Evotec SE — Investor Presentation 2018

May 9, 2018

Good start for external innovation with new business mix

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:

The 2017 and 2018 results are not fully comparable. The difference stems from the acquisition of Aptuit, effective 11 August 2017. The results from Aptuit are only included from 11 August 2017 onwards. The accounting policies used to the prepare the interim information are the same as those used to prepare the audited consolidated financial statements for the year ended 31 December 2017.

From 01 January 2018 onwards, Evotec applies IFRS 15 in the financial year 2018. The comparison period in 2017 is also presented according to IFRS 15 in the quarterly statement, affecting data in the consolidated interim statement of financial positions as well as in the consolidated interim income statement.

Welcome to Q1

Your Management Team

Agenda

Highlights Q1

EVT Execute

EVT Innovate

Financial performance and outlook

Good start into 2018 – Strong FY outlook confirmed

First three months 2018 – State of play

EVT Execute

• Significant progress within ongoing alliances
• Launch of INDiGO solution to accelerate drug candidate delivery and first alliances established
• New and extended integrated drug discovery and development agreements

EVT Innovate

• Alliance with Sanofi to accelerate infectious disease R&D1)
• Continued focus on iPSC platform and patient-centric approaches
• BRIDGE model gaining momentum

Corporate

• Aptuit integration according to plan
• Preparation to convert into European Company (SE)
• Action Plan 2022 "Leading External Innovation" in place
• Strong outlook "3x30" for 2018 confirmed

¹⁾ Exclusive negotiations announced on 08 March 2018; Subject to finalization of definitive agreements and completion of the appropriate social process (expected in H1 2018)

Strong performance in base business with new business mix after Aptuit acquisition

Financial highlights Q1 2018 & FY Guidance

Good start; milestones not in so far

• Group revenues up 55% to € 79.0 m (Q1 2017: € 50.9 m)
• EVT Execute revenues of € 78.5 m
• EVT Innovate revenues of € 10.4 m
• Adjusted Group EBITDA1) at € 14.0 m (Q1 2017: € 13.4 m)
• Adj. EBITDA of € 17.2 m for EVT Execute
• Adj. EBITDA for € (3.2) m for EVT Innovate
• R&D expenses of € 4.6 m
• Solid liquidity position of € 78.5 m

"3x30" – Confirmed guidance 2018

• More than 30% Group revenue growth (2017: € 257.6 m)
• Adjusted Group EBITDA to improve by approx. 30% compared to 2017 (2017: € 58.0 m)
• R&D expenses of € 20-30 m (2017: € 17.6 m)

¹⁾ Before contingent considerations, income from bargain purchase and excluding impairments on goodwill, other intangible and tangible assets as well as the total non-operating result

Leading external innovation

"Action Plan 2022 – Leading External Innovation"

Agenda

Highlights Q1

EVT Execute

EVT Innovate

Financial performance and outlook

ONE platform for external innovation

Unique business model – EVT Execute & EVT Innovate

Strong organic and inorganic growth in EVT Execute

EVT Execute – Key performance indicators Q1 2018

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

2) Not adjusted according to IFRS 15

3) 2017 data adjusted according to IFRS 15

Healthy, slightly altered customer base following Aptuit acquisition

EVT Execute – Selected KPIs Q1 2018

High quality and efficiency in R&D

EVT Execute – Major achievements Q1 2018

• Significant progress within ongoing alliances (e.g. start of third clinical Phase I study in endometriosis with Bayer (after period-end))
• Launch of INDiGO solution to accelerate drug candidate delivery; first alliances established (e.g. Petra Pharma and Japanese company Carna Biosciences (after period-end))
• New and extended integrated drug discovery and development agreements
• Expansion of CRISPR-based technology offering with licence from ERS Genomics (after period-end)

Industry-leading effort in endometriosis

Clinical stage pipeline and more to come

Multi-target alliance with Bayer in Endometriosis/Pain

• Painful, debilitating reproductive condition affecting approximately 176 million women worldwide
• Focus on non-hormonal treatments in endometriosis
• Goal: Output-driven resourcing to discover three clinical candidates within the five-year alliance and sharing the responsibility for early research and preclinical characterisation of potential clinical candidates
• Outcome: Six first-in-class/best-in-class pre-clinical candidates, three of which have now advanced into clinical trials
• Commercials: € 12 m upfront, potential milestones > € 500 m, double-digit royalties

"One stop partner" for external innovation

Evotec's integrated offering and core competences along the value chain

Evotec offers end-to-end platform solutions including and high-end CMC manufacturing

Integration of Aptuit progressing as planned

Initial achievements & status quo

Summary of transaction and post-merger integration

• Acquisition effective on 11 August 2017, approx. 750 employees across 3 sites
• One-time direct transaction costs of € 3.3 m (in 2017)
• Initial integration steps effectively completed
• Aptuit continues to operate and serve its client base in all segments

Launch of INDiGO services in Q1 2018

• Reducing time from nomination to regulatory submission to less than 52 weeks1)
• Very good initial customer feedback
• Start of first collaborations with INDiGO in early Q2 2018 (e.g. Petra Pharma and Japanese company Carna Biosciences)

Clear targets, strong outlook for 2018

EVT Execute – Expected key milestones 2018

New long-term alliances integrating the offering of Aptuit, strategic launch of INDiGO

New performance-based integrated technology/disease alliances

Expansion of foundations and biotech network in USA/Europe

Milestones from existing alliances

Agenda

Highlights Q1

EVT Execute

EVT Innovate

Financial performance and outlook

Continued focus on accelerating EVT Innovate

EVT Innovate – Key performance indicators Q1 2018

• Revenues in Q1 2018 with lower milestone contribution
• Adjusted EBITDA in Q1 2017 affected by milestone achievements (€ 4.5 m)
• R&D expenses in Q1 2018 with a focus on CNS, metabolic disease, oncology and academic BRIDGE initiatives

PAGE 17

• 1) Before contingent considerations, income from bargain purchase and excl. impairments on goodwill, other intangible & tangible assets as well as the total non-operating result
• 2) Not adjusted according to IFRS 15
• 3) 2017 data adjusted according to IFRS 15

Fully invested > 80 co-owned pipeline programmes

Partnership portfolio

	Molecule	Therapeutic Area/Indication	Partner	Discovery	Pre-clinical	Phase I	Phase II
	EVT201	CNS – Insomnia
	EVT401	Immunology & Inflammation
	ND1)	Oncology
	ND1)	Oncology
al c ni Cli	Various	Women's health – Endometriosis
	Various	Women's health – Endometriosis
	Various	Women's health – Endometriosis					NEW- Clinical start
	ND1)	Immunology & Inflammation
	Various	Oncology
	ND1)	Chronic cough
	ND1)	Respiratory
	ND1)	CNS – Pain
	ND1)	Immunology & Inflammation
al c	ND1)	Oncology
	ND1)	Respiratory
ni	Various	Women's health – Endometriosis
cli	EVT801	Oncology
e-	EVT701	Oncology
Pr	EVT601	Oncology
	Various ND1)	Oncology – Immunotherapy
	Various	CNS, Metabolic, Pain & Inflammation	>10 further programmes
	Various ND1)	Nephrology
	Various ND1)	Immunology & Inflammation
	Various ND1)	Metabolic – Diabetes (type 2/1)
	Various ND1)	Metabolic – Diabetes (type 2/1)
y	Various ND1)	Nephrology
er	Various ND1)	Metabolic – Diabetes
v o	Various	Immunology & Inflammation – Tissue fibrosis
c	Various	Neurodegeneration
s	LpxC inhibitor	Anti-bacterial
Di	Various	All indications
	INDY inhibitor	Metabolic
	Various	Fibrotic disease	Fibrocor Therapeutics
	Various	Antiviral
	Various	Internal: Oncology, CNS, Metabolic, Pain & Inflammation	>30 further programmes

18 1) Not disclosed

Note: Several projects have fallen back to Evotec, where Evotec does not intend to run further clinical trials unpartnered, e.g. EVT302, EVT101, …

Focus on accelerating innovation

EVT Innovate – Major achievements Q1 2018

Global leadership in iPSC

Strong focus on iPSC1) platform

One big effort for the benefit of many

Sanofi & Evotec – Transaction expected to close in H1 2018

Pipeline-building collaboration in infectious diseases (ID)

Strong and diverse portfolio of > 10 research and early-stage development projects licensed from Sanofi to Evotec (EVT Innovate) – Sanofi will retain option rights on development, manufacturing and commercialisation of certain products

World-leading expertise and platforms in ID coming together

Transfer of > 100 industry-leading ID disease experts to Evotec in Lyon. Together with existing capabilities in Alderley Park, UK, Toulouse, France, and Verona, Italy, Evotec will have more than 150 scientists active in ID R&D.

Pioneering open innovation

Expanding academic and public funding network, to create the open innovation platform for Pharma, biotech, academic institutions, foundations and NGOs in the fight against the worldwide spread of drug resistance and infectious diseases

Strong focus on BRIDGE initiatives in Q1 2018

LAB282 and LAB150 – Key parameters and status quo

More to come in EVT Innovate

EVT Innovate – Expected key milestones 2018

• New clinical initiations and good progress of clinical pipeline within existing partnerships
• Expansion of academic BRIDGE network
• Strong R&D progress within Cure X/Target X platforms and new EVT Innovate partnerships
• Strong expansion of iPSC (induced pluripotent stem cells) platform

Agenda

Highlights Q1

EVT Execute

EVT Innovate

Financial performance and outlook

Good performance with new business mix, milestones still missing in Q1 2018

Condensed income statement Q1 2018 – Evotec AG and subsidiaries

in € m1)
----------	--

	Q1 2018	Q1 20174)	% vs. 2017
Revenues	79.0	50.9	55%
Gross margin2)	23.4%	37.3%	–
 R&D expenses	(4.6)	(4.7)	(1)%
 SG&A expenses	(13.3)	(7.3)	82%
 Other op. income (expenses), net	6.0	2.9	106%
Operating income	6.5	9.9	(34)%
Adjusted Group EBITDA3)	14.0	13.4	4%
Net income	3.5	7.1	(51)%

• Group revenue growth mainly due to good performance in the base business and contribution from Aptuit (€ 25.3 m)
• Group revenues in Q1 2017 affected by higher milestone revenues
• New business mix and amortisation following acquisitions (€ 3.0 m) resulting in new gross margin setup
• SG&A increased as expected due to addition of Aptuit and increased headcount resulting from Company growth
• Other operating income increased due to higher R&D tax credits in France and Italy

1) Differences may occur due to rounding

2) Gross margin in 2018 considers amortisation of acquisitions from Aptuit and Cyprotex

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

4) 2017 data adjusted according to IFRS 15

EVT Execute expanded, EVT Innovate on strategy

Segment information Q1 2018 – Evotec AG and subsidiaries

in € m1)

	EVT Execute	EVT Innovate	Inter segment elimination	Evotec Group
Revenues	78.5	10.4	(9.9)	79.0
Gross margin	20.8%	31.1%		23.4%
 R&D expenses	(0.1)	(5.6)	1.1	(4.6)
 SG&A expenses	(11.5)	(1.8)	–	(13.3)
 Other op. income (expenses), net	5.3	0.7	–	6.0
Operating income	10.0	(3.5)	–	6.5
Adjusted EBITDA2)	17.2	(3.2)		14.0

• Revenue growth in EVT Execute driven by performance in the base business and contribution from acquisition
• Gross margin decrease due to new business mix, amortisation (EVT Execute only), adverse FX effects and timing of milestones
• Higher R&D tax credits affecting other operating income in Q1 2018
• Significantly improved EBITDA for EVT Execute (Q1 2017: € 12.4 m)

²⁶ 1) Differences may occur due to rounding

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

Good underlying operational performance, contribution of Aptuit reflects new business mix

Revenues & Gross margin overview

• Revenue growth due to strong performance in the base business and positive contribution from Aptuit (€ 25.3 m)
• Gross margin in Q1 2018 represents a different business mix and is affected by increased amortisation resulting from the PPA of strategic acquisitions and timing of milestone revenues
• Gross margin excluding total amortisation from M&A would be at 27.3%
• Adverse FX effect on Q1 2018 revenues (€ 3.3 m) and gross margin (1.8%-points)

27 1) Gross margin in the future may be volatile due to the dependency of receipt of potential milestone or out-licensing payments. In addition, the amortisation of the purchase price allocation (PPA) of the recent strategic acquisitions will impact costs of revenue and thus the gross margin

3) 2017 data adjusted according to IFRS 15

²⁾ Not adjusted according to IFRS 15

"3x30" guidance confirmed

Guidance 2018

1	Double digit top line growth	 More than 30% Group revenue growth
2	Profitable and growing	Adjusted Group EBITDA1)  expected to improve by approx. 30% compared to 2017
3	Focused investments	 Group R&D expenses of € 20-30 m

²⁸ 1) Before contingent considerations, income from bargain purchase and excluding impairments on goodwill, other intangible and tangible assets as well as the total nonoperating result

Important next dates

Financial calendar 2018

Annual Report 2017	28 March 2018
Quarterly Statement Q1 2018	09 May 2018
Annual General Meeting 2018	20 June 2018
Half-year 2018 Interim Report	09 August 2018
Quarterly Statement 9M 2018	13 November 2018