2017 financial results 20 March 2018 Disclaimer The shares of - - PowerPoint PPT Presentation

2017 financial results

20 March 2018

2017 FY 2

Disclaimer

The shares of Evolva Holding (“Evolva”) are traded on the SIX Swiss Stock Exchange (ticker: “EVE”). This presentation may contain specific forward-looking statements, relating to Evolva's future business, development and economic performance. e.g., statements including terms like "believe", "assume", "expect" or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of Evolva and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties readers should not rely on forward-looking statements. Evolva assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.

2017 FY 3

Evolva summarized

Introduction

Swiss-US biotechnology company headquartered in Basel, Switzerland; shares traded on the SIX Swiss Exchange (SIX: EVE)

Mission

Bringing sustainably sourced, next-generation health, wellness, and nutrition ingredients to the world

2017 FY 4

Strategy

Core Themes:

• Identifying alternatives for existing commercially

available ingredients that are currently hard-to-source from nature

• Discovering and developing low cost bio-production

routes (yeast fermentation) for these ingredients

• Capital-light manufacturing strategy

Specifics:

• Focus near-term on three key products: stevia,

resveratrol and nootkatone

• Ramp product sales, and gradually reduce annual net

cash burn, to target cash breakeven in 2021/2023

• Enter partnerships on new or existing products only if

this complements our core strategy outlined above

2017 FY 5

Near-term products with large potential

Stevia Sweeteners

• Addresses stevia’s taste issue at high usage levels
• Wide utility in beverages and food; partnered with Cargill; brand

name EverSweet™

Nootkatone

• Ingredient found in minute quantities in grapefruit skin could be

the next big thing in pest control

• Initial focus on mosquitoes that transmit Zika and ticks that spread

Lyme disease

• CDC contract worth USD 8.35 million
• EPA registration expected by year-end 2018

Resveratrol

• Beneficial ingredient in red wine
• Initial focus on dietary supplements – other potential uses
• Veri-teTM brand gaining traction

2017 FY 6

EverSweetTM update

Cargill announces the start of commercial production of EverSweetTM New Cargill agreement with the following elements:

• Evolva will receive a mid-single digit royalty on EverSweetTM sales
• Will generate income from EverSweetTM significantly sooner than under previous

agreement

• Releases Evolva of significant operational and capital expenses
• Reduces Evolva’s obligations to USD 18m payable over next 12 months
• Eliminates further milestones and performance criteria
• Adds certain additional high-intensity sweeteners

Evolva will no longer require access to Cargill’s fermentation capacity in Blair, Nebraska, but will continue to produce through its existing CMOs

2017 FY 7

Revenues continued to grow strongly

• Product revenues of CHF 2.0m,

growth of 82%

• both Nootkatone and

Resveratrol grew strongly

• Commercial pipeline

continued to build

• R&D revenues declined due to

wind-down of projects which were not mission-critical or profitable for Evolva

Product sales (12-month rolling) CHFm 0.0 0.5 1.0 1.5 2.0 2.5 Q4.15 Q4.16 Q4.17

2017 FY 8

5 10 15 20 25 30 2016H1 2016H2 2017H1 2017H2 CHFm R&D Manufacturing CG&A

• Manufacturing
• Increasing product sales
• Lower costs per kg
• R&D
• Restructuring charge CHF 3.0m
• Headcount down
• Capitalized CHF 3.9m for EverSweetTM
• CG&A
• Commercial: more staff and promotion
• Restructuring charge CHF 1.4m

Shift of operating expenses towards commercial activities

2017 FY 9

20 40 60 80 100 120 140 Starting cash Financing Investing Operations End cash CHFm

47.5 +85.1 +0.2

• 35.6

97.2

Strengthened financial position

2017 FY 10

Delivery post August 2017

 Site concentration  Strategic re-focusing  Strong focus on commercialization  Financing  2017 revenues targets met  Simplified Cargill/EverSweetTM relationship  EverSweetTM commercial production starts

2017 FY 11

Outlook 2018

As we are continuously strengthening our commercial activities, which also includes an expansion of our sales force, our commercial pipeline is becoming broader and deeper. As a result, we expect our product revenues to further grow strongly and at least double compared to 2017. Revenues from R&D partnerships will continue declining in 2018, in line with our strategy of winding such relationships. In addition, we expect to see first royalty income from EverSweetTM, albeit very limited, in 2018. We are confirming the cost saving targets we announced in August 2017, which will take full effect starting in the second quarter of 2018. Overall, we expect to reduce the loss in 2018 following the restructuring of our company. Next-generation pest control represents an important additional commercial

• pportunity for our Nootkatone product (particularly against ticks and mosquitoes). We

expect the EPA (Environmental Protection Agency) registration of Nootkatone to be completed by year-end 2018.

2017 FY 12

Topline Growth | Break-Even

• 2021 target revenue of CHF 40 – 60m
• Target cash break-even in 2021/2023

Shareholder value generation

Operations

• August 2017 restructuring. Staff cut underway

from 178 to 100. Site consolidation – focus on Switzerland and the US

• Strong commercial focus in place

Capital Efficiency

• Even before August 2017 restructuring,

Evolva had one of the lowest cash burn rates among peers

• Capital-light strategy using CMOs

Share Price | Liquidity

• Average daily SIX trading value 2018 CHF 1.1m
• Part of Swiss SPI and life science indices

To realize our mid-term targets, we have raised CHF 86m in Q4 of 2017

Key Contacts

Oliver Walker, CFO

• liverw@evolva.com

Paul Verbraeken, Head of IR paulv@evolva.com

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN OR AUSTRALIA OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL