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 are 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 hash key for operator assistance. May I now hand over to Claudia Nicolaus, Head of Investor and Public Relations and ESP Communications at Medios.

Ladies and gentlemen, welcome to our conference call on the results for the full fiscal year 2022. As in the past, all relevant documents can 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 call today is hosted by our CEO, Matthias Werther, and our CFO, Fife Neuschel. Matthias will start with a summary, followed by Fife, who will learn to write details on the financials for the fiscal year 2022, as well as on the guidance for 2023. And finally, Matthias will comment on media's growth stories. Both Matthias and Fred will be available to answer your questions afterwards. I would now like to hand over to Matthias.

Thank you, Claudia. Also, a warm welcome from my side. Thank you for joining this call and your interest in METROS. Overall, 2022 was a very successful year, by far the best for METROS. And this against the background of the global crisis and uncertainties. we are proud to present a further set of excellent results today. Let's go directly to slide 3, providing an overview of what were the highlights for 2022. First, we substantially strengthened our patient-specific therapy segment, the abbreviated PSP, through the acquisition of new co-farmers. The integration is on track, and we continue to realize good synergies and cross-veiling effects. This is what we also expect for the agreement on the sterile manufacturing collaboration with Apotheken, the Spezialversorgung OHG, as part of the acquisition of DDW as of January 23. It is also worth to mention that the manufacturing in our new GND lab in Berlin has commenced after receiving the permit last year. This was a significant step towards increasing our compounding capacity in the higher matching segment patient-specific therapies. Furthermore, we will be able to prepare for compounding for next-generation medicines, for example in the field of personalized therapies. Those who attended our Capital Markets Day on November 24th for the first-hand look of our new cutting-edge slab. Second, we have achieved the best financials in our company history, €1.6 billion in sales and a disproportionately higher EBITDA-free, representing a substantial increase of the group margin to 3.4%. Driven by the integration of Newco Pharma and to a lower extent also by organic growth. Furthermore, we posted strong operating cash flows and a more than double EPS. For 23, we expect growth with a revenue of up to 1.8 billion euros and an EBITDA tree of up to 63 million euros. And third, we started the implementation of our extended growth strategy 25, presented at our Capital Market Day in November 2022. We are particularly glad that we have been able to recruit an internationally experienced senior manager, who will try forward internationalization as part of the extended strategy. Heading this new department, I will come back to this later in more details. In line with our growth strategy, we recently extended our operational activities by providing hereditary nutrition for prematurely born babies, a quite challenging and complex service. Our ESG strategy is well embedded in the overall make-makeup strategy, and we continue to successfully implement this strategy as well as further improving our ESG rating. In a nutshell, we achieved our targets for 2022. Also, we were impacted by the changed reimbursement scheme in our PST segment and the general economic uncertainty. We expect ongoing growth in 2023. TALS 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, let me share... A short summary on the financials for the fourth quarter and full year 2022 as illustrated on slide 4 to 6. Slide 4 shows the strong continuous quarterly growth of our two KPIs, Revenue and TPTA3, until third quarter of 2022, with the fourth quarter reflecting the negative impact of the regulatory changes which became effective on 1st of September 2022. The two-year figures on slide 5 highlight the disproportionate EBITDA free growth of almost 43% to almost €55 million, also leading to higher margins. We have further expanded the share of the compounding business within the major portfolio, as illustrated on slide six. This demonstrates the impact of the consolidation of EUCO Pharma since January 22, a remarkable increase of the share of PST business. Compared to last year, we increased the revenue share of PST from 5% up to 14%. And for EBITDA-3, we more than doubled the PST share, coming from 21% up to now 43%. This development is fully in line with our strategy and goal to increase the share of the higher-margin PST business. Now let's move to my favorite slide 7, which we have already shown in the past. It describes our strong network of meanwhile around 700 specialized partner pharmacies, an excellent basis for our German expansion. The start of the compounding at our new G&G lab in Berlin helps to increase the major group manufacturing capacity in the higher margin GST segments to up to 600,000 preparations per year. This new G&G lab is one of the most modern, and effective gene field laboratories in Germany. And it will enable us to work even more efficiently, make processes even safer, and increase profitability at the same time. Based on our increased capacity and the agreement of manufacturing for AFS that we mentioned before, we target to compound more than 400,000 preparations in 2023. On slide 8, please find an update on our ESG activities. In terms of ESG, we have built a good foundation over the past two years. The ESG strategy provides us with a framework up to 25, and through the ESG committee, sustainability is an integral part of all management levels. With the help of ESG software implemented in 22, we have been able to expand the depth and breadth of our ESG database. 22 thus becomes our baseline year. Based on this, we can manage the targets and measures. In 23, the focus will be on increasing energy efficiency, maintaining a female quota of over 50% in leadership positions, and implementing a supplier code of conduct, among other things. This is all from my side for the moment. I now hand over to Falk to provide more details on the financials for the full year 2022 and on the guidance for 2023.