Evotec SE — Investor Presentation 2023

Aug 29, 2023

Emerging stronger

Pipeline building gaining speed

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.

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Welcome! The Management Team

1. Highlights

• 1. Financials H1 2023 & Guidance 2023
• 1. Science & Operations H1 2023
• 1. ESG, Outlook

Positive developments outlast impact from cyber attack

Highlights & lowlights

Highlights

• 14% revenue growth despite cyber-incident; Record Q1 at 30% growth and strong profitability
• Collaboration with Janssen for development of innovative immune-based therapies in oncology
• Extension and expansion of strategic neurodegeneration partnership with BMS
• Strong progress in strategic targeted protein degradation partnership with BMS
• Continued validation of Just Evotec Biologics strategy
  • − Agreements with Sandoz and the U.S. Department of Defense (after period-end)
  • − PODs arrived in Toulouse construction on track for completion in H2 2024
• Milestone received with first patient dosed in Phase I study of Bayer kidney disease programme
• Grants received from The Bill & Melinda Gates Foundation and Open Philanthropy
• Equity Portfolio progressing: Tubulis (new BMS collaboration); Topas Therapeutics (initiation Phase 2a for TPM 502); Exscientia (positive Phase 1 data for EXS-21546)

Lowlights

• Cyber-attack in Q2
• Strategic de-prioritisation of women's health portfolio by Bayer

Action Plan 2025 on track despite external challenges

Action Plans in numbers

Growing milestone cascade towards a massive royalty pool Selected KPIs

1. Highlights

• 1. Financials H1 2023 & Guidance 2023
• 1. Science & Operations H1 202
• 1. ESG, Outlook

Strong start in Q1 – massive Q2 impact of temporary nature

H1 2023 revenue composition by quarters/months (€ m)

Business dynamics intact

• Very strong start to the year with 30% revenue growth in Q1 2023
• Just Evotec Biologics ahead of plan based on closing of Tech-Partnership with Sandoz
• Cyber-attack with temporary, but massive impact in Q2/Q3 for drug discovery / ongoing issues in development business
• Missed revenues of € ~70 m (net) versus plans

Q1 Q2 Missed revenues

H1 2023 – a coin with two sides

Income statement KPIs H1 2023 – Evotec SE and subsidiaries

in € m1	H1 2023	H1 2022	Change	Drivers
Revenues	383.8	336.9	14%	Precision Medicine and Biologics
of which Just – Evotec Biologics (JEB)	59.0	21.4	>>100%	Pilot studies recognised by Sandoz
Milestones, Upfronts & Licenses	4.3	6.8	(37)%	Cyber-attack affecting activity in Q2
Revenues Q1	213.6	164.7	30%	Strong demand for external innovation
Revenues Q2	170.2	172.2	(1)%	€ 70 m (net) missed revenues (one-off)
Gross margin	25.9%	18.8%	710 base pts.	Sandoz contract yields favourable return
Gross margin excl. JEB	25.3%	27.3%	(200) base pts.	on investments
Unpartnered R&D expense	29.0	33.3	(13)%	Q1 as planned, reduced spend in Q2
Adjusted Group EBITDA2	26.1	33.6	(22)%	Missed revenues not compensated
of which Just – Evotec Biologics (JEB)	8.5	(11.5)	nm	Technology validation
Adjusted Group EBITDA2 Q1	34.3	18.9	81%	BMS, Janssen, Demand for PanOmics
of which Just – Evotec Biologics (JEB)	(11.5)	(7.0)	nm	Completion of pilot studies
Adjusted Group EBITDA2 Q2	(8.2)	14.6	nm	Cyber incident
of which Just – Evotec Biologics (JEB)	20.0	(13.0)	nm	Sandoz, Department of Defense (DoD)

1 Differences may occur due to rounding

2 Adjusted EBITDA excludes changes of contingent considerations, income from bargain purchase and impairments on goodwill, other intangible and tangible assets as well as the total non-operating result

Strong balance sheet as solid base for future growth

Balance sheet and Cash-flow items H1 2023 – Evotec SE & subsidiaries

Resilient with strong comeback in H2

Guidance 2023

	Guidance 20234	YE 2022	Comments
Group revenues (at constant fx-rates1 )	790 m € 750– 805 m) (€ 765 –	€ 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 )	80 m € 60 – 90 m) (€ 70 –	€ 101.0 m3	Mitigation of large parts of approx. € 90 m one-off effect

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

Approx. 8% revenue one-off impact due to cyber-attack

Revenue guidance bridge

Manageable one-off effects and reflecting market sentiment

• Revenues (net), missed in Q2 2023, representing ~8% of initial revenue guidance
• Missed revenues largely related to development processes – awaiting remaining re-audits in August
• Visible partnering pipeline strong but seeing buyers' dynamics in more service-oriented business
• Earlier and better than anticipated effects from advanced payments mitigating parts of negative effects

Embracing the moment to learn, grow, and become even more efficient

Better, safer, more agile

Value Protection Programme (VPP) 1

Optimised capital allocation 2

Strategic review 3

Bouncing back better

• Securing liquidity and profitability
• Improving processes and systems
• Improving GMP compliance
• Preparing focused ERP build-out in UK and J.POD Toulouse (EU)
• Continued investments in Focus Areas for technology leadership

Identified savings potential of € 25 m in 2023

Offsetting one-off burdens

Adj. EBITDA guidance bridge

Better, safer & more efficient

• Net impact of one-off costs to re-build business and missed revenues of € 80 – 85 m
• Biggest impact from missing revenues of Development / API manufacturing business
• Value Protection Plan to build a leaner & safer organisation resulting in recurring savings as of 2024
• Adj. EBITDA guidance includes one-off items of € ~90 m

1. Highlights

2. 1. Financials H1 2023 & Guidance 2023
3. 1. Science & Operations H1 202
4. 1. ESG, Outlook

Scientific leadership translating in commercial success

Massive milestone & royalty pool "…just at the beginning"

Broadened and deepened strategic alliance in neurodegeneration

• Extension and expansion for eight more years
• \$ 50 m upfront payment, undisclosed license and performance milestone payments
• Tiered royalties of up to low double-digit percentage
• Total transaction value > US\$ 4 bn

Development of pipeline based on novel mechanism of protein degradation

• Extension by 8 years and significant expansion
• US\$ 200 m upfront payment
• Tiered royalties of up to low double-digit percentage

Collaboration with Janssen for development of innovative immune-based therapies in oncology

• Non-disclosed double-digit-million upfront payment
• milestone payments of up to US\$ 350 m per project; tiered royalties

Technology-Partnership for biosimilars development and manufacturing

• Portfolio of next-generation biosimilars
• Non-disclosed double-digit-million upfront; up to US\$ 640 m Development revenues
• Non-disclosed payments for progress into commercial manufacturing and royalties

• Total transaction value of up to US\$ 5 bn Exclusive strategic partnership for development of iPSC-based beta-cell replacement therapy in diabetes

• Combination of iPSC-based beta-cells with Sernova's Cell Pouch™
• € 20 m equity investment in Sernova
• Phase I planned for 2024

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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
	PhIII	Jingxin
Clinical	PhII	Bayer							Carrick					Topas
		Centrexion	ND			Exscientia			Exscientia		Bayer
	PhI	BMS	ND			Kazia			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

>140 co-owned projects leading to massive milestone cascade¹

20-yr milestones pipeline

Just – Evotec Biologics – Sales order book approaching € 1 bn

Key achievements 2021-2023

J.POD – commercial biologics manufacturing stepping up

Progress and status

• Start of operations on track, e.g., Sandoz, US Department of Defense (DoD), …
• Ground-breaking for second new biologics facility J.POD Toulouse in September 2022
• Installation of PODs only ten months after ground-breaking
• EIB-loan facility of € 150 m to support new J.POD facility in Toulouse as well as R&D activities and equity investments (after period-end, approx. 50% of loan dedicated to J.POD)

1. Highlights

2. 1. Financials H1 2023 & Guidance 2023
3. 1. Science & Operations H1 202
4. 1. ESG, Outlook

Keeping the promise

ESG & Sustainability – Measures taken in H1 2023 / Goals 2023

• Environment

• − Scope 1 & 2 and supplier related Scope 3 SBTi near-term targets set and submitted
• − SBTi review of targets (after period-end)
• − Preparation of Supplier engagement programme to manage Scope 3 emissions

Goal 2023: Approve and implement the SBTi initiative action plan at all Evotec sites and invest one percent of 2022 revenues to achieve SBTi targets – ongoing

• Social

• − Design of Wellbeing Programme
• − Diversity Month and Pride Month; Joined Proud Science Alliance; Evotec @ London Pride

Goal 2023: Conduct engagement survey in 2023. Define and communicate a management plan for 2024 and beyond based on results of engagement survey – started

• Governance

• − Governance roadshow of Chairwoman of Supervisory Board
• − First Capital Markets Day with focus on Sustainability Topics
• − Start of Materiality and Impact assessment

Goal 2023: Engage sustainability champions at each site to create governance structures fostering environmental and social goals as well as site specific sustainability projects – started

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 MÈtropole. 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

"Evotec inside" – further progressing

Selected pipeline events within next 12-24 months

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

Phase I data with BMS in CNS (EVT8683)

Phase I data with Kazia in Oncology (EVT801)

Phase I data in Chikungunya virus (EVT894)

Phase Ib / II initiation of Exscientia in Oncology (EXS21546)

Phase I initiations with kidney diseases with other partners

Phase I initiation with BMS in CNS

Phase I initiation with BMS in Oncology

Phase I initiation with Sernova in Diabetes

Progress of multiple co-owned equity companies (not disclosed) (e.g., Topas, …)

Upcoming important dates

Financial calendar 2023

Commerzbank & ODDO BHF Corporate Conference 2023, Frankfurt/Main	05 September 2023
Citi Annual BioPharma Conference, Boston	07 September 2023
Morgan Stanley 21st Annual Global Healthcare Conference, New York	11 September 2023
H.C. Wainwright 25th Annual Global Investment Conference, New York	12 September 2023
Berenberg Goldman Sachs 12th German Corporate Conference, Munich	18 September 2023
Royal Bank of Canada CDMO Conference, virtual	02/03 October 2023
Quarterly Statement 9M 2023	08 November 2023
nd 2 Capital Markets Day 2023	15 November 2023
Jefferies Healthcare Conference, London	16 November 2023
German Equity Forum, Frankfurt/Main	27 November 2023

Volker Braun SVP Head of Global Investor Relations & ESG

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