Evotec SE — Investor Presentation 2020

Mar 26, 2020

Evotec FY 2019

Opening new doors

Evotec SE, Full-year 2019 results, 26 March 2020

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 2018 and 2019 results are not fully comparable. The difference stems from the acquisitions of Just – Evotec Biologics (effective 02 July 2019) and Evotec ID (Lyon) SAS (effective 01 July 2018).The results from Just – Evotec Biologics are only included from 02 July 2019 onwards while the results from Evotec ID (Lyon) SAS are only included from 01 July 2018 onwards.

From 01 January 2018 onwards, Evotec applies IFRS 15 and IFRS 9. From 01 January 2019 on, Evotec applies also IFRS16.

Welcome to FY 2019

The Management Team

#Researchneverstops - now more than ever

Mastering SARS-CoV-2 & COVID-19 together

What is paramount in this situation

Agenda

Highlights & Strategy

Financial performance 2019

Scientific and operational performance 2019

Guidance 2020

"just beginning"… Opening more doors than ever

Highlights & lowlights 2019

Highlights

• Multiple new and extended strategic drug discovery and development alliances
• Successful integration of Just Evotec Biologics; Construction of first J.POD® in Seattle initiated
• First strategic J.POD® partner MSD (after period-end)
• Significant expansion and progress in partnered pipeline
• Multiple important milestone achievements in long-term collaborations
• Expansion of BRIDGEs and equity-based co-ownership engagements
• Formation of 50:50 joint venture with Vifor Pharma and Spin-off Breakpoint Therapeutics
• Continued expansion of iPSC leadership, machine learning and artificial intelligence platforms
• New precision medicine initiatives in women's health and oncology
• Expanding leading position in infectious diseases via multiple alliances
• Successful placement of € 250 m promissory note (Schuldschein) at very low cost of capital
• Guidance outperformed with Group revenues +19% and adjusted EBITDA +29%

Lowlights

Impairment of SGM-1019 after clinical termination by partner Second Genome

All moves follow consistent long-term strategy

"Action Plan 2022 – Leading External Innovation"

Building a co-owned portfolio in partnerships

Unique strategy and business approach

PAGE

Despite COVID uncertainties, growth strategy on track

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

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

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

3) Excluding expenses for ID-related expenses fully reimbursed by Sanofi under other operating income; total of R&D expenses in 2019 of € 58.4 m

4) Gross margin in the future represents different business mix, considering amortisation of acquisitions, and may be volatile due to potential milestone or out-licensing payments; gross margin in 2017 restated for IFRS 15

Scientific excellence meets operational excellence

Opening the door to > 500 new top talents in 2019

• 8 years on average drug discovery and development experience

• 55% female; > 69 nationalities

• 400 new talents planned for 2020

Agenda

Highlights & Strategy

Financial performance 2019

Scientific and operational performance 2019

Guidance 2020

Milestone performance led to updated guidance

Results and guidance 2019

	Final results 2019		Latest Guidance January 2020	Initial guidance March 2019
Group	€ 431.9 m		Approx.	Approx. 10% growth
revenues1)	(+19%)		15% growth	(2018: € 364.0 m)
Unpartnered	€ 37.5 m		Approx.	Approx. € 30-40 m
R&D2)	(+64%)		€ 30-40 m	(2018: € 22.8 m)
Adjusted Group	€ 123.1 m		More than	Approx. 10% growth
EBITDA3)	(+34%)		25% growth	(2018: € 92.0 m)

11 1) Guidance on revenues 2018 and 2019 without revenues from recharges (IFRS15 material recharges);

Group revenues including revenues from recharges (IFRS 15 material recharges): 2018: € 375.4 m, 2019: € 446.4 m

2) Unpartnered R&D expenses is excluding expenses for ID-related expenses fully reimbursed by Sanofi under other operating income

3) Adjusted EBITDA 2018 without one-off effects of € 3.5 m / Before contingent considerations, income other intangible & tangible assets as well as the total non-operating result

Financials reflect that strategy works

Key financials 2019: Condensed income statement (IFRS)

in € m1)

	2019 Actual	2018 Actual	% vs. 2018
Revenues from contracts with customers2)	446.4	375.4	+19%
Gross margin	29.8%	29.8%	–
 R&D expenses	(58.4)	(35.6)	+64%
 SG&A expenses	(66.5)	(57.0)	+17%
 Impairment of intangible assets	(11.9)	(4.4)	+173%
 Income from bargain purchase	–	15.4
 Other op. income (expenses), net	66.6	47.0	+42%
Operating result	62.6	77.5	-19%
Adjusted Group EBITDA3)	123.1	95.5	+29%
Net income	37.2	84.1	-56%

• Revenue growth in base business, very strong milestone achievements and contribution from Just – Evotec Biologics
• IFRS 15: € 14.5 m
• Unpartnered R&D expenses increased to € 37.5 m (2018: € 22.8 m)
• One-off impairment of SGM-1019
• One-time effect Bargain purchase Evotec ID (Lyon) in 2018
• Other operating income due to recharges for Evotec ID (Lyon) and R&D tax credits
• Net Income not comparable because of one-off effects, deferred taxes and EVT Equity Strategy

2) 2018 and 2019 including IFRS 15 material changes

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

¹⁾ Differences may occur due to rounding

Very strong performance in both segments

Condensed income statement based on segments for FY 2019

in € m1)

	EVT Execute	EVT Innovate	Inter segment elimination	Not allocated2)	Evotec Group
Revenues	420.3	94.3	(82.7)	14.5	446.4
Gross margin	26.0%	34.6%	–	–	29.8%
 R&D expenses	(2.1)	(65.5)	9.2	–	(58.4)
 SG&A expenses	(52.5)	(14.0)	–	–	(66.5)
 Impairment of intangible assets	–	(11.9)	–	–	(11.9)
 Income from bargain purchase	–	–	–	–	–
 Other op. income (expenses), net	22.0	44.6	–	–	66.6
Operating result	76.8	(14.2)	–	–	62.6
Adjusted EBITDA3)	122.5	0.6	–	–	123.1

• EVT Execute revenues up 21% due to strong base business and ½ year Just – Evotec Biologics
• EVT Innovate revenues up 37% due to milestones and new partnerships
• R&D expenses increased as expected following ID efforts and increased unpartnered R&D
• EVT Execute with 41% increase in adjusted EBITDA (impact IFRS 16: € 15.5 m)
• Slightly positive adjusted EBITDA of EVT Innovate

1) Differences may occur due to rounding

²⁾ Revenues in the segments consist of revenues from contracts with customers without revenues from recharges as those are not of importance for the management to assess the economic situation of the segments. Thus segment reporting is not considering Revenues from Recharges for IFRS 15.

³⁾ Adjusted for changes in contingent considerations & income from bargain purchase

Outstanding performance in Q4

Q4 2019 results

in € m1)
	Q4 2019 Actual	Q4 2018 Actual	% vs. 2018
Revenues2)	125.1	97.3	+29%
Gross margin	27.2%	29.1%	–
 R&D expenses	(17.1)	(14.7)	+16%
 SG&A expenses	(20.3)	(16.3)	+25%
 Impairment of goodwill and intangible assets	–	–	–
 Other op. income (expenses), net	19.6	20.8	-6%
Operating result	16.2	18.0	-10%
Adjusted Group EBITDA3)	29.9	26.7	+12%

• Strong Q4 revenues mainly due to significant milestone revenues from EVT Innovate and growing base business incl. Just – Evotec Biologics
• R&D and SG&A expenses increased as expected
• Adjusted EBITDA grew by 12% vs last year
• Strong adjusted EBITDA margin of 23.9%

PAGE 14 1) Differences may occur due to rounding

2) 2018 and 2019 including IFRS 15 material changes

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

Agenda

Highlights & Strategy

Financial performance 2019

Scientific and operational performance 2019

Guidance 2020

"Autobahn" is multimodal

End-to-end integrated offering

Success requires superior solutions at every stage

Integration value applied all through the value chain

Target Sourcing novel ideas dation	ID/Vali	Hit Identi fication	Lead Optimi sation	Pre clinical	Phase I	Phase II	Phase III	Approval	Market
 Exploratory Biology  Hit-finding Technologies  Chemistry  DMPK  Sample Management	    	Biology Design/Chemistry DMPK PK:PD Safety		  Design/Chemistry   PK:PD  Safety	Translational Biology DMPK/Physical Chem	    Formulation  Safety	Translational Biology Process Chemistry Analytical Chemistry	   	Process Chemistry Analytical Chemistry Formulation Packaging

• Interdisciplinary teams and high expertise drives problem-solving
• Innovation, high science, technology and machine learning
• Operational excellence to drive rapid progress and successful outcomes
• Good decisions in discovery cast a long shadow through development

Excellent position for continued growth

EVT Execute – Major achievements 2019

• Multiple new alliances and strategic collaborations
• Extensions and growth of existing, long-term partnerships

• 90% repeat business

• 700 partners across the industry

• Successful integration of Just – Evotec Biologics
• Multiple milestone achievements

Better biologics with next generation technologies

Just – Evotec Biologics

J.POD® – The Biologics Facility of the Future

J.POD® – relatively low CAPEX and primary OPEX driven manufacturing

The first J.POD® facility in North America

J.POD® … moving toward commercial manufacturing in Redmond (Seattle)

Late-stage clinical & commercial facility for biologics. Building size: 130,000 SF* (future expansion options available).

Very positive meeting with FDA Emerging Technology Team (ETT) discussing facility design and plant operations

Strong start

Latest news in Q1 and goals 2020

Important initial achievements

• Initiate construction of first J.POD®
• Multi-year collaboration with MSD around facility of the future
• Built new partnerships on INDiGO platform

Next steps

• Continued strong high-quality growth
• New integrated service alliances in drug discovery & development
• Further enhancement of our multi-modality capabilities
• Completion of J.POD®

Superior platforms open new doors

EVT Innovate – Major achievements 2019

• Multiple milestone achievements in iPSCbased alliances (e.g. BMS/Celgene, Sanofi)
• Successful progress in co-owned pipeline, e.g. Bayer, Carrick, Topas Therapeutics
• NephThera JV with Vifor in nephrology
• Spin- out Breakpoint Therapeutics on DNA damage response
• Continued participation in equity investments; Initiation of new BRIDGEs: LAB555, LAB10x
• Collaboration with Celmatix and Bayer in women's health
• Building up leading position in infectious diseases via alliances e.g. GARDP1), GNA Now, Helmholtz and Bill & Melinda Gates Foundation

Fully invested pipeline, gaining visibility

Partnership portfolio pre-clinical and clinical

	Molecule	Therapeutic Area/Indication	Partner	Discovery	Pre-clinical	Phase I	Phase II	Phase III
	EVT201	CNS – Insomnia
	BAY-1817080	Chronic cough
	ND1)	Chronic cough
	CT7001	Oncology
	CT7001	Oncology
	EVT401	Immunology & Inflammation
	ND1)	Women's health – Endometriosis
Clinical	ND1)	Endometriosis Women's health –
	ND1)	Women's health – Endometriosis
	ND1)	Women's health – Endometriosis
	Various	Respiratory
	ND1)	Oncology
	ND1)	Immunology & Inflammation
	DSP-1181	OCD
	ND1)	Pain
	Various	Women's health – Endometriosis
	EVT801	Oncology
	TargetImmuniT	Oncology – Immunotherapy
	ND1)	Oncology (+ several discovery programmes)
Pre-clinical	ND1)	Fibrosis
	Various ND1)	Nephrology
	Various ND1)	Metabolic – Diabetes
	Various	Neurodegeneration
	Various	CNS, Metabolic, Pain & Inflammation	>10 further programmes

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, SGM-1019

>100 discovery projects are progressing rapidly

Partnership research and discovery portfolio

	Molecule	Therapeutic Area/Indication	Partner	Discovery	Pre-clinical	Phase I	Phase II	Phase III
	ND1)	Nephrology
	ND1)	PCOS
	ND1)	PCOS
	INDY inhibitor	Metabolic
	Various	Oncology
	ND1)	Oncology
	ND1)	Oncology – Colorectal cancer
	ND1)	Oncology – DNA damage response
	ND1)	Novel antibiotics
	ND1)	Novel antibiotics
Discovery	ND1)	Anti-bacterial
	TargetPicV	Antiviral
	Various	Anti-infectives	>5 programmes
	Various	All indications
	ND1)	Dermatological diseases
	ND1)	Facioscapulohumeral Dystrophy
	Various	Immunology & Inflammation – Tissue fibrosis
	Various	Fibrotic disease	Fibrocor Therap./ Galapagos
	Various ND1)	Immunology & Inflammation
	ND1)	Inflammatory
	ND1)	Cancer
	Various	Internal: Oncology, CNS, Metabolic, Pain & Inflammation	>40 further programmes

6 BRIDGEs and over 50 projects ongoing

Long-term optionality with efficient translation

BRIDGE	BRIDGE	BRIDGE	BRIDGE	BRIDGE	BRIDGE
Partnership with University of Oxford and Oxford Sciences Innovation Focus on next generation therapeutics	Partnership with MaRS Innovation	Partnership with Sanofi	Partnership with Arix and Fred Hutch	Partnership with University of Oxford, Sensyne Health and Oxford Sciences Innovation Focus on breakthroughs in Digital Health	Partnership with Integra, Yissum and Hebrew University of Jerusalem
Initiated 2016	Initiated 2017	Initiated 2018	Initiated 2016	Initiated 2019	Initiated 2019
32 projects in progress	7 projects in progress	5 projects in progress	10 projects under evaluation	2 projects under evaluation	4 projects under evaluation

Building a portfolio of co-owned equity

Equity participations – Overview March 2020

Equity participation Facioscapulo humeral muscular dystrophy	Equity participation Metabolic disorders	Spin-off Nanoparticle based therapeutics	Equity participation Targeting metalloenzymes	Equity participation Innovative mole cular pathways in oncology	Equity participation Fibrosis partner ship with TIAP	Consortium membership Kidney diseases
Initiated 2011	Initiated 2016	Initiated 2016	Initiated 2016	Initiated 2016	Initiated 2017	Initiated 2017
Equity participation Artificial Intelli gence for automa ted drug design	Joint Venture w. Vifor Pharma Kidney diseases	Spin-off DNA damage response	Equity participation Inflammatory disease	Equity participation Oncology/ Biologics	Equity participation Women's health
Initiated 2018	Initiated 2019	Initiated 2019	Initiated 2019	Initiated 2019	Initiated 2019	More to come …

… more doors to open

Latest news in Q1 and goals 2020

Important initial achievements

• Further programme from the endometriosis multi-target alliance advanced into clinical Phase I development
• Second joint drug discovery programme with Indivumed

• Expansion of iPSC-based cell therapy platform

• New co-owned partnerships from own R&D and platforms

• New clinical initiations and progress of co-owned pipeline
• Initiation of new BRIDGEs

Your contact:

Dr Werner Lanthaler Chief Executive Officer

+49.(0).40.560 81-242 +49.(0).40.560 81-333 Fax

Agenda

Highlights & Strategy

Financial performance 2019

Scientific and operational performance 2019

Guidance 2020

Strong year ahead – mastering all challenges

Guidance 2020

1	Good top line growth expected	Total Group revenues expected to range from € 440 – 480 m, despite loss of € 20 m subsidy from Sanofi, and certain COVID-19 challenges1)
2	Similar level	Adjusted Group EBITDA2) expected to be in the range of € 100 – 120 m, at comparable level as in 2019, despite loss of € 20 m subsidy from Sanofi, significant ramping up J.POD® capacities, and certain COVID-19 challenges
3	R&D investments for growth	Unpartnered Group R&D expenses of approx. € 40 m3)

31 1) Given current global insecurities, a likely negative impact from the ongoing Corona pandemic is already estimated within the introduced guidance for revenues and adjusted EBITDA 2) Before contingent considerations, income from bargain purchase & excl. impairments on goodwill, other intangible & tangible assets as well as the total non-operating result 3) 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").

Important next dates

Financial calendar 2019

Annual Report 2019	26 March 2020
Quarterly Statement Q1 2020	14 May 2020
Annual General Meeting 2020	16 June 2020*
Half-year 2020 Interim Report	12 August 2020
Quarterly Statement 9M 2020	12 November 2020

Back-up // Additional Financial information

Continuously strong revenues and gross margin

Revenues & Gross margin

Overall growth and acquisitions reflected

R&D and SG&A expenses overview

in € m

Promissory note strengthens financing structure

Liquidity bridge 2018 vs 2019

in € m

Strong balance sheet with >40% equity ratio

Balance sheet overview

in € m

Asset base increased due to higher liquidity and IFRS16 impact on PPE Strong equity ratio at 40.4%, € 250 m SSD loan issued in June 343.8 372.9 90.5 239.2 188.2 248.8 149.4 320.0 Cash and marketable securities Property, plant and equipment 1,180.9 31.12.2019 Intangible assets and goodwill Other current and noncurrent assets 31.12.2018 771.9 424.9 477.0 93.2 82.6 139.3 158.2 114.5 463.1 31.12.2019 Short-term liabilities Long-term liabilities and deferred taxes Loans and finance leases Stockholders' equity 31.12.2018 771.9 1.180.9

Your contact:

Dr Werner Lanthaler Chief Executive Officer

+49.(0).40.560 81-242 +49.(0).40.560 81-333 Fax werner.lanthaler@evotec.com