Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
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 | 177,185,736 |
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 | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | BDO AG Wirtschaftsprüfungsgesellschaft |
Auditor Location | Frankfurt am Main, Germany |
Auditor Firm ID | 1010 |
Document Financial Statement Error Correction [Flag] | false |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Dr. Christian Wojczewski |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated income statement | |||
Revenue | € 781,426 | € 751,448 | € 618,034 |
Cost of Revenue | (606,375) | (577,383) | (466,491) |
Gross profit | 175,051 | 174,065 | 151,543 |
Operating income (expenses) | |||
Research and development | (68,529) | (76,642) | (72,200) |
Selling, general and administrative | (169,610) | (156,190) | (105,445) |
Other operating income | 64,793 | 81,582 | 73,472 |
Other operating expenses | (44,202) | (1,965) | (5,691) |
Impairments | (5,011) | (683) | |
Total operating income (expenses) | (222,558) | (153,215) | (110,547) |
Operating income (loss) | (47,507) | 20,850 | 40,996 |
Non-operating income (expense) | |||
Gain (loss) on investment in financial instruments reevaluation | (9,143) | (172,159) | 211,754 |
Share of profit (loss) and reevaluation of at-equity investments | (20,752) | (15,098) | (16,570) |
Other financial income | 9,263 | 8,336 | 2,272 |
Other financial expense | (11,739) | (13,150) | (9,254) |
Other non-operating income (expense) | (714) | 12,357 | 7,782 |
Gain from Bargain Purchase | 4,908 | ||
Net Income (loss) before taxes | (80,593) | (153,957) | 236,980 |
Income taxes | (3,320) | (21,698) | (21,470) |
Net income (loss) | € (83,913) | € (175,655) | € 215,510 |
Weighted average shares outstanding | 176,916,663 | 176,674,341 | 166,405,926 |
Net income per share (basic) | € (0.47) | € (0.99) | € 1.30 |
Net income per share (diluted) | € (0.47) | € (0.99) | € 1.30 |
Consolidated statement of compr
Consolidated statement of comprehensive income - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated statement of comprehensive income | |||
Net income (loss) | € (83,913) | € (175,655) | € 215,510 |
Items which are not re-classified to the income statement | |||
Remeasurement of defined benefit obligation | (51) | 1,420 | 664 |
Revaluation of equity investments | (1,080) | (11,729) | |
Taxes | 13 | (357) | 7 |
Items which have to be re-classified to the income statement at a later date | |||
Foreign currency translation | (1,760) | (598) | 26,091 |
Revaluation and disposal of other short-term investments measured at fair value through other comprehensive income | 10,056 | (13,500) | (1,878) |
Taxes | (419) | ||
Other comprehensive income (loss) | 6,759 | (24,764) | 24,884 |
Total comprehensive income (loss) | € (77,153) | € (200,419) | € 240,394 |
Consolidated statement of finan
Consolidated statement of financial position - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | [1] | € 510,909 | € 415,155 |
Investments | 93,203 | 303,334 | |
Trade and other receivables | [2] | 98,396 | 171,798 |
Contract assets | 25,000 | 30,516 | |
Inventories | 30,890 | 29,825 | |
Current tax assets | 80,659 | 54,422 | |
Other current financial assets including derivatives | 12,759 | 11,494 | |
Prepaid expenses and other current assets | 51,345 | 57,126 | |
Total current assets | 903,162 | 1,073,671 | |
Non-current assets: | |||
Non-current investments and other non-current financial assets | [3] | 139,023 | 134,289 |
Investments in associates and Joint ventures | 3,071 | 16,043 | |
Property, plant and equipment | 806,563 | 650,201 | |
Intangible assets and Goodwill | 291,089 | 298,638 | |
Deferred tax assets | 14,330 | 10,327 | |
Non-current tax assets | 94,393 | 70,293 | |
Other non-current assets | 837 | 3,785 | |
Total non-current assets | 1,349,306 | 1,183,576 | |
Total assets | 2,252,468 | 2,257,247 | |
Current liabilities: | |||
Current financial liabilities | [4] | 149,096 | 23,468 |
Trade and other payables | 134,319 | 97,277 | |
Contract liabilities | 97,587 | 122,922 | |
Deferred income | 10,268 | 13,748 | |
Provisions | 45,165 | 54,410 | |
Current income tax liabilities | 5,565 | 8,987 | |
Other current liabilities | 22,572 | 16,894 | |
Total current liabilities | 464,573 | 337,706 | |
Non-current liabilities: | |||
Non-current financial liabilities | [5] | 477,112 | 490,292 |
Deferred tax liabilities | 18,137 | 18,524 | |
Provisions | 16,063 | 16,427 | |
Contract liabilities | 155,287 | 206,136 | |
Other non-current liabilities | 1,387 | 977 | |
Total non-current liabilities | 667,987 | 732,357 | |
Stockholders' equity: | |||
Share capital | 177,186 | 176,953 | |
Additional paid in capital | 1,449,654 | 1,440,010 | |
Retained Earnings | (476,290) | (392,377) | |
Accumulated other comprehensive income | (30,643) | (37,402) | |
Total stockholders' equity | 1,119,908 | 1,187,184 | |
Total liabilities and stockholders' equity | € 2,252,468 | € 2,257,247 | |
[1] incl. € 11,819 k of restricted cash In annual report 2023, the positions trade accounts receivables and accounts receivables from associated companies and other long-term investments are aggregated to provide a clearer picture of the financial position. The previous year figures have been adjusted accordingly. In the annual report 2023 the positions long-term investments and other non-current financial assets are aggregated in order to provide a clearer picture of the financial position. The previous year figures have been adjusted accordingly. In the annual report 2023, the positions current loan liabilities, current portion of lease obligations and other current financial liabilities are aggregated in order to provide a clearer picture of the financial position. The previous year figures have been adjusted accordingly. In the annual report 2023, the positions non-current loan liabilities and long-term lease obligations are aggregated in order to provide a clearer picture of the financial position. The previous year figures have been adjusted accordingly. |
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 | Retained Earnings | Total |
Beginning balance at Dec. 31, 2020 | € 163,915 | € 1,030,702 | € (41,782) | € 4,260 | € (432,639) | € 724,456 |
Beginning balance (Shares) at Dec. 31, 2020 | 163,914,741 | 163,915,000 | ||||
Capital increase | € 11,497 | 391,629 | € 403,126 | |||
Capital increase (Shares) | 11,497,500 | |||||
Exercised stock options | € 1,196 | 1,196 | ||||
Exercised stock options (shares) | 1,195,954 | |||||
Stock option plan | 7,805 | 7,805 | ||||
Deferred and current tax on future deductible expenses | 708 | 708 | ||||
Other comprehensive income | 26,091 | (1,207) | 24,884 | |||
Net income (loss) for the period | 215,510 | 215,510 | ||||
Total comprehensive income (loss) | 26,091 | (1,207) | 215,510 | 240,394 | ||
Ending balance at Dec. 31, 2021 | € 176,608 | 1,430,136 | (15,691) | 3,053 | (216,421) | € 1,377,685 |
Ending balance (Shares) at Dec. 31, 2021 | 176,608,195 | 176,608,000 | ||||
Exercised stock options | € 345 | € 345 | ||||
Exercised stock options (shares) | 344,458 | |||||
Stock option plan | 9,919 | 9,919 | ||||
Transaction costs | (45) | (45) | ||||
Deferred and current tax on future deductible expenses | (301) | (301) | ||||
Other comprehensive income | (598) | (24,166) | (24,764) | |||
Net income (loss) for the period | (175,655) | (175,655) | ||||
Total comprehensive income (loss) | (598) | (24,166) | (175,655) | (200,419) | ||
Ending balance at Dec. 31, 2022 | € 176,953 | 1,440,010 | (16,289) | (21,113) | (392,377) | € 1,187,184 |
Ending balance (Shares) at Dec. 31, 2022 | 176,952,653 | 176,953,000 | ||||
Exercised stock options | € 233 | € 233 | ||||
Exercised stock options (shares) | 233,083 | |||||
Stock option plan | 9,630 | 9,630 | ||||
Transaction costs | 14 | 14 | ||||
Other comprehensive income | (1,760) | 8,519 | 6,759 | |||
Net income (loss) for the period | (83,913) | (83,913) | ||||
Total comprehensive income (loss) | (1,760) | 8,519 | (83,913) | (77,153) | ||
Ending balance at Dec. 31, 2023 | € 177,186 | € 1,449,654 | € (18,049) | € (12,594) | € (476,290) | € 1,119,908 |
Ending balance (Shares) at Dec. 31, 2023 | 177,185,736 | 177,185,736 |
Consolidated statement of cash
Consolidated statement of cash flows - EUR (€) € in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Cash flows from operating activities | ||||||
Net income (loss) | € (83,913) | € (175,655) | € 215,510 | |||
Income tax expense | 3,320 | 21,698 | 21,470 | |||
Depreciation and amortization | 92,979 | 83,196 | 70,399 | |||
Impairment of intangible assets | 5,011 | 683 | ||||
Equity settled share based payment transaction | 9,630 | 9,919 | 7,805 | |||
Financial income and expenses | 2,475 | 13,536 | 14,363 | |||
Share of loss (profit) and reevaluation of at-equity investments | 20,752 | 15,098 | 28,433 | |||
Gain (loss) on investment in financial instruments reevaluation | 9,143 | 172,159 | (223,791) | |||
Transactions costs and income related to acquisitions | (4,908) | |||||
Other non-cash items | (114) | (16,017) | 4,384 | |||
Changes in net working capital | (9,944) | 105,285 | (18,686) | |||
Income taxes paid | (12,902) | (18,500) | 6,028 | |||
Net cash from operating activities | 36,439 | 205,811 | 126,599 | |||
Cash flows from investing activities | ||||||
Interest received | [1] | 10,365 | 3,026 | 1,061 | ||
Acquisition of property, plant and equipment | (213,321) | (181,354) | (118,943) | |||
Proceeds from sale of property, plant and equipment | 530 | |||||
Acquisition and / or capitalization of intangible assets and development | (2,677) | |||||
Acquisition of subsidiaries net of cash acquired | 2,088 | (20,859) | (410) | |||
Acquisition of investments in associated companies, other long-term investments and convertibles | (23,644) | (62,959) | (28,056) | |||
Proceeds from divestment/sale of investments in associated companies, other long-term investments and convertibles | 1,396 | |||||
Acquisition of short-term investments | (48,391) | (355,817) | (123,696) | |||
Proceeds from sale of short-term investments | 260,363 | 205,166 | 27,250 | |||
Net cash used in investing activities | (13,291) | (412,797) | (242,794) | |||
Cash flows from financing activities | ||||||
Interest paid | [1] | (12,853) | (5,731) | (5,423) | ||
Proceeds from capital increase | 355 | 403,126 | ||||
Proceeds from issue of loans and borrowings | 219,923 | 30,791 | ||||
Proceeds from issue of treasury shares | 219 | 344 | 1,196 | |||
Repayments of loans and borrowings | (112,880) | (34,067) | (16,018) | |||
Payment of lease liabilities | (22,446) | (19,046) | (20,665) | |||
Net cash from financing activities | 71,963 | (58,145) | 393,007 | |||
Net increase (decrease) in cash equivalents | 95,110 | (265,131) | 276,812 | |||
Cash and cash equivalents at January 1 | 415,155 | [2] | 699,326 | [2] | 422,580 | |
Effect of movements in exchange rates on cash held | 644 | (19,040) | (66) | |||
Cash and cash equivalents at December 31 | [2] | € 510,909 | € 415,155 | € 699,326 | ||
[1] Interest received and interest paid have been reallocated from the operating cash flow to the investing cash flow and the financing cash flow, respectively. Hence, the previous year figures deviate from the figures published in the annual report 2022. The change was made to provide a clearer picture of the financial position. incl. € 11,819 k of restricted cash |
Consolidated statement of cas_2
Consolidated statement of cash flows (Parenthetical) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated statement of cash flows | ||
Restricted cash | € 11,819 | € 14,458 |
Business description and basis
Business description and basis of presentation | 12 Months Ended |
Dec. 31, 2023 | |
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, Germany) is registered in the Commercial Registry of Hamburg with HRB 156381. The Company was founded on December 8, 1993, and is listed on the Frankfurt Stock Exchange (XETRA) since November 10, 1999, Segment Prime Standard, under the ticker “EVT“ as well as on NASDAQ, New York, USA under the trading symbol “EVO“ since November 8, 2021. Evotec SE, as the ultimate parent company, prepares its consolidated financial statements in its functional currency, the Euro. All amounts in the notes are stated in thousands of Euros (k€) unless otherwise noted. The Euro is the reporting currency of the Group. Due to rounding, amounts may not add up precisely to the totals provided. The consolidated financial statements have been prepared in accordance with the IFRS general principles of fair presentation, going concern, accrual basis of accounting, consistency of presentation, materiality, and aggregation. The presentation of the consolidated income statement is based on the internal functions of the Group. The Management Board prepared the consolidated financial statements for the financial year 2023 on April 22, 2024, and subsequently submitted them to the Supervisory Board for review and approval at the meeting on April 23, 2024. 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). |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies | |
Significant accounting policies | (2) Significant accounting policies The significant accounting policies applied in the preparation of these Consolidated Financial Statements are set out below or in the respective note. These policies have been consistently applied to all the years presented, unless otherwise stated. - Basis for preparation - The consolidated financial statements cover the twelve-month periods ended December 31, 2023 and 2022. In accordance with Regulation No. 1606/2002 of the European Parliament and Council of July 19, 2002 on the application of international accounting standards, Evotec has presented its consolidated financial statements in accordance with IFRS since 2005. The term “IFRS” refers collectively to international accounting and financial reporting standards (IASs and IFRSs) and to interpretations of the interpretations committees (SIC and IFRIC) with mandatory application as of January 1, 2023. The consolidated financial statements of Evotec as of December 31, 2023 have been prepared in compliance with IFRS as issued by the International Accounting Standards Board (IASB) and with IFRS as endorsed by the European Union as of December 31, 2023. Additional requirements of Section §315e (1) of the German Commercial Code (HGB) have been applied accordingly in accordance with the version endorsed at the end of the reporting period. - Significant accounting judgements and estimates- The preparation of the Consolidated Financial Statements in accordance with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, revenues and expenses, the accompanying disclosures, as well as the disclosure of contingent liabilities. These estimates inherently contain a degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions. The Group evaluates these accounting judgements and estimates on an ongoing basis and bases the estimates on historical experience, current and expected future outcomes, third-party valuation and various other assumptions that the Group believes are reasonable under the circumstances. Existing circumstances and assumptions about future developments may change due to circumstances beyond the Group’s control and are reflected in the assumptions if and when they occur. The Group revises significant estimates as relevant and applicable if changes occur in circumstances or if new information or historical data is available and would require Evotec to do so. The areas where the most significant judgements and estimates are made relate to the following areas: Judgement: ● Revenue recognition, determination of performance obligation and allocation of consideration as well as determination of advancement for over time performance obligations; ● Determination of the lease term and more specifically the assessment whether a lease option to extend or cancel a lease in which the Group is a lessee is reasonably certain to be exercised or not; ● Likelihood of occurrence of provisions, uncertain tax positions and contingent liabilities; ● Impairment analyses in relation with goodwill and intangible assets are performed annually as well as the determination of whether the carrying value exceeds the recoverable amount whenever a triggering event occurs. These analyses are generally based on estimates of discounted future cash flows; ● Determination of the fair values of Level 3 financial assets where significant inputs of the fair value measurement are not based on observable market data. Estimates: ● Assessment of the recoverable amount of goodwill and intangible assets; ● Measurement of the recoverability of deferred tax assets; ● Determination of fair values of acquired identifiable intangible assets as part of a business combination; ● Determination of budgeted FTE rates in the assessment of percentage of completion in relation with revenue recognition The potential impact of climate related matters, including legislation which may affect the fair value of financial assets and liabilities in the Consolidated Financial statements has been considered, especially but not limited to deferred tax assets recoverability, useful life of tangibles and intangibles and provisions. As of December 31, 2023, the Group does not believe that the impact of climate related matters would be material to the Consolidated Financial Statements. For further discussion of these significant judgements and estimates, reference is made to the respective Accounting Policies and Notes within these Consolidated Financial Statements that relate to the above topics. - Basis for consolidations - The Consolidated Financial Statements comprise the financial statements of Evotec SE and all the subsidiaries that the Company controls, i.e. when it is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and in cases where the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including the contractual arrangement(s) with the other vote holders of the investee, rights arising from other contractual arrangements and the Group’s voting rights and potential voting rights. Subsidiaries Subsidiaries are fully consolidated from the date that control commences until the date that control ceases. Transactions between consolidated companies are eliminated, as well as intragroup profits. Associates Associates are all entities over which the Group has significant influence but no control. Significant influence is presumed with a shareholding between 20% and 50% of the voting rights or when the Group has board representation through which it is able to exercise significant influence, such as, but not limited to participating in the financial and operating policy decisions of that entity but does not have the power to exercise control or joint control over those policies. Investments in associates are accounted for using the at-equity method and are initially recognized at cost. Unrealized gains and losses from transactions between the Group and its associates or joint ventures are recognized only to the extent of unrelated investors` interests in the associates. Joint arrangements The Group classifies its joint arrangements (i.e., arrangements in which the Group exercises joint control with one or more other parties) either as a joint operation (in which case, the Group recognizes the assets and liabilities of the operation in proportion to its rights and obligations relating to those assets and liabilities) or as a joint venture. Loss of control Upon loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any non-controlling interests, and other components of equity (if any) related to the subsidiary. Any surplus or deficit arising from the loss of control is recognized in the Consolidated Income Statement. If the Group retains any interest in the previous subsidiary, such interest is measured at fair value at the date the control is lost. Subsequently, it is accounted for as either an equity accounted investee or as a financial asset depending on the level of influence retained. 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 (December 31). - Foreign currencies - Foreign currency transaction The financial statements of all Evotec Group entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The Euro (EUR) is the functional currency of the Group and the presentation currency of the Consolidated Financial Statements. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or the valuation in cases where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to Euro at the exchange rates prevailing at the reporting date. The income and expenses of foreign operations are translated to Euros at the monthly average foreign exchange rate. Foreign currency differences arising upon translation of foreign operations into Euros are recognized in Other Comprehensive Income and presented as part of currency translation reserves in Shareholders Equity. In the balance sheet these are recognized under retained earnings. When a foreign operation is disposed of, leading to a loss of control, significant influence or joint control, the cumulative amount in the currency translation differences related to the foreign operation is reclassified to the Consolidated Income Statement as part of the gain or loss on disposal. - Application of standards; amendments and interpretation- The following amendments became effective as at January 1, 2023: ● IFRS 17 Insurance Contracts (including Amendments to IFRS 17 issued in June 2020 and Amendment to IFRS 17 - Initial Application of IFRS 17 and IFRS 9—Comparative Information issued in December 2021) ● Amendments to IAS 8 – Definition of Accounting Estimates ● Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies ● Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction ● Amendments to IAS 12 - International Tax Reform – Pillar Two Model Rules None of those amendments had a significant impact on the Company´s consolidated financial statements for the 12 months period ended December 31, 2023. The following amendments will become effective after January 1, 2024 however may be early adopted: ● Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback Transaction (January 1, 2024) ● Amendments to IAS 1 - Classification of Liabilities as Current or Non-current (including the amendment to IAS 1 - Classification of Liabilities as Current or Non-current - Deferral of Effective Date issued in July 2020) (January 1, 2024) ● Amendments to IAS 1 - Non-current Liabilities with Covenants (January 1, 2024) ● Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements (January 1, 2024) ● Amendments to IAS 21 - Lack of Exchangeability (January 1, 2025) ● IFRS 18 - Presentation and Disclosures in Financial Statements (issued by IASB on April 9, 2024, effective date January 1, 2027) Evotec has not early adopted any new standards, interpretations or amendments that have been issued but are not yet effective in these consolidated financial statements. None of those amendments are expected to have a significant impact on the Group´s consolidated financial statements. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2023 | |
Segment information | |
Segment information | (3) Segment information EVT Execute and EVT Innovate were identified by the Management Board as reporting 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. Management does not allocate assets and liabilities to segments. The assessment of the individual operating segments is based on revenues and operating income (loss). Intersegment revenues are valued on an arms-length principle. The segment information for the financial year 2023 is as follows: EVT EVT Elimination between Evotec In k€ Execute Innovate the segments Group Revenues 514,542 266,884 — 781,426 Intersegment revenues 224,196 — (224,196) — Cost of revenue (631,373) (184,700) 209,698 (606,375) Gross profit 107,365 82,184 (14,497) 175,051 Operating income and (expenses) Research and development cost (4,391) (78,636) 14,497 (68,529) Selling, general and administrative cost (130,810) (38,800) — (169,610) Impairment of intangible assets (5,011) — — (5,011) Other operating income 31,337 33,456 — 64,793 Other operating expenses (41,508) (2,694) — (44,202) Total operating income and (expenses) (150,383) (86,673) 14,497 (222,558) Operating income (loss) (43,018) (4,489) (47,507) The segment information for the financial year 2022 is as follows: EVT EVT Elimination between Evotec- In k€ Execute Innovate the segments Group Revenues 546,718 204,730 — 751,448 Intersegment revenues 188,917 — (188,917) — Cost of revenue (605,751) (145,566) 173,934 (577,383) Gross profit 129,884 59,164 (14,983) 174,065 Operating income and (expenses) Research and development cost (5,305) (86,320) 14,983 (76,642) Selling, general and administrative cost (125,293) (30,897) — (156,190) Impairment of intangible assets — — — — Other operating income 35,197 46,385 — 81,582 Other operating expenses (1,960) (5) — (1,965) Total operating income and (expenses) (97,361) (70,837) 14,983 (153,215) Operating income (loss) 32,523 (11,673) — 20,850 The segment information for the financial year 2021 is as follows: EVT EVT Elimination between Evotec- In k€ Execute Innovate the segments Group Revenues 471,052 146,982 — 618,034 Intersegment revenues 139,116 (139,116) — Cost of revenue (482,588) (110,379) 126,476 (466,491) Gross profit 127,580 36,603 (12,640) 151,543 Operating income and (expenses) Research and development cost (2,900) (81,940) 12,640 (72,200) Selling, general and administrative cost (83,936) (21,509) — (105,445) Impairment of intangible assets — (683) — (683) Other operating income 26,684 46,788 — 73,472 Other operating expenses (4,319) (1,372) — (5,691) Total operating income and (expenses) (64,471) (58,716) 12,640 (110,547) Operating income (loss) 63,109 (22,113) — 40,996 - Geographical Breakdown- The geographical breakdown of revenues from customers for the business year 2023 is stated below: in k€ EVT Execute EVT Innovate Evotec Group Revenues by region USA 241,555 217,869 459,424 Germany 15,385 18,749 34,134 France 25,666 6,339 32,005 United Kingdom 81,539 4,829 86,368 Switzerland 64,876 48 64,924 Rest of the world 76,105 19,049 95,154 Total revenue from contracts with customers 505,125 266,884 772,009 Revenue from contributions 9,417 — 9,417 Total Revenue 514,542 266,884 781,426 The geographical breakdown of revenues from customers for the business year 2022 is stated below: in k€ EVT Execute EVT Innovate Evotec Group Revenues by region USA 273,204 134,550 407,754 Germany 32,765 26,130 58,895 France 22,546 9,728 32,274 United Kingdom 105,557 9,699 115,256 Switzerland 22 — 22 Rest of the world 102,073 24,623 126,696 Total revenue from contracts with customers 536,167 204,730 740,897 Revenue from contributions 10,551 — 10,551 Total Revenue 546,718 204,730 751,448 The geographical breakdown of revenues from customers for the business year 2021 is stated below: in k€ EVT Execute EVT Innovate Evotec Group Revenues by region USA 227,444 101,593 329,037 Germany 24,279 22,573 46,852 France 16,876 13,715 30,591 United Kingdom 98,735 5,905 104,640 Switzerland 24,398 80 24,478 Rest of the world 70,755 3,116 73,871 Total revenue from contracts with customers 462,487 146,982 609,469 Revenue from contributions 8,565 — 8,565 Total Revenue 471,052 146,982 618,034 Revenue is allocated to regions according to the location of the head office of the external customer. Non-current assets categorized by the location of the companies as of December 31, can be analyzed as follows: In k€ 2023 2022 USA 221,195 231,439 UK 221,177 211,115 Italy 259,649 227,113 France 337,960 205,749 Germany 153,338 160,970 Austria 2,634 3,914 Canada — 1,906 1,195,954 1,042,206 Non-current assets shown in this table comprise of fixed assets, intangible assets, goodwill, non-current tax receivables, other non-current assets as well as investments for which the equity-method is applied. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue. | |
Revenue | (4) Revenue -Accounting Principles- Revenue 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 Group assesses collectability based on a number of factors, including past transaction history with the customer and the customer’s creditworthiness. Multi-element contracts The Group regularly enters into arrangements for the R&D and subsequent manufacture of product candidates. Such arrangements may require the Group to deliver various rights, services and/or goods, including intellectual property rights, licenses, technology access fee, R&D services, and manufacturing services. The underlying terms of these arrangements generally provide for consideration to the Group in the form of non-refundable upfront fees, development and R&D or commercial performance milestone payments, royalty payments or profit sharing. In arrangements involving more than one performance obligation, each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether: ● the customer can benefit from the good or service either on its own or together with other resources that are readily available and ● the good or service is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects the Group´s best estimate of what the selling price would be if the deliverable was regularly sold by the Group on a stand-alone basis or by using an adjusted market assessment approach if the selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred. For performance obligations satisfied over time, the Group usually uses an input-based method to determine the percentage of completion. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. Material payments for those services are generally made in advance by the customer and recorded as contract liabilities until the related performance obligations are satisfied. Contract assets are recognized in case the Group´s progress of completion of its performance obligations exceeds the amount of the payments received. Milestone payments Milestone payments for research and development are contingent upon the occurrence of a future event and represent a variable consideration. The Group usually estimates at contract’s inception that the most likely amount for milestone payments is zero. The most likely amount method of estimation is considered the most predictive for the outcome since the outcome is binary; e.g. achieving a specific success in clinical development (or not). The Group includes milestone payments in the total transaction price only to the extent that it is highly probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Service Fees Service fees for the assignment of personnel to research and development collaborations are recognized as revenues in the period the services were provided. Technology access fees Revenue from technology access fees is recognized over the related service period. Payments for technology access fees are generally paid in full or in parts in advance and recorded as contract liabilities until earned. Licenses of intellectual property The Group distinguishes between the right to use IP and the right to access IP. Revenue for a right-to-use license is recognized by the Group when the licensee can use and benefit from the IP after the license term begins, e.g., the Group has no further obligations in the context of the out-licensing of a drug candidate or technology. In practice that means at the date of the sale or when the licensee gains effectively access. Revenue from a right to access license of the intellectual property is recognized when the Group undertakes activities during the license term that significantly affect the IP, the customer is directly exposed to any positive or negative effects of these activities, and these activities do not result in the transfer of a good or service to the customer. Revenues from the right to access the IP are recognized on a straight-line basis over the license term. Royalties The Group receives royalties generated from successful development. Those royalties are generally sales based with additional milestones payments depending on the underlying market or product. The revenue generated from royalties is recognized as the underlying sales occur when it is highly probable that the consideration will be received. Financing component and time value of money The Group does not enter into arrangements where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year or the cash consideration and the stand alone selling price differs significantly. Additionally, the Group does not consider any prepayments provided by the customer as financing components. Consequently, the Group does not adjust any of the transaction prices for the time value of money. Contract assets Contract assets correspond to amounts accrued or due by customers for work in progress depending on the stage of completion of the analysis/work performed. The Group regularly assesses the state of its billing operations and the level of payer’s reimbursements based on specific facts and circumstances and historical recoverability data in order to identify issues which may impact the collection. Contract liabilities A contract liability is the obligation of the Group to transfer goods or services to a customer for which the Group has received a consideration (or an amount of consideration is due). If a customer pays the consideration before the Group 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 the Group fulfills its contractual obligation. The Group´s contracts do not include financing components as all up-front consideration received are prepayments on service obligations. Revenue from contributions Revenue Recognition from Contributions The Group 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. -Revenue- The following schedule entails detailed information about the Group’s revenues in the financial year 2023: in k€ EVT Execute EVT Innovate Evotec Group Revenues from contracts with customers Fee for service and FTE-based research payments 472,205 254,724 726,929 Recharges* 30,496 7,065 37,561 Compound access fees 1,283 776 2,059 Milestone fees 1,026 3,759 4,785 Licenses 116 559 675 Total revenue from contracts with customers 505,125 266,884 772,009 Timing of revenue recognition At a point in time 77,763 10,824 88,587 Over a period of time 427,361 256,060 683,421 Total revenue from contracts with customers 505,125 266,884 772,009 Revenue from contributions 9,417 — 9,417 Total Revenue 514,542 266,884 781,426 *) Comprises of material re-charges to the customer The following schedule entails detailed information about Evotec’s revenues in the financial year 2022: in k€ EVT Execute EVT Innovate Evotec Group Revenues from contracts with customers Fee for service and FTE-based research payments 488,168 185,268 673,436 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 revenue from contracts with customers 536,167 204,730 740,897 Timing of revenue recognition At a point in time 44,722 17,780 62,502 Over a period of time 491,445 186,950 678,395 Total revenue from contracts with customers 536,167 204,730 740,897 Revenue from contributions 10,551 — 10,551 Total Revenue 546,718 204,730 751,448 *) Comprises of material re-charges to the customer The following schedule shows the revenue in the financial year 2021: in k€ EVT Execute EVT Innovate Evotec Group Revenues from contracts with customers Service fees and FTE-based research payments 422,619 99,570 522,189 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 revenue from contracts with customers 462,487 146,982 609,469 Timing of revenue recognition At a certain time 38,336 47,124 85,460 Over a period 424,151 99,858 524,009 Total revenue from contracts with customers 462,487 146,982 609,469 Revenue from contributions 8,565 — 8,565 Total Revenue 471,052 146,982 618,034 *) Comprises of material re-charges to the customer The transaction prices allocated to the remaining performance obligation (unsatisfied or partially unsatisfied) are as follows: in k€ December 31, 2023 December 31, 2022 December 31, 2021 In the course of the year 571,825 405,710 225,061 After one year 335,427 158,068 67,619 During the year 2023 no material revenue was recognized from performance obligations that were already fully or partially fulfilled in prior reporting periods. In 2023, 2022 and 2021, BMS contributed more than 10% to the consolidated revenues with € 195,386k (2022: € 138,737k, 2021: € 98,616 k). -Contract Assets- In the course of the reporting year, contract assets changed as follows: In k€ 2023 2022 Balance as of January 1 30,516 18,614 Additions 180,305 116,215 Reclassifications to Trade Receivables due to Invoicing (185,754) (101,908) Translation differences and other (67) (2,405) Balance as of December 31 25,000 30,516 As of December 31, 2023 and 2022, no material risk provision was recorded. -Contract Liabilities- As of December 31, 2023 and 2022, current and non-current contract liabilities mainly originate from the upfront payments relating to the customer contracts with BMS in the amount of € 202,238k (December 31, 2022: € 235,652k) of which € 49,153k (December 31, 2022: € 42,506k) is classified as current contract liabilities. Current Non-current In k€ 2023 2022 2023 2022 Balance as of January 1 122,922 112,061 206,136 33,476 Additions 203,825 502,094 — 184,660 Reduction due to Recognition of Revenue (279,691) (503,747) — — Reclassification from non-current to current 50,849 12,000 (50,849) (12,000) Translation differences and other (318) 514 — — Balance as of December 31 97,587 122,922 155,287 206,136 |
Other operating income (Loss)
Other operating income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Other operating income (Loss) | |
Other operating income (Loss) | (5) Other operating income (Loss) -Accounting Principles- Operating income excludes in general items that are not directly related to the Group’s operating activities, except cyber-related costs which are also included in the operating income. Activities in relation with the Group´s operating activities primarily relate to gains or losses on the disposal of material property, plant and equipment, gains or losses on the sale of Group companies, associates and joint ventures, indemnification provisions as well as disputes with minority shareholders. Other Operating Income The Group may receive 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. The Group determined that under its significant tax development programs, 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 programs are provided for specific activities, often limited to specific R&D expenses. As such, the Group accounts for such tax development programs 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, the Group 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. Research and development Research activities expenses undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognized in profit or loss when incurred. Refer to Note 9 for further details regarding the capitalization policy of IP R&D and other related expenses. Government Grants Government grants are recognized when all the conditions associated to those grants have been substantially complied with, and all attached conditions have been 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 evenly over the expected useful life of the related asset. - Personnel expenses and cost of material- The personnel expenses of the Group in 2023 amounted to € 377,587k of which € 256,259k relate to personnel expenses outside Germany, in the UK, Italy, Switzerland (only 2021), France, and the US (2022: € 388,050k and € 284,452k respectively, 2021: € 319,353k and € 240,947k, respectively). Thereof expenses for the statutory retirement insurance amounted to € 17,041k of which € 9,788k relate to expenses outside Germany in the United Kingdom, Italy, Switzerland (only 2021), France and the US (2022: € 15,106k and k€ € 9,066k respectively, 2021: € 12,407k and € 7,566k respectively.) In addition, an amount of € 58,276k (2022: € 55,894k, 2021: € 40,309k) of the Group´s personnel expenses relate to social security expenses. - Cost of material- Cost of materials in 2023 amounted to € 118,918k thereof € 88,192k were cost of materials outside Germany in the UK, Italy, Switzerland (only 2021), France, Austria and the US (2022: € 120,568k and € 90,901k respectively, 2021: € 107,837k and € 83,275k, respectively.) - Research and Development- In 2023, research expenses mainly relate to internal Innovate R&D projects in the amount of € 56,511k (December 31, 2022: € 62,100k; December 31, 2021: € 64,064k) research activities of Execute reporting segment in the amount of € 1,319k (December 31, 2022: € 2,345k; December 31, 2021: € 2,528k) and overhead costs in the amount of € 10,699k (December 31, 2022: € 12,198k; December 31, 2021: € 8,136k). Overhead costs mainly consist of personnel overhead costs. The decrease in research and development expenses compared to financial year 2022 is mainly due to altered commencement dates for some of the Group´s R&D projects. Research and Development costs include amortization of intangible assets and depreciation of property, plant, and equipment of € 464k (December, 31 2022: € 471k; December 31, 2021:€ 1,042k). -Selling, general and administrative expenses- Included in selling, general and administrative expenses in 2023 are expenses for sales and marketing in the amount of € 16,869k (2022: € 13,491k, 2021: € 9,422k). Other administrative expenses in 2023 amount to € 152,741k (2022: € 142,699k, 2021: € 96,023k). The increase in administrative costs from 2022 (and 2021) to 2023 is in particular due to increased expenses for maintaining compliance with the SOX regulations, increased personnel costs as a result of company growth and higher expenses for IT services. The increase in administrations costs in 2022 compared to 2021 is further due to the introduction of a new ERP which includes associated consulting services. Included in selling, general and administrative expenses are amortization for intangible assets and depreciation for property, plant and equipment of € 43,522k (2022: € 38,025k, 2021: € 24,957k). -Other operating income- In 2023 and 2022, and 2021, other operating income mainly relates to refunds from Sanofi relating to the development of portfolios in Lyon in the amount of € 16,600k (2022: € 34,174k, 2021: € 35,762k). In addition, other operating income includes tax refunds in France (2023: € 24,812k, 2022: € 25,068k, 2021: € 22,691k) and similar refunds in the UK from “Research and Development Expenditure Credit” (RDEC) ( 2023: € 11,010k, 2022: € 7,250k, 2021: € 6,502k), Italy (2023: € 6,352k, 2022: € 7,342k, 2021:€ 2,784k) and Germany (2023: € 1,000k, 2022: € 3,280k, 2021: € 0k). -Other operating expense- As of December 31, 2023 other operating expense amount to € 44,202k (December 31, 2022: € 1,965k, December 31, 2021: € 5,691k ). The increase in 2023 is mainly due to managing the impact of the cyber-attack. The costs are related to external costs such as third-party involvement from consultants or legal advisors, and internal costs in form of work contributed by Evotec staff. |
Income and deferred tax
Income and deferred tax | 12 Months Ended |
Dec. 31, 2023 | |
Income and deferred tax | |
Income and deferred tax | (6) Income and deferred tax -Accounting Principles- Income taxes comprise current, non-current and deferred tax. Income tax is recognized in the Consolidated Income Statement except to the extent that it relates to items recognized directly within equity or in Other Comprehensive Income. Current tax is the expected taxes payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. The tax rates for domestic companies are between 27% and 32% and for foreign companies between 19% and 31%. In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities or, alternatively, a provision is made for the amount that is expected to be settled, where this can be reasonably estimated. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding adequacy of existing tax assets and liabilities. Such changes to tax assets and liabilities will impact the income tax expense in the period during which such a determination is made. Deferred tax assets and liabilities are recognized, using the consolidated Balance Sheet method, for the expected tax consequences of temporary differences between the carrying amounts of assets and liabilities according to IFRS and the amounts used for taxation purposes. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by 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, and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences, ● 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 and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity or on different taxable entities, but the Group intends to settle current tax liabilities and assets on a net basis, or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that there will be future taxable profits against which they can be utilized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during the periods when the deferred tax assets become deductible. The Group considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. International Tax Reform - Pillar II Framework The Group falls within the scope of application of the so-called Pillar II framework, that entered into force in the German legislation on December 28, 2023. As the Minimum Tax Act applies for the first-time financial years beginning on or after December 30, 2023 (“MinStG”), there was no minimum tax exposure for the fiscal year 2023. The implementation of the global minimum tax rules into domestic legislation in other jurisdictions also did not result in any minimum tax being levied in 2023. At the same time, Pillar II legislation has been enacted or substantially enacted in a number of other jurisdictions in which the Group operates, effective for the financial year beginning January 1, 2024. As the Group is in scope of the Pillar II legislation the group may be liable to pay a top-up tax for each jurisdiction having an effective tax rate below 15%. During the transitional period from 2024 to 2026, the top up tax can, upon request, be deemed zero for a jurisdiction where the requirements of the country by country reporting safe harbor rules are met. The Group will exercise this option, which based on the 2023 fiscal year, would lead to the Company being exempt from minimum taxation in most of the jurisdictions in which it operates. The Group has performed a preliminary assessment of its potential exposure based on the information currently available, however, does not expect it to have a material impact on the Group’s effective tax rate and to be liable for material top up tax payments in the countries in which it operates. The Group has applied the exception to recognizing and disclosing information about deferred taxes relating to Pillar II income taxes, as provided by the amendment to IAS 12 issued in May 2023 and endorsed in the EU in November 2023. -Income tax expenses- Income tax benefit and expense for the years 2023, 2022 and 2021 comprise the following. 2023 2022 2021 k€ k€ k€ Current taxes - Tax expense for the year (5,251) (14,132) (12,309) - Income (expense) relating to other periods (2,666) 156 (4,095) Total current income taxes (7,917) (13,976) (16,404) Deferred taxes - Tax loss carry forwards 1,606 (10,862) (5,140) - Temporary differences 2,991 3,140 74 Total deferred income taxes 4,597 (7,722) (5,066) Tax expense recognized in the income statement (3,320) (21,698) (21,470) - 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: 2023 2022 2021 k€ k€ k€ Income (loss) before taxes (80,593) (153,956) 236,980 Expected German income tax rate 32.28 % 32.28 % 32.28 % Expected income tax benefit (expense) 26,015 49,697 (76,497) Non-deductible expenses (8,274) (59,543) (511) R&D tax credits 8,558 13,454 6,742 Tax free income 7,968 3,184 71,917 Permanent differences from GILTI (156) (3,724) (444) Tax effects from investments accounted for using the equity method (8,373) (5,152) (9,300) Deviation tax rates to expected tax rate (1,343) 448 1,815 Change in tax rates (251) 636 521 Change in recognition of deferred tax assets (25,568) (19,167) (10,247) Taxes related to prior years Current Taxes (2,666) 156 (4,095) Deferred Taxes 556 (1,348) (570) Other 213 (341) (801) Effective income tax income (expense) (3,320) (21,698) (21,470) Effective income tax rate (4.12) % (14.09) % 9.06 % The Group tax rate includes corporate income tax plus solidarity surcharge of 15.825% and trade tax, which ranges from 11.550% - 16.625% depending on the municipality. The tax-free income in 2023 mainly results from the revaluation of the shares in Exscientia plc, which is not subject to tax in accordance with previous years (in 2022 there was non-deductible expense for tax purposes from the devaluation of the shares). In 2021, the initial public offering of Exscientia plc in the United States resulted in a significant increase of the investment which impacts income and is tax free. -Deferred Taxes- Deferred income tax assets and liabilities calculated with the anticipated tax rates of each entity as of December 31, 2023 and 2022 relate to the following: Jan 1, 2023 Recognized in Dec 31, 2023 Recognized other Foreign Deferred Deferred in comprehensive currency Business tax tax Net balance profit or loss income translation Combination Net assets liabilities k€ k€ k€ k€ k€ k€ k€ k€ Property, plant and equipment (9,457) (2,096) — 20 — (11,533) 1,807 (13,340) Intangible assets (19,646) 6,285 — 61 — (13,300) 4,004 (17,304) Right of use assets (28,839) (770) — — — (29,609) — (29,609) Financial assets (1,446) (965) (419) — — (2,830) 783 (3,613) Provisions and deferred income 9,250 (1,142) 13 — — 8,121 8,347 (226) Lease obligations 25,278 (577) — — — 24,701 24,701 — Other 4,244 2,068 — — — 6,312 6,942 (630) Tax credits 273 188 — — — 461 461 — Loss carryforward 12,146 1,606 — 118 — 13,870 13,870 — Total (8,197) 4,597 (406) 199 — (3,807) 60,915 (64,722) Offsetting of tax — — — — — — (46,585) 46,585 Net (8,197) 4,597 (406) 199 — (3,807) 14,330 (18,137) Jan 1, 2022 Recognized in Dec 31, 2022 Recognized other Foreign Deferred Deferred in comprehensive currency Business tax tax Net balance profit or loss income translation Combination Net assets liabilities k€ 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) Offsetting of tax — — — — — — (48,888) 48,888 Net (329) (7,722) (990) 518 326 (8,197) 10,327 (18,524) * Was recognized directly in equity and not through other comprehensive income. -Unrecognized deferred tax liabilities- Concerning undistributed foreign subsidiaries earnings, temporary differences in the amount of € 15,842k were not recognized according to IAS 12.39 (December 31, 2022: € 20,576k) as the Group controls the timing of such reversal and it is not planned to distribute the foreign subsidiaries earnings. -Unrecognized deferred tax assets- The Company’s deferred tax assets are recorded to the extent it is probable that such tax benefits would be realized in future years. As of December 31, 2023, no additional deferred tax assets on tax loss carryforwards exceeding the recognized deferred tax liabilities, were recognized for four German, one French, one Italian, the United States entities as well as the Austrian and the 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. 2023 2022 2021 k€ k€ k€ Tax loss carryforwards (not expiring) 572,204 474,989 307,682 Time-limited tax losses - expiring until 2028 (2022: 2027) 24,768 13,297 21,409 - expiring 2029 to 2033 (2022: 2028 - 2032) 32,179 45,696 38,207 - expiring after 2033 (2022: 2032) 38,243 57,662 73,811 Interest carry forwards — — — Tax credits 1,181 1,313 1,286 Total 668,575 592,958 442,395 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 € 14,323k (December 31, 2022: € 11,354k; December 31, 2021: € 6,346k) was not recognized as of December 31, 2023, as there was no sufficient taxable income foreseen. -Non-current and current tax assets- Non-current tax receivables as of December 31, 2023 and 2022 mainly relate to tax refunds from tax development programs in the context of qualifying R&D expenses in France (crédit d’impôt recherche). Current tax receivables as of December 31, 2023 and 2022 mainly comprise of tax refunds in relation with qualifying R&D projects in France and in the UK. |
Current assets and liabilities
Current assets and liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Current assets and liabilities | |
Current assets and liabilities | (7) Current assets and liabilities -Accounting Principles- Trade accounts receivable Trade accounts receivable are initially recognized at their invoiced amounts less any deductions such as trade discounts. For trade accounts receivable, the Group applies the simplified approach with expected lifetime credit losses recognized from initial recognition of the receivables in the income statement. The provision for doubtful debts is established using an expected credit loss model (ECL) using the simplified approach in accordance with IFRS 9. The carrying amount of trade accounts receivable is reduced through the use of an allowance account. Impaired trade accounts receivables are derecognized when they are assessed as uncollectible. Inventories In accordance with IAS 2, inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises all costs of purchase, manufacturing, as well as other costs incurred in bringing the inventories to their present location and condition. The cost of inventories is predominantly determined by using the weighted average cost method. Depending on the nature of inventory, the Group also applies the first-in, first-out method in rare cases. The net realizable value represents the estimated sales price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Write-downs of inventories which are considered obsolete or slow moving are computed taking into account their expected future utilization and their net realizable value. The Group also considers other reasons that the cost of inventories may not be recoverable such as damage, obsolescence, expiration date or declines in selling price. -Trade accounts receivables- The Group has assessed the default risk of all trade accounts receivables. The resulting valuation allowance as of December 31, 2023 amounts to € 6,453k (December 31, 2022: € 3,223k) and includes a risk provision for specific default risks of trade receivables in the amount of € 6,121k (December 31, 2022: € 2,312k) as well as for expected credit risks according to IFRS 9 in the amount of € 331k (December 31, 2022: € 911k). The maturities of trade receivables as at December 31, taking into account risk provisions, are as follows: Dec 31 Dec 31 2023 2022 k€ k€ Not past due 57,742 139,226 Risk provision not past due (367) — Past due 1-30 days 25,837 24,704 Risk provision 1-30 days (170) (67) Past due 31-120 days 12,688 6,559 Risk provision 31-120 days (280) (469) More than 120 days 8,582 6,109 Risk provision more than 120 days (5,636) (4,264) Total trade accounts receivables 98,396 171,798 1 The allowance for expected credit risks in accordance with IFRS 9 was recognized on the basis of estimates. The expected default rates range between 0.010% and 4.020% (December 31, 2022: 0.078% and 16.758%) and are taken into account in the allowance. -Inventories- Inventories consist of the following: Dec 31 Dec 31 2023 2022 k€ k€ Raw materials 25,901 27,917 Work-in-progress 4,989 1,908 Total inventories 30,890 29,825 Raw materials mainly consist of consumables, cell culture media and disposables. The increase in work-in-progress is mainly due to new projects in Aptuit Oxford Ltd. for the manufacturing of excipients and active pharmaceutical ingredients. For these projects revenue is recognized at a point in time. Allowances on inventories exist at the balance sheet date in the amount of € 2,573k (December 31, 2022: € 1,679k). In 2023, € (54,987)k (2022: € (61,182)k) of inventories were recognized as an expense. -Prepaid expenses and other current assets- Prepaid expenses as of December 31, 2023 mainly relate to prepayments for subscriptions to IT licenses. The other current assets mainly comprise VAT-related receivables of € 17,844k (December 31, 2022: € 19,035k). In k€ December 31, 2023 December 31, 2022 Prepaid expenses 18,395 16,948 Other current assets 32,950 40,178 Total prepaid expenses and other current assets 51,345 57,126 -Trade payables- As of December 31, 2023 the Group’s trade payables amount to € 134,319k (December 31, 2022: € 97,277k) and consist of payables in relation with the normal cause of business. -Other current liabilities- As of December 31, 2023 other current liabilities included wage taxes in the amount of € 2,793k (December 31, 2022: € 1,851k) and social security liabilities with an amount of € 4,429k (December 31, 2022: € 4,472k). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment. | |
Property, plant and equipment | (8) Property, plant and equipment -Accounting principles- Owned Assets Property, plant and equipment, including leasehold improvements are recorded in the Statement of Financial Position at their acquisition price, net of accumulated depreciation and impairment losses. The costs of property, plant and equipment comprise all directly attributable costs. After initial measurement, property, plant and equipment is carried at cost less accumulated depreciation and impairment, except for land which is carried at cost less impairment. Depreciation is calculated using the straight-line method over the estimated useful life of the asset, which the Group reviews at each balance sheet date. Costs related to repair and maintenance activities are expensed in the period in which they are incurred unless leading to an extension of the original lifetime or capacity. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Subsequent costs are not recognized as assets unless it is probable that future economic benefits associated with those costs will flow to the Group and those costs can be measured reliably. Borrowing costs attributable to the financing of items of property, plant and equipment, and incurred during the construction period, are capitalized as part of the acquisition cost of the item. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the asset to which they relate. The straight-line depreciation is based on the following useful lives of the asset: Buildings 15 to 33 years Technical equipment and machinery 3 to 15 years Office furniture and equipment 3 to 10 years 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 Group. 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. Leases The Group leases various offices, laboratories equipment and cars. The Group determines whether an arrangement constitutes or contains a lease at inception, which is based on the substance of the arrangement. The arrangement constitutes or contains a lease if fulfillment is dependent on the use of a specific asset and the arrangement conveys a right to use the asset, even if that asset is not explicitly specified in the arrangement. Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. The right-of use asset is depreciated over the shorter of the asset’s useful life or the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: ● fixed payments (including in-substance fixed payments) less any lease incentives receivable; ● variable lease payments that are based on an index or a rate; ● amounts expected to be payable by the lessee under residual value guarantees; ● the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; ● payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. 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. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group´s incremental borrowing rate at the lease commencement date is used, which is based on an assessment of interest rates, the Group would have to pay to borrow funds in the relevant country, including the consideration of factors such as the nature of the asset, its location, as well as the duration of the lease. 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, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Right-of-use assets are measured at cost comprising the following: ● the amount of the initial measurement of lease liability; ● any lease payments made at or before the commencement date less any lease incentives received; ● any initial direct costs; ● restoration costs. The right-of-use assets are subsequently accounted for using principles for property, plant and equipment. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the income statement. The Group defines short-term leases as leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture considered to be of low value (i.e., less than € 5,000). The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. -Property Plant and Equipment- The development of property, plant and equipment as well as the development of the right-of-use assets in 2023 and 2022 are shown in the following tables. Buildings and leasehold Plant, machinery Furniture Assets under improvements and equipment and fixtures construction Total in k€ Owned Right-of-Use Owned Right-of-Use Owned Right-of-Use Owned Owned Right-of-Use Cost 240,328 222,734 285,248 4,688 50,114 1,317 116,381 692,071 228,739 Accumulated depreciation and impairment 42,680 55,779 136,405 3,902 31,110 733 — 210,195 60,414 Balance as of January 1, 2023 197,648 166,955 148,843 786 19,004 584 116,381 481,876 168,325 Recognition of right-of-use asset — 32,663 — 533 — 706 — — 33,902 Acquisition through business combination — — — — — — — — — Capital expenditure/Additions 17,905 — 42,863 — 12,087 — 145,733 218,589 — Disposals 521 3,963 99 100 92 11 — 712 4,074 Depreciation 17,509 19,998 36,478 684 10,972 393 — 64,959 21,075 Impairment — — — — — — — — — Reclassification 20,018 (1,014) 14,384 1,029 408 100 (34,925) (115) 115 Translation differences and other (2,570) (180) (948) — (69) 2 (1,544) (5,130) (178) Total 214,971 174,463 168,565 1,565 20,365 989 225,645 629,546 177,017 Cost 274,335 249,853 339,277 4,251 61,763 1,749 225,645 901,020 255,853 Accumulated depreciation and impairment 59,365 75,390 170,713 2,686 41,397 760 — 271,474 78,836 Balance as of December 31, 2023 214,971 174,463 168,565 1,565 20,365 989 225,645 629,546 177,017 Buildings and leasehold Plant, machinery and Furniture Assets under improvements equipment and fixtures construction Total in k€ Owned Right-of-Use Owned Right-of-Use Owned Right-of-Use Owned Owned Right-of-Use Cost 200,865 177,602 219,534 8,077 38,661 997 40,350 499,410 186,676 Accumulated depreciation and impairment 27,657 35,722 108,517 5,384 23,677 532 — 159,851 41,638 Balance as of January 1, 2022 173,208 141,880 111,017 2,693 14,984 465 40,350 339,559 145,038 Recognition of right-of-use asset — 38,393 — 306 — — — — 38,699 Acquisition through business combination 2,594 3,940 3,309 — (231) 338 94 5,766 4,278 Capital expenditure/Additions 23,280 — 59,305 — 11,663 — 95,618 189,866 — Disposals 3,529 — 1,538 — 12 — 862 5,941 — Depreciation 15,271 17,855 29,915 575 8,832 229 — 54,018 18,659 Impairment — — — — — — — — — Reclassification 13,009 1,524 5,345 (1,512) 1,326 10 (19,702) (22) 22 Translation differences and other 4,357 (927) 1,320 (126) 106 — 883 6,666 (1,053) Total 197,648 166,955 148,843 786 19,004 584 116,381 481,876 168,325 Cost 240,328 222,734 285,248 4,688 50,114 1,317 116,381 692,071 228,739 Accumulated depreciation and impairment 42,680 55,779 136,405 3,902 31,110 733 — 210,195 60,414 Balance as of December 31, 2022 197,648 166,955 148,843 786 19,004 584 116,381 481,876 168,325 The net increase in the net book value of property, plant, and equipment of € 156,363k (December 31, 2022: € 165,604k) is mainly attributed to new buildings technical equipment, and construction in progress. This is due to the continued construction of the J.POD facility in Toulouse, France (increase of € 107,299k). |
Intangible assets and Goodwill
Intangible assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets and Goodwill | |
Intangible assets and Goodwill | (9) Intangible assets and Goodwill -Accounting principles- Goodwill The Group measures goodwill at the acquisition date as being the excess of: ● ● If a preceding analysis of a purchase price allocation (PPA) results in the cost of acquisition being less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the Consolidated Income Statement (bargain purchase or negative goodwill). Intangible Assets Intangible assets with definite useful lives are recorded at cost and amortized using the straight-line method over the estimated useful lives of the assets. Intangible assets other than 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. Amortization of other intangible assets is recognized in the income statement within the relevant classification of expense by function. Impairment losses are recognized separately in the Group´s income statement. The useful lives are as follows: Trademarks 2 Developed Technologies 6 Patents & licenses 5 to 15 years Customer List 5 to 8 years Internally generated Research and Development (IP R&D) Internally generated development expenses are recognized as an intangible asset if and only if all the following criteria can be demonstrated: ● technical feasibility of completing the project ● the Group´s intention to complete the project ● the Group´s ability to use the project ● the probability that the project will generate future economic benefits ● the availability of adequate technical, financial and other resources to complete the project ● the ability to measure the development expenditure reliably Due to the risks and uncertainties relating to regulatory approval and to the research and development process, the six criteria for capitalization are usually considered not to have been met until the product has obtained marketing approval from the regulatory authorities. Consequently, internally generated development expenses arising before marketing approval has been obtained, mainly the cost of clinical trials, are generally expensed as incurred within research and development expenses. Internally generated Development expenditures (other than IP R&D) Capitalized development expenditures are stated at cost less accumulated amortization and impairment losses. Internally generated development expenses are recognized as an intangible asset if the criteria listed under “Internally generated Research and Development (IP R&D)” are met. They are amortized on a straight-line basis over the estimated useful lives of the intangible assets. Separately acquired Research and Development (IP R&D) Payments for separately acquired research and development are capitalized within other intangible assets provided that they meet the definition of an intangible asset: ● expected to provide future economic benefits for the Evotec, ● a resource that is controlled by Evotec and, ● identifiable (i.e., it is either separable or arises from contractual or legal rights). The Group believes that the first condition for capitalization (the probability that the expected future economic benefits from the asset will flow to the entity) is considered to be satisfied for separately acquired research and development. Consequently, upfront and milestone payments to third parties related to pharmaceutical products for which marketing approval has not yet been obtained are recognized as intangible assets, and amortized on a straight-line basis over their useful lives beginning when marketing approval is obtained. Payments under research and development arrangements relating to access to technology or to databases, and payments made to purchase generics dossiers, are also capitalized, and amortized over the useful life of the intangible asset. Subcontracting arrangements, payments for research and development services, and continuous payments under research and development collaborations which are unrelated to the outcome of that collaboration, are expensed over the service term. Other intangible assets not acquired in a business combination Licenses other than those related to pharmaceutical products and research projects, in particular software licenses, are capitalized at acquisition cost, including any directly attributable cost of preparing the software for its intended use. Software licenses are amortized on a straight-line basis over their useful lives. Internally generated costs incurred to develop or upgrade software are capitalized if the recognition criteria are satisfied, and amortized on a straight-line basis over the useful life of the software from the date on which the software is ready for use. Other intangible assets acquired in a business combination Other intangible assets acquired in a business combination (R&D, technologies and technologies platforms, licenses and patents etc.) that are reliably measurable are identified separately from goodwill, measured at fair value, and capitalized within other intangible assets at the acquisition date and subsequently amortized over their useful lives. Impairment Goodwill Goodwill is not amortized but is tested for impairment annually and whenever impairment indicators are identified. Internal or external sources of information are considered indicators that an asset or a Cash Generating Unit (CGU) or groups of CGUs may be impaired. An impairment loss is recognized in the Consolidated Income Statement whenever and to the extent that the carrying amount of a cash generating unit exceeds the unit’s recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. Intangible Assets Intangible assets that are subject to amortization are reviewed for impairment whenever triggering events or changes in circumstances indicate that the carrying value may not be recoverable. -Goodwill- Balances and movement of Goodwill in 2023 and 2022 are shown below: 2023 Translation At January 1 Acquisition Disposals Impairment and other At 31 December k€ k€ k€ k€ k€ k€ OAI/Evotec International Execute 82,223 — — — 1,223 83,446 OAI/Evotec International Innovate 9,164 41 — — 55 9,219 Evotec (US) Execute 4,457 — — — (155) 4,302 Aptuit Execute 146,224 — — — 831 147,055 Just Execute 32,751 — — — (1,138) 31,613 Total 274,819 41 — — 816 275,635 The goodwill addition in financial year 2023 to the OAI/Evotec International Innovate cash-generating unit was a result of the acquisition of the remaining 50% of NephThera GmbH. 2022 Translation At January 1 Acquisition Disposals Impairment and other At 31 December k€ k€ k€ k€ k€ k€ OAI/Evotec International Execute 84,480 — — — (2,257) 82,223 OAI/Evotec International Innovate 9,204 — — — (40) 9,164 Evotec (US) Execute 4,197 — — — 260 4,457 Aptuit Execute 128,845 19,622 — — (2,243) 146,224 Just Execute 30,843 — — — 1,908 32,751 Total 257,569 19,622 — — (2,372) 274,819 The Group has tested the cash-generating units for impairment on the annual designated test date in the fourth quarter 2023 based on the net book values as of September 30, 2023. 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. In 2023, the impairment tests for all cash generating units are based on the value in use methodology in line with achieved progress on expansion investments reflected in the underlying plan. With the exceptions of Just Execute and OAI / Evotec International Innovate, 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. Due to the uncertainty inherent to the proprietary development of drugs in the Innovate business, the CGU OAI / Evotec International Innovate includes a detailed long-term forecast (exceeding 5 years) of success-based payments from the Group’s collaborations (e.g. Milestones, Royalties), including appropriate risk-adjustments. 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 nine 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: Cash flow The cash flow plan is based on past experience and management’s expectations for the future, taking into account specific expectations regarding revenue and cost allocation, growth rates, gross margins, EBITDA margins and investments. Long term growth rate The terminal value growth rate is based on the current estimates of long-term inflation in the regions relevant to the Group’s operations. Discount rate 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 flow models. OAI / Evotec OAI / Evotec Evotec International International (US) Aptuit Just Execute Innovate Execute Execute Execute 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Denominated in GBP /EUR GBP /EUR USD GBP /EUR USD Pre-tax discount rate 11.43 % 10.15 % 13.41 % 11.93 % 10.44 % 9.32 % 14.20 % 13.12 % 12.86 % 11.71 % Sustainable growth rate 2 % 2 % 2 % 2 % 2 % 2 % 2 % 2 % 2 % 2 % A sensitivity analysis was performed for all cash-generating units with regard to reasonable changes in the key assumptions used for 2023. The analysis was based on a 10% decrease in future cash flows, a 1 percentage point increase in the discount rate or a decrease by one would recorded The following table shows which reasonably possible changes in the key assumptions for Just Execute (base case) would cause its recoverable amount to be equal to its carrying amount. 2023 Recoverable Decrease in Reduction amount exceeding Applied post-tax Increase in post-tax Applied sustainable sustainable in cash carrying amount discount rate discount rate growth rate growth rate flows in €m in %-points in %-points in %-points in %-points in %-points Just Execute 5.5 11.1 0.1 2.0 0.3 1.3 In 2022 management concluded that in the event of possible changes in the key assumptions, no impairment would be recorded for any of the cash-generating units. In 2023 and 2022, the Company did not recognize any impairment losses as a result of the annual impairment tests. -Intangible Assets- The development of intangible assets in 2023 and 2022 is shown in the following tables. 2023 Patents and Developed Customer In k€ Licenses Technologies relationships Trademarks Total Acquisition and manufacturing cost Amount beginning of the year 12,883 100,735 69,089 6,539 189,246 Foreign currency translation (46) (731) (327) (1,105) Additions — 3,659 — — 3,659 Business combination — — — — — Reclassification (1,672) 1,672 — — — Amount end of the year 11,166 105,334 68,762 6,539 191,800 Depreciation, amortization and impairments Amount beginning of the year 11,349 94,160 54,405 5,513 165,427 Foreign currency translation 10 (641) (404) — (1,035) Additions 84 822 5,818 222 6,946 Impairment — 5,011 — — 5,011 Reclass (1,138) 1,138 — — — Amount end of the year 10,304 100,490 59,819 5,735 176,348 Net book value Amount beginning of the year 1,534 6,575 14,684 1,026 23,819 Amount end of the year 861 4,844 8,943 804 15,453 2022 Patents and Developed Customer In k€ Licenses Technologies relationships Trademarks Total Acquisition and manufacturing cost Amount at the beginning of the year 11,211 99,784 69,089 6,539 186,623 Foreign currency Translation — 34 — — 34 Additions — 917 — — 917 Business Combinations 1,672 — — — 1,672 Reclassification Amount end of the year 12,883 100,735 69,089 6,539 189,246 Depreciation, amortization and impairments Amount at the 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 Impairment Reclass (56) 56 — — — 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 Intangible assets excluding goodwill decreased by € 8,365k from € 23,819k at December 31, 2022 to € 15,453k at December 31, 2023. This decrease is mainly due to an impairment of an intangible asset within developed technologies amounting to € 5,011k and which is in relation to research and development expenses, and due to the amortization of the Evotec´s customer relationships of € 5,818k, of which € 5,540k relates to Aptuit. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments | |
Financial instruments | (10) Financial instruments -Accounting principles- Non-derivative financial assets Non-derivative financial assets comprise cash and cash equivalents, receivables and other financial assets including derivatives. Recognition and initial measurement: Non-derivative financial assets are recognized when the Group becomes a party to the contractual provisions of the instrument. Purchases and sales of non-derivative financial assets in the normal course of business are accounted for at the trade date. Dividend and interest income are recognized when earned. Gains or losses, if any, are recorded in other financial income and other financial expense. Non-derivative financial assets are derecognized when the rights to receive cash flows from the asset have expired or the Group has transferred its rights to receive cash flows from the asset. At initial recognition, the Group measures non-derivative financial assets at their fair value, plus, in the case of a financial asset not measured at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in the Consolidated Income Statement. Classification and subsequent measurement: The Group classifies its non-derivative financial assets in the following measurement categories: ● those that are measured subsequently at fair value; ● those that are measured at amortized cost. In assessing the classification, the Group considers the business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will be recorded in either the Consolidated Income Statement (FYTPL) or in Other Comprehensive Income (FYTOCI). For debt investments, assets are reclassified between FVTOCI, FVTPL and amortized cost only when its business model for managing those assets changes. Offsetting of 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, the Group 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. Cash and cash equivalents Cash and cash equivalents include cash balances, certain money market funds and short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash. Other financial assets Other financial assets include convertible loans, derivatives and deposits. Debt instruments Debt instruments include those subsequently carried at amortized cost, those carried at FVTPL or those carried at FVTOCI. Classification depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. Debt instruments that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortized cost and are subject to impairment. Interest income from these financial assets is included in Finance income using the effective interest rate method. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. When the Group determines that an embedded derivative meets the requirement, it is separated from the host contract and accounted for as a derivative. Debt instruments that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVTOCI and subject to impairment. Movements in the carrying amounts are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses, which are recognized in the Consolidated Income Statement. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to the Consolidated Income Statement. Interest income from these financial assets is included in financial income using the effective interest rate method. Debt instruments that do not meet the criteria for amortized cost or FVTOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognized in the Consolidated Income Statement in the period in which it arises. Other Equity investments where the Group does not possess control or significant influence For those equity investments over which the Group has neither control nor significant influence and which are therefore measured in accordance with IFRS 9, classification will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVTOCI). For those equity investments over which the Group has neither control nor significant influence and which are therefore measured in accordance with IFRS 9, both FVTOCI and FVTPL, the Group follows the following hierarchy determined by the unique nature of the investments. Observable market prices are the primary method when available. When these are not available but there has been an external financing round or a capital transaction with a new investor of the equity investment in which the Group did not participate, this would be taken into account. In the absence of such an event, the Group assesses qualitative factors, such as scientific progress, as well as an analysis of the cash position of the investment. In case of promising scientific development, the acquisition costs are considered to be the best estimate of the fair value. Should the investment be a possible going concern risk with no further positive qualitative factors, the Group uses Net Asset Value as a proxy for the fair value of the investment. The investments in early-stage companies are mainly of a strategic nature and are made for the purpose of promoting new business models and, in particular, the development of products and/or technology platforms in pharmaceutical research. Where the Group has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Consolidated Income Statement following the derecognition of the investment. Dividends (if any) from such investments continue to be recognized in the Consolidated Income Statement when the Group’s right to receive payments is established. Debt and other financial liabilities Debt and other financial liabilities, excluding derivative financial liabilities and provisions, are initially measured at fair value and, in the case of debt and payables, net of directly attributable transaction costs. Debt and other financial liabilities are subsequently measured at amortized cost using the effective interest rate method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. Debt and other financial liabilities are derecognized when the obligation under the liability is discharged, cancelled or has expired. Derivative financial instruments All derivative financial instruments are accounted for at the trade date and classified as current or non-current assets or liabilities based on the maturity date or the early termination date. The Group measures all derivative financial instruments at fair value that is derived from the market prices of the instruments, calculated on the basis of the present value of the estimated future cash flows based on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or derived from option pricing models, as appropriate. Gains or losses arising from changes in fair value of derivative financial instruments are recognized in the Consolidated Income Statement. The Group does not apply hedge accounting in accordance with IFRS 9. Impairment of financial assets The Group recognizes an allowance for expected credit losses (ECLs) for trade receivables, debt investments carried at fair value through other comprehensive income (FVTOCI) and amortized costs. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. For all trade receivables and contract assets, the Group applies the IFRS 9 simplified approach to measuring ECLs. To measure the ECLs on trade receivables and contract assets, the Group takes into account credit-risk concentration, collective debt risk based on average historical losses as well as days past due. The Group also may factor in specific circumstances such as serious adverse economic conditions in a specific country or region, and other forward-looking information. The Group may also apply individual credit losses on identified trade account receivables or contract assets depending on individual circumstances. Other financial income and expense Financial income comprises interest income on funds invested (including financial assets), dividend income, net gains on the disposal of financial assets, net fair value gains on financial assets at FVTPL, net gains on the remeasurement to fair value of any pre-existing interest in an acquiree, and net gains on foreign exchange impacts that are recognized in the Consolidated Income Statement. Other financial income is recognized on an accrual basis in the Consolidated Income Statement, using the effective interest method. Dividend income is recognized in the Consolidated Income Statement on the date that the Group’s right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date. Other financial expenses comprise interest expenses on borrowings, unwinding of the discount on provisions and contingent consideration, losses on disposal of financial assets, net fair value losses on financial assets at FVTPL, impairment losses recognized on financial assets (other than trade receivables), net interest expenses related to defined-benefit plans, interest on lease liabilities and net losses on foreign exchange impacts that are recognized in the Consolidated Income Statement. Evotec’s interest expenses relate primarily to financial liabilities measured at amortized cost. -Cash and cash equivalents and short-term investments- The balances of cash and cash equivalents as of 31 December are as follows: In k€ 2023 2022 Cash at banks and on hand 237,562 231,614 Short term deposits 35,000 — Money market funds 238,346 183,540 Total 510,909 415,155 As of December 31, 2023 the Group´s balance of cash and cash equivalents and investments is € 604,112k (December 31, 2022: € 718,489k), thereof short-term investments of € 93,203k (December 31, 2022: € 303,334k). Fixed-term investments are measured at amortized cost and bonds are measured at fair value through OCI (note 15). Money market funds that are classified under cash and cash equivalents are measured at FVOCI. While managing liquidity, the Group is investing in deposits with maturities beyond three months which are also included in investments. These deposits are measured at amortized costs. As of December 31, 2023, the expected credit loss on cash and cash equivalents and short-term investments has remained unchanged compared to last year (December 31, 2022: € 225k). As of December 31, 2023, € 11,819k of the cash balances with credit institutions were restricted (December 31, 2022: € 14,458k). This amount includes grants for specific projects and rent deposits. -Other current financial assets- Other current financial assets include mainly convertible loans, interest receivables and deposits. In addition, this position also comprises the positive fair values of forward exchange contracts which amount to € 6,137k as of December 31, 2023 (December 31, 2022: € 8,215k). -Other long - The development of investments measured at fair value in accordance with IFRS 9 is shown below: In k€ 2023 2022 Balance at January 1 131,042 268,793 Additions 10,199 46,137 Additions due to discontinued use of equity method 1,906 — Reduction due to change to accounting according to the equity method (2,369) — Fair value adjustments recognized in profit or loss (3,678) (172,159) Adjustments to fair value, recognized in OCI (1,506) (11,729) Net book value December 31 135,593 131,042 The loss of € 1,506k due to fair value adjustments recognized in other comprehensive income includes a loss of € 1,080k from financial assets designated at fair value through other comprehensive income. Investments are periodically reviewed for changes in their fair value. The fair value adjustments of € (3,678)k mainly relate to measurement losses of € 14,958k which were partially offset by a measurement gain of € 11,280k relating to Exscientia Ltd whose share price increased from USD 5.33 on December 31, 2022 to USD 6.41 on December 31, 2023. -Loan liabilities- Throughout the years 2023 and 2022, the Group met all covenants under the various loan agreements shown below. All loans are unsecured. December 31, 2023 2023 2022 2022 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 0.8 % to 2 % 2024-2029 202,727 243,583 137,278 150,171 Germany EUR variable interest rate of 4.8% to 5% 2024-2026 64,088 64,500 61,003 64,500 Germany EUR 1.60% 2024-2027 67,631 75,000 71,846 75,000 Germany EUR 1.20% 2029 5,010 5,647 6,358 6,722 Germany EUR 1.40% 2031 15,814 18,458 19,099 20,367 Italy EUR fixed interest rate of 1.3 % to 4.5 % 2026-2027 340 367 729 757 Italy EUR variable interest rate 4.5% 2027 421 434 489 500 France EUR fixed interest rate of 0.00% to 0.55 % 2025 23,216 27,876 10,038 10,742 379,247 435,865 306,840 328,759 Current loan liabilities as of December 31, 2023 include interest liabilities of € 1,193k (December 31, 2022: € 1,092k). As of December 31, 2023, the Group maintained unutilized lines of credit totaling € 141,086k (December 31, 2022: € 245,509k). On December 29, 2022, the Group signed a facility agreement of € 150,000k with the European Investment Bank (EIB). As of December 31, 2023, the Group has drawn € 93,290k from this facility agreement. -Leases- The Group has lease contracts for various items of real estate, vehicles and other equipment used in its operations. The Group has multiple extension and termination options in a number of lease contracts. These are used to maximize operational flexibility in terms of managing the assets used in the Group’s operations. The options considered reasonably certain are part of lease liabilities. However, the options not considered reasonably certain are not part of lease liability, which exposes the Group to potential future cash outflows. Future cash outflows for leases that have not yet begun are set out in the explanation “(18) Commitments and contingencies”. In addition, the Group is not committed to leases not yet commenced. The Group’s lease contracts do not contain any financial covenants. Set out below are the carrying amounts of the lease liabilities and the movements during the period: In k€ 2023 2022 Amount beginning of the year 176,823 150,437 Foreign currency Translation (958) (923) Additions 33,975 38,784 Business combination — 3,962 Disposals (4,086) (232) Accretion of interest 5,831 3,841 Payments (22,446) (19,046) Amount end of the year 189,140 176,823 The lease liabilities of the Company are due as follows: In k€ 2023 2022 Current portion of lease obligations 19,115 14,825 Long-term lease obligations 170,025 161,998 189,140 176,823 The Group’s cash outflows for leases amounted to € 22,446k in 2023 (2022: € 19,046k; 2021: € 20,665k). The following amounts are recognized in profit or loss: in k€ 2023 2022 2021 Depreciation expense of right-of-use assets 21,075 18,659 15,829 Interest expense on lease liability 5,831 3,841 3,728 Expense relating to short-term leases 236 476 839 Expense for leases on an asset of low value 62 50 56 Total amount recognized in profit or loss 27,205 23,026 20,452 -Reconciliation of cash flow from financing activities- The following tables show the reconciliation of cash flow from financing activities to changes in financial liabilities in 2023 and 2022. Loans Lease Obligations Bonds k€ k€ k€ Balance as of Jan 1, 2023 329,851 176,823 3 Proceeds from issuance of loans 219,923 — — Repayments (112,880) (22,446) — Interest paid (12,853) — — Cashflow from financing activities 94,189 (22,446) — Non-cash transactions: Disposal of finance lease obligation — (4,086) — Foreign currency translation — (958) — Interest expense 11,739 — — Change in accrued interest and other 1,279 5,831 — Issue of finance lease obligation — 33,975 — Balance as of Dec 31, 2023 437,058 189,140 3 Loans Lease Obligations Bonds k€ k€ k€ Balance as of Jan 1, 2022 362,480 150,438 3 Proceeds from issuance of loans — — — Repayments (34,067) (19,046) — Interest paid (5,731) — — Cashflow from financing activities (39,798) (19,046) — Non-cash transactions: Disposal of finance lease obligation — (232) — Foreign currency translation — (1,120) — Interest expense 9,083 — — Change in accrued interest and other (1,914) 4,068 — Issue of finance lease obligation — 42,716 — Balance as of Dec 31, 2022 329,851 176,823 3 -Current financial liabilities- Current financial liabilities of € 149,096k in 2023 (2022: € 23,468k) consist of current loan liabilities of € 129,971k (2022: € 1,556k), current portion of lease obligations of € 19,115k (2022: € 14,825k) as well as other current financial liabilities of € 10k (2022: € 7,087k). Other current financial liabilities relate to negative fair values of forward exchange contracts. |
Investments accounted for using
Investments accounted for using the equity method | 12 Months Ended |
Dec. 31, 2023 | |
Investments accounted for using the equity method | |
Investments accounted for using the equity method | (11) Investments accounted for using the equity method -Accounting Principles- The Group, in the course of its business, may enter into arrangements where it will exercise joint control over entities resulting in classifying these operations as joint ventures or joint operations depending on the rights and obligations arising from the contractual arrangement. Alternatively, it may enter into arrangements where it holds 20 to 50 percent of the voting rights and exercises significant influence resulting in these companies being classified as associate companies. Investments in associates and joint ventures are accounted for using the equity method. The Group’s share of profit of joint ventures is classified within non-operating profit as these operations do not form an integral part of the Group’s financial performance, reflecting its non-core business activities. The Group’s share of profit (loss) of associates is classified below Operating profit. Goodwill arising from an acquisition is included in the carrying amount of the investments in joint ventures and associated companies. Equity accounting is discontinued when the carrying amount of the investment together with any long-term interest in a joint venture or in an associate reaches zero, unless the Group has either incurred or guaranteed additional obligations in respect of the joint venture or associate. Impairment of Joint Ventures and Associates The Group tests investments in joint ventures and associates for which it does not possess control but has significant influence for impairment on a regular basis and when there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the net investment. Objective evidence of impairment includes but is not limited to the net asset value being below carrying amount, absence of scientific progress, significant financial difficulties of the joint venture, associate or information about significant changes with an adverse effect that have taken place in the economic environment in which it operates and indicates that the carrying amount may not be recovered. -Investment in associates- 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 € 10,000k or Evotec’s share of earnings in the result (Share of profit in associate and Impairment combined) were less than € 1,000k in the company’s profit or loss. At the balance sheet date, six investments were classified as significant, and four investments were classified as insignificant. The additions to the significant investments in 2023 are entirely related to financing rounds (capital contributions). The following table summarizes the development of the investments in associates during year 2023: Centauri Dark Blue Topas Tucana Autobahn Therapeutics Curexsys Therapeutics Therapeutics Bioscienes Insignificant In k€ Labs LLC GmbH GmbH Ltd. GmbH Inc. investments Total Balance at January 1, 2023 1,371 — 3,967 4,022 405 2,325 3,954 16,043 Investment 2,360 3,455 — — 2,023 — — 7,838 Share of profit in associate (3,730) (309) (968) (4,022) (2,428) (775) (650) (12,881) Impairment — (3,336) (2,999) — — (579) (960) (7,875) Dividend earned — — — — — — (424) (424) Divestment — — — — — (970) — (970) Reclassification due to change of control — 2,369 — — — — (1,029) 1,341 Balance at December 31, 2023 — 2,179 — — — — 892 3,071 The following table provides an overview of the development of the investments in 2022: Breakpoint Dark Blue Quantro Topas Autobahn Therapeutics Curexsys Therapeutics Therapeutics Therapeutics Insignificant In k€ Labs LLC GmbH GmbH Ltd. GmbH GmbH investments Total Balance at January 1, 2022 — 2,774 4,212 405 1,307 1,497 2,873 13,068 Investment 3,634 — 2,564 7,167 1,250 1,821 2,505 18,940 Share of profit in associate (2,263) (2,774) (2,809) (3,550) (510) (2,913) (1,147) (15,965) Impairment — — — — — — — — Dividend earned — — — — — — — — Divestment — — — — — — — — Reclassification due to change of control — — — — — — — — Balance at December 31, 2022 1,371 — 3,967 4,022 2,047 405 4,231 16,043 Further financial information on the significant investments accounted for using the equity method is presented below: 2023 Centauri Dark Blue Quantro Autobahn Therapeutics Curexsys Therapeutics Therapeutics In k€ Labs LLC GmbH GmbH Ltd. GmbH Current assets 1,272 9,451 1,071 4,321 613 Non-current assets 727 — 421 248 5,072 Current liabilities 2,257 — 148 1,087 2,902 Non-current liabilities — — — 9,098 483 Revenues from Jan 1 to Dec 31 — 597 — — 2,353 Net income Jan 1 to Dec 31 (10,667) (3,448) (2,176) (9,210) (890) Share of profit in associate (3,730) (309) (968) (4,022) (194) 2022 Breakpoint Dark Blue Quantro Topas Autobahn Therapeutics Curexsys Therapeutics Therapeutics Therapeutics In k€ Labs LLC GmbH GmbH Ltd. GmbH GmbH Current assets 4,029 7,204 3,409 14,244 4,392 6,795 Non-current assets 6 2 484 32 445 — Current liabilities 672 1,068 302 1,065 1,666 843 Non-current liabilities — 143 85 8,208 — — Revenues from Jan 1 to Dec 31 — — 15 — 1,321 — Net income Jan 1 to Dec 31 (6,144) (11,789) (6,940) 1,025 (797) (9,340) Share of profit in associate (2,263) (2,774) (2,809) (3,550) (510) (2,913) |
Employment, Post-Employment Ben
Employment, Post-Employment Benefits and Share Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Employment, Post-Employment Benefits and Share Compensation Plans | |
Employment, Post-Employment Benefits and Share Compensation Plans | (12) Employment, Post-Employment Benefits and Share Compensation Plans -Accounting Principles- Short-term employee benefits Short-term employment obligations are measured on an undiscounted basis and are expensed as the related service is provided. The Group recognizes a liability and an expense for bonuses and incentives based on a formula that takes into consideration the profit attributable to the Group´s shareholders after certain adjustments. Defined contributions schemes A defined-contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined-contribution pension plans are recognized as an employee benefit expense in the income statement in the periods during which services are rendered by employees. The Group´s contribution rate is employee-specific and depends on the amount of an employee’s contribution and the relevant legislation. Defined benefits schemes and Jubilee provisions A defined-benefit plan is a post-employment benefit plan other than a defined-contribution plan. Plans for which the Group has no legal or constructive obligation to pay further amounts, but to which it does pay non-fixed contributions, are also treated as a defined-benefit plan. The net pension asset or liability recognized in the consolidated statement of financial position in respect of defined-benefit post-employment plans is the fair value of plan assets less the present value of the projected defined-benefit obligation at the balance sheet date. The defined-benefit obligation is calculated annually by qualified actuaries using the projected unit credit method. Recognized assets are limited to the present value of any reductions in future contribution or any future refunds. The net pension liability (asset) is presented as a long-term provision; no distinction is made for the short-term portion. Pension costs in respect of defined-benefit post-employment plans primarily represent the increase of the actuarial present value of the obligation for post-employment benefits based on employee service during the year and the interest on the net recognized asset or liability in respect of employee service in previous years. Remeasurements of the net defined-benefit asset or liability comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest). The Group recognizes all remeasurements in other comprehensive income and reclassifies them later to the Group´s income statement. The Group recognizes gains and losses on the settlement of a defined-benefit plan when the settlement occurs. The gain or loss on settlement is the difference between the present value of the defined-benefit obligation being settled, as determined on the date of settlement, and the settlement price, including any plan assets transferred and any payments made directly by the Group in connection with the settlement. Past service costs arising from the introduction of a change to the benefit payable under a plan or a significant reduction of the number of employees covered by a plan (curtailment) are recognized in full in the consolidated income statement. The Group´s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods, such as jubilee entitlements. That benefit is discounted to determine its present value. Remeasurements are recognized in the consolidated income statement in the period in which they arise. Other long term employment benefits Other long-term employment benefits include long-service leave or sabbatical leave, medical aid, jubilee or other long-service benefits, long-term disability benefits and, if they are not expected to be settled wholly within twelve months after the year end, profit sharing, variable and deferred compensation. The measurement of these obligations differs from defined benefit plans in that all remeasurements are recognized immediately in the statement of income. Stock Options and Share Performance Awards The Group operates various equity-settled share-based compensation plans for which the Company applies the regulations of IFRS 2. The fair value of the employee services received in exchange for the grant of the options or shares is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the equity instruments granted. The amounts are charged to the income statement over the relevant vesting periods and adjusted to reflect actual and expected levels of vesting. The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. All plans are settled in shares. The grant-date fair value of equity-settled share-based payment awards granted to employees is recognized as personnel expense, with a corresponding increase in equity, over the vesting period of the award. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the consolidated income statement for a period represents the movement in cumulative expense recognized at the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant-date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group´s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant-date fair value. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. When an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. The dilutive effect of outstanding options and shares is reflected as additional share dilution in the computation of diluted earnings per share. -Defined contribution schemes- The Group operates a defined contribution plan in the United Kingdom and makes additional contributions to employees’ own schemes. The pension charge for the year represents contributions payable by the Group to the fund (and to the employees’ own pension schemes) and amounted to € 3,926k in 2023 (2022: € 3,346k). The Group operates defined contribution (401(k)) plans in the US and made contribution of € 1,784k during 2023 (2022: € 575k). -Defined benefit schemes and jubilee provision- Germany The Group has a defined benefit scheme for one former member of the Management Board of Evotec SE and for Evotec DS. The provisions for both companies amounted to € 645k as of December 31, 2023 (2022: € 722k). France The Group runs a jubilee scheme where a lump sum payment is provided to all employees upon retirement. The amount is dependent on different factors such as years of service with the company, compensation at retirement age (between age of 63 and 65) and collective agreements. This is a legal requirement. The Group also runs a work anniversary awards agreement. The lump sum amount is defined by the collective agreement and based on the number of years of service with the Group. The Group operates a defined benefit plan for employees in France. Due to a pension reform in France the Group recorded a gain of € 830k in Past service costs. The mortality tables (issued by INSEE TD/TV 2017 ‐ 2019) were applied in the actuarial report that is used for measuring the French employee benefit obligations. The movement in employee benefit obligations of the French entities is broken down as follows: 2023 2022 Present Present value of value of In k€ obligation obligation As of January 1 (14,499) (15,310) Benefit payments from the employer 617 749 Current service cost (1,266) (1,361) Past service costs 830 — Operating costs, net (436) (1,361) Interest expense (income) (428) (116) Amount recognized in the Income Statement (864) (1,478) Remeasurements: (Gain)/loss from change in demographic assumptions (12) (11) (Gain)/loss from change in financial assumptions (105) 2,033 (Gain)/loss from experience (8) (483) Amounts recognized in Other Comprehensive Income (125) 1,539 As of December 31 (14,872) (14,499) ¹ For the financial year 2023, this table includes retiring allowances as well as long service awards for France whereas the table on the employee benefit obligations in published annual report 2022 included only pensions but for France and Germany. The previous year figures have been adjusted accordingly. The following table shows the significant assumptions which have been applied in the measurement of the employee benefit obligations: Discount Rate Salary Increase % 2023 2022 2023 2022 France 3.25 % 3.35 % 3.00 % 3.00 % If the below parameters would increase/decrease by 0.5%, the benefit obligations would change as follows: 2023 2022 Increase Decrease Increase Decrease + 0.5 / -0.5% k€ k€ k€ k€ Discount rate 648 (702) 598 (645) Salary increase (701) 652 — — The average duration of the pension plan is 9.1 years, and the average duration of the long service awards is 12.5 years as of December 31, 2023. (2022 respectively 9.1 years and 12.5 years). The expected service costs for 2024 amount to € 1,389k. Expenses for the statutory retirement obligations are explained in Note (5). -Share performance awards- In order to continue to incentivize 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 10 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 for the SPP 2017, which is derived by comparison with the return of the TecDax index. For the SPP 2022 the performance indicators consist of the relative total shareholder return and revenue growth weighted equally. Additionally, the achievement of the KPIs of the SPP 2022 is dependent on an ESG-performance target. 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. On February 14, 2023, Evotec’s Management Board approved the U.S. Restricted Share Unit Plan (“U.S. RSU Plan”). The U.S. RSU Plan became effective May 31, 2023. The U.S. RSU Plan provides for the grant of restricted share units, which payment may be granted in the form of shares, American depository shares, each representing one A summary of the status of the Share Performance Plans as of December 31, 2023 and 2022 and the changes during the year then ended is presented as follows: December 31 2023 2023 2022 2022 2021 2021 Share Weighted Share Weighted Share Weighted Performance average Performance average Performance average in k€ (Awards SPAs) exercise price (Awards SPAs) exercise price (Awards SPAs) exercise price in thousands in € per share in thousands in € per share in thousands in € per share Granted SPAs at the beginning of the year 1,505 1.00 1,325 1.00 1,570 1.00 SPAs granted 1,489 1.00 469 1.00 609 1.00 Exercised SPAs (233) 1.00 (209) 1.00 (701) 1.00 Expired SPAs — 1.00 (80) 1.00 (152) 1.00 SPAs granted at the end of the year 2,761 1.00 1,505 1.00 1,325 1.00 Thereof exercisable — 1.00 — 1.00 — 1.00 The SPAs in this table includes the RSPs, SSPs and RSUs Evotec’s average weighted share price at the exercise day of SPAs in financial year 2023 was € 19.38 (December 31, 2022: € 34.27; December 31, December 31, 2021: € 37.97). In the financial year 2023, 227,555 Awards (December 31, 2022: 139,229 Awards; December 31, 2021: 160,048 Awards) from the total granted 1,489,411 SPAs (December 31, 2022: 468,706 SPA’s; December 31, 2021: 608,710 SPA’s) were given to the members of the Management Board. The SPAs exercised in 2023 correspond to 233,083 shares (December 31, 2022: 344,458 shares; December 31, 2021: 1,195,954 shares). The fair value of the grant of SPA was estimated on the date of grant using a Monte-Carlo-Simulation model with the following assumptions: RSP 2020 SPP 2022 RSP 2020 RSP 2020 granted granted granted granted October March October May 2023 2023 2022 2022 Risk-free interest rate in % 2.66 2.84 2.03 0.57 Volatility of the Evotec SE share in % 45.00 50.00 51.00 45.00 Volatility of the TecDAX index in %. — 24.00 — — Fluctuation in % 5.00 5.00 5.00 0.0 - 5.0 Exercise price in € 1.00 1.00 1.00 1.00 Share price on the day of issue in € 16.79 16.67 19.47 25.26 TecDAX index price on the day of issue in points — 3,202.25 — — Fair value in accordance with IFRS 2 on the date of issue per SPA of the Executive Board in € — 12.36 — 22.87 Fair value in accordance with IFRS 2 on the date of issue per SPA of the executives in € 15.91 17.07 18.57 24.29 SPP 2017 RSP 2020 RSP 2020 SPP 2017 granted granted granted granted January October May February 2022 2021 2021 2021 Risk-free interest rate in % (0.46) (0.43) (0.57) (0.78) Volatility of the Evotec SE share in % 37.00 35.00 40.00 42.00 Volatility of the TecDAX index in %. 17.00 — — 29.00 Fluctuation in % 0.0 - 5.0 5.00 0.0 - 5.0 0.0 - 5.0 Exercise price in € 1.00 1.00 1.00 1.00 Share price on the day of issue in € 34.90 44.98 35.49 32.25 TecDAX index price on the day of issue in points 3,411.87 — — 3,375.67 Fair value in accordance with IFRS 2 on the date of issue per SPA of the Executive Board in € 31.30 — 33.50 31.34 Fair value in accordance with IFRS 2 on the date of issue per SPA of the executives in € 33.66 43.96 34.47 36.65 For all share performance awards and restricted share awards, a total of € 9,630k was recognized as current service cost in operating expenses in the consolidated statement of income in 2023 (2022: € 9,919k and 2021: € 7,805k). Of this amount, € 2,456k relate to share performance awards of the Management Board in 2023 (2022: € 2,791k; 2021: € 2,002k). In 2023, 2022 and 2021, no current service costs related to stock options were recognized. The expenses related to accelerated vesting are included in the current service cost. The performance measurement period for all issues started on January 1 of the respective year. An expected dividend yield of zero applies to all models. Depending on the nature of the respective plan, the expected duration is either four |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2023 | |
Provisions. | |
Provisions | (13) Provisions - Accounting principles - Provisions are recognized as a result of past events, if the Group has: ● a present legal or constructive obligation, ● the amount can be estimated reliably, and, ● it is more likely than not that an outflow of resources will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money. A provision for onerous contracts is recognized when the expected benefits to be derived by the Group 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, the Group recognizes any impairment expense on the assets associated with that contract. - Provision - The current provisions consist of the following: December 31, December 31, in k€ 2023 2022 Other personnel expenses 41,490 47,490 Pensions 2,184 1,730 Other provision 1,491 5,190 Total current provisions 45,165 54,410 The non-current provisions consist of the following: December 31, December 31, in k€ 2023 2022 Pensions 11,985 12,531 Other personnel expenses 2,164 1,209 Other provisions 1,913 2,687 Total non-current provisions 16,063 16,427 The following table summarizes the development of total provisions recorded during 2023: Foreign Jan 1, Business currency Dec 31, 2023 combination Consumption Release exchange Additions 2023 k€ k€ k€ k€ k€ k€ k€ Other personnel expenses 48,699 — 37,851 10,858 91 43,573 43,654 Pensions 14,261 — 735 579 8 1,215 14,170 Other provisions 7,877 — 1,011 4,588 (179) 1,303 3,404 Total 70,837 — 39,596 16,025 (80) 46,091 61,228 The following table summarizes the development of total provisions recorded during 2022: Foreign Jan 1, Business currency Dec 31, 2022 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 provision for personnel expenses mainly consists of bonus accruals (December 31, 2023: € 13,817k; December 31, 2022: € 26,704k) and accrued vacation (December 31, 2023: € 18,454k; December 31, 2022: € 16,637k). The provision for pensions mainly relates to pensions in France (see Note 12). The other provisions mainly consist of earn-out provisions (December 31, 2023: € 311k; 31 December 2022: € 306k), audit fees (December 31, 2023: € 1,964k; December 31, 2022: € 2,111k) and maintenance fees (December 31, 2023: € 376k; December 31, 2022: € 1,483k). |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2023 | |
Financial Risk Management | |
Financial Risk Management | (14) Financial Risk Management The Group is exposed to several types of financial risks. The Group does not purchase or hold any derivative financial instruments for speculative purposes. - Liquidity Risk- Revenue fluctuations, external events and changes in the business environment might negatively impact the Group’s short- to mid-term profitability and cash reserves. To actively address any related risk, the Group’s management has defined minimum liquidity levels and prepared a scenario planning to safeguard its cash position. The Group believes that existing liquidity reserves are sufficient to cope with the cumulative impact of all identified risks. The Group currently has sufficient liquidity reserves, due to a public placement in the United States in 2021 and securing additional external debt financing in 2023, most significantly a 150m unsecured loan facility from the European Investment Bank. 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 Group does not intend to engage in projects unless adequate funding is allocated or secured. Given the current business environment with economic and political uncertainties, the Group 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 is continuously mitigated by spreading the investments across several different banks in high-credit quality instruments in full compliance with the Group’s approved investment policy. The Group monitors its banks and investments on an ongoing basis. Therefore, the Group assesses the current default risks to be low, remaining unchanged in comparison to the previous year. Currency exchange movements also impact the Group’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 the financial liabilities, including the estimated interest payments as of December 31, 2023 and 2022 are shown in the following tables: December 31, 2023 Carrying Contractual Due in Due in Due in more amount Cashflow 1 year 2 - 5 years than 5 years k€ k€ k€ k€ k€ Non-derivative financial liabilities Loans (437,058) (448,999) (133,666) (159,790) (155,542) Lease obligations (189,140) (204,291) (23,476) (91,682) (89,132) Contingent consideration (311) (334) (334) — — Trade accounts payable (134,319) (134,319) (134,319) — — Other financial liabilities (23,960) (23,960) (22,572) (1,387) — Total non-derivative financial liabilities (784,787) (811,902) (314,368) (252,860) (244,674) Derivative financial liabilities Interest rate swaps/Foreign currency forwards (193) (193) (60) (133) — Total derivative financial liabilities (193) (193) (60) (133) — December 31, 2022 Carrying Contractual Due in Due in Due in more amount Cashflow 1 year 2 - 5 years than 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 (17,871) (17,871) (16,894) (977) — Total non-derivative financial liabilities (622,128) (647,936) (140,935) (352,168) (154,832) Derivative financial liabilities Interest rate swaps/Foreign currency forwards (7,358) (7,358) (6,965) (393) — Total derivative financial liabilities (7,358) (7,358) (6,965) (393) — - Currency Risk- The Group is exposed to foreign exchange risk as the Group entities enter into revenues, purchases, and other transactions in a currency other than the functional currency of the respective Group entity. The functional currencies of the Group entities are mainly Euro, US Dollar and British Pound. In the course of their ordinary business activities, the Group companies are exposed in particular to exchange rate fluctuations between US Dollar, British Pound and Euro. The table below shows the average exchange rates as well as the exchange rates as of December 31, 2023 and December 31, 2022, in each case against the Euro: Annual average exchange rate Closing rate Dec 31 2023 2022 Dec. 31 Jan 1 - Dec 31 Jan 1 - Dec 31 2023 2022 € € € € USD 0.92484 0.9496 0.9050 0.9376 GBP 1.149707 1.1727 1.1507 1.1275 A strengthening (weakening) of the Euro, the US Dollar and the British Pound among themselves and against other currencies, as shown below as at December 31, 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. 2023 USD GBP EUR k€ +10% (10)% +10% (10)% +10% (10)% Share 16,699 (16,699) 5,278 (5,278) 21,977 (21,977) Result 16,699 (16,699) 5,278 (5,278) 21,977 (21,977) 2022 USD GBP EUR k€ +10% (10)% +10% (10)% +10% (10)% Share 31,007 (31,007) 3,967 (3,967) 34,974 (34,974) Result 31,007 (31,007) 3,967 (3,967) 34,974 (34,974) 2021 USD GBP EUR k€ +10% (10)% +10% (10)% +10% (10)% Share 42,053 (42,053) 6,643 (6,643) 48,699 (48,699) Result 42,053 (42,053) 6,643 (6,643) 48,699 (48,699) The Group manages foreign exchange exposure by incurring certain expenses in the currency of the local operating business and through selected hedging transactions such as foreign currency forward contracts. The hedging instruments used do not expose the Group to any significant additional risk. The objective of these transactions is to reduce the exposure of exchange rate fluctuations of the Group’s foreign currency denominated cash flows. The Group does not enter into derivative transactions for trading or speculative purposes. Foreign currency contracts are accounted for at fair value. Foreign currency derivative accounting gains and losses are included in non-operating income and expense amounted to a net gain of € 8,360k in financial year 2023 (2022: net gain € 9,424k, 2021: net loss € 12,410k). The realized and unrealized FX gains in 2023 mainly result from favorable FX forwards from the second half of the year. Derived regularly from the summarized quantitative data about the Group’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 December 31, 2023, cash flows of USD 233,000 k (December 31, 2022: USD 394,039k, December 31, 2021: USD 344,830k), of which USD 173,000k was hedged against the Euro (December 31, 2022: USD 349,639k, December 31, 2021: USD 300,430k), and USD 60,000 k was hedged against the GBP (December 31, 2022: USD 44,400k, December 31, 2021: USD 44,400k), as well as cash outflows of € 3,900k against the GBP (December 31, 2022: € 8,400k, December 31, 2021: € 8,400k).The fair value of cash and cash equivalents, trade receivables and trade payables approximate their carrying amount due to their short-term nature. Financial assets are accounted for at the settlement date. -Interest Rate Risk- Due to securities and other cash investments as well as loans, the Group is exposed to interest rate risks in Germany, UK, and the USA. Financial instruments with fixed interest rates are not subject to interest rate risk and are accordingly not included in the sensitivity analysis. The fair value of debt differs from the carrying amount if there is a difference between the underlying interest rate and the market interest rate. The fair value is then determined by discounting using the market interest rate. The fair values of loans and securities and other investments with variable market interest rates would vary by the following amounts as of December 31, 2023, 2022 and 2021: December 31, 2023 December 31, 2022 December 31, 2021 k€ k€ k€ Flexible interest rate +1%-Point 3,794 3,014 2,570 Flexible interest rate (1)%-Point (2,495) (1,714) (827) The Group is exposed to interest rate risk through variable interest-bearing loans. These interest rate risks are considered immaterial. Evotec regularly uses interest rate swaps to economically hedge the interest rate risks arising from its debt financing. In June 2019, two interest rate swaps with a total notional amount of € 48,250k were agreed against a fixed interest rate of 0.17% and 0.24%, respectively. These result in a current valuation of € (183)k -Credit Risk- Credit risk is the risk of financial loss to the Group 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 is as follows: December 31, 2023 December 31, 2022 k€ k€ USA 38,709 92,034 France 7,107 24,429 UK 15,600 20,451 Germany 8,699 7,767 Rest of Europe 12,990 13,622 Rest of the world 13,129 10,350 96,233 168,653 The maximum credit risk of the contract assets corresponds to the carrying amounts and amounted to € 25,000k at year-end (December 31, 2022: € 30,516k). The Group has exposure to credit risk primarily with respect to its third-party receivables. The Group continuously assesses the solvency of its customers and maintains an appropriate specific allowance for bad debts, which is derived from the expected collectability of all receivables from third parties. The Group’s receivables from third parties are unsecured and not secured by any liens from customers. On December 31, 2023, 6% of trade account receivables were due from one customer (December 31, 2022: 22%). Any default risks with regards to trade receivables are mainly limited by geographical diversification of customers and by the Group’s monitoring procedures. -Country risk- Country risk is the risk that political, legal, or economic developments in a single country could adversely impact the Group’s performance. The country risk is monitored on a regular basis (see Assets and Liabilities per currency above). -Market Risk- 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 the Group’s customers, the intellectual property right and the project stage. This partnership model, which the Group believes to be unique, allows the risks of drug discovery to be balanced and spread. -Capital management risk- The Group actively manages its funds to primarily ensure liquidity and principal preservation while seeking to maximize returns. The Group’s cash and short-term investments are held with 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): December 31, 2023 December 31, 2022 k€ k€ Balance sheet total 2,252,468 2,257,247 Equity attributable to Shareholders of Evotec SE 1,119,908 1,187,184 Equity ratio in (%) 49.7 % 52.6 % Net cash (115,289) (91,518) The Group remains well financed with an equity ratio relating to equity attributable to the Group’s shareholders of 49.7% as of December 31, 2023 (December 31, 2022: 52.6%) 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 (12)). |
Fair Value of financial assets
Fair Value of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value of financial assets and liabilities | |
Fair Value of financial assets and liabilities | (15) Fair Value of financial assets and liabilities -Accounting Principles- For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are as follows: ● Level 1 – inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that the company can access at the measurement date. ● Level 2 – all significant inputs (other than quoted prices included within Level 1) are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). ● Level 3 – one or more of the significant inputs are not based on observable market data, such as third-party pricing information without adjustments, for the asset or liability. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period during which the change has occurred. Specific valuation techniques used to value financial instruments include: Level 1 Instruments included in level 1 are comprised primarily of listed equity investments classified as financial assets carried at fair value through profit or loss or carried at fair value through other comprehensive income. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. Level 2 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives or convertible bond instruments) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are based on observable market data, the instrument is included in level 2. The fair value of derivatives is calculated as the present value of the estimated future cash flows based on observable interest yield curves, basis spread and foreign exchange rates. The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or on the basis of discounted cash flow analysis using market rates. Level 3 If one or more of the significant inputs are not based on observable market data, such as third-party pricing information without adjustments, the instrument is included in level 3. The fair value of contingent consideration is dependent on the terms of the respective acquisition agreement that may require the Group to pay additional consideration to former shareholders if specified future events occur or conditions are met. The fair value measurement is based on management’s estimates and assumptions and hence classified as Level 3 in the fair value hierarchy. -Fair Values- The following table shows the fair value of the financial assets and liabilities measured at fair value and financial liabilities measured at amortized cost together with the corresponding carrying amounts from the statement of financial position as of December 31, 2023 and December 31, 2022 and their respective fair value level. Financial assets measured at amortized cost approximate their carrying amounts in the statement of financial position. December 31, 2023 Carrying in k€ amount Fair value Level 1 Level 2 Level 3 Financial assets Equity instruments 128,109 128,109 81,417 9,543 37,149 Other financial assets 3,179 3,179 — — 3,179 Financial assets carried at FVTPL 131,288 131,288 81,417 9,543 40,328 Equity instruments 7,484 7,484 7,484 — — Short - term investments 1 321,550 321,550 321,550 — — Financial assets carried at FVTOCI 329,034 329,034 329,034 — — Derivative financial instruments 6,137 6,137 6,137 Financial assets carried at fair value 466,459 466,459 410,451 15,680 40,328 Financial liabilities Contingent consideration (311) (311) — — (311) Financial Liabilities carried at FVTPL (311) (311) — — (311) Derivative financial instruments (193) (193) (193) — — Financial liabilities carried at fair value (504) (504) (193) — (311) Trade account payables (134,319) (134,319) — — — Loans and borrowings (437,058) (380,204) Other liabilities (190,527) (190,527) — — — Carried at (amortized) costs (761,904) (705,050) — — — Total financial liabilities (762,408) (705,554) (193) — (311) ¹ Short-term investments include investments which are measured at FVTOCI in the amount of € 83,203 k as well as money market funds that are included in cash and cash equivalents on the balance sheet in the amount of € 238,346 k and are measured at FVTOCI. December 31, 2022 Carrying in k€ amount Fair value Level 1 Level 2 Level 3 Financial Asset Equity instruments 122,477 122,477 70,133 — 52,344 Other financial assets 1,531 1,531 — — 1,531 Financial assets carried at FVTPL 124,008 124,008 70,133 — 53,875 Equity instruments 8,565 8,565 8,565 — — Short-term investments¹ 288,874 288,874 288,874 — — Financial assets carried at FVTOCI 297,439 297,439 297,439 — — Derivative financial instruments 8,215 8,215 — 8,215 Total financial assets carried at fair value 429,662 429,662 367,572 8,215 53,875 Financial liabilities Contingent consideration (306) (306) — — (306) Financial Liabilities carried at FVTPL (306) (306) — — (306) Derivative financial instruments (7,358) (7,358) — (7,358) — Financial liabilities carried at fair value (7,358) (7,358) — (7,358) — Trade account payables (97,278) (97,278) — — — Loans and borrowings (329,851) (308,130) — — — Other liabilities (177,800) (177,800) — — — Carried at (amortized) costs (933,986) (912,265) — — — Total financial liabilities (941,650) (919,929) — (7,358) (306) 1 Short-term investments include investments which are measured at FVTOCI in the amount of € 105,334 k as well as money market funds that are included in cash and cash equivalents on the balance sheet in the amount of € 183,540 k and are measured at FVTOCI. Other Financials Assets carried at Fair Value through Profit & Loss consists of convertible loans granted to long-term investments in accordance with IFRS 9 in the amount of € 3,179k (2022: € 1,531k). The following tables show the development in financial years 2023 and 2022 of the fair values of Level 3: Equity Instruments and other financial assets Contingent in k€ Note Instruments consideration Balance as of Jan 1, 2023 53,875 (306) Additions 10 14,028 — Disposal 10 (3,523) — Transfer from Level 3 to Level 2 (10,909) — Fair Value Change (13,144) (5) Balance on December 31, 2023 40,328 (311) Equity Instruments and other financial assets Contingent in k€ Note Instruments 1 consideration Balance as of Jan 1, 2022 25,458 (1,103) Additions 10 25,846 (14) Disposal 10 — — Transfer from Level 3 to Level 2 — — Fair Value Change 2,571 811 Balance on December 31, 2022 53,875 (306) 1 The effects recognized in the income statement above from the adjustment of the fair values at level 3 were included in the consolidated income statement under “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 December 31, 2023 and 2022: 2023 2022 Net result Net result Increase Decrease Increase Decrease k€ k€ k€ k€ Contingent consideration Discount rate (change of 1.5 %-points) (3) 3 (7) 7 |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholder's Equity | |
Shareholder's Equity | (16) Shareholder´s Equity As of December 31, 2023, 177,185,736 shares of Evotec SE with a nominal value of € 1.00 per share are issued and outstanding The stock options exercised in 2023 have an average exercise price of € 1.00 per share, the same as the average exercise price for stock options exercised in 2022. The conditional capital of Evotec SE as of December 31, 2023 consists of 12,540,493 shares available for the Share Performance Plans and the Stock Option Plans and 35,390,530 shares available for the issuance of no-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 Annual General Meeting on June 22, 2022. The remaining conditional capital of Evotec SE as of December 31, 2023, thus amounts to a total of 47,931,023 shares. Pursuant to Section 5 (5) of the Company’s Articles of Association, the Management Board is authorized, 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 June 21, 2025. As of December 31, 2023, Evotec holds 249,915 treasury shares (December 31, 2022: 249,915 ), representing 0.1% (December 31, 2022: 0.1% ) of Evotec’s total share capital as of December 31, 2023. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share | |
Earnings per share | (17) Earnings per share -Accounting Principles- Basic EPS is calculated by dividing the Net income (loss) attributable to shareholders by the weighted average number of common shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders and the weighted average number of common shares outstanding during the period, adjusted for own shares held, for the effects of all dilutive potential common shares, which comprises forward purchase contracts, restricted shares, performance shares and share options granted to employees. -Earnings per share- The weighted average number of ordinary shares is calculated as follows: Shares in thousands 2023 2022 2021 Issued shares Jan. 1 176,953 176,608 163,915 Treasury shares Jan. 1 (250) (250) (250) Effect of weighted average share capital increase — — 1,953 Effect of weighted average stock options exercised 214 316 788 Weighted Average Number of Shares Outstanding Dec 31. 176,917 176,674 166,406 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 2023, the number of potentially dilutive shares to be issued from stock options and Share Performance Awards amounted to 1,000,455 (2022: 463,415). For calculating the diluted net result per share, the resulting dilutive shares are included from the beginning of the period. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Commitments and contingencies | (18) Commitments and contingencies -Operating Lease obligations- The future minimum lease payments under non-cancellable lease agreements but not yet commenced, are as follows: Dec 31 Dec 31 2023 2022 k€ k€ Less than one year 1,192 1,561 Between one and five years 14,304 16,373 More than five years 38,144 44,979 Total 53,640 62,913 In addition, the Group maintains leases which were not recognized in accordance with the exemptions in IFRS 16. These amounts are not material and therefore not presented here. -Other Commitments and Contingencies- The future minimum payments associated with miscellaneous long-term commitments total approximately € 80,367k at December 31, 2023. The significant portion thereof is related to long-term commitments in connection with facility expenses as well as contracted, non-milestone-based capital calls in relation with the Group´s investments in associates and long-term investments. In addition, as of December 31, 2023, contingent liabilities in relation with milestone-based commitments in connection with the Group´s long-term investments amounted to € 9,122k. As of December 31, 2023, the Group has entered into purchase order commitments in the amount of € 80,519k. The Group is not aware of any material actual or threatened litigation as of December 31, 2023. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | (19) Related party transactions The Group has not entered into any significant transactions with any key management personnel or member of the Supervisory Board. The remuneration paid to key management personnel is presented in Note 21 e). The remuneration paid to members of the Supervisory Board is shown in Note 21 e). As part of the normal course of business, the Group may enter into transactions with associated companies. The terms and conditions of all transactions are made based on market terms and conditions and the arm’s length principle. in k€ 2023 2022 2021 Sales of goods and services 16,661 36,677 28,868 Receivables from related parties 2,164 4,071 2,643 |
Auditor's remuneration
Auditor's remuneration | 12 Months Ended |
Dec. 31, 2023 | |
Auditor's remuneration | |
Auditor's remuneration | (20) Auditor’s remuneration BDO and other firms in the BDO network charged the following fees for audit other professional services: in k€ 2023 2022 Audit Fees 1 4,088 2,460 Audit-Related Fees 60 43 Audit fees related to prior year audit 1,504 402 All Other Fees — 77 Total 5,651 2,982 1 Audit fees are the aggregate fees charged by BDO network firms for auditing our consolidated financial statements and statutory and other regulatory filings or engagements of Evotec SE and its subsidiaries. Furthermore, audit-related fees of € 60k were provided for the audit of the non-financial report including sustainability-related disclosures. |
Other disclosures
Other disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Other disclosures | |
Other disclosures | (21) Other disclosures German law in accordance with the European Directives on Accounting and the Corporate Governance Codex requires the following additional disclosures. a) Number of Employees The average number of people employed by the Company in 2023 was 5,069 employees (2022: 4,482). In 2023, 915 of these employees worked in sales and administration (2022: 694) and 4,154 of these employees worked in operations (2022: 3,788). The increase is mainly due to organic business growth. b) Corporate Governance Code According to Sec 161 AktG, the Management Board and Supervisory Board issued statement of compliance with regard to the German Corporate Governance Code. This statement has been made accessible to the Company’s shareholders in the ‘Invest’ section on Evotec’s website (https://www.evotec.com/en/sustainability/governance). (c) 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. 2023 Company’s voting rights % Subsidiaries Aptuit Global LLC, Princeton, USA 100 Aptuit (Verona) SRL, Verona, Italy 100 Aptuit (Oxford) Ltd., Abingdon, UK 100 Aptuit (Potters Bar) Ltd., Abingdon, UK 100 Cyprotex Discovery Ltd., Manchester, UK 100 Cyprotex Ltd., Manchester, UK 100 Cyprotex US, LLC., Framingham, USA 100 Evotec (France) SAS, Toulouse, France 100 Evotec ID (Lyon) SAS, Marcy l’Étoile, France 100 Evotec (Hamburg) GmbH, Hamburg, Germany 100 Evotec GT GmbH, Orth an der Donau, Austria 100 Evotec (India) Private Limited, Thane, India* 100 Evotec International GmbH, Hamburg, Germany 100 Evotec (München) GmbH, Martinsried, Germany 100 Evotec (UK) Ltd., Abingdon, UK 100 Evotec (US), Inc., Princeton, USA 100 Just - Evotec Biologics, Inc., Seattle, USA 100 Just - Evotec Biologics EU SAS, Toulouse, France 100 Evotec Drug Substance (Germany) GmbH, Halle, Germany 100 Evotec (Modena) Srl, Medolla, Italy 100 NephThera GmbH, Hamburg, Germany 100 Evotec Asia Pte. Ltd., Shenton, Singapore 100 2023 Company’s voting rights % Associates Ananke Therapeutics Inc., Boston, USA 19.88 Autobahn Labs LLC, Palo Alto, USA 35.26 Breakpoint Therapeutics GmbH, Hamburg, Germany 34.03 Curexsys GmbH, Göttingen, Germany 43.44 Dark Blue Therapeutics Ltd., Oxford, UK 38.97 Eternygen GmbH, Berlin, Germany 24.97 Quantro Therapeutics GmbH, Wien, Austria 38.79 Topas Therapeutics GmbH, Hamburg, Germany 23.61 Centauri Therapeutics Ltd., Sandwich (Kent), UK 20.04 Other Investments Aeovian Pharmaceuticals Inc., San Francisco, USA 3.51 ArgoBio SAS, Paris, Frankreich 10.01 Aurobac Therapeutics SAS, Lyon, Frankreich 12.50 Blacksmith Medicines Inc., San Diego, USA 17.94 Cajal Neuroscience Inc., Seattle, USA 1.52 Carma Fund I, München, Germany 10.00 Carrick Therapeutics Ltd., Dublin, Ireland 2.78 Celmatix 12.35 Curie Bio LLC, Boston, USA 0.11 Curie Bio Seed Fund I L.P., Boston, USA 2.83 Exscientia plc, Oxford, UK 11.41 Extend Srl, Rome, Italy 10.00 Fibrocor LLP, Toronto, Canada 16.26 Fibrocor Therapeutics Inc., Toronto, Canada 8.83 IMIDomics Inc., San Francisco, USA 8.15 Immunitas, Therapeutics, Inc., Waltham, USA 5.58 Leon Nanodrugs GmbH, München, Germany 12.44 Mission BioCapital V LP, Cambridge, USA 3.64 OxVax Ltd., Oxford, UK* 15.33 Pancella/Pluristyx 5.69 Sernova Corp., Ontario, Canada 5.16 Tubulis GmbH, München, Germany 9.60 * In voluntary liquidation On July 1, 2023 Evotec acquired the remaining 50% in NephThera GmbH. Therefore, NephThera is fully consolidated as of July 2023. Associates and joint ventures are accounted for using the equity method. As of July 2023, Evotec stepped down from its board seat of Pancella Inc. Consequently, Evotec does not have significant influence over this company since July 2023 and the corresponding investment is no longer accounted for using the equity method and measured at fair value according to IFRS 9. In the second half of the year 2023, the Group´s share of Centauri Therapeutics Ltd. increased to more than 20%. Together with Evotec´s participation in all significant financial and operational decisions, the Group determined that it has significant influence over Centauri Therapeutics Ltd. Therefore, the investment is accounted for using the equity method. The Group’s investments in subsidiaries, associates and joint ventures are not hedged as these currency positions are considered to be long-term in nature. (d) Management Board Dr. Werner Lanthaler, Business Executive, Hamburg, Germany (Chief Executive Officer, Chairman of the Board until January 3, 2024), Dr. Mario Polywka, Oxfordshire, United Kingdom (Interim Chief Executive Officer, Chairman of the Board until June 2024) Dr. Cord Dohrmann, Biologist, Göttingen, Germany (Chief Scientific Officer), Dr. Craig Johnstone, Chemist, Castillon-Savès, France (Chief Operating Officer), Enno Spillner, Business Executive, Hamburg, Germany (Chief Financial Officer, until March 31, 2023), Laetitia Rouxel, Business Executive, Clarens, Switzerland (Chief Financial Officer, Germany from April 1, 2023) and Dr. Matthias Evers, Neurobiologist, Hamburg, Germany (Chief Business Officer, from May 1, 2022). The remuneration granted to the members of the Management Board for the financial years 2023 and 2022 are shown below: in k€ 2023 2022 Fixed remuneration 2,954 2,343 Variable remuneration 731 1,579 Share Performance Awards (in units) 227,555 139,229 Fair value of SPAs granted 3,611 4,580 Total Remuneration 7,296 8,502 The Members of the Management Board who hold additional memberships in supervisory boards and memberships in comparable governing bodies of enterprises are listed below. Dr. Werner Lanthaler Non-Executive Member des Board of Directors & Chairman of the Audit Committee: arGEN-X, Breda/NL (Stock exchange listing on the NASDAQ and Euronext) Non-Executive Member des Board of Directors: AC Immune SA, Lausanne/CH (Stock exchange listing on the NASDAQ) Dr. Cord Dohrmann Member of the Supervisory Board: Eternygen GmbH, Berlin/DE* (not listed) Breakpoint Therapeutics, Hamburg/DE* (not listed) Non-Executive Member des Board of Directors FSHD Unlimited, Leiden/NL* (not listed) Enno Spillner Non-Executive Member des Board of Directors & Chairman of the Audit Committee: Nanobiotix SA, Paris/FR (Stock exchange listing on the NASDAQ und Euronext) Member of the Supervisory Board: Leon Nanodrugs GmbH, München/DE* (not listed) * Associated company of Evotec (e) Supervisory Board Prof. Dr. Iris Löw-Friedrich, Chairwoman of the Board (Chief Medical Officer) of the UCB S.A. (Stock exchange listing on the Euronext Brüssel/Belgien); Chairwoman of the Supervisory Board and of the Compensation and Nomination Committee Roland Sackers, Chief Financial Officer, and Management Director of QIAGEN N.V. (Stock exchange listing on the Frankfurt Stock Exchange and New York Stock Exchange; Vice Chairman of the Supervisory Board and Chairman of the Audit and Compliance Committee Camilla Macapili, Languille, Head of Life Sciences, Mubadala Investment Company (MIC) (not listed); Member of the Supervisory Board (since June 2022) Dr. Mario Polywka, Oxfordshire, United Kingdom, Non-independent consultant; member of the Supervisory Board ( until January 3, 2024 ); former member of the Management Board of Evotec SE Dr. Elaine Sullivan. London, United Kingdom, independent consultant; CEO of KELTIC Pharma Therapeutics Ltd. (until May 2023) (not listed); Board Director at the University of Edinburgh (not listed); member of the Management Board Dr. Constanze Ulmer-Eilfort, Munich, Germany, Partner in the law firm Peters, Schönberger & Partner PSP (Munich) (not listed); Member of the Supervisory Board and Chairwoman of the ESG Committee The remuneration accrued of the Supervisory Board in the financial year was as follows: in k€ 2023 2022 Total remuneration of the supervisory board 520 504 In the financial years 2023 and 2022, the compensation per Supervisory Board member amounted to k€ 50 per year. The Chairman receives k€ 125 (2022: k€ 125) and his deputy k€ 60 (2022: k€ 60) in the financial year 2023. The members of Supervisory Board committees receive k€ 10 (2022: k€ 10) per committee; the chairman of a committee receives k€ 25 (2022: k€ 25). In the financial years 2023 and 2022, there was no share-based remuneration The Company has a Directors and Officers liability insurance for the members of the Management Board, the Supervisory Board, its senior management and the directors of the subsidiary companies. An appropriate deductible has been agreed for the members of the Supervisory Board. The members of the Supervisory Board and their additional memberships in supervisory boards and members in comparable governing bodies of enterprises according to Sec 125 (1) sentence 5 AktG are listed in the following: Prof. Dr. Iris Löw-Friedrich Member of the Supervisory Board: Fresenius SE & Co. KGaA. Bad Homburg/GER (Listed on the Frankfurt, Düsseldorf and München Stock Exchange) TransCelerate BioPharma Inc. King of Prussia/USA (not listed) Member of the Board of Directors: PhRMA Foundation, Washington DC/USA (not listed) Roland Sackers Member of the Board of Directors: BIO Deutschland e.V. Berlin/GER (not listed) Dr. Mario Polywka Non-executive Director: Blacksmith Medicines Inc. San Diego/USA (not listed) Exscientia Plc. Oxford/UK (Listed on the NASDAQ) Orbit Discovery Limited. Oxford/UK (Listed on the NASDAQ) C4X Discovery Holdings PLC. Manchester/UK (Listed on the London Stock Exchange) Dr. Elaine Sullivan Member of the Supervisory Board/Observer (since November 2023): Zealand Pharma A/S, Søborg/DK (listed on the NASDAQ Copenhagen) (since December 2023) Non-executive Director: Active Biotech AB, Lund/SE (Listed on the NASDAQ OMX Nordic Exchange Stockholm) (until May 2023) hVIVO plc (prior Open Orphan plc), London/UK (Listed on the London AIM and Euronext Growth Stock Exchange) IP Group plc, London/UK (Listed on the London Stock Exchange) Nykode Therapeutics ASA, Oslo/NO (Listed on the Oslo Stock Exchange) Dr. Constanze Ulmer-Eilfort Member of the Supervisory Board: Affimed NV, Mannheim/Germany (listed on the NASDAQ) Chairmen of the Advisory Committee: S4DX GmbH, München/GER (not listed) Member of the Advisory Board: Proxygen GmbH, Vienna/AT (not listed) Camilla Macapili Languille Member of the Board of Directors: PCI Pharma Services (KPCI Holdings Limited), Philadelphia/USA (not listed) |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent events | |
Subsequent events | (22) Subsequent events On January 3, 2024 it was announced that CEO Dr. Werner Lanthaler has decided to step down as CEO effective immediately and will not continue to serve until the end of his current term. Dr. Mario Polywka, former COO and member of the Supervisory Board, stepped in as interim CEO until June 30, 2024. On April 24, 2024 as part of the publication of the 2023 Annual Results, the Group announced that it was currently assessing its current footprint and activities. As of June 30, 2024, the Group has recognized a provision of k€ The Supervisory Board of Evotec SE has appointed Aurélie Dalbiez as new Chief People Officer with effect from June 15, 2024. The Supervisory Board of Evotec SE has appointed Dr. Christian Wojczewski as new Chief Executive Officer with effect from July 1, 2024. On February 7, 2024, the Management Board approved the commencement of an internal performance review and priority reset which will focus on right sizing the organization and returning to a sustainable growth track. On July 30, 2024, Evotec signed a syndicated loan facility in the amount of €250 million with a consortium of major international financial institutions to support ongoing operations and strategic initiatives for future growth. On August 6, 2024, Evotec issued an updated guidance for FY2024. The Group expects revenue to be in the range of €790 million to €820 million (previously low to mid-single digit percentage growth of 2023 revenue (2023: €781.4 million)), an adjusted EBITDA in the range of €15 million to €35 million (previously mid-double digit percentage growth of 2023 adjusted EBITDA (2023: €66.4 million)) and unpartnered R&D expenditures in the range of €50 million to €60 million (previously mid-single to low double digit percentage reduction of 2023 unpartnered R&D expenditures (2023: €64.8 million)). Some of the Group’s borrowing is subject to covenants based on Net Debt leverage. The Group has determined that it would not meet some of those covenants as of June 30, 2024 and September 30, 2024, and has subsequently obtained waivers before June 30, 2024. The Group expects to meet its financial covenants in the following periods going forward. Hamburg, August 14, 2024 Dr. Christian Wojczewski Aurélie Dalbiez Dr. Cord Dohrmann Dr Matthias Evers Dr. Craig Johnstone Laetitia Rouxel |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies | |
Basis for preparation | - Basis for preparation - The consolidated financial statements cover the twelve-month periods ended December 31, 2023 and 2022. In accordance with Regulation No. 1606/2002 of the European Parliament and Council of July 19, 2002 on the application of international accounting standards, Evotec has presented its consolidated financial statements in accordance with IFRS since 2005. The term “IFRS” refers collectively to international accounting and financial reporting standards (IASs and IFRSs) and to interpretations of the interpretations committees (SIC and IFRIC) with mandatory application as of January 1, 2023. The consolidated financial statements of Evotec as of December 31, 2023 have been prepared in compliance with IFRS as issued by the International Accounting Standards Board (IASB) and with IFRS as endorsed by the European Union as of December 31, 2023. Additional requirements of Section §315e (1) of the German Commercial Code (HGB) have been applied accordingly in accordance with the version endorsed at the end of the reporting period. |
Significant accounting judgements and estimates | - Significant accounting judgements and estimates- The preparation of the Consolidated Financial Statements in accordance with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, revenues and expenses, the accompanying disclosures, as well as the disclosure of contingent liabilities. These estimates inherently contain a degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions. The Group evaluates these accounting judgements and estimates on an ongoing basis and bases the estimates on historical experience, current and expected future outcomes, third-party valuation and various other assumptions that the Group believes are reasonable under the circumstances. Existing circumstances and assumptions about future developments may change due to circumstances beyond the Group’s control and are reflected in the assumptions if and when they occur. The Group revises significant estimates as relevant and applicable if changes occur in circumstances or if new information or historical data is available and would require Evotec to do so. The areas where the most significant judgements and estimates are made relate to the following areas: Judgement: ● Revenue recognition, determination of performance obligation and allocation of consideration as well as determination of advancement for over time performance obligations; ● Determination of the lease term and more specifically the assessment whether a lease option to extend or cancel a lease in which the Group is a lessee is reasonably certain to be exercised or not; ● Likelihood of occurrence of provisions, uncertain tax positions and contingent liabilities; ● Impairment analyses in relation with goodwill and intangible assets are performed annually as well as the determination of whether the carrying value exceeds the recoverable amount whenever a triggering event occurs. These analyses are generally based on estimates of discounted future cash flows; ● Determination of the fair values of Level 3 financial assets where significant inputs of the fair value measurement are not based on observable market data. Estimates: ● Assessment of the recoverable amount of goodwill and intangible assets; ● Measurement of the recoverability of deferred tax assets; ● Determination of fair values of acquired identifiable intangible assets as part of a business combination; ● Determination of budgeted FTE rates in the assessment of percentage of completion in relation with revenue recognition The potential impact of climate related matters, including legislation which may affect the fair value of financial assets and liabilities in the Consolidated Financial statements has been considered, especially but not limited to deferred tax assets recoverability, useful life of tangibles and intangibles and provisions. As of December 31, 2023, the Group does not believe that the impact of climate related matters would be material to the Consolidated Financial Statements. For further discussion of these significant judgements and estimates, reference is made to the respective Accounting Policies and Notes within these Consolidated Financial Statements that relate to the above topics. |
Basis for consolidations | - Basis for consolidations - The Consolidated Financial Statements comprise the financial statements of Evotec SE and all the subsidiaries that the Company controls, i.e. when it is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and in cases where the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including the contractual arrangement(s) with the other vote holders of the investee, rights arising from other contractual arrangements and the Group’s voting rights and potential voting rights. Subsidiaries Subsidiaries are fully consolidated from the date that control commences until the date that control ceases. Transactions between consolidated companies are eliminated, as well as intragroup profits. Associates Associates are all entities over which the Group has significant influence but no control. Significant influence is presumed with a shareholding between 20% and 50% of the voting rights or when the Group has board representation through which it is able to exercise significant influence, such as, but not limited to participating in the financial and operating policy decisions of that entity but does not have the power to exercise control or joint control over those policies. Investments in associates are accounted for using the at-equity method and are initially recognized at cost. Unrealized gains and losses from transactions between the Group and its associates or joint ventures are recognized only to the extent of unrelated investors` interests in the associates. Joint arrangements The Group classifies its joint arrangements (i.e., arrangements in which the Group exercises joint control with one or more other parties) either as a joint operation (in which case, the Group recognizes the assets and liabilities of the operation in proportion to its rights and obligations relating to those assets and liabilities) or as a joint venture. Loss of control Upon loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any non-controlling interests, and other components of equity (if any) related to the subsidiary. Any surplus or deficit arising from the loss of control is recognized in the Consolidated Income Statement. If the Group retains any interest in the previous subsidiary, such interest is measured at fair value at the date the control is lost. Subsequently, it is accounted for as either an equity accounted investee or as a financial asset depending on the level of influence retained. 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 (December 31). |
Foreign currencies | - Foreign currencies - Foreign currency transaction The financial statements of all Evotec Group entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The Euro (EUR) is the functional currency of the Group and the presentation currency of the Consolidated Financial Statements. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or the valuation in cases where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to Euro at the exchange rates prevailing at the reporting date. The income and expenses of foreign operations are translated to Euros at the monthly average foreign exchange rate. Foreign currency differences arising upon translation of foreign operations into Euros are recognized in Other Comprehensive Income and presented as part of currency translation reserves in Shareholders Equity. In the balance sheet these are recognized under retained earnings. When a foreign operation is disposed of, leading to a loss of control, significant influence or joint control, the cumulative amount in the currency translation differences related to the foreign operation is reclassified to the Consolidated Income Statement as part of the gain or loss on disposal. |
Application of standards; amendments and interpretation | - Application of standards; amendments and interpretation- The following amendments became effective as at January 1, 2023: ● IFRS 17 Insurance Contracts (including Amendments to IFRS 17 issued in June 2020 and Amendment to IFRS 17 - Initial Application of IFRS 17 and IFRS 9—Comparative Information issued in December 2021) ● Amendments to IAS 8 – Definition of Accounting Estimates ● Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies ● Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction ● Amendments to IAS 12 - International Tax Reform – Pillar Two Model Rules None of those amendments had a significant impact on the Company´s consolidated financial statements for the 12 months period ended December 31, 2023. The following amendments will become effective after January 1, 2024 however may be early adopted: ● Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback Transaction (January 1, 2024) ● Amendments to IAS 1 - Classification of Liabilities as Current or Non-current (including the amendment to IAS 1 - Classification of Liabilities as Current or Non-current - Deferral of Effective Date issued in July 2020) (January 1, 2024) ● Amendments to IAS 1 - Non-current Liabilities with Covenants (January 1, 2024) ● Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements (January 1, 2024) ● Amendments to IAS 21 - Lack of Exchangeability (January 1, 2025) ● IFRS 18 - Presentation and Disclosures in Financial Statements (issued by IASB on April 9, 2024, effective date January 1, 2027) Evotec has not early adopted any new standards, interpretations or amendments that have been issued but are not yet effective in these consolidated financial statements. None of those amendments are expected to have a significant impact on the Group´s consolidated financial statements. |
Revenue | Revenue 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 Group assesses collectability based on a number of factors, including past transaction history with the customer and the customer’s creditworthiness. Multi-element contracts The Group regularly enters into arrangements for the R&D and subsequent manufacture of product candidates. Such arrangements may require the Group to deliver various rights, services and/or goods, including intellectual property rights, licenses, technology access fee, R&D services, and manufacturing services. The underlying terms of these arrangements generally provide for consideration to the Group in the form of non-refundable upfront fees, development and R&D or commercial performance milestone payments, royalty payments or profit sharing. In arrangements involving more than one performance obligation, each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether: ● the customer can benefit from the good or service either on its own or together with other resources that are readily available and ● the good or service is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects the Group´s best estimate of what the selling price would be if the deliverable was regularly sold by the Group on a stand-alone basis or by using an adjusted market assessment approach if the selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred. For performance obligations satisfied over time, the Group usually uses an input-based method to determine the percentage of completion. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. Material payments for those services are generally made in advance by the customer and recorded as contract liabilities until the related performance obligations are satisfied. Contract assets are recognized in case the Group´s progress of completion of its performance obligations exceeds the amount of the payments received. Milestone payments Milestone payments for research and development are contingent upon the occurrence of a future event and represent a variable consideration. The Group usually estimates at contract’s inception that the most likely amount for milestone payments is zero. The most likely amount method of estimation is considered the most predictive for the outcome since the outcome is binary; e.g. achieving a specific success in clinical development (or not). The Group includes milestone payments in the total transaction price only to the extent that it is highly probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Service Fees Service fees for the assignment of personnel to research and development collaborations are recognized as revenues in the period the services were provided. Technology access fees Revenue from technology access fees is recognized over the related service period. Payments for technology access fees are generally paid in full or in parts in advance and recorded as contract liabilities until earned. Licenses of intellectual property The Group distinguishes between the right to use IP and the right to access IP. Revenue for a right-to-use license is recognized by the Group when the licensee can use and benefit from the IP after the license term begins, e.g., the Group has no further obligations in the context of the out-licensing of a drug candidate or technology. In practice that means at the date of the sale or when the licensee gains effectively access. Revenue from a right to access license of the intellectual property is recognized when the Group undertakes activities during the license term that significantly affect the IP, the customer is directly exposed to any positive or negative effects of these activities, and these activities do not result in the transfer of a good or service to the customer. Revenues from the right to access the IP are recognized on a straight-line basis over the license term. Royalties The Group receives royalties generated from successful development. Those royalties are generally sales based with additional milestones payments depending on the underlying market or product. The revenue generated from royalties is recognized as the underlying sales occur when it is highly probable that the consideration will be received. Financing component and time value of money The Group does not enter into arrangements where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year or the cash consideration and the stand alone selling price differs significantly. Additionally, the Group does not consider any prepayments provided by the customer as financing components. Consequently, the Group does not adjust any of the transaction prices for the time value of money. Contract assets Contract assets correspond to amounts accrued or due by customers for work in progress depending on the stage of completion of the analysis/work performed. The Group regularly assesses the state of its billing operations and the level of payer’s reimbursements based on specific facts and circumstances and historical recoverability data in order to identify issues which may impact the collection. Contract liabilities A contract liability is the obligation of the Group to transfer goods or services to a customer for which the Group has received a consideration (or an amount of consideration is due). If a customer pays the consideration before the Group 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 the Group fulfills its contractual obligation. The Group´s contracts do not include financing components as all up-front consideration received are prepayments on service obligations. Revenue from contributions Revenue Recognition from Contributions The Group 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. |
Other operating income (Loss) | Operating income excludes in general items that are not directly related to the Group’s operating activities, except cyber-related costs which are also included in the operating income. Activities in relation with the Group´s operating activities primarily relate to gains or losses on the disposal of material property, plant and equipment, gains or losses on the sale of Group companies, associates and joint ventures, indemnification provisions as well as disputes with minority shareholders. Other Operating Income The Group may receive 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. The Group determined that under its significant tax development programs, 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 programs are provided for specific activities, often limited to specific R&D expenses. As such, the Group accounts for such tax development programs 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, the Group 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. Research and development Research activities expenses undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognized in profit or loss when incurred. Refer to Note 9 for further details regarding the capitalization policy of IP R&D and other related expenses. Government Grants Government grants are recognized when all the conditions associated to those grants have been substantially complied with, and all attached conditions have been 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 evenly over the expected useful life of the related asset. |
Research and development | Research and development Research activities expenses undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognized in profit or loss when incurred. Refer to Note 9 for further details regarding the capitalization policy of IP R&D and other related expenses. |
Government Grants | Government Grants Government grants are recognized when all the conditions associated to those grants have been substantially complied with, and all attached conditions have been 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 evenly over the expected useful life of the related asset. |
Income and deferred tax | Income taxes comprise current, non-current and deferred tax. Income tax is recognized in the Consolidated Income Statement except to the extent that it relates to items recognized directly within equity or in Other Comprehensive Income. Current tax is the expected taxes payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. The tax rates for domestic companies are between 27% and 32% and for foreign companies between 19% and 31%. In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities or, alternatively, a provision is made for the amount that is expected to be settled, where this can be reasonably estimated. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding adequacy of existing tax assets and liabilities. Such changes to tax assets and liabilities will impact the income tax expense in the period during which such a determination is made. Deferred tax assets and liabilities are recognized, using the consolidated Balance Sheet method, for the expected tax consequences of temporary differences between the carrying amounts of assets and liabilities according to IFRS and the amounts used for taxation purposes. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by 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, and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences, ● 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 and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity or on different taxable entities, but the Group intends to settle current tax liabilities and assets on a net basis, or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that there will be future taxable profits against which they can be utilized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during the periods when the deferred tax assets become deductible. The Group considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. International Tax Reform - Pillar II Framework The Group falls within the scope of application of the so-called Pillar II framework, that entered into force in the German legislation on December 28, 2023. As the Minimum Tax Act applies for the first-time financial years beginning on or after December 30, 2023 (“MinStG”), there was no minimum tax exposure for the fiscal year 2023. The implementation of the global minimum tax rules into domestic legislation in other jurisdictions also did not result in any minimum tax being levied in 2023. At the same time, Pillar II legislation has been enacted or substantially enacted in a number of other jurisdictions in which the Group operates, effective for the financial year beginning January 1, 2024. As the Group is in scope of the Pillar II legislation the group may be liable to pay a top-up tax for each jurisdiction having an effective tax rate below 15%. During the transitional period from 2024 to 2026, the top up tax can, upon request, be deemed zero for a jurisdiction where the requirements of the country by country reporting safe harbor rules are met. The Group will exercise this option, which based on the 2023 fiscal year, would lead to the Company being exempt from minimum taxation in most of the jurisdictions in which it operates. The Group has performed a preliminary assessment of its potential exposure based on the information currently available, however, does not expect it to have a material impact on the Group’s effective tax rate and to be liable for material top up tax payments in the countries in which it operates. The Group has applied the exception to recognizing and disclosing information about deferred taxes relating to Pillar II income taxes, as provided by the amendment to IAS 12 issued in May 2023 and endorsed in the EU in November 2023. |
Current assets and liabilities | Trade accounts receivable Trade accounts receivable are initially recognized at their invoiced amounts less any deductions such as trade discounts. For trade accounts receivable, the Group applies the simplified approach with expected lifetime credit losses recognized from initial recognition of the receivables in the income statement. The provision for doubtful debts is established using an expected credit loss model (ECL) using the simplified approach in accordance with IFRS 9. The carrying amount of trade accounts receivable is reduced through the use of an allowance account. Impaired trade accounts receivables are derecognized when they are assessed as uncollectible. Inventories In accordance with IAS 2, inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises all costs of purchase, manufacturing, as well as other costs incurred in bringing the inventories to their present location and condition. The cost of inventories is predominantly determined by using the weighted average cost method. Depending on the nature of inventory, the Group also applies the first-in, first-out method in rare cases. The net realizable value represents the estimated sales price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Write-downs of inventories which are considered obsolete or slow moving are computed taking into account their expected future utilization and their net realizable value. The Group also considers other reasons that the cost of inventories may not be recoverable such as damage, obsolescence, expiration date or declines in selling price. |
Trade accounts receivable | Trade accounts receivable Trade accounts receivable are initially recognized at their invoiced amounts less any deductions such as trade discounts. For trade accounts receivable, the Group applies the simplified approach with expected lifetime credit losses recognized from initial recognition of the receivables in the income statement. The provision for doubtful debts is established using an expected credit loss model (ECL) using the simplified approach in accordance with IFRS 9. The carrying amount of trade accounts receivable is reduced through the use of an allowance account. Impaired trade accounts receivables are derecognized when they are assessed as uncollectible. |
Inventories | Inventories In accordance with IAS 2, inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises all costs of purchase, manufacturing, as well as other costs incurred in bringing the inventories to their present location and condition. The cost of inventories is predominantly determined by using the weighted average cost method. Depending on the nature of inventory, the Group also applies the first-in, first-out method in rare cases. The net realizable value represents the estimated sales price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Write-downs of inventories which are considered obsolete or slow moving are computed taking into account their expected future utilization and their net realizable value. The Group also considers other reasons that the cost of inventories may not be recoverable such as damage, obsolescence, expiration date or declines in selling price. |
Property, plant and equipment | Owned Assets Property, plant and equipment, including leasehold improvements are recorded in the Statement of Financial Position at their acquisition price, net of accumulated depreciation and impairment losses. The costs of property, plant and equipment comprise all directly attributable costs. After initial measurement, property, plant and equipment is carried at cost less accumulated depreciation and impairment, except for land which is carried at cost less impairment. Depreciation is calculated using the straight-line method over the estimated useful life of the asset, which the Group reviews at each balance sheet date. Costs related to repair and maintenance activities are expensed in the period in which they are incurred unless leading to an extension of the original lifetime or capacity. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Subsequent costs are not recognized as assets unless it is probable that future economic benefits associated with those costs will flow to the Group and those costs can be measured reliably. Borrowing costs attributable to the financing of items of property, plant and equipment, and incurred during the construction period, are capitalized as part of the acquisition cost of the item. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the asset to which they relate. The straight-line depreciation is based on the following useful lives of the asset: Buildings 15 to 33 years Technical equipment and machinery 3 to 15 years Office furniture and equipment 3 to 10 years 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 Group. 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. Leases The Group leases various offices, laboratories equipment and cars. The Group determines whether an arrangement constitutes or contains a lease at inception, which is based on the substance of the arrangement. The arrangement constitutes or contains a lease if fulfillment is dependent on the use of a specific asset and the arrangement conveys a right to use the asset, even if that asset is not explicitly specified in the arrangement. Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. The right-of use asset is depreciated over the shorter of the asset’s useful life or the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: ● fixed payments (including in-substance fixed payments) less any lease incentives receivable; ● variable lease payments that are based on an index or a rate; ● amounts expected to be payable by the lessee under residual value guarantees; ● the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; ● payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. 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. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group´s incremental borrowing rate at the lease commencement date is used, which is based on an assessment of interest rates, the Group would have to pay to borrow funds in the relevant country, including the consideration of factors such as the nature of the asset, its location, as well as the duration of the lease. 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, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Right-of-use assets are measured at cost comprising the following: ● the amount of the initial measurement of lease liability; ● any lease payments made at or before the commencement date less any lease incentives received; ● any initial direct costs; ● restoration costs. The right-of-use assets are subsequently accounted for using principles for property, plant and equipment. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the income statement. The Group defines short-term leases as leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture considered to be of low value (i.e., less than € 5,000). The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. |
Leases | Leases The Group leases various offices, laboratories equipment and cars. The Group determines whether an arrangement constitutes or contains a lease at inception, which is based on the substance of the arrangement. The arrangement constitutes or contains a lease if fulfillment is dependent on the use of a specific asset and the arrangement conveys a right to use the asset, even if that asset is not explicitly specified in the arrangement. Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. The right-of use asset is depreciated over the shorter of the asset’s useful life or the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: ● fixed payments (including in-substance fixed payments) less any lease incentives receivable; ● variable lease payments that are based on an index or a rate; ● amounts expected to be payable by the lessee under residual value guarantees; ● the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; ● payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. 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. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group´s incremental borrowing rate at the lease commencement date is used, which is based on an assessment of interest rates, the Group would have to pay to borrow funds in the relevant country, including the consideration of factors such as the nature of the asset, its location, as well as the duration of the lease. 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, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Right-of-use assets are measured at cost comprising the following: ● the amount of the initial measurement of lease liability; ● any lease payments made at or before the commencement date less any lease incentives received; ● any initial direct costs; ● restoration costs. The right-of-use assets are subsequently accounted for using principles for property, plant and equipment. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the income statement. The Group defines short-term leases as leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture considered to be of low value (i.e., less than € 5,000). The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. |
Goodwill and intangible assets | Goodwill The Group measures goodwill at the acquisition date as being the excess of: ● ● If a preceding analysis of a purchase price allocation (PPA) results in the cost of acquisition being less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the Consolidated Income Statement (bargain purchase or negative goodwill). Intangible Assets Intangible assets with definite useful lives are recorded at cost and amortized using the straight-line method over the estimated useful lives of the assets. Intangible assets other than 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. Amortization of other intangible assets is recognized in the income statement within the relevant classification of expense by function. Impairment losses are recognized separately in the Group´s income statement. The useful lives are as follows: Trademarks 2 Developed Technologies 6 Patents & licenses 5 to 15 years Customer List 5 to 8 years Internally generated Research and Development (IP R&D) Internally generated development expenses are recognized as an intangible asset if and only if all the following criteria can be demonstrated: ● technical feasibility of completing the project ● the Group´s intention to complete the project ● the Group´s ability to use the project ● the probability that the project will generate future economic benefits ● the availability of adequate technical, financial and other resources to complete the project ● the ability to measure the development expenditure reliably Due to the risks and uncertainties relating to regulatory approval and to the research and development process, the six criteria for capitalization are usually considered not to have been met until the product has obtained marketing approval from the regulatory authorities. Consequently, internally generated development expenses arising before marketing approval has been obtained, mainly the cost of clinical trials, are generally expensed as incurred within research and development expenses. Internally generated Development expenditures (other than IP R&D) Capitalized development expenditures are stated at cost less accumulated amortization and impairment losses. Internally generated development expenses are recognized as an intangible asset if the criteria listed under “Internally generated Research and Development (IP R&D)” are met. They are amortized on a straight-line basis over the estimated useful lives of the intangible assets. Separately acquired Research and Development (IP R&D) Payments for separately acquired research and development are capitalized within other intangible assets provided that they meet the definition of an intangible asset: ● expected to provide future economic benefits for the Evotec, ● a resource that is controlled by Evotec and, ● identifiable (i.e., it is either separable or arises from contractual or legal rights). The Group believes that the first condition for capitalization (the probability that the expected future economic benefits from the asset will flow to the entity) is considered to be satisfied for separately acquired research and development. Consequently, upfront and milestone payments to third parties related to pharmaceutical products for which marketing approval has not yet been obtained are recognized as intangible assets, and amortized on a straight-line basis over their useful lives beginning when marketing approval is obtained. Payments under research and development arrangements relating to access to technology or to databases, and payments made to purchase generics dossiers, are also capitalized, and amortized over the useful life of the intangible asset. Subcontracting arrangements, payments for research and development services, and continuous payments under research and development collaborations which are unrelated to the outcome of that collaboration, are expensed over the service term. Other intangible assets not acquired in a business combination Licenses other than those related to pharmaceutical products and research projects, in particular software licenses, are capitalized at acquisition cost, including any directly attributable cost of preparing the software for its intended use. Software licenses are amortized on a straight-line basis over their useful lives. Internally generated costs incurred to develop or upgrade software are capitalized if the recognition criteria are satisfied, and amortized on a straight-line basis over the useful life of the software from the date on which the software is ready for use. Other intangible assets acquired in a business combination Other intangible assets acquired in a business combination (R&D, technologies and technologies platforms, licenses and patents etc.) that are reliably measurable are identified separately from goodwill, measured at fair value, and capitalized within other intangible assets at the acquisition date and subsequently amortized over their useful lives. Impairment Goodwill Goodwill is not amortized but is tested for impairment annually and whenever impairment indicators are identified. Internal or external sources of information are considered indicators that an asset or a Cash Generating Unit (CGU) or groups of CGUs may be impaired. An impairment loss is recognized in the Consolidated Income Statement whenever and to the extent that the carrying amount of a cash generating unit exceeds the unit’s recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. Intangible Assets Intangible assets that are subject to amortization are reviewed for impairment whenever triggering events or changes in circumstances indicate that the carrying value may not be recoverable. |
Financial instruments | Non-derivative financial assets Non-derivative financial assets comprise cash and cash equivalents, receivables and other financial assets including derivatives. Recognition and initial measurement: Non-derivative financial assets are recognized when the Group becomes a party to the contractual provisions of the instrument. Purchases and sales of non-derivative financial assets in the normal course of business are accounted for at the trade date. Dividend and interest income are recognized when earned. Gains or losses, if any, are recorded in other financial income and other financial expense. Non-derivative financial assets are derecognized when the rights to receive cash flows from the asset have expired or the Group has transferred its rights to receive cash flows from the asset. At initial recognition, the Group measures non-derivative financial assets at their fair value, plus, in the case of a financial asset not measured at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in the Consolidated Income Statement. Classification and subsequent measurement: The Group classifies its non-derivative financial assets in the following measurement categories: ● those that are measured subsequently at fair value; ● those that are measured at amortized cost. In assessing the classification, the Group considers the business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will be recorded in either the Consolidated Income Statement (FYTPL) or in Other Comprehensive Income (FYTOCI). For debt investments, assets are reclassified between FVTOCI, FVTPL and amortized cost only when its business model for managing those assets changes. Offsetting of 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, the Group 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. Cash and cash equivalents Cash and cash equivalents include cash balances, certain money market funds and short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash. Other financial assets Other financial assets include convertible loans, derivatives and deposits. Debt instruments Debt instruments include those subsequently carried at amortized cost, those carried at FVTPL or those carried at FVTOCI. Classification depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. Debt instruments that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortized cost and are subject to impairment. Interest income from these financial assets is included in Finance income using the effective interest rate method. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. When the Group determines that an embedded derivative meets the requirement, it is separated from the host contract and accounted for as a derivative. Debt instruments that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVTOCI and subject to impairment. Movements in the carrying amounts are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses, which are recognized in the Consolidated Income Statement. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to the Consolidated Income Statement. Interest income from these financial assets is included in financial income using the effective interest rate method. Debt instruments that do not meet the criteria for amortized cost or FVTOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognized in the Consolidated Income Statement in the period in which it arises. Other Equity investments where the Group does not possess control or significant influence For those equity investments over which the Group has neither control nor significant influence and which are therefore measured in accordance with IFRS 9, classification will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVTOCI). For those equity investments over which the Group has neither control nor significant influence and which are therefore measured in accordance with IFRS 9, both FVTOCI and FVTPL, the Group follows the following hierarchy determined by the unique nature of the investments. Observable market prices are the primary method when available. When these are not available but there has been an external financing round or a capital transaction with a new investor of the equity investment in which the Group did not participate, this would be taken into account. In the absence of such an event, the Group assesses qualitative factors, such as scientific progress, as well as an analysis of the cash position of the investment. In case of promising scientific development, the acquisition costs are considered to be the best estimate of the fair value. Should the investment be a possible going concern risk with no further positive qualitative factors, the Group uses Net Asset Value as a proxy for the fair value of the investment. The investments in early-stage companies are mainly of a strategic nature and are made for the purpose of promoting new business models and, in particular, the development of products and/or technology platforms in pharmaceutical research. Where the Group has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Consolidated Income Statement following the derecognition of the investment. Dividends (if any) from such investments continue to be recognized in the Consolidated Income Statement when the Group’s right to receive payments is established. Debt and other financial liabilities Debt and other financial liabilities, excluding derivative financial liabilities and provisions, are initially measured at fair value and, in the case of debt and payables, net of directly attributable transaction costs. Debt and other financial liabilities are subsequently measured at amortized cost using the effective interest rate method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. Debt and other financial liabilities are derecognized when the obligation under the liability is discharged, cancelled or has expired. Derivative financial instruments All derivative financial instruments are accounted for at the trade date and classified as current or non-current assets or liabilities based on the maturity date or the early termination date. The Group measures all derivative financial instruments at fair value that is derived from the market prices of the instruments, calculated on the basis of the present value of the estimated future cash flows based on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or derived from option pricing models, as appropriate. Gains or losses arising from changes in fair value of derivative financial instruments are recognized in the Consolidated Income Statement. The Group does not apply hedge accounting in accordance with IFRS 9. Impairment of financial assets The Group recognizes an allowance for expected credit losses (ECLs) for trade receivables, debt investments carried at fair value through other comprehensive income (FVTOCI) and amortized costs. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. For all trade receivables and contract assets, the Group applies the IFRS 9 simplified approach to measuring ECLs. To measure the ECLs on trade receivables and contract assets, the Group takes into account credit-risk concentration, collective debt risk based on average historical losses as well as days past due. The Group also may factor in specific circumstances such as serious adverse economic conditions in a specific country or region, and other forward-looking information. The Group may also apply individual credit losses on identified trade account receivables or contract assets depending on individual circumstances. Other financial income and expense Financial income comprises interest income on funds invested (including financial assets), dividend income, net gains on the disposal of financial assets, net fair value gains on financial assets at FVTPL, net gains on the remeasurement to fair value of any pre-existing interest in an acquiree, and net gains on foreign exchange impacts that are recognized in the Consolidated Income Statement. Other financial income is recognized on an accrual basis in the Consolidated Income Statement, using the effective interest method. Dividend income is recognized in the Consolidated Income Statement on the date that the Group’s right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date. Other financial expenses comprise interest expenses on borrowings, unwinding of the discount on provisions and contingent consideration, losses on disposal of financial assets, net fair value losses on financial assets at FVTPL, impairment losses recognized on financial assets (other than trade receivables), net interest expenses related to defined-benefit plans, interest on lease liabilities and net losses on foreign exchange impacts that are recognized in the Consolidated Income Statement. Evotec’s interest expenses relate primarily to financial liabilities measured at amortized cost. |
Investments accounted for using the equity method | The Group, in the course of its business, may enter into arrangements where it will exercise joint control over entities resulting in classifying these operations as joint ventures or joint operations depending on the rights and obligations arising from the contractual arrangement. Alternatively, it may enter into arrangements where it holds 20 to 50 percent of the voting rights and exercises significant influence resulting in these companies being classified as associate companies. Investments in associates and joint ventures are accounted for using the equity method. The Group’s share of profit of joint ventures is classified within non-operating profit as these operations do not form an integral part of the Group’s financial performance, reflecting its non-core business activities. The Group’s share of profit (loss) of associates is classified below Operating profit. Goodwill arising from an acquisition is included in the carrying amount of the investments in joint ventures and associated companies. Equity accounting is discontinued when the carrying amount of the investment together with any long-term interest in a joint venture or in an associate reaches zero, unless the Group has either incurred or guaranteed additional obligations in respect of the joint venture or associate. Impairment of Joint Ventures and Associates The Group tests investments in joint ventures and associates for which it does not possess control but has significant influence for impairment on a regular basis and when there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the net investment. Objective evidence of impairment includes but is not limited to the net asset value being below carrying amount, absence of scientific progress, significant financial difficulties of the joint venture, associate or information about significant changes with an adverse effect that have taken place in the economic environment in which it operates and indicates that the carrying amount may not be recovered. |
Employment, Post-Employment Benefits and Share Compensation Plans | Short-term employee benefits Short-term employment obligations are measured on an undiscounted basis and are expensed as the related service is provided. The Group recognizes a liability and an expense for bonuses and incentives based on a formula that takes into consideration the profit attributable to the Group´s shareholders after certain adjustments. Defined contributions schemes A defined-contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined-contribution pension plans are recognized as an employee benefit expense in the income statement in the periods during which services are rendered by employees. The Group´s contribution rate is employee-specific and depends on the amount of an employee’s contribution and the relevant legislation. Defined benefits schemes and Jubilee provisions A defined-benefit plan is a post-employment benefit plan other than a defined-contribution plan. Plans for which the Group has no legal or constructive obligation to pay further amounts, but to which it does pay non-fixed contributions, are also treated as a defined-benefit plan. The net pension asset or liability recognized in the consolidated statement of financial position in respect of defined-benefit post-employment plans is the fair value of plan assets less the present value of the projected defined-benefit obligation at the balance sheet date. The defined-benefit obligation is calculated annually by qualified actuaries using the projected unit credit method. Recognized assets are limited to the present value of any reductions in future contribution or any future refunds. The net pension liability (asset) is presented as a long-term provision; no distinction is made for the short-term portion. Pension costs in respect of defined-benefit post-employment plans primarily represent the increase of the actuarial present value of the obligation for post-employment benefits based on employee service during the year and the interest on the net recognized asset or liability in respect of employee service in previous years. Remeasurements of the net defined-benefit asset or liability comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest). The Group recognizes all remeasurements in other comprehensive income and reclassifies them later to the Group´s income statement. The Group recognizes gains and losses on the settlement of a defined-benefit plan when the settlement occurs. The gain or loss on settlement is the difference between the present value of the defined-benefit obligation being settled, as determined on the date of settlement, and the settlement price, including any plan assets transferred and any payments made directly by the Group in connection with the settlement. Past service costs arising from the introduction of a change to the benefit payable under a plan or a significant reduction of the number of employees covered by a plan (curtailment) are recognized in full in the consolidated income statement. The Group´s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods, such as jubilee entitlements. That benefit is discounted to determine its present value. Remeasurements are recognized in the consolidated income statement in the period in which they arise. Other long term employment benefits Other long-term employment benefits include long-service leave or sabbatical leave, medical aid, jubilee or other long-service benefits, long-term disability benefits and, if they are not expected to be settled wholly within twelve months after the year end, profit sharing, variable and deferred compensation. The measurement of these obligations differs from defined benefit plans in that all remeasurements are recognized immediately in the statement of income. Stock Options and Share Performance Awards The Group operates various equity-settled share-based compensation plans for which the Company applies the regulations of IFRS 2. The fair value of the employee services received in exchange for the grant of the options or shares is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the equity instruments granted. The amounts are charged to the income statement over the relevant vesting periods and adjusted to reflect actual and expected levels of vesting. The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. All plans are settled in shares. The grant-date fair value of equity-settled share-based payment awards granted to employees is recognized as personnel expense, with a corresponding increase in equity, over the vesting period of the award. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the consolidated income statement for a period represents the movement in cumulative expense recognized at the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant-date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group´s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant-date fair value. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. When an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. The dilutive effect of outstanding options and shares is reflected as additional share dilution in the computation of diluted earnings per share. |
Stock Options and Share Performance Awards | Stock Options and Share Performance Awards The Group operates various equity-settled share-based compensation plans for which the Company applies the regulations of IFRS 2. The fair value of the employee services received in exchange for the grant of the options or shares is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the equity instruments granted. The amounts are charged to the income statement over the relevant vesting periods and adjusted to reflect actual and expected levels of vesting. The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. All plans are settled in shares. The grant-date fair value of equity-settled share-based payment awards granted to employees is recognized as personnel expense, with a corresponding increase in equity, over the vesting period of the award. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the consolidated income statement for a period represents the movement in cumulative expense recognized at the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant-date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group´s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant-date fair value. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. When an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. The dilutive effect of outstanding options and shares is reflected as additional share dilution in the computation of diluted earnings per share. |
Provisions | Provisions are recognized as a result of past events, if the Group has: ● a present legal or constructive obligation, ● the amount can be estimated reliably, and, ● it is more likely than not that an outflow of resources will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money. A provision for onerous contracts is recognized when the expected benefits to be derived by the Group 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, the Group recognizes any impairment expense on the assets associated with that contract. |
Fair Value of financial assets and liabilities | For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are as follows: ● Level 1 – inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that the company can access at the measurement date. ● Level 2 – all significant inputs (other than quoted prices included within Level 1) are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). ● Level 3 – one or more of the significant inputs are not based on observable market data, such as third-party pricing information without adjustments, for the asset or liability. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period during which the change has occurred. Specific valuation techniques used to value financial instruments include: Level 1 Instruments included in level 1 are comprised primarily of listed equity investments classified as financial assets carried at fair value through profit or loss or carried at fair value through other comprehensive income. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. Level 2 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives or convertible bond instruments) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are based on observable market data, the instrument is included in level 2. The fair value of derivatives is calculated as the present value of the estimated future cash flows based on observable interest yield curves, basis spread and foreign exchange rates. The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or on the basis of discounted cash flow analysis using market rates. Level 3 If one or more of the significant inputs are not based on observable market data, such as third-party pricing information without adjustments, the instrument is included in level 3. The fair value of contingent consideration is dependent on the terms of the respective acquisition agreement that may require the Group to pay additional consideration to former shareholders if specified future events occur or conditions are met. The fair value measurement is based on management’s estimates and assumptions and hence classified as Level 3 in the fair value hierarchy. |
Earnings per share | Basic EPS is calculated by dividing the Net income (loss) attributable to shareholders by the weighted average number of common shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders and the weighted average number of common shares outstanding during the period, adjusted for own shares held, for the effects of all dilutive potential common shares, which comprises forward purchase contracts, restricted shares, performance shares and share options granted to employees. |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment information | |
Summary of segment information | The segment information for the financial year 2023 is as follows: EVT EVT Elimination between Evotec In k€ Execute Innovate the segments Group Revenues 514,542 266,884 — 781,426 Intersegment revenues 224,196 — (224,196) — Cost of revenue (631,373) (184,700) 209,698 (606,375) Gross profit 107,365 82,184 (14,497) 175,051 Operating income and (expenses) Research and development cost (4,391) (78,636) 14,497 (68,529) Selling, general and administrative cost (130,810) (38,800) — (169,610) Impairment of intangible assets (5,011) — — (5,011) Other operating income 31,337 33,456 — 64,793 Other operating expenses (41,508) (2,694) — (44,202) Total operating income and (expenses) (150,383) (86,673) 14,497 (222,558) Operating income (loss) (43,018) (4,489) (47,507) The segment information for the financial year 2022 is as follows: EVT EVT Elimination between Evotec- In k€ Execute Innovate the segments Group Revenues 546,718 204,730 — 751,448 Intersegment revenues 188,917 — (188,917) — Cost of revenue (605,751) (145,566) 173,934 (577,383) Gross profit 129,884 59,164 (14,983) 174,065 Operating income and (expenses) Research and development cost (5,305) (86,320) 14,983 (76,642) Selling, general and administrative cost (125,293) (30,897) — (156,190) Impairment of intangible assets — — — — Other operating income 35,197 46,385 — 81,582 Other operating expenses (1,960) (5) — (1,965) Total operating income and (expenses) (97,361) (70,837) 14,983 (153,215) Operating income (loss) 32,523 (11,673) — 20,850 The segment information for the financial year 2021 is as follows: EVT EVT Elimination between Evotec- In k€ Execute Innovate the segments Group Revenues 471,052 146,982 — 618,034 Intersegment revenues 139,116 (139,116) — Cost of revenue (482,588) (110,379) 126,476 (466,491) Gross profit 127,580 36,603 (12,640) 151,543 Operating income and (expenses) Research and development cost (2,900) (81,940) 12,640 (72,200) Selling, general and administrative cost (83,936) (21,509) — (105,445) Impairment of intangible assets — (683) — (683) Other operating income 26,684 46,788 — 73,472 Other operating expenses (4,319) (1,372) — (5,691) Total operating income and (expenses) (64,471) (58,716) 12,640 (110,547) Operating income (loss) 63,109 (22,113) — 40,996 |
Summary of geographical breakdown | The geographical breakdown of revenues from customers for the business year 2023 is stated below: in k€ EVT Execute EVT Innovate Evotec Group Revenues by region USA 241,555 217,869 459,424 Germany 15,385 18,749 34,134 France 25,666 6,339 32,005 United Kingdom 81,539 4,829 86,368 Switzerland 64,876 48 64,924 Rest of the world 76,105 19,049 95,154 Total revenue from contracts with customers 505,125 266,884 772,009 Revenue from contributions 9,417 — 9,417 Total Revenue 514,542 266,884 781,426 The geographical breakdown of revenues from customers for the business year 2022 is stated below: in k€ EVT Execute EVT Innovate Evotec Group Revenues by region USA 273,204 134,550 407,754 Germany 32,765 26,130 58,895 France 22,546 9,728 32,274 United Kingdom 105,557 9,699 115,256 Switzerland 22 — 22 Rest of the world 102,073 24,623 126,696 Total revenue from contracts with customers 536,167 204,730 740,897 Revenue from contributions 10,551 — 10,551 Total Revenue 546,718 204,730 751,448 The geographical breakdown of revenues from customers for the business year 2021 is stated below: in k€ EVT Execute EVT Innovate Evotec Group Revenues by region USA 227,444 101,593 329,037 Germany 24,279 22,573 46,852 France 16,876 13,715 30,591 United Kingdom 98,735 5,905 104,640 Switzerland 24,398 80 24,478 Rest of the world 70,755 3,116 73,871 Total revenue from contracts with customers 462,487 146,982 609,469 Revenue from contributions 8,565 — 8,565 Total Revenue 471,052 146,982 618,034 Non-current assets categorized by the location of the companies as of December 31, can be analyzed as follows: In k€ 2023 2022 USA 221,195 231,439 UK 221,177 211,115 Italy 259,649 227,113 France 337,960 205,749 Germany 153,338 160,970 Austria 2,634 3,914 Canada — 1,906 1,195,954 1,042,206 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue. | |
Schedule of revenue recognized | The following schedule entails detailed information about the Group’s revenues in the financial year 2023: in k€ EVT Execute EVT Innovate Evotec Group Revenues from contracts with customers Fee for service and FTE-based research payments 472,205 254,724 726,929 Recharges* 30,496 7,065 37,561 Compound access fees 1,283 776 2,059 Milestone fees 1,026 3,759 4,785 Licenses 116 559 675 Total revenue from contracts with customers 505,125 266,884 772,009 Timing of revenue recognition At a point in time 77,763 10,824 88,587 Over a period of time 427,361 256,060 683,421 Total revenue from contracts with customers 505,125 266,884 772,009 Revenue from contributions 9,417 — 9,417 Total Revenue 514,542 266,884 781,426 *) Comprises of material re-charges to the customer The following schedule entails detailed information about Evotec’s revenues in the financial year 2022: in k€ EVT Execute EVT Innovate Evotec Group Revenues from contracts with customers Fee for service and FTE-based research payments 488,168 185,268 673,436 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 revenue from contracts with customers 536,167 204,730 740,897 Timing of revenue recognition At a point in time 44,722 17,780 62,502 Over a period of time 491,445 186,950 678,395 Total revenue from contracts with customers 536,167 204,730 740,897 Revenue from contributions 10,551 — 10,551 Total Revenue 546,718 204,730 751,448 *) Comprises of material re-charges to the customer The following schedule shows the revenue in the financial year 2021: in k€ EVT Execute EVT Innovate Evotec Group Revenues from contracts with customers Service fees and FTE-based research payments 422,619 99,570 522,189 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 revenue from contracts with customers 462,487 146,982 609,469 Timing of revenue recognition At a certain time 38,336 47,124 85,460 Over a period 424,151 99,858 524,009 Total revenue from contracts with customers 462,487 146,982 609,469 Revenue from contributions 8,565 — 8,565 Total Revenue 471,052 146,982 618,034 *) Comprises of material re-charges to the customer |
Schedule of transaction price allocated to the remaining performance obligation | in k€ December 31, 2023 December 31, 2022 December 31, 2021 In the course of the year 571,825 405,710 225,061 After one year 335,427 158,068 67,619 |
Schedule of contract assets and contract liabilities | In k€ 2023 2022 Balance as of January 1 30,516 18,614 Additions 180,305 116,215 Reclassifications to Trade Receivables due to Invoicing (185,754) (101,908) Translation differences and other (67) (2,405) Balance as of December 31 25,000 30,516 Current Non-current In k€ 2023 2022 2023 2022 Balance as of January 1 122,922 112,061 206,136 33,476 Additions 203,825 502,094 — 184,660 Reduction due to Recognition of Revenue (279,691) (503,747) — — Reclassification from non-current to current 50,849 12,000 (50,849) (12,000) Translation differences and other (318) 514 — — Balance as of December 31 97,587 122,922 155,287 206,136 |
Income and deferred tax (Tables
Income and deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income and deferred tax | |
Summary of income tax benefit and expense | 2023 2022 2021 k€ k€ k€ Current taxes - Tax expense for the year (5,251) (14,132) (12,309) - Income (expense) relating to other periods (2,666) 156 (4,095) Total current income taxes (7,917) (13,976) (16,404) Deferred taxes - Tax loss carry forwards 1,606 (10,862) (5,140) - Temporary differences 2,991 3,140 74 Total deferred income taxes 4,597 (7,722) (5,066) Tax expense recognized in the income statement (3,320) (21,698) (21,470) |
Schedule of effective income tax rate | 2023 2022 2021 k€ k€ k€ Income (loss) before taxes (80,593) (153,956) 236,980 Expected German income tax rate 32.28 % 32.28 % 32.28 % Expected income tax benefit (expense) 26,015 49,697 (76,497) Non-deductible expenses (8,274) (59,543) (511) R&D tax credits 8,558 13,454 6,742 Tax free income 7,968 3,184 71,917 Permanent differences from GILTI (156) (3,724) (444) Tax effects from investments accounted for using the equity method (8,373) (5,152) (9,300) Deviation tax rates to expected tax rate (1,343) 448 1,815 Change in tax rates (251) 636 521 Change in recognition of deferred tax assets (25,568) (19,167) (10,247) Taxes related to prior years Current Taxes (2,666) 156 (4,095) Deferred Taxes 556 (1,348) (570) Other 213 (341) (801) Effective income tax income (expense) (3,320) (21,698) (21,470) Effective income tax rate (4.12) % (14.09) % 9.06 % |
Schedule of deferred income tax assets and liabilities | Jan 1, 2023 Recognized in Dec 31, 2023 Recognized other Foreign Deferred Deferred in comprehensive currency Business tax tax Net balance profit or loss income translation Combination Net assets liabilities k€ k€ k€ k€ k€ k€ k€ k€ Property, plant and equipment (9,457) (2,096) — 20 — (11,533) 1,807 (13,340) Intangible assets (19,646) 6,285 — 61 — (13,300) 4,004 (17,304) Right of use assets (28,839) (770) — — — (29,609) — (29,609) Financial assets (1,446) (965) (419) — — (2,830) 783 (3,613) Provisions and deferred income 9,250 (1,142) 13 — — 8,121 8,347 (226) Lease obligations 25,278 (577) — — — 24,701 24,701 — Other 4,244 2,068 — — — 6,312 6,942 (630) Tax credits 273 188 — — — 461 461 — Loss carryforward 12,146 1,606 — 118 — 13,870 13,870 — Total (8,197) 4,597 (406) 199 — (3,807) 60,915 (64,722) Offsetting of tax — — — — — — (46,585) 46,585 Net (8,197) 4,597 (406) 199 — (3,807) 14,330 (18,137) Jan 1, 2022 Recognized in Dec 31, 2022 Recognized other Foreign Deferred Deferred in comprehensive currency Business tax tax Net balance profit or loss income translation Combination Net assets liabilities k€ 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) Offsetting of tax — — — — — — (48,888) 48,888 Net (329) (7,722) (990) 518 326 (8,197) 10,327 (18,524) * Was recognized directly in equity and not through other comprehensive income. |
Summary of tax loss, interest carryforwards and tax credits | 2023 2022 2021 k€ k€ k€ Tax loss carryforwards (not expiring) 572,204 474,989 307,682 Time-limited tax losses - expiring until 2028 (2022: 2027) 24,768 13,297 21,409 - expiring 2029 to 2033 (2022: 2028 - 2032) 32,179 45,696 38,207 - expiring after 2033 (2022: 2032) 38,243 57,662 73,811 Interest carry forwards — — — Tax credits 1,181 1,313 1,286 Total 668,575 592,958 442,395 |
Current assets and liabilities
Current assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Current assets and liabilities | |
Schedule of aging of trade accounts receivable | Dec 31 Dec 31 2023 2022 k€ k€ Not past due 57,742 139,226 Risk provision not past due (367) — Past due 1-30 days 25,837 24,704 Risk provision 1-30 days (170) (67) Past due 31-120 days 12,688 6,559 Risk provision 31-120 days (280) (469) More than 120 days 8,582 6,109 Risk provision more than 120 days (5,636) (4,264) Total trade accounts receivables 98,396 171,798 1 |
Schedule of inventories | Dec 31 Dec 31 2023 2022 k€ k€ Raw materials 25,901 27,917 Work-in-progress 4,989 1,908 Total inventories 30,890 29,825 |
Schedule of prepaid expenses and other current assets | In k€ December 31, 2023 December 31, 2022 Prepaid expenses 18,395 16,948 Other current assets 32,950 40,178 Total prepaid expenses and other current assets 51,345 57,126 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment. | |
Schedule of useful lives of property, plant and equipment | Buildings 15 to 33 years Technical equipment and machinery 3 to 15 years Office furniture and equipment 3 to 10 years |
Schedule of development of property, plant and equipment | Buildings and leasehold Plant, machinery Furniture Assets under improvements and equipment and fixtures construction Total in k€ Owned Right-of-Use Owned Right-of-Use Owned Right-of-Use Owned Owned Right-of-Use Cost 240,328 222,734 285,248 4,688 50,114 1,317 116,381 692,071 228,739 Accumulated depreciation and impairment 42,680 55,779 136,405 3,902 31,110 733 — 210,195 60,414 Balance as of January 1, 2023 197,648 166,955 148,843 786 19,004 584 116,381 481,876 168,325 Recognition of right-of-use asset — 32,663 — 533 — 706 — — 33,902 Acquisition through business combination — — — — — — — — — Capital expenditure/Additions 17,905 — 42,863 — 12,087 — 145,733 218,589 — Disposals 521 3,963 99 100 92 11 — 712 4,074 Depreciation 17,509 19,998 36,478 684 10,972 393 — 64,959 21,075 Impairment — — — — — — — — — Reclassification 20,018 (1,014) 14,384 1,029 408 100 (34,925) (115) 115 Translation differences and other (2,570) (180) (948) — (69) 2 (1,544) (5,130) (178) Total 214,971 174,463 168,565 1,565 20,365 989 225,645 629,546 177,017 Cost 274,335 249,853 339,277 4,251 61,763 1,749 225,645 901,020 255,853 Accumulated depreciation and impairment 59,365 75,390 170,713 2,686 41,397 760 — 271,474 78,836 Balance as of December 31, 2023 214,971 174,463 168,565 1,565 20,365 989 225,645 629,546 177,017 Buildings and leasehold Plant, machinery and Furniture Assets under improvements equipment and fixtures construction Total in k€ Owned Right-of-Use Owned Right-of-Use Owned Right-of-Use Owned Owned Right-of-Use Cost 200,865 177,602 219,534 8,077 38,661 997 40,350 499,410 186,676 Accumulated depreciation and impairment 27,657 35,722 108,517 5,384 23,677 532 — 159,851 41,638 Balance as of January 1, 2022 173,208 141,880 111,017 2,693 14,984 465 40,350 339,559 145,038 Recognition of right-of-use asset — 38,393 — 306 — — — — 38,699 Acquisition through business combination 2,594 3,940 3,309 — (231) 338 94 5,766 4,278 Capital expenditure/Additions 23,280 — 59,305 — 11,663 — 95,618 189,866 — Disposals 3,529 — 1,538 — 12 — 862 5,941 — Depreciation 15,271 17,855 29,915 575 8,832 229 — 54,018 18,659 Impairment — — — — — — — — — Reclassification 13,009 1,524 5,345 (1,512) 1,326 10 (19,702) (22) 22 Translation differences and other 4,357 (927) 1,320 (126) 106 — 883 6,666 (1,053) Total 197,648 166,955 148,843 786 19,004 584 116,381 481,876 168,325 Cost 240,328 222,734 285,248 4,688 50,114 1,317 116,381 692,071 228,739 Accumulated depreciation and impairment 42,680 55,779 136,405 3,902 31,110 733 — 210,195 60,414 Balance as of December 31, 2022 197,648 166,955 148,843 786 19,004 584 116,381 481,876 168,325 |
Intangible assets and Goodwill
Intangible assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets and Goodwill | |
Schedule of useful lives of intangible assets | Trademarks 2 Developed Technologies 6 Patents & licenses 5 to 15 years Customer List 5 to 8 years |
Schedule of development of goodwill | 2023 Translation At January 1 Acquisition Disposals Impairment and other At 31 December k€ k€ k€ k€ k€ k€ OAI/Evotec International Execute 82,223 — — — 1,223 83,446 OAI/Evotec International Innovate 9,164 41 — — 55 9,219 Evotec (US) Execute 4,457 — — — (155) 4,302 Aptuit Execute 146,224 — — — 831 147,055 Just Execute 32,751 — — — (1,138) 31,613 Total 274,819 41 — — 816 275,635 The goodwill addition in financial year 2023 to the OAI/Evotec International Innovate cash-generating unit was a result of the acquisition of the remaining 50% of NephThera GmbH. 2022 Translation At January 1 Acquisition Disposals Impairment and other At 31 December k€ k€ k€ k€ k€ k€ OAI/Evotec International Execute 84,480 — — — (2,257) 82,223 OAI/Evotec International Innovate 9,204 — — — (40) 9,164 Evotec (US) Execute 4,197 — — — 260 4,457 Aptuit Execute 128,845 19,622 — — (2,243) 146,224 Just Execute 30,843 — — — 1,908 32,751 Total 257,569 19,622 — — (2,372) 274,819 |
Schedule of assumptions for cash-generating units and sensitivity | OAI / Evotec OAI / Evotec Evotec International International (US) Aptuit Just Execute Innovate Execute Execute Execute 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Denominated in GBP /EUR GBP /EUR USD GBP /EUR USD Pre-tax discount rate 11.43 % 10.15 % 13.41 % 11.93 % 10.44 % 9.32 % 14.20 % 13.12 % 12.86 % 11.71 % Sustainable growth rate 2 % 2 % 2 % 2 % 2 % 2 % 2 % 2 % 2 % 2 % 2023 Recoverable Decrease in Reduction amount exceeding Applied post-tax Increase in post-tax Applied sustainable sustainable in cash carrying amount discount rate discount rate growth rate growth rate flows in €m in %-points in %-points in %-points in %-points in %-points Just Execute 5.5 11.1 0.1 2.0 0.3 1.3 |
Schedule of development of intangible assets | 2023 Patents and Developed Customer In k€ Licenses Technologies relationships Trademarks Total Acquisition and manufacturing cost Amount beginning of the year 12,883 100,735 69,089 6,539 189,246 Foreign currency translation (46) (731) (327) (1,105) Additions — 3,659 — — 3,659 Business combination — — — — — Reclassification (1,672) 1,672 — — — Amount end of the year 11,166 105,334 68,762 6,539 191,800 Depreciation, amortization and impairments Amount beginning of the year 11,349 94,160 54,405 5,513 165,427 Foreign currency translation 10 (641) (404) — (1,035) Additions 84 822 5,818 222 6,946 Impairment — 5,011 — — 5,011 Reclass (1,138) 1,138 — — — Amount end of the year 10,304 100,490 59,819 5,735 176,348 Net book value Amount beginning of the year 1,534 6,575 14,684 1,026 23,819 Amount end of the year 861 4,844 8,943 804 15,453 2022 Patents and Developed Customer In k€ Licenses Technologies relationships Trademarks Total Acquisition and manufacturing cost Amount at the beginning of the year 11,211 99,784 69,089 6,539 186,623 Foreign currency Translation — 34 — — 34 Additions — 917 — — 917 Business Combinations 1,672 — — — 1,672 Reclassification Amount end of the year 12,883 100,735 69,089 6,539 189,246 Depreciation, amortization and impairments Amount at the 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 Impairment Reclass (56) 56 — — — 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 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments | |
Schedule of cash and cash equivalents | In k€ 2023 2022 Cash at banks and on hand 237,562 231,614 Short term deposits 35,000 — Money market funds 238,346 183,540 Total 510,909 415,155 |
Schedule of other long term investments | The development of investments measured at fair value in accordance with IFRS 9 is shown below: In k€ 2023 2022 Balance at January 1 131,042 268,793 Additions 10,199 46,137 Additions due to discontinued use of equity method 1,906 — Reduction due to change to accounting according to the equity method (2,369) — Fair value adjustments recognized in profit or loss (3,678) (172,159) Adjustments to fair value, recognized in OCI (1,506) (11,729) Net book value December 31 135,593 131,042 |
Summary of loan liabilities | December 31, 2023 2023 2022 2022 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 0.8 % to 2 % 2024-2029 202,727 243,583 137,278 150,171 Germany EUR variable interest rate of 4.8% to 5% 2024-2026 64,088 64,500 61,003 64,500 Germany EUR 1.60% 2024-2027 67,631 75,000 71,846 75,000 Germany EUR 1.20% 2029 5,010 5,647 6,358 6,722 Germany EUR 1.40% 2031 15,814 18,458 19,099 20,367 Italy EUR fixed interest rate of 1.3 % to 4.5 % 2026-2027 340 367 729 757 Italy EUR variable interest rate 4.5% 2027 421 434 489 500 France EUR fixed interest rate of 0.00% to 0.55 % 2025 23,216 27,876 10,038 10,742 379,247 435,865 306,840 328,759 |
Schedule of carrying amounts of lease liabilities and the movements | In k€ 2023 2022 Amount beginning of the year 176,823 150,437 Foreign currency Translation (958) (923) Additions 33,975 38,784 Business combination — 3,962 Disposals (4,086) (232) Accretion of interest 5,831 3,841 Payments (22,446) (19,046) Amount end of the year 189,140 176,823 |
Schedule of lease liabilities | In k€ 2023 2022 Current portion of lease obligations 19,115 14,825 Long-term lease obligations 170,025 161,998 189,140 176,823 |
Schedule of amounts are recognised in profit and loss | in k€ 2023 2022 2021 Depreciation expense of right-of-use assets 21,075 18,659 15,829 Interest expense on lease liability 5,831 3,841 3,728 Expense relating to short-term leases 236 476 839 Expense for leases on an asset of low value 62 50 56 Total amount recognized in profit or loss 27,205 23,026 20,452 |
Schedule of reconciliation of cash flows from financing activities to the changes in financial liabilities | The following tables show the reconciliation of cash flow from financing activities to changes in financial liabilities in 2023 and 2022. Loans Lease Obligations Bonds k€ k€ k€ Balance as of Jan 1, 2023 329,851 176,823 3 Proceeds from issuance of loans 219,923 — — Repayments (112,880) (22,446) — Interest paid (12,853) — — Cashflow from financing activities 94,189 (22,446) — Non-cash transactions: Disposal of finance lease obligation — (4,086) — Foreign currency translation — (958) — Interest expense 11,739 — — Change in accrued interest and other 1,279 5,831 — Issue of finance lease obligation — 33,975 — Balance as of Dec 31, 2023 437,058 189,140 3 Loans Lease Obligations Bonds k€ k€ k€ Balance as of Jan 1, 2022 362,480 150,438 3 Proceeds from issuance of loans — — — Repayments (34,067) (19,046) — Interest paid (5,731) — — Cashflow from financing activities (39,798) (19,046) — Non-cash transactions: Disposal of finance lease obligation — (232) — Foreign currency translation — (1,120) — Interest expense 9,083 — — Change in accrued interest and other (1,914) 4,068 — Issue of finance lease obligation — 42,716 — Balance as of Dec 31, 2022 329,851 176,823 3 |
Investments accounted for usi_2
Investments accounted for using the equity method (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 investments in associates during year 2023: Centauri Dark Blue Topas Tucana Autobahn Therapeutics Curexsys Therapeutics Therapeutics Bioscienes Insignificant In k€ Labs LLC GmbH GmbH Ltd. GmbH Inc. investments Total Balance at January 1, 2023 1,371 — 3,967 4,022 405 2,325 3,954 16,043 Investment 2,360 3,455 — — 2,023 — — 7,838 Share of profit in associate (3,730) (309) (968) (4,022) (2,428) (775) (650) (12,881) Impairment — (3,336) (2,999) — — (579) (960) (7,875) Dividend earned — — — — — — (424) (424) Divestment — — — — — (970) — (970) Reclassification due to change of control — 2,369 — — — — (1,029) 1,341 Balance at December 31, 2023 — 2,179 — — — — 892 3,071 The following table provides an overview of the development of the investments in 2022: Breakpoint Dark Blue Quantro Topas Autobahn Therapeutics Curexsys Therapeutics Therapeutics Therapeutics Insignificant In k€ Labs LLC GmbH GmbH Ltd. GmbH GmbH investments Total Balance at January 1, 2022 — 2,774 4,212 405 1,307 1,497 2,873 13,068 Investment 3,634 — 2,564 7,167 1,250 1,821 2,505 18,940 Share of profit in associate (2,263) (2,774) (2,809) (3,550) (510) (2,913) (1,147) (15,965) Impairment — — — — — — — — Dividend earned — — — — — — — — Divestment — — — — — — — — Reclassification due to change of control — — — — — — — — Balance at December 31, 2022 1,371 — 3,967 4,022 2,047 405 4,231 16,043 |
Schedule of financial information of significant investments | Further financial information on the significant investments accounted for using the equity method is presented below: 2023 Centauri Dark Blue Quantro Autobahn Therapeutics Curexsys Therapeutics Therapeutics In k€ Labs LLC GmbH GmbH Ltd. GmbH Current assets 1,272 9,451 1,071 4,321 613 Non-current assets 727 — 421 248 5,072 Current liabilities 2,257 — 148 1,087 2,902 Non-current liabilities — — — 9,098 483 Revenues from Jan 1 to Dec 31 — 597 — — 2,353 Net income Jan 1 to Dec 31 (10,667) (3,448) (2,176) (9,210) (890) Share of profit in associate (3,730) (309) (968) (4,022) (194) 2022 Breakpoint Dark Blue Quantro Topas Autobahn Therapeutics Curexsys Therapeutics Therapeutics Therapeutics In k€ Labs LLC GmbH GmbH Ltd. GmbH GmbH Current assets 4,029 7,204 3,409 14,244 4,392 6,795 Non-current assets 6 2 484 32 445 — Current liabilities 672 1,068 302 1,065 1,666 843 Non-current liabilities — 143 85 8,208 — — Revenues from Jan 1 to Dec 31 — — 15 — 1,321 — Net income Jan 1 to Dec 31 (6,144) (11,789) (6,940) 1,025 (797) (9,340) Share of profit in associate (2,263) (2,774) (2,809) (3,550) (510) (2,913) |
Employment, Post-Employment B_2
Employment, Post-Employment Benefits and Share Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employment, Post-Employment Benefits and Share Compensation Plans | |
Summary of movement in employee benefit obligations | 2023 2022 Present Present value of value of In k€ obligation obligation As of January 1 (14,499) (15,310) Benefit payments from the employer 617 749 Current service cost (1,266) (1,361) Past service costs 830 — Operating costs, net (436) (1,361) Interest expense (income) (428) (116) Amount recognized in the Income Statement (864) (1,478) Remeasurements: (Gain)/loss from change in demographic assumptions (12) (11) (Gain)/loss from change in financial assumptions (105) 2,033 (Gain)/loss from experience (8) (483) Amounts recognized in Other Comprehensive Income (125) 1,539 As of December 31 (14,872) (14,499) |
Summary of assumptions used for calculation of employee benefit pension plan obligation | Discount Rate Salary Increase % 2023 2022 2023 2022 France 3.25 % 3.35 % 3.00 % 3.00 % |
Summary of sensitivity analysis for actuarial assumptions | 2023 2022 Increase Decrease Increase Decrease + 0.5 / -0.5% k€ k€ k€ k€ Discount rate 648 (702) 598 (645) Salary increase (701) 652 — — |
Summary of the status of the Share Performance Plans | A summary of the status of the Share Performance Plans as of December 31, 2023 and 2022 and the changes during the year then ended is presented as follows: December 31 2023 2023 2022 2022 2021 2021 Share Weighted Share Weighted Share Weighted Performance average Performance average Performance average in k€ (Awards SPAs) exercise price (Awards SPAs) exercise price (Awards SPAs) exercise price in thousands in € per share in thousands in € per share in thousands in € per share Granted SPAs at the beginning of the year 1,505 1.00 1,325 1.00 1,570 1.00 SPAs granted 1,489 1.00 469 1.00 609 1.00 Exercised SPAs (233) 1.00 (209) 1.00 (701) 1.00 Expired SPAs — 1.00 (80) 1.00 (152) 1.00 SPAs granted at the end of the year 2,761 1.00 1,505 1.00 1,325 1.00 Thereof exercisable — 1.00 — 1.00 — 1.00 |
Summary of inputs into the Monte-Carlo-Simulation model | RSP 2020 SPP 2022 RSP 2020 RSP 2020 granted granted granted granted October March October May 2023 2023 2022 2022 Risk-free interest rate in % 2.66 2.84 2.03 0.57 Volatility of the Evotec SE share in % 45.00 50.00 51.00 45.00 Volatility of the TecDAX index in %. — 24.00 — — Fluctuation in % 5.00 5.00 5.00 0.0 - 5.0 Exercise price in € 1.00 1.00 1.00 1.00 Share price on the day of issue in € 16.79 16.67 19.47 25.26 TecDAX index price on the day of issue in points — 3,202.25 — — Fair value in accordance with IFRS 2 on the date of issue per SPA of the Executive Board in € — 12.36 — 22.87 Fair value in accordance with IFRS 2 on the date of issue per SPA of the executives in € 15.91 17.07 18.57 24.29 SPP 2017 RSP 2020 RSP 2020 SPP 2017 granted granted granted granted January October May February 2022 2021 2021 2021 Risk-free interest rate in % (0.46) (0.43) (0.57) (0.78) Volatility of the Evotec SE share in % 37.00 35.00 40.00 42.00 Volatility of the TecDAX index in %. 17.00 — — 29.00 Fluctuation in % 0.0 - 5.0 5.00 0.0 - 5.0 0.0 - 5.0 Exercise price in € 1.00 1.00 1.00 1.00 Share price on the day of issue in € 34.90 44.98 35.49 32.25 TecDAX index price on the day of issue in points 3,411.87 — — 3,375.67 Fair value in accordance with IFRS 2 on the date of issue per SPA of the Executive Board in € 31.30 — 33.50 31.34 Fair value in accordance with IFRS 2 on the date of issue per SPA of the executives in € 33.66 43.96 34.47 36.65 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Provisions. | |
Summary of provisions | The current provisions consist of the following: December 31, December 31, in k€ 2023 2022 Other personnel expenses 41,490 47,490 Pensions 2,184 1,730 Other provision 1,491 5,190 Total current provisions 45,165 54,410 The non-current provisions consist of the following: December 31, December 31, in k€ 2023 2022 Pensions 11,985 12,531 Other personnel expenses 2,164 1,209 Other provisions 1,913 2,687 Total non-current provisions 16,063 16,427 The following table summarizes the development of total provisions recorded during 2023: Foreign Jan 1, Business currency Dec 31, 2023 combination Consumption Release exchange Additions 2023 k€ k€ k€ k€ k€ k€ k€ Other personnel expenses 48,699 — 37,851 10,858 91 43,573 43,654 Pensions 14,261 — 735 579 8 1,215 14,170 Other provisions 7,877 — 1,011 4,588 (179) 1,303 3,404 Total 70,837 — 39,596 16,025 (80) 46,091 61,228 The following table summarizes the development of total provisions recorded during 2022: Foreign Jan 1, Business currency Dec 31, 2022 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 |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of contractual maturities of financial liabilities | December 31, 2023 Carrying Contractual Due in Due in Due in more amount Cashflow 1 year 2 - 5 years than 5 years k€ k€ k€ k€ k€ Non-derivative financial liabilities Loans (437,058) (448,999) (133,666) (159,790) (155,542) Lease obligations (189,140) (204,291) (23,476) (91,682) (89,132) Contingent consideration (311) (334) (334) — — Trade accounts payable (134,319) (134,319) (134,319) — — Other financial liabilities (23,960) (23,960) (22,572) (1,387) — Total non-derivative financial liabilities (784,787) (811,902) (314,368) (252,860) (244,674) Derivative financial liabilities Interest rate swaps/Foreign currency forwards (193) (193) (60) (133) — Total derivative financial liabilities (193) (193) (60) (133) — December 31, 2022 Carrying Contractual Due in Due in Due in more amount Cashflow 1 year 2 - 5 years than 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 (17,871) (17,871) (16,894) (977) — Total non-derivative financial liabilities (622,128) (647,936) (140,935) (352,168) (154,832) Derivative financial liabilities Interest rate swaps/Foreign currency forwards (7,358) (7,358) (6,965) (393) — Total derivative financial liabilities (7,358) (7,358) (6,965) (393) — |
Schedule of exchange rates | Annual average exchange rate Closing rate Dec 31 2023 2022 Dec. 31 Jan 1 - Dec 31 Jan 1 - Dec 31 2023 2022 € € € € USD 0.92484 0.9496 0.9050 0.9376 GBP 1.149707 1.1727 1.1507 1.1275 |
Schedule of maximum exposure to credit risk for trade receivables | December 31, 2023 December 31, 2022 k€ k€ USA 38,709 92,034 France 7,107 24,429 UK 15,600 20,451 Germany 8,699 7,767 Rest of Europe 12,990 13,622 Rest of the world 13,129 10,350 96,233 168,653 |
Schedule of total assets, equity, equity ratio and net cash | December 31, 2023 December 31, 2022 k€ k€ Balance sheet total 2,252,468 2,257,247 Equity attributable to Shareholders of Evotec SE 1,119,908 1,187,184 Equity ratio in (%) 49.7 % 52.6 % Net cash (115,289) (91,518) |
Currency risks | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of sensitivity analysis | 2023 USD GBP EUR k€ +10% (10)% +10% (10)% +10% (10)% Share 16,699 (16,699) 5,278 (5,278) 21,977 (21,977) Result 16,699 (16,699) 5,278 (5,278) 21,977 (21,977) 2022 USD GBP EUR k€ +10% (10)% +10% (10)% +10% (10)% Share 31,007 (31,007) 3,967 (3,967) 34,974 (34,974) Result 31,007 (31,007) 3,967 (3,967) 34,974 (34,974) 2021 USD GBP EUR k€ +10% (10)% +10% (10)% +10% (10)% Share 42,053 (42,053) 6,643 (6,643) 48,699 (48,699) Result 42,053 (42,053) 6,643 (6,643) 48,699 (48,699) |
Interest rate risks | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of sensitivity analysis | The fair values of loans and securities and other investments with variable market interest rates would vary by the following amounts as of December 31, 2023, 2022 and 2021: December 31, 2023 December 31, 2022 December 31, 2021 k€ k€ k€ Flexible interest rate +1%-Point 3,794 3,014 2,570 Flexible interest rate (1)%-Point (2,495) (1,714) (827) |
Fair Value of financial asset_2
Fair Value of financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value of financial assets and liabilities | |
Summary of fair values of financial assets and liabilities | December 31, 2023 Carrying in k€ amount Fair value Level 1 Level 2 Level 3 Financial assets Equity instruments 128,109 128,109 81,417 9,543 37,149 Other financial assets 3,179 3,179 — — 3,179 Financial assets carried at FVTPL 131,288 131,288 81,417 9,543 40,328 Equity instruments 7,484 7,484 7,484 — — Short - term investments 1 321,550 321,550 321,550 — — Financial assets carried at FVTOCI 329,034 329,034 329,034 — — Derivative financial instruments 6,137 6,137 6,137 Financial assets carried at fair value 466,459 466,459 410,451 15,680 40,328 Financial liabilities Contingent consideration (311) (311) — — (311) Financial Liabilities carried at FVTPL (311) (311) — — (311) Derivative financial instruments (193) (193) (193) — — Financial liabilities carried at fair value (504) (504) (193) — (311) Trade account payables (134,319) (134,319) — — — Loans and borrowings (437,058) (380,204) Other liabilities (190,527) (190,527) — — — Carried at (amortized) costs (761,904) (705,050) — — — Total financial liabilities (762,408) (705,554) (193) — (311) ¹ Short-term investments include investments which are measured at FVTOCI in the amount of € 83,203 k as well as money market funds that are included in cash and cash equivalents on the balance sheet in the amount of € 238,346 k and are measured at FVTOCI. December 31, 2022 Carrying in k€ amount Fair value Level 1 Level 2 Level 3 Financial Asset Equity instruments 122,477 122,477 70,133 — 52,344 Other financial assets 1,531 1,531 — — 1,531 Financial assets carried at FVTPL 124,008 124,008 70,133 — 53,875 Equity instruments 8,565 8,565 8,565 — — Short-term investments¹ 288,874 288,874 288,874 — — Financial assets carried at FVTOCI 297,439 297,439 297,439 — — Derivative financial instruments 8,215 8,215 — 8,215 Total financial assets carried at fair value 429,662 429,662 367,572 8,215 53,875 Financial liabilities Contingent consideration (306) (306) — — (306) Financial Liabilities carried at FVTPL (306) (306) — — (306) Derivative financial instruments (7,358) (7,358) — (7,358) — Financial liabilities carried at fair value (7,358) (7,358) — (7,358) — Trade account payables (97,278) (97,278) — — — Loans and borrowings (329,851) (308,130) — — — Other liabilities (177,800) (177,800) — — — Carried at (amortized) costs (933,986) (912,265) — — — Total financial liabilities (941,650) (919,929) — (7,358) (306) 1 Short-term investments include investments which are measured at FVTOCI in the amount of € 105,334 k as well as money market funds that are included in cash and cash equivalents on the balance sheet in the amount of € 183,540 k and are measured at FVTOCI. |
Summary of movement of financial assets and liabilities accounted for at fair values at level 3 | Equity Instruments and other financial assets Contingent in k€ Note Instruments consideration Balance as of Jan 1, 2023 53,875 (306) Additions 10 14,028 — Disposal 10 (3,523) — Transfer from Level 3 to Level 2 (10,909) — Fair Value Change (13,144) (5) Balance on December 31, 2023 40,328 (311) Equity Instruments and other financial assets Contingent in k€ Note Instruments 1 consideration Balance as of Jan 1, 2022 25,458 (1,103) Additions 10 25,846 (14) Disposal 10 — — Transfer from Level 3 to Level 2 — — Fair Value Change 2,571 811 Balance on December 31, 2022 53,875 (306) 1 |
Summary of sensitivity analysis of fair value measurement to changes in unobservable inputs | 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 December 31, 2023 and 2022: 2023 2022 Net result Net result Increase Decrease Increase Decrease k€ k€ k€ k€ Contingent consideration Discount rate (change of 1.5 %-points) (3) 3 (7) 7 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share | |
Schedule of weighted average number of ordinary shares | Shares in thousands 2023 2022 2021 Issued shares Jan. 1 176,953 176,608 163,915 Treasury shares Jan. 1 (250) (250) (250) Effect of weighted average share capital increase — — 1,953 Effect of weighted average stock options exercised 214 316 788 Weighted Average Number of Shares Outstanding Dec 31. 176,917 176,674 166,406 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Summary of future minimum lease payments under non-cancellable lease agreements | Dec 31 Dec 31 2023 2022 k€ k€ Less than one year 1,192 1,561 Between one and five years 14,304 16,373 More than five years 38,144 44,979 Total 53,640 62,913 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Summary of related party transactions | in k€ 2023 2022 2021 Sales of goods and services 16,661 36,677 28,868 Receivables from related parties 2,164 4,071 2,643 |
Auditor's remuneration (Tables)
Auditor's remuneration (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Auditor's remuneration | |
Auditor's remuneration | in k€ 2023 2022 Audit Fees 1 4,088 2,460 Audit-Related Fees 60 43 Audit fees related to prior year audit 1,504 402 All Other Fees — 77 Total 5,651 2,982 1 |
Other disclosures (Tables)
Other disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Remuneration | |
Schedule of direct and indirect voting rights in subsidiaries and other investments | 2023 Company’s voting rights % Subsidiaries Aptuit Global LLC, Princeton, USA 100 Aptuit (Verona) SRL, Verona, Italy 100 Aptuit (Oxford) Ltd., Abingdon, UK 100 Aptuit (Potters Bar) Ltd., Abingdon, UK 100 Cyprotex Discovery Ltd., Manchester, UK 100 Cyprotex Ltd., Manchester, UK 100 Cyprotex US, LLC., Framingham, USA 100 Evotec (France) SAS, Toulouse, France 100 Evotec ID (Lyon) SAS, Marcy l’Étoile, France 100 Evotec (Hamburg) GmbH, Hamburg, Germany 100 Evotec GT GmbH, Orth an der Donau, Austria 100 Evotec (India) Private Limited, Thane, India* 100 Evotec International GmbH, Hamburg, Germany 100 Evotec (München) GmbH, Martinsried, Germany 100 Evotec (UK) Ltd., Abingdon, UK 100 Evotec (US), Inc., Princeton, USA 100 Just - Evotec Biologics, Inc., Seattle, USA 100 Just - Evotec Biologics EU SAS, Toulouse, France 100 Evotec Drug Substance (Germany) GmbH, Halle, Germany 100 Evotec (Modena) Srl, Medolla, Italy 100 NephThera GmbH, Hamburg, Germany 100 Evotec Asia Pte. Ltd., Shenton, Singapore 100 2023 Company’s voting rights % Associates Ananke Therapeutics Inc., Boston, USA 19.88 Autobahn Labs LLC, Palo Alto, USA 35.26 Breakpoint Therapeutics GmbH, Hamburg, Germany 34.03 Curexsys GmbH, Göttingen, Germany 43.44 Dark Blue Therapeutics Ltd., Oxford, UK 38.97 Eternygen GmbH, Berlin, Germany 24.97 Quantro Therapeutics GmbH, Wien, Austria 38.79 Topas Therapeutics GmbH, Hamburg, Germany 23.61 Centauri Therapeutics Ltd., Sandwich (Kent), UK 20.04 Other Investments Aeovian Pharmaceuticals Inc., San Francisco, USA 3.51 ArgoBio SAS, Paris, Frankreich 10.01 Aurobac Therapeutics SAS, Lyon, Frankreich 12.50 Blacksmith Medicines Inc., San Diego, USA 17.94 Cajal Neuroscience Inc., Seattle, USA 1.52 Carma Fund I, München, Germany 10.00 Carrick Therapeutics Ltd., Dublin, Ireland 2.78 Celmatix 12.35 Curie Bio LLC, Boston, USA 0.11 Curie Bio Seed Fund I L.P., Boston, USA 2.83 Exscientia plc, Oxford, UK 11.41 Extend Srl, Rome, Italy 10.00 Fibrocor LLP, Toronto, Canada 16.26 Fibrocor Therapeutics Inc., Toronto, Canada 8.83 IMIDomics Inc., San Francisco, USA 8.15 Immunitas, Therapeutics, Inc., Waltham, USA 5.58 Leon Nanodrugs GmbH, München, Germany 12.44 Mission BioCapital V LP, Cambridge, USA 3.64 OxVax Ltd., Oxford, UK* 15.33 Pancella/Pluristyx 5.69 Sernova Corp., Ontario, Canada 5.16 Tubulis GmbH, München, Germany 9.60 * 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 | in k€ 2023 2022 Fixed remuneration 2,954 2,343 Variable remuneration 731 1,579 Share Performance Awards (in units) 227,555 139,229 Fair value of SPAs granted 3,611 4,580 Total Remuneration 7,296 8,502 |
Supervisory Board | |
Remuneration | |
Schedule of remuneration granted to the members of the Management Board and remuneration accrued for the members of the Supervisory Board | in k€ 2023 2022 Total remuneration of the supervisory board 520 504 |
Segment information (Details)
Segment information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segments | |||
Revenues | € 781,426 | € 751,448 | € 618,034 |
Cost of revenue | (606,375) | (577,383) | (466,491) |
Gross profit | 175,051 | 174,065 | 151,543 |
Operating income and (expenses) | |||
Research and development cost | (68,529) | (76,642) | (72,200) |
Selling, general and administrative cost | (169,610) | (156,190) | (105,445) |
Impairment of intangible assets | (5,011) | (683) | |
Other operating income | 64,793 | 81,582 | 73,472 |
Other operating expenses | (44,202) | (1,965) | (5,691) |
Total operating income and (expenses) | (222,558) | (153,215) | (110,547) |
Operating income (loss) | (47,507) | 20,850 | 40,996 |
EVT Execute | |||
Segments | |||
Revenues | 514,542 | 546,718 | 471,052 |
EVT Innovate | |||
Segments | |||
Revenues | 266,884 | 204,730 | 146,982 |
Operating segments | EVT Execute | |||
Segments | |||
Cost of revenue | (631,373) | (605,751) | (482,588) |
Gross profit | 107,365 | 129,884 | 127,580 |
Operating income and (expenses) | |||
Research and development cost | (4,391) | (5,305) | (2,900) |
Selling, general and administrative cost | (130,810) | (125,293) | (83,936) |
Impairment of intangible assets | (5,011) | ||
Other operating income | 31,337 | 35,197 | 26,684 |
Other operating expenses | (41,508) | (1,960) | (4,319) |
Total operating income and (expenses) | (150,383) | (97,361) | (64,471) |
Operating income (loss) | (43,018) | 32,523 | 63,109 |
Operating segments | EVT Innovate | |||
Segments | |||
Cost of revenue | (184,700) | (145,566) | (110,379) |
Gross profit | 82,184 | 59,164 | 36,603 |
Operating income and (expenses) | |||
Research and development cost | (78,636) | (86,320) | (81,940) |
Selling, general and administrative cost | (38,800) | (30,897) | (21,509) |
Impairment of intangible assets | (683) | ||
Other operating income | 33,456 | 46,385 | 46,788 |
Other operating expenses | (2,694) | (5) | (1,372) |
Total operating income and (expenses) | (86,673) | (70,837) | (58,716) |
Operating income (loss) | (4,489) | (11,673) | (22,113) |
Elimination between the segments | |||
Segments | |||
Revenues | (224,196) | (188,917) | (139,116) |
Cost of revenue | 209,698 | 173,934 | 126,476 |
Gross profit | (14,497) | (14,983) | (12,640) |
Operating income and (expenses) | |||
Research and development cost | 14,497 | 14,983 | 12,640 |
Total operating income and (expenses) | 14,497 | 14,983 | 12,640 |
Elimination between the segments | EVT Execute | |||
Segments | |||
Revenues | € (224,196) | € (188,917) | € (139,116) |
Segment information - Geographi
Segment information - Geographical breakdown of revenues (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Geographical areas | |||
Revenue from contracts with customers | € 772,009 | € 740,897 | € 609,469 |
Revenue from contributions | 9,417 | 10,551 | 8,565 |
Total revenue | 781,426 | 751,448 | 618,034 |
EVT Execute | |||
Geographical areas | |||
Revenue from contracts with customers | 505,125 | 536,167 | 462,487 |
Revenue from contributions | 9,417 | 10,551 | 8,565 |
Total revenue | 514,542 | 546,718 | 471,052 |
EVT Innovate | |||
Geographical areas | |||
Revenue from contracts with customers | 266,884 | 204,730 | 146,982 |
Total revenue | 266,884 | 204,730 | 146,982 |
USA | |||
Geographical areas | |||
Revenue from contracts with customers | 459,424 | 407,754 | 329,037 |
USA | EVT Execute | |||
Geographical areas | |||
Revenue from contracts with customers | 241,555 | 273,204 | 227,444 |
USA | EVT Innovate | |||
Geographical areas | |||
Revenue from contracts with customers | 217,869 | 134,550 | 101,593 |
Germany | |||
Geographical areas | |||
Revenue from contracts with customers | 34,134 | 58,895 | 46,852 |
Germany | EVT Execute | |||
Geographical areas | |||
Revenue from contracts with customers | 15,385 | 32,765 | 24,279 |
Germany | EVT Innovate | |||
Geographical areas | |||
Revenue from contracts with customers | 18,749 | 26,130 | 22,573 |
France | |||
Geographical areas | |||
Revenue from contracts with customers | 32,005 | 32,274 | 30,591 |
France | EVT Execute | |||
Geographical areas | |||
Revenue from contracts with customers | 25,666 | 22,546 | 16,876 |
France | EVT Innovate | |||
Geographical areas | |||
Revenue from contracts with customers | 6,339 | 9,728 | 13,715 |
United Kingdom | |||
Geographical areas | |||
Revenue from contracts with customers | 86,368 | 115,256 | 104,640 |
United Kingdom | EVT Execute | |||
Geographical areas | |||
Revenue from contracts with customers | 81,539 | 105,557 | 98,735 |
United Kingdom | EVT Innovate | |||
Geographical areas | |||
Revenue from contracts with customers | 4,829 | 9,699 | 5,905 |
Switzerland | |||
Geographical areas | |||
Revenue from contracts with customers | 64,924 | 22 | 24,478 |
Switzerland | EVT Execute | |||
Geographical areas | |||
Revenue from contracts with customers | 64,876 | 22 | 24,398 |
Switzerland | EVT Innovate | |||
Geographical areas | |||
Revenue from contracts with customers | 48 | 80 | |
Rest of the world | |||
Geographical areas | |||
Revenue from contracts with customers | 95,154 | 126,696 | 73,871 |
Rest of the world | EVT Execute | |||
Geographical areas | |||
Revenue from contracts with customers | 76,105 | 102,073 | 70,755 |
Rest of the world | EVT Innovate | |||
Geographical areas | |||
Revenue from contracts with customers | € 19,049 | € 24,623 | € 3,116 |
Segment information - Non curre
Segment information - Non current assets (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Geographical areas | ||
Non-current assets | € 1,195,954 | € 1,042,206 |
USA | ||
Geographical areas | ||
Non-current assets | 221,195 | 231,439 |
UK | ||
Geographical areas | ||
Non-current assets | 221,177 | 211,115 |
Italy | ||
Geographical areas | ||
Non-current assets | 259,649 | 227,113 |
France | ||
Geographical areas | ||
Non-current assets | 337,960 | 205,749 |
Germany | ||
Geographical areas | ||
Non-current assets | 153,338 | 160,970 |
Austria | ||
Geographical areas | ||
Non-current assets | € 2,634 | 3,914 |
Canada | ||
Geographical areas | ||
Non-current assets | € 1,906 |
Revenue (Details)
Revenue (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue | ||||
Revenue from contracts with customers | € 772,009 | € 740,897 | € 609,469 | |
Revenue from contributions | 9,417 | 10,551 | 8,565 | |
Total revenue | 781,426 | 751,448 | 618,034 | |
At a point in time | ||||
Revenue | ||||
Revenue from contracts with customers | 88,587 | 62,502 | 85,460 | |
Over a period of time | ||||
Revenue | ||||
Revenue from contracts with customers | 683,421 | 678,395 | 524,009 | |
Fee for service and FTE-based research payments | ||||
Revenue | ||||
Revenue from contracts with customers | 726,929 | 673,436 | 522,189 | |
Recharges | ||||
Revenue | ||||
Revenue from contracts with customers | [1] | 37,561 | 44,436 | 35,991 |
Compound access fees | ||||
Revenue | ||||
Revenue from contracts with customers | 2,059 | 2,573 | 1,575 | |
Milestone fees | ||||
Revenue | ||||
Revenue from contracts with customers | 4,785 | 18,066 | 49,469 | |
Licences | ||||
Revenue | ||||
Revenue from contracts with customers | 675 | 2,386 | 245 | |
EVT Execute | ||||
Revenue | ||||
Revenue from contracts with customers | 505,125 | 536,167 | 462,487 | |
Revenue from contributions | 9,417 | 10,551 | 8,565 | |
Total revenue | 514,542 | 546,718 | 471,052 | |
EVT Execute | At a point in time | ||||
Revenue | ||||
Revenue from contracts with customers | 77,763 | 44,722 | 38,336 | |
EVT Execute | Over a period of time | ||||
Revenue | ||||
Revenue from contracts with customers | 427,361 | 491,445 | 424,151 | |
EVT Execute | Fee for service and FTE-based research payments | ||||
Revenue | ||||
Revenue from contracts with customers | 472,205 | 488,168 | 422,619 | |
EVT Execute | Recharges | ||||
Revenue | ||||
Revenue from contracts with customers | [1] | 30,496 | 38,668 | 34,104 |
EVT Execute | Compound access fees | ||||
Revenue | ||||
Revenue from contracts with customers | 1,283 | 1,464 | 1,532 | |
EVT Execute | Milestone fees | ||||
Revenue | ||||
Revenue from contracts with customers | 1,026 | 6,054 | 4,232 | |
EVT Execute | Licences | ||||
Revenue | ||||
Revenue from contracts with customers | 116 | 1,813 | ||
EVT Innovate | ||||
Revenue | ||||
Revenue from contracts with customers | 266,884 | 204,730 | 146,982 | |
Total revenue | 266,884 | 204,730 | 146,982 | |
EVT Innovate | At a point in time | ||||
Revenue | ||||
Revenue from contracts with customers | 10,824 | 17,780 | 47,124 | |
EVT Innovate | Over a period of time | ||||
Revenue | ||||
Revenue from contracts with customers | 256,060 | 186,950 | 99,858 | |
EVT Innovate | Fee for service and FTE-based research payments | ||||
Revenue | ||||
Revenue from contracts with customers | 254,724 | 185,268 | 99,570 | |
EVT Innovate | Recharges | ||||
Revenue | ||||
Revenue from contracts with customers | [1] | 7,065 | 5,768 | 1,887 |
EVT Innovate | Compound access fees | ||||
Revenue | ||||
Revenue from contracts with customers | 776 | 1,109 | 43 | |
EVT Innovate | Milestone fees | ||||
Revenue | ||||
Revenue from contracts with customers | 3,759 | 12,012 | 45,237 | |
EVT Innovate | Licences | ||||
Revenue | ||||
Revenue from contracts with customers | € 559 | € 573 | € 245 | |
[1] Comprises of material re-charges to the customer |
Revenue - Additional informatio
Revenue - Additional information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Transaction price | |||
Revenue from contracts with customers | € 772,009 | € 740,897 | € 609,469 |
Current contract liabilities | 97,587 | 122,922 | 112,061 |
BMS | |||
Transaction price | |||
Revenue from contracts with customers | 195,386 | 138,737 | € 98,616 |
Contract liabilities | 202,238 | 235,652 | |
Current contract liabilities | € 49,153 | € 42,506 | |
BMS | Minimum | |||
Transaction price | |||
Percentage of entity's revenue | 10% | 10% | 10% |
In the course of the year | |||
Transaction price | |||
Transaction price allocated to the remaining performance obligation | € 571,825 | € 405,710 | € 225,061 |
After one year | |||
Transaction price | |||
Transaction price allocated to the remaining performance obligation | € 335,427 | € 158,068 | € 67,619 |
Revenue - Contract Assets (Deta
Revenue - Contract Assets (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue. | ||
Balance as of beginning | € 30,516 | € 18,614 |
Additions | 180,305 | 116,215 |
Reclassifications to Trade Receivables due to Invoicing | (185,754) | (101,908) |
Translation differences and other | (67) | (2,405) |
Balance as of end | € 25,000 | € 30,516 |
Revenue - Contract Liabilities
Revenue - Contract Liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current | ||
Balance as of beginning | € 122,922 | € 112,061 |
Additions | 203,825 | 502,094 |
Reduction due to Recognition of Revenue | (279,691) | (503,747) |
Reclassification from non-current to current | 50,849 | 12,000 |
Translation differences and other | (318) | 514 |
Balance as of end | 97,587 | 122,922 |
Non-current | ||
Balance as of beginning | 206,136 | 33,476 |
Additions | 184,660 | |
Reclassification from non-current to current | (50,849) | (12,000) |
Balance as of end | € 155,287 | € 206,136 |
Other operating income (Loss) -
Other operating income (Loss) - Personnel expenses and cost of material (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Personnel expenses and cost of material | |||
Personnel expenses | € 377,587 | € 388,050 | € 319,353 |
Statutory retirement insurance expenses | 17,041 | 15,106 | 12,407 |
Social security expenses | 58,276 | 55,894 | 40,309 |
Cost of materials | 118,918 | 120,568 | 107,837 |
Foreign | |||
Personnel expenses and cost of material | |||
Personnel expenses | 256,259 | 284,452 | 240,947 |
Statutory retirement insurance expenses | 9,788 | 9,066 | 7,566 |
Cost of materials | € 88,192 | € 90,901 | € 83,275 |
Other operating income (Loss)_2
Other operating income (Loss) - Research and Development (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses | |||
Research and development expenses relating to overhead expenses | € 10,699 | € 12,198 | € 8,136 |
EVT Innovate | |||
Expenses | |||
Research and development expenses relating to own projects | 56,511 | 62,100 | 64,064 |
EVT Execute | |||
Expenses | |||
Research and development expenses relating to own projects | 1,319 | 2,345 | 2,528 |
Research and development expense | |||
Expenses | |||
Depreciation and amortization expense | € 464 | € 471 | € 1,042 |
Other operating income (Loss)_3
Other operating income (Loss) - Selling, general and administrative expenses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses | |||
Sales and marketing expense | € 16,869 | € 13,491 | € 9,422 |
Other administrative expenses | 152,741 | 142,699 | 96,023 |
Selling, general and administrative expense | |||
Expenses | |||
Depreciation and amortization expense | € 43,522 | € 38,025 | € 24,957 |
Other operating income (Loss)_4
Other operating income (Loss) - Other operating income (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
France | |||
Other operating income (loss) | |||
Refunds related to tax | € 24,812 | € 25,068 | € 22,691 |
United Kingdom | |||
Other operating income (loss) | |||
Refunds related to tax | 11,010 | 7,250 | 6,502 |
Italy | |||
Other operating income (loss) | |||
Refunds related to tax | 6,352 | 7,342 | 2,784 |
Germany | |||
Other operating income (loss) | |||
Refunds related to tax | 1,000 | 3,280 | 0 |
Sanofi | |||
Other operating income (loss) | |||
Refunds related to development of portfolios | € 16,600 | € 34,174 | € 35,762 |
Other operating income (Loss)_5
Other operating income (Loss) - Other operating expense (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other operating income (Loss) | |||
Other operating expenses | € 44,202 | € 1,965 | € 5,691 |
Income and deferred tax - Addit
Income and deferred tax - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income and deferred tax | |||
Tax rate | 32.28% | 32.28% | 32.28% |
Minimum | Domestic | |||
Income and deferred tax | |||
Tax rate | 27% | ||
Minimum | Foreign | |||
Income and deferred tax | |||
Tax rate | 19% | ||
Maximum | Domestic | |||
Income and deferred tax | |||
Tax rate | 32% | ||
Maximum | Foreign | |||
Income and deferred tax | |||
Tax rate | 31% |
Income and deferred tax - Amoun
Income and deferred tax - Amounts recognised in consolidated income statement (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current taxes: | |||
Tax expense for the year | € (5,251) | € (14,132) | € (12,309) |
Income (expense) relating to other periods | (2,666) | 156 | (4,095) |
Total current income taxes | (7,917) | (13,976) | (16,404) |
Deferred taxes: | |||
Tax loss carry forwards | 1,606 | (10,862) | (5,140) |
Temporary differences | 2,991 | 3,140 | 74 |
Total deferred income taxes | 4,597 | (7,722) | (5,066) |
Tax expense recognized in the income statement | € (3,320) | € (21,698) | € (21,470) |
Income and deferred tax - Recon
Income and deferred tax - Reconciliation of effective tax rates (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax | |||
Income (loss) before taxes | € (80,593) | € (153,956) | € 236,980 |
Expected German income tax rate | 32.28% | 32.28% | 32.28% |
Expected income tax benefit (expense) | € 26,015 | € 49,697 | € (76,497) |
Non-deductible expenses | (8,274) | (59,543) | (511) |
R&D tax credits | 8,558 | 13,454 | 6,742 |
Tax free income | 7,968 | 3,184 | 71,917 |
Permanent differences from GILTI | (156) | (3,724) | (444) |
Tax effects from investments accounted for using the equity method | (8,373) | (5,152) | (9,300) |
Deviation tax rates to expected tax rate | (1,343) | 448 | 1,815 |
Change in tax rates | (251) | 636 | 521 |
Change in recognition of deferred tax assets | (25,568) | (19,167) | (10,247) |
Current Taxes related to prior years | (2,666) | 156 | (4,095) |
Deferred Taxes related to prior years | 556 | (1,348) | (570) |
Other | 213 | (341) | (801) |
Tax expense recognized in the income statement | € (3,320) | € (21,698) | € (21,470) |
Effective income tax rate | (4.12%) | (14.09%) | 9.06% |
Solidarity surcharge rate | 15.825% | ||
Minimum | |||
Tax | |||
Trade tax rate | 11.55% | ||
Maximum | |||
Tax | |||
Trade tax rate | 16.625% |
Income and deferred tax - Defer
Income and deferred tax - Deferred income tax assets and liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Tax | ||||
Net, Balance at beginning of period | € (8,197) | € (329) | ||
Recognized in profit or loss | 4,597 | (7,722) | € (5,066) | |
Recognized in other comprehensive income | (406) | (990) | ||
Foreign currency translation | 199 | 518 | ||
Business Combination | 326 | |||
Net, Balance at end of period | (3,807) | (8,197) | (329) | |
Deferred tax asset | 60,915 | 59,215 | ||
Deferred tax liabilities | (64,722) | (67,412) | ||
Deferred tax liabilities offset against assets | (46,585) | (48,888) | ||
Deferred tax assets offset against liabilities | 46,585 | 48,888 | ||
Net deferred tax assets | 14,330 | 10,327 | ||
Net deferred tax liabilities | (18,137) | (18,524) | ||
Property, plant and equipment | ||||
Tax | ||||
Net, Balance at beginning of period | (9,457) | (4,855) | ||
Recognized in profit or loss | (2,096) | (5,140) | ||
Foreign currency translation | 20 | 508 | ||
Business Combination | 30 | |||
Net, Balance at end of period | (11,533) | (9,457) | (4,855) | |
Deferred tax asset | 1,807 | 1,563 | ||
Deferred tax liabilities | (13,340) | (11,020) | ||
Intangible assets other than goodwill | ||||
Tax | ||||
Net, Balance at beginning of period | (19,646) | (22,348) | ||
Recognized in profit or loss | 6,285 | 2,536 | ||
Foreign currency translation | 61 | (130) | ||
Business Combination | 296 | |||
Net, Balance at end of period | (13,300) | (19,646) | (22,348) | |
Deferred tax asset | 4,004 | 965 | ||
Deferred tax liabilities | (17,304) | (20,611) | ||
Right-of use assets | ||||
Tax | ||||
Net, Balance at beginning of period | (28,839) | (21,979) | ||
Recognized in profit or loss | (770) | (6,860) | ||
Net, Balance at end of period | (29,609) | (28,839) | (21,979) | |
Deferred tax liabilities | (29,609) | (28,839) | ||
Financial assets | ||||
Tax | ||||
Net, Balance at beginning of period | (1,446) | (3,985) | ||
Recognized in profit or loss | (965) | 2,539 | ||
Recognized in other comprehensive income | (419) | |||
Net, Balance at end of period | (2,830) | (1,446) | (3,985) | |
Deferred tax asset | 783 | 453 | ||
Deferred tax liabilities | (3,613) | (1,899) | ||
Provisions and deferred income | ||||
Tax | ||||
Net, Balance at beginning of period | 9,250 | 3,965 | ||
Recognized in profit or loss | (1,142) | 5,640 | ||
Recognized in other comprehensive income | 13 | (357) | ||
Foreign currency translation | 2 | |||
Net, Balance at end of period | 8,121 | 9,250 | 3,965 | |
Deferred tax asset | 8,347 | 12,759 | ||
Deferred tax liabilities | (226) | (3,509) | ||
Lease obligations | ||||
Tax | ||||
Net, Balance at beginning of period | 25,278 | 19,927 | ||
Recognized in profit or loss | (577) | 5,351 | ||
Net, Balance at end of period | 24,701 | 25,278 | 19,927 | |
Deferred tax asset | 24,701 | 25,278 | ||
Other | ||||
Tax | ||||
Net, Balance at beginning of period | 4,244 | 4,949 | ||
Recognized in profit or loss | 2,068 | (727) | ||
Foreign currency translation | 22 | |||
Net, Balance at end of period | 6,312 | 4,244 | 4,949 | |
Deferred tax asset | 6,942 | 5,778 | ||
Deferred tax liabilities | (630) | (1,534) | ||
Tax credits | ||||
Tax | ||||
Net, Balance at beginning of period | 273 | 1,034 | ||
Recognized in profit or loss | 188 | (199) | ||
Recognized in other comprehensive income | [1] | (633) | ||
Foreign currency translation | 71 | |||
Net, Balance at end of period | 461 | 273 | 1,034 | |
Deferred tax asset | 461 | 273 | ||
Tax loss carryforwards | ||||
Tax | ||||
Net, Balance at beginning of period | 12,146 | 22,963 | ||
Recognized in profit or loss | 1,606 | (10,862) | ||
Foreign currency translation | 118 | 45 | ||
Net, Balance at end of period | 13,870 | 12,146 | € 22,963 | |
Deferred tax asset | € 13,870 | € 12,146 | ||
[1] Was recognized directly in equity and not through other comprehensive income. |
Income and deferred tax - Unrec
Income and deferred tax - Unrecognized deferred tax (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income and deferred tax | ||
Unrecognized deferred tax liabilities | € 15,842 | € 20,576 |
Income and deferred tax - Unr_2
Income and deferred tax - Unrecognized deferred tax assets (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | € 668,575 | € 592,958 | € 442,395 |
Unrecognized deferred tax assets for temporary differences | 14,323 | 11,354 | 6,346 |
Tax loss carryforwards | Not expiring | |||
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | 572,204 | 474,989 | 307,682 |
Tax loss carryforwards | Not later than five years | |||
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | 24,768 | 13,297 | 21,409 |
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 | 32,179 | 45,696 | 38,207 |
Tax loss carryforwards | Later than ten years | |||
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | 38,243 | 57,662 | 73,811 |
Tax credits | |||
Tax | |||
Unused tax losses, interest carryforwards and tax credits for which no deferred tax asset recognised | € 1,181 | € 1,313 | € 1,286 |
Current assets and liabilitie_2
Current assets and liabilities - Trade accounts receivables (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets and liabilities | |||
Trade accounts receivables | [1] | € 98,396 | € 171,798 |
Trade account receivables | 168,653 | ||
Accounts receivable from associated companies and other long-term investments | € 3,146 | ||
Minimum | |||
Current assets and liabilities | |||
Expected credit loss rate | 0.01% | 0.078% | |
Maximum | |||
Current assets and liabilities | |||
Expected credit loss rate | 4.02% | 16.758% | |
Gross/Acquisition and manufacturing costs | Not past due | |||
Current assets and liabilities | |||
Trade accounts receivables | € 57,742 | € 139,226 | |
Gross/Acquisition and manufacturing costs | 1-30 days | |||
Current assets and liabilities | |||
Trade accounts receivables | 25,837 | 24,704 | |
Gross/Acquisition and manufacturing costs | 31-120 days | |||
Current assets and liabilities | |||
Trade accounts receivables | 12,688 | 6,559 | |
Gross/Acquisition and manufacturing costs | More than 120 days | |||
Current assets and liabilities | |||
Trade accounts receivables | 8,582 | 6,109 | |
Accumulated impairment | |||
Current assets and liabilities | |||
Trade accounts receivables | (6,453) | (3,223) | |
Accumulated impairment | Specific default risk | |||
Current assets and liabilities | |||
Trade accounts receivables | (6,121) | (2,312) | |
Accumulated impairment | Expected credit risk in accordance with IFRS 9 | |||
Current assets and liabilities | |||
Trade accounts receivables | (331) | (911) | |
Accumulated impairment | Not past due | |||
Current assets and liabilities | |||
Trade accounts receivables | (367) | ||
Accumulated impairment | 1-30 days | |||
Current assets and liabilities | |||
Trade accounts receivables | (170) | (67) | |
Accumulated impairment | 31-120 days | |||
Current assets and liabilities | |||
Trade accounts receivables | (280) | (469) | |
Accumulated impairment | More than 120 days | |||
Current assets and liabilities | |||
Trade accounts receivables | € (5,636) | € (4,264) | |
[1] In annual report 2023, the positions trade accounts receivables and accounts receivables from associated companies and other long-term investments are aggregated to provide a clearer picture of the financial position. The previous year figures have been adjusted accordingly. |
Current assets and liabilitie_3
Current assets and liabilities - Inventories (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Inventories | ||
Raw materials | € 25,901 | € 27,917 |
Work-in-progress | 4,989 | 1,908 |
Total inventories | 30,890 | 29,825 |
Inventories recognized as an expense | (54,987) | (61,182) |
Accumulated impairment | ||
Inventories | ||
Total inventories | € (2,573) | € (1,679) |
Current assets and liabilitie_4
Current assets and liabilities - Prepaid expenses and other current assets (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets and liabilities | ||
Prepaid expenses | € 18,395 | € 16,948 |
Other current assets | 32,950 | 40,178 |
Total prepaid expenses and other current assets | 51,345 | 57,126 |
VAT-related receivables | € 17,844 | € 19,035 |
Current assets and liabilitie_5
Current assets and liabilities - Trade payables (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets and liabilities | ||
Trade payables | € 134,319 | € 97,277 |
Current assets and liabilitie_6
Current assets and liabilities - Other current liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets and liabilities | ||
Wage taxes | € 2,793 | € 1,851 |
Social security liabilities | € 4,429 | € 4,472 |
Property, plant and equipment -
Property, plant and equipment - Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Buildings | Minimum | |
Property, plant and equipment | |
Estimated useful lives (in years) | 15 years |
Buildings | Maximum | |
Property, plant and equipment | |
Estimated useful lives (in years) | 33 years |
Technical equipment and machinery | Minimum | |
Property, plant and equipment | |
Estimated useful lives (in years) | 3 years |
Technical equipment and machinery | Maximum | |
Property, plant and equipment | |
Estimated useful lives (in years) | 15 years |
Office furniture and equipment | Minimum | |
Property, plant and equipment | |
Estimated useful lives (in years) | 3 years |
Office furniture and equipment | Maximum | |
Property, plant and equipment | |
Estimated useful lives (in years) | 10 years |
Property, plant and equipment_2
Property, plant and equipment - Property, Plant and Equipment and Right of Use Assets (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, plant and equipment | ||
Amount beginning of the year | € 650,201 | |
Amount end of the year | 806,563 | € 650,201 |
Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 481,876 | 339,559 |
Acquisition through business combination | 5,766 | |
Capital expenditure/Additions | 218,589 | 189,866 |
Disposals | 712 | 5,941 |
Depreciation | 64,959 | 54,018 |
Reclassification | (115) | (22) |
Translation differences and other | (5,130) | 6,666 |
Amount end of the year | 629,546 | 481,876 |
Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | 168,325 | 145,038 |
Recognition of right-of-use asset | 33,902 | 38,699 |
Acquisition through business combination | 4,278 | |
Disposals | 4,074 | |
Depreciation | 21,075 | 18,659 |
Reclassification | 115 | 22 |
Translation differences and other | (178) | (1,053) |
Amount end of the year | 177,017 | 168,325 |
Gross/Acquisition and manufacturing costs | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 692,071 | 499,410 |
Amount end of the year | 901,020 | 692,071 |
Gross/Acquisition and manufacturing costs | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | 228,739 | 186,676 |
Amount end of the year | 255,853 | 228,739 |
Depreciation, amortization and impairments | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | (210,195) | (159,851) |
Amount end of the year | (271,474) | (210,195) |
Depreciation, amortization and impairments | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | (60,414) | (41,638) |
Amount end of the year | (78,836) | (60,414) |
Buildings and leasehold improvements | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 197,648 | 173,208 |
Acquisition through business combination | 2,594 | |
Capital expenditure/Additions | 17,905 | 23,280 |
Disposals | 521 | 3,529 |
Depreciation | 17,509 | 15,271 |
Reclassification | 20,018 | 13,009 |
Translation differences and other | (2,570) | 4,357 |
Amount end of the year | 214,971 | 197,648 |
Buildings and leasehold improvements | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | 166,955 | 141,880 |
Recognition of right-of-use asset | 32,663 | 38,393 |
Acquisition through business combination | 3,940 | |
Disposals | 3,963 | |
Depreciation | 19,998 | 17,855 |
Reclassification | (1,014) | 1,524 |
Translation differences and other | (180) | (927) |
Amount end of the year | 174,463 | 166,955 |
Buildings and leasehold improvements | Gross/Acquisition and manufacturing costs | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 240,328 | 200,865 |
Amount end of the year | 274,335 | 240,328 |
Buildings and leasehold improvements | Gross/Acquisition and manufacturing costs | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | 222,734 | 177,602 |
Amount end of the year | 249,853 | 222,734 |
Buildings and leasehold improvements | Depreciation, amortization and impairments | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | (42,680) | (27,657) |
Amount end of the year | (59,365) | (42,680) |
Buildings and leasehold improvements | Depreciation, amortization and impairments | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | (55,779) | (35,722) |
Amount end of the year | (75,390) | (55,779) |
Plant, machinery and equipment | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 148,843 | 111,017 |
Acquisition through business combination | 3,309 | |
Capital expenditure/Additions | 42,863 | 59,305 |
Disposals | 99 | 1,538 |
Depreciation | 36,478 | 29,915 |
Reclassification | 14,384 | 5,345 |
Translation differences and other | (948) | 1,320 |
Amount end of the year | 168,565 | 148,843 |
Plant, machinery and equipment | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | 786 | 2,693 |
Recognition of right-of-use asset | 533 | 306 |
Disposals | 100 | |
Depreciation | 684 | 575 |
Reclassification | 1,029 | (1,512) |
Translation differences and other | (126) | |
Amount end of the year | 1,565 | 786 |
Plant, machinery and equipment | Gross/Acquisition and manufacturing costs | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 285,248 | 219,534 |
Amount end of the year | 339,277 | 285,248 |
Plant, machinery and equipment | Gross/Acquisition and manufacturing costs | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | 4,688 | 8,077 |
Amount end of the year | 4,251 | 4,688 |
Plant, machinery and equipment | Depreciation, amortization and impairments | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | (136,405) | (108,517) |
Amount end of the year | (170,713) | (136,405) |
Plant, machinery and equipment | Depreciation, amortization and impairments | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | (3,902) | (5,384) |
Amount end of the year | (2,686) | (3,902) |
Furniture and fixtures | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 19,004 | 14,984 |
Acquisition through business combination | (231) | |
Capital expenditure/Additions | 12,087 | 11,663 |
Disposals | 92 | 12 |
Depreciation | 10,972 | 8,832 |
Reclassification | 408 | 1,326 |
Translation differences and other | (69) | 106 |
Amount end of the year | 20,365 | 19,004 |
Furniture and fixtures | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | 584 | 465 |
Recognition of right-of-use asset | 706 | |
Acquisition through business combination | 338 | |
Disposals | 11 | |
Depreciation | 393 | 229 |
Reclassification | 100 | 10 |
Translation differences and other | 2 | |
Amount end of the year | 989 | 584 |
Furniture and fixtures | Gross/Acquisition and manufacturing costs | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 50,114 | 38,661 |
Amount end of the year | 61,763 | 50,114 |
Furniture and fixtures | Gross/Acquisition and manufacturing costs | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | 1,317 | 997 |
Amount end of the year | 1,749 | 1,317 |
Furniture and fixtures | Depreciation, amortization and impairments | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | (31,110) | (23,677) |
Amount end of the year | (41,397) | (31,110) |
Furniture and fixtures | Depreciation, amortization and impairments | Right-of use assets | ||
Property, plant and equipment | ||
Amount beginning of the year | (733) | (532) |
Amount end of the year | (760) | (733) |
Assets under construction | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 116,381 | 40,350 |
Acquisition through business combination | 94 | |
Capital expenditure/Additions | 145,733 | 95,618 |
Disposals | 862 | |
Reclassification | (34,925) | (19,702) |
Translation differences and other | (1,544) | 883 |
Amount end of the year | 225,645 | 116,381 |
Assets under construction | Gross/Acquisition and manufacturing costs | Property, plant and equipment | ||
Property, plant and equipment | ||
Amount beginning of the year | 116,381 | 40,350 |
Amount end of the year | € 225,645 | € 116,381 |
Property, plant and equipment_3
Property, plant and equipment - Additional Information (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, plant and equipment | ||
Increase in property, plant and equipment | € 156,363 | € 165,604 |
Just-Evotec Biologics EU SAS, Toulouse, France | ||
Property, plant and equipment | ||
Increase in property, plant and equipment | € 107,299 |
Intangible assets and Goodwil_2
Intangible assets and Goodwill - Useful Lives of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Trademarks | Minimum | |
Intangible assets and Goodwill | |
Useful lives of intangible assets, excluding goodwill (in years) | 2 years |
Trademarks | Maximum | |
Intangible assets and Goodwill | |
Useful lives of intangible assets, excluding goodwill (in years) | 10 years |
Developed Technologies | Minimum | |
Intangible assets and Goodwill | |
Useful lives of intangible assets, excluding goodwill (in years) | 6 years |
Developed Technologies | Maximum | |
Intangible assets and Goodwill | |
Useful lives of intangible assets, excluding goodwill (in years) | 18 years |
Patents and licences | Minimum | |
Intangible assets and Goodwill | |
Useful lives of intangible assets, excluding goodwill (in years) | 5 years |
Patents and licences | Maximum | |
Intangible assets and Goodwill | |
Useful lives of intangible assets, excluding goodwill (in years) | 15 years |
Customer List | Minimum | |
Intangible assets and Goodwill | |
Useful lives of intangible assets, excluding goodwill (in years) | 5 years |
Customer List | Maximum | |
Intangible assets and Goodwill | |
Useful lives of intangible assets, excluding goodwill (in years) | 8 years |
Intangible assets and Goodwil_3
Intangible assets and Goodwill - Balances and Movement of Goodwill (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jul. 01, 2023 | |
Intangible assets and Goodwill | |||
Goodwill at beginning of period | € 274,819 | € 257,569 | |
Acquisition | 41 | 19,622 | |
Impairment of goodwill | 0 | 0 | |
Translation and other | 816 | (2,372) | |
Goodwill at end of period | 275,635 | 274,819 | |
NephThera GmbH, Hamburg, Germany | |||
Intangible assets and Goodwill | |||
Percentage of interest acquired | 50% | ||
OAI/Evotec International Execute | |||
Intangible assets and Goodwill | |||
Goodwill at beginning of period | 82,223 | 84,480 | |
Translation and other | 1,223 | (2,257) | |
Goodwill at end of period | 83,446 | 82,223 | |
OAI/Evotec International Innovate | |||
Intangible assets and Goodwill | |||
Goodwill at beginning of period | 9,164 | 9,204 | |
Acquisition | 41 | ||
Translation and other | 55 | (40) | |
Goodwill at end of period | 9,219 | 9,164 | |
Evotec (US) Execute | |||
Intangible assets and Goodwill | |||
Goodwill at beginning of period | 4,457 | 4,197 | |
Translation and other | (155) | 260 | |
Goodwill at end of period | 4,302 | 4,457 | |
Aptuit Execute | |||
Intangible assets and Goodwill | |||
Goodwill at beginning of period | 146,224 | 128,845 | |
Acquisition | 19,622 | ||
Translation and other | 831 | (2,243) | |
Goodwill at end of period | 147,055 | 146,224 | |
Just Execute | |||
Intangible assets and Goodwill | |||
Goodwill at beginning of period | 32,751 | 30,843 | |
Translation and other | (1,138) | 1,908 | |
Goodwill at end of period | € 31,613 | € 32,751 |
Intangible assets and Goodwil_4
Intangible assets and Goodwill - DCF (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash generating units except for Just Execute and OAI Evotec International Innovate | ||
Intangible assets and Goodwill | ||
Cash flow projection period in project planning | 5 years | |
Cash flow projection period including simplified transition period | 10 years | |
OAI/Evotec International Execute | ||
Intangible assets and Goodwill | ||
Pre-tax discount rate | 11.43% | 10.15% |
Sustainable growth rate | 2% | 2% |
Evotec (US) Execute | ||
Intangible assets and Goodwill | ||
Pre-tax discount rate | 10.44% | 9.32% |
Sustainable growth rate | 2% | 2% |
Aptuit Execute | ||
Intangible assets and Goodwill | ||
Pre-tax discount rate | 14.20% | 13.12% |
Sustainable growth rate | 2% | 2% |
OAI/Evotec International Innovate | ||
Intangible assets and Goodwill | ||
Cash flow projection period in project planning | 5 years | |
Pre-tax discount rate | 13.41% | 11.93% |
Sustainable growth rate | 2% | 2% |
Just Execute | ||
Intangible assets and Goodwill | ||
Cash flow projection period in project planning | 9 years | |
Pre-tax discount rate | 12.86% | 11.71% |
Sustainable growth rate | 2% | 2% |
Intangible assets and Goodwil_5
Intangible assets and Goodwill - Changes in the key assumptions (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible assets and Goodwill | ||
Impairment loss | € 0 | € 0 |
Future cash flows | ||
Intangible assets and Goodwill | ||
Percentage of reasonably possible increase (decrease) in key assumption | (10.00%) | |
Discount rate | ||
Intangible assets and Goodwill | ||
Percentage of reasonably possible increase (decrease) in key assumption | 1% | |
Sustainable growth rate | ||
Intangible assets and Goodwill | ||
Percentage of reasonably possible increase (decrease) in key assumption | (1.00%) | |
Cash generating units except for Just Execute | Future cash flows | ||
Intangible assets and Goodwill | ||
Impairment loss due to reasonably possible increase (decrease) in key assumption | € 0 | |
Cash generating units except for Just Execute | Discount rate | ||
Intangible assets and Goodwill | ||
Impairment loss due to reasonably possible increase (decrease) in key assumption | 0 | |
Cash generating units except for Just Execute | Sustainable growth rate | ||
Intangible assets and Goodwill | ||
Impairment loss due to reasonably possible increase (decrease) in key assumption | 0 | |
Just Execute | ||
Intangible assets and Goodwill | ||
Recoverable amount exceeding carrying amount | € 5,500 | |
Applied sustainable growth rate | 2% | 2% |
Just Execute | Future cash flows | ||
Intangible assets and Goodwill | ||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | (0.013) | |
Just Execute | Discount rate | ||
Intangible assets and Goodwill | ||
Applied post-tax discount rate | 11.10% | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0.001 | |
Just Execute | Sustainable growth rate | ||
Intangible assets and Goodwill | ||
Applied sustainable growth rate | 2% | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | (0.003) | |
Just Execute | Scenario analysis | ||
Intangible assets and Goodwill | ||
Impairment loss due to reasonably possible increase (decrease) in key assumption | € 0 |
Intangible assets and Goodwil_6
Intangible assets and Goodwill - Development of Intangible Assets (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible assets and Goodwill | ||
Amount beginning of the year | € 23,819 | € 30,851 |
Amount end of the year | 15,453 | 23,819 |
Gross/Acquisition and manufacturing costs | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | 189,246 | 186,623 |
Foreign currency translation | (1,105) | 34 |
Additions | 3,659 | 917 |
Business combination | 1,672 | |
Amount end of the year | 191,800 | 189,246 |
Depreciation, amortization and impairments | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | (165,427) | (155,772) |
Foreign currency translation | 1,035 | 393 |
Additions | (6,946) | (10,048) |
Impairment | (5,011) | |
Amount end of the year | (176,348) | (165,427) |
Patents and licences | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | 1,534 | 1,029 |
Amount end of the year | 861 | 1,534 |
Patents and licences | Gross/Acquisition and manufacturing costs | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | 12,883 | 11,211 |
Foreign currency translation | (46) | |
Business combination | 1,672 | |
Reclassification | (1,672) | |
Amount end of the year | 11,166 | 12,883 |
Patents and licences | Depreciation, amortization and impairments | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | (11,349) | (10,182) |
Foreign currency translation | (10) | |
Additions | (84) | (1,223) |
Reclassification | 1,138 | 56 |
Amount end of the year | (10,304) | (11,349) |
Developed Technologies | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | 6,575 | 6,801 |
Impairment | (5,011) | |
Amount end of the year | 4,844 | 6,575 |
Developed Technologies | Gross/Acquisition and manufacturing costs | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | 100,735 | 99,784 |
Foreign currency translation | (731) | 34 |
Additions | 3,659 | 917 |
Reclassification | 1,672 | |
Amount end of the year | 105,334 | 100,735 |
Developed Technologies | Depreciation, amortization and impairments | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | (94,160) | (92,983) |
Foreign currency translation | 641 | 438 |
Additions | (822) | (1,559) |
Impairment | (5,011) | |
Reclassification | (1,138) | (56) |
Amount end of the year | (100,490) | (94,160) |
Customer relationships | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | 14,684 | 21,698 |
Additions | (5,818) | |
Amount end of the year | 8,943 | 14,684 |
Customer relationships | Gross/Acquisition and manufacturing costs | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | 69,089 | 69,089 |
Foreign currency translation | (327) | |
Amount end of the year | 68,762 | 69,089 |
Customer relationships | Depreciation, amortization and impairments | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | (54,405) | (47,391) |
Foreign currency translation | 404 | (45) |
Additions | (5,818) | (6,969) |
Amount end of the year | (59,819) | (54,405) |
Trademarks | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | 1,026 | 1,323 |
Amount end of the year | 804 | 1,026 |
Trademarks | Gross/Acquisition and manufacturing costs | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | 6,539 | 6,539 |
Amount end of the year | 6,539 | 6,539 |
Trademarks | Depreciation, amortization and impairments | ||
Intangible assets and Goodwill | ||
Amount beginning of the year | (5,513) | (5,216) |
Additions | (222) | (297) |
Amount end of the year | € (5,735) | € (5,513) |
Intangible assets and Goodwil_7
Intangible assets and Goodwill - Additional Information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets and Goodwill | |||
Decrease in intangible assets other than goodwill | € (8,365) | ||
Intangible assets, excluding goodwill | 15,453 | € 23,819 | € 30,851 |
Customer relationships | |||
Intangible assets and Goodwill | |||
Intangible assets, excluding goodwill | 8,943 | 14,684 | 21,698 |
Amortization | 5,818 | ||
Aptuit customer base | |||
Intangible assets and Goodwill | |||
Amortization | 5,540 | ||
Developed Technologies | |||
Intangible assets and Goodwill | |||
Intangible assets, excluding goodwill | 4,844 | € 6,575 | € 6,801 |
Impairment amount | € 5,011 |
Financial instruments - Cash an
Financial instruments - Cash and cash equivalents and investment (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | Dec. 31, 2020 | ||
Financial instruments | |||||||
Cash at banks and on hand | € 237,562 | € 231,614 | |||||
Short term deposits | 35,000 | ||||||
Money market funds | 238,346 | 183,540 | |||||
Total cash and cash equivalents | 510,909 | [1] | 415,155 | [1] | € 699,326 | € 422,580 | |
Cash and cash equivalents and investments | 604,112 | 718,489 | |||||
Short-term investments | 93,203 | 303,334 | |||||
Restricted cash balances | 11,819 | 14,458 | |||||
Accumulated impairment | |||||||
Financial instruments | |||||||
Cash and cash equivalents and investments | € (225) | € (225) | |||||
[1] incl. € 11,819 k of restricted cash |
Financial instruments - Other c
Financial instruments - Other current financial assets (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial instruments | ||
Positive fair values of forward exchange contracts | € 6,137 | € 8,215 |
Financial instruments - Other l
Financial instruments - Other long-term investments (Details) € in Thousands | 12 Months Ended | |||
Dec. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares | |
Investments other than equity method investments | ||||
Balance at January 1 | € 131,042 | € 268,793 | ||
Additions | 10,199 | 46,137 | ||
Additions due to discontinued use of equity method | 1,906 | |||
Reduction due to change to accounting according to the equity method | (2,369) | |||
Fair value adjustments recognized in profit or loss | (3,678) | (172,159) | ||
Adjustments to fair value, recognized in OCI | (1,506) | (11,729) | ||
Net book value December 31 | 135,593 | 131,042 | ||
Revaluation of equity investments | (1,080) | € (11,729) | ||
Measurement losses | 14,958 | |||
Exscientia plc | ||||
Investments other than equity method investments | ||||
Measurement gain | € 11,280 | |||
Share price | $ / shares | $ 6.41 | $ 5.33 |
Financial instruments - Loan li
Financial instruments - Loan liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Borrowings | ||
Loans, excluding accrued interest | € 435,865 | € 328,759 |
Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | 379,247 | 306,840 |
Germany 0.8 - 2% | ||
Borrowings | ||
Loans, excluding accrued interest | € 243,583 | € 150,171 |
Germany 0.8 - 2% | Minimum | ||
Borrowings | ||
Nominal interest rate | 0.80% | 0.80% |
Germany 0.8 - 2% | Maximum | ||
Borrowings | ||
Nominal interest rate | 2% | 2% |
Germany 0.8 - 2% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 202,727 | € 137,278 |
Germany 4.8 - 5% | ||
Borrowings | ||
Loans, excluding accrued interest | € 64,500 | € 64,500 |
Germany 4.8 - 5% | Minimum | ||
Borrowings | ||
Nominal interest rate | 4.80% | 4.80% |
Germany 4.8 - 5% | Maximum | ||
Borrowings | ||
Nominal interest rate | 5% | 5% |
Germany 4.8 - 5% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 64,088 | € 61,003 |
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 | € 67,631 | € 71,846 |
Germany 1.20% | ||
Borrowings | ||
Nominal interest rate | 1.20% | 1.20% |
Loans, excluding accrued interest | € 5,647 | € 6,722 |
Germany 1.20% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 5,010 | € 6,358 |
Germany 1.40% | ||
Borrowings | ||
Nominal interest rate | 1.40% | 1.40% |
Loans, excluding accrued interest | € 18,458 | € 20,367 |
Germany 1.40% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | 15,814 | 19,099 |
Italy 1.3-4.5% | ||
Borrowings | ||
Loans, excluding accrued interest | € 367 | € 757 |
Italy 1.3-4.5% | Minimum | ||
Borrowings | ||
Nominal interest rate | 1.30% | 1.30% |
Italy 1.3-4.5% | Maximum | ||
Borrowings | ||
Nominal interest rate | 4.50% | 4.50% |
Italy 1.3-4.5% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 340 | € 729 |
Italy 4.5% | ||
Borrowings | ||
Nominal interest rate | 4.50% | 4.50% |
Loans, excluding accrued interest | € 434 | € 500 |
Italy 4.5% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | 421 | 489 |
France 0.00% - 0.55% | ||
Borrowings | ||
Loans, excluding accrued interest | € 27,876 | € 10,742 |
France 0.00% - 0.55% | Minimum | ||
Borrowings | ||
Nominal interest rate | 0% | 0% |
France 0.00% - 0.55% | Maximum | ||
Borrowings | ||
Nominal interest rate | 0.55% | 0.55% |
France 0.00% - 0.55% | Fair value disclosed | ||
Borrowings | ||
Loans, excluding accrued interest | € 23,216 | € 10,038 |
Financial instruments - Loan _2
Financial instruments - Loan liabilities - Additional information (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 29, 2022 |
Borrowings | |||
Accrued short-term interest | € 1,193 | € 1,092 | |
Unutilized lines of credit | 141,086 | 245,509 | |
Loans, excluding accrued interest | 435,865 | € 328,759 | |
Facility with European Investment Bank | |||
Borrowings | |||
Notional amount | 150,000 | € 150,000 | |
Loans, excluding accrued interest | € 93,290 |
Financial instruments - Carryin
Financial instruments - Carrying amounts of lease liabilities and the movements (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financial instruments | |||
Amount beginning of the year | € 176,823 | € 150,437 | |
Foreign currency Translation | (958) | (923) | |
Additions | 33,975 | 38,784 | |
Business combination | 3,962 | ||
Disposals | (4,086) | (232) | |
Accretion of interest | 5,831 | 3,841 | € 3,728 |
Payments | (22,446) | (19,046) | |
Amount end of the year | € 189,140 | € 176,823 | € 150,437 |
Financial instruments - Lease l
Financial instruments - Lease liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | |||
Current portion of lease obligations | € 19,115 | € 14,825 | |
Long-term lease obligations | 170,025 | 161,998 | |
Total lease liabilities | € 189,140 | € 176,823 | € 150,437 |
Financial instruments - Lease a
Financial instruments - Lease amounts recognized in profit and loss (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financial instruments | |||
Cash outflows for leases | € 22,446 | € 19,046 | € 20,665 |
Depreciation expense of right-of-use assets | 21,075 | 18,659 | 15,829 |
Interest expense on lease liability | 5,831 | 3,841 | 3,728 |
Expense relating to short-term leases | 236 | 476 | 839 |
Expense for leases on an asset of low value | 62 | 50 | 56 |
Total amount recognized in profit or loss | € 27,205 | € 23,026 | € 20,452 |
Financial instruments - Reconci
Financial instruments - Reconciliation of cash flows from financing activities to the changes in financial liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Liabilities from financing activities | ||||
Proceeds from issuance of loans | € 219,923 | € 30,791 | ||
Repayment | (112,880) | € (34,067) | (16,018) | |
Interest paid | [1] | (12,853) | (5,731) | (5,423) |
Loans | ||||
Liabilities from financing activities | ||||
Balance at the beginning of year | 329,851 | 362,480 | ||
Proceeds from issuance of loans | 219,923 | |||
Repayment | (112,880) | (34,067) | ||
Interest paid | (12,853) | (5,731) | ||
Cashflow from financing activities | 94,189 | (39,798) | ||
Interest expense | 11,739 | 9,083 | ||
Change in accrued interest and other | 1,279 | (1,914) | ||
Balance at the end of year | 437,058 | 329,851 | 362,480 | |
Lease obligations | ||||
Liabilities from financing activities | ||||
Balance at the beginning of year | 176,823 | 150,438 | ||
Repayment | (22,446) | (19,046) | ||
Cashflow from financing activities | (22,446) | (19,046) | ||
Disposal of finance lease obligation | (4,086) | (232) | ||
Foreign currency translation | (958) | (1,120) | ||
Change in accrued interest and other | 5,831 | 4,068 | ||
Issue of finance lease obligation | 33,975 | 42,716 | ||
Balance at the end of year | 189,140 | 176,823 | 150,438 | |
Bonds | ||||
Liabilities from financing activities | ||||
Balance at the beginning of year | 3 | 3 | ||
Balance at the end of year | € 3 | € 3 | € 3 | |
[1] Interest received and interest paid have been reallocated from the operating cash flow to the investing cash flow and the financing cash flow, respectively. Hence, the previous year figures deviate from the figures published in the annual report 2022. The change was made to provide a clearer picture of the financial position. |
Financial instruments - Current
Financial instruments - Current financial liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Financial instruments | |||
Current financial liabilities | [1] | € 149,096 | € 23,468 |
Current loan liabilities | 129,971 | 1,556 | |
Current portion of lease obligations | 19,115 | 14,825 | |
Other current financial liabilities | € 10 | € 7,087 | |
[1] In the annual report 2023, the positions current loan liabilities, current portion of lease obligations and other current financial liabilities are aggregated in order to provide a clearer picture of the financial position. The previous year figures have been adjusted accordingly. |
Investments accounted for usi_3
Investments accounted for using the equity method (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 EUR (€) item | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | |
Investments | |||
Equity book value limit | € 10,000 | ||
Evotec's share of earnings limit | € 1,000 | ||
Number of investments classified as significant | item | 6 | ||
Number of investments classified as insignificant | item | 4 | ||
Balance at beginning | € 16,043 | € 13,068 | |
Investment | 7,838 | 18,940 | |
Share of profit in associate | (12,881) | (15,965) | |
Impairment | (7,875) | ||
Dividend earned | (424) | ||
Divestment | (970) | ||
Reclassification due to change of control | 1,341 | ||
Net book value at end | 3,071 | 16,043 | € 13,068 |
Current assets | 903,162 | 1,073,671 | |
Non-current assets | 1,349,306 | 1,183,576 | |
Current liabilities | 464,573 | 337,706 | |
Non-current liabilities | 667,987 | 732,357 | |
Revenues from 01 Jan to 31 Dec | 781,426 | 751,448 | 618,034 |
Net income 1 Jan to 31 Dec | (83,913) | (175,655) | 215,510 |
Autobahn Labs LLC | |||
Investments | |||
Balance at beginning | 1,371 | ||
Investment | 2,360 | 3,634 | |
Share of profit in associate | (3,730) | (2,263) | |
Net book value at end | 1,371 | ||
Current assets | 1,272 | 4,029 | |
Non-current assets | 727 | 6 | |
Current liabilities | 2,257 | 672 | |
Net income 1 Jan to 31 Dec | (10,667) | (6,144) | |
Breakpoint Therapeutics GmbH | |||
Investments | |||
Balance at beginning | 2,774 | ||
Share of profit in associate | (2,774) | ||
Net book value at end | 2,774 | ||
Current assets | 7,204 | ||
Non-current assets | 2 | ||
Current liabilities | 1,068 | ||
Non-current liabilities | 143 | ||
Net income 1 Jan to 31 Dec | (11,789) | ||
Centauri Therapeutics GmbH | |||
Investments | |||
Balance at beginning | |||
Investment | 3,455 | ||
Share of profit in associate | (309) | ||
Impairment | (3,336) | ||
Reclassification due to change of control | 2,369 | ||
Net book value at end | 2,179 | ||
Current assets | 9,451 | ||
Revenues from 01 Jan to 31 Dec | 597 | ||
Net income 1 Jan to 31 Dec | (3,448) | ||
Curexsys GmbH | |||
Investments | |||
Balance at beginning | 3,967 | 4,212 | |
Investment | 2,564 | ||
Share of profit in associate | (968) | (2,809) | |
Impairment | (2,999) | ||
Net book value at end | 3,967 | 4,212 | |
Current assets | 1,071 | 3,409 | |
Non-current assets | 421 | 484 | |
Current liabilities | 148 | 302 | |
Non-current liabilities | 85 | ||
Revenues from 01 Jan to 31 Dec | 15 | ||
Net income 1 Jan to 31 Dec | (2,176) | (6,940) | |
Dark Blue Therapeutics Ltd | |||
Investments | |||
Balance at beginning | 4,022 | 405 | |
Investment | 7,167 | ||
Share of profit in associate | (4,022) | (3,550) | |
Net book value at end | 4,022 | 405 | |
Current assets | 4,321 | 14,244 | |
Non-current assets | 248 | 32 | |
Current liabilities | 1,087 | 1,065 | |
Non-current liabilities | 9,098 | 8,208 | |
Net income 1 Jan to 31 Dec | (9,210) | 1,025 | |
Quantro Therapeutics GmbH, Wien, Austria | |||
Investments | |||
Balance at beginning | 2,047 | 1,307 | |
Investment | 1,250 | ||
Share of profit in associate | (194) | (510) | |
Net book value at end | 2,047 | 1,307 | |
Current assets | 613 | 4,392 | |
Non-current assets | 5,072 | 445 | |
Current liabilities | 2,902 | 1,666 | |
Non-current liabilities | 483 | ||
Revenues from 01 Jan to 31 Dec | 2,353 | 1,321 | |
Net income 1 Jan to 31 Dec | (890) | (797) | |
Topas Therapeutics GmbH | |||
Investments | |||
Balance at beginning | 405 | 1,497 | |
Investment | 2,023 | 1,821 | |
Share of profit in associate | (2,428) | (2,913) | |
Net book value at end | 405 | 1,497 | |
Current assets | 6,795 | ||
Current liabilities | 843 | ||
Net income 1 Jan to 31 Dec | (9,340) | ||
Tucana Biosciences Inc. | |||
Investments | |||
Balance at beginning | 2,325 | ||
Share of profit in associate | (775) | ||
Impairment | (579) | ||
Divestment | (970) | ||
Net book value at end | 2,325 | ||
Insignificant investments | |||
Investments | |||
Balance at beginning | 3,954 | ||
Share of profit in associate | (650) | ||
Impairment | (960) | ||
Dividend earned | (424) | ||
Reclassification due to change of control | (1,029) | ||
Net book value at end | 892 | 3,954 | |
Insignificant investments | |||
Investments | |||
Balance at beginning | € 4,231 | 2,873 | |
Investment | 2,505 | ||
Share of profit in associate | (1,147) | ||
Net book value at end | € 4,231 | € 2,873 |
Employment, Post-Employment B_3
Employment, Post-Employment Benefits and Share Compensation Plans - Additional Information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United Kingdom | |||
Employment, Post-Employment Benefits and Share Compensation Plans | |||
Pension charge for the year | € 3,926 | € 3,346 | |
United States | |||
Employment, Post-Employment Benefits and Share Compensation Plans | |||
Pension charge for the year | 1,784 | 575 | |
Germany | |||
Employment, Post-Employment Benefits and Share Compensation Plans | |||
Provisions | 645 | 722 | |
France | |||
Employment, Post-Employment Benefits and Share Compensation Plans | |||
Provisions | 14,872 | € 14,499 | € 15,310 |
Past service costs | € 830 | ||
France | Maximum | |||
Employment, Post-Employment Benefits and Share Compensation Plans | |||
Retirement Age | 63 years | ||
France | Minimum | |||
Employment, Post-Employment Benefits and Share Compensation Plans | |||
Retirement Age | 65 years |
Employment, Post-Employment B_4
Employment, Post-Employment Benefits and Share Compensation Plans - Movement in employee benefit obligations (Details) - France - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of net defined benefit liability (asset) | ||
As of January 1 | € (14,499) | € (15,310) |
Benefit payments from the employer | 617 | 749 |
Current service cost | (1,266) | (1,361) |
Past service costs | 830 | |
Operating costs, net | (436) | (1,361) |
Interest expense (income) | (428) | (116) |
Amount recognized in the Income Statement | (864) | (1,478) |
(Gain)/loss from change in demographic assumptions | (12) | (11) |
(Gain)/loss from change in financial assumptions | (105) | 2,033 |
(Gain)/loss from experience | (8) | (483) |
Amounts recognized in Other Comprehensive Income | (125) | 1,539 |
As of December 31 | € (14,872) | € (14,499) |
Employment, Post-Employment B_5
Employment, Post-Employment Benefits and Share Compensation Plans - Assumptions used for calculation of employee benefit plan (Details) - France | Dec. 31, 2023 | Dec. 31, 2022 |
Employment, Post-Employment Benefits and Share Compensation Plans | ||
Discount Rate | 3.25% | 3.35% |
Salary Increase | 3% | 3% |
Employment, Post-Employment B_6
Employment, Post-Employment Benefits and Share Compensation Plans - Actuarial interest rate (Details) - France - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employment, Post-Employment Benefits and Share Compensation Plans | ||
Increase in assumption | 0.50% | 0.50% |
Decrease in assumption | (0.50%) | (0.50%) |
Weighted average duration of the pension plan | 9 years 1 month 6 days | 9 years 1 month 6 days |
Average duration of the long service awards | 12 years 6 months | 12 years 6 months |
Expected service costs for next year | € 1,389 | |
Discount rate | ||
Employment, Post-Employment Benefits and Share Compensation Plans | ||
Change of relating pension provision due to increase in assumption | 648 | € 598 |
Change of relating pension provision due to decrease in assumption | (702) | € (645) |
Salary increase | ||
Employment, Post-Employment Benefits and Share Compensation Plans | ||
Change of relating pension provision due to increase in assumption | (701) | |
Change of relating pension provision due to decrease in assumption | € 652 |
Employment, Post-Employment B_7
Employment, Post-Employment Benefits and Share Compensation Plans - Share performance awards (Details) | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2023 | Mar. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Dec. 31, 2023 USD ($) shares EquityInstruments item Y € / shares | Dec. 31, 2022 EquityInstruments | Dec. 31, 2021 EquityInstruments | Feb. 14, 2023 | |
Employment, Post-Employment Benefits and Share Compensation Plans | ||||||||
Contribution per share | € / shares | € 1 | |||||||
Restricted Share Awards | ||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | ||||||||
Number of subscription rights to shares | item | 1 | |||||||
Restricted Share Awards | Restricted Share Plan 2020 | ||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | ||||||||
Number of bearer shares that may be granted | 1,200,000 | |||||||
Vesting period | 4 years | |||||||
Maximum exercise period for share-based payments | 5 years | |||||||
Threshold number of consecutive calendar years for achievement of targets | Y | 4 | |||||||
Assumed fluctuation of share price, share units granted | 5% | 5% | 5% | |||||
Share Performance Awards | ||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | ||||||||
Number of subscription rights to shares | item | 2 | |||||||
Number of shares to which one subscription right entitles | 1 | |||||||
Number of share units granted | EquityInstruments | 1,489,411 | 468,706 | 608,710 | |||||
Share Performance Awards | Share Performance Plan 2017 and 2022 | ||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | ||||||||
Number of trading days for exercise of shares | 10 days | |||||||
Holding period for share-based payments | 4 years | |||||||
Threshold number of consecutive calendar years for achievement of targets | Y | 4 | |||||||
Number of key performance indicators in share-based payments | item | 2 | |||||||
Share Performance Awards | Share Performance Plan 2017 | ||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | ||||||||
Number of bearer shares that may be granted | 6,000,000 | |||||||
Share Performance Awards | Share Performance Plan 2022 | ||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | ||||||||
Number of bearer shares that may be granted | 6,000,000 | |||||||
Assumed fluctuation of share price, share units granted | 5% | |||||||
Restricted Share Units | U.S. Restricted Share Unit Plan | ||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | ||||||||
Number of ordinary shares represented by each ADS | 0.5 | |||||||
Number of share units granted | 603.161 | |||||||
Fair value of share units granted | $ | € 9.50 | |||||||
Assumed fluctuation of share price, share units granted | 5% |
Employment, Post-Employment B_8
Employment, Post-Employment Benefits and Share Compensation Plans - Status of the Share Performance Plans (Details) | 12 Months Ended | ||
Dec. 31, 2023 EquityInstruments € / shares shares | Dec. 31, 2022 EquityInstruments € / shares shares | Dec. 31, 2021 EquityInstruments € / shares shares | |
Employment, Post-Employment Benefits and Share Compensation Plans | |||
Exercised SPAs | € 1 | € 1 | |
Share Performance Awards | |||
Employment, Post-Employment Benefits and Share Compensation Plans | |||
Outstanding at beginning of the year | EquityInstruments | 1,505,000 | 1,325,000 | 1,570,000 |
SPAs granted | EquityInstruments | 1,489,411 | 468,706 | 608,710 |
Exercised SPAs | EquityInstruments | (233,000) | (209,000) | (701,000) |
Expired SPAs | EquityInstruments | (80,000) | (152,000) | |
Outstanding at end of the year | EquityInstruments | 2,761,000 | 1,505,000 | 1,325,000 |
Outstanding at beginning of the year | € 1 | € 1 | € 1 |
SPAs granted | 1 | 1 | 1 |
Exercised SPAs | 1 | 1 | 1 |
Expired SPAs | 1 | 1 | 1 |
Outstanding at the end of the year | 1 | 1 | 1 |
Thereof exercisable | 1 | 1 | 1 |
Weighted average share price | € 19.38 | € 34.27 | € 37.97 |
Number of shares issued on exercise of awards | shares | 233,083 | 344,458 | 1,195,954 |
Share Performance Awards | Management Board | |||
Employment, Post-Employment Benefits and Share Compensation Plans | |||
SPAs granted | EquityInstruments | 227,555 | 139,229 | 160,048 |
Employment, Post-Employment B_9
Employment, Post-Employment Benefits and Share Compensation Plans - Inputs into the Monte-Carlo-Simulation model (Details) € / shares in Units, € in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2023 € / shares | Mar. 31, 2023 € / shares | Oct. 31, 2022 € / shares | May 31, 2022 € / shares | Jan. 31, 2022 € / shares | Oct. 31, 2021 € / shares | May 31, 2021 € / shares | Feb. 28, 2021 € / shares | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | |
Share Performance Awards and Restricted Share Awards Plans | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Stock compensation expense | € | € 9,630 | € 9,919 | € 7,805 | ||||||||
Restricted Share Awards | Restricted Share Plan 2020 | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Risk-free interest rate in % | 2.66% | 2.03% | 0.57% | (0.43%) | (0.57%) | ||||||
Volatility of the Evotec SE share in % | 45% | 51% | 45% | 35% | 40% | ||||||
Fluctuation in % | 5% | 5% | 5% | ||||||||
Exercise price in € | € 1 | € 1 | € 1 | € 1 | € 1 | ||||||
Share price on the day of issue in € | 16.79 | 19.47 | 25.26 | 44.98 | 35.49 | ||||||
Fair value in accordance with IFRS 2 on the date of issue per SPA of the Executive Board in € | 22.87 | 33.50 | |||||||||
Fair value in accordance with IFRS 2 on the date of issue per SPA of the executives in € | € 15.91 | € 18.57 | € 24.29 | € 43.96 | € 34.47 | ||||||
Restricted Share Awards | Restricted Share Plan 2020 | Minimum | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Fluctuation in % | 0% | 0% | |||||||||
Restricted Share Awards | Restricted Share Plan 2020 | Maximum | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Fluctuation in % | 5% | 5% | |||||||||
Share Performance Awards | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Expected dividend as percentage, share-based payments | 0% | ||||||||||
Share Performance Awards | Management Board | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Stock compensation expense | € | € 2,456 | 2,791 | 2,002 | ||||||||
Share Performance Awards | Minimum | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Expected life, share based-payments | 4 years | ||||||||||
Share Performance Awards | Maximum | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Expected life, share based-payments | 5 years | ||||||||||
Share Performance Awards | Share Performance Plan 2022 | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Risk-free interest rate in % | 2.84% | ||||||||||
Volatility of the Evotec SE share in % | 50% | ||||||||||
Volatility of the TecDAX index in %. | 24% | ||||||||||
Fluctuation in % | 5% | ||||||||||
Exercise price in € | € 1 | ||||||||||
Share price on the day of issue in € | € 16.67 | ||||||||||
TecDAX index price on the day of issue in points | 3,202.25 | ||||||||||
Fair value in accordance with IFRS 2 on the date of issue per SPA of the Executive Board in € | € 12.36 | ||||||||||
Fair value in accordance with IFRS 2 on the date of issue per SPA of the executives in € | € 17.07 | ||||||||||
Share Performance Awards | Share Performance Plan 2017 | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Risk-free interest rate in % | (0.46%) | (0.78%) | |||||||||
Volatility of the Evotec SE share in % | 37% | 42% | |||||||||
Volatility of the TecDAX index in %. | 17% | 29% | |||||||||
Exercise price in € | € 1 | € 1 | |||||||||
Share price on the day of issue in € | € 34.90 | € 32.25 | |||||||||
TecDAX index price on the day of issue in points | 3,411.87 | 3,375.67 | |||||||||
Fair value in accordance with IFRS 2 on the date of issue per SPA of the Executive Board in € | € 31.30 | € 31.34 | |||||||||
Fair value in accordance with IFRS 2 on the date of issue per SPA of the executives in € | € 33.66 | € 36.65 | |||||||||
Share Performance Awards | Share Performance Plan 2017 | Minimum | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Fluctuation in % | 0% | 0% | |||||||||
Share Performance Awards | Share Performance Plan 2017 | Maximum | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Fluctuation in % | 5% | 5% | |||||||||
Option Plans | |||||||||||
Employment, Post-Employment Benefits and Share Compensation Plans | |||||||||||
Stock compensation expense | € | € 0 | € 0 | € 0 |
Provisions (Details)
Provisions (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Provisions | ||
Current provisions | € 45,165 | € 54,410 |
Non-current provisions | 16,063 | 16,427 |
Other personnel expenses | ||
Provisions | ||
Current provisions | 41,490 | 47,490 |
Non-current provisions | 2,164 | 1,209 |
Pensions | ||
Provisions | ||
Current provisions | 2,184 | 1,730 |
Non-current provisions | 11,985 | 12,531 |
Other provisions | ||
Provisions | ||
Current provisions | 1,491 | 5,190 |
Non-current provisions | € 1,913 | € 2,687 |
Provisions - Development of Tot
Provisions - Development of Total Provisions (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Provisions | ||
Balance at beginning of period | € 70,837 | € 57,281 |
Business combination | 1,259 | |
Consumption | 39,596 | 25,837 |
Release | 16,025 | 7,960 |
Foreign exchange | (80) | (2,600) |
Additions | 46,091 | 48,694 |
Balance at end of period | 61,228 | 70,837 |
Other personnel expenses | ||
Provisions | ||
Balance at beginning of period | 48,699 | 36,012 |
Business combination | 419 | |
Consumption | 37,851 | 23,105 |
Release | 10,858 | 3,374 |
Foreign exchange | 91 | (2,525) |
Additions | 43,573 | 41,272 |
Balance at end of period | 43,654 | 48,699 |
Pensions | ||
Provisions | ||
Balance at beginning of period | 14,261 | 14,428 |
Business combination | 553 | |
Consumption | 735 | 1,629 |
Release | 579 | 1,404 |
Foreign exchange | 8 | (12) |
Additions | 1,215 | 2,325 |
Balance at end of period | 14,170 | 14,261 |
Other provisions | ||
Provisions | ||
Balance at beginning of period | 7,877 | 6,841 |
Business combination | 287 | |
Consumption | 1,011 | 1,103 |
Release | 4,588 | 3,182 |
Foreign exchange | (179) | (63) |
Additions | 1,303 | 5,097 |
Balance at end of period | € 3,404 | € 7,877 |
Provisions - Additional Informa
Provisions - Additional Information (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Provisions. | ||
Bonus accrual | € 13,817 | € 26,704 |
Accrued vacation | 18,454 | 16,637 |
Earn-out provision | 311 | 306 |
Audit fee provision | 1,964 | 2,111 |
Maintenance fee provision | € 376 | € 1,483 |
Financial Risk Management (Deta
Financial Risk Management (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 29, 2022 | Dec. 31, 2021 |
Carrying amount | ||||
Loans | € (437,058) | € (329,851) | ||
Lease obligations | (189,140) | (176,823) | € (150,437) | |
Contingent consideration | (311) | (306) | ||
Trade accounts payable | (134,319) | (97,277) | ||
Other financial liabilities | (23,960) | (17,871) | ||
Total non-derivative financial liabilities | (784,787) | (622,128) | ||
Interest rate swaps/FX forwards | (193) | (7,358) | ||
Total derivative financial liabilities | (193) | (7,358) | ||
Non-derivative financial liabilities | ||||
Loans | (448,999) | (345,522) | ||
Lease obligations | (204,291) | (186,894) | ||
Contingent consideration | (334) | (372) | ||
Trade accounts payable | (134,319) | (97,277) | ||
Other financial liabilities | (23,960) | (17,871) | ||
Total non-derivative financial liabilities | (811,902) | (647,936) | ||
Derivative financial liabilities | ||||
Interest rate swaps/FX forwards | (193) | (7,358) | ||
Total derivative financial liabilities | (193) | (7,358) | ||
Due in 1 year | ||||
Non-derivative financial liabilities | ||||
Loans | (133,666) | (7,266) | ||
Lease obligations | (23,476) | (19,422) | ||
Contingent consideration | (334) | (76) | ||
Trade accounts payable | (134,319) | (97,277) | ||
Other financial liabilities | (22,572) | (16,894) | ||
Total non-derivative financial liabilities | (314,368) | (140,935) | ||
Derivative financial liabilities | ||||
Interest rate swaps/FX forwards | (60) | (6,965) | ||
Total derivative financial liabilities | (60) | (6,965) | ||
Due in 2 - 5 years | ||||
Non-derivative financial liabilities | ||||
Loans | (159,790) | (272,749) | ||
Lease obligations | (91,682) | (78,152) | ||
Contingent consideration | (291) | |||
Other financial liabilities | (1,387) | (977) | ||
Total non-derivative financial liabilities | (252,860) | (352,168) | ||
Derivative financial liabilities | ||||
Interest rate swaps/FX forwards | (133) | (393) | ||
Total derivative financial liabilities | (133) | (393) | ||
More than 5 years | ||||
Non-derivative financial liabilities | ||||
Loans | (155,542) | (65,507) | ||
Lease obligations | (89,132) | (89,320) | ||
Contingent consideration | (5) | |||
Total non-derivative financial liabilities | (244,674) | € (154,832) | ||
Facility with European Investment Bank | ||||
Risks | ||||
Notional amount | € 150,000 | € 150,000 |
Financial Risk Management - Cur
Financial Risk Management - Currency risks (Details) | 12 Months Ended | |||||
Dec. 31, 2023 € / $ | Dec. 31, 2023 € / £ € / $ | Dec. 31, 2022 € / $ | Dec. 31, 2022 € / £ € / $ | Dec. 31, 2023 € / £ | Dec. 31, 2022 € / £ | |
Financial Risk Management | ||||||
Average currency rates | 0.92484 | 1.149707 | 0.9496 | 1.1727 | ||
Currency rates | 0.9050 | 0.9050 | 0.9376 | 0.9376 | 1.1507 | 1.1275 |
Financial Risk Management - Ana
Financial Risk Management - Analysis of financial instruments (Details) - Currency risks - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
USD | |||
Financial instruments | |||
Percentage strengthening in rate | 10% | 10% | 10% |
Percentage weakening in rate | (10.00%) | (10.00%) | (10.00%) |
Variance in equity from strengthening in rate | € 16,699 | € 31,007 | € 42,053 |
Variance in equity from weakening in rate | (16,699) | (31,007) | (42,053) |
Variance in profit and loss from strengthening in rate | 16,699 | 31,007 | 42,053 |
Variance in profit and loss from weakening in rate | € (16,699) | € (31,007) | € (42,053) |
GBP | |||
Financial instruments | |||
Percentage strengthening in rate | 10% | 10% | 10% |
Percentage weakening in rate | (10.00%) | (10.00%) | (10.00%) |
Variance in equity from strengthening in rate | € 5,278 | € 3,967 | € 6,643 |
Variance in equity from weakening in rate | (5,278) | (3,967) | (6,643) |
Variance in profit and loss from strengthening in rate | 5,278 | 3,967 | 6,643 |
Variance in profit and loss from weakening in rate | € (5,278) | € (3,967) | € (6,643) |
EUR | |||
Financial instruments | |||
Percentage strengthening in rate | 10% | 10% | 10% |
Percentage weakening in rate | (10.00%) | (10.00%) | (10.00%) |
Variance in equity from strengthening in rate | € 21,977 | € 34,974 | € 48,699 |
Variance in equity from weakening in rate | (21,977) | (34,974) | (48,699) |
Variance in profit and loss from strengthening in rate | 21,977 | 34,974 | 48,699 |
Variance in profit and loss from weakening in rate | € (21,977) | € (34,974) | € (48,699) |
Financial Risk Management (De_2
Financial Risk Management (Details) - Currency risks - Foreign currency forward contracts € in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Financial instruments | ||||||
Gains and losses from the fair value accounting related to foreign currency derivatives | € | € 8,360 | € 9,424 | € (12,410) | |||
Cash flows economically hedged, amount | $ 233,000 | $ 394,039 | $ 344,830 | |||
EUR | ||||||
Financial instruments | ||||||
Cash flows economically hedged, amount | 173,000 | 349,639 | 300,430 | |||
GBP | ||||||
Financial instruments | ||||||
Cash flows economically hedged, amount | € 3,900 | € 8,400 | € 8,400 | $ 60,000 | $ 44,400 | $ 44,400 |
Financial Risk Management - Int
Financial Risk Management - Interest rate risks (Details) - Variable interest rates - Interest rate risks - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | |||
Variable interest rate increase | 1% | 1% | 1% |
Variable interest rate decrease | (1.00%) | (1.00%) | (1.00%) |
Impact on fair value of instrument from increase in assumption | € 3,794 | € 3,014 | € 2,570 |
Impact on fair value of instrument from decrease in assumption | € (2,495) | € (1,714) | € (827) |
Financial Risk Management - I_2
Financial Risk Management - Interest rate swaps hedge (Details) € in Thousands | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Jun. 30, 2019 EUR (€) item |
Financial instruments | |||
Current valuation | € (193) | € (7,358) | |
Interest rate swap | Interest rate risks | |||
Financial instruments | |||
Number of swaps entered | item | 2 | ||
Notional amount | € 48,250 | ||
Current valuation | € (183) | ||
Interest rate swap one | Interest rate risks | |||
Financial instruments | |||
Borrowings, swapped fixed rate | 0.17% | ||
Interest rate swap two | Interest rate risks | |||
Financial instruments | |||
Borrowings, swapped fixed rate | 0.24% |
Financial Risk Management - Cre
Financial Risk Management - Credit risks (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
One customer | ||
Credit risk | ||
Receivables percentage | 6% | 22% |
Trade accounts receivables | ||
Credit risk | ||
Maximum exposure to credit risk | € 96,233 | € 168,653 |
Trade accounts receivables | United States | ||
Credit risk | ||
Maximum exposure to credit risk | 38,709 | 92,034 |
Trade accounts receivables | France | ||
Credit risk | ||
Maximum exposure to credit risk | 7,107 | 24,429 |
Trade accounts receivables | United Kingdom | ||
Credit risk | ||
Maximum exposure to credit risk | 15,600 | 20,451 |
Trade accounts receivables | Germany | ||
Credit risk | ||
Maximum exposure to credit risk | 8,699 | 7,767 |
Trade accounts receivables | Rest of Europe | ||
Credit risk | ||
Maximum exposure to credit risk | 12,990 | 13,622 |
Trade accounts receivables | Rest of the world | ||
Credit risk | ||
Maximum exposure to credit risk | 13,129 | 10,350 |
Contract assets | ||
Credit risk | ||
Maximum exposure to credit risk | € 25,000 | € 30,516 |
Financial Risk Management - Cap
Financial Risk Management - Capital management risk (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Risk Management | ||
Balance sheet total | € 2,252,468 | € 2,257,247 |
Equity attributable to the shareholders of Evotec SE | € 1,119,908 | € 1,187,184 |
Equity ratio (in %) | 49.70% | 52.60% |
Net cash | € (115,289) | € (91,518) |
Fair Value of financial asset_3
Fair Value of financial assets and liabilities - Financial assets and liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial instruments | ||
Carrying amount, liabilities | € (762,408) | € (941,650) |
Fair value, liabilities | (705,554) | (919,929) |
Level 1 | ||
Financial instruments | ||
Fair value, liabilities | (193) | |
Level 2 | ||
Financial instruments | ||
Fair value, liabilities | (7,358) | |
Level 3 | ||
Financial instruments | ||
Fair value, liabilities | (311) | (306) |
At fair value | ||
Financial instruments | ||
Carrying amount, assets | 466,459 | 429,662 |
Fair value, assets | 466,459 | 429,662 |
Carrying amount, liabilities | (504) | (7,358) |
Fair value, liabilities | (504) | (7,358) |
At fair value | Level 1 | ||
Financial instruments | ||
Fair value, assets | 410,451 | 367,572 |
Fair value, liabilities | (193) | |
At fair value | Level 2 | ||
Financial instruments | ||
Fair value, assets | 15,680 | 8,215 |
Fair value, liabilities | (7,358) | |
At fair value | Level 3 | ||
Financial instruments | ||
Fair value, assets | 40,328 | 53,875 |
Fair value, liabilities | (311) | |
At fair value | Derivative financial instruments | ||
Financial instruments | ||
Carrying amount, liabilities | (193) | (7,358) |
Fair value, liabilities | (193) | (7,358) |
At fair value | Derivative financial instruments | Level 1 | ||
Financial instruments | ||
Fair value, liabilities | (193) | |
At fair value | Derivative financial instruments | Level 2 | ||
Financial instruments | ||
Fair value, liabilities | (7,358) | |
At fair value | FVTPL | ||
Financial instruments | ||
Carrying amount, liabilities | (311) | (306) |
Fair value, liabilities | (311) | (306) |
At fair value | FVTPL | Level 3 | ||
Financial instruments | ||
Fair value, liabilities | (311) | (306) |
At fair value | FVTPL | Contingent consideration | ||
Financial instruments | ||
Carrying amount, liabilities | (311) | (306) |
Fair value, liabilities | (311) | (306) |
At fair value | FVTPL | Contingent consideration | Level 3 | ||
Financial instruments | ||
Fair value, liabilities | (311) | (306) |
At fair value | Derivative financial instruments | ||
Financial instruments | ||
Carrying amount, assets | 6,137 | 8,215 |
Fair value, assets | 6,137 | 8,215 |
At fair value | Derivative financial instruments | Level 2 | ||
Financial instruments | ||
Fair value, assets | 6,137 | 8,215 |
At fair value | FVTPL | ||
Financial instruments | ||
Carrying amount, assets | 131,288 | 124,008 |
Fair value, assets | 131,288 | 124,008 |
At fair value | FVTPL | Level 1 | ||
Financial instruments | ||
Fair value, assets | 81,417 | 70,133 |
At fair value | FVTPL | Level 2 | ||
Financial instruments | ||
Fair value, assets | 9,543 | |
At fair value | FVTPL | Level 3 | ||
Financial instruments | ||
Fair value, assets | 40,328 | 53,875 |
At fair value | FVTPL | Equity instruments | ||
Financial instruments | ||
Carrying amount, assets | 128,109 | 122,477 |
Fair value, assets | 128,109 | 122,477 |
At fair value | FVTPL | Equity instruments | Level 1 | ||
Financial instruments | ||
Fair value, assets | 81,417 | 70,133 |
At fair value | FVTPL | Equity instruments | Level 2 | ||
Financial instruments | ||
Fair value, assets | 9,543 | |
At fair value | FVTPL | Equity instruments | Level 3 | ||
Financial instruments | ||
Fair value, assets | 37,149 | 52,344 |
At fair value | FVTPL | Other financial assets | ||
Financial instruments | ||
Carrying amount, assets | 3,179 | 1,531 |
Fair value, assets | 3,179 | 1,531 |
At fair value | FVTPL | Other financial assets | Level 3 | ||
Financial instruments | ||
Fair value, assets | 3,179 | 1,531 |
At fair value | FVTPL | Convertible loans granted to long-term investments | ||
Financial instruments | ||
Carrying amount, assets | 3,179 | 1,531 |
At fair value | FVTOCI | ||
Financial instruments | ||
Carrying amount, assets | 329,034 | 297,439 |
Fair value, assets | 329,034 | 297,439 |
At fair value | FVTOCI | Level 1 | ||
Financial instruments | ||
Fair value, assets | 329,034 | 297,439 |
At fair value | FVTOCI | Equity instruments | ||
Financial instruments | ||
Carrying amount, assets | 7,484 | 8,565 |
Fair value, assets | 7,484 | 8,565 |
At fair value | FVTOCI | Equity instruments | Level 1 | ||
Financial instruments | ||
Fair value, assets | 7,484 | 8,565 |
At fair value | FVTOCI | Short term investments | ||
Financial instruments | ||
Carrying amount, assets | 321,550 | 288,874 |
Fair value, assets | 321,550 | 288,874 |
At fair value | FVTOCI | Short term investments | Level 1 | ||
Financial instruments | ||
Fair value, assets | 321,550 | 288,874 |
At fair value | FVTOCI | Current financial assets | ||
Financial instruments | ||
Carrying amount, assets | 83,203 | 105,334 |
At fair value | FVTOCI | Money market funds | ||
Financial instruments | ||
Carrying amount, assets | 238,346 | 183,540 |
At (amortized) cost | ||
Financial instruments | ||
Carrying amount, liabilities | (761,904) | (933,986) |
Fair value, liabilities | (705,050) | (912,265) |
At (amortized) cost | Trade account payables | ||
Financial instruments | ||
Carrying amount, liabilities | (134,319) | (97,278) |
Fair value, liabilities | (134,319) | (97,278) |
At (amortized) cost | Loans and borrowings | ||
Financial instruments | ||
Carrying amount, liabilities | (437,058) | (329,851) |
Fair value, liabilities | (380,204) | (308,130) |
At (amortized) cost | Other liabilities | ||
Financial instruments | ||
Carrying amount, liabilities | (190,527) | (177,800) |
Fair value, liabilities | € (190,527) | € (177,800) |
Fair Value of financial asset_4
Fair Value of financial assets and liabilities - 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, 2023 | Dec. 31, 2022 | |
Other investments | ||
Balance at the beginning | € 2,257,247 | |
Balance at the end | 2,252,468 | € 2,257,247 |
Level 3 | Contingent consideration | ||
Contingent consideration | ||
Balance at the beginning | (306) | (1,103) |
Addition | (14) | |
Fair Value Change | (5) | 811 |
Balance at the end | (311) | (306) |
Level 3 | Equity Instruments and other financial assets | ||
Other investments | ||
Balance at the beginning | 53,875 | 25,458 |
Addition | 14,028 | 25,846 |
Disposal | (3,523) | |
Transfer from Level 3 to Level 2 | (10,909) | |
Fair Value Change | (13,144) | 2,571 |
Balance at the end | € 40,328 | € 53,875 |
Fair Value of financial asset_5
Fair Value of financial assets and liabilities - Summary for the fair value of the level 3 hierarchy, possible alternative assumptions of significant unobservable inputs (Details) - Level 3 - Contingent consideration - Discount rate - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
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 | € (3) | € (7) |
Increase (decrease) in net result due to decrease in input | € 3 | € 7 |
Shareholder's Equity - Raised C
Shareholder's Equity - Raised Capital (Details) - € / shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Shareholder's Equity | ||||
Number of shares issued | 177,185,736 | 176,953,000 | 176,608,000 | 163,915,000 |
Number of shares outstanding | 177,185,736 | |||
Nominal amount per share | € 1 |
Shareholder's Equity - Addition
Shareholder's Equity - Additional information (Details) - EUR (€) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shareholder's Equity | ||||
Exercise price for SPAs exercised | € 1 | € 1 | ||
Shares available to issue | 47,931,023 | |||
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 Stock Option Plans | ||||
Shareholder's Equity | ||||
Shares available to issue | 12,540,493 | |||
Holders or creditors of convertible bonds and/or bonds with warrants, profit participation rights and/or income bonds | ||||
Shareholder's Equity | ||||
Shares available to issue | 35,390,530 |
Earnings per share - Weighted a
Earnings per share - Weighted average number of ordinary shares (Details) - shares | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share | ||||
Number of shares issued | 177,185,736 | 176,953,000 | 176,608,000 | 163,915,000 |
Treasury shares | (249,915) | (249,915) | (250,000) | (250,000) |
Effect of weighted average share capital increase | 1,953,000 | |||
Effect of weighted average share options exercised | 214,000 | 316,000 | 788,000 | |
Weighted average number of ordinary shares 31 December | 176,916,663 | 176,674,341 | 166,405,926 | |
Number of potentially dilutive shares to be issued from stock options and Share Performance Awards | 1,000,455 | 463,415 |
Commitments and contingencies -
Commitments and contingencies - Operating lease obligations (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
Future minimum lease payments under non-cancellable lease agreements but not yet commenced | € 53,640 | € 62,913 |
Less than one year | ||
Leases | ||
Future minimum lease payments under non-cancellable lease agreements but not yet commenced | 1,192 | 1,561 |
Between one and five years | ||
Leases | ||
Future minimum lease payments under non-cancellable lease agreements but not yet commenced | 14,304 | 16,373 |
More than five years | ||
Leases | ||
Future minimum lease payments under non-cancellable lease agreements but not yet commenced | € 38,144 | € 44,979 |
Commitments and contingencies_2
Commitments and contingencies - Other commitments and contingency (Details) € in Thousands | Dec. 31, 2023 EUR (€) |
Commitments and contingencies | |
Future minimum payments for miscellaneous long-term commitments | € 80,367 |
Contingent liabilities in relation with milestone-based commitments | 9,122 |
Purchase commitments | € 80,519 |
Related party transactions (Det
Related party transactions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related party transactions | |||
Sales of goods and services | € 16,661 | € 36,677 | € 28,868 |
Receivables from related parties | € 2,164 | € 4,071 | € 2,643 |
Auditor remuneration (Details)
Auditor remuneration (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Auditor's remuneration | ||
Audit Fees | € 4,088 | € 2,460 |
Audit-Related Fees | 60 | 43 |
Audit fees related to prior year audit | 1,504 | 402 |
All Other Fees | 77 | |
Total auditor's remuneration | 5,651 | € 2,982 |
Audit-related fees provided for audit of non-financial report including sustainability-related disclosures | € 60 |
Other disclosures - Number of e
Other disclosures - Number of employees (Details) - employee | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other disclosures | ||
Average number of people employed | 5,069 | 4,482 |
Average number of employees in sales and administration | 915 | 694 |
Average number of employees in operations | 4,154 | 3,788 |
Other disclosures - Subsidiarie
Other disclosures - Subsidiaries and other investments (Details) | Dec. 31, 2023 | Jul. 01, 2023 |
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% | |
NephThera GmbH, Hamburg, Germany | ||
Interests in other entities | ||
Voting rights % held in subsidiary | 100% | |
Percentage of interest acquired | 50% | |
Evotec Asia Pte. Ltd., Shenton, Singapore | ||
Interests in other entities | ||
Voting rights % held in subsidiary | 100% | |
Ananke Therapeutics Inc, Boston, United States | ||
Interests in other entities | ||
Voting rights % held in associates | 19.88% | |
Autobahn Labs, Palo Alto, United States | ||
Interests in other entities | ||
Voting rights % held in associates | 35.26% | |
Breakpoint Therapeutics GmbH, Hamburg, Germany | ||
Interests in other entities | ||
Voting rights % held in associates | 34.03% | |
Curexsys GmbH, Gttingen, Germany | ||
Interests in other entities | ||
Voting rights % held in associates | 43.44% | |
Dark Blue Therapeutics LTD, Oxford, United Kingdom | ||
Interests in other entities | ||
Voting rights % held in associates | 38.97% | |
Eternygen GmbH, Berlin, Germany | ||
Interests in other entities | ||
Voting rights % held in associates | 24.97% | |
Quantro Therapeutics GmbH, Wien, Austria | ||
Interests in other entities | ||
Voting rights % held in associates | 38.79% | |
Topas Therapeutics GmbH, Hamburg, Germany | ||
Interests in other entities | ||
Voting rights % held in associates | 23.61% | |
Centauri Therapeutics Ltd., Sandwich (Kent), United Kingdom | ||
Interests in other entities | ||
Voting rights % held in associates | 20.04% | |
Aeovian Pharmaceuticals Inc., San Francisco, United States | ||
Interests in other entities | ||
Voting rights % held in other investments | 3.51% | |
AgroBio SAS, Paris, France | ||
Interests in other entities | ||
Voting rights % held in other investments | 10.01% | |
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 | 17.94% | |
Cajal Neuroscience Inc., Seattle, USA | ||
Interests in other entities | ||
Voting rights % held in other investments | 1.52% | |
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 | 2.78% | |
Celmatix | ||
Interests in other entities | ||
Voting rights % held in other investments | 12.35% | |
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 | 2.83% | |
Exscientia plc (before: Exscientia Ltd.), Oxford, United Kingdom | ||
Interests in other entities | ||
Voting rights % held in other investments | 11.41% | |
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 | 8.83% | |
IMIDomics Inc., San Francisco, United States | ||
Interests in other entities | ||
Voting rights % held in other investments | 8.15% | |
Immunitas, Therapeutics, Inc., Waltham, United States | ||
Interests in other entities | ||
Voting rights % held in other investments | 5.58% | |
Leon Nanodrugs GmbH, Mnchen, Germany | ||
Interests in other entities | ||
Voting rights % held in other investments | 12.44% | |
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 | 15.33% | |
Pancella/Pluristyx | ||
Interests in other entities | ||
Voting rights % held in other investments | 5.69% | |
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 | 9.60% |
Other disclosures - Management
Other disclosures - Management board remunerations (Details) - Management Board € in Thousands | 12 Months Ended | |
Dec. 31, 2023 EUR (€) shares | Dec. 31, 2022 EUR (€) shares | |
Remuneration | ||
Fixed remuneration | € 2,954 | € 2,343 |
Variable remuneration | € 731 | € 1,579 |
Share Performance Awards (in units) | shares | 227,555 | 139,229 |
Fair values of SPAs granted | € 3,611 | € 4,580 |
Total remuneration | € 7,296 | € 8,502 |
Other disclosures - Supervisory
Other disclosures - Supervisory board remuneration (Details) - Supervisory Board - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Remuneration | ||
Remuneration | € 520 | € 504 |
Supervisory Board share-based compensation | 0 | 0 |
Members of Supervisory Board | ||
Remuneration | ||
Remuneration | 50 | 50 |
Chairperson of Supervisory Board | ||
Remuneration | ||
Remuneration | 125 | 125 |
Deputy Chairperson of Supervisory Board | ||
Remuneration | ||
Remuneration | 60 | 60 |
Members of Supervisory Board committees | ||
Remuneration | ||
Remuneration | 10 | 10 |
Chairperson of Supervisory Board committee | ||
Remuneration | ||
Remuneration | € 25 | € 25 |
Subsequent events (Details)
Subsequent events (Details) - EUR (€) € in Thousands | 12 Months Ended | |||||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 30, 2024 | Jun. 30, 2024 | |
Subsequent events | ||||||
Revenue | € 781,426 | € 751,448 | € 618,034 | |||
Adjusted EBITDA | 66,400 | |||||
Unpartnered R&D expenditures | € 64,800 | |||||
Reorganization | Reorganization provision | ||||||
Subsequent events | ||||||
Provisions | € (64,527) | |||||
Strategic financial arrangement | Syndicated loan facility | ||||||
Subsequent events | ||||||
Notional amount | € 250,000 | |||||
Issuance of updated guidance for next financial year | Forecast | Minimum | ||||||
Subsequent events | ||||||
Revenue | € 790,000 | |||||
Adjusted EBITDA | 15,000 | |||||
Unpartnered R&D expenditures | 50,000 | |||||
Issuance of updated guidance for next financial year | Forecast | Maximum | ||||||
Subsequent events | ||||||
Revenue | 820,000 | |||||
Adjusted EBITDA | 35,000 | |||||
Unpartnered R&D expenditures | € 60,000 |