Medios Stock

Good day, and welcome to Medios AG Analyst and Investors Call on our first half 2026 results. My name is Katrin Neuffer, and I'm Director, Investor Relations at Medios. It is a pleasure to welcome you to today's call.

Our CEO, Thomas Meier, and our CFO, Stefan Bauerreis, will take you through the presentation today. They will provide an overview of our business performance in the first half 2026, including the key financial figures and important developments at Medios. Following the presentation, we will have time for a Q&A session, during which you will have the opportunity to ask questions.

As a reminder, this conference will be recorded. [Operator Instructions] All relevant documents can be found on our website.

And with that, I would like to hand over to Thomas Meier. Thomas, please go ahead.

Good morning, everyone. We prepared 30 slides today. We want to keep it short so that we have ample time for Q&A and for the partial solar eclipse later over Europe. So the executive summary to start with. We achieved revenue of EUR 1,075 million, and that's a plus of 8.4% and the first time that Medios achieved more than EUR 1 billion in the first half year. Our EBITDA pre is at EUR 44 million, that's minus 5.1% and an EBITDA pre margin of 4.1%.

Our focus is unchanged. We focus on profitability, cash conversion and operational efficiency. For that, we started the project Avanti Medios, that is helping us to cut costs and to help those operational excellence initiatives that are long term, but I think we see the first positive development in the second quarter. Yesterday, we announced a strategic milestone with the acquisition of Caelo, a company that fits our compounding initiative and helps us to enter the German market. We're excited about this opportunity, and we will give you more detail in this slide deck.

Looking at the numbers of the first half year, we see that our revenue grew. All segments helped with the revenue growth. And at the same time, EBITDA pre margin is lower than in the previous year. That is due to lower profit margin and increased operational expenses. We see those effects continue in the second half of the year, and that's why we adjusted our guidance as we told you last week.

If we look at the different business areas, we see pharmaceutical supply with a revenue growth of 8.5% and at the same time, price pressure on specific margin high products. That resulted for that segment a 2.7% margin compared to 3.3% last year. That's where we had the biggest impact in the first half year. Patient-specific therapies, on the other hand, we also see a strong revenue growth of 8.5%. And what's very rewarding to see is that in Q2, our operational excellence measures helped to increase the EBITDA margin to 10.2%. We expect positive development for the second half of 2026 in that business area.

Our international business revenue growth is 6.9% and also a healthy EBITDA. And at the same time, we see some margin pressures going forward, and we took that in our adjusted guidance. On the regulatory radar, we see the drug price regulation, Hilfstaxe, still under arbitration. So we don't really know what the outcome will be. We expect that to be closed, this arbitration procedure, in 2026. And in our forecast, we have only a limited impact there, knowing that it is not yet known.

For pharmacy reform plan, we don't actually see a significant influence on Medios and the GKV Contribution Rate Stabilization Act is in force since the 30th of July, and we got a negative there that the cannabis flowers are no longer reimbursed. That movement was a little bit faster than what we expected, and we took that negative impact into our adjusted guidance.

Health Security Act is still under planning. It is not yet in the government bodies. We expect that to be happening in the fall window and see there an opportunity for Medios once the regulation is known. The EU directive is a rather long-term project. There is nothing changed. We believe that the national law will integrate those adjustments in the second half of 2028, and we see those development in Europe, we are rather supportive of our business model.

So much for the regulatory radar and now to what everybody is probably most interested is the acquisition of Caelo. Here are the details. We have a -- we're going to buy a 74% stake in Caesar & Loretz GmbH. That's a total consideration of EUR 9.4 million. We paid EUR 7.9 million for the 74% of the shares. We have a EUR 1.5 million control premium, which later can be deducted when we will buy the remaining 26% of the shares. Included is an earn-out provision that depends how the market develops of EUR 1.8 million. Caelo is the market leader for compounding ingredients in Germany. So it accelerates our entry in the German market. That's something we were looking for, and it has a complementary product portfolio to our PST business that is complementary and also serves the pharmacies. So we see synergies there. We also see process synergies in combined sourcing, marketing and sales mainly going forward. Signing was yesterday, and now we are going to the antitrust process, and we hope that we can close the deal in a relatively short period of time.

What's the company Caesar-Loretz? We have 240 employees working there. We are serving pharmacies, hospital, industrial clients, mainly in Germany. And overall, it is the compounding essential business. We sell OTC products to pharmacies, to hospitals and also to the pharma industry. Overall, they make EUR 40 million revenue is the expectation in 2026, and they expect an EBITDA of EUR 1.6 million. Our target for the EBITDA is higher. We see that we can -- as a combined entity, we can increase this margin profile going forward. It was founded a long time ago in 1886 and headquartered in Hilden and Bonn and the Managing Director, Asiye Dogan, will remain in the director role, while Ulrich von der Linde will retire to be shareholder going forward.

How does that deal fit with our strategic objectives? It will strengthen our core market in Germany. That's very important and it will add services for pharmacies as we do the dispensing for smaller quantities in those facilities that are GMP approved. Caelo is the clear market leader with what you see up here in the right corner, a very, very well-known brand in the pharmacies. You really see the Caelo label in every pharmacy that does some compounding business. So we see a good opportunity to further strengthen that brand recognition and position it in the Medios network even more successful than in the past.

It is also a next step for our European API platform extension. We have Metapharmaceuticals in Spain and Magis in Belgium, and we will combine that as one Compounding Essential GmbH under the leadership of Constantijn. And we see growth opportunities in Europe and have now a solid platform to further go after those opportunities.

Where are the synergies? Certainly, in the supplier network. It's important that we have a professional sourcing organization for all 3 companies, and we see opportunity there to have a better procurement operations going forward. We also add capacities to our network where we believe we can further grow the business, and we'll do that in our integration office going forward.

With that, I pass it on to Stefan, who explains you more about the financial details of this transaction.

Thank you very much, Thomas, and also welcome from my side, and I will jump in directly in this slide regarding the financial assessment of the transaction and the acquisition of the 74% of Caelo. So let me focus on 3 topics: synergies, the valuation and also how we will finance the whole transaction once closing takes place.

So on the synergies side, as Thomas already pointed out and mentioned, there is mainly opportunities around there in terms of the cooperation between all our API businesses that we have with -- now with Caelo in Germany, but also in Spain and in Belgium and combining this kind of stuff. And we are also tried really much to separate and to see what are the opportunities in terms of synergies that we could get out for and that you can see on the black bar, which are the synergies that we will see on Caelo level itself and what are the ones that we believe that we will see on the level of the other 2 companies.

So that will mean we will have, let's say, a good 2 years, 2 to 3 years to really come to the full extension of the synergies that we want to get or that we believe that are realistic. They are obviously mainly focused on the strengthening of the cooperation of a very good purchasing network. And therefore, really much this has to be the focus of our synergies, the operational excellence, the cooperation between Magis Pharma, Meta and Caelo, and this will start immediately after closing took place and all the approvals are there.

So in total, we will see a EUR 2.1 million opportunities, which compared to the EBITDA number that the company currently has is a quite significant improvement that we believe that we could get. In addition, then coming to the valuation, all what you see here, the EBITDA multiple based on the 2024/2025 because the company has a fiscal year, which is not the calendar year. That's why it's called like that. It's an EBITDA multiple of 5.4x.

You have to know that all these numbers that were discussed with Caelo as of now before closing are numbers of the company which is doing all their accounting based on German GAAP. So all these reclass what you normally see or you have to see based on IFRS 16 for leasing expenses is not yet included. And therefore, by technical issue itself will also increase margin and will optimize also here the multiples that we see. So what you see here in the numbers, it's all the EBITDA multiple based on the German GAAP numbers. And therefore, with the synergies, we really strongly believe that we will bring a significant improvement of the qualities of earnings in there.

Talking shortly about the financing of the transaction. So we made there a bridge financing of 1 year, which is based on the following condition. This is the euro short-term rate is the basis, and we have there an interest margin of 0.85% that we have to pay. I think these are very, very good conditions in terms of getting the financing structure of the company. Why we decided to do a 1-year based bridge financing in the first instance because you know in our credit facility that we have with our core banks, there is also a kind of revolving credit facility involved where we have an increased option that we then can take in 2027. So the point is here, we will not refinance the bridge with a complete different transaction in terms of financing, but we -- with the structure of the extension increase option of the RCF, we are able to do that in a very easy level than in 2027 and therefore, are here on a very safe side.

In addition to that, you have to know that our leverage ratio is as of now before the acquisition with 1.32 in a very conservative and a very good and low level. And even with the acquisition, also already here taking into obligate -- in mind the leasing obligation that we then have to show as financial debt. We will change that to increase from 1.32 to 1.42 due to the fact that we have to finance the purchase price and on the other side, also having there a 5-year term loan, a 5-year rental agreement for both locations in Hilden and Bonn, but with additional extension option also for the future. So flexibility in that perspective is 100% on our side, and that is very healthy and very good.

So this having said, I would like to close my additional information on the financing side of the transaction and give you a flavor of what are the next steps. So obviously, yesterday, as Thomas said, we had the signing of the contract. Now in the following days on a short-term basis, we will make the notification to the competition authorities, the Bundeskartellamt. With all what we know, all what we got as information from the lawyers, it's nothing that we should expect in terms of any issues. So it's a formality that we have to do. But nevertheless, it's an important one, and we take it serious. And then the intended closing, once again, it's always depending on when we get the green lights from the Bundeskartellamt will then be there and hopefully, and we believe that in Q4, we will can manage that and having there the closing of this transaction.

This having said, going back to the financial overview of Medios and coming back to the half year numbers and giving you a little bit more detailed flavor of where we are. Thomas already pointed out that we have a strong organic growth in revenues. But at the end of the day, when we're talking about the EBITDA pre margin, we reduced from 4.7% last year to 4.1 percentage points. We will come when I guide you through the different segments to the different reasons why we had that.

An additional information, I think, which is needed is even when it's not yet guided, it's the cash flow from operating activities. It reduced significantly from EUR 23.4 million in the first half of last year compared to the EUR 11.2 million this year. This is mainly due on the one side, obviously, due to the somehow a little bit lower level of the EBITDA that we have as a company. But on the other side, and that is what we have to know, it's mainly timing issue due to tax payments because significantly higher tax payments or lower tax refund took place in the first half of 2026 compared to 2025, what we saw there. And this alone on the tax side, these are impacts on around EUR 6 million, which obviously negatively impacting the operating cash flow.

Talking about everything what is working capital. We are absolutely on track in optimizing that. For sure, you see an increase between the first half of 2025 to 2026. But let's say, the development in the first half last year and the development of the working capital was quite positive, and we were able to optimize also here and to improve slightly our ratios that we have. So therefore, working capital transaction activities are on track, mainly impacted cash flow by additional tax payments, which did not take place in the first half of the year 2025. So therefore, not that somebody believes that due to the operational business, we are not able to generate any cash flow anymore. So this is absolutely not the case. We will come back and also our targets that we see with a straight operational cash flow steering and management will continue in that way for the second half of the year.

Now as promised, getting back to the growth and the overview of the different segments, Pharmaceutical Supply, patient-specific therapies and International businesses. Here, you can see the quite significant good growth in -- mainly with 8.5% in Pharmaceutical Supplies, but also in the patient-specific therapies. So there, we are very happy that we were able to realize there in the first half of the year, a very good performance. You see on the EBITDA pre side that in the Pharmaceutical Supply, we are below prior year. This is mainly due to pricing issue with some specific products that we were not able to get this higher margin in this year on the Pharmaceutical Supply side.

On the other side, when we go to the patient-specific therapies, it's always still on the half year, a little bit below prior year, but the second quarter was already very promising. And last but not least, obviously, the International business also developing here good with a growth of 6.9% in sales and a slightly better EBITDA pre margin in that year.

As I already mentioned, revenue went up in Pharmaceutical Supplies, but EBITDA pre decreased. So that is obviously not the structure we like to see, but this is due to continuous price decrease on selected individual products, which unfortunately also we will see that this will maintain in the second half of the year. So there, we do not believe on a big recovery in that perspective. Nevertheless, I think we are, nevertheless, here on quite good track. And also compared with other wholesalers, we still have a good margin that we are able to achieve.

Medicinal cannabis business already started. You know that from the presentation of the first quarter. It was a little bit later. So it was a delay in the first quarter, but it developed quite positive in the second quarter this year. So we gained the momentum. Unfortunately, with the now new law in not getting any reimbursement anymore of the cannabis flowers that will make the develop -- further development very difficult or more difficult in the second half of the year. But that, as Thomas said, is already included in our new guidance in there. Also, you have to know that nevertheless, cannabis is not the big revenue contributor still for Medios.

Going to the bridge that we showed first time in the Q1 year-over-year. So you can see the major impacts are the EUR 2.7 million with the price drop of various products, individual products that we have here. Then we see a good development in new businesses like the Novartis and also the cannabis one. And on the other side, there are some operational expenditures increasing, labor cost increase, which are normal. So apart from this price drop, we would say business is developing okay, but the price drop, unfortunately, in that business, we cannot compensate here.

Coming directly to the patient-specific therapies. Also here, the situation now and here, I would like to draw the attention mainly to the second quarter. So also those who participated in the call of the Q1 noticed that with there, we were due to several reasons, below expectations in the margin. Now the good message here is we are back on track regarding the growth of the business in terms of the revenue. So we increased from EUR 54 million in the Q2 to EUR 59 million revenues. It's a growth of 8.6%. So -- and that in this market in Germany, I think it's a good development that we have.

Second, also here, and that is also what we promised on Q1, we -- the margin and the margin quality of these segments will come back. And here we are. Now we managed to get the 10.2 percentage point EBITDA. So Thomas already mentioned our Avanti Medios project also here shows the first good positive impact. And also, I just want to draw the attention on the effect that -- and what we announced that we closed the location at Aschaffenburg and the site of Aschaffenburg end of last month. So therefore, that will mean impact -- positive impact due to this, let's say, change in the structure is not yet included in Q1 because this just will take place in Q3. And that's why we are quite positive that the good development will continue in that segment, and we are absolutely delivering with our business here in Germany, what we promised. And our guys with our colleagues, with Christoph, they make a really great job to optimize the margin in the German market.

In terms of our bridge, what does that mean? So we have here a quite positive volume impact, which is obviously helping us and which brings us the growth. The drug price regulation, that is this impact on the German Hilfstaxe. That is the normal, let's say, price impact that we have to compensate and we have to live on that perspective.

On the other side, then there is also an increase in personnel costs and also some other costs still in the first half of the year. We were working on that mainly on the other side to improve the situation and also the operational efficiency and excellence will help us going forward in the second half of the year. So I think well done.

Coming now briefly to the international businesses. Also here, revenue went up. So we are now at EUR 44 million. When you have a look at the Q2 last year, it's EUR 42 million. It's also here quarter-by-quarter increase of 4.8% in terms of revenues and sales. And also the EBITDA margin is with 17.5%, one of the best that we had. Obviously, it's not the best, but compared to the Q2 of last year, I think we were quite significantly improved. Also here, management and the people made there a good job.

And also here, we know that on the terms of operational efficiency, we have already identified the activities to do, and we will work on that, that also with the Avanti Medios project, which is a total group perspective program also will then step-by-step show positive impacts on the next month to come. We know that there are some higher material costs, mainly with the eye syringes that we are delivering to our customers. And also these are topics where measures already are started to solve that issue and to improve here the gross margin in that product segment.

Coming also here as a summary to our EBITDA bridge. So positive volume effect of about EUR 4.2 million. Then we had last year and this year, both 2 different disinvestments which we believe that for transparency reason, we should show that a separate impact. These were mainly sale of one pharmacy last year. And this year, it was the, let's say, the sale of a building that was not used anymore in Belgium, where we had extraordinary earnings, if you want to say it like that, of EUR 0.8 million. So still last year, more -- higher positive one-timers than this year if you compare that.

And then on the other side, we have the known additional material costs, mainly talking about the eye syringes products. And then the topics like wage increases, which are the normal increases of wages that we have from year to the other year. You see personnel cost savings on the one side, that is correct, but it's unfortunately compensated by the OpEx on the other side. Why is that the case? Because currently, some internal planned people are not hired currently mainly on the pharmacy side and are used with external people, and these costs are shown in the other operational expenditures. And therefore, it's more, let's say, a change in the cost level or in the cost line where you can see that.

Finally, we were able to increase here the EBITDA pre. We were able to increase for the half year 1, the total number, that is great. The second quarter was even a very good development of margin, and that makes appetite to get more and to develop further this international area.

Last but not least, coming back to the Medios Group as a whole. You already know with the announcement that we made last week, that we say on the sales or revenue side, we developed quite good. So also here, our now revised guidance is a little bit higher in terms of sales than what we -- when we had in the first guidance. So we now say it's EUR 2.1 billion up to EUR 2.16 billion as our sales or revenue guidance.

On the other side, and that is not our target, but due to the fact that we have these pricing issues mainly on the wholesaling activities in PS segment. And on the other side, the positive development of cannabis not coming in the second half of the year. These are major impacts also, if you want to say it like that, that we have to take down a little bit the EBITDA pre guidance margin from EUR 94 million to EUR 102 million, now down to EUR 88 million to EUR 92 million.

You can see on the right side all the different reasons for that. I can assure that the management is working hard on really focusing on the Avanti Medios and make all the operational excellence activities happen this year and also for the years to come. But I think also here, that is the realistic guidance.

So with that, I hand over and I give back to Thomas for the focus activities and the takeaways. Thomas?

Thank you, Stefan. I'm going to keep it really, really short. Nothing changed here with our focus activities. We have the One Team Medios initiative. We want to bring more transparency and collaboration in the entire group now also with Caelo, and we are using processes to do so, but we also use digital, and we will introduce SAP S/4HANA system at 1st of January for Medios Pharma. Operational excellence is key in that business that we are running. So we are focusing on capital master plan, business integration, digital road map. We get those concepts out. We want to bring that on a group level and make sure that we can lift those synergies we see when we have more transparency and processes that span all our geographies.

We continue to accelerate our organic growth. We have shown growth in all business areas, and we want to keep it that way. We are looking for additional business with existing customers or new customers. And as we have done with Caelo, we are looking for selective M&A activities that are value accretive and add-on acquisitions or collaborations.

It's important here to mention that an M&A starts with the integration plan, and those plans are already in the making for the Caelo integration, and I think we can set a nice piece there showing that we really can gain together going forward.

We will talk about all this and more at the second major Capital Markets Day on the 29th of September. A good opportunity to see compounding hands-on and personal and also to network with the top leadership team for that. We also have a dinner on the 28th, and I hope all of you will join and use the opportunity to know ourselves, get closer together and also see what we do in our Breda operation in the Netherlands.

Key takeaways I would like you to go and see is the broad-based growth we have in our business. So growth is there. We are delivering a market that likes our services. So that's very positive. We see first small, but still, I think, sustainable progress on margin in the PST business, more should be coming there. And we have now an acquisition of Caelo where we want to further strengthen our compounding business, where we bring additional services in Germany for the pharmacies, and we really have a broad product range that pharmacies will be able to buy from us. I think there's a lot of strategic sense to this acquisition, and I'm really looking forward to have a nice integration process starting as of today.

Good morning, and welcome to our earnings call for the first quarter 2026. My name is Claudia Nickolaus, and I'm Head of Investor Relations at Medios. As a reminder, this conference will be recorded [Operator Instructions].

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 is with me our CEO, Thomas Meier; and our new CFO, Stefan Bauerreis. Thomas will start with an executive summary, followed by Stefan, who will then provide details on the financials of the first quarter 2026 and on the guidance for 2026. Finally, Thomas will comment on Medios focus activities in 2026. After the presentation, we will begin with a Q&A session. I would now like to hand over to Thomas.

Thank you, Claudia, and welcome, everyone, to the first quarter conference call of Medios. Let's start with the first things. First, financials. You have seen it, top line growth, albeit at a reduced margin. Margin was impacted by price pressure and increased cost base. In detail, revenue grew by 8.9% to EUR 527.6 million. EBITDA pre decreased to EUR 21.2 million. That's a minus 7.9%. This is resulting in an EBITDA pre margin of 4%. We had significant improvements with the operating cash flow to EUR 12.5 million due to successful working capital management and a strong cash conversion.

A few details to those results. I mentioned we had price pressures and the price pressure was especially pronounced in Germany, and that was true for the wholesale business and the personal treatment business of Medios. We will look into those numbers in detail. And overall, we have to say that the legal and long-term compensation discussions and the overall environment for pharmacies in Germany is challenging right now. And of course, we have seen that in our first quarter results.

The entry into the medical cannabis market was successful. We had first sales, and we are happy with the uptake in the market of our products. So that's a good one. And overall, we have seen that the market is there. We had healthy growth on the top line.

And it's my great pleasure, and I know you will enjoy it, Stefan Bauerreis, our new CFO, will be part of this call. He signed on in the first quarter, and he actually started mid-April and had a really, really good start here. He fits into the team, and we all like to work with him.

And the next good news is, of course, that we are convinced that we can confirm our guidance, the revenue in the range of EUR 2 billion to EUR 2.12 billion and EBITDA pre [ margin ] of EUR 94 million to EUR 102 million. That's our target, and we believe and our forecast shows that's in the numbers for us to do.

With that, on the next slide, we see the comparison of the quarters. Here, again, on the left side, you see the healthy growth from EUR 485 million to EUR 528 million in the first quarter year-over-year, 8.9% more revenue. At the same time, the margin pressure, you compare EUR 23.1 million for Q1 with the EUR 21.2 million for Q1 2026. And you see this as a result of the pricing pressure and the cost base.

We will mention here that we had a first term onetime EUR 1.4 million EBITDA in 2025 due to the sale of the pharmacies and more details on the EBITDA with a nice bridge will be presented by Stefan just in a minute. As a result, we continue to remain with our guidance, and that means that for the upcoming quarters, we need to significantly improve our profitability, and we have plans there, how we're going to manage this, and we believe it's possible. So that's the bottom line. We think it's going to get better. And with that, I pass it on to Stefan. Stefan, have a good start into our presentation here. Please go.

Thank you very much, Thomas, and also very welcome to this call to all the participants. And Thomas, thank you for the very warm welcome to the group to Medios Group. So during the next couple of minutes, I would like to guide you through and giving you an overview about the financial situation. As Thomas already gave as an overview, we made a revenue of EUR 527.6 million, which is a total increase of 8.9% compared to the first quarter of prior year 2025. In that perspective, you can see that revenue increase, it was covered and supported by all operational segments. And with those segments, we will go through them individually in the next slides. But we also have to say that this goes hand-in-hand also not with the same development on the gross profit margin. There is due to some price reduction of various products that we see, mainly in the 2 segments, PS and patient-specific therapies. There are some impacts on that on the material consumption, what we then can see and also having a look on material consumption, we will come on that later in the presentation.

EBITDA pre-margin at 4%. This is below prior year. So obviously, nothing that we really like. But also that is for a certain part of that increase or influence by some one-timers that we saw as well in 2026 as well as positive one-timers in 2025. Thomas already mentioned the sale of one pharmacy in Netherlands, which contributed to the last year numbers already with EUR 1.4 million. The earnings per share is adjusted, it's more or less on the level of prior year. So I prefer showing more the adjusted one because this is then shown adjusted by all of the specific one-timers. So last year it was EUR 0.46. Now we are at EUR 0.44 and hoping and convinced that this will improve also over the couple of the next months.

Strong operating cash flow, I think that is the very, very positive message that we were able in both sides, the operating cash flow as well as the free cash flow before M&A to improve significantly. And therefore, we made in the operating activities, the cash flow last year first quarter, EUR 3.6 million positive. This year, EUR 12.5 million, which is obviously very much also supported by an effective working capital management. And that is also to be focused also in the months and the years to come to remain with the company as a strong cash flow generating entity.

When we talk about investing cash flow, it's minus EUR 2.1 million. We are more or less -- consists of the CapEx of EUR 2.6 million, followed by some other small divestment and also interest received, which is then offset by that. So this shows, let's say, our low CapEx need that we have in our business as a good portion of that is trading goods. Financing cash flow, I think that is almost on the same level than end of 2025. Due to the fact that all loan repayments on the one side, then higher RCFs taken on the other side, interest payment, this is more or less equaling to 0.

You might have then the question what we are doing with the good operating cash flow. I can tell you that is what then adds currently to our cash position compared to prior year, where we added around exactly this EUR 10 million, what we now have in addition based on the good operational cash flow generation. Finally, on that slide, the net debt leverage is on a very healthy level with 1.2. So even in those challenging times, we were able to reduce it once again to that level.

Now going more in those details by segments, and this is just an overview slide showing here the 3 operational segments, the pharmaceutical supply, the patient-specific therapies and the business international, all of them, as I already said, are contributing to good sales development. But on the EBITDA pre margin, we were able to increase the total number on the pharmaceutical supplies on the other side, and there we will come on that in the next couple of minutes.

We saw some reduction in the segment of patient-specific therapies as well as on the international business. That's why I would say we jump directly in the next slides going exactly through the 3 of these operational segments and starting with pharmaceutical supplies, our traded area. So here, we had some price effects on various products, which led to slightly lower gross margin. We have to say that. The medical cannabis on the other side, started obviously, a little bit later than planned, but we already see now with this postponement a little bit in the starting point, a quite good starting and a good market penetration, which is on track. This also makes us positive for the future. The same is for the sales of established originator products with an exclusive distribution rights. For example, we have some products here with Novartis and also that is helping us.

Going on the PST, so the patient-specific therapies. So we see here an increase in the sales from EUR 56 million to EUR 60 million, which is, at the end, also the result of a good volume impact or at least around 4,000, let's say, specific, let's say, therapies that we made in addition to the first -- more than compared to the prior year to the first quarter. But on the other side, we see a reduction on the EBITDA from -- coming from EUR 6.3 million last year now to EUR 5.4 million and a margin of 8.9%, which is obviously not satisfying and activities to be done.

To bring you here more transparency on that slide is on this area because that is obviously something we have to work and we already started with some cost optimization programs and bringing back this area to the higher profitability that we saw last year. So starting from the EBITDA pre on Q1 2025 with EUR 6.3 million. I just wanted to guide you a little bit through the walk to the EUR 5.4 million what we see now in this first quarter. There is a positive volume impact, which is great of about EUR 0.5 million. But this is completely covered or, let's say, eaten up by this drug price regulation, which has a negative impact on the margin, where we have to say we're not able yet to compensate that completely with our suppliers and with our own operations. So that is a step where we have to go in there.

In addition, we see an increase in our personnel costs due to higher employees. Part of that can be explained by higher volume. But here, efficiency gains to come, and that is what we will work on. The increase of the personnel cost is in brackets just EUR 0.2 million. This is a salaries adjustment in Germany of about -- of around 2%, more or less, if we take the increase of last year and what is coming this year because that is mainly German focused business. And on the other side, we have to say also some increase in other costs, mainly logistics, but also some maintenance of our laboratory activities were on that level responsible for additional costs, followed by some onetime effects that we had to accept for the first quarter of another EUR 0.2 million. Finally, the growth effect is the growth is in line. That is great. We have and we will focus on cost structure, cost optimization to recover and get back to the profitability that we had historically in that segment of Medios Group.

Continuing with the international business. So the revenue is going up, but the EBITDA pre margin here is if we take the adjustment of the sale of the pharmacy, which is not made in these numbers, these numbers are always including these specific topics. But if we take that out, we would be more or less on the level of prior year profitability. What does that mean in numbers? The Q1 last year was about EUR 40 million, and we were able to increase that to around EUR 43 million in total revenue. So I think also here, a very good year-on-year growth of 8.5%, which is for sure, and you might have the question why this on the one side, is growing compared to Q1, but on the other side, it's lower than Q4. But there, obviously, there is also the seasonality and also some other onetime issues on pricing in there, which has a specific impact on the Q4, which is obviously always for the international business, a very strong one.

So therefore, we cannot compare here this like an apple-for-apple comparison. But Q1 last year and Q1 this year, a good increase of 8.5%. And don't -- when you're just calculating the numbers increase by 3% from the 40, the year-over-year growth, the 8.5% is the real number and not a lower number because we are calculating that on the real total numbers of sales. And if you come to other growth rates, this is then rounding.

Going to the EBITDA pre numbers, EBITDA pre goes down by 13.5%. So on that perspective, that's also not a good sign that we show here. That is for sure. On the other side, if you deduct the -- from the EUR 7.3 million, what we saw here, the onetime positive impact of EUR 1.6 million of other operational earnings, which is at the end of the day, nothing else than sale of assets. And in this case, it was a sale of a pharmacy, which was of an amount of EUR 1.4 million out of that EUR 1.6 million total earnings. The EUR 1.4 million was the specific pharmacy. And as this is a onetime, obviously, and you take that out, then the logic is that we are quite close to what we also can see here in the Q1 of 2026.

But also here, you will see on the next slide, the bridge explaining where we are and what are the different impacts. So starting once again here with the EUR 7.3 million of last year for Q1, we also saw here or see here a very good volume growth. So this story is absolutely valid and in good shape. The organic growth is running with EUR 2.7 million positive impact. The other side is the EUR 1.6 million. This is this divestment and mainly out of this EUR 1.6 million, the sale of one pharmacy is part of that with EUR 1.4 million. So this is obviously an extraordinary effect that is not repetitive. And therefore, it's -- I think it's not so critical that this is a one-timer in that way.

We have temporarily higher material costs, mainly related to [ IV-syringes ]. So that is on the one side, negative. On the other side, also a good story is that we were able to optimize already here our supplies. And for the next quarters to come, we'll also see here some improvements. We saw wage increases in Netherlands. You have to know that there is, let's say, by law or by authorities, we have to accept a certain increase of the wages, which is higher in last year than -- this year than in Germany. It's around the 7%. So this is obviously the wage increase. And then as I already explained, with the patient individual therapies also here, we have some other cost increase, mainly transportation, but also some legal costs. And finally, also here some other expenses, which are mainly related to a timing issue within a year for IT maintenance issue and all this kind of stuff. So overall, there is work to do. There is a lot of optimization potential that we and the Board already decided to get -- to make that happen and to optimize our structures in the quarters to come.

Finally, just giving you an overview of our financing structure as it is on end of Q1 2026. So the syndicated loan, you know that is EUR 225 million, which consists of a term loan of EUR 125 million for 5 years with an annual redemption of EUR 25 million. The current value as of March 31 was about EUR 94 million. And in addition to that, we have a revolving credit facility, a so-called RCF of EUR 100 million, which is currently drawn or was drawn end of March by EUR 65 million on that perspective. The attractive covenant-based margin grid continues. So we have a net debt as of 31st of March this year of EUR 110 million, also knowing that we have a quite significant positive portion of cash and therefore, have a reduced level of the net debt ratio. With that, I hand over to Thomas back again and to go -- continue with the guidance. Thank you very much.

All right. It took me a little while. Thank you for your patience. I'm sure you perceived Stefan like I do. He's detail-oriented. I think it's okay. Many people helped me here to turn on my mic. He's a very detail-oriented powerful man, and it's great to have him on board.

Let's look at the guidance. And as you see, we keep the guidance, and we were not surprised by the first quarter. I think that's the reality. Some people said we are sandbagging on the guidance. I think that was not the case. We knew that we have a challenging first quarter in front of us, and that's what happened. We can stick with the guidance knowing that for the remainder of the year, we expect EUR 73 million EBITDA pre. That makes, if we do the math, like something like EUR 24.1 million every quarter, and that is quite a substantial target for our group. We are confident that we can do it.

We have the operational expenses. We look how we're going to reduce those expenses going forward so that we can deliver the profitability that we think the business needs and that is possible in the market. We have a strong market. We can grow the top line. We now need to show that we can also bring in a decent profitability, and that's the target the team has, and we take measures to achieve them.

On the next slide, I would like to show you a few of the initiatives that are happening at the same time as we make our numbers. And this one is a very dear one where we, again, want to see how we can create value for the ecosystem we are working in for doctors, pharmacies, Medios, for the entire ecosystem. How can we get the flow of information quick and efficient from the different players and get better planning into our interaction. And we do that together with connected consumables. That's a GmbH here in Germany, and we are -- see a substantial market opportunity there. We believe around 500 oncology practices in Germany are eligible for this software, and we could work better together with them. We're expecting to get some software licensing revenue. And most important, we believe that we can smoothen out the manufacturing and preparation of around 6,000 preparations per year and make life easier for everyone, so that information flows, planning happens early enough and we get a better system from end-to-end.

We will certify this product, this software with the regulatory bodies. We have prototypes already out there and people love the product. And we hope that we can have the commercial version released this year. The second piece of example is speaking to a secure supply in times of medical shortages. That's something where we think that we can deliver additional value for the pharmacies and the ecosystem and the patients. And this Dipyridamol capsules is one example. Our international business colleagues in the Netherlands took it up. They got it registered, and we are crunching out around 50,000 tablets a month right now and help patients who otherwise would not get the medicine they were on to stay on the same medicine without any interruption and conveniently covering this shortage in the market. That's something where we believe we are strong, and this example is another one of those. So thank you to the international team. And we are looking forward to continue this work to make sure that everybody gets the medicine they would like to get.

Another aspect is legislation. What is happening out there in terms of regulations. And on the next 2 slides, I would like to give you our interpretation of how we see that developing. Those are developments. They are not in our control. We try to influence them as good and as ever possible. But ultimately, those are assumptions. So the first one is this famous Hilfstaxe in Germany, that was what gave us the hit since November. We have it this year -- this quarter for the first time in full. And here, we're looking what could be coming next. And it's important to mention that the German Association of Pharmacists terminated their contractual agreement with the German Health Insurance Association. That happened end of March. And now the negotiations are ongoing.

We believe that this formal process will ultimately result in an agreement again. And until the agreement, it was agreed that all the pricing for the work that's done in the laboratory remains the same. We expect an outcome, and we believe that this outcome in 2026 will be about neutral for us. It might be that some of the medications get reimbursed a little less, but maybe you get some more for the work that is done in the laboratory because of this contractual termination. So let's see what's coming out there, but that's how we budget it. That's how we interpret what's happening.

Then the second aspect is the German pharmacy reform plan. And there, we don't see anything that has a significant impact on our business. So that's good news. I would say. And then there's a stabilization of mandatory health insurance costs. I think everybody, at least in Germany knows about those 66 individual proposals to cut costs. And there's one we believe has an impact on Medios potentially, and that's the cannabis one. There's the reimbursement for extracts is in this proposal, and that would help all seriously ill patients to get their medication. At the same time, the flowers are not in there. So that is a certain impact we see. We don't know how it will pan out, but we are actively looking at the situation as it develops.

Number four is the Health Security Act. And that's an initiative to make sure that the health system is also working in times of crisis. I think supply chain resilience is something people take much more serious than a couple of years back. And we, at Medios, we are seeing this early stage of development in the legislative process as an opportunity for us because we are certain that also in times of crisis with our volumes, with our infrastructure, we can help the system to be more resilient. And we will watch that, and we will also prepare ourselves to see how can we play there. But it's a little too early to say what's the specific impact on the business, but it's certainly something to watch.

And in the same category, I would say, is number 5, the EU directive that was debated in the European Parliament on the 18th of March. It is expected to be concluded after the summer break sometime in October. And then we expect those legislation to be integrated in national law in the second half of 2028. So you see that's kind of a long-term project. And if we go into the specifics, what we see in the proposal that's on the table that there is the necessary flexibility for patient-specific treatments. That means there are ways that compounding is allowed. And at the same time, the legislative body also tries to counter medical shortages with those initiatives for compounding, but also wants to avoid the creation of loopholes into how medicines get approved. And I think that's the area where we are strong. And we believe that overall, this is a net positive. We should get more harmonized legislation in Europe.

That's our read of the situation. And I think that's almost the last slide. It's exactly the same slide like I presented for the full year. I think we want to keep this push for recognizing potentials within the group and then lift them to make ourselves more profitable. We want to also do that in our manufacturing sites on a very structured base with operational excellence initiatives. I visited those sites. I spoke with the people. I think there's a hunger for improvements that come with operational excellence programs, but those programs, they take time. They need education. It is not a onetime overnight success. So give us a little time to see that -- making it work and have a positive impact.

We have seen the acceleration of organic growth. I think we have good organic growth in the business. We have the growth where we would like to have it. The question now is how can we make it profitable? And that's in the works. That's very important to all of us. And we want to remain diligent and cautious with M&A activities. They need to be value accretive, bolt-on acquisitions, and that is unchanged.

And that's my most preferred slide. I hope I can welcome all of you at our second Capital Markets Day for Medios. It will start with a dinner on the 28th of September in Breda, and then there's the visit of the Breda site on the 29th. And of course, we have presentations by the entire Executive Board and let you know how we see the company developing in person. I think it will be a highlight for all of us, and we would highly appreciate if you find the time in your busy agenda to join that.

Good morning, and welcome to our earnings call for the 2025 financial year. My name is Claudia Nickolaus and I'm Head of Investor and Public Relations and ESG at Medios. As a reminder, this conference will be recorded. [Operator Instructions].

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 Meier; 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 Medios'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 Medios 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 EUR 2 billion to EUR 2.1 billion. EBITDA pre, rose disproportionately by 17.8% to EUR 93.1 million.

Consequently, EBITDA pre margin rose from 4.2% to 4.5%. And it's especially rewarding to realize that all earnings figures, EBITDA, EBITDA pre, earnings per share, earnings per share as adjusted, grew disproportionately compared to the revenue. Revenue of EUR 2.1 billion and EBITDA pre of EUR 93.1 million were broadly in line with the '25 guidance.

In 2025, Medios prepared to enter the reimbursed medical cannabis market. We announced that, and we did that in Germany with an exclusive partnership with Bedrocan. 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 EUR 2 billion to EUR 2.12 billion, reflecting a growth of up to 2% and EBITDA pre is expected to be in the range of EUR 94 million to EUR 102 million. Again, a disproportional raise in the profitability with up to 9.6%, reflecting a margin of 4.8%. If you're looking at the quarter's development over the last 3 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 effects. But nevertheless, and I think that's very obvious, the overall trend remains unchanged. We see disproportional earnings growth going forward. Furthermore, and the key point, the earnings of Medios 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 9 now, we talk about our ESG highlights. And for everybody at Medios, 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 EUR 2 billion. Also, the EBITDA pre increased significantly and the EBITDA pre margin even improved to 4.5%. However, due to one-off effects in Q4, as 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 EUR 96 million.

The new business opportunities begin to materialize at the end of '25, but are expected to fully unfold in '26. Medios fiscal year figures for '25 were driven by first time full year consolidation of the Ceban Group acquired in June '24. As you know, in the previous year, Ceban only contributed to the group's result on a pro rata basis for 7 months. Consequently, the operational segment International Business still contributed in '25 significantly by inorganic growth. Besides this, pharmaceutical supply contributed with a solid organic growth in revenue and EBITDA pre.

Overall, revenue rose to EUR 2.08 billion from EUR 1.88 billion, which is an increase of 10.4%. Of this increase 63.2 million, 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 EUR 132.4 million corresponding to 7% is attributable to organic growth, mainly from PS segment.

The revenue increase of PST segment is mainly caused by the discontinuation of performance-based payments for increased compounding volumes in 2025 versus 2024. Gross profit of Medios Group improved significantly by EUR 49.1 million to EUR 203.7 million, an increase of 31.6%. This improvement is mainly due to the IB segment, which contributed EUR 77.4 million in gross profit, an increase of [ EUR 37 million ] of EUR 31.7 million inorganically, resulting from the just mentioned 12 versus 7 months effect and the income from divestments of smaller Ceban entities, mainly pharmacies in the amount of EUR 2.7 million.

Gross profit of PST segment rose by EUR 8.3 million to EUR 55.6 million, 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 EUR 6.2 million. Gross profit of PS segment increased again organically by EUR 4.3 million, reaching a gross profit margin of 3.8%, which is unchanged compared to previous year.

All of that together contributed to a higher Medios Group gross profit margin, which rose by 1.6 percentage points to 9.8%. Personnel costs rose by EUR 17.2 million to EUR 69.4 million. This rise was mainly attributable to the first-time full year consolidation of the Ceban Group as well as one-off expenses related to the change in the Executive Board in financial year '25 and a higher average number of employees compared to the previous year. Noncash expenses for stock option decreased from EUR 1.7 million to EUR 1.2 million.

Other operating expenses rose from EUR 39.5 million to EUR 50.2 million, an increase of EUR 10.7 million, thereof EUR 6.5 million attributable to the IB segment. In addition, other operating expenses increased year-on-year, mainly because of higher IT costs, EUR 4.3 million, thereof EUR 2.4 million increase for one-off costs for the implementation of an ERP system, which we adjust under EBITDA pre. The EBITDA pre increased by 17.8% to EUR 93.1 million.

The EBITDA pre margin thus improved by -- thus improved to 4.5% compared to 4.2% in the previous period. This was supported by 2 factors. The EBITDA 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 EUR 9 million compared to EUR 16 million last year. These adjustments consist of EUR 5.1 million for ERP system implementation, EUR 1.5 million one-offs related to changes in the Executive Board, EUR 1.2 million other M&A expenses and EUR 1.2 million for expenses for stock options.

The decline in overall adjustment is mainly attributable to the discontinuation of performance-based payments for increased compounding volumes and lower M&A expenses compared to previous year. Depreciation and amortization increased by EUR 6.6 million to EUR 37.9 million, a significant portion of this increase EUR 6.9 million is attributable to the IB segment and mainly results from the full year consolidation of the Ceban Group in '25.

The financial result decreased by EUR 8.5 million to minus EUR 18.3 million, mainly driven by extraordinary financial expenses of EUR 9.2 million 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 Ceban Group.

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 Ceban Group against the [ term ] loan facility in November '24. The tax expenses rose from EUR 9.3 million to EUR 12.5 million due to higher earnings before tax. The tax rate remains due to nontax deductible financial expenses from the revaluation of NCI liabilities still high as in the previous year, where nontax deductible financing costs and M&A costs increased the tax ratio as well. Especially the one-off 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 EUR 15.4 million in 2025.

Accordingly, earnings per share rose from EUR 0.51 to EUR 0.61, an increase of 19.6%. Adjusted EPS increased to EUR 1 -- EUR 1.94, sorry, compared to EUR 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 noncontrolling interest liabilities as well as corresponding tax expense adjustment.

Operating cash flow was within the expected range and amounted to EUR 52.3 million versus EUR 73.7 million for fiscal year '24. This increase was despite a higher operating result, mainly attributable to the net working capital due to higher trade receivables in the PS segment at the balance sheet date and higher tax payments in 2025.

Free cash flow reached EUR 44 million and was thus largely within the estimated free cash flow range as communicated in the past of EUR 40 million to EUR 50 million. The investing cash flow of minus EUR 4.0 million mainly reflects CapEx of minus EUR 8.3 million, subsequently accrued purchase price payment for the acquisition of Ceban in the amount of EUR 2.3 million as well as cash inflows of EUR 5.9 million from the disposal of fixed assets and the sale of pharmacies in the IB segment.

Financing cash flow of minus EUR 72.6 million mainly reflects the scheduled repayment of the term loan in the amount of EUR 25 million, net repayment of the RCF loan of EUR 20 million in '25 and cash outflows from interest payments, EUR 10 million and EUR 12.6 million 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 EUR 81.8 million 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 growth amounted to EUR 63.2 million or 3.4% fully dedicated to the IB segment Organically, revenue increased by EUR 132.4 million or 7%, resulting from all operational segments, but mainly from segment Pharmaceutical supply.

Slide 10 shows the organic and inorganic EBITDA pre breakdown by segment. EBITDA pre increased inorganically by EUR 12 million or 15.1%, fully dedicated to IB segment.

Organically, EBITDA pre increased by EUR 2.1 million 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 onetime higher personnel costs, e.g. to severance pay and onetime higher other operating expenses mainly to maintenance and repair.

EBITDA pre for the Internal Service segment fell to minus EUR 10.8 million from minus EUR 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 months 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 IB segment and to a lower extent by PST.

The external revenue of the PS segment strongly increased by 6.9% to EUR 1.69 billion. PST segment contributed EUR 220.1 million, an increase of EUR 6.5 million, plus 3%, of which EUR 6.2 million are attributable to the elimination of performance-related expenses for the acquisition of compounding volumes. The IB segment contributed EUR 169.2 million external revenue in '25, which is an increase of EUR 80.4 million thereof EUR 63.2 million inorganically.

EBITDA pre for the PS segment amounted to EUR 52.5 million, a plus of 5.1%. EBITDA of the PST segment reached EUR 22.2 million, a minus of 4.6% due to the already mentioned onetime higher personnel and other operating expenses as just stated. IB contributed EUR 29.1 million EBITDA pre thereof EUR 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 Medios was replaced by a syndicate loan facility with 2 tranches in the total amount of EUR 225 million. There is net debt amounted to around EUR 120 million as of 31st December '25, leading to an attractive leverage ratio of 1.3. An estimated annual free cash flow of around EUR 40 million to EUR 50 million will enable Medios to continue repaying the term loan, cover interest payments and, of course, finance further growth.

At the end of the reporting period, the total loan amount drawn under the syndicated loan agreement amounted to EUR 155 million, consisting of EUR 100 million under the term facility and EUR 55 million under the RCF.

Let's go to Slide 14, providing our guidance for the full year '26 for the Medios Group. Our guidance parameters are again revenue and EBITDA pre. For '26, we expect revenues to reach the range up to EUR 2.12 billion, reflecting growth of up to 2%. EBITDA pre is expected to be in the range of EUR 94 million to EUR 102 million, a disproportionate rise up to 9.6%. Taking into consideration the middle of the EBITDA pre guidance corridor, organic EBITDA pre growth 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 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 Medios 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 the whole Medios team for your support and trust in the past.

And I here hand over to Thomas. Thank you.

Thank you, Falk. That was a concentrated piece of numbers and as always, very precise and eloquently delivered. Thank you very much.

As I started at Medios, the question is in the room, what is Medios doing? People ask me what exactly is it that Medios does? And I tried to put 2 slides together where I would like to talk about the market system as I see it, which is based on some consultancy that worked on it. And then internally, we added some specifics and flavors. And as such, we operate in a market system along the value chain. I see commercial products from the very start, they're partially going directly into the dispensing channel.

And then there are individual steps. You see that at the top of this list that go from wholesale into compounding, into logistics, into the dispensing being at the hospital, the physicians, pharmacies, clinics, you name it. And as this value chain is somewhat fragmented in individual unit operations, one must also understand that this is an abstractation and it's way too simple. It is more complex, and we're trying to figure out our ranges of operation wherever they fit best and where we can deliver the most value.

But at the bottom of the slide, we highlighted in any case, where we are currently active. And what we call pharmaceutical supply is covering the wholesale and compounding aspect. And there is a somewhat vertical integration in such that some of the drug products are compounded for patient-specific needs or some API is getting delivered out into the compounding area where we use it to make the patient-specific or compounded product that then is going into the logistics and getting dispensed wherever it is needed.

Our international business covers, again, wholesale and compounding with a very firm and very, very nicely carved out compounding footprint that also delivers a nice profitability. In the dispensing segment of this value chain, we have currently 20 community pharmacies that were part of the acquisition in the Netherlands. So this is the big picture, how I see that Medios is operating and the market is working to serve the patients.

And now on this slide, we even deliver you numbers. And again, be mindful about those numbers. I want to talk about numbers, but we also need to see that, for example, I pick a number, if we say the compounding market is EUR 30 billion, that does not mean that our addressable market is close to that number because right now, a large part of this market is not addressable for Medios for various reasons, being regulatory reasons that are individually and different from country to country, being it that we are not active in the entire Europe market. So we are in a smaller segment of this compounding market, and we make sure that we deliver the most value in the market we are active. But we are firmly nested in this combination of wholesale compounding.

And we believe looking at the market CAGR that is here estimated to be between 5% to 15% for compounding and a healthy profitability estimated around 10% to 20%, that this is an area we would like to continue to grow, and we are focusing our operations, our network that we can do that even better for our partners and customers going forward.

The wholesale business, we make sure that we continue to do it successfully on a specialty base where we believe and this 5% is a little bit moved that we can achieve a profitability hopefully in the range of 3% to 5%. And I think that is the picture how we see it right now.

And when we continue on the next page, I would like to highlight some of the activities that Medios did in 2025 to achieve a good positioning in this value chain and also experiment and try to gain additional value propositions that help the profitability. And one proof of concept is shown here Simbrinza, a well-established drug for eye drops of Novartis. We were able to partner with Novartis and are now in Pharmazeutischer Unternehmer, in German, a pharmaceutical entrepreneur. That means our name is on those boxes.

Cranach Pharma will be visible in the pharmacies, and we are using our distribution channels in addition to the wholesale for for bringing those drugs into the pharmacies and all under the idea, as I mentioned before, that Medios wants to be an important piece of securing that drugs are available for patients.

Here, a well-established brand that Novartis says, "well, it is better in your hands, you give it more attention and customers will find the drug they need, they like. " Going forward, we trust you, Medios to do this well. And I think we have proven that we are the right partner. We did all the regulatory necessary improvements in Cranach Pharma in Hamburg. We got inspected by the authority, and we got approved to be a pharmaceutical Unternehmer entrepreneur going forward. Something to watch, not a massive revenue contribution in 2026 to be expected, but as a proof of concept, something we wanted to try out and the team really delivered in 2025. And so we are up and running. We are happy with the results we have seen so far, and we want to continue this avenue for our pharmacy supply PS business.

On this side, a very beautiful example from the international business part. I said we are in the business to keep medicines on the market. And sometimes, as you know, if global supply chains are disrupted, there are shortages in the market. And we are on the watch to understand where shortages are happening. Our teams are connecting with the pharmaceutical companies and pharmaceutical companies typically have a certain visibility into the future. They know, "oh, a shortage could come up here, shortage could be there. " And we want to -- we learn that ourselves. We get our intelligence from the market, but also sometimes in collaboration with pharmaceutical companies, we prepare compounding for drugs we expect to go into shortages. This one is a histamine blocker that helps with bouts of where you might be itchy. And so they are necessary medicines and we are happy that we can deliver those whereas the shortage is happening in the market, and we are selling current volume 65,000 tablets a month.

So a big thank you to our international business to the Medios team to help people having the medicine they like and not being affected by the shortage.

Falk told us that he's going to leave the company. So it's important for me, and it's very good news that we can announce that with Stefan Bauerreis, we could gain a very experienced hand for our financial team. He will start mid of April, and he brings a very strong backpack of experience in international leadership in publicly traded companies at the German stock market. He was the CFO of Stabilus for several years. And before that, he was decades with Schaeffler Group as CFO, Europe and Germany at the end of his tenure there.

He has a vast experience in corporate accounting, controlling, financing and transformation of management team. So we feel privileged and blessed that he will start in a month, even a bit shorter and help us to continue our way of transformation and increasing profitability at Medios and make sure that we are matching the opportunities that are out there.

And lastly, a few words before we go in question and answers. If a new CEO comes in, if a new team is building, of course, we're going to look at the business. We're going to look where we want to put our focus, and we want to make sure that we have all the capabilities we need to act swiftly and focus to achieve results. We are doing this exercise as we talk, and we will present tangible targets.

We will present a read on where we want to position the vision and mission of Medios at our Capital Markets Day in fall. And until then, we're going to make sure that we act as one team. We want to harmonize business and planning processes for compounding and pharmacy supply at first, and we will do that using modern tools, modern processes. And the core and centerpiece of that transparency, data-driven work is our ERP backbone that will be updated to SAP (S4HANA) will be our knowledge backbone of the company going forward. The rollout is in preparation.

We remain committed that Medios Pharma will be up and running very shortly. And this will help us to get better insight and hopefully result in faster decisions and progress. Another thing I would highlight after 54 days or during my 54th day is -- and I think it's not a new statement, we're going to optimize our network. And we want to do that on a solid plan, a solid plan that covers the entire group, and we're going to call this capital master planning, and that plan is already worked on, and we're going to accelerate the formation of the plan and the execution according to this plan.

I think there's value in this, and I will put down some of my energy together with the top team that this is a priority for the entire group. Similar is business integration. We talked about the SAP project. That is, of course, now the mission-critical project for the entire organization. We're going to focus our energy on that one. But at the same time, we already know that we need to reassess our digitalization road map to make sure again that we have focus and we can execute quickly and swiftly towards that plan.

All this done to accelerate organic growth. We see good growth potential in the market, and we want to be sure that we can achieve that growth together and for our partners and customers and also think that a go-to-market strategy to increase that group of partners and customers will help us achieving that organic growth.

Buy and build is an important and vital element of what we're going to do going forward. It has always been part of the Medios success story. And we want to keep it that way. We want to be very disciplined in what we are doing, but we're going to have value-accretive bolt-on acquisition, I believe, going forward. But of course, we can't let them -- can't let you know before this happened for obvious reasons.

And with that, I think I have one more good news on the next slide, and then we are ready for question and answers. And the good news is we're going to have a Capital Markets Day in Breda, the Netherlands. That's at our Ceban unit. And the date shifted slightly. It's going to be on the 29th. I informed some of you that it's going to be the 30th. So please mark your calendar. It moved 1 day earlier. It's on the 29th. We're going to have a pre-dinner on the 28th, and I hope you will join us. I look forward to that. I look forward to interact with you in person. And hopefully, you find time in your busy schedule.

Ladies and gentlemen, welcome to the earnings call of Medios AG for the first 9 months of 2025. At our customers' request, this conference will be recorded. [Operator Instructions]

May I now hand you over to Claudia Nickolaus, Head of Investor and Public Relations and ESG Communications at Medios. Please go ahead.

Welcome, everybody, to our earnings call for the first 9 months of 2025. 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 Gaertner; and our CFO, Falk Neukirch. Matthias will start with an executive summary, followed by Falk, who will then provide details on the financials of the first 9 months and the guidance for 2025. After the presentation, we will begin the Q&A session. I would now like to hand over to Matthias.

Okay. Thank you, Claudia. Ladies and gentlemen, welcome to our conference call for the first 9 months of '25.

We continue to see solid growth, which is reflected in strong financials for the first 9 months of '25. We posted record revenues for the third quarter as well as for the first 9 months of '25, driven by organic and inorganic growth.

With Thomas Meier, we could announce our new CEO as of February '26. I'm very confident that he, together with my Executive Board colleagues and the entire team of Medios, will lead our company into the next decade of growth, success and market leadership.

Back to the highlights and achievements in the first 9 months of '25 on Slide 3. We had a very good year so far, and I'm proud of the progress we made. Again, we posted very solid financials. Revenue grew by 9.2% to EUR 1.5 billion. All segments contributed to revenue and earnings growth, meaning both organic and inorganic.

EBITDA pre rose disproportionately by 26.1% to EUR 70.4 million. Consequently, EBITDA pre margin rose from 4.0% to 4.6%. I would especially like to highlight the solid organic earnings growth of 5.1%. This is in line with our guidance assumption of organic growth in the mid-single-digit percentage range.

Furthermore, EPS increased by 84% to EUR 0.79 and EPS adjusted grew by almost 26% to EUR 1.5.

Also, the operating cash flow was strong, up over 90% compared to last year. All in all, we have once again succeeded in our ambition to increase our overall profitability. This confirms the operational strength of our company and our strategy, which is focused on increasing margins while maintaining growth.

Based on these results, we fully confirm our guidance for the year '25. Falk will provide more insight into the financials later.

Our international activities strongly support our European platform and make us a leading player in the specialty pharma compounding in Europe. This network is an excellent basis for our further international expansion, the realization of synergies and cross-selling opportunities. Furthermore, it will support the development of our activities in the field of advanced therapies, the future of individualized medicine.

As outlined at our last earnings call, we successfully conducted a share buyback of 1 million Medios shares, representing 3.92% of our current share capital.

Another good news was that since October 16, we are back in the SDAX. Also in October, we welcomed Janus Henderson Group as a new major shareholder in Medios with a stake of around 6.4%. They bought all the shares from Bencis Capital. And since November 4, we have a new analyst coverage by Montega with a buy recommendation and a target price of EUR 24.

Slide 4 shows the quarter-on-quarter development of our 2 KPIs, revenue and EBITDA pre. There are fluctuations between the various quarters. In '23 and '24, we saw very strong third quarters due to the special effects, the inflation-related price increases. Even without this effect, Q3 '25 revenue was on a record level. EBITDA pre, however, was slightly below Q3 '24. Falk will come back to this later.

Now the same illustration for the first 9 months shown on Slide 5, whereas revenue for the first 9 months '25 increased by 9.2%, EBITDA pre grew even stronger by more than 26% compared to the first 9 months of '24. As already mentioned, this is in line with our strategy to further focus on profitability.

Let's move to Slide 6 with some comments on our activities in the field of advanced therapies. We are establishing a stronger presence in this new field of activities that is predicted to reach a double-digit growth rate in the future. Currently, our focus is on the subfield of personalized cancer vaccines. These vaccines have the potential to replace conventional cancer therapies and even to cure cancer. Manufacturing these new vaccines require high expertise in the area of small-scale fill and finish. This expertise already exists within the Medios networks.

Before I hand over to Falk, I would like to thank everyone who participated in the perception study conducted in September. We received valuable feedback that we will consider, in particular, with regards to our Investor Relations work. This is all for now from my side.

Now Falk will provide more details on the financials for the first 9 months of '25 and the guidance for '25.

Thank you, Matthias. Welcome also from my side. I will give you a more detailed overview on the financials for the first 9 months of '25.

You can, of course, find the full financial statement on our website. Let's go to Slide 8. All in all, we had a strong first 9 months in '25. Revenues rose by EUR 129.5 million to EUR 1.53 billion, which is an increase of 9.2%. Of this increase, EUR 65.3 million, 4.7% are attributable to inorganic growth of segment IB. The inorganic growth mainly comprises the 9 versus 4 months effect as Ceban was initially consolidated as of June '24. The rest, an amount of EUR 64.2 million, 4.5% is attributable to organic growth, thereof EUR 48.3 million to PS segment, EUR 4.5 million to PST and EUR 11.6 million to IB segment.

Gross profit of Medios Group improved significantly by EUR 44.3 million to EUR 151.5 million, an increase by 41.3%. This improvement is mainly due to segment IB, which contributed EUR 34.4 million gross profit, thereof, due to inorganic growth approximately EUR 32 million. Besides the 9 versus 4 months effect as the income from divestments of smaller Ceban entities, mainly pharmacies in the amount of EUR 2.1 million contributed to the inorganic growth.

Gross profit of PST segment rose by EUR 7.5 million to EUR 42.2 million due to organic revenue growth, a better product mix, but also the elimination of performance-based payments for compounding orders in the amount of EUR 4.8 million.

Gross profit of PS segment increased again organically by EUR 2.8 million, with a gross profit margin of 3.8%, which is unchanged compared to previous year.

All of this contributed to a higher Medios Group gross profit margin, which rose by 2 percentage points to 9.9%.

Personnel costs rose by EUR 15.9 million to EUR 51.7 million. The essential part of the increase amounting to EUR 13.2 million is attributable to the IB segment fully caused by inorganic effects because of the initial consolidation of Ceban in June '24. In addition, an amount of EUR 1 million is caused by modest personnel cost increases in PS and PST. Segment services personnel costs increased by EUR 1.7 million, thereof EUR 1.2 million attributable to changes in the Executive Board.

Noncash expenses for stock options amounted to EUR 0.6 million versus EUR 1.1 million in the previous year.

Other operating expenses rose from EUR 27.4 million to EUR 36.2 million, an increase of EUR 8.8 million, thereof EUR 7.7 million attributable to the IB segment, of which approximately EUR 7 million have an inorganic character because of the initial consolidation of Ceban in June '24.

The EBITDA pre increased to EUR 70.4 million compared to EUR 55.8 million in the previous year. The EBITDA pre margin increased to 4.6% compared to 4% in the previous year. This was supported by an EBITDA contribution of segment IB with higher EBITDA margins and the organic growth of PS and PST also focusing on higher-margin products.

EBITDA pre was adjusted by extraordinary expenses in the amount of EUR 6.7 million compared to EUR 11.7 million last year. These expenses consist of EUR 3.8 million for ERP system implementation, EUR 1.4 million one-offs related to changes in the Executive Board, EUR 0.9 million other M&A expenses and EUR 0.6 million expenses for stock options. The decline in overall adjustments is mainly attributable to the discontinuation of performance-based payments for increased compounding volumes and lower M&A expenses compared to previous year when Ceban was acquired.

Depreciation and amortization increased significantly by EUR 6.6 million to EUR 28.4 million, largely due to the acquisition of the Ceban Group. Of the total amount for depreciation and amortization, EUR 18.2 million are attributable to the amortization of customer base, EUR 4 million are attributable to lease assets and the remaining amount of almost EUR 6.2 million belongs to operational depreciation. The financial result of minus EUR 7.3 million decreased by EUR 1.4 million, mainly due to higher interest expenses for the syndicated loan.

The tax expenses rose from EUR 6 million to EUR 8 million, reflecting a tax rate of 29.7% compared to 36.2% in the previous year. The tax rate in the previous year was impacted by nontax deductible expenses for M&A activities.

Due to the strong performance of all operational segments and the expanded consolidation scope plus the described reduction in extraordinary expenses, the net result almost doubled to EUR 19.9 million. Also, depreciation, amortization and financing costs increased significantly.

So earnings per share rose from EUR 0.43 to EUR 0.79, an increase of 84%. The adjusted earnings per share increased to EUR 1.50 compared to EUR 1.19 last year. This figure is based on the net results after tax adjusted for extraordinary expenses, PPA depreciation and amortization as well as corresponding tax expense adjustments.

Operating cash flow rose significantly by 91.1%, now amounting to EUR 52.7 million. This has been achieved by an increased cash-generating operational performance and lower tax payments. Due to the very good operational cash flow, also the free cash flow of EUR 48 million almost doubled compared to last year. Please note that quarterly fluctuations in the operating cash flow are by no means unusual as has been the case in the past.

The investing cash flow of minus EUR 2.3 million mainly reflects CapEx of minus EUR 4.7 million and subsequent accrued purchase price payments for the acquisition of Ceban of minus EUR 2.3 million as well as cash inflows of EUR 3.4 million from divestments mainly due to the sale of smaller pharmacies in the Netherlands.

Financing cash flow of minus EUR 63 million, primarily resulted from scheduled term loan repayments of EUR 18.8 million and net repayments of the RCF of EUR 20 million. Interest payments for loans, EUR 6.4 million and payments for lease liabilities, EUR 3.8 million and the repurchase of treasury shares of EUR 12.6 million. For more details on the repurchase of shares, you will find a summary in the appendix of this presentation.

Cash and cash equivalents amounted to EUR 93.4 million at the end of the reporting period. The equity ratio was nearly unchanged at 55.2% at the end of September '25 compared to 54.6% on December 31, 2024.

On Slides 9 and 10, we have provided again a breakdown of the organic and inorganic growth. Slide 9 shows that inorganic revenue growth amounted to EUR 65.3 million or 4.7% fully dedicated to IB segment.

Organically, revenue increased by EUR 64.2 million or 4.5%, resulting from operational segments -- from all operational segments, but mainly from segment PS.

Slide 10 shows the organic and inorganic EBITDA pre breakdown by segment. EBITDA pre increased inorganically by EUR 11.7 million or 21%, fully dedicated to IB segment. All 3 operational segments have delivered organic earnings growth. The EBITDA pre development in segment services reflects mainly intensified activities for the new strategic segment, Advanced Therapies, but also increased Board remuneration.

Let's go to Slide 11, providing the 9 months overview of all segments compared to the previous year. As already mentioned, the 9.2% increase in group revenue is mainly driven by IB and to a lower extent, by PS and PST. The external revenue of PS segment increased by 4.1% to EUR 1.24 billion and revenue of PST segment by 2.7% to EUR 166 million. The IB segment contributed EUR 124.2 million external revenues for the [ first 9 months of '25 ], which is an increase of EUR 76.9 million, thereof EUR 65.3 million inorganically.

EBITDA pre for the PS segment amounted to EUR 38.8 million, a plus of 4.7% and for the PST segment to EUR 18.1 million, a plus of 8.4%. This organic earnings growth was boosted by a targeted focus on higher-margin sales. IB contributed with an EBITDA pre of EUR 22 million for the first 9 months of '25, thereof EUR 11.7 million inorganically and an EBITDA pre margin of 17.7%. EBITDA pre of IB segment includes an income of EUR 2.1 million from divestments.

Slide 12 provides status information on the recent financing structure. In November '25, the debt finance of Medios was replaced by a syndicated loan facility in the total amount of EUR 225 million, consisting of 2 tranches: a term loan facility of EUR 125 million with a term of 5 years. Repayment has started in March '25 and for the first 9 months '25, we repaid EUR 18.8 million and a revolving credit facility, RCF, of EUR 100 million, also with a term of 5 years. The RCF has a term extension option of up to 2 years and a step-up option for further EUR 50 million to finance future growth.

There is net debt amounted to around EUR 100 million at the end of September '25. That leads to a leverage ratio of approximately 1.1. An estimated free cash flow of EUR 40 million to EUR 50 million enables Medios to repay the term loan and to finance further growth.

At the end of the reporting period, the total loan amount drawn under syndicated loan agreement amounted to EUR 161.3 million, EUR 106.3 million under the term facility and EUR 55 million under the RCF facility.

Overall, we are confident about the business development for the fourth quarter and confirm our guidance for the full year '25 as shown on Slide 14. Our guidance parameters are revenue and EBITDA pre. For '25, we expect revenues to reach approximately EUR 2 billion, reflecting growth of around 6%. EBITDA pre is expected to grow by around 21.5% to around EUR 96 million. Organic growth should be in the middle -- in the mid-single-digit percentage range. Both parameters reflect an EBITDA pre margin of approximately 4.8%.

The EBITDA pre guidance is adjusted for extraordinary expenses like M&A-related costs, expenses for stock option programs and implementation costs for our ERP system and for one-off expenses due to the change in the Executive Board as explained before. Thank you for your attention.

I'll now hand over to Matthias.

Thank you, Falk. Dear investors and analysts, today is my last analyst call for Medios. After more than 10 years serving as CFO and CEO, I will be stepping down from the Management Board at the end of this year. It's been an unforgettable decade, truly the professional experience of my life. And I have to admit this isn't an easy step for me. There are so many things I'm grateful for and just as many that I will really miss.

It's been a privilege to work for so many years alongside some of the smartest and most talented colleagues in the specialty pharma sector and to build together with our entire team what Medios stands for today, Germany's leading specialty pharma company and one of the key players in Europe, a healthy solid growth business, ready to take on the challenges of the future.

Together with our [ 1,000 ] colleagues, we now produce more than 1 million individualized medicines every year across Europe. In doing so, we help ease the suffering of patients, slow or even stop the progression of diseases and in some cases, achieve complete cures. That is something I'm particularly proud of.

To everyone I have had the pleasure of working with over the past 10 years and especially to all of you on this call today, our valued investors and analysts, I want to say a sincere thank you. Thank you for your trust, your support and yes, also for your critical questions and comments. I've learned a lot from them, both professionally and personally. It has been an honor, and I truly appreciate it. But now it feels like the right moment to move on, to make room for new minds, new ideas and fresh energy.

I'm confident that my colleagues on the Management Board, Falk, Christoph and Constantijn, together with my successor, Thomas Meier and all of our 1,000 colleagues, will continue to do an outstanding job. I'm sure they will take Medios to the next level, making it an even more profitable and globally recognized leader in specialty pharma.

Thank you once again for your partnership, for your engagement and for being part of this incredible journey.