6-K
Evotec SE (EVO)
6-K
2024-08-14
For: 2024-08-14
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April 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TORULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2024
COMMISSION FILE NUMBER 001-34041
EvotecSE
(Translation of registrant’s name into English)
Essener Bogen 7
22419 Hamburg
Germany
Tel:+49 40 560810(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F: Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
On August 14, 2024, Evotec SE (the “Company”) issued a press release announcing the Company’s financial results and business updates for the first half of 2024 attached hereto as Exhibit 99.1.
EXHIBIT INDEX
| Exhibit | Description of Exhibit |
|---|---|
| 99.1 | Evotec SE Half-Year Report dated August 14,<br> 2024 |
SIGNATURE
Pursuant to the requirements of s the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Evotec SE | |
|---|---|
| By: | /s/ Laetitia Rouxel |
| Name:<br>Laetitia Rouxel | |
| Title: Chief Financial Officer |
Date: August 14, 2024
EXHIBIT INDEX
| Exhibit | Description<br> of Exhibit |
|---|---|
| 99.1 | Evotec<br> SE Half-year report dated August 14, 2024 |
Exhibit 99.1
| INTERIM STATEMENT 6M 2024<br>For further information, please contact: Volker Braun, EVP Head of Global Investor Relations &<br>ESG, volker.braun@evotec.com, M. +49.(0)151.1940 5058, www.evotec.com |
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| HIGHLIGHTS<br>} SECOND QUARTER INFLUENCED BY VOLATILITY IN SHARED R&D PORTFOLIO AND<br>CAPACITY RAMP-UP OF J.POD TOULOUSE, FRANCE<br>} IMPROVED ORDER INTAKE IN DISCOVERY NOT FULLY TRANSLATING INTO REVENUES<br>IN 2024<br>} RESET FOR PROFITABLE GROWTH ON TRACK; FIRST VISIBLE EFFECTS IN H2<br>} REFINED GUIDANCE FOR FY 2024 TARGETING REVENUES IN A RANGE OF € 790 -<br>820 M; ADJ. EBITDA EXPECTED WITHIN RANGE OF € 15 - 35 M<br>} EXPANSION OF TECH PARTNERSHIP WITH SANDOZ (AFTER PERIOD-END)<br>} CLOSING OF A SYNDICATED LOAN FACILITY IN THE AMOUNT OF € 250 M (AFTER<br>PERIOD-END)<br>} START OF NEW CEO DR CHRISTIAN WOJCZEWSKI ON 1 JULY<br>NAVIGATING IN A CHALLENGING H1 2024<br>} Group revenues increased by 2% (without fx impacts) to € 390.8 m (6M 2023: € 383.8 m)<br>} Total Shared R&D revenues decreased by (7)% to € 302.4 m (6M 2023: € 324.8 m), due to a challenging<br>market environment; Just - Evotec Biologics revenues increased by 50% to € 88.5 m (6M 2023: € 59.0 m)<br>} Adjusted Group EBITDA totalled € (0.5) m (6M 2023: € 33.9 m) driven by a still unfavourable relation of<br>revenues and costs in the Shared R&D segment as well as costs related to the ramp up of the new J.POD in<br>Toulouse, France.<br>} Closed sales in second quarter related to differentiated discovery services doubled versus an already very<br>strong first quarter.<br>INTERIM STATEMENT 6M 2024<br>2<br>2 |
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| STRONG DEVELOPMENTS IN INTEGRATED R&D AND PRECISION MEDICINE<br>PLATFORMS<br>} New and extended collaborations signed with Owkin (immunology and inflammation), Crohn’s & Colitis<br>Foundation (inflammatory bowel disease), Variant Bio (fibrosis), Bayer (precision cardiology), CHDI<br>(Huntington’s disease), Inserm, Lille University Hospital and Inserm Transfert (obesity and metabolic<br>diseases)<br>} Further progress made in strategic neuroscience collaboration with Bristol Myers Squibb (BMS), research<br>payments of US$ 25 m and US$ 20 m, announced in January and June<br>} Validation of Just – Evotec Biologics’ strategy with new and extended agreements, e.g. with ABL, Fibrogen,<br>and the U.S. Department of Defense<br>Events after Period-End<br>} Expansion of tech partnership with Sandoz for development and commercial manufacturing of biosimilars<br>} New multi-year master research collaboration and option and license agreement with Pfizer, initially focusing<br>on early discovery research for metabolic and infectious diseases<br>} Further progress made in strategic neuroscience collaboration with Bristol Myers Squibb, payments of US$<br>25 m received<br>CORPORATE<br>} Management Board transition completed: Effective 01 July 2024, Dr Christian Wojczewski took over as Chief<br>Executive Officer (“CEO”) from interim CEO Dr Mario Polywka; since 15 June 2024 Aurélie Dalbiez<br>appointed new Chief People Officer (“CPO”)<br>} Reset for profitable growth on track to achieve expected annualized adjusted EBITDA improvement of over<br> € 40 m starting in H2 2024, through<br> ◦ Exit of gene therapy and closing site of Orth, Austria and Chemistry activities in Marcy (Lyon)<br> ◦ In the first half of 2024 the group decided that the operation of Halle/Westphalia, Germany is<br>no longer considered a core activity<br> ◦ Benefits from global purchasing optimisation programme<br> ◦ Identified headcount reduction potential of approximately 400 roles across the global footprint<br> ◦ Reduction of physical footprint through surrendering of certain lease agreements<br> ◦ One-off costs related to priority reset measures of € 68 m have been recognized as of H1<br>} Evotec receives NASDAQ notice related to late filing of 20-F; filing completed on 14 August 2024<br>} Annual General Meeting 2024: Most agenda items adopted with great majority; Wesley Wheeler and Duncan<br>McHale elected to the Supervisory Board, replacing Dr Elaine Sullivan and Dr Mario Polywka<br>INTERIM STATEMENT 6M 2024<br>3<br>3 |
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| REFINED BUSINESS OUTLOOK FOR FULL-YEAR 2024<br>} Group revenues expected in the range of € 790 – 820 m (2023: € 781.4 m€ 781.4 m). .<br>} R&D expenditures are expected in a range of € 50 – 60 m (2023: €64.8 m).<br>} Adjusted Group EBITDA is expected to reach € 15 – 35 m (2023: €66.4 m€ 64.8 m).<br>While the company saw good growth in sales orders, phasing and mix related to longer contract terms and less<br>fast turning service business suggest that the contribution in 2024 will be lower than initially anticipated. In<br>addition, EBITDA is affected from higher ramp-up costs at Just - Evotec Biologics to meet significantly sales order.<br>INTERIM STATEMENT 6M 2024<br>4<br>4 |
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| FINANCIAL HIGHLIGHTS<br>The following table provides an overview of the financial performance in the first six months 2024 compared to the same<br>period in 2023. More detailed information can be found in the notes section of this interim statement.<br>Key figures of consolidated income statement & segment information<br>Evotec SE & subsidiaries – First six months of 2024<br>2024 2023<br>In k€<br>Evotec Group Evotec Group<br>Revenues1)<br> 390,850 383,835<br>Intersegment revenues — —<br>Costs of revenues (340,348) (284,275)<br>Gross profit 50,501 99,560<br>Gross margin in % 13 % 26 %<br>R&D expenses2) (29,253) (30,863)<br>SG&A expenses (91,905) (88,192)<br>Other operating<br>income 24,233 38,486<br>Other operating<br>expense (7,933) (37,645)<br>Impairments of intangible<br>assets — (5,119)<br>Reorganization costs (68,456) —<br>Operating income (loss)<br> (122,813) (23,773)<br>Adjusted EBITDA3),4) (467) 33,919<br>1) Group revenues would have amounted to €389.8 m at constant exchange rates<br>2) H1 2023 includes € 1.8 m partnered R&D, not applicable in H1 2024<br>3) Net income (loss) adjusted for interest, taxes, depreciation and amortization of intangibles, impairments on goodwill and<br>other intangible and tangible assets, total non-operating results, change in contingent consideration (earn-out) and items that in<br>magnitude, nature or occurrence would distort the presentation of the financial performance of the Group.<br>4) As of Q3 2023, the external, one-off related cyber expenses are excluded from Adjusted Group EBITDA and amount to €5.1 m<br>in H1 2024 (H1 2023: € 7.8 m). Internal costs of recovery are included in Adjusted Group EBITDA. Adjusted EBITDA as of H1<br>2023 has been adjusted accordingly in order to reflect this new defintion.<br>The following table details Evotec’s segment revenues and operating income (loss) for the three months ended 31 March<br>2024:<br>In T€<br>Shared<br>R&D<br>Just Evotec<br>Biologics<br>Intersegment<br>Eliminations<br>Evotec Group<br>3M 2024<br>Revenues 302,379 88,924 (453) 390,850<br>Operating result (113,617) (9,196) — (122,813)<br>INTERIM STATEMENT 6M 2024<br>5<br>5 |
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| REPORT ON THE FINANCIAL SITUATION AND RESULTS<br>1. Results of operations<br>During the six months ended 30 June 2024 Group revenues increased by 2% to € 390.8 m compared to the same<br>period of the previous year (6M 2023: € 383.8 m). The increase was driven by 50% higher revenues within Just-Evotec<br>Biologics, however, within the Shared R&D segment, the revenue decreased by (7)% compared to the comparable prior<br>year period. Excluding the positive fx-effects, Group revenues increased by 1.6% to €389.8 m. Base business increased<br>by 3% from €379.6 m in 6M 2023 to €390.7 m in the six months ended 30 June 2024.<br>The Costs of revenue for the six months ended 30 June 2024 amounted to € 340.3 m (6M 2023: € 284.3 m) yielding a<br>gross margin of 12.9% (6M 2023: 25.9%). Within the comparable prior year, €31.5 m were reclassified from Costs of<br>revenue towards Other Operating Expense, representing the internal effort of the Operations functions focused on<br>business recovery after the cyber-attack. The other main driver of the increase in the costs of revenue lies within Just-Evotec Biologics due to higher headcount numbers and therefore higher labour costs, as well as increased material and<br>supplier costs to cover the increased business.<br>R&D expenses decreased to € 29.3 m, compared to € 30.9 m in the six months ended 30 June 2023 ((5.2)%), with a<br>focused capital allocation to selected R&D projects.<br>SG&A expenses for the six months ended 30 June 2024 amounted to € 91.9 m and were thus € 3.7 m or 4% higher<br>compared to last year (6M 2023: € 88.2 m) especially driven by higher IT costs as well as Business Development and<br>General & Admin expenses. The increase was related to higher personnel costs, consultancy and depreciation expenses.<br>Overall, SG&A expenses have increased significantly more than the revenue growth in the past years and a simplification<br>of the organization structure, operating model and footprint is needed as announced in the reorganization program.<br>For the six months ended 30 June 2024, other operating income amounted to € 24.2 m, compared to € 38.5 m for<br>the comparable prior year period. The decrease was driven by the Sanofi contribution that ended in 2023 (6M 2023<br> €16.9 m). Key driver for the decrease of other operating expenses from € 37.6 m in the first six months 2023 to € 7.9<br>m in the first six months 2024 were the internal and external costs related to the recovery after the cyber-attack, which<br>are significantly lower within H1 2024.six months ended 30 June 2024.<br>The Group has also reviewed its finite lived intangible assets as well as Goodwill for impairment whenever triggering events or<br>changes in circumstances indicate that carrying amount value may not be recoverable. Following this review, the Group has not<br>identified any impairment trigger. In the six months ended 30 June 2023, the review led to the recognition of an impairment<br>loss of €(5.1) m linked to research and development projects.<br>For the six months ended 30 June 2024 Reorganisation costs amounted to €(68.5) m driven by planned headcount<br>reduction, planned closure of select sites, and the further reduction of physical footprint through surrendering of certain<br>lease agreements and the associated costs.<br>Adjusted Group EBITDA for the six months ended 30 June 2024 amounted to € (0.5) m (6M 2023: € 33.9 m) driven<br>by higher Costs of revenues and SG&A expenses and less contributions within Other operating income.<br>The net income (loss) as of 30 June 2024 amounted to € (115.6) m (6M 2023: € (28.8) m), predominantly driven by<br>higher costs of revenues and reorganization costs, partly offset by lower other operating expenses.<br>INTERIM STATEMENT 6M 2024<br>6<br>6 |
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| 2. Results in our reportable segments Shared R&D and Just-Evotec Biologics<br>In the Shared R&D segment, revenues (incl. intersegment revenues) decreased by (7)% to € 302.4 m (6M 2023: €<br>324.8 m) mainly driven by a weaker performance within parts of the Discovery business area partially offset by increased<br>revenues within the transactional business areas that was impacted heavily in the prior year after the cyber-attack.<br>Costs of revenue within Shared R&D were at € 259.5 m in the six months ended 30 June 2024 (6M 2023: € 242.8 m),<br>corresponding to a gross margin of 14.2% (6M 2023: 25.3%). The decrease in the gross margin was mainly driven by a<br>lower top-line performance, a high fixed-cost base and under-utilization in some areas of Shared R&D. In the six months<br>ended 30 June 2023 we reclassified €22.1 m from Costs of revenues to Other operating expenses as this was the time we<br>spent on recovering after the cyber-attack.<br>R&D expenses decreased to € 29.3 m (6M 2023: € 31.0 m), with a focused capital allocation approach to specific R&D<br>projects. SG&A expenses increased to € 74.9 m (6M 2023: € 73.5 m), mainly caused by an increase in IT expenses. For<br>the six months ended 30 June 2024, other operating income amounted to € 23.1 m, compared to € 37.4 m for the<br>comparable prior year period, driven by the conclusion of the Sanofi contribution in 2023. Other operating expenses<br>were € 7.9 m (6M 2023: € 28.2 m) driven by one-off expenses related to the cyber-attack but significantly lower<br>compared to the comparable prior year period due to less internal and external cyber costs<br>The adjusted EBITDA of the Shared R&D segment was € (3.8) m (6M 2023: € 29.2 m), due to lower revenues on an<br>increasing cost base within costs of revenues and SG&A expenses and lower other operating income.<br>Revenues within Just-Evotec Biologics increased to € 88.5 m (6M 2023: € 59.0 m). This growth of 50% was strongly<br>driven by the higher order book in our Redmond, US plant. The new factory in Toulouse, France, is expected to be fully<br>operational in Q1 2025.<br>Costs of revenues of € 81.0 m were incurred in the first six months 2024 with higher labour and service and supplier<br>costs to cover the increased base business in the US and the continuous ramp-up in France, compared to € 41.5 m within<br>the six months ended 30 June 2023, where we were still in the ramp up phase in the US. In the same period, gross<br>margin significantly decreased to 8.9% from 29.6% in the first six months 2023, where last year was driven by the<br>recognition of Sandoz work packages.<br>The increase in SG&A expenses (6M 2024: € 17.0 m vs. 6M 2023: € 14.7 m) was mainly caused by higher headcount<br>and the continuous investment in IT-systems and process improvements. Other Operating Expense decreased by €<br>9.4 m, as this amount was reclassified from Costs of Revenues to Other Operating Expense within the six months ended<br>30 June 2023 related mainly to time spent on recovering after the cyber-attack.<br>The adjusted EBITDA within Just-Evotec Biologics has decreased to € 3.3 m (6M 2023: € 4.8 m), as the cost base has<br>increased stronger than the revenue growth. Within the six months ended 30 June 2023, we recognized a higher upfront<br>revenue compared to this year. The base business development however, shows a positive development.<br>3. Financing and financial position<br>Net cash used in operating activities in the first six months ended 30 June 2024 was € (98.6) m compared with €<br>(7.3) m in the first six months 2023. This year’s figure is negatively affected by an increased net loss and unfavourable<br>changes in working capital.<br>INTERIM STATEMENT 6M 2024<br>7<br>7 |
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| Net cash used in investing activities for the six months ended 30 June 2024 amounted to € (62.2) m (6M 2023: €<br>34.7 m). Capital expenditure decreased to € 75.5 m (6M 2023: € 104.0 m) and was mainly related to investments in the<br>Just-Evotec Biologics production facilities. The proceeds from current investments (net) decreased significantly to € 17.1<br>m (6M 2023: € 141.6 m) and originated from the (net) sale of bonds and fixed term investments.<br>Net cash used in financing activities was € (124.9) m in the six months ended 30 June 2024 (6M 2023: € 6.2 m)<br>which mainly results from the repayments of loans and lease obligations amounting to € (122.5) m (6M 2023: € (10.6)<br>m ).<br>Cash and cash equivalents amounted to € 221.9 m as of 30 June 2024 (31 December 2023: € 510.9 m ).<br>Total Liquidity decreased to € 298.9 m (31 December 2023: € 604.1 m).<br>4. Assets, liabilities, and stockholders’ equity<br>Assets<br>Between 31 December 2023 and 30 June 2024, total assets decreased by € 253.6 m to € 1,998.9 m (31 December 2023:<br> € 2,252.5 m).<br>Investments amounted to € 77.0 m (31 December 2023: € 93.2 m). This decrease was due to the net sale of coupon<br>bonds.<br>Trade and other receivables increased in the six months ended 30 June 2024 by € 21.9 m to € 120.2 m (31<br>December 2023: € 98.4 m). The increase was predominantly due to issued invoices to one of our key customers.<br>Contract assets amounted to € 35.4 m (31 December 2023: € 25.0 m). This increase is mainly due to an increase in<br>contract assets in Just Evotec Biologics Inc. of € 8.3 m.<br>Current tax assets increased from € 80.7 m as per 31 December 2023 to € 104.5 m as per 30 June 2024. The<br>increase mainly resulted from an increase in R&D tax credits as well as a reclassification from non-current tax assets.<br>Other current financial assets including derivatives decreased to € 10.4 m (31 December 2023: € 12.8 m) which<br>is mainly due to a decrease in the fair value of our derivatives.<br>Prepaid expenses and other current assets as of 30 June 2024 decreased by € 2.6 m to € 48.8 m compared to 31<br>December 2023 (€ 51.3 m) primarily due to a decrease in VAT receivables.<br>Non-current investments and other non-current financial assets amounted to € 124.2 m (31 December 2023:<br> € 139.0 m). This decrease resulted mainly from the revaluation of Evotec’s share in Exscientia plc and Sernova Corp.<br>Property, plant and equipment increased by € 13.2 m to € 819.7 m (31 December 2023: € 806.6 m) driven by<br>capital expenditures for site expansions, especially in Just - Evotec Biologics EU SAS and Just - Evotec Biologics Inc.,<br>exceeding the depreciation as well as the effect from the early termination of lease contracts in connection with the<br>reorganization.<br>INTERIM STATEMENT 6M 2024<br>8<br>8 |
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| Intangible assets and Goodwill increased by € 5.0 m compared with 31 December 2023, to € 296.1 m (31<br>December 2023: € 291.1 m), primarily due to new developed technologies in relation with the Sandoz collaboration as<br>well as to a positive impact from foreign currency translation.<br>Non-current tax assets decreased to € 68.9 m (31 December 2023: € 94.4 m) mainly due to the reclassification to<br>current tax receivables.<br>Deferred tax assets increased to €29.4 m (31 December 2023: €14.3 m) mainly driven by additional tax loss carry<br>forwards in Germany.<br>Liabilities<br>Current financial liabilities decreased to €45.3 m (31 December 2023: €149.1 m) due to the repayment of of a<br> “Schuldscheindarlehen” and the related interest.<br>Trade and other payables decreased by € 47.4 m in the six months ended 30 June 2024 to € 86.9 m (31<br>December 2023: € 134.3 m), resulting from the settlement of a high amount of invoices in the first half of 2024.<br>Current and non-current contract liabilities decreased by € 28.6 m to € 224.3 m (31 December 2023: € 252.9 m)<br>due to the recognition of revenue in relation with a BMS collaboration.<br>Current and non-current provisions increased by € 58.4 m to € 119.6 m (31 December 2023: € 61.2 m), mainly<br>driven by an additional provision in the amount of € 64.5 m in relation with our global reorganization, partially offset by<br>the payout of the employee bonus.<br>Stockholders’ equity<br>Total stockholders’ equity decreased by € 108.4 m to € 1,011.5 m (31 December 2023: € 1,119.9 m).<br>Evotec’s equity ratio as of 30 June 2024 remained stable with 50.6% (31 December 2023: 49.7%).<br>5. Human Resources<br>Employees<br>Headquartered in Hamburg, Germany, the Evotec Group employs 5,022 people globally as of 30 June 2024 (31<br>December 2023: 5,061 employees), which corresponds to a decrease of (0.8)% to the prior year’s end. Overall, the<br>number of employees grew by 39 compared to the six months ended 30 June 2023 with 4,983 , driven by increased<br>headcount in Just - Evotec Biologics.<br>Stock-based compensation<br>During the first half of 2024, a total of 536,044 Share Performance Awards and of 591,829 Restricted Awards were<br>granted. Thereof, 117,292 awards were given to the members of the Management Board. The remaining number of<br>awards were given to other key employees.<br>INTERIM STATEMENT 6M 2024<br>9<br>9 |
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| During the first half-year 2024, 367,649 shares were issued through the exercise of Share Performance Awards. As of 30<br>June 2024, the total number of Share Performance and Restricted Awards available for future exercise amounted to<br>2,542,238 (approximately 1.0% of shares in issue).<br>Share Performance and Restricted Awards have been accounted for under IFRS 2 using the fair value at the grant date.<br>The Supervisory Board of Evotec SE does not hold any Share Performance Awards.<br>Shareholdings of the Boards of Evotec SE as of 30 June 2024<br>Shares Stock Options Outstanding<br>Shares from<br>vested SPA´s<br>Granted<br>unvested SPA´s<br>and RSA´s<br>(total)<br>Restricted<br>Shares from<br>STI Payout<br>Management Board<br>Dr Mario Polywka 11,938 — — — —<br>Dr Cord Dohrmann 183,356 — — 132,768 10,679<br>Dr Matthias Evers — — — 103,593 —<br>Dr Craig Johnstone 28,844 — — 122,179 —<br>Laetitia Rouxel — — — 32,214 —<br>Aurélie Dalbiez — — — — —<br>Supervisory Board<br>Prof. Dr Iris Löw-Friedrich — — — — —<br>Roland Sackers — — — — —<br>Camilla Macapili<br>Languille — — — — —<br>Dr Constanze Ulmer-Eilfort — — — — —<br>Dr Duncan McHale — — — — —<br>Wesley Wheeler 3,188* — — — —<br>*Wesley Wheeler acquired 6,375 ADRs, each representing one-half of one ordinary share, no par value per share,<br>Pursuant to Article 19 of the European Market Abuse Regulation (EU-Marktmissbrauchsverordnung), the above tables<br>and information list the number of Company shares held and rights for such shares granted to each board member as of<br>30 June 2024 separately for each member of Evotec’s Management Board.<br>RISKS AND OPPORTUNITIES MANAGEMENT<br>The risks and opportunities described in Evotec’s Annual Report 2023 on pages 52 to 70 remain mainly unchanged. At<br>present, no risks have been identified that either individually or in combination could endanger the continued existence<br>of Evotec SE.<br>INTERIM STATEMENT 6M 2024<br>10<br>10 |
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| GENERAL MARKET AND HEALTHCARE ENVIRONMENT<br>Trends in the pharmaceutical and biotechnology sector<br>The biopharmaceutical industry is still affected by a number of negative market developments and indicators, starting<br>back in the second half of 2023. Workforce reductions, ceasing operations and a wait and see approach is ongoing,<br>described in Evotec’s Annual Report 2023 on page 34. Please see Evotec’s Annual Report 2023 for further information.<br>THE EVOTEC SHARE<br>Performance of the Evotec share in the first six months of 2024<br>The Evotec share started the year 2024 at € 21.28 and closed on 28 June 2024 at € 8.98. The departure of the former<br>CEO on 3 January 2024 triggered a sharp share price correction that was completed on 12 February at a price of € 14.22.<br>Supported by news related to operating progress, the share price stabilised at that level during March 2024. On 24 April<br>2024, following the announcement of the business figures for 2023 and the release of plans to refocus the business,,<br>Evotec recorded a further drop in its share price to minimum € 7.34 on 19 June 2024.<br>The announcement by Evotec and Sandoz to expand their technology partnership for the development and commercial<br>manufacturing of biosimilars as well as the release on a multi-year master research collaboration with Pfizer, caused a<br>moderate recovery in early July. Based on the closing price as of 30 June 2024 of € 8.98, the Evotec share traded 58%<br>lower than at the end of 2023, significantly underperforming both benchmark indices, TecDAX (0%) and the MDAX<br>(-7%).<br>INTERIM STATEMENT 6M 2024<br>11<br>11 |
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| UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL<br>STATEMENTS1<br>Evotec SE and Subsidiaries<br>Consolidated interim income statement for the period from 1 January to 30 June 2024 and 30 June 2023<br>in k€ except share and per share<br>data<br>Note<br>reference<br>Six months<br>ended 30 June<br>2024<br>Six months<br>ended 30 June<br>2023<br>Three months<br>ended 30 June<br>2024<br>Three months<br>ended 30 June<br>2023<br>Revenue 6 390,850 383,835 182,123 170,279<br>Costs of revenue (340,348) (284,275) (166,382) (123,956)<br>Gross profit 50,501 99,560 15,742 46,324<br>Operating income (expense)<br> — Research and development (29,253) (30,863) (13,011) (12,377)<br> — Selling, general and<br>administrative expense (91,905) (88,192) (45,969) (45,609)<br> — Other operating income 24,233 38,485 11,552 17,777<br> — Other operating expense (7,933) (37,644) (4,464) (37,284)<br> — Impairments of intangible assets — (5,119) — (5,119)<br> — Reorganization costs 12 (68,456) — (68,456) —<br>Total operating income<br>(expense) (173,314) (123,333) (120,347) (82,612)<br>Operating income (loss) (122,813) (23,773) (104,606) (36,288)<br>Non-operating income<br>(expense)<br>Gain (loss) on investment in<br>financial instruments reevaluation (8,555) 5,567 (393) 8,065<br>Share of profit (loss) and<br>reevaluation of at-equity<br>investments 403 (7,149) 1,454 (3,090)<br>Other Financial income 1,884 5,678 467 2,826<br>Other Financial expense (5,416) (5,038) (2,743) (2,540)<br>Other non-operating income<br>(expense) 3,260 (1,937) 1,366 10,590<br>Total non-operating income<br>(expense) (8,423) (2,879) 151 15,851<br>Net Income (loss) before taxes (131,236) (26,652) (104,455) (20,437)<br> — Income taxes 14 15,632 (2,175) 9,523 5,508<br>Net income (loss) (115,605) (28,828) (94,932) (14,929)<br>Weighted average shares<br>outstanding 177,242,377 176,935,744 177,303,470 176,935,744<br>Net result per share (0.65) (0.16) (0.54) (0.08)<br>INTERIM STATEMENT 6M 2024<br>12<br>12<br>1) Each financial statement line item is rounded individually. Totals and subtotals may therefore deviate slightly from the sum of the individual items. |
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| Evotec SE and Subsidiaries<br>Consolidated interim statement of comprehensive income (loss) for the six months ended 30 June 2024 and<br>30 June 2023<br>in k€<br>Six months<br>ended<br>30 June 2024<br>Six months<br>ended<br>30 June 2023<br>Three months<br>ended<br>30 June 2024<br>Three months<br> ended<br>30 June 2023<br>Net income (loss) (115,605) (28,828) (94,932) (14,929)<br>Accumulated other comprehensive income<br>Items which are not re-classified to the<br>income statement<br>Revaluation of equity investments (3,856) 1,861 (2,134) 865<br>Items which have to be re-classified to the<br>income statement at a later date<br>Foreign currency translation 11,176 4,264 3,995 5,475<br>Revaluation and disposal of other short-term<br>investments measured at fair value through other<br>comprehensive income (1,382) 4,225 (3,649) (4,216)<br>Other comprehensive income (loss) 5,938 10,350 (1,788) 2,124<br>Total comprehensive income (loss) (109,667) (18,478) (96,720) (12,805)<br>INTERIM STATEMENT 6M 2024<br>13<br>13 |
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| Evotec SE and Subsidiaries<br>Consolidated interim statement of financial position as of 30 June 2024 and as of 31 December 2023<br>in k€ Note<br>reference<br>as of 30 June<br>2024<br>as of 31 December 2023<br>ASSETS<br>Current Assets:<br> — Cash and cash equivalents 221,883 510,909<br> — Investments 13 76,983 93,203<br> — Trade and other receivables 120,250 98,396<br> — Contract assets 35,409 25,000<br> — Inventories 37,343 30,890<br> — Current tax assets 104,531 80,659<br> — Other current financial assets including derivatives 10,352 12,759<br> — Prepaid expenses and other current assets 48,754 51,345<br>Total current assets 655,505 903,162<br>Non-current assets:<br> — Non-current investments and other non-current financial assets 124,223 139,023<br> — Investments in associates and Joint ventures 9 5,058 3,071<br> — Property, plant and equipment 7 819,733 806,563<br> — Intangible assets and Goodwill 8 296,120 291,089<br> — Deferred tax assets 29,376 14,330<br> — Non-current tax assets 68,878 94,393<br> — Other non-current assets — 837<br>Total non-current assets 1,343,388 1,349,306<br>Total assets 1,998,893 2,252,468<br>INTERIM STATEMENT 6M 2024<br>14<br>14 |
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| in k€ Note<br>reference<br>as of 30 June 2024 as of 31 December 2023<br>LIABILITIES AND STOCKHOLDERS' EQUITY<br>Current Liabilities:<br> — Current financial liabilities 10 45,330 149,096<br> — Trade and other payables 86,942 134,319<br> — Contract liabilities 96,647 97,587<br> — Deferred income 9,621 10,268<br> — Provisions 12 83,469 45,165<br> — Current income tax liabilities 8,394 5,565<br> — Other current liabilities 27,075 22,572<br>Total current liabilities 357,479 464,573<br>Non-current liabilities:<br> — Non-current financial liabilities 10 428,181 477,112<br> — Deferred tax liabilities 14,972 18,137<br> — Provisions 12 36,167 16,063<br> — Contract liabilities 127,671 155,287<br> — Other non-current liabilities 22,958 1,387<br>Total non-current liabilities 629,948 667,987<br>Stockholders’ equity:<br> — Share capital 11 177,553 177,186<br> — Additional paid-in capital 1,450,513 1,449,654<br> — Retained Earnings (591,896) (476,290)<br> — Accumulated other comprehensive income (24,704) (30,643)<br>Total stockholders' equity 1,011,466 1,119,908<br>Total liabilities and stockholders’ equity 1,998,893 2,252,468<br>INTERIM STATEMENT 6M 2024<br>15<br>15 |
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| Evotec SE and Subsidiaries<br>Condensed consolidated interim statement of cash flows for the six months ended 30 June 2024 and 30<br>June 2023<br>in k€<br>Six months<br>ended 30<br>June 2024<br>Six months<br>ended 30<br>June 2023<br>Cash flow from operating activities:<br> — Net income (loss) (115,605) (28,828)<br> — Adjustments to reconcile net income to net cash provided by operating activities 91,267 59,695<br> — Change in assets and liabilities1<br> (74,261) (38,121)<br>Net cash provided by (used in) operating activities (98,598) (7,254)<br>Cash flow from investing activities:<br> — Interest Received1<br> 2,722 5,554<br> — Purchase of property, plant and equipment2<br> (75,490) (104,034)<br> — Proceeds from sale of property, plant and equipment 503 —<br> — Acquisition of intangible assets and development expenditures (3,331) —<br> — Purchase of investments in associated companies and other long-term investments and<br>convertibles (7,776) (9,210)<br> — Acquisition of current investments (8,000) (19,203)<br> — Proceeds from sale of current investments 25,116 160,818<br> — Proceeds from Government Grants2<br> 4,066 379<br> — Dividends received — 424<br>Net cash provided by (used in) investing activities (62,189) 34,728<br>Cash flow from financing activities:<br> — Proceeds from capital increase 154 —<br> — Interest Paid1<br> (3,858) (4,254)<br> — Proceeds from loans 960 20,807<br> — Proceeds from option exercise 368 233<br> — Repayment of loans (110,329) (2,280)<br> — Repayment of lease obligation (12,205) (8,281)<br>Net cash provided by (used in) financing activities (124,911) 6,226<br>Net increase (decrease) in cash and cash equivalents (285,699) 33,700<br>Exchange rate difference (3,327) 10,899<br>Cash and cash equivalents at beginning of year 510,908 415,155<br>Cash and cash equivalents at end of the period 221,883 459,752<br>1 Interest received and interest paid are reallocated from the operating cash flow to the investing cash flow and the financing cash flow, respectively. Hence, the previous year<br>figures deviate from the figures published in the half-year report 2023. The change was made to provide a clearer picture of the financial position.<br>2 Proceeds from government grants have been reclassified from “Purchase of property, plant and equipment” to a separate line within the investing cash flow.<br>INTERIM STATEMENT 6M 2024<br>16<br>16 |
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| Evotec SE and Subsidiaries<br>Interim consolidated statement of changes in stockholder´s equity of the six months ended 30 June 2024 and 31 December 2023<br>Income and expense recognized in<br>Share capital other comprehensive income<br>in k€ except share data Shares Amount<br>Additional<br>paid-in capital<br>Foreign currency<br>translation<br>Revaluation<br>reserve<br>Retained<br>Earnings<br>Total<br>stockholders'<br>equity<br>Balance at 1 January 2023 176,952,653 176,953 1,440,010 (16,289) (21,113) (392,377) 1,187,184<br>Exercised stock options 233,083 233 — — — — 233<br>Stock option plan — — 9,630 — — — 9,630<br>Transaction costs — — 14 — — — —<br>Deferred and current tax on future deductible expenses — — — — — — —<br>Other comprehensive income — — — (1,760) 8,519 — 6,759<br>Net income (loss) for the period — — — — — (83,913) (83,913)<br>Total comprehensive income (loss) — — — (1,760) 8,519 (83,913) (77,153)<br>Balance at 31 December 2023 177,185,736 177,186 1,449,654 (18,049) (12,594) (476,290) 1,119,908<br>Balance at 1 January 2024 177,185,736 177,186 1,449,654 (18,049) (12,594) (476,290) 1,119,908<br>Exercised stock options 367,648 368 153 — — — 521<br>Stock option plan — — 705 — — — 705<br>Transaction costs — — — — — — —<br>Deferred and current tax on future deductible expenses — — — — — — —<br>Other comprehensive income — — — 11,176 (5,238) — 5,938<br>Net income (loss) for the period — — — — — (115,605) (115,605)<br>Total comprehensive income — — — 11,176 (5,238) (115,605) (109,667)<br>Balance at 30 June 2024 177,553,384 177,553 1,450,512 (6,873) (17,832) (591,895) 1,011,466<br>INTERIM STATEMENT 6M 2024<br>17 17 |
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| NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL<br>STATEMENTS<br>1. Corporate information<br>Evotec SE (‘’Evotec’’ or the ‘’Company’’), is a drug discovery and development company, continuously driving innovative<br>approaches to develop new pharmaceutical products through discovery alliances and development partnerships with leading<br>pharma and biotechnology companies as well as academic institutions, patient advocacy groups and venture capital partners.<br>Evotec SE, located in Hamburg (Essener Bogen 7, 22419 Hamburg, Germany) is registered in the Commercial Registry of<br>Hamburg with HRB 156381.<br>The Company was founded on 8 December 1993, and is listed on the Frankfurt Stock Exchange (XETRA) since 10 November<br>1999, Segment Prime Standard, under the ticker “EVT“ as well as on NASDAQ, New York, USA under the trading symbol “EVO“<br>since 8 November 2021.<br>2. Basis of presentation<br>The interim condensed consolidated financial statements for the six months ended 30 June 2024 have been prepared in<br>accordance with IAS 34 Interim Financial Reporting as endorsed in the European Union. The Group has prepared the interim<br>condensed financial statements on the basis that it will continue to operate as a going concern. The Group considers that there<br>are no material uncertainties that may cast significant doubt over this assumption. The interim condensed consolidated financial<br>statements do not include all the information and disclosures required in the annual financial statements and should be read in<br>conjunction with the Group’s consolidated financial statements and accompanying notes for the year ended 31 December 2023.<br>All majority-owned subsidiaries of the Company are included in the interim condensed consolidated financial statements and<br>intercompany transactions have been eliminated in consolidation. The interim condensed financial statements are presented in<br>Euros, due to rounding, amounts may not add up to totals provided.<br>3. New standards, interpretations and amendments adopted by the Group<br>The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent<br>with those followed in the preparation of the Group’s annual consolidated financial statement for the year ended 31<br>December 2023.<br>The following amendments became effective as of 1 January 2024:<br>-Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an investor and its Associate or Joint Venture<br>-Amendment to IAS 12 - International Tax Reform - Pillar Two Model Rules<br>-Amendment to IFRS 16 - Lease Liability in a Sale and Leaseback<br>-Amendment to IAS 1 - Classification of liabilities as Current or Non-Current (including Amendment to IAS 1 - Classification of<br>Liabilities as Current or Non-current - Deferral of Effective Date issued in July 2020)<br>-Amendments to IAS 1 - Non-current Liabilities with covenants<br>-Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements<br>The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.<br>INTERIM STATEMENT 6M 2024<br>18<br>18 |
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| The Group falls within the scope of application of the so-called Pillar II framework, that entered into effect in the German<br>legislation on 28 December 2023 and is effective for the financial years beginning 1 January 2024. As the Group is in scope of<br>the Pillar II legislation the Group may be liable to pay a top-up tax for each jurisdiction having an effective tax rate below 15%.<br>During the transitional period from 2024 to 2026, the top-up tax can, upon request, be deemed zero for a jurisdiction where the<br>requirements of the Country-by-Country Reporting safe harbour rules are met. The Group has exercised this option and based<br>on its assessment, each jurisdiction in which the Group operates will meet the safe harbour test, i.e. no top-up taxes are expected<br>for the financial year 2024.<br><br>4. Significant Information for the period<br>Effective 15 June 2024, Aurélie Dalbiez joined Management Board as Chief People Officer.<br>5. Segment information<br>For the six months period ended 30 June 2024, the Management Board made the decision to update the reportable segments<br>to better steer the business and to reflect the underlying trends, evolutions and activities of the various Business Areas the<br>Group is involved in.<br>The Group believes that the two new reportable segments:<br>Shared R&D and Just - Evotec Biologics represent fairly and provide a better information to external stakeholders on how<br>resources are allocated and manage the Group’s overall performance.<br>Intersegment revenues are valued with a price comparable to other third-party revenues. The evaluation of each reportable<br>segment by the management is performed based on revenues and adjusted EBITDA.<br>INTERIM STATEMENT 6M 2024<br>19<br>19 |
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| The segment information for the first six months of 2024 and 2023 are as follows:<br>Six months ended 30 June 2024 Six months ended 30 June 2023<br>In k€<br>Share<br>d R&D<br>Just -<br>Evotec<br>Biolog<br>ics<br>Inter-segme<br>nt<br>Elimin<br>ations<br>Evotec<br>Group<br>Shared<br>R&D<br>Just -<br>Evotec<br>Biologics<br>Inter-segmen<br>t<br>Elimina<br>tions<br>Evotec<br>Group<br>Revenues1) 302,379 88,471 — 390,850 324,848 58,987 — 383,835<br>Intersegment revenues — 453 (453) — — — — —<br>Costs of revenues (259,536) (81,017) 204 (340,348) (242,763) (41,512) — (284,275)<br>Gross profit 42,843 7,907 (249) 50,501 82,085 17,475 — 99,560<br>Operating income<br>and (expenses)<br>R&D expenses2) (29,348) (154) 249 (29,253) (30,983) 121 — (30,863)<br>SG&A expenses (74,859) (17,046) — (91,905) (73,469) (14,723) — (88,192)<br>Other operating<br>income 23,127 1,106 — 24,233 37,450 1,036 — 38,486<br>Other operating<br>expense (7,933) — — (7,933) (28,225) (9,420) — (37,645)<br>Impairments of<br>intangible assets — — — — (5,119) — — (5,119)<br>Reorganization costs (67,447) (1,009) — (68,456) — — — —<br>Operating income<br>(loss) (113,617) (9,196) — (122,813) (18,262) (5,511) — (23,773)<br>1) Group revenues would have amounted to €389.8 m at constant exchange rates<br>2) H1 2023 includes € 1.8 m partnered R&D, not applicable in H1 2024<br>The EBITDA adjusted for the first six months 2024 is derived from Operating income (loss) as follows:<br>In k€ Shared R&D<br>Just Evotec<br>Biologics Evotec Group<br>Operating Income (Loss) (113,617) (9,196) (122,813)<br>plus depreciation of tangible assets 34,258 11,487 45,745<br> plus impairment of intangible assets — — —<br> plus amortization of intangible assets 3,064 — 3,064<br>plus external cyber-related costs 5,081 — 5,081<br>plus reorganization costs 67,447 1,009 68,456<br>Adjusted EBITDA (3,767) 3,300 (467)<br>INTERIM STATEMENT 6M 2024<br>20<br>20 |
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| The EBITDA adjusted for the first six months 2023 is derived from Operating income (loss) as follows:<br>In k€ Shared R&D<br>Just Evotec<br>Biologics Evotec Group<br>Operating Income (Loss) (18,262) (5,511) (23,773)<br>plus depreciation of tangible assets 30,579 10,271 40,851<br> plus impairment of intangible assets 5,119 — 5,119<br> plus amortization of intangible assets 3,904 — 3,904<br>plus external cyber-related costs 7,818 — 7,818<br>plus reorganization costs — — —<br>Adjusted EBITDA1) 29,158 4,760 33,919<br>1) As of Q3 2023, the external,one-off related cyber expenses are excluded from Adjusted Group EBITDA and amount to €5.1 m in H1 2024 (H1 2023: € 7.8 m). Internal costs of<br>recovery are included in Adjusted Group EBITDA. Adjusted EBITDA as of H1 2023 has been adjusted accordingly in order to reflect this new defintion.<br>6. Revenues<br>The following table shows the breakdown of the revenue the Group recognized for the first six months 2024 and includes<br>revenue:<br>6 months<br>in k€ Shared R&D<br>Just Evotec<br>Biologics Total<br>Revenues from contracts with customers<br>Fee for service and FTE-based research payments 252,896 88,471 341,367<br>Recharges* 41,952 — 41,952<br>Compound access fees 304 — 304<br>Milestone fees — — —<br>Licenses 133 — 133<br>Total revenue from contracts with customers 295,286 88,471 383,757<br>Timing of revenue recognition<br>At a point in time 41,952 25,961 67,913<br>Over a period of time 253,334 62,510 315,843<br>Total revenue from contracts with customers 295,286 88,471 383,757<br>Revenues by region<br>USA 180,261 42,486 222,747<br>Germany 14,271 — 14,271<br>France 10,100 — 10,100<br>United Kingdom 42,616 70 42,687<br>Switzerland 10,927 45,607 56,534<br>Rest of the World 37,111 307 37,418<br>Total revenue from contracts with customers 295,286 88,471 383,757<br>Revenue from contributions 7,093 — 7,093<br>Total Revenue 302,379 88,471 390,850<br>*) Comprises of material re-charges to the customer<br>INTERIM STATEMENT 6M 2024<br>21<br>21 |
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| The following schedule shows the breakdown of the revenue the Group recognized for the first six months 2023 and includes<br>revenue:<br>6 months<br>in k€ Shared R&D<br>Just Evotec<br>Biologics Total<br>Revenues from contracts with customers<br>Fee for service and FTE-based research payments 296,444 58,987 355,432<br>Recharges* 17,731 — 17,731<br>Compound access fees 1,875 — 1,875<br>Milestone fees 4,154 — 4,154<br>Licenses 105 — 105<br>Total revenue from contracts with customers 320,309 58,987 379,296<br>Timing of revenue recognition<br>At a point in time 21,885 — 21,885<br>Over a period of time 298,424 58,987 357,411<br>Total revenue from contracts with customers 320,309 58,987 379,296<br>Revenues by region<br>USA 198,346 16,490 214,836<br>Germany 18,181 — 18,181<br>France 16,049 — 16,049<br>United Kingdom 40,132 — 40,132<br>Switzerland 8,842 42,498 51,340<br>Rest of the World 38,758 — 38,758<br>Total revenue from contracts with customers 320,309 58,987 379,296<br>Revenue from contributions 4,539 — 4,539<br>Total Revenue 324,848 58,987 383,835<br>*) Comprises of material re-charges to the customer<br>Included in revenues from contracts with customers are bad debt expenses that lowered revenue by k€ 4,910 (first six months<br>2023: k€ 622).<br>7. Property, plant and equipment<br>Property, plant and equipment amounted to k€ 819,733 as of 30 June 2024 (31 December 2023: k€ 806,563) and included<br>owned property, plant and equipment as well as right-of-use assets. The increase is mainly related to<br>additions of k€ 77,067, especially in JUST production facilities (k€ 53,215), partially offset by depreciation k€ (45,754) and the<br>premature termination of lease contracts k€ (12,547) in connection with the reorganization.<br>8. Goodwill and other intangible assets<br>Goodwill:<br>Goodwill amounted to k€ 279,541 as of 30 June 2024, versus k€ 275,635 as of as of 31 December 2023. The movement during<br>the period was due to the impact of changes in exchange rates.<br>INTERIM STATEMENT 6M 2024<br>22<br>22 |
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| The Group performs its annual impairment test over goodwill in the fourth quarter of the fiscal year and when circumstances<br>indicate that the carrying value may be impaired. The Group’s impairment test for goodwill is based on value-in-use<br>calculations.<br>The key assumptions used to determine the recoverable amount for the different cash generating units are disclosed in the<br>Group’s consolidated financial statements for the year ended 31 December 2023.<br>Based on the analysis of the business performance as of and for the six months ended 30 June 2024, the Group has not<br>identified any impairment trigger.<br>Finite lived intangible assets:<br>The Group also reviews its finite lived intangible assets for impairment whenever triggering events or changes in circumstances<br>indicate that carrying amount value may not be recoverable. Following this review, the Group has not identified any impairment<br>trigger. As of 31 December 2023, the review led to the recognition of an impairment loss of k€ 5,011.<br>9. Equity investments<br>The following table summarizes the development of the investments in associates during six months ended 30 June 2024:<br>In k€<br>Centauri<br>Therapeutics<br>GmbH<br>Dark Blue<br>Therapeutics<br>Ltd.<br>Autobahn<br>Labs LLC<br>Insignificant<br>investments Total<br>Balance at 1 Jan 2024 2,179 — — 892 3,071<br>Investment — — 1,378 206 1,584<br>Share of profit in associate (349) 3,031 (1,378) (900) 403<br>Impairment — — — — —<br>Dividend earned — — — — —<br>Divestment — — — — —<br>Reclassification due to<br>change of control — — — — —<br>Balance at 30 June 2024 1,830 3,031 — 198 5,058<br>INTERIM STATEMENT 6M 2024<br>23<br>23 |
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| The following table provides the development of the investments in associates during year 2023:<br>In k€<br>Auto-bahn<br>Labs<br>LLC<br>Centauri<br>Thera-peutics<br>GmbH<br>Curexsys<br>GmbH<br>Dark Blue<br>Thera-peutics<br> Ltd.<br>Topas<br> Thera-peutics<br> GmbH<br>Tucana<br>Bio-sciences<br> Inc.<br>Insignificant<br>investments Total<br>Balance at<br>1 Jan 2023 1,371 — 3,967 4,022 405 2,325 3,954 16,043<br>Investment 2,360 3,455 — — 2,023 — — 7,838<br>Share of profit in<br>associate (3,730) (309) (968) (4,022) (2,428) (775) (650) (12,881)<br>Impairment — (3,336) (2,999) — — (579) (960) (7,875)<br>Dividend earned — — — — — — (424) (424)<br>Divestment — — — — — (970) — (970)<br>Reclassification<br>due to a change<br>of control — 2,369 — — — — (1,029) 1,341<br>Balance at<br>31 Dec 2023 — 2,179 — — — — 892 3,071<br>10. Current and non-current financial liabilities<br>The decrease of current financial liabilities to k€ 45,330 (as of 31 December 2023: k€ 149,096) is mainly due to the repayment of<br>a “Schuldscheindarlehen” (k€ 108,500) and the related interest (k€ 3,500).<br>Non-current financial liabilities decreased to k€ 428,181 (2023: k€ 477,112). The decrease is related to the termination of lease<br>contracts (k€ 17,173) as well as reclasses to current financial liabilities (k€ 14,535) and other non-current liabilities (k€ 20,800)<br>due to the reclassification of funding received for a forgivable loan.<br>Some of the Group’s borrowing is subject to covenants based on Net Debt leverage. The Group has determined that it would not<br>meet some of those covenants as of 30 June 2024 and 30 September 2024, and has subsequently obtained waivers before 30<br>June 2024. The Group expects to meet its financial covenants in the following periods going forward.<br>11. Changes in shareholder´s equity and potentially dilutive instruments<br>In the six months ended 30 June 2024 a total of 536,044 Share Performance Awards were granted. Thereof, 117,292 awards<br>were given to the members of the Management Board. The remaining number of awards were given to other key employees.<br>In addition, a total of 591,829 restricted share units were granted in the six months ended 30 June 2024. These restricted share<br>units were only given to key employees.<br>During the first half of 2024, 367,649 shares were issued through the exercise of Share Performance Awards which increased<br>stockholder’s equity. In addition, 43,824 shares were issued through the exercise of restricted share units which were settled via<br>treasury shares.<br>INTERIM STATEMENT 6M 2024<br>24<br>24 |
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| 12. Reorganization<br>On April 24, 2024 as part of the publication of the 2023 Annual Results, the Group announced that it was currently assessing its<br>current footprint and activities. As of June 30, 2024, the Group has recognized a provision of k€ (64,527) to cover the expected<br>and estimated costs associated with the reorganization.<br>Estimated reorganization costs mainly include employee termination benefits, Real Estate footprint optimization and other<br>direct costs associated with the reorganization.<br>13. Financial risk management<br>The Group’s activities expose it to a variety of financial risks such as currency risks, interest rate risks, credit risks and liquidity<br>risks. The interim condensed consolidated financial statements do not include all financial risk management information and<br>disclosures required. Additional disclosures can be found in the “Risks and opportunities” described in Evotec’s Annual<br>Report 2023 on pages 52 to 70.<br>There have not been significant changes to the risk management approach or to risk management policies since 31<br>December 2023.<br>Fair value of financial assets and liabilities:<br>The Group classifies its fair value measurements using a fair value hierarchy that reflects the degree to which the inputs to the<br>fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety. The fair<br>value hierarchy has the following levels:<br> ▪ Level 1 – Quoted (unadjusted) prices in active markets for identical assets or liabilities that the Company can access at the<br>measurement date.<br> ▪ Level 2 – all significant inputs (other than quoted prices included within Level 1) are observable for the asset or liability, either<br>directly (as prices) or indirectly (derived from prices).<br> ▪ Level 3 – one or more of the significant inputs are not based on observable market data, such as third-party pricing<br>information without adjustments, for the asset or liability.<br>The carrying amounts and fair values of the financial assets and liabilities measured at fair value and financial liabilities<br>measured at amortized cost as of 30 June 2024 and as of 31 December 2023 are shown in the tables below. Financial assets<br>measured at amortized cost approximate their carrying amounts in the statement of financial position.<br>INTERIM STATEMENT 6M 2024<br>25<br>25 |
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| 30 June 2024<br>in k€<br>Carrying<br>amount Fair value Level 1 Level 2 Level 3<br>Financial assets<br>Equity instruments 116,937 116,937 66,866 703 49,368<br>Other financial assets 5,370 5,370 — — 5,370<br>Derivative financial instruments 856 856 — 856 —<br>Financial assets carried at FVTPL 123,163 123,163 66,866 1,560 54,738<br>Equity instruments 3,628 3,628 — — —<br>Current investments 81,468 81,468 — — —<br>Financial assets carried at FVTOCI 85,096 85,096 — — —<br>Financial assets carried at fair<br>value 208,259 208,259 66,866 1,560 54,738<br>Financial liabilities<br>Contingent consideration (311) (311) — — (311)<br>Derivative financial instruments (1,656) (1,656) — (1,656) —<br>Financial Liabilities carried at<br>FVTPL (1,967) (1,967) — (1,656) (311)<br>Trade accounts payables (86,942) (86,942) — — —<br>Loans and borrowings (306,709) (269,061) — — —<br>Other liabilities (164,754) (164,754) — — —<br>Financial liabilities carried at<br>amortized costs<br> (558,405)<br> (520,757) — — —<br>Total financial liabilities (560,372) (522,724) — (1,656) (311)<br>31 December 2023<br>in k€<br>Carrying<br>amount Fair value Level 1 Level 2 Level 3<br>Financial assets<br>Equity instruments 128,109 128,109 81,417 9,543 37,149<br>Other financial assets 3,179 3,179 — — 3,179<br>Derivative financial instruments 6,137 6,137 — 6,137 —<br>Financial assets carried at FVTPL 137,425 137,425 81,417 15,680 40,328<br>Equity instruments 7,484 7,484 7,484 — —<br>Current investments 321,550 321,550 321,550 — —<br>Financial assets carried at FVTOCI 329,034 329,034 329,034 — —<br>Financial assets carried at fair<br>value 466,459 466,459 410,451 15,680 40,328<br>Financial liabilities<br>Contingent consideration (311) (311) — — (311)<br>Derivative financial instruments (193) (193) (193) — —<br>Financial Liabilities carried at<br>FVTPL (504) (504) (193) — (311)<br>Trade accounts payables (134,319) (134,319) — — —<br>Loans and borrowings (437,058) (380,204) — — —<br>Other liabilities (190,527) (190,527) — — —<br>Financial liabilities carried at<br>amortized costs<br> (761,904)<br> (705,050) — — —<br>Total financial liabilities (762,408) (705,554) (193) — (311)<br>INTERIM STATEMENT 6M 2024<br>26<br>26 |
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| There were no changes in the Group´s valuation process, valuation techniques and types of inputs used in the fair value<br>measurements during the period.<br>Apart from borrowings, the Group considers the carrying value of the financial instruments to approximate their fair value.<br>The following shows the development of the fair values of Level 3 for the six months ended 30 June 2024 and during year 2023:<br>in k€<br>Equity<br>Instruments<br>and other<br>financial<br>assets<br>Contingent<br> Consideration<br>Balance as of 1<br>January 2024 40,328 (311)<br>Exchange rate<br>differences 49 —<br>Additions 6,196 —<br>Disposals — —<br>Transfer from Level 3<br>to Level 2 (703) —<br>Transfer from Level 2<br>to Level 3 9,543 —<br>Fair Value Change (675) —<br>Balance as of 30<br>June 2024 54,738 (311)<br>in k€<br>Equity<br>Instruments<br>and other<br>financial<br>assets<br>Contingent<br> Consideration<br>Balance as of 1<br>January 2023 53,875 (306)<br>Exchange rate<br>differences — —<br>Additions 14,028 —<br>Disposals (3,523) —<br>Transfer from Level 3<br>to Level 2 (10,909) —<br>Transfer from Level 2<br>to Level 3 — —<br>Fair Value Change (13,144) (5)<br>Balance as of 31<br>December 2023 40,328 (311)<br>Currency risk:<br>Foreign exchange exposure also arises because of inter-company loans and deposits. When the lending company enters such<br>arrangements, the financing is generally provided in the functional currency of the subsidiary entity. When such loans would be<br>part of the net investment in the subsidiary, net investment hedging would be applied. Translation exposure of foreign-currency<br>equity invested in consolidated entities is generally not hedged.<br>INTERIM STATEMENT 6M 2024<br>27<br>27 |
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| 14. Income taxes<br>The income tax amounted to an income of k€ 15,632 for the first six months 2024 compared to an income tax expense of k€<br>(2,175) for the six months ended 30 June 2023. This change is mainly driven by decreased gross profits and reorganization<br>expenses resulting in additional tax loss carry forwards in Germany.<br>15. Related party transactions<br>Except for the transactions described in Evotec’s Annual Report 2023 Note (19) on page 122, no other material transactions with<br>related parties were entered into in the first six months 2024.<br>16. Subsequent events<br>The Supervisory Board of Evotec SE has appointed Dr Christian Wojczewski as new Chief Executive Officer with effect from 1<br>July 2024.<br>On July 30, 2024, Evotec signed a syndicated loan facility in the amount of €250 million with a consortium of major<br>international financial institutions to support ongoing operations and strategic initiatives for future growth.<br>On August 6, 2024, Evotec issued an updated guidance for FY2024. The Group expects revenue to be in the range of €790<br>million to €820 million (previously low to mid-single digit percentage growth of 2023 revenue (2023: €781.4 million)), an<br>adjusted EBITDA in the range of €15 million to €35 million (previously mid-double digit percentage growth of 2023 adjusted<br>EBITDA (2023: €66.4 million)) and unpartnered R&D expenditures in the range of €50 million to €60 million (previously mid-single to low double digit percentage reduction of 2023 unpartnered R&D expenditures (2023: €64.8 million)).<br>INTERIM STATEMENT 6M 2024<br>28<br>28 |
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| III. RESPONSIBILITY STATEMENT<br>To the best of our knowledge and in accordance with the applicable reporting principles for interim financial reporting, the<br>Interim Condensed Consolidated Financial Statements give a true and fair view of the assets, liabilities, financial position and<br>financial results of the Group, and the Group Interim Management Report includes a fair review of the development and<br>performance of the business and the position of the Group, together with a description of the principal opportunities and risks<br>associated with the expected development of the Group.<br>14 August 2024<br>Dr Christian Wojczewski Dr Cord Dohrmann Dr Matthias Evers<br>Chief Executive Officer Chief Scientific Officer Chief Business Officer<br>Dr Craig Johnstone Laetitia Rouxel Aurélie Dalbiez<br>Chief Operating Officer Chief Financial Officer Chief People Officer<br>INTERIM STATEMENT 6M 2024<br>29<br>29 |
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| Financial calendar 2024<br>8 November 2024 Quarterly Statement 9M<br>2024<br>FORWARD-LOOKING STATEMENTS<br>This half-year interim statement contains forward-looking statements concerning future events, Words such as “anticipate,”<br> “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “should,” “target,” “would” and variations<br>of such words and similar expressions are intended to identify forward-looking statements, Such statements include<br>comments regarding Evotec’s expectations for revenues, Adjusted Group EBITDA and unpartnered R&D expenses, These<br>forward-looking statements are based on the information available to, and the expectations and assumptions deemed<br>reasonable by Evotec at the time these statements were made, No assurance can be given that such expectations will prove to<br>have been correct, These statements involve known and unknown risks and are based upon a few assumptions and estimates,<br>which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Evotec,<br>Factors that could cause actual results to differ are discussed under the heading "Risk Factors" in our Annual Report for the<br>year ended 31 December 2022, Evotec expressly disclaims any obligations or undertaking to release publicly any updates or<br>revisions to any forward-looking statements contained herein to reflect any change in Evotec’s expectations with respect<br>thereto or any change in events, conditions, or circumstances on which any statement is based.<br>NON-IFRS METRICS<br>This interim report includes certain financial measures and metrics not based on IFRS, including Adjusted Group EBITDA. We<br>define Adjusted EBITDA as net income (loss) adjusted for interest, taxes, depreciation and amortization of intangibles,<br>impairments on goodwill and other intangible and tangible assets, total non-operating results and change in contingent<br>consideration (earn-out).<br>Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in<br>accordance with IFRS. Adjusted EBITDA is a non-IFRS measure presented as a supplemental measure of our performance.<br>Adjusted EBITDA should not be considered as an alternative to net income as a measure of financial performance. Adjusted<br>EBITDA is presented because it is a key metric used by our Management Board to assess our financial performance.<br>Management believes Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of<br>expenses that do not relate directly to the performance of the underlying business. Our definition of this non-IFRS financial<br>measure may not be comparable to similarly titled measures of other companies, thereby reducing the usefulness of our<br>Adjusted EBITDA as a tool for comparison.<br>INTERIM STATEMENT 6M 2024<br>30<br>30 |
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| The following table shows the reconciliation of net income to Adjusted EBITDA:<br>in T€<br>Evotec Group<br>6M 2024<br>Evotec Group<br>6M 2023<br>Net income (115,605) (28,828)<br> - Interest expense (net) 3,532 (640)<br> - Tax expense (15,632) 2,175<br> - Impairment of tangible assets 45,745 40,851<br> - Amortization of intangible assets 3,064 3,904<br>EBITDA (78,895) 17,462<br> - Measurement gains from investments 8,555 (5,567)<br> - Share of loss of associates accounted for using the equity method (403) 7,149<br> - Foreign currency exchange (loss) gain, net — —<br> - Other non-operating income, net (3,260) 1,937<br> - One-Off External Cyber-related Costs 5,081 7,818<br> - Reorganization Costs 68,456 —<br>Adjusted EBITDA (467) 33,919<br>INTERIM STATEMENT 6M 2024<br>31<br>31 |
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