Evogene Ltd. Q2 FY2025 earnings call

• Strategic shift focused on maximizing ChemPass AI, core assets for AI-driven discovery. - In June 2025, completed version 1 of generative AI foundation model for small molecule design in collaboration with Google Cloud. - Announced collaboration with Professor Ehud Gazit from Tel Aviv University for small molecule therapeutics. - Implemented organizational change at AgPlenus, reducing headcount by over 40%. - Completed transaction with ICL, selling most of Lavie Bio's activity for $15.25 million and MicroBoost AI platform for agriculture for $3.5 million. - Began streamlining operations and reducing expenses across Evogene and subsidiaries.

Total revenues for the first half of 2025 were approximately $3.2 million compared to $2.3 million in the first half of 2024, driven primarily by strong seed sales from Casterra. Research and development expenses for the first half of 2025 were approximately $4.8 million compared to approximately $6.5 million in the same period, due to reduction in R&D activities at Biomica and discontinuation of operation at Canonic. Sales and marketing expenses totaled approximately $800,000 in the first half of 2025, down from approximately $1.1 million in the first half of 2024, reflecting lower headcount across several subsidiaries. Total operating expenses net for the first half of 2025 were approximately $7.7 million compared to approximately $11.1 million in the same period last year. As of the end of the first half of 2025, Evogene's cash and short-term bank deposit stood at approximately $11.7 million, not including expected proceeds from sales of Lavie Bio's assets and MicroBoost AI for Ag tech-engines to ICL which was completed in the third quarter of 2025.

• Expect continued decline in operating expenses in third and fourth quarters. - Continue to invest in advancing ChemPass AI platform, including partnerships with global tech leaders. - Strengthen collaborations in small molecule drug discovery and agriculture crop protection. - Integrate AgPlenus into Evogene and expand business collaborations. - Support Casterra's growth in new markets and channels.

• Current war between Israel, Hamas and Hezbollah and potential worsening of the situation in Israel, which may affect actual results, as detailed in Evogene's annual report on Form 20-F and other filings.

Q: How much castor seed inventory do you have today, both finished and expected to be finished after the harvest? And if your current customer does not place a follow-on order, what are your plans to commercialize this inventory?

A: Ofer Haviv said he won't disclose specific inventory amount but has a few hundreds of tons in castor seed ready, intends to sell to partners and also focus on using seeds to grow grain through subcontractors to sell to partners, with field trials in Brazil and Kenya showing promising results.

Q: What steps need to occur before you can announce a castor oil business?

A: Ofer Haviv said currently focusing on grain cultivation and selling grain to partners as bottleneck is castor cultivation, waiting to hear results from commercial field trials in growing castor for grain using their seed variety.

Q: The stock is still low. When will it start going up?

A: Ofer Haviv said can't control stock market, but planning to finalize new company presentation, launch new website, start meeting investors in September, and expect share to react to new collaboration announcements in pharma and Ag strengthening value proposition.

Q: How representative are operating expenses in Q2 2025 or going forward operations? Are all cost reductions fully reflected in the numbers?

A: Ofer Haviv said yes, expecting continued decline in all expense items in third and fourth quarters.

Q: What was revenue in Q2 '25? How should we think about peak sales given recent results? And how long should it take to reach peak sales?

A: Ofer Haviv said revenue in Q2 2025 was approximately $0.9 million, Casterra is key for sales, focusing on talking with mega partners, validating concept in Brazil and Africa with promising initial indications.

Q: What catalyst milestones should we expect in the next 12 to 18 months to evaluate progress?

A: Ofer Haviv said catalysts include announcements of new collaborations in pharma and Ag demonstrating ChemPass AI value, and announcements of new capabilities developed from ChemPass AI generative engine, like the foundation model developed with Google.