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EQS-News: Evotec SE / Key word(s): Quarterly / Interim Statement
Evotec reports Q1 2024 results and provides corporate update
2024-05-22 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
. 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 USD 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 months ended 31 March 2024 Three months ended 31 March 2023

Just - Evotec    Intersegment    Evotec Shared R&  Just - Evotec    Intersegment    Evotec 
In kEUR          Shared R&D      Biologics    Eliminations     Group         D      Biologics    Eliminations     Group 
Revenues^1)       155,185         53,542                   208,726   202,468         11,088               -   213,556 

Intersegment
revenues 268 (268) - - - -
Costs of

revenues        (135,361)       (38,806)             200 (173,967) (136,986)       (23,333)                 (160,320) 
Gross profit       19,824         15,004            (68)    34,760    65,482       (12,246)               -    53,236 

Gross margin
in % 13% 28% -% 17% 32% (110)% 25%

R&D expenses^

2)               (16,251)           (59)              68  (16,242)  (18,486)              -               -  (18,486) 
SG&A expenses    (38,171)        (7,766)               -  (45,937)  (35,670)        (6,913)               -  (42,584) 

Other
operating
income 12,165 516 - 12,681 20,187 522 - 20,709
Other
operating
Expense^4) (3,469) - - (3,469) (361) - - (361)
Operating
income (loss) (25,903) 7,695 - (18,207) 31,152 (18,637) - 12,515

Adjusted
EBITDA^3) (5,463) 13,279 - 7,815 47,850 (13,568) 34,283

===
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 USUSD 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.

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