Medios AG

Ladies and gentlemen, welcome to the conference call of Medios AG. At our customer's request, this conference will be recorded. As a reminder, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. If any participant has difficulties hearing the conference, Please press 0 followed by the pound key for operator assistance. May I now hand you over to Claudia Noulos, Head of Investor and Public Relations at Medios. Good afternoon.

Welcome everybody to our conference call on our results for the first quarter 2022. As always, all relevant documents can also be downloaded from our investor relations website. Additionally, this presentation can be followed in parallel via the internet link provided to you in the invitation. Today with me is our CEO, Matthias Gärtner, and our CFO, Frank Neutrich. Matthias will start with an executive summary, followed by Frank, who will then provide details on the financials, as well as on the outlook for the current fiscal year. And finally, Matthias will comment on legal growth strategies. Both gentlemen will be then available to answer your questions. I would now like to hand over to Matthias.

Okay, thank you, Claudia. Also a warm welcome from myself. Thank you for attending this call and for your interest in NATO. Once again, I am proud to present NATO's first quarter results to you today. 2022 started off very well for us. With the fifth record quarter in a row, Not only are we making progress in integrating our recent acquisitions, we also have achieved double digit sales growth and disproportionate interest in earnings. Both operating segments contributed to record sales and earnings growth, which improved absolute operating margins. I will start with a short summary. of the achievements and highlights for the first three months 2022. As in the previous calls, I will be referring to the slides of the presentation. Let's go to slide 3 directly. Michio's growth strategy is progressing. We successfully completed the acquisition of the new co-farmer group, which significantly strengthened our market position in the manufacturing area. The merger with Newco Pharma enables us to expand our competence in the field of patient-specific therapies and thus also significantly and sustainably increase the profit margin of the entire matrix group. We have already started to leverage synergy potentials and cross-selling opportunities through the now expanded network of compounding facilities as well as through the network of specialized partner pharmacies, which has increased to around 600 through the merger with Neuco Pharma. In our profit and loss, the acquisition is already paying off, as demonstrated by the positive development of our financial results. Furthermore, the setup of our new labs in the new building in Berlin where our Berlin wholesale business is already located, is well advanced. With this, we will be able to up to triple our production capacity in Berlin in the term and realize further synergies by concentrating logistics and warehousing at one site. Regarding the digitization strategy, we have further rolled out our digital platform, MakersConnect. We are happy to announce that it is now available in five German federal states, with more to come. Finally, we have focused on ESG. At the end of 2021, we have approved our sustainability strategy and started right away with the realization in the first quarter of this year. In this regard, we have, among other things, started the implementation of an ESG data software. Let me quickly come back to Newco Pharma. What are the main benefits of this acquisition? Please see slide 4. Let me summarize the main points. We complement each other, especially regarding the regional coverage. Together, we ensure an almost nationwide supply to our partner network of specialized pharmacies within the shortest possible time. Consequently, we will be able to also serve any time-critical preparations, so-called ad hoc preparations, to most of the specialized pharmacies in Germany. a significant competitive advantage. With the five additional GMP compounding facilities of NewCo, we have already almost tripled our compounding business for individualized therapies to around 320,000 preparations per annum. Also, I would like to point out that together with the additional labs of our new building in Berlin, We will reach compounding capacities of 500,000 to 600,000 preparations per annum, and we have clear plans on how to use these capacities. The combination of Matheus and Yuko offers significant growth potential through combining our partner networks of meanwhile around 600 specialized pharmacies. expanding our product and service portfolio as well as synergies and cross-selling. In a nutshell, this is a remarkable strengthening of our attractive higher margin segment patient-specific therapies. And I'm very blessed that this is already reflected in our Q1 results, leading to a significant increase of our group EBITDA pre-margin to 3.6%. We have already realized synergy effects that result from the recent mergers with Ghana and EUCO, mainly in purchasing and logistics, and cross-selling opportunities within our extended partner network. Now a short summary on the financials for 21, illustrated on slide 5. Impressive continuous growth of revenue and EBITDA E-break free, clearly proving the positive effects of the most recent acquisition, especially the remarkable increase of EBITDA free and their respective marchings. Following the Corona burdened second quarter 20, we have seen seven quarters in a row of continued growth of revenue as well as EDTA-free. Even more impressive, each of the last five quarters representing new record levels. The same feature on slide six. Again, a record quarter with substantial growth year on year. Record sales and the disproportionate increase of EBITDA-free. Falk will give you more details about this later on. Let's switch to slide 7. Providing a revenue and EBITDA pre-breakdown per segment for the third quarter of this year, reflecting the impact of the consolidation of new co-farmers, namely a remarkable increase of the share of PST business regarding EBITDA pre from 25% for the full year 21 to now 48%. Already above the 40% share, that we aimed for in full year 22. This development is fully in line with our strategy and goal to increase the share of the higher-margin PST business. The main points of our ESG strategy 25 are outlined on slide 8. We published our new ESG strategy in December. It can be downloaded from our website. This strategy comprises well-defined and ambitious targets that are being realized through concreted methods using more than 50 different internal and external key performance indicators to track and measure target achievements. Therewith, we cover five main fields of action, including governance, products, and environments. Worth to mention that I'm the chair of our sustainability committee that is monitoring the progress of the ESG program. And the chair of our supervisory board is the ESG expert within the supervisory board. And in this function is also a member of the Metro Sustainability Committee. The implementation of the software tool mentioned before will support us to improve ESG data collection and transparency. I cannot repeat this often enough. Sustainability is and will be an important part of our corporate strategy. This is all from my side for the moment. I now hand over to Falk to provide more details on the financials and on the guidance for 2022.