Evotec SE — Investor Presentation 2018

Mar 28, 2018

Excellence in external innovation

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 2016 and 2017 results are not fully comparable. The difference stems mainly from the acquisitions of Cyprotex PLC ("Cyprotex"), effective 14 December 2016, and Aptuit, effective 11 August 2017. The results from Cyprotex are only included from 14 December 2016 onwards. The results from Aptuit are included from 11 August 2017 onwards.

Welcome to Evotec

The Management Team

Agenda

Summary 2017 & Action Plan 2022

EVT Execute

EVT Innovate

Financial performance 2017

Outlook & Guidance 2018

Fast-growing platform and co-owned pipeline

Highlights 2017

EVT Execute

• Cyprotex integration and performance ahead of plan
• Extension of value chain with INDiGO® and Aptuit development services
• Multiple new and extended drug discovery alliances
• Strong milestone performance
• Significant progress within alliances

EVT Innovate

• New record level of milestones
• Expansion of iPSC platform and patient-centric approaches
• CKD alliance with Bayer and fibrosis alliance with Pfizer gaining momentum
• BRIDGE model as paradigm shift for translation of academic science getting started
• Alliance with Sanofi to accelerate infectious disease R&D (after period-end)1)

Corporate

• Continued high-value investments and company formations
• EIB R&D loan facility of up to € 75 m to support EVT Innovate and R&D equity engagements
• New strategic investor: Novo Holdings A/S
• Preparation to convert into SE (after period-end)
• Strong outlook for 2018 "3x30"

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 financial performance

Results and guidance 2017

i € n	F i l l 2 0 1 7 t n a r e s u s	G i d u a n c e A 2 0 1 7 t u g u s	I i i l i d t n a g u a n c e M h 2 0 1 7 a r c
G r o u p r e v e n u e s	€ 2 5 7 6 m ( ) 5 % 7 +	M h 4 0 % h t t o r e a n g r o w	M h 1 % h 5 t t o r e a n g r o w ( ) 2 0 1 6 € 1 6 4 5 : m
R & D e p e n s e s x	€ 1 7 6 m	A € 2 0 p p r o m x	A € 2 0 p p r o m x ( ) 2 0 1 6 € 1 8 1 : m
G A d j d t u s e r o u p ) 1 E B I T D A	€ 5 8 0 m ( ) 6 0 % +	M h h 5 0 % t t o r e a n g r o w	S i i f i l i d t g n c a n y m p r o v e , d i t c o m p a r e o p r o r e a r y ( ) € 2 0 1 6 3 6 2 m :

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

Leading the megatrend with Action Plan 2022

"Action Plan 2022 – Leading External Innovation" – The vision

AP 2022 delivers market-leading external drug discovery and development solutions based on state-of-the-art technologies and innovation processes

AP 2022 continues to build a broad co-owned pipeline

AP 2022 relies on delivery within a unique business model

Consequent and fast forward

"Action Plan 2022 – Leading External Innovation" – The strategic goals

Unique business model for high value generation

Linking strategic goals with operational imperatives

Value generation from three initiatives

EVT Execute

• Expand critical mass, world-leading platforms, and maintain delivery culture
• Continued focus on operational excellence, innovation efficiency, long-term alliances
• Build most efficient translation into the clinic in the industry with INDiGO®

EVT Innovate

• Expand co-owned pipeline larger than to > 100 assets
• Bring first co-owned assets close to market launch and first royalty incomes
• Increase predictiveness in discovery through disruptive technologies (e.g. Artificial Intelligence in drug discovery, iPSC,…)

Corporate acceleration

• Build portfolio of holdings with ~ 5-year value generation timeframe
• Expand BRIDGEs in USA and EU
• Successful integration of strategic measures and expand leadership positions through additional acquisitions or strategic alliances

PAGE

9

Strong long-term outlook

"Action Plan 2022 – Leading External Innovation" – In numbers1)

1) Please note that bar heights are only illustrative and not representing actual values

2) Before contingent considerations, income from bargain purchase and excluding impairments on goodwill, other intangible assets and tangible assets as well as the total non-operating result 3) Excluding equity investment

4) Gross margin in the future represents different business mix, consider amortisation of acquisitions, and may be volatile due to potential milestone or out-licensing payments

Excellence meets excellence

The double helix of external innovation

Agenda

Summary 2017 & Action Plan 2022

EVT Execute

EVT Innovate

Financial performance 2017

Outlook & Guidance 2018

ONE platform for external innovation

Unique business model – EVT Execute & EVT Innovate

"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

Strong organic growth supported by acquisitions

EVT Execute – Key performance indicators FY 2017

1) Including intersegment revenues

No 1 in quality and R&D efficiency

EVT Execute – Major achievements 2017

• Extension of value chain with INDiGO® and Aptuit development services
• Cyprotex performance ahead of plan
• New partnerships with large and midsized Pharma
• Fast growing biotech network in USA/Europe
• Important milestones (e.g. start of second clinical Phase I study in endometriosis with Bayer, Phase I in respiratory with Boehringer Ingelheim)

Further improved customer base

EVT Execute – Selected KPIs 2017

R b t e v e n u e s y c u s o m e r 1 ) d 2 0 1 ( i ) t t 7 % s e g m e n y n				1 ) C d 2 0 1 7 t t t u s o m e r y p e y ( i ) % n			R b i d t e v e n u e s y r e g o n y 1 ) 2 0 1 ( i ) 7 % n
R i i e m a n n g	1 5 %			1 0 0 %	M i d- i d s z e P h a r m a	1 0 %		1 3 %	1 0 0 %	O R W	1 %		2 %	1 0 0 %
T 1 1- 3 0 o p C t u s o m e r s	1 5 %		2 9 %		F d i t o n a o n s u	1 6 %		1 1 %		S U A	4 2 %		3 4 %
			1 7 %		B i h t o e c	2 2 %		2 5 %
T 1 0 o p L t o n g e r m - S i t t r a e g c A l l i a n c e s	0 % 7		4 % 5		T 2 0 o p P h a r m a	5 3 %		5 1 %		E r o p e u	5 7 %		6 4 %
	2 0 1 6		2 0 1 7			2 0 1 6		2 0 1 7			2 0 1 6		2 0 1 7

Integration of Aptuit progressing as planned

Aptuit – Initial achievements & outlook

Summary of transaction

• Acquisition closed in August 20171) (Total deal value of € 253.2 m)
• Post-merger integration ongoing according to plan
• One-time direct transaction costs of € 3.3 m

Organisation, leadership and systems integration

• Initial integration steps effectively completed
• Aptuit continues to operate and serve its client base in all segments

New business and further opportunities on horizon

Very good initial customer feedback to extended joint Evotec offering, e.g. INDiGO®

Faster and safer to the clinic

INDiGO®

INDiGO® accelerates early drug candidates into the clinic by reducing time from nomination to regulatory submission in less than 52 weeks1)

INDiGO® –Integrated solution (Typical activities)

• Active Pharmaceutical Ingredient (API) Manufacture
• Formulation Development
• Clinical Supply
• Safety Assessment
• DMPK
• Bioanalysis and Biomarkers
• Regulatory submission documents preparation

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

Summary 2017 & Action Plan 2022

EVT Execute

EVT Innovate

Financial performance 2017

Outlook & Guidance 2018

Building a co-owned and fully invested pipeline

Partnership portfolio

	Mo lec ule	/In Th tic A dic ati era p eu rea on	Pa rtn er	Dis co ve ry	Pr lin ica l e-c	Ph e I as	Ph e I I as
	EV T2 01	CN S – Ins nia om
	EV T4 01	Im log & I nfla ati mu no y mm on
	1) ND	On log co y
l a	1) ND	On log co y
c i	Va rio us	Wo n's he alt h – En do trio sis me me
n li	Va rio us	Wo n's he alt h – En do trio sis me me
C	1) ND	Im log & I nfla ati mu no y mm on
	Va rio us	On log co y
	1) ND	Ch ic c h ron ou g
	1) ND	Re ira tor sp y
	1) ND	CN S – Pa in
	1) ND	Im log & I nfla ati mu no y mm on
l a	1) ND	On log co y
c	EV T7 70	( 2/ 1) Me tab olic Dia be tes ty pe –
i n	1) ND	Re ira tor sp y
li c	Va rio us	Wo n's he alt h – En do trio sis me me
-	EV T8 01	On log co y
e r	EV T7 01	On log co y
P	EV T6 01	On log co y
	1) Va rio ND us	On log Im the co y – mu no rap y
	Va rio us	CN S, Me tab olic Pa in & Inf lam tio ma n ,	>1 0 f he urt r p rog ram me s
	1) Va rio ND us	Ne hro log p y
	1) Va rio ND us	Im log & I nfla ati mu no mm on y
	1) Va rio ND us	Me tab olic Dia be ( 2/ 1) tes ty pe –
	1) Va rio ND us	2/ Me tab olic Dia be ( 1) tes ty pe –
y r	1) Va rio ND us	Ne hro log p y
e	1) Va rio ND us	Me tab olic Dia be tes –
v o	Va rio us	Im log & I nfla ati Tis e f ibr is mu no y mm on su os –
c	Va rio us	Ne de tio uro g en era n
s i	C i Lpx nh ibit or	An ti-b act eri al
D	Va rio us	All ind ica tio ns
	IND Y i nh ibit or	Me tab olic
	Va rio us	Fib ic d ise rot as e	Fib Th tic roc or era p eu s
	Va rio us	An tiv ira l
	Va rio us	Int al: On log CN S, Me tab olic Pa in & Inf lam ern co ma y, ,	tio 30 fu rth n > er p rog ram me s

Note: Some projects have fallen back to Evotec, where Evotec does not intend to run further clinical trials unpartnered, e.g. EVT302, EVT101,… 1) Not disclosed

Milestones are the key growth driver

EVT Innovate – Key performance indicators FY 2017

Revenue growth of 65% and improved adjusted EBITDA resulting from extended collaborations and the full year impact of new partnerships with Celgene and Bayer and milestones

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

Superior platforms and first-in-class targets

EVT Innovate – Major achievements 2017

• Important milestone achievements (kidney disease alliance with Bayer, iPSC alliance with Celgene, immuno-oncology alliance with Sanofi/ APEIRON)
• Strong focus on iPSC platform
• Patient-centric approaches also in kidney diseases, e.g. NURTuRE and NEPLEX consortia
• New clinical initiations and good progress of pipeline within partnerships
• Expansion of BRIDGE network alliance with Sanofi to accelerate infectious disease R&D (after period-end)1

Increasing personalisation will require new tools and platforms in discovery, development, and clinic

More personalised medicines driven by molecular phenotyping and AI

Personalised medicine

Human genetics and biomarkers

• Unbiased disease relevant readouts
• Patient-derived disease models
• Molecular phenotyping
• Artificial intelligence to analyse high-volume data
• Computer-assisted drug design of compounds
• Analysis of molecular phenotypes

Opportunities

• Increased personalisation of medicine requires more precise readouts
• Combining patient-derived disease models with molecular phenotyping is at its very beginning
• Large data sets will require new analytical tools

Global leadership in iPSC

Strong focus on iPSC1) ^platform

Molecular phenotypes will change the drug discovery paradigm on multiple levels

Taking molecular phenotypes from patients to patients

One big effort for the benefit of many

Sanofi & Evotec –Transaction expected to close in H1

Pipeline-building collaboration in infectious diseases (ID)

Strong and diverse portfolio of > 10 research & 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

> 80 co-owned projects across broad range of therapeutic areas

Fast growing co-owned portfolio

V l h i a u e c a n	C d o -o n e w i D s c o e r v y 0 j 5 t p r o e c s >	C d o -o n e w i i P l l r e -c n c a 2 j 5 t p r o e c s >	C d o -o n e w C i i l l n c a 1 0 j t p r o e c s >
Ø C i l o m m e r c a s	Ø f € 1 1 0 t m u p r o n  - d b i l t t a n s u s a n a h t r e s e a r c p a y m e n s	Ø € 1 0 i l 5 m m e  - j t t s o n e s p e r p r o e c	Ø 8 % l i t r o y a e s 
P t a r n e r s

Paradigm shifts in neurodegeneration and diabetes

iPSC – Alliances; Progress overview

i P S C l l i i d i t a a n c e n n e r o e g e n e r a o n u D l f l h i f b d t t e e o p m e n o n o e e r a p e s o r a r o a v v f d i d i t r a n g e o n e r o e g e n e r a e s e a s e s u v	i P S C l l i i d i b t a a n c e n a e e s D l f b l l l h d t t t t e e o p m e n o e a c e r e p a c e m e n e r a p a n v y d d i b d f i l h b l l t t r g s c o e r a s e o n n c o n a m a n e a c e s u v y u u
F o c s o n u S A L A h i l l l i t t m o r o p c a e r a s c e r o s s y  A D A l h i 's d i e m e r s e a s e z  H D H i 's d i t t n n g o n s e a s e u  P D P k i 's d i a r n s o n s e a s e  …	F o c s o n u B l l l h t t t e a c e r e p a c e m e n e r a p y  S D d i l l l l r u g s c o v e r y m a m o e c u e s  –
C i l o m m e r c a s \$ U f i l i l 4 5 t t t t p r o n m p o e n a m e s o n e s , \$ j l d b l d i i l i 2 5 0 t, t t m p e r p r o e c o o e g r o a e s w u y > -	C i l o m m e r c a s U f € h i l 3 t t t t p r o n m r e s e a r c p a m e n s p o e n a y , , i l € d b l d i i l i 3 0 0 t t t m e s o n e s m o e g r o a e s u y > - ,

Strong progress in first-in-class alliances

Progress overview (Examples)

Building BRIDGEs over the "Valley of death"

The funding gap

First-in-class innovation via co-investment strategy

Innovative building & investing

• Participation in financing rounds, built on Evotec's platforms, via strategic investments
• Approx. € 22 m investments in 2017; long-term commitments with payback horizon > 5 years
• Attractive € 75 m loan facility available from EIB to also support R&D equity financing

Just the beginning for 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 Innovate partnerships
• Strong expansion of iPSC (induced pluripotent stem cells) platform

Agenda

Summary 2017 & Action Plan 2022

EVT Execute

EVT Innovate

Financial performance 2017

Outlook & Guidance 2018

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35

Very strong financial performance

Key financials 2017: Condensed income statement (IFRS)

) 1 i € n m	2 0 1 7 A l t c a u	2 0 1 6 A l t c u a	% s v 2 0 1 6
R e e n e s v u	2 5 6 7	1 6 4 5	5 7 % +
G i r o s s m a r g n	3 2 0 %	3 6 % 5	–
R & D e p e n s e s x 	( 1 6 ) 7	( ) 1 8 1	( ) 3 %
S G & A e x p e n s e s 	( ) 4 2 4	( ) 2 0 7	% 5 7 +
I i l t t, t m p a r m e n r e s n e u 	( 1 2 )	( ) 5 4	–
O h i ( ), t t e r o p n c o m e e x p e n s e s n e 	1 6 1	2 3 3	–
) 2 O i i t p e r a n g n c o m e	3 5 7	3 1 3	2 0 % +
) 3 A d j d G E B I T D A t s e r o p u u	5 8 0	3 6 2	6 0 % +
) 2 N i t e n c o m e	2 4 0	2 6 8	( ) 1 1 %

• Revenue growth due to strong performance in the base business, increased milestones and positive contributions from acquisitions
• Gross margin represents a different business mix, and gross margin and net income 2017 affected by increased amortisation resulting from the PPA of strategic acquisitions and adverse foreign currency effects
• SG&A impacted by expenses of Cyprotex and Aptuit, growth of base business as well as one-time transaction-related M&A costs
• Continued growth in tax credits accretive to Other op. income
• Operating and net income 2016 was significantly positive affected by changes in contingent considerations (€ 12 m) due to revaluation of EVT770

¹⁾ Differences may occur due to rounding

²⁾ Operating result and net income in 2017 impacted by one-time transaction-related M&A costs (€ 3.9 m) as well as Purchase Price Allocation (PPA) related amortisation in context of strategic acquisitions (€ 5.6 m)

Both segments perform according to strategy

Condensed income statement based on segments for FY 2017

in € m1)

	E V T E t x e c u e	E V T I t n n o v a e	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 v o e c G r o u p
R e v e n u e s	2 5 0 3	4 3 9	( ) 3 6 6	2 5 7 6
G i r o s s m a r g n	2 7 0 %	4 4 3 %	–	3 2 0 %
R & D e p e n s e s x 	( ) 0 7	( ) 2 1 4	4 5	( ) 1 6 7
S G & A e p e n s e s x 	( 3 5 5 )	( 6 9 )	–	( 4 2 4 )
I i l t t, t m p a r m e n r e s n e u 	–	( ) 1 2	–	( ) 1 2
O h i ( ), t t e r o p n c o m e e x p e n s e s n e 	1 2 1	4 0	–	1 6 1
i i ( ) O l t p e r a n g n c o m e o s s	4 3 5	( ) 6 0	–	3 7 5
) 2 A d j d E B I T D A t u s e	6 3 2	( ) 5 2	–	5 8 0

• EVT Execute revenues up 46% and EVT Innovate revenues up 65% compared to 2016
• EVT Innovate R&D expenses on similar level
• Adjusted EBITDA of EVT Innovate significantly improved (2016: € (14.0) m)
• Adjusted EBITDA of EVT Execute strong and significantly improved (2016: € 50.2 m)

¹⁾ Differences may occur due to rounding

Strong Q4, despite one-time impact

Q4 2017 results

in € m1)

	Q 4 2 0 1 7 A l t c u a	Q 4 2 0 1 6 A l t c u a	% v s 2 0 1 6
R e v e n u e s	8 6 8	4 3 9	9 % 7 +
G i r o s s m a r g n	2 6 0 %	2 7 7 %	–
R & D e p e n s e s x 	( 5 1 )	( ) 5 3	( ) 4 %
S G & A e p e n s e s x 	( ) 1 3 1	( ) 9 2	5 1 % +
I i l t t, t m p a r m e n r e s n e u 	–	( ) 4 0	–
O h i ( ), t t e r o p n c o m e e p e n s e s n e x 	7 3	1 7 4	–
O i i t p e r a n g n c o m e	1 1 6	1 1 0	–
2 ) A d j d G E B I T D A t u s e r o u p	1 8 7	5 6	2 3 4 % +

• Significantly higher base revenues and higher milestones
• Gross margin affected by new mix of business through acquisitions and amortisation of purchase prices
• Higher SG&A mainly due to addition of Aptuit and Cyprotex as well as growth of base business
• In Q4 2016: Goodwill (US) impairment of € 4.0 m
• 2016 operating income significantly positive affected by changes in contingent considerations (€ 12 m) due to revaluation of EVT770

1) Differences may occur due to rounding

Strong performance continues – "3x30"

Financial history 2014-2018 (e) – Selected performance indicators

³⁸ 1) Gross margin in the future may be more volatile due to the dependency of receipt of potential milestone or out-licensing payments, both having a strong impact on the gross margin, also new mix of business through acquisition of Aptuit. In addition, the amortisation of the purchase price allocation of the recent strategic acquisitions will impact costs of revenue and thus the gross margin.

Strong top-line performance, new mix of business

Revenues & Gross margin overview

³⁹ 1) Including software licences

2) 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 of the recent strategic acquisitions will impact costs of revenue and thus the gross margin.

Focus on first-in-class innovation

R&D expenditure & SG&A overview

in € m

Adjusted Group EBITDA significantly improved

Operating result & Adjusted Group EBITDA overview

in € m

Operating result1)

(impacted by one-time transaction-related M&A costs (€ 3.9 m) as well as PPA allocation-related amortisation in context of recent strategic acquisitions (€ 5.6 m))

Adjusted Group EBITDA (adjusted for changes in contingent consideration and income from bargain purchase)

Balance sheet reflects acquisition of Aptuit

Balance sheet overview

in € m

Strong cash position despite acquisitions

Liquidity bridge Nov 2016 to Dec 2017

in € m

Strong growth in highly skilled workforce for innovation

Human Resources

Highly skilled workforce

• 82% of employees have at least one academic qualification

• 6.2 years of average experience, approx. 40% of employees have worked for Evotec for more than five years
• 54% of employees are women
• 60 nationalities

Agenda

Summary 2017 & Action Plan 2022

EVT Execute

EVT Innovate

Financial performance 2017

Outlook & Guidance 2018

"3x30" – Strong growth and profitability expected

Guidance 2018

1	D b l o u e d i i t t g o p l i h t n e g r o w	M h G h 3 0 % t t o r e a n r o p r e e n e g r o u v u w 
2	P f i b l t r o a e d i a n g r o w n g	) 1 G A d j d E B I T D A d i b t t t u s e r o u p e x p e c e o m p r o v e y a p p r o x  3 0 %
3	F d o c s e u i t t n e s m e n s v	G f R & D € 2 0 3 0 r o u p e x p e n s e s o m  -

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

Come and visit www.evotec.comwww.evotec.com

New website

Important next dates

Financial calendar 2018

A l R 2 0 1 7 t n n u a e p o r	M h 2 8 2 0 1 8 a r c
Q l S Q 1 2 0 1 8 t t t t a r e r a e m e n u y	M 0 9 2 0 1 8 a y
A l G l M i 2 0 1 8 t n n u a e n e r a e e n g	J 2 0 2 0 1 8 n e u
f i H l 2 0 1 8 I R t t a e a r n e r m e p o r -y	0 9 A 2 0 1 8 t u g u s
Q l S M 9 2 0 1 8 t t t t a r e r a e m e n u y	N b 1 3 2 0 1 8 o e m e r v