent

Fully end-to-end continuous process for late-stage products (> 25-day production)

Programmes of partners with increasing breadth and depth

Just – Evotec Biologics client programmes

Disease area	No. of programmes	Discovery	J.MD Optimization	Pre-clinical development	Clinical manufacturing	Commercial Manufacturing	Broad basis for sustained growth
	1						 > 15 partners / 18 programmes
Oncology	4						 Well balanced partner structure  Large / Mid-sized Pharma
Autoimmune	1						 Large / Small Biotech
Cardiovascular	2			Fi			 Foundations
CNS	1						 Continued emphasis on optimal value mix of
	1						 Fee for service
Infectious diseases	3						 EVOroyalty  EVOequity
	2						 Better access to affordable medicine
Other / undisclosed	ND1)						for all >50% of programmes addressing
	ND						targets set to reach UN SDG 32)

1) Not Disclosed

2) United Nations Sustainable Development Goal 3: Ensure healthy lives and promote well-being for all at all ages

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Strong growth of biologics business

New programme wins and sales orderbook value

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"Evotec Inside"

Steady stream of high-value catalysts

Selected pipeline events within next 12 – 24 months

• Phase III & registration (CHN) JingXin in insomnia (EVT201)
• Phase II data with Bayer in DNP (BAY2395840)
• Phase II initiation with Bayer in Gynaecology (BAY2395840)
• Phase I data in Chikungunya virus (EVT894)
• Phase I data with BMS in CNS (EVT8683)
• Phase I data with Kazia in Oncology (EVT801)
• Phase Ib / II initiation of Exscientia in Oncology (EXS21546)
• Phase I initiation in Covid-19 / HBV (EVT075)
• Phase I initiation with Bayer in Kidney diseases
• Phase I initiations with Kidney diseases with other partners
• Phase I initiation with BMS in CNS
• Phase I initiation with BMS in Oncology
• Multiple co-owned equity companies (not outlined here) will progress in clinic (e.g. Topas, Forge, Carrick, Fibrocor, …)

	Molecule	Therapeutic Area / Indication	Partner	Discovery	Pre-clinical	Phase I	Phase II	Phase III
	EVT201	Insomnia (GABA-A)
	Not Disclosed	Infectious Disease (Antibody)
	BAY2395840	Diabetic Neuropathic Pain (B1)
	CT7001	Oncology (CDK7)
	XP-105	Oncology (mTORC1/2)
	EVT401	Immunology & Inflammation (P2X7)
	BAY2328065	Gynaecology
	EXS21546	Oncology (various programmes)
Clinical	CNTX 6016	Pain (CB2)
	EVT894	Chikungunya (Antibody)
	Not Disclosed	Neuroscience & Pain	n.a.
	Not Disclosed	Neuroscience & Pain	n.a.
	EVT801	Oncology (VEGFR3)
	EVT8683	Neurodegeneration (eIF2b activator)
	TPM203	Pemphigus Vulgaris (ND)
	CT7001	Oncology (CDK7)
	CT7001	Oncology (CDK7)
	APN411	Oncology – Immunotherapy
	GLPGxxxx	Fibrosis (not disclosed)
	BAYxxxx	Nephrology (not disclosed)
	QRB001	Metabolic – Diabetes (not disclosed)
Pre-clinical	EVT075	Covid-19 / HBV	n.a.
	Not disclosed	Various programmes
	EVTxxxx	CNS, Metabolic, Pain, …	>10 further programmes

Discovery Multiple programmes across nephrology, oncology, immunology among other therapeutic areas

EVOequity accelerates co-owning strategy

Operational VC model – diversified portfolio with multiple shots on goal

https://actionplan.evotec.com/evoequity

Agenda

Highlights

Financial performance H1 2022

Scientific and operational performance H1 2022

ESG, Outlook and Guidance 2022

Keeping the promise

ESG & Sustainability – Measures taken in H1 2022

Environment

• Starting final phase of SBTi alignment project: Scope 3 emission assessment
• Installation of first air source heat pump (Building B95 in Abingdon)
• Social
• Expansion of investments in disease areas under UN SDG3
• Launch of Aurobac Therapeutics, JV with Boehringer Ingelheim and bioMérieux; Targeting Antimicrobial Resistance ("AMR") with next generation antimicrobials and diagnostics
• Diversity Month and Pride Month; Joined Proud Science Alliance; Evotec @ London Pride
• Governance
• Governance roadshow of Chairwoman of Supervisory Board
• Formation of ESG Committee within the Supervisory Board
• Implementation of Supplier Code of Conduct

Guidance refinement – On track towards reaching AP 2025 goal

Guidance 2022

	Guidance 2022	YE 2021	Implied growth at midpoint
Group revenues (H1 2022) Group revenues (FY 2021 call) (at constant fx-rates1))	€ 715 – 735 m € 700 – 720 m (€ 690 – 710 m)	€ 618 m	>15% ~15%
Unpartnered R&D2)	€ 70 – 80 m	€ 58 m	~30%
Adjusted EBITDA3) (at constant fx-rates3); H1 2022) (at constant fx-rates3); FY 2021 call)	€ 105 – 120 m (€ 85 – 100 m) (€ 95 – 110 m)	€ 107 m	At least stable

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2) No material FX effects as most R&D efforts are carried out in € area

3) Excluding M&A related costs and before contingent considerations, income from bargain purchase & excl. impairments on goodwill, other intangible & tangible assets as well as the total non-operating result

¹⁾ EUR/US\$ 1.18; EUR/GBP 0.86

Our mid-term aspirations are "… just the beginning"

2020-2025e Key Performance Indicator goals

1) Before significant royalties 2) Incl. Equity participations

Setting the pace to accelerate growth along Action Plan 2025

Next key events to watch

R&D efficiency platforms	 Continued >15% growth of base business (EVOiR&D)  Significant capacity and value chain expansion for all modalities and sites
Precision medicine platforms	 New partnerships, important milestones  Multiple clinical trial initiations and progression of co-owned pipeline; (EVOroyalty)  Spin-Offs and investments along AP 2025 (EVOequity)
Just – Evotec Biologics	 Start of production J.POD® Redmond, WA (US);  Groundbreaking for J.POD® Toulouse, France (EU)  Multiple new partnerships (EVOaccess)

Looking forward to seeing you in person

Financial calendar 2022

Quarterly Statement Q1 2022	11 May 2022
Virtual Annual General Meeting 2022	22 June 2022
Half-year 2022 Interim Report	11 August 2022
Capital Markets Day in Seattle / Redmond	02 November 2022
Quarterly Statement 9M 2022	09 November 2022

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Your contact:

Volker Braun Head of Global Investor Relations & ESG

+49.(0).40.560 81-775 +49.(0).40.560 81-333 Fax volker.braun@evotec.com