Slides
Page 1
Evotec SE, 9M 2025 results call, 05 November 2025 Monetizing Technology Leadership Scientific Excellence Operational Excellence Nine-month results
Page 2
PAGE 2 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 forward- looking 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 forward- looking 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. Disclaimer
Page 3
PAGE 3 Agenda 1. 9M/Q3 review 2. Monetizing Technology Leadership 3. On track to reach 2028 outlook 4. Questions & Answers
Page 4
PAGE 4 Agenda 1. 9M/Q3 review 2. Monetizing Technology Leadership 3. On track to reach 2028 outlook 4. Questions & Answers
Page 5
PAGE 5 Discovery & Preclinical Development (D&PD) • Softer than expected market for early drug discovery services. Revenues € 391.9M (-12%) • Strategic partnerships on track… • …leading to strong progress in asset pipeline Positive read-outs expected to result in clinical phase transitions within next 6-9 months Progress of preclinical assets suggesting new launches of clinical trials in 2026 Just – Evotec Biologics (JEB) • Cont´d strong momentum. Revenues: € 143.2M (+11%) • Strong growth in non-Sandoz / non-DoD business in Q3 of >150% vs Q3 2024 and >100% year-to-date • Building enlarged customer base • Landmark industry transaction with Sandoz based on new technology and IP licensing scheme More than US$ 650 m potential payments Royalties on portfolio of 10 biosimilars 9M 2025 at a glance Summary Evotec Group • Ahead on cost-out plan
Page 6
PAGE 6 Share of Discovery & Pre-Clinical, in % of total U.S. biotech VC funding Source: https://www.locustwalk.com/ Funding of early drug discovery still soft Early-stage companies still navigating cash constraints 0 5 10 15 20 25 30 35 40 45 50 55 60 65 Q1 2021 Q3 2021 Q1 2022 Q3 2022 Q1 2023 Q3 2023 Q1 2024 Q3 2024 Q1 2025 Q3 2025 Discovery & Pre- Clinical vs. Clinical not in sync 30-40% of D&PD customer base still facing funding constrains Continuing allocation of VC money towards later stage biotech companies Spending behavior in early-stage segment remaining cautious
Page 7
PAGE 7 Positive early indicators • Improving trend in change orders Normalization of cancelations Growing share of expansions • Improved proposal dynamics Q3 vs. Q1 +20% in volume and value Good momentum based on agile, more modular offering Note: excluding JEB and Cyprotex CO Net Value = Positive CO + Negative CO Navigating the market with agile offering Positive trends in Proposals & Change orders – selected KPIs Value (€ m) Number Q1 Q2 Q3 +20% Number and value of proposals with sequential growth Change order Net Value Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Change orders (CO) recovering from trough level in Q1
Page 8
PAGE 8 Comments Change 9M 2024 9M 2025 in € m 1 Overall phasing pattern as in previous years Soft market in early-stage drug discovery Broadening customer base (7)% (12)% 11% 575.7 447.0 128.7 535.1 391.9 143.2 External Revenues D&PD JEB Ahead of cost-out plan, underutilization remains J.POD Toulouse with planned ramp-up cost (3.3) pp. (6.3) pp. (1.1) pp. 11.9% 14.4% 3.8% 6.7% 8.1% 2.7% Gross margin D&PD JEB More focused R&D investments (33%) (41.1) (27.7) R&D expense In-line with group expectations High fixed cost base Profitable despite planned Toulouse build-out nm nm 127% (6.0) (6.8) 0.8 (16.9) (18.8) 1.9 Adjusted Group EBITDA 2 D&PD JEB D&PD behind expectations – JEB ahead of plan 1 Differences may occur due to rounding 2 Adjusted EBITDA excludes changes of and impairments on intangible and tangible assets as well as the total non-operating result Condensed income statement 9M 2025
Page 9
PAGE 9 -115 YTD Sep 25 FY 2025e Cash flow ~100 +/- in % 9M 2025 9M 2024 30% -72.8 -56.0 Operating cash-flow -37% -67.1 -107.2 CAPEX -14% -139.9 -163.2 Free cash-flow +/- in % Q3 2025 Q3 2024 nm -67.6 42.6 Operating cash-flow -26% -21.4 -29.0 CAPEX nm -89.0 13.6 Free cash-flow • Operating Cash-flow influenced by timing BMS Neuro payment invoiced in late Q3 – Cash received early October Expected 4Q proceeds from licenses & milestones ~€15 m outflow for Priority Reset in first 9 months • Structural reduction of investing cash-flow ~40% y-o-y reduction in first nine months Expected proceeds from sale of Toulouse site Improved rigor in investment processes Free cash-flow, in € m Total cash-flow bridge YTD Sep 25 – FY 2025e, in € m Ending the year with positive cash-flow
Page 10
PAGE 10 Significant reduction of net debt by end of year Quarterly liquidity development 299 303 397 371 348 237 Q2 ‘24 Q3 ‘24 Q4 ‘24 Q1 ’25 Q2 ’25 Q3 ’25 Q4 ’25e ++ • Total liabilities and lease obligations increased to € 484 m from € 462 m (end of Q2‘25) due to the start of a new lease in our Hamburg campus • Strengthened balance sheet based on proceeds from agreement with Sandoz and disciplined cash management 164 43 107 114 Net debt, in € m Liquidity at quarter end, in € m 173 247
Page 11
PAGE 11 Agenda 1. 9M/Q3 review 2. Monetizing Technology Leadership 3. On track to reach 2028 outlook 4. Questions & Answers
Page 12
PAGE 12 Data Sourcing Target ID / Validation Hit Identification Lead Optimisation Pre-Clinical Development Clinical Phase I/II/III Highly industrialized Omics Comprehensive multi-dimensional data analysis Disease modeling In silico design Patient stratification Target ID/ validation Safety / tox profiling Evotec’s innovative DD platforms drive high value partnerships Seamless AI enhanced DD platforms support expansion of co-owned asset pipeline AI-powered tech platforms Core D&PD Services
Page 13
PAGE 13 + various undisclosed partners Partner Portfolio Significant expansion of proprietary database: New cohorts in Kidney Disease, Obesity, and other Therapeutic Areas Broadening to more complex disease models: Organoid disease models derived from patients with genetic drivers NAM based predictive Tox Models (accuracy): Drug induced liver injury : >90% Cardio Tox : ~90% Teratogenicity Tox : ~80% Transcriptomics (ScreenSeq): 250.000 small molecule cpd screen successfully completed Proteomics (ScreenPep): Improved automation, efficiency and throughput Expect to process 100.000 samples in 2026 Scientific Achievements in 2025 Building proprietary generative AI design tools: De novo design of small molecule drug candidates AI-powered platforms drive scientific & commercial achievements IND – Investigational New Drug Platforms generate unique value proposition for co-owned product opportunities More than US$ 200 m signed orders
Page 14
PAGE 14 0.5 1.0 1.5 2.0 2026 2030 2035 2040 2045 2050 Milestones Royalties Cumulated returns: up to € 500 m by 2028; significant upside to > € 1.2 bn by 2030 Pipeline of product opportunities • >100 assets , of which 60% partnered • All preclinical and clinical projects are supported by partnerships • Significant progress in clinical stage projects in 2025 • More progress expected in 2026 Existing portfolio with long-term revenue upside Non-risk adjusted revenue, in € bn, excluding new pipeline building Asset pipeline with ~ € 16 bn opportunity (non-risk adjusted) Note: all numbers are non risk adjusted Financial upside is becoming more tangible as pipeline broadens and assets advance
Page 15
PAGE 15 Today 2026 Q1 2025 Pool of ~90 assets Discovery Pre-clinical Ph III Clinical Ph II Ph I …to… …7 + 7 & progressing From 6 + 6 • Two assets in phase II in Q4 2025, expected to grow to up to four assets in 2026 • Number of assets in clinical, pre- clinical, and discovery growing Improving average success rate for access to milestones & royalties in multi- billion US$ markets Expecting meaningful pipeline advancements next 6-9 months 14 partnered projects in pre-clinical & clinical stage, addressing markets in Onco, CNS, I&I
Page 16
PAGE 16 A Landmark Transaction
Page 17
PAGE 17 Evotec and Sandoz have signed the sale of Just – Evotec Biologics EU 1, including the biologics manufacturing site (J.POD) located in Toulouse, France Toulouse, France 1 Completion of transaction remains subject to consultation procedures with the French employee representative bodies, and satisfying other customary regulatory approvals Construction of J.POD Toulouse benefited from French government funding as part of the Investments for the future Programme (programme d'investissements d'avenir in French) and was also supported economically by the Occitanie Region and Toulouse Métropole. Fast track toward asset-lighter model of Just – Evotec Biologics Further validation of Just – Evotec Biologics’ manufacturing technology
Page 18
PAGE 18 New Strategy Announcement 17 April 2025 • Supporting expansion of Sandoz’ biosimilar pipeline • Access to JEB’s development platform • Resource capacity for additional molecules • Long-term commercial manufacturing access Toulouse • Site transfer / Sale of tech license • Development revenue commitment & Milestones 1 Joint mission of accelerating access to life-changing biotherapeutics Partnership expanded July 2024 Reconfiguring Partnership Q4 2025 Initial partnership announced May 2023 1 replacing existing commitments Natural progression of partnership Change in ownership and continuation of collaboration
Page 19
PAGE 19 Technology leadership • Validation of leadership – Retaining high-value IP and core R&D competencies • Leveraging technology advantage for shaping a new segment in a fast-growing market Commercial model • Adding technology license and royalty mechanism to service and volume-based revenues • Segway to faster participation in commercial success and increasing range of potential partners Operations • Change in ownership – continuation of seamless collaboration in Europe • Redmond site remains “center of excellence” – no commercial limitations in originator market Financial profile • Accelerating pivot to asset-lighter business model with higher returns • Improving revenue mix by adding high-margin technology and IP revenue streams / Royalties Strategic focus Transaction impact Deal rationale Transaction validates Evotec’s technology leadership and accelerates shift to asset-lighter model
Page 20
PAGE 20 Revenue commitments License, Milestones & Development revenues during transition period: > US$ 300 m 2026 - 2028 Upfront purchase price 2 & Technology license fee Upfront payment: ~US$ 350m 2025 Royalties 3 • Royalties on up to ten biosimilars, of which six are in technical development • US$ 92 bn originator net sales of six most advanced molecules > 2028 Financial terms Scope • Sale of Just – Evotec’s Biologics manufacturing site in Toulouse (J.POD) 1 • Technology license to operate J.POD, Toulouse based on Just – Evotec Biologics’ technology Key deal parameters, replacing existing commitments 1 Structured as sale of shares in of Just – Evotec Biologics EU 2 Subject to customary closing adjustments Attractive financial impact across multiple parameters Key deal parameters 3 From the first commercial sale
Page 21
PAGE 21 Originator net sales (US$ bn) Targeted brand 17 Darzalex ® daratumumab SC 15 Enhertu ® trastuzumab deruxtecan 4Tecentriq ® atezolizumab 25 Skyrizi ® risankizumab 7Tremfya ® guselkumab 24 Dupixent ® dupilumab n/a 4 undisclosed in early development Source: EvaluatePharma/Sandoz; https://www.fda.gov/media/156249/download Supporting Sandoz in targeting US$ > 90 bn originator net sales JEB partnered biosimilars portfolio Assets in technical development
Page 22
PAGE 22 > 2,400 m 2 Expansion at Redmond in P&PD (completed) and MFG line (2026) 50+ Ongoing customer projects Full CDMO services including molecular design, upstream, downstream, analytical and formulation development Early and late- stage commercial capabilities for biologics manu- facturing under GMP Leverage existing CDMO offerings Continued investment and business momentum Shaping new markets through innovation • IP licensing model for proprietary continuous manufacturing platform • Licensing of J.CHO cell line and perfusion media to access new markets • Launchpad concept: Acceleration and enablement of alternative manufacturing platforms via proprietary J.POD design • Continued investments into technology platforms Seattle Redmond Poised for long term growth Next-generation CDMO model – Leveraging innovation, retaining platform control
Page 23
PAGE 23 Complex Biologics Process Development Continuation of existing commercial model Molecule Discovery ML enabled Molecule Development Evolution • Enabling manufacturing • Product sales • IP licensing • Milestones … … J.MEDIA J.TRAIN J.CHO ® J.POD ® Continuous mfg services Traditional CDMO path Customer enablement path Product path Continued New Discontinued Shaping the next generation CDMO model Accelerating growth – Enhancing margins – Improving capital return
Page 24
PAGE 24 Agenda 1. 9M/Q3 review 2. Monetizing Technology Leadership 3. On track to reach 2028 outlook 4. Questions & Answers
Page 25
PAGE 25 Comment Guidance 2025 FY 2024 Stable development driven by strong JEB segment; D&PD navigating in soft market environment € 760 - 800 m € 797 m Group revenues Further prioritisation of scalable tech-platforms and technologies € 40 - 50 m € 51 m R&D expenditure 2 Improved revenue mix and productivity measures to increase long-term profitability € 30 - 50 m € 23 m Adjusted EBITDA 3 Guidance 2025 1 1 Guidance based on H1 Actuals and updated H2 FX rates of 1.17 EURUSD and 0.86 EURGBP, respectively 2 No material FX effects as most R&D efforts are carried out in € area. 3 Excluding one-off costs of € 55 m for the priority reset in 2024 and potential costs related to the transformation program in 2025
Page 26
PAGE 26 Revenue CAGR 1 2024-2028 8-12% (FY 2024: € 797 m) Adj. EBITDA margin 2028 >20% (FY 2024: ~3%) Market recovery, Differentiation, Value add-ons Operating leverage, Mix/Value add-ons, Productivity, Cost optimisation Drivers Mid-term Outlook 2028 aspiration 1 CAGR = Compound annual growth rate
Page 27
PAGE 27 Above market growth rates at better-quality earnings Technological leadership and innovation; steering portfolio towards high value segments Commitment to Operational Excellence Accelerating cost-out plans & further productivity improvement Just – Evotec Biologics – better monetization of technology & assets More capital efficient model Upside through returns on asset pipeline Milestone & royalty potential 1 > € 500 m (till 2028) – significant upside to > € 1.2 bn by 2030 Ahead of plan Ahead of plan Levers of mid-term value creation 1 Cumulative, non risk adjusted values Later tipping point Progressing well
Page 28
PAGE 28 PAGE 28 Christian Wojczewski CEO Aurélie Dalbiez CPO Paul Hitchin CFO Cord Dohrmann CSO The team is ready to take your questions Linda Zuckerman EVP, Global Head of Biotherapeutics
Page 29
Q&A
Page 30
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