Evotec SE — Investor Presentation 2016

May 10, 2016

EVT Execute & EVT Innovate Profitable growth & First-in-class science

Forward-looking statements

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.

Agenda

Highlights Q1 2016

EVT Execute

EVT Innovate

Financial performance and outlook

Strong start into the year

Highlights & lowlights Q1 2016

EVT Execute

• Accelerated 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 scientia

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

Best first quarter in Company's history

Financial highlights Q1 2016 & Guidance 2016

Improved financial performance

• Group revenues up 74% to € 37.5 m (2015: € 21.5 m)
• EVT Execute revenues up 67%
• EVT Innovate revenues up 67%
• Strong adjusted Group EBITDA1) at € 7.2 m
• Strong adjusted EBITDA1) of € 9.6 m for EVT Execute
• Increased R&D expenses +14% to € 4.4 m
• Strong liquidity position of € 122.5 m

Confirmed Guidance 2016

• More than 15% revenue growth excluding milestones, upfronts and licences
• Adjusted Group EBITDA positive2) and significantly improved compared to prior year
• R&D expenses of approx. € 20 m
• Similar level of liquidity3) compared to 2015
• Capex investments up to € 10 m

¹⁾ Adjusted for changes in contingent consideration

²⁾ Before contingent considerations and excluding impairments on other intangible and tangible assets and goodwill as well as the total non-operating result 3) Excluding any potential cash outflow for M&A or similar transactions

Business model works

EVT Execute & EVT Innovate

Agenda

Highlights Q1 2016

EVT Execute

EVT Innovate

Financial performance and outlook

Accelerated growth in base business

EVT Execute – First quarter of 2016

• 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)
• Good progress in existing collaborations

Above market performance

EVT Execute – Key performance indicators Q1 2016

Well balanced customer mix

EVT Execute – Selected customer and revenue metrics

New strategic compound management alliances

EVT Execute – World leader in outsourced compound management

• Multi-year compound management agreement with Pierre Fabre Laboratories, the 2nd largest private French pharmaceutical group (2016, after period-end)
• Multi-year sample management agreement with UCB (end of 2015)
• Management of Sanofi's global screening compound library (2015)
• Multi-year contract to manage U.S. National Cancer Institute Chemical Biology Consortium Screening Libraries Center (2015)
• Ten-year compound management agreement with the National Institutes of Health (NIH) (2012)

Outlook 2016

EVT Execute – Expected key milestones 2016

• New long-term deals with large and mid-sized Pharma
• Expansion of foundations and biotech network in USA/EU
• New performance-based integrated technology/disease alliance
• Milestones from existing alliances

Agenda

Highlights Q1 2016

EVT Execute

EVT Innovate

Financial performance and outlook

First-in-class Cure X/Target X strategy

EVT Innovate – First quarter of 2016

• 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 scientia

Strong revenue growth reflects new partnerships

EVT Innovate – Key performance indicators Q1 2016

• 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)

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¹⁾ Adjusted for changes in contingent considerations

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

Constantly growing pipeline of product opportunities

EVT Innovate – Partnership portfolio

	Molecule	Therapeutic Area/Indication	Partner	Discovery	Pre-clinical	Phase I	Phase II	Phase III
	EVT3021)	CNS – Alzheimer's disease
al c ni Cli	EVT201	CNS – Insomnia
	EVT1001)	CNS – Depression
	EVT401	Immunology & Inflammation
	ND2)	Oncology
	ND2)	Oncology
	ND2)	CNS – Pain
	ND2)	Oncology
al	Various	Women's health – Endometriosis
c ni	EVT770	Metabolic – Diabetes (type 2/1)
cli	ND2)	Respiratory
e-	ND2)	Immunology & Inflammation
Pr	EVT801	Oncology
	EVT701	Oncology
	EVT601	Oncology
	Various	Immunology & Inflammation
	Various	Metabolic – Diabetes (type 2/1)
	Various	Metabolic – Diabetes (type 2/1)
	Various	Nephrology
y	Various	Metabolic – Diabetes
er v	Various	CNS – Alzheimer's
o c	Various	Oncology – Immunotherapy
s	Various	Immunology & Inflammation – Tissue fibrosis
Di	Various	CNS – Multiple Sclerosis	NEU2
	Various	Metabolic – Diabetes	>5 further programmes
	Various	CNS	>5 further programmes
	Various	Oncology	>10 further programmes
	Various	CNS – Pain & Inflammation	>5 further programmes

1) EVT302 and EVT100: Evotec has regained the licence rights and is currently assessing potential business opportunities 2) Not disclosed

Important data points within oncology portfolio

EVT Innovate – Oncology portfolio

	Project	Hit finding/ Target ID	Hit-to-Lead	Lead optimisation	Pre-clinical development	Phase I
Advanced	EVT7011)
projects	EVT8012)
	EVT6013)
Early	Immunotherapy 3
projects	Microenvironment 1
	Microenvironment 2
	TargetImmuniT
	TargetKDM
	TargetDBR
	Cancer Metabolism 2
	Cancer Metabolism 3
	Growth Factor 3
	Microenvironment 3

Targeted therapy	Metabolism	Immunotherapy	Microenvironment
PAGE 16	1) Cancer Metabolism 2) Immunotherapy 3) Targeted Therapy

More than 10 projects primed for partnering

EVT Innovate – Cure X/Target X

2011	2012	2013	2014	2015	2016
CureBeta (Harvard Stem Cell Institute)	CureNephron (Harvard, BWH, USC, AstraZeneca) TargetASIC (BMBF/undisclosed Pharma partner) Somatoprim (Cortendo) TargetPicV (Haplogen) TargetFibrosis (Pfizer)	TargetImmuniT (Apeiron/Sanofi) TargetDBR (Yale) TargetMB (Second Genome) TargetPGB (Harvard) TargetKDM (Dana-Farber, Belfer) TargetIDX (Debiopharm) CureMN (Harvard) TargetEEM (Harvard) TargetAD (NBB/J&J)	TargetBCD (Sanofi) TargetDR (Internal) TargetATD (Internal) TargetFX (Internal) TargetKX (undisclosed) TargetCytokine (DRFZ/BMBF) Various (Fraunhofer Institute)	TargetFRX (Internal) TargetNTR (Internal) TargetKras (OSU) Various (Gladstone Institute) …	TargetaSN (MJJF) TargetBispecifics (ex scientia) TargetRhoB (undisclosed) …

Driving value of hidden assets – First-in-class approach for tolerance induction

Topas Therapeutics: An Evotec spin-off company

• Topas Therapeutics GmbH is focused on the development of novel tolerizing particles for immune-mediated diseases using proprietary NdL® nanotechnology platform
• Use of nanoparticles to deliver selected antigenic peptides to the liver (Topas = Tolerizing particles)
• € 14 m Series A funding secured with VC consortium
• Pre-clinical development for multiple sclerosis has been initiated; Phase I to start in 2017; strong pipeline
• Evotec will remain the largest shareholder Bionamics

Outlook 2016

EVT Innovate – Expected key milestones 2016

• New clinical initiations and good progress of clinical pipeline within partnerships
• Expansion of network of top-class academic alliances

Partnering of Cure X/Target X initiatives

Strong focus on iPSC (induced pluripotent stem cells) platform

Agenda

Highlights Q1 2016

EVT Execute

EVT Innovate

Financial performance and outlook

Group revenues +74%, higher gross margin

Key financials Q1 2016: Condensed income statement (IFRS)

in € m

	Q1 2015	Q1 2016	% vs. 2015
Revenues	21.5	37.5	74%
Gross margin	28.0%	33.3%	–
 R&D expenses	(3.8)	(4.4)	14%
 SG&A expenses	(5.1)	(5.4)	5%
 Impairment of intangible assets	–	(1.4)	–
 Other op. income (expenses), net	(0.4)	1.4	–
Operating income (loss)	(3.3)	2.7	–
EBITDA adjusted1)	(0.3)	7.2
Net loss	(1.1)	(1.2)	9%

• 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

Strong revenue growth in EVT Execute and increased investments in EVT Innovate

Condensed segment information for Q1 2016

in € m

	EVT Execute	EVT Innovate	Inter segment elimination	Evotec Group
External revenues	31.1	6.4	–	37.5
Intersegment revenues	7.5	–	(7.5)	–
Gross margin	26.1%	46.1%		33.3%
 R&D expenses	(0.1)	(4.8)	0.5	(4.4)
 SG&A expenses	(4.4)	(1.0)	–	(5.4)
 Impairment of intangible assets	–	(1.4)	–	(1.4)
 Other op. income (expenses), net	1.1	0.3	–	1.4
Operating income (loss)	6.8	(4.0)	–	2.7
EBITDA adjusted1)	9.6	(2.4)		7.2

• Strong revenue growth and improved EBITDA for both segments
• Increased investments in Cure X/Target X initiatives and oncology projects in Toulouse in-line with expectations and strategy plans
• Impairment of EVT100 series

Strong performance of base business

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

1) Sanofi contributed revenues of € 12.6 m. Excluding the Sanofi contribution, Evotec Group revenues increased by 16% compared to the prior-year period.

Clear strategy for both segments

Segment overview – Q1 2016 versus prior-year period

Thank you Colin! – Welcome Monika and Enno!

Management Board update & Strengthening of Global HR capacities

Long-term extension of Management Board contracts

• Extension of the contract of Dr Werner Lanthaler as CEO for another five years to 2021
• Extension of the contract of Dr Mario Polywka as COO for a further three years to 2019
• Extension of the contract of Dr Cord Dohrmann as CSO for a further three years to 2019

New CFO

• Enno Spillner appointed as new CFO, effective 18 July 2016
• Previously Chairman of the Management Board and CEO/CFO of 4SC AG since April 2013

New Global Head of Human Resources

• Monika Conradt appointed as new Global Head of Human Resources, effective 01 June 2016
• Formerly HR Manager Europe, Boehringer Ingelheim

Long-term Management commitment, New shareholders, Exit of last VC

Management & shareholder structure

Number of shares: 132.6 m Listing: Frankfurt Stock Exchange (TecDAX), OTCBB 52 week high/low: € 4.31/€ 2.86

Management Board

• Werner Lanthaler (CEO) Long-time experience in Pharma & biotech
• Mario Polywka (COO) Strong operational and commercial management track record
• Cord Dohrmann (CSO) Outstanding background in metabolics
• Enno Spillner (CFO) – as of 18 July Long-time experience in finance & biotech

Supervisory Board

• Wolfgang Plischke Ex-Bayer
• Bernd Hirsch Bertelsmann SE & Co. KGaA
• Claus Braestrup Ex-Lundbeck
• Paul Herrling Ex-Novartis
• Iris Löw-Friedrich UCB

• Elaine Sullivan Carrick Therapeutics

• 1) Deutsche Asset Management Investment GmbH 2) Allianz Global Investors GmbH

• 3) BVF Partners L.P. and its affiliates

Strong revenue growth and accelerated innovation

Guidance 2016 confirmed

1	Double digit top line growth	 More than 15% Group revenue growth excluding milestones, upfronts and licences
2	Profitable and strong liquidity position	Adjusted Group EBITDA1)  positive and significantly improved compared to 2015 Liquidity is expected to be at a similar level to the prior year2) 
3	Focussed first-in-class investments	 R&D expenses of approx. € 20 m especially in the fields of oncology, metabolic disease franchises and in iPS cell initiatives  Continued capacity and capability building with approx. € 10 m

¹⁾ Before contingent considerations and excluding impairments on goodwill, other intangible and tangible assets as well as the total non-operating result 2) Excluding any potential cash outflow for M&A or similar transactions