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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 6-K
___________________________________
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Section 13a-16 OR 15d-16
of the Securities Exchange Act of 1934

for the month of August 2023

Commission File Number: 001-40850
___________________________________
Exscientia plc
(Translation of registrant’s name into English)
___________________________________

The Schrödinger Building
Oxford Science Park
Oxford OX4 4GE
United Kingdom
(Address of principal executive office)
___________________________________


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

☒ Form 20-F ☐ Form 40-F




OTHER EVENTS

On August 10, 2023, Exscientia plc (the “Company”) issued a press release announcing a business update as well as the Company’s second quarter and first half 2023 financial results. The Company’s unaudited condensed consolidated financial statements as of and for the period ended June 30, 2023 are attached as Exhibit 99.1 and are incorporated by reference herein. The Company’s Management’s Discussion and Analysis of Financial Condition and Results of Operations is attached as Exhibit 99.2 and is incorporated by reference herein. The press release is attached as Exhibit 99.3 and is incorporated by reference herein.

On July 26, 2023, the Company’s wholly owned subsidiary, Exscientia AI Limited, and Sanofi entered into the Second Amendment to Collaboration and License Agreement (the “Second Amendment”), pursuant to which the Company and Sanofi agreed to vary certain terms with respect to the targets under the collaboration. A copy of the Second Amendment is attached as Exhibit 99.4 and is incorporated by reference herein.

The information in the attached Exhibits 99.1, 99.2, 99.3 and 99.4 shall be deemed to be incorporated by reference into the Company’s registration statement on Form S-8 (File Number 333-260315) and the related prospectus, as such registration statement and prospectus may be amended from time to time, and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.


EXHIBIT INDEX








SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


EXSCIENTIA PLC
Date:August 10, 2023
By:
/s/ Andrew Hopkins
Name:
Andrew Hopkins
Title:
Chief Executive Officer



Exhibit 99.1
Exscientia plc

Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive (Loss)/Income for the three and six months ended June 30, 2023 and 2022



Three months ended
June 30,		Six months ended
June 30,
2023202220232022
Note£’000£’000£’000£’000
Revenue43,006 7,137 8,767 14,112 
Cost of sales(6,269)(8,949)(14,726)(14,573)
Gross loss(3,263)(1,812)(5,959)(461)
Research and development expenses(32,993)(33,067)(66,405)(56,459)
General and administrative expenses(11,635)(12,060)(22,549)(19,879)
Foreign exchange (losses)/gains(452)22,797 (1,644)32,471 
Loss on forward contracts15— (11,287)— (11,287)
Other income51,834 1,517 4,439 2,950 
Operating loss 6(46,509)(33,912)(92,118)(52,665)
Finance income74,214 440 7,777 512 
Finance expenses(273)(73)(536)(127)
Share of loss of joint venture12(155)(271)(614)(564)
Loss before taxation (42,723)(33,816)(85,491)(52,844)
Income tax benefit86,752 5,140 11,877 8,676 
Loss for the period (35,971)(28,676)(73,614)(44,168)
Other comprehensive (loss)/income:
Items that may be reclassified to profit or loss
Foreign currency (loss)/gain on translation of foreign operations(1,205)500 (1,681)1,025 
Total other comprehensive (loss)/income for the period, net of tax (1,205)500 (1,681)1,025 
Total comprehensive loss for the period (37,176)(28,176)(75,295)(43,143)
Basic and diluted loss per share (£)9(0.29)(0.24)(0.60)(0.36)

The above unaudited condensed consolidated statement of profit or loss and other comprehensive (loss)/income should be read in conjunction with the accompanying notes.


1
Exscientia plc

Unaudited Condensed Consolidated Statement of Financial Position
as at June 30, 2023 and December 31, 2022


June 30, 2023December 31, 2022
Note£’000£’000
ASSETS
Non-current assets
Goodwill106,144 6,321 
Other intangible assets, net1030,519 33,602 
Property, plant and equipment, net1149,111 37,648 
Investment in joint venture12— — 
Right-of-use assets, net1318,907 14,794 
Other receivables14631 100 
Investments in equity instruments152,145 2,145 
Deferred tax asset 757 1,008 
Total non-current assets
108,214 95,618 
Current assets
Trade receivables1,330 523 
Other receivables and contract assets1414,897 14,618 
Current tax assets39,341 33,023 
Inventories— 50 
Short term bank deposits15151,935 101,234 
Cash and cash equivalents248,218 404,577 
Total current assets455,721 554,025 
Total assets
563,935 649,643 
EQUITY AND LIABILITIES
Capital and reserves
Share capital1662 61 
Share premium364,618 364,603 
Deferred shares— — 
Capital redemption reserve3 3 
Foreign exchange reserve143 1,824 
Share-based payment reserve44,864 35,267 
Fair value reserve(199)(199)
Merger reserve54,213 54,213 
(Accumulated losses)/retained earnings(46,432)23,106 
Total equity attributable to owners of the parent
417,272 478,878 








2
Exscientia plc

Unaudited Condensed Consolidated Statement of Financial Position
as at June 30, 2023 and December 31, 2022 (continued)





June 30, 2023December 31, 2022
Note£’000£’000
LIABILITIES
Non-current liabilities
Loans304 313 
Lease liabilities1316,076 10,942 
Deferred tax liability, net6,404 7,072 
Contract liabilities and other advances1756,358 59,170 
Provisions181,254 1,243 
Other payables19— 377 
Total non-current liabilities
80,396 79,117 
Current liabilities

Trade payables10,425 30,740 
Lease liabilities132,387 2,641 
Contract liabilities and other advances1729,731 38,812 
Other payables1923,724 19,455 
Total current liabilities66,267 91,648 
Total liabilities146,663 170,765 
Total equity and liabilities
563,935 649,643 

The above unaudited condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.


3
Exscientia plc

Unaudited Condensed Consolidated Statement of Changes in Equity
for the three months ended June 30, 2023 and 2022

Share
capital		Share
premium		Deferred SharesCapital Redemption ReserveForeign
exchange
reserve		Share-based payment reserveFair value reserveMerger ReserveRetained earnings/ (accumulated losses)Total
equity
£’000£’000£’000£’000£’000£’000£’000£’000£’000£’000







As at March 31, 202261 364,579 3 — (134)15,821 (199)54,213 118,772 553,116 







Loss for the period— — — — — — — — (28,676)(28,676)
Foreign exchange gain on translation of subsidiaries— — — — 500 — — — — 500 
Total comprehensive loss for the period— — — — 500 — — — (28,676)(28,176)









Share-based payment charge— — — — — 10,126 — — — 10,126 
Exercise of share-based payment awards— 18 — — — (722)— — 722 18 
Cancellation of deferred shares— — (3)3 — — — — — — 
As at June 30, 202261 364,597 — 3 366 25,225 (199)54,213 90,818 535,084 
As at March 31, 202362 364,609 — 3 1,348 40,741 (199)54,213 (13,053)447,724 








Loss for the period— — — — — — — (35,971)(35,971)
Foreign exchange loss on translation of subsidiaries— — — — (1,205)— — — — (1,205)
Total comprehensive loss for the period— — — — (1,205)— — — (35,971)(37,176)








Share-based payment charge— — — — — 6,836 — — — 6,836 
Exercise of share-based payment awards— 9 — — — (2,713)— — 2,592 (112)
As at June 30, 202362 364,618 — 3 143 44,864 (199)54,213 (46,432)417,272 


The above unaudited condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.


4
Exscientia plc

Unaudited Condensed Consolidated Statement of Changes in Equity
for the six months ended June 30, 2023 and 2022

Share
capital		Share
premium		Deferred SharesCapital Redemption ReserveForeign
exchange
reserve		Share-based payment reserveFair value reserveMerger ReserveRetained earnings/ (accumulated losses)Total
equity
£’000£’000£’000£’000£’000£’000£’000£’000£’000£’000







As at January 1, 202260 364,579 3 — (659)12,930 (199)54,213 135,886 566,813 








Loss for the period— — — — — — — — (44,168)(44,168)
Foreign exchange gain on translation of subsidiaries— — — — 1,025 (8)— — — 1,017 
Total comprehensive loss for the period— — — — 1,025 (8)— — (44,168)(43,151)










Share-based payment charge— — — — — 13,686 — — — 13,686 
Exercise of share-based payment awards1 18 — — — (1,383)— — (900)(2,264)
Cancellation of deferred shares— — (3)3 — — — — — — 
As at June 30, 202261 364,597 — 3 366 25,225 (199)54,213 90,818 535,084 
As at January 1, 202361 364,603 — 3 1,824 35,267 (199)54,213 23,106 478,878 








Loss for the period— — — — — — — — (73,614)(73,614)
Foreign exchange loss on translation of subsidiaries— — — — (1,681)— — — — (1,681)
Total comprehensive loss for the period— — — — (1,681)— — — (73,614)(75,295)








Share-based payment charge— — — — — 13,794 — — — 13,794 
Exercise of share-based payment awards1 15 — — — (4,197)— — 4,076 (105)
As at June 30, 202362 364,618 — 3 143 44,864 (199)54,213 (46,432)417,272 


The above unaudited condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.


5
Exscientia plc

Unaudited Condensed Consolidated Statement of Cash Flows
for the six months ended June 30, 2023 and 2022
June 30, 2023June 30, 2022 (*Restated)
Note£’000£’000
Cash flows from operating activities
Loss before tax(85,491)(52,844)
Adjustments to reconcile loss before tax to net cash flows from operating activities:
Depreciation of right-of-use assets61,775 706 
Depreciation of property, plant and equipment112,689 1,275 
Amortisation of intangible assets102,326 2,282 
Loss recognised from joint venture12614 564 
Finance income7(7,777)(512)
Finance expenses536 127 
R&D expenditure tax credits5(3,446)(2,079)
Share-based payment charge2113,794 13,686 
Foreign exchange loss/(gain)1,827 (24,517)
Changes in working capital:

(Increase)/decrease in trade receivables(806)815 
Increase in other receivables and contract assets(988)(2,496)
(Decrease)/increase in contract liabilities and other advances(11,893)69,126 
(Decrease)/increase in trade payables(15,295)9,400 
Increase in other payables3,625 8,202 
Decrease in inventories50 200 
Interest received4,904 454 
Interest paid(9)(9)
R&D expenditure tax credits received 1,881 — 
Income taxes received7,015 3,172 
Net cash flows (used in)/from operating activities
(84,669)27,552 
Cash flows from investing activities
Purchase of property, plant and equipment(19,264)(9,278)
Purchase of intangible assets10(110)(42)
Additional investment in joint venture12(623)(119)
Cash inflows from investments in short term bank deposits 15102,350 — 
Cash invested in short term bank deposits15(150,000)(100,000)
Net cash flows used in investing activities (67,647)(109,439)











6
Exscientia plc

Unaudited Condensed Consolidated Statement of Cash Flows
for the six months ended June 30, 2023 and 2022 (continued)




June 30, 2023June 30, 2022 (*Restated)
Note£’000£’000
Cash flows from financing activities

Proceeds from issue of share capital, net of transactions costs16 19 
Cash paid on net settlement of share based payments21(121)(2,283)
Payments of obligations under lease liabilities(1,498)(778)
Net cash flows used in financing activities
(1,603)(3,042)
Net decrease in cash and cash equivalents(153,919)(84,929)
Exchange (loss)/gain on cash and cash equivalents(2,440)24,588 
Cash and cash equivalents at the beginning of the year404,577 562,173 
Cash and cash equivalents at the end of the period
248,218 501,832 
Supplemental disclosure of total cashflow information
Decrease in cash and cash equivalents(153,919)(84,929)
Increase in short term bank deposits50,702 100,059 
Exchange (loss)/gain on cash and cash equivalents(2,440)24,588 
Net (decrease)/increase in cash, cash equivalents and short term bank deposits including foreign exchange (losses)/gains on cash and cash equivalents(105,657)39,718 
Supplemental disclosure of operating inflow information
Cash flow from collaborations910 91,389 
Amounts invoiced during the period(1,740)(86,749)
Foreign exchange losses/(gains) on trade receivables24 (3,825)
(Increase)/decrease in trade receivables(806)815 
Supplemental non-cash investing information
Change in capital expenditures recorded within trade payables(5,019)1,121 
Change in capital expenditures recorded within other payables101 332 

*See Note 2 for details of the restatement.



The above unaudited condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.






7
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
1.General information

These unaudited condensed consolidated financial statements reflect the financial performance and position of Exscientia plc (the ‘Company’) and its subsidiaries (collectively the ‘Group’ or ‘Exscientia’) for the three and six months ended June 30, 2023 and 2022.
    
Exscientia plc is a public company incorporated in England and Wales and has the following wholly owned subsidiaries: Exscientia (UK) Holdings Limited, Exscientia AI Limited, Exscientia Inc., Exscientia Ventures I, Inc., Exscientia Ventures II, Inc., Exscientia KK, Kinetic Discovery Limited and Exscientia GmbH as well as two 50% owned joint ventures: RE Ventures I, LLC (“RE Ventures”) and RE Ventures II, LLC.

The principal activity of the Group is that of the application of artificial intelligence (“AI”) and machine learning (“ML”) to the discovery and design of novel therapeutic compounds. Exscientia’s technology platform combines the best of human and computational capabilities to accelerate the process of designing novel, safe and efficacious compounds for clinical testing in humans.

2.Accounting policies    

a)Basis of preparation

These unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023 and 2022 have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” (“IAS 34”) as issued by the International Accounting Standards Board. The accounting policies and methods of computation applied in the preparation of the unaudited condensed consolidated financial statements are consistent with those applied in the Group’s annual financial statements for the year ended December 31, 2022 except for the estimation of income tax (see note 8).

The financial statements do not include all of the information required for annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended December 31, 2022.

The financial statements have been prepared on the historical cost basis, with the exception of certain financial instruments which are measured at fair value.

The financial statements and footnotes have been presented in pounds sterling. This is the functional currency of the Company, being the currency of the primary economic environment in which the Company operates, and the presentational currency of the Group. All values are rounded to the nearest thousand pound (“£’000”) except where otherwise indicated.

These unaudited condensed consolidated financial statements were prepared at the request of the Group’s Board of Directors (the “Board”) to meet regulatory and contractual commitments and were approved by the Board on August 9, 2023 and signed on its behalf by Andrew Hopkins, Chief Executive Officer of the Group.

b)Basis of consolidation

These unaudited condensed consolidated Group financial statements consolidate the financial statements of Exscientia plc and all its subsidiary undertakings made up to June 30, 2023.

c)Going concern

As at June 30, 2023, the Group’s cash, cash equivalents and short-term bank deposits amounted to £400,153,000. The Group has incurred significant research and development expenses from the start of the Group’s activities, with net cash outflows from operating activities amounted to £84,669,000 for the six months ended June 30, 2023. Taking into account the Group’s cash, cash equivalents and short-term bank deposits as at June 30, 2023, the Board believes that the Group has sufficient financial resources to cover its planned cash outflows for the foreseeable future, being a period of at least twelve months from the date of issuance of these financial statements.
8
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
2.Accounting policies (continued)

c)Going concern (continued)

As the Group has concluded that there is no substantial doubt about its ability to continue as a going concern within one year of the issuance of these financial statements, the Group has prepared these financial statements under the going concern assumption.

d)Application of new and revised International Financial Reporting Standards (IFRSs)    

There have been no new or revised accounting standards that have had a material impact on the unaudited condensed consolidated financial statements relative to those applied within the consolidated financial statements of the Group for the year ended December 31, 2022. Any new accounting standards implemented were assessed and determined to be either not applicable or did not have a material impact on the interim financial statements or processes.

e)Significant accounting policies

The significant accounting policies are disclosed in the consolidated financial statements of the Group for the year ended December 31, 2022. There have been no changes to existing accounting policies for the three and six months ended June 30, 2023.

Restatement of previously issued financial information

A classification error was identified within the Company’s unaudited condensed consolidated statement of cash flows as of and for the six month period ended June 30, 2022 related to the presentation of foreign exchange gains and losses on cash and cash equivalents, whereby certain exchange gains and losses relating to cash and cash equivalents were presented within net cash inflows from operating activities, rather than within exchange gains and losses on cash and cash equivalents. The effects on the condensed consolidated statement of cash flows for the six months ended June 30, 2022 are shown in the tables below.

six months ended June 30, 2022
As originally reportedAdjustmentAs restated
£’000£’000£’000
Foreign exchange gain(36)(24,481)(24,517)
Net cash flows from operating activities52,033 (24,481)27,552 
Net decrease in cash and cash equivalents(60,448)(24,481)(84,929)
Exchange gain on cash and cash equivalents107 24,481 24,588 
Cash and cash equivalents at the beginning of the year562,173 — 562,173 
Cash and cash equivalents at the end of the period
501,832 — 501,832 

3.Critical accounting estimates and judgements

The preparation of the financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions. These judgements, estimates and assumptions affect the reported assets and liabilities as well as income and expenses in the financial period.

The estimates are based on information available when the consolidated financial statements are prepared, historical experience and various other factors which are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources.

9
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
3.Critical accounting estimates and judgements (continued)

The significant estimates and judgements made by management in applying the Group’s accounting policies are the same as those applied in the consolidated financial statements for the year ended December 31, 2022, with the addition of a judgement relating to the contract liability amounts pertaining to certain projects in the Group’s collaboration with BMS as detailed in note 17.

Existing circumstances and assumptions about future developments may change due to market changes or circumstances arising that are beyond the Group’s control. Hence, estimates may vary from the actual values. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or the period of revision and future periods if this revision affects both current and future periods.

4.Revenue

Revenue recognized during the three and six months ended June 30, 2023 and 2022 relates to collaboration agreements with Bristol Myers Squibb Company (“BMS”), Celgene Switzerland LLC (“Celgene”) (a company acquired by BMS subsequent to the inception of the collaboration), Bayer AG (“Bayer”), Sanofi S.A. (“Sanofi”) and legacy contracts operated by the Group’s Austrian subsidiary. The proportion of revenue by customer in each period is as follows:

Three months ended
June 30,		Six months ended
June 30,
2023202220232022
%%%%
BMS (including Celgene)73 73 70 86 
Sanofi27 6 29 4 
Bayer— 16 — 8 
Others— 5 1 2 
100 100 100 100 


Three months ended
June 30,		Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Service fees— 336 104 336 
Licensing fees - upfront payments and research funding (including term extension payments)3,006 6,801 8,663 13,776 
Total Revenue3,006 7,137 8,767 14,112 


Revenue is recognized upon the satisfaction of performance obligations, which occurs when control of the service transfers to the customer. For obligations discharged over time the Group recognises revenue equal to recoverable costs incurred for new collaborations from their inception until such time as the collaboration is sufficiently progressed such that the Group can reliably estimate the level of profit that will be achieved from delivery of the related performance obligations. Where collaborations include significant variable consideration which is constrained at the inception of the arrangement this can lead to gross losses being recognised during the early stages of a contract.

All revenues during the three and six months ended June 30, 2023 and 2022 relate to obligations discharged over time, and input methods are utilised in order to estimate the extent to which the performance obligations have been satisfied at the end of the reporting period based upon costs incurred, which can be internal or third party in nature.
10
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
4.Revenue (continued)

On January 4, 2022 the Group entered into a strategic research collaboration with Sanofi to develop an AI-driven pipeline of precision engineered medicines. Research will be focused on up to 15 novel small molecule candidates across oncology and immunology, in relation to which the Group received an up-front cash payment of £74,242,000 ($100,000,000) with the potential of $5,200,000,000 in total milestones plus tiered royalties over the duration of the collaboration.

On March 11, 2022, BMS extended its first collaboration arrangement with the Group by six months in order to generate additional data including the use of translational capabilities for key targets under the collaboration using the Group’s precision medicine platform, in relation to which the Group received a cash payment of $5,000,000. The term extension payment was treated as an addition to the transaction price relating to the collaboration’s partially unsatisfied performance obligations relating to the design and development of candidates for collaboration targets, with a cumulative recognition of revenue at that date based upon the progress towards satisfaction of the related performance obligations in accordance with paragraph 21b of IFRS 15. The remaining element of the transaction price was recognised as revenue over the remainder of 2022 as the performance obligations were satisfied.

The Group has assessed its significant collaboration arrangements with commercial partners and determined that no provision for future operating losses is required as at June 30, 2023 taking into account expected future cash inflows and remaining contract liabilities amounts for each collaboration relative to the remaining unavoidable costs of meeting the contracts’ obligations in each instance.



5.Other Income

Three months ended June 30,Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Grant income362 436 993 871 
R&D expenditure credits1,472 1,081 3,446 2,079 
1,834 1,517 4,439 2,950 


As at December 31, 2022 the Group operated four grants consisting of a European governmental grant, a grant from the Gates Foundation, a grant from the Austrian Research Promotion Agency (“FFG”) and a grant from the Austrian Wirtshaftsservice, with the EU governmental grant ending in April 2023.

Of the grants in operation as at June 30, 2023 the Grant with the Gates Foundation provides reimbursement for certain personnel, consumables and overhead costs incurred in the performance of research and development activities, while the FFG grant relates to the early stage testing of a drug’s action in solid tumour patient samples with high content microscopy and deep-learning. The Austrian Wirtshaftsservice grant provides funding in respect of capital investments made in the period from August 2020 to the end of February 2022.

Maximum future amounts of £367,000 were receivable under these grants as at June 30, 2023, (December 31, 2022: £561,000).







11
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
6.Operating Loss

Operating loss for the three and six months ended June 30, 2023 and 2022 has been arrived at after charging/(crediting):

Three months ended June 30,Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Depreciation of property, plant and equipment1,616 681 2,689 1,275 
Depreciation of right-of-use assets883 382 1,775 706 
Amortisation of intangible assets1,154 1,150 2,326 2,282 
Research and development expenses32,993 33,067 66,405 56,459 
Foreign exchange loss/(gain)452 (22,797)1,644 (32,471)
Loss on forward contracts— 11,287 — 11,287 
Share-based payment charge6,836 10,126 13,794 13,686 



7.Finance Income
Three months ended June 30,Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Bank interest income 4,214 440 7,777 512 
4,214 440 7,777 512 


8.Taxation

The Group’s income tax credit is recognised at an amount determined by multiplying the loss before taxation for the interim reporting period by the Group’s best estimate of the weighted average annual income taxation rate expected for the full financial year, adjusted for the tax effect of certain items recognised in full in the interim period. As such, the effective tax rate in the interim financial statements may differ from the Group’s estimate of the effective tax rate for the annual financial statements.
The Group benefits from the United Kingdom’s small-and-medium enterprises research and development tax credit regime (“SME Programme”) and was able to surrender some of its losses for a cash rebate of up to 33.35% of expenditures related to eligible research and development projects up to April 1, 2023. The SME Programme cash rebate rate has reduced to 18.6% for qualifying research and development expenditure incurred on or after April 1, 2023, unless the Company’s UK subsidiary, Exscientia AI Limited, qualifies as “R&D intensive” for an accounting period (broadly, a loss making SME whose qualifying research and development expenditure for an accounting period represents 40% or more of its total expenditure for that accounting period will qualify), in which case the cash rebate that may be claimed will be 26.97% of qualifying expenditure. The Group currently expects that Exscientia AI Limited will qualify as R&D intensive during the year to December 31, 2023, and the 26.97% rate has been utilised in estimating the Group’s effective tax rate for the financial year.

The Group’s consolidated effective tax rate in respect of continuing operations for the three and six months ended June 30, 2023 was 15.80% and 13.89% (2022: 15.20% and 16.42%). The increase in the effective tax rate for the three months ended June 30, 2023 is attributable to increased research and development tax credits due to an underlying increase in qualifying research and development expenditure.
12
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
9.Loss per share

Three months ended
June 30,		Six months ended
June 30,
2023202220232022
Basic and Diluted loss for the period (£)(35,971,000)(28,676,000)(73,614,000)(44,168,000)
Basic and diluted weighted average number of shares 123,748,524 121,899,774 123,504,575 121,432,193 
Basic and diluted loss per share (£)(0.29)(0.24)(0.60)(0.36)

Basic loss per share (“Loss per Share”) is calculated in accordance with IAS 33 based on earnings attributable to the Company’s shareholders and the weighted average number of shares outstanding during the period.

The Company issues performance options, share options, restricted share units (“RSUs”) and performance share units (“PSUs”) to employees, upon the exercise of which ordinary shares are issued. Inclusion of these awards would have an anti-dilutive effect on the loss due to the loss incurred during the period, therefore basic and diluted loss per share are the same.

10.Goodwill and other intangible assets

During the six months ended June 30, 2023 the Group acquired assets at a cost of £110,000 relating to computer software. There were no disposals in the period. The amortisation charge for the period of £2,326,000 consisted of £14,000 relating to computer equipment, £8,000 relating to patents and £2,304,000 relating to acquired intellectual property. The residual movement in the net book value of goodwill and intangible assets relates to the foreign currency translation of assets relating to the Group’s Austrian business. No impairment charge was recognised in the period.

11.Property, plant and equipment

During the six months ended June 30, 2023, the Group acquired assets at a cost of £14,346,000, of which £10,506,000 related to assets under construction, primarily relating to leasehold improvements at the Group’s premises in Milton Park, Oxfordshire, £139,000 were additions to leasehold improvements, £121,000 were additions to computer equipment, £47,000 were additions to office furniture and equipment and £3,533,000 were additions to plant and equipment, primarily laboratory equipment. The depreciation charge for the period was £2,689,000.

During the six months ended June 30, 2023, £18,392,000 was transferred from assets under construction to leasehold improvements which constituted costs relating to the fit-out of premises leased by the Group. An additional £4,483,000 was transferred from assets under construction to plant and equipment for assets now installed; primarily at our premises in Milton Park.

No disposals of property plant and equipment were made during the six months ended June 30, 2023.


12.Investments in joint ventures and joint operations

During the six months ended June 30, 2023, the Group made £623,000 in capital contributions to its joint venture with RallyBio, RE Ventures (six months to June 30, 2022: £119,000).

The Group’s share of the loss incurred by the joint venture during the three and six months ended June 30, 2023 totalled £155,000 and £614,000 respectively (June 30, 2022: £271,000 and £564,000).

There were no transactions with the Group’s other joint venture with RallyBio, RE Ventures II, LLC, during the six months ended June 30, 2023 (six months to June 30, 2022: £nil).

The Group’s interests in joint operations are disclosed in the consolidated financial statements for the year ended December 31, 2022.
13
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
13.Leases

All right-of-use assets relate to leased premises. As at January 1, 2023 the Group had right-of-use assets relating to ten pre-existing lease agreements pertaining to four properties in the United Kingdom and one in Austria.

The Group entered into two seven-year lease arrangements in relation to laboratory and office space in Vienna, Austria on September 3, 2021. The lease term for the office space commenced on December 1, 2022, expiring in December 2029. The lease term for the laboratory space commenced on January 26, 2023. Annually from January, each year lease payments will be indexed based on the consumer price index rate as published by STATISTIK AUSTRIA at September of the preceding year.

On July 1, 2022 the Group entered into a lease arrangement in relation to premises in Boston, Massachusetts, United States. The lease commenced on January 23, 2023 and expires on June 23, 2033.

Right-of-use assets totalling £6,147,000 was recognised in relation to these leases during the six months ended June 30, 2023.

On May 23, 2023, the Group exited a lease pertaining to part of its leased premises in Dundee, United Kingdom, resulting in a disposal of right-of-use asset of £157,000.

The undiscounted lease liability contractual maturities as at June 30, 2023 and December 31, 2022 are as follows:

June 30, 202331 December 2022
£'000£'000
Within one year3,354 2,641 
One to five years13,632 9,682 
More than 5 years5,326 3,930 
22,312 16,253 


14.Other receivables

Current other receivables and contract assets
June 30, 2023December 31, 2022
£’000£’000
VAT recoverable2,790 3,040 
Prepayments6,827 5,935 
Contract assets and accrued grant income117 176 
Accrued bank interest569 746 
Other receivables4,594 4,721 
14,897 14,618 

Non-current other receivables

June 30, 2023December 31, 2022
£’000£’000
Other receivables631 100 
631 100 

Non-current other receivables relate to deposits on leased premises; due back at the end of the respective lease terms.
14
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
14.Other receivables (continued)

A reconciliation of the movement in contract assets for the Group is as follows:

January 1, 2023Recognised as incomeDeductionsJune 30, 2023
£’000£’000£’000£’000
Collaboration contract assets— — — — 
Accrued income on grants 176 117 (176)117 
Total contract assets and accrued grant income176 117 (176)117 

January 1, 2022Recognised as incomeDeductionsForeign exchangeDecember 31, 2022
£’000£’000£’000£’000£’000
Grants126 171 (143)22 176 
Collaboration contract assets179 (69)(110)— — 
Total contract assets and accrued grant income305 102 (253)22 176 


15.Fair value measurement of financial instruments

This note provides an update on the judgements and estimates made by the Group in determining the fair values of financial instruments since the last annual financial report.

Nature of financial instruments recognised and measured at fair value

GT shares

During the six months ended June 30, 2023 the Group’s only financial instrument measured at fair value consisted of unlisted equity securities comprising of ordinary and preference shares in GT Apeiron Therapeutics, which were acquired in March 2021 and in relation to which the Group has taken the election provided within IFRS 9 to recognise fair value gains and losses within Other Comprehensive Income.

Unobservable market data was available to the Group as at June 30, 2022 in the form of a recent arms-length transaction involving equity instruments of the entity in question, and the fair value of the Group’s investment was established with reference to that transaction. Nothing has come to the Company’s attention which would suggest that the value of the investment requires material impairment or revaluation as at June 30, 2023.

Foreign exchange forward contracts

During the three months ended June 30, 2022 the Group entered into a series of forward contracts of under three months duration whereby a commitment was made to exchange US dollars for a fixed number of pounds sterling in order to hedge its exposure to foreign exchange rate fluctuations. All such transactions were settled during the quarter for a cumulative loss of £11,287,000. No such transactions were entered into during the three and six months ended June 30, 2023, and the Group does not use derivative financial instruments for speculative purposes.






15
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
15.Fair value measurement of financial instruments (continued)

Fair value measurements using significant unobservable inputs (level 3)- equity investments at FVOCI

Unlisted equity securities
£’000
Opening balance as at January 1, 20232,145 
Gain/(loss) recognised in other comprehensive income— 
Closing balance as at June 30, 20232,145 

The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at June 30, 2023. There have been no transfers between levels 2 and 3 and changes in valuation techniques during the period.

Other financial instruments

On June 21, 2022, the Group invested £100,000,000 into a 12-month short term deposit with an F1+ rated UK financial institution. The investment matured on June 21, 2023. On March 24, 2023, the Group invested £150,000,000 into a 9-month short term deposit with an F1 rated financial institution. This short term bank deposit accrues interest at 4.8% and has been classified as financial assets measured at amortised cost.

The Group measures expected credit losses over cash and cash equivalents as a function of individual counterparty credit ratings and associated 12 month default rates. Expected credit losses over cash and cash equivalents and third-party financial derivatives are deemed to be immaterial and no such loss has been experienced during the quarter ended June 30, 2023.

The Group also has a number of other financial instruments which are not measured at fair value in the balance sheet consisting of trade receivables, trade and other payables and other loans. For these instruments, the fair values are not materially different to their carrying amounts, since the interest receivable/payable is either close to current market rates or the instruments are short-term in nature.


16.Share capital

June 30, 2023December 31, 2022
££
Issued and fully paid share capital
124,245,535 (2022: 122,963,545) Ordinary shares of £0.0005 each
62,12361,482
62,12361,482


Shares authorised and issued (number)
December 31, 2022Exercise of share-based payment awardsJune 30, 2023
Ordinary shares122,963,545 1,281,990 124,245,535 
122,963,545 1,281,990 124,245,535 

A total of 1,281,990 shares were issued upon the exercise of share-based payment awards during the six months ended June 30, 2023; see note 21 for further details.

16
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
16.Share capital (continued)

Rights of share classes

Holders of ordinary shares are entitled to one vote per share at a show of hands meeting of the Company and one vote per share on a resolution on a poll taken at a meeting and on a written resolution.


17.Contract liabilities and other advances

Within one yearMore than one year
June, 30December 31,June, 30December 31,
2023202220232022
£’000£’000£’000£’000
Contract liabilities
Revenue generating collaborations23,534 29,433 55,625 58,451 
Total contract liabilities23,534 29,433 55,625 58,451 
Other advances
Grants85 959 — — 
Joint Operations6,112 8,420 733 719 
Total other advances6,197 9,379 733 719 
Total contract liabilities and other advances29,731 38,812 56,358 59,170 


A reconciliation of the movement in contract liabilities and other advances for the six months ended June 30, 2023 is as follows:

January 01, 2023AdditionsRecognised in the income statementForeign exchangeJune 30, 2023
£’000£’000£’000£’000£’000
Grants959 — (871)(3)85 
Revenue generating collaborations87,884 — (8,726)1 79,159 
Joint operations9,139 — (2,294)— 6,845 
Total contract liabilities and other advances
97,982 — (11,891)(2)86,089 

Included within contract liabilities as at June 30, 2023 are unspent upfront payments totalling £6,236,000 relating to performance obligations that have been stopped during the six months to June 30, 2023. These amounts have not been recognised within revenue as discussions are ongoing between the two parties regarding how these funds may be applied to other projects and as such constraint has been applied in accordance with IFRS15.

The Group expects to recognise its contract liabilities relating to revenue generating collaborations over the terms of the related collaborations, the longest of which extends to December 2027. As at December 31, 2022 the Group expected to recognise its contract liabilities relating to revenue generating collaborations over the period to December 2027. The ageing presented above reflects the Group’s best estimate of when contract liability and other advance amounts will be utilised based upon when the underlying costs to be incurred in the delivery of the related projects are expected to be incurred.
17
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
17.Contract liabilities and other advances (continued)

A reconciliation of the movement in contract liabilities and other advances for the year ended December 31, 2022 is as follows:

January 01, 2022AdditionsRecognised in the income statementForeign exchangeDecember 31, 2022
£’000£’000£’000£’000£’000
Grants1,889 715 (1,648)3 959 
Revenue generating collaborations28,946 85,700 (26,769)7 87,884 
Joint operations15,486 — (6,347)— 9,139 
Total contract liabilities and other advances
46,321 86,415 (34,764)10 97,982 


18.Provisions

At June 30, 2023 a provision of £1,254,000 existed in respect of the Group’s obligation to restore alterations made on leased space within three of the Group’s leasehold properties. The required work for two of the spaces is expected to be completed in 2024 and in 2031 for the other space.


19.Other payables

Current other payables
June 30, 2023December 31, 2022
£’000£’000
Accruals17,398 15,801 
Other payables1,466 814 
Other taxation and social security4,683 2,830 
Corporation tax177 10 
23,724 19,455 

Non-current other payables
30 June, 202331 December, 2022
£’000£’000
Other payables— 377 
— 377 

20.Related party transactions

Following the Group’s IPO on October 5, 2021 the Group has no related parties in accordance with the IAS 24 definition who are not key management personnel of the Group (whose remuneration is disclosed annually), and as such there are no disclosable related party transactions during either the six months ended June 30, 2023 or 2022 relating to such parties.

See note 12 for details of the Group’s transactions with joint ventures during the six months ended June 30, 2023 and 2022.

18
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
21.Share based payments

From April 2022 the Company has issued all share options, performance share options, RSUs and PSUs to employees and non-employee members of the Board of Directors under the 2021 Equity Incentive Plan (“EIP”). All awards prior to that date were issued under the following legacy plans:

–Enterprise Management Incentive (“EMI”) Scheme
–Company Share Ownership Plan (“CSOP”)
–Unapproved Share Ownership Plan (“USOP”)

Total share-based remuneration expenses relating to share options, performance share options, RSUs, PSUs and the equity securities issued upon the acquisition of a subsidiary undertaking (as detailed in note 31 of the consolidated financial statements of the Group for the year ended December 31, 2022) amounted to £13,794,000 during the six months ended June 30, 2023 (six months ended June 30, 2022: £13,686,000).

Total share-based remuneration expenses for the three months ended June 30, 2023 amounted to £6,836,000 (three months ended June 30, 2022: £10,126,000).

The following table represents the share-based payment expense by award type for the three and six months ended June 30, 2023 and 2022:

Three months ended
June 30,		Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Share options4,495 6,650 8,587 8,860 
Performance share options441 823 1,311 823 
PSUs184 137 329 137 
RSUs1,157 1,286 2,455 1,419 
Clawback shares559 1,230 1,112 2,447 
6,836 10,126 13,794 13,686 


Share Options

Share options are granted to employees and non-executive directors of the Group. These options typically vest in tranches over four years, with the only vesting condition relating to continued employment by the Group. Information with respect to share options for the six months ending June 30, 2023 is as follows:

Number of share optionsWeighted average exercise price
Options held as at January 1, 20239,809,788£0.04 
Granted2,631,739 £0.00 
Exercised(1,055,453)£0.01 
Forfeited(517,941)£0.01 
Options held as at June 30, 202310,868,133£0.04 
Exercisable as at June 30, 20234,950,640£0.07 


19
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
21.Share based payments (continued)

A Black-Scholes model has been used to calculate the fair value of the share options as at the grant date, with the following weighted average values for the six months ended June 30, 2023:

Exercise price£0.0005 
Expected life6.0 years
Expected volatility95.9 %
Risk-free rate3.05 %
Expected dividend rate— 
Fair value£4.26 
The fair value of the underlying ordinary shares is equal to the closing share price at the grant date converted at the prevailing exchange rate at that date. The risk-free rate is determined by reference to the rate of interest obtainable from US Government Bonds over a period commensurate with the expect term of the options. Expected volatility has been set with reference to the Group's own share price volatility over the period from the Company’s IPO to the award grant date and peer group analysis. The expected life of the options has been set equal to the mid-point between the vesting date and the expiry date of the award in question.

Performance Share Options

Performance share options are granted to certain executive officers of the group on an annual basis, and contain market based performance conditions relating to total shareholder return as well as a continued employment vesting requirement. These awards vest in tranches over three years. Information with respect to performance share options for the six months ending June 30, 2023 is as follows:
Number of share optionsWeighted average exercise price
Options held as at January 1, 2023877,704 £0.00 
Granted1,350,482 £0.00 
Forfeited(239,192)£0.00 
Options held as at June 30, 20231,988,994£0.00 
Exercisable as at June 30, 202339,304 £0.00 
A Monte Carlo model has been used to calculate the fair value of the performance options as at the grant date, with the following weighted average values for the six months ended June 30, 2023:

Exercise price£0.0005 
Expected life3.0 years
Expected volatility88.6 %
Risk-free rate3.59 %
Expected dividend rate— 
Fair value£3.33 
The fair value of the underlying ordinary shares is equal to closing share price at the grant date converted at the prevailing exchange rate at that date. The risk-free rate is determined by reference to the rate of interest obtainable from US Government Bonds over a period commensurate with the expect term of the options. Expected volatility has been derived as the weighted average volatility of comparator companies who have been listed for a period commensurate with the expected term prior to the grant date, and the expected life of the options has been set equal to the mid-point between the vesting date and the expiry date of the award in question.
20
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
21.Share based payments (continued)

Performance Share Units

Performance share options are granted to certain executive officers of the group on an annual basis, and contain market based performance conditions relating to total shareholder return as well as a continued employment vesting requirement. These awards vest in tranches over three years. Information with respect to performance share units for the six months ending June 30, 2023 is as follows:

Number of PSUs
PSUs held as at January 01, 2023146,285 
Granted342,548 
PSUs held as at June 30, 2022488,833


A Monte Carlo model has been used to calculate the fair value of the performance share units as at the grant date, with the same model inputs as detailed for the performance share options above.

Restricted Share Units

The Group operates a RSU scheme, whereby certain employees and directors receive RSUs held over ordinary shares in the Company. These units are non-transferable and subject to forfeiture for periods prescribed by the Company. These awards are valued at the market value of the underlying shares at the date of grant and are subsequently amortised over the periods during which the restrictions lapse, typically four years. The awards expire on the cessation of the participant’s employment with the Group. Information with respect to restricted share units for the six months ending June 30, 2023 is as follows:

Number of RSUs
RSUs held as at 1 January 2023759,696
Granted593,346
Exercised(257,955)
Forfeited(10,254)
RSUs held as at 30 June 20231,084,833

The weighted average grant date fair value per unit of the RSUs granted in the three and six months to June 30, 2023 was £4.26. The weighted average remaining contractual life of the outstanding awards as at June 30, 2023 was 9.1 years.

During the six months ended June 30, 2023, 53,566 awards were released via a net settlement arrangement, with 27,098 shares issued and £121,000 paid by the Company in order to settle related employee tax obligations. The payment made has been recognised within retained earnings.









21
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
22.Commitments

The Group has capital expenditure contracted for but not recognised as liabilities as at June 30, 2023. The expenditure is as follows:
June 30, 2023
£’000
Plant and equipment3,575 
Computer software39 
Computer equipment8 
Leasehold improvements397 
Office Furniture and equipment6 
4,025 

Gates Foundation private placement commitment

Concurrent with the Company’s IPO on October 5, 2021, the Company completed a private placement to the Gates Foundation as detailed in note 21 of the consolidated financial statements of the Group for the year ended December 31, 2022. Under the terms of the Company’s agreement with the Gates Foundation, the Group is committed to spending $70,000,000 over a four-year period to the research, discovery, and development of small molecule anti-infective therapeutics for future pandemic preparedness, with a specific focus on developing therapeutics that can be applied against multiple species of coronaviridae, influenza, and paramyxoviridae (the “Pandemic Preparedness Program”).

The Group had incurred £8,043,012 relating to the Pandemic Preparedness Program as at June 30, 2023 (December 31, 2022: £6,459,000), with a total outstanding commitment of £43,443,000 (December 31, 2022: £45,027,000).

In the event that the Group is in breach of certain terms within the agreement, the Gates Foundation has the right to sell, or require the Group to buy-back any shareholdings in the Group held by the Foundation at the higher of the public offering price and the market value of the shares at the date of default. Should such a breach occur or should the Company enter bankruptcy the Gates Foundation also has the exclusive right to utilise an exclusive global license granted as part of the agreement in relation to any IP generated by the Group pertaining to the Pandemic Preparedness Program for the benefit of people in certain developing countries. The default conditions are within the control of the Group and the license in question cannot be utilised unless such a default occurs or the Group enters bankruptcy. As such no fair value has been assigned to this license.

Lease commitments

In December, 22 the Group entered into a lease arrangement in relation to premises in Miami, Florida United States. The lease arrangement in question commences on September 1, 2023 and expires on June 1, 2034. Total minimum lease commitments of £3,291,000 are payable under this arrangement.



23.Ultimate Parent and Controlling Party

Exscientia plc is the ultimate parent company of the Group. There is no ultimate controlling party.





22
Exscientia plc
Notes to the unaudited condensed consolidated financial statements
for the three and six months ended June 30, 2023 and 2022
24.Events occurring after the reporting period

On July 24, 2023 the Group made a capital contribution of £583,000 to its joint venture with RallyBio, RE Ventures.

On July 27, 2023, our wholly owned subsidiary, Exscientia AI Ltd and Sanofi S.A. entered into an amendment to the collaboration agreement executed between the parties on January 4, 2022 (the “CLA”), pursuant to which the Company and Sanofi agreed to vary certain terms of the CLA with respect to Targets (as defined in the CLA).

On August 8, 2023, we and Blue Oak Pharmaceuticals Inc. ended a collaboration arrangement that was entered into on September 25, 2020. The purpose of this arrangement was to collaborate on a project to design dual targeted (bispecific) small molecules for the treatment of neurodegenerative diseases. No settlement amounts were paid as a result of the termination and no impairments of assets were recorded. Both parties retain the right to operate within the target area.

23
Exhibit 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated interim financial statements and the related notes to those statements included as Exhibit 99.1 to the Report of Foreign Private Issuer on Form 6-K, or the Current Report, submitted to the Securities and Exchange Commission, or the SEC, on August 10, 2023 and our consolidated financial statements and the related notes to those statements included in our Annual Report on Form 20-F filed with the SEC on March 23, 2023, or the Annual Report. The following discussion is based on our financial information prepared in accordance with the International Financial Reporting Standards, or IFRS, as issued by the IASB, which may differ in material respects from generally accepted accounting principles in other jurisdictions, including U.S. GAAP. Some of the information contained in this discussion and analysis or set forth elsewhere in this Current Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that invoice risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should review the sections in our Annual Report titled “Special Note Regarding Forward-Looking Statements” and “Risk Factors” for a discussion of the important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

We maintain our books and records in pounds sterling. For the convenience of the reader, we have translated pound sterling amounts as of and for the period ended June 30, 2023 into U.S. dollars at the noon buying rate of the Federal Reserve Bank of New York on June 30, 2023, which was £1.00 to $1.2709. These translations should not be considered representations that any such amounts have been, could have been or could be converted into U.S. dollars at that or any other exchange rate as of that or any other date.

Unless otherwise indicated or the context otherwise requires, all references to “Exscientia”, the “Company”, “we”, “our”, “us”, or similar terms refer to Exscientia Plc and its wholly owned subsidiaries.

Overview

We are an artificial intelligence-driven precision medicine company committed to efficiently discovering, designing and developing the best possible drugs based on complex patient data. Our goal is to change the pharmaceutical industry’s underlying pharmacoeconomic model, what we call “Shifting the Curve,” by improving the probability of success, time and cost involved with creating new medicines. Our pipeline demonstrates our ability to rapidly translate scientific concepts and patient-centric data into precision-designed therapeutic candidates. We have built an end-to-end solution of artificial intelligence, or AI, and experimental technologies for target identification, drug candidate design, disease relevant translational models and patient selection. These integrated technologies allow us to discover, design and develop precision medicines. Our platform has enabled us to design candidate drug molecules that have progressed into clinical trials as well as to prospectively provide patients with potentially more applicable drug therapies through AI guided assessment. Our patient-first AI process is comprised of the following four elements:

•Precision Target: using patient tissue and deep learning approaches to identify new targets;
•Precision Design: an extensive platform of AI technologies to design innovative drugs;
•Precision Experiment: tech-enabled precision experimentation to derive better data; and
•Precision Medicine: advanced patient selection to improve clinical success rates.

Our AI-design capabilities include a wide range of deep learning and machine learning algorithms, generative methods, active learning and natural language processing. These methods are used to guide target selection, to design the precise molecular architecture of potential drug molecules and to analyse patient tissues to prioritise the molecules that are likely to provide the best response for an individual’s specific tumour.


1



Our Strategy

Our focus on encoding and automating critical functions in drug discovery has meant we can readily scale our business. Our target identification and drug design technologies can be applied to small molecule discovery across any therapeutic indication, while our precision medicine platform focuses on oncology and can be applied to both small molecules and biologics. We seek to continuously grow our platform by creating scalable technologies to solve new drug discovery problems in a better, more efficient way. Our goal is for every project, whether internal or partnered, to not only deliver potential high-impact medicines, but also expand our capabilities for future projects.

Internal pipeline:

–Our internal pipeline includes wholly owned programmes, majority owned programmes and co-owned programmes. Our wholly owned programmes and majority owned pilot programme primarily focus on oncology, immuno-oncology and antivirals. We perform all activities (experimental and computational) from target identification through to clinical trials, if applicable. We also have a number of co-owned projects with biopharmaceutical companies, the terms of which include cost sharing in the development and commercialisation of drug candidates, with a corresponding share in revenue or profits generated from approved product candidates.

–These programmes include our majority-owned immuno-oncology asset, EXS21546 and our co-owned oncology asset, GTAEXS617, as well as wholly owned EXS73565 and EXS74539. As our broad internal portfolio advances, we continue to assess the optimum development pathway to success, which may include co-developing, partnering or out-licensing, that best fit for our long-term strategy and capabilities.

Partnered programmes:

–We provide end-to-end discovery capabilities across a variety of therapeutic areas in exchange for upfront payments, milestones, opt-in payments and royalties on net sales if a product developed from the partnership is commercialised. We expect to continue to be reliant on our partners to progress drug candidates through clinical trials and regulatory approval in order for us to realise certain development milestones and royalties on commercial sales. We have several collaboration agreements with global pharmaceutical companies, including Bristol Myers Squibb (BMS) and Sanofi. Revenue associated with these agreements is recognised in accordance with IFRS 15 Revenue from Contracts with Customers, with the associated expenses recognised in cost of sales. All of our partnership agreements allow for assets to become wholly owned by Exscientia if a partner decides not to continue development after our operational commitment is satisfied, with no payment required by Exscientia.

Recent Developments

On May 15, 2023, we announced that Sumitomo Pharma Co., Ltd. plans to initiate a Phase 1 clinical study of DSP-2342 in the United States. DSP-2342 is a highly-selective bispecific small molecule with potent dual 5-HT2A and 5-HT7 antagonist activity with broad potential in psychiatric disease. It is the third molecule created utilising our AI-driven drug discovery platform under a design-as-a-service collaboration with Sumitomo Pharma.

On May 24, 2023, we announced that the first patient was dosed in the Phase 1/2 IGNITE clinical trial of EXS21546 (‘546) for the treatment of relapsed/refractory renal cell carcinoma and non-small cell lung cancer (NSCLC).

On June 29, 2023, we announced a change in management structure to further align executive decision making with our functional priorities in technology. This includes the expansion of our executive committee to include Professor Charlotte Deane, MBE, who was promoted to Chief AI Officer; John P. Overington, Ph.D., who was promoted to Chief Data Officer; and Eileen Jennings-Brown, our Chief Information Officer. They will each head one of the newly created technology functions and report directly to Professor Andrew Hopkins FRS FMedSci, our Chief Executive Officer and a member of our board of directors. In addition, Iva Navratilova, Ph.D., retains her role as Vice President of Biophysics. She is the spouse of Professor Hopkins and has been employed by us since November 2016. Dr. Navratilova currently receives a salary and benefits consistent with her position in our company and market practices.
2



On July 10, 2023, we announced that the first patient was enrolled in the Phase 1/2 ELUCIDATE clinical trial of GTAEXS617 (‘617), a precision designed potent and selective CDK7 inhibitor. The trial is enrolling patients across six advanced solid tumour types: head and neck cancer, colorectal cancer, pancreatic cancer, NSCLC, HR+/HER2- breast carcinoma and ovarian cancer.

On July 18, 2023, we announced the initiation of EXCYTE-1, the first multi-centre trial evaluating the potential of our functional precision medicine in solid tumours, with a focus on ovarian cancer. EXCYTE-1 is a prospective observational study in ovarian cancer to investigate the relationship between ex vivo drug response in primary tumour-derived samples using our precision medicine platform and actual patient clinical responses.

On July 27, 2023, our wholly owned subsidiary, Exscientia AI Ltd, and Sanofi S.A. entered into an amendment to the collaboration agreement executed between the parties on January 4, 2022 (the “CLA”), pursuant to which we and Sanofi agreed to vary certain terms of the CLA with respect to Targets (as defined in the CLA). Our management expects that this amendment will result in improved economics across the period of the collaboration. All current programmes under the collaboration are continuing as planned.

On August 8, 2023, we and Blue Oak Pharmaceuticals Inc. ended a collaboration arrangement that was entered into on September 25, 2020. The purpose of this arrangement was to collaborate on a project to design dual targeted (bispecific) small molecules for the treatment of neurodegenerative diseases. No settlement amounts were paid as a result of the termination and no impairments of assets were recorded. Both parties retain the right to operate within the target area.


Components of Results of Operations

Revenue

We generate revenue broadly from two streams that relate to our principal activities:

•Licensing fees: We receive licensing fees from partnered programmes where we develop intellectual property on behalf of a collaboration partner. These agreements either assign all of the designated intellectual property to the partner from inception or grant an exclusive option to the partner to acquire rights to the future development and commercialisation of the intellectual property. As part of these agreements, we may receive future milestone and royalty payments upon achievement of clinical, regulatory and commercial milestones; and

•Service fees: We generate service fees from drug discovery collaboration agreements where we are utilising our proprietary technology to develop novel intellectual property on behalf of the collaboration partner, but do not have any rights to future milestones and royalties as a direct result of the agreement. Until March 2023, we also generated service revenues through our Exscientia GmbH entity related to collaboration agreements that existed with Exscientia GmbH at the time of our acquisition.

We receive four types of payments within the two revenue streams:

•Upfront payments, which are generally payable upon execution of the collaboration agreement or on initiation of a project;
•Research funding (including term extension payments), which is generally payable throughout the collaboration at defined intervals that are set out in the agreement (e.g., quarterly or at the beginning of a specific phase of work) and is intended to fund research (internal and external) to develop the drug compound that is the subject of the collaboration;
•Milestone payments, which are linked to the achievement of events that are defined in the agreement, such as clinical and regulatory milestones; and
3



•Opt-in payments, which are similar in principle to milestone payments, but are payable when the partner exercises its option to take ownership of the designated intellectual property. These payments only exist where we initially retained ownership of the designated intellectual property.

In addition to the payments described above, we may also receive milestone payments upon the first commercial sale of a product, if and when approved, the amount of which is based on the territory the sale occurs in, and royalties based on worldwide net sales. These amounts have not been included within the transaction price for any contract as of June 30, 2023 and 2022. We have only recognised revenue in respect of non-cancellable, non- refundable payments and achieved milestones due under executed collaboration contracts. Any payments which relate to future milestones or options under the control of our collaboration partners have not been recognised.

Costs of Sales

Costs of sales relate to costs from third-party contract research organisations, or CROs, as well as internal labour and absorbed overhead incurred in relation to collaboration arrangements and drug discovery agreements for third parties which have been designated as contracts with customers in accordance with IFRS 15. External CRO costs are the main driver for our costs of sales, representing 64% and 67% compared to 78% and 79% of total costs of sales during the three and six months ended June 30, 2023 and 2022, respectively. The reduction is primarily a result of increased activity in relation to the Company’s collaboration with Sanofi, where a higher proportion of internal costs are incurred, in addition to the transition of projects to strategic CRO partners in lower cost jurisdictions.

We expect our cost of sales to increase in the future as we commence additional collaboration projects.

Gross Loss

Gross loss represents revenue less cost of sales. Gross margin is gross loss expressed as a percentage of revenue. Our gross margin may fluctuate from period to period as a result of our drug discovery collaboration activities. For example, the revenue associated with collaboration up-front payments is recognised over time and is adjusted due to changes in the estimated costs to be incurred in satisfying the related performance obligation, while certain opt-in and milestone payments are recognised when assessed to be highly probable, which is generally upon achievement.

For obligations in which revenue is recognised at a point in time, that point in time is the date at which the satisfaction of the performance obligation is mutually agreed with our customer. For obligations discharged over time the Group recognises revenue equal to recoverable costs incurred for new collaborations from their inception until such time as the collaboration is sufficiently progressed such that the Group can reliably estimate the level of profit that will be achieved from delivery of the related performance obligations. Revenue from potential milestones or royalties are typically not recognised at the initiation of a contract. Upfront payments that include performance obligations are recognised as those obligations are satisfied. As a result of this, until total costs and time to completion can be reliably estimated, a gross loss may be recognised on individual customer contracts despite the expectation that the relevant contract will be profitable overall.

Therefore, we believe that gross loss is not currently a helpful predictor of the future performance of our business.

Research and Development Expenses

Research and development expenses consist of internal and co-owned drug discovery programme costs and costs incurred for the ongoing development of our technology platform. All research and development costs are expensed as incurred due to scientific and technological uncertainty. These costs primarily consist of:

•internal personnel-related expenses, including salaries, benefits, bonuses and stock-based compensation for employees engaged in research and development functions;
•external expenses incurred under agreements with CROs and other consultants involved in our research and development;
4



•facilities, depreciation and amortisation, insurance and other direct and allocated expenses incurred as a result of research and development activities; and
•costs associated with operating our digital infrastructure, including allocated software, computing capacity costs, and laboratory-related costs, including laboratory equipment depreciation.

All direct external research and development expenditures are tracked on a programme-by-programme basis and consist primarily of fees paid to CROs relating to wholly and jointly operated discovery programmes in the later stages of drug discovery, including lead optimisation, preclinical and clinical studies, and are assigned to the individual programmes. We utilise internal employee time and cost data to allocate internal research and development expenses, such as employee costs, laboratory supplies, facilities, depreciation, or other indirect costs, to specific programmes because these costs are deployed across multiple programmes.

We expect our research and development expenses to increase substantially for the foreseeable future as we continue to expand and advance our wholly and jointly operated drug pipeline, invest in our technology platform and hire additional personnel directly involved in such efforts. Drug development generally becomes more costly as programmes advance into later stages, as these trials typically require a higher number of patients enrolled and sites operated. We cannot determine with certainty the timing of initiation, the duration, or the completion costs of current or future clinical trials of our drug candidates due to the inherently unpredictable nature of drug development. At this time, we cannot reasonably estimate or know the nature or timing of the efforts that will be necessary to complete the development and commercialisation of any drug candidates that we develop from our programmes. As a result, our research and development expenses may vary substantially from period to period based on the timing of our research and development activities. All of our programmes are at an early stage of development, and we may experience numerous unforeseen events during, or as a result of, the clinical trial process that could delay or prevent commercialisation of our drug candidates and result in a significant change in the costs and timing associated with the development of programmes.

General and Administrative Expenses

General and administrative expenses consist of personnel-related expenses associated with our executive, legal, finance, human resources, information technology and other administrative functions, including salaries, benefits, bonuses and stock-based compensation. General and administrative expenses also include professional fees (including fees relating to external legal, accounting and consulting services), allocated overhead costs, including depreciation charges associated with our information technology, facilities and other administrative functions.

Share-based Compensation

Share-based compensation expenses are recorded within either research and development expenses or administrative expenses depending on the activities of the employees to which they relate.

Our share-based compensation relates to share awards granted to employees, non-employees and directors in connection with Exscientia’s share-based compensation plans. Share-based payment awards primarily consist of service based awards, some of which also have market-based performance conditions. We measure the fair value of service based awards at the grant date using the Black-Scholes option pricing model, whilst the fair value of those awards also containing market-based performance conditions is determined at the grant date using a Monte Carlo simulation model. These models incorporate various assumptions including the expected volatility of our ordinary shares, the expected term of the awards and a risk-free interest rate. We amortise the fair value over the vesting term on a straight-line basis. At each statement of financial position date, the Group revises its estimate of the number of awards that are expected to become exercisable based on forfeiture rates, and with the exception of changes in the estimated probability of achieving market-based performance conditions, adjustments are made such that at the end of the vesting period the cumulative charge is based on the number of awards that eventually vest. If any of the assumptions used in the models change significantly for future grant valuations, share-based compensation expense may differ materially in the future from that recorded in the current period.


5



Other Income

Other income consists of income from grants, tax credits receivable from the United Kingdom’s Research and Development Expenditure Credit Scheme, or RDEC, and Austrian R&D tax credits.

As of June 30, 2023, we operated three grants, a grant provided by the Bill & Melinda Gates Foundation, or BMGF, a grant provided by The Austrian Research Promotion Agency, or FFG and a grant provided by the Austrian Wirtshaftsservice. The first grant provides reimbursement for certain personnel, consumables and overhead costs incurred in the performance of research and development activities, while the FFG grant relates to the early stage testing of a drug’s action in solid tumour patient samples with high content microscopy and deep-learning. These grants compensate us for research and development activities and are recognised as other income in the periods in which the expenses are incurred, unless the conditions for receiving the grant are met after the related expenses have been incurred. In each case, the grant is recognised when it becomes receivable.

The grant provided by the Austrian Wirtshaftsservice relates to funding support in respect of the acquisition of certain property, plant and equipment over the period from August 2020 through February 2022 and is recognised as income as the related assets are depreciated.

Maximum future amounts of £367,000 were receivable under these grants as at June 30, 2023, (December 31, 2022: £561,000).

The other component of other income relates to certain R&D tax credits received by the Group as follows:

•RDEC relates to UK tax credits receivable in relation to eligible research and development expenditures that are not eligible to be included in the Small and Medium-sized Enterprises research and development tax relief programme, or SME Programme, as discussed below under the section entitled Income Tax Benefit, such as when we receive income from a collaboration partner or grant funding for certain projects. These costs are claimed under the RDEC scheme, which up until April 1, 2023 offered a tax credit of up to 13% for qualifying expenditures (subsequently 20%), with certain subcontracted expenditures receiving an 8.5% tax credit (subsequent to April 1, 2023 13%). Under the RDEC regime, qualifying subcontracted costs are limited to those undertaken with certain institutions such as charities, higher education institutes, or scientific research organisations.

Under the RDEC regime, the tax credit is accounted for in our profit before tax under other income, with an associated tax charge recognised at the prevailing rate of corporation tax in the United Kingdom before total loss for the year. Amendments to the UK research and development tax credit regime have been proposed that may (unless limited exceptions apply) introduce restrictions on the tax relief that can be claimed for expenditure incurred on sub-contracted activities or externally provided workers, where such sub-contracted activities are not carried out in the UK or such workers are not subject to UK payroll taxes. These amendments are expected to take effect from April 1, 2024. In addition, the UK government is currently considering a proposal to merge the SME Programme and the RDEC regime into a single scheme with effect from April 2024; if such proposal is implemented in the manner provided in recently-published draft legislation, and we do not qualify as an “R&D-intensive SME”, we will either cease to be able to claim cash rebates in respect of our research and development activities or only be able to receive such cash rebates at a significantly lower rate than at present. These and other potential future changes to the UK research and development tax relief programs may mean we no longer qualify or have a material impact on the extent to which we can make claims or benefit from them.
•The Group also receives an Austrian Research Premium in relation to eligible research and experimental development expenditures. The research premium is accounted for within other income at a rate of 14%.





6



Foreign Exchange (Losses)/Gains

Foreign exchange (losses)/gains arises primarily on the translation of our non-pounds sterling denominated cash and cash equivalents, in addition to outstanding monetary non-pounds sterling financial assets and liabilities, including trade receivables.

Gains/(Losses) on Forward Contracts

The Group enters into contracts whereby fixed amounts of currencies are exchanged at a pre-determined rate at a future date. These currency forward contracts are initially recognised at fair value on the date at which the derivative contract is executed, and are subsequently re-measured at fair value each period-end. Any gains and losses arising from changes in the fair value of derivatives are recognised within profit and loss.

Finance Income

Finance income arises primarily from interest income on cash, cash equivalents and short-term bank deposits.

Finance Expenses

Finance expenses consist of interest expenses related to lease liabilities as recognised under the accounting standard IFRS 16 ‘Leases’, interest in relation to unwinding the discounting of restoration provisions recognised in relation to the Group’s leased premises and loan and bank interest payable.

Share of Loss of Joint Venture

Share of loss of joint ventures consists of our share of costs incurred by RE Ventures I, LLC, the joint venture entity we own equally with RallyBio.

Income Tax Benefit

Our income tax benefit is comprised of research and development tax credits recoverable in the United Kingdom offset by income tax payable in the United States, Austria and Japan. We are subject to corporation taxation in the United Kingdom. Exscientia AI Limited’s wholly owned U.S. subsidiaries, Exscientia, Inc., Exscientia Ventures I, Inc. and Exscientia Ventures II, Inc. are subject to corporation taxation in the United States. Exscientia AI Limited’s wholly owned subsidiary Exscientia KK is subject to corporation taxation in Japan. Exscientia AI Limited’s wholly owned subsidiary Exscientia GmbH is subject to corporation tax in Austria. Due to the nature of our business, we have generated losses since inception. Exscientia, Inc., Exscientia GmbH and Exscientia KK all generate taxable profits due to intercompany transfer pricing arrangements.
As a Group that carries out extensive research and development activities, we benefit from the United Kingdom’s small-and-medium enterprises research and development tax credit regime, or SME Programme, and are able to surrender some of our losses for a cash rebate of up to 33.35% of expenditures related to eligible research and development projects up to April 1, 2023. Qualifying expenditures largely consist of employment costs for relevant staff, external workers provided by CROs, and software and consumables used in research and development projects. Certain subcontracted qualifying research and development expenditures are eligible for a cash rebate of up to 21.68% up to April 1, 2023. A large portion of costs relating to our research and development is eligible for inclusion within the tax credit cash rebate claims. The SME Programme credit is recognised in full in the income tax benefit.





7



The SME Programme cash rebate rate has reduced to 18.6% for qualifying research and development expenditure incurred on or after April 1, 2023, unless we qualify as “R&D intensive” for an accounting period (broadly, a loss making SME whose qualifying research and development expenditure for an accounting period represents 40% or more of its total expenditure for that accounting period will qualify), in which case the cash rebate that may be claimed will be 26.97% of qualifying expenditure. The Group currently expects to qualify as R&D intensive during the year ending December 31, 2023.

Segmented and Enterprise Wide Information

We manage our operations as a single operating segment for the purposes of assessing performance and making operating decisions. Our focus is on the discovery and development of small molecule drug candidates.


Results of Operations

Comparison of the Three and Six Months ended June 30, 2023 and 2022

The following table summarises our Consolidated Statement of Comprehensive Loss for each period presented (in thousands):
Three months ended June 30, Six months ended
June 30,
2023202220232022
Revenue$3,820 £3,006 £7,137 £8,767 £14,112 
Costs of sales(7,967)(6,269)(8,949)(14,726)(14,573)
Gross profit(4,147)(3,263)(1,812)(5,959)(461)
Research and development expenses(41,931)(32,993)(33,067)(66,405)(56,459)
General and administrative expenses(14,787)(11,635)(12,060)(22,549)(19,879)
Foreign exchange (losses)/gains(574)(452)22,797 (1,644)32,471 
Loss on forward contracts— — (11,287)— (11,287)
Other income2,331 1,834 1,517 4,439 2,950 
Operating loss
(59,108)(46,509)(33,912)(92,118)(52,665)
Finance income5,356 4,214 440 7,777 512 
Finance expenses(347)(273)(73)(536)(127)
Share of loss of joint venture(197)(155)(271)(614)(564)
Loss before taxation
(54,296)— (42,723)— (33,816)(85,491)(52,844)
Income tax benefit8,581 6,752 5,140 11,877 8,676 
Loss for the period
$(45,715)£(35,971)£(28,676)£(73,614)£(44,168)
Revenue

The following table presents our revenue for the years indicated (in thousands):
Three months ended June 30,Six months ended
June 30,
2023202220232022
Service fees$— £— £336 £104 £336 
Licensing fees - upfront payments and research funding (including term extension payments)3,820 3,006 6,801 8,663 13,776 
Total Revenue
$3,820 £3,006 £7,137 £8,767 £14,112 
8



The decrease in revenue during the three and six months ended June 30, 2023 relative to the same periods in 2022 was primarily due to amounts recognised in the prior period relating to a collaboration term extension payment.
All licensing revenues during the three and six months ended June 30, 2023 and 2022 relate to obligations discharged over time, and input methods are utilised in order to estimate the extent to which the performance obligations have been satisfied at the end of the reporting period based upon costs incurred, which can be internal or third party in nature.
On January 4, 2022 the Group entered into a strategic research collaboration with Sanofi to develop an AI-driven pipeline of precision engineered medicines. Research will be focused on up to 15 novel small molecule candidates across oncology and immunology, in relation to which the Group received an up-front cash payment of £74,242,000 ($100,000,000) with the potential of $5,200,000,000 in total milestones plus tiered royalties over the duration of the collaboration.
On March 11, 2022, BMS extended its first collaboration arrangement with the Group by six months in order to generate additional data including the use of translational capabilities for key targets under the collaboration using the Group’s precision medicine platform, in relation to which the Group received a cash payment of $5,000,000 (£3,821,000). The term extension payment was treated as an addition to the transaction price relating to the collaboration’s partially unsatisfied performance obligations relating to the design and development of candidates for collaboration targets, with a cumulative recognition of revenue at that date based upon the progress towards satisfaction of the related performance obligations in accordance with paragraph 21b of IFRS 15. The remaining element of the transaction price was recognised as revenue over the remainder of 2022 as the performance obligations were satisfied.

Included within contract liabilities as at June 30, 2023 are unspent upfront payments totalling £6,236,000 relating to performance obligations that have been stopped during the six months to June 30, 2023. These amounts have not been recognised within revenue as discussions are ongoing between the two parties regarding how these funds may be applied to other projects and as such constraint has been applied in accordance with IFRS15.

The Group has assessed its significant collaboration arrangements with commercial partners and determined that no provision for future operating losses is required as at June 30, 2023 taking into account expected future cash inflows and remaining contract liabilities amounts for each collaboration relative to the remaining unavoidable costs of meeting the contracts’ obligations in each instance.


Costs of Sales
The following table presents our costs of sales for the periods indicated (in thousands):
Three months ended June 30,Six months ended June 30,
2023202220232022
External CRO costs$5,133 £4,039 £6,957 £9,812 £11,444 
Internal labour and overheads2,834 2,230 1,992 4,914 3,129 
Total costs of sales$7,967 £6,269 £8,949 £14,726 £14,573 


Cost of sales for the three and six months ended June 30, 2023 were £6.3 million and £14.7 million respectively, as compared to £8.9 million and £14.6 million for the same periods ended June 30, 2022.




9



Research and Development Expenses

The following table presents our research and development expenses for the periods indicated (in thousands):

Three months ended June 30,Six months ended June 30,
2023202220232022
EXS-21546$403 £317 £421 £943 £2,180 
GTAEXS617803 632 — 1,383 — 
Other research projects10,948 8,614 11,241 17,191 19,333 
Total external research and development expense
12,154 9,563 11,662 19,517 21,513 
Headcount related expenses23,143 18,210 16,898 35,413 26,620 
Laboratory consumables and equipment1,329 1,046 2,279 2,852 4,616 
Software and data2,726 2,145 1,755 4,700 3,069 
Amortisation of Acquired IP 1,449 1,140 1,140 2,304 2,267 
Depreciation and Amortisation 2,840 2,235 281 3,446 830 
R&D Consultants667 525 442 1,229 396 
Other552 434 644 1,344 746 
Reimbursements from collaboration partners(2,929)(2,305)(2,034)(4,400)(3,598)
Total internal research and development expenses29,777 23,430 21,405 46,888 34,946 
Total research and development expenses$41,931 £32,993 £33,067 £66,405 £56,459 

Research and development expenses for the three and six months ended June 30, 2023 were £33.0 million and £66.4 million respectively, as compared to £33.1 million and £56.5 million for the same period ended June 30, 2022. Research and development expenses in the second quarter 2023 were relatively flat over the second quarter 2022, as areas of pipeline and operational growth were offset by efficiency and cost savings activities.

General and Administrative Expenses

General and administrative expenses for the three and six months ended June 30, 2023 were £11.6 million and £22.5 million respectively, as compared to £12.1 million and £19.9 million for the same periods ended June 30, 2022. The increase in general and administrative expenses over the six months to June 30, 2023 was primarily associated with the growth of the business being offset by automation and cost efficiency measures.

Foreign Exchange Losses/Gains

Foreign exchange losses for the three and six months ended June 30, 2023 were £0.5 million and £1.6 million respectively, as compared to gains of £22.8 million and £32.5 million for the same periods ended June 30, 2022. The current period losses are due to the impact of pounds sterling strengthening against both the U.S dollar and Euro on our foreign currency denominated cash deposits.

Loss on Forward Contracts

During the three months ended June 30, 2022, the Group entered into a series of forward contracts of under three months duration whereby a commitment was made to exchange U.S. dollars for a fixed number of pounds sterling in order to hedge its exposure to foreign exchange risk. The U.S. dollar strengthened during the period relative to the rates agreed as part of the forward contract arrangements, resulting to a loss in the period of £11.3 million in relation to these transactions. The Company does not utilise derivative financial instruments for speculative purposes.



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Other Income

Other income for the three and six months ended June 30, 2023 was £1.8 million and £4.4 million respectively, as compared to £1.5 million and £3.0 million for three and six months ended June 30, 2022. The increase in other income for the six month period was primarily due to the UK RDEC tax credit which has increased as a result of increases in the underlying research and development expenditure upon which the claim is made.

Net Finance Income

Net finance income for the three and six months ended June 30, 2023 were a net income of £3.9 and £7.2 million as compared to net finance income of £0.4 million during the three and six months ended June 30, 2022. The increase is primarily due to increased interest on bank deposits as a result of increasing interest rates throughout the last year.

Share of Loss of Joint Venture

The Group’s share of loss on joint ventures for the three and six months ended June 30, 2023 was £0.2 million and £0.6 million respectively, as compared to £0.3 million and £0.6 million for the three and six months ended June 30, 2022.

Income Tax Benefit

Income tax benefit for the three and six months ended June 30, 2023 was £6.8 million and £11.9 million respectively, as compared to £5.1 million and £8.7 million for the same periods ended June 30, 2022. Our income tax benefit balance largely consists of research and development tax credits with the increase in benefit due to an underlying increase in qualifying research and development expenditure, offset by a reduction in the weighted average rate at which our UK SME tax credits can be claimed as referred to above.

Liquidity and Capital Resources

Sources of Liquidity

Since its inception, the Group has not generated any revenue from the commercialisation of drug candidates and has instead financed its operations through sales of ordinary and preferred shares in addition to research funding and milestone payments resulting from its Partnered Programmes. The Group had cash, cash equivalents and short term bank deposits of £400.2 million and £505.8 million as of June 30, 2023 and December 31, 2022, respectively.

The Group’s primary uses of capital are, and are expected to continue to be, research and development expenses, compensation and related personnel expenses, and other operating expenses, including facilities. Cash used to fund operating expenses is impacted by the timing of when we pay expenses, as reflected in the change in our outstanding accounts payable and accrued expenses. We expect to incur substantial expenses in connection with the advancement of our drug candidates through the phases of clinical development.













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The following table summarises the primary sources and uses of cash for each period presented (in thousands):

Six months ended June 30,
20232022
Net cash flows (used in)/from operating activities$(107,606)£(84,669)£27,552 
Net cash flows used in investing activities(85,973)(67,647)(109,439)
Net cash flows used in financing activities(2,037)(1,603)(3,042)
Net decrease in cash and cash equivalents$(195,616)£(153,919)£(84,929)
Increase in short term bank deposits$64.438 £50,702 £100,059 
Exchange (loss)/gain on cash and cash equivalents$(3,101)£(2,440)£24,588 
Net (decrease)/increase in cash, cash equivalents and short term bank deposits including foreign exchange (losses)/gains on cash and cash equivalents$(134,279)£(105,657)£39,718 

Operating Activities

Net cash generated used in operating activities increased to £84.7 million for the six months ended June 30, 2023 as opposed to cash generated from operating activities of £27.6 million for the six months ended June 30, 2022, primarily as a result of increased research and development expenditure and prior year collaboration inflows.

We expect that our cash inflows will continue to be highly variable from period to period, primarily due to the structure of our collaboration agreements. These agreements generally include payments to us at inception of the contract and also upon the achievement of milestones, the timing and achievement of which are highly uncertain and difficult to predict.

Investing Activities

Net cash used in investing activities for the six months ended June 30, 2023 was £67.6 million, as compared to net cash used of £109.4 million for the six months ended June 30, 2022. The majority of the current period outflow relates to the investment of £150.0 million into a 9 month fixed term bank deposit on March 24, 2023 offset by the maturity of the 12 month deposit of £100.0 million plus receipt of accrued interest of £2.4 million on June 21, 2023. There has been continued investment throughout the period on the purchase of property, plant and equipment, primarily for our automation laboratory in Milton Park, Oxford.

Financing Activities

Net cash used in financing activities for the six months ended June 30, 2023 was £1.6 million as compared to net cash provided of £3.0 million for the six months ended June 30, 2022. The majority of the current period financing cash outflow relates to payments of obligations under lease liabilities.

Funding Requirements

Since our inception, we have incurred significant losses due to our research and development expenses. We expect to continue to incur significant losses in the foreseeable future and expect our expenses to increase in connection with our ongoing operations, particularly as we advance our product candidates into clinical development and commercialisation.
We believe that our existing cash, cash equivalents and short term bank deposits will be sufficient to fund our operations and capital expenditure requirements for the foreseeable future.

We may need to obtain additional financing to fund our future operations, including completing the development and commercialisation of our drug candidates. We are subject to risks related to the development and commercialisation of pharmaceutical products, and we may encounter unforeseen expenses, difficulties,
12



complications, delays and other unknown factors that may adversely affect our business. Our forecast of sufficient financial runway to support our operations is a forward-looking statement and involves risks and uncertainties, and actual results could vary as a result of a number of factors. Our future capital requirements will depend on many factors, including, but not limited to:

•progress, timing, scope and costs of our clinical trials, including the ability to timely initiate clinical sites, enrol subjects and manufacture drug candidates for our ongoing, planned and potential future clinical trials;
•time and costs required to perform research and development to identify and characterise new drug candidates from our research programmes;
•time and costs necessary to obtain regulatory authorisations and approvals that are required to execute clinical trials or commercialise our products;
•our ability to successfully commercialise our drug candidates, if approved;
•our ability to have clinical and commercial products successfully manufactured consistent with the regulations of the U.S. Food and Drug Administration, the European Medicines Agency and other applicable regulatory authorities;
•amount of sales and other revenues from drug candidates that we may commercialise, if any, including the selling prices for such potential products and the availability of adequate third-party coverage and reimbursement for patients;
•sales and marketing costs associated with commercialising our products, if approved, including the cost and timing of building our marketing and sales capabilities;
•terms and timing of any revenue from our existing and future collaborations;
•costs of operating as a public company;
•time and cost necessary to respond to technological, regulatory, political and market developments;
•costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights;
•costs associated with, and terms and timing of, any potential acquisitions, strategic collaborations, licensing agreements or other arrangements that we may establish; and
•inability of clinical sites to enrol patients as healthcare capacities are required to cope with natural disasters (that could be a result of climate change) or health system emergencies such as the COVID-19 pandemic.

The outcome of any of these or other variables with respect to the development of any of our current and future drug candidates could significantly change the costs and timing associated with the development and commercialisation of that drug candidate. Furthermore, our operating plans may change in the future, and we may need additional funds to meet operational needs and capital requirements associated with such operating plans.

Known Trends, Events and Uncertainties

A general global economic slowdown has resulted in inflation rates, particularly in the United States and the United Kingdom, not seen in over a decade. Increased inflation may result in increased operating costs (including labour costs) and may affect our operating budgets. In addition, the U.S. Federal Reserve and the Bank of England have raised, and are expected to further raise, interest rates in response to concerns about inflation. Increases in interest rates, especially if coupled with reduced government spending and volatility in financial markets and the global banking system, may further increase economic uncertainty and the risks to our business. Additionally, the general consensus among economists suggests that we should expect a higher recession risk to continue over the next year, which, together with the foregoing, could result in further economic uncertainty and volatility in the capital markets in the near term, and could negatively affect our operations.

Furthermore, such economic conditions have produced downward pressure on share prices. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience increases in the near future (especially if inflation rates continue to rise) on our operating costs, including our labour costs and research and development costs, costs due to supply chain constraints, and wage increases, which may result in additional stress on the Company’s working capital resources. If the disruptions, instability and slowdown deepen or persist, we may not be able to access our cash as needed or to raise additional capital on
13



favourable terms, or at all, which could in the future negatively affect our financial condition and our ability to pursue our business strategy.

Critical Accounting Policies and Significant Judgements and Estimates

Our unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are prepared in compliance with IAS 34, as issued by the IASB. The preparation of the consolidated financial statements in accordance with IFRS requires the use of estimates and assumptions that affect the value of assets and liabilities — as well as contingent assets and liabilities — as reported on the statement of financial position date, and revenues and expenses arising during the fiscal year. We describe our significant accounting policies and judgements in Note 2e, “Significant accounting policies” and Note 3 “Critical Accounting estimates and judgements” in our unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023.
14

Exscientia Business Update for Second Quarter and First Half of 2023

OXFORD, U.K. - Exscientia plc (Nasdaq: EXAI)

Recent advancements in the Company’s pipeline, collaborations and operations, as well as financial results for the second quarter and first half 2023, are summarised below. Exscientia will host a conference call Thursday, August 10 at 1:30 p.m. BST / 8:30 a.m. EDT.

“In the first half of 2023, four molecules precision-designed by Exscientia advanced further into clinical trials, a significant achievement as we progress our growing pipeline,” said Professor Andrew Hopkins FRS FMedSci, founder and Chief Executive Officer of Exscientia. “Most recently, we announced the dosing of the first patient in ELUCIDATE, a Phase 1/2 trial of our CDK7 inhibitor GTAEXS617 (‘617). We also initiated a prospective observational study, EXCYTE-1, evaluating the utility of our precision medicine platform in ovarian cancer, paving the way for its potential broader application across solid tumours. As we continue executing our internal and partnered programmes and integrating automation across our end-to-end discovery process, Exscientia is solidifying its leadership in AI-enabled drug design and development.”

Recent Highlights

Internal pipeline
●In July, Exscientia announced enrolment of the first patient in ELUCIDATE, a Phase 1/2 dose escalation trial evaluating its novel CDK7 inhibitor, ‘617, for the treatment of advanced solid tumours
○‘617 was designed by Exscientia in collaboration with GT Apeiron for high potency, selectivity, oral bioavailability and safety
○The ELUCIDATE Phase 1/2 trial will evaluate the safety, efficacy and pharmacokinetics of ‘617 across multiple ascending doses in six indications including head and neck cancer, pancreatic cancer, non-small cell lung cancer (NSCLC), HR+/HER2- breast carcinoma and ovarian cancer
●EXS21546 (‘546), Exscientia’s A2AR antagonist, continues to enrol patients in the Phase 1/2 IGNITE clinical trial in relapsed/refractory renal cell carcinoma and NSCLC
●EXS74539 (‘539) and EXS73565 (‘565), Exscientia’s wholly-owned LSD1 inhibitor and MALT1 protease inhibitor, respectively, continue to progress through IND/CTA-enabling studies

Partnered programmes
●Two programmes, EXS4318 (‘4318) a PKC-theta inhibitor precision designed by Exscientia and in-licensed by Bristol-Myers Squibb, and DSP-2342, a dual 5-HT2A/5-HT7 antagonist designed for Sumitomo Pharma, are now in Phase 1 clinical trials

Precision medicine
●In July, Exscientia announced the initiation of EXCYTE-1, a prospective observational study to evaluate the utility of Exscientia’s precision medicine platform in ovarian cancer
○The multi-centre two-phase study will evaluate Exscientia’s single cell functional precision medicine platform in ovarian cancer and investigate the relationship between ex vivo drug response in primary tumour samples and patient clinical response
○The study also aims to further validate the platform for wider use across a variety of solid tumours

AI and automation
●Exscientia opened its automation laboratory in Milton Park, Oxfordshire, which will enable the Company to integrate generative AI and automation to drive faster, high quality experimentation
●The Company is building its own hardware and software solutions to automate a wide range of experimental laboratory processes including chemical synthesis, as well as biochemical and biophysical screening
●Capabilities are expected to be online later in 2023

Leadership expansion and recognition
●The Company expanded its technology leadership team to maintain nimble product development through the promotion of three experienced leaders to Exscientia’s executive committee. Each heads one of three newly created technology functions to further align executive decision-making with Exscientia’s functional priorities in technology:


oProfessor Charlotte Deane, Ph.D. MBE has been promoted to Chief AI Officer, with continued focus on the application of AI, machine learning and physics-based methods for the discovery and development of novel drug candidates
oEileen Jennings-Brown joined Exscientia as Chief Information Officer in 2022 and will continue to be responsible for this critical priority going forward
oJohn P. Overington, Ph.D. has been promoted to Chief Data Officer, focused on leading a unified data function covering all aspects of data generation and analysis
●Exscientia also appointed Harvard Professor Franziska Michor, Ph.D., to its Board of Directors. Professor Michor brings over 20 years of experience in cancer research and has authored more than 180 publications. Her work currently focuses on the evolutionary dynamics of cancer initiation, progression, response to therapy and emergence of resistance

Investor Call and Webcast Information
Exscientia will host a conference call on Thursday, August 10 at 1:30 p.m. BST / 8:30 a.m. EDT.
A webcast of the live call can be accessed by visiting the “Investors and Media” section of the Company’s website at investors.exscientia.ai. Alternatively, the live conference call can be accessed by dialling +1 (888) 330 3292 (U.S.), +44 203 433 3846 (U.K.), +1 (646) 960 0857 (International) and entering the conference ID: 8333895. A replay will be available for 90 days under "Events and Presentations” in the “Investors and Media” section of the Exscientia website.

Second Quarter and First Half 2023 Financial Results
For the convenience of the reader, the Company has translated pound sterling amounts to U.S. dollars at the rate of £1.000 to $1.2709, which was the noon buying rate of the Federal Reserve Bank of New York on June 30, 2023.

Revenue: Revenue for the three and six months ended June 30, 2023 was $3.8 million and $11.1 million respectively, compared to $9.1 million and $17.9 million for the three and six months ended June 30, 2022. The decrease in revenue year over year was primarily due to amounts recognised in the prior period relating to a collaboration term extension payment.

Research and development expenses: R&D expenses for the three and six months ended June 30, 2023 were $42.0 million and $84.4 million respectively, as compared to $42.0 million and $71.8 million for the same period ended June 30, 2022. Research and development expenses in the second quarter 2023 were relatively flat over the second quarter 2022, as areas of pipeline and operational growth were offset by efficiency and cost savings activities.

General and administrative expenses: G&A expenses for the three and six months ended June 30, 2023, were $14.7 million and $28.6 million respectively, or 23% and 22% of total operating expenses. For the three and six months ended June 30, 2023, G&A expenses decreased by $0.6 million and increased by $3.3 million compared to the three and six months ended June 30, 2022 respectively, primarily associated with the growth of the business being offset by automation and cost efficiency measures.

Cash inflows: For the second quarter 2023, Exscientia received $0.7 million in cash inflows from its collaborations as compared to $111.0 million during the second quarter 2022, when the upfront payment for the Sanofi collaboration was received.

Net operating cash flow and cash balance: For the three and six months ended June 30, 2023, net operating cash outflows were $52.5 million and $107.6 million respectively, in comparison to net operating cash inflows of $54.9 million and $35.0 million for the three and six months ended June 30, 2022. Cash, cash equivalents and short-term bank deposits as of June 30, 2023 were $508.6 million, as compared to $642.8 million as of December 31, 2022 using the June 30, 2023 constant currency rate.
●Includes constant currency mark-to-market foreign exchange impact of 5% based on the strengthening of pounds sterling through June 30, 2023
●During the second quarter of 2023, Exscientia recognised net foreign exchange losses of $0.5 million
●The Company holds its deposits in both GBP and USD, intended to match expected operational cash needs in order to limit the impact of exchange rate fluctuations

SELECTED CONSOLIDATED STATEMENT OF OPERATIONS, CONSTANT CURRENCY CONVERSION (unaudited)
($ millions, except per share data, at the rate of £1.000 to $1.2709)


Three months ended
 June 30,		Six months ended
June 30,
2023202220232022
Revenue3.89.111.117.9
Cost of sales(8.0)(11.4)(18.7)(18.5)
Research and development expenses(42.0)(42.0)(84.4)(71.8)
General and administrative expenses(14.7)(15.3)(28.6)(25.3)
Operating expenses(64.7)(68.7)(131.7)(115.6)
Foreign exchange (losses)/gains(0.5)14.5(2.1)26.9
Other income2.31.95.63.8
Operating loss(59.1)(43.2)(117.1)(67.0)
Finance income/(expense)5.00.59.20.5
Share of loss on joint ventures(0.2)(0.3)(0.8)(0.7)
Loss before taxation(54.3)(43.0)(108.7)(67.2)
Income tax benefit8.66.515.111.0
Loss for the period(45.7)(36.5)(93.6)(56.2)
Net loss per share(0.37)(0.31)(0.76)(0.46)
Weighted average shares outstanding (basic and diluted)123,748,524121,899,774123,504,575121,432,193


SELECTED CONSOLIDATED STATEMENT OF CASH FLOWS. CONSTANT CURRENCY CONVERSION (unaudited)
($ millions, except per share data, at the rate of £1.000 to $1.2709)
June 30, 2023December 31, 2022
Cash, cash equivalents & short-term bank deposits508.6642.8
Total assets716.7825.6
Total equity530.3608.6
Total liabilities186.4217.0
Total equity and liabilities716.7825.6

SELECTED CONSOLIDATED STATEMENT OF CASH FLOWS. CONSTANT CURRENCY CONVERSION (unaudited)
($ millions, except per share data, at the rate of £1.000 to $1.2709)
June 30, 2023June 30, 2022
Net cash flows (used in)/from operating activities(107.6)35.0
Net cash flows used in investing activities(86.0)(139.1)
Net cash flows from financing activities(2.0)(3.9)
Net decrease in cash and cash equivalents(195.6)(108.0)
Exchange (loss)/gain on cash and cash equivalents(3.1)31.2
Net (decrease)/increase in cash, cash equivalents and short-term bank deposits*(134.3)50.5


* Includes both increases in short term bank deposits and foreign exchange gains/(losses) on cash and cash equivalents

About Exscientia
Exscientia is an AI-driven precision medicine company committed to discovering, designing and developing the best possible drugs in the fastest and most effective manner. Exscientia developed the first-ever functional precision oncology platform to successfully guide treatment selection and improve patient outcomes in a prospective interventional clinical study, as well as to progress AI-designed small molecules into the clinical setting. Our internal pipeline is focused on leveraging our precision medicine platform in oncology, while our partnered pipeline broadens our approach to other therapeutic areas. By pioneering a new approach to medicine creation, we believe the best ideas of science can rapidly become the best medicines for patients.

For more information visit us on https://www.exscientia.ai or follow us on Twitter @exscientiaAI.

Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including with respect to the initiation, timing and progress of, and data collected during and reported from, the Company's clinical trials, as well as expectations with respect to the outcome or benefit of such trial. Any statement describing Exscientia’s goals, plans, expectations, intentions or beliefs is a forward-looking statement and should be considered an at-risk statement. Such statements are subject to a number of risks, uncertainties and assumptions, including those related to: the initiation, scope and progress of Exscientia’s and its partners’ planned and ongoing preclinical studies and clinical trials and ramifications for the cost thereof; clinical, scientific, regulatory and technical developments; the process of discovering, developing and commercialising product candidates that are safe and effective for use as human therapeutics; and the endeavour of building a business around such product candidates. In light of these risks and uncertainties, and other risks and uncertainties that are described in the Risk Factors section and other sections of Exscientia’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC) on March 23, 2022 (File No. 001-40850), and other filings that Exscientia makes with the SEC from time to time (which are available at https://www.sec.gov/), the events and circumstances discussed in such forward-looking statements may not occur, and Exscientia’s actual results could differ materially and adversely from those anticipated or implied thereby. Although Exscientia’s forward-looking statements reflect the good faith judgement of its management, these statements are based only on facts and factors currently known by the Company. As a result, you are cautioned not to rely on these forward-looking statements.

Investor Relations:
Sara Sherman
investors@exscientia.ai

Media:
Oliver Stohlmann
media@exscientia.ai

Exhibit 99.4

SECOND AMENDMENT TO COLLABORATION AND LICENSE AGREEMENT
This Second Amendment to Collaboration and License Agreement (the “Second Amendment”) is entered into as of July 26, 2023 (the “Second Amendment Date”) by and between Exscientia AI Limited, registered in Scotland under SC428761, whose registered office is at Level 3, Dundee One River Court, 5 West Victoria Dock Road, Dundee, United Kingdom (“EXS”), and Sanofi, a French Société Anonyme, having its registered head office at 54, rue La Boétie, 75008 Paris, France (“Sanofi”). EXS and Sanofi are each referred to herein by name or, individually, as a “Party” or, collectively, as the “Parties.”
Recitals
WHEREAS the Parties entered into that certain Collaboration and License Agreement (as amended by the First Amendment and this Second Amendment, the “Agreement”), dated January 4, 2022, and that certain First Amendment to Collaboration and License Agreement, dated January 30, 2023 (the “First Amendment”); and
WHEREAS the Parties wish to amend the Agreement to modify certain terms and conditions of the Agreement, as further described herein.
Now Therefore, in consideration of the foregoing premises and the mutual promises, covenants and conditions contained in this Second Amendment, in accordance with Clause 37.4 of the Agreement, the Parties agree as follows:
1.Defined Terms. As used in this Second Amendment, capitalized terms, whether used in the singular or plural form, that are capitalized but not defined herein shall have the meanings ascribed to such terms in the Agreement.
2.Amendments.
(a)Clause 1.1.175 of the Agreement is hereby deleted in its entirety and replaced with the following:
1.1.175    “Research Term” means the date starting on the Effective Date and ending on the [***] anniversary of the Effective Date, provided that if the Substitution Term has not expired before the [***] anniversary of the Effective Date, then the Research Term will be extended until the later of: (i) the date on which the Substitution Term expires, and (ii) if any Approved Collaboration Target was substituted for another Approved Collaboration Target before the expiration of the Substitution Term, the date on which the Small Molecule Research Project for the substituted-in Approved Collaboration Target is completed or terminated by the Joint Steering Committee.

(b)Clause 1.1.194 of the Agreement is hereby deleted in its entirety and replaced with the following:
1.1.194    “Sanofi-Originated Molecule” means a Small Molecule originated from Sanofi’s early stage Research pipeline that is Controlled by Sanofi or one of its Affiliates as of the date such Small Molecule is provided by or on behalf of Sanofi to EXS for use in the Research Collaboration hereunder, as identified in the applicable Research Plan.

(c)Clause 1.1.213 of the Agreement is hereby deleted in its entirety and replaced with the following:
1.1.213    “Substitution Term” means the period running from the Effective Date through the expiration of the [***].

1

Certain confidential information contained in this document, marked by [***], has been omitted because it is both (i) not material and (ii) is the type that the registrant treats as private or confidential.

(d)A new Clause 1.1.245 is hereby added to the Agreement which shall provide as follows:
1.1.245    “[***] Target” means a Collaboration Target that, as of the date it is designated as an Approved Collaboration Target in accordance with Clause 4.1 of the Agreement, is designated as a [***] Target by the Joint Steering Committee based on the criteria set forth on Exhibit B to the Second Amendment, in accordance with Clause 4.1 of the Agreement.

(e)A new Clause 1.1.246 is hereby added to the Agreement which shall provide as follows:
1.1.246    “[***] Target” means a Target that, as of the date it is designated as a Collaboration Target or a Substitution Target in accordance with paragraph 3.3 of Schedule 1 [***] of the Agreement, is designated as a [***] Target by the Joint Steering Committee based on the criteria set forth on Exhibit A to the Second Amendment, in accordance with paragraph 3.3 of Schedule 1 [***] of the Agreement.

(f)A new Clause 1.1.247 is hereby added to the Agreement which shall provide as follows:
1.1.247    “Second Amendment” means that certain second amendment to this Agreement, dated July [***], 2023.

(g)Paragraph 3.3 of Schedule 1 [***] of the Agreement is hereby deleted in its entirety and replaced with the following:
3.3    [***]

(h)Paragraph 4.1 of Schedule 1 [***] of the Agreement is hereby deleted in its entirety and replaced with the following:
4.1    [***]

(i)Clause 4.1 of the Agreement is hereby deleted in its entirety and replaced with the following:
4.1    Following the successful completion of the Target Validation Plan with respect to a Collaboration Target that is a Small Molecule Inhibitor modality and the delivery of the Preliminary Research Plan in accordance with Clause 3.2, the Joint Steering Committee shall either:

(a)    designate in writing the applicable Collaboration Target as an “Approved Collaboration Target”; or

(b)    reject in writing the applicable Collaboration Target as an Approved Collaboration Target. For clarity, such rejected Collaboration Target may be subsequently determined by the Joint Steering Committee to be a Collaboration NSM Target in accordance with paragraph 5.1 of Schedule 1.

At the time the Joint Steering Committee designates a Collaboration Target as an Approved Collaboration Target, it will also designate whether such Target is a [***] Target, based on the criteria set forth on Exhibit B to the Second Amendment. For clarity, the Joint Steering Committee shall [***]. Unless the Joint Steering Committee agrees otherwise, there will be no more than [***] Small Molecule Research Projects with respect to [***] Targets ongoing concurrently at any given time during the Research
2


Term. As an example, if there are [***] Small Molecule Research Projects ongoing with respect to [***] Targets at a given time, and [***] substituted out pursuant to any of Sanofi’s substitution rights in Clauses 4.5 and 4.6, then the Joint Steering Committee could subsequently designate [***] new Approved Collaboration Targets as [***] Targets. In the event the Joint Steering Committee is unable to reach a decision by consensus as to whether (i) a particular Target should be designated as an Approved Collaboration Target or (ii) a particular Target should be designated as a [***] Target, then Clause 11.9 will apply, and for the avoidance of doubt, following the dispute resolution process described in Clause 11.9 and subject to the exceptions set forth in Clause 11.9(a)-(m), Sanofi will have the final decision-making authority with respect to such decision; provided that the exceptions set forth in Clause 11.9(a)-(c) shall not limit Sanofi’s ability to exercise its final decision-making authority with respect to whether (i) a particular Target should be designated as an Approved Collaboration Target or (ii) a particular Target should be designated as a [***] Target. For purposes of the dispute resolution process described in Clause 11.9, the Parties’ respective Senior Executive management contacts shall be (x) in the case of Exscientia, its Chief Executive Officer and (y) in the case of Sanofi, its Global Head of Research (or in each case, their respective designees with power and authority to resolve the disputed matter).

(j)The Parties hereby acknowledge and agree that (i) [***] shall be considered a [***] Target for purposes of this Second Amendment, and (ii) [***] shall be considered a [***] Target for purposes of this Second Amendment; provided that, notwithstanding anything in Clause 14.1 of the Agreement to the contrary, [***]. The Parties acknowledge that [***] do not necessarily satisfy the criteria to qualify as a [***]Target or [***] Target, as applicable, but the Parties have agreed [***] in consideration of the covenants and conditions contained in this Second Amendment. For clarity, (i) any Targets designated as Collaboration Targets prior to the Second Amendment Date (other than [***]) shall not be considered [***]Targets, and (ii) any Collaboration Targets designated as Approved Collaboration Targets prior to the Second Amendment Date (other than [***]) shall not be considered [***] Targets.
(k)Clause 4.6 of the Agreement is hereby deleted in its entirety and replaced with the following:
4.6    After the [***] with respect to [***] Approved Collaboration Targets and [***] following the start of the drug design activities in accordance with the Research Plan for that Approved Collaboration Target as recorded by the Alliance Managers (excluding any preliminary preparation steps such as [***]) under the applicable Small Molecule Research Project for that Approved Collaboration Target, Sanofi (in its sole discretion) will have the [***] to substitute, at no cost, each of those [***] Approved Collaboration Targets for any Target listed in the Nomination List or Substitution List [***]. For the avoidance of doubt, any Target that has become an Approved Collaboration Target due to the [***] in the Nomination List or Substitution List.

(l)New Clauses 11.9(k) to 11.9(m) are hereby added to the Agreement which shall provide as follows:
11.9    […]

(k)     amend any criteria for [***] Targets, as set forth on Exhibit A to the Second Amendment, or for [***] Targets, as set forth on Exhibit B to the Second Amendment;

(l)    determine that more [***] active Target Validation Plans with respect to [***] Targets can be ongoing concurrently at any given time during the Research Term; or

3


(m)    determine that more than [***] active Small Molecule Research Projects with respect to [***] Targets can be ongoing concurrently at any given time during the Research Term.

(m)Clause 14 of the Agreement is hereby deleted in its entirety and replaced with the following:
14.1Subject to Clauses 14.2 and 14.3, in respect of each Approved Collaboration Target, (i) upon the first occurrence of the [***] to be achieved for that Approved Collaboration Target and (ii) upon the first occurrence of the [***] to be achieved for that Approved Collaboration Target, in each case, as described in the table below (a “Research Milestone”), EXS shall invoice Sanofi and Sanofi shall pay EXS the corresponding amount set out in the table below (each, a “Research Milestone Payment”), in accordance with Clause 19.8 (with the applicable Research Milestone Payment [***] and [***] and [***]):
[***]
[***]
[***]

[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

14.2    For the avoidance of doubt:
(a)subject to Clause 14.2(c), in respect of each Approved Collaboration Target, [***] and, for clarity, if a Target is both a [***] and a [***] Target, then [***]; and
(b)where multiple Small Molecules or Collaboration Development Candidates are Directed To the same Approved Collaboration Target, [***];
4


(c)where (i) any Approved Collaboration Target has been substituted in pursuant to the [***] as a replacement for an Approved Collaboration Target (the “Substituted Out Target”) and (ii) prior to the date of substitution, [***]; and
(d)if, prior to the date on which any [***] becomes payable with respect to an [***] for an Approved Collaboration Target, [***].
14.3    Sanofi shall pay, for all Research Milestone Payments in aggregate, no more than USD [***]. If a Research Milestone Payment would result in Sanofi paying in excess of USD [***], then Sanofi shall pay the portion of that Research Milestone Payment that results in Sanofi paying USD [***] in aggregate for all Research Milestone Payments. After Sanofi has paid USD [***] in aggregate for all Research Milestone Payments, no further Research Milestone Payments will be due.

(n)A new Clause 22A is hereby added to the Agreement which shall provide as follows:
22A    PRE-ACT RESEARCH INVENTIONS
22A.1    Other than any [***], all Patent Rights, Know-How, and other intellectual property rights arising out of Research activities conducted under the Research Collaboration prior to designation of a Target as an Approved Collaboration Target shall be referred to as “Pre-ACT Research Inventions”. For clarity, Pre-ACT Research Inventions [***] or [***]. Ownership of all Pre-ACT Research Inventions [***]. For clarity, each Party shall [***].
22A.2    Subject to the other terms of the Agreement, including the exclusivity obligations in Clause 2 of the Agreement and the exclusive licenses granted to Sanofi in Clause 20.1 of the Agreement:
(a)     with respect to any [***] that is not a [***] (as defined in paragraph 2(c)(i) of the First Amendment), each Party grants to the other Party a [***], perpetual, irrevocable, freely transferable, worldwide license, with the right to grant sublicenses through multiple tiers (as provided in Clause 20.4 of the Agreement), under such Party’s [***], for purposes of [***]; and
(b)    with respect to any [***] that is a [***], if a [***], then each Party grants to the other Party a [***], perpetual, irrevocable, freely transferable, worldwide, with the right to grant sublicenses through multiple tiers (as provided in Clause 20.4 of the Agreement), under such Party’s [***].
For the avoidance of doubt, once a Target is designated as an Approved Collaboration Target, then Clause 22A.3 below applies.

22A.3    Upon designation of a Target as an Approved Collaboration Target, the Pre-ACT Inventions arising out of the Research activities that resulted in such Target shall be deemed [***], [***], or [***], as applicable, for purposes of the Agreement (as such terms apply mutatis mutandis to [***]; provided that:
(a)     any such Pre-ACT Research Invention that is conceived, developed, generated, or otherwise made by or on behalf of Sanofi (other than by EXS, its Affiliates or subcontractors) shall be deemed [***]
(b)    any such Pre-ACT Research Invention that is not covered by the foregoing Clause (a) and pertains to [***] shall be: (i) deemed [***]; or (ii) [***]; and
5


(c)    any such Pre-ACT Research Invention that is not covered by the foregoing Clause (a) or Clause (b), [***], and is [***] shall be deemed [***] (as further described in the definition of [***]).
22A.5    Notwithstanding anything to the contrary in the First Amendment, the terms of this Clause 22A shall apply to [***] (as defined in paragraph 2(c)(i) of the First Amendment) and shall be deemed to amend and replace the terms of Clause 2(c) of the First Amendment.
22A.6    Notwithstanding anything to the contrary in Clause 33.5 of the Agreement, the Parties agree that the terms of this Clause 22A shall survive and apply after any expiration or termination of the Agreement.
(o)A new Clause 33.2(e) is hereby added to the Agreement which shall provide as follows:
33.2    […]

(e)     Notwithstanding anything to the contrary in Clause 33.2 of this Agreement, any [***] that is conceived, developed, generated, or otherwise made by or on behalf of Sanofi (other than by EXS, its Affiliates or subcontractors) shall [***]. If any [***] is, at the effective date of termination, [***] the Development, Manufacture, or Commercialisation of any Reversion Molecules and Reversion Products directed to such Terminated Target (the “[***]”), then EXS will [***] under [***], solely for purposes of [***] the Development, Manufacture, or Commercialisation of any Reversion Molecules and Reversion Products directed to such Terminated Target. If EXS desires to [***], EXS shall notify Sanofi in writing (such notice, an “Exercise Notice”) on a Reversion Product-by-Reversion Product basis, within [***] days following the effective date of termination with respect to the applicable Terminated Target, which notice shall include [***], and the Parties shall [***], including a reasonable royalty to be paid by EXS to Sanofi on net sales of all Reversion Products, on a Reversion Product-by-Reversion Product and country-by-country basis for a royalty term to be negotiated in good faith by the Parties, but consistent with the Royalty Term. During the [***] for the applicable Terminated Target, [***], Sanofi will [***] for the Development, Manufacturing, or Commercialisation of Reversion Molecules and Reversion Products directed to the Terminated Target, as set forth above in this Clause 33.2(e). For purposes of this Clause 33.2(e), [***].

3.Miscellaneous.
(a)No Other Amendments. This Second Amendment shall be deemed to be a part of and incorporated into the Agreement. In the event of an express conflict between this Second Amendment and the Agreement, this Second Amendment shall control. Except as expressly set forth in this Second Amendment, all of the terms and conditions of the Agreement shall remain unchanged and are ratified and confirmed in all respects and remain in full force and effect.
(b)Entire Agreement. This Second Amendment, together with the Agreement and any exhibits or attachments thereto (including the Schedules and each Research Plan and NSM Research Plan, and all attachments thereto), contains the entire agreement by the Parties with respect to the subject matter hereof, and any reference to the Agreement shall refer to the Agreement, as amended by this Second Amendment.
(c)Counterparts. This Second Amendment may be executed in counterparts with the same effect as if both Parties had signed the same document. All such counterparts will be deemed an original, will be construed together and will constitute one and the same instrument.
6


(d)Governing Law. This Second Amendment, and any non-contractual obligations arising out of or in connection with it, is governed by the laws of the State of New York, without regard to conflict of laws principles.
[Signature Page Follows]


7


In Witness Whereof, and intending to be legally bound hereby, the Parties have caused this Second Amendment to be executed by their respective duly authorized representatives as of the Second Amendment Date.
EXSCIENTIA AI LIMITED
By: /s/ David Hallett    
Name: David Hallett
Title: Chief Scientific Officer
SANOFI
By: /s/ Brian Bronk    
Name: Brian Bronk
Title: Global Head of Business Development, Neurology, Rare Diseases & Technology Platforms



Exhibit A
[***] Target Criteria
[***].


2



Exhibit B
[***] Target Criteria
[***]

3

v3.23.2
Cover
 6 Months Ended
Jun. 30, 2023
Cover [Abstract]  
Document Type 6-K
Entity File Number 001-40850
Entity Registrant Name Exscientia plc
Entity Address, Address Line One The Schrödinger Building
Entity Address, Address Line Two Oxford Science Park
Entity Address, City or Town Oxford
Entity Address, Postal Zip Code OX4 4GE
Entity Address, Country GB
Entity Central Index Key 0001865408
Amendment Flag false
Document Period End Date Jun. 30, 2023
Document Fiscal Year Focus 2023
Document Fiscal Period Focus Q2
Current Fiscal Year End Date --12-31
v3.23.2
Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive (Loss)/Income - GBP (£)
£ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Profit or loss [abstract]        
Revenue £ 3,006 £ 7,137 £ 8,767 £ 14,112
Cost of sales (6,269) (8,949) (14,726) (14,573)
Gross loss (3,263) (1,812) (5,959) (461)
Research and development expenses (32,993) (33,067) (66,405) (56,459)
General and administrative expenses (11,635) (12,060) (22,549) (19,879)
Foreign exchange (losses)/gains (452) 22,797 (1,644) 32,471
Loss on forward contracts 0 (11,287) 0 (11,287)
Other income 1,834 1,517 4,439 2,950
Operating loss (46,509) (33,912) (92,118) (52,665)
Finance income 4,214 440 7,777 512
Finance expenses (273) (73) (536) (127)
Share of loss of joint venture (155) (271) (614) (564)
Loss before taxation (42,723) (33,816) (85,491) (52,844)
Income tax benefit 6,752 5,140 11,877 8,676
Loss for the period (35,971) (28,676) (73,614) (44,168)
Items that may be reclassified to profit or loss        
Foreign currency (loss)/gain on translation of foreign operations (1,205) 500 (1,681) 1,025
Total other comprehensive (loss)/income for the period, net of tax (1,205) 500 (1,681) 1,025
Total comprehensive loss for the period £ (37,176) £ (28,176) £ (75,295) £ (43,143)
Basic loss per share (GBP per share) £ (0.29) £ (0.24) £ (0.60) £ (0.36)
Diluted loss per share (GBP per share) £ (0.29) £ (0.24) £ (0.60) £ (0.36)
v3.23.2
Unaudited Condensed Consolidated Statement of Financial Position - GBP (£)
Jun. 30, 2023
Dec. 31, 2022
Non-current assets    
Goodwill £ 6,144,000 £ 6,321,000
Other intangible assets, net 30,519,000 33,602,000
Property, plant and equipment, net 49,111,000 37,648,000
Investment in joint venture 0 0
Right-of-use assets, net 18,907,000 14,794,000
Other receivables 631,000 100,000
Investments in equity instruments 2,145,000 2,145,000
Deferred tax asset 757,000 1,008,000
Total non-current assets 108,214,000 95,618,000
Current assets    
Trade receivables 1,330,000 523,000
Other receivables and contract assets 14,897,000 14,618,000
Current tax assets 39,341,000 33,023,000
Inventories 0 50,000
Short term bank deposits 151,935,000 101,234,000
Cash and cash equivalents 248,218,000 404,577,000
Total current assets 455,721,000 554,025,000
Total assets 563,935,000 649,643,000
Capital and reserves    
Share capital 62,000 61,000
Share premium 364,618,000 364,603,000
Deferred shares 0 0
Capital redemption reserve 3,000 3,000
Foreign exchange reserve 143,000 1,824,000
Share-based payment reserve 44,864,000 35,267,000
Fair value reserve (199,000) (199,000)
Merger reserve 54,213,000 54,213,000
(Accumulated losses)/retained earnings (46,432,000) 23,106,000
Total equity attributable to owners of the parent 417,272,000 478,878,000
Non-current liabilities    
Loans 304,000 313,000
Lease liabilities 16,076,000 10,942,000
Deferred tax liability, net 6,404,000 7,072,000
Contract liabilities and other advances 56,358,000 59,170,000
Provisions 1,254,000 1,243,000
Other payables 0 377,000
Total non-current liabilities 80,396,000 79,117,000
Current liabilities    
Trade payables 10,425,000 30,740,000
Lease liabilities 2,387,000 2,641,000
Contract liabilities and other advances 29,731,000 38,812,000
Other payables 23,724,000 19,455,000
Total current liabilities 66,267,000 91,648,000
Total liabilities 146,663,000 170,765,000
Total equity and liabilities £ 563,935,000 £ 649,643,000
v3.23.2
Unaudited Condensed Consolidated Statement of Changes in Equity - GBP (£)
£ in Thousands
Total
Share capital
Share premium
Deferred Shares
Capital Redemption Reserve
Foreign exchange reserve
Share-based payment reserve
Fair value reserve
Merger Reserve
Retained earnings/ (accumulated losses)
Beginning of period at Dec. 31, 2021 £ 566,813 £ 60 £ 364,579 £ 3 £ 0 £ (659) £ 12,930 £ (199) £ 54,213 £ 135,886
Loss for the period (44,168)                 (44,168)
Foreign exchange gain (loss) on translation of subsidiaries 1,017         1,025 (8)      
Total comprehensive loss for the period (43,151)         1,025 (8)     (44,168)
Share-based payment charge 13,686           13,686      
Exercise of share-based payment awards (2,264) 1 18       (1,383)     (900)
Cancellation of deferred shares 0     (3) 3          
End of period at Jun. 30, 2022 535,084 61 364,597 0 3 366 25,225 (199) 54,213 90,818
Beginning of period at Mar. 31, 2022 553,116 61 364,579 3 0 (134) 15,821 (199) 54,213 118,772
Loss for the period (28,676)                 (28,676)
Foreign exchange gain (loss) on translation of subsidiaries 500         500        
Total comprehensive loss for the period (28,176)         500       (28,676)
Share-based payment charge 10,126           10,126      
Exercise of share-based payment awards 18   18       (722)     722
Cancellation of deferred shares 0     (3) 3          
End of period at Jun. 30, 2022 535,084 61 364,597 0 3 366 25,225 (199) 54,213 90,818
Beginning of period at Dec. 31, 2022 478,878 61 364,603 0 3 1,824 35,267 (199) 54,213 23,106
Loss for the period (73,614)                 (73,614)
Foreign exchange gain (loss) on translation of subsidiaries (1,681)         (1,681)        
Total comprehensive loss for the period (75,295)         (1,681)       (73,614)
Share-based payment charge 13,794           13,794      
Exercise of share-based payment awards (105) 1 15       (4,197)     4,076
End of period at Jun. 30, 2023 417,272 62 364,618 0 3 143 44,864 (199) 54,213 (46,432)
Beginning of period at Mar. 31, 2023 447,724 62 364,609 0 3 1,348 40,741 (199) 54,213 (13,053)
Loss for the period (35,971)                 (35,971)
Foreign exchange gain (loss) on translation of subsidiaries (1,205)         (1,205)        
Total comprehensive loss for the period (37,176)         (1,205)       (35,971)
Share-based payment charge 6,836           6,836      
Exercise of share-based payment awards (112)   9       (2,713)     2,592
End of period at Jun. 30, 2023 £ 417,272 £ 62 £ 364,618 £ 0 £ 3 £ 143 £ 44,864 £ (199) £ 54,213 £ (46,432)
v3.23.2
Unaudited Condensed Consolidated Statement of Cash Flows - GBP (£)
£ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities    
Loss before tax £ (85,491) £ (52,844)
Adjustments to reconcile loss before tax to net cash flows from operating activities:    
Depreciation of right-of-use assets 1,775 706
Depreciation of property, plant and equipment 2,689 1,275
Amortisation of intangible assets 2,326 2,282
Loss recognised from joint venture 614 564
Finance income (7,777) (512)
Finance expenses 536 127
R&D expenditure tax credits (3,446) (2,079)
Share-based payment charge 13,794 13,686
Foreign exchange loss/(gain) 1,827 (24,517) [1]
Changes in working capital:    
(Increase)/decrease in trade receivables (806) 815
Increase in other receivables and contract assets (988) (2,496)
(Decrease)/increase in contract liabilities and other advances (11,893) 69,126
(Decrease)/increase in trade payables (15,295) 9,400
Increase in other payables 3,625 8,202
Decrease in inventories 50 200
Interest received 4,904 454
Interest paid (9) (9)
R&D expenditure tax credits received 1,881 0
Income taxes received 7,015 3,172
Net cash flows (used in)/from operating activities (84,669) 27,552 [1]
Cash flows from investing activities    
Purchase of property, plant and equipment (19,264) (9,278)
Purchase of intangible assets (110) (42)
Additional investment in joint venture (623) (119)
Cash inflows from investments in short term bank deposits 102,350 0
Cash invested in short term bank deposits (150,000) (100,000)
Net cash flows used in investing activities (67,647) (109,439)
Cash flows from financing activities    
Proceeds from issue of share capital, net of transactions costs 16 19
Cash paid on net settlement of share based payments (121) (2,283)
Payments of obligations under lease liabilities (1,498) (778)
Net cash flows used in financing activities (1,603) (3,042)
Net decrease in cash and cash equivalents (153,919) (84,929) [1]
Exchange (loss)/gain on cash and cash equivalents (2,440) 24,588 [1]
Cash and cash equivalents at the beginning of the year 404,577 562,173
Cash and cash equivalents at the end of the period 248,218 501,832
Supplemental disclosure of total cashflow information    
Decrease in cash and cash equivalents (153,919) (84,929) [1]
Increase in short term bank deposits 50,702 100,059
Exchange (loss)/gain on cash and cash equivalents (2,440) 24,588 [1]
Net (decrease)/increase in cash, cash equivalents and short term bank deposits including foreign exchange (losses)/gains on cash and cash equivalents (105,657) 39,718
Supplemental disclosure of operating inflow information    
Cash flow from collaborations 910 91,389
Amounts invoiced during the period (1,740) (86,749)
Foreign exchange losses/(gains) on trade receivables 24 (3,825)
(Increase)/decrease in trade receivables (806) 815
Supplemental non-cash investing information    
Change in capital expenditures recorded within trade payables (5,019) 1,121
Change in capital expenditures recorded within other payables £ 101 £ 332
[1] See Note 2 for details of the restatement.
v3.23.2
General information
 6 Months Ended
Jun. 30, 2023
General Information About Financial Statements [Abstract]  
General information General information
These unaudited condensed consolidated financial statements reflect the financial performance and position of Exscientia plc (the ‘Company’) and its subsidiaries (collectively the ‘Group’ or ‘Exscientia’) for the three and six months ended June 30, 2023 and 2022.
    
Exscientia plc is a public company incorporated in England and Wales and has the following wholly owned subsidiaries: Exscientia (UK) Holdings Limited, Exscientia AI Limited, Exscientia Inc., Exscientia Ventures I, Inc., Exscientia Ventures II, Inc., Exscientia KK, Kinetic Discovery Limited and Exscientia GmbH as well as two 50% owned joint ventures: RE Ventures I, LLC (“RE Ventures”) and RE Ventures II, LLC.

The principal activity of the Group is that of the application of artificial intelligence (“AI”) and machine learning (“ML”) to the discovery and design of novel therapeutic compounds. Exscientia’s technology platform combines the best of human and computational capabilities to accelerate the process of designing novel, safe and efficacious compounds for clinical testing in humans.
v3.23.2
Accounting policies
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Accounting policies Accounting policies    
a)Basis of preparation

These unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023 and 2022 have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” (“IAS 34”) as issued by the International Accounting Standards Board. The accounting policies and methods of computation applied in the preparation of the unaudited condensed consolidated financial statements are consistent with those applied in the Group’s annual financial statements for the year ended December 31, 2022 except for the estimation of income tax (see note 8).

The financial statements do not include all of the information required for annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended December 31, 2022.

The financial statements have been prepared on the historical cost basis, with the exception of certain financial instruments which are measured at fair value.

The financial statements and footnotes have been presented in pounds sterling. This is the functional currency of the Company, being the currency of the primary economic environment in which the Company operates, and the presentational currency of the Group. All values are rounded to the nearest thousand pound (“£’000”) except where otherwise indicated.

These unaudited condensed consolidated financial statements were prepared at the request of the Group’s Board of Directors (the “Board”) to meet regulatory and contractual commitments and were approved by the Board on August 9, 2023 and signed on its behalf by Andrew Hopkins, Chief Executive Officer of the Group.

b)Basis of consolidation

These unaudited condensed consolidated Group financial statements consolidate the financial statements of Exscientia plc and all its subsidiary undertakings made up to June 30, 2023.

c)Going concern

As at June 30, 2023, the Group’s cash, cash equivalents and short-term bank deposits amounted to £400,153,000. The Group has incurred significant research and development expenses from the start of the Group’s activities, with net cash outflows from operating activities amounted to £84,669,000 for the six months ended June 30, 2023. Taking into account the Group’s cash, cash equivalents and short-term bank deposits as at June 30, 2023, the Board believes that the Group has sufficient financial resources to cover its planned cash outflows for the foreseeable future, being a period of at least twelve months from the date of issuance of these financial statements.
2.Accounting policies (continued)

c)Going concern (continued)

As the Group has concluded that there is no substantial doubt about its ability to continue as a going concern within one year of the issuance of these financial statements, the Group has prepared these financial statements under the going concern assumption.

d)Application of new and revised International Financial Reporting Standards (IFRSs)    

There have been no new or revised accounting standards that have had a material impact on the unaudited condensed consolidated financial statements relative to those applied within the consolidated financial statements of the Group for the year ended December 31, 2022. Any new accounting standards implemented were assessed and determined to be either not applicable or did not have a material impact on the interim financial statements or processes.

e)Significant accounting policies

The significant accounting policies are disclosed in the consolidated financial statements of the Group for the year ended December 31, 2022. There have been no changes to existing accounting policies for the three and six months ended June 30, 2023.

Restatement of previously issued financial information

A classification error was identified within the Company’s unaudited condensed consolidated statement of cash flows as of and for the six month period ended June 30, 2022 related to the presentation of foreign exchange gains and losses on cash and cash equivalents, whereby certain exchange gains and losses relating to cash and cash equivalents were presented within net cash inflows from operating activities, rather than within exchange gains and losses on cash and cash equivalents. The effects on the condensed consolidated statement of cash flows for the six months ended June 30, 2022 are shown in the tables below.

six months ended June 30, 2022
As originally reportedAdjustmentAs restated
£’000£’000£’000
Foreign exchange gain(36)(24,481)(24,517)
Net cash flows from operating activities52,033 (24,481)27,552 
Net decrease in cash and cash equivalents(60,448)(24,481)(84,929)
Exchange gain on cash and cash equivalents107 24,481 24,588 
Cash and cash equivalents at the beginning of the year562,173 — 562,173 
Cash and cash equivalents at the end of the period
501,832 — 501,832 
v3.23.2
Critical accounting estimates and judgements
 6 Months Ended
Jun. 30, 2023
Critical Accounting Estimates And Judgments [Abstract]  
Critical accounting estimates and judgements Critical accounting estimates and judgements
The preparation of the financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions. These judgements, estimates and assumptions affect the reported assets and liabilities as well as income and expenses in the financial period.

The estimates are based on information available when the consolidated financial statements are prepared, historical experience and various other factors which are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources.
3.Critical accounting estimates and judgements (continued)

The significant estimates and judgements made by management in applying the Group’s accounting policies are the same as those applied in the consolidated financial statements for the year ended December 31, 2022, with the addition of a judgement relating to the contract liability amounts pertaining to certain projects in the Group’s collaboration with BMS as detailed in note 17.

Existing circumstances and assumptions about future developments may change due to market changes or circumstances arising that are beyond the Group’s control. Hence, estimates may vary from the actual values. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or the period of revision and future periods if this revision affects both current and future periods.
v3.23.2
Revenue
 6 Months Ended
Jun. 30, 2023
Revenue [abstract]  
Revenue Revenue
Revenue recognized during the three and six months ended June 30, 2023 and 2022 relates to collaboration agreements with Bristol Myers Squibb Company (“BMS”), Celgene Switzerland LLC (“Celgene”) (a company acquired by BMS subsequent to the inception of the collaboration), Bayer AG (“Bayer”), Sanofi S.A. (“Sanofi”) and legacy contracts operated by the Group’s Austrian subsidiary. The proportion of revenue by customer in each period is as follows:

Three months ended
June 30,		Six months ended
June 30,
2023202220232022
%%%%
BMS (including Celgene)73 73 70 86 
Sanofi27 6 29 4 
Bayer— 16 — 8 
Others— 5 1 2 
100 100 100 100 


Three months ended
June 30,		Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Service fees— 336 104 336 
Licensing fees - upfront payments and research funding (including term extension payments)3,006 6,801 8,663 13,776 
Total Revenue3,006 7,137 8,767 14,112 


Revenue is recognized upon the satisfaction of performance obligations, which occurs when control of the service transfers to the customer. For obligations discharged over time the Group recognises revenue equal to recoverable costs incurred for new collaborations from their inception until such time as the collaboration is sufficiently progressed such that the Group can reliably estimate the level of profit that will be achieved from delivery of the related performance obligations. Where collaborations include significant variable consideration which is constrained at the inception of the arrangement this can lead to gross losses being recognised during the early stages of a contract.

All revenues during the three and six months ended June 30, 2023 and 2022 relate to obligations discharged over time, and input methods are utilised in order to estimate the extent to which the performance obligations have been satisfied at the end of the reporting period based upon costs incurred, which can be internal or third party in nature.
4.Revenue (continued)

On January 4, 2022 the Group entered into a strategic research collaboration with Sanofi to develop an AI-driven pipeline of precision engineered medicines. Research will be focused on up to 15 novel small molecule candidates across oncology and immunology, in relation to which the Group received an up-front cash payment of £74,242,000 ($100,000,000) with the potential of $5,200,000,000 in total milestones plus tiered royalties over the duration of the collaboration.

On March 11, 2022, BMS extended its first collaboration arrangement with the Group by six months in order to generate additional data including the use of translational capabilities for key targets under the collaboration using the Group’s precision medicine platform, in relation to which the Group received a cash payment of $5,000,000. The term extension payment was treated as an addition to the transaction price relating to the collaboration’s partially unsatisfied performance obligations relating to the design and development of candidates for collaboration targets, with a cumulative recognition of revenue at that date based upon the progress towards satisfaction of the related performance obligations in accordance with paragraph 21b of IFRS 15. The remaining element of the transaction price was recognised as revenue over the remainder of 2022 as the performance obligations were satisfied.

The Group has assessed its significant collaboration arrangements with commercial partners and determined that no provision for future operating losses is required as at June 30, 2023 taking into account expected future cash inflows and remaining contract liabilities amounts for each collaboration relative to the remaining unavoidable costs of meeting the contracts’ obligations in each instance.
v3.23.2
Other Income
 6 Months Ended
Jun. 30, 2023
Other Income [Abstract]  
Other Income Other Income
Three months ended June 30,Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Grant income362 436 993 871 
R&D expenditure credits1,472 1,081 3,446 2,079 
1,834 1,517 4,439 2,950 


As at December 31, 2022 the Group operated four grants consisting of a European governmental grant, a grant from the Gates Foundation, a grant from the Austrian Research Promotion Agency (“FFG”) and a grant from the Austrian Wirtshaftsservice, with the EU governmental grant ending in April 2023.

Of the grants in operation as at June 30, 2023 the Grant with the Gates Foundation provides reimbursement for certain personnel, consumables and overhead costs incurred in the performance of research and development activities, while the FFG grant relates to the early stage testing of a drug’s action in solid tumour patient samples with high content microscopy and deep-learning. The Austrian Wirtshaftsservice grant provides funding in respect of capital investments made in the period from August 2020 to the end of February 2022.
Maximum future amounts of £367,000 were receivable under these grants as at June 30, 2023, (December 31, 2022: £561,000).
v3.23.2
Operating Loss
 6 Months Ended
Jun. 30, 2023
Operating Loss [Abstract]  
Operating Loss Operating Loss
Operating loss for the three and six months ended June 30, 2023 and 2022 has been arrived at after charging/(crediting):

Three months ended June 30,Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Depreciation of property, plant and equipment1,616 681 2,689 1,275 
Depreciation of right-of-use assets883 382 1,775 706 
Amortisation of intangible assets1,154 1,150 2,326 2,282 
Research and development expenses32,993 33,067 66,405 56,459 
Foreign exchange loss/(gain)452 (22,797)1,644 (32,471)
Loss on forward contracts— 11,287 — 11,287 
Share-based payment charge6,836 10,126 13,794 13,686 
v3.23.2
Finance Income
 6 Months Ended
Jun. 30, 2023
Finance Income [Abstract]  
Finance Income Finance Income
Three months ended June 30,Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Bank interest income 4,214 440 7,777 512 
4,214 440 7,777 512 
v3.23.2
Taxation
 6 Months Ended
Jun. 30, 2023
Income Taxes [Abstract]  
Taxation Taxation
The Group’s income tax credit is recognised at an amount determined by multiplying the loss before taxation for the interim reporting period by the Group’s best estimate of the weighted average annual income taxation rate expected for the full financial year, adjusted for the tax effect of certain items recognised in full in the interim period. As such, the effective tax rate in the interim financial statements may differ from the Group’s estimate of the effective tax rate for the annual financial statements.
The Group benefits from the United Kingdom’s small-and-medium enterprises research and development tax credit regime (“SME Programme”) and was able to surrender some of its losses for a cash rebate of up to 33.35% of expenditures related to eligible research and development projects up to April 1, 2023. The SME Programme cash rebate rate has reduced to 18.6% for qualifying research and development expenditure incurred on or after April 1, 2023, unless the Company’s UK subsidiary, Exscientia AI Limited, qualifies as “R&D intensive” for an accounting period (broadly, a loss making SME whose qualifying research and development expenditure for an accounting period represents 40% or more of its total expenditure for that accounting period will qualify), in which case the cash rebate that may be claimed will be 26.97% of qualifying expenditure. The Group currently expects that Exscientia AI Limited will qualify as R&D intensive during the year to December 31, 2023, and the 26.97% rate has been utilised in estimating the Group’s effective tax rate for the financial year.

The Group’s consolidated effective tax rate in respect of continuing operations for the three and six months ended June 30, 2023 was 15.80% and 13.89% (2022: 15.20% and 16.42%). The increase in the effective tax rate for the three months ended June 30, 2023 is attributable to increased research and development tax credits due to an underlying increase in qualifying research and development expenditure.
v3.23.2
Loss per share
 6 Months Ended
Jun. 30, 2023
Earnings per share [abstract]  
Loss per share Loss per share
Three months ended
June 30,		Six months ended
June 30,
2023202220232022
Basic and Diluted loss for the period (£)(35,971,000)(28,676,000)(73,614,000)(44,168,000)
Basic and diluted weighted average number of shares 123,748,524 121,899,774 123,504,575 121,432,193 
Basic and diluted loss per share (£)(0.29)(0.24)(0.60)(0.36)

Basic loss per share (“Loss per Share”) is calculated in accordance with IAS 33 based on earnings attributable to the Company’s shareholders and the weighted average number of shares outstanding during the period.

The Company issues performance options, share options, restricted share units (“RSUs”) and performance share units (“PSUs”) to employees, upon the exercise of which ordinary shares are issued. Inclusion of these awards would have an anti-dilutive effect on the loss due to the loss incurred during the period, therefore basic and diluted loss per share are the same.
v3.23.2
Goodwill and other intangible assets
 6 Months Ended
Jun. 30, 2023
Goodwill And Intangible Assets [Abstract]  
Goodwill and other intangible assets Goodwill and other intangible assetsDuring the six months ended June 30, 2023 the Group acquired assets at a cost of £110,000 relating to computer software. There were no disposals in the period. The amortisation charge for the period of £2,326,000 consisted of £14,000 relating to computer equipment, £8,000 relating to patents and £2,304,000 relating to acquired intellectual property. The residual movement in the net book value of goodwill and intangible assets relates to the foreign currency translation of assets relating to the Group’s Austrian business. No impairment charge was recognised in the period.
v3.23.2
Property, plant and equipment
 6 Months Ended
Jun. 30, 2023
Property, plant and equipment [abstract]  
Property, plant and equipment Property, plant and equipment
During the six months ended June 30, 2023, the Group acquired assets at a cost of £14,346,000, of which £10,506,000 related to assets under construction, primarily relating to leasehold improvements at the Group’s premises in Milton Park, Oxfordshire, £139,000 were additions to leasehold improvements, £121,000 were additions to computer equipment, £47,000 were additions to office furniture and equipment and £3,533,000 were additions to plant and equipment, primarily laboratory equipment. The depreciation charge for the period was £2,689,000.

During the six months ended June 30, 2023, £18,392,000 was transferred from assets under construction to leasehold improvements which constituted costs relating to the fit-out of premises leased by the Group. An additional £4,483,000 was transferred from assets under construction to plant and equipment for assets now installed; primarily at our premises in Milton Park.
No disposals of property plant and equipment were made during the six months ended June 30, 2023.
v3.23.2
Investments in joint ventures and joint operations
 6 Months Ended
Jun. 30, 2023
Interests In Other Entities [Abstract]  
Investments in joint ventures and joint operations Investments in joint ventures and joint operations
During the six months ended June 30, 2023, the Group made £623,000 in capital contributions to its joint venture with RallyBio, RE Ventures (six months to June 30, 2022: £119,000).

The Group’s share of the loss incurred by the joint venture during the three and six months ended June 30, 2023 totalled £155,000 and £614,000 respectively (June 30, 2022: £271,000 and £564,000).

There were no transactions with the Group’s other joint venture with RallyBio, RE Ventures II, LLC, during the six months ended June 30, 2023 (six months to June 30, 2022: £nil).
The Group’s interests in joint operations are disclosed in the consolidated financial statements for the year ended December 31, 2022.
v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases Leases
All right-of-use assets relate to leased premises. As at January 1, 2023 the Group had right-of-use assets relating to ten pre-existing lease agreements pertaining to four properties in the United Kingdom and one in Austria.

The Group entered into two seven-year lease arrangements in relation to laboratory and office space in Vienna, Austria on September 3, 2021. The lease term for the office space commenced on December 1, 2022, expiring in December 2029. The lease term for the laboratory space commenced on January 26, 2023. Annually from January, each year lease payments will be indexed based on the consumer price index rate as published by STATISTIK AUSTRIA at September of the preceding year.

On July 1, 2022 the Group entered into a lease arrangement in relation to premises in Boston, Massachusetts, United States. The lease commenced on January 23, 2023 and expires on June 23, 2033.

Right-of-use assets totalling £6,147,000 was recognised in relation to these leases during the six months ended June 30, 2023.

On May 23, 2023, the Group exited a lease pertaining to part of its leased premises in Dundee, United Kingdom, resulting in a disposal of right-of-use asset of £157,000.

The undiscounted lease liability contractual maturities as at June 30, 2023 and December 31, 2022 are as follows:

June 30, 202331 December 2022
£'000£'000
Within one year3,354 2,641 
One to five years13,632 9,682 
More than 5 years5,326 3,930 
22,312 16,253 
v3.23.2
Other receivables
 6 Months Ended
Jun. 30, 2023
Subclassifications of assets, liabilities and equities [abstract]  
Other receivables Other receivables
Current other receivables and contract assets
June 30, 2023December 31, 2022
£’000£’000
VAT recoverable2,790 3,040 
Prepayments6,827 5,935 
Contract assets and accrued grant income117 176 
Accrued bank interest569 746 
Other receivables4,594 4,721 
14,897 14,618 

Non-current other receivables

June 30, 2023December 31, 2022
£’000£’000
Other receivables631 100 
631 100 

Non-current other receivables relate to deposits on leased premises; due back at the end of the respective lease terms.
14.Other receivables (continued)

A reconciliation of the movement in contract assets for the Group is as follows:

January 1, 2023Recognised as incomeDeductionsJune 30, 2023
£’000£’000£’000£’000
Collaboration contract assets— — — — 
Accrued income on grants 176 117 (176)117 
Total contract assets and accrued grant income176 117 (176)117 

January 1, 2022Recognised as incomeDeductionsForeign exchangeDecember 31, 2022
£’000£’000£’000£’000£’000
Grants126 171 (143)22 176 
Collaboration contract assets179 (69)(110)— — 
Total contract assets and accrued grant income305 102 (253)22 176 
v3.23.2
Fair value measurement of financial instruments
 6 Months Ended
Jun. 30, 2023
Fair Value Measurement Of Financial Instruments [Abstract]  
Fair value measurement of financial instruments Fair value measurement of financial instruments
This note provides an update on the judgements and estimates made by the Group in determining the fair values of financial instruments since the last annual financial report.

Nature of financial instruments recognised and measured at fair value

GT shares

During the six months ended June 30, 2023 the Group’s only financial instrument measured at fair value consisted of unlisted equity securities comprising of ordinary and preference shares in GT Apeiron Therapeutics, which were acquired in March 2021 and in relation to which the Group has taken the election provided within IFRS 9 to recognise fair value gains and losses within Other Comprehensive Income.

Unobservable market data was available to the Group as at June 30, 2022 in the form of a recent arms-length transaction involving equity instruments of the entity in question, and the fair value of the Group’s investment was established with reference to that transaction. Nothing has come to the Company’s attention which would suggest that the value of the investment requires material impairment or revaluation as at June 30, 2023.

Foreign exchange forward contracts

During the three months ended June 30, 2022 the Group entered into a series of forward contracts of under three months duration whereby a commitment was made to exchange US dollars for a fixed number of pounds sterling in order to hedge its exposure to foreign exchange rate fluctuations. All such transactions were settled during the quarter for a cumulative loss of £11,287,000. No such transactions were entered into during the three and six months ended June 30, 2023, and the Group does not use derivative financial instruments for speculative purposes.
15.Fair value measurement of financial instruments (continued)

Fair value measurements using significant unobservable inputs (level 3)- equity investments at FVOCI

Unlisted equity securities
£’000
Opening balance as at January 1, 20232,145 
Gain/(loss) recognised in other comprehensive income— 
Closing balance as at June 30, 20232,145 

The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at June 30, 2023. There have been no transfers between levels 2 and 3 and changes in valuation techniques during the period.

Other financial instruments

On June 21, 2022, the Group invested £100,000,000 into a 12-month short term deposit with an F1+ rated UK financial institution. The investment matured on June 21, 2023. On March 24, 2023, the Group invested £150,000,000 into a 9-month short term deposit with an F1 rated financial institution. This short term bank deposit accrues interest at 4.8% and has been classified as financial assets measured at amortised cost.

The Group measures expected credit losses over cash and cash equivalents as a function of individual counterparty credit ratings and associated 12 month default rates. Expected credit losses over cash and cash equivalents and third-party financial derivatives are deemed to be immaterial and no such loss has been experienced during the quarter ended June 30, 2023.

The Group also has a number of other financial instruments which are not measured at fair value in the balance sheet consisting of trade receivables, trade and other payables and other loans. For these instruments, the fair values are not materially different to their carrying amounts, since the interest receivable/payable is either close to current market rates or the instruments are short-term in nature.
v3.23.2
Share capital
 6 Months Ended
Jun. 30, 2023
Share Capital, Reserves And Other Equity Interest [Abstract]  
Share capital Share capital
June 30, 2023December 31, 2022
££
Issued and fully paid share capital
124,245,535 (2022: 122,963,545) Ordinary shares of £0.0005 each
62,12361,482
62,12361,482


Shares authorised and issued (number)
December 31, 2022Exercise of share-based payment awardsJune 30, 2023
Ordinary shares122,963,545 1,281,990 124,245,535 
122,963,545 1,281,990 124,245,535 

A total of 1,281,990 shares were issued upon the exercise of share-based payment awards during the six months ended June 30, 2023; see note 21 for further details.
16.Share capital (continued)

Rights of share classes

Holders of ordinary shares are entitled to one vote per share at a show of hands meeting of the Company and one vote per share on a resolution on a poll taken at a meeting and on a written resolution.
v3.23.2
Contract liabilities and other advances
 6 Months Ended
Jun. 30, 2023
Contract liabilities [abstract]  
Contract liabilities and other advances Contract liabilities and other advances
Within one yearMore than one year
June, 30December 31,June, 30December 31,
2023202220232022
£’000£’000£’000£’000
Contract liabilities
Revenue generating collaborations23,534 29,433 55,625 58,451 
Total contract liabilities23,534 29,433 55,625 58,451 
Other advances
Grants85 959 — — 
Joint Operations6,112 8,420 733 719 
Total other advances6,197 9,379 733 719 
Total contract liabilities and other advances29,731 38,812 56,358 59,170 


A reconciliation of the movement in contract liabilities and other advances for the six months ended June 30, 2023 is as follows:

January 01, 2023AdditionsRecognised in the income statementForeign exchangeJune 30, 2023
£’000£’000£’000£’000£’000
Grants959 — (871)(3)85 
Revenue generating collaborations87,884 — (8,726)1 79,159 
Joint operations9,139 — (2,294)— 6,845 
Total contract liabilities and other advances
97,982 — (11,891)(2)86,089 

Included within contract liabilities as at June 30, 2023 are unspent upfront payments totalling £6,236,000 relating to performance obligations that have been stopped during the six months to June 30, 2023. These amounts have not been recognised within revenue as discussions are ongoing between the two parties regarding how these funds may be applied to other projects and as such constraint has been applied in accordance with IFRS15.

The Group expects to recognise its contract liabilities relating to revenue generating collaborations over the terms of the related collaborations, the longest of which extends to December 2027. As at December 31, 2022 the Group expected to recognise its contract liabilities relating to revenue generating collaborations over the period to December 2027. The ageing presented above reflects the Group’s best estimate of when contract liability and other advance amounts will be utilised based upon when the underlying costs to be incurred in the delivery of the related projects are expected to be incurred.
17.Contract liabilities and other advances (continued)

A reconciliation of the movement in contract liabilities and other advances for the year ended December 31, 2022 is as follows:

January 01, 2022AdditionsRecognised in the income statementForeign exchangeDecember 31, 2022
£’000£’000£’000£’000£’000
Grants1,889 715 (1,648)3 959 
Revenue generating collaborations28,946 85,700 (26,769)7 87,884 
Joint operations15,486 — (6,347)— 9,139 
Total contract liabilities and other advances
46,321 86,415 (34,764)10 97,982 
v3.23.2
Provisions
 6 Months Ended
Jun. 30, 2023
Provisions [abstract]  
Provisions Provisions At June 30, 2023 a provision of £1,254,000 existed in respect of the Group’s obligation to restore alterations made on leased space within three of the Group’s leasehold properties. The required work for two of the spaces is expected to be completed in 2024 and in 2031 for the other space.
v3.23.2
Other payables
 6 Months Ended
Jun. 30, 2023
Other Payables [Abstract]  
Other payables Other payables
Current other payables
June 30, 2023December 31, 2022
£’000£’000
Accruals17,398 15,801 
Other payables1,466 814 
Other taxation and social security4,683 2,830 
Corporation tax177 10 
23,724 19,455 

Non-current other payables
30 June, 202331 December, 2022
£’000£’000
Other payables— 377 
— 377 
v3.23.2
Related party transactions
 6 Months Ended
Jun. 30, 2023
Related party transactions [abstract]  
Related party transactions Related party transactions
Following the Group’s IPO on October 5, 2021 the Group has no related parties in accordance with the IAS 24 definition who are not key management personnel of the Group (whose remuneration is disclosed annually), and as such there are no disclosable related party transactions during either the six months ended June 30, 2023 or 2022 relating to such parties.

See note 12 for details of the Group’s transactions with joint ventures during the six months ended June 30, 2023 and 2022.
v3.23.2
Share based payments
 6 Months Ended
Jun. 30, 2023
Share-Based Payments [Abstract]  
Share based payments Share based payments
From April 2022 the Company has issued all share options, performance share options, RSUs and PSUs to employees and non-employee members of the Board of Directors under the 2021 Equity Incentive Plan (“EIP”). All awards prior to that date were issued under the following legacy plans:

–Enterprise Management Incentive (“EMI”) Scheme
–Company Share Ownership Plan (“CSOP”)
–Unapproved Share Ownership Plan (“USOP”)

Total share-based remuneration expenses relating to share options, performance share options, RSUs, PSUs and the equity securities issued upon the acquisition of a subsidiary undertaking (as detailed in note 31 of the consolidated financial statements of the Group for the year ended December 31, 2022) amounted to £13,794,000 during the six months ended June 30, 2023 (six months ended June 30, 2022: £13,686,000).

Total share-based remuneration expenses for the three months ended June 30, 2023 amounted to £6,836,000 (three months ended June 30, 2022: £10,126,000).

The following table represents the share-based payment expense by award type for the three and six months ended June 30, 2023 and 2022:

Three months ended
June 30,		Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Share options4,495 6,650 8,587 8,860 
Performance share options441 823 1,311 823 
PSUs184 137 329 137 
RSUs1,157 1,286 2,455 1,419 
Clawback shares559 1,230 1,112 2,447 
6,836 10,126 13,794 13,686 


Share Options

Share options are granted to employees and non-executive directors of the Group. These options typically vest in tranches over four years, with the only vesting condition relating to continued employment by the Group. Information with respect to share options for the six months ending June 30, 2023 is as follows:

Number of share optionsWeighted average exercise price
Options held as at January 1, 20239,809,788£0.04 
Granted2,631,739 £0.00 
Exercised(1,055,453)£0.01 
Forfeited(517,941)£0.01 
Options held as at June 30, 202310,868,133£0.04 
Exercisable as at June 30, 20234,950,640£0.07 
21.Share based payments (continued)

A Black-Scholes model has been used to calculate the fair value of the share options as at the grant date, with the following weighted average values for the six months ended June 30, 2023:

Exercise price£0.0005 
Expected life6.0 years
Expected volatility95.9 %
Risk-free rate3.05 %
Expected dividend rate— 
Fair value£4.26 
The fair value of the underlying ordinary shares is equal to the closing share price at the grant date converted at the prevailing exchange rate at that date. The risk-free rate is determined by reference to the rate of interest obtainable from US Government Bonds over a period commensurate with the expect term of the options. Expected volatility has been set with reference to the Group's own share price volatility over the period from the Company’s IPO to the award grant date and peer group analysis. The expected life of the options has been set equal to the mid-point between the vesting date and the expiry date of the award in question.

Performance Share Options

Performance share options are granted to certain executive officers of the group on an annual basis, and contain market based performance conditions relating to total shareholder return as well as a continued employment vesting requirement. These awards vest in tranches over three years. Information with respect to performance share options for the six months ending June 30, 2023 is as follows:
Number of share optionsWeighted average exercise price
Options held as at January 1, 2023877,704 £0.00 
Granted1,350,482 £0.00 
Forfeited(239,192)£0.00 
Options held as at June 30, 20231,988,994£0.00 
Exercisable as at June 30, 202339,304 £0.00 
A Monte Carlo model has been used to calculate the fair value of the performance options as at the grant date, with the following weighted average values for the six months ended June 30, 2023:

Exercise price£0.0005 
Expected life3.0 years
Expected volatility88.6 %
Risk-free rate3.59 %
Expected dividend rate— 
Fair value£3.33 
The fair value of the underlying ordinary shares is equal to closing share price at the grant date converted at the prevailing exchange rate at that date. The risk-free rate is determined by reference to the rate of interest obtainable from US Government Bonds over a period commensurate with the expect term of the options. Expected volatility has been derived as the weighted average volatility of comparator companies who have been listed for a period commensurate with the expected term prior to the grant date, and the expected life of the options has been set equal to the mid-point between the vesting date and the expiry date of the award in question.
21.Share based payments (continued)

Performance Share Units

Performance share options are granted to certain executive officers of the group on an annual basis, and contain market based performance conditions relating to total shareholder return as well as a continued employment vesting requirement. These awards vest in tranches over three years. Information with respect to performance share units for the six months ending June 30, 2023 is as follows:

Number of PSUs
PSUs held as at January 01, 2023146,285 
Granted342,548 
PSUs held as at June 30, 2022488,833


A Monte Carlo model has been used to calculate the fair value of the performance share units as at the grant date, with the same model inputs as detailed for the performance share options above.

Restricted Share Units

The Group operates a RSU scheme, whereby certain employees and directors receive RSUs held over ordinary shares in the Company. These units are non-transferable and subject to forfeiture for periods prescribed by the Company. These awards are valued at the market value of the underlying shares at the date of grant and are subsequently amortised over the periods during which the restrictions lapse, typically four years. The awards expire on the cessation of the participant’s employment with the Group. Information with respect to restricted share units for the six months ending June 30, 2023 is as follows:

Number of RSUs
RSUs held as at 1 January 2023759,696
Granted593,346
Exercised(257,955)
Forfeited(10,254)
RSUs held as at 30 June 20231,084,833

The weighted average grant date fair value per unit of the RSUs granted in the three and six months to June 30, 2023 was £4.26. The weighted average remaining contractual life of the outstanding awards as at June 30, 2023 was 9.1 years.

During the six months ended June 30, 2023, 53,566 awards were released via a net settlement arrangement, with 27,098 shares issued and £121,000 paid by the Company in order to settle related employee tax obligations. The payment made has been recognised within retained earnings.
v3.23.2
Commitments
 6 Months Ended
Jun. 30, 2023
Capital commitments [abstract]  
Commitments Commitments
The Group has capital expenditure contracted for but not recognised as liabilities as at June 30, 2023. The expenditure is as follows:
June 30, 2023
£’000
Plant and equipment3,575 
Computer software39 
Computer equipment8 
Leasehold improvements397 
Office Furniture and equipment6 
4,025 

Gates Foundation private placement commitment

Concurrent with the Company’s IPO on October 5, 2021, the Company completed a private placement to the Gates Foundation as detailed in note 21 of the consolidated financial statements of the Group for the year ended December 31, 2022. Under the terms of the Company’s agreement with the Gates Foundation, the Group is committed to spending $70,000,000 over a four-year period to the research, discovery, and development of small molecule anti-infective therapeutics for future pandemic preparedness, with a specific focus on developing therapeutics that can be applied against multiple species of coronaviridae, influenza, and paramyxoviridae (the “Pandemic Preparedness Program”).

The Group had incurred £8,043,012 relating to the Pandemic Preparedness Program as at June 30, 2023 (December 31, 2022: £6,459,000), with a total outstanding commitment of £43,443,000 (December 31, 2022: £45,027,000).

In the event that the Group is in breach of certain terms within the agreement, the Gates Foundation has the right to sell, or require the Group to buy-back any shareholdings in the Group held by the Foundation at the higher of the public offering price and the market value of the shares at the date of default. Should such a breach occur or should the Company enter bankruptcy the Gates Foundation also has the exclusive right to utilise an exclusive global license granted as part of the agreement in relation to any IP generated by the Group pertaining to the Pandemic Preparedness Program for the benefit of people in certain developing countries. The default conditions are within the control of the Group and the license in question cannot be utilised unless such a default occurs or the Group enters bankruptcy. As such no fair value has been assigned to this license.

Lease commitments

In December, 22 the Group entered into a lease arrangement in relation to premises in Miami, Florida United States. The lease arrangement in question commences on September 1, 2023 and expires on June 1, 2034. Total minimum lease commitments of £3,291,000 are payable under this arrangement.
v3.23.2
Ultimate Parent and Controlling Party
 6 Months Ended
Jun. 30, 2023
Ultimate Parent And Controlling Party [Abstract]  
Ultimate Parent and Controlling Party Ultimate Parent and Controlling Party Exscientia plc is the ultimate parent company of the Group. There is no ultimate controlling party.
v3.23.2
Events occurring after the reporting period
 6 Months Ended
Jun. 30, 2023
Events Occurring After The Reporting Period [Abstract]  
Events occurring after the reporting period Events occurring after the reporting period
On July 24, 2023 the Group made a capital contribution of £583,000 to its joint venture with RallyBio, RE Ventures.

On July 27, 2023, our wholly owned subsidiary, Exscientia AI Ltd and Sanofi S.A. entered into an amendment to the collaboration agreement executed between the parties on January 4, 2022 (the “CLA”), pursuant to which the Company and Sanofi agreed to vary certain terms of the CLA with respect to Targets (as defined in the CLA).

On August 8, 2023, we and Blue Oak Pharmaceuticals Inc. ended a collaboration arrangement that was entered into on September 25, 2020. The purpose of this arrangement was to collaborate on a project to design dual targeted (bispecific) small molecules for the treatment of neurodegenerative diseases. No settlement amounts were paid as a result of the termination and no impairments of assets were recorded. Both parties retain the right to operate within the target area.
v3.23.2
Accounting policies (Policies)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Basis of preparation Basis of preparation
These unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023 and 2022 have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” (“IAS 34”) as issued by the International Accounting Standards Board. The accounting policies and methods of computation applied in the preparation of the unaudited condensed consolidated financial statements are consistent with those applied in the Group’s annual financial statements for the year ended December 31, 2022 except for the estimation of income tax (see note 8).

The financial statements do not include all of the information required for annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended December 31, 2022.

The financial statements have been prepared on the historical cost basis, with the exception of certain financial instruments which are measured at fair value.

The financial statements and footnotes have been presented in pounds sterling. This is the functional currency of the Company, being the currency of the primary economic environment in which the Company operates, and the presentational currency of the Group. All values are rounded to the nearest thousand pound (“£’000”) except where otherwise indicated.

These unaudited condensed consolidated financial statements were prepared at the request of the Group’s Board of Directors (the “Board”) to meet regulatory and contractual commitments and were approved by the Board on August 9, 2023 and signed on its behalf by Andrew Hopkins, Chief Executive Officer of the Group.
Basis of consolidation Basis of consolidationThese unaudited condensed consolidated Group financial statements consolidate the financial statements of Exscientia plc and all its subsidiary undertakings made up to June 30, 2023.
Going concern Going concernAs at June 30, 2023, the Group’s cash, cash equivalents and short-term bank deposits amounted to £400,153,000. The Group has incurred significant research and development expenses from the start of the Group’s activities, with net cash outflows from operating activities amounted to £84,669,000 for the six months ended June 30, 2023. Taking into account the Group’s cash, cash equivalents and short-term bank deposits as at June 30, 2023, the Board believes that the Group has sufficient financial resources to cover its planned cash outflows for the foreseeable future, being a period of at least twelve months from the date of issuance of these financial statements.
2.Accounting policies (continued)

c)Going concern (continued)

As the Group has concluded that there is no substantial doubt about its ability to continue as a going concern within one year of the issuance of these financial statements, the Group has prepared these financial statements under the going concern assumption.
Application of new and revised International Financial Reporting Standards (IFRSs) and Significant accounting policies Application of new and revised International Financial Reporting Standards (IFRSs)    There have been no new or revised accounting standards that have had a material impact on the unaudited condensed consolidated financial statements relative to those applied within the consolidated financial statements of the Group for the year ended December 31, 2022. Any new accounting standards implemented were assessed and determined to be either not applicable or did not have a material impact on the interim financial statements or processes.Significant accounting policiesThe significant accounting policies are disclosed in the consolidated financial statements of the Group for the year ended December 31, 2022. There have been no changes to existing accounting policies for the three and six months ended June 30, 2023.
v3.23.2
Accounting policies (Tables)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Description of nature of accounting errors in prior periods The effects on the condensed consolidated statement of cash flows for the six months ended June 30, 2022 are shown in the tables below.
six months ended June 30, 2022
As originally reportedAdjustmentAs restated
£’000£’000£’000
Foreign exchange gain(36)(24,481)(24,517)
Net cash flows from operating activities52,033 (24,481)27,552 
Net decrease in cash and cash equivalents(60,448)(24,481)(84,929)
Exchange gain on cash and cash equivalents107 24,481 24,588 
Cash and cash equivalents at the beginning of the year562,173 — 562,173 
Cash and cash equivalents at the end of the period
501,832 — 501,832 
v3.23.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2023
Revenue [abstract]  
Disclosure of major customers The proportion of revenue by customer in each period is as follows:
Three months ended
June 30,		Six months ended
June 30,
2023202220232022
%%%%
BMS (including Celgene)73 73 70 86 
Sanofi27 6 29 4 
Bayer— 16 — 8 
Others— 5 1 2 
100 100 100 100 
Disclosure of products and services
Three months ended
June 30,		Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Service fees— 336 104 336 
Licensing fees - upfront payments and research funding (including term extension payments)3,006 6,801 8,663 13,776 
Total Revenue3,006 7,137 8,767 14,112 
v3.23.2
Other Income (Tables)
 6 Months Ended
Jun. 30, 2023
Other Income [Abstract]  
Other income
Three months ended June 30,Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Grant income362 436 993 871 
R&D expenditure credits1,472 1,081 3,446 2,079 
1,834 1,517 4,439 2,950 
v3.23.2
Operating Loss (Tables)
 6 Months Ended
Jun. 30, 2023
Operating Loss [Abstract]  
Schedule of operating loss
Operating loss for the three and six months ended June 30, 2023 and 2022 has been arrived at after charging/(crediting):

Three months ended June 30,Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Depreciation of property, plant and equipment1,616 681 2,689 1,275 
Depreciation of right-of-use assets883 382 1,775 706 
Amortisation of intangible assets1,154 1,150 2,326 2,282 
Research and development expenses32,993 33,067 66,405 56,459 
Foreign exchange loss/(gain)452 (22,797)1,644 (32,471)
Loss on forward contracts— 11,287 — 11,287 
Share-based payment charge6,836 10,126 13,794 13,686 
v3.23.2
Finance Income (Tables)
 6 Months Ended
Jun. 30, 2023
Finance Income [Abstract]  
Schedule of finance income
Three months ended June 30,Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Bank interest income 4,214 440 7,777 512 
4,214 440 7,777 512 
v3.23.2
Loss per share (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings per share [abstract]  
Loss per share
Three months ended
June 30,		Six months ended
June 30,
2023202220232022
Basic and Diluted loss for the period (£)(35,971,000)(28,676,000)(73,614,000)(44,168,000)
Basic and diluted weighted average number of shares 123,748,524 121,899,774 123,504,575 121,432,193 
Basic and diluted loss per share (£)(0.29)(0.24)(0.60)(0.36)
v3.23.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Disclosure of maturity analysis of undiscounted operating lease payments
The undiscounted lease liability contractual maturities as at June 30, 2023 and December 31, 2022 are as follows:

June 30, 202331 December 2022
£'000£'000
Within one year3,354 2,641 
One to five years13,632 9,682 
More than 5 years5,326 3,930 
22,312 16,253 
v3.23.2
Other receivables (Tables)
 6 Months Ended
Jun. 30, 2023
Subclassifications of assets, liabilities and equities [abstract]  
Schedule of current other receivables and contract assets
Current other receivables and contract assets
June 30, 2023December 31, 2022
£’000£’000
VAT recoverable2,790 3,040 
Prepayments6,827 5,935 
Contract assets and accrued grant income117 176 
Accrued bank interest569 746 
Other receivables4,594 4,721 
14,897 14,618 
Schedule of non-current other receivables
Non-current other receivables

June 30, 2023December 31, 2022
£’000£’000
Other receivables631 100 
631 100 
Schedule of movement in contract assets and accrued grant income A reconciliation of the movement in contract assets for the Group is as follows:
January 1, 2023Recognised as incomeDeductionsJune 30, 2023
£’000£’000£’000£’000
Collaboration contract assets— — — — 
Accrued income on grants 176 117 (176)117 
Total contract assets and accrued grant income176 117 (176)117 

January 1, 2022Recognised as incomeDeductionsForeign exchangeDecember 31, 2022
£’000£’000£’000£’000£’000
Grants126 171 (143)22 176 
Collaboration contract assets179 (69)(110)— — 
Total contract assets and accrued grant income305 102 (253)22 176 
A reconciliation of the movement in contract liabilities and other advances for the six months ended June 30, 2023 is as follows:

January 01, 2023AdditionsRecognised in the income statementForeign exchangeJune 30, 2023
£’000£’000£’000£’000£’000
Grants959 — (871)(3)85 
Revenue generating collaborations87,884 — (8,726)1 79,159 
Joint operations9,139 — (2,294)— 6,845 
Total contract liabilities and other advances
97,982 — (11,891)(2)86,089 
A reconciliation of the movement in contract liabilities and other advances for the year ended December 31, 2022 is as follows:

January 01, 2022AdditionsRecognised in the income statementForeign exchangeDecember 31, 2022
£’000£’000£’000£’000£’000
Grants1,889 715 (1,648)3 959 
Revenue generating collaborations28,946 85,700 (26,769)7 87,884 
Joint operations15,486 — (6,347)— 9,139 
Total contract liabilities and other advances
46,321 86,415 (34,764)10 97,982 
v3.23.2
Fair value measurement of financial instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Measurement Of Financial Instruments [Abstract]  
Disclosure of significant unobservable inputs used in fair value measurement of assets
Unlisted equity securities
£’000
Opening balance as at January 1, 20232,145 
Gain/(loss) recognised in other comprehensive income— 
Closing balance as at June 30, 20232,145 
v3.23.2
Share capital (Tables)
 6 Months Ended
Jun. 30, 2023
Share Capital, Reserves And Other Equity Interest [Abstract]  
Disclosure of classes of share capital
June 30, 2023December 31, 2022
££
Issued and fully paid share capital
124,245,535 (2022: 122,963,545) Ordinary shares of £0.0005 each
62,12361,482
62,12361,482
December 31, 2022Exercise of share-based payment awardsJune 30, 2023
Ordinary shares122,963,545 1,281,990 124,245,535 
122,963,545 1,281,990 124,245,535 
v3.23.2
Contract liabilities and other advances (Tables)
 6 Months Ended
Jun. 30, 2023
Contract liabilities [abstract]  
Schedule of contract liabilities
Within one yearMore than one year
June, 30December 31,June, 30December 31,
2023202220232022
£’000£’000£’000£’000
Contract liabilities
Revenue generating collaborations23,534 29,433 55,625 58,451 
Total contract liabilities23,534 29,433 55,625 58,451 
Other advances
Grants85 959 — — 
Joint Operations6,112 8,420 733 719 
Total other advances6,197 9,379 733 719 
Total contract liabilities and other advances29,731 38,812 56,358 59,170 
Schedule of movement in contract liabilities and other advances A reconciliation of the movement in contract assets for the Group is as follows:
January 1, 2023Recognised as incomeDeductionsJune 30, 2023
£’000£’000£’000£’000
Collaboration contract assets— — — — 
Accrued income on grants 176 117 (176)117 
Total contract assets and accrued grant income176 117 (176)117 

January 1, 2022Recognised as incomeDeductionsForeign exchangeDecember 31, 2022
£’000£’000£’000£’000£’000
Grants126 171 (143)22 176 
Collaboration contract assets179 (69)(110)— — 
Total contract assets and accrued grant income305 102 (253)22 176 
A reconciliation of the movement in contract liabilities and other advances for the six months ended June 30, 2023 is as follows:

January 01, 2023AdditionsRecognised in the income statementForeign exchangeJune 30, 2023
£’000£’000£’000£’000£’000
Grants959 — (871)(3)85 
Revenue generating collaborations87,884 — (8,726)1 79,159 
Joint operations9,139 — (2,294)— 6,845 
Total contract liabilities and other advances
97,982 — (11,891)(2)86,089 
A reconciliation of the movement in contract liabilities and other advances for the year ended December 31, 2022 is as follows:

January 01, 2022AdditionsRecognised in the income statementForeign exchangeDecember 31, 2022
£’000£’000£’000£’000£’000
Grants1,889 715 (1,648)3 959 
Revenue generating collaborations28,946 85,700 (26,769)7 87,884 
Joint operations15,486 — (6,347)— 9,139 
Total contract liabilities and other advances
46,321 86,415 (34,764)10 97,982 
v3.23.2
Other payables (Tables)
 6 Months Ended
Jun. 30, 2023
Other Payables [Abstract]  
Schedule of other payables
June 30, 2023December 31, 2022
£’000£’000
Accruals17,398 15,801 
Other payables1,466 814 
Other taxation and social security4,683 2,830 
Corporation tax177 10 
23,724 19,455 
Schedule of non-current other payables
30 June, 202331 December, 2022
£’000£’000
Other payables— 377 
— 377 
v3.23.2
Share based payments (Tables)
 6 Months Ended
Jun. 30, 2023
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Disclosure of share-based expense by award type
The following table represents the share-based payment expense by award type for the three and six months ended June 30, 2023 and 2022:

Three months ended
June 30,		Six months ended
June 30,
2023202220232022
£’000£’000£’000£’000
Share options4,495 6,650 8,587 8,860 
Performance share options441 823 1,311 823 
PSUs184 137 329 137 
RSUs1,157 1,286 2,455 1,419 
Clawback shares559 1,230 1,112 2,447 
6,836 10,126 13,794 13,686 
Share options  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Disclosure of number and weighted average exercise prices of share options Information with respect to share options for the six months ending June 30, 2023 is as follows:
Number of share optionsWeighted average exercise price
Options held as at January 1, 20239,809,788£0.04 
Granted2,631,739 £0.00 
Exercised(1,055,453)£0.01 
Forfeited(517,941)£0.01 
Options held as at June 30, 202310,868,133£0.04 
Exercisable as at June 30, 20234,950,640£0.07 
Disclosure of the fair value of the share options as at the grant date
A Black-Scholes model has been used to calculate the fair value of the share options as at the grant date, with the following weighted average values for the six months ended June 30, 2023:

Exercise price£0.0005 
Expected life6.0 years
Expected volatility95.9 %
Risk-free rate3.05 %
Expected dividend rate— 
Fair value£4.26 
Performance share options  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Disclosure of the fair value of the share options as at the grant date
A Monte Carlo model has been used to calculate the fair value of the performance options as at the grant date, with the following weighted average values for the six months ended June 30, 2023:

Exercise price£0.0005 
Expected life3.0 years
Expected volatility88.6 %
Risk-free rate3.59 %
Expected dividend rate— 
Fair value£3.33 
Disclosure of number and weighted average exercise prices of other equity instruments Information with respect to performance share options for the six months ending June 30, 2023 is as follows:
Number of share optionsWeighted average exercise price
Options held as at January 1, 2023877,704 £0.00 
Granted1,350,482 £0.00 
Forfeited(239,192)£0.00 
Options held as at June 30, 20231,988,994£0.00 
Exercisable as at June 30, 202339,304 £0.00 
PSUs  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Disclosure of number and weighted average exercise prices of other equity instruments Information with respect to performance share units for the six months ending June 30, 2023 is as follows:
Number of PSUs
PSUs held as at January 01, 2023146,285 
Granted342,548 
PSUs held as at June 30, 2022488,833
RSUs  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Disclosure of number and weighted average exercise prices of other equity instruments The awards expire on the cessation of the participant’s employment with the Group. Information with respect to restricted share units for the six months ending June 30, 2023 is as follows:
Number of RSUs
RSUs held as at 1 January 2023759,696
Granted593,346
Exercised(257,955)
Forfeited(10,254)
RSUs held as at 30 June 20231,084,833
v3.23.2
Commitments (Tables)
 6 Months Ended
Jun. 30, 2023
Capital commitments [abstract]  
Schedule of capital expenditure
The Group has capital expenditure contracted for but not recognised as liabilities as at June 30, 2023. The expenditure is as follows:
June 30, 2023
£’000
Plant and equipment3,575 
Computer software39 
Computer equipment8 
Leasehold improvements397 
Office Furniture and equipment6 
4,025 
v3.23.2
General information (Details)
 6 Months Ended
Jun. 30, 2023
jointVenture
Disclosure of classes of share capital [line items]  
Number of joint ventures 2
RE Ventures I, LLC  
Disclosure of classes of share capital [line items]  
Proportion of ownership interest in joint venture 50.00%
RE Ventures II, LLC  
Disclosure of classes of share capital [line items]  
Proportion of ownership interest in joint venture 50.00%
v3.23.2
Accounting policies - Additional information (Details) - GBP (£)
£ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
 [1]
Accounting Policies [Abstract]    
Cash and cash equivalents and short-term bank deposits £ 400,153  
Net cash flows used in operating activities £ (84,669) £ 27,552
[1] See Note 2 for details of the restatement.
v3.23.2
Accounting policies - Restatement of previously issued financial information (Details) - GBP (£)
£ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Restatement Of Previously Issued Financial Information [Line Items]    
Foreign exchange gain £ 1,827 £ (24,517) [1]
Net cash flows (used in)/from operating activities (84,669) 27,552 [1]
Net decrease in cash and cash equivalents (153,919) (84,929) [1]
Exchange (loss)/gain on cash and cash equivalents (2,440) 24,588 [1]
Cash and cash equivalents at the beginning of the year 404,577 562,173
Cash and cash equivalents at the end of the period £ 248,218 501,832
As originally reported    
Restatement Of Previously Issued Financial Information [Line Items]    
Foreign exchange gain   (36)
Net cash flows (used in)/from operating activities   52,033
Net decrease in cash and cash equivalents   (60,448)
Exchange (loss)/gain on cash and cash equivalents   107
Cash and cash equivalents at the beginning of the year   562,173
Cash and cash equivalents at the end of the period   501,832
Adjustment    
Restatement Of Previously Issued Financial Information [Line Items]    
Foreign exchange gain   (24,481)
Net cash flows (used in)/from operating activities   (24,481)
Net decrease in cash and cash equivalents   (24,481)
Exchange (loss)/gain on cash and cash equivalents   24,481
Cash and cash equivalents at the beginning of the year   0
Cash and cash equivalents at the end of the period   £ 0
[1] See Note 2 for details of the restatement.
v3.23.2
Revenue - Revenue by customer (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disclosure of disaggregation of revenue from contracts with customers [line items]        
Percentage of entity's revenue 100.00% 100.00% 100.00% 100.00%
BMS (including Celgene)        
Disclosure of disaggregation of revenue from contracts with customers [line items]        
Percentage of entity's revenue 73.00% 73.00% 70.00% 86.00%
Sanofi        
Disclosure of disaggregation of revenue from contracts with customers [line items]        
Percentage of entity's revenue 27.00% 6.00% 29.00% 4.00%
Bayer        
Disclosure of disaggregation of revenue from contracts with customers [line items]        
Percentage of entity's revenue 0.00% 16.00% 0.00% 8.00%
Others        
Disclosure of disaggregation of revenue from contracts with customers [line items]        
Percentage of entity's revenue 0.00% 5.00% 1.00% 2.00%
v3.23.2
Revenue - Product or service (Details) - GBP (£)
£ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disclosure of disaggregation of revenue from contracts with customers [line items]        
Revenue £ 3,006 £ 7,137 £ 8,767 £ 14,112
Service fees        
Disclosure of disaggregation of revenue from contracts with customers [line items]        
Revenue 0 336 104 336
Licensing fees - upfront payments and research funding (including term extension payments)        
Disclosure of disaggregation of revenue from contracts with customers [line items]        
Revenue £ 3,006 £ 6,801 £ 8,663 £ 13,776
v3.23.2
Revenue - Additional information (Details)
£ in Thousands, $ in Millions
Mar. 11, 2022
USD ($)
Jan. 04, 2022
GBP (£)
novelSmallMoleculeCandidate
Jan. 04, 2022
USD ($)
novelSmallMoleculeCandidate
Sanofi      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Number of novel small molecule candidates focused on during research | novelSmallMoleculeCandidate   15 15
Revenue from strategic research collaboration, up-front cash payment   £ 74,242 $ 100
Revenue from strategic research collaboration, potential in total milestones plus tiered royalties over duration of collaboration agreement     $ 5,200
BMS      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Revenue from collaboration arrangement, extension term 6 months    
Revenue from collaboration arrangement $ 5    
v3.23.2
Other Income - Schedule of other income (Details) - GBP (£)
£ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Other Income [Abstract]        
Grant income £ 362 £ 436 £ 993 £ 871
R&D expenditure credits 1,472 1,081 3,446 2,079
Other income £ 1,834 £ 1,517 £ 4,439 £ 2,950
v3.23.2
Other Income - Additional information (Details)
£ in Thousands
Jun. 30, 2023
GBP (£)
Dec. 31, 2022
GBP (£)
grant
Other Income [Abstract]    
Number of grants operated | grant   4
Grants, maximum amount receivable | £ £ 367 £ 561
v3.23.2
Operating Loss (Details) - GBP (£)
£ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Operating Loss [Abstract]        
Depreciation of property, plant and equipment £ 1,616 £ 681 £ 2,689 £ 1,275
Depreciation of right-of-use assets 883 382 1,775 706
Amortisation of intangible assets 1,154 1,150 2,326 2,282
Research and development expenses 32,993 33,067 66,405 56,459
Foreign exchange loss/(gain) 452 (22,797) 1,644 (32,471)
Loss on forward contracts 0 11,287 0 11,287
Share-based payment charge £ 6,836 £ 10,126 £ 13,794 £ 13,686
v3.23.2
Finance Income (Details) - GBP (£)
£ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Finance Income [Abstract]        
Bank interest income £ 4,214 £ 440 £ 7,777 £ 512
Finance income £ 4,214 £ 440 £ 7,777 £ 512
v3.23.2
Taxation (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Taxes [Abstract]        
UK SME Scheme, tax incentive, research and development, cash rebate for quality expenses, percentage 26.97%   26.97%  
Normal applicable rate of tax 15.80% 15.20% 13.89% 16.42%
v3.23.2
Loss per share (Details) - GBP (£)
£ / shares in Units, £ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Earnings per share [abstract]        
Basic loss for the period £ (35,971) £ (28,676) £ (73,614) £ (44,168)
Diluted loss for the period £ (35,971) £ (28,676) £ (73,614) £ (44,168)
Basic weighted average number of shares (in shares) 123,748,524 121,899,774 123,504,575 121,432,193
Diluted weighted average number of shares (in shares) 123,748,524 121,899,774 123,504,575 121,432,193
Basic loss per share (GBP per share) £ (0.29) £ (0.24) £ (0.60) £ (0.36)
Diluted loss per share (GBP per share) £ (0.29) £ (0.24) £ (0.60) £ (0.36)
v3.23.2
Goodwill and other intangible assets (Details) - GBP (£)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]        
Disposals     £ 0  
Amortisation of intangible assets £ 1,154,000 £ 1,150,000 2,326,000 £ 2,282,000
Impairment charge     0  
Cost | Computer software        
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]        
Additions     110,000  
Amortization        
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]        
Amortisation of intangible assets     (2,326,000)  
Amortization | Computer equipment        
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]        
Amortisation of intangible assets     14,000  
Amortization | Patents        
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]        
Amortisation of intangible assets     8,000  
Amortization | Acquired IP        
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]        
Amortisation of intangible assets     £ 2,304,000  
v3.23.2
Property, plant and equipment (Details) - GBP (£)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disclosure of detailed information about property, plant and equipment [line items]        
Depreciation of property, plant and equipment £ 1,616,000 £ 681,000 £ 2,689,000 £ 1,275,000
Disposals     0  
Cost        
Disclosure of detailed information about property, plant and equipment [line items]        
Additions     14,346,000  
Cost | Assets under construction        
Disclosure of detailed information about property, plant and equipment [line items]        
Additions     10,506,000  
Cost | Leasehold improvements        
Disclosure of detailed information about property, plant and equipment [line items]        
Additions     139,000  
Reclassification of assets to     18,392,000  
Cost | Computer equipment        
Disclosure of detailed information about property, plant and equipment [line items]        
Additions     121,000  
Cost | Office Furniture and equipment        
Disclosure of detailed information about property, plant and equipment [line items]        
Additions     47,000  
Cost | Plant and equipment        
Disclosure of detailed information about property, plant and equipment [line items]        
Additions     3,533,000  
Reclassification of assets to     4,483,000  
Accumulated Depreciation        
Disclosure of detailed information about property, plant and equipment [line items]        
Depreciation of property, plant and equipment     £ 2,689,000  
v3.23.2
Investments in joint ventures and joint operations (Details) - GBP (£)
 3 Months Ended 6 Months Ended
Jul. 24, 2023
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disclosure of joint ventures [line items]          
Additional capital contributions       £ 623,000 £ 119,000
Loss for the period   £ (35,971,000) £ (28,676,000) (73,614,000) (44,168,000)
RE Ventures I, LLC          
Disclosure of joint ventures [line items]          
Additional capital contributions £ 583,000     623,000 119,000
Loss for the period   £ 155,000 £ 271,000 614,000 564,000
RE Ventures II, LLC          
Disclosure of joint ventures [line items]          
Loss for the period       £ 0 £ 0
v3.23.2
Leases - Additional information (Details)
£ in Thousands
 6 Months Ended
May 23, 2023
GBP (£)
Sep. 03, 2021
leaseAgreement
Jun. 30, 2023
GBP (£)
Jan. 01, 2023
property
leaseAgreement
Disclosure of quantitative information about right-of-use assets [line items]        
Number of lease agreements | leaseAgreement       10
Additions to right-of-use assets | £     £ 6,147  
United Kingdom        
Disclosure of quantitative information about right-of-use assets [line items]        
Number of lease properties | property       4
Austria        
Disclosure of quantitative information about right-of-use assets [line items]        
Number of lease properties | property       1
Vienna, Austria        
Disclosure of quantitative information about right-of-use assets [line items]        
Number of lease agreements not yet commenced | leaseAgreement   2    
Lessee, operating lease, term of contract not yet commenced   7 years    
Dundee, United Kingdom        
Disclosure of quantitative information about right-of-use assets [line items]        
Disposal of right-of-use asset | £ £ 157      
v3.23.2
Leases - Liability maturity (Details) - GBP (£)
£ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Disclosure of maturity analysis of operating lease payments [line items]    
Lease liabilities £ 22,312 £ 16,253
Within one year    
Disclosure of maturity analysis of operating lease payments [line items]    
Lease liabilities 3,354 2,641
One to five years    
Disclosure of maturity analysis of operating lease payments [line items]    
Lease liabilities 13,632 9,682
More than 5 years    
Disclosure of maturity analysis of operating lease payments [line items]    
Lease liabilities £ 5,326 £ 3,930
v3.23.2
Other receivables - Current other receivables and contract assets (Details) - GBP (£)
£ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Dec. 31, 2021
Subclassifications of assets, liabilities and equities [abstract]      
VAT recoverable £ 2,790 £ 3,040  
Prepayments 6,827 5,935  
Contract assets and accrued grant income 117 176 £ 305
Accrued bank interest 569 746  
Other receivables 4,594 4,721  
Other receivables and contract assets £ 14,897 £ 14,618  
v3.23.2
Other receivables - Non-current other receivables (Details) - GBP (£)
£ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Subclassifications of assets, liabilities and equities [abstract]    
Other receivables £ 631 £ 100
v3.23.2
Other receivables - Movement in contract assets and accrued grant income (Details) - GBP (£)
£ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Contract assets and accrued grant income, , beginning balance £ 176 £ 305
Recognised as income 117 102
Deductions (176) (253)
Foreign exchange   22
Contract assets and accrued grant income, ending balance 117 176
Collaboration contract assets    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Contract assets and accrued grant income, , beginning balance 0 179
Recognised as income 0 (69)
Deductions 0 (110)
Foreign exchange   0
Contract assets and accrued grant income, ending balance 0 0
Grants    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Contract assets and accrued grant income, , beginning balance 176 126
Recognised as income   171
Deductions   (143)
Foreign exchange   22
Contract assets and accrued grant income, ending balance   176
Grants, Accrued Income    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Contract assets and accrued grant income, , beginning balance 176  
Recognised as income 117  
Deductions (176)  
Contract assets and accrued grant income, ending balance £ 117 £ 176
v3.23.2
Fair value measurement of financial instruments - Additional information (Details) - GBP (£)
 3 Months Ended 6 Months Ended
Mar. 24, 2023
Jun. 21, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Disclosure of financial assets and liabilities [Line Items]              
Loss on forward contracts     £ 0 £ 11,287,000 £ 0 £ 11,287,000  
Short term bank deposits £ 150,000,000 £ 100,000,000 £ 151,935,000   £ 151,935,000   £ 101,234,000
Short-term bank deposits, term 9 months 12 months          
Short-term bank deposits, interest rate 4.80%            
Forward contract              
Disclosure of financial assets and liabilities [Line Items]              
Loss on forward contracts       £ 11,287,000      
Forward contract | Maximum              
Disclosure of financial assets and liabilities [Line Items]              
Derivative, term of contract       3 months      
v3.23.2
Fair value measurement of financial instruments - Significant unobservable Inputs (Details) - Level 3 - Unlisted equity securities
£ in Thousands
 6 Months Ended
Jun. 30, 2023
GBP (£)
Disclosure of financial assets and liabilities [Line Items]  
Opening balance as at January 1, 2023 £ 2,145
Gain/(loss) recognised in other comprehensive income 0
Closing balance as at June 30, 2023 £ 2,145
v3.23.2
Share capital - Shares issued (Details) - GBP (£)
£ / shares in Units, £ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Disclosure of classes of share capital [line items]    
Share capital £ 62,123 £ 61,482
Ordinary shares    
Disclosure of classes of share capital [line items]    
Number of shares issued and fully paid (in shares) 124,245,535 122,963,545
Par value per share (GBP per share) £ 0.0005 £ 0.0005
Share capital £ 62,123 £ 61,482
v3.23.2
Share capital - Shares authorised and issued (Details)
 6 Months Ended
Jun. 30, 2023
shares
Disclosure of classes of share capital [line items]  
Number of shares issued, beginning balance (in shares) 122,963,545
Exercise of share-based payment awards (in shares) 1,281,990
Number of shares issued, ending balance (in shares) 124,245,535
Ordinary shares  
Disclosure of classes of share capital [line items]  
Number of shares issued, beginning balance (in shares) 122,963,545
Exercise of share-based payment awards (in shares) 1,281,990
Number of shares issued, ending balance (in shares) 124,245,535
v3.23.2
Share capital - Additional information (Details)
 6 Months Ended
Jun. 30, 2023
shares
vote
Disclosure of classes of share capital [line items]  
Exercise of share-based payment awards (in shares) 1,281,990
Ordinary shares  
Disclosure of classes of share capital [line items]  
Exercise of share-based payment awards (in shares) 1,281,990
Voting rights, per share owned | vote 1
v3.23.2
Contract liabilities and other advances - Components (Details) - GBP (£)
£ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Within one year £ 29,731 £ 38,812
More than one year 56,358 59,170
Revenue generating collaborations    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Within one year 23,534 29,433
More than one year 55,625 58,451
Contract liabilities    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Within one year 23,534 29,433
More than one year 55,625 58,451
Grants    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Within one year 85 959
More than one year 0 0
Joint operations    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Within one year 6,112 8,420
More than one year 733 719
Other advances    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Within one year 6,197 9,379
More than one year £ 733 £ 719
v3.23.2
Contract liabilities and other advances - Movement (Details) - GBP (£)
£ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Contract liabilities and other advances, beginning of period £ 97,982 £ 46,321
Additions 0 86,415
Recognised in the income statement (11,891) (34,764)
Foreign exchange (2) 10
Contract liabilities and other advances, end of period 86,089 97,982
Grants    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Contract liabilities and other advances, beginning of period 959 1,889
Additions 0 715
Recognised in the income statement (871) (1,648)
Foreign exchange (3) 3
Contract liabilities and other advances, end of period 85 959
Revenue generating collaborations    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Contract liabilities and other advances, beginning of period 87,884 28,946
Additions 0 85,700
Recognised in the income statement (8,726) (26,769)
Foreign exchange 1 7
Contract liabilities and other advances, end of period 79,159 87,884
Joint operations    
Disclosure of disaggregation of revenue from contracts with customers [line items]    
Contract liabilities and other advances, beginning of period 9,139 15,486
Additions 0 0
Recognised in the income statement (2,294) (6,347)
Foreign exchange 0 0
Contract liabilities and other advances, end of period £ 6,845 £ 9,139
v3.23.2
Contract liabilities and other advances - Additional information (Details)
£ in Thousands
 6 Months Ended
Jun. 30, 2023
GBP (£)
BMS  
Disclosure of disaggregation of revenue from contracts with customers [line items]  
Revenue from collaboration arrangement, upfront £ 6,236
v3.23.2
Provisions (Details)
£ in Thousands
Jun. 30, 2023
GBP (£)
property
Dec. 31, 2022
GBP (£)
Provisions [abstract]    
Provisions | £ £ 1,254 £ 1,243
Number of leasehold properties subject to restore alterations | property 3  
v3.23.2
Other payables - Current other payables (Details) - GBP (£)
£ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Other Payables [Abstract]    
Accruals £ 17,398 £ 15,801
Other payables 1,466 814
Other taxation and social security 4,683 2,830
Corporation tax 177 10
Other payables £ 23,724 £ 19,455
v3.23.2
Other payables - Non-current other payables (Details) - GBP (£)
£ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Other Payables [Abstract]    
Other payables £ 0 £ 377
v3.23.2
Share based payments - Additional information (Details) - GBP (£)
£ / shares in Units, £ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Share-based remuneration expenses £ 6,836 £ 10,126 £ 13,794 £ 13,686
Released (in shares)     53,566  
Share-based payment arrangement, shares withheld for tax withholding obligation (in shares)     27,098  
Cash paid on settlement of share based payments     £ 121 £ 2,283
Share options        
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Vesting requirements for share-based payment arrangement, vesting period     4 years  
Performance share options        
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Vesting requirements for share-based payment arrangement, vesting period     3 years  
PSUs        
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Vesting requirements for share-based payment arrangement, vesting period     3 years  
RSUs        
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Vesting requirements for share-based payment arrangement, vesting period     4 years  
Granted, weighted average exercise price of other equity instruments (GBP per share) £ 4.26   £ 4.26  
Weighted average remaining contractual life of outstanding other equity instruments     9 years 1 month 6 days  
v3.23.2
Share based payments - Share-based expense by award type (Details) - GBP (£)
£ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Share-based payment charge £ 6,836 £ 10,126 £ 13,794 £ 13,686
Share options        
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Share-based payment charge 4,495 6,650 8,587 8,860
Performance share options        
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Share-based payment charge 441 823 1,311 823
PSUs        
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Share-based payment charge 184 137 329 137
RSUs        
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Share-based payment charge 1,157 1,286 2,455 1,419
Clawback shares        
Disclosure of terms and conditions of share-based payment arrangement [line items]        
Share-based payment charge £ 559 £ 1,230 £ 1,112 £ 2,447
v3.23.2
Share based payments - Option activity (Details)
 6 Months Ended
Jun. 30, 2023
shares
£ / shares
Share options  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Beginning balance (in shares) | shares 9,809,788
Granted (in shares) | shares 2,631,739
Exercised (in shares) | shares (1,055,453)
Forfeited (in shares) | shares (517,941)
Ending balance (in shares) | shares 10,868,133
Exercisable (in shares) | shares 4,950,640
Beginning balance, weighted average exercise price (GBP per share) | £ / shares £ 0.04
Granted, weighted average exercise price (GBP per share) | £ / shares 0.00
Exercised, weighted average exercise price (GBP per share) | £ / shares 0.01
Forfeited, weighted average exercise price (GBP per share) | £ / shares 0.01
Ending balance, Weighted average exercise price (GBP per share) | £ / shares 0.04
Exercisable, weighted average exercise price (GBP per share) | £ / shares £ 0.07
Performance share options  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Beginning balance (in shares) | shares 877,704
Granted (in shares) | shares 1,350,482
Forfeited (in shares) | shares (239,192)
Ending balance (in shares) | shares 1,988,994
Exercisable (in shares) | shares 39,304
Beginning balance, weighted average exercise price (GBP per share) | £ / shares £ 0.00
Granted, weighted average exercise price (GBP per share) | £ / shares 0.00
Forfeited, weighted average exercise price (GBP per share) | £ / shares 0.00
Ending balance, Weighted average exercise price (GBP per share) | £ / shares 0.00
Exercisable, weighted average exercise price (GBP per share) | £ / shares £ 0.00
v3.23.2
Share based payments - Fair value assumptions options (Details)
 6 Months Ended
Jun. 30, 2023
yr
£ / shares
Share options  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Exercise price (GBP per share) £ 0.0005
Expected life | yr 6.0
Expected volatility 95.90%
Risk-free rate 3.05%
Expected dividend rate 0.00%
Fair value (GBP per share) £ 4.26
Performance share options  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Exercise price (GBP per share) £ 0.0005
Expected life | yr 3.0
Expected volatility 88.60%
Risk-free rate 3.59%
Expected dividend rate 0.00%
Fair value (GBP per share) £ 3.33
v3.23.2
Share based payments - RSU and PSU activity (Details)
 6 Months Ended
Jun. 30, 2023
shares
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Exercised (in shares) (1,281,990)
PSUs  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Beginning balance (in shares) 146,285
Granted (in shares) 342,548
Ending balance (in shares) 488,833
RSUs  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Beginning balance (in shares) 759,696
Granted (in shares) 593,346
Exercised (in shares) (257,955)
Forfeited (in shares) (10,254)
Ending balance (in shares) 1,084,833
v3.23.2
Commitments - Capital expenditure (Details)
£ in Thousands
Jun. 30, 2023
GBP (£)
Disclosure of attribution of expenses by nature to their function [line items]  
Commitments £ 4,025
Plant and equipment  
Disclosure of attribution of expenses by nature to their function [line items]  
Commitments 3,575
Computer software  
Disclosure of attribution of expenses by nature to their function [line items]  
Commitments 39
Computer equipment  
Disclosure of attribution of expenses by nature to their function [line items]  
Commitments 8
Leasehold improvements  
Disclosure of attribution of expenses by nature to their function [line items]  
Commitments 397
Office Furniture and equipment  
Disclosure of attribution of expenses by nature to their function [line items]  
Commitments £ 6
v3.23.2
Commitments - Additional information (Details)
Oct. 05, 2021
USD ($)
Jun. 30, 2023
GBP (£)
Dec. 31, 2022
GBP (£)
Dec. 22, 2022
GBP (£)
Disclosure of attribution of expenses by nature to their function [line items]        
Commitments outstanding   £ 4,025,000    
Total minimum lease commitments   22,312,000 £ 16,253,000  
Miami, Florida United States        
Disclosure of attribution of expenses by nature to their function [line items]        
Total minimum lease commitments       £ 3,291,000
Gates Foundation        
Disclosure of attribution of expenses by nature to their function [line items]        
Commitment | $ $ 70,000,000      
Commitment, term 4 years      
Commitment costs incurred   8,043,012 6,459,000  
Commitments outstanding   £ 43,443,000 £ 45,027,000  
v3.23.2
Events occurring after the reporting period (Details) - GBP (£)
£ in Thousands
 6 Months Ended
Jul. 24, 2023
Jun. 30, 2023
Jun. 30, 2022
Disclosure of non-adjusting events after reporting period [line items]      
Additional capital contributions   £ 623 £ 119
RE Ventures I, LLC      
Disclosure of non-adjusting events after reporting period [line items]      
Additional capital contributions £ 583 £ 623 £ 119
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