Drug Discovery and Development

Evotec Partnered Drug Discovery and Development

Evotec SE, Company Presentation, July 2019 Forward-looking statement

Information set forth in this presentation contains forward-looking statements, which involve a number of risks and uncertainties. We caution investors that forward-looking statements contained herein are based upon management’s expectations and assumptions as of the date of this presentation. Such forward-looking statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.

PAGE 1 Agenda

Overview

Partnered drug discovery & development

Financials & Outlook

PAGE 2 Leading external drug discovery & development

Company snapshot

100+ € 375 m+ € 95 m+ Co-owned pipeline programmes with significant Revenues1) Adjusted Group EBITDA1) milestone & royalty potential

25+ 2,700+ 200+

Years track record Top-class employees2) Long-term partnerships

1) In 2018 PAGE 3 Medicine of the future will see radical change

Technologies & mega trends

Next gen sequencing More precise & early diagnostics iPSC & CRISPR gene editing Patient-centric medicine RNAi technologies, CAR-T Digital health Checkpoint inhibitors Predictive & preventive medicine & Partners Artificial intelligence, big data Value-based care 3D printing, blockchain, wearables, sensors Real-world data,…

PAGE 4 Productivity challenge will increase

Development costs vs. average peak sales

Development Cost, $ m Sales, $ m

1,992

1,188 +68% 816

465 -43%

2010 2017 2010 2017

Cost per asset increased ~2/3rd since 2010 Average peak sales almost halved since 2010

Source: Deloitte’s Centre for Health Solutions: A new future for R&D? Measuring the return from pharmaceutical innovation 2017 PAGE 5 From fixed to variable costs

R&D outsourcing in € bn ~30-36 ~85-90 ~10 100% 90%

80% 55 5 (~60%) (~50%) 70% ~7 (~70%) 60% ~25 Capital 50% (~90%) ∑ Elasticity € ~150 bn 40%

30% 35 5 (~50%) (~50%) 20% ~3 10% (~30%) ~3 (10%) 0% 0% 10% 20%30% 40%50% 60% 70% 80%90% 100% Discovery Pre-clinical/IND Manufacturing & Clinical development Others

Not outsourced Outsourced

Source: Visiongain – Drug Discovery Outsourcing Market Forecast 2015-2025 and Evotec’s estimates PAGE 6 Building a co-owned portfolio in partnerships

Unique strategy and business approach – Action Plan 2022

Own R&D Co-Owned Pipeline

Action Plan 2022

Fee for Service

PAGE 7 R&D solutions up to IND and CMC manufacturing

Our core competencies

Pre- Hit Lead Target ID/ clinical identi- optimi- Phase I Phase II Phase III Approval Market validation Tox fication sation testing

PAGE 8 Multimodality R&D becomes reality

Small molecules, biologics & other modalities in R&D

Global pharmaceutical market1), 2) US$ bn

CAGR 2017-22e +7% 918 856 >50% 794 743 703 670 8% Cell/Gene therapy

Biologics

5% Small molecules – EVT Core Expertise

2017 2018e 2019e 2020e 2021e 2022e

1) Small molecules forecast from May 2017 and Biologics forecast from Dec 2017 PAGE 9 2) Excluding sales not classified by EvaluatePharma Source: EvaluatePharma > 2,700 x unique expertise

Global centres of excellence

Abingdon, Alderley Park ~680 employees

1st J.POD Hamburg, Göttingen, Munich ~610 employees

Verona, Basel Branford, Princeton, Seattle, Toulouse, Lyon ~660 employees Watertown ~140 + approx. 95 ~550 employees employees and growing

PAGE 10 Agenda

Overview

Partnered drug discovery & development

Financials & Outlook

PAGE 11 ONE fully integrated platform

EVT Execute & EVT Innovate

IP with customers IP with Evotec

IP = Intellectual Property PAGE 12 Improving quality and accelerating R&D

EVT Execute – Selected performance indicators

1,000,000+ >50 >10 Compounds in highly IND – Pre-clinical & selective library clinical candidates Technology acquisitions1) delivered (INDiGO)1)

92% >1.8 >25% Repeat business2) Years average Faster delivery of data contract time at improved quality

1) Since 2012 PAGE 13 2) In 2018 With “Just.Bio” – Even more integrated offering Comprehensive service panel for external innovation

PAGE 14 Building better molecules with better technologies

J.DESIGN Technology Platform

Molecular  J.MD™ – Optimising molecules Design Using machine learning to design and J.MD™ select better biologics through molecular understanding and prediction with Abacus™, an ML software analysis tool  JP3® – Optimising process Leverages high throughput technologies Process & Manufacturing to rapidly deliver robust manufacturing Product Design Design processes JP3® J.POD®  J.POD® – Manufacturing1) Unique solutions for design of flexible, deployable technologies and facilities needed to improve speed and cost- effectiveness of manufacturing up to commercial supply Quality Speed Capacity Cost

1) J.POD are currently under construction for fastest possible initiation to build in USA and potentially also EU – expected 2021 PAGE 15 Strong and well-balanced global customer mix

EVT Execute – Who are our partners? in %

Foundations RoW 6 3

Mid-sized Pharma 17 USA 36 46 Biotech Revenue Customer by Region type Q1 20191) Q1 20191) 61 Europe

Top 20 Pharma

1) Third-party revenues only PAGE 16 Strong portfolio of highest quality partners

EVT Execute alliances – Examples

Partnership Partnership Partnership Partnership Partnership Partnership Partnership focused on focused covering broad focused on focused on focused focused on Huntington on various range of DMPK services infectious on various dermatology Disease indications services diseases indications

Initiated 2006 Initiated 2011 Initiated 2015 Initiated 2016 Initiated 2016 Initiated 2016 Initiated 2018

Partnership Partnership Partnership for Partnership Partnership Partnership Partnership focused on focused on INDiGO, DD, focused on focused on CNS focused on focused on diabetes & reproductive and CMC oncology oncology oncology obesity medicine & women’s health

Initiated 2018 Initiated 2018 Initiated 2015 Initiated 2016 Initiated 2018 Initiated 2017 Initiated 2015

PAGE 17 Building a co-owned pipeline

EVT Innovate – Selected performance indicators

7 >€ 1,000 bn >100 Disease areas of Unmet markets Co-owned pipe- core expertise1) addressed line programmes

10 >10 100%

Clinical Co- First-in-Class and best-in- owned assets Unpartnered large R&D class approaches “Going for initiatives Cure not for Symptoms”

1) CNS, Pain, Oncology, Respiratory, Diabetes/Metabolic diseases, Women’s health, Infectious disease PAGE 18 Creating massive upside with limited cost & risk

Example for co-owned deal structures

Performance-based components (Illustrative)

Ø 8% Ø € 200 m Milestones (MS) per project

€ 5-65 m

Upfront MS 1MS 2MS 3 MS 4 Clinical MS 5 MS 6 MS 7 Total Royalties R&D cost and/or Start research payments

PAGE 19 > 100 projects in fully invested pipeline

Partnership portfolio

Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia BAY-1817080 Chronic cough ND1) Chronic cough Ph. II start SGM-10192) Inflammation (NASH) CT7001 Oncology Ph. II start CT7001 Oncology Ph. II start EVT401 Immunology & Inflammation

Various Women’s health – Endometriosis Clinical Various Women’s health – Endometriosis Various Women’s health – Endometriosis Various Respiratory ND1) Oncology ND1) Immunology & Inflammation ND1) Pain Various Women’s health – Endometriosis EVT801 Oncology TargetImmuniT Oncology – Immunotherapy ND1) Oncology (+ several discovery programmes) ND1) Fibrosis NEW collaboration

Pre-clinical Various Anti-infectives >5 programmes Various CNS, Metabolic, Pain & Inflammation >10 further programmes Various ND1) Nephrology Various ND1) Immunology & Inflammation Various ND1) Nephrology Various ND1) Metabolic – Diabetes Various Oncology Various Immunology & Inflammation – Tissue fibrosis Various Neurodegeneration ND1) Anti-bacterial Various All indications ND1) Dermatological diseases ND1) Facioscapulohumeral Dystrophy INDY inhibitor Metabolic

Various Fibrotic disease Fibrocor Therap. / Galapagos Discovery TargetPicV Antiviral Various Anti-infectives >5 programmes Various Internal: Oncology, CNS, Metabolic, Pain & Inflammation >40 further programmes ND1) Oncology NEW collaboration ND1) Novel antibiotics NEW collaboration ND1) Novel antibiotics NEW collaboration ND1) Oncology – Colorectal cancer NEW collaboration

1) Not disclosed PAGE 20 2) Under review – Clinical Phase II trial currently on hold Note: Several projects have fallen back to Evotec, where Evotec does not intend to run further clinical trials unpartnered, e.g. EVT302, EVT101, … Co-owned projects with great partners

EVT Innovate alliances – Examples

Oncology I Chronic kidney Oncology Fibrosis Neurodegeneration Picornavirus Multi-target alliance disease (“CKD”) Small molecule- Novel mechanisms iPSC-based drug Respiratory Diabetic immunotherapies to in multi-organ fibrosis discovery indications2) complications complement checkpoint inhibitors1)

Initiated 2018 Initiated 2016 Initiated 2015 Initiated 2015 Initiated 2016 Initiated 2017

Oncology II Endometriosis/Pain Diabetes Oncology & Infectious diseases Oncology & Respiratory Respiratory Targeted protein iPSC Beta Cell – Open innovation Joint Venture on degradation Non-hormonal Diabetes alliance Multi-target alliance alliance multiple targets treatments

Initiated 2018 Initiated 2012 Initiated 2015 Initiated 2012 Initiated 2018 Initiated 2016

1) Together with Apeiron PAGE 21 2) Together with Haplogen Better translation for better drugs

Genetics, biomarkers, and better technologies improving success

Human genetics supported targets1) Biomarker-based patient stratification2) % success % success

~3x ~2x

All Genetically No Selection programmes supported biomarker biomarker

1) Source: Nelson et. al., Nat. Genet. 2015 PAGE 22 2) Source: Bio: Clinical Development Success Rates 2006-2015 Re-defining the drug discovery paradigm

Game-changing platforms for better translation

Translational Holistic Superior Models Profiles Knowledge

iPSC PanOmics AI & ML platform platform platform1)

1) Artificial Intelligence & Machine Learning PAGE 23 Disease-relevant profiles to deliver better drugs

Patient-centric and holistic approach

Translational Holistic Superior Models Profiles Knowledge

Define relevance Gain PanOmic insight Convert data into drugs  Medical records  Transcriptomic,  Hypothesis building  Patient iPS cell lines proteomics,  Defining health and metabolomics,  Patient tissue disease genomics samples  Efficacy/Safety profiles data integration building  PanHunter data interpretation

PAGE 24 World-leading initiative in nephrology

NURTuRE – Kidney disease processes, platforms and networks

Biomarker & stratification Disease-affected cell type

Patient data Human kidney- and samples on-a-chip

Disease- specific Patient drugs Clinical Centers

“The anonymised data contained within the NURTuRE biobank has the potential to unlock answers to some of the biggest questions about CKD and NS.” Elaine Davies, Director of Research Operations at Kidney Research UK

PAGE 25 Patient-derived assays as new gold standard

World-leading iPSC processes and network

“IPS cells can become a powerful tool to develop new drugs to cure intractable diseases because they can be made from patients’ somatic cells.” Shinya Yamanaka, Nobel prize laureate

Disease-specific drugs

Screening Patient

Disease Patient- in a dish specific iPSCs

Disease-affected cell types, i.e. neurons, …

1) iPSC = Induced pluripotent stem cells PAGE 26 Opening doors to new indications

Patient-derived disease models as starting points

Partnered protocols Under development

Motor neurons & Dopaminergic neurons Microglia  Neurodevelopmental diseases  Neurodegenerative disease Retina pigment epithelia Cortical neurons  Retinopathies  Neurodegenerative disease Kidney  Lysosomal storage disease  Chronic Kidney Diseases  Polycystic Kidney Disease  Neurodevelopmental disease Astrocytes  CNS diseases  Many orphan diseases Pancreatic beta cells Oligodendrocytes  Diabetes & complications  Multiple sclerosis  Selected LSDs

PAGE 27 BRIDGEs over the “Valley of death“ The funding gap

Basic Applied Technology Development Product Commercialisation Market Entry & Research Research and Demonstration and Market Development Market Volume

Funding Level Public Market

Project Finance Governments Funding Gap Banks/Credit Lines Sponsored Research Incubator Funds Public Private Consortia Industry Acquisition

Industry R&D Corporate Venture Capital

Angel Investors Venture Capital/Private Equity

Source: Derived from an article by Sustainable Development Technology Canada (2013) PAGE 28 Long-term optionality with efficient translation

BRIDGEs & Equity participations – Examples

Equity participation Equity participation Equity participation Equity participation Equity participation Consortium Artificial Intelligence Facioscapulohumeral Metabolic disorders Fibrosis partnership Targeting membership for automated drug muscular dystrophy with MaRS metalloenzymes Kidney diseases design Innovation

Initiated 2017 Initiated 2017 Initiated 2016 Initiated 2017 Initiated 2016 Initiated 2017

Spin-off Equity participation BRIDGE BRIDGE BRIDGE BRIDGE Nanoparticle-based Innovative molecular Partnership with Partnership with Partnership with Partnership therapeutics pathways in oncology Oxford University and MaRS Innovation Arix and Fred Hutch with Sanofi Oxford Sciences Innovation

Initiated 2016 Initiated 2016 Initiated 2016 Initiated 2017 Initiated 2018 Initiated 2018

PAGE 29 Agenda

Overview

Partnered drug discovery & development

Financials & Outlook

PAGE 30 Culture to integrate talent is key for growth

Human Resources

Total operations personnel: Chemists Biologists ~2,200 ~1,900

~870 ~ 1,000 ~600

2014 2015 2016 20172018 2019(e)  Scientific background: Approx. 2/3 Biologists, 1/3 Chemists  > 70% of employees with at least one academic qualification  Approx. 40% of employees have worked for Evotec > 5 years  > 7.9 years on average drug discovery and development experience  > 54% female; > 60 nationalities  > 250 new talents planned for 2019

PAGE 31 Long-term organic growth reflected in guidance

Financial history 2015-2019 (e) – Selected performance indicators

Approx. 10% Group revenue growth1) € 30-40 m unpartnered R&D expenses2) in 2019 (in € m) (in € m)

364.0 263.8 22.9 18.3 18.1 164.5 17.6 127.7

2015 2016 2017 2018 2019(e) 2015 2016 2017 2018 2019(e)

Approx. 10% adj. Group EBITDA growth3) Strong gross margin4) (in € m) (in %)

92.0 35.6 31.0 27.5 29.8 57.2 36.2 8.7

2015 2016 2017 2018 2019(e) 2015 2016 2017 2018 2019(e)

1) 2018 total revenues excluding revenues from recharges according to IFRS 15 2) Evotec focuses its guidance and upcoming reporting during the course of 2019 on the “unpartnered R&D” part. ID expenses will be fully reimbursed by its partner Sanofi (“partnered R&D”); total of R&D expenses in 2018 of € 35.6 m (incl. ID-related expenses) PAGE 32 3) Before contingent considerations, income from bargain purchase and excluding impairments on goodwill, other intangible assets and tangible assets as well as the total non-operating result; 2018 total adjusted Group EBITDA excluding € 3.5 m one-off effects in 2018 4) Gross margin in the future may be more volatile due to the dependency of receipt of potential milestone or out-licensing payments, both having a strong impact on the gross margin, also new mix of business through Aptuit Strong base business and important milestones Condensed income statement Q1 2019 – Evotec SE and subsidiaries in € m1)  Revenue growth mainly due Q1 2019 Q1 2018 % vs 2018 to strong performance in base business and Revenues from contracts with 103.8 81.6 27% milestone contributions customers2)  Gross margin Q1 2019 Gross margin2) 30.5% 22.6% – impacted by better base margins, higher milestone  R&D expenses (14.4) (4.6) 211% contributions, and favourable FX effects  SG&A expenses (14.8) (13.3) 11%  Unpartnered R&D expenses of € 8.1 m (€ 4.6 m)  Other op. income (expenses), net 16.5 6.0 178%  Other operating income up due to reimbursement of ID Operating result 19.1 6.5 192% expenses and increased R&D tax credits Adjusted Group EBITDA3) 30.0 14.0 114%  Adjusted Group EBITDA in Q1 2019 positively affected Net income 13.1 3.5 278% by IFRS 16 (€ 3.1 m)

1) Differences may occur due to rounding 2) PAGE 33 2018 data including reclasses of recharges according to IFRS 15 3) Before contingent considerations, income from bargain purchase and excl. impairments on goodwill, other intangible and tangible assets as well as the total non- operating result Strong team and shareholders for innovation

Management & shareholder structure

̴ 9% Roland >5% Goldman Oetker/ROI Sachs Management Board Supervisory Board >3% AGI1)  Werner Lanthaler (CEO)  Wolfgang Plischke Long-time experience in Ex-Bayer 2) >3% DWS pharma & biotech  Bernd Hirsch >3%  Cord Dohrmann (CSO) Bertelsmann BlackRock, Inc. Long-time experience in drug discovery  Claus Braestrup Ex-Lundbeck  Craig Johnstone (COO) Strong drug discovery and  Iris Löw-Friedrich commercial track record UCB ̴ 10% Novo Holdings A/S  Enno Spillner (CFO)  Michael Shalmi Long-time experience in Novo Holdings A/S finance & biotech ̴ 61% Free float ̴ 1% Management  Elaine Sullivan Carrick Therapeutics Number of shares: 149.9 m Listing: Frankfurt Stock Exchange (MDAX, TecDAX), OTCBB 52 week high/low: € 25.83/€ 14.28

1) Allianz Global Investors GmbH PAGE 34 2) DWS Investment GmbH, formerly Deutsche Asset Management Investment GmbH Strong outlook for 2019

Expected key milestones 2019

 Continued strong growth and new integrated service alliances

 New co-owned partnerships from own R&D

 New clinical initiations and important progress of co-owned pipeline

 Important milestones from existing alliances

 Initiation of new BRIDGEs

 Corporate investing initiatives

PAGE 35 Your contact:

Dr Werner Lanthaler Chief Executive Officer

+49.(0).40.560 81-242 +49.(0).40.560 81-333 Fax [email protected]