Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Document Information [Line Items] | |||
Document Type | 20-F | ||
Document Registration Statement | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Document Shell Company Report | false | ||
Entity File Number | 001-34041 | ||
Entity Registrant Name | Evotec SE | ||
Entity Incorporation, State or Country Code | 2M | ||
Entity Address, Address Line One | Essener Bogen 7 | ||
Entity Address, City or Town | Hamburg | ||
Entity Address, Country | DE | ||
Entity Address, Postal Zip Code | 22419 | ||
Title of 12(b) Security | Ordinary shares, no par value per share* | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 176,952,653 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Document Accounting Standard | International Financial Reporting Standards | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0001412558 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | BDO AG Wirtschaftsprüfungsgesellschaft | BDO AG Wirtschaftsprüfungsgesellschaft | Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft |
Auditor Location | Frankfurt am Main, Germany | Frankfurt am Main, Germany | Munich, Germany |
Auditor Firm ID | 1010 | 1010 | 1251 |
Business Contact [Member] | |||
Document Information [Line Items] | |||
Contact Personnel Name | Dr. Werner Lanthaler | ||
Entity Address, Address Line One | Essener Bogen 7 | ||
Entity Address, City or Town | Hamburg | ||
Entity Address, Country | DE | ||
Entity Address, Postal Zip Code | 22419 | ||
City Area Code | 49 | ||
Local Phone Number | 40 560810 | ||
American Depositary Shares, each representing one-half of one ordinary share | |||
Document Information [Line Items] | |||
Title of 12(b) Security | American Depositary Shares, each representing one-half of one ordinary share | ||
Trading Symbol | EVO | ||
Security Exchange Name | NASDAQ |
Consolidated income statement
Consolidated income statement - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | [1] | |
Consolidated income statement | ||||
Revenues | € 751,448 | € 618,034 | € 500,924 | |
Costs of revenue | (577,383) | (466,491) | (375,181) | |
Gross profit | 174,065 | 151,543 | 125,743 | |
Operating income and (expenses) | ||||
Research and development expenses | (76,642) | (72,200) | (63,945) | |
Selling, general and administrative expenses | (156,190) | (105,445) | (77,205) | |
Impairment of intangible assets | (683) | (3,244) | ||
Impairment of goodwill | 0 | 0 | ||
Other operating income | 81,582 | 73,472 | 72,175 | |
Other operating expenses | (1,965) | (5,691) | (4,968) | |
Total operating income and (expenses) | (153,215) | (110,547) | (77,187) | |
Operating income | 20,850 | 40,996 | 48,556 | |
Non-operating income (expense) | ||||
Interest income | 8,336 | 2,272 | 1,339 | |
Interest expense | (13,150) | (9,254) | (8,465) | |
Measurement result from investments | (172,159) | 223,791 | 1,500 | |
Share of the result of associates accounted for using the equity method | (15,964) | (16,570) | (10,434) | |
Reversal of impairment (impairment) of investments using the equity method | 866 | (11,863) | ||
Gain from bargain purchase | 4,908 | |||
Other income from financial assets | 24 | 70 | ||
Other expense from financial assets | (198) | (43) | ||
Foreign currency exchange gain (loss), net | 13,083 | 7,843 | (6,935) | |
Other non-operating income | 143 | 84 | 683 | |
Other non-operating expense | (870) | (145) | (431) | |
Total non-operating income (expense) | (174,807) | 195,984 | (22,716) | |
Income before taxes | (153,957) | 236,980 | 25,840 | |
Current tax expense | (13,976) | (16,404) | (12,065) | |
Deferred tax income (expense) | (7,722) | (5,066) | (7,497) | |
Total taxes | (21,698) | (21,470) | (19,562) | |
Net income (loss) | (175,655) | 215,510 | 6,278 | |
thereof attributable to: | ||||
Shareholders of Evotec SE | € (175,655) | € 215,510 | € 6,278 | |
Weighted average shares outstanding | 176,674,341 | 166,405,926 | 153,752,241 | |
Net income per share (basic) | € (0.99) | € 1.30 | € 0.04 | |
Net income per share (diluted) | € (0.99) | € 1.30 | € 0.04 | |
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Consolidated statement of compr
Consolidated statement of comprehensive income - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Consolidated statement of comprehensive income | ||||
Net income (loss) | € (175,655) | € 215,510 | € 6,278 | [1] |
Accumulated other comprehensive income | ||||
Remeasurement of defined benefit obligation | 1,420 | 664 | (580) | |
Revaluation of investments | (11,729) | |||
Taxes | (357) | 7 | 149 | |
Foreign currency translation | (598) | 26,091 | (17,655) | |
Revaluation and disposal of investments | (13,500) | (1,878) | 126 | |
Other comprehensive income | (24,764) | 24,884 | (17,960) | |
Total comprehensive income | (200,419) | 240,394 | (11,682) | |
Shareholders of Evotec SE | € (200,419) | € 240,394 | € (11,682) | |
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Consolidated statement of finan
Consolidated statement of financial position - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | € 415,155 | € 699,326 | |
Investments | 303,334 | 158,908 | |
Trade accounts receivable | 168,653 | 132,078 | |
Accounts receivable from associated companies and other long-term investments | 3,146 | 2,643 | |
Inventories | 29,825 | 25,793 | |
Current tax receivables | 54,422 | 23,419 | |
Contract assets | 30,516 | 18,614 | |
Other current financial assets | 11,494 | 264 | |
Prepaid expenses and other current assets | 57,126 | 39,895 | |
Total current assets | 1,073,671 | 1,100,940 | |
Non-current assets: | |||
Long-term investments | 131,042 | 268,793 | |
Long-term investments accounted for using the equity method | 16,043 | 13,068 | |
Property, plant, and equipment | 650,201 | 484,597 | |
Intangible assets, excluding goodwill | 23,819 | 30,851 | |
Goodwill | 274,819 | 257,569 | |
Deferred tax assets | 10,327 | 17,359 | |
Non-current tax receivables | 70,293 | 55,966 | |
Other non-current financial assets | 3,247 | 5,148 | |
Other non-current assets | 3,785 | 870 | |
Total non-current assets | 1,183,576 | 1,134,221 | |
Total assets | 2,257,247 | 2,235,161 | |
Current liabilities: | |||
Current loan liabilities | 1,556 | 36,136 | |
Current portion of lease obligations | 14,825 | 14,473 | |
Trade accounts payable | 97,277 | 72,598 | |
Provisions | 54,410 | 39,260 | |
Contract liabilities | 122,922 | 112,061 | |
Deferred income | 13,748 | 14,718 | |
Current income tax payables | 8,987 | 10,596 | |
Other current financial liabilities | 7,087 | 12,115 | |
Other current liabilities | 16,894 | 12,559 | |
Total current liabilities | 337,706 | 324,516 | |
Non-current liabilities: | |||
Non-current loan liabilities | 328,295 | 326,344 | |
Long-term lease obligations | 161,998 | 135,964 | |
Deferred tax liabilities | 18,524 | 17,688 | |
Provisions | 16,427 | 18,021 | |
Contract liabilities | 206,136 | 33,476 | |
Deferred income | 1,000 | ||
Other non-current financial liabilities | 977 | 467 | |
Total non-current liabilities | 732,357 | 532,960 | |
Stockholders' equity: | |||
Share capital | [1] | 176,953 | 176,608 |
Additional paid-in capital | 1,440,010 | 1,430,136 | |
Accumulated other comprehensive income | (37,402) | (12,638) | |
Accumulated deficit | (392,377) | (216,421) | |
Equity attributable to shareholders of Evotec SE | 1,187,184 | 1,377,685 | |
Total stockholders' equity | 1,187,184 | 1,377,685 | |
Total liabilities and stockholders' equity | € 2,257,247 | € 2,235,161 | |
[1]176,952,653 and 176,608,195 shares issued outstanding |
Consolidated statement of fin_2
Consolidated statement of financial position (Parenthetical) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated statement of financial position | ||||
Number of shares issued | 176,952,653 | 176,608,195 | 163,915,000 | 150,903,000 |
Number of shares outstanding | 176,952,653 | 176,608,195 |
Consolidated statement of chang
Consolidated statement of changes in stockholders' equity - EUR (€) € in Thousands | Share capital | Additional paid-in capital | Foreign currency translation | Revaluation reserve | Accumulated deficit | [1] | Stockholders' equity attributable to shareholders of Evotec SE | Total | |
Beginning balance at Dec. 31, 2019 | € 150,903 | € 786,865 | € (24,127) | € 4,565 | € (439,593) | € 478,613 | € 478,613 | ||
Beginning balance (Shares) at Dec. 31, 2019 | 150,902,578 | 150,903,000 | |||||||
Capital increase | € 11,478 | 238,495 | 249,973 | € 249,973 | |||||
Capital increase (Shares) | 11,478,315 | 11,478,000 | |||||||
Exercised stock options | € 1,534 | 58 | 1,592 | € 1,592 | |||||
Exercised stock options (shares) | 1,533,848 | 1,534,000 | |||||||
Stock option plan | 5,284 | 5,284 | € 5,284 | ||||||
Deferred and current tax on future deductible expenses | 676 | 676 | 676 | ||||||
Other comprehensive income | (17,655) | (305) | (17,960) | (17,960) | |||||
Net income (loss) for the period | 6,278 | 6,278 | 6,278 | [2] | |||||
Total comprehensive income (loss) | (17,655) | (305) | 6,278 | (11,682) | (11,682) | ||||
Ending balance at Dec. 31, 2020 | € 163,915 | 1,030,702 | (41,782) | 4,260 | (432,639) | 724,456 | € 724,456 | ||
Ending balance (Shares) at Dec. 31, 2020 | 163,914,741 | 163,915,000 | |||||||
Capital increase | € 11,497 | 391,629 | 403,126 | € 403,126 | |||||
Capital increase (Shares) | 11,497,500 | 11,497,000 | |||||||
Exercised stock options | € 1,196 | 1,196 | € 1,196 | ||||||
Exercised stock options (shares) | 1,195,954 | 1,196,000 | |||||||
Stock option plan | 7,805 | 7,805 | € 7,805 | ||||||
Deferred and current tax on future deductible expenses | 708 | 708 | 708 | ||||||
Other comprehensive income | 26,091 | (1,207) | 24,884 | 24,884 | |||||
Net income (loss) for the period | 215,510 | 215,510 | 215,510 | ||||||
Total comprehensive income (loss) | 26,091 | (1,207) | 215,510 | 240,394 | 240,394 | ||||
Ending balance at Dec. 31, 2021 | € 176,608 | 1,430,136 | (15,691) | 3,053 | (216,421) | 1,377,685 | € 1,377,685 | ||
Ending balance (Shares) at Dec. 31, 2021 | 176,608,195 | 176,608,195 | |||||||
Exercised stock options | € 345 | 345 | € 345 | ||||||
Exercised stock options (shares) | 344,458 | 345,000 | |||||||
Stock option plan | 9,919 | 9,919 | € 9,919 | ||||||
Transaction costs | (45) | (45) | (45) | ||||||
Deferred and current tax on future deductible expenses | (301) | (301) | (301) | ||||||
Other comprehensive income | (598) | (24,166) | (24,764) | (24,764) | |||||
Net income (loss) for the period | (175,655) | (175,655) | (175,655) | ||||||
Total comprehensive income (loss) | (598) | (24,166) | (175,655) | (200,419) | (200,419) | ||||
Ending balance at Dec. 31, 2022 | € 176,953 | € 1,440,010 | € (16,289) | € (21,113) | € (392,377) | € 1,187,184 | € 1,187,184 | ||
Ending balance (Shares) at Dec. 31, 2022 | 176,952,653 | 176,952,653 | |||||||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021”[2]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Consolidated statement of cash
Consolidated statement of cash flows - EUR (€) € in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Cash flows from operating activities: | ||||||
Net income (loss) | € (175,655) | € 215,510 | € 6,278 | [1] | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||
Depreciation of property, plant and equipment | 72,677 | 55,596 | 42,122 | [2] | ||
Amortization of intangible assets | 8,982 | 12,012 | 13,936 | [2] | ||
Depreciation of current assets | 1,537 | 2,791 | 160 | [2] | ||
Impairment of intangible assets | 683 | 3,244 | [2] | |||
Stock compensation expense | 9,919 | 7,805 | 5,285 | [2] | ||
Non-cash foreign exchange loss | (9,423) | 8,565 | ||||
Interest income/expense | 10,831 | 9,827 | 6,269 | [2] | ||
Loss on sale of financial assets | 198 | 43 | [2] | |||
Gain on sale of financial assets | (24) | (70) | [2] | |||
Share of the result and impairment of investments of associates accounted for using the equity method | 15,098 | 28,433 | 17,274 | [2] | ||
Purchase price adjustments of associates accounted for using the equity method | [2] | (6,839) | ||||
Fair value adjustments on long-term investments | 172,159 | (223,791) | (1,500) | [2] | ||
Gain from bargain purchase | (4,908) | |||||
Loss on sale of property, plant and equipment | 178 | 147 | 50 | [2] | ||
Gain on sale of property, plant and equipment | (5) | (51) | [2] | |||
Deferred tax expense (benefit) | 7,722 | 5,066 | 7,497 | [2] | ||
Decrease (increase) in: | ||||||
Accounts receivables | (38,429) | (48,032) | (4,178) | [2] | ||
Inventories | (4,410) | (11,653) | (3,631) | [2] | ||
Other assets | (81,328) | (28,999) | (25,851) | [2] | ||
Other tax assets | (15,251) | (18,932) | (13,836) | [2] | ||
Increase (decrease) in: | ||||||
Accounts payable | 24,549 | 31,341 | 2,165 | [2] | ||
Contract liabilities and deferred income | 181,736 | 63,083 | (14,618) | [2] | ||
Provisions | 13,708 | (8,060) | 4,879 | [2] | ||
Current income taxes payable | 29,392 | 18,850 | 15,486 | [2] | ||
Other liabilities | 9,294 | 121 | 2,677 | [2] | ||
Cash received during the year for: | ||||||
Interest | 3,026 | 1,106 | 1,191 | [2] | ||
Taxes | 12,351 | 17,644 | 11,428 | [2] | ||
Cash paid during the year for: | ||||||
Interest | (9,798) | (5,429) | (3,465) | [2] | ||
Taxes | (30,851) | (11,616) | (21,224) | [2] | ||
Net cash provided by operating activities | 203,106 | 122,237 | 44,721 | [2] | ||
Cash flows from investing activities: | ||||||
Purchase of current investments | (355,817) | (123,696) | (70,932) | [2] | ||
Purchase of investments in affiliated companies net of cash acquired | (20,859) | (10,929) | [2] | |||
Purchase of investments in associated companies and other long-term investments | (58,832) | (20,680) | (22,703) | [2] | ||
Purchase of property, plant and equipment | (181,354) | (118,943) | (99,072) | [2] | ||
Issue of convertible loan | (4,127) | (7,376) | (6,242) | [2] | ||
Payment of subsequent contingent considerations | (410) | |||||
Proceeds from sale of current investments | 205,166 | 27,250 | 54,789 | [2] | ||
Net cash used in investing activities | (415,823) | (243,855) | (155,089) | [2] | ||
Cash flows from financing activities: | ||||||
Proceeds from capital increase | 355 | 403,126 | 249,972 | [2] | ||
Proceeds from option exercise | 344 | 1,196 | 1,592 | [2] | ||
Proceeds from loans | 30,791 | 21,539 | [2] | |||
Repayment of lease obligation | (19,046) | (20,665) | (20,174) | [2] | ||
Repayment of loans | (34,067) | (16,018) | (6,520) | [2] | ||
Net cash provided by (used in) financing activities | (52,414) | 398,430 | 246,409 | [2] | ||
Net increase (decrease) in cash and cash equivalents | (265,131) | 276,812 | 136,041 | [2] | ||
Exchange rate difference | (19,040) | (66) | 9,505 | [2] | ||
Cash and cash equivalents at beginning of year | 699,326 | 422,580 | [2] | 277,034 | [2] | |
Cash and cash equivalents at end of the period | 415,155 | 699,326 | 422,580 | [2] | ||
Supplemental schedule of non-cash activities: | ||||||
Additions to leases | € 42,716 | € 14,292 | € 68,044 | [2] | ||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021”[2]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Business description and basis
Business description and basis of presentation | 12 Months Ended |
Dec. 31, 2022 | |
Business description and basis of presentation | |
Business description and basis of presentation | (1) Business description and basis of presentation Evotec SE (“Evotec” or the “Company”) is a drug discovery and development company, continuously driving innovative approaches to develop new pharmaceutical products through discovery alliances and development partnerships with leading pharma and biotechnology companies as well as academic institutions, patient advocacy groups and venture capital partners. Evotec SE, located in Hamburg (Essener Bogen 7, 22419 Hamburg), is registered in the Commercial Registry of Hamburg with HRB 156381. Evotec was founded on 8 December 1993 and is listed on Frankfurt Stock Exchange, Segment Prime Standard, under the trading symbol “EVT” as well as on Nasdaq, New York, United States since 8 November 2021 under the trading symbol “EVO”. Evotec SE, being the ultimate parent entity, presents its consolidated financial statements in its functional currency of Euro. All amounts in the notes are shown in thousands of Euros (k€), unless indicated otherwise. The consolidated financial statements of Evotec were prepared under the going concern premises. The Executive Board prepared the consolidated financial statements for fiscal year 2022 on May 10, 2023 and subsequently submitted them to the Supervisory Board for review and approval at its meeting on May 12, 2023. With reference to Section 264 (3) of the German Commercial Code, the subsidiary Evotec International GmbH does not prepare a management report (Section 289 of the German Commercial Code). |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | (2) Summary of significant accounting policies The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretations as issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU) and additionally as issued by the IASB. The accounting policies below have been applied consistently to all periods presented in the consolidated financial statements and have been applied consistently by all entities except as explained in the Notes “Recent accounting pronouncements, not yet adopted” as well as “Changes in accounting policies” which address changes in accounting policies. - Use of estimates The preparation of the accompanying consolidated financial statements requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities as of the balance sheet date of the financial year as well as income and expenses during the reporting period. Main estimates and assumptions affect the following subjects: – Acquisitions: Assets and liabilities acquired in a business combination are initially accounted for at fair value on the acquisition date. Fair values are determined using a discounted cash flow model which relies on input parameters derived from observable market data. These parameters involve management judgment whenever no comparable market data is available. Significant input parameters used in determining the fair values are the estimated useful life of the assets identified, the long-term business plan as the basis for determining the expected cash flow from these assets and the discount rate applied. – Revenues: Where we have certain fixed-price arrangements with customers, the stage of completion of performance obligations is reviewed by reference to input-based methods, such as hours delivered or full cost incurred (e.g., labor, materials, and other costs) under a contract in relation to expected total hours or total costs needed to fulfil the performance obligation. Revisions made to the estimated stage of completion can result in an adjustment to revenues in the current or future financial periods (see Note 24) and – Impairment testing and fair values: Management has identified the discount rate as well as the growth rate in the terminal value as key assumptions that have the potential to vary and thereby cause the recoverable amount to be lower than the carrying amount. Fair values for long-term investments at the time of acquisition correspond to the acquisition cost. Changes in fair value may occur due to adjusted scientific or financial plans or new financing rounds. (see Note 10, 11, 12, 13, 14 and 15). Other estimates and assumptions were exercised in the following areas: – Earn-out Provisions: Management estimates are made on discounted expected future cash flows. These cash flows are based on the contracts underlying the conditional consideration and the relevant project or business planning. The discount rate considers the risk underlying cash flows (usually weighted average cost of capital of the acquired entity). Additional non-observable input factors include, for example, marketing success probabilities. (see Note 18 and 30), – Measurement of the Share-based payment plans: Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including risk-free interest rates and volatility measures. (see Note 22), – Valuation of deferred tax assets: Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the tax losses can be charged. Management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the expected business performance of the tax subject and respective business plans (see Note 20). – Exercising significant influence on an investee: To determine whether an investor with minority voting rights has significant influence over an investee requires judgement, regarding participation rights in significant financial and operating decisions of these entities (see Note 35d). Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are made prospectively in the period in which the estimates are revised. - Principles of consolidation In the consolidated financial statements of Evotec SE, all domestic and foreign companies which are under its control are included. Evotec controls an entity if it is exposed to, or has the right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are included in the consolidated financial statements from the date on which control is obtained until the date Evotec´s control ceases. If Evotec loses control over a subsidiary, all assets, and liabilities of that subsidiary together with any related non-controlling interests and other equity components are derecognized. Any resulting gain or loss is recognized in the income statement. Any retained interest in the former subsidiary is measured at fair value at the time of loss of control. All intercompany receivables, liabilities and all intercompany revenue, income, expenses and all intragroup profits or losses are eliminated in the consolidation. The financial statements of all to be consolidated subsidiaries are prepared using the same reporting date as the consolidated financial statements (31 December). - Transactions in foreign currency The Group’s consolidated financial statements are presented in euros, which is also the parent company’s functional currency. For each to be consolidated entity the respective functional currency will be determined. ● Subsidiaries The assets and liabilities of foreign subsidiaries with functional currencies other than the Euro are translated into Euro using the respective exchange rates at the end of the reporting period, while the income statements of such subsidiaries are translated using monthly average exchange rates during the period. Gains or losses resulting from translating foreign functional currency financial statements are recognized directly in other comprehensive income and realized on disposal of the subsidiary. ● Associated companies and joint ventures The currency translation of the proportionate equity of joint ventures and associated companies is performed at the respective closing rate of inclusion. The share of the results of associated companies and joint ventures is translated at the average exchange rate and recognized as share of the result of associates accounted for using the equity method, in the statement of comprehensive income. ● Transactions and balances Transactions in foreign currencies are translated in the respective functional currency using the transaction foreign exchange rate. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated into the respective functional currency using the exchange rates at the end of the period. - Financial instruments Recognition of financial instruments Financial assets and financial liabilities are recognized when an entity becomes a party to the contractual provisions of the financial instrument. Regular way purchase and sales of financial instruments are generally recognized on the settlement date. Derivatives are recognized on the day of trading. Derecognition of financial instruments Financial assets are derecognized if either the payment rights arising from the instrument have expired or substantially all risks and rewards attributable to the instrument have been transferred. Financial liabilities are derecognized if the obligations have expired or have been discharged or cancelled. Measurement of financial assets The initial recognition is measured at fair value. The subsequent measurement depends on the classification of the categories as defined in IFRS 9. Classification is based on two criteria: the Group’s business model for managing assets and whether the instruments’ contractual cash flows represent solely payments of principal and interest on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. For the financial assets the following applies: Debt instruments are held by Evotec with the intention to collect contractual cash flows (interest and principal) and to sell these debt instruments. Consequently, they are measured at fair value through OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. Equity instruments are measured at fair value through profit and loss. At Evotec this primarily relates to the long-term investments. All other non-derivative financial assets are measured at amortized cost and therefore according to the effective interest method. Non-derivative financial liabilities For subsequent measurement, non-derivative financial liabilities are measured at amortized cost. Impairment of financial assets Impairment is recognized for all financial assets not held at fair value through profit or loss and contract assets to be recognized in accordance with IFRS 15 using the expected credit loss (ECL) model. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that Evotec expects to receive. For trade receivables and contract assets, Evotec applies a simplified approach in calculating ECLs. Therefore, Evotec does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. See Notes (5) and (6) for details. Offsetting financial instruments Financials assets and liabilities are only offset, and the net amount presented in the consolidated statement of financial position when, and only when, Evotec has the legal right to offset the amounts and either to settle on a net basis or to realize the asset and settle the liability simultaneously. Derivative financial instruments and hedge accounting Evotec uses foreign currency derivative financial instruments as well as interest swaps to hedge its exposure to foreign exchange risks and interest rate fluctuations. Derivative financial instruments are measured at fair value through P&L. For these economic hedge relationships Evotec does not apply hedge accounting under IFRS 9. Derivatives embedded for financial liabilities in host contracts are accounted for separately if the economic characteristics and risk of the host contract and the embedded derivative are not closely related. In accordance with its treasury policy, the Company does not hold or issue derivative financial instruments for trading purposes. Basis for determining fair values of financial instruments. The following summarizes the significant methods and assumptions used in estimating the fair values of financial instruments. The fair value is determined primarily based on publicly determinable bid prices at the reporting date. For unlisted equity instruments or financial instruments without an active market, fair value is estimated using valuation techniques. Unless otherwise reported, the fair values of financial instruments equal the carrying amounts. - Cash and cash equivalents The Company considers all highly liquid short-term investments with original maturities at the date of acquisition of three months or less to be cash equivalents. - Contract assets A contract asset is the right to a consideration in exchange for goods or services transferred to the customer. If Evotec fulfils its contractual obligations by transferring goods or services to a customer before the customer pays the consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional. - Trade receivables A trade receivable is recognized if an amount of consideration that is unconditional is due from the customer. Appropriate allowances are made for identifiable risks. - Inventories In accordance with IAS 2, inventories are valued at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Costs consist of purchased component costs and manufacturing costs, which are comprised of direct material and labor costs and systematic allocated costs. Costs are removed from inventories to costs of revenue based on specific identification. - Property, plant, and equipment Property, plant, and equipment is measured at cost less accumulated depreciation and impairment losses. Property, plant, and equipment acquisitions, including leasehold improvements, are recorded at cost. Depreciation of property, plant and equipment is generally calculated using the straight-line method over the estimated useful lives of the assets. Depreciation of leasehold improvements is calculated using the straight-line method over the shorter of the related lease term or the estimated useful life. The useful lives are as follows: Buildings and leasehold improvements 3-30 years Plant, machinery, and equipment 4-15 years Furniture and fixtures 3-15 years The depreciation period is reviewed at each balance sheet date. Differences from previous estimates are accounted for as a change in an accounting estimate in accordance with IAS 8. The costs included in property, plant and equipment related to assets under construction are not depreciated until the assets are placed into service by the Company. Upon sale or retirement, the costs and the related accumulated depreciation are removed from the respective accounts and any gain or loss is included in other operating income and expenses. Maintenance and repairs of property, plant and equipment are expensed as incurred. - Leases Evotec as a lessee Evotec recognizes and measures all leases (excluding short-term leases and leases of low-value assets) using the Right-of-Use model. The Company recognizes liabilities to make lease payments and Right-of-Use assets representing the right to use the underlying assets. i) Right-of-Use assets Evotec recognizes Right-of-Use assets at the commencement date (i.e., the point in time the underlying leased asset is available for use). Right-of-Use assets are measured at cost less any accumulated depreciation and any accumulated impairment losses. The cost of Right-of-Use assets include the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-Use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets as follows: Right-of Use assets relating to buildings >1-20 years Right-of Use assets relating to plant and machinery 2-7 years Right-of Use assets relating to motor vehicles 3-4 years If legal ownership of the leased asset transfers to Evotec at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the leased asset. ii) Lease liabilities On the provision date of the lease, Evotec recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or an interest rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, Evotec uses an incremental borrowing rate at the lease commencement date when the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification to the lease, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. iii) Short-term leases and leases of low-value assets Evotec applies the short-term lease recognition exemption to all its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Evotec also applies the lease of low-value assets recognition exemption to all leases that are considered to be low-value. Lease payments on short-term leases and leases of low-value assets are recognized as expense. - Associates and joint ventures Associates and joint ventures are entities in which Evotec has significant influence over the financial and operating policies. This significant influence is usually exercised through a direct or indirect share of voting power of 20% to 50%. Significant influence can also exist through a direct or indirect share of voting power of less than 20%, indicators are: ● Representation on the board of directors and/or on the supervisory board, ● (Significant) participation in operating policies, including participation in decisions about dividends of the investee, ● Interchange of managerial personnel, ● Material transactions between the entity and its investee, ● Provision of essential technical information. In case one or more of the above-mentioned indicators apply, Evotec verifies if significant influence exists. Associates and joint ventures are accounted for in the consolidated financial statements using the at-equity method and initially measured at cost. After acquisition, Evotec’s share in the associates and joint ventures profit, or loss is included in the consolidated statement of comprehensive income. Unrealized gains and losses from transactions between Evotec and its associates or joint ventures are recognized only to the extent of unrelated investors` interests in the associates and joint ventures. - Intangible assets, excluding goodwill Intangible assets, excluding goodwill, consist of separately identified intangible assets such as developed technologies, customer related intangibles and patents, which were acquired in business combinations, purchased licenses and patents. Intangible assets with definite useful lives are recorded at cost and are amortized using the straight-line method over the estimated useful lives of the assets. The useful lives are as follows: Trademarks 2-10 years Developed technologies 6-18 years Patents and licenses Up to 15 years Developed technologies acquired in business combinations are amortized as soon as the intangible assets start to generate sustainable benefits and tested for impairment at least annually. Intangible assets excluding goodwill with finite useful lives are tested for impairment whenever there is an indication that the asset may be impaired. If the recoverable amount of the asset is less than the carrying amount, an impairment loss is recognized. If the reason for a previously recognized impairment loss no longer exists, the impairment loss is reversed and the carrying amount of the asset is increased to its amortized cost. Impairment losses are recognized in the income statement as other operating expenses and reversals of impairment losses as other operating income. The amortization period is reviewed at each balance sheet date. - Goodwill Goodwill recognized in a business combination according to the acquisition method is recognized as an asset. If the net assets acquired exceed the fair value of the consideration transferred, the income from bargain purchase is recognized in the consolidated income statement following a reassessment. - Impairment of non-financial non-current assets and goodwill The Company reviews non-financial non-current assets (property, plant and equipment and intangible assets including goodwill) for impairment, in the respect to the recoverable amount in accordance with IAS 36. An impairment review is performed at least annually for intangible assets with indefinite useful lives, intangible assets not yet available for use and goodwill, or whenever events or changes in circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. In line with the Company’s policy concerning the impairment of intangible assets with indefinite useful lives and goodwill, the Company carried out an impairment test in the fourth quarter of 2022 and 2021 based on 30 September balance sheet information, see Note (13) and (14). An impairment loss is recognized if the carrying amount of an asset (or a group of assets when considering a cash-generating unit) exceeds its recoverable amount, which is the higher of its fair value less costs to sell or value in use. The value in use for an asset or cash-generating unit, which is used by Evotec for the impairment testing of non-financial non-current assets and goodwill, is calculated by estimating the net present value of future cash flows arising from that asset or cash-generating unit. The discount rate used to calculate the value in use is determined to reflect the risks inherent for each asset or cash-generating unit. The evaluation of the further use is based on a mid-range or where applicable long-range forecast. Management judgment is necessary to estimate discounted future cash flows. Any impairment loss is reported as a separate component of other operating expenses in the consolidated income statement. An impairment of property, plant and equipment and intangible assets excluding goodwill is again reversed if there has been a change in the estimates used to determine the recoverable amount leading to an increase in value for a previously impaired asset or group of assets as one cash-generating unit. It is reversed only to the extent that the assets or the group of assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been previously recognized. Impairments of goodwill are not reversed. - Provisions Provisions are recognized when the Company has a present obligation because of a past event which will result in a probable outflow that can be reliably estimated. The amount recognized represents the best estimate of the settlement amount of the present obligation as of the balance sheet date. Non-current provisions are discounted applying a risk adjusted market interest rate. A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from such a contract are lower than the unavoidable expenses of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected expenses of terminating the contract and the expected net expense of continuing with the contract. Before a provision is established, Evotec recognizes any impairment expense on the assets associated with that contract. - Pension and similar obligations The Company’s net obligation for defined benefit and other postretirement benefit plans have been calculated using the projected unit credit method. The calculation is based on actuarial expertise considering the relevant biometric factors. Actuarial gains and losses are recognized in other comprehensive income.Service and interest costs for pensions and other postretirement obligations are recognized as an expense in the operating result. The Company’s obligations for contributions to defined contribution plans are recognized as expense in the consolidated income statement. - Contract liabilities A contract liability is the obligation of Evotec to transfer goods or services to a customer for which Evotec has received a consideration (or an amount of consideration is due). If a customer pays the consideration before Evotec transfers goods or services to the customer, a contract liability is recognized when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when Evotec fulfils its contractual obligation. Evotec contracts do not include financing components as all up-front consideration received are prepayments on service obligations. - Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of ordinary shares are recognized net of tax as a deduction from equity. The Company applies the regulations of IAS 32 in accounting for treasury shares. When ordinary shares recognized as equity would be reacquired, the amount of the consideration paid for those treasury shares is recognized as a deduction from equity. If treasury shares are subsequently sold or granted, the proceeds will be recognized net of tax as an increase in equity. - Stock options and Share Performance Awards The Company applies the regulations of IFRS 2 with regard to accounting for options granted under its stock option plans and under its Share Performance Plan. All plans are settled in shares and therefore are recorded through equity. Compensation cost from the issuance of employee and Management Board stock options are measured using the fair value method at the grant date and charged straight-line to expense over the service period. This is also the case for the grant of Share Performance Awards to employees and to members of the Management Board. In case the estimates regarding the achievement of the key performance indicators change, the fair value of Share Performance Awards is adjusted as long as if it is not a share price-based indicator. - Revenues from contracts with customers Revenue is recognized when the control over separable services or research services is transferred to the customer, provided that a contract with enforceable rights and obligations exists and that collectability of consideration is probable. The Company assesses collectability based on a number of factors, including past transaction history with the customer and the customer’s creditworthiness. The Company has entered into contracts which can have multiple-elements and thoroughly determined whether the different revenue-generating elements are sufficiently separable and whether there exists sufficient evidence of their fair values to separately account for some or all of the individual elements of the contracts. Only if an element is considered to meet these criteria it does represent a separate unit of accounting. When allocating the transaction price to individual performance components, Evotec uses FTE-rates as indicator of the fair value of these components. Evotec’s revenues include service fees, FTE-based research payments revenue for delivered goods and deliverable kind of services, recharges, technology access fees as well as milestone fees, licenses, and royalties. Service fees, FTE-based research payments as well as deliverable services Revenues generated from service contracts or FTE-based research contracts, or deliverable kind of services are recognized as the services are rendered. Evotec applies an input-based method to measure the progress of completion of its performance obligations. In rare cases and only for specific contracts, output-based methods are applied whenever the contracts warrant such measurement. Payments for those services are generally paid in full or in parts in advance and recorded as contract liabilities. Contract assets are recognized in case Evotec’s progress of completion of its performance obligations exceeds the amount of the payments received. Those contracts may also contain variable compensation, which Evotec only includes in the transaction price when it becomes highly probable that such payments will be received. This is rarely the case upon contract inception or in early stages of contracts, owing to the nature of the services. Technology access fees Revenue from technology access fees is recognized pro rata over the related forecasted service period. Payments for technology access fees are generally paid in full or in parts in advance and recorded as contract liabilities until earned. Milestone fees Revenue contingent upon the achievement of certain milestones is recognized in the period the milestone is successfully achieved or all the performance obligation fulfilled. This occurs when the Company’s contract partner agrees that the requirements stipulated in the agreement have been met. Under IFRS 15, earlier recognition carries an increased risk of revenue corrections required and hence Evotec refrains from an earlier recognition. Licenses Revenue from the sale of licenses is recognized at the date of the sale. Revenue from out-licensing in combination with a collaboration is realized pro rata over the collaboration period. Payments from the sale of licenses are received on the day of the sale or thereafter. Royalties Revenue from royalties, which are dependent on other company’s respective product sales, is recognized in the period in which the royalty report or the payment is received. Payments are received either on the same day as the royalty report or thereafter. Royalties are typically contract components with a variable consideration which will as mentioned above only be realized as revenues when it is highly probable that the consideration will be received. Main estimates and assumptions > Identifying performance obligations, allocating the transaction price, and determining the stage of completion of contracts with service fees, FTE-based research payments as well as deliverable kind of services. Evotec performs research and development (R&D) services for a variety of customers under different contractual arrangements. When performance obligations are individually capable of being distinct and distinct in the context of the contract, Evotec allocates the transaction price to distinct performance obligations based on relative stand-alone selling prices of the obligations. Primarily, contracts for research and development (R&D) services often contain a large amount number of individual services, trigger upfront payments to cover the entire transaction price and are concluded for the overall purpose of identifying new research results partially or fully. The Group has determined that services under such contracts are integrated and qualify as one performance obligation. As far as other distinct services are included in those type of contracts, Evotec allocates the transaction price on the basis of relative stand-alone selling prices of the obligations. Such fixed-price arrangements are recognized over time as the respective performance obligation is fulfilled. Evotec applies an input-based method to measure the progress of completion of its performance obligations such as hours delivered or full cost incurred (e.g., labor, materials, and other costs) under a contract in relation to expected total hours or total costs needed to fulfil the performance obligations. For each contract, Evotec selects the input-based method that most faithfully depicts the transfer of services stated in the contract. In rare cases and only for specific contracts, output-based methods are applied whenever the contract warrants such measurement. > Determining the method to estimate variable compensation and assessing the constraint. Customer contracts often contain success-based variable compensation for research services and other contingent payments. The contingency often relates to few and specific research services, which is why Evotec determines the most likely amount payable under the contract. In addition, Evotec assesses whether a constraint exists in reference |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2022 | |
Segment information | |
Segment information | (3) Segment information EVT Execute and EVT Innovate were identified by the Management Board as operating segments. EVT Execute includes mainly fee-for-service and FTE-rate arrangements where our customers own the intellectual property, whereas EVT Innovate comprises of internal R&D activities as well as services and partnerships that originate from these R&D activities where we typically own or co-own intellectual property with our strategic partners. The responsibility for EVT Execute was allocated to the COO, Dr. Craig Johnstone, while the responsibility for EVT Innovate was allocated to the Chief Scientific Officer (CSO), Dr. Cord Dohrmann. Management does not allocate assets and liabilities to segments. The assessment of the individual operating segments is based on revenues and adjusted EBITDA. Intersegment revenues are valued on an arms-length principle. Adjusted EBITDA is calculated excluding non-operating income (expenses) and excluding the adjustments shown in the reconciliation below. Expenses and income below operating profit are not included in the segment result. Management had previously excluded recharges from the segments; however, in 2021, management changed its presentation of segment information to include recharges in the segments and the amounts of segment revenues and costs of revenues below were restated accordingly. As a result, revenues from recharges, previously shown in the column “Transition” and not allocated to the segments, are allocated to the segments EVT Execute and EVT Innovate in 2020. The segment information for the financial year 2022 is as follows: EVT EVT Intersegment Evotec in k€ Execute 1) Innovate eliminations Group Revenues 735,635 204,730 (188,917) 751,448 Operating income (loss) 32,523 (11,673) — 20,850 1) The segment information for the financial year 2021 is as follows: EVT EVT Intersegment Evotec in k€ Execute 1) Innovate eliminations Group Revenues 610,168 146,982 (139,116) 618,034 Operating income (loss) 63,109 (22,113) — 40,996 1) The segment information for the financial year 2020 is as follows: EVT EVT Intersegment Evotec in k€ Execute 1) Innovate eliminations Group Revenues 509,870 106,830 (115,776) 500,924 Operating income (loss) 77,362 (28,806) — 48,556 1) Non-current assets categorized by the location of the companies as of 31 December can be analyzed as follows: Non-current Assets 2022 2021 k€ k€ United States 231,439 209,508 United Kingdom 211,115 196,543 Italy 227,113 188,858 France 205,749 129,178 Germany 160,970 105,283 Switzerland — 14,089 Austria 3,914 2,697 Canada 1,906 1,913 1,042,206 848,069 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions | |
Acquisitions | (4) Acquisitions Effective 1 July 2022, Evotec acquired 100% of the shares in Rigenerand Srl. in Medolla, Italy. The acquired company operates a certified facility integrating state-of-the-art cGMP manufacturing with R&D, QC and development laboratories. The entity will continue operation under the name Evotec (Modena) Srl. with this acquisition, Evotec is able to expand its cell therapy platform EVOcells with its own high-quality cGMP manufacturing facility. The purchase price for the shares was k€ 23,000 in cash, increased by an unlimited earn-out as contingent consideration. The contingent consideration is based on a share of net revenues for a cell-based gene therapy product acquired as part of the acquisition (see below). At the time of acquisition, the earn-out was determined based on the discounted expected future cash flows, weighted by the probability that the respective payments will have to be made, in the amount of k€ 14. As of 31 December 2022, the earn-out provision amounts to k€ 14. The underlying developed technology (cell-based gene therapy product) was recognized at a fair value of k€ 120 on the basis of a risk-adjusted discounted cash flow model, adjusting the previous capitalization at cost. Two further developed technologies were adjusted to a fair value of k€ 0, taking into account the expected future economic potential. The fair value of the other assets and liabilities was determined on the basis of the net carrying amounts at the acquisition date. The preliminary purchase price allocation resulted in goodwill of k€ 19,622, which is allocated to the Execute segment and the cash-generating unit Aptuit Execute. The main drivers of the goodwill recognized is the ability to have highly qualified employees in combination with a cGMP-certified cell therapy production facility available in a short period of time to meet the needs of internal and external customers. Evotec’s income statement for the fiscal year 2022 includes a profit of k€ 159 and revenues of k€ 1,715 from the acquisition of Rigenerand. On a pro forma base, Evotec would have recognized revenues of k€ 1,781 and a loss of k€ 889. The transaction costs incurred of k€ 773 were recognized as selling, general and administrative expenses in the income statement in 2022. The preliminary purchase price allocation as of 1 July 2022 results in the fair values of Evotec (Modena) Srl. at the acquisition date as shown in the following table: in k€ as of 1 July 2022 Cash and cash equivalents 263 Trade accounts receivables 244 Inventories 29 Property, plant, and equipment 3,809 Intangible assets 727 Deferred tax asset 344 Other assets 374 Trade accounts payable (382) Current liabilities (564) Non-current liabilities (1,009) Other liabilities (370) Other accrued liabilities (73) Net assets acquired 3,392 Goodwill 19,622 Cost of acquisition 23,014 Contingent consideration (14) Cash and cash equivalents acquired (263) Cash outflow on acquisition 22,737 Evotec acquired 100% of the shares in Central Glass Germany GmbH, Halle (Westphalia), Germany, effective as of 1 November 2022. The acquired company has a team of highly skilled chemistry experts and a fully operational EU-cGMP certified manufacturing facility. Central Glass Germany GmbH was renamed to Evotec Drug Substance (Germany) GmbH (“Evotec DS”) and continues to operate under this name. The strategic transaction strengthens Evotec’s clinical and commercial manufacturing capacity and capabilities for small molecule therapeutics. The purchase price for the shares in Central Glass Germany GmbH was € 1 in cash. A performance-based component was not included. In the course of the acquisition Evotec also acquired receivables from an inter-company loan between the seller and Central Glass Germany GmbH. As part of the preliminary purchase price allocation, an order backlog with a negative fair value of k€ (2,200) was identified based on the Multi-Period Excess Earnings Method (MEEM). In addition, a negative fair value adjustment of inventories in the amount of k€ (981) was recognised. For the other assets and liabilities, the fair value was determined on the basis of the net book values at the time of acquisition. The transaction generated a bargain purchase price that was recorded in other operating income. The bargain purchase price of k€ 4,909 was determined taking the intrinsic added value on the Group’s operation compared to the seller’s present obligations if it had to discontinue the current operations. Evotec’s net result for the financial year 2022 includes a loss after tax of k€ 559 and revenues from customer contracts of k€ 2,097 from the acquisition of Central Glass Germany. On a pro forma base, Evotec would have recognised revenues from contracts with customers of k€ 5,396 and a loss of k€ (5,261). Transaction costs of k€ 943 were recognised in the income statement as selling, general and administrative expenses in 2022. The acquisition was allocated to the Aptuit Execute segment.The purchase price allocation results in the acquisition values of Evotec DS at the date of acquisition shown in the table below: in k€ as of 1 November 2022 Cash and cash equivalents 16,099 Trade accounts receivables 1,210 Inventories 2,903 Prepaid expenses 77 Property, plant, and equipment 6,213 Intangible assets 23 Deferred tax asset 725 Trade accounts payable (43) Current provisions (609) Contract liabilities (705) Current tax payables (76) Other payables (7) Non-current provisions (553) Non-current lease liabilities (3,940) Order intake (2,200) Acquired net assets 19,117 Bargain Purchase (4,909) Consideration transferred 14,208 Cash and cash equivalents 16,099 Purchase price for shareholder loan (14,208) Cash outflow on acquisition 1,891 Both acquisitions are still within the initial measurement period as defined within IFRS 3. |
Cash, cash equivalents and inve
Cash, cash equivalents and investments | 12 Months Ended |
Dec. 31, 2022 | |
Cash, cash equivalents and investments | |
Cash, cash equivalents and investments | (5) Cash, cash equivalents and investments Included in investments are corporate bonds, which are reported at fair value. The corporate bonds and similar instruments are classified as measured at fair value through OCI. As of 31 December 2022, unrealized gains in the amount of k€ 12,064 (31 December 2021: gains of k€ 1,448) were recognized in other comprehensive income relating to those assets. While managing liquidity, Evotec is investing in deposits with maturities beyond three months which are also included in investments. These deposits are measured at amortized costs. Based on the expected credit loss, an allowance of k€ 225 has been recognized as of 31 December 2022 (31 December 2021: k€ 239). As of 31 December 2022, k€ 14,458 of the cash balances with credit institutions were restricted (31 December 2021 k€ 7,736). |
Trade accounts receivables
Trade accounts receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade accounts receivable | |
Trade accounts receivables | (6) Trade accounts receivables The Company has assessed the non-payment risk of all trade accounts receivables. The resulting valuation allowance as of 31 December 2022 amounts to k€ 3,223 (31. December 2021:k€ 2,100) and includes a risk provision for specific default risks of trade receivables in the amount of k€ 2,312 (31. December 2021: k€ 1,584) as well as for expected credit risks according to IFRS 9 in the amount of k€ 911 (31 December 2021: k€ 516). The maturities of trade receivables as at 31 December, taking into account risk provisions, are as follows: 31 Dec 31 Dec 2022 2021 k€ k€ Not past due 136,372 95,556 Risk provision not past due — — Past due 1-30 days 24,425 31,222 Risk provision 1-30 days (67) (30) Past due 31-120 days 6,301 5,164 Risk provision 31-120 days (323) (89) More than 120 days 4,778 2,236 Risk provision more than 120 days (2,833) (1,981) Total trade accounts receivables 168,653 132,078 The risk provision for expected credit risks in accordance with IFRS 9 of k€ 911 (31 December 2021: k€ 516) has been determined with estimates. Expected failure rates between 0.078% and 16.758% (31 December 2021: 0.024% and 21.8%) and is included in the allowance. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Inventories | (7) Inventories Inventories consist of the following: 31 Dec 31 Dec 2022 2021 k€ k€ Raw materials 27,917 25,043 Work-in-progress 1,908 750 Total inventories 29,825 25,793 The increase in raw materials is mainly due to the acquisition of Evotec DS. Raw materials are mainly consumables, cell culture media and disposables. Allowances on inventories exist at the balance sheet date in the amount of k€ 1,679 (31 December 2021: k€ 595). |
Contract assets
Contract assets | 12 Months Ended |
Dec. 31, 2022 | |
Contract assets. | |
Contract assets | (8) Contract assets Contract assets consist of assets resulting from customer contracts. As of 31 December 2022, no material risk provision was recorded. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid expenses and other current assets | |
Prepaid expenses and other current assets | (9) Prepaid expenses and other current assets Prepaid expenses as of 31 December 2022 mainly relate to prepayments for insurance premiums. The other current assets mainly comprise VAT-related receivables of k€ 19,035 (31 December 2021: k€ 14,943) and positive fair values of forward exchange contracts in the amount of k€ 8,215. 31 Dec 31 Dec 2022 2021 k€ k€ Prepaid expenses 16,948 19,210 Other 40,178 20,685 Total prepaid expenses and other current assets 57,126 39,895 |
Long-term Investments accounted
Long-term Investments accounted for using the equity method | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Investments accounted for using the equity method | |
Long-term Investments accounted for using the equity method | (10) Long-term Investments accounted for using the equity method Individually immaterial shares in companies accounted for using the equity method are presented in aggregate, provided that at the balance sheet date the equity book value did not exceed k€ 10,000 or Evotec’s share of earnings in the result were less than k€ 2,000 in the company’s profit or loss. As at the balance sheet date, five investments were classified as significant and eight investments were classified as insignificant. The additions to the significant investments in 2022 are entirely related to financing rounds (capital contributions). The additions to insignificant investments in 2022 amount to k€ 3,754 and include the acquisition of Tucana Biosciences Inc.for k€ 2,504. The following table summarizes the development of the long-term investments during year 2022: Breakpoint Dark Blue Topas Autobahn Therapeutic Curexsys Therapeutics Therapeutics Insignificant in k€ Labs LLC GmbH GmbH Ltd GmbH Investments Total Balance at 1 January 2022 — 2,774 4,212 405 1,497 4,180 13,068 Additions 3,634 — 2,564 7,167 1,821 3,754 18,940 Pro rata net result (2,263) (2,774) (2,809) (3,550) (2,913) (1,656) (15,965) Loss against other current assets — — — — — — — Impairment — — — — — — — Discontinued use of equity method — — — — — — — Net book value 31 December 2022 1,371 — 3,967 4,022 405 6,278 16,043 The following table summarizes the development of the long-term investment during the year 2021: Breakpoint Exscientia NephThera Therapeutics Insignificant in k€ plc 1 GmbH 2) GmbH investments Total Balance at 1 January 2021 21,040 486 1,918 16,266 39,710 Additions — — 3,667 7,244 10,911 Pro rata net result (1,577) (486) (2,811) (11,696) (16,570) Loss against other current assets — — — 977 977 Impairment — — — (2,497) (2,497) Discontinued use of equity method (19,463) 1) — — — (19,463) Net book value 31 December 2021 — — 2,774 10,294 13,068 1) In the first half of 2021, Evotec did not participate in two financing rounds of Exscientia plc (before: Exscientia Ltd.), resulting in Evotec’s shareholding decreasing from 20.32% to 14.84% . In the third quarter of 2021, Exscientia plc was listed for the first time on the NASDAQ and the shareholding further decreased through dilution to 11.70% as of 31 December 2021 through dilution. Consequently, Exscientia plc is no longer accounted for using the equity method but at fair value in accordance with IFRS 9. 2) NephThera GmbH is a joint venture. Further financial information on the significant investments accounted for using the equity method is presented below: Breakpoint Dark Blue Topas Autobahn Therapeutics Curexsys Therapeutics Therapeutics Labs LLC GmbH GmbH Ltd GmbH 2022 k€ k€ k€ k€ k€ Current assets 4,029 7,204 3,409 14,244 6,795 Non-current assets 6 2 484 32 — Current liabilities 672 1,068 302 1,065 843 Non-current liabilities — 143 85 8,208 — Revenues from 1 Jan to 31 Dec — — 15 — — Net result from 1 Jan to 31 Dec (6,144) (11,789) (6,940) 1,025 (9,340) Breakpoint NephThera Therapeutics GmbH GmbH 2021 k€ k€ Current assets 8,013 18,501 Non-current assets 10 2 Current liabilities 525 719 Non-current liabilities — — Revenues from 1 Jan to 31 Dec — — Net result from 1 Jan to 31 Dec (5,769) (8,283) |
Other long-term investments
Other long-term investments | 12 Months Ended |
Dec. 31, 2022 | |
Other long-term investments | |
Other long-term investments | (11) Other long-term investments The development of investments measured at fair value in accordance with IFRS 9 is shown below: 2022 2021 k€ k€ Balance at 1 January 268,793 19,289 Additions 46,137 6,647 Additions due to discontinue use of equity method — 19,463 Adjustments at fair value, affecting net income (172,159) 223,394 Adjustments at fair value, affecting OCI (11,729) — Net book value 31 December 131,042 268,793 Exscientia was previously accounted for using the equity method (please refer to Note 10 for information). Investments are continuously tested for fair value adjustments. Fair value adjustments of k€ 174,729 mainly relate to two financing rounds of Exscientia in which Evotec did not participate as well was the first-time listing of Exscientia. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment. | |
Property, plant and equipment. | (12) Property, plant, and equipment The development of property, plant, and equipment in 2022 and 2021 is shown in the following tables. The table below also includes the right of use assets (see note 13 Leases) with a net book value of k€ 168,327 as of 31 December 2022 (31. December 2021 k€ 145,038). 2022 k€ Plant, Buildings and machinery leasehold and Furniture Assets under improvements equipment and fixtures construction Total Acquisition and manufacturing costs Amount beginning of the year 378,467 227,611 39,658 40,350 686,086 Foreign currency translation 3,234 839 (62) 883 4,894 Additions 61,673 59,611 11,663 95,618 228,565 Business combination 6,534 3,309 107 94 10,044 Disposals 3,573 3,101 1,243 862 8,779 Reclass 16,727 1,667 1,308 (19,702) — Amount end of the year 463,062 289,936 51,431 116,381 920,810 Depreciation, amortisation, and write-downs Amount beginning of the year 63,379 113,901 24,209 — 201,489 Foreign currency translation (196) (355) (168) — (719) Additions 33,126 30,490 9,061 — 72,677 Disposals 44 1,563 1,231 — 2,838 Reclass 2,194 (2,166) (28) — — Amount end of the year 98,459 140,307 31,843 — 270,609 Net book value Amount beginning of the year 315,088 113,710 15,449 40,350 484,597 Amount end of the year 364,603 149,629 19,588 116,381 650,201 2021 k€ Plant, Buildings and machinery Assets leasehold and Furniture under improvements equipment and fixtures construction Total Acquisition and manufacturing costs Amount beginning of the year 215,055 168,224 27,445 71,155 481,879 Foreign currency translation 9,099 4,576 718 3,362 17,755 Additions 83,535 36,082 7,546 63,653 190,816 Business combination — — — — — Disposals 3,022 443 860 39 4,364 Reclass 73,800 19,172 4,809 (97,781) — Amount end of the year 378,467 227,611 39,658 40,350 686,086 Depreciation, amortisation, and write-downs Amount beginning of the year 40,472 87,048 17,062 — 144,582 Foreign currency translation 1,919 2,628 620 — 5,167 Additions 23,463 24,826 7,307 — 55,596 Disposals 2,552 424 880 — 3,856 Reclass 77 (177) 100 — — Amount end of the year 63,379 113,901 24,209 — 201,489 Net book value Amount beginning of the year 174,583 81,176 10,383 71,155 337,297 Amount end of the year 315,088 113,710 15,449 40,350 484,597 The increase in the net book value of property, plant, and equipment of k€ 165,604 is mainly attributed to new buildings technical equipment, and construction in progress. This is due to the continued construction of the J.POD factory in Toulouse, France (increase of k€ 55,705). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | (13) Leases Set out below are the carrying amounts of right-of use assets recognized and the movements during the period: 2022 k€ Right of use Right of Plant, use machinery Furniture Right of use and and Buildings equipment Fixtures Total Acquisition and manufacturing costs Amount beginning of the year 177,602 8,077 997 186,676 Foreign currency translation (919) (17) — (936) Additions 38,393 306 338 39,037 Business combination 3,940 — 22 3,962 Disposals — — — — Reclass 3,718 (3,678) (40) — Amount end of the year 222,734 4,688 1,317 228,739 Depreciation, amortisation, and write-downs Amount beginning of the year 35,722 5,384 532 41,638 Foreign currency translation 8 109 — 117 Additions 17,855 575 229 18,659 Disposals — — — — Reclass 2,194 (2,166) (28) — Amount end of the year 55,779 3,902 733 60,414 Net book value Amount beginning of the year 141,880 2,693 465 145,038 Amount end of the year 166,955 786 584 168,325 2021 k€ Right of use Right of Plant, use machinery Furniture Right of use and and Buildings equipment Fixtures Total Acquisition and manufacturing costs Amount beginning of the year 158,454 8,382 529 167,365 Foreign currency translation 7,442 30 — 7,472 Additions 14,077 — 215 14,292 Business combination — — — — Disposals 2,453 — — 2,453 Reclass 82 (335) 253 — Amount end of the year 177,602 8,077 997 186,676 Depreciation, amortisation, and write-downs Amount beginning of the year 21,169 3,939 147 25,255 Foreign currency translation 2,573 120 24 2,717 Additions 14,160 1,462 207 15,829 Disposals 2,163 — — 2,163 Reclass (17) (137) 154 — Amount end of the year 35,722 5,384 532 41,638 Net book value Amount beginning of the year 137,285 4,443 382 142,110 Amount end of the year 141,880 2,693 465 145,038 Set out below are the carrying amounts of lease liabilities and the movements during the period: 2022 2021 k€ k€ Amount beginning of the year 150,437 145,554 Foreign currency translation (923) 6,691 Additions 38,784 14,292 Business combination 3,962 — Disposals (232) (58) Accretion of interest 3,841 3,728 Payments (19,046) (19,770) Amount end of the year 176,823 150,437 The lease liabilities are due as follows: 31 Dec 22 31 Dec 21 k€ k€ Current portion of lease obligations 14,825 14,473 Long-term lease obligations 161,998 135,964 176,823 150,437 The following amounts are recognised in profit and loss: 2022 2021 2020 k€ k€ k€ Depreciation expense of right-of-use assets 18,659 15,829 16,035 Interest expense on lease liability 3,841 3,728 3,125 Expense relating to short-term leases 476 839 807 Expense relating to leases of low-value assets 50 56 33 Variable lease payments — — — Total amount recognised in profit and loss 23,026 20,452 20,000 The Group’s cash outflows for leases amounted to k€19,046 in 2022 (2021: k€20,665; 2020: k€ 21,014). Future cash outflows for leases that have not yet begun are set out in the explanation “(31) Commitments and contingencies”. |
Intangible assets, excluding go
Intangible assets, excluding goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets, excluding goodwill | |
Intangible assets, excluding goodwill | (14) Intangible assets, excluding goodwill The development of intangible assets in 2022 and 2021 is shown in the following tables. 2022 k€ Patents and Developed Customer Favorable licenses technology related Trademarks Contract Total Acquisition and manufacturing costs Amount beginning of the year 11,211 99,784 69,089 6,539 — 186,623 Foreign currency translation — 34 — — — 34 Additions — 917 — — — 917 Business combination 1,672 — — — — 1,672 Disposals — — — — — — Reclass — — — — — — Amount end of the year 12,883 100,735 69,089 6,539 — 189,246 Depreciation, amortization and write-downs Amount beginning of the year 10,182 92,983 47,391 5,216 — 155,772 Foreign currency translation — (438) 45 — — (393) Additions 1,223 1,559 6,969 297 — 10,048 Disposals — — — — — — Reclass (56) 56 — — — — Impairment — — — — — — Amount end of the year 11,349 94,160 54,405 5,513 — 165,427 Net book value Amount beginning of the year 1,029 6,801 21,698 1,323 — 30,851 Amount end of the year 1,534 6,575 14,684 1,026 — 23,819 2021 k€ Patents and Developed Customer Favorable licenses technology related Trademarks Contract Total Acquisition and manufacturing costs Amount beginning of the year 10,772 98,845 67,647 6,539 62,033 245,836 Foreign currency translation — 939 1,442 — — 2,381 Additions 439 — — — — 439 Business combination — — — — — — Disposals — — — — 62,033 62,033 Reclass — — — — — — Amount end of the year 11,211 99,784 69,089 6,539 — 186,623 Depreciation, amortization and write-downs Amount beginning of the year 10,095 90,272 37,786 4,574 5,073 147,800 Foreign currency translation — 348 691 — — 1,039 Additions 87 1,680 8,914 642 689 12,012 Disposals — — — — 5,762 5,762 Reclass — — — — — — Impairment — 683 — — — 683 Amount end of the year 10,182 92,983 47,391 5,216 — 155,772 Net book value Amount beginning of the year 677 8,573 29,861 1,965 56,960 98,036 Amount end of the year 1,029 6,801 21,698 1,323 — 30,851 Intangible assets excluding goodwill decreased by k€ 7,032 from k€ 30,851 at 31 December 2021 to k€ 23,819 at 31 December 2022. This decrease is mainly due to amortization of the Evotec customer base of k€ 6,969, of which k€ 5,557 relates to the Aptuit customer base. In the financial year 2021 a developed technology in the amount of k€ 683 was impaired. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill | |
Goodwill | (15) Goodwill The Company has tested the cash-generating units for impairment on the annual designated test date in the fourth quarter 2022 based on the net book values as of 30 September 2022. The impairment tests are performed by determining the recoverable amount based on discounted cash flows. The recoverable amount is based either on value in use or fair value less costs to sell in 2022 and 2021. With respect to the development of goodwill please refer to the following detailed schedules. OAI/Evotec OAI/Evotec Evotec International International Aptuit (US) Just Execute Innovate Execute Execute Execute Total k€ k€ k€ k€ k€ k€ 1 January 2022 84,480 9,204 128,845 4,197 30,843 257,569 Business combination — — 19,622 — — 19,622 Disposal — — — — — — Reclass — — — — — — Foreign currency translation (2,257) (40) (2,243) 260 1,908 (2,372) 31 December 2022 82,223 9,164 146,224 4,457 32,751 274,819 The goodwill addition in financial year 2022 to the Aptuit Execute cash-generating unit was a result of the acquisition of Evotec (Modena) Srl, see (Note 4). Foreign currency translation resulted in a decrease of k€ 2,372. OAI/Evotec OAI/Evotec Evotec International International Aptuit (US) Just Execute Innovate Execute Execute Execute Total k€ k€ k€ k€ k€ k€ 1 January 2021 79,816 9,154 126,059 3,874 28,467 247,370 Business combination — — — — — — Disposal — — — — — — Reclass — — — — — — Foreign currency translation 4,664 50 2,786 323 2,376 10,199 31 December 2021 84,480 9,204 128,845 4,197 30,843 257,569 For the cash generating units OAI/Evotec International Execute, OAI/Evotec International Innovate and Evotec (US) Execute, the impairment tests are based on value in use calculations. For the cash generating units Aptuit Execute and Just Execute the fair value less costs to sell method was applied. With the exception of the Just Execute cash-generating unit, the estimated future cash flows are based on a strategic plan of up to five years, extrapolated over a simplified transition period to a total forecast period of ten years and then extrapolated using a perpetual rate. As the J.POD is a new technology and the corresponding estimated cash flows are subject to a higher degree of uncertainty during the expected high growth in the start-up phase, the estimated future cash flows for the Just Execute cash-generating unit are based on an extended detailed planning period of ten years, after which the cash flows are extrapolated using a perpetual annuity. Management has identified the cash flow schedule, the terminal value growth rate, and the discount rate as key assumptions to which the recoverable amount is most sensitive. Management has determined the values for the key assumptions as follows: – The cash flow plan is based on past experience and management’s expectations for the future, taking into account specific expectations regarding customer growth and product performance, volume increases, changes in product mix and specific investments. – The terminal value growth rate is based on the current estimates of long-term inflation in the regions relevant to Evotec’s operations. – The discount rates of the cash-generating units correspond to their weighted average cost of capital before tax, based on capital market data of a peer group. The following tables show the relevant pre-tax discount rate as well as the growth rates used to determine the terminal value in the respective discounted cash flows. Cash-generating units 2022 OAI/Evotec OAI/Evotec Evotec International International (US) Aptuit Just Execute Innovate Execute Execute Execute Denominated in GBP/EUR GBP/EUR USD GBP/EUR USD Pre-tax discount rate 10.15 % 11.93 % 9.32 % 13.12 % 11.71 % Growth rate for terminal value 2.0 % 2.0 % 2.0 % 2.0 % 2.0 % Cash-generating units 2021 OAI/Evotec OAI/Evotec Evotec International International (US) Aptuit Just Execute Innovate Execute Execute Execute Denominated in GBP/EUR GBP/EUR USD GBP/EUR USD Pre-tax discount rate 8.19 % 11.51 % 7.87 % 9.83 % 9.22 % Growth rate for terminal value 2.0 % 2.0 % 2.0 % 2.0 % 2.0 % A sensitivity analysis was performed for all cash-generating units with regard to reasonable changes in the key assumptions used for 2022. The analysis was based on a 10% decrease in future cash flows, a 10% increase in the discount rate or a 1% decrease in the terminal sustainable growth rate. Management concluded that in the event of these changes in key assumptions, no impairment would recorded In 2022 and 2021, the Company did not recognise any impairment losses as a result of the annual impairment tests. |
Non-current tax receivables
Non-current tax receivables | 12 Months Ended |
Dec. 31, 2022 | |
Non-current tax receivables | |
Non-current tax receivables | (16) Non-current tax receivables Non-current tax receivables as of 31 December 2022 and 2021 relate mainly to tax refunds from tax development programs in the context of qualifying R&D expenses in France (crédit d’impôt recherche). |
Loan liabilities
Loan liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Loan liabilities | |
Loan liabilities | (17) Loan liabilities Throughout the years 2022 and 2021, Evotec met all covenants under the various loan agreements shown below. All loans are unsecured. 31 December 31 December 2022 2022 2021 2021 Nominal interest Maturity Fair Carrying Fair Carrying Country of lender Currency rate until Value amount Value amount k€ k€ k€ k€ Germany EUR fixed interest rate of 0.9% to 3.8% 2024-2029 198,281 214,671 254,911 249,530 Germany EUR 1.60% 2024-2027 71,846 75,000 78,596 75,000 Germany EUR 1.20% 2029 6,358 6,722 8,014 7,797 Germany EUR 1.40% 2031 19,099 20,367 21,332 20,367 Italy EUR fixed interest rate of 1.3% to 3.05% 2026-2027 1,218 1,257 — — France EUR 0.55% 2025 10,038 10,742 8,559 8,650 306,840 328,759 371,412 361,344 Current loan liabilities as of 31 December 2022 consist of interest liabilities of k€ 1,092 (31 December 2021: k€ 1,136). As of 31 December 2022, Evotec maintained unutilized lines of credit totaling k€ 245,509 (31 December 2021: k€ 99,601). On 29 December 2022, Evotec signed a facility agreement of k€ 150,000 with the European Investment Bank (EIB). As of 31 December 2022, Evotec has not drawn any amount from this facility agreement. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Provisions. | |
Provisions | (18) Provisions The current provisions consist of the following: 31 Dec 31 Dec 2022 2021 k€ k€ Other personnel expenses 47,490 33,983 Pensions 1,730 1,478 Other provisions 5,190 3,799 Total current provisions 54,410 39,260 The non-current provisions consist of the following: 31 Dec 31 Dec 2022 2021 k€ k€ Pensions 12,531 12,950 Other personnel expenses 1,209 2,029 Other provisions 2,687 3,042 Total non-current provisions 16,427 18,021 The following table summarizes the development of total provisions recorded during 2022: Business Foreign 31 Dec 1. Jan. 22 combination Consumption Release exchange Additions 2022 k€ k€ k€ k€ k€ k€ k€ Other personnel expenses 36,012 419 23,105 3,374 (2,525) 41,272 48,699 Pensions 14,428 553 1,629 1,404 (12) 2,325 14,261 Other provisions 6,841 287 1,103 3,182 (63) 5,097 7,877 Total 57,281 1,259 25,837 7,960 (2,600) 48,694 70,837 The following table summarizes the development of total provisions recorded during 2021: Business Foreign 31 Dec 1. Jan. 21 combination Consumption Release exchange Additions 2021 k€ k€ k€ k€ k€ k€ k€ Other personnel expenses 37,005 — 33,018 3,644 636 35,033 36,012 Pensions 14,441 — 463 813 — 1,263 14,428 Other provisions 11,133 — 4,760 7,021 655 6,834 6,841 Total 62,579 — 38,241 11,478 1,291 43,130 57,281 The provision for personnel expenses mainly consists of bonus accruals (31 December 2022: k€ 26,704; 31 December 2021: k€ 22,396) and accrued vacation (31 December 2022: k€ 16,637; 31 December 2021: k€ 13,904). The provision for pensions relates mainly to pensions in France (see Note 31). The other provisions mainly consist of provisions to address the risk of a potential divergent interpretation of selected contracts by the tax authorities (31 December 2022: k€ 2,139; 31 December 2021: k€ 2,139). Additionally, earn-out provisions (31 December 2022: k€ 306; 31 December 2021: k€ 1,103) were recorded, audit fees (31 December 2022: k€ 2,111; 31 December 2021: k€ 878) and maintenance fees (31 December 2022: k€ 1,483; 31 December 2021: €k 1,598) were recorded. |
Contract liabilities
Contract liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Contract liabilities. | |
Contract liabilities | (19) Contract liabilities As of December 2022 and December 2021, contract liabilities mainly originate from the upfront payments relating to the customer contracts with BMS in the amount of k€ 235,652 (31 December 2021: k€ 94,988) of which k€ 42,506 (31 December 2021: k€ 62,568) is classified as current contract liabilities. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes | |
Income taxes | (20) Income taxes The financial year ending 31 December 2020 has been adjusted for the effects of the IFRIC agenda decision of April 2021 regarding the benefits to be considered depending on the length of service. The adjustment of the previous year’s values led to an overall decrease in deferred tax assets of k€ 558. See note 2 “Changes in accounting policies”. a) Amounts recognised in consolidated income statement Income tax benefit and expense for the years 2022, 2021 and 2020 comprise the following. 2022 2021 2020 k€ k€ k€ Current taxes: - Current tax expense (14,132) (12,309) (12,804) - Adjustment for prior years 156 (4,095) 739 Total current taxes (13,976) (16,404) (12,065) Deferred taxes: - Tax loss carry forwards (10,862) (5,140) (10,319) - Temporary differences 3,140 74 2,822 Total deferred taxes (7,722) (5,066) (7,497) Total income tax expense) (21,698) (21,470) (19,562) b) Reconciliation of effective tax rate The difference between the actual income tax expense and the result of the net income and the applicable Group tax rate in the reporting year and the previous year is made up as follows: 2022 2021 2020 k€ k€ k€ Income before taxes (153,956) 236,980 25,840 Expected German income tax rate 32.28 % 32.28 % 32.28 % Expected income tax benefit (expense) 49,697 (76,497) (8,341) Non-deductible expenses (59,543) (511) (2,533) Taxable income not recognized in income before tax — — (7,796) R&D tax credits 13,454 6,742 5,983 Tax free income 3,184 71,917 5,485 Permanent differences from GILTI (3,724) (444) (1,401) Tax effects from investments accounted for using the equity method (5,152) (9,300) (2,884) Deviation tax rates to expected tax rate 448 1,815 690 Change in tax rates 636 521 124 Change in recognition of deferred tax assets (19,167) (10,247) (9,317) Non-periodic taxes Current Taxes 156 (4,095) 739 Deferred Taxes (1,348) (570) 203 Other (339) (801) (514) Effective income tax income (expense) (21,698) (21,470) (19,562) Effective income tax rate (14.09 %) 9.06 % 75.70 % The group tax rate includes corporate income tax plus solidarity surcharge of 15.825% and trade tax, which ranges from 10.850% - 16.625% depending on the municipality. The initial public offering of Exscientia plc in the United States resulted in 2021 in a significant increase of the investment which impacts income and is tax free. Taxable income not recognised in income before tax in 2020 was generated from revealing hidden reserves from in-kind contributions of assets. Deferred income tax assets and liabilities calculated with the anticipated tax rates of each entity as of 31 December 2021 and 2020 relate to the following: 01 Jan 2022 Recognized in 31 Dec 2022 Recognized other Foreign Deferred Deferred In comprehensive currency tax tax Net balance profit or loss Income translation Acquisition Net assets liabilities k€ k€ k€ k€ k€ k€ k€ Property, plant, and equipment (4,855) (5,140) — 508 30 (9,457) 1,563 (11,020) Intangible assets (22,348) 2,536 — (130) 296 (19,646) 965 (20,611) Right of use assets (21,979) (6,860) — — — (28,839) — (28,839) Financial assets (3,985) 2,539 — — — (1,446) 453 (1,899) Provisions and deferred income 3,965 5,640 (357) 2 — 9,250 12,759 (3,509) Lease obligations 19,927 5,351 — — — 25,278 25,278 — Other 4,949 (727) — 22 — 4,244 5,778 (1,534) Tax credits 1,034 (199) (633) * 71 — 273 273 — Loss carryforward 22,963 (10,862) — 45 — 12,146 12,146 — Total (329) (7,722) (990) 518 326 (8,197) 59,215 (67,412) Set off of tax — — — — — — (48,888) 48,888 Net (329) (7,722) (990) 518 326 (8,197) 10,327 (18,524) * Recorded in Equity without any impact on other comprehensive income 01 Jan 2021 Recognized in 31 Dec 2021 Recognized other Foreign Deferred Deferred in comprehensive currency tax tax Net balance profit or loss Income translation Net assets liabilities k€ k€ k€ k€ k€ k€ k€ Property, plant, and equipment (2,840) (1,969) — (46) (4,855) 1,528 (6,383) Intangible assets (25,314) 3,296 — (330) (22,348) 468 (22,816) Right of use assets (23,535) 1,556 — — (21,979) — (21,979) Financial assets (316) (3,669) — — (3,985) 401 (4,386) Provisions and deferred income 4,801 (768) 7 (75) 3,965 6,516 (2,551) Lease obligations 23,274 (3,347) — — 19,927 20,297 (370) Other (1,309) 6,245 — 13 4,949 5,254 (305) Tax credits 1,521 (1,270) 708 * 75 1,034 1,034 — Loss carryforward 27,711 (5,140) — 392 22,963 22,963 — Total 3,993 (5,066) 715 29 (329) 58,461 (58,790) Set off of tax — — — — — (41,102) 41,102 Net 3,993 (5,066) 715 29 (329) 17,359 (17,688) * c) Unrecognised deferred tax liabilities Concerning undistributed foreign subsidiaries earnings, temporary differences in the amount of k€ 20,576 were not recognized according to IAS 12.39 (31 December 2021: k€ 12,009) as Evotec controls the timing of such reversal and it is not planned to distribute the foreign subsidiaries earnings. d) Unrecognised deferred tax assets The Company’s deferred tax assets are recorded to the extent it is probable that such tax benefits would be realised in future years. As of 31 December 2021, no additional deferred tax assets on tax loss carryforwards exceeding the recognised deferred tax liabilities, were recognised for two German, one French, one United Kingdom entity, the United States entities as well as the Swiss, Austrian and Indian entity. In the following schedule, tax loss carryforwards, interest carryforwards and tax credits for which no deferred tax assets were recorded are shown. Tax loss carryforwards on different types of income taxes were aggregated into one total amount. 2022 2021 2020 k€ k€ k€ Tax loss carryforwards (not expiring) 474,989 307,682 272,796 Time-limited tax losses - expiring until 2027 (2021: 2026)(2020: 2025) 13,297 21,409 19,259 - expiring from 2028 to 2032 (2021: 2027-2031) (2020: 2026-2030) 45,696 38,207 45,409 - expiring after 2032 (2021: 2031)(2020: 2030) 57,662 73,811 43,945 Interest carryforward — — — Tax credits 1,313 1,286 1,119 Total 592,957 442,395 382,528 The table above does not include U.S. tax losses which are subject to s382 restrictions. In addition to unrecognized deferred tax assets from tax loss carryforwards, a net asset position for temporary differences amounting to k€ 11,354 (31 December 2021: k€ 6,346; 31 December 2020: k€ 2,707) was not recognised as there was no sufficient taxable income foreseen. |
Other current financial liabili
Other current financial liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other current financial liabilities | |
Other current financial liabilities | (21) Other current financial liabilities Other current financial liabilities of k€ 7,087 relate to the negative fair value of forward exchange contracts (December 31, 2021: k€ 8,565 derivatives and k€ 3,550 other liabilities). |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock-based compensation | |
Stock-based compensation | (22) Stock-based compensation a) Share Performance Awards In order to continue to incentivise executives in the form of variable compensation components with long-term incentives, in June 2022, June 2020 and June 2017, the Annual General Meeting approved the respective conditional capital required for the so-called Restricted Share Plan 2020 (“RSP 2020”) as well as the so-called Share Performance Plan 2022 (“SPP 2022”) and Share Performance Plan 2017 (“SPP 2017”). Under these plans, Restricted Share Awards (“RSA”) for up to 1,200,000 shares (RSP 2020) and Share Performance Awards (“SPA”) for up to 6,000,000 shares (SPP 2022) and 6,000,000 shares (SPP 2017) of Evotec SE ordinary bearer shares without par value (no-par value shares) may be issued to members of the Management Board and other executives upon maturity. Each RSA grants one subscription right to Evotec SE shares, while each SPA grants up to two subscription rights to Evotec SE shares, each of which in turn entitles the holder to subscribe for one Evotec SE share. SPAs from SPP 2022 and SPP 2017 will be automatically exercised within ten RSAs under RSP 2020 may only be exercised if and to the extent that the performance target is achieved within each of the four consecutive calendar years. This performance target relates to the Company’s adjusted EBITDA. The performance target for each individual tranche of RSAs is set by the Supervisory Board annually at the time of issue. The Restricted Share Plan 2020 is subject to some restrictions with regard to issuance periods and allocation of awards to members of the Executive Board or selected executives. The RSP 2020 is no longer part of the new 2022 compensation system for the Executive Board and no more restricted share awards have been issued for the Executive Board since its effective date on June 22, 2022. The grant value of the Restricted Share Plan 2020 for the Executive Board has been reallocated to the short-term and long-term (“Share Performance Plan 2022”) compensation components. SPAs from SPP 2022 and SPP 2017 can only be exercised if and to the extent that two defined equally weighted performance targets (“Key Performance Indicators”) are achieved within each of the four consecutive calendar years. These performance indicators consist of Evotec’s share price (relevant here is the XETRA price) and the relative total shareholder return, which is derived by comparison with the return of the TecDax index. The performance targets for each individual tranche of the SPAs are set by the Supervisory Board annually at the time of issue. The Share Performance Plan 2022 and the Share Performance Plan 2017 are subject to certain restrictions with regard to issuance periods and allocation of awards to members of the Executive Board or selected executives. A summary of the status of the Share Performance Plans as of 31 December 2022 and 2021 and the changes during the year then ended is presented as follows: 31 December 2022 2022 2021 2021 2020 2020 Share Weighted Share Weighted Share Weighted Performance Average Performance Average Performance Average Awards Exercise Awards Exercise Awards Exercise (SPAs) price (SPAs) price (SPAs) price € per share € per share € per share Outstanding at beginning of the year 1,325,450 1.00 1,570,113 1.00 2,149,562 1.00 SPAs granted 468,706 1.00 608,710 1.00 325,612 1.00 SPAs exercised (209,043) 1.00 (701,278) 1.00 (865,687) 1.00 SPAs forfeited (80,475) 1.00 (152,095) 1.00 (39,374) 1.00 Outstanding at end of the year 1,504,638 1.00 1,325,450 1.00 1,570,113 1.00 Thereof exercisable — 1.00 — 1.00 432,450 1.00 Evotec’s average weighted share price at the exercise day of SPAs in financial year 2022 was € 34.27 (31 December 2021: € 37.97; 31 December 2020: € 24.26). In the financial year 2022, 139,229 Awards (31 December 2021: 160,048 Awards; 31 December 2020: 77,214 Awards) from the total granted 468,706 SPAs (31 December 2021: 608,710 SPA’s; 31 December 2020: 325,612 SPA’s) were given to the members of the Management Board. The SPAs exercised in 2022 correspond to 344,458 shares (31 December 2021: 1,195,954 shares; 31 December 2020: 1,501,254 shares). The fair value of the grant of Share Performance Awards was estimated on the date of grant using a Monte-Carlo-Simulation model with the following assumptions: 27 October 27 May 28 January 2022 2022 2022 Risk-free interest rate in % 2.03 0.57 (0.46) Volatility of Evotec share in % 51.00 45.00 37.00 Volatility of TecDAX index in % — — 17.00 Fluctuation in % 5.00 0.0 – 5.0 0.0 – 5.0 Exercise price in Euro 1.00 1.00 1.00 Share price at grant date in Euro 19.47 25.26 34.90 Market value of TecDAX index at grant date in Euro — — 3,411.87 Fair value according to IFRS 2 at grant date per SPA of the Management Board in Euro — 22.87 31.30 Fair value according to IFRS 2 at grant date per SPA of executives in Euro 18.57 24.29 33.66 22 October 28 May 1 February 2021 2021 2021 Risk-free interest rate in % (0.43) (0.57) (0.78) Volatility of Evotec share in % 35.00 40.00 42.00 Volatility of TecDAX index in % — — 29.00 Fluctuation in % 5.00 0.0 – 5.0 0.0 – 5.0 Exercise price in Euro 1.00 1.00 1.00 Share price at grant date in Euro 44.98 35.49 32.25 Market value of TecDAX index at grant date in Euro — — 3,375.67 Fair value according to IFRS 2 at grant date per SPA of the Management Board in Euro — 33.50 31.34 Fair value according to IFRS 2 at grant date per SPA of executives in Euro 43.96 34.47 36.65 29 October 15 January 2020 2020 Risk-free interest rate in % (0.85) (0.55) Volatility of Evotec share in % 40.0 37.0 Volatility of TecDAX index in % — 18.0 Fluctuation in % 5.00 0.0 – 5.0 Exercise price in Euro 1.00 1.00 Share price at grant date in Euro 22.92 23.39 Market value of TecDAX index at grant date in Euro — 3,099.05 Fair value according to IFRS 2 at grant date per SPA of the Management Board in Euro — 22.69 Fair value according to IFRS 2 at grant date per SPA of executives in Euro 21.89 25.28 The performance measurement period for all grants started on 01 January of the corresponding year. The expected dividend yield is zero. The expected life is 4 years for the vesting periods starting in January, and 5 years for the vesting periods starting in May and October. The base for the expected volatility is the historic volatilities of the year before the grant date. b) Share option plans In the beginning of 2020, there remained a few stock options from the past. A summary of the status of the stock option plans as of 31 December 2020 and the changes during the year then ended is presented as follows: 2020 Weighted 2020 average Options exercise price € per share Outstanding at beginning of the year 32,594 2.79 Options exercised (32,594) 2.79 Options expired — — Options forfeited — — Outstanding at end of the year — — Thereof exercisable — — As of 31 December 2020, no more stock options were outstanding. Evotec’s average share price at the exercise day of share options amounted to € 25.17 in the financial year 2020. The Company recognized current service costs for all Share Performance Awards and Restricted Share Awards totaling to k€ 9,919 in 2022, to k€ 7,805 in 2021 and to k€ 5,285 in 2020, which were recognized as operating expenses in the consolidated income statement. Thereof, k€ 2,791 are related to Share Performance Awards of the Management Board in 2022 (31 December 2021: k€2,002; 31 December 2020: k€ 1,902). In 2022, 2021 and 2020, no current service costs related to stock options were recognized. The expenses relating to accelerated vesting as well as the adjustment of current service costs due to changes in assumptions in the financial year 2022 are included in the amount above. |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' equity | |
Stockholders' equity | (23) Stockholders’ equity The share capital is made up of: 2022 2021 2020 Shares in Shares in Shares in thousands thousands thousands Issued as of 01 January 176,608 163,915 150,903 Capital increase (cash contribution) — 11,497 11,478 Exercise of share purchase rights 345 1,196 1,534 Issued as of 31 December 176,953 176,608 163,915 As of 31 December 2022, 176,952,653 shares of Evotec SE with a nominal values of € 1.00 per share have been issued and are outstanding Evotec SE’s conditional capital as at 31 December 2022 consists of 12,773,576 shares available for the Share Performance Plans and the Stock Option Plans and 29,959,289 shares available for the issuance of non-par value bearer shares to holders or creditors of convertible bonds and/or bonds with warrants, profit participation rights, and/or income bonds or a combination of these instruments. Evotec SE may grant these on the basis of the resolution of the General Meeting held on 22 June 2022. The remaining conditional capital of Evotec as of 31 December 2022 thus amounts to 42,732,865 shares. Pursuant to Section 5 of the Company’s Articles of Association, the Management Board is authorised, with the approval of the Supervisory Board, to increase the Company’s share capital by up to € 35,321,639 by issuing new shares against cash or non-cash contributions on one or more occasions until 21 June 2025. All shares to be issued on this basis shall be subject to the statutory subscription rights of Evotec shareholders. However, the Management Board may, with the approval of the Supervisory Board, exclude the shareholders’ subscription rights for a portion of the shares on one or more occasions under certain well-defined conditions. As of 31 December 2022, Evotec holds 249,915 shares (31 December 2021: 249,915), representing 0.1% (31 December 2021: 0.1%) of Evotec’s total share capital. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenues | |
Revenues | (24) Revenues The following schedule analyses the revenues Evotec recognized in the financial year 2022: in k€ EVT Execute EVT Innovate Evotec Group Revenues Service fees and FTE-based research payments 498,719 185,268 683,987 Material recharges 38,668 5,768 44,436 Compound access fees 1,464 1,109 2,573 Milestone fees 6,054 12,012 18,066 Licenses 1,813 573 2,386 Total 546,718 204,730 751,448 Timing of revenue recognition At a point in time 44,722 17,780 62,502 Over a period of time 501,996 186,950 688,946 Total 546,718 204,730 751,448 Revenues by region United States 283,755 134,550 418,305 Germany 32,765 26,130 58,895 France 22,546 9,728 32,274 United Kingdom 105,557 9,699 115,256 Rest of the world 102,095 24,623 126,718 Total 546,718 204,730 751,448 The following schedule shows the revenue in the financial year 2021: in k€ EVT Execute EVT Innovate Evotec Group Revenues Service fees and FTE-based research payments 431,184 99,570 530,754 Material recharges 34,104 1,887 35,991 Compound access fees 1,532 43 1,575 Milestone fees 4,232 45,237 49,469 Licenses — 245 245 Total 471,052 146,982 618,034 Timing of revenue recognition At a point in time 38,336 47,124 85,460 Over a period 432,716 99,858 532,574 Total 471,052 146,982 618,034 Revenues by region United States 236,009 101,593 337,602 Germany 24,279 22,573 46,852 France 16,876 13,715 30,591 United Kingdom 98,735 5,905 104,640 Rest of the world 95,153 3,196 98,349 Total 471,052 146,982 618,034 The following schedule shows the revenue in the financial year 2020: in k€ EVT Execute EVT Innovate Evotec Group Revenues Service fees and FTE-based research payments 366,946 93,648 460,594 Material recharges 20,728 1,107 21,835 Compound access fees 1,361 — 1,361 Milestone fees 5,059 12,033 17,092 Licenses — 42 42 Total 394,094 106,830 500,924 Timing of revenue recognition At a certain time 25,787 13,140 38,927 Over a period 368,307 93,690 461,997 Total 394,094 106,830 500,924 Revenues by region United States 189,488 58,360 247,848 Germany 19,529 24,792 44,321 France 21,499 15,561 37,060 United Kingdom 89,258 4,729 93,987 Rest of the world 74,320 3,388 77,708 Total 394,094 106,830 500,924 The revenues are allocated to regions according to the head office of the external customers. The transaction price allocated to the remaining performance obligation (unsatisfied or partially unsatisfied) are as follows: 31 Dec 31 Dec 31 Dec 2022 2021 2020 k€ k€ k€ Within one year 405,710 225,061 377,216 After one year 158,068 67,619 69,328 In the year under review no material revenues were recognized for which the performance obligation was fully or partially fulfilled in prior periods. In the financial year 2022 and 2021, BMS, Evotec’s largest customer, contributed more than 10% of the Group revenues in the EVT Execute and EVT Innovate segments with k€ 138,737 (2021: k€ 98,616, 2020: k€ 62,561). Included in the revenues for EVT Execute are revenues from contribution in the year 2022 in the amount of k€ 10,551 (2021: k€ 8,565, 2020: k€ 4,648). |
Research and Development
Research and Development | 12 Months Ended |
Dec. 31, 2022 | |
Research and Development | |
Research and Development | (25) Research and Development In 2022, research expenses mainly related to Innovate proprietary R&D projects of k€ 62,100 (31 December 2021: k€ 64,064; 31 December 2020: k€ 55,992) and research activities of Execute reporting segment of k€ 2,345 (31 December 2021: k€ 2,528; 31 December 2020: k€ 3,636). The overheads consist mainly of patent costs and personnel overheads, amounting to k€ 12,198 (31 December 2021: k€ 8,136; 31 December 2020: k€ 9,341). The increase in R&D costs compared to the 2021 and 2020 financial year is mainly due to platform R&D initiatives. Research and Development costs include amortisation of intangible assets and depreciation of property, plant, and equipment of k€ 471 (31 December 2021: k€ 1,042; 31 December 2020: k€ 789). |
Selling, general and administra
Selling, general and administrative expenses | 12 Months Ended |
Dec. 31, 2022 | |
Selling, general and administrative expenses | |
Selling, general and administrative expenses | (26) Selling, general and administrative expenses Included in selling, general and administrative expenses in 2022 are expenses for sales and marketing in the amount of k€ 13,491 (2021: k€ 9,422, 2020: k€ 9,503). Other administrative expenses in 2022 amount to k€ 142,699 (2021: k€ 96,023, 2020: k€ 67,356). The increase in administrative costs from 2021 (and 2020) to 2022 is due to higher expenses for the implementation of SOX regulations, increased personnel cost as a result of company growth, and the introduction of a new ERP which includes associated consulting services. Included in selling, general and administrative expenses are amortisation for intangible assets and depreciation for property, plant and equipment of k€ 38,025 (2021: k€ 24,957, 2020: k€ 19,840). |
Other operating income
Other operating income | 12 Months Ended |
Dec. 31, 2022 | |
Other operating income. | |
Other operating income | (27) Other operating income In 2022 and 2021, and 2020, other operating income mainly relates to refunds from Sanofi relating to the development of portfolios in Lyon and Toulouse (2020 only) amounting to k€ 34,174 (2021: k€ 35,762, 2020: k€ 43,398). Further included are refunds from French CIR (crédit d’impôt recherche) of k€ 25,068 (2021: k€ 22,691, 2020: k€ 19,308) and Italy of k€ 7,342 (2021: k€ 2,784, 2020: k€ 124) as well as similar refunds in United Kingdom from the “R&D Expenditure Credit”(RDEC) in the amount of k€ 7,250 (2021: k€ 6,502, 2020: k€ 4,337). Additionally, 2022 was the first year Evotec received R&D tax refunds from the German government of k€ 3,280 (2021: k€ 0, 2020: k€ 0). These tax refunds from tax development programmes are akin to a government grant and as a result shown as other operating income. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments | |
Financial instruments | (28) Financial instruments -Financial risk management Evotec is exposed to the following risks arising from financial instruments: – currency risks – interest rate risks – liquidity risks (see Note 29) – capital management risk (see Note 29) – credit risks (see Note 29) – market risks (see Note 29) The Management Board has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Management Board has installed a Group Risk Manager. The Group Risk Manager is responsible for developing and monitoring the overall risk exposure of the Group and to ensure compliance within the Group’s risk management policies. The Group Risk Manager reports regularly to the Management Board on its activities. The Audit Committee of the Supervisory Board oversees how management monitors compliance with the Company’s risk management policies and procedures. Currency risks The Company is exposed to currency risks, if Evotec companies enter into revenues, purchases and borrowings that are denominated in a currency other than the functional currency of the respective Evotec company. The functional currencies of all Evotec companies consist mainly of Euro, U.S. Dollar, and Pound Sterling. The Evotec companies are particularly exposed to currency fluctuations between U.S. Dollar, Pound Sterling, and the Euro in the course of their ordinary business activities. The following table shows the average currency rates as well as the currency rates on 31 December 2022 and 2021 each against the Euro: Average rate 2022 2021 31 December 01 January - 01 January - 31 December 31 December 2022 2021 € € € € USD 0.9496 0.8455 0.9376 0.8829 GBP 1.1727 1.1633 1.1275 1.1901 A strengthening (weakening) of the Euro, the United States Dollar, and the British Pound among themselves and against other currencies, as shown below as of 31 December, would lead to an increase (reduction) in equity and earnings with the amounts mentioned below. This analysis relates to financial instruments held for sale on condition that all other variables remain constant and ignore the impact of purchases and sales. Variance 2022 Variance 2021 Variance 2020 Profit and Profit and Profit and Equity Loss Equity Loss Equity Loss k€ k€ k€ k€ k€ k€ USD (10% strengthening) 31,007 31,007 42,053 42,053 11,321 11,321 USD (10% weakening) (31,007) (31,007) (42,053) (42,053) (11,321) (11,321) GBP (10% strengthening) 3,967 3,967 6,643 6,643 5,702 5,702 GBP (10% weakening) (3,967) (3,967) (6,643) (6,643) (5,702) (5,702) EUR (10% strengthening) 34,974 34,974 48,699 48,699 17,032 17,032 EUR (10% weakening) (34,974) (34,974) (48,699) (48,699) (17,032) (17,032) The Company manages the foreign exchange exposure via natural hedges and selective hedging instruments such as forward currency contracts. The hedging instruments used do not expose the Company to any material additional risk. The objective of these transactions is to reduce the risk of exchange rate fluctuations of the Company’s foreign currency denominated cash flows. Evotec does not enter derivative transactions for trading or speculative purposes. Foreign currency contracts are carried at fair value. Gains and losses from the fair value accounting related to foreign currency derivatives are included in non-operating income and expense and amounted to a net gain of k€ 9,424 in the financial year 2021 (2021: net loss k€ 12,410 2020: net loss of k€ 20). This net gain results mainly from the USD devaluation in autumn 2022. Derived regularly from the summarised quantitative data about the Company’s currency risks, based on the report to the Management Board, the expected future USD cash flows which should be hedged with USD/GBP forward contracts and USD/EUR forward contracts are determined. As of 31 December 2022, cash flows of kUSD 394,039 (31 December 2021: kUSD 344,830, 31 December 2020: kUSD 70,500), thereof kUSD 349,639 against Euro (31 December 2021: kUSD 300,430, 31 December 2020: kUSD 45,000), and kUSD 44,400 (31 December 2021: kUSD 44,400, 31 December 2020: kUSD 25,500) and cash outflows of k€ 8,400 against GBP were hedged. The fair value of cash and cash equivalents, investments, trade accounts receivable and trade accounts payable approximate their carrying values in the consolidated financial statements due to their short-term nature. Financial assets are accounted for at the settlement date. Interest rate risks Due to securities and other cash investments as well as loans, the Company is exposed to interest rate risks in Germany, United Kingdom, and United States. Financial instruments with fixed interest rates are not subject to interest rate risk and therefore are not included in the sensitivity analysis. Financial instruments with variable market interest rates as of 31 December 2022 and 2021 are included in the sensitivity analysis for the period of their existence. If the interest rate had been 100 basis points higher (lower) on 31 December 2022, the effect on income before taxes would have been k€ 3,014 (+1% point) higher and k€ 1,714 (-1% point) lower (31 December 2021: net income k€ 2,570 and k€ 827 higher (lower) respectively, 31 December 2020: net income k€ 415 higher ( lower The fair value of debt varies from the carrying amount if there is a difference between the underlying interest rate to the market interest rate. The fair value is then determined using an appropriate market interest rate. The fair values of the loans and current investments with variable market interest rates as of 31 December 2022 and 2021 would vary by the following amounts: 31 Dec 31 Dec 2022 2021 k€ k€ Variable interest rate +1% point 3,014 2,570 Variable interest rate (1)% point (1,714) (827) The Company is exposed to interest rate risk due to floating rate loans, which is considered immaterial. Evotec regularly uses interest rate swaps to economically hedge the interest rate risks from its borrowings. In June 2019, two interest rate swaps with a notional of k€ 48,250 were agreed to swap portions of the variable interest-bearing tranches of the promissory note against a fixed rate of 0.17% and 0.24%, respectively. In addition, two additional interest rate swaps with a notional of k€ 22,500 each were concluded in 2021 and redeemed in 2022; this resulted in a loss in 2022 of k€ 4,683. Other price risks The Company is not exposed to any price risks associated to their financial instruments. |
Risks
Risks | 12 Months Ended |
Dec. 31, 2022 | |
Risks | |
Risks | (29) Risks Liquidity risks Revenue fluctuations, external events and changes in the business environment might negatively impact Evotec’s short- to mid-term profitability and cash reserves. To actively address any related risk, Evotec’s management has defined minimum liquidity levels and prepared a scenario planning to safeguard its cash position. Evotec believes that existing liquidity reserves are sufficient to cope with the cumulative impact of all identified risks. Evotec currently has sufficient liquidity reserves, due to a public placement in the United States in 2021. However, the option of increasing capital is always considered. This additional financing might be required if new opportunities arise in terms of M&A or in-licensing. The Company does not intend to engage in projects unless adequate funding is allocated or secured. Evotec has successfully increased liquidity through market positioning and growth. Given the current business environment with economic and political uncertainties, Evotec assesses the associated liquidity risks still to be low (previous year: low). The general risk of losing a significant amount of cash in cash investments should continuously be mitigated by spreading the investments across several different banks in high-credit quality instruments in full compliance with the Company’s approved investment policy. Evotec monitors its banks and investments on an ongoing basis. Therefore, Evotec assesses the current default risks to be low, remaining unchanged in comparison to the previous year. Currency exchange movements also impact Evotec’s reported liquidity primarily through the translation of liquid assets held in U.S. Dollars or Pound Sterling into Euros. A portion of the funds is held in currencies other than Euro to meet local operating needs. This risk has increased due to extensive political uncertainty and a potentially strong market reaction in the forthcoming months, but was already subject to increasing volatility in previous years. The contractual maturities of financial liabilities, including estimated interest payments as of 31 December 2022 are included in the following tables: 31 Dec 2022 Carrying Contractual Due in Due in More than amount cash flow 1 year 2 - 5 years 5 years k€ k€ k€ k€ k€ Non-derivative financial liabilities Loans (329,851) (345,522) (7,266) (272,749) (65,507) Lease obligations (176,823) (186,894) (19,422) (78,152) (89,320) Contingent consideration (306) (372) (76) (291) (5) Trade accounts payable (97,277) (97,277) (97,277) — — Other financial liabilities (977) (977) (977) — — Total non-derivative financial liabilities (605,234) (631,042) (125,018) (351,192) (154,832) Derivative financial liabilities Interest rate swaps/FX forwards (7,358) (7,358) (6,965) (393) — Total derivative financial liabilities (7,358) (7,358) (6,965) (393) — 31 Dec 2021 Carrying Contractual Due in Due in More than amount cash flow 1 year 2 - 5 years 5 years k€ k€ k€ k€ k€ Non-derivative financial liabilities Loans (362,480) (382,867) (40,467) (253,391) (89,009) Lease obligations (150,437) (175,040) (17,343) (69,396) (88,301) Contingent consideration (1,103) (1,156) (1,156) — — Trade accounts payable (72,598) (72,598) (72,598) — — Other financial liabilities (4,017) (4,017) (4,017) — — Total non-derivative financial liabilities (590,635) (635,678) (135,581) (322,787) (177,310) Derivative financial liabilities Interest rate swaps/FX forwards (9,344) (9,344) (7,423) (1,660) (261) Total derivative financial liabilities (9,344) (9,344) (7,423) (1,660) (261) Capital management risk. Evotec actively manages its funds to primarily ensure liquidity and principal preservation while seeking to maximise returns. Evotec’s cash and short-term investments are located at several different banks. Financial investments are made in liquid, highly diversified investment instruments having at minimum a Standard & Poor’s rating (or equivalent) of at least BBB-. The following table shows the total assets, equity as well as equity ratio and net cash (cash and cash equivalents minus current and non-current loan liabilities and current and non-current finance lease obligations): 31 Dec 31 Dec 2022 2021 k€ k€ Total assets 2,257,247 2,235,161 Equity attributable to the shareholders of Evotec SE 1,187,184 1,377,685 Equity ratio (in )% 52.6 % 61.6 % Net cash (91,518) 186,409 Evotec remains well financed with an equity ratio relating to equity attributable to Evotec’s shareholders of 52.6 % as of 31 December 2022 (31 December 2021: 61.6%) and currently has no necessity to raise capital to maintain its operations in the near to mid-term. However, the option to increase capital must always be considered if new opportunities arise in terms of M&A or in-licensing which require additional financing. Furthermore, the acquisition of anchor investors can be of strategic importance for the company. No minimum capital requirements are stipulated in Evotec’s statutes. The Company has obligations to issue shares out of the conditional capital relating to the exercise of stock options based on miscellaneous stock option plans as well as Share Performance Awards on the basis of Share Performance Plans (see Note 21). Credit risks Credit risk is the risk of financial loss to the Company if a customer fails or partly fails to meet any of its contractual obligations and arises primarily from the receivables from customers, contract assets and investment securities. The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was: 31 Dec 31 Dec 2022 2021 k€ k€ United States 92,034 78,543 France 24,429 17,098 United Kingdom 20,451 12,391 Germany 7,767 6,283 Rest of Europe 13,622 10,363 Rest of the world 10,350 7,400 168,653 132,078 The maximum exposure to credit risk for contract assets on 31 December 2022 equals the net book value in the amount of k€ 30,516 (31 December 2021: k€ 18,614). The Company has exposure to credit risk primarily with respect to its trade accounts receivables. The Company performs ongoing credit evaluations of its customers’ financial condition and maintains an appropriate specific allowance for uncollectible accounts receivable based upon the expected collectability of all accounts receivable. The Company’s accounts receivables are generally unsecured and are not backed by collateral from its customers. As of 31 December 2022, one customer accounted for 22% of trade receivables (31 December 2021: 23%). Concentrations of credit risk with respect to trade accounts receivables are generally limited by several geographically diverse customers and the Company’s monitoring procedures. Market risks The market environment and competitive landscape for licensing and licensed projects or individual drug candidates, in general or for individual treatments might change while engaging in individual projects. Revenues generated under the collaboration agreements are allocated to either the EVT Execute or the EVT Innovate segment depending on the type of contract with Evotec’s customers, the intellectual property right and the project stage. This partnership model, which Evotec believes to be unique, allows the risks of drug discovery to be balanced and spread. Reconciliation of cash flows from financing activities to the changes in financial liabilities Lease Loan liabilities obligations Loan notes k€ k€ k€ As of 1 Jan 2022 362,480 150,437 3 Proceeds from issuance of loans — — — Repayment (34,067) (19,046) — Cashflow from financing activities (34,067) (19,046) — Disposal of finance lease obligation — (232) — Foreign currency translation — (1,120) — Changes in fair value — — — Interest increase 1,438 4,068 — Issue of finance lease obligation — 42,716 — As of 31 Dec 2022 329,851 176,823 3 Lease Loan liabilities obligations Loan notes k€ k€ k€ As of 1 Jan 2021 346,411 145,554 3 Proceeds from issuance of loans 30,791 — — Repayment (16,018) (19,770) — Cashflow from financing activities 14,773 (19,770) — Disposal of finance lease obligation — (58) — Foreign currency translation — 6,691 — Changes in fair value 160 — — Interest increase 1,136 3,728 — Issue of finance lease obligation — 14,292 — As of 31 Dec 2021 362,480 150,437 3 |
Fair values
Fair values | 12 Months Ended |
Dec. 31, 2022 | |
Fair values | |
Fair values | (30) Fair values Cash and cash equivalents, trade accounts receivable, contract assets, other current and non-current financial assets, current loan liabilities, current portion of lease obligations, long term lease obligations, trade accounts payable, current contract liabilities, non-current contract liabilities, and other current and non-current financial liabilities are classified as amortized cost and approximate their carrying amounts. Non- current loan liabilities are classified as amortized cost (31 December 2022: T€ 328,295 and 31 December 2021 T€ 326,344) for which the fair value was on 31 December 2022 T€ 306,574 and at 31 December 2021 T€ 336,412 based on level 3 in the fair value hierarchy. The fair values of financial assets and liabilities other than classified at amortized cost, together with the carrying amounts shown in the balance sheet, are as follows: 31 Dec 2022 31 Dec 2021 Classification Carrying Fair Carrying Fair in k€ according to IFRS 9 amount Value amount value Investments Fair value through other comprehensive income 311,899 311,899 158,908 158,908 Long-term investments Fair value through profit and loss 122,477 122,477 268,793 268,793 Assets from derivative financial instruments Fair value through profit and loss 8,215 8,215 0 0 Liabilities from derivative financial instruments Fair value through profit and loss (7,358) (7,358) (9,344) (9,344) Contingent consideration Fair value through profit and loss (306) (306) (1,103) (1,103) 434,927 434,927 417,254 417,254 Unrecognised (gain)/loss — — In determining the fair values on level 2 and 3 the following valuation techniques are used: Financial instruments measured at fair value. The fair value of derivative financial instruments is determined using market-related methods. The valuation model is based on quoted values of similar instruments, the characteristics of which are broadly in line with the instruments to be evaluated. The fair values for contingent consideration are determined using discounted cash flow models. The capital flows used are basically based on the contracts underlying the conditional consideration and the relevant project or business planning. The discount rate considers the risk structure underlying capital flows (usually weighted average cost of capital of the acquired entity). Additional non-observable input factors include, for example, marketing success probabilities. At the time of acquisition of investments, the fair value corresponds to the acquisition costs. Changes in fair value may occur due to scientific or financial plan discrepancies or new financing rounds. These deviations are determined by means of discounted cash flow valuation models . Financial instruments not measured at fair value. For cash and cash equivalents, trade accounts receivables, contract assets, trade accounts payable, contract liabilities, loan liabilities, lease obligations and other current financial assets and liabilities, fair value is determined without the use of significant unobservable inputs, respectively the net book values represent an appropriate approximation of the fair value. Assets and liabilities that are not measured at fair value but whose fair value is expressed. The present value for long-term credit liabilities was calculated using a simplified model using unobservable input factors (discount rate 3.06%) and thus corresponds to the level 3 investigation hierarchy. Hierarchy levels The following table allocates financial assets and financial liabilities to the three levels of the fair value hierarchy as defined in IFRS 13: 31 Dec 2022 in k€ Level 1 Level 2 Level 3 Total Assets at fair value through other comprehensive income 311,899 — — 311,899 Assets at fair value through profit and loss 70,133 8,215 52,344 130,692 Liabilities at fair value through other comprehensive income — — — — Liabilities at fair value through profit and loss — (7,358) (306) (7,664) 31 Dec 2021 in k€ Level 1 Level 2 Level 3 Total Assets at fair value through other comprehensive income 158,908 — — 158,908 Assets at fair value through profit and loss 244,866 — 23,927 268,793 Liabilities at fair value through other comprehensive income — — — — Liabilities at fair value through profit and loss — (9,344) (1,103) (10,447) The levels of the fair value hierarchy and its application to Evotec’s financial assets and financial liabilities are described below: Level 1: Level 2: Level 3: The following tables show the movement of fair values at level 3 for the financial years 2022 and 2021, respectively: Other Contingent in k€ Note investments consideration Balance at 1 Jan 2022 23,927 (1,103) Exchange rate differences — — Addition (11);(18) 25,846 (14) Additions due to discontinuation of the use of equity method — — Consumption — — Reclassification to Liabilities — — Net income/expense effected (11) 2,571 811 Balance on 31 Dec 2022 52,344 (306) Other Contingent in k€ Note investments consideration Balance at 1 Jan 2021 19,289 (6,381) Exchange rate differences — (268) Addition (11);(18) 6,647 — Additions due to discontinuation of the use of equity method — — Consumption — 445 Reclassification to Liabilities — 3,571 Net income/expense effected (11) (2,009) 1,530 Balance on 31 Dec 2021 23,927 (1,103) The effects recognised in the income statement above from the adjustment of the fair values at level 3 were included in the consolidated income statement “Other operating income” and “interest expense”. For the fair value of the level 3 hierarchy, possible alternative assumptions of significant unobservable inputs would have ceteris paribus the following effects as of 31 December 2022 and 2021: 2022 2021 Net result Net result in k€ Increase Decrease Increase Decrease Contingent consideration Discount rate (movement of 1.5 %-points) (7) 7 (11) 11 Commercialization success rate (movement of 10 %-points) — — 109 (109) Long-term investments Discount rate (movement of 1.5 %-points) (8,478) 12,539 (4,118) 6,279 In the financial years 2022 and 2021, no reclasses were made among the individual levels. |
Pension plan
Pension plan | 12 Months Ended |
Dec. 31, 2022 | |
Pension plan | |
Pension plan | (31) Pension plan Defined contribution pension plans Evotec operates a defined contribution Group Personal Pension Plan (GPPP) in the United Kingdom and makes contributions to employees’ own schemes. The pension charge for the year represents contributions payable by the Company to the fund (and to employees’ own pension schemes) and amounted to k€ 3,346 in 2022 (2021: k€ 4,519). Contributions amounting to k€ 379 (2021: k€ 152) were payable to the fund at the year-end 2022 and are included in provisions. The Company’s contribution rate is employee-specific and is determined by the level of an employee’s contribution and the relevant legislation. Further, Evotec operates defined contribution 401K plans in the United States with the contribution to these plans amounting to k€ 575 during 2022 (2021: k€ 646). Defined benefit pension plans Evotec operates a defined benefit pension plan for employees in France. The calculation of the provision for this pension obligation is based on the projected unit credit method according to IAS 19. In 2022 and 2021, the obligation is based on the following assumptions: 31 Dec 31 Dec 2022 2021 Actuarial interest rate 3.35 % 0.80 % Salary increases 3.00 % 1.90 % Employee turnover 0% - 2.51 % 0% - 1.10 % Retirement age 62 years 62 years Duration 8.7 years 9.2 years For the measurement of the mortality rate, the mortality tables of France according to l’INSEE 2016-2018 were used. The mortality rate is not subject to material sensitivity as the payment is processed at the beginning of the retirement. The sensitivity of the actuarial interest rate and the resulting change of the relating pension provision is shown in the following table. This change would be recognized as actuarial gain or loss in other comprehensive income in equity. For the other assumptions, no material change is expected, as they are based on historical values, which will not change much over a year. 31 Dec 31 Dec in k€ 2022 2021 Actuarial interest rate +0.50 %-points (550) (626) Actuarial interest rate -0.50 %-points 592 676 In Germany, Evotec maintains defined benefit pension plans for a former member of the Management Board of Evotec SE and for the newly acquired Evotec DS. The pension provisions are calculated using the projected unit credit method in accordance with IAS 19. Actuarial reports have been prepared for both companies. For Evotec SE, the calculations are based on assumed pension increases of 2.00% (2021: 1.50%) and a discount rate of 3.51% (2021: 1.06%). For Evotec DS, the projected annual pension increase is 2.00 % and the underlying actuarial interest rate is 3.70 %. The discount rates reflect market conditions. The provisions for both companies amounted to T€ 722 as of 31 December 2022 (31 December 2021: T€ 189 only Evotec SE).The pension provisions developed as follows: 31 Dec 31 Dec in k€ 2022 2021 Pension provision at beginning of the year 14,428 14,441 Addition at acquisition date 553 — Benefit payments from the employer (692) (468) Included in other comprehensive income: Actuarial gains/losses from: Changes in financial assumptions (1,899) (551) Experience adjustments 469 (116) Impact of changes in demographic assumptions 10 3 Included in net income: Current service costs 1,282 1,021 Interest cost 110 98 Pension provision at year-end 14,261 14,428 The pension provisions are mainly unfunded and relate to French Group companies in the amount of k€ 13,539. The expected payments of undiscounted benefits for the financial year 2023 amount to k€ 1,751. Expenses for the statutory retirement obligations are explained in Note (34). |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and contingencies | |
Commitments and contingencies | (32) Commitments and contingencies (a) Lease obligations The future minimum lease payments under non-cancellable lease agreements but not yet commenced, are as follows: 31 Dec 31 Dec 2022 2021 k€ k€ Less than one year 1,561 801 Between one and five years 16,373 10,595 More than five years 44,979 46,474 Total 62,913 57,870 In addition, the Company maintains leases which were not recognised in accordance with the exemptions in IFRS 16. These amounts are not material and therefore not presented here. (b) Other commitments and contingencies The future minimum payments associated with miscellaneous long-term commitments total approximately k€ 22,111 and k€ 9,459 on 31 December 2022 and 2021, respectively. The significant portion thereof related to long-term commitments in connection with facility expenses. As of 31 December 2022, the Company has entered into purchase commitments in the amount of k€ 152,289 (31 December 2021: k€ 66,154). The Company has licensed or acquired certain third-party intellectual property for use in its business. Under these agreements, the Company is required to pay milestones, dependent on development progress and/or royalties and milestones dependent on present and future net income or on sublicensing fees received from third parties. The Company also agreed with several third parties on acquiring access to their technology and know-how for use in Evotec’s business activities or within collaborations. Under those agreements, the Company could be required to pay a share of the revenue relating to those technologies and know-how to the respective third parties. The Company is not aware of any material actual or threatened litigation as of 31 December 2022. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions | |
Related party transactions | (33) Related party transactions Related persons and entities within the meaning of IAS 24 represent for the Group shareholders who (jointly) have a dominant or significant influence, as well as subsidiaries, associates and joint ventures, key management personnel as well as members of the Supervisory Board. Evotec has not entered into any material transactions with any key management personnel or member of the Supervisory Board. The remuneration paid to key personnel is presented in note 34 b) “Management Board”; the remuneration paid to the members of the Supervisory Board is shown in note 34 c) “Supervisory Board”. In addition to the business relationships with the subsidiaries eliminated in the consolidated financial statements by means of full consolidation, mainly business transactions with associated companies and joint ventures exist. The terms and conditions of all transactions were made on terms and conditions that prevail in an arm´s length transaction. The balances from the transactions with related parties are unsecured and are fulfilled by payment or service. In the period under review, the Group has recorded expenses for allowances on outstanding balances in the amount of k€ 1,477 (2021: k€ 8,969). Revenues from Cost of Contracts/ revenue/ Trade accounts Other financial Interest income Interest expense receivables assets Other liabilities 1. Jan-31. Dec 2022 1. Jan-31. Dec 2022 31. Dec 2022 31. Dec 2022 31. Dec 2022 Transactions with k EUR k EUR k EUR k EUR k EUR associated companies and joint ventures 36,677 — 3,146 925 — other related party companies — — — — — Revenues from Cost of Contracts/ revenue/ Trade Interest income Interest expense accounts Other financial 1. Jan- 1. Jan- Receivables assets Other liabilities 31. Dec 2021 31. Dec 2021 31. Dec 2021 31. Dec 2021 31. Dec 2021 Transactions with k EUR k EUR k EUR k EUR k EUR associated companies and joint ventures 28,868 146 2,643 153 — other related party companies — — — — — Revenues from Cost of Contracts/ revenue/ Trade Interest income Interest expense accounts Other financial 1. Jan- 1. Jan- receivables assets Other liabilities 31. Dec 2020 31. Dec 2020 31. Dec 2020 31. Dec 2020 31. Dec 2020 Transactions with k EUR k EUR k EUR k EUR k EUR associated companies and joint ventures 35,450 497 2,984 6,435 5,635 other related party companies 32,961 — 6,492 — — Other liabilities to associates result from capital transactions. |
Personnel expenses and cost of
Personnel expenses and cost of material | 12 Months Ended |
Dec. 31, 2022 | |
Personnel expenses and cost of material | |
Personnel expenses and cost of material | (34) Personnel expenses and cost of material The personnel expenses of the Company in 2022 amounted to k€ 388,050 of which k€ 284,452 relate to personnel expenses outside Germany, in the United Kingdom, Italy, Switzerland, France and United States (2021: k€ 319,353 and k€ 240,947 respectively, 2020: k€ 250,082 and k€ 187,677, respectively). Thereof expenses for the statutory retirement insurance amounted to k€ 15,106 of which k€ 9,066 relate to expenses outside Germany in the United Kingdom, Italy, Switzerland, France, and United States (2021: k€ 12,407 and k€7,566 respectively, 2020: k€ 10,065 and k€ 6,292 respectively.) Cost of materials in 2022 amounted to k€ 120,568 thereof k€ 90,901 were cost of materials outside Germany in the United Kingdom, Italy, Switzerland, France, and United States (2021: k€ 107,837 and k€ 83,275 respectively, 2020: k€ 92,827 and k€ 73,064, respectively.) |
Other disclosures
Other disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Other disclosures | |
Other disclosures | (35) Other disclosures (a) Consolidated subsidiaries and equity investees Information below shows Evotec’s direct and indirect voting rights in their subsidiaries and other investments. Evotec’s direct and indirect voting rights in dormant companies are not included. 2022 Company’s voting rights % Subsidiaries Aptuit Global LLC, Princeton, United States 100.00 Aptuit (Verona) SRL, Verona, Italy 100.00 Aptuit (Oxford) Ltd., Abingdon, United Kingdom 100.00 Aptuit (Potters Bar) Ltd., Abingdon, United Kingdom 100.00 Cyprotex Discovery Ltd., Manchester, United Kingdom 100.00 Cyprotex Ltd., Manchester, United Kingdom 100.00 Cyprotex US, LLC., Framingham, United States 100.00 Evotec (France) SAS, Toulouse, France 100.00 Evotec ID (Lyon) SAS, Marcy l’Étoile, France 100.00 Evotec (Hamburg) GmbH, Hamburg, Germany 100.00 Evotec GT GmbH, Orth an der Donau, Austria 100.00 Evotec (India) Private Limited, Thane, India* 100.00 Evotec International GmbH, Hamburg, Germany 100.00 Evotec (München) GmbH, Martinsried, Germany 100.00 Evotec (UK) Ltd., Abingdon, United Kingdom 100.00 Evotec (US), Inc., Princeton, United States 100.00 Just-Evotec Biologics, Inc., Seattle, United States 100.00 Just-Evotec Biologics EU SAS, Toulouse, France 100.00 Evotec Drug Substance (Germany), Halle, Germany 100.00 Evotec (Modena) Srl., Medolla, Italy 100.00 2022 Company’s voting rights % Associates and joint ventures Ananke Therapeutics Inc., Boston, United States 20.09 Autobahn Labs, Palo Alto, United States 35.94 Breakpoint Therapeutics GmbH, Hamburg, Germany 34.12 Celmatix Inc., New York, United States 39.09 Curexsys GmbH, Göttingen, Germany 43.44 Dark Blue Therapeutics Ltd., Oxford, United Kingdom 39.11 Eternygen GmbH, Berlin, Germany 24.97 NephThera GmbH, Hamburg, Germany 50.00 Pancella Inc, Toronto, Canada 12.65 Quantro Therapeutics GmbH, Wien, Austria 38.79 Topas Therapeutics GmbH, Hamburg, Germany 22.14 Tucana Biosciences Inc., Boston, United States 26.92 Other Investments Aeovian Pharmaceuticals Inc., San Francisco, United States 3.79 ArgoBio SAS, Paris, France 10.02 Aurobac Therapeutics SAS, Lyon, France 12.50 Blacksmith Medicines Inc., San Diego, United States 18.00 Cajal Neuroscience Inc., Seattle, United States 1.67 Carma Fund I, Munich, Germany 10.00 Carrick Therapeutics Ltd., Dublin, Ireland 3.48 Centauri Therapeutics Ltd., Sandwich (Kent), United Kingdom 13.17 Curie Bio LLC, Boston, United States 0.11 Curie Bio Seed Fund I L.P., Boston, United States 2.82 Exscientia plc (formely Exscientia Ltd.), Oxford, United Kingdom 11.42 Extend Srl, Rome, Italy 10.00 Fibrocor LLP, Toronto, Canada 16.26 Fibrocor Therapeutics Inc., Toronto, Canada 8.98 IMIDomics Inc., San Francisco, United States 11.77 Immunitas, Therapeutics, Inc., Waltham, United States 6.17 Leon Nanodrugs GmbH, München, Germany 13.24 Mission BioCapital V LP, Cambridge, United States 3.64 OxVax Ltd., Oxford, United Kingdom 12.22 Sernova Corp., Ontario, Canada 5.16 Tubulis GmbH, Munich, Germany 6.90 * in voluntary liquidation The subsidiaries listed in this table are included in the consolidated financial statements. In the second half of the year, Evotec completed the acquisition of Rigenerand Srl. The Medolla, Italy-based cell technology company, a leader in the field of cGMP manufacturing of cell therapies, now operates as Evotec (Modena) Srl. Also in the second half of the year, Evotec SE completed the acquisition of Central Glass Germany. Operating as Evotec Drug Substance (Germany) GmbH, the acquisition strengthens Evotec’s clinical and commercial drug manufacturing capabilities, particularly for rare diseases and precision therapeutics. Associates and joint ventures are accounted for using the equity method. Through the Pancella Inc. shareholders’ agreement, Evotec participates in all significant financial and operational decisions. The Group has therefore determined that it has significant influence over this company, even though it holds less than 20% of the voting rights. The Group’s investments in subisidiaries, associates, and joint ventures are not hedged as these currency positions are considered to be long term. (b) Management Board The Management Board of Evotec consists of the following members: Dr. Werner Lanthaler, Business Executive, (CEO, Chairman of the Board), Dr. Cord Dohrmann, Biologist, (CSO, Head of Research), Dr. Craig Johnstone, Chemist, (COO), Enno Spillner, Business Executive, (CFO, left 31 March 2023), Laetitia Rouxel, Business Executive, (CFO, started 1 April 2023) and Dr Matthias Evers, Neurobiologist, (CBO, started 1 May 2022). The fixed salary component consists of a fixed basic remuneration and fringe benefits such as pension allowances, travel allowances, contributions to certain insurance policies as well as the non-cash benefit for the private use of a company car or an allowance for a private vehicle. The variable remuneration component is based on a bonus program. The bonus is determined on the basis of the achievement of certain targets set by the Remuneration and Nomination Committee of the Supervisory Board and subsequently approved by the Supervisory Board for each financial year. Furthermore, the Executive Board receives Share Performance Awards as a component with a long-term incentive effect. With the new remuneration system coming into effect in 2022, the Restricted Share Plan 2020 is no longer part of the multi-year remuneration component. The variable remuneration for the 2022 financial year is based on the achievement of nine company-related goals (strategic goals). For the 2022 financial year, 50% of these company-related targets relate to defined strategic and ESG company targets and 50% to defined financial company targets.The payment of the variable remuneration in 2022 for the financial year 2021 was based on the achievement of eight company-related targets (strategic targets). In the 2021 financial year, 40% of these company-related targets related to defined corporate targets and 60% to defined corporate financial targets. In addition to their fixed and variable remuneration, the members of the Executive Board also receive long-term multi-year remuneration in the form of participation in the company’s various multi-year remuneration programs. These are two different share-based programs, the payment of which is subject to a vesting period of four years. With the entry into force of the new remuneration scheme in 2022, the aforementioned link to corporate success and sustainable corporate growth has been continued, however, the Restricted Share Plan 2020 is no longer part of the multi-year remuneration component. These Share Performance Awards vest four years after issuance according to the degree of achievement of defined key performance indicators measured over this period (31 December 2021: four years). Further information on the SPA can be found in Note (22). The remuneration granted to the members of the Management Board for the financial years 2022 and 2021 are shown below: 2022 2022 2022 2022 2022 Fixed Variable Share Performance Fair value of remuneration remuneration and Restricted SPAs and Total (short-term) (short-term) Share Awards RSAs granted remuneration k€ k€ in pcs k€ k€ Dr. Werner Lanthaler 741 578 27,040 1,200 2,519 Dr. Cord Dohrmann 469 335 13,520 600 1,404 Dr. Craig Johnstone 442 270 48,500 1,400 2,112 Enno Spillner 387 216 10,816 480 1,083 Dr. Matthias Evers 304 180 39,353 900 1,384 Total 2,343 1,579 139,229 4,580 8,502 2021 2021 2021 2021 2021 Fixed Variable Share Performance Fair value of remuneration remuneration and Restricted SPAs and Total (short-term) (short-term) Share Awards RSAs granted remuneration k€ k€ in pcs k€ k€ Dr. Werner Lanthaler 711 590 100,769 3,313 4,614 Dr. Cord Dohrmann 451 275 40,956 1,348 2,074 Dr. Craig Johnstone 382 234 9,439 296 912 Enno Spillner 384 220 8,884 278 882 Total 1,928 1,319 160,048 5,235 8,482 The individual contracts of the Executive Board members contain a customary clause in the event of a takeover of the company by a third party. This clause allows the Executive Board members to terminate their existing contracts under extraordinary circumstances in the event of a takeover. A takeover within the meaning of this clause has taken place as soon as more than 30% of the shares are taken over by a third party. Should Executive Board members exercise this right of termination, they are entitled to the following severance payments: Dr Werner Lanthaler shall receive a severance payment in the amount of two years’ basic salary, Dr Craig Johnstone, as well as Dr Cord Dohrmann in the amount of 18 months’ basic salary plus the agreed bonus. In no Evotec Maintains a directors and officers liability insurance (“D&O Insurance”) for the members of the Management Board. This insurance covers the personal liability risk in the event that claims are made against members of the Management Board for pecuniary loss in the course of their duties. The insurance includes a deductivle for the Executive Board members that comply with the requirements of the German Stock Corporation Act. (c) Supervisory Board The Supervisory Board of Evotec consists of the following members: Prof. Dr. Iris Löw-Friedrich, Member of the Management Board (Chief Medical Officer) at UCB S.A.; Chairperson of the Supervisory Voard and of the Remuneration and Nomination Committee Roland Sackers, CFO and Managing Director of QIAGEN N.V.; Vice Chairman of the Supervisory Board and Chairperson of the Audit and Compliance Committee Dr Camilla Macapili, Head of Life Sciences, Mubadala Investment Company (MIC Head of Life Sciences), Member of the Supervisory Board since June 2022 Dr. Mario Polywka, non-independent consultant; Former Member of the Management board Evotec SE. Dr. Elaine Sullivan, independent consultant, CEO of KELTIC Pharma Therapeutics Ltd until September 2022, Member of the Supervisory Board Kasim Kutay, Chairman of the Board of Directors of Novo Holdings A/S, Member of the Supervisory board until June 2022 Dr. Constanze Ulmer-Eilfort, Partner of the law firm Peters, Schönberger & Partner (PSP Munich); Member of the Supervisory Board and Chair of the ESG Committee The remuneration accrued for the members of the Supervisory Board in the financial year was as follows: 2022 2021 Remuneration Remuneration k€ k€ Prof. Dr. Iris Löw-Friedrich 150.0 113.6 Roland Sackers 95.0 90.5 Dr. Mario Polywka 60.0 55.5 Dr. Elaine Sullivan 65.3 60.0 Kasim Kutay 28.4 60.0 Dr. Constanze Ulmer-Eilfort 73.2 32.7 Prof. Dr. Wolfgang Plischke — 68.2 Camilla Macapili Languille 31.6 — Total 503.5 480.5 In the 2022 and 2021 financial years, the remuneration per the Supervisory Board member amounted to k€ 50 per annum. In the 2022 financial year, the Chairperson received k€ 125 (31 December 2021: k€ 125) and his deputy k€ 60 (31 December 2021: k€ 60). The members of the Supervisory Board committees receive k€ 10 (2021: k€ 10) per committee, the chairperson of a committee receives k€ 25 (31 December 2021: k€ 25). No remuneration in the form of shares was paid to the Supervisory Board in the financial years 2022 and 2021. The members of the Supervisory Board and their other supervisory board offices and offices in comparable domestic and foreign supervisory bodies of commercial enterprises within the meaning of § 125 para. 1 sentence 5 AktG are listed below: Prof. Dr. Iris Löw-Friedrich Member of the Supervisory Board: Fresenius SE & Co. KGaA. Bad Homburg/DE TransCelerate BioPharma Inc. King of Prussia/United States Member of the Board of Directors: PhRMA Foundation, Washington DC/uSA Roland Sackers Member of the Board of Directors: BIO Deutschland e.V. Berlin/DE Dr Mario Polywka Non-Executive Board Director: Forge Therapeutics, Blacksmith Medicines Inc. San Diego/United States Exscentia Plc Orb it Discovery Limited C4X Discovery Holdings PLC. Dr Elaine Sullivan Member of the Supervisory Board: Active Biotech AB, Lund/SE hVIVO PLC (formerly Open Orphan PLC) IP Group PLC Nykode Therapeutics ASA Kasim Kutay Member of the Supervisory Board: Novo Nordisk A/S. Hellerup/DK Novo Nordisk A/S, Hellerup DK Balcão Novozymes A/S. Bagsværd/DK Dr. Constanze Ulmer-Eilfort Chairperson of the Advisory Board: S4DX GmbH Member of the Advisory Committee: Proxygen GmbH Camilla Macapili Languille Member of the Board of Directors: PCI Pharma Services (KPCI Holdings Limited) Norstella (Caerus PikCo S.A.R.L.) Envirotainer A/S |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent events | |
Subsequent events | (36) Subsequent events The Supervisory Board of Evotec SE has appointed Laetitia Rouxel as new Chief Financial Officer and member of the Management Board with effect from 1 April 2023. On April 6th 2023, the Group suffered from a criminal cyber attack that targeted many of Evotec’s operations which caused disruptions to many of its IT systems in several countries and temporarily stopped or reduced the Research and Production activities. The Group has been working relentlessly and prompt actions were taken to contain the incident, mitigate its impact and to return the operations to normal as soon as possible. Operations quickly recovered within days however it is possible that there may be a significant impact on the Group’s 2023 financial performance. The Group is currently assessing the estimated impacts this criminal action may have on the Group’s operations. The financial impacts are expected to be partially mitigated by the Group’s business interruption insurance, however due to the early stage of discussions with insurers the expected amount of reimbursement cannot be determined at this time. As a result of the cyber attack, a delay in external reporting occurred, which has led to a likely temporary exclusion from the indices of the Frankfurt Stock Exchange. Evotec expects to rejoin the relevant indices after the next regular review of admission requirements by Deutsche Börse. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Use of estimates | - Use of estimates The preparation of the accompanying consolidated financial statements requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities as of the balance sheet date of the financial year as well as income and expenses during the reporting period. Main estimates and assumptions affect the following subjects: – Acquisitions: Assets and liabilities acquired in a business combination are initially accounted for at fair value on the acquisition date. Fair values are determined using a discounted cash flow model which relies on input parameters derived from observable market data. These parameters involve management judgment whenever no comparable market data is available. Significant input parameters used in determining the fair values are the estimated useful life of the assets identified, the long-term business plan as the basis for determining the expected cash flow from these assets and the discount rate applied. – Revenues: Where we have certain fixed-price arrangements with customers, the stage of completion of performance obligations is reviewed by reference to input-based methods, such as hours delivered or full cost incurred (e.g., labor, materials, and other costs) under a contract in relation to expected total hours or total costs needed to fulfil the performance obligation. Revisions made to the estimated stage of completion can result in an adjustment to revenues in the current or future financial periods (see Note 24) and – Impairment testing and fair values: Management has identified the discount rate as well as the growth rate in the terminal value as key assumptions that have the potential to vary and thereby cause the recoverable amount to be lower than the carrying amount. Fair values for long-term investments at the time of acquisition correspond to the acquisition cost. Changes in fair value may occur due to adjusted scientific or financial plans or new financing rounds. (see Note 10, 11, 12, 13, 14 and 15). Other estimates and assumptions were exercised in the following areas: – Earn-out Provisions: Management estimates are made on discounted expected future cash flows. These cash flows are based on the contracts underlying the conditional consideration and the relevant project or business planning. The discount rate considers the risk underlying cash flows (usually weighted average cost of capital of the acquired entity). Additional non-observable input factors include, for example, marketing success probabilities. (see Note 18 and 30), – Measurement of the Share-based payment plans: Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including risk-free interest rates and volatility measures. (see Note 22), – Valuation of deferred tax assets: Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the tax losses can be charged. Management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the expected business performance of the tax subject and respective business plans (see Note 20). – Exercising significant influence on an investee: To determine whether an investor with minority voting rights has significant influence over an investee requires judgement, regarding participation rights in significant financial and operating decisions of these entities (see Note 35d). Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are made prospectively in the period in which the estimates are revised. |
Principles of consolidation | - Principles of consolidation In the consolidated financial statements of Evotec SE, all domestic and foreign companies which are under its control are included. Evotec controls an entity if it is exposed to, or has the right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are included in the consolidated financial statements from the date on which control is obtained until the date Evotec´s control ceases. If Evotec loses control over a subsidiary, all assets, and liabilities of that subsidiary together with any related non-controlling interests and other equity components are derecognized. Any resulting gain or loss is recognized in the income statement. Any retained interest in the former subsidiary is measured at fair value at the time of loss of control. All intercompany receivables, liabilities and all intercompany revenue, income, expenses and all intragroup profits or losses are eliminated in the consolidation. The financial statements of all to be consolidated subsidiaries are prepared using the same reporting date as the consolidated financial statements (31 December). |
Transactions in foreign currency | - Transactions in foreign currency The Group’s consolidated financial statements are presented in euros, which is also the parent company’s functional currency. For each to be consolidated entity the respective functional currency will be determined. ● Subsidiaries The assets and liabilities of foreign subsidiaries with functional currencies other than the Euro are translated into Euro using the respective exchange rates at the end of the reporting period, while the income statements of such subsidiaries are translated using monthly average exchange rates during the period. Gains or losses resulting from translating foreign functional currency financial statements are recognized directly in other comprehensive income and realized on disposal of the subsidiary. ● Associated companies and joint ventures The currency translation of the proportionate equity of joint ventures and associated companies is performed at the respective closing rate of inclusion. The share of the results of associated companies and joint ventures is translated at the average exchange rate and recognized as share of the result of associates accounted for using the equity method, in the statement of comprehensive income. ● Transactions and balances Transactions in foreign currencies are translated in the respective functional currency using the transaction foreign exchange rate. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated into the respective functional currency using the exchange rates at the end of the period. |
Financial instruments | - Financial instruments Recognition of financial instruments Financial assets and financial liabilities are recognized when an entity becomes a party to the contractual provisions of the financial instrument. Regular way purchase and sales of financial instruments are generally recognized on the settlement date. Derivatives are recognized on the day of trading. Derecognition of financial instruments Financial assets are derecognized if either the payment rights arising from the instrument have expired or substantially all risks and rewards attributable to the instrument have been transferred. Financial liabilities are derecognized if the obligations have expired or have been discharged or cancelled. Measurement of financial assets The initial recognition is measured at fair value. The subsequent measurement depends on the classification of the categories as defined in IFRS 9. Classification is based on two criteria: the Group’s business model for managing assets and whether the instruments’ contractual cash flows represent solely payments of principal and interest on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. For the financial assets the following applies: Debt instruments are held by Evotec with the intention to collect contractual cash flows (interest and principal) and to sell these debt instruments. Consequently, they are measured at fair value through OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. Equity instruments are measured at fair value through profit and loss. At Evotec this primarily relates to the long-term investments. All other non-derivative financial assets are measured at amortized cost and therefore according to the effective interest method. Non-derivative financial liabilities For subsequent measurement, non-derivative financial liabilities are measured at amortized cost. Impairment of financial assets Impairment is recognized for all financial assets not held at fair value through profit or loss and contract assets to be recognized in accordance with IFRS 15 using the expected credit loss (ECL) model. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that Evotec expects to receive. For trade receivables and contract assets, Evotec applies a simplified approach in calculating ECLs. Therefore, Evotec does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. See Notes (5) and (6) for details. Offsetting financial instruments Financials assets and liabilities are only offset, and the net amount presented in the consolidated statement of financial position when, and only when, Evotec has the legal right to offset the amounts and either to settle on a net basis or to realize the asset and settle the liability simultaneously. Derivative financial instruments and hedge accounting Evotec uses foreign currency derivative financial instruments as well as interest swaps to hedge its exposure to foreign exchange risks and interest rate fluctuations. Derivative financial instruments are measured at fair value through P&L. For these economic hedge relationships Evotec does not apply hedge accounting under IFRS 9. Derivatives embedded for financial liabilities in host contracts are accounted for separately if the economic characteristics and risk of the host contract and the embedded derivative are not closely related. In accordance with its treasury policy, the Company does not hold or issue derivative financial instruments for trading purposes. Basis for determining fair values of financial instruments. The following summarizes the significant methods and assumptions used in estimating the fair values of financial instruments. The fair value is determined primarily based on publicly determinable bid prices at the reporting date. For unlisted equity instruments or financial instruments without an active market, fair value is estimated using valuation techniques. Unless otherwise reported, the fair values of financial instruments equal the carrying amounts. |
Cash and cash equivalents | - Cash and cash equivalents The Company considers all highly liquid short-term investments with original maturities at the date of acquisition of three months or less to be cash equivalents. |
Contract assets | - Contract assets A contract asset is the right to a consideration in exchange for goods or services transferred to the customer. If Evotec fulfils its contractual obligations by transferring goods or services to a customer before the customer pays the consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional. |
Trade receivables | - Trade receivables A trade receivable is recognized if an amount of consideration that is unconditional is due from the customer. Appropriate allowances are made for identifiable risks. |
Inventories | - Inventories In accordance with IAS 2, inventories are valued at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Costs consist of purchased component costs and manufacturing costs, which are comprised of direct material and labor costs and systematic allocated costs. Costs are removed from inventories to costs of revenue based on specific identification. |
Property, plant and equipment | - Property, plant, and equipment Property, plant, and equipment is measured at cost less accumulated depreciation and impairment losses. Property, plant, and equipment acquisitions, including leasehold improvements, are recorded at cost. Depreciation of property, plant and equipment is generally calculated using the straight-line method over the estimated useful lives of the assets. Depreciation of leasehold improvements is calculated using the straight-line method over the shorter of the related lease term or the estimated useful life. The useful lives are as follows: Buildings and leasehold improvements 3-30 years Plant, machinery, and equipment 4-15 years Furniture and fixtures 3-15 years The depreciation period is reviewed at each balance sheet date. Differences from previous estimates are accounted for as a change in an accounting estimate in accordance with IAS 8. The costs included in property, plant and equipment related to assets under construction are not depreciated until the assets are placed into service by the Company. Upon sale or retirement, the costs and the related accumulated depreciation are removed from the respective accounts and any gain or loss is included in other operating income and expenses. Maintenance and repairs of property, plant and equipment are expensed as incurred. |
Leases | - Leases Evotec as a lessee Evotec recognizes and measures all leases (excluding short-term leases and leases of low-value assets) using the Right-of-Use model. The Company recognizes liabilities to make lease payments and Right-of-Use assets representing the right to use the underlying assets. i) Right-of-Use assets Evotec recognizes Right-of-Use assets at the commencement date (i.e., the point in time the underlying leased asset is available for use). Right-of-Use assets are measured at cost less any accumulated depreciation and any accumulated impairment losses. The cost of Right-of-Use assets include the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-Use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets as follows: Right-of Use assets relating to buildings >1-20 years Right-of Use assets relating to plant and machinery 2-7 years Right-of Use assets relating to motor vehicles 3-4 years If legal ownership of the leased asset transfers to Evotec at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the leased asset. ii) Lease liabilities On the provision date of the lease, Evotec recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or an interest rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, Evotec uses an incremental borrowing rate at the lease commencement date when the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification to the lease, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. iii) Short-term leases and leases of low-value assets |
Associates and joint ventures | - Associates and joint ventures Associates and joint ventures are entities in which Evotec has significant influence over the financial and operating policies. This significant influence is usually exercised through a direct or indirect share of voting power of 20% to 50%. Significant influence can also exist through a direct or indirect share of voting power of less than 20%, indicators are: ● Representation on the board of directors and/or on the supervisory board, ● (Significant) participation in operating policies, including participation in decisions about dividends of the investee, ● Interchange of managerial personnel, ● Material transactions between the entity and its investee, ● Provision of essential technical information. In case one or more of the above-mentioned indicators apply, Evotec verifies if significant influence exists. Associates and joint ventures are accounted for in the consolidated financial statements using the at-equity method and initially measured at cost. After acquisition, Evotec’s share in the associates and joint ventures profit, or loss is included in the consolidated statement of comprehensive income. Unrealized gains and losses from transactions between Evotec and its associates or joint ventures are recognized only to the extent of unrelated investors` interests in the associates and joint ventures. |
Intangible assets, excluding goodwill | - Intangible assets, excluding goodwill Intangible assets, excluding goodwill, consist of separately identified intangible assets such as developed technologies, customer related intangibles and patents, which were acquired in business combinations, purchased licenses and patents. Intangible assets with definite useful lives are recorded at cost and are amortized using the straight-line method over the estimated useful lives of the assets. The useful lives are as follows: Trademarks 2-10 years Developed technologies 6-18 years Patents and licenses Up to 15 years Developed technologies acquired in business combinations are amortized as soon as the intangible assets start to generate sustainable benefits and tested for impairment at least annually. Intangible assets excluding goodwill with finite useful lives are tested for impairment whenever there is an indication that the asset may be impaired. If the recoverable amount of the asset is less than the carrying amount, an impairment loss is recognized. If the reason for a previously recognized impairment loss no longer exists, the impairment loss is reversed and the carrying amount of the asset is increased to its amortized cost. Impairment losses are recognized in the income statement as other operating expenses and reversals of impairment losses as other operating income. The amortization period is reviewed at each balance sheet date. |
Goodwill | - Goodwill Goodwill recognized in a business combination according to the acquisition method is recognized as an asset. If the net assets acquired exceed the fair value of the consideration transferred, the income from bargain purchase is recognized in the consolidated income statement following a reassessment. |
Impairment of non-financial non-current assets and goodwill | - Impairment of non-financial non-current assets and goodwill The Company reviews non-financial non-current assets (property, plant and equipment and intangible assets including goodwill) for impairment, in the respect to the recoverable amount in accordance with IAS 36. An impairment review is performed at least annually for intangible assets with indefinite useful lives, intangible assets not yet available for use and goodwill, or whenever events or changes in circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. In line with the Company’s policy concerning the impairment of intangible assets with indefinite useful lives and goodwill, the Company carried out an impairment test in the fourth quarter of 2022 and 2021 based on 30 September balance sheet information, see Note (13) and (14). An impairment loss is recognized if the carrying amount of an asset (or a group of assets when considering a cash-generating unit) exceeds its recoverable amount, which is the higher of its fair value less costs to sell or value in use. The value in use for an asset or cash-generating unit, which is used by Evotec for the impairment testing of non-financial non-current assets and goodwill, is calculated by estimating the net present value of future cash flows arising from that asset or cash-generating unit. The discount rate used to calculate the value in use is determined to reflect the risks inherent for each asset or cash-generating unit. The evaluation of the further use is based on a mid-range or where applicable long-range forecast. Management judgment is necessary to estimate discounted future cash flows. Any impairment loss is reported as a separate component of other operating expenses in the consolidated income statement. An impairment of property, plant and equipment and intangible assets excluding goodwill is again reversed if there has been a change in the estimates used to determine the recoverable amount leading to an increase in value for a previously impaired asset or group of assets as one cash-generating unit. It is reversed only to the extent that the assets or the group of assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been previously recognized. Impairments of goodwill are not reversed. |
Provisions | - Provisions Provisions are recognized when the Company has a present obligation because of a past event which will result in a probable outflow that can be reliably estimated. The amount recognized represents the best estimate of the settlement amount of the present obligation as of the balance sheet date. Non-current provisions are discounted applying a risk adjusted market interest rate. A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from such a contract are lower than the unavoidable expenses of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected expenses of terminating the contract and the expected net expense of continuing with the contract. Before a provision is established, Evotec recognizes any impairment expense on the assets associated with that contract. |
Pension and similar obligations | - Pension and similar obligations The Company’s net obligation for defined benefit and other postretirement benefit plans have been calculated using the projected unit credit method. The calculation is based on actuarial expertise considering the relevant biometric factors. Actuarial gains and losses are recognized in other comprehensive income.Service and interest costs for pensions and other postretirement obligations are recognized as an expense in the operating result. The Company’s obligations for contributions to defined contribution plans are recognized as expense in the consolidated income statement. |
Contract liabilities | - Contract liabilities A contract liability is the obligation of Evotec to transfer goods or services to a customer for which Evotec has received a consideration (or an amount of consideration is due). If a customer pays the consideration before Evotec transfers goods or services to the customer, a contract liability is recognized when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when Evotec fulfils its contractual obligation. Evotec contracts do not include financing components as all up-front consideration received are prepayments on service obligations. |
Share capital | - Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of ordinary shares are recognized net of tax as a deduction from equity. The Company applies the regulations of IAS 32 in accounting for treasury shares. When ordinary shares recognized as equity would be reacquired, the amount of the consideration paid for those treasury shares is recognized as a deduction from equity. If treasury shares are subsequently sold or granted, the proceeds will be recognized net of tax as an increase in equity. |
Stock options and Share Performance Awards | - Stock options and Share Performance Awards The Company applies the regulations of IFRS 2 with regard to accounting for options granted under its stock option plans and under its Share Performance Plan. All plans are settled in shares and therefore are recorded through equity. Compensation cost from the issuance of employee and Management Board stock options are measured using the fair value method at the grant date and charged straight-line to expense over the service period. This is also the case for the grant of Share Performance Awards to employees and to members of the Management Board. In case the estimates regarding the achievement of the key performance indicators change, the fair value of Share Performance Awards is adjusted as long as if it is not a share price-based indicator. |
Revenues | - Revenues from contracts with customers Revenue is recognized when the control over separable services or research services is transferred to the customer, provided that a contract with enforceable rights and obligations exists and that collectability of consideration is probable. The Company assesses collectability based on a number of factors, including past transaction history with the customer and the customer’s creditworthiness. The Company has entered into contracts which can have multiple-elements and thoroughly determined whether the different revenue-generating elements are sufficiently separable and whether there exists sufficient evidence of their fair values to separately account for some or all of the individual elements of the contracts. Only if an element is considered to meet these criteria it does represent a separate unit of accounting. When allocating the transaction price to individual performance components, Evotec uses FTE-rates as indicator of the fair value of these components. Evotec’s revenues include service fees, FTE-based research payments revenue for delivered goods and deliverable kind of services, recharges, technology access fees as well as milestone fees, licenses, and royalties. Service fees, FTE-based research payments as well as deliverable services Revenues generated from service contracts or FTE-based research contracts, or deliverable kind of services are recognized as the services are rendered. Evotec applies an input-based method to measure the progress of completion of its performance obligations. In rare cases and only for specific contracts, output-based methods are applied whenever the contracts warrant such measurement. Payments for those services are generally paid in full or in parts in advance and recorded as contract liabilities. Contract assets are recognized in case Evotec’s progress of completion of its performance obligations exceeds the amount of the payments received. Those contracts may also contain variable compensation, which Evotec only includes in the transaction price when it becomes highly probable that such payments will be received. This is rarely the case upon contract inception or in early stages of contracts, owing to the nature of the services. Technology access fees Revenue from technology access fees is recognized pro rata over the related forecasted service period. Payments for technology access fees are generally paid in full or in parts in advance and recorded as contract liabilities until earned. Milestone fees Revenue contingent upon the achievement of certain milestones is recognized in the period the milestone is successfully achieved or all the performance obligation fulfilled. This occurs when the Company’s contract partner agrees that the requirements stipulated in the agreement have been met. Under IFRS 15, earlier recognition carries an increased risk of revenue corrections required and hence Evotec refrains from an earlier recognition. Licenses Revenue from the sale of licenses is recognized at the date of the sale. Revenue from out-licensing in combination with a collaboration is realized pro rata over the collaboration period. Payments from the sale of licenses are received on the day of the sale or thereafter. Royalties Revenue from royalties, which are dependent on other company’s respective product sales, is recognized in the period in which the royalty report or the payment is received. Payments are received either on the same day as the royalty report or thereafter. Royalties are typically contract components with a variable consideration which will as mentioned above only be realized as revenues when it is highly probable that the consideration will be received. Main estimates and assumptions > Identifying performance obligations, allocating the transaction price, and determining the stage of completion of contracts with service fees, FTE-based research payments as well as deliverable kind of services. Evotec performs research and development (R&D) services for a variety of customers under different contractual arrangements. When performance obligations are individually capable of being distinct and distinct in the context of the contract, Evotec allocates the transaction price to distinct performance obligations based on relative stand-alone selling prices of the obligations. Primarily, contracts for research and development (R&D) services often contain a large amount number of individual services, trigger upfront payments to cover the entire transaction price and are concluded for the overall purpose of identifying new research results partially or fully. The Group has determined that services under such contracts are integrated and qualify as one performance obligation. As far as other distinct services are included in those type of contracts, Evotec allocates the transaction price on the basis of relative stand-alone selling prices of the obligations. Such fixed-price arrangements are recognized over time as the respective performance obligation is fulfilled. Evotec applies an input-based method to measure the progress of completion of its performance obligations such as hours delivered or full cost incurred (e.g., labor, materials, and other costs) under a contract in relation to expected total hours or total costs needed to fulfil the performance obligations. For each contract, Evotec selects the input-based method that most faithfully depicts the transfer of services stated in the contract. In rare cases and only for specific contracts, output-based methods are applied whenever the contract warrants such measurement. > Determining the method to estimate variable compensation and assessing the constraint. Customer contracts often contain success-based variable compensation for research services and other contingent payments. The contingency often relates to few and specific research services, which is why Evotec determines the most likely amount payable under the contract. In addition, Evotec assesses whether a constraint exists in reference to revenue recognition for such variable compensations. Based on Evotec’s historical experience and due to the inherent risk of research, success-based variable compensations are regularly not included in the transaction price upon contract inception but are only included when the contingent events occur or become highly probable. -Revenue recognition from contributions Evotec receives private contributions for which the existence of an adequate exchange transaction for research projects serving the public good is refuted. A realization of revenue from contracts with customers is not possible. A private contribution exists for which a contribution revenue item is recognized. The effect on profit or loss is immediate or occurs over the period in which the subsidized service is provided. A liability item must be recognized for a contribution that has already been received, but this is not a contractual obligation, but rather other liability. The reversal of the liability item is gross, i.e., as contribution revenue separately from the revenues. |
Government grants | - Government grants Government grants are recognized when all the condition associated to those grants have been substantially complied with. When the grant relates to an expense item, it is recognized as a reduction of the related expense. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset. Under the terms of the grants, governmental agencies generally have the right to audit qualifying expenses submitted by the Company. |
Research and development (R&D) | - Research and development (R&D) Research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding are expensed as incurred. Due to the high uncertainty associated with development activities in the pharmaceutical sector the precondition for the capitalization of development expenses is generally not fulfilled. Evotec did not capitalize any pharmaceutical development costst costs in 2022 and 2021 respectively. R&D projects that are acquired in a business combination are capitalized at fair value when those R&D projects are expected to generate probable future economic benefits to the Company. R&D costs acquired in a business combination are not regularly amortized until they are sustainably generating benefits. The development expenses for internally generated software are capitalized when the recognition criteria are met. The development expenses for internally generated software are capitalized when the following recognition criteria are met. The software will generate future economic benefits, and its cost can be determined reliably, and the following can be demonstrated: – technical feasibility, – intention to use, – ability to use or sell, – how it will generate probable future economic benefits, – the availability of adequate technical – financial – and other resources, – ability to measure the attributable expenditure reliable. |
Other operating income | - Other operating income Evotec receives tax credits from tax development programs in the context of qualifying R&D expenses in different jurisdictions. Such tax refunds regularly result in amounts which can be offset against taxable income, to provide a partial or full relief from tax or other payments to fiscal authorities. Evotec determined that under its significant tax development programmes, the feature of the credit is provided in a way which allows either offsetting against taxable income or instead, when insufficient taxable profits are available, direct reimbursement and payment in cash. In addition, the tax development programmes are provided for specific activities, often limited to specific R&D expenses. As such, Evotec accounts for such tax development programmes as other operating income and does not account for such income as tax income or offsets tax credits from income tax expense. In certain cases, Evotec recharges costs to third parties. The income from those recharges is recognized in other operating income when it is a direct reimbursement of costs. There is no underlying direct exchange of services for this income and therefore a recognition as revenues is not suitable. The relating expenses are recognized in other operating expenses as well as in R&D expenses. |
Interest income and expense | - Interest income and expense Interest is recorded as expense or income in the period to which it relates. All interest income and expense including the unwind of the discount on contingent considerations are recognized in the income statement using the effective interest rate method. Evotec considers assets with a construction term over 12 months as qualifying assets. To determine the amount of borrowing eligible for capitalization when funds are borrowed for general purposes, the Group computes a weighted average cost of borrowing, which is then applied to qualifying assets as a capitalization rate. |
Income taxes | - Income taxes Income taxes comprise the current taxes on income in the individual countries as well as the deferred taxes. For uncertain tax positions tax assets or liabilities are recorded. Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group generates taxable income. The tax rates for domestic companies are 27%-32% and for foreign companies 19%-31% (2021: 27%-32% and 19%-28%, respectively and 2020: 27%-32% and 19%-31%, respectively). Deferred tax Deferred tax is recognized using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred taxes are recognized for all taxable temporary differences, except: ● temporary differences arising on the initial recognition of goodwill, ● temporary differences on the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss, ● temporary differences relating to investments in subsidiaries, associates, and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, unused tax loss carry forwards and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the unused tax loss carryforwards and tax credits can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Future tax rate changes are considered if, in the scope of a legislative procedure, substantial prerequisites for its future applicability are met. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the income taxes relate to the same taxable entity and the same taxation authority. Tax exposure In determining the amount of current and deferred taxes Evotec considers the impact of uncertain tax positions and whether additional taxes and interest maybe due. This assessment relies on estimates and assumptions and may involve a series of judgement about future events. New information may become available that forces the Company to change its judgement regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact tax expenses in the period in which such determination is made. |
Net income per share | - Net income per share The undiluted results per share is calculated by dividing the net income (loss) by the weighted average number of ordinary shares outstanding for the period, excluding common stock equivalents. The weighted average number of ordinary shares are calculated as follows: 2022 2021 2020 Shares in Shares in Shares in thousands thousands thousands Issued ordinary shares 1 January 176,608 163,915 150,903 Treasury shares 1 January (250) (250) (250) Effect of weighted average share capital increase 316 1,953 2,508 Effect of weighted average share options exercised — 788 591 Weighted average number of ordinary shares 31 December 176,674 166,406 153,752 Diluted net income per share is computed by dividing the surplus attributable to shareholders of Evotec SE, by the weighted-average number of ordinary shares and share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, stock options and Share Performance Awards are common stock equivalents and are only included in the calculation of diluted net income per share when their effect is dilutive. In 2022, the number of potentially dilutive shares to be issued from stock options and Share Performance Awards amounted to 463,415 (2021: 722,286; 2020: 1,172,673). For calculating the diluted net result per share, the resulting dilutive shares are included from the beginning of the period. |
First time adoption of new accounting standards in the financial year 2022 | First time adoption of new accounting standards in the financial year 2022 Standards/Interpretation Mandatory application Expected Effect Annual Improvement cycle 2018-2020: - IFRS 1 - IFRS 9 - IAS 41 IFRS 1: Subsidiary as a first-time adopter IFRS 9: Clarification with regard to fees in the 10 per cent test for derecognition of financial liabilities. IAS41: Taxation in fair value measurements 1.01.2022 No effects Amendments to IFRS 3: Reference to the Conceptual Framework Replacement a reference to the Framework for the Preparation and Presentation of Financial Statements, without significantly changing its requirements. 1.01.2022 No effects Amendments to IAS 16: Proceeds before Intended Use Change in accounting of proceeds before intended use. 1.01.2022 No effects Amendments to IAS 37: Onerous Contracts – Cost of Fulfilling a Contract Specification which costs an entity needs to include when assessing whether a contract is onerous or loss making. 1.01.2022 No effects Other changes for first time adoption in fiscal year 2023 did also not have a significant impact on the Evotec Group. |
Recent accounting pronouncements, not yet adopted | - Recent accounting pronouncements, not yet adopted The following standards and interpretations published by the IASB are not yet mandatory because the date of their first mandatory application has not yet been reached: Standards/Interpretation Mandatory application Endorsement by European Commission Expected Effect Amendments to IAS 1: Disclosure of Accounting Policies An entity is required to disclose its “material” accounting policy information instead of its “significant” accounting policies 1.01.2023 Yes No material effects Amendments to IAS 1: Classification of Liabilities as Current or Non-current Clarification that classification of liabilities as current or non-current should be based on rights that are in existence at end of reporting period 1.01.2024 No No effects Amendments to IAS 1: Non-current Liabilities with Covenants Requirement to disclose information about long term debt with covenants that enable investors to understand the risk of early repayment 1.01.2024 No Effects are still being analyzed Amendments to IAS 8: Definition of Accounting Estimates Clarification of distinction between changes in accounting policies and changes in accounting estimates 1.01.2023 Yes No material effects Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction Amendments narrowed scope of the recognition exemption in IAS 12.15 and IAS 12.24 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences 1.01.2023 Yes Effects are still being analyzed Amendments to IFRS 16: Lease Liability in a Sale and Leaseback Clarification on how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale 1.01.2024 No Effects are still being analyzed IFRS 17: Insurance Contracts New accounting standard for insurance contracts covering recognition, measurement, presentation and disclosure 1.01.2023 Yes No effects Amendments to IFRS 17: Initial Application of IFRS 17 and IFRS 9 – Comparative Information Adds a transition option for a “classification overlay” to address possible accounting mismatches 1.01.2023 Yes No effects |
Changes in accounting policies | - Changes in accounting policies In its April 2021 Update, the IFRS IC published an agenda decision clarifying how to calculate the obligation relating to certain defined benefit plans under which the retirement benefit is (i) contingent on the employee being employed by the entity at the time of retirement; (ii) capped at a specified number of years of service; and (iii) linked to the employee’s length of service at the date of retirement. In that decision, the IFRS IC took the view that the obligation should be recognized only over the years of service preceding the date of retirement in respect of which the employee generates entitlement to the benefit. Applying that decision has resulted in a change in accounting policy, the effects of which have been reflected retrospectively in 2020 in accordance with IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors). Consequently, the 2020 financial statements were adjusted, with the impact of first-time application reflected as from 1 January 2019, the beginning of the earliest comparative financial period presented. The opposite entry to the adjustment as of that date was recognized in equity. The service cost (including past service cost), interest cost and actuarial gains and losses were adjusted, as have the related deferred taxes. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Schedule of useful lives of property, plant and equipment | Buildings and leasehold improvements 3-30 years Plant, machinery, and equipment 4-15 years Furniture and fixtures 3-15 years |
Schedule of useful lives of right-of-use assets | Right-of Use assets relating to buildings >1-20 years Right-of Use assets relating to plant and machinery 2-7 years Right-of Use assets relating to motor vehicles 3-4 years |
Schedule of useful lives of intangible assets | Trademarks 2-10 years Developed technologies 6-18 years Patents and licenses Up to 15 years |
Schedule of weighted average number of ordinary shares | 2022 2021 2020 Shares in Shares in Shares in thousands thousands thousands Issued ordinary shares 1 January 176,608 163,915 150,903 Treasury shares 1 January (250) (250) (250) Effect of weighted average share capital increase 316 1,953 2,508 Effect of weighted average share options exercised — 788 591 Weighted average number of ordinary shares 31 December 176,674 166,406 153,752 |
Schedule of impact changes in accounting policies | |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment information | |
Summary of segment information | The segment information for the financial year 2022 is as follows: EVT EVT Intersegment Evotec in k€ Execute 1) Innovate eliminations Group Revenues 735,635 204,730 (188,917) 751,448 Operating income (loss) 32,523 (11,673) — 20,850 1) The segment information for the financial year 2021 is as follows: EVT EVT Intersegment Evotec in k€ Execute 1) Innovate eliminations Group Revenues 610,168 146,982 (139,116) 618,034 Operating income (loss) 63,109 (22,113) — 40,996 1) The segment information for the financial year 2020 is as follows: EVT EVT Intersegment Evotec in k€ Execute 1) Innovate eliminations Group Revenues 509,870 106,830 (115,776) 500,924 Operating income (loss) 77,362 (28,806) — 48,556 1) |
Summary of non-current assets categorized by the location | 2022 2021 k€ k€ United States 231,439 209,508 United Kingdom 211,115 196,543 Italy 227,113 188,858 France 205,749 129,178 Germany 160,970 105,283 Switzerland — 14,089 Austria 3,914 2,697 Canada 1,906 1,913 1,042,206 848,069 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Evotec (Modena) Srl., Medolla, Italy | |
Acquisitions | |
Schedule of fair values at the date of acquisition | in k€ as of 1 July 2022 Cash and cash equivalents 263 Trade accounts receivables 244 Inventories 29 Property, plant, and equipment 3,809 Intangible assets 727 Deferred tax asset 344 Other assets 374 Trade accounts payable (382) Current liabilities (564) Non-current liabilities (1,009) Other liabilities (370) Other accrued liabilities (73) Net assets acquired 3,392 Goodwill 19,622 Cost of acquisition 23,014 Contingent consideration (14) Cash and cash equivalents acquired (263) Cash outflow on acquisition 22,737 |
Evotec Drug Substance (Germany), Halle, Germany | |
Acquisitions | |
Schedule of fair values at the date of acquisition | in k€ as of 1 November 2022 Cash and cash equivalents 16,099 Trade accounts receivables 1,210 Inventories 2,903 Prepaid expenses 77 Property, plant, and equipment 6,213 Intangible assets 23 Deferred tax asset 725 Trade accounts payable (43) Current provisions (609) Contract liabilities (705) Current tax payables (76) Other payables (7) Non-current provisions (553) Non-current lease liabilities (3,940) Order intake (2,200) Acquired net assets 19,117 Bargain Purchase (4,909) Consideration transferred 14,208 Cash and cash equivalents 16,099 Purchase price for shareholder loan (14,208) Cash outflow on acquisition 1,891 |
Trade accounts receivables (Tab
Trade accounts receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade accounts receivable | |
Schedule of aging of trade accounts receivable | 31 Dec 31 Dec 2022 2021 k€ k€ Not past due 136,372 95,556 Risk provision not past due — — Past due 1-30 days 24,425 31,222 Risk provision 1-30 days (67) (30) Past due 31-120 days 6,301 5,164 Risk provision 31-120 days (323) (89) More than 120 days 4,778 2,236 Risk provision more than 120 days (2,833) (1,981) Total trade accounts receivables 168,653 132,078 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Schedule of inventories | 31 Dec 31 Dec 2022 2021 k€ k€ Raw materials 27,917 25,043 Work-in-progress 1,908 750 Total inventories 29,825 25,793 |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid expenses and other current assets | |
Schedule of prepaid expenses and other current assets | 31 Dec 31 Dec 2022 2021 k€ k€ Prepaid expenses 16,948 19,210 Other 40,178 20,685 Total prepaid expenses and other current assets 57,126 39,895 |
Long-term Investments account_2
Long-term Investments accounted for using the equity method (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Investments accounted for using the equity method | |
Summary of development of the entity's equity method investment | The following table summarizes the development of the long-term investments during year 2022: Breakpoint Dark Blue Topas Autobahn Therapeutic Curexsys Therapeutics Therapeutics Insignificant in k€ Labs LLC GmbH GmbH Ltd GmbH Investments Total Balance at 1 January 2022 — 2,774 4,212 405 1,497 4,180 13,068 Additions 3,634 — 2,564 7,167 1,821 3,754 18,940 Pro rata net result (2,263) (2,774) (2,809) (3,550) (2,913) (1,656) (15,965) Loss against other current assets — — — — — — — Impairment — — — — — — — Discontinued use of equity method — — — — — — — Net book value 31 December 2022 1,371 — 3,967 4,022 405 6,278 16,043 The following table summarizes the development of the long-term investment during the year 2021: Breakpoint Exscientia NephThera Therapeutics Insignificant in k€ plc 1 GmbH 2) GmbH investments Total Balance at 1 January 2021 21,040 486 1,918 16,266 39,710 Additions — — 3,667 7,244 10,911 Pro rata net result (1,577) (486) (2,811) (11,696) (16,570) Loss against other current assets — — — 977 977 Impairment — — — (2,497) (2,497) Discontinued use of equity method (19,463) 1) — — — (19,463) Net book value 31 December 2021 — — 2,774 10,294 13,068 1) In the first half of 2021, Evotec did not participate in two financing rounds of Exscientia plc (before: Exscientia Ltd.), resulting in Evotec’s shareholding decreasing from 20.32% to 14.84% . In the third quarter of 2021, Exscientia plc was listed for the first time on the NASDAQ and the shareholding further decreased through dilution to 11.70% as of 31 December 2021 through dilution. Consequently, Exscientia plc is no longer accounted for using the equity method but at fair value in accordance with IFRS 9. 2) NephThera GmbH is a joint venture. |
Schedule of financial information of significant investments | Further financial information on the significant investments accounted for using the equity method is presented below: Breakpoint Dark Blue Topas Autobahn Therapeutics Curexsys Therapeutics Therapeutics Labs LLC GmbH GmbH Ltd GmbH 2022 k€ k€ k€ k€ k€ Current assets 4,029 7,204 3,409 14,244 6,795 Non-current assets 6 2 484 32 — Current liabilities 672 1,068 302 1,065 843 Non-current liabilities — 143 85 8,208 — Revenues from 1 Jan to 31 Dec — — 15 — — Net result from 1 Jan to 31 Dec (6,144) (11,789) (6,940) 1,025 (9,340) Breakpoint NephThera Therapeutics GmbH GmbH 2021 k€ k€ Current assets 8,013 18,501 Non-current assets 10 2 Current liabilities 525 719 Non-current liabilities — — Revenues from 1 Jan to 31 Dec — — Net result from 1 Jan to 31 Dec (5,769) (8,283) |
Other long-term investments (Ta
Other long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other long-term investments | |
Schedule of other long term investments | The development of investments measured at fair value in accordance with IFRS 9 is shown below: 2022 2021 k€ k€ Balance at 1 January 268,793 19,289 Additions 46,137 6,647 Additions due to discontinue use of equity method — 19,463 Adjustments at fair value, affecting net income (172,159) 223,394 Adjustments at fair value, affecting OCI (11,729) — Net book value 31 December 131,042 268,793 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment. | |
Schedule of development of property, plant and equipment | The development of property, plant, and equipment in 2022 and 2021 is shown in the following tables. The table below also includes the right of use assets (see note 13 Leases) with a net book value of k€ 168,327 as of 31 December 2022 (31. December 2021 k€ 145,038). 2022 k€ Plant, Buildings and machinery leasehold and Furniture Assets under improvements equipment and fixtures construction Total Acquisition and manufacturing costs Amount beginning of the year 378,467 227,611 39,658 40,350 686,086 Foreign currency translation 3,234 839 (62) 883 4,894 Additions 61,673 59,611 11,663 95,618 228,565 Business combination 6,534 3,309 107 94 10,044 Disposals 3,573 3,101 1,243 862 8,779 Reclass 16,727 1,667 1,308 (19,702) — Amount end of the year 463,062 289,936 51,431 116,381 920,810 Depreciation, amortisation, and write-downs Amount beginning of the year 63,379 113,901 24,209 — 201,489 Foreign currency translation (196) (355) (168) — (719) Additions 33,126 30,490 9,061 — 72,677 Disposals 44 1,563 1,231 — 2,838 Reclass 2,194 (2,166) (28) — — Amount end of the year 98,459 140,307 31,843 — 270,609 Net book value Amount beginning of the year 315,088 113,710 15,449 40,350 484,597 Amount end of the year 364,603 149,629 19,588 116,381 650,201 2021 k€ Plant, Buildings and machinery Assets leasehold and Furniture under improvements equipment and fixtures construction Total Acquisition and manufacturing costs Amount beginning of the year 215,055 168,224 27,445 71,155 481,879 Foreign currency translation 9,099 4,576 718 3,362 17,755 Additions 83,535 36,082 7,546 63,653 190,816 Business combination — — — — — Disposals 3,022 443 860 39 4,364 Reclass 73,800 19,172 4,809 (97,781) — Amount end of the year 378,467 227,611 39,658 40,350 686,086 Depreciation, amortisation, and write-downs Amount beginning of the year 40,472 87,048 17,062 — 144,582 Foreign currency translation 1,919 2,628 620 — 5,167 Additions 23,463 24,826 7,307 — 55,596 Disposals 2,552 424 880 — 3,856 Reclass 77 (177) 100 — — Amount end of the year 63,379 113,901 24,209 — 201,489 Net book value Amount beginning of the year 174,583 81,176 10,383 71,155 337,297 Amount end of the year 315,088 113,710 15,449 40,350 484,597 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of carrying amounts of right-of use assets recognized and the movements during the period | 2022 k€ Right of use Right of Plant, use machinery Furniture Right of use and and Buildings equipment Fixtures Total Acquisition and manufacturing costs Amount beginning of the year 177,602 8,077 997 186,676 Foreign currency translation (919) (17) — (936) Additions 38,393 306 338 39,037 Business combination 3,940 — 22 3,962 Disposals — — — — Reclass 3,718 (3,678) (40) — Amount end of the year 222,734 4,688 1,317 228,739 Depreciation, amortisation, and write-downs Amount beginning of the year 35,722 5,384 532 41,638 Foreign currency translation 8 109 — 117 Additions 17,855 575 229 18,659 Disposals — — — — Reclass 2,194 (2,166) (28) — Amount end of the year 55,779 3,902 733 60,414 Net book value Amount beginning of the year 141,880 2,693 465 145,038 Amount end of the year 166,955 786 584 168,325 2021 k€ Right of use Right of Plant, use machinery Furniture Right of use and and Buildings equipment Fixtures Total Acquisition and manufacturing costs Amount beginning of the year 158,454 8,382 529 167,365 Foreign currency translation 7,442 30 — 7,472 Additions 14,077 — 215 14,292 Business combination — — — — Disposals 2,453 — — 2,453 Reclass 82 (335) 253 — Amount end of the year 177,602 8,077 997 186,676 Depreciation, amortisation, and write-downs Amount beginning of the year 21,169 3,939 147 25,255 Foreign currency translation 2,573 120 24 2,717 Additions 14,160 1,462 207 15,829 Disposals 2,163 — — 2,163 Reclass (17) (137) 154 — Amount end of the year 35,722 5,384 532 41,638 Net book value Amount beginning of the year 137,285 4,443 382 142,110 Amount end of the year 141,880 2,693 465 145,038 |
Schedule of carrying amounts of lease liabilities and the movements | 2022 2021 k€ k€ Amount beginning of the year 150,437 145,554 Foreign currency translation (923) 6,691 Additions 38,784 14,292 Business combination 3,962 — Disposals (232) (58) Accretion of interest 3,841 3,728 Payments (19,046) (19,770) Amount end of the year 176,823 150,437 |
Schedule of lease liabilities | 31 Dec 22 31 Dec 21 k€ k€ Current portion of lease obligations 14,825 14,473 Long-term lease obligations 161,998 135,964 176,823 150,437 |
Schedule of amounts are recognised in profit and loss | 2022 2021 2020 k€ k€ k€ Depreciation expense of right-of-use assets 18,659 15,829 16,035 Interest expense on lease liability 3,841 3,728 3,125 Expense relating to short-term leases 476 839 807 Expense relating to leases of low-value assets 50 56 33 Variable lease payments — — — Total amount recognised in profit and loss 23,026 20,452 20,000 |
Intangible assets, excluding _2
Intangible assets, excluding goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets, excluding goodwill | |
Schedule of development of intangible assets | The development of intangible assets in 2022 and 2021 is shown in the following tables. 2022 k€ Patents and Developed Customer Favorable licenses technology related Trademarks Contract Total Acquisition and manufacturing costs Amount beginning of the year 11,211 99,784 69,089 6,539 — 186,623 Foreign currency translation — 34 — — — 34 Additions — 917 — — — 917 Business combination 1,672 — — — — 1,672 Disposals — — — — — — Reclass — — — — — — Amount end of the year 12,883 100,735 69,089 6,539 — 189,246 Depreciation, amortization and write-downs Amount beginning of the year 10,182 92,983 47,391 5,216 — 155,772 Foreign currency translation — (438) 45 — — (393) Additions 1,223 1,559 6,969 297 — 10,048 Disposals — — — — — — Reclass (56) 56 — — — — Impairment — — — — — — Amount end of the year 11,349 94,160 54,405 5,513 — 165,427 Net book value Amount beginning of the year 1,029 6,801 21,698 1,323 — 30,851 Amount end of the year 1,534 6,575 14,684 1,026 — 23,819 2021 k€ Patents and Developed Customer Favorable licenses technology related Trademarks Contract Total Acquisition and manufacturing costs Amount beginning of the year 10,772 98,845 67,647 6,539 62,033 245,836 Foreign currency translation — 939 1,442 — — 2,381 Additions 439 — — — — 439 Business combination — — — — — — Disposals — — — — 62,033 62,033 Reclass — — — — — — Amount end of the year 11,211 99,784 69,089 6,539 — 186,623 Depreciation, amortization and write-downs Amount beginning of the year 10,095 90,272 37,786 4,574 5,073 147,800 Foreign currency translation — 348 691 — — 1,039 Additions 87 1,680 8,914 642 689 12,012 Disposals — — — — 5,762 5,762 Reclass — — — — — — Impairment — 683 — — — 683 Amount end of the year 10,182 92,983 47,391 5,216 — 155,772 Net book value Amount beginning of the year 677 8,573 29,861 1,965 56,960 98,036 Amount end of the year 1,029 6,801 21,698 1,323 — 30,851 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill | |
Schedule of development of goodwill | With respect to the development of goodwill please refer to the following detailed schedules. OAI/Evotec OAI/Evotec Evotec International International Aptuit (US) Just Execute Innovate Execute Execute Execute Total k€ k€ k€ k€ k€ k€ 1 January 2022 84,480 9,204 128,845 4,197 30,843 257,569 Business combination — — 19,622 — — 19,622 Disposal — — — — — — Reclass — — — — — — Foreign currency translation (2,257) (40) (2,243) 260 1,908 (2,372) 31 December 2022 82,223 9,164 146,224 4,457 32,751 274,819 The goodwill addition in financial year 2022 to the Aptuit Execute cash-generating unit was a result of the acquisition of Evotec (Modena) Srl, see (Note 4). Foreign currency translation resulted in a decrease of k€ 2,372. OAI/Evotec OAI/Evotec Evotec International International Aptuit (US) Just Execute Innovate Execute Execute Execute Total k€ k€ k€ k€ k€ k€ 1 January 2021 79,816 9,154 126,059 3,874 28,467 247,370 Business combination — — — — — — Disposal — — — — — — Reclass — — — — — — Foreign currency translation 4,664 50 2,786 323 2,376 10,199 31 December 2021 84,480 9,204 128,845 4,197 30,843 257,569 |
Schedule of assumptions of cash-generating units | Cash-generating units 2022 OAI/Evotec OAI/Evotec Evotec International International (US) Aptuit Just Execute Innovate Execute Execute Execute Denominated in GBP/EUR GBP/EUR USD GBP/EUR USD Pre-tax discount rate 10.15 % 11.93 % 9.32 % 13.12 % 11.71 % Growth rate for terminal value 2.0 % 2.0 % 2.0 % 2.0 % 2.0 % Cash-generating units 2021 OAI/Evotec OAI/Evotec Evotec International International (US) Aptuit Just Execute Innovate Execute Execute Execute Denominated in GBP/EUR GBP/EUR USD GBP/EUR USD Pre-tax discount rate 8.19 % 11.51 % 7.87 % 9.83 % 9.22 % Growth rate for terminal value 2.0 % 2.0 % 2.0 % 2.0 % 2.0 % |
Loan liabilities (Tables)
Loan liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loan liabilities | |
Summary of loan liabilities | 31 December 31 December 2022 2022 2021 2021 Nominal interest Maturity Fair Carrying Fair Carrying Country of lender Currency rate until Value amount Value amount k€ k€ k€ k€ Germany EUR fixed interest rate of 0.9% to 3.8% 2024-2029 198,281 214,671 254,911 249,530 Germany EUR 1.60% 2024-2027 71,846 75,000 78,596 75,000 Germany EUR 1.20% 2029 6,358 6,722 8,014 7,797 Germany EUR 1.40% 2031 19,099 20,367 21,332 20,367 Italy EUR fixed interest rate of 1.3% to 3.05% 2026-2027 1,218 1,257 — — France EUR 0.55% 2025 10,038 10,742 8,559 8,650 306,840 328,759 371,412 361,344 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions. | |
Summary of provisions | The current provisions consist of the following: 31 Dec 31 Dec 2022 2021 k€ k€ Other personnel expenses 47,490 33,983 Pensions 1,730 1,478 Other provisions 5,190 3,799 Total current provisions 54,410 39,260 The non-current provisions consist of the following: 31 Dec 31 Dec 2022 2021 k€ k€ Pensions 12,531 12,950 Other personnel expenses 1,209 2,029 Other provisions 2,687 3,042 Total non-current provisions 16,427 18,021 The following table summarizes the development of total provisions recorded during 2022: Business Foreign 31 Dec 1. Jan. 22 combination Consumption Release exchange Additions 2022 k€ k€ k€ k€ k€ k€ k€ Other personnel expenses 36,012 419 23,105 3,374 (2,525) 41,272 48,699 Pensions 14,428 553 1,629 1,404 (12) 2,325 14,261 Other provisions 6,841 287 1,103 3,182 (63) 5,097 7,877 Total 57,281 1,259 25,837 7,960 (2,600) 48,694 70,837 The following table summarizes the development of total provisions recorded during 2021: Business Foreign 31 Dec 1. Jan. 21 combination Consumption Release exchange Additions 2021 k€ k€ k€ k€ k€ k€ k€ Other personnel expenses 37,005 — 33,018 3,644 636 35,033 36,012 Pensions 14,441 — 463 813 — 1,263 14,428 Other provisions 11,133 — 4,760 7,021 655 6,834 6,841 Total 62,579 — 38,241 11,478 1,291 43,130 57,281 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes | |
Summary of income tax benefit and expense | 2022 2021 2020 k€ k€ k€ Current taxes: - Current tax expense (14,132) (12,309) (12,804) - Adjustment for prior years 156 (4,095) 739 Total current taxes (13,976) (16,404) (12,065) Deferred taxes: - Tax loss carry forwards (10,862) (5,140) (10,319) - Temporary differences 3,140 74 2,822 Total deferred taxes (7,722) (5,066) (7,497) Total income tax expense) (21,698) (21,470) (19,562) |
Schedule of effective income tax rate | 2022 2021 2020 k€ k€ k€ Income before taxes (153,956) 236,980 25,840 Expected German income tax rate 32.28 % 32.28 % 32.28 % Expected income tax benefit (expense) 49,697 (76,497) (8,341) Non-deductible expenses (59,543) (511) (2,533) Taxable income not recognized in income before tax — — (7,796) R&D tax credits 13,454 6,742 5,983 Tax free income 3,184 71,917 5,485 Permanent differences from GILTI (3,724) (444) (1,401) Tax effects from investments accounted for using the equity method (5,152) (9,300) (2,884) Deviation tax rates to expected tax rate 448 1,815 690 Change in tax rates 636 521 124 Change in recognition of deferred tax assets (19,167) (10,247) (9,317) Non-periodic taxes Current Taxes 156 (4,095) 739 Deferred Taxes (1,348) (570) 203 Other (339) (801) (514) Effective income tax income (expense) (21,698) (21,470) (19,562) Effective income tax rate (14.09 %) 9.06 % 75.70 % |
Schedule of deferred income tax assets and liabilities | 01 Jan 2022 Recognized in 31 Dec 2022 Recognized other Foreign Deferred Deferred In comprehensive currency tax tax Net balance profit or loss Income translation Acquisition Net assets liabilities k€ k€ k€ k€ k€ k€ k€ Property, plant, and equipment (4,855) (5,140) — 508 30 (9,457) 1,563 (11,020) Intangible assets (22,348) 2,536 — (130) 296 (19,646) 965 (20,611) Right of use assets (21,979) (6,860) — — — (28,839) — (28,839) Financial assets (3,985) 2,539 — — — (1,446) 453 (1,899) Provisions and deferred income 3,965 5,640 (357) 2 — 9,250 12,759 (3,509) Lease obligations 19,927 5,351 — — — 25,278 25,278 — Other 4,949 (727) — 22 — 4,244 5,778 (1,534) Tax credits 1,034 (199) (633) * 71 — 273 273 — Loss carryforward 22,963 (10,862) — 45 — 12,146 12,146 — Total (329) (7,722) (990) 518 326 (8,197) 59,215 (67,412) Set off of tax — — — — — — (48,888) 48,888 Net (329) (7,722) (990) 518 326 (8,197) 10,327 (18,524) * Recorded in Equity without any impact on other comprehensive income 01 Jan 2021 Recognized in 31 Dec 2021 Recognized other Foreign Deferred Deferred in comprehensive currency tax tax Net balance profit or loss Income translation Net assets liabilities k€ k€ k€ k€ k€ k€ k€ Property, plant, and equipment (2,840) (1,969) — (46) (4,855) 1,528 (6,383) Intangible assets (25,314) 3,296 — (330) (22,348) 468 (22,816) Right of use assets (23,535) 1,556 — — (21,979) — (21,979) Financial assets (316) (3,669) — — (3,985) 401 (4,386) Provisions and deferred income 4,801 (768) 7 (75) 3,965 6,516 (2,551) Lease obligations 23,274 (3,347) — — 19,927 20,297 (370) Other (1,309) 6,245 — 13 4,949 5,254 (305) Tax credits 1,521 (1,270) 708 * 75 1,034 1,034 — Loss carryforward 27,711 (5,140) — 392 22,963 22,963 — Total 3,993 (5,066) 715 29 (329) 58,461 (58,790) Set off of tax — — — — — (41,102) 41,102 Net 3,993 (5,066) 715 29 (329) 17,359 (17,688) * |
Summary of tax loss, interest carryforwards and tax credits | 2022 2021 2020 k€ k€ k€ Tax loss carryforwards (not expiring) 474,989 307,682 272,796 Time-limited tax losses - expiring until 2027 (2021: 2026)(2020: 2025) 13,297 21,409 19,259 - expiring from 2028 to 2032 (2021: 2027-2031) (2020: 2026-2030) 45,696 38,207 45,409 - expiring after 2032 (2021: 2031)(2020: 2030) 57,662 73,811 43,945 Interest carryforward — — — Tax credits 1,313 1,286 1,119 Total 592,957 442,395 382,528 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-based compensation | |
Summary of the status of the Share Performance Plans | A summary of the status of the Share Performance Plans as of 31 December 2022 and 2021 and the changes during the year then ended is presented as follows: 31 December 2022 2022 2021 2021 2020 2020 Share Weighted Share Weighted Share Weighted Performance Average Performance Average Performance Average Awards Exercise Awards Exercise Awards Exercise (SPAs) price (SPAs) price (SPAs) price € per share € per share € per share Outstanding at beginning of the year 1,325,450 1.00 1,570,113 1.00 2,149,562 1.00 SPAs granted 468,706 1.00 608,710 1.00 325,612 1.00 SPAs exercised (209,043) 1.00 (701,278) 1.00 (865,687) 1.00 SPAs forfeited (80,475) 1.00 (152,095) 1.00 (39,374) 1.00 Outstanding at end of the year 1,504,638 1.00 1,325,450 1.00 1,570,113 1.00 Thereof exercisable — 1.00 — 1.00 432,450 1.00 |
Summary of inputs into the Monte-Carlo-Simulation model | 27 October 27 May 28 January 2022 2022 2022 Risk-free interest rate in % 2.03 0.57 (0.46) Volatility of Evotec share in % 51.00 45.00 37.00 Volatility of TecDAX index in % — — 17.00 Fluctuation in % 5.00 0.0 – 5.0 0.0 – 5.0 Exercise price in Euro 1.00 1.00 1.00 Share price at grant date in Euro 19.47 25.26 34.90 Market value of TecDAX index at grant date in Euro — — 3,411.87 Fair value according to IFRS 2 at grant date per SPA of the Management Board in Euro — 22.87 31.30 Fair value according to IFRS 2 at grant date per SPA of executives in Euro 18.57 24.29 33.66 22 October 28 May 1 February 2021 2021 2021 Risk-free interest rate in % (0.43) (0.57) (0.78) Volatility of Evotec share in % 35.00 40.00 42.00 Volatility of TecDAX index in % — — 29.00 Fluctuation in % 5.00 0.0 – 5.0 0.0 – 5.0 Exercise price in Euro 1.00 1.00 1.00 Share price at grant date in Euro 44.98 35.49 32.25 Market value of TecDAX index at grant date in Euro — — 3,375.67 Fair value according to IFRS 2 at grant date per SPA of the Management Board in Euro — 33.50 31.34 Fair value according to IFRS 2 at grant date per SPA of executives in Euro 43.96 34.47 36.65 29 October 15 January 2020 2020 Risk-free interest rate in % (0.85) (0.55) Volatility of Evotec share in % 40.0 37.0 Volatility of TecDAX index in % — 18.0 Fluctuation in % 5.00 0.0 – 5.0 Exercise price in Euro 1.00 1.00 Share price at grant date in Euro 22.92 23.39 Market value of TecDAX index at grant date in Euro — 3,099.05 Fair value according to IFRS 2 at grant date per SPA of the Management Board in Euro — 22.69 Fair value according to IFRS 2 at grant date per SPA of executives in Euro 21.89 25.28 |
Summary of the status of the stock option plans | In the beginning of 2020, there remained a few stock options from the past. A summary of the status of the stock option plans as of 31 December 2020 and the changes during the year then ended is presented as follows: 2020 Weighted 2020 average Options exercise price € per share Outstanding at beginning of the year 32,594 2.79 Options exercised (32,594) 2.79 Options expired — — Options forfeited — — Outstanding at end of the year — — Thereof exercisable — — |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' equity | |
Summary of share capital | 2022 2021 2020 Shares in Shares in Shares in thousands thousands thousands Issued as of 01 January 176,608 163,915 150,903 Capital increase (cash contribution) — 11,497 11,478 Exercise of share purchase rights 345 1,196 1,534 Issued as of 31 December 176,953 176,608 163,915 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenues | |
Schedule of revenue recognized | The following schedule analyses the revenues Evotec recognized in the financial year 2022: in k€ EVT Execute EVT Innovate Evotec Group Revenues Service fees and FTE-based research payments 498,719 185,268 683,987 Material recharges 38,668 5,768 44,436 Compound access fees 1,464 1,109 2,573 Milestone fees 6,054 12,012 18,066 Licenses 1,813 573 2,386 Total 546,718 204,730 751,448 Timing of revenue recognition At a point in time 44,722 17,780 62,502 Over a period of time 501,996 186,950 688,946 Total 546,718 204,730 751,448 Revenues by region United States 283,755 134,550 418,305 Germany 32,765 26,130 58,895 France 22,546 9,728 32,274 United Kingdom 105,557 9,699 115,256 Rest of the world 102,095 24,623 126,718 Total 546,718 204,730 751,448 The following schedule shows the revenue in the financial year 2021: in k€ EVT Execute EVT Innovate Evotec Group Revenues Service fees and FTE-based research payments 431,184 99,570 530,754 Material recharges 34,104 1,887 35,991 Compound access fees 1,532 43 1,575 Milestone fees 4,232 45,237 49,469 Licenses — 245 245 Total 471,052 146,982 618,034 Timing of revenue recognition At a point in time 38,336 47,124 85,460 Over a period 432,716 99,858 532,574 Total 471,052 146,982 618,034 Revenues by region United States 236,009 101,593 337,602 Germany 24,279 22,573 46,852 France 16,876 13,715 30,591 United Kingdom 98,735 5,905 104,640 Rest of the world 95,153 3,196 98,349 Total 471,052 146,982 618,034 The following schedule shows the revenue in the financial year 2020: in k€ EVT Execute EVT Innovate Evotec Group Revenues Service fees and FTE-based research payments 366,946 93,648 460,594 Material recharges 20,728 1,107 21,835 Compound access fees 1,361 — 1,361 Milestone fees 5,059 12,033 17,092 Licenses — 42 42 Total 394,094 106,830 500,924 Timing of revenue recognition At a certain time 25,787 13,140 38,927 Over a period 368,307 93,690 461,997 Total 394,094 106,830 500,924 Revenues by region United States 189,488 58,360 247,848 Germany 19,529 24,792 44,321 France 21,499 15,561 37,060 United Kingdom 89,258 4,729 93,987 Rest of the world 74,320 3,388 77,708 Total 394,094 106,830 500,924 |
Schedule of transaction price allocated to the remaining performance obligation | 31 Dec 31 Dec 31 Dec 2022 2021 2020 k€ k€ k€ Within one year 405,710 225,061 377,216 After one year 158,068 67,619 69,328 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of average currency rates | The following table shows the average currency rates as well as the currency rates on 31 December 2022 and 2021 each against the Euro: Average rate 2022 2021 31 December 01 January - 01 January - 31 December 31 December 2022 2021 € € € € USD 0.9496 0.8455 0.9376 0.8829 GBP 1.1727 1.1633 1.1275 1.1901 |
Currency risks | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of sensitivity analysis | Variance 2022 Variance 2021 Variance 2020 Profit and Profit and Profit and Equity Loss Equity Loss Equity Loss k€ k€ k€ k€ k€ k€ USD (10% strengthening) 31,007 31,007 42,053 42,053 11,321 11,321 USD (10% weakening) (31,007) (31,007) (42,053) (42,053) (11,321) (11,321) GBP (10% strengthening) 3,967 3,967 6,643 6,643 5,702 5,702 GBP (10% weakening) (3,967) (3,967) (6,643) (6,643) (5,702) (5,702) EUR (10% strengthening) 34,974 34,974 48,699 48,699 17,032 17,032 EUR (10% weakening) (34,974) (34,974) (48,699) (48,699) (17,032) (17,032) |
Interest rate risks | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of sensitivity analysis | The fair values of the loans and current investments with variable market interest rates as of 31 December 2022 and 2021 would vary by the following amounts: 31 Dec 31 Dec 2022 2021 k€ k€ Variable interest rate +1% point 3,014 2,570 Variable interest rate (1)% point (1,714) (827) |
Risks (Tables)
Risks (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks | |
Schedule of contractual maturities of financial liabilities | 31 Dec 2022 Carrying Contractual Due in Due in More than amount cash flow 1 year 2 - 5 years 5 years k€ k€ k€ k€ k€ Non-derivative financial liabilities Loans (329,851) (345,522) (7,266) (272,749) (65,507) Lease obligations (176,823) (186,894) (19,422) (78,152) (89,320) Contingent consideration (306) (372) (76) (291) (5) Trade accounts payable (97,277) (97,277) (97,277) — — Other financial liabilities (977) (977) (977) — — Total non-derivative financial liabilities (605,234) (631,042) (125,018) (351,192) (154,832) Derivative financial liabilities Interest rate swaps/FX forwards (7,358) (7,358) (6,965) (393) — Total derivative financial liabilities (7,358) (7,358) (6,965) (393) — 31 Dec 2021 Carrying Contractual Due in Due in More than amount cash flow 1 year 2 - 5 years 5 years k€ k€ k€ k€ k€ Non-derivative financial liabilities Loans (362,480) (382,867) (40,467) (253,391) (89,009) Lease obligations (150,437) (175,040) (17,343) (69,396) (88,301) Contingent consideration (1,103) (1,156) (1,156) — — Trade accounts payable (72,598) (72,598) (72,598) — — Other financial liabilities (4,017) (4,017) (4,017) — — Total non-derivative financial liabilities (590,635) (635,678) (135,581) (322,787) (177,310) Derivative financial liabilities Interest rate swaps/FX forwards (9,344) (9,344) (7,423) (1,660) (261) Total derivative financial liabilities (9,344) (9,344) (7,423) (1,660) (261) |
Schedule of total assets, equity, equity ratio and net cash | 31 Dec 31 Dec 2022 2021 k€ k€ Total assets 2,257,247 2,235,161 Equity attributable to the shareholders of Evotec SE 1,187,184 1,377,685 Equity ratio (in )% 52.6 % 61.6 % Net cash (91,518) 186,409 |
Schedule of maximum exposure to credit risk for trade receivables | 31 Dec 31 Dec 2022 2021 k€ k€ United States 92,034 78,543 France 24,429 17,098 United Kingdom 20,451 12,391 Germany 7,767 6,283 Rest of Europe 13,622 10,363 Rest of the world 10,350 7,400 168,653 132,078 |
Schedule of reconciliation of cash flows from financing activities to the changes in financial liabilities | Lease Loan liabilities obligations Loan notes k€ k€ k€ As of 1 Jan 2022 362,480 150,437 3 Proceeds from issuance of loans — — — Repayment (34,067) (19,046) — Cashflow from financing activities (34,067) (19,046) — Disposal of finance lease obligation — (232) — Foreign currency translation — (1,120) — Changes in fair value — — — Interest increase 1,438 4,068 — Issue of finance lease obligation — 42,716 — As of 31 Dec 2022 329,851 176,823 3 Lease Loan liabilities obligations Loan notes k€ k€ k€ As of 1 Jan 2021 346,411 145,554 3 Proceeds from issuance of loans 30,791 — — Repayment (16,018) (19,770) — Cashflow from financing activities 14,773 (19,770) — Disposal of finance lease obligation — (58) — Foreign currency translation — 6,691 — Changes in fair value 160 — — Interest increase 1,136 3,728 — Issue of finance lease obligation — 14,292 — As of 31 Dec 2021 362,480 150,437 3 |
Fair values (Tables)
Fair values (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair values | |
Summary of fair values of financial assets and liabilities other than classified at amortized cost | 31 Dec 2022 31 Dec 2021 Classification Carrying Fair Carrying Fair in k€ according to IFRS 9 amount Value amount value Investments Fair value through other comprehensive income 311,899 311,899 158,908 158,908 Long-term investments Fair value through profit and loss 122,477 122,477 268,793 268,793 Assets from derivative financial instruments Fair value through profit and loss 8,215 8,215 0 0 Liabilities from derivative financial instruments Fair value through profit and loss (7,358) (7,358) (9,344) (9,344) Contingent consideration Fair value through profit and loss (306) (306) (1,103) (1,103) 434,927 434,927 417,254 417,254 Unrecognised (gain)/loss — — |
Summary of financial assets and financial liabilities to the three levels of the fair value hierarchy | The following table allocates financial assets and financial liabilities to the three levels of the fair value hierarchy as defined in IFRS 13: 31 Dec 2022 in k€ Level 1 Level 2 Level 3 Total Assets at fair value through other comprehensive income 311,899 — — 311,899 Assets at fair value through profit and loss 70,133 8,215 52,344 130,692 Liabilities at fair value through other comprehensive income — — — — Liabilities at fair value through profit and loss — (7,358) (306) (7,664) 31 Dec 2021 in k€ Level 1 Level 2 Level 3 Total Assets at fair value through other comprehensive income 158,908 — — 158,908 Assets at fair value through profit and loss 244,866 — 23,927 268,793 Liabilities at fair value through other comprehensive income — — — — Liabilities at fair value through profit and loss — (9,344) (1,103) (10,447) |
Summary of movement of financial assets and liabilities accounted for at fair values at level 3 | Other Contingent in k€ Note investments consideration Balance at 1 Jan 2022 23,927 (1,103) Exchange rate differences — — Addition (11);(18) 25,846 (14) Additions due to discontinuation of the use of equity method — — Consumption — — Reclassification to Liabilities — — Net income/expense effected (11) 2,571 811 Balance on 31 Dec 2022 52,344 (306) Other Contingent in k€ Note investments consideration Balance at 1 Jan 2021 19,289 (6,381) Exchange rate differences — (268) Addition (11);(18) 6,647 — Additions due to discontinuation of the use of equity method — — Consumption — 445 Reclassification to Liabilities — 3,571 Net income/expense effected (11) (2,009) 1,530 Balance on 31 Dec 2021 23,927 (1,103) |
Summary of sensitivity analysis of fair value measurement to changes in unobservable inputs | 2022 2021 Net result Net result in k€ Increase Decrease Increase Decrease Contingent consideration Discount rate (movement of 1.5 %-points) (7) 7 (11) 11 Commercialization success rate (movement of 10 %-points) — — 109 (109) Long-term investments Discount rate (movement of 1.5 %-points) (8,478) 12,539 (4,118) 6,279 |
Pension plan (Tables)
Pension plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Pension plan | |
Summary of assumptions used for calculation of defined benefit pension plan obligation | 31 Dec 31 Dec 2022 2021 Actuarial interest rate 3.35 % 0.80 % Salary increases 3.00 % 1.90 % Employee turnover 0% - 2.51 % 0% - 1.10 % Retirement age 62 years 62 years Duration 8.7 years 9.2 years |
Summary of sensitivity of the actuarial interest rate and the resulting change of the relating pension provision | 31 Dec 31 Dec in k€ 2022 2021 Actuarial interest rate +0.50 %-points (550) (626) Actuarial interest rate -0.50 %-points 592 676 |
Summary of pension provisions | 31 Dec 31 Dec in k€ 2022 2021 Pension provision at beginning of the year 14,428 14,441 Addition at acquisition date 553 — Benefit payments from the employer (692) (468) Included in other comprehensive income: Actuarial gains/losses from: Changes in financial assumptions (1,899) (551) Experience adjustments 469 (116) Impact of changes in demographic assumptions 10 3 Included in net income: Current service costs 1,282 1,021 Interest cost 110 98 Pension provision at year-end 14,261 14,428 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and contingencies | |
Summary of future minimum lease payments under non-cancellable lease agreements | 31 Dec 31 Dec 2022 2021 k€ k€ Less than one year 1,561 801 Between one and five years 16,373 10,595 More than five years 44,979 46,474 Total 62,913 57,870 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions | |
Summary of Related party transactions | Revenues from Cost of Contracts/ revenue/ Trade accounts Other financial Interest income Interest expense receivables assets Other liabilities 1. Jan-31. Dec 2022 1. Jan-31. Dec 2022 31. Dec 2022 31. Dec 2022 31. Dec 2022 Transactions with k EUR k EUR k EUR k EUR k EUR associated companies and joint ventures 36,677 — 3,146 925 — other related party companies — — — — — Revenues from Cost of Contracts/ revenue/ Trade Interest income Interest expense accounts Other financial 1. Jan- 1. Jan- Receivables assets Other liabilities 31. Dec 2021 31. Dec 2021 31. Dec 2021 31. Dec 2021 31. Dec 2021 Transactions with k EUR k EUR k EUR k EUR k EUR associated companies and joint ventures 28,868 146 2,643 153 — other related party companies — — — — — Revenues from Cost of Contracts/ revenue/ Trade Interest income Interest expense accounts Other financial 1. Jan- 1. Jan- receivables assets Other liabilities 31. Dec 2020 31. Dec 2020 31. Dec 2020 31. Dec 2020 31. Dec 2020 Transactions with k EUR k EUR k EUR k EUR k EUR associated companies and joint ventures 35,450 497 2,984 6,435 5,635 other related party companies 32,961 — 6,492 — — |
Other disclosures (Tables)
Other disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Remuneration | |
Schedule of direct and indirect voting rights in subsidiaries and other investments | 2022 Company’s voting rights % Subsidiaries Aptuit Global LLC, Princeton, United States 100.00 Aptuit (Verona) SRL, Verona, Italy 100.00 Aptuit (Oxford) Ltd., Abingdon, United Kingdom 100.00 Aptuit (Potters Bar) Ltd., Abingdon, United Kingdom 100.00 Cyprotex Discovery Ltd., Manchester, United Kingdom 100.00 Cyprotex Ltd., Manchester, United Kingdom 100.00 Cyprotex US, LLC., Framingham, United States 100.00 Evotec (France) SAS, Toulouse, France 100.00 Evotec ID (Lyon) SAS, Marcy l’Étoile, France 100.00 Evotec (Hamburg) GmbH, Hamburg, Germany 100.00 Evotec GT GmbH, Orth an der Donau, Austria 100.00 Evotec (India) Private Limited, Thane, India* 100.00 Evotec International GmbH, Hamburg, Germany 100.00 Evotec (München) GmbH, Martinsried, Germany 100.00 Evotec (UK) Ltd., Abingdon, United Kingdom 100.00 Evotec (US), Inc., Princeton, United States 100.00 Just-Evotec Biologics, Inc., Seattle, United States 100.00 Just-Evotec Biologics EU SAS, Toulouse, France 100.00 Evotec Drug Substance (Germany), Halle, Germany 100.00 Evotec (Modena) Srl., Medolla, Italy 100.00 2022 Company’s voting rights % Associates and joint ventures Ananke Therapeutics Inc., Boston, United States 20.09 Autobahn Labs, Palo Alto, United States 35.94 Breakpoint Therapeutics GmbH, Hamburg, Germany 34.12 Celmatix Inc., New York, United States 39.09 Curexsys GmbH, Göttingen, Germany 43.44 Dark Blue Therapeutics Ltd., Oxford, United Kingdom 39.11 Eternygen GmbH, Berlin, Germany 24.97 NephThera GmbH, Hamburg, Germany 50.00 Pancella Inc, Toronto, Canada 12.65 Quantro Therapeutics GmbH, Wien, Austria 38.79 Topas Therapeutics GmbH, Hamburg, Germany 22.14 Tucana Biosciences Inc., Boston, United States 26.92 Other Investments Aeovian Pharmaceuticals Inc., San Francisco, United States 3.79 ArgoBio SAS, Paris, France 10.02 Aurobac Therapeutics SAS, Lyon, France 12.50 Blacksmith Medicines Inc., San Diego, United States 18.00 Cajal Neuroscience Inc., Seattle, United States 1.67 Carma Fund I, Munich, Germany 10.00 Carrick Therapeutics Ltd., Dublin, Ireland 3.48 Centauri Therapeutics Ltd., Sandwich (Kent), United Kingdom 13.17 Curie Bio LLC, Boston, United States 0.11 Curie Bio Seed Fund I L.P., Boston, United States 2.82 Exscientia plc (formely Exscientia Ltd.), Oxford, United Kingdom 11.42 Extend Srl, Rome, Italy 10.00 Fibrocor LLP, Toronto, Canada 16.26 Fibrocor Therapeutics Inc., Toronto, Canada 8.98 IMIDomics Inc., San Francisco, United States 11.77 Immunitas, Therapeutics, Inc., Waltham, United States 6.17 Leon Nanodrugs GmbH, München, Germany 13.24 Mission BioCapital V LP, Cambridge, United States 3.64 OxVax Ltd., Oxford, United Kingdom 12.22 Sernova Corp., Ontario, Canada 5.16 Tubulis GmbH, Munich, Germany 6.90 * in voluntary liquidation |
Management Board | |
Remuneration | |
Schedule of remuneration granted to the members of the Management Board and remuneration accrued for the members of the Supervisory Board | 2022 2022 2022 2022 2022 Fixed Variable Share Performance Fair value of remuneration remuneration and Restricted SPAs and Total (short-term) (short-term) Share Awards RSAs granted remuneration k€ k€ in pcs k€ k€ Dr. Werner Lanthaler 741 578 27,040 1,200 2,519 Dr. Cord Dohrmann 469 335 13,520 600 1,404 Dr. Craig Johnstone 442 270 48,500 1,400 2,112 Enno Spillner 387 216 10,816 480 1,083 Dr. Matthias Evers 304 180 39,353 900 1,384 Total 2,343 1,579 139,229 4,580 8,502 2021 2021 2021 2021 2021 Fixed Variable Share Performance Fair value of remuneration remuneration and Restricted SPAs and Total (short-term) (short-term) Share Awards RSAs granted remuneration k€ k€ in pcs k€ k€ Dr. Werner Lanthaler 711 590 100,769 3,313 4,614 Dr. Cord Dohrmann 451 275 40,956 1,348 2,074 Dr. Craig Johnstone 382 234 9,439 296 912 Enno Spillner 384 220 8,884 278 882 Total 1,928 1,319 160,048 5,235 8,482 |
Supervisory Board | |
Remuneration | |
Schedule of remuneration granted to the members of the Management Board and remuneration accrued for the members of the Supervisory Board | 2022 2021 Remuneration Remuneration k€ k€ Prof. Dr. Iris Löw-Friedrich 150.0 113.6 Roland Sackers 95.0 90.5 Dr. Mario Polywka 60.0 55.5 Dr. Elaine Sullivan 65.3 60.0 Kasim Kutay 28.4 60.0 Dr. Constanze Ulmer-Eilfort 73.2 32.7 Prof. Dr. Wolfgang Plischke — 68.2 Camilla Macapili Languille 31.6 — Total 503.5 480.5 |
Summary of significant accoun_4
Summary of significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings and leasehold improvements | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 30 years |
Buildings and leasehold improvements | Minimum | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 3 years |
Plant, machinery and equipment | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 15 years |
Plant, machinery and equipment | Minimum | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 4 years |
Furniture and fixtures | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 15 years |
Furniture and fixtures | Minimum | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 3 years |
Summary of significant accoun_5
Summary of significant accounting policies - Leases (Details) - Right-of use assets | 12 Months Ended |
Dec. 31, 2022 | |
Buildings | Minimum | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 1 year |
Buildings | Maximum | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 20 years |
Plant and machinery | Minimum | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 2 years |
Plant and machinery | Maximum | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 7 years |
Motor vehicles | Minimum | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 3 years |
Motor vehicles | Maximum | |
Disclosure of detailed information about property, plant and equipment | |
Estimated useful lives (in years) | 4 years |
Summary of significant accoun_6
Summary of significant accounting policies - Intangible assets, excluding goodwill (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Trademarks | Minimum | |
Disclosure of detailed information about intangible assets | |
Useful lives of intangible assets, excluding goodwill (in years) | 2 years |
Trademarks | Maximum | |
Disclosure of detailed information about intangible assets | |
Useful lives of intangible assets, excluding goodwill (in years) | 10 years |
Developed technology | Minimum | |
Disclosure of detailed information about intangible assets | |
Useful lives of intangible assets, excluding goodwill (in years) | 6 years |
Developed technology | Maximum | |
Disclosure of detailed information about intangible assets | |
Useful lives of intangible assets, excluding goodwill (in years) | 18 years |
Patents and licences | Maximum | |
Disclosure of detailed information about intangible assets | |
Useful lives of intangible assets, excluding goodwill (in years) | 15 years |
Summary of significant accoun_7
Summary of significant accounting policies - Income taxes (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement | |||
Tax rate | 32.28% | 32.28% | 32.28% |
Minimum | Domestic | |||
Statement | |||
Tax rate | 27% | 27% | 27% |
Minimum | Foreign | |||
Statement | |||
Tax rate | 19% | 19% | 19% |
Maximum | Domestic | |||
Statement | |||
Tax rate | 32% | 32% | 32% |
Maximum | Foreign | |||
Statement | |||
Tax rate | 31% | 28% | 31% |
Summary of significant accoun_8
Summary of significant accounting policies - Net income per share (Details) - shares | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Summary of significant accounting policies | |||||
Number of shares issued | 176,952,653 | 176,608,195 | 163,915,000 | 150,903,000 | |
Treasury shares | (249,915) | (249,915) | (250,000) | (250,000) | |
Effect of weighted average share capital increase | 316,000 | 1,953,000 | 2,508,000 | ||
Effect of weighted average share options exercised | 788,000 | 591,000 | |||
Weighted average number of ordinary shares 31 December | 176,674,341 | 166,405,926 | 153,752,241 | [1] | |
Number of potentially dilutive shares to be issued from stock options and Share Performance Awards | 463,415 | 722,286 | 1,172,673 | ||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Segment information (Details)
Segment information (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segments | ||||
Revenues | € 751,448 | € 618,034 | € 500,924 | [1] |
Operating income (loss) | 20,850 | 40,996 | 48,556 | [1] |
EVT Execute | ||||
Segments | ||||
Revenues | 546,718 | 471,052 | 394,094 | |
EVT Execute | Contributions | ||||
Segments | ||||
Revenues | 10,551 | 8,565 | 4,648 | |
EVT Innovate | ||||
Segments | ||||
Revenues | 204,730 | 146,982 | 106,830 | |
Operating segments | EVT Execute | ||||
Segments | ||||
Revenues | 735,635 | 610,168 | 509,870 | |
Operating income (loss) | 32,523 | 63,109 | 77,362 | |
Operating segments | EVT Execute | Contributions | ||||
Segments | ||||
Revenues | 10,551 | 8,565 | 4,648 | |
Operating segments | EVT Innovate | ||||
Segments | ||||
Revenues | 204,730 | 146,982 | 106,830 | |
Operating income (loss) | (11,673) | (22,113) | (28,806) | |
Intersegment eliminations | ||||
Segments | ||||
Revenues | € (188,917) | € (139,116) | € (115,776) | |
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Segment information - Non curre
Segment information - Non current assets (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Geographical areas | ||
Non-current Assets | € 1,042,206 | € 848,069 |
United States | ||
Geographical areas | ||
Non-current Assets | 231,439 | 209,508 |
United Kingdom | ||
Geographical areas | ||
Non-current Assets | 211,115 | 196,543 |
Italy | ||
Geographical areas | ||
Non-current Assets | 227,113 | 188,858 |
France | ||
Geographical areas | ||
Non-current Assets | 205,749 | 129,178 |
Germany | ||
Geographical areas | ||
Non-current Assets | 160,970 | 105,283 |
Switzerland | ||
Geographical areas | ||
Non-current Assets | 14,089 | |
Austria | ||
Geographical areas | ||
Non-current Assets | 3,914 | 2,697 |
Canada | ||
Geographical areas | ||
Non-current Assets | € 1,906 | € 1,913 |
Acquisitions (Details)
Acquisitions (Details) - EUR (€) | 2 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Jul. 01, 2022 | Dec. 31, 2021 | |
Acquisitions | ||||||
Earn-out provision | € 306,000 | € 306,000 | € 306,000 | € 1,103,000 | ||
Gain recognised in bargain purchase transaction | 4,908,000 | |||||
Evotec (Modena) Srl., Medolla, Italy | ||||||
Acquisitions | ||||||
Ownership interest acquired (in percent) | 100% | |||||
Purchase price in cash | € 23,000,000 | |||||
Contingent consideration | 14,000 | |||||
Earn-out provision | 14,000 | 14,000 | 14,000 | |||
Intangible assets | 727,000 | |||||
Goodwill | 19,622,000 | |||||
Net profit (loss) since acquisition date | 159,000 | |||||
Revenue since acquisition date | € 1,715,000 | |||||
Revenue, combined entity | 1,781,000 | |||||
Net profit (loss), combined entity | (889,000) | |||||
Transaction costs | 773,000 | |||||
Evotec (Modena) Srl., Medolla, Italy | Developed technology for cell-based gene therapy product | ||||||
Acquisitions | ||||||
Intangible assets | 120,000 | |||||
Evotec (Modena) Srl., Medolla, Italy | Two other developed technologies | ||||||
Acquisitions | ||||||
Intangible assets | € 0 | |||||
Evotec Drug Substance (Germany), Halle, Germany | ||||||
Acquisitions | ||||||
Ownership interest acquired (in percent) | 100% | |||||
Purchase price in cash | € 1 | |||||
Intangible assets | 23,000 | |||||
Order backlog | (2,200,000) | |||||
Fair value adjustment of inventories | (981,000) | |||||
Gain recognised in bargain purchase transaction | € 4,909,000 | |||||
Net profit (loss) since acquisition date | (559,000) | |||||
Revenue since acquisition date | € 2,097,000 | |||||
Revenue, combined entity | 5,396,000 | |||||
Net profit (loss), combined entity | (5,261,000) | |||||
Transaction costs | € 943,000 |
Acquisitions - Fair Value at th
Acquisitions - Fair Value at the date of acquisition (Details) - EUR (€) € in Thousands | 12 Months Ended | ||||
Nov. 01, 2022 | Jul. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2020 | [1] | |
Fair values at date of acquisition | |||||
Bargain Purchase | € (4,908) | ||||
Cash outflow on acquisition | € 20,859 | € 10,929 | |||
Evotec (Modena) Srl., Medolla, Italy | |||||
Fair values at date of acquisition | |||||
Cash and cash equivalents | € 263 | ||||
Trade accounts receivables | 244 | ||||
Inventories | 29 | ||||
Property, plant and equipment | 3,809 | ||||
Intangible assets | 727 | ||||
Deferred tax asset | 344 | ||||
Other assets | 374 | ||||
Trade accounts payable | (382) | ||||
Current liabilities | (564) | ||||
Non-current liabilities | (1,009) | ||||
Other liabilities | (370) | ||||
Other accrued liabilities | (73) | ||||
Net assets acquired | 3,392 | ||||
Goodwill | 19,622 | ||||
Cost of acquisition / Consideration transferred | 23,014 | ||||
Contingent consideration | (14) | ||||
Cash and cash equivalents acquired | (263) | ||||
Cash outflow on acquisition | € 22,737 | ||||
Evotec Drug Substance (Germany), Halle, Germany | |||||
Fair values at date of acquisition | |||||
Cash and cash equivalents | € 16,099 | ||||
Trade accounts receivables | 1,210 | ||||
Inventories | 2,903 | ||||
Prepaid expenses | 77 | ||||
Property, plant and equipment | 6,213 | ||||
Intangible assets | 23 | ||||
Deferred tax asset | 725 | ||||
Trade accounts payable | (43) | ||||
Current provisions | (609) | ||||
Contract liabilities | (705) | ||||
Current tax payables | (76) | ||||
Other payables | (7) | ||||
Non-current provisions | (553) | ||||
Non-current lease liabilities | (3,940) | ||||
Order intake | (2,200) | ||||
Net assets acquired | 19,117 | ||||
Bargain Purchase | (4,909) | ||||
Cost of acquisition / Consideration transferred | 14,208 | ||||
Cash and cash equivalents acquired | (16,099) | ||||
Purchase price for shareholder loan | (14,208) | ||||
Cash outflow on acquisition | € (1,891) | ||||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Cash, cash equivalents and in_2
Cash, cash equivalents and investments (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash and cash equivalents and investments | Accumulated impairment | ||
Financial instruments | ||
Financial assets | € (225) | € (239) |
Corporate bonds | ||
Financial instruments | ||
Unrealized gains of assets recognized in other comprehensive income | 12,064 | 1,448 |
Cash balances with credit institutions | ||
Financial instruments | ||
Restricted cash balances | € 14,458 | € 7,736 |
Trade accounts receivables (Det
Trade accounts receivables (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade receivables | ||
Trade accounts receivables | € 168,653 | € 132,078 |
Minimum | ||
Trade receivables | ||
Expected credit loss rate | 0.078% | 0.024% |
Maximum | ||
Trade receivables | ||
Expected credit loss rate | 16.758% | 21.80% |
Gross/Acquisition and manufacturing costs | Not past due | ||
Trade receivables | ||
Trade accounts receivables | € 136,372 | € 95,556 |
Gross/Acquisition and manufacturing costs | 1-30 days | ||
Trade receivables | ||
Trade accounts receivables | 24,425 | 31,222 |
Gross/Acquisition and manufacturing costs | 31-120 days | ||
Trade receivables | ||
Trade accounts receivables | 6,301 | 5,164 |
Gross/Acquisition and manufacturing costs | More than 120 days | ||
Trade receivables | ||
Trade accounts receivables | 4,778 | 2,236 |
Accumulated impairment | ||
Trade receivables | ||
Trade accounts receivables | (3,223) | (2,100) |
Accumulated impairment | Specific default risk | ||
Trade receivables | ||
Trade accounts receivables | (2,312) | (1,584) |
Accumulated impairment | Expected credit risk in accordance with IFRS 9 | ||
Trade receivables | ||
Trade accounts receivables | (911) | (516) |
Accumulated impairment | 1-30 days | ||
Trade receivables | ||
Trade accounts receivables | (67) | (30) |
Accumulated impairment | 31-120 days | ||
Trade receivables | ||
Trade accounts receivables | (323) | (89) |
Accumulated impairment | More than 120 days | ||
Trade receivables | ||
Trade accounts receivables | € (2,833) | € (1,981) |
Inventories (Details)
Inventories (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories | ||
Raw materials | € 27,917 | € 25,043 |
Work-in-progress | 1,908 | 750 |
Total inventories | 29,825 | 25,793 |
Accumulated impairment | ||
Inventories | ||
Total inventories | € (1,679) | € (595) |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid expenses and other current assets | ||
Prepaid expenses | € 16,948 | € 19,210 |
Other | 40,178 | 20,685 |
Total prepaid expenses and other current assets | 57,126 | 39,895 |
VAT-related receivables | 19,035 | € 14,943 |
Positive fair values of forward exchange contracts | € 8,215 |
Long-term Investments account_3
Long-term Investments accounted for using the equity method (Details) € in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 EUR (€) | Jun. 30, 2021 | Dec. 31, 2020 EUR (€) | Dec. 31, 2022 EUR (€) item | Dec. 31, 2021 EUR (€) | |
Investments | |||||
Equity book value limit | € 10,000 | ||||
Evotec's share of earnings limit | € 2,000 | ||||
Number of investments classified as significant | item | 5 | ||||
Number of investments classified as insignificant | item | 8 | ||||
Balance at beginning | € 13,068 | € 39,710 | |||
Additions | 18,940 | 10,911 | |||
Pro rata net result | (15,965) | (16,570) | |||
Loss against other current assets | 977 | ||||
Impairment | (2,497) | ||||
Discontinued use of equity method | (19,463) | ||||
Net book value at end | € 13,068 | € 39,710 | 16,043 | 13,068 | |
NephThera GmbH | |||||
Investments | |||||
Balance at beginning | 486 | ||||
Pro rata net result | (486) | ||||
Net book value at end | 486 | ||||
Autobahn Labs LLC | |||||
Investments | |||||
Additions | 3,634 | ||||
Pro rata net result | (2,263) | ||||
Net book value at end | 1,371 | ||||
Exscientia plc | |||||
Investments | |||||
Balance at beginning | 21,040 | ||||
Pro rata net result | (1,577) | ||||
Discontinued use of equity method | (19,463) | ||||
Net book value at end | € 21,040 | ||||
Proportion of ownership interest held (in percent) | 11.70% | 14.84% | 20.32% | ||
Breakpoint Therapeutics GmbH | |||||
Investments | |||||
Balance at beginning | 2,774 | 1,918 | |||
Additions | 3,667 | ||||
Pro rata net result | (2,774) | (2,811) | |||
Net book value at end | € 2,774 | € 1,918 | 2,774 | ||
Curexsys GmbH | |||||
Investments | |||||
Balance at beginning | 4,212 | ||||
Additions | 2,564 | ||||
Pro rata net result | (2,809) | ||||
Net book value at end | 4,212 | 3,967 | 4,212 | ||
Dark Blue Therapeutics Ltd | |||||
Investments | |||||
Balance at beginning | 405 | ||||
Additions | 7,167 | ||||
Pro rata net result | (3,550) | ||||
Net book value at end | 405 | 4,022 | 405 | ||
Topas Therapeutics GmbH | |||||
Investments | |||||
Balance at beginning | 1,497 | ||||
Additions | 1,821 | ||||
Pro rata net result | (2,913) | ||||
Net book value at end | 1,497 | 405 | 1,497 | ||
Tucana Biosciences Inc. | |||||
Investments | |||||
Additions | 2,504 | ||||
Insignificant Investments | |||||
Investments | |||||
Balance at beginning | 4,180 | ||||
Additions | 3,754 | ||||
Pro rata net result | (1,656) | ||||
Net book value at end | 4,180 | 6,278 | 4,180 | ||
Insignificant investments | |||||
Investments | |||||
Balance at beginning | € 10,294 | 16,266 | |||
Additions | 7,244 | ||||
Pro rata net result | (11,696) | ||||
Loss against other current assets | 977 | ||||
Impairment | (2,497) | ||||
Net book value at end | € 10,294 | € 16,266 | € 10,294 |
Long-term Investments account_4
Long-term Investments accounted for using the equity method - Financial Information (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | [1] | |
Investments | ||||
Current assets | € 1,073,671 | € 1,100,940 | ||
Non-current assets | 1,183,576 | 1,134,221 | ||
Current liabilities | 337,706 | 324,516 | ||
Non-current liabilities | 732,357 | 532,960 | ||
Revenues from 01 Jan to 31 Dec | 751,448 | 618,034 | € 500,924 | |
Net result from 01 Jan to 31 Dec | (175,655) | 215,510 | € 6,278 | |
Autobahn Labs LLC | ||||
Investments | ||||
Current assets | 4,029 | |||
Non-current assets | 6 | |||
Current liabilities | 672 | |||
Net result from 01 Jan to 31 Dec | (6,144) | |||
Breakpoint Therapeutics GmbH | ||||
Investments | ||||
Current assets | 7,204 | 18,501 | ||
Non-current assets | 2 | 2 | ||
Current liabilities | 1,068 | 719 | ||
Non-current liabilities | 143 | |||
Net result from 01 Jan to 31 Dec | (11,789) | (8,283) | ||
Curexsys GmbH | ||||
Investments | ||||
Current assets | 3,409 | |||
Non-current assets | 484 | |||
Current liabilities | 302 | |||
Non-current liabilities | 85 | |||
Revenues from 01 Jan to 31 Dec | 15 | |||
Net result from 01 Jan to 31 Dec | (6,940) | |||
Dark Blue Therapeutics Ltd | ||||
Investments | ||||
Current assets | 14,244 | |||
Non-current assets | 32 | |||
Current liabilities | 1,065 | |||
Non-current liabilities | 8,208 | |||
Net result from 01 Jan to 31 Dec | 1,025 | |||
Topas Therapeutics GmbH | ||||
Investments | ||||
Current assets | 6,795 | |||
Current liabilities | 843 | |||
Net result from 01 Jan to 31 Dec | € (9,340) | |||
NephThera GmbH | ||||
Investments | ||||
Current assets | 8,013 | |||
Non-current assets | 10 | |||
Current liabilities | 525 | |||
Net result from 01 Jan to 31 Dec | € (5,769) | |||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Other long-term investments (De
Other long-term investments (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments other than equity method investments | ||
Balance at 1 January | € 268,793 | € 19,289 |
Additions | 46,137 | 6,647 |
Additions due to discontinue use of equity method | 19,463 | |
Adjustments at fair value, affecting net income | (172,159) | 223,394 |
Adjustments at fair value, affecting OCI | (11,729) | |
Net book value 31 December | 131,042 | € 268,793 |
Exscientia plc | ||
Investments other than equity method investments | ||
Adjustments at fair value, affecting net income | € (174,729) |
Property, plant and equipment_2
Property, plant and equipment (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | € 484,597 | € 337,297 |
Amount end of the year | 650,201 | 484,597 |
Gross/Acquisition and manufacturing costs | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | 686,086 | 481,879 |
Foreign currency translation | 4,894 | 17,755 |
Additions | 228,565 | 190,816 |
Business combination | 10,044 | |
Disposals | 8,779 | 4,364 |
Amount end of the year | 920,810 | 686,086 |
Depreciation, amortisation and write-downs | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | (201,489) | (144,582) |
Foreign currency translation | 719 | (5,167) |
Additions | (72,677) | (55,596) |
Disposals | (2,838) | (3,856) |
Amount end of the year | (270,609) | (201,489) |
Buildings and leasehold improvements | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | 315,088 | 174,583 |
Amount end of the year | 364,603 | 315,088 |
Buildings and leasehold improvements | Gross/Acquisition and manufacturing costs | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | 378,467 | 215,055 |
Foreign currency translation | 3,234 | 9,099 |
Additions | 61,673 | 83,535 |
Business combination | 6,534 | |
Disposals | 3,573 | 3,022 |
Reclass | 16,727 | 73,800 |
Amount end of the year | 463,062 | 378,467 |
Buildings and leasehold improvements | Depreciation, amortisation and write-downs | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | (63,379) | (40,472) |
Foreign currency translation | 196 | (1,919) |
Additions | (33,126) | (23,463) |
Disposals | (44) | (2,552) |
Reclass | (2,194) | (77) |
Amount end of the year | (98,459) | (63,379) |
Plant, machinery and equipment | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | 113,710 | 81,176 |
Amount end of the year | 149,629 | 113,710 |
Plant, machinery and equipment | Gross/Acquisition and manufacturing costs | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | 227,611 | 168,224 |
Foreign currency translation | 839 | 4,576 |
Additions | 59,611 | 36,082 |
Business combination | 3,309 | |
Disposals | 3,101 | 443 |
Reclass | 1,667 | 19,172 |
Amount end of the year | 289,936 | 227,611 |
Plant, machinery and equipment | Depreciation, amortisation and write-downs | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | (113,901) | (87,048) |
Foreign currency translation | 355 | (2,628) |
Additions | (30,490) | (24,826) |
Disposals | (1,563) | (424) |
Reclass | 2,166 | 177 |
Amount end of the year | (140,307) | (113,901) |
Furniture and fixtures | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | 15,449 | 10,383 |
Amount end of the year | 19,588 | 15,449 |
Furniture and fixtures | Gross/Acquisition and manufacturing costs | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | 39,658 | 27,445 |
Foreign currency translation | (62) | 718 |
Additions | 11,663 | 7,546 |
Business combination | 107 | |
Disposals | 1,243 | 860 |
Reclass | 1,308 | 4,809 |
Amount end of the year | 51,431 | 39,658 |
Furniture and fixtures | Depreciation, amortisation and write-downs | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | (24,209) | (17,062) |
Foreign currency translation | 168 | (620) |
Additions | (9,061) | (7,307) |
Disposals | (1,231) | (880) |
Reclass | 28 | (100) |
Amount end of the year | (31,843) | (24,209) |
Assets under construction | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | 40,350 | 71,155 |
Amount end of the year | 116,381 | 40,350 |
Assets under construction | Gross/Acquisition and manufacturing costs | ||
Disclosure of detailed information about property, plant and equipment | ||
Amount beginning of the year | 40,350 | 71,155 |
Foreign currency translation | 883 | 3,362 |
Additions | 95,618 | 63,653 |
Business combination | 94 | |
Disposals | 862 | 39 |
Reclass | (19,702) | (97,781) |
Amount end of the year | € 116,381 | € 40,350 |
Property, plant and equipment -
Property, plant and equipment - Additional Information (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment | ||
Right-of-use assets | € 168,327 | € 145,038 |
Increase in property, plant and equipment | 165,604 | |
Just-Evotec Biologics EU SAS, Toulouse, France | ||
Disclosure of detailed information about property, plant and equipment | ||
Increase in property, plant and equipment | € 55,705 |
Leases - Right of use assets (D
Leases - Right of use assets (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | ||
Amount beginning of the year | € 484,597 | € 337,297 |
Amount end of the year | 650,201 | 484,597 |
Gross/Acquisition and manufacturing costs | ||
Leases | ||
Amount beginning of the year | 686,086 | 481,879 |
Foreign currency translation | 4,894 | 17,755 |
Additions | 228,565 | 190,816 |
Business combination | 10,044 | |
Disposals | 8,779 | 4,364 |
Amount end of the year | 920,810 | 686,086 |
Depreciation, amortisation and write-downs | ||
Leases | ||
Amount beginning of the year | (201,489) | (144,582) |
Foreign currency translation | 719 | (5,167) |
Additions | (72,677) | (55,596) |
Disposals | (2,838) | (3,856) |
Amount end of the year | (270,609) | (201,489) |
Plant, machinery and equipment | ||
Leases | ||
Amount beginning of the year | 113,710 | 81,176 |
Amount end of the year | 149,629 | 113,710 |
Plant, machinery and equipment | Gross/Acquisition and manufacturing costs | ||
Leases | ||
Amount beginning of the year | 227,611 | 168,224 |
Foreign currency translation | 839 | 4,576 |
Additions | 59,611 | 36,082 |
Business combination | 3,309 | |
Disposals | 3,101 | 443 |
Reclass | 1,667 | 19,172 |
Amount end of the year | 289,936 | 227,611 |
Plant, machinery and equipment | Depreciation, amortisation and write-downs | ||
Leases | ||
Amount beginning of the year | (113,901) | (87,048) |
Foreign currency translation | 355 | (2,628) |
Additions | (30,490) | (24,826) |
Disposals | (1,563) | (424) |
Reclass | 2,166 | 177 |
Amount end of the year | (140,307) | (113,901) |
Furniture and Fixtures | ||
Leases | ||
Amount beginning of the year | 15,449 | 10,383 |
Amount end of the year | 19,588 | 15,449 |
Furniture and Fixtures | Gross/Acquisition and manufacturing costs | ||
Leases | ||
Amount beginning of the year | 39,658 | 27,445 |
Foreign currency translation | (62) | 718 |
Additions | 11,663 | 7,546 |
Business combination | 107 | |
Disposals | 1,243 | 860 |
Reclass | 1,308 | 4,809 |
Amount end of the year | 51,431 | 39,658 |
Furniture and Fixtures | Depreciation, amortisation and write-downs | ||
Leases | ||
Amount beginning of the year | (24,209) | (17,062) |
Foreign currency translation | 168 | (620) |
Additions | (9,061) | (7,307) |
Disposals | (1,231) | (880) |
Reclass | 28 | (100) |
Amount end of the year | (31,843) | (24,209) |
Right-of use assets | ||
Leases | ||
Amount beginning of the year | 145,038 | 142,110 |
Amount end of the year | 168,325 | 145,038 |
Right-of use assets | Gross/Acquisition and manufacturing costs | ||
Leases | ||
Amount beginning of the year | 186,676 | 167,365 |
Foreign currency translation | (936) | 7,472 |
Additions | 39,037 | 14,292 |
Business combination | 3,962 | |
Disposals | 2,453 | |
Amount end of the year | 228,739 | 186,676 |
Right-of use assets | Depreciation, amortisation and write-downs | ||
Leases | ||
Amount beginning of the year | (41,638) | (25,255) |
Foreign currency translation | (117) | (2,717) |
Additions | (18,659) | (15,829) |
Disposals | (2,163) | |
Amount end of the year | (60,414) | (41,638) |
Right-of use assets | Buildings | ||
Leases | ||
Amount beginning of the year | 141,880 | 137,285 |
Amount end of the year | 166,955 | 141,880 |
Right-of use assets | Buildings | Gross/Acquisition and manufacturing costs | ||
Leases | ||
Amount beginning of the year | 177,602 | 158,454 |
Foreign currency translation | (919) | 7,442 |
Additions | 38,393 | 14,077 |
Business combination | 3,940 | |
Disposals | 2,453 | |
Reclass | 3,718 | 82 |
Amount end of the year | 222,734 | 177,602 |
Right-of use assets | Buildings | Depreciation, amortisation and write-downs | ||
Leases | ||
Amount beginning of the year | (35,722) | (21,169) |
Foreign currency translation | (8) | (2,573) |
Additions | (17,855) | (14,160) |
Disposals | (2,163) | |
Reclass | (2,194) | 17 |
Amount end of the year | (55,779) | (35,722) |
Right-of use assets | Plant, machinery and equipment | ||
Leases | ||
Amount beginning of the year | 2,693 | 4,443 |
Amount end of the year | 786 | 2,693 |
Right-of use assets | Plant, machinery and equipment | Gross/Acquisition and manufacturing costs | ||
Leases | ||
Amount beginning of the year | 8,077 | 8,382 |
Foreign currency translation | (17) | 30 |
Additions | 306 | |
Reclass | (3,678) | (335) |
Amount end of the year | 4,688 | 8,077 |
Right-of use assets | Plant, machinery and equipment | Depreciation, amortisation and write-downs | ||
Leases | ||
Amount beginning of the year | (5,384) | (3,939) |
Foreign currency translation | (109) | (120) |
Additions | (575) | (1,462) |
Reclass | 2,166 | 137 |
Amount end of the year | (3,902) | (5,384) |
Right-of use assets | Furniture and Fixtures | ||
Leases | ||
Amount beginning of the year | 465 | 382 |
Amount end of the year | 584 | 465 |
Right-of use assets | Furniture and Fixtures | Gross/Acquisition and manufacturing costs | ||
Leases | ||
Amount beginning of the year | 997 | 529 |
Additions | 338 | 215 |
Business combination | 22 | |
Reclass | (40) | 253 |
Amount end of the year | 1,317 | 997 |
Right-of use assets | Furniture and Fixtures | Depreciation, amortisation and write-downs | ||
Leases | ||
Amount beginning of the year | (532) | (147) |
Foreign currency translation | (24) | |
Additions | (229) | (207) |
Reclass | 28 | (154) |
Amount end of the year | € (733) | € (532) |
Leases - Carrying amounts of le
Leases - Carrying amounts of lease liabilities and the movements (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Amount beginning of the year | € 150,437 | € 145,554 | |
Foreign currency translation | (923) | 6,691 | |
Additions | 38,784 | 14,292 | |
Business combination | 3,962 | ||
Disposals | (232) | (58) | |
Accretion of interest | 3,841 | 3,728 | € 3,125 |
Payments | (19,046) | (19,770) | |
Amount end of the year | € 176,823 | € 150,437 | € 145,554 |
Leases - Lease liabilities (Det
Leases - Lease liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases | |||
Current portion of lease obligations | € 14,825 | € 14,473 | |
Long-term lease obligations | 161,998 | 135,964 | |
Total lease liabilities | € 176,823 | € 150,437 | € 145,554 |
Leases - Amounts recognised in
Leases - Amounts recognised in profit and loss (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Depreciation expense of right-of-use assets | € 18,659 | € 15,829 | € 16,035 |
Interest expense on lease liability | 3,841 | 3,728 | 3,125 |
Expense relating to short-term leases | 476 | 839 | 807 |
Expense relating to leases of low-value assets | 50 | 56 | 33 |
Total amount recognised in profit and loss | 23,026 | 20,452 | 20,000 |
Cash outflows for leases | € 19,046 | € 20,665 | € 21,014 |
Intangible assets, excluding _3
Intangible assets, excluding goodwill (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | € 30,851 | € 98,036 | ||
Impairment of intangible assets | (683) | € (3,244) | [1] | |
Amount end of the year | 23,819 | 30,851 | 98,036 | |
Gross/Acquisition and manufacturing costs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 186,623 | 245,836 | ||
Foreign currency translation | 34 | 2,381 | ||
Additions | 917 | 439 | ||
Business combination | 1,672 | |||
Disposals | 62,033 | |||
Amount end of the year | 189,246 | 186,623 | 245,836 | |
Depreciation, amortisation and write-downs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | (155,772) | (147,800) | ||
Foreign currency translation | 393 | (1,039) | ||
Additions | (10,048) | (12,012) | ||
Disposals | (5,762) | |||
Impairment of intangible assets | (683) | |||
Amount end of the year | (165,427) | (155,772) | (147,800) | |
Patents and licences | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 1,029 | 677 | ||
Amount end of the year | 1,534 | 1,029 | 677 | |
Patents and licences | Gross/Acquisition and manufacturing costs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 11,211 | 10,772 | ||
Additions | 439 | |||
Business combination | 1,672 | |||
Amount end of the year | 12,883 | 11,211 | 10,772 | |
Patents and licences | Depreciation, amortisation and write-downs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | (10,182) | (10,095) | ||
Additions | (1,223) | (87) | ||
Reclass | 56 | |||
Amount end of the year | (11,349) | (10,182) | (10,095) | |
Developed technology | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 6,801 | 8,573 | ||
Impairment of intangible assets | (683) | |||
Amount end of the year | 6,575 | 6,801 | 8,573 | |
Developed technology | Gross/Acquisition and manufacturing costs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 99,784 | 98,845 | ||
Foreign currency translation | 34 | 939 | ||
Additions | 917 | |||
Amount end of the year | 100,735 | 99,784 | 98,845 | |
Developed technology | Depreciation, amortisation and write-downs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | (92,983) | (90,272) | ||
Foreign currency translation | 438 | (348) | ||
Additions | (1,559) | (1,680) | ||
Reclass | (56) | |||
Impairment of intangible assets | (683) | |||
Amount end of the year | (94,160) | (92,983) | (90,272) | |
Customer related | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 21,698 | 29,861 | ||
Additions | (6,969) | |||
Amount end of the year | 14,684 | 21,698 | 29,861 | |
Customer related | Gross/Acquisition and manufacturing costs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 69,089 | 67,647 | ||
Foreign currency translation | 1,442 | |||
Amount end of the year | 69,089 | 69,089 | 67,647 | |
Customer related | Depreciation, amortisation and write-downs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | (47,391) | (37,786) | ||
Foreign currency translation | (45) | (691) | ||
Additions | (6,969) | (8,914) | ||
Amount end of the year | (54,405) | (47,391) | (37,786) | |
Trademarks | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 1,323 | 1,965 | ||
Amount end of the year | 1,026 | 1,323 | 1,965 | |
Trademarks | Gross/Acquisition and manufacturing costs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 6,539 | 6,539 | ||
Amount end of the year | 6,539 | 6,539 | 6,539 | |
Trademarks | Depreciation, amortisation and write-downs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | (5,216) | (4,574) | ||
Additions | (297) | (642) | ||
Amount end of the year | € (5,513) | (5,216) | (4,574) | |
Favorable Contract | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 56,960 | |||
Amount end of the year | 56,960 | |||
Favorable Contract | Gross/Acquisition and manufacturing costs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | 62,033 | |||
Disposals | 62,033 | |||
Amount end of the year | 62,033 | |||
Favorable Contract | Depreciation, amortisation and write-downs | ||||
Disclosure of detailed information about intangible assets | ||||
Amount beginning of the year | (5,073) | |||
Additions | (689) | |||
Disposals | € (5,762) | |||
Amount end of the year | € (5,073) | |||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Intangible assets, excluding _4
Intangible assets, excluding goodwill - Additional Information (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about intangible assets | ||||
Decrease in intangible assets other than goodwill | € (7,032) | |||
Intangible assets, excluding goodwill | 23,819 | € 30,851 | € 98,036 | |
Impairment amount | 683 | 3,244 | [1] | |
Customer related | ||||
Disclosure of detailed information about intangible assets | ||||
Intangible assets, excluding goodwill | 14,684 | 21,698 | 29,861 | |
Amortization | 6,969 | |||
Aptuit customer base | ||||
Disclosure of detailed information about intangible assets | ||||
Amortization | 5,557 | |||
Developed technology | ||||
Disclosure of detailed information about intangible assets | ||||
Intangible assets, excluding goodwill | € 6,575 | 6,801 | € 8,573 | |
Impairment amount | € 683 | |||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Goodwill - Development of goodw
Goodwill - Development of goodwill (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | ||
Goodwill at beginning of period | € 257,569 | € 247,370 |
Business combination | 19,622 | |
Foreign currency translation | (2,372) | 10,199 |
Goodwill at end of period | 274,819 | 257,569 |
OAI/Evotec International Execute | ||
Goodwill | ||
Goodwill at beginning of period | 84,480 | 79,816 |
Foreign currency translation | (2,257) | 4,664 |
Goodwill at end of period | 82,223 | 84,480 |
OAI/Evotec International Innovate | ||
Goodwill | ||
Goodwill at beginning of period | 9,204 | 9,154 |
Foreign currency translation | (40) | 50 |
Goodwill at end of period | 9,164 | 9,204 |
Aptuit Execute | ||
Goodwill | ||
Goodwill at beginning of period | 128,845 | 126,059 |
Business combination | 19,622 | |
Foreign currency translation | (2,243) | 2,786 |
Goodwill at end of period | 146,224 | 128,845 |
Evotec (US) Execute | ||
Goodwill | ||
Goodwill at beginning of period | 4,197 | 3,874 |
Foreign currency translation | 260 | 323 |
Goodwill at end of period | 4,457 | 4,197 |
Just Execute | ||
Goodwill | ||
Goodwill at beginning of period | 30,843 | 28,467 |
Foreign currency translation | 1,908 | 2,376 |
Goodwill at end of period | € 32,751 | € 30,843 |
Goodwill - Cash-generating unit
Goodwill - Cash-generating units (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash generating units except for Just Execute | ||
Impairment | ||
Cash flow projection period based on strategic/detailed plan | 5 years | |
Cash flow projection period including simplified transition period | 10 years | |
OAI/Evotec International Execute | ||
Impairment | ||
Pre-tax discount rate | 10.15% | 8.19% |
Growth rate for terminal value | 2% | 2% |
OAI/Evotec International Innovate | ||
Impairment | ||
Pre-tax discount rate | 11.93% | 11.51% |
Growth rate for terminal value | 2% | 2% |
Evotec (US) Execute | ||
Impairment | ||
Pre-tax discount rate | 9.32% | 7.87% |
Growth rate for terminal value | 2% | 2% |
Aptuit Execute | ||
Impairment | ||
Pre-tax discount rate | 13.12% | 9.83% |
Growth rate for terminal value | 2% | 2% |
Just Execute | ||
Impairment | ||
Cash flow projection period based on strategic/detailed plan | 10 years | |
Pre-tax discount rate | 11.71% | 9.22% |
Growth rate for terminal value | 2% | 2% |
Goodwill - Changes in the key a
Goodwill - Changes in the key assumptions (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Impairment | ||
Impairment loss | € 0 | € 0 |
Future cash flows | ||
Impairment | ||
Percentage of reasonably possible increase (decrease) in key assumption | (10.00%) | |
Impairment loss due to reasonably possible increase (decrease) in key assumption | € 0 | |
Discount rate | ||
Impairment | ||
Percentage of reasonably possible increase (decrease) in key assumption | 10% | |
Impairment loss due to reasonably possible increase (decrease) in key assumption | € 0 | |
Terminal sustainable growth rate | ||
Impairment | ||
Percentage of reasonably possible increase (decrease) in key assumption | (1.00%) | |
Impairment loss due to reasonably possible increase (decrease) in key assumption | € 0 | |
Just Execute | Scenario analysis | ||
Impairment | ||
Impairment loss due to reasonably possible increase (decrease) in key assumption | € 0 |
Loan liabilities (Details)
Loan liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Borrowings | ||
Accrued short-term interest | € 1,092 | € 1,136 |
Unutilized lines of credit | 245,509 | € 99,601 |
Facility with European Investment Bank | ||
Borrowings | ||
Unutilized lines of credit | € 150,000 |
Loan liabilities - Details (Det
Loan liabilities - Details (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Borrowings | ||
Loans, excluding accrued interest | € 328,759 | € 361,344 |
Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | 306,840 | 371,412 |
Germany 0.9-3.8% | ||
Borrowings | ||
Loans, excluding accrued interest | € 214,671 | € 249,530 |
Germany 0.9-3.8% | Minimum | ||
Borrowings | ||
Nominal interest rate | 0.90% | 0.90% |
Germany 0.9-3.8% | Maximum | ||
Borrowings | ||
Nominal interest rate | 3.80% | 3.80% |
Germany 0.9-3.8% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 198,281 | € 254,911 |
Germany 1.60% | ||
Borrowings | ||
Nominal interest rate | 1.60% | 1.60% |
Loans, excluding accrued interest | € 75,000 | € 75,000 |
Germany 1.60% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 71,846 | € 78,596 |
Germany 1.20% | ||
Borrowings | ||
Nominal interest rate | 1.20% | 1.20% |
Loans, excluding accrued interest | € 6,722 | € 7,797 |
Germany 1.20% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 6,358 | € 8,014 |
Germany 1.40% | ||
Borrowings | ||
Nominal interest rate | 1.40% | 1.40% |
Loans, excluding accrued interest | € 20,367 | € 20,367 |
Germany 1.40% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | 19,099 | € 21,332 |
Italy 1.3-3.05% | ||
Borrowings | ||
Loans, excluding accrued interest | € 1,257 | |
Italy 1.3-3.05% | Minimum | ||
Borrowings | ||
Nominal interest rate | 1.30% | |
Italy 1.3-3.05% | Maximum | ||
Borrowings | ||
Nominal interest rate | 3.05% | |
Italy 1.3-3.05% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 1,218 | |
France 0.55% | ||
Borrowings | ||
Nominal interest rate | 0.55% | 0.55% |
Loans, excluding accrued interest | € 10,742 | € 8,650 |
France 0.55% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 10,038 | € 8,559 |
Provisions (Details)
Provisions (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Provisions | ||
Current provisions | € 54,410 | € 39,260 |
Non-current provisions | 16,427 | 18,021 |
Other personnel expenses | ||
Provisions | ||
Current provisions | 47,490 | 33,983 |
Non-current provisions | 1,209 | 2,029 |
Pensions | ||
Provisions | ||
Current provisions | 1,730 | 1,478 |
Non-current provisions | 12,531 | 12,950 |
Other provisions | ||
Provisions | ||
Current provisions | 5,190 | 3,799 |
Non-current provisions | € 2,687 | € 3,042 |
Provisions - Development of Tot
Provisions - Development of Total Provisions (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Provisions | ||
Balance at beginning of period | € 57,281 | € 62,579 |
Business combination | 1,259 | |
Consumption | 25,837 | 38,241 |
Release | 7,960 | 11,478 |
Foreign exchange | (2,600) | 1,291 |
Additions | 48,694 | 43,130 |
Balance at end of period | 70,837 | 57,281 |
Other personnel expenses | ||
Provisions | ||
Balance at beginning of period | 36,012 | 37,005 |
Business combination | 419 | |
Consumption | 23,105 | 33,018 |
Release | 3,374 | 3,644 |
Foreign exchange | (2,525) | 636 |
Additions | 41,272 | 35,033 |
Balance at end of period | 48,699 | 36,012 |
Pensions | ||
Provisions | ||
Balance at beginning of period | 14,428 | 14,441 |
Business combination | 553 | |
Consumption | 1,629 | 463 |
Release | 1,404 | 813 |
Foreign exchange | (12) | |
Additions | 2,325 | 1,263 |
Balance at end of period | 14,261 | 14,428 |
Other provisions | ||
Provisions | ||
Balance at beginning of period | 6,841 | 11,133 |
Business combination | 287 | |
Consumption | 1,103 | 4,760 |
Release | 3,182 | 7,021 |
Foreign exchange | (63) | 655 |
Additions | 5,097 | 6,834 |
Balance at end of period | € 7,877 | € 6,841 |
Provisions Additional Informati
Provisions Additional Information (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Provisions. | ||
Bonus accrual | € 26,704 | € 22,396 |
Accrued vacation | 16,637 | 13,904 |
Provisions to address the risk of a potential divergent interpretation of selected contracts by the tax authorities | 2,139 | 2,139 |
Earn-out provision | 306 | 1,103 |
Audit fee provision | 2,111 | 878 |
Maintenance fee provision | € 1,483 | € 1,598 |
Contract liabilities (Details)
Contract liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Customers | ||
Current contract liabilities | € 122,922 | € 112,061 |
BMS | ||
Customers | ||
Contract liabilities | 235,652 | 94,988 |
Current contract liabilities | € 42,506 | € 62,568 |
Income Taxes - Amounts recognis
Income Taxes - Amounts recognised in consolidated income statement (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Tax | ||||
Net deferred tax assets | € 10,327 | € 17,359 | ||
Current taxes: | ||||
Current tax expense | (14,132) | (12,309) | € (12,804) | |
Adjustment for prior years | 156 | (4,095) | 739 | |
Total current taxes | (13,976) | (16,404) | (12,065) | [1] |
Deferred taxes: | ||||
Tax loss carry forwards | (10,862) | (5,140) | (10,319) | |
Temporary differences | 3,140 | 74 | 2,822 | |
Total deferred taxes | (7,722) | (5,066) | (7,497) | [1] |
Total taxes | € (21,698) | € (21,470) | (19,562) | [1] |
Impact of applying IFRIC agenda decision on IAS 19 | ||||
Tax | ||||
Net deferred tax assets | € (558) | |||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of effective tax rates (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Tax | ||||
Income before taxes | € (153,956) | € 236,980 | € 25,840 | |
Expected German income tax rate | 32.28% | 32.28% | 32.28% | |
Expected income tax benefit (expense) | € 49,697 | € (76,497) | € (8,341) | |
Non-deductible expenses | (59,543) | (511) | (2,533) | |
Taxable income not recognised in income before tax | (7,796) | |||
R&D tax credits | 13,454 | 6,742 | 5,983 | |
Tax free income | 3,184 | 71,917 | 5,485 | |
Permanent differences from GILTI | (3,724) | (444) | (1,401) | |
Tax effects from investments accounted for using the equity method | (5,152) | (9,300) | (2,884) | |
Deviation tax rates to expected tax rate | 448 | 1,815 | 690 | |
Change in tax rates | 636 | 521 | 124 | |
Change in recognition of deferred tax assets | (19,167) | (10,247) | (9,317) | |
Current Taxes | 156 | (4,095) | 739 | |
Deferred Taxes | (1,348) | (570) | 203 | |
Other | (339) | (801) | (514) | |
Total taxes | € (21,698) | € (21,470) | € (19,562) | [1] |
Effective income tax rate | (14.09%) | 9.06% | 75.70% | |
Solidarity surcharge rate | 15.825% | |||
Minimum | ||||
Tax | ||||
Trade tax rate | 10.85% | |||
Maximum | ||||
Tax | ||||
Trade tax rate | 16.625% | |||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Income Taxes - Deferred income
Income Taxes - Deferred income tax assets and liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Tax | ||||
Net, Balance at beginning of period | € (329) | € 3,993 | ||
Recognised in profit or loss | (7,722) | (5,066) | € (7,497) | [1] |
Recognised in other comprehensive income | (990) | 715 | ||
Foreign currency translation | 518 | 29 | ||
Acquisition | 326 | |||
Net, Balance at end of period | (8,197) | (329) | 3,993 | |
Deferred tax asset | 59,215 | 58,461 | ||
Deferred tax liabilities | (67,412) | (58,790) | ||
Deferred tax liabilities offset against assets | (48,888) | (41,102) | ||
Deferred tax assets offset against liabilities | 48,888 | 41,102 | ||
Net deferred tax assets | 10,327 | 17,359 | ||
Net deferred tax liabilities | (18,524) | (17,688) | ||
Property, plant and equipment | ||||
Tax | ||||
Net, Balance at beginning of period | (4,855) | (2,840) | ||
Recognised in profit or loss | (5,140) | (1,969) | ||
Foreign currency translation | 508 | (46) | ||
Acquisition | 30 | |||
Net, Balance at end of period | (9,457) | (4,855) | (2,840) | |
Deferred tax asset | 1,563 | 1,528 | ||
Deferred tax liabilities | (11,020) | (6,383) | ||
Intangible assets other than goodwill | ||||
Tax | ||||
Net, Balance at beginning of period | (22,348) | (25,314) | ||
Recognised in profit or loss | 2,536 | 3,296 | ||
Foreign currency translation | (130) | (330) | ||
Acquisition | 296 | |||
Net, Balance at end of period | (19,646) | (22,348) | (25,314) | |
Deferred tax asset | 965 | 468 | ||
Deferred tax liabilities | (20,611) | (22,816) | ||
Right-of use assets | ||||
Tax | ||||
Net, Balance at beginning of period | (21,979) | (23,535) | ||
Recognised in profit or loss | (6,860) | 1,556 | ||
Net, Balance at end of period | (28,839) | (21,979) | (23,535) | |
Deferred tax liabilities | (28,839) | (21,979) | ||
Financial assets | ||||
Tax | ||||
Net, Balance at beginning of period | (3,985) | (316) | ||
Recognised in profit or loss | 2,539 | (3,669) | ||
Net, Balance at end of period | (1,446) | (3,985) | (316) | |
Deferred tax asset | 453 | 401 | ||
Deferred tax liabilities | (1,899) | (4,386) | ||
Provisions and deferred income | ||||
Tax | ||||
Net, Balance at beginning of period | 3,965 | 4,801 | ||
Recognised in profit or loss | 5,640 | (768) | ||
Recognised in other comprehensive income | (357) | 7 | ||
Foreign currency translation | 2 | (75) | ||
Net, Balance at end of period | 9,250 | 3,965 | 4,801 | |
Deferred tax asset | 12,759 | 6,516 | ||
Deferred tax liabilities | (3,509) | (2,551) | ||
Lease obligations | ||||
Tax | ||||
Net, Balance at beginning of period | 19,927 | 23,274 | ||
Recognised in profit or loss | 5,351 | (3,347) | ||
Net, Balance at end of period | 25,278 | 19,927 | 23,274 | |
Deferred tax asset | 25,278 | 20,297 | ||
Deferred tax liabilities | (370) | |||
Other | ||||
Tax | ||||
Net, Balance at beginning of period | 4,949 | (1,309) | ||
Recognised in profit or loss | (727) | 6,245 | ||
Foreign currency translation | 22 | 13 | ||
Net, Balance at end of period | 4,244 | 4,949 | (1,309) | |
Deferred tax asset | 5,778 | 5,254 | ||
Deferred tax liabilities | (1,534) | (305) | ||
Tax credits | ||||
Tax | ||||
Net, Balance at beginning of period | 1,034 | 1,521 | ||
Recognised in profit or loss | (199) | (1,270) | ||
Recognised in other comprehensive income | (633) | 708 | ||
Foreign currency translation | 71 | 75 | ||
Net, Balance at end of period | 273 | 1,034 | 1,521 | |
Deferred tax asset | 273 | 1,034 | ||
Tax loss carryforwards | ||||
Tax | ||||
Net, Balance at beginning of period | 22,963 | 27,711 | ||
Recognised in profit or loss | (10,862) | (5,140) | ||
Foreign currency translation | 45 | 392 | ||
Net, Balance at end of period | 12,146 | 22,963 | € 27,711 | |
Deferred tax asset | € 12,146 | € 22,963 | ||
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Income Taxes - Unrecognized def
Income Taxes - Unrecognized deferred tax (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income taxes | ||
Unrecognized deferred tax liabilities | € 20,576 | € 12,009 |
Income Taxes - Unrecognized d_2
Income Taxes - Unrecognized deferred tax assets (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | € 592,957 | € 442,395 | € 382,528 |
Unrecognized deferred tax assets for temporary differences | 11,354 | 6,346 | 2,707 |
Tax loss carryforwards | Not expiring | |||
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | 474,989 | 307,682 | 272,796 |
Tax loss carryforwards | Not later than five years | |||
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | 13,297 | 21,409 | 19,259 |
Tax loss carryforwards | Later than five years and not later than ten years | |||
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | 45,696 | 38,207 | 45,409 |
Tax loss carryforwards | Later than ten years | |||
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | 57,662 | 73,811 | 43,945 |
Tax credits | |||
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | € 1,313 | € 1,286 | € 1,119 |
Other current financial liabi_2
Other current financial liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Other current financial liabilities | € 7,087 | € 12,115 |
Foreign currency forward contracts | ||
Financial instruments | ||
Other current financial liabilities | € 7,087 | 8,565 |
Other liabilities | ||
Financial instruments | ||
Other current financial liabilities | € 3,550 |
Stock-based compensation - Shar
Stock-based compensation - Share Performance Awards (Details) | 12 Months Ended |
Dec. 31, 2022 Y item € / shares shares | |
Share-based payments | |
Contribution per share | € / shares | € 1 |
Restricted Share Awards | |
Share-based payments | |
Number of subscription rights to shares | item | 1 |
Restricted Share Awards | Restricted Share Plan 2020 | |
Share-based payments | |
Number of bearer shares that may be granted | 1,200,000 |
Vesting period for share-based payments | 4 years |
Maximum exercise period for share-based payments | 5 years |
Threshold number of consecutive calendar years for achievement of targets | Y | 4 |
Share Performance Awards | |
Share-based payments | |
Number of subscription rights to shares | item | 2 |
Number of shares to which one subscription right entitles | 1 |
Share Performance Awards | Share Performance Plan 2017 and 2022 | |
Share-based payments | |
Number of trading days for exercise of shares | 10 days |
Holding period for share-based payments | 4 years |
Number of key performance indicators in share-based payments | item | 2 |
Threshold number of consecutive calendar years for achievement of targets | Y | 4 |
Share Performance Awards | Share Performance Plan 2017 | |
Share-based payments | |
Number of bearer shares that may be granted | 6,000,000 |
Share Performance Awards | Share Performance Plan 2022 | |
Share-based payments | |
Number of bearer shares that may be granted | 6,000,000 |
Stock-based compensation - Stat
Stock-based compensation - Status of the Share Performance Plans (Details) | 12 Months Ended | ||
Dec. 31, 2022 EquityInstruments € / shares shares | Dec. 31, 2021 EquityInstruments € / shares shares | Dec. 31, 2020 EquityInstruments € / shares shares | |
Share-based payments | |||
SPAs exercised | € 1 | € 1 | |
Share Performance Awards | |||
Share-based payments | |||
Outstanding at beginning of the year | EquityInstruments | 1,325,450 | 1,570,113 | 2,149,562 |
SPAs granted | EquityInstruments | 468,706 | 608,710 | 325,612 |
SPAs exercised | EquityInstruments | (209,043) | (701,278) | (865,687) |
SPAs forfeited | EquityInstruments | (80,475) | (152,095) | (39,374) |
Outstanding at end of the year | EquityInstruments | 1,504,638 | 1,325,450 | 1,570,113 |
Thereof exercisable | EquityInstruments | 432,450 | ||
Outstanding at beginning of the year | € 1 | € 1 | € 1 |
SPAs granted | 1 | 1 | 1 |
SPAs exercised | 1 | 1 | 1 |
SPAs forfeited | 1 | 1 | 1 |
Outstanding at the end of the year | 1 | 1 | 1 |
Thereof exercisable | 1 | 1 | 1 |
Weighted average share price | € 34.27 | € 37.97 | € 24.26 |
Number of shares issued on exercise of awards | shares | 344,458 | 1,195,954 | 1,501,254 |
Share Performance Awards | Management Board | |||
Share-based payments | |||
SPAs granted | EquityInstruments | 139,229 | 160,048 | 77,214 |
Stock-based compensation - The
Stock-based compensation - The fair value of the grant of Share Performance Awards was estimated on the date of grant (Details) - EUR (€) | 12 Months Ended | ||||||||
Oct. 27, 2022 | May 27, 2022 | Jan. 28, 2022 | Oct. 22, 2021 | May 28, 2021 | Feb. 01, 2021 | Oct. 29, 2020 | Jan. 15, 2020 | Dec. 31, 2022 | |
Share Performance Awards | |||||||||
Share-based payments | |||||||||
Risk free interest rate, share-based payments | 2.03% | 0.57% | (0.46%) | (0.43%) | (0.57%) | (0.78%) | (0.85%) | (0.55%) | |
Expected volatility of share, share based-payments | 51% | 45% | 37% | 35% | 40% | 42% | 40% | 37% | |
Expected volatility of index, share based-payments | 17% | 29% | 18% | ||||||
Fluctuation, share based-payments | 5% | 5% | 5% | ||||||
Exercise price, share-based payments | € 1 | € 1 | € 1 | € 1 | € 1 | € 1 | € 1 | € 1 | |
Share price at grant date, share based-payments | 19.47 | 25.26 | € 34.90 | 44.98 | 35.49 | € 32.25 | 22.92 | € 23.39 | |
Market value of index, share based-payments | € 3,411.87 | € 3,375.67 | € 3,099.05 | ||||||
Fair value for Management Board, share based-payments | 22.87 | € 31.30 | 33.50 | € 31.34 | € 22.69 | ||||
Fair value for executives, share based-payments | € 18.57 | € 24.29 | € 33.66 | € 43.96 | € 34.47 | € 36.65 | € 21.89 | € 25.28 | |
Expected dividend as percentage, share-based payments | 0% | ||||||||
Share Performance Awards | Minimum | |||||||||
Share-based payments | |||||||||
Fluctuation, share based-payments | 0% | 0% | 0% | 0% | 0% | ||||
Share Performance Awards | Maximum | |||||||||
Share-based payments | |||||||||
Fluctuation, share based-payments | 5% | 5% | 5% | 5% | 5% | ||||
Vesting periods starting in January | |||||||||
Share-based payments | |||||||||
Expected life, share based-payments | 4 years | ||||||||
Vesting eriods starting in May and October | |||||||||
Share-based payments | |||||||||
Expected life, share based-payments | 5 years |
Stock-based compensation - Sh_2
Stock-based compensation - Share option plans (Details) | 12 Months Ended |
Dec. 31, 2020 EquityInstruments € / shares | |
Stock-based compensation | |
Outstanding at beginning of the year | EquityInstruments | 32,594 |
Options exercised | EquityInstruments | (32,594) |
Outstanding at beginning of the year | € 2.79 |
Options exercised | 2.79 |
Weighted average share price, share options granted | € 25.17 |
Stock-based compensation - Addi
Stock-based compensation - Additional Information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Performance Awards and Restricted Share Awards Plans | |||
Share-based payments | |||
Stock compensation expense | € 9,919 | € 7,805 | € 5,285 |
Option Plans | |||
Share-based payments | |||
Stock compensation expense | 0 | 0 | 0 |
Management Board | Share Performance Awards | |||
Share-based payments | |||
Stock compensation expense | € 2,791 | € 2,002 | € 1,902 |
Stockholders' equity - Share ca
Stockholders' equity - Share capital (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' equity | |||
Beginning balance (Shares) | 176,608,195 | 163,915,000 | 150,903,000 |
Capital increase (cash contribution) | 11,497,000 | 11,478,000 | |
Exercise of share purchase rights | 345,000 | 1,196,000 | 1,534,000 |
Ending balance (Shares) | 176,952,653 | 176,608,195 | 163,915,000 |
Stockholders' equity - Raised C
Stockholders' equity - Raised Capital (Details) - € / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' equity | ||||
Number of shares issued | 176,952,653 | 176,608,195 | 163,915,000 | 150,903,000 |
Number of shares outstanding | 176,952,653 | 176,608,195 | ||
Nominal amount per share | € 1 |
Stockholders' equity - Addition
Stockholders' equity - Additional information (Details) - EUR (€) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity | ||||
Exercise price for SPAs exercised | € 1 | € 1 | ||
Shares available to issue | 42,732,865 | |||
Additional capital authorised | € 35,321,639 | |||
Number of shares in entity held by entity or by its subsidiaries or associates | 249,915 | 249,915 | 250,000 | 250,000 |
Proportion of treasury shares to total share capital | 0.10% | 0.10% | ||
Share Performance Plans and the Stock Option Plans | ||||
Equity | ||||
Shares available to issue | 12,773,576 | |||
Owners or creditors, participation rights and/or income bonds | ||||
Equity | ||||
Shares available to issue | 29,959,289 |
Revenues - Recognised Revenues
Revenues - Recognised Revenues (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenue | ||||
Revenues | € 751,448 | € 618,034 | € 500,924 | [1] |
United States | ||||
Revenue | ||||
Revenues | 418,305 | 337,602 | 247,848 | |
Germany | ||||
Revenue | ||||
Revenues | 58,895 | 46,852 | 44,321 | |
France | ||||
Revenue | ||||
Revenues | 32,274 | 30,591 | 37,060 | |
United Kingdom | ||||
Revenue | ||||
Revenues | 115,256 | 104,640 | 93,987 | |
Rest of the world | ||||
Revenue | ||||
Revenues | 126,718 | 98,349 | 77,708 | |
At a point in time | ||||
Revenue | ||||
Revenues | 62,502 | 85,460 | 38,927 | |
Over a period of time | ||||
Revenue | ||||
Revenues | 688,946 | 532,574 | 461,997 | |
Service fees and FTE-based research payments | ||||
Revenue | ||||
Revenues | 683,987 | 530,754 | 460,594 | |
Material recharges | ||||
Revenue | ||||
Revenues | 44,436 | 35,991 | 21,835 | |
Compound access fees | ||||
Revenue | ||||
Revenues | 2,573 | 1,575 | 1,361 | |
Milestone fees | ||||
Revenue | ||||
Revenues | 18,066 | 49,469 | 17,092 | |
Licences | ||||
Revenue | ||||
Revenues | 2,386 | 245 | 42 | |
EVT Execute | ||||
Revenue | ||||
Revenues | 546,718 | 471,052 | 394,094 | |
EVT Execute | United States | ||||
Revenue | ||||
Revenues | 283,755 | 236,009 | 189,488 | |
EVT Execute | Germany | ||||
Revenue | ||||
Revenues | 32,765 | 24,279 | 19,529 | |
EVT Execute | France | ||||
Revenue | ||||
Revenues | 22,546 | 16,876 | 21,499 | |
EVT Execute | United Kingdom | ||||
Revenue | ||||
Revenues | 105,557 | 98,735 | 89,258 | |
EVT Execute | Rest of the world | ||||
Revenue | ||||
Revenues | 102,095 | 95,153 | 74,320 | |
EVT Execute | At a point in time | ||||
Revenue | ||||
Revenues | 44,722 | 38,336 | 25,787 | |
EVT Execute | Over a period of time | ||||
Revenue | ||||
Revenues | 501,996 | 432,716 | 368,307 | |
EVT Execute | Service fees and FTE-based research payments | ||||
Revenue | ||||
Revenues | 498,719 | 431,184 | 366,946 | |
EVT Execute | Material recharges | ||||
Revenue | ||||
Revenues | 38,668 | 34,104 | 20,728 | |
EVT Execute | Compound access fees | ||||
Revenue | ||||
Revenues | 1,464 | 1,532 | 1,361 | |
EVT Execute | Milestone fees | ||||
Revenue | ||||
Revenues | 6,054 | 4,232 | 5,059 | |
EVT Execute | Licences | ||||
Revenue | ||||
Revenues | 1,813 | |||
EVT Innovate | ||||
Revenue | ||||
Revenues | 204,730 | 146,982 | 106,830 | |
EVT Innovate | United States | ||||
Revenue | ||||
Revenues | 134,550 | 101,593 | 58,360 | |
EVT Innovate | Germany | ||||
Revenue | ||||
Revenues | 26,130 | 22,573 | 24,792 | |
EVT Innovate | France | ||||
Revenue | ||||
Revenues | 9,728 | 13,715 | 15,561 | |
EVT Innovate | United Kingdom | ||||
Revenue | ||||
Revenues | 9,699 | 5,905 | 4,729 | |
EVT Innovate | Rest of the world | ||||
Revenue | ||||
Revenues | 24,623 | 3,196 | 3,388 | |
EVT Innovate | At a point in time | ||||
Revenue | ||||
Revenues | 17,780 | 47,124 | 13,140 | |
EVT Innovate | Over a period of time | ||||
Revenue | ||||
Revenues | 186,950 | 99,858 | 93,690 | |
EVT Innovate | Service fees and FTE-based research payments | ||||
Revenue | ||||
Revenues | 185,268 | 99,570 | 93,648 | |
EVT Innovate | Material recharges | ||||
Revenue | ||||
Revenues | 5,768 | 1,887 | 1,107 | |
EVT Innovate | Compound access fees | ||||
Revenue | ||||
Revenues | 1,109 | 43 | ||
EVT Innovate | Milestone fees | ||||
Revenue | ||||
Revenues | 12,012 | 45,237 | 12,033 | |
EVT Innovate | Licences | ||||
Revenue | ||||
Revenues | € 573 | € 245 | € 42 | |
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Revenues - Additional informati
Revenues - Additional information (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Transaction price | ||||
Revenues | € 751,448 | € 618,034 | € 500,924 | [1] |
EVT Execute | ||||
Transaction price | ||||
Revenues | 546,718 | 471,052 | 394,094 | |
Contributions | EVT Execute | ||||
Transaction price | ||||
Revenues | 10,551 | 8,565 | 4,648 | |
BMS | ||||
Transaction price | ||||
Revenue from contracts with customers | € 138,737 | € 98,616 | 62,561 | |
BMS | Minimum | ||||
Transaction price | ||||
Percentage of entity's revenue | 10% | 10% | ||
Within one year | ||||
Transaction price | ||||
Transaction price allocated to the remaining performance obligation | € 405,710 | € 225,061 | 377,216 | |
After one year | ||||
Transaction price | ||||
Transaction price allocated to the remaining performance obligation | € 158,068 | € 67,619 | € 69,328 | |
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Research and Development (Detai
Research and Development (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses | |||
Research and development expenses relating to overhead expenses | € 12,198 | € 8,136 | € 9,341 |
EVT Innovate | |||
Expenses | |||
Research and development expenses relating to own projects | 62,100 | 64,064 | 55,992 |
EVT Execute | |||
Expenses | |||
Research and development expenses relating to own projects | 2,345 | 2,528 | 3,636 |
Research and development expense | |||
Expenses | |||
Depreciation and amortisation expense | € 471 | € 1,042 | € 789 |
Selling, general and administ_2
Selling, general and administrative expenses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses | |||
Sales and marketing expense | € 13,491 | € 9,422 | € 9,503 |
Other administrative expenses | 142,699 | 96,023 | 67,356 |
Selling, general and administrative expense | |||
Expenses | |||
Depreciation and amortisation expense | € 38,025 | € 24,957 | € 19,840 |
Other operating income (Details
Other operating income (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
France | |||
Other operating income | |||
Refunds related to tax development programmes | € 25,068 | € 22,691 | € 19,308 |
Italy | |||
Other operating income | |||
Refunds related to tax development programmes | 7,342 | 2,784 | 124 |
United Kingdom | |||
Other operating income | |||
Refunds related to tax development programmes | 7,250 | 6,502 | 4,337 |
Germany | |||
Other operating income | |||
Refunds related to tax development programmes | 3,280 | 0 | 0 |
Sanofi | |||
Other operating income | |||
Refunds related to development of portfolios | € 34,174 | € 35,762 | € 43,398 |
Financial instruments - Currenc
Financial instruments - Currency risks (Details) | 12 Months Ended | |||||
Dec. 31, 2022 € / $ | Dec. 31, 2022 € / £ € / $ | Dec. 31, 2021 € / $ | Dec. 31, 2021 € / $ € / £ | Dec. 31, 2022 € / £ | Dec. 31, 2021 € / £ | |
Financial instruments | ||||||
Average currency rates | 0.9496 | 1.1727 | 0.8455 | 1.1633 | ||
Currency rates | 0.9376 | 0.9376 | 0.8829 | 0.8829 | 1.1275 | 1.1901 |
Financial instruments - Analysi
Financial instruments - Analysis of financial instruments (Details) - Currency risks - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
USD | |||
Financial instruments | |||
Percentage strengthening in rate | 10% | 10% | 10% |
Percentage weakening in rate | 10% | 10% | 10% |
Variance in equity from strengthening in rate | € 31,007 | € 42,053 | € 11,321 |
Variance in equity from weakening in rate | (31,007) | (42,053) | (11,321) |
Variance in profit and loss from strengthening in rate | 31,007 | 42,053 | 11,321 |
Variance in profit and loss from weakening in rate | € (31,007) | € (42,053) | € (11,321) |
GBP | |||
Financial instruments | |||
Percentage strengthening in rate | 10% | 10% | 10% |
Percentage weakening in rate | 10% | 10% | 10% |
Variance in equity from strengthening in rate | € 3,967 | € 6,643 | € 5,702 |
Variance in equity from weakening in rate | (3,967) | (6,643) | (5,702) |
Variance in profit and loss from strengthening in rate | 3,967 | 6,643 | 5,702 |
Variance in profit and loss from weakening in rate | € (3,967) | € (6,643) | € (5,702) |
EUR | |||
Financial instruments | |||
Percentage strengthening in rate | 10% | 10% | 10% |
Percentage weakening in rate | 10% | 10% | 10% |
Variance in equity from strengthening in rate | € 34,974 | € 48,699 | € 17,032 |
Variance in equity from weakening in rate | (34,974) | (48,699) | (17,032) |
Variance in profit and loss from strengthening in rate | 34,974 | 48,699 | 17,032 |
Variance in profit and loss from weakening in rate | € (34,974) | € (48,699) | € (17,032) |
Financial instruments (Details)
Financial instruments (Details) - Currency risks - Foreign currency forward contracts € in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Financial instruments | ||||||
Gains and losses from the fair value accounting related to foreign currency derivatives | € | € 9,424 | € (12,410) | € (20) | |||
Cash flows economically hedged, amount | $ 394,039 | $ 344,830 | $ 70,500 | |||
EUR | ||||||
Financial instruments | ||||||
Cash flows economically hedged, amount | 349,639 | 300,430 | 45,000 | |||
GBP | ||||||
Financial instruments | ||||||
Cash flows economically hedged, amount | € 8,400 | $ 44,400 | $ 44,400 | $ 25,500 |
Financial instruments - Interes
Financial instruments - Interest rate risks (Details) - Variable interest rates - Interest rate risks - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments | |||
Variable interest rate increase | 1% | 1% | |
Variable interest rate decrease | 1% | 1% | |
Impact on income before taxes from increase in assumption | € 3,014 | € 2,570 | € 415 |
Impact on income before taxes from decrease in assumption | (1,714) | (827) | € (415) |
Impact on fair value of instrument from increase in assumption | 3,014 | 2,570 | |
Impact on fair value of instrument from decrease in assumption | € (1,714) | € (827) |
Financial instruments - Inter_2
Financial instruments - Interest rate swaps hedge (Details) - Interest rate risks € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) item | Jun. 30, 2019 EUR (€) item | |
Interest rate swap | |||
Financial instruments | |||
Number of swaps entered | item | 2 | 2 | |
Notional amount | € 22,500 | € 48,250 | |
Net gain (loss) on redemption of swaps | € (4,683) | ||
Interest rate swap one | |||
Financial instruments | |||
Borrowings, swapped fixed rate | 0.17% | ||
Interest rate swap two | |||
Financial instruments | |||
Borrowings, swapped fixed rate | 0.24% |
Risks (Details)
Risks (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying amount | |||
Loans | € (329,851) | € (362,480) | |
Lease obligations | (176,823) | (150,437) | € (145,554) |
Contingent consideration | (306) | (1,103) | |
Trade accounts payable | (97,277) | (72,598) | |
Other financial liabilities | (977) | (4,017) | |
Total non-derivative financial liabilities | (605,234) | (590,635) | |
Interest rate swaps/FX forwards | (7,358) | (9,344) | |
Total derivative financial liabilities | (7,358) | (9,344) | |
Non-derivative financial liabilities | |||
Loans | (345,522) | (382,867) | |
Lease obligations | (186,894) | (175,040) | |
Contingent consideration | (372) | (1,156) | |
Trade accounts payable | (97,277) | (72,598) | |
Other financial liabilities | (977) | (4,017) | |
Total non-derivative financial liabilities | (631,042) | (635,678) | |
Derivative financial liabilities | |||
Interest rate swaps/FX forwards | (7,358) | (9,344) | |
Total derivative financial liabilities | (7,358) | (9,344) | |
Due in 1 year | |||
Non-derivative financial liabilities | |||
Loans | (7,266) | (40,467) | |
Lease obligations | (19,422) | (17,343) | |
Contingent consideration | (76) | (1,156) | |
Trade accounts payable | (97,277) | (72,598) | |
Other financial liabilities | (977) | (4,017) | |
Total non-derivative financial liabilities | (125,018) | (135,581) | |
Derivative financial liabilities | |||
Interest rate swaps/FX forwards | (6,965) | (7,423) | |
Total derivative financial liabilities | (6,965) | (7,423) | |
Due in 2 - 5 years | |||
Non-derivative financial liabilities | |||
Loans | (272,749) | (253,391) | |
Lease obligations | (78,152) | (69,396) | |
Contingent consideration | (291) | ||
Total non-derivative financial liabilities | (351,192) | (322,787) | |
Derivative financial liabilities | |||
Interest rate swaps/FX forwards | (393) | (1,660) | |
Total derivative financial liabilities | (393) | (1,660) | |
More than 5 years | |||
Non-derivative financial liabilities | |||
Loans | (65,507) | (89,009) | |
Lease obligations | (89,320) | (88,301) | |
Contingent consideration | (5) | ||
Total non-derivative financial liabilities | € (154,832) | (177,310) | |
Derivative financial liabilities | |||
Interest rate swaps/FX forwards | (261) | ||
Total derivative financial liabilities | € (261) |
Risks - Capital management risk
Risks - Capital management risk (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Risks | ||
Total assets | € 2,257,247 | € 2,235,161 |
Equity attributable to the shareholders of Evotec SE | € 1,187,184 | € 1,377,685 |
Equity ratio (in %) | 52.60% | 61.60% |
Net cash | € (91,518) | € 186,409 |
Risks - Credit risks (Details)
Risks - Credit risks (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
One customer | ||
Credit risk | ||
Receivables percentage | 22% | 23% |
Trade accounts receivables | ||
Credit risk | ||
Maximum exposure to credit risk | € 168,653 | € 132,078 |
Trade accounts receivables | United States | ||
Credit risk | ||
Maximum exposure to credit risk | 92,034 | 78,543 |
Trade accounts receivables | France | ||
Credit risk | ||
Maximum exposure to credit risk | 24,429 | 17,098 |
Trade accounts receivables | United Kingdom | ||
Credit risk | ||
Maximum exposure to credit risk | 20,451 | 12,391 |
Trade accounts receivables | Germany | ||
Credit risk | ||
Maximum exposure to credit risk | 7,767 | 6,283 |
Trade accounts receivables | Rest of Europe | ||
Credit risk | ||
Maximum exposure to credit risk | 13,622 | 10,363 |
Trade accounts receivables | Rest of the world | ||
Credit risk | ||
Maximum exposure to credit risk | 10,350 | 7,400 |
Contract assets | ||
Credit risk | ||
Maximum exposure to credit risk | € 30,516 | € 18,614 |
Risks - Reconciliation of cash
Risks - Reconciliation of cash flows from financing activities to the changes in financial liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Liabilities from financing activities | ||||
Proceeds from issuance of loans | € 30,791 | € 21,539 | [1] | |
Repayment | € (34,067) | (16,018) | (6,520) | [1] |
Loan liabilities | ||||
Liabilities from financing activities | ||||
As of 1 January | 362,480 | 346,411 | ||
Proceeds from issuance of loans | 30,791 | |||
Repayment | (34,067) | (16,018) | ||
Cashflow from financing activities | (34,067) | 14,773 | ||
Changes in fair value | 160 | |||
Interest increase | 1,438 | 1,136 | ||
As of 31 December | 329,851 | 362,480 | 346,411 | |
Lease obligations | ||||
Liabilities from financing activities | ||||
As of 1 January | 150,437 | 145,554 | ||
Repayment | (19,046) | (19,770) | ||
Cashflow from financing activities | (19,046) | (19,770) | ||
Disposal of finance lease obligation | (232) | (58) | ||
Foreign currency translation | (1,120) | 6,691 | ||
Interest increase | 4,068 | 3,728 | ||
Issue of finance lease obligation | 42,716 | 14,292 | ||
As of 31 December | 176,823 | 150,437 | 145,554 | |
Loan notes | ||||
Liabilities from financing activities | ||||
As of 1 January | 3 | 3 | ||
As of 31 December | € 3 | € 3 | € 3 | |
[1]Includes the impacts of the IFRIC final agenda decisions of April 2021 of benefits to periods of service, as described in Note 2 “First time adoption of new accounting standards in the financial year 2021” |
Fair values (Details)
Fair values (Details) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | |
Fair values | ||
Transfer of assets from level 1 to level 2 | € 0 | € 0 |
Transfer of assets from level 2 to level 1 | 0 | 0 |
Transfer of assets into level 3 | 0 | 0 |
Transfer of assets out of level 3 | 0 | 0 |
Transfer of liabilities from level 1 to level 2 | 0 | 0 |
Transfer of liabilities from level 2 to level 1 | 0 | 0 |
Transfer of liabilities into level 3 | 0 | 0 |
Transfer of liabilities out of level 3 | € 0 | € 0 |
Long-term credit liabilities | Discount rate | ||
Fair values | ||
Significant unobservable input, liabilities | 0.0306 |
Fair values - Summary of fair v
Fair values - Summary of fair values of financial assets and liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
At fair value | ||
Financial instruments | ||
Financial assets (liabilities) | € 434,927 | € 417,254 |
Financial assets (liabilities) at fair value | 434,927 | 417,254 |
Amortised cost, liabilities | Non-current loan liabilities | Level 3 | ||
Financial instruments | ||
Financial liabilities | 328,295 | 326,344 |
Financial liabilities, at fair value | 306,574 | 336,412 |
Fair value through profit and loss, liabilities | ||
Financial instruments | ||
Financial liabilities, at fair value | (7,664) | (10,447) |
Fair value through profit and loss, liabilities | Level 2 | ||
Financial instruments | ||
Financial liabilities, at fair value | (7,358) | (9,344) |
Fair value through profit and loss, liabilities | Level 3 | ||
Financial instruments | ||
Financial liabilities, at fair value | (306) | (1,103) |
Fair value through profit and loss, liabilities | Derivative financial instruments, liabilities | At fair value | ||
Financial instruments | ||
Financial liabilities | (7,358) | (9,344) |
Financial liabilities, at fair value | (7,358) | (9,344) |
Fair value through profit and loss, liabilities | Contingent consideration | At fair value | ||
Financial instruments | ||
Financial liabilities | (306) | (1,103) |
Financial liabilities, at fair value | (306) | (1,103) |
Fair value through other comprehensive income | ||
Financial instruments | ||
Financial assets, at fair value | 311,899 | 158,908 |
Fair value through other comprehensive income | Level 1 | ||
Financial instruments | ||
Financial assets, at fair value | 311,899 | 158,908 |
Fair value through other comprehensive income | Investments | At fair value | ||
Financial instruments | ||
Financial assets | 311,899 | 158,908 |
Financial assets, at fair value | 311,899 | 158,908 |
Fair value through profit and loss, assets | ||
Financial instruments | ||
Financial assets, at fair value | 130,692 | 268,793 |
Fair value through profit and loss, assets | Level 1 | ||
Financial instruments | ||
Financial assets, at fair value | 70,133 | 244,866 |
Fair value through profit and loss, assets | Level 2 | ||
Financial instruments | ||
Financial assets, at fair value | 8,215 | |
Fair value through profit and loss, assets | Level 3 | ||
Financial instruments | ||
Financial assets, at fair value | 52,344 | 23,927 |
Fair value through profit and loss, assets | Long-term investments | At fair value | ||
Financial instruments | ||
Financial assets | 122,477 | 268,793 |
Financial assets, at fair value | 122,477 | 268,793 |
Fair value through profit and loss, assets | Derivative financial instruments, assets | At fair value | ||
Financial instruments | ||
Financial assets | 8,215 | 0 |
Financial assets, at fair value | € 8,215 | € 0 |
Fair values - Summary of moveme
Fair values - Summary of movement of financial assets and liabilities accounted for at fair values at level 3 (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other investments | ||
Balance at the beginning | € 2,235,161 | |
Balance at the end | 2,257,247 | € 2,235,161 |
Level 3 | Contingent consideration | ||
Contingent consideration | ||
Balance at the beginning | (1,103) | (6,381) |
Exchange rate differences | (268) | |
Addition | (14) | |
Consumption | 445 | |
Reclassification to Liabilities | 3,571 | |
Net income/expense effected | 811 | 1,530 |
Balance at the end | (306) | (1,103) |
Level 3 | Long-term investments | ||
Other investments | ||
Balance at the beginning | 23,927 | 19,289 |
Addition | 25,846 | 6,647 |
Net income/expense effected | 2,571 | (2,009) |
Balance at the end | € 52,344 | € 23,927 |
Fair values - Summary for the f
Fair values - Summary for the fair value of the level 3 hierarchy, possible alternative assumptions of significant unobservable inputs (Details) - Level 3 - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Discount rate | Contingent consideration | ||
Fair values | ||
Increase in input | 1.50% | 1.50% |
Decrease in input | 1.50% | 1.50% |
Increase (decrease) in net result due to increase in input | € (7) | € (11) |
Increase (decrease) in net result due to decrease in input | € 7 | € 11 |
Discount rate | Long-term investments | ||
Fair values | ||
Increase in input | 1.50% | 1.50% |
Decrease in input | 1.50% | 1.50% |
Increase (decrease) in net result due to increase in input | € (8,478) | € (4,118) |
Increase (decrease) in net result due to decrease in input | € 12,539 | € 6,279 |
Commercialization success rate | Contingent consideration | ||
Fair values | ||
Increase in input | 10% | 10% |
Decrease in input | 10% | 10% |
Increase (decrease) in net result due to increase in input | € 109 | |
Increase (decrease) in net result due to decrease in input | € (109) |
Pension plan - Group Personal P
Pension plan - Group Personal Pension Plan (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
United Kingdom | ||
Pension plan | ||
Pension charge for the year | € 3,346 | € 4,519 |
Contributions payable | 379 | 152 |
United States | ||
Pension plan | ||
Pension charge for the year | € 575 | € 646 |
Pension plan - Pension Benefit
Pension plan - Pension Benefit Plan Obligation (Details) - France | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension plan | ||
Actuarial interest rate | 3.35% | 0.80% |
Salary increase | 3% | 1.90% |
Retirement age | 62 years | 62 years |
Duration | 8 years 8 months 12 days | 9 years 2 months 12 days |
Minimum | ||
Pension plan | ||
Employee turnover | 0% | 0% |
Maximum | ||
Pension plan | ||
Employee turnover | 2.51% | 1.10% |
Pension plan - actuarial intere
Pension plan - actuarial interest rate and the resulting change of the relating pension provision (Details) - France - Interest rate - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Pension plan | ||
Increase in assumption | 0.50% | 0.50% |
Decrease in assumption | 0.50% | 0.50% |
Change of relating pension provision due to increase in assumption | € (550) | € (626) |
Change of relating pension provision due to decrease in assumption | € 592 | € 676 |
Pension plan - Additional Infor
Pension plan - Additional Information (Details) - Germany | Dec. 31, 2022 | Dec. 31, 2021 |
Evotec DS | ||
Pension plan | ||
Assumed pension increases | 2% | |
Discount rate | 3.70% | |
Former member of the Management Board of Evotec SE | ||
Pension plan | ||
Assumed pension increases | 2% | 1.50% |
Discount rate | 3.51% | 1.06% |
Pension plan - Pension Provisio
Pension plan - Pension Provisions Development (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension plan | ||
Pension provision at beginning of the year | € 14,428 | € 14,441 |
Addition at acquisition date | 553 | |
Benefit payments from the employer | (692) | (468) |
Actuarial gains/losses from: | ||
Changes in financial assumptions | (1,899) | (551) |
Experience adjustments | 469 | (116) |
Impact of changes in demographic assumptions | 10 | 3 |
Included in net income: | ||
Current service costs | 1,282 | 1,021 |
Interest cost | 110 | 98 |
Pension provision at year-end | 14,261 | 14,428 |
Within one year | ||
Included in net income: | ||
Expected payments of undiscounted benefits | 1,751 | |
Germany | ||
Pension plan | ||
Pension provision at beginning of the year | 189 | |
Included in net income: | ||
Pension provision at year-end | 722 | € 189 |
France | ||
Included in net income: | ||
Pension provision at year-end | € 13,539 |
Commitments and contingencies -
Commitments and contingencies - Operating lease obligations (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Future minimum lease payments for leases signed but not yet recognised | € 62,913 | € 57,870 |
Less than one year | ||
Leases | ||
Future minimum lease payments for leases signed but not yet recognised | 1,561 | 801 |
Between one and five years | ||
Leases | ||
Future minimum lease payments for leases signed but not yet recognised | 16,373 | 10,595 |
More than five years | ||
Leases | ||
Future minimum lease payments for leases signed but not yet recognised | € 44,979 | € 46,474 |
Commitments and contingencies_2
Commitments and contingencies - Other commitments and contingency (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and contingencies | ||
Future minimum payments for miscellaneous long-term commitments | € 22,111 | € 9,459 |
Purchase commitments | € 152,289 | € 66,154 |
Related party transactions (Det
Related party transactions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related parties | |||
Expenses for allowances on outstanding balances | € 1,477 | € 8,969 | |
Associated companies and joint ventures | |||
Related parties | |||
Revenues from Contracts/ Interest income | 36,677 | 28,868 | € 35,450 |
Cost of revenue/ Interest expense | 146 | 497 | |
Other liabilities | 5,635 | ||
Associated companies and joint ventures | Trade accounts receivables | |||
Related parties | |||
Receivables | 3,146 | 2,643 | 2,984 |
Associated companies and joint ventures | Other financial assets | |||
Related parties | |||
Receivables | € 925 | € 153 | 6,435 |
Other related party companies | |||
Related parties | |||
Revenues from Contracts/ Interest income | 32,961 | ||
Other related party companies | Trade accounts receivables | |||
Related parties | |||
Receivables | € 6,492 |
Personnel expenses and cost o_2
Personnel expenses and cost of material (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Personnel expenses and cost of material | |||
Personnel expenses | € 388,050 | € 319,353 | € 250,082 |
Statutory retirement insurance expenses | 15,106 | 12,407 | 10,065 |
Cost of materials | 120,568 | 107,837 | 92,827 |
Foreign | |||
Personnel expenses and cost of material | |||
Personnel expenses | 284,452 | 240,947 | 187,677 |
Statutory retirement insurance expenses | 9,066 | 7,566 | 6,292 |
Cost of materials | € 90,901 | € 83,275 | € 73,064 |
Other disclosures - Subsidiarie
Other disclosures - Subsidiaries and other Investments (Details) | Dec. 31, 2022 |
Aeovian Pharmaceuticals Inc., San Francisco, United States | |
Interests in other entities | |
Voting rights % held in other investments | 3.79% |
AgroBio SAS, Paris, France | |
Interests in other entities | |
Voting rights % held in other investments | 10.02% |
Aurobac Therapeutics SAS, Lyon, France | |
Interests in other entities | |
Voting rights % held in other investments | 12.50% |
Blacksmith Medicines Inc. San Diego, USA | |
Interests in other entities | |
Voting rights % held in other investments | 18% |
Cajal Neuroscience Inc., Seattle, USA | |
Interests in other entities | |
Voting rights % held in other investments | 1.67% |
Carma Fund I, Munich, Germany | |
Interests in other entities | |
Voting rights % held in other investments | 10% |
Carrick Therapeutics Ltd., Dublin, Ireland | |
Interests in other entities | |
Voting rights % held in other investments | 3.48% |
Centauri Therapeutics Ltd., Sandwich (Kent), United Kingdom | |
Interests in other entities | |
Voting rights % held in other investments | 13.17% |
Curie Bio LLC, Boston, United States | |
Interests in other entities | |
Voting rights % held in other investments | 0.11% |
Curie Bio Seed Fund I L.P., Boston, United States | |
Interests in other entities | |
Voting rights % held in other investments | 2.82% |
Exscientia plc (before: Exscientia Ltd.), Oxford, United Kingdom | |
Interests in other entities | |
Voting rights % held in other investments | 11.42% |
Extend Srl, Rome, Italy | |
Interests in other entities | |
Voting rights % held in other investments | 10% |
Fibrocor LLP, Toronto, Canada | |
Interests in other entities | |
Voting rights % held in other investments | 16.26% |
Fibrocor Therapeutics Inc., Toronto, Canada | |
Interests in other entities | |
Voting rights % held in other investments | 8.98% |
IMIDomics Inc., San Francisco, United States | |
Interests in other entities | |
Voting rights % held in other investments | 11.77% |
Immunitas, Therapeutics, Inc., Waltham, United States | |
Interests in other entities | |
Voting rights % held in other investments | 6.17% |
Leon Nanodrugs GmbH, Mnchen, Germany | |
Interests in other entities | |
Voting rights % held in other investments | 13.24% |
Mission BioCapital V LP, Cambridge, United States | |
Interests in other entities | |
Voting rights % held in other investments | 3.64% |
OxVax Limited, Oxford, United Kingdom | |
Interests in other entities | |
Voting rights % held in other investments | 12.22% |
Sernova Corp., Ontario, Canada | |
Interests in other entities | |
Voting rights % held in other investments | 5.16% |
Tubulis GmbH, Munich, Germany | |
Interests in other entities | |
Voting rights % held in other investments | 6.90% |
Ananke Therapeutics Inc, Boston, United States | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 20.09% |
Autobahn Labs, Palo Alto, United States | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 35.94% |
Breakpoint Therapeutics GmbH, Hamburg, Germany | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 34.12% |
Celmatix Inc., New York, United States | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 39.09% |
Curexsys GmbH, Gttingen, Germany | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 43.44% |
Dark Blue Therapeutics LTD, Oxford, United Kingdom | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 39.11% |
Eternygen GmbH, Berlin, Germany | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 24.97% |
NephThera GmbH, Hamburg, Germany | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 50% |
Pancella Inc, Toronto, Canada | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 12.65% |
Quantro Therapeutics GmbH, Wien, Austria | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 38.79% |
Topas Therapeutics GmbH, Hamburg, Germany | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 22.14% |
Tucana Biosciences Inc., Boston, United States | |
Interests in other entities | |
Voting rights % held in associates and joint ventures | 26.92% |
Aptuit Global LLC, Princeton, United States | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Aptuit (Verona) SRL, Verona, Italy | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Aptuit (Oxford) Ltd., Abingdon, United Kingdom | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Aptuit (Potters Bar) Ltd, Abingdon, United Kingdom | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Cyprotex Discovery Ltd., Manchester, United Kingdom | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Cyprotex Ltd., Manchester, United Kingdom | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Cyprotex US, LLC., Framingham, United States | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec (France) SAS, Toulouse, France | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec ID (Lyon) SAS, Marcy l'Etoile, France | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec (Hamburg) GmbH, Hamburg, Germany | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec GT GmbH, Orth an der Donau, Austria | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec (India) Private Limited, Thane, India* | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec International GmbH, Hamburg, Germany | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec (Munchen) GmbH, Martinsried, Germany | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec (UK) Ltd., Abingdon, United Kingdom | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec (US), Inc., Princeton, United States | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Just-Evotec Biologics, Inc, Seattle, United States | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Just-Evotec Biologics EU SAS, Toulouse, France | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec Drug Substance (Germany), Halle, Germany | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Evotec (Modena) Srl., Medolla, Italy | |
Interests in other entities | |
Voting rights % held in subsidiary | 100% |
Other disclosures - Management
Other disclosures - Management Board Remunerations (Details) - Management Board € in Thousands | 12 Months Ended | |
Dec. 31, 2022 EUR (€) EquityInstruments item | Dec. 31, 2021 EUR (€) EquityInstruments item | |
Remuneration | ||
Number of strategic goals/targets | item | 9 | 8 |
Percentage of achievement of company-related targets | 50% | 40% |
Percentage of achievement of corporate financial targets | 50% | 60% |
Number of share-based programs | item | 2 | |
Vesting period | 4 years | 4 years |
Fixed remuneration (short-term) | € 2,343 | € 1,928 |
Variable remuneration (short-term) | € 1,579 | € 1,319 |
Share Performance and Restricted Share Awards | EquityInstruments | 139,229 | 160,048 |
Fair values of SPAs and RSAs granted | € 4,580 | € 5,235 |
Total remuneration | € 8,502 | 8,482 |
Percentage of shares assumed by third party for change-of-control | 30% | |
Dr. Werner Lanthaler | ||
Remuneration | ||
Fixed remuneration (short-term) | € 741 | 711 |
Variable remuneration (short-term) | € 578 | € 590 |
Share Performance and Restricted Share Awards | EquityInstruments | 27,040 | 100,769 |
Fair values of SPAs and RSAs granted | € 1,200 | € 3,313 |
Total remuneration | € 2,519 | 4,614 |
Term of base salary for calculating severance payment | 2 years | |
Dr. Cord Dohrmann | ||
Remuneration | ||
Fixed remuneration (short-term) | € 469 | 451 |
Variable remuneration (short-term) | € 335 | € 275 |
Share Performance and Restricted Share Awards | EquityInstruments | 13,520 | 40,956 |
Fair values of SPAs and RSAs granted | € 600 | € 1,348 |
Total remuneration | € 1,404 | 2,074 |
Term of base salary for calculating severance payment | 18 months | |
Dr. Craig Johnstone | ||
Remuneration | ||
Fixed remuneration (short-term) | € 442 | 382 |
Variable remuneration (short-term) | € 270 | € 234 |
Share Performance and Restricted Share Awards | EquityInstruments | 48,500 | 9,439 |
Fair values of SPAs and RSAs granted | € 1,400 | € 296 |
Total remuneration | € 2,112 | 912 |
Term of base salary for calculating severance payment | 18 months | |
Enno Spillner | ||
Remuneration | ||
Fixed remuneration (short-term) | € 387 | 384 |
Variable remuneration (short-term) | € 216 | € 220 |
Share Performance and Restricted Share Awards | EquityInstruments | 10,816 | 8,884 |
Fair values of SPAs and RSAs granted | € 480 | € 278 |
Total remuneration | 1,083 | € 882 |
Dr. Matthias Evers | ||
Remuneration | ||
Fixed remuneration (short-term) | 304 | |
Variable remuneration (short-term) | € 180 | |
Share Performance and Restricted Share Awards | EquityInstruments | 39,353 | |
Fair values of SPAs and RSAs granted | € 900 | |
Total remuneration | € 1,384 |
Other disclosures - Supervisory
Other disclosures - Supervisory Board Remuneration (Details) - EUR (€) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Remuneration | ||
Supervisory Board share-based compensation | € 0 | € 0 |
Supervisory Board | ||
Remuneration | ||
Remuneration | 503,500 | 480,500 |
Supervisory Board | Prof. Dr. Iris Lw-Friedrich | ||
Remuneration | ||
Remuneration | 150,000 | 113,600 |
Supervisory Board | Roland Sackers | ||
Remuneration | ||
Remuneration | 95,000 | 90,500 |
Supervisory Board | Dr. Mario Polywka | ||
Remuneration | ||
Remuneration | 60,000 | 55,500 |
Supervisory Board | Dr. Elaine Sullivan | ||
Remuneration | ||
Remuneration | 65,300 | 60,000 |
Supervisory Board | Kasim Kutay | ||
Remuneration | ||
Remuneration | 28,400 | 60,000 |
Supervisory Board | Dr. Constanze Ulmer-Eilfort | ||
Remuneration | ||
Remuneration | 73,200 | 32,700 |
Supervisory Board | Prof. Dr. Wolfgang Plischke | ||
Remuneration | ||
Remuneration | 68,200 | |
Supervisory Board | Camilla Macapili Languille | ||
Remuneration | ||
Remuneration | 31,600 | |
Supervisory Board | Members of Supervisory Board | ||
Remuneration | ||
Remuneration | 50,000 | 50,000 |
Supervisory Board | Chairperson of Supervisory Board | ||
Remuneration | ||
Remuneration | 125,000 | 125,000 |
Supervisory Board | Deputy Chairperson of Supervisory Board | ||
Remuneration | ||
Remuneration | 60,000 | 60,000 |
Supervisory Board | Members of Supervisory Board committees | ||
Remuneration | ||
Remuneration | 10,000 | 10,000 |
Supervisory Board | Chairperson of Supervisory Board committee | ||
Remuneration | ||
Remuneration | € 25,000 | € 25,000 |