Evolva continues to deliver a resilient performance during the pandemic

Evolva continues to deliver a resilient performance during the pandemic

Reinach, November 5, 2020 - Evolva (SIX:EVE), the Swiss biotech company focused on the research, development and commercialization of ingredients based on nature, provides an update on its business and 2020 financial outlook.

Evolva's product demand continued to grow significantly over the last few months, except for ingredients vastly used in market segments currently challenged by the pandemic. Fine fragrances and beverages have been especially affected. The supply of Evolva's key product resveratrol, for which demand continues to increase significantly, is still hampered by ongoing delays at its respective key contract manufacturers. Despite said effects, Evolva expects the product revenues for this year to grow at the same rate as in previous years, in line with the initial guidance for 2020.

Business Update
The COVID-19 situation continues to evolve across the geographies Evolva operates in. This is having multiple effects on end user demand in different markets and is challenging the operations of some of Evolva's business partners.

• Health Ingredients: Despite these adverse impacts, company performance remains resilient, with increased customer demand and record order levels in Health Ingredients. This is amplified by the rising focus on proactive health care, also driven by the COVID-19 situation. Consequently, order backlog continues to grow.
  
  Good progress in scaling up manufacturing of Evolva's new key ingredient (EVE-X157/Z4) to ensure supply for selected customers in 2021. Beyond Health Ingredients, this product also has applications in Flavor and Fragrances.

• Flavor and Fragrances: Contrary to Evolva's expectations and an early positive trend in summer, F&F sales stagnated, largely driven by customers adjusting to lower end user demand.

• Health Protection: Following the registration of nootkatone as a novel active ingredient in the US, Evolva continued to support leading customers in driving activities towards the launch of first end-user products. This includes discussions on supply volumes for 2021/22.

«Now that all the commercial building blocks are in place, and customer demand is growing fast, strengthening of manufacturing and supply chain is a key part of our path forward» said Oliver Walker, CEO of Evolva.

Effective January 1, 2021, Gerhard Lobmaier is appointed Evolva's Chief Operations Officer. In his role, he will lead the manufacturing and supply chain functions, supporting the optimization of the CMO network for Evolva, thus increasing security of supply and realizing cost savings. Prior to this appointment, he served in several global functions at Cognis and BASF.

2020 Financial Outlook Updated
Since late summer, the business environment has deteriorated due to the COVID-19 situation and associated effects impacted some of our CMOs. This required an update of the 2020 financial outlook.

Despite these effects Evolva expects to grow its product revenues at the same rate as in previous years, in line with the initial guidance for 2020. In addition to the current backlog, customers have continued to place orders, some of them meanwhile reaching well into 2021.

As product-related revenues have become the main driver to the top line and COVID-19 continues to cause extraordinary expenses, EBITDA loss for the full-year will run above prior-year level, coming in at around CHF 16 to 17 million.

Cash outflows will be above the 2019 level due to the COVID-19 related effects, scale up of additional production capacities, launch of a major new product by year end and activities to promote novel ingredient nootkatone in the subsequent registration process for end-user products with the US Environmental Protection Agency (EPA).

Announcement of FY Results 2020 and Annual Report
The Full Year Results 2020 will be announced on February 25, 2021. The Annual Report 2020 will be issued on the same day.

Disclaimer
This press release contains specific forward-looking statements, e.g. statements including terms like believe, assume, expect or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the company and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties readers should not place undue reliance on forward-looking statements. The company assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.

About Evolva
Evolva is a Swiss biotech company focused on the research, development and commercialization of ingredients based on nature. We have leading businesses in Flavors and Fragrances, Health Ingredients and Health Protection. Evolva's employees, half of which are women, are dedicated to make the best products that can contribute to health, wellbeing and sensory enjoyment. Find out more at evolva.com.

For Evolva multimedia content, please visit: evolva.com/multimedia-library.

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