Evotec SE — Investor Presentation 2023

Nov 8, 2023

Resilient into the Future of Biopharma R&D

Evotec SE, 9M 2023 results call, 08 November 2023

Disclaimer

This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries) is being delivered on behalf of Evotec SE (the "Company", "we," "our" or "us"). This presentation is made pursuant to Section 5(d) and/or Rule 163B of the Securities Act of 1933, as amended, and is intended solely for investors that are qualified institutional buyers or certain institutional accredited investors solely for the purposes of familiarizing such investors with the Company. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy Evotec securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No representations or warranties, express or implied, are made as to the accuracy or completeness of the statements, estimates, projections or assumptions contained in the presentation, and neither the Company nor any of its directors, officers, employees, affiliates, agents, advisors or representatives shall have any liability relating thereto.

Cautionary Note Regarding Forward-Looking Statements

This presentation contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business operations and financial performance and condition. Many of the forward-looking statements contained in this presentation can be identified by the use of forwardlooking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "should," "target," "would" and other similar expressions that are predictions of or indicate future events and future trends, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forwardlooking statements due to a variety of factors. The forward-looking statements contained in this presentation speak only as of the date of this presentation, and unless otherwise required by law, we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

Welcome! The Management Team

Werner Lanthaler CEO

Laetitia Rouxel CFO

Matthias Evers
CBO

Craig Johnstone COO

Cord Dohrmann CSO

1. Highlights

• 1. Financials 9M 2023 & Guidance 2023
• 1. Science & Operations 9M 2023
• 1. ESG, Outlook

Going strong again, with the cyber-attack in the rear mirror

Highlights & lowlights in Q3 / 9M

• 9M 2023 with 14% revenue growth1 ; EBITDA growth of 13%, despite cyber-attack
• Next major collaboration agreement with BMS in Neurodegeneration in June
• Continued validation of Just Evotec Biologics; very good pipeline momentum
• − Tech-Alliance with Sandoz in May
• − Second Agreement with U.S. Department of Defense in July
• − Toulouse J.POD: On track for completion in H2 2024
• Strong progress in pipeline building with our partners
• − Bayer: Start Phase I kidney disease programme / BMS: Positive Phase I read-out for BMS-986419 / Phase III & registration (CHN) JingXin in insomnia EVT201/ Conba: Start of Phase I for EVT401 in China / Kazia: Encouraging data in ongoing Phase I trial with EVT801 / Exscientia: Decision to de-prioritise EXS21546;
• − Equity Portfolio: Tubulis (new BMS collaboration); Topas Therapeutics (initiation Phase IIa for TPM 502); Carrick (FDA clearance of IND for CT7439 as well as first patient dosed in Phase II combo trial of CT7001 with Elacestrant in Advanced Breast Cancer);….
• Together with Novo Nordisk, creation of "LAB eN²", to translate academic research in cardiometabolic diseases as well as rare blood and endocrine disorders; Initiation of 65LAB in Singapore (after period-end)
• SBTi validates and approves near-term emission reduction targets (after period-end)

Action Plan 2025 on track

Action Plans in numbers

		2021
2009	2012	2018	Action Plan 2025
Action Plan 2012 Restructure for growth	Action Plan 2016 Build innovation seeds	Action Plan 2022 Aspire global leadership	Leadership in data, science, multimodality & access
2010	2015	2020	2025
• Revenues: € 55 m	• Revenues: € 128 m	• Revenues: € 501 m	• Revenues: > € 1 bn
• Adj. EBITDA: € 2 m	• Adj. EBITDA: € 9 m	• Adj. EBITDA: € 107 m	• Adj. EBITDA: > € 300 m
R&D investments1 • : € 2 m	R&D investments1 • : € 18 m	R&D investments1 • : € 69 m	R&D investments1 • : > € 100 m
Co-owned projects2: 6 •	Co-owned projects2: 49 •	Co-owned projects2: 118 •	Co-owned projects2: > 250 •
• Employees: 519	• Employees: 1,000	• Employees: 3,572	• Employees: > 5,000
Underlying external challenges
Financial crisis	MERS Avian Influenza	Brexit COVID-19	War in Cyber Israel Gaza Ukraine attack war

1. Highlights

• 1. Financials 9M 2023 & Guidance 2023
• 1. Science & Operations 9M 2023
• 1. ESG, Outlook

Strong Q1 performance sees continuation in Q3 after cyber-attack

9M 2023 revenue composition by quarters/months (€ m)

Business dynamics back

• Q1 2023 first quarter ever with revenues exceeding € 200 m
• Just Evotec Biologics ahead of plan based on closing of techpartnership with Sandoz
• Cyber-attack with temporary, but significant impact in Q2/Q3 for drug discovery / ongoing issues in development business
• Missed opportunities of € ~70 m (net) versus plans
• Q3 revenues again close to € 200 m

Strong balance sheet as solid base for strategy execution

Balance sheet and Cash-flow items 9M 2023 – Evotec SE & subsidiaries

Balance sheet total	Equity ratio	Operating Cash-flow
in € m vs. 31 Dec 2022	in % vs. 31 Dec 2022	in € m vs. 9M 2022
2,254.5	50.6	15.2
2,257.2	52.6	236.6
Net Debt ratio x adjusted EBITDA vs. 31 Dec 2022	Liquidity position in € m vs. 31 Dec 2022	Capex, Equity investments & Acquisitions in € m vs. 9M 2022
(0.3)	613.4	165.8
(2.1)	718.5	228.0

9M 2023 – continuing double digit growth

Income statement KPIs 9M 2023 – Evotec SE and subsidiaries

in € m1	9M 2023	9M 2022	Change	Drivers
Revenues	580.1	510.8	14%	Precision Medicine and Biologics
of which Just – Evotec Biologics (JEB)	74.1	27.9	>160%	Sandoz alliance & 2nd DoD contract
Milestones, Upfronts & Licenses	4.8	8.1	(41)%	Cyber-attack causing delays
Revenues Q1	213.6	164.7	30%	New alliances with strong momentum
Revenues Q2	170.2	172.2	(1)%	€ 70 m (net) missed opportunities (one-off)
Revenues Q3	196.3	173.9	13%	Strong demand in most areas
Gross margin	23.7%	17.9%	580 base pts.	Higher contribution from new collaborations
Gross margin excl. JEB	26.7%	27.3%	(60) base pts.	JEB ramping up capacity
Unpartnered R&D expense	45.7	50.7	(10)%	Moderate investments due to cyber-attack
Adjusted Group EBITDA2	50.2	44.6	13%	Impacted by missed opportunities in Q2, normalization in Q3
of which Just – Evotec Biologics (JEB)	(5.7)	(11.5)	Nm	Technology Partnership covering capacity expansion
Adjusted Group EBITDA2 Q1	34.3	18.9	81%	BMS, Janssen, Demand for PanOmics platform
of which Just – Evotec Biologics (JEB)	(11.5)	(7.0)	Nm	Completion of pilot studies
Adjusted Group EBITDA2 Q2	(0.4)	14.6	Nm	Cyber incident
of which Just – Evotec Biologics (JEB)	20.0	(13.0)	Nm	Sandoz, Department of Defense (DoD)
Adjusted Group EBITDA2 Q3	16.3	11.0	47%	Higher margin in underlying base business
of which Just – Evotec Biologics (JEB)	(14.2)	(20.0)	Nm	JEB ramping up capacity

1 Differences may occur due to rounding

2 Adjusted EBITDA: Net income (loss) adjusted for interest, taxes, depreciation and amortization of intangibles, impairments on goodwill and other intangible and tangible assets, total non-operating results, change in contingent consideration (earn-out) and items that in magnitude, nature or occurrence would distort the presentation of the financial performance of the Group.

Recovery in H2 ongoing – good indications into 2024

Guidance 2023 unchanged

	Guidance 20234	YE 2022	Comments
Group revenues (at constant fx-rates1 )	€ 750– 790 m (€ 765 – 805 m)	€ 751.2 m	At least stable despite approx. € 70 m one-off effect
Unpartnered R&D2	€ 60 – 70 m	€ 69.9 m	Stable
Adjusted EBITDA3 (at constant fx-rates1 )	€ 60 – 80 m (€ 70 – 90 m)	€ 101.0 m	Mitigation of large parts of approx. € 90 m one-off effect

Approx. € 200 m continued capital expenditures for enabling and supporting growth (e.g., capacity expansion in biologics manufacturing, CO2 emission reduction, iPSC, E.MPD, …)

Identified efficiencies

Better, safer, more agile

1 Value Protection Programme (VPP)

2 Optimised capital allocation

Bouncing back better

• Leaner processes
• − E.g. focused ERP-System1 build-out in UK and Toulouse
• Headcount & Footprint optimisation
• − E.g. capacity optimisation / mobility in Marcy (Lyon)
• Focused investments
• − E.g. cost containment in SG&A and R&D

Efficiency gains of € 25 m identified

1. Highlights

2. 1. Financials 9M 2023 & Guidance 2023
3. 1. Science & Operations 9M 2023
4. 1. ESG, Outlook

Paradigm-shifting platforms are key growth drivers

Revenue distribution 9M 2022 versus 9M 2023

Pipeline building with PanOmics is just at the beginning

Shared economy model KPIs

Total R&D costs since 2010

€ ~450 M

About € 2.5 m invested per partnered project -

Most projects break-even well before clinical trials

Total number of pharma deals / partnered product opportunities

The growing "iceberg" of first & best-in-class treatment options

140 co-owned projects

		Neuroscience & pain				Oncology				Metabolic diseases			Inflammation & Immunology1			Virology, Anti-bacterial & Global health
Approved																					SK Bio
	Ph III	Jingxin
	Ph II					Carrick								Topas
Clinical		Centrexion	ND			Carrick					Bayer
	Ph I	BMS	ND			Kazia	Exscientia	Immunitas			Sernova			Conba	Exscientia	Topas					NIH
		ND	ND			ND	ND	EVT			ND	EVT
		ND	ND			ND	ND	EVT	EVT		ND	EVT		ND
		ND	ND			ND	ND	EVT	EVT		ND	EVT		ND
		ND	ND			ND	ND	EVT	EVT		ND	EVT		ND
		ND	ND			ND	ND	EVT	EVT		ND	EVT		ND			ND	ND		EVT
Pre-clinical &		ND	ND			ND	ND	EVT	EVT		ND	EVT		ND			ND	ND	ND	EVT	EVT
Discovery		ND	ND	ND		ND	ND	ND	EVT		ND	EVT	EVT	ND			ND	ND	ND	EVT	EVT
		ND	ND	ND	EVT	ND	ND	ND	EVT		ND	EVT	EVT	ND			ND	ND	ND	EVT	EVT
		ND	ND	ND	EVT	ND	ND	ND	EVT	EVT	ND	EVT	EVT	ND	EVT		ND	ND	ND	EVT	EVT
		ND	ND	ND	EVT	ND	ND	ND	EVT	EVT	ND	ND	EVT	ND	EVT		ND	ND	ND	EVT	EVT
	>50
>120
	Partnered Pipeline Unpartnered Pipeline Equity Pipeline Bridges Pipeline

1 Also includes Women's Health, Respiratory projects The Equity Pipeline does not contain programs from EVT/partners that are not publicly disclosed Status as of 30 June 2023

Co-owned pipeline building progressing

Selected pipeline news within next 12-24 months

Phase III & registration (CHN) JingXin in insomnia (EVT201)

Initiation Phase II with BMS in CNS (EVT8683)

Initiation Phase II with Bayer in kidney disease, targeting Semaphorin-3A ("Sema3A")

Phase II data with Kazia in Oncology (EVT801)

Phase I data in Chikungunya virus (EVT894)

Phase I initiation with BMS in CNS

Phase I initiations with kidney diseases with other partners

Phase I initiation with BMS in Oncology

Phase I initiation with Sernova in Diabetes

Progress of multiple co-owned equity companies (e.g., Topas, Tubulis, Carrick, Exscientia, …)

J.POD – the paradigm shift to continuous manufacturing

Progress and status

J.POD Toulouse – Shell completed (November 2023)

Ground-breaking for second new biologics facility "J.POD Toulouse" in H2 2022

Building of shell and installation of PODs completed – on track for completion in H2 2024

J.POD Toulouse – Construction ground (November 2022)

Starting Business Development for smooth ramp up in 2025

Just – Evotec Biologics

Key achievements 2021-2023

1. Highlights

2. 1. Financials 9M 2023 & Guidance 2023
3. 1. Science & Operations 9M 2023
4. 1. ESG, Outlook

Near-term science-based targets validated & approved

First goal achieved

"Evotec SE commits to reduce absolute Scope 1 and 2 GHG emissions 50% by 2032 from a 2021 base year. Evotec SE also commits to increase annual sourcing of renewable electricity from 25% in base year to 100% by 2026. Evotec SE commits to reduce Scope 3 GHG from purchased goods and services and capital goods 72% per revenue over the same period. Evotec also commits that 80% of its suppliers by emissions covering purchased goods and services and capital goods will have science-based targets by 2027."

Science-based targets balancing growth and responsibility for the planet

• 100% Renewable electricity by 2026 (LTI goal 2023)
• 50.4% reduction of Scope 1 and 2 emissions by 2032, despite disproportionately faster growth than industry average
• Evotec will act as multiplier with its supplier engagement program

The work gets visible

Improved perception by all relevant rating agencies

Keeping the promise

ESG & Sustainability – Goals 2023 and status

• Environment

Approve and implement the SBTi initiative action plan at all Evotec sites and invest one percent of 2022 revenues to achieve SBTi targets – on target

• Social

Conduct engagement survey in 2023. Define and communicate a management plan for 2024 and beyond based on results of engagement survey – Launch 9 November

• Governance

Engage sustainability champions at each site to create governance structures fostering environmental and social goals as well as site specific sustainability projects – on track

Great expertise and governance in challenging times

Rupert Vessey

Rupert Vessey Suggested to be nominated for membership in Supervisory Board at Annual General Meeting in June 2024

• Rupert Vessey is Chief Scientist and Executive Partner at Flagship Pioneering
• Rupert served as Executive Vice President and President, Research at Celgene and later BMS (2015 – 2022)
• From 2005 to 2015, Rupert spent ten years at Merck, where he held leadership roles in the company's Early Development, Discovery Sciences, Drug Discovery and Informatics
• Prior to Merck, he spent five years at GlaxoSmithKline involved in drug discovery, and early clinical development

Executing to accelerate growth along Action Plan 2025

Selected major newsflow 2023

PanOmics	• New strategic partnerships and expansions of co-owned alliances • New clinical trial initiations, e.g. Bayer • Significant progress of later stage co-owned pipeline
iPSCs	• New strategic partnerships, e.g., Janssen • Progression of partnered cell therapy assets, e.g., Sernova • Expansion of internal portfolio of cell therapy assets
Just – Evotec Biologics	• Significant expansion of order book for J.POD Redmond, WA (US) Progression of construction J.POD Toulouse, France (EU)1 • • Evaluation of global network of J.PODs
End-to-End Shared R&D	• Conclude post-cyber business recovery – on track for AP 2025 • Integration of Evotec DS Germany
Group	• Science-based targets in place aligned with 1.5°C goal Highly impactful contribution to UN SDG 32 • • Spin-Offs and investments along building blocks of AP 2025

1 This project benefits from French government funding as part of the Investments for the future Programme (programme d'investissements d'avenir in French) and is also supported economically by the Occitanie Region and Toulouse Métropole.

2 UN Sustainable Development Goal 3: Improve health and well-being with main targets for us on cardiovascular diseases, diabetes, women's health, fight against infectious diseases and pandemic preparedness

Upcoming important dates

Financial calendar 2023/2024

2nd Capital Markets Day 2023	15 November 2023
Jefferies Healthcare Conference, London	16 November 2023
German Equity Forum, Frankfurt/Main	27 November 2023
Berenberg European Conference, Pennyhill Park	06 December 2023
FY 2023 results / Sustainability Report	24 April 2024
Q1 2024 results	22 May 2024
Annual General Meeting 2024	10 June 2024
H1 2024 results	14 August 2024
Capital Markets Day	October 2024
9M 2024 results	06 November 2024

Looking forward to seeing you in Hamburg next week

CMD 2023 – 15 November

Volker Braun SVP Head of Global Investor Relations & ESG

+49 (0) 151 1940 5058 (m) volker.braun@evotec.com www.evotec.com