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.

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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 the 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 €527.6 million. EBITDA pre decreased to €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 €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 that price pressure was especially pronounced in Germany.

That was true for the wholesale business and the personal treatment business of Medios. We will look into those numbers in detail.

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. 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.

That's a good one. Overall, we have seen that the market is there.

We had healthy growth on the top line. 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.

The next good news is of course that we are convinced that we can confirm our guidance, the revenue in the range of €2 billion to €2.12 [billion?] , and EBITDA pre margin of €94 to €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 €485 million to €528 [million?] in the first quarter, year-over-year 8.--- 8.9% more revenue.

At the same time, the margin pressure, you compare €23.1 million for Q1 with the €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 one-time €1.4 million EBITDA in 2025 due to the sales of the pharmacies.

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.

We have plans there how we're going to manage this, and we believe it's possible. That's the bottom line.

We think it's going to get better. 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 warm welcome to this call to all the participants. Thomas, thank you for the very warm welcome, lovely to be to Medios Group.

During 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 €527.6 million, which is a total increase of 8.9% compared to the first quarter of prior year 2025.

In that perspective, we 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. 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 two segments, PPS and patient-specific therapies, there are some impacts on that, on the material consumption, what we then can see. Also having a look on material consumption, we will come on that later in that presentation.

EBITDA pre margin at 4%, this is below prior year, obviously nothing that we really like. Also that is for a certain part of that increased or influenced 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 the €1.4 million. The earnings per share is adjusted.

It's more or less on the level of prior year, I prefer showing more the adjusted one because this is then showed adjusted by all of these specific one-timers. Last year was €0.46, now we are at €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 a 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 that significantly. Therefore, we made in the operating activities the cash flow last year first quarter a €3.6 million positive, this year €12.5 million, which is obviously very much or is also supported by an effective working capital management.

That is also to be focused also in the months, in 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 with -€2.1 million.

We are more or less consist of the CapEx of €2.6 million, followed by some other small divestment and also interest received, which is then offset it by that. 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 RCF taking on the other side, interest payment, this is more or less equaling to zero. You might have then the question what we are doing with the good operating cash flow.

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

Now going more in details by segments, and this is just an overview slide showing here the three operational segment, the Pharmaceutical Supply, the Patient-Specific Therapies, and the business International. All of them, as I already said, are contributing to good sales development.

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 three of these operational segment and starting with Pharmaceutical Supplies, our traded area. 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 exclusive distribution rights. For example, we have some products here with Novartis, and also that is helping us.

Going on the PST, the Patient-Specific Therapies, we see here an increase in the sales from €56 to €60 million, which is at the end also the result of a good volume impact by at least around 4,000, let's say, specific therapies that we made in addition to the first more than compared to the prior year to the first quarter. On the other side, we see a reduction on the EBITDA coming from €6.3 million last year, now to €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 as 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. Starting from the EBITDA pre on Q1 2025 with 6.3, I just want to guide you a little bit through the walk to the 5.4 what we see now in this first quarter.

There is a positive volume impact, which is great, of about €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, we have to say, were not able yet to compensate that completely with our suppliers and with our own operations. 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 a €0.2 million. This is a salaries adjustment in Germany of around 2% more or less if we take the increase of last year and what is coming this year in because that is mainly German-focused business.

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 one-time effects that we had to accept for the first quarter of another €0.2 million. Finally, 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, 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 this numbers—these numbers are always including this 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 €40 million, and we were able to increase that to around €43 million in total revenue.

I think also here very good year-on-year growth of 8.5%, which is for sure, and you might have the question why it is on the one side is growing compared to Q1, but on the other side, it's lower than Q4. There, obviously, there is also seasonality and also some other one-time 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.

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%. Don't, when you're just calculating the numbers, increase by three 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.

If you come to other growth rates, this is then rounding. Going to the EBITDA pre numbers, EBITDA pre goes down by 13.5%.

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 from the €7.3 million what we saw here, the one-time positive impact of €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 €1.4 million out of that €1.6 [million] total earnings.

The 1.4 was the specific pharmacy. As this is a one-timer, obviously, and you take that out, then the logic is then we are quite close to what we also can see here in the Q1 of 2026.

Also here, you will see on the next slide the bridge explaining where we are and what are the different impacts. Starting once again here with the €7.3 million of last year Q1, we also saw here or see here a very good volume growth, this story is absolutely valid and in good shape.

The organic growth is running with €2.7 million positive impact. The other side is the 1.6, these are this disinvestment, and mainly out of this €1.6 million, the sale of one pharmacy is part of that with €1.4 million.

This is obviously an extraordinary effect that is not repetitive, and therefore, 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 eye rinses, 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 in this year than in Germany. It's around the 7%, this is obviously the wage increase.

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. Overall, there is work to do.

There is a lot of optimization potential that we in the board already decided 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.

The syndicated loan, that is €225 million, which consists of a term loan of 125 for five years with an annual redemption of €25 million. The current value as of March 31st was about €94 million.

In addition to that, we have a revolving credit facility, a so-called RCF of €100 million, which is currently drawn or was drawn end of March by €65 million on that perspective. The attractive covenant-based margin grid continues.

We have a net debt as of 31st of March this year of €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 continue with the guidance.

Thank you very much. All right,

took me a little while. Thank you for your patience.

I'm sure you you perceived Stefan like I do. He's a detail-oriented— I think it's okay.

Many people help me here to turn on my mic. He's a very detail-oriented, powerful man, and it's 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 that's the reality.

Some people said we were 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 that's what happened. We can stick with the guidance knowing that for the remainder of the year, we expect €73 million EBITDA pre.

That makes, if we do the math, like something like 24.1 million every quarter, and that is quite quite a substantial target for 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 as we make our numbers.

This one is a a very dear one where we again want to see how we can create value for the ecosystem we're 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?

We do that together with Connected Consumables. That's a GmbH here in in Germany, and we are see a substantial market opportunity there.

We believe around 500 oncology practice in Germany are applicable for this software, and we could work better together with them. We're expecting to get some software licensing revenue in, and most important, we believe that we can smooth 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.

This dipyridamole capsules is is one example. Our International business colleagues in the Netherlands took it up.

They got 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.

Thank you to the 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? On the next two 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. The first one is this famous Hilfstaxe in Germany that 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. 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.

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. There, we don't see anything that has a significant impact on our business.

That's good news, I would say. Then there's the stabilization of mandatory health insurance costs.

I think everybody, at least in Germany, knows about those 66 individual proposals to cost cuts costs, and there's one we believe has an impact on Medios potentially, and that's the cannabis one. There's the reimbursement for extract 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. 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.

That's a 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.

We will watch that, and we will also prepare ourselves to see how can we play there. It's a little too early to say what what's the specific impact on on the business, but it's certainly something to watch.

The in this the same category, I would say, is number five, 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, somewhere in October, and then we expect those legislation to be integrated in national law in the second half of 2028.

You see that's kind of a long-term project. If we go into the specifics, what we see in the proposal that that's on the table, that there is the necessary flexible 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. I think that's the area where we are strong, and we believe the overall this is a net positive.

We should get more harmonized legislation in Europe. That's our read of the of the situation.

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 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 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.

That is not a a a one-time overnight success, give us a little time to see that in making work and have a positive impact. We have seen the accelerate 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? That's in the works.

That's that's very important to all of us. We are want to remain diligent and cautious with M&A activities.

They need to be value-accretive, bolt-on acquisitions, and that that is unchanged. That's my most preferred slide.

I hope I can welcome all of you at our Cap- 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.

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.

We are at 31 minutes, and I think it's time for questions and answers, the most interesting part of this presentation. Thank you for your attention.

Hi, everyone. Thank you for taking my questions.

On the pricing pressure in the PST segment because of regulatory action in effect since November, could you give us a little bit more detail on where exactly that is coming from? Is it primarily oncology, or is it other parts of the segments as well?

Then secondly, you mentioned cost savings partially offsetting those price control headwinds since November. Could you give us more detail on where these savings are coming from?

Is it something structural? Should we be looking at more one-time savings in nature?

When do you expect them to be fully reflected in margins? Lastly, on the Hilfstaxe negotiations, you cite cytostatics as an example, but could other ingredients in your portfolio be caught by this as well?

What share of your German reimbursement volume is actually subject to these negotiations? Thank you.

Thank you very much for the question. It's an important question.

I understand what's happening with the pricing regulation, because we, of course, we are in a substantial way. The one that started in November was exactly a Hilfstaxe reduction, as you rightly mentioned, and it's in the similar mechanics like the one I explained on page 18.

It's the German Association of Pharmacists and Gesetzliche Krankenkassenverband, the GKV, that negotiate pricing on a very regular base. In this case, what happened in November, what's hitting us, is indeed cytostatics, and there we get less reimbursement for the pharmaceutical product we are using.

We have to deduct more and pay more for it and earn less money on it. That happened in November, and for us, it's always a little bit difficult to see where those are falling.

We are not directly part of those negotiation, but we get informed a little later. This is a substantial one.

Then the next one that we believe and see on the horizon is this negotiation about the hourly rates, the reimbursement of the work in the sterile room. We expect that this is the one that we're seeing on the horizon this year.

We don't see anything else, otherwise I would have mentioned to you that that's, of course, the case. The third one is which part of our business is covered by those price mechanisms.

It's the PST segment in Germany that's part of those negotiations. Different price mechanisms are at play in the International business that's mainly in the Netherlands and some API business in Belgium and Spain.

Those two slides is really what we know. Anything else, I don't know of, otherwise we would have let you know.

I hope this answers your question.

Perhaps I can add regarding the cost improvements. This is the other part of your question that you had.

At the end, it's not that we say, oh, we want to go now for a short-term, one-time cost reduction to just improve one quarter, and then we remain on the same level. It's a continuous optimization based on operational excellence in all different levels, which includes explicitly everything and all areas from admin to the laboratories to everything what we have there to continuously optimize our structure.

That is what we already have some good ideas how to handle that. On the other side, that is, as Thomas said, nothing that you can solve within a day.

That needs some time. There will be gradually some lower-hanging fruits that we will see there in a shorter period of time.

Others will take a little bit longer. At the end, we will see quarter by quarter a certain improvement out of those topics, but obviously also will be back-end loaded for the year 2026.

Okay. Then I think we can go to the next question.

Yes. Thanks for taking my questions.

Most of the questions have already been answered, but maybe one follow-up on the current regulatory environment. The slides you showed, if I take away correctly, you currently see no net negative effect from further ongoing discussions at the moment, is what you're seeing.

Then the second question would be on the divestment of further pharmacies in the Netherlands, if you maybe could give an update on that segment. Thanks.

Thank you very much for your question. That's pretty much how we see it on the regulation front.

We don't see substantial negative influence coming in addition to what we have to absorb since November 2025. At the same time, we are always aware that the tendency is that the compensation is getting a little less, and that's why it's so important that we are very prudent with our cost management and really find ways to improve how we interact, how we bring value to the ecosystem, like with the connected consumption initiative for a good software tool for oncologists.

That's how we deal with this situation. The second question was, what's about the pharmacies in the Netherlands?

The pharmacies in the Netherlands, as we mentioned previously, are subscale in our opinion, we are looking at how we're going to position that in the market and how we want to act there. It's nothing we can communicate today, but it's certainly an area where we're active and where we spend some time on.

As soon as something is happening, we, of course, will inform you.

Yes, thank you. The question is coming from Yannik Siering.

There are several questions. I would start with the first one.

The first quarter EBITDA pre margin came in at 4.0%, while the full-year '26 guidance midpoint implies approximately 4.8%. To deliver this, the remaining 9 months need to average roughly 5.1%.

Could you walk us through the phasing, specifically when do you expect operational excellence measures to translate into the EBITDA line, and how much improvement do you anticipate in the second quarter versus second half? I would propose to start with the first question, and then I come to the next one, because otherwise, it will be difficult.

I think this is a question for you, Stefan.

I can start with, no question. Numbers are correct.

We're starting with 4.0, want to go to the 4.8. How are we doing that?

On the one side, mentioned there are some one-timers in the first quarter 2026, unfortunately always negative one, which is reducing our margin in the first quarter. On the other side, the good thing on a one-timer is that this is solved.

We have there very good options already with those one-timers not coming up again. This is obviously one of those, let's call it low-hanging fruits, which will then should improve also Q2 in that year.

All the rest, to be honest, when we're talking about this real operational excellence topics and also some price negotiations, that the biggest portion of that will be back-end loaded and will come second half or even in the fourth quarter. We strongly believe that with all the measures and with a good discipline in cost, we will be able to make the 4.8% EBITDA pre margin, but once again, it will be back-end loaded for the second half of the year, major operational excellence improvements.

Thank you, Stefan. I will come now to the second question of Yannik.

The PST EBITDA pre bridge shows a positive volume contribution of around €0.5 million, offset by a roughly €0.5 million price impact plus several smaller cost items. When do you expect the cost-cut measures to fully offset the price adjustments, and what level of PST margin do you target for full-year '26, given the full-year '25 10% baseline?

Stefan.

Here we are, first of all, I I know that this is a very interesting question for all of you, wanting to know exactly what are the targets for the individual segments. On the other side, the guidance that we are providing to to to the public is always related to the full group, therefore, for sure, we are orienting also us on the the earnings we already were able to achieve in the last year.

Therefore, that is that is a I would say more than an orientation we want to get there, but on the other side, I please also understand us that we are not showing here and giving here clear guidance for the different segments. As we said, yes, if you have a look at the bridge—and I and and I'm very happy that that you checked that—is the the price reduction came in late in the year in 2025, it was in November if I call remember correctly.

For sure, it always takes a little bit time to compensate all those price reduction. That is not doable within a year within a month or within a quarter, sorry.

Within a year, it should be doable, but not within a a month or within a quarter. In in all the other topics that that we saw, there are also in that segment some some one-timers, there are also some maintenance topics, which the maintenance hopefully are only also a little bit seasonality that we can can switch, and the one-timers, they will not come back again.

For the year, we want to have it compensated.

Thank you. I don't see any more questions.

Mr. [unclear]?

No. In that case, we would end the call, and thank you very much for joining us for this conference call, and we look forward to speaking to you at upcoming investor conferences, or we'll hear each other on the first-half year results on August 12th 12th.

Thank you very much, and goodbye.

Bye-bye.