Evotec SE — Investor Presentation 2014

Mar 25, 2014

Building innovative drug discovery alliances

Evo 04 tec 2014 –Execute on Innovate

Forward-looking s statements

Information set forth in this pres number of risks and uncertainties judgement of Evotec as of the d neither promises nor guarantees, which are beyond our control, and cont ltd emp atedin these f d orwar -l undertaking to release publicly ^a change in our expectations or an such statement is based.sentation contains forward-looking statements, which involve ^a The forward forward-looking lookingstatements contained herein represent the date of this presentation. Such forward-looking statements are , but are subject to ^a variety of risks and uncertainties, many of d which could cause actual results to differ materially from those l ki oo ng stt t ^a ements. We expressly di l i sc ^{a m} any obli ti ga on or any updates or revisions to any such statements to reflect any ny change in events, conditions or circumstances on which any

Welcome to Evoteec!

Your management team

Agenda

Highlights 2013

Evotec 2014 – Update on Action Plan 2016

Financial performance 201 13

Outlook 2014

Executing on inno Action Plan 2016, ovation strategy towards solid start into 2014

State of play, March 2014

Hig g hli hts

• New alliances and extended collaborations with GenentechBiotech, Dow AgroSciences, Jain Foundation and The Leuk Lymphoma Society , Active kemia &
• Five milestones achieved within Boehringer Ingelheim allian achieved milestones with UCBnce and firstIndia
• New compound management facility in Branford, US, led to contracts with new clientso new
• T t arge AD (Al h i ' di ) lli ith J&J I ti (Alzheimer's disease) alliance with Innovation
• Integrated alliance in kidney diseases with AstraZeneca
• Even broader Cure X and Target X portfolio with Apeiron (TargetImmuniT1) ( g ), Belfer Institute ( g Tar etKDM), Harvard Un TargetEEM, CureMN and TargetPGB and Yale (TargetDBR) nniversity with
• Strategic financing of € 30 m with Biotechnology Value Fund d ("BVF")
• Acquisition of Bionamics (after period-end)

Lowlights g

• Impairments and one-time restructuring expenses in 2013 mainly due to:
• Closure of Chemistry operations in
• Loss of significant milestone payment for EVT100 series

Strongest financia al position in 20 years history

Highlights 2013

Strong liquidity position strengthens flexibilit ty for innovation investments

• Total Group revenues of € 85.9 m (2012: € 87.3 m)
• Positive adjusted operating result at € 1.2 m (2012: € 1.4 m)1 1)
• Group EBITDA ⁺ +37% to € 12 9 ^m .
• Significant one-time impairments led to operating loss of € 21.4 m; net loss of € 25.4 m
• Operating cash flow continued to be positive at € 6.7 m (201 2: € 12.0 m)
• Strongest liquidity position of € 96.1 m in Company's history
• Focused investments in first-in-class discovery research and d academic alliances: R&D expenses of € 9.7 m

Guidance 2014 – Trying to reduce the "unpred dictable", but milestones will stay critical

• Revenues: high single-digit percentage growth – excluding m milestones, upfronts and licences
• P iti EBITDA t i il l l t 20132) Positive EBITDA at a similar level to
• R&D expenses between € 10 m to € 14 m

• Liquidity is expected to exceed € 90 m at the end of 20143)

• 2) Before changes in contingent considerations

• 3) Excluding potential M&A activities

⁵ 1) Operating result excl. impairments and reversal of impa airments and changes in contingent considerations

Agenda

Highlights 2013

Evotec 2014 – Update on n Action Plan 2016

Financial performance 201 13

Outlook 2014

Accelerated markesupport long-term et dy gy namics in drug discovery strategy

Market dynamics – Forces s at work

Introducing segme ents for even better clarity

ONE company – TWO seg gments

EVT Execute"Low risk Low risk, service business"

"High risk – high reward innovation business"

EVT Exe ecute

• • Strict fee for service, highest quality offering
• • Platfoorm selling with low risk
• • Selecctively milestone and royalty derived projects

EVT Innnovate (Cure X/Target X)

• • First-i Todays n-class investments within core competences
• • Early partnering strategy
• • Perfor EVT Innovatemilestrmance-based alliances with upfronts upfronts, tones and product royalties

Broad stand-alonee innovation services

EVT Execute

Highlights 2013:

• • Improved gross margins and profit bilit fitability
• •Increased focus on
• • Expanded footprint with services closer t tto our customers, e.g. US East Coast
• •integration of CCS2)

Growth driven by technology upgrad long-term alliances and de strategy

EVT Execute strategy 2014 4

Expansion of existing P Pharma alliances

• New long-term alliance es with big and mid-sized Pharma and biotech
• New integrated alliance US East Coast start-up es with EU biotech and especially ps

Expansion of technolog gy/disease portfolio offering

Systematic, unbias building sed and comp pp rehensive pipeline

Cure X and Target X initia atives

Highlights 2013:

• Strong progress of partnered "risk-free" clinical stage pi li pe ne
• Expansion of pipeline through in-house R&D and in house academic research collaborations

Significant produc

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1) RO4602522

2) Currently under evaluation

Key competence i n new mechanisms in metabolics

Diabetes and diabetic commplications – 2013 progress

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Despite set-back i n EVT100, multiple options in CNS

Neurology pipeline overvi ew – 2013 progress

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Increasingly stron g franchise in pain

Pain & inflammation pipel line overview – 2013 progress

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Long-term vision i in novel fields of oncology

Oncology pipeline overvie w – 2013 progress

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First-in-class netwpartnerships work for even strong p erortfolio of

EVT Innovate strategy 201 14

• • Expansion of network k of top-class academic alliances
• • Accelerated investmeinitiativesents in existing and new Cure X/Target X
• • Progress of clinical pi peline within partnerships

• Partnering of at least one Cure X/Target X initiative

Agenda

Highlights 2013

Evotec 2014 – Update on Action Plan 2016

Financial performance 2 2013

Outlook 2014

In-line with adjuste ed guidance

Results and guidance histo ory 2013

i € n m
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R e e n e s v u	5 8 9	8 4 8 6 -	9 0 1 0 0 -
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L i i d i d t t q a e a r- e n u y y	9 6 1	2 ) 9 0 >	6 0 >

EBITDA significan One-time impact fr ntly p im roved over 2012 – rom impairments in 2013

Key financials FY 2013: Co ondensed profit & loss statement (IFRS)

At constant 2012 FX

increase to € 87.7 m

in € m

	2 0 1 2 A l t c a u	2 0 1 3 A A l l t t c a u	% % 2 0 1 2 s v	A F X 2 0 1 2 t t t c o n s a n  t r a e r e e n e v u
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N i ( l ) t e n c o m e o s s	2 5 +	( 2 5 4 )

Higp y hrofitability in investment in Curen EVT Execute, increased e Xand Target X in EVT Innovate

Condensed income statemment based on segments for 2013

in € m

	E V T E t e c e x u	E V V T I t n n o o a e v	I t n e r t s e g m e n l i i i t e m n a o n	E t o e c v G r o p u	T h i d t r p a r y r e v e n u e s  f € i l d 6 2 7 o m n c u e s € i l 1 4 3 t m m e s o n e s
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S G & A e p e n s e s x 	1 2 6	4 0	-	1 6 6	d T X t a n a r g g e
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) 1 E B I T D A	1 9 7	( ) 6 8	-	1 2 9

• of € 76.2 m includes € 14.3 m milestones and licence income within EVT Execute 36.3% Increased investment in Cure X
• and Target X g initiatives within EVT Innovate
• Strong EBITDA of EVT E t f Execute of€ 19.7 m at high gross margin

Shortfall in milestoincrease despite lo ones versus p g lan, but margin ower share of milestones

Key milestones and upfron nts

Investment focus ocosts under controon Cure X and Target X initiatives, ol

R&D expenditure and SG& &Aoverview

in € m

SG&A containment from 2011-2013 despite significant growth

16 3

2012

Decrease in opera impairments, adju ating result due to one-time sted operating result positive

Operating result trend

Capital increase h balance sheetad a maj p or im act on Evotec's

Balance sheet overview

in € m

Q4 2013 with highe impact from impai est revenues in 2 y g ears, negative rments

Q4 2013 results

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

Agenda

Highlights 2013

Evotec 2014 – Update on Action Plan 2016

Financial performance 201 13

Outlook 2014

Good revenue gro performance in 20 owth and improved financial 014 expected

Guidance 2014: Organic g rowth, higher profitability, more innovation

1	R e e n e s v u	H i h i i l l d i i h l d i i i l l f d t t t t t t g s s n n g g e e g p e r c e n n a g e g r o e c n g m m e e s s o o n n e e s s p r o n s a n w x u u  - , l i c e n c e s O i h i h l i l i f i l f t t t t t t n g o n g g o a o m e s o n e s r o m q a r e r o q a r e r v y u u 
2	I d m p r o e v f i b i l i t t p r o a y	1 ) P i i E B I T D A b f h i i i d i t t t t t o s e e o o r e c a n g e s n c o n n g e n c o n s e r a o n s a a v  i i l l l 2 0 1 3 t s m a r e e o v ) 2 f P i i i h h l t t o s v e o p e r a n g c a s o w  L i i d i i d d € h d f 9 0 2 0 1 4 t t t t t q s e p e c e o o e c e e m a e e n o u y x x 
3	R & D i t t n v e s m e n s	f C I € 1 0 € 1 4 i l i h i X t t t t t n e s m e n s o a p p r o m m a n n e s r a e g c r e v x y u  - d T X i i i i t t t a n a r g e n a v e s s C i d b i l i b i l d i i d i h € € t t t t 5 7 a p a c a n c a p a n g c o n n e a p p r o m y y y u u w x  -

²⁸ 1) EBITDA is defined as earnings before interest, taxes, depreciation, and non-operating result d amortisation of intangibles. EBITDA excludes impairments on intangible and tangible assets as well as the total

Self sustainable annd driving first-in-class innovation

Key metrics for 2013 and t trends for 2014

Growth driven by high-quality services and alliances

EVT key events 2014

Key milestones for EVT Execute & EVT Innovat te in 2014

• Expansion of existing alliances
• New long-term deals with big and mid-si zed Pharma and biotech
• At least 1 new integrated technology/dis ease alliance
• Expansion of network of top-class acade emic alliances
• Increased investments in existing Cure CureX /Target X initiatives
• Significant progress of clinical pipeline w (at least 2 clinical starts in 2014) within partnerships
• Partnering of at least one Cure X/Target Xinitiative

Reporting dates s 2014

• • 3M/Q1 Interim Report 14 May yeust
• •AGM in Hamburg 17 June June
• •6M/Q2 Interim Report 12 Augu
• • 9M/Q3 Interim Report 12 Nove
• ember

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