Evotec reports Q1 2024 results and provides corporate update

EQS-News: Evotec SE / Key word(s): Quarterly / Interim Statement
Evotec reports Q1 2024 results and provides corporate update

22.05.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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  * CHALLENGING Q1 WITH SOFTNESS MAINLY IN TRANSACTIONAL/DEVELOPMENT SHARED
    R&D BUSINESS AGAINST A STRONG COMPARABLE QUARTER

* STRONG START WITH JUST - EVOTEC BIOLOGICS IN Q1 2024

  * POSITIVE MOMENTUM IN SHARED R&D DISCOVERY CLOSED SALES POINT TO RECOVERY
    OF REVENUES TOWARDS END OF THE YEAR

  * RESET FOR PROFITABLE GROWTH INITIATED, NEW REPORTING SEGMENTS
    INTRODUCED: SHARED R&D AND JUST - EVOTEC BIOLOGICS

Hamburg, Germany, 22 May 2024:
Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN: DE0005664809;
NASDAQ: EVO) today announced financial results and corporate updates for the
first quarter 2024.



HIGHLIGHTS

EVOTEC'S TRANSACTIONAL BUSINESS IMPACTED BY HEADWINDS; STRONG GROWTH IN JUST
- EVOTEC BIOLOGICS

  * Introduction of new reporting segments - Shared R&D and Just - Evotec
    Biologics to simplify and streamline reporting structure and better
    represent operating structure

  * Group revenues decreased by (2)% (excluding currency effects) to EUR 208.7
    m (3M 2023: EUR 213.6 m)

  * Total Shared R&D revenues decreased by (23)% to EUR 155.2 m (3M 2023: EUR
    202.5 m, due to a challenging market environment for transactional
    business while integrated offerings performing well; Just - Evotec
    Biologics revenues increased by 383% to EUR 53.5 m (3M 2023: EUR 11.1 m)

  * Adjusted Group EBITDA totalled EUR 7.8 m (3M 2023: EUR 34.3 m) driven by a
    small single digit decrease in revenues, increasing costs within cost of
    revenues and SG&A, as well as a lower contribution in other operating
    income

STRONG DEVELOPMENTS IN INTEGRATED R&D AND PRECISION MEDICINE PLATFORMS

  * Orders in Discovery up +70%, leading indicator pointing to recovery in
    late 2024 (Discovery business roughly 70% of Shared R&D)

  * New AI-powered strategic partnership with Owkin to accelerate
    therapeutics pipeline in oncology and I&I (Immunology & Inflammation)

  * Progress made in strategic neuroscience partnership with Bristol Myers
    Squibb, Evotec receives a $ 25 m payment to progress further research

  * New agreement with Crohn's & Colitis Foundation to advance drug
    discovery for novel IBD therapies

  * Framework launched with Claris Ventures to accelerate programmes from
    Claris's portfolio companies into the clinic

  * Expanded development and manufacturing agreement for Just - Evotec
    Biologics with ABL for broadly neutralising antibodies against HIV as
    disclosed examples from continued expansion of molecules developed by
    Just - Evotec Biologics

Events after Period-End

  * New strategic partnership to discover and develop fibrosis treatments
    with Variant Bio

* Bayer and Evotec collaborate to advance precision cardiology

CORPORATE

  * Evotec announces CEO transition to Dr Mario Polywka as interim CEO as of
    03 January 2024

* Process to close Chemistry activities in Marcy (Lyon) completed

Events after Period-End

  * New appointment of Aurélie Dalbiez as Chief People Officer ("CPO"),
    effective 15 June 2024

  * Newly appointed Chief Executive Officer ("CEO") Dr Christian Wojczewski
    taking over effective 01 July 2024

  * Announcement of priority reset to profitable growth: Size and footprint
    adjustments to drive expected annualised EBITDA improvement greater than
    EUR 40 m with first savings expected in H2

      * Strategic exit of gene therapy sharpens focus on core modalities and
        optimises footprint through closure of site in Orth, Austria

      * Global purchasing optimisation programme expected to yield first
        benefits in H2 2024

* Pre-boarding of CEO & CPO ongoing

BUSINESS OUTLOOK FOR FULL-YEAR 2024

  * Group revenues expected to grow by a double-digit percentage (FY 2023: EUR
    781.4 m)

  * Mid-single to low double digit percentage reduction of unpartnered
    research and development expenses expected (FY 2023: EUR 64.8 m)

  * Adjusted Group EBITDA expected to grow by a mid-double-digit percentage
    (FY 2023: EUR 66.4 m)

  * Refined guidance to be assessed together with new CEO; update planned
    for H1 results

Laetitia Rouxel, Chief Financial Officer of Evotec, commented: "Evotec's
robust performance in the first quarter, which was impacted by softness in
the Development part of our Shared R&D business, is a testament to our
resilience in a challenging environment. The strategic reset we announced
last month has set us on a dynamic path back to sustainable profitable
growth - our stakeholders will see the efficiency measures we have started
to implement deliver results in H2 of this year. We remain fully convinced
on the long-term potential of Evotec's highly scalable business model with
its focus on scientific innovation and technological leadership."

FINANCIAL HIGHLIGHTS

Key figures of consolidated income statement & segment information
Evotec SE & subsidiaries - First three months of 2024

                 Three                                       Thre-
                 month-                                        e
                   s                                         mont-
                 ended                                        hs
                   31                                        ende-
                 March                                       d 31
                  2024                                       Marc-
                                                               h
                                                             2023
  In     Share-            Just  Inters-     Evotec   Shared         J-  Inters-  Evo-
  kEUR      d R&D               -   egment      Group      R&D         u-   egment   tec
                         Evote-  Elimin-                             s-  Elimin-  Gro-
                              c   ations                              t   ations    up
                         Biolo-                                       -
                           gics                                      E-
                                                                     v-
                                                                     o-
                                                                     t-
                                                                     e-
                                                                      c
                                                                     B-
                                                                     i-
                                                                     o-
                                                                     l-
                                                                     o-
                                                                     g-
                                                                     i-
                                                                     c-
                                                                      s
  Reve-  155,1-          53,54-             208,726  202,46-         1-        -  213-
  nues-      85               2                            8         1-           ,55-
  1)                                                                 ,-              6
                                                                     0-
                                                                     8-
                                                                      8
  Inte-                     268    (268)                   -          -        -     -
  rseg-
  ment
  reve-
  nues
  Cost-  (135,-          (38,8-      200  (173,967)  (136,9-         (-           (16-
  s of     361)             06)                          86)         2-           0,3-
  reve-                                                              3-            20)
  nues                                                               ,-
                                                                     3-
                                                                     3-
                                                                     3-
                                                                      )
  Gros-  19,82-          15,00-     (68)     34,760   65,482         (-        -  53,-
  s           4               4                                      1-            236
  prof-                                                              2-
  it                                                                 ,-
                                                                     2-
                                                                     4-
                                                                     6-
                                                                      )
  Gros-     13%             28%       -%        17%      32%         (-            25%
  s                                                                  1-
  marg-                                                              1-
  in                                                                 0-
  in %                                                               )-
                                                                      %

  R&D    (16,2-            (59)       68   (16,242)  (18,48-          -        -  (18-
  expe-     51)                                           6)                      ,48-
  nses-                                                                             6)
  2)
  SG&A   (38,1-          (7,76-        -   (45,937)  (35,67-         (-        -  (42-
  expe-     71)              6)                           0)         6-           ,58-
  nses                                                               ,-             4)
                                                                     9-
                                                                     1-
                                                                     3-
                                                                      )
  Othe-  12,16-             516        -     12,681   20,187         5-        -  20,-
  r           5                                                      2-            709
  oper-                                                               2
  atin-
  g
  inco-
  me
  Othe-  (3,46-               -        -    (3,469)    (361)          -        -  (36-
  r          9)                                                                     1)
  oper-
  atin-
  g
  Expe-
  nse4-
  )
  Oper-  (25,9-           7,695        -   (18,207)   31,152         (-        -  12,-
  atin-     03)                                                      1-            515
  g                                                                  8-
  inco-                                                              ,-
  me                                                                 6-
  (los-                                                              3-
  s)                                                                 7-
                                                                      )

  Adju-  (5,46-          13,27-        -      7,815   47,850         (-           34,-
  sted       3)               9                                      1-            283
  EBIT-                                                              3-
  DA3)                                                               ,-
                                                                     5-
                                                                     6-
                                                                     8-
                                                                      )

1) Group revenues would have amounted to EUR 209.3 m at constant exchange
rates

2) 3M 2023 includes EUR 0.8 m partnered R&D

3) Net income (loss) adjusted for interest, taxes, depreciation and
amortization of intangibles, impairments on goodwill and other intangible
and tangible assets, total non-operating results, change in contingent
consideration (earn-out) and items that in magnitude, nature or occurrence
would distort the presentation of the financial performance of the Group.

4) As of Q3 2023, the external, one-off related cyber expenses are excluded
from Adjusted Group EBITDA and amount to EUR 1.8 m in Q1 2024 (Q1 2023: 0).
Internal costs of recovery are included in Adjusted Group EBITDA.

More detailed information and financial tables are available in the interim
statement 3M published on the Evotec website under the following link:
https://www.evotec.com/en/investor-relations/financial-publications

STRENGTHENING ACTIVITIES THROUGH INTEGRATED R&D AND PRECISION MEDICINE
PLATFORMS

New AI-powered strategic partnership with Owkin to accelerate therapeutics
pipeline in oncology and I&I
In January, Evotec and Owkin announced an AI-powered integrated multi-target
collaboration in oncology, immunology and inflammation ("I&I"). The
collaboration brings together highly complementary platforms and expertise
to accurately select targets, discover and develop new therapeutics.
Harmonising Owkin's cutting-edge target discovery engine with Evotec's
end-to-end shared R&D platforms and disease biology expertise will
accelerate Owkin's novel programmes from the discovery phase to the clinic.
Evotec will receive R&D funding from Owkin and is eligible to earn
performance milestone payments and royalties on product sales.

Progress in strategic neuroscience partnership with Bristol Myers Squibb
In January, Evotec reported progress within the Company's strategic
partnership with Bristol Myers Squibb, further bolstering the joint pipeline
of advanced neuroscience programmes. Evotec receives a US$ 25 m payment to
progress further research.

New agreement with Crohn's & Colitis Foundation to advance drug discovery
for novel IBD therapies
In January, Evotec entered a new agreement with the Crohn's & Colitis
Foundation ("the Foundation"), the leading non-profit organisation focused
on both research and patient support for inflammatory bowel disease ("IBD"),
which includes Crohn's disease and ulcerative colitis. Under the
collaboration, Evotec joins forces with the Foundation's IBD Therapeutics
Incubator programme that facilitates collaboration between the Foundation,
academic researchers, and industry partners to translate groundbreaking
basic research that was performed by academic researchers and identified by
the Foundation into medical innovations for IBD patients.

Expanded development and manufacturing agreement for Just - Evotec Biologics
with ABL for broadly neutralising antibodies against HIV
In February, Evotec announced that its Seattle-based subsidiary Just -
Evotec Biologics, Inc. has expanded its relationship with Advanced
BioScience Laboratories, Inc. ("ABL"), a global contract development and
manufacturing organisation ("CDMO") serving the US Government and
biopharmaceutical industry.

Acceleration framework launched with Claris Ventures to accelerate
programmes from Claris's portfolio companies into the clinic
In March, Evotec and biotech venture capital firm Claris Ventures ("Claris")
communicated an acceleration framework to streamline programmes from
Claris's portfolio companies into the clinic through Evotec's fully
integrated platform. Evotec is already supporting Claris's portfolio company
IAMA Therapeutics ("IAMA") and has provided IAMA with pre-clinical services,
including INDiGO, for IAMA's fully owned lead programme IAMA-6, culminating
in a successful Clinical Trial Application ("CTA") in December 2023.
Building on this success, the acceleration framework agreement now provides
Claris's other portfolio companies with easy access to Evotec's full range
of integrated services.

New strategic partnership to discover and develop fibrosis treatments with
Variant Bio (after period-end)
Evotec and Variant Bio, Inc. announced a collaboration agreement to identify
a best-in-class treatment for diseases caused by fibrosis. Under the terms
of the risk-sharing partnership, Evotec will receive undisclosed research
funding and may receive pre-clinical and clinical milestones and/or
royalties dependent on the success of the programme. This strategic
framework allows Variant Bio to offset the early costs of drug development
in exchange for a portion of the future upside.

Bayer and Evotec collaborate to advance precision cardiology (after
period-end)
In April, Evotec and Bayer disclosed that they have updated the focus of
their strategic collaboration to developing innovative precision treatments
for cardiovascular diseases. The collaboration aims to identify and validate
novel targets, with the goal of building a portfolio of precision cardiology
therapeutics by leveraging Evotec's disease modelling capabilities using
human induced pluripotent stem cells ("iPSCs"). Under the terms of the
agreement, both companies will contribute drug targets and a comprehensive
set of high-quality technology platforms for the development of innovative
treatment options. Bayer and Evotec will share responsibilities during the
pre-clinical development of potential clinical candidates. Bayer will be
responsible for any subsequent clinical development and commercialisation.

CORPORATE

Evotec announces CEO transition to Dr Mario Polywka as interim CEO
In January, following Dr Lanthaler's departure from the Company, Evotec
conducted a smooth and prompt transition of tasks and responsibilities to Dr
Mario Polywka, who currently serves as Interim CEO. Mario Polywka played a
vital role in building Evotec into the leader it is today - as COO and,
later, as a long-standing member of the Supervisory Board.

Process to close Chemistry activities in Marcy (Lyon) completed
In November 2023, the Company announced that Evotec's management has engaged
into the social process of redeploying its Chemistry activities out of Marcy
(Lyon), France. This process was completed in Q1 2024.

New appointment of Aurélie Dalbiez as Chief People Officer ("CPO"),
effective 15 June 2024 (after period-end)
On 17 April, Evotec announced that Aurélie Dalbiez will join Evotec's
Management Board as the Chief People Officer, effective 15 June. Aurélie
Dalbiez joins Evotec from Corbion, where she served as Chief HR Officer.
Previously, she was Head of HR for the Capsules and Health Ingredients
business at Lonza, and previously worked in various HR roles at Novartis.

Completion of CEO transition (after period-end)
On 23 April, the Supervisory Board of Evotec SE unanimously appointed Dr
Christian Wojczewski as the Company's new CEO, effective 01July 2024. Dr
Mario Polywka will retire from his position at the end of June and will also
not seek re-election for his dormant Supervisory Board mandate, which
expires with the 2024 Annual General Meeting.

Strategic exit of gene therapy (after period-end)
Following the priority reset announced in April 2024, Evotec has decided to
exit gene therapy to bring the focus on the Company's core modalities. As a
consequence, Evotec has decided to close its site Evotec Gene Therapy
("Evotec GT") in Orth an der Donau, Austria. The Company is working closely
with all stakeholders to minimise the impact for the around 40 employees at
Evotec GT. Together with other initiatives in the context of the priority
reset, the footprint adjustment will contribute to Evotec's transition to
profitable growth.

WEBCAST/CONFERENCE CALL

The Company plans to hold a conference call to discuss the results as well
as provide an update on its performance. The conference call will be held in
English.

Webcast details

Date: Wednesday, 22 May 2024
Time: 2.00 pm CEST (01.00 pm BST, 08.00 am EDT)

To join the audio webcast and to access the presentation slides, please
register via this link.

The on-demand version of the webcast will be available on our website:
www.evotec.com/en/investor-relations/financial-publications.

Conference call details

To join via phone, please pre-register via this link. You will then receive
a confirmation email with dedicated dial-in details such as telephone
number, access code and PIN to access the call.

A simultaneous slide presentation for participants dialling in via phone is
available under this link.


ABOUT EVOTEC SE
Evotec is a life science company with a unique business model that delivers
on its mission to discover and develop highly effective therapeutics and
make them available to the patients. The Company's multimodality platform
comprises a unique combination of innovative technologies, data and science
for the discovery, development, and production of first-in-class and
best-in-class pharmaceutical products. Evotec provides high value pipeline
co-creating partnerships and solutions to all Top 20 Pharma and over 800
biotechnology companies, academic institutions, as well as other healthcare
stakeholders. Evotec has strategic activities in a broad range of currently
underserved therapeutic areas, including e.g. neurology, oncology, as well
as metabolic and infectious diseases. Within these areas of expertise,
Evotec aims to create the world-leading co-owned pipeline for innovative
therapeutics and has to-date established a portfolio of more than 200
proprietary and co-owned R&D projects from early discovery to clinical
development. Evotec operates globally with more than 5,000 highly qualified
people. The Company's 17 sites offer highly synergistic technologies and
services and operate as complementary clusters of excellence. For additional
information please go to www.evotec.com and follow us on X/Twitter @Evotec
and LinkedIn.

FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements concerning future
events, including the proposed offering and listing of Evotec's securities.
Words such as "anticipate," "believe," "could," "estimate," "expect,"
"intend," "may," "might," "plan," "potential," "should," "target," "would"
and variations of such words and similar expressions are intended to
identify forward-looking statements. Such statements include comments
regarding Evotec's expectations for revenues, Group EBITDA and unpartnered
R&D expenses. These forward-looking statements are based on the information
available to, and the expectations and assumptions deemed reasonable by
Evotec at the time these statements were made. No assurance can be given
that such expectations will prove to have been correct. These statements
involve known and unknown risks and are based upon a number of assumptions
and estimates, which are inherently subject to significant uncertainties and
contingencies, many of which are beyond the control of Evotec. Evotec
expressly disclaims any obligations or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to
reflect any change in Evotec's expectations with respect thereto or any
change in events, conditions or circumstances on which any statement is
based.

Media Contact Evotec SE:
Gabriele Hansen, SVP Head of Global Corporate Communications,
Gabriele.Hansen@evotec.com
Hinnerk Rohwedder, Director of Global Corporate Communications,
Hinnerk.Rohwedder@evotec.com

IR Contact Evotec SE:
Volker Braun, EVP Head of Global Investor Relations & ESG,
Volker.Braun@evotec.com


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   Language:       English
   Company:        Evotec SE
                   Manfred Eigen Campus / Essener Bogen 7
                   22419 Hamburg
                   Germany
   Phone:          +49 (0)40 560 81-0
   Fax:            +49 (0)40 560 81-222
   E-mail:         info@evotec.com
   Internet:       www.evotec.com
   ISIN:           DE0005664809
   WKN:            566480
   Indices:        MDAX, TecDAX
   Listed:         Regulated Market in Berlin, Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Dusseldorf, Hamburg,
                   Hanover, Munich, Stuttgart, Tradegate Exchange; Nasdaq
   EQS News ID:    1908097

End of News EQS News Service
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1908097 22.05.2024 CET/CEST