Ladies and gentlemen, welcome to the Evotec SE third quarter and nine months 2026 results conference call. I am Sandra, the course co-operator. I would like to remind you that all participants have been listened only more than the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Sarah Fakih, Head of Corporate Communication and IR. Please go ahead. Thank you, Sandra.

Good morning, good afternoon and welcome to today's webcast and conference call. My name is Sarah Fakih and I'm the Head of Corporate Communications and Investor Relations at Evotec. Please allow me to introduce today's speakers. Joining me on the call are Christian Wojczewski, Chief Executive Officer of Evotec, and Claire Hinshelwood, our Chief Financial Officer. Please note that this call is being webcast live and will be archived in the event calendar on our website. Before we begin, a few forward-looking statements. The discussion and responses to your questions on this call reflect management's view as of today, Thursday, November 5th, 2026. During this call, we will make statements and provide responses that state our intentions, beliefs, expectations or projections regarding the future. These statements constitute forward-looking statements within the meaning of applicable securities laws. They are subject to risks and uncertainties and actual results may differ materially from those expressed or implied. Evotec disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. For further information regarding these risks and uncertainties, please refer to our public filings and disclosures. With this, let me hand over the call to Christiane.

Thank you, Sarah. Good morning and good afternoon to everyone. Thank you for joining today's call. The third quarter of 2026 showed encouraging progress after a challenging first half. We're beginning to see the different pieces of our transformation come together. and translate into improved business performance. Group revenues in Q3 were above both Q1 and Q2, mainly driven by stronger commercial execution in the DMPD-based business. At the same time, lower costs brought adjusted group EODA close to breakeven. The nine-month results still reflect the weaker first half, including slower sales-to-revenue conversion in DMPD and the Sandoz license contribution in JEP in the first quarter of 2025. Our commercial ramp up in DMPD is gaining traction. Net sales in the base business were up 24% for the first nine months year over year. In this shorter cycle of business, we're now beginning to see stronger commercial activity convert into revenue growth. In just Evotec Biologics, we're excited to confirm that Vertex Pharmaceuticals has selected us for the commercial manufacturing of ProV-TaseSept at our GPOD Redmond facility. This is an important step for JEP as we advance our continuous manufacturing platform toward commercial scale readiness. Alongside this progress, Horizon Execution is well on track. Our target is to deliver approximately 75 million euros in annual run rate savings by the end of 2027. For this year, we plan to deliver 20 to 30% of this target. By the end of September, we had already delivered more than 20% of the target, putting us ahead of plan. Footprint consolidation and workforce measures are starting to deliver tangible savings. while our focus on utilization and operational efficiency is supporting improved profitability. These developments give us greater confidence in the direction of the business. We reaffirm our full year 2026 guidance and based on our current visibility, expect revenue and adjusted ABDA to land toward the upper end of their respective ranges. Later in the call, we will provide greater detail on our mid-range framework through 2030. This will give you better visibility into the business and a clearer view of the path forward, including how we expect the business mix to evolve and support a structurally stronger earnings profile. But before we move into the detailed review of the third quarter and first nine months, I'd like to highlight an important transition in our scientific leadership. Science is at the core of Evotech, and I'm therefore very pleased to introduce Dr. Joanna Holbrook. Joanna joined Evotech as chief scientific officer and member of the management board on November 1st. She succeeded Cord Dohrmann, who left Evotech at the end of September. I'd like to take the opportunity to thank Cord for his many contributions over more than 16 years. He played an important role in building the scientific capabilities and innovation culture Evotech is known for. We're excited to have attracted a scientific leader of Joanna's caliber to Evotech. Joanna brings more than 25 years of international experience across pharma, biotech, and academia. Most recently, she held senior scientific leadership roles at Novo Nordisk, Previously, she served as Chief Scientific Officer at Biomodel. Joanna combines deep scientific expertise with a strong track record in applying new technologies and data-driven approaches to drug discovery and development. Her experience across different scientific environments, organizational structures, and cultures adds a broad perspective that will be particularly valuable as we continue to evolve evotec. As chief scientific officer, Joanna's focus will be clear. To strengthen our scientific profile and translate advances in data science, AI, and novel technologies into greater value for customers and partners. On slide six, let me continue with an overview of recent progress across selected partnerships. The most important development is in Just Iverdeck Biologics, where we confirm that Vertex Pharmaceuticals has selected JEP for the commercial manufacturing of povitacicept, Vertex Investigational Biologic Candidate for a Serious Kidney Disease. Alongside this exciting progress, we're adding a third manufacturing train at our J-Port Redmond facility next year. expanding manufacturing capacity for the next phase of JEP's growth. The additional capacity also positions us well to meet our manufacturing and supply commitments to Vertex. Furthermore, in our collaboration with the Department of War, JEP advanced the Orto-Pox virus antibody program into a phase one clinical trial, having progressed the program from sequence to clinical supply. In DMPD, we continue to broaden our partnered innovation activities. The first candidate from our sleep disorder discovery collaboration with Jazz Pharmaceuticals has advanced into phase one clinical trial. Further, new and recent collaborations span next-generation therapeutic oncology approaches with Plektronik and AI-enabled drug discovery with Odyssey Therapeutics. Let me now hand the call over to Claire for review of the Q3 and first nine-month 2026 financials.

Thank you, Christiane, and good morning and good afternoon to everyone. Looking at our income statement on slide seven, group revenues for the third quarter of 2026 amounted to €164.9 million, broadly stable compared with €163.9 million in the prior year period. At constant exchange rates, Q3 group revenues amounted to €164.2 million compared to €163.9 million in Q3 2025. The quarter benefited from stronger performance in the DnPD-based business, with the improvement particularly visible in Discovery and Cyprotex. This helped offset continued timing and conversion effects in other segments. For the first nine months, group revenues totaled €465 million, reflecting a 13.1% decrease year on year from €535.1 million. At constant exchange rates, group revenues declined by 10.8% to €477.4 million, compared with €535.1 million in 2025. The nine-month comparison reflects the weaker first half of the year. DNPD remained affected by the slower sales-to-revenue conversion, while JEB was impacted by delayed program activities and the $25 million Sanders license sale recognized in Q1 2025. Looking at the segments, DNPD revenues in Q3 were €120.1 million, down only 2.3% or €2.8 million from €122.9 million in the prior year quarter. At constant currencies, DNPD revenues totalled €119.6 million. For the first nine months, DNPD generated €348 million, representing an 11.2% decrease from €391.9 million in the prior year period. At constant exchange rates, DNPD revenues amounted to €355.5 million. Just Ebotype Biologics delivered Q3 revenues of 44.8 million euros, an increase of 9.4% from 41 million euros in the prior year quarter. At constant exchange rates, revenues amounted to 44.6 million euros. For the first nine months, GEB revenue totalled 117.1 million euros, representing an 18.2% decrease from 143.2 million euros in 2025. The year-on-year decrease was primarily driven by the non-recurring Sandoz license sale last year and delayed program activities. At constant exchange rates, revenues amounted to 121.9 million euros. R&D expenses decreased to 29.7 million euros in the first nine months or 6.4% of group revenue compared with 42.3 million euros or 7.9% in the prior year period. Turning to profitability, adjusted group EBITDA improved significantly in Q3 to minus 1.6 million euros from minus 15 million euros in the prior year quarter. bringing the group close to breakeven. The improvement was broad-based with significantly better Q3 adjusted EBITDA performance in both DNPD and GEB supported by improved revenue contribution and a lower cost base. At constant exchange rates, adjusted EBITDA was minus 1.7 million euros. For the first nine months, adjusted group EBITDA decreased to minus 44.3 million euros from minus 16.9 million euros in 2025. The results primarily reflects the lower nine months revenue base partially offset by lower cost of revenues. At constant exchange rates, adjusted EBITDA was minus 39.1 million euros. At segment level, DNPD adjusted EBITDA improved to minus 1 million euros in Q3 from minus 9.5 million euros in the prior year quarter. At constant exchange rates, adjusted EBITDA amounted to minus 1.4 million euros. DNPD adjusted EBITDA for the first nine months decreased to minus 25.5 million euros compared with minus 18.8 million euros in the first nine months of 2025. GEB adjusted EBITDA also improved significantly in the third quarter to minus 0.6 million euros from minus 5.5 million euros in Q3 2025. At constant exchange rates, adjusted EBITDA totals minus 0.3 million euros. For the first nine months, adjusted EBITDA was minus €18.8 million in 2026, compared with plus €1.9 million in the prior year period, which included the Sandoz license sale. At constant exchange rates, nine-month adjusted EBITDA totalled €19.3 million. Turning to liquidity under balance sheet on slide eight, total liquidity as of September 30th, 2026 stood at €401 million, representing a quarterly decrease of €65 million compared with €466 million at the end of the second quarter of 2026. We continue to operate from a solid balance sheet. Looking ahead, rigorous cash flow management remains a key priority, with a continued focus on optimising working capital and preserving the optionality in our liquidity structure. Our capital discipline is reflected in the substantial reduction in capex from the elevated levels of recent years, which we reduced to our goal of under 10% of revenue. This demonstrates our selective investment approach, focusing on areas where we see the strongest strategic relevance and value creation potential, while continuing the shift towards the more capital efficient operating model established under Horizon. One area of selective high value investment in 2027 will be just Evotec Biologics. As already mentioned, we are investing in a third manufacturing train as part of the next phase of growth at our JPOD Redmond facility. Initial capex has already been incurred in 2026, with the remainder of the investment expected in 2027. That said, we expect capex for 2027 to remain broadly in line with 2026. Within that envelope, the third train will represent our largest individual investment next year. The investment will expand our manufacturing capacity while benefiting from the lower capital intensity of our continuous manufacturing technology. The installation will require a planned temporary pause in manufacturing activity or dreadment. The associated near-term impact on 27 manufacturing revenues is already reflected within our mid-range plan, which Christiane will discuss later in this presentation. And with that, let me hand the call back to Christiane.

Thank you, Claire. Turning to commercial execution, over the past several quarters, we have shared leading commercial indicators to provide greater visibility into the development of our DMPD business. As shown on slide 9, these indicators continued to strengthen the first nine months of 2026. In the DMPD-based business, comprising standalone and integrated programs, net sales increased by 24% year-on-year, exceeding the respective prior year period in each of the first three quarters of 2026. The number of inbound leads increased by more than 45%, while proposal activity remained well above prior year levels and proposal turnaround time improved by approximately 20%. Our DMPD customer base also increased by approximately 10% compared with the first nine months of 2025. Importantly, we're now beginning to see stronger commercial activity translate into revenue in the shorter cycle-based business. Net sales generated during the first half are beginning to convert with a Q3 revenue improvement particularly visible in Discovery and Supertex. We are also seeing a healthy pipeline of new strategic partnership opportunities. Around 20 opportunities currently represent approximately €1 billion in total potential deal value. Our priority now is clear, maintain this momentum and translate it into sustainable growth. Turning to Horizon on slide 10, The transformation is making strong progress and remains ahead of plan. The structural measures are increasingly translating into tangible financial and operational results. Let me start with the financial impact. Our target is approximately 75 million euro in run rate savings by the end of 2027. For 2026, we plan to deliver 20-30% of that target. By the end of September, Horizon had already delivered more than 20%, putting us ahead of plan. These savings are visible across our cost base, including Cox and SG&A. Approximately half of the announced workforce reductions have been implemented, representing around 400 of the planned 800 positions. At the same time, footprint consolidation is on track, We expect three of the four planned site closures to be completed by year end, with a fourth to follow in the first quarter of 2027. Alongside these efficiency measures, we continue to reshape our scientific footprint around fewer, more focused areas of scientific excellence. The consolidation and transfer of capabilities across OMICS Infectious Diseases and Protein Science are well underway. Horizon is moving from implementation into tangible delivery and we remain on track to deliver the full structural benefit of the program by the end of 2027. Moving from our Q3 and first nine month 2026 perspective to our full year outlook. On slide 11, we are reaffirming the guidance we provided on July 13th, 2026. We expect group revenues on the range of 570 to 610 million euros on a reported basis and 595 to 635 million euros at constant exchange rates. Adjusted group ABDA is expected to land between minus 105 and minus 70 million euros or between minus 90 and minus 60 million euros at constant exchange rates. Based on our performance through the first nine months and our current visibility for the remainder of the year, we expect both revenue and adjusted ABDA to finish toward the upper end of their respective guidance ranges. This reflects the improved performance we saw in the third quarter while the assumptions underlying our July guidance update remain unchanged. Let me now zoom out one step further and on slide 12, turn to our mid-range framework through 2030, which we first announced in March this year. Our ambition is to generate around 1 billion euros in group revenues by 2030 with potential for additional upside. We further expect to achieve an adjusted ABDE margin of 20% by the end of 2028, rising above 20% by the end of 2030. As announced in our webcast on July 14, going forward, we intend to provide greater transparency on how we expect to reach this ambition. In particular, we would like to provide a clearer view of our principal revenue streams and their underlying economics. is similar across DMPD and JEP. Both segments have a base business providing a growing and increasingly productive foundation. Additionally, both segments have revenue streams and profit pools on top of their base businesses derived from differentiated technology platforms and scientific innovation. In DMPD, the base business comprises our CRO services, including standalone and integrated programs. Here, we are serving end-to-end workflows across the full spectrum from target identification to IND. We expect this base business to contribute around 40% of revenue by 2030. Horizon and further productivity measures are expected to drive gross margin above 20%. On top of the base business, we will be extending our DMPD strategic partnership business. Those partnerships leverage our proprietary technology platforms and deep scientific expertise. They expect it to contribute another 20% of revenue by 2030 and offer attractive margin upside in excess of 15 percentage points versus the base business through milestone payments and royalty contributions. Given the more volatile nature of this business, we have taken a risk adjusted approach in our outlook, which also does not include future royalty income until 2030. Successful scientific execution of our existing long-term partnership commitments or new partnerships can provide milestones and royalty income beyond these assumptions. We intend to provide more granular insight into how the two components of the DMPD business develop starting in 2027. In JEP, the base business is our CDMO offering, which is an engine for early and late stage biologics. We've already demonstrated our ability to grow through our development and clinical manufacturing capabilities. Extension of our third train in Redmond and entering commercial manufacturing is expected to provide the basis for further growth. On top, licensing of our continuous manufacturing technology, including offerings such as J-Train, as scalable growth and higher margin income alongside partnership royalties. Overall, we expect the JEP business to contribute approximately 40% of revenue by 2030. The move into commercial manufacturing together with the expansion of our licensing business is expected to drive substantial margin expansion over time with gross margin rising above 30%. Our 2030 ambition is about building a more balanced business with a structurally stronger earnings profile and a more transparent path to sustainable profitability. On slide 13, let me provide an overview of the drivers behind the 40-20-40 revenue mix in our 2030 mid-range framework. Starting with a DMPD-based business, we expect revenues to reach approximately 400 million euros by 2030, representing a CAGR of around 10%. Growth should be driven by the continued normalization and recovery of the early drug discovery market, stronger commercial execution, and our differentiated scientific and technology capabilities, including increased contribution of AI to drug discovery and development. Strategic partnerships and innovations sit on top of this space, but follow a different trajectory. The blue line shown here reflects our risk adjusted planning assumptions and reaches approximately 200 million euros by 2030, representing a CAGR of around 5%. Given the volatile nature of this business, actual revenue development will not develop in a straight line. The timing and the progression of individual programs can result in periods above or below that trajectory, as illustrated by the wavy blue area around the risk-adjusted line. As discussed, the risk-adjusted trajectory deliberately takes a more balanced view. Full scientific achievement or expansion of existing programs together with new strategic opportunities can provide additional upside. Just EvoTech Biologics has a different growth profile. Greater visibility on future demand, including our commercial manufacturing commitment with Vertex, has guided our decision to add a third manufacturing train at Redmond and expand capacity. As Claire discussed earlier, the installation will require a planned temporary pause in manufacturing activities in 2027, with the resulting near-term revenue impact already reflected in our plan. Once the additional capacity comes online, we expect growth to accelerate meaningfully. Higher utilization and increasing contributions from higher margin licensing income and future royalties are expected to drive revenue to approximately 400 million euros by 2030, representing a CAGR of around 20%. Taken together, These differentiated contributions provide a clear path towards the more balanced, scalable and profitable business we're targeting for 2030. Before we move on to the Q&A session, I would like to briefly summarize today's key takeaways on slide 14. The third quarter gives us encouraging evidence that the business is moving in the right direction. Commercial execution is strengthening and in the DMPD-based business, we're beginning to see stronger net sales translate into revenue. At the same time, improved profitability shows the impact of a lower cost base and better execution. Horizon is ahead of plan. Savings are increasingly visible. Structural measures are well advanced and we expect to deliver the full program on time. In just ABDAG Biologics, the Vertex Agreement marks an important step toward commercial manufacturing. Together with our planned capacity expansion, this provides a stronger foundation for the next phase of JEPS growth. We confirm our 2026 guidance and expect revenue in adjusted ABDA toward the upper end of their respective ranges. Looking beyond 2026, we have also given you greater transparency into the structure and economics of our business. The clear distinction between the DMPD business, DMPD-based business, strategic partnerships, and JEP shows how different growth and margin profiles are expected to combine into a more balanced business and a structurally stronger earnings profile. To further improve understanding of our business, we plan to complement our regular reporting with selected virtual deep dives into key areas of the business over the coming months, providing greater insight into the capabilities, growth, drivers, and value potential. There's still work ahead, but the direction is clear. Stronger commercial execution, a more efficient cost base, and a more attractive business mix. With this, I would like to close the call and welcome your questions. Thank you.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the telephone. You will hear a tone to confirm that you've entered the queue. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star and 1 at this time. Our first question comes from Charles Weston from RBC. Please go ahead.

Hello, thank you for taking the questions, three if I can. A near-term question first, could you disclose what milestones, strategic milestones you received in Q3 and what expectations might be for Q4? My longer term question is around the JEB business. Specifically, what gives you the confidence that that business can more than double over the next, well, up to 2030, particularly in light of the Sando development revenues that will presumably have become quite small by then? And then my last one is more of a conceptual one. The current environment has got everyone very excited about AI. You've obviously been invested in AI and data sets for a number of years. So could you just give us some color on whether this positioning has led to any meaningful, tangible leads? Thank you.

Thank you, Charles, and hello. And I'll start and see if Claire wants to chip in as well on the milestones. I understand you were talking about Q3 and Q4 this year, if I'm correct?

That's right.

Yeah, so not in a meaningful amount, but Claire will further allude to that. And then on the JEP topic, confidence about 2030 in light of Sandoz. Well, I think we try to explain that when you look at the Sandoz profile, there were short, mid-term and long-term economic benefits of the deal. We're now in the mid-term phase, 26 to 28, where we are doing the joint development work thereafter. Basically, the 10 molecules coming to market were eligible to royalty payments. So that is obviously something that is going to contribute as of 2029, 2030 to a certain amount, not peak values, but to a certain amount. but I think we also just alluded to the fact that we've lined up new customers and we're also quite confident with regard to the being ready for Vertex, which will obviously play an important role in our mid-range plan. On the AI positioning, absolutely, Charles. It's also a contributor to revenue growth that we've seen In parts of our cybertechs and discovery business, we're actually doing business and generating work and revenues with quite a few of the drug discovery companies that have focused on AI. and we expect this to further continue, if not even accelerate. Claire, any further flavour on the milestone topic?

Yeah, so on the milestones in the third quarter, Charles, there was around about 30 million included and we would expect that to be quite a bit less in the fourth quarter. and that's one of the drivers if you look at you know the year-to-date performance versus our guidance that we've given for the full year that's why the third quarter was a bit stronger than what you would if you were to extrapolate that out for the full year so that's where we sit with the milestone impact and revenues.

Thank you. If I could just clarify one point. When you talk about that strategic milestone, that is the payments from the strategic partners, right? But what about the milestones from clinical development milestones where you don't have any associated work? Sorry, I wasn't clear, but that's what I was referring to.

That was what you were referring to. So then there was none. What I referred to was ongoing work that we're working on at the moment.

None in Q3 and likely to be none in Q4.

Yes, that's correct. Thanks very much.

The next question comes from Ramakant Swarnankapula from HCW. Please go ahead.

Thank you. Good afternoon, Christiane and Claire. One quick question. You know, you delivered Q3 adjusted EBITDA of negative 1.6 million. Yet, you know, the unchanged annual range implies a Q4 loss of roughly 26 to 61 million. So what specifically bridges that deterioration? You know, is it lower partnership or milestone contribution, utilization, manufacturing studios? What is impacting that? And which of these elements are actually temporary and we should not expect them to be seen in 2027?

Thank you for the question. Maybe a general statement. Our profile quarter by quarter is not even, it's not a straight line. That's something to keep in mind. We've seen Q3 being strong in terms of revenues, both in DNPD and in JEP. With regard to Q4, we have a clear view on cost out. We have a robust sales development perspective on DNPD. There's still quite some dynamic in JEP when you think about the phasing of the work, revenue recognition for Sandoz and also Vertex. that can impact the facing and that's why we stay confident to stay in the guidance and the upper range. Claire, anything to add?

Yeah, I mean, it's really the same answer that I just gave to Charles a second ago. When you look at the Q3 proportion of milestones impact both in revenue in terms of profitability, and with that not repeating to the same magnitude in Q4, then that has an impact when you look at the quarter by quarter movement. And that's always, as Christiane said, why we have such variability across the quarters and tend not to guide in that way. But that's been considered as part of, when we've looked at the full year outlook and where we expect to land that, that's clearly the consideration that we've taken to place there.

Thank you for that. One additional question. This is on the Vertex relationship. So for Povertas at Redmond, what manufacturing validation or inspection or customer release steps are yet to be done? And when do you think the commercial supply would actually start contributing to your top line? And do you need to do any additional investments Just to be ready, I think you did state something about, you know, expanding the facility there.

Thanks for the question. And first of all, let me once more say that we're really excited about this opportunity. I think it's reasonable to assume that as part of the preparation for the Biduva date and Vertex commented that they're planning to do this on the 30th of November.

So we've got, what is it, 25 working days.

that at this point in time inspections will have taken place and we are going the normal course of development here and we're very confident in our ability to support Vertex and our partner to enter commercial manufacturing. So it's not a lot of time left until the PDUFA date and that's why you should not expect that there's a lot of stuff still to be done.

One last question from you. Sorry.

The investment into the third train obviously is not just related to Vertex, also lined up other customers, but it's really good to have here a strong anchor customer that will pick up that capacity going forward. Sorry, you had another question.

Yeah, quick one. So I know having Rui on board, you know, your Evotech is expanding the use of AI in all aspects of operations. So at what point can you start publicly stating, you know, how much of operational excellence you're achieving because of the utility of AI tools? And in case you're looking at it internally, what metrics are you applying just to make sure that what you're doing with AI is actually benefiting your operations?

Thanks for the question. And to be honest, our main focus when it comes to AI is to use it to accelerate drug discovery. Of course, there is also the component of using it for internal processes and productivity here, but the biggest lever is to accelerate drug discovery. And we have started to be more vocal around this. You've seen some announcements more recently where you see the impact of that, the JAS announcement. We're entering into phase one that has been supported by virtual screening. and drug design, molecular dynamics. You've also seen it with the Odyssey announcement in autoimmune that has been a combination of high-throughput wet lab plus machine learning analytics and a couple of others. So this is real. This is being applied at Evotec in order to Do new partnerships accelerate the drug discovery? The other side is actually to partner up with AI companies to improve the models. That's our main focus at this point in time.

Thank you, Christiane. Thanks for taking all my questions.

The next question comes from Finn Schwerzler from Deutsche Bank. Please go ahead.

Yes, hi, and thanks for taking my questions. I also have three. So first, if we can maybe go back to the ongoing contract negotiations that caused you to reduce your guidance in July. So back then you provided this rough split 40%, 45%, 15% with the reasons behind that. I was wondering, has your confidence or visibility of these volumes returning in 2027 The second question is about JAB. Last J-Pot sale to Sando, you were talking a lot about becoming more asset-light now and moving more towards licensing, etc. So is this now a pivot back in strategy towards a more asset-heavy business model? And aside from the J-Train that you are building now, will there be any other investments necessary to get to your mid-term targets? Or is this Pretty much the only larger one. And then finally, we've been waiting for the DNPD inflection, so to say, for a while now. And with the base business now performing more strongly, would you say this inflection is now here or are we still in the early innings? Would you say it's back to full steam? How would you describe that? Thank you.

Thanks for the questions, Finn. Claire, do you want to start with the first one maybe?

Yeah so thank you Finn for the questions. If you remember back in when we adjusted the guidance there were three elements to the adjustment that we made to the guidance. Part of that was related to our ability to or speed with which we were converting sales to revenue and that was where we said we would have some delayed impact that we would see moving into 2027. Because we are now coming with our guidance at the top end of the range, then some of that is partly what's contributing to us being able to meet the higher end of the guidance this year and the remainder of it, then we see that flowing through into 2027. On the strategic deals, which was another significant part of the guidance adjustments, You saw on one of the slides that we shared that the deal pipeline that we've got there is around about a billion euros in terms of value with several of those deals reaching late maturity. So again, we remain extremely confident in the composition of the pipeline that we've got, the robustness of it, and we're starting to see those deals maturing. Just as a reminder though when we did talk about the strategic deals we didn't say that that would all move into 2027 but it would move into the outer years depending on the timing and the phasing of those deals and with depending on the structure and the way in which those deals ramped up so just to to manage expectations that that was or just to remind that that was not a straight shift from one year into the next and then the last part that was part of the guidance adjustments was linked to an ambition that we had set ourselves around revenue conversion so that wasn't about lost sales or lost revenue or moving revenue that was really an ambition we had set ourselves which we were not able to at that point fully commit to and make. So yes, a very long answer to say a bit of it is helping us meet the top end of guidance this year and yes, we will see that moving into 2027 but not to assume that all of the strategic deals will land in 2027 but over the period of the outer years but still confident in our ability to land those.

And Finn, on the JEP question and whether the investment into the third train is an indication of a pivot back to the old strategy, clear answer, no, that's not the case. We stick to our strategy. And you should also not think about an investment here in the order of magnitude of what you have seen in previous years in Toulouse or in Redmond. It's a small fraction of an investment. And at this point in time, we're not contemplating for this planning period until 2030 any further extension. This is the expansion that is required in order to fulfill the growth plans here from a manufacturing perspective. And we feel totally comfortable with that. So there is no change in strategy. You will also have us heard speaking about the fact that the licensing play continues. We're actively marketing J Train, J Cho, J Media. So all of that is still in full swing. On the inflection point, let me describe a little bit the connectivity between sales order book and then revenue. So the commercial activities and how that converts into P&L impact. And we always said 2026 is a transition year. It's fair to say for me, sales and sales order dynamic perspective probably 25 to early 26 was the trough so we see positive dynamic here but there's always a delay effect between order book and then revenues when you think about the 25 revenue profile that was basically built on the order book generated between 23 and 24 26 was then built between 24 and 25. 27 revenues will be built between 25 and 26 audiobooks. Roughly, roughly. And then obviously the devil is in the detail because it very much depends on how long these projects then actually last, whether it's High Velocity, Short Cycled Business or Longer Projects. But roughly when you think about this concept, then you probably will appreciate 2025 being the trough. This certainly has impacted 26 revenues and will be washed out over time. And clearly that then indicates that It's reasonable to expect a rebound in the next couple of quarters, also from a revenue perspective. When it comes to the BMS dynamic, we also explained that there was a substantial revenue decline between 23 to 26. The work orders have stabilized. We're expecting BMS contribution to grow the next 12 to 24 months. The 27 guidance, which we're then going to issue beginning of next year, will then reflect the latest view on phasing of revenues, milestones and so forth. But it's fair to say that at this point in time, we see 25 as a trough with regard to net sales and 26 actually the trough when it comes to revenues. Hope that helps.

Yeah, very helpful. Thank you very much.

As a reminder, if you wish to register for a question, please press star followed by one. Our next question comes from Brendan Smith from TD Cowen. Please go ahead.

Hi, this is Jacqueline on for Brendan. I appreciate you taking the questions. Maybe just one for me on the AI side of the conversation. Have you seen any customer inquiries specifically around data generation, given your numerous touch points across the discovery process? And are there any areas of white space you're thinking of expanding into with regards to your modeling development that could potentially further bolster those DMPD sales?

Thanks for the question. Not just have we seen customer inquiries, but we are actually actively doing work with customers on this topic. Data generation is a big topic. as I mentioned can be related to chemical compound generation, can be related to DNPK tox safety profiling. So many, many areas. This is an important driver right now also for the positive sales dynamic that we're seeing. There's quite a bit that we have in in-house already when it comes to data. Let me remind you our molecular patient database as such of high, high value and interest in the market because that's something that you cannot quickly generate and has been built over a decade at Evotec. So this is a super strong asset in our minds and it's attracting a lot of interest. also from partners. The other part, obviously, when it comes to data generation, still a lot of demand is related to tox studies and helping to train models here. But this is not something far out. This is real business, meanwhile.

Great, thank you.

We have a follow-up question from Charles Weston from RBC. Please go ahead.

Hi, thanks for taking the follow-up. You've mentioned the word strategy a lot of times on this call, Christiane, and you've been quite clear with strategic goals, 2030, near-term strategy, but you're undergoing a strategic review as well. So I'm just wondering what aspects of the strategy are still left to be determined? Thank you.

You're asking me to give my holding statement. The review is ongoing, Charles.

Worth a go. Thank you.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Sarah Fakih for any closing remarks.

Thank you. Thank you for your participation and please feel free to reach out to the investor relations team should you have any further questions. Thank you and goodbye.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call and thank you for participating.