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].

| --- | --- | --- | |---------------------------------------------|-------|-------------------------------| | | | | | | | | | | | | | Resetting for profitable growth | | | | | | SCIENTIFIC ES ONAL EXCELLENCE | | Evotec SE, Q1 2024 Analyst Call, 2024-05-22 | | | PAGE 2 #RESEARCHNEVERSTOPS 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 ...

Financial Data and Key Metrics Changes - Group revenues for 2023 were €781.4 million, a 4% increase compared to the previous year, despite significant operational impacts from a cyber incident [42][43] - Adjusted Group EBITDA for the year was €66.4 million, marking a 34% decline from last year, largely due to non-recoverable business and reduced capacity utilization in Q2 [44] - Gross margin declined to 22.6% from 23.2% due to the cyber incident and market challenges, with an adjusted gross margin of 27% excluding Just-Biologics [22][43] Business Line Data and Key Metrics Changes - Revenue from Just-Evotec Biologics reached €108.4 million, reflecting a remarkable increase of over 110% compared to the prior year, driven by strong partnerships [12] - The Innovate segment saw growth of more than 30%, primarily due to contract extensions with BMS in neurodegeneration and target protein degradation [45] - Execute segment revenues grew year-over-year, despite being adversely impacted by the cyber incident and a softening market towards the end of the year [46] Market Data and Key Metrics Changes - The share of biotech in the company's business decreased from approximately 40% to 34% due to fewer new funding events, indicating a challenging environment for biotech companies [39] - The company anticipates a market recovery towards 2025, with a cautious outlook for 2024 due to ongoing challenges in the biotech sector [28][39] Company Strategy and Development Direction - The company is focusing on profitability, efficiency, and high performance, with a strategic reset to align with market demands [9][30] - A new management structure has been introduced, including the appointment of a Chief People Officer to enhance organizational alignment and culture [11] - The company plans to optimize its organizational structure and operational model, with a target of generating annualized EBITDA improvements of over €40 million [79] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2023, including a cyber incident that resulted in €70 million in missed revenue, but expressed confidence in the company's ability to recover and grow [21][44] - The outlook for 2024 includes expectations of double-digit revenue growth, with a focus on Just-Evotec Biologics and differentiated offerings [36][80] - Management highlighted the importance of rebuilding momentum in the sales pipeline following the cyber incident and emphasized the need for careful monitoring of market conditions [66][96] Other Important Information - The company has made significant strides in sustainability, reducing Scope 1 and 2 emissions by 29% [23] - The new CEO, Dr. Christian Wojczewski, is expected to lead the company towards a prosperous future, leveraging his experience in transformational change [9][10] Q&A Session Summary Question: What are the expectations for 2024 and 2025? - Management indicated a qualitative guidance for 2024, expecting at least €100 million in EBITDA and €200 million plus in 2025, while acknowledging uncertainties [58][60] Question: What has changed in the market to prompt a more cautious outlook? - Management noted a decline in biotech funding and a challenging environment, leading to a cautious approach despite some early signs of recovery [64][66] Question: How is the order book looking across the broader business? - Management expressed confidence in the order book, indicating a double-digit growing demand and a strong pipeline, particularly in Just-Evotec Biologics [110]

COLLABORATION LEVERAGES VARIANT BIO'S CUTTING-EDGE GENOMIC DISCOVERY PLATFORM AND EVOTEC'S INTEGRATED END-TO-END R&D PLATFORM AND DISEASE AREA EXPERTISE TO ADDRESS UNMET MEDICAL NEED IN FIBROTIC INDICATIONS COMMERCIAL TERMS INCLUDE RESEARCH FUNDING AND MILESTONES AND/OR ROYALTY PAYMENTS TO EVOTEC BASED ON THE OVERALL SUCCESS OF THE PROGRAM HAMBURG, Germany and SEATTLE, April 18, 2024 /PRNewswire/ -- Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN: DE0005664809; NASDAQ: EVO) and Variant Bio, Inc ...

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