Medios AG

Ladies and gentlemen, welcome to the conference call of Medios AG. As a customer's request, this conference will be recorded. As a reminder, all participants will be on 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 over to Claudia Nikolaus, Head of Investor and Public Relations at Medios.

Ladies and gentlemen, welcome to our conference call on the results for the first nine months of 2022. As in the past, 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. The course today is hosted by our CEO, Matthias Werner, and our CFO, Falk Neuters. Matthias will start with a summary, followed by Falk, who will then provide details on the financials for the first nine months of 2022, as well as on the outlook for the remainder of the year, And finally, Matthias will comment on NITO's growth strategy. Both Matthias and Frank will be available to answer your questions afterwards. I would now like to hand over to Matthias.

Okay, thank you, Claudia, and also a warm welcome from my side. Thank you for joining this call, and thank you for your interest in NITO. I am proud to present a further set of excellent results today. The first nine months of 2022 were by far the best for me, and Q3 was our seventh consecutive record quarter. Let's go directly to slide three, providing an overview of the achievements and highlights for 2022 so far, whereby my comments refer primarily to the third quarter. What were the highlights of the third quarter? First, we have received the manufacturing permit for our new GMP lab in Berlin. This is a significant step towards increasing our compounding capacity in the higher margin segment patient-specific therapies, abbreviated PSP. Furthermore, we will be able to prepare for compounding for next-generation medicines, for example, in the field of personalized therapies. With this permit, everything is set to begin compounding for our partner network of specialized pharmacies next week. Those attending our Capital Market Day on November 24 will get a first-hand look at our new cutting-edge labs here in Berlin. Second, the integration of NUCO is progressing very well and we continue to see good synergy and cross-selling effects. And third, our financials are strong with another record quarter in terms of revenue and EBITDA3, driven by the integration of new co-pharma and to a lower extent also by organic growth. In a nutshell, we are very well positioned to achieve our targets for this year. Consequently, we confirm our guidance for 2022 Also, we were impacted by the changed reimbursement schemes in our P&T segment for some phytostatic medicines, which became effective on September 1st, 2022. While we expect our revenue to reach the upper range of the guidance, EBITDA-3 will presumably come in at the lower half of the range of 52 to 58 million euros, due to this effect. FICE will provide more details on our outlook later. Our mid- and long-term strategy, including internationalization, will help us to mitigate further the potential negative effects of the general economic and regulatory environment. We are working on additional measures, which will also help us to offset the potential effects. we are very confident to successfully continue our growth story. Now a short summary on the financials for the first nine months of 2022, illustrated on slides 4 to 6, impressively showing our profitable growth. Slide 4 illustrates the strong continuous quarterly growth of our two KPIs, revenue and EBITDA premiums. again reaching new revenue and EBITDA-free records for the seventh record quarter in a row. The nine-month figures on slide 5 highlight the disproportionate EBITDA pre-growth of 55% to almost €44 million, also leading to higher margins. We have also made good progress towards our goals of expanding the share of the compounding business within the materials portfolio as illustrated on slide six. This reflects the impact of the consolidation of Newco Pharma since January. A remarkable increase of the share of PST business. Compared to last year, we increased the revenue share for PST from 5% to 14%, and for EBITDA-3, we doubled the PST share, coming from 20% to now 41%. This development is fully in line with our strategy and goal to increase the share of the higher-margin PST business. As the numbers demonstrate, we are successfully integrating the new co-pharma group. We are on track to combine growth with significantly and sustainably increased profit margins of the entire METEOS Group. On slide 7, we can see the strong network that we can build on with the integration of the EUCO Pharma Group. Furthermore, the start of the compounding at our new GMP lab in Berlin will help to increase the METEOS Group's manufacturing capacity in the higher margin PST segments up to 600,000 preparations per year. This new GMP lab is one of the most modern, safe and effective GMP laboratories in Germany. And it will enable us to work even more efficiently, make processes over-saver and increase profitability at the same time. 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 nine months of 2022 and on the guidance for 2022 as well. Thanks, Matthias.