Gerresheimer Ag Afr

Ladies and gentlemen, welcome to the publication preliminary Q3 2026 results. I am Sandra, the course call operator. I would like to remind you that all participants have been listened only mode and the conference has been recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcasting. At this time, it is my pleasure to hand over to Mr. Nils Fehrer, Corporate Investor Relations. Please go ahead, sir.

Thank you, operator. This earnings call is based on preliminary figures for our third quarter of 2026. Wolf Lehmann and Achim Schalk will explain the quarterly performance and provide an update on the company's development. Let me please remind you that the disclaimer in our preliminary Q3 2026 slide deck applies throughout this earnings call. I will not read it out loud. You can download the slide deck from our website under presentations in the investor relations section. Now, let me hand over to Wolf for the preliminary Q3 results and starting with the highlights of the quarter. Wolf.

Thank you, Nils. Please turn to page three. with our recent company highlights. We continue to execute our transformation roadmap step by step. In third quarter, we achieved a big milestone by closing the sale of center. But before we dive into this, let's start as usual with a business performance. Third quarter revenue increased by 46 million euros year on year to 605 million euros. with all three segments contributing to this top-line growth. Adjusted EBITDA was 103 million euros, broadly stable year over year and quarter over quarter for the total company. We'll go into more detail where we grew and where we work on improvements a few pages later when discussing the segment results. As in previous quarters, we maintained a strong focus on cash management including inventory with a corresponding negative impact on profitability. Looking into the last quarter this year, fourth quarter, cash generation will remain a key priority for us. However, at this stage, we do not anticipate a significant further reduction in inventory levels in fourth quarter. In addition, as in every year, we expect certain settlements under customer and supplier agreements to be recognized in fourth quarter providing a positive contribution to both EBITDA and cash flow. Based on our current visibility for the remainder of the year, we expect to come in within the range of our full year guidance. On the divestitures, as mentioned, we successfully completed the sale of center on October 1, only two months after signing of the contracts. The closing preparations for the sale of primary packaging plastics are progressing well. As a result, the transaction is currently expected to close already in the first quarter of 2027. Having closed center, we also made further progress in our discussion with our banks. We will use the proceeds to lower our debt until the end of this fiscal year and repay the promissory notes maturing in 2026. Post-closing center and primary packaging plastics Our leverage reduces two around three times and puts us in a good position for a full-sum refinancing. On transformation, we continue to execute our transformation program initiative by initiative. Example given on footprint optimization, we have already completed the closure of Chicago Heights and now focus on the merger of our forest growth facility into Morgaden. On SG&A, Our SG&A cost reduction program progresses in line with our expectations, and we're heading towards a much leaner structure in 2027. Lastly, I would like to emphasize that our grow, fix, and sell portfolio strategy remains unchanged and continues to guide our capital allocation and portfolio decisions. Before discussing the quarter in more detail, please turn to page four. As usual, we start the presentation with the quarterly allocation relating to the previously communicated full year 2025 adjustments. The adjustments to third quarter 2025 were limited. Revenue was basically unchanged while adjusted EBITDA increased by approximately 3 million compared with the previously reported figures. The Baffin investigation remains ongoing. We continue to cooperate fully with the authorities and remain committed to accurate, transparent and high quality financial reporting. Please turn to page five for our third quarter performance. Revenue increased by 46 million euros year on year to 605 million. All three segments contributed. Compared to the previous quarter, revenues increased by 26 million euros. Adjusted EBITDA was €103 million, €3 million below the adjusted prior year figure and roughly stable quarter on quarter. The year-over-year development was affected by our continued inventory rigor. We reduced inventories by €20 million in third quarter 2026, burdening this year, compared with an inventory build of €40 million in the prior year quarter, affecting EBITDA obviously positively in third quarter 2025. We'll explain more details by segment on the following pages. Free cash flow before M&A was negative by 20 million euros. The year-on-year development reflects negative working capital movements mainly driven by less reverse factoring impacting payable as well as a higher amount of exceptional items amongst others, advisory cost on stabilization, financing, Transformation and our divestitures. Positive effects from a further reduction in inventories and less net capex could not fully compensate for that. I will explain more details on the cash flow walk page. As stated earlier, we expect to generate positive free cash flow before M&A in fourth quarter and come in within the guidance range for the full year. Before we continue with the segment details for the third quarter, please note that the figures discussed today are preliminary results. As such, they still include center and primary packaging plastics and have not yet been adjusted in accordance with IFRS 5. Furthermore, as highlighted previously, we perform quarterly impairment tests to ensure that assets values appropriately reflect current business conditions, including restructuring measures, with any resulting adjustments recognized in the final quarterly financial statements. Final second quarter or first half we plan to publish in November and final third quarter in December. With that, I hand over to Achim for the performance of containment and delivery systems and primary injectable solutions. Achim, please.