Evotec SE — Investor Presentation 2022

May 11, 2022

Land and Expand

Cautionary statement regarding forward-looking statements

Information set forth in this presentation contains forward-looking statements, which involve a number of risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as "anticipate", "believe", "could", "estimate", "expect", "goal", "intend", "look forward to", "may", "plan", "potential", "predict", "project", "should", "will", "would" and similar expressions. 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. Given these risks, uncertainties, and other factors, you should not place undue reliance on these forward-looking statements.

Welcome

The Management Team

"I have spent my career as a scientist and consultant in life sciences on the confluence of biology, chemistry, and technology more broadly, i.e., data, AI/ML as well as automation.

Evotec is uniquely positioned to capitalize on this opportunity as we enter a new era of science and disease understanding." Matthias Evers

Agenda

Highlights

Financial performance Q1 2022

Scientific and operational performance Q1 2022

Outlook and Guidance 2022

Good start and strong performance in all building blocks

Q1 2022 – Highlights & lowlights

Highlights

• Strong momentum in all areas
• New collaborations with Boehringer Ingelheim (iPSC) and Eli Lilly (metabolic diseases)
• Launch of E.MPD
• Bayer initiated Phase II of bradykinin receptor B1 BAY 2395840 in diabetic neuropathic pain
• Grant from BMBF to support clinical development of EVT075
• Further progress in neuroscience collaboration with Bristol Myers Squibb ("BMS")
• Expansion with JingXin for EVT201, submission of regulatory approval in China (after period-end)
• Expansion of EVOequity portfolio with investments in Centauri, IMIDomics & Tubulis (after period-end)
• Major expansion and extension of targeted protein degradation alliance with BMS (after period-end)

Lowlights

Termination of further development of P2X3 antagonist eliapixant by Bayer

Growth trajectory ahead of plan

Financials Q1 2022 & FY 2022 guidance

Improving momentum

• Group revenues up 24% (€ 164.7 m vs. Q1 2021: € 133.1 m)
  • Like-for-like growth of Group revenues (adj. for fx effects) up 19%
  • Like-for-like growth of base business (excl. milestones, upfront payments, licenses) up 25%
• Adjusted Group EBITDA3) of € 18.9 m down 11% (Q1 2021: 21.1 m) due to capacity expansion and unpartnered R&D
• Increased investment into unpartnered R&D expenses of € 16.6 m (Q1 2021: € 14.9 m)

Guidance confirmed

• Very good top-line growth expected
  • Total Group revenues € 700-720 m (2021: € 618 m) (€ 690-710 m at constant exchange rates1))

Accelerated R&D investments for sustained growth

• Unpartnered Group R&D expenses of € 70-80 m2) (2021: € 58 m)
• At least stable adj. EBITDA – investing in growth
  • Adjusted Group EBITDA3) € 105-120 m (2021: € 107.3 m) (€ 95-110 m at constant exchange rates1))

1) EUR/US\$ 1.18; EUR/GBP 0.86

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

Agenda

Highlights

Financial performance Q1 2022

Scientific and operational performance Q1 2022

Outlook and Guidance 2022

Very strong growth – On track for 2022 goals

Condensed income statement Q1 2022

in EUR m1)
Q1 2022	Q1 2021	% vs. 2021
164.7	133.1	24%
19.6%	23.1%	–
(18.1)	(18.5)	(2)%
(31.6)	(21.2)	49%
17.8	15.8	13%
0.5	6.8	(93)%
18.9	21.1	(11)%
(73.2)	52.7	nm

• Fx adj. Group revenue growth 19%
• 25% growth of base business
• Just Evotec Biologics +27% adjusted for accounting of upfront payment in previous year
• Unpartnered R&D as well as SG&A expenses up - within expected ranges
• Adj. EBITDA down 11% due to expansion of capacity
• Net income influenced by non-cash effect of share price development of Exscientia (EVOequity)

1) Differences may occur due to rounding

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

Very dynamic organic growth in base revenues

Revenues & Gross margin overview

Integrated platform fostering growth acceleration

Segment information Q1 2022 – Evotec SE and subsidiaries

in EUR m1)

	EVT Execute	EVT Innovate	Inter segment elimination	Evotec Group
Revenues	174.5	35.9	(45.8)	164.7
Gross margin	19.7%	5.6%	–	19.6%
 R&D expenses	(1.0)	(21.2)	4.0	(18.1)
 SG&A expenses	(25.2)	(6.3)	–	(31.6)
 Other op. income (expenses), net	6.8	11.0	–	17.8
Operating income	15.0	(14.5)	–	0.5
Adjusted Group EBITDA2)	32.2	(13.4)	–	18.9

• EVT Execute: 27% revenue growth including inter-segment revenues. Intersegment-revenue +43% implies accelerating demand for integrated offering; 23% growth of external revenues driven by strong base business
• EVT Innovate: Strong revenue growth of 27% driven by demand for precision medicine platforms

Adjusted Group EBITDA

• capacity expansion and increased expenses for unpartnered R&D
• Positive fx effect of € 2.4 m
• Adj. EBITDA of EVT Execute +14%

1) Differences may occur due to rounding

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

Strong balance sheet and cash position

Balance sheet – 31 March 2022 versus 31 December 2021

Balance sheet total in € m 2,185.0 2,235.2	Equity ratio in % 59.9 61.6	 Strong equity ratio at 60%  Leverage ratio remained stable with (5.5)x EBITDA versus year-end; excellent financial flexibility to support growth  Liquidity as of Q1 2022
Net Debt / adjusted EBITDA1)	Liquidity in € m	€ 854.8 m, as reduction of receivables compensate for capex
(5.5) (5.5)	854.8 858.2

Agenda

Highlights

Financial performance Q1 2022

Scientific and operational performance Q1 2022

Outlook and Guidance 2021

Landing and expanding meaningful partnerships

Landmark develpments at the beginning of 2022

 Land…  Eli Lilly: Discovery of potential drug candidates for the treatment of diabetes and chronic kidney diseases from targets identified by Lilly or Evotec
 Land again…  Boehringer Ingelheim: iPSC-based disease modelling for ophthalmologic disorders, supported by EVOpanOmics platform, to identify small molecules able to modulate disease
 …and Expand  BMS: Massive extension and expansion of partnership with Bristol Myers Squibb in targeted protein degradation, originally signed in 2018

Delivering breakthrough therapies via targeted protein degradation

Drugging the undruggable via molecular glues

"Molecular glue degraders represent the most important innovation in small molecules in recent history. Industrialized omics combined with AI/ML will help garner the full potential."

Cord Dohrmann, Evotec

Unique potential translates into a strong engagement industry

BMS & Evotec – Global Leadership in TPD

• The targeted protein degradation enabling technologies market, anticipated to be worth over \$ 3.3 bn by 2030 (CAGR of around 27%)
• Partnership activity has grown significantly between 2014 and 2021 R&D agreements (25%) and research agreements (23%) emerged as the most popular types of partnership models
• > \$ 5 bn has been invested by private & public investors since 2014
• >180 investors have actively financed projects / initiatives in this domain

Public (> \$ 25 bn mkt. cap) Public (< \$ 25 bn mkt. cap) Private / subsidiary Strategic collaboration and/or license agreement

Moving from exploration to a long-term strategic partnership

Strategic expansion of a successful partnership in targeted protein degradation

Developing a pipeline of breakthrough therapies based on molecular glue degraders

• 8-year extension and significant expansion of original agreement signed in 2018
• Collaboration leverages Evotec's EVOpanOmics and EVOpanHunter platforms including AI/ML capabilities
• Upfront payment of \$ 200 m
• Deal potential of > \$ 5 bn, milestone based payments
• Tiered royalties for each programme

Scope of deal places BMS & Evotec ahead of key players

Analysis of selected licensing deals – strong momentum in the last 2 years

Targeted Protein Degradation opens a new path to fight disease

Mechanism of Action of targeted protein degraders

Drugging the undruggable harbours enormous potential

Vast majority of the proteome is currently not addressed by small molecules

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Sources:https://cen.acs.org/pharmaceuticals/drug-discovery/quest-drug-undruggable/96/i26;https://www.nature.com/articles/nrd892?proof=t https://www.rootsanalysis.com/reports/view\_document/protein-degradation-market/289.html

Rapidly expanding therapeutic space reflects the potential of TPD

150 TPD projects currently in development

Molecular glues are the more attractive degraders

Glues are currently under-represented in the TPD pipeline

	Molecular glues	PROTAC
Drug like-ness
Pharmacological properties
Synthetic tractability
Discovery path	Challenging	Rational design

BMS is a leader in targeted protein degradation

Molecular glue targeted protein degraders on market and in clinical development

Company	Degrader	Target	Indications	E3 ligase	Highest phase
	CC-220 (Iberdomide)	IKZF1/3	Multiple Myeloma	CRBN	Phase II
	CC-92480	IKZF1/3	Multiple Myeloma	CRBN	Phase II
	CC-90009	GSPT1	AML	CRBN	Phase I
	CC-99282	IKZF1/3	Chronic myeloid leukaemia, non Hodgkin lymphoma	CRBN	Phase I
	CC-91633	CK1a	AML	CRBN	Phase I
	CFT7455	IKZF1/3	MM	CRBN	Phase I
	BTX1188	IKZF1/3 GSPT1	HM, Solid tumours	CRBN	Phase I
	DKY709	IKZF2	Solid tumours (NSCLC)	CRBN	Phase I

Strong sales

Revlimid & Pomalyst together > \$ 15 bn Sales in 2021

Strong pipeline

• 5 CELMoD®s and 1 PROTAC in clinical development
• 2 PROTACs and 5 CELMoDs in full discovery

Nature Reviews Drug Discovery volume 21, pages181–200 (2022); AML = Acute myeloid leukemia

MM = Multiple myeloma ; HM = Hematologic malignancies

Unbiased and systematic discovery of molecular glues

From exploratory to strategic partnership

Selecting the most promising molecules via Omics profiling

EVOpanOmics – High performance transcriptome and proteome analysis as the starting point

High performance proteomics

Unprecedented scale and protein coverage

High performance transcriptomics

Unprecedented throughput and sequencing depth

Billions of datapoints require AI/ML-driven analytics

EVOpanOmics & EVOpanHunter

Systematic pursuit of TPD just at the beginning …

Harnessing various mechanisms of protein degradation

Agenda

Highlights

Financial performance Q1 2022

Scientific and operational performance Q1 2022

Outlook and Guidance 2022

Keeping the promise

ESG & Sustainability – Measures taken in Q1 2022

Starting final phase of SBTi target setting process

Start of final phase of SBTi alignment project: Scope 3 emission assessment

Expansion of investments in women's health as contribution to SDG3

Setback of eliapixant does not distract from overall mission

Intensified stakeholder dialogue

Governance roadshow in February: Ten meetings of Iris Löw-Friedrich, Chairwoman of Supervisory Board, with institutional investors and proxy advisors

Significant growth step up and investments towards AP 2025

Guidance 2022

	Guidance 2022	YE 2021	Implied growth at midpoint
Group revenues constant fx-rates1)) (at	720 m € 700 – 690 710 m) (€ –	€ 618.0 m	~15%
R&D2) Unpartnered	80 m € 70 –	€ 58.1 m	~30%
Adjusted EBITDA3) (at constant fx-rates)	120 m € 105 – (€ 95 – 110 m)	€ 107.3 m	At least stable

Our mid-term aspirations are "…just the beginning"

2020-2025e Key Performance Indicator goals

Setting the pace to accelerate growth along Action Plan 2025

Selected key events to watch 2022

	R&D efficiency platforms	 Undisrupted growth in line with AP 2025; Continued double digit growth of base business (EVOiR&D)  Significant capacity and value chain expansion for all modalities and sites
	Precision medicine platforms	 New strategic partnerships, important milestones, and expansions of co owned alliances; Multiple clinical trial initiations and progression of co owned pipeline; (EVOroyalty)  Spin-Offs and investments along Building Blocks of AP 2025 (EVOequity)
	Just – Evotec Biologics	 Start of production J.POD® Redmond, WA (US); Start of construction J.POD® Toulouse, France (EU)  Multiple new partnerships (EVOaccess)

Upcoming important dates

Financial calendar 2022

Quarterly Statement Q1 2022	11 May 2022
Virtual Annual General Meeting 2022	22 June 2022
Half-year 2022 Interim Report	11 August 2022
Quarterly Statement 9M 2022	09 November 2022

Your contact:

Volker Braun Head of Global Investor Relations & ESG

+49.(0).40.560 81-775 +49.(0).40.560 81-333 Fax volker.braun@evotec.com