Medios AG

Good morning and welcome to our earnings call for the 2025 financial year. My name is Claudia Nikolaos and I'm head of Invest on Public Relations and ESG at Medios. As a reminder, this conference will be recorded and all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. If you are logged in via the webcast tool, you can also submit questions at any time using the Q&A icon below the presentation slide at the bottom of the screen. If you have any technical difficulties during this session, please use this Q&A button as well. As always, 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. Today with me is our CEO, Thomas Meyer, and our CFO, Falk Neukirch. Thomas will start with an executive summary, followed by Falk, who will then provide details on the financials of the fiscal year 2025 and the guidance for 2026. Finally, Thomas will comment on media's focus activities in 2026, and after the presentation, we will begin the Q&A session. I would now like to hand over to Thomas.

Thank you very much, Claudia. Good morning, everyone. Welcome to the conference call for the financial year 2025. I started as the CEO of Medeos in February. Over the past few weeks, I got to know our teams and operations and our partners more closely. I'm very impressed by the strong organization and the opportunities ahead of us. On this slide, I highlighted some past experiences and summarized my first 54 days in office. I'm fully in the listen and learn mode. As I mentioned, I meet people and I'm trying to understand the organization and work together with my colleagues. As I said, 54 days, it's kind of a little bit more than halfway through the first 100 days. And I can tell you one thing, Medios is a great place to work. And above all, Medios has all the ingredients for success in the specialty pharma business. Let me present the highlights of 2025 on the next slide. We had a very solid financial year 2025 with a significant improvement in profitability and we continue to see good growth. In more concrete figures, revenue grew by 10.4% to, for the first time, over 2 billions to 2.1 billion euros. APTA pre rose disproportionately by 17.8%. to 93.1 million euros. Consequently, EBITDA pre-margin rose from 4.2% to 4.5%. And it is especially rewarding to realize that all earning figures EBITDA, EBITDA pre, earnings per share, earnings per shares adjusted grew disproportionately compared to the revenues. Revenue of €2.1 billion and EBITDA-PRI of €93.1 million were broadly in line with the 2025 guidance. In 2025, May was prepared to enter the reimbursed medical cannabis market, we announced that, and we did that in Germany with an exclusive partnership with BetoCann. This business is up and running and we are happy with the start we see. Outlook for financial year 2026, we expect revenue to reach 2 to 2.12 billion euro, reflecting a growth of up to 2%. And EBITDA Pre is expected to be in the range of 94 to 102 million euro. Again, at this proportional raise, in the profitability with up to 9.6%, reflecting a margin of 4.8%. If you're looking at the quarters development over the last three years, we always see that the fourth quarter is a little bit weaker than the other quarters, especially looking at the profitability. We have seen the similar fluctuation this year. However, back in fall, we had expected a slightly stronger Q4 result. So the question is out there, what happened? And unfortunately, we indeed experienced an unexpected one-off effect. But nevertheless, and I think that's very obvious, the overall trend remains unchanged. We see disproportional earning growth going forward. Furthermore, and the key point, their earnings of Medius, they translate in a very strong cash flow. And I think that's a really strong statement for the company and the capabilities we have. On slide nine now, we talk about our ESG highlights. And for everybody at Medius, when I talk to them and for myself personally, it is important that we deliver for pharmacies for patients. And we strongly feel that we are an important element of the strategic infrastructure for supply security of pharmaceuticals. We work every day to make sure that patients get their medicine they need. In addition, of course, we have ESG targets that we achieve and we highlighted some on this slide. And let me also tell you that for the first time, we completed scope 3 analysis of all relevant categories. And with that, I conclude the initial part and hand it over for more details on our financials to Falk. Falk, please.

Thank you, Thomas. Good morning and welcome also from my side. I will now give you a more detailed overview on the financials for full year 25. As always, you can find the full financial statement on our website. Let's go to slide 8. All in all, we had a very solid fiscal year. Our revenue showed double-digit growth and came slightly in above our forecast for 25 of 2 billion euros. Also, the EBITDA pre-increase significantly and the EBITDA pre-margin even improved to 4.5%. However, due to one-off effects in Q4, as is already mentioned by Thomas, and also due to somehow too optimistic expectation on the timing of the ramp-up of business opportunities, especially in segment international 25. In 25, the EBITDA was just below forecast of 96 million euro. The new business opportunities begin to materialize at the end of 25, but are expected to fully unfold in 26. Minus fiscal year figures. for 2025 were driven by first-time full-year consolidation of the Seabourn Group acquired in June 2024. As you know, in the previous year Seabourn only contributed to the Group's result on a pro-rata basis for seven months. Consequently, the operational segment international business still contributed in 2025 significantly by inorganic growth. Besides this, pharmaceutical supply contributed with a solid organic growth in revenue and EBITDA pre. Overall revenue rose to 2.08 billion euros from 1.88 billion euros, which is an increase of 10.4% of this 63.2 million euros, that is 3.4%, were attributable to inorganic growth from segment IB, mainly to the just mentioned 12 versus 7 months effect. The rest, an amount of 132.4 million euros corresponding to 7%, is attributable to organic growth, mainly from PS segment. The revenue increased The revenue increase of PST segment is mainly caused by the discontinuation of performance-based payments for increased compounding volumes in 2025 versus 2024. Cross-profit of Medios Group improved significantly by 49.1 million euros to 203.7 million euros and an increase of 31.6%. This improvement is mainly due to the IV segment, which contributed 77.4 million euros in gross profit, an increase of 37 million euros, say of 31.7 million euros inorganically, resulting from the just mentioned 12 versus 7 months effect, and the income from divestments of smaller C-line entities, mainly pharmacies, in the amount of 2.7 million euros. Gross profit of PC segment rose by 8.3 million euros to 55. representing a gross profit margin of 23.8% and a margin increase of 3.1 percentage points. This is mainly due to the positive business development and the elimination of performance-based payments for compounding orders in the amount of 6.2 million euros. Gross profit of PS Segment increased again organically by 4.3 million euros, reaching a gross profit margin of 3.8%, which is unchanged compared to previous year. All of that together contributed to a higher Medius Group gross profit margin, which rose by 1.6 percentage points to 9.8%. Personnel cost rose by 17%. 0.2 million Euro to 69.4 million Euro. This rise was mainly attributable to the first-time full-year consolidation of the Sevan Group, as well as one-off expenses related to the change in the executive board in financial year 2025 and a higher average number of employees compared with the previous year. Non-cash expenses for stock options decreased from 1.7 million Euro to 1.2 million Euro. Other operating expenses rose from 39.5 million Euro to 50.2 million Euro, an increase of 10.7 million Euro, thereof 6.5 million Euro attributable to the IB segment. In addition, other operating expenses increased year on year, mainly because of higher IT costs, 4.3 million Euro, thereof 2.4 million Euro increase ERP system, which we adjust under EBITDA pre. The EBITDA pre increased by 17.8% to 93.1 million Euro. The EBITDA pre margin thus improved to 4.5% compared to 4.2% in the previous period. This was supported by two factors. Contribution of the IB segment with higher EBITDA pre-margins and the strong organic growth of PS segment focusing on higher margin products. EBITDA pre was adjusted by extraordinary expenses in the amount of around 9 million Euro compared to 16 million Euro last year. These adjustments consist of 5.1 million Euro for ERP system implementation, 1.5 million Euro one-offs related to changes in the executive board, 1.2 million Euro other M&A expenses and 1.2 The decline in overall adjustment is mainly attributable to the discontinuation of performance-based payments for increased compounding volumes in lower M&A expenses compared to previous year. Depreciation and amortization increased by €6.6 million to €37.9 million. A significant portion of this increase, €6.9 million, Euro is attributed to the 2DIB segment and many results from the full year consolidation of the CYBAN Corp in 2025. The financial result decreased by 8.5 million euro to minus 18.3 million euro, mainly driven by extraordinary financial expenses of 9.2 million euro recorded in the fourth quarter of 25, which are related to the revaluation of the NCI liabilities for the acquisition of minority shares in connection with the acquisition of the C1 proof. Interest expenses for liabilities to banks declined due to the scheduled repayment of the term loan facility and the replacement of the bridge financing facility for acquisition of C1 Group against the SIN loan facility in November 24. The tax expenses rose from 9.3 million Euro to 12.5 million Euro due to higher earnings before tax. The tax rate remains due to non-tax deductible financial expenses from the revaluation of NCI liabilities still high as in the previous year, where non-tax deductible financing costs and M&A costs increased the tax ratio as well. Especially the one of financial expenses due to the revaluation of NCI liabilities reduced the growth of the net result. Nevertheless, the net profit was up 22.4% to 15.4 million euro in 2025. Accordingly, earnings per share rose from €0.51 to €0.61, an increase of 19.6%. Adjusted EPS increased to €1.94 compared to €1.61. Last year, earnings per share adjusted are based on the net result after tax adjusted for extraordinary expenses. PPA depreciation and amortization, revaluation of non-controlling interest liabilities as well as corresponding tax expense adjustments. Operating cash flow was within the expected range and amounted to 52.3 million Euro versus 73.7 million Euro for fiscal year 24. This increase was despite the higher operating result mainly attributable to the net working capital due to higher trade receivables in the DPS segment at the balance sheet date and higher tax payments in 2025. Free cash flow reached 44 million and was thus largely within the estimated free cash flow range as communicated in the past of 40 to 50 million Euro. The investing cash flow of Minus 4.0 million euro mainly reflects capex of minus 8.3 million euro subsequently accrued purchase price payment for the acquisition of Sievern in the amount of 2.3 million euro as well as cash inflows of 5.9 million euro from the disposal of fixed assets in the sale of pharmacies in the IB segment. Financing cash flow of minus 72.6 million euro mainly reflect the scheduled repayment of the term loan in the amount of 25 million euro, net repayment of the RCF loan of 20 million euro and 25, and cash outflows from interest payments, 10 million euro and 12.6 million euro for the acquisition of treasury shares. You will find a summary of the share buyback program in the appendix of the presentation. Cash and cash equivalents amounted to 81.8 million euro at the end of the reporting period. The equity ratio of 56.9% increased again slightly as of the end of December 25 compared to the previous year with 54.6%. On slide 9 and 10, we have provided again a breakdown of organic and inorganic growth. Slide 9 shows the inorganic revenue gross amounted to 63.2 million euros or 3.4% fully dedicated to the IV segment. Organically, revenue increased by €132.4 million, or 7%, resulting from all operational segments, but mainly from segment pharmaceutical supply. Slide 10 shows the organic and inorganic EBITDA-3 breakdown by segment. EBITDA-3 increased inorganically by €12 million, or 15.1%, fully dedicated to IB segment organically EBITDA pre-increased by 2.1 million euro or 2.7% resulting from segment pharmaceutical supply and to a smaller extent from international business. The decline of the organic EBITDA pre-growth of the segment PST is mainly a result of one-time higher personnel costs, e.g. to surveillance pay and one-time higher other operating expenses, mainly to maintenance and repair. EBITDA pre for the internal service segment fell to minus €10.8 million from minus €10.5 million in the same period last year, primarily due to moderate increases in staff costs, which are relevant to EBITDA pre. Let's go to slide 11, providing the 12-month overview of all segments compared to the previous year. As mentioned before, the 10.4% increase in group revenue is mainly driven by the strong organic growth in the pharmaceutical supply segment, inorganic and organic growth in the IV segment, and to a lower extent by PST. The external revenue of the PS segment strongly increased by 6.9 percent to 1.69 billion euro, PC segment contributed 220.1 million euro, an increase of 6.5 million euro plus 3% of which 6.2 million euro are attributable to the elimination of performance related expenses for the acquisition of compounding volumes. The IB segment contributed €169.2 million external revenue in 2025, which is an increase of €80.4 million there of €63.2 million inorganically. EBITDA-3 for the PS segment amounted to 52.5 million Euro, a plus of 5.1%. EBITDA of the PST segment reached 22.2 million Euro, a minus of 4.6%, due to the already mentioned one-time higher personnel and other operating expenses, as just stated. IB contributed €29.1 million EBITDA pre, thereof €12 million inorganically. This translates into a segment EBITDA pre margin of 17.2%. Slide 12. Provides status information on the recent financing structure. In November 24 the debt financing of Meteor was replaced by a syndicate loan facility with two tranches in the total amount of 225 million euros. The risk net debt amounted to around 120 million euros as of 31st December 25, leading to an attractive leverage ratio of 1.3. An estimated annual free cash flow of around 40 to 50 million Euro will enable majors to continue repaying the term loan, cover interest payments and of course finance further cross. At the end of the reporting period the total loan amount drawn under the syndicate loan agreement amounted to 155 million Euro consisting of 100 million Euro under the term facility and 55 million Euro under the RCF. Let's go to slide 14, providing our guidance for the full year 26 for the mediums group. Our guidance parameters are again revenue and EBITDA pre. For 26, we expect revenues to reach the range of up to 2.12 billion euro, reflecting growth of up to 2%. EBITDA pre is expected to be in the range of 94 to 102 million euro, a disproportionate rise up to 9%. Taking into consideration the middle of the EBITDA pre-guidance corridor, organic EBITDA pre-course should be in the mid single-digit percentage range. Both parameters reflect an EBITDA pre-margin of up to 4.8%. The EBITDA pre-guidance is adjusted for extraordinary expenses like M&A-related costs, expenses for stock option programs, implementation costs for an ERP system, and for one-off expenses for efficiency improvements. Thank you for your attention. As I will be stepping down from my role as a CFO at Medius and leaving at the end of April, this marks my final earnings call. I would like to thank you, our investors and analysts, as well as the whole Medius team for your support and trust in the past. And I herewith hand over to Thomas. Thank you.