Financial Data and Key Metrics Changes - The company's full-year 2024 group revenues reached €797 million, a 2% increase compared to 2023 [15] - Adjusted EBITDA for 2024 was €22.6 million, with a strong Q4 performance contributing to a significant uplift [19][22] - Operating cash flow for Q4 landed at €74.2 million, with total liquidity increasing by €94 million to €397 million by year-end [25][24] Business Line Data and Key Metrics Changes - Shared R&D revenue declined from €673 million in 2023 to €611 million in 2024, primarily due to lower revenues from Bristol Myers Squibb [16] - Just-Evotec Biologics saw a strong revenue growth of 71%, reaching €185.6 million in 2024, driven by existing relationships and new deals [18] - R&D expenditures decreased by 26% from €68.5 million in 2023 to €50.9 million in 2024, focusing investments on relevant projects [18] Market Data and Key Metrics Changes - The global R&D spending is approximately €260 billion, with expected growth rates of 3% to 4% per year [35][36] - The biologics manufacturing market is projected to grow at 10% per year, with Evotec positioned as a leader in continuous manufacturing [33][34] - The addressable market for Evotec is anticipated to grow by 5% to 7% from 2024 to 2028, driven by increased outsourcing in drug discovery [40] Company Strategy and Development Direction - The company aims to combine scientific excellence with operational excellence to achieve sustainable profitable growth [8][9] - A strategic review has led to a focus on technology and science leadership, with an emphasis on high-value, tech-driven segments [70][86] - The Priority Reset program has successfully implemented €40 million in run rate savings, with further cost-saving measures planned for 2025 [29][51] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued softness in the Shared R&D market in 2025, with a potential tipping point for growth expected in the second half of the year [49][47] - The biologics market remains robust, with confidence in the growth of Just-Evotec Biologics [48] - The company is committed to operational excellence and expects to achieve EBITDA margins over 20% in the coming years [98] Other Important Information - The company has streamlined its asset pipeline by 30%, focusing on high-quality, high-potential assets [74] - Evotec's predictive accuracy for drug-induced liver injury exceeds 87%, positioning the company as a leader in this area [126] - The company has divested from non-core assets and reduced its equity participation exposure [76] Q&A Session Questions and Answers Question: What is the sustainable level of income from tax credits for the foreseeable future? - Management indicated that tax credits would grow in line with business growth, with no current risks identified [110] Question: What are the net effects of the €50 million growth savings? - The €50 million represents gross cost savings, with net effects considering productivity and inflation expected to balance out over the planning period [112] Question: Can you provide details on the phase composition of the drug portfolio? - Currently, there are six assets in clinical stages and six in preclinical stages, with potential for 15 assets to move into clinical stages within the next 24 months [114][115] Question: How sophisticated are the models for phasing out animal testing? - Evotec supports the FDA's initiative to replace animal testing with human microphysiological systems and AI-based approaches, positioning itself as a leader in this developing market [123][124]

Pioneering Drug Discovery FY 2024 & Strategic Review 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 i ...

Strategic Review and Future Positioning - The company is undergoing a strategic review targeted for completion in early Q2 2025, aiming to define a new vision and establish a clear future position [44]. Financial Position and Liquidity - As of December 31, 2024, the company had €396.8 million in cash, cash equivalents, and investments, with a €250 million senior secured revolving credit facility secured in July 2024 to strengthen liquidity [50]. - As of December 31, 2024, 62% of the company's liquidity is held in Euros, with approximately 26% of liquid assets in US dollars [51]. - The company is exposed to liquidity risks from long-term fixed-price contracts if planned cash inflows are lower than expected [50]. - The company received €46.9 million in R&D tax credits for the year ended December 31, 2024 [63]. - For the year ended December 31, 2024, the company reported €797.0 million in revenue, representing growth of 2.0% from the previous year [182]. - The company incurred a net loss of €196.1 million for 2024, an increase of €112.2 million compared to 2023 [182]. - Adjusted EBITDA for 2024 was €22.6 million, a decrease of €43.8 million from the previous year [182]. Revenue Sources and Customer Base - In 2024, 38.3% of the company's revenue came from three customers, with 109 customer alliances each generating over €1 million [46]. - As of December 31, 2024, Evotec's revenue from "fee-for-service" agreements accounted for 94% of total revenues, with milestone payments contributing only 0.6% and 0.4% in 2023 and 2024 respectively [99]. - The contribution of the top ten customers to total revenues rose to 52% in 2024, up from 47% in 2023 and 39% in 2022 [139]. - The total number of customers increased to 849 in 2024, with 292 new customers added during the year, compared to 298 in 2023 [138]. R&D and Innovation - The company aims to serve as a source of innovative drug candidates for partners, advancing multiple active drug discovery and early development projects [48]. - R&D expenses for 2024 were €50.9 million, down from €68.5 million in 2023, focusing on selected R&D projects [187]. - The company has over 140 partnered assets in its pipeline, which includes candidates for which it has rights to receive royalty or milestone payments [189]. - The company is focused on acquiring and licensing additional intellectual property assets and technologies as opportunities arise [153]. - The proprietary multi-omics data generation platform, PanOmics, is considered industry-leading in throughput, robustness, and cost efficiency [111]. - The molecular patient database for chronic kidney disease (CKD) has expanded to include data from almost 12,000 patients, constituting over 600 billion data points, making it the largest CKD molecular database globally [113]. Operational Challenges and Risks - The ongoing Ukraine-Russia conflict and tensions in the Middle East pose significant risks to global economic stability, potentially impacting supply chains and operational costs [45]. - The company faces competition from cost-conscious Contract Research Organizations (CROs) in Asia and Eastern Europe, which could affect market positioning and revenues [46]. - The company is exposed to risks related to changes in tax laws and interpretations, which could affect its tax obligations and financial performance [62]. - Quality risks in manufacturing and R&D could delay clinical trials and regulatory approvals, adversely affecting business operations [57]. - The company experienced a ransomware incident in 2023, which caused operational delays and may continue to impact revenue and costs [78][79]. Compliance and Regulatory Environment - The company is subject to the German Supply Chain Due Diligence Act, which mandates compliance with human rights and environmental standards starting in 2024 [55]. - Regulatory compliance risks include potential fines and reputational damage if the company fails to meet sustainability reporting obligations [54]. - The company is subject to extensive government regulations in the EU and the US, which require substantial time and financial resources for compliance [156]. Market Trends and Growth Projections - The global biotechnology market is projected to grow at a CAGR of 11.5%, from $1.55 trillion in 2024 to $3.21 trillion by 2030 [143]. - The small molecule discovery market is expected to grow at a CAGR of 7.97%, from $88.57 billion in 2024 to $140.31 billion by 2030 [144]. Infrastructure and Facilities - The company operates 17 sites, including five manufacturing facilities, with a focus on profitable growth leading to the exit of certain operations in 2024 [103]. - The total area of facilities owned and leased by the company at the end of 2024 was approximately 213,930 square meters, with significant locations in France, Germany, Italy, the UK, and the US [173]. - The company completed the construction of its first J.POD facility in North America in August 2021, and a second J.POD facility in Toulouse in 2024, to strengthen its position in drug discovery and development [175]. Employee and Talent Management - In 2024, approximately 7% of the global workforce was affected by a restructuring program due to significant organizational changes and challenging financial results [74]. - The company faced challenges in sourcing and hiring talent across global locations, particularly for specialized scientific and leadership roles, due to competitive labor markets and skills shortages [75][76]. Intellectual Property and Competitive Position - The company relies on trade secrets and patents for intellectual property protection, which may not be sufficient to maintain competitive advantage [65]. - Changes in patent laws and interpretations could diminish the value of the company's intellectual property rights [67]. - The company’s proprietary drug discovery programs and technology platforms are protected through a multi-layered intellectual property strategy [152]. - As of December 31, 2024, the company owned a patent portfolio that included more than 45 patent families, with filings in the United States and Europe, and several pending or granted in multiple jurisdictions [154].

Evotec SE unveils new strategy and provides 2025 guidance bolstered by strong Q4 2024 results Hamburg, Germany, 17 April 2025: Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN: DE0005664809; NASDAQ: EVO) today announced its financial results for FY 2024, provided guidance for FY 2025 and outlook for 2028 reflecting the path to sustainable profitable growth, following the completion of its strategic review process. Dr Christian Wojczewski, Chief Executive Officer of Evotec, said: "Evotec's ambitio ...

Financial Data and Key Metrics Changes - For the first nine months of 2024, group revenues reached €575.7 million, consistent with the same period in 2023, driven by a decline in shared R&D revenue from €506.1 million to €447 million due to a soft market [40] - Just-Evotec Biologics saw a revenue increase of 74%, reaching €128.7 million compared to €74.1 million in the prior year, attributed to a higher order book in the US and initial client projects in Toulouse [41] - Adjusted group EBITDA for the nine months was reported at minus €6 million, with losses in shared R&D of €6.8 million due to soft revenues and a high fixed cost base [42] Business Line Data and Key Metrics Changes - Shared R&D revenues remained soft in Q3, limiting profitability, while Just-Evotec Biologics improved to €40.3 million in Q3 [45] - The gross margin improved from 8.6% in Q2 to 9.8% in Q3, particularly due to better operational leverage in Just-Evotec Biologics [46] - The shared R&D segment maintained a gross margin of 15% in Q3 despite soft revenues, aided by nonrecurring cost optimization measures [47] Market Data and Key Metrics Changes - The overall market environment remains challenging, particularly for the biotech sector, but there are signs of recovery, especially among stronger players continuing to invest in their programs [104][110] - The biologics manufacturing business is experiencing robust demand, driven by rising interest in biologics and a shift in client preferences towards US and European markets [107] - The shared R&D platform has seen slower recovery due to previous cyber-attacks, but increased business development efforts are expected to yield positive results [110] Company Strategy and Development Direction - The company is undergoing a transformation to enhance operational excellence and profitability, focusing on a thorough evaluation of its strategy, operations, and organizational setup [26][28] - The priority reset initiative aims to achieve €40 million in savings, with over 60% of the targeted annualized impact already implemented [59] - The strategic review is ongoing, with a new strategy expected to be unveiled in the first half of 2025, focusing on growth and profitability [30][76] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in 2024 but emphasizes the strong fundamentals of the business and the exceptional scientific team [21][22] - There is optimism regarding the recovery of the biotech market and the potential for new partnerships in 2025, particularly in biologics manufacturing [110] - The company is committed to maintaining investments in R&D and technology to ensure continued competitive advantage [116] Other Important Information - The company has successfully waived existing financial covenants for the period from Q3 2024 to Q3 2025, providing additional financial flexibility [49] - Cash flow turned positive in Q3, with free cash flow of €16.7 million, leading to an increase in liquidity from €299 million in Q2 to €303 million in Q3 [50] - The company expects to achieve an adjusted group EBITDA of €15 million to €35 million for the full year 2024, with revenues projected between €790 million and €820 million [55] Q&A Session Summary Question: Timing of Strategic Update - The strategic update is expected to be provided at the full year results in April [89] Question: Guidance Range Clarification - The guidance range remains wide due to various factors, including the order book and expected revenue increases in Q4 [90][92] Question: Market Environment Update - The market remains challenging, but there are signs of recovery, particularly in the biologics manufacturing sector [104][110] Question: Balancing Cost Controls and Technological Investment - The company is maintaining a balance between cost controls and investments in technology to retain its competitive edge [116]

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Core Insights - Kia has inaugurated the Kia Gwangmyeong EVO Plant, marking Hyundai Motor Group's first dedicated electric vehicle (EV) manufacturing facility, aimed at enhancing its EV production capabilities [1][2]. Group 1: Facility Overview - The Kia Gwangmyeong EVO Plant is located at Kia Autoland Gwangmyeong and has an annual production capacity of 150,000 units, starting with the Kia EV3 and followed by the EV4 in 2025 [2][5]. - The facility represents a transformation from a previous internal combustion engine (ICE) vehicle plant, emphasizing Kia's commitment to sustainable manufacturing and mobility goals [1][4]. Group 2: Investment and Development - The total investment in the Gwangmyeong EVO Plant amounts to KRW 401.6 billion, covering approximately 60,000 square meters [5]. - The plant has undergone a year-long transformation from its original purpose of producing small ICE vehicles, showcasing Kia's strategic shift towards next-generation vehicle production [6]. Group 3: Strategic Goals and Leadership - Kia aims to lead innovation in the EV market and fulfill its responsibilities in delivering sustainable mobility solutions, as stated by Jun Young Choi, Executive Vice President at Kia [4]. - The establishment of the plant is expected to position Gwangmyeong City as a center for the EV industry in Korea, promoting local economic development and job creation [5].

Financial Data and Key Metrics Changes - In H1 2024, group revenues increased by 2% to EUR 390.8 million compared to EUR 383.8 million in H1 2023 [7] - Total shared R&D revenues decreased by 7% to EUR 302.4 million, while revenues from Just - Evotec Biologics increased by 50% to EUR 88.5 million [12] - Adjusted EBITDA for H1 2024 was close to breakeven at minus EUR 0.5 million, impacted by a high fixed cost base and slow market demand [13][14] Business Line Data and Key Metrics Changes - Just - Evotec Biologics saw a significant revenue increase driven by a higher order book in the US and initial client projects in Toulouse [12] - Shared R&D business declined due to persistent market challenges, with a revenue drop from EUR 324.8 million in H1 2023 to EUR 302.4 million in H1 2024 [12] - The gross margin in shared R&D improved from 12.8% to 15.4% despite lower revenues due to cost optimization efforts [15] Market Data and Key Metrics Changes - The market environment remains challenging, with stagnation in early R&D spending in biotech and cautious decision-making in the pharmaceutical industry [7][8] - The sales order book in the Discovery business continues to grow, indicating a healthy level of closed sales despite revenue not following the same trend [8][19] - The company expects a broader market recovery to occur no earlier than 2025 [7][8] Company Strategy and Development Direction - The company is focusing on profitable growth and has initiated a reset of priorities aimed at delivering EUR 40 million in gross savings by 2025 [11][32] - A strategic review is underway to optimize the company's portfolio and footprint, with ongoing adjustments to capacity and operations [35][60] - The company aims to leverage its differentiated offerings to achieve faster growth once the market recovers [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging market conditions and the need for adjustments in workforce capacity to align with revenue profiles [9][31] - There is a commitment to investing in R&D while reducing expenditures to safeguard sustainable growth [13][32] - The company is optimistic about its partnerships and the potential for future growth despite current market pressures [20][21] Other Important Information - The company has identified non-core business areas, such as the gene therapy business in Orth, for separation and winding down operations [14][30] - A revolving credit facility of EUR 250 million was successfully completed to strengthen the balance sheet [18] - The company is committed to enhancing its operational capabilities and has made significant investments in technology and capacity [10][25] Q&A Session Summary Question: Weakness in shared R&D - The weakness is attributed to delays in existing customer projects and fewer new projects starting, with longer-term projects translating into revenue over the next 12 to 18 months [39][41] Question: Cost savings ramp-up - Cost savings are expected to ramp through H2 2024 and be fully realized by 2025, with around EUR 10 million activated in 2024 [39][43] Question: Contribution from business segments in 2024 guidance - The guidance reflects a delayed market recovery, with shared R&D and Just - Evotec Biologics both contributing to the revised EBITDA expectations [44][46] Question: Market trends and large pharma spending - There is a prioritization of R&D spending in clinical phases, with pressures on research spending due to economic factors and the IRA [44][48] Question: Long-term growth outlook - The company is prepared for potential prolonged market challenges and is focusing on strategic adjustments to optimize performance [50][51] Question: Capacity ramp-up in Toulouse - The company is accelerating the existing capacity ramp-up in Toulouse without immediate plans for expansion at the Redmond site [55][57]

Core Insights - Evotec (EVO) has made significant advancements in its strategic partnership with Bristol Myers Squibb (BMY), resulting in a performance-based payment of $75 million, leading to a nearly 12% increase in shares on August 13 [1][4] Partnership Developments - The partnership between Evotec and Celgene (acquired by Bristol Myers in 2019) began in 2018, focusing on drug discovery and development in molecular glue degraders for oncology. This partnership was extended in 2022 for an additional eight years to include non-oncology indications [2] - Evotec and Bristol Myers have another strategic partnership in neuroscience, which has generated multiple milestone payments totaling $70 million in 2024 alone, with payments of $25 million, $20 million, and $25 million announced in January, June, and August respectively [5] Technology and Market Position - Molecular glue degraders offer long-lasting therapeutic effects compared to conventional small molecule therapeutics, which require multiple daily doses. This technology significantly expands the range of druggable proteins [3] - Year-to-date, Evotec's stock has decreased by 71.7%, contrasting with a 4.7% decline in the industry [4] New Collaborations - Recently, Evotec entered a multi-year collaboration with Pfizer (PFE) focusing on early discovery research for metabolic and infectious diseases, although financial terms were not disclosed [6]

Revenue and Income - Revenues increased by €30.0 million, or 4%, from €751.4 million in 2022 to €781.4 million in 2023, driven by contributions from BMS and a new deal with Sandoz [202]. - Total revenues for Evotec Group increased to €781.4 million in 2023 from €751.4 million in 2022 [217]. - Revenues increased by €30 million, from €751.4 million in 2022 to €781.4 million in 2023, with €9.4 million related to private grants [224]. - Net income (loss) for 2023 was a loss of €83.9 million, compared to a loss of €175.7 million in 2022 [200]. - Net income improved by €91.7 million, or 52.2%, from a loss of €(175.7) million in 2022 to a loss of €(83.9) million in 2023 [224]. Costs and Expenses - Costs of revenue rose by €29.0 million, or 5.0%, from €577.4 million in 2022 to €606.4 million in 2023, primarily due to accelerated expenses for Biologics [203]. - Gross profit remained stable at €175.1 million in 2023, with a gross margin decrease to 22.4% from 23.2% in 2022 [200]. - R&D expenses decreased by €8.1 million, or 10.6%, from €76.6 million in 2022 to €68.5 million in 2023, reflecting lower expenses in Q2 [206]. - Other operating income decreased by €16.8 million, or 20.6%, from €81.6 million in 2022 to €64.8 million in 2023, mainly due to reduced income from Sanofi [209]. - Other operating expenses surged by €42.2 million, from €2.0 million in 2022 to €44.2 million in 2023, largely attributed to costs related to a cyber-attack [210]. - Adjusted EBITDA decreased by €35.3 million, or 35%, from €101.7 million in 2022 to €66.4 million in 2023 [226]. Financial Performance Metrics - Measurement result from investments improved by €163.0 million, from €(172.2) million in 2022 to €(9.1) million in 2023, primarily due to the fair value increase of Exscientia plc [213]. - Financial income increased by €0.9 million, or 11.1%, from €8.3 million in 2022 to €9.3 million in 2023 due to higher interest rates on short-term investments [211]. - Interest expense decreased by €1.4 million, or 10.7%, from €13.1 million in 2022 to €11.7 million in 2023 [212]. - Current tax expense decreased by €18.4 million, or 84.7%, to €3.3 million in 2023 from €21.7 million in 2022 [216]. Segment Performance - The EVT Innovate segment saw a revenue increase of €62.2 million, or 30%, from €204.7 million in 2022 to €266.9 million in 2023, driven by fee-for-service and FTE revenue [202]. - Segment operating income in the EVT Execute segment decreased by €75.5 million, or 232%, from €32.5 million in 2022 to €(43.0) million in 2023 [216]. - Segment Adjusted EBITDA in the EVT Execute segment decreased by €42.9 million, or 40%, from €108.3 million in 2022 to €65.4 million in 2023 [219]. - Segment operating loss in the EVT Innovate segment decreased by €7.2 million, or 62%, from €(11.7) million in 2022 to €(4.5) million in 2023 [219]. Customer Metrics - The number of customers increased from 819 in 2022 to 838 in 2023, while customers contributing over €1 million decreased from 118 to 102 [229][230]. - Annual repeat business rose to 93% in 2023 from 92% in 2022, indicating strong customer retention [231]. Cash Flow and Financing - As of December 31, 2023, cash and cash equivalents totaled €510.9 million, with undrawn credit lines amounting to €141.1 million [232]. - The company has drawn €93.3 million from a new €150 million financing agreement with the European Investment Bank as of December 31, 2023 [234]. - Total loan maturities for 2023 amounted to €436.1 million, up from €329.9 million in 2022 [236]. - For the fiscal year ended December 31, 2023, net cash flows from operating activities generated €36.4 million, despite a net loss of €84 million [242]. - Cash used in investing activities for the year ended December 31, 2023, amounted to €13.3 million, including €213.3 million for property, plant, and equipment [243]. - Net cash provided by financing activities for the year ended December 31, 2023, was €72.0 million, primarily from R&D and investment financing of €112.9 million [244]. - The repayment of lease obligations in financing activities for 2023 amounted to €22.4 million [244]. Future Investments - The company plans to invest approximately €170 million in capital expenditures in 2024, with €80 million allocated for two J.POD facilities [239]. - The company expects to commit roughly €90 million in new capital expenditures in 2024 for various facility expansions and lab equipment [239]. Currency and Risk Management - For the year ended December 31, 2023, 65% of the company's revenue was generated in U.S. dollars, and 11% in pound sterling [411]. - The company recorded a total cash outflow of €95,111 thousand for the year ended December 31, 2023, compared to a cash outflow of €265,131 thousand in 2022 [241]. - As of December 31, 2023, one customer accounted for 6% of the company's trade receivables, down from 22% in 2022, indicating improved credit risk management [416].