Evotec SE — Investor Presentation 2021

Mar 16, 2021

The data-driven R&D Autobahn to Cures

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:

Just - Evotec Biologics (former Just.Bio) was acquired effective 02 July, 2019. Effective 01 April 2020, Evotec GT started its operations. Furthermore, the acquisition of the assets (land and buildings) and people of BBS Biopark in Toulouse was effective on 01 July 2020. All three Units were fully consolidated in the group numbers from the respective dates onwards

Welcome The Management Team

Werner Lanthaler CEO

Craig Johnstone COO

Cord Dohrmann CSO

Highlights & Strategy 1

• Financial performance 2020 2
• Scientific and operational progress 3
• Guidance 2021 4

The data-driven R&D Autobahn to Cures

Highlights & lowlights 2020

Highlights

• Very good progress within co-owned pipeline on our way to build long-term royalty-pool
• New and extended EVT Innovate partnerships in e.g. kidney disease, protein degradation, rare diseases,…
• Just Evotec Biologics gaining strong momentum (+ 35% like-for-like); Construction of J.POD® 1 US on track to start operations in H2 2021; Initiation of J.POD® 2 EU still in H1 2021
• New and extended EVT Execute integrated drug discovery & development alliances
• Successful integration of Evotec GT (Gene Therapy)
• Acceleration of innovation platforms EVOcells, EVOpanOmics, EVOpanHunter, etc…
• Good progress of equity-based co-ownership engagements and BRIDGEs
• Strategic vision endorsed with Mubadala and Novo Holdings investments (together € 250 m)

Lowlights

• Delay of milestones and start of clinical trials due to Covid-19
• Impairment of rights to future sales of Haplogen assets

Guidance comfortably met – despite COVID-19 pandemic

Results and guidance 2020

	Final results 2020	Latest guidance November 2020	Initial guidance March 2020
Group revenues1)	€ 500.9 m	480 m € 440 –	480 m € 440 –
Unpartnered R&D2)	€ 46.4 m	Approx. € 45 m	Approx. € 40 m
Adjusted Group EBITDA3)	€ 106.6 m	120 m € 100 –	120 m € 100 –

1) Group revenues including revenues from recharges (IFRS 15 material recharges)

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

3) Adjusted EBITDA before contingent considerations and excluding impairments on goodwill, other intangible & tangible assets as well as the total non-operating result

New technologies, more precision, higher speed and efficiency

Evotec today – 14 Sites & close to 4,000 employees

(Campus Curie)

2st

> 500 new top "drivers" joined the data-driven R&D Autobahn for Cures Growth of talent in 2020

Top talents in important leadership roles enable long-term vision and acceleration Selected recent new hires

Industry dynamics support our vision of more precise and accessible medicine Growth drivers for the future

1) Reporterlink: RNA Analysis/ Transcriptomics Market by Product, Technology, Application, End User, COVID-19 Impact - Global Forecast to 2025, Evotec estimates

2) Deep Knowledge Analytics (DKA) titled 'Landscape of AI for Drug Discovery and Advanced R&D Q2 2019',, Evotec estimates

3) https://www.grandviewresearch.com/press-release/global-drug-discovery-outsourcing-market, Evotec estimates 4) https://www.gminsights.com/ Feb 2020, Evotec estimates

Multi-modality increasingly opens new doors to cures

Small molecules, biologics, cell and gene therapy

• 1) https://www.reportsanddata.com/report-detail/biologics-market, Evotec, estimates
• 2) https://www.grandviewresearch.com/industry-analysis/gene-therapy-market, Evotec estimates
• 3) https://www.grandviewresearch.com/press-release/antisense-rnai-therapeutics-market, Evotec estimates
• 4) https://www.grandviewresearch.com/industry-analysis/stem-cells-market, Evotec estimates

The R&D Autobahn to Cures is data-driven

The acceleration of multi-omics data generation "Omics Tsunami"

Sequencing costs dropped dramatically4)

AI/ML entering into exponential growth phase5)

Normalised number (2009 = 0; 2019 = 100)

"…we are just at the beginning"

Action Plan 2025 – The data-driven R&D Autobahn to Cures

Precision, AI/ML, and excellent execution accelerate our path to co-ownership

Unique business model - Co-ownership (EVOroyalty)

• 1 Multi-modality Innovation Platforms EVOiR&D: Integrated drug discovery & development EVOpanOmics & EVOpanHunter: Data-driven precision medicine
• 2 Indication-driven target pipelines P2X3, B1, A2a,…
• 3 Just Evotec Biologics (EVOaccess) From J.HAL to J.Design and a network of J.POD®s
• 4 BRIDGEs, operational ventures (EVOequity) Lab282, Lab150, Exscientia, Topas, Breakpoint, …

Highlights & Strategy Financial performance 2020 Scientific and operational progress Guidance 2021 1 2 3 4

Reaching € 500 m landmark in a challenging year

Key financials 2020: Condensed income statement (IFRS)

in € m1)	2020 Actual	2019 Actual	% vs. 2019
Revenues from contracts with customers2)	500.9	446.4	+12%
Gross margin	25.1%	29.8%
• R&D expenses	(63.9)	(58.4)	+9%
SG&A expenses •	(77.2)	(66.5)	+16%
• Impairment result (net)	(3.2)	(11.9)	-73%
Other op. income (expenses), net •	67.2	66.6	1%
Operating result	48.5	62.6	-22%
Adjusted Group EBITDA3)	106.6	123.1	-13%
Net income	6.3	37.2	-83%

• Strong revenue growth of 12% despite COVID, delays in milestones, and unfavourable fx rates (at constant fx rate vs. 2019, revenues would stand at € 507.7 m).
• Strong performance in base business (+16%)
• Gross margin affected by lower milestones and end of Sanofi subsidy for Toulouse
• Unpartnered R&D up by 24% to € 46.4 m (2019: € 37.5 m) due to multiple platform projects & cell therapy
• At constant fx rate vs. 2019, adjusted EBITDA would stand at € 110.8 m

3) Adjusted EBITDA before contingent considerations and excluding impairments on goodwill, other intangible & tangible assets as well as the total non-operating result

¹⁾ Differences may occur due to rounding

²⁾ Including IFRS 15 material changes

Very convincing performance in both segments

Condensed income statement based on segments for FY 2020

in € m1)	EVT Execute	EVT Innovate	Inter segment elimination	Not allocated2)	Evotec Group
External revenues	373.4	105.7	–	21.8	500.9
Intersegment revenues	115.8	–	(115.8)	–	–
Gross margin	26.0%	8.7%	–	–	25.1%
R&D expenses •	(4.4)	(69.9)	10.4	–	(63.9)
• SG&A expenses	(61.8)	(15.5)	–	–	(77.2)
• Impairment result (net)	–	(3.2)	–	–	(3.2)
• Other op. income (expenses), net	16.6	50.6	–	–	67.2
Operating result	77.3	(28.8)	–	–	48.5
Adjusted EBITDA3)	129.3	(22.7)	–	–	106.6

• EVT Execute revenues up 16% due to strong base business, overcompensating for moderate net negative effect of portfolio changes (Sanofi € -18.0 m; Just – Evotec Biologics, first half year (€ 16.3 m)
• EBITDA growth of 6% despite end of Sanofi subsidy, preparations for J.POD® 1 US and negative fx effects
• EVT Innovate revenues up 12% despite lower contribution from milestones. Growth driven by progress of BMS alliances and new partnerships
• EBITDA lower due to delayed milestone payments and higher investments for unpartnered R&D

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.

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

Positive trend continues in Q4

Q4 2020 results

in € m1)	Q4 2020 Actual	Q4 2019 Actual	% vs. 2019
Revenues2)	140.5	125.1	+12%
Gross margin	26.0%	27.2%	–
• R&D expenses	(17.9)	(17.1)	+4%
SG&A expenses •	(19.1)	(20.3)	-6%
Impairment result (net) •	(3.2)	–	–
• Other op. income (expenses), net	16.9	19.6	-14%
Operating result	13.2	16.2	-18%
Adjusted Group EBITDA3)	29.7	29.9	-1%

• Q4 revenues with 12% growth from strong base revenues. Milestone and upfront revenues were extraordinarily high in Q4 2019
• R&D increased as expected in anticipation of next growth steps
• Lower contribution from other operating income
• Good earnings quality: Adjusted EBITDA stable vs last year, despite end of Sanofi subsidy and reduced milestone momentum

• Strong adjusted EBITDA margin of 21%

• 1) Differences may occur due to rounding

• 2) 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

Organic growth continues at double-digit rates

Revenue bridge 2019-2020

^• Reported growth of 12%

• Cumulated portfolio changes (end of Sanofi subsidy, consolidation of Just – Evotec Biologics)
• fx effect: -1.5%
• Organic growth: 14%, despite lower income from milestones, upfronts and licenses

Organic EBITDA growth despite material mix effects

Adjusted EBITDA at constant exchange rates € 111 m

• Decline by 13% affected from portfolio, fx effects and lower contribution from milestones
• Cumulated portfolio changes (end of subsidy from Sanofi agreement, consolidation of Just – Evotec Biologics) with visible though anticipated effect: -14%
• fx effect: -3.4%
• Organic growth: 4.0% despite significantly lower contribution from milestones, upfronts and licenses
• EBITDA margin at constant fx rates: 21.8% (reported: 21.3%)

Strong balance sheet and cash position leaving room for strategic growth

Balance sheet – 31 Dec. 2019 versus 31 December 2020

Highlights & Strategy Financial performance 2020 Scientific and operational progress Guidance 2021 1 2 3 4

Precision medicine is our focus

Patient databases and models combined with EVOpanHunter/EVOpanOmics and Multi-modality

Fully invested pipeline, strongly gaining visibility in the next 18 months

Progress 2020 of drug candidates in advanced stages

Selected pipeline events

• 1. Phase IIb with Bayer in RCC (Eliapixant)
• 1. Phase II with Bayer in Overactive bladder (Eliapixant)
• 1. Phase II with Bayer in Endometriosis (Eliapixant)
• 1. Phase II with Bayer in Neuropathic pain (Eliapixant)
• 1. Phase II with BI in Oncology / Pain
• 1. Phase II with Bayer in Gynaecology (B1 antagonist)
• 1. Phase I with NIH in Chikungunya virus
• 1. Phase I with BMS in CNS
• 1. Phase I with Exscientia in Oncology (A2a)
• 1. Phase I with Sanofi in Immuno-oncology
• 1. Phase I with Sanofi in HBV
• 1. Multiple co-owned equity companies will progress in clinic (e.g. Topas, Forge, Carrick, Fibrocor, …)

	Molecule	Therapeutic Area/Indication	Partner	Discovery	Pre-clinical	Phase I	Phase II	Phase III
	EVT201	Insomnia (GABA-A)
	BAY-1817080	Chronic cough (P2X3)
	BAY-1817080	Overactive bladder
	BAY-1817080	Neuropathic pain
	BAY-1817080	Endometriosis
	CT7001	Oncology (CDK7)
	CT7001	Oncology (CDK7)
Clinical	EVT401	Immunology & Inflammation (P2X7)
	BAYxxx	Women's health
	BAY2328065	Gynaecology
	BI 894416	Asthma (not disclosed)
	BI 860585	Oncology (mTORC1/2)
	TPM203	Pemphigus Vulgaris (not disclosed)
	DSP-1181	Obessive-compulsive disorder (5-HT1A)
	CNTX 6016	Pain (CB2)
	EVT894	Chikungunya (Antibody)
	BAYxxx	Endometriosis (not disclosed)
	EVT801	Oncology (VEGFR3)
	APN411	Oncology – Immunotherapy
	EXS21546	Oncology (various programmes)
Pre-clinical	GLPGxxxx	Fibrosis (not disclosed)
	BAYxxxx	Nephrology (not disclosed)
	QRB001	Metabolic – Diabetes (not disclosed)
	BMSxxxx	Neurodegeneration (not disclosed)
	EVT895	HBV
	EVTxxxx	CNS, Metabolic, Pain …	>10 further programmes
	Various ND1) ND1)	Nephrology
	ND1)	Nephrology
	INDY inhibitor	PCOS Metabolic
	Various	Oncology
	ND1)	Oncology
	ND1)	Oncology – Colorectal cancer
	ND1)	Oncology – DNA damage response
	ND1)	Novel antibiotics
	ND1)	Novel antibiotics
	ND1)	Anti-bacterial
Discovery	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
	ND1)	Novel broad-spectrum antibiotic
	ND1)	Heart failure
	Various	Internal: Oncology, CNS, Metabolic, Pain & Inflammation	>40 further programmes

Continuously investing into precision medicine

Maintaining leadership with next generation discovery platforms

Molecular patient databases	Various cohorts	Various indications
Patient (iPSC) – derived disease models	Astrocytes Microglia	Oligodendrocytes Myelin	Natural killer cells T-cells	Clinical trial in dish Organs on chip
EVOpanOmics	High-throughput bulk sequencing Single-cell sequencing	Single nuclei sequencing Spatial transcriptomics	High-throughput proteomics Metabolomics	Next generation animal models
EVOAI/ML EVOpanHunter	SM Artificial intelligence HAL - Humanoid antibody library	Machine learning	Efficacy / tox prediction	Software development
Modalities	Cell therapy Gene therapy Novel Parovirus platform	Antisense (Secarna) Bifunctionals	Exosomes	Small molecules for RNA targeting Protein degradation New molecular glues AlloMod, ATAC
Small molecule Antibody	Abkine Cell therapy	Nucleoproteins/ASO rProtein	Genetic screen

Molecular patient databases generate significant value

Kidney disease data base (NURTuRE) delivered multiple high value partnerships

• Upfront payment: € 6 m
• Research funding

2016

• Milestones > € 300 m

• Tiered royalties

• Funded by Vifor: € 25 m

• 50% ownership on all projects

• Upfront payment: ND

• Research funding
• Milestones > € 150 m per product

• Tiered royalties

• Pipeline building initiated

• UF payment: ND

Q1 2021

• Research funding
• MS as well as tiered royalties

Evotec and Takeda unlocking the undruggable genome

RNA-binding small molecules: a complementary approach to antisense oligonucleotides

Evotec's proprietary RNA targeting platform is specifically designed to

• Identify RNA tertiary structural elements where SM are able to bind with sufficient selectivity and affinity
• Discover and develop suitable SM binders that potentially deliver orally available drugs

• Identify and deliver proof-of-target engagement for RNA structures for biologically active SM binders.

• Discover and develop RNA targeting small molecule therapeutics

• Research funding
• Milestones: US\$ 160 m per programme
• Tiered royalties

Excellent position for continued growth

Major developments in 2020 (selection)

• EVOiR&D:

• Multiple new and extended drug discovery and development agreements e.g. Austrianni, BI, Ildong Pharma, Rappta, STORM, Takeda
• High quality and high performance acknowledged through feedback, 90% repeat business, extensions and growth of existing, long-term partnerships

• 800 partners across the industry (~ 8% up compared to 2019)

• Invested in expansion of sites to support for further growth in all territories
• EVOaccess: Just Evotec Biologics
• Several new collaborations, DoD expansion
• Antibody Discovery capabilities boosted with Humanoid Antibody Library (J.HAL) and Alloy, complementing Evotec biology and disease area expertise
• J.POD® 1 US on track for opening in H2 2021
• J.POD® 2 EU initiated in Toulouse (France)
• EVOgenes: Successful start in gene therapy with R&D centre Evotec GT

The time is now for J.POD® 2 EU …

Rationale for J.POD® 2 in Toulouse, France1)

• Global demand for flexible biologics capacity and for more affordable access to medicines is accelerating
• J.POD®1 US in Redmond is on track and demand is strong, including co-owned pipeline
• Europe is the second largest biologics market, strong desire for local capacity and security of supply
• Toulouse footprint creates operational efficiency and design for multi-modality biological treatments such as cell therapy adds further synergy with EVT strategic needs

Leading in AI / ML driven biologics from discovery to manufacturing

Biologics Platform overview – AI / ML tools accelerate learning

Intense learning is focused on the most abundant, least expensive data – DNA sequence

Leading in Small molecule strong AI / ML data-driven integrated R&D

SM – From Concept to Proof of Concept – AI / ML tools accelerate learning

Data Surface linking Independent Data Chambers

Unique in the industry: high quality data at every stage in the value chain to de-risk projects, design modalities, create biomarkers, drive projects… (e.g. tox prediction)

Offering resonates with partners

Attraction, Extension, Retention

• Very robust demand for shared drug discovery & development
• Integrated offering translates in market share gains

• Referencing of satisfied customers as key marketing tool

• Integrated drug discover & development offering yields increasing "share of wallet"

• Faster and better results versus in-house infrastructures in the industry justify larger contracts

600 200 400 800 1,000

• Core KPI to measure partners' satisfaction

0

No of Customers

• Some follow-on projects delayed in 2020

2018 2019 2020

• Strong basis for double-digit growth

Highlights & Strategy 1

• Financial performance 2020 2
• Scientific and operational progress 3
• Guidance 2021 4

ESG & Sustainability – Committed to take action

Unique business model aligned with sustainable development goals

• #researchneverstops

…to develop more precise, accessible and affordable therapies for uncured diseases, underserved patients and a vast amount of people who have no access to modern and affordable medicine. – Our greatest contribution to the world.

• First action taken in 2020 to live up to our ESG values

• Commitment to set science-based climate targets (E)
• Signed the Diversity Charter (S)
• Launch of systematic supplier surveillance and whistleblowing platform EVOwhistle (G)

Strong growth continues while expanding investment into long-term upside

"The data-driven R&D Autobahn to Cures" – In numbers

1) At constant fx rates (2020: \$/€ 1.15; €/GBP 1.13) Revenues: € 565-585 m; EBITDA: € 115-130 m; 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 2020 of € 63.9 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

Strong year ahead

Guidance 2021

Very good top-line growth expected

• Assumption based on current orders, prospective milestone payments
• Total Group revenues € 550 - 570 m (€ 565 - 585 m at constant exchange rates¹ )

Strong EBITDA – despite massive investments

• Regardless of COVID-19, increasing expenses of promising R&D projects, ramp-up of Just Evotec Biologics business, expansion of J.POD® 1 capacities in US & J.POD® 2 in EU
• Adjusted Group EBITDA2) € 105 - 120 m (€ 115 -130 m at constant exchange rates¹ )

Accelerated R&D investments for growth

• Further expand long-term & sustainable pipeline of first-in-class projects & platforms
• Unpartnered Group R&D expenses of € 50 60 m3)

1) \$/€ 2020: 1.15; €/GBP 2020: 1.13

1) 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").

Strong news flow to be continued …

Selected latest news in Q1 and goals 2021

Important initial achievements in 2021

• Contract expansion with DOD on COVID-19
• Start clinical development of chikungunya (EVT894)
• Integrated multi-target alliance with Related Sciences
• Partnership with UKE for iPSC therapies for heart failure
• Partnership in Chronic Kidney Diseases with Chinook
• G-CON Manufacturing & Just Evotec Biologics complete installation of cleanroom PODs® for J.POD® 1 US
• Takeda RNA strategic alliance

Next steps

• JPOD® 2 EU to be initiated in Toulouse
• Acceleration of AI/ML partnering across all modalities
• J.POD® 1 US to open in H2 2021
• Partnerships based on own R&D projects and platforms
• New clinical trials and progress in the co-owned pipeline
• Equity investments and initiation of new BRIDGEs

Important next dates

Financial calendar 2021

Annual Report 2020 25 March 2021

Virtual CMD 2021 20 April 2021

Quarterly Statement Q1 2021 11 May 2021

Virtual Annual General Meeting 2021 15 June 2021

Half-year 2021 Interim Report 11 August 2021

Quarterly Statement 9M 2021 11 November 2021

Please click here for the annual report 2020

Back-up // Additional Financial information

Continuously strong revenues, slight GM decline due to different business mix

Revenues & Gross margin

Decreasing gross margin (GM) due to lower milestone-level

Overall growth and acquisitions reflected

R&D and SG&A expenses overview, in € m

R&D: Focus on metabolic diseases, oncology, and platforms projects

SG&A increase due to overall growth and acquisitions

Expansion of equity portfolio affects net result, but holds great value potential

Investments in growth strategy set to pay off in future

• Decline of net result affected from investments in growth of all building blocks and support functions
• Impairment development influenced by extra-ordinary effect in 2019
• Higher losses from affiliates is a function of a growing and maturing equity portfolio in order to create value in the long run
• Other non-operating result driven by fx losses

Strong balance sheet with nearly 50% equity ratio

Balance sheet overview, in € m

Asset base increased due to higher liquidity from capital increase and growing PPE capex

Strong equity ratio at 49% due to capital increase in October

Healthy DSO growth better than peers' standards

DSO1) development

• End of Sanofi subsidy and Covid-19 related (temporary) eased payment terms for partners affected year-over-year comparison only temporarily
• Trend reversal started in Q3 already and saw continuation in Q4
• Accounts receivables as % of revenues well below industry average

Strong balance sheet is the basis for future growth

Net debt / EBITDA ratio close to zero

• On a comparable bases (w/o IFRS 16), Evotec shows a stable and strong Net Debt / Net Cash ratio since Q3'18. Q3'17 influenced by Aptuit acquisition

• Increase of net debt in 2020 largely attributable to the financing of J.POD® 1 US, plus further draw down of R&D related loans
• IFRS 16 introduction has lead to arithmetically higher ratios due to the inclusion of lease obligations in debt position
• Capital increase from October 2020 led to massive improvement in ratio for Q4'20 adding further headroom within balance sheet in case financing for further growth required

Liquidity growth from capital increase lays the foundation for further growth Liquidity bridge FY 2020 vs YE 2019, in € m