Evolva Announces Major Restructuring for Next Phase of Its Development

REINACH, Switzerland–(BUSINESS WIRE)–Evolva (SIX: EVE), which develops and commercializes next-generation
specialty ingredients for health, wellness and nutrition markets,
details the next phase of its corporate evolution.

Evolva announced in its half year results further details of its future
intended strategic direction to aggressively grow product revenues and
accelerate the path to a cash flow break-even position. In order to
exploit the full potential of its own products in various applications
and geographies, the company will enter commercial collaborations with
market leading companies in addition to selected direct sales. It will
also maintain a capital-light manufacturing strategy and continue to
strengthen its unique and highly differentiated technological
capabilities. Together, we believe these elements will generate
significant shareholder value.

Evolva has undertaken a review of its operational structure to best fit
its goals, details of which are announced below.

Evolva will undertake a major site consolidation over the coming months,
centralizing research and development activities predominantly at its
Reinach headquarters in Switzerland. This will also allow the company to
gain maximum synergies across all its products and pipeline programs, to
simplify and reduce back office processes, and to reduce facility costs.

As a consequence, Evolva is changing its management structure. The first
phase of this transformation has already been announced with the
appointment of a new Chief Executive Officer, Simon Waddington, and a
new Chief Commercial Officer, Scott Fabro. Today we announce the second
phase with the departure of 3 members of the Group Management Team (GMT).

Evolva Chief Business Officer Pascal Longchamp, Chief Scientific Officer
Jørgen Hansen and Managing Director & CEO of Evolva India Panchapagesa
Murali will step down from the company’s GMT by or before the end of the
year while providing support to the transition process. The CEO will
lead R&D on an interim basis during the search for a Chief Technology
Officer, a process that has been initiated. Panchapagesa Murali will aim
to spin off Evolva’s Chennai branch into an independent R&D services
group in the course of Q4 of this year.

Evolva will reduce its overall headcount from currently 178 (FTEs) to
approximately 100. We anticipate that Evolva’s annual operating expenses
run rate will decrease by approximately 30% or roughly CHF 11 million
developing full effect in Q2 of 2018. Evolva will take a one-time charge
in 2017 against its Profit and Loss Statement of around CHF 5 million
and estimates capital expenditures for the centralization of its
laboratories and small-scale fermentation equipment to equal around CHF
1 million with the majority being spent in Q4 2017. Guidance on product
revenues, which we estimate will more than triple in 2017 over 2016,
will not be affected by the restructuring.

Evolva CEO Simon Waddington said, "Evolva is undertaking the next
logical step in its own evolution. Both our leadership and operations
will be significantly optimized to ensure that our products achieve
their full potential and our innovation engine remains strong. The
choices we make today will strengthen our ability to deliver commercial
success, realize future innovation breakthroughs, and produce
shareholder value. I would also like to personally thank all employees
as well as our departing management team members, Pascal Longchamp,
Jørgen Hansen and Panchapagesa Murali, for their invaluable
contributions to Evolva over many years.”

Evolva will provide a further update on commercial strategy and mid-term
targets later in Q3 of this year.

About Evolva

Evolva solves the supply chain issues of nature through a 21st
century mix of biotechnology and brewing. We develop, make and sell
natural ingredients that provide significant benefits to people in daily
life, but whose supply chain issues have limited their use until
now. Our flagship ingredients are stevia, nootkatone and resveratrol. To
make our world sustainable requires nature and technology to work
together as one, and our aim is to play a (small) part in achieving this
transformation. We operate internationally. For more information see www.evolva.com.
Questions about our approach? Have a look at our video.

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.

Contacts

Evolva
Oliver Walker, + 41 61 485 2034
CFO
[email protected]
or
Paul
Verbraeken, + 41 61 485 2035
IR
[email protected]
or
Stephan
Herrera, +1 415 794 4005
USA
[email protected]