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 star followed by zero for operator assistance. May I now hand you over to Claudia Nikolaos, Head of Investor and Public Relations at Medios.

Welcome everybody to our conference call on our results for the first half year of 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, Falk Neukirch. Matthias will start with an executive summary, followed by Falk, who will then provide details on the financials for the first half, as well as on the outlook for the current fiscal year. And finally, Matthias will comment on Mio's growth story. Both gentlemen will be then available to answer your questions. I would now like to hand over to Matthias.

Thank you, Claudia. Also, a warm welcome from my side. Thank you for attending this call and your interest in Meteos. I'm proud to present a further set of excellent results today. The first six months of 22 were by far the best ever for Meteos, and Q2 was our sixth consecutive record quarter. Not only is our M&A strategy paying off, We also have delivered strong organic growth. And even more important, our margins are rising as planned. Let's go directly to slide three, providing an overview of the achievements and highlights for the first half of 2022. Our growth strategy is on track. We are successfully integrating the new co-farmer group. This latest acquisition has 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 Medius Group. We continue to leverage Synergy potentials. and cross-selling opportunities through the 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 NUCO Pharma. In our P&L, the acquisition is already paying off, as demonstrated by the positive development of our financial resources. strong inorganic growth, and attractive organic growth. Adjusted for M&A effect, we grew organically at a rate of about 9% in the first six months of 22, as well as in the second quarter 22. Total revenue climbed by 25%. Furthermore, in H1, we have strategically increased inventories in anticipation of further growth and rising prices. We are already benefiting here as we have started to sell them off at now better margins due to inflation-related price adjustment. And finally, Meteos is highly robust. So far, we do not see significant negative impact from the economic uncertainties. Our growth is currently hardly affected by the war in Ukraine, inflation, supply chain disruptions, or the general macroeconomic environment. I'm very proud to successfully lead our company through these challenging times together with my fellow board members and the entire Meteos team. The early extension of my contract as CEO, which was announced recently, will ensure consistency on the Executive Board as well as in the management of Meteos. We are very happy to be back in the SDAGs since June 22. This gives us more attention in the market. Regarding ESG, we are making progress in implementing the measures of the Meteos ESG Strategy 25. In a nutshell, we are showing dynamic and profitable growth and are excellently positioned for the future. Our new labs in Berlin are currently going through the validation and qualification processes and we expect to start compounding in Q4 this year. New partner pharmacies are adding cross-selling opportunities and the digitalization of the healthcare system offers attractive growth potentials. And not to forget, there are M&A opportunities in the market for internationalization and to set up new businesses in the area of specialty pharma. Against the background of the very successful business development in the first half, we confirm our forecast for 2022, despite the ongoing global uncertainties. We expect our revenue to reach the upper range of our guidance. Falk will provide more details on our outlook later. How can the first months be summarized best? Again, record numbers. We continued the goals and success story. We have set ambitious targets. We confirm our forecast and expect revenue to reach the upper end of the range of 1.45 to 1.6 billion euros, based on the excellent performance in the first half of this year. Now a short summary of the financials for the first half of 2022, illustrated on slides 4 to 6. Slide 4 illustrates the impressive continuous quarterly growth of our two KPIs, Revenue and EBITDA Pre, again reaching new records. Also compared to the second quarter of last year and the first quarter of this year, all KPIs have increased. This development clearly proves the positive effect of the most recent acquisitions, especially the remarkable increase of EBITDA pre and the respective margin. Following the corona burdened second quarter 20, we have seen eight quarters in a row of continuous growth of revenues as well as EBITDA pre. Even more impressive, each of the last six quarters represented new record levels. The same picture on slide five. A record first half with substantial growth year-on-year, record sales, and a strong disproportional increase of EBITDA pre. Falk will give you more details about this later. Let's move directly to slide six, providing a revenue and EBITDA pre breakdown per segment for the first half of this year. This reflects the impact of the consolidation of Newco Pharma since January. As Q1 already showed, we have also for the first six months a remarkable increase of the share of PST business regarding EBITDA pre from 25% for the full year 21 up to now 43%, already above the 40% share that we aimed for January. 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. On slide seven, we can see the strong network that we can build on with the integration of Newco Pharma Group. This is also the driver of strong share of PST regarding our profit. Let me briefly summarize the main benefits of the acquisition. 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. 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 Meteos and UCO 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 remarkable strengthening of our attractive higher margin segment patient-specific therapies. And I'm very blessed that this is clearly reflected in our half-year results, leading to a significant increase of our group EBTA pre-margin up to 3.6%. We have already realized synergy effects that result from the recent merger with Kana and Newco Pharma, mainly in the purchasing and logistics, but also from cross-selling opportunities within our extended partner network. This is all from my side for the moment. I now hand over to Falk to provide more details on the financials for the first half of 2022 and on the guidance for 2022. Thank you, Matthias. Also welcome from my side.