Evotec SE — Investor Presentation 2024

Apr 24, 2024

Resetting for profitable growth

Evotec SE, Analyst Call, 2024-04-24

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 Team

Iris Löw-Friedrich Chair of Supervisory Board

Laetitia Rouxel CFO

Matthias Evers CBO

Craig Johnstone COO

Cord Dohrmann CSO

Mario Polywka Interim CEO

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Welcome, Christian!

"I am delighted to join Evotec SE as its new CEO, and I look forward to leading the Company into the next phase of its evolution. Together with the great people at Evotec and our partners we will continue to drive full speed for Medicines that Matter."

Christian Wojczewski Chief Executive Officer (as of 1 July)

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"I discovered Evotec as a company with incredibly smart and committed people who are passionate about the noble work they do every day. I am eager to become part of the Evotec family and devote my passion to nurturing, developing, and growing the Evotec talent."

Aurélie Dalbiez Chief People Officer (as of 15 June)

1. 2023 Performance review 2. Priority reset, Guidance & Outlook 3. Questions & Answers

1. 2023 Performance review 2. Priority reset, Guidance & Outlook 3. Questions & Answers

Resilience in a challenging year

2023 at a glance

Q1	Q2	Q3	Q4
Excellent start to the year	External shock & validation of JEB value	Recovery and guidance adjustment	Navigating in a challenging environment
• Strongest Q1 in Evotec's history	proposition Cyber-attack on April 6th •	• 80% of operations back to business	• E.MPD expanded with Charité
• Two contracts extended/ expanded with BMS in neurodegeneration and targeted protein degradation • New collaboration with Janssen in oncology	• € 70 m (net) missed revenues due to cyber attack • Just – Evotec Biologics (JEB) signs technology alliance with Sandoz on May 9th	• Reassured partners / no scientific data lost • Revenue growth of 13% • Guidance adjustment reflecting effects of cyber-attack and	• Evotec-partner Jingxin receives approval for EVT201 in China • Customer retention rate of 93% • Revised guidance fully met

• Revenue growth of 30%

Revised guidance 2023 fully met

Guidance 2023

	Guidance 20233	Results 2023
Group revenues (at constant fx-rates1 )	€ 750– 790 m (€ 765 – 805 m)	€ 781.4 m
Unpartnered R&D2	€ 60 – 70 m	€64.8 m
Adjusted EBITDA (at constant fx-rates1 )	€ 60 – 80 m (€ 70 – 90 m)	€ 66.4 m
Approx. € 200 m continued investments for enabling and supporting growth (e.g., capacity expansion in biologics manufacturing, iPSC, E.MPD, CO	e reduction…) 2	€ 213 m

Continued growth despite multiple challenges

Condensed income statement 2023 – Evotec SE and subsidiaries

in € m1	2023	2022	Change	Comment
Revenues of which Just – Evotec Biologics (JEB)	781.4 108.4	751.4 51.3	4% >110%	• Cyber-related impact (especially Development and Cyprotex) • Challenging markets (esp. biotech) • Sandoz tech partnership
Gross margin Gross margin excl. JEB	22.6% 27.0%	23.2% 31.1%	(60) base pts. (410) base pts.	Cyber, market, less MS, Ramp-up of capacity at JEB
Unpartnered R&D expense	64.8	70.2	(8)%	Investing into the future
Adjusted Group EBITDA2	66.4	101.7	(34)%	Impacted by internal cyber-related costs
Adjusted Group EBITDA excl. JEB2	72.4	138.3	(47)%	Majority of cyber-related costs accounted for within EVT Execute
Scope 1 & 2 emissions (tons CO e) 2	27,480	38,549	(29)%	Growing greener

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

Significant partnerships behind business momentum 2023

Key transactions 2023

Broadened and deepened strategic alliance in neurodegeneration

• Extension and expansion for eight more years
• US\$ 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
• Total transaction value of up to US\$ 5 bn

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

Differentiated offerings driving the business

Segment information 2023 – Evotec SE and subsidiaries

in € m1	EVT Execute	EVT Innovate	Inter segment elimination	Evotec Group
Revenues	738.7	266.9	(224.2)	781.4
Gross margin	20.9%	30.8%	–	22.4%
R&D expenses	(4.4)	(78.6)	14.5	(68.5)
SG&A expenses	(130.8)	(38.8)	–	(169.6)
Impairment of intangible assets & goodwill	(5.0)	–	–	(5.0)
Other op. income (expenses), net	(10.2)	30.8	–	20.6
Operating result	(43.0)	(4.5)	–	(47.5)
Adjusted Group EBITDA2	65.4	0.9	–	66.4

• EVT Execute

• − Total revenue stable
• − Revenues excluding Just Evotec Biologics (JEB) -8%
• − Gross margin impacted by expansion of JEB
• EVT Innovate
  • − Revenues +30%
  • − Expansion of precision medicine collaborations
  • − Gross margin +380 bp despite lower milestone contribution
• Adjusted EBITDA within guidance communicated on 28 July 2023

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.

Gross margin with room for improvement

Revenues and gross margin overview – Evotec SE and subsidiaries

• 4% organic growth of Group revenues (+6% at constant fxrates), despite cyber incident
• Just Evotec Biologics +111%
• EVT Innovate +30%
• EVT Execute excl. Just – Evotec Biologics -18%
• Gross margin of 27% excluding JEB despite low contribution from milestones and Cyber incident
• Lower contribution from MS/UF/Licenses

Q4 2023 providing strong call for action

Condensed income statement Q4 2023 – Evotec SE and subsidiaries

in € m1	Q4 2023	Q4 2022	Change
Revenues	201.3	240.7	(16 )%
Gross margin	18.7%	34.3%	(1550)bp
R&D expenses	(20.2)	(21.3)	(5)%
SG&A expenses	(42.1)	(46.3)	(7)%
Impairment of intangible assets & goodwill	0.1	–	–
Other op. income (expenses), net	13.0	22.9	(43)%
Operating result	(11.5)	37.7	nm
Adjusted Group EBITDA2	16.5	57.1	(71)%
Net income	(16.1)	(27.2)	(41)%

• Approx. 16% decline versus very strong comparable base
• Gross margin contraction due to
  • − Challenging base business (conversion rate, price pressure)
  • − Unfavourable mix
  • − Less milestones upfronts & license payments
  • − Ramp up costs of Just – Evotec Biologics

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.

Market dynamics and Q4 2023 performance triggered business review

Performance review summary (SWOT analysis)

• Expertise, agility, and scientific track record
• Integrated, differentiating capabilities (e.g., PanOmics)
• Strong demand for core value prop. in tough market
• High customer retention rate of 93%
• E.MPD expansion ("Panomics-driven drug discovery")
• Capitalising on Just Evotec Biologics opportunity
• U.S. BIO-SECURE bill acceleration in the U.S.

O T

• Internal complexity and operational inefficiencies
• (Temporary) mismatch of demand vs. capacities
• Reduced conversion in transactional business

S W

• Continued "buyers' market" dynamics
• Delayed biotech market recovery
• Macroeconomic conditions and geopolitical tensions

Business review driving priority reset

1. 2023 Performance review 2. Priority reset, Guidance & Outlook 3. Questions & Answers

For 2024, we expect to continue operating in a challenging market

Summary of current "buyer's market" dynamics

PoC: Proof of Concept; IPO: Initial Public Offering; VC: Venture Capital; I&I: Inflammation and Immunology

Source: Deutsche Bank Research; GlobalData – The State of the Pharmaceutical Industry 2024; RBC Capital Markets - Raising Capital: A new playbook for a new era in biotech; LEK Consulting - Looking Ahead in Biopharma: 2024; KPMG - 2024 Healthcare and Life Sciences Investment Outlook; Company Presentations; BoFA Global Research - 2024 Biopharma Outlook; EndPoints 100 Survey – looking forward to 2024

We commit to three priorities towards profitable growth Priority reset

1 Focus on strengths and drive smart partnering 2

Adjust organisation and footprint 3

Put a strong team in place

1 Focus on strengths and drive smart partnering

Aligning market opportunitites with core expertise

80.3

Levers to further exploit opportunities in Biopharma R&D partnering (key examples)

• Focus and align expertise in therapeutic areas with high degree of innovation and deal making activity
• Double down on key modalities under one roof
• Continue to innovate economically viable business models generating upsides and base profitability
• Refocus base business offerings in line with evolving demand

Total upfront cash and equity Total deal value

2 Adjust organisation and footprint to new reality

Targets and levers of the restructuring program

2 New segment reporting reflecting a leaner organisational structure

New reporting structure as of Q1 2024 – accountability, efficiency, visibility and simplicity

• Shared R&D: ONE end-to-end R&D platform with > 500 partners
• Minimal intersegment reporting reducing complexities and redundancies
• Just Evotec Biologics: Increased visibility for paradigm shifting technology

Resetting – faster than market growth, more profitable

Guidance 2024

	Guidance 2024	YE 2023	Comment
Group revenues	Low double digit percentage growth	€ 781.4 m	Navigating in a challenging market with differentiated offering
R&D1	Mid-single to low double digit percentage reduction	€ 64.8 m	Long-term expansion of pipeline / Focus on first-in class platforms and project
Adjusted EBITDA2	Mid double digit percentage growth	€ 66.4 m	At least doubling rate of revenue growth / upside from efficiency measures and improving demand

€ 150-200 m continued investment programme for enabling and supporting growth

Refined guidance to be assessed together with new CEO – Update planned for H1 results

Beyond 2024, we forecast changes in our revenues mix

Four layers of revenue generation

Shared R&D	Just – Evotec Biologics
> 500 Partners	> € 800 m Closed Sales
93% Retention	> 20 partners
> 100 partners with revenues > € 1 m	> 50 assets on the platform
> 80% of revenues, today	~15% of revenues, today
Milestones	Royalties
> 60 partnered projects	58 programmes
> 80 proprietary projects	with royalty upside << 1% of revenues, today
< 3% of revenues, today

5-yr trend

Reset will be reflected in 2025 & beyond

Our journey

3 Putting a strong team in place

CEO & CPO coming on board

Christian Wojczewski

Appointed as Member of the Management Board in the role of Chief Executive Officer as of 1 July

• 2017 2022 CEO of Mediq BV
• 2005 2017 Various leadership positions at Linde Group, since 2007 member of the Group Executive Committee & Head of Global Business Unit Healthcare
• 2000 2005 McKinsey & Company

Aurélie Dalbiez

Appointed as Member of the Management Board in the role of Chief People Officer as of 15 June

• 2021 2024 Chief Human Resources Officer at Corbion
• Prior to Corbion, various leadership positions at Lonza AG and Novartis AG
• More than 25 years of experience in international HR leadership

Upcoming important dates

Financial calendar 2023

Full annual report and sustainability report 2023 available for download

In a nutshell …

Key takeaways

Resetting for profitable growth

Strong demand for core offerings double digit top-line growth

Creating a right-sized & efficient organisation

Putting an even stronger team in place

Appendix

Global view and deep experience for best governance

Independent and diverse Supervisory Board

• Since 2014 Member of Evotec's Supervisory Board (2021 Chairperson)
• Since 2008, CMO of UCB S.A., Brussels (Belgium)
• 2001-2009, Member of the Executive Board of Schwarz Pharma AG, responsible for global R&D

Iris Löw-Friedrich CMO – UCB S.A.

Roland Sackers CFO & Managing Director QIAGEN N.V.

• Since 2019 Member of the Supervisory Board (2021 Vice Chair Person) and Chairman of the Audit Committee of Evotec • Since 2004,
• CFO of QIAGEN N.V. • 1999-2004,
  • Auditor at Arthur Andersen

Camilla Macapili Languille Head of Life Sciences Mubadala Investment Company

• Since 2022 Member of Evotec's Supervisory Board
• Since 2013, Different positions at Mubadala Investment Company, (UAE)
• 2011-2013, Senior Manager Mergers & Acquisitions Daiwa Capital Advisory Partners (France)
• 2007-2010: Investment Manager at Virgin Management Ltd. (UK)
• 2005-2007, Analyst at JPMorgan Securities, Inc. (UK/USA)

Mario Polywka Interim CEO of Evotec SE¹

• Since 2019 Member of Evotec's Supervisory Board
• 2018, Retired from the Management Board of Evotec
• 2007-2018, COO of Evotec
• 1991 Founding chemist of Oxford Asymmetry International plc (OAI), which was merged with Evotec BioSystems in 2000

Elaine Sullivan CEO Keltic Pharma Therarpeutics Ltd.

• Since 2015 Member of Evotec's Supervisory Board
• 2015-2019, CEO of Carrick Therapeutics Ltd,
• 2011-2014, VP Global External R&D at Eli Lilly & Company, Inc
• 1995-2010, Various positions in the area of drug discovery and development at AstraZeneca

Constanze Ulmer-Eilfort Partner at Peters, Schönberger & Partner

• Since 2021 Member of Evotec's Supervisory Board
• Since 2000, Equity Partner at Baker McKenzie
• Since 2017, Member of the Global Executive Committee of Baker McKenzie
• S4DX GmbH, Chair of the Advisory Committee

1 On 3rd January 2024, Dr Mario Polywka has agreed to step in as interim CEO after Dr Werner Lanthaler stepped down as CEO. His Supervisory Board mandate is inactive while he works in his role as interim CEO for up to 12 months.

Sustainable growth enabled by strong culture, values & people

Innovation – Entrepreneurship – Collaboration

Keeping the promise

ESG & Sustainability – Measures taken in 2023

• Environment

• − Scope 1 & 2 and supplier related Scope 3 SBTi near-term targets validated and approved
• − Reduction of Scope 1 & 2 emissions by 29% far above the 4.5% SBTi targets trajectory
• − Increased the consumption of renewable electricity from 25% to 52%
• − Invested 8.3 €m in energy efficiency projects in 2023

• Social

• − Just Evotec Biologics entered a multi-year, long-term tech partnership with Sandoz and was awarded with its 2nd contract with US Department of Defense
• − Diversity Month and Pride Month; Evotec @ London Pride; Pride in STEM celebration
• − Engagement survey with participation of 86% of employee
• Governance
  • − Revisit of the Code of Conduct
  • − Implantation of Eco Vadis supplier Management tool
  • − Appointing sustainability champions for all Evotec sites
  • − Conducting Impact Assessment and Materiality Analysis
  • − First Capital Markets Day on Sustainability topics

Putting the money where the mouth is

ESG metrics design 2024 to determine STI and ESG Modifier in revised LTI plan

%
5

Drive improvement in SOX compliance & digitalization for more efficient work for all employees

Implement 3 initiatives addressing key points of first engagement survey, and show >10% improvement in 2nd survey

Development of and commitment to a climate transition plan (CTA) that includes climate adaptation and beyond the value chain measures to achieve Scope 1, 2 & 3 Net-Zero by 2045

ESG Modifier: Develop and implement a consistent climate risk, biodiversity and circular economy framework based on: Climate scenario analysis, Climate risk assessment, Climate-transition plan, Carbon pricing scheme, Biodiversity management approach, and Product and services life cycle assessment (LCA)

EVOequity portfolio making progress

Operational VC model – diversified portfolio with multiple shots on goal

• Breakpoint Therapeutics Nomination of first preclinical development candidate, BTX-011
• Tubulis Closing of upsized € 128 m Series B2 financing round
• Carrick Therapeutics – First patient dosed in Phase 1b/2 clinical trial of Samuraciclib in combination with Vepdegestrant
• Topas Therapeutics – Initiation of Phase 2a clinical trial for TPM502 in Celiac Disease
• Tubulis Strategic license agreement with Bristol Myers Squibb to develop next generation ADCs

Volker Braun EVP Head of Global Investor Relations & ESG

+49 (0) 40 228 999 338 (d) +49 (0) 151 1940 5058 (m) volker.braun@evotec.com