2017 financial results 20 March 2018
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 2
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 3
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 4
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-te TM brand gaining traction 2017 FY 5
EverSweet TM update Cargill announces the start of commercial production of EverSweet TM New Cargill agreement with the following elements: • Evolva will receive a mid-single digit royalty on EverSweet TM sales • Will generate income from EverSweet TM 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 6
Revenues continued to grow strongly 2.5 • Product revenues of CHF 2.0m, growth of 82% o both Nootkatone and 2.0 Resveratrol grew strongly o Commercial pipeline 1.5 CHFm continued to build 1.0 • R&D revenues declined due to wind-down of projects which were 0.5 not mission-critical or profitable for Evolva 0.0 Q4.15 Q4.16 Q4.17 Product sales (12-month rolling) 2017 FY 7
Shift of operating expenses towards commercial activities Manufacturing 30 • Increasing product sales 25 • Lower costs per kg 20 R&D CHFm • Restructuring charge CHF 3.0m 15 • Headcount down 10 • Capitalized CHF 3.9m for EverSweet TM 5 CG&A 0 • Commercial: more staff and promotion 2016H1 2016H2 2017H1 2017H2 • Restructuring charge CHF 1.4m R&D Manufacturing CG&A 2017 FY 8
Strengthened financial position 140 120 100 80 CHFm 60 40 20 0 Starting cash Financing Investing Operations End cash 47.5 +85.1 +0.2 -35.6 97.2 2017 FY 9
Delivery post August 2017 Site concentration Strategic re-focusing Strong focus on commercialization Financing 2017 revenues targets met Simplified Cargill/EverSweet TM relationship EverSweet TM commercial production starts 2017 FY 10
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 EverSweet TM , 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 opportunity 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 11
Shareholder value generation Topline Growth | Break-Even Operations 2021 target revenue of CHF 40 – 60m • August 2017 restructuring. Staff cut underway • from 178 to 100. Site consolidation – focus on Target cash break-even in 2021/2023 • Switzerland and the US Strong commercial focus in place • Capital Efficiency Share Price | Liquidity • Even before August 2017 restructuring, Average daily SIX trading value 2018 CHF 1.1m • Evolva had one of the lowest cash burn rates among peers Part of Swiss SPI and life science indices • • Capital-light strategy using CMOs To realize our mid-term targets, we have raised CHF 86m in Q4 of 2017 2017 FY 12
Key Contacts Oliver Walker, CFO oliverw@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
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