Siegfried Holding AG

Welcome to the presentation of our half-year results, 2026. I'm here with Marcel Winkelried, our CEO, and Tanja Mikki, our CFO. First, Marcel will present the highlights of our numbers, then Tanja will go into the financials in more detail, and then Marcel will talk about the progress in our strategy EvolvePlus and the outlook. At the end, we are looking forward to take all your questions through audio and video call in the Q&A session. With that, Marcel, over to you.

Thanks a lot, Peter, and also from my side, good morning and a warm welcome to all of you. I'm excited to present to you our half-year results 2026 together with Tanja. Tanja joined us two months ago and it was a busy start for her with the integration of the recent acquisitions. With her strong experience as a CFO of a public listed company, she's already running on full speed, so I'm very pleased to have her on board. Now let's turn to our half-year results. The Siegfried team is delivering. Let me give you a summary on the upcoming slide. The performance of the first half of the year is exactly according to plan. Growth is in line with our expectation. Net sales grew by 4.8% in local currencies. Also core EBITDA margin increased from 21.6% up to 22.4%. Integration of newly acquired sites is on track. I will give you more details later on. A most plus strategy. Exciting progress. So I really will share and give you more insights later on as well. With these results, we laid a solid foundation for the full-year delivery. We are confident to confirm our guidance, high single-digit growth in local currencies and an everyday margin above 23%. Now, I'm handing over to Tanja for the financial update.

Thank you, Marcel, and good morning to everyone from my side as well. I'm delighted to be joining you today for my first earnings call as CFO of Siegfried. While I have only recently joined the company, I have already had the opportunity to meet many of my colleagues across the organization and I have been impressed by the depth of expertise, commitment and collaborative spirit of our teams. The strong focus on execution and operational excellence is clearly reflected in the results we are presenting today and is one of the reasons I'm excited to be part of Siegfried. I'm very happy to have joined the company at this important stage of its development and I look forward to supporting Siegfried in the next phase of its growth journey. I also look forward to meeting and engaging with many of you over the coming months. With that, let me take you through our financial performance for the first half of 2026. As Marcel has just outlined, Siegfried once again delivered profitable growth in the first half of 2026, and I'm pleased to confirm that we have established a solid foundation to deliver our expected full-year results. In line with the guidance which we issued at the closing of the acquisition in May, net sales increased to 633 million Swiss francs, representing growth of 2.2% on a reported basis and 4.8% in local currencies. drug substances sales reached 431.1 million Swiss francs in the first half of the year, while drug product sales amounted to 201.9 million Swiss francs. As expected, seasonality is more pronounced this year than in previous years. This is mainly driven by the recent acquisition of three drug substances sites in the US and Australia. As the transaction closed on May 1st, The acquisition contributed for only two months in the current period. Trap Products is more second-half weighted due to planned ramp-up of new products. In addition, seasonality is driven by the nature of our production plan. Let me explain this in a bit more detail. The Siegfried Group recognizes most of its revenues at the completion of a production campaign. As the duration of this campaign can vary from a few weeks to several months or even more than a year, the timing of revenue recognition differs from year to year and depends on the production plan. Similar to last year, a larger share of revenue recognition events are scheduled for the second half of this year, resulting in a stronger second half weighting. Now let's have a look at the charts on the right-hand side where we already see the first effects of the acquisition. Our U.S. dollar exposure has increased to 14%, compared with 10% in the prior year period and driven by increased weight of U.S. generated revenues. For the full year, we expect U.S. dollar exposure to increase further to around 20% with the corresponding reductions in the share of the Swiss franc and the euro. The acquisition is also reflected in our sales mix. The drug substances share of net sales increased to 68.1% from 66.8% in the first half of last year. For the full year, we expect the drug substances contribution to increase further to around 70%. Turning to foreign exchange rates, the US dollar and euro both weakened against the Swiss franc compared to H1 2025. As a result, we experienced a currency headwind of 3.4% in drug products and 2.2% in drug substances. Based on current exchange rates, we continue to expect a currency headwind of around 2% for the full year. Importantly, our natural hedge once again worked well during the first six months, resulting in no material impact on our EBIT margin. The next slide provides the reconciliation from our reported three gap year results to our core results, which form the basis for how we manage and steer the business. I would like to highlight two items included in the reconciliation. The first item relates to adjustments for our foreign pension plans, while we make in every reporting period. We have reclassified 900,000 Swiss francs of net interest on foreign pension plan form from operating expenses to financial expenses. In the reconciliation to core net profit, we have also adjusted for the corresponding core net interest expense. The second item is the exclusion of 400,000 Swiss francs of acquisition and integration related costs from our core results. Having explained the reconciliation to our core results, let me now take you through the core income statement. In the first half of 2026, we further improved our profitability, increasing our core EBITDA margin by 80 basis points compared with the same period last year. We achieved this despite continued increase in input costs, particularly personnel expenses. The main drivers of this improvement were productivity gains, a favorable product mix, and a strong focus on cost discipline across our entire network, including our headquarters. What has particularly impressed me is the relentless focus on operational excellence throughout the organization, which remains a core pillar of our Evolve Plus strategy. This progress is also reflected at the gross profit level. Core gross profit increased to 170.7 million switchbacks, representing year-on-year growth of 4.7%. Core SG&A expenses increased slightly, reflecting our continued investment in systems and organizational capabilities. This includes strengthening our commercial organization in line with our increased focus on commercial excellence under Evolve Plus, as well as expanding our early phase development capabilities across both drug substances and drug products. Between EBIT and Core Net Profit, I would like to highlight two points. First, core financial expenses were slightly higher than in the first half of 2025, reflecting the expansion of our bond financing. Second, exchange rate movements had a slightly positive impact on the result. As always, this effect is driven by currency fluctuation and can vary significantly from period to period. And we now turn to our cash flow performance in the first half of the year. Operating cash flow amounted to 93.7 million Swiss francs in the first half compared with 149.6 million Swiss francs in the prior year period. The decrease was primarily driven by the timing of tax payments, currency translation effects, and an increase in networking capital, largely reflecting the addition of the newly acquired sites. One of my key priorities, will be to drive strong cash conversion, as this remains fundamental to our capital allocation strategy and long-term value creation. Capital expenditure was below the previous year's levels, reflecting the completion of our high-quality drug substance manufacturing facility in Linden. Investing cash flow also included acquisition-related outflows of 157.4 million Swiss francs. Despite these investments, free cash flow remained positive at 15.1 million CHF. Financing activities generated 143.3 million CHF, primarily to fund the acquisition, resulting in net debt to core EBITDA increasing to 2.3 at the end of the period. Overall, the underlying cash generating capacity of the business remains strong. Our focus will continue to be on cash generation and networking capital management. Let me now turn to our capital allocation framework. Our capital allocation framework remains unchanged. We continue to invest in attractive growth opportunities both organically and swimmingly. These investments are designed to support sustainable top-line goals, strengthen our customer offering, and over time, contribute to margin expansion and increased cash generation. The acquisition completed in the first half is a clear example of this framework in action. It strengthens our platform, expands our capabilities, and demonstrates our ability to deploy capital selectively when we see a compelling strategic and financial opportunity. The recent acquisitions has neither changed this framework nor our M&A strategy. M&A remains always on. At the same time, Our immediate priority is the successful integration of the acquired business and the realization of the expected benefits and value creation. We will continue to assess opportunities against the same discipline criteria. Strategic fit, value creation, and an attractive return on invested capital. We will not pursue transactions simply for the sake of growth. At the same time, our approach to organic investment remains equally disciplined. And now that we have completed several major capacity expansion projects, we will focus on decreasing the capital expenditure level. This is also part of my ambition to maximize cash generation. Importantly, the ramp-up of our capacity expansion projects in Linden, Hameln, and Barcelona are progressing according to plan, with the additional capacity being filled in line with our original expectations. And Marcel will provide more detail on this in a moment. Going forward, we will continue to invest selectively in capacity, technology, and capabilities that support future customer demand while maintaining capital expenditure in the low teens as a percentage of sales. As expected, leverage has increased following the acquisition, and it is now our ambition to return back to pre-acquisition levels. We will put a strong focus on cash generation and deleveraging while maintaining the financial flexibility to invest in the business, and act on attractive value accretive M&A opportunities when they arise. To sum up my remark, we delivered a solid performance in the first half of the year. We executed exactly according to plan and we established the foundation to deliver our guidance for the full year 2026. With that, I would like to hand back to Marcel who will give us more insights into the execution of our Evolve Plus strategy.