Medios AG

Hello, ladies and gentlemen, and welcome to the conference call of Medias AG. At our customer's request, this content 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 via the telephone conference. If any participant has difficulty hearing the conference, please press 0 followed by the hash key for operator assistance. May I now hand over to Claudia Nicodels, Head of Investor and Public Relations and ESG Communications at Meteos.

Welcome everybody to our earnings call for the first quarter 2024. 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 quarter 2024, the guidance for 2024 and the outlook for 2025. Finally, Matthias will comment on Indra's growth story. After the presentations, we will begin with the Q&A session. I would now like to hand over to Matthias.

Thank you, Claudia. Ladies and gentlemen, welcome to our conference call for the first quarter of 2024. Overall, we started with a solid business performance into the year with a strong operating cash flow. The main highlights of the first quarter of 2024 are shown on slide 3. Let's start with the financials on group levels. We recorded an almost 6% rise of revenue to €456 million, with a slightly increased EBITDA-free of €15 million. We posted a very strong operation cash flow of €43 million compared to €-25 million last year. On the basis of these solid figures, we confirm our guidance 24. 5 will provide more insight on the financials later. Our main highlight of Q1-24 is the acquisition of Feban, an outstanding event for Meteos, a milestone on our mission to create a European specialty pharma platform. This brings me to the new publish yesterday. We are proud and very blessed to have Konstantin from Eutroden on board. Since about a year now and on May 1st, He was appointed as further member to the executive board. Our new chief international market, in short CIM, will drive the international activities of METEOS and develop them further. As a renowned expert for the various international markets. Furthermore, in Q1, the Executive Board contracts of Chief Operating Officer Myung-Mila and Chief Innovation Officer Christoph Brutheis were extended ahead of schedule. Regarding our ESG activities, we continue to work on the implementation of the CSRD and EU taxonomy requirements. Consequently, our non-financial reporting 24 will be fully in line with these new standards. And finally, a few words on our most recent and first acquisition outside of Germany. Seban Pharmaceuticals is the Dutch market leader and also has activities in Belgium and Spain. We see this as an outstanding milestone in implementing the METO's internationalization and growth strategy. On slide 4, you can see an executive summary of this transformative and value-enhancing acquisition. This acquisition is the first milestone in our journey and vision to build the leading European specialty pharma platform. In addition, we get immediate market access to three European countries, the Netherlands, Belgium and Spain. The new makers group will have a leading position in compounding of specialty pharma in Northwestern Europe. With this acquisition, we will significantly diversify our product portfolio and value chain in specialty pharma. We will run a network of 23 owned pharmacies in the Netherlands and will be adding the API business. API stands for Active Pharmaceutical Ingredients and the high-margin non-sterile business as well. The good cultural fit of the two groups strongly supports the cross-selling of potentials and synergies. I would like to stress that the transaction is immediately EBITDA-accretive and will increase our earnings margin from the very beginning. We expect the closing of the transaction to take place during May. Now let's move to slide 5. Our German-wide network of around 800 specialized pharmacies will be enlarged by Saban's network of around 3,300 pharmacies and more than 200 hospitals, as well as the 23 owned pharmacies. This is an excellent basis for our further European expansion and the realization of synergies and cross-selling opportunities. This also means that the number of the currently around 400,000 individualized operations in 2023 will substantially increase. More information on the SEPAN transaction is provided in the appendix of this presentation. We expect to significantly exceed the 100 million euro mark in EBITDA pre already in 2025 with an EBITDA pre-margin of over 5%. I will provide more insight on the financing later. Now some comments on the financials for the first quarter of 24 as illustrated on slides 6 and 7. Slide 6 shows the quarter-on-quarter development of our two KPIs, revenue and EBITDA-free. Revenue, EBITDA-free. and the respective margins for the first quarter were above the level of Q4-23, despite the already described regulatory price adjustment still impacting our PST business. Moreover, Q1-23 revenue included €3 million coming from CulturePista that was sold in June-23. Revenue in Q124 increased by around 6%, and EBDA3 was slightly ahead of the first quarter of 2023, as shown on slide 7. All of this growth was attributable to organic growth. 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 quarter 24, the guidance 24, as well as our targets for 25.