Good morning everybody, and welcome to the 9-months 2025 earnings call of FamiCord. As usual, this call takes place in a small group meeting here on Zoom.

Thank you for joining our session today again. We prepared a short presentation for you as an update on the Q3 financials and the business highlights during the quarter.

Following this, there will be a Q&A session. Please be reminded that, as usual, this call will be recorded, and the recording will be made available publicly after this call.

Now I'm handing you over to Jakub Baran, CEO of FamiCord, who will lead you through today's call. Jakub, please go ahead.

Good morning. Welcome to to our quarterly call, and I believe our results were pretty good, and we can shortly jump to to details.

I would not maybe read all the numbers, but just focus on on on financial highlight highlights. Our revenue grew visibly.

Our EBITDA reported EBITDA improved unproportionally better. Net profit is positive again.

What changed against last year, and that continues for this year entire year, is more clients choosing subscription model over prepayment model. That means that from cash flow perspective, we have worse result you might have expected, but that's on the short-term perspective.

In long-term perspective, this these clients will obviously pay us more in annual payments. We we did a few M&As, so that means our equity ratio improved in H1, but liquidity declined.

We also started a few quarters ago showing invoiced amount, which is probably important for for investors willing to better understand how IFRS rules are let's say, maybe applicable to to PB revenues. What is probably strategically one of the key aspects is growth of annual recurring payments by almost 7% to 17.3%.

Overall overall, three quarters were solid or very solid, and that is, I think, 10th quarter in the row we are improving our results. I'm I'm pretty happy with performance of the of the company.

Certain things changed; certain certain things are same. We we are living in the world of small number of newborns, and that will not change, yes.

It's it's all over Europe. It's the same in in developed countries in Asia, and I believe that that will continue at least for a while.

I already mentioned increased share of recurring revenues. What we see in terms of geography is that Eastern European countries are doing pretty well or very well.

Southern Europe depends, let's say, we have certain issues, and in in Central Europe, we have a mix of countries developing well, and and we we continue suffering in Germany. As mentioned also before, we increased our stakes in in Slovakian and and Czech companies to 95%, and I believe that was the only spot we we are not controlling in in Central East or Central Eastern Europe.

We believe these countries have potential of of growth, particularly Czech Republic. Slovakia is, due to number the the size of the country, it's maybe then not that promising.

However, however, Slovakia many years ago used to be one of the most developed markets in terms of cord blood banking thanks to very very strong local player who is now not so much active. Two two two important things from business perspective.

We we see certain improvement, visible improvement in CDMO activity. In in Q3, we signed three contracts worth more than 1 million in total, and and there are there are more prospects which we believe will materialize materialize in next year.

Revenue from these contracts obviously will come mostly with certain delay. It's natural for for B2B business.

We have to prepare certain things first before delivering products to to the clients. Interestingly, one of this clients is a German company which will start clinical trial in Germany, and I hope first application or a patient will be this week, tomorrow over the weekend.

If not, maybe that would that would come on on Monday or Tuesday. The samples are already in Leipzig at Fraunhofer.

We are we are cooperating with Fraunhofer. In terms of something which is very very old historical issue, Cryo-Save, our former competitor which bankrupted six years ago, we had we had several issues related with that.

We are not fully involved in in problems of Cryo-Save. We simply just took over the storage of of 300,000 samples belonging to 300,000 families.

We settled court cases we had in Poland, and that is an important message because we would be able to open communication with these families proposing them to sign storage agreement with us. What would be the financial income?

We we don't know. However, we believe strategically that may have certain positive only positive impact at at our revenues in in coming years.

We decided to maintain our guidelines in terms of revenue and EBITDA. Over after three quarters, you see that it there is a high likelihood we we will be in the rather in the top part of of our guidelines in terms particularly in terms of EBITDA.

As we know from the past, fourth quarter usually usually brings more more costs and is less a little bit less predictable than than the previous quarters. We we stayed rather conservative.

If only we would see that the results are are even better than guidelines, obviously we will notify the market, but at the moment is definitely premature. I think that that's a that that's everything in in a nutshell.

If you have any questions, obviously we are happy to answer. Maybe Ingo four four participants: Tomasz Fatz Ingo knows him, Tim knows him, Martin I don't know, Tomasz Tomasz is our CFO, maybe we should-- Good morning.

We have a small group here, it's a rather cozy happening. I would just like to ask you to unmute yourself and just ask your question.

Good morning everybody. Thanks for the update, Jakub.

Tim here. Just a few questions from my side.

Can you remind us, maybe this is for Tomasz actually, what the impact of the consolidation of the new entities was in Q3 in terms of EBITDA roughly? That would be interesting.

Then in terms of M&A activities, do you see anything else sort of on the horizon, any other targets or minorities you might want to take over? Then lastly, what's the status on the CAR-T wind-down?

Where are you with that program? You obviously reporting continued operations, seems you still have discontinued operations, maybe there a quick update would be helpful.

Thank you.

For Czech and Slovakia, I'm not fully aware of the detailed number, but Jakub, you might help me, for Q3, what we expect for Czech and Slovakia. It's consolidated since June this year, we have the first impact in Q3 for Czech and Slovakia.

I believe that for entire 20 2026, the impact will be in range of 400 to 500,000 sorry, 200, 200 to 250,000 euro. For

2025 or 2026? For

2025, 2025.

2025. Okay.

That's the sort of second half of the year?

It's a half a year, yeah, because we

Full-year effect would be 200 500,000, 400, 500,000?

Yes. That range, yes.

That depends, obviously, because we are now budgeting next year and there are several question marks whether we should invest more or rather stay conservative to understand better the market. I don't know.

Normally, with normal approach, that should bring us in that range of EBITDA. If we decide to invest, obviously there will be delay, yes, because first you invest, then you see the result.

What is interesting in Czech Republic, particularly, are very high prices there, because competition is very limited. It seems that the statistical client is a bit better.

Better, probably from upper class, rather than mid-class, which is our statistical clients across Europe, including Germany, yes? In Czech Republic, that product is offered to, let's say, the really top part of the society.

This is our understanding, yes. In Slovakia, it's like for most of the other countries.

We will see. That is the range, yes, anyway.

M&As, there are some targets, but not so many, honestly speaking. For that, we would need capital increase, yes, because we cannot afford it doing that from our credit lines.

Remember that we have some payments remaining for the transactions in Slovakia and Czech Republic this year. We have expected a closing of Novum transaction, signing was couple of weeks ago, right?

I don't think we can afford doing more. I would say there are maybe three, four, not more, left in Europe which are considerable.

That's another story. I would say that this is not a topic for the moment, not at all.

Maybe very important from an IR side to stress there is no transaction in preparation, this is very important.

That we can say. Obviously we are in touch, because that's industry super-niche, yeah.

We know each other very well with most of the owners or CEOs or boards, yeah, but at the moment, we don't expect anything coming soon.

Maybe have a quick follow-up on that. Do you have an idea of sort of EBITDA of these targets, the size, or the overall transaction?

Very different. We have one company where, for example, the founder is already 80 years old, he handed over the company to the son, and son is in renewable energy sector and he's not interested, yes.

Is that these clients are paying mostly annually. It's a very interesting topic because it's very easy to measure, that there is no risk.

The size is in range of half a million, 1 million for transaction, it's you may name it even risk-free, but that would mean we have to enter new country. I'm not sure we like to do that, is because that's an effort as well, right?

That's one transaction. Another is pretty big one is in range of 10 million.

Again, we don't have money. Why consider at the moment?

We stay in touch, obviously. We see certain synergies, but does not mean we would agree price, and it's simply premature.

I mentioned three, four, yes. There are some targets I would like to buy, but they are not on sale.

They are highly profitable.

Those are usually the best targets.

Obviously everything is on sale, but the price would be unproportionally high, so. There we mentioned several times the industry is continuing consolidation.

However, there are not so many targets which are really interesting, yeah. We are probably reached the moment the market is saturated in terms of new transactions, yes.

Maybe, as I said, three, four, not more, I don't expect. For CAR-T, we expect then November or December, we will drop below 20% of shareholding.

General assembly already happened of FamiCord Therapeutics, and at the moment, the company board is collecting interest from minority shareholders and from some new investors, mostly individual people. Interestingly, these are people from pharmaceutical companies, usually managers willing to invest.

Competitors, they are competing, see, as companies each other, but these are private investments, right? We expect that to be finalized in November and December.

Then we will continue as a you may name it financial investor a little bit with 20% stake, and as potential subcontractor, yes, in case the company continue research projects and they will need products. We will be providing them from By the way, our CDMO activity, we branded it BrambleBio, we are promoting BrambleBio, and so BrambleBio would be supplier for FamiCord Therapeutics.

I think that covers all

the three questions,

right? Right.

Thanks, Jakub.

Are there further questions for the moment?

I would have one question. Good morning, everyone.

Good morning, Niels.

Thank you very much for the presentation. You mentioned that you settled the dispute with Cryo-Save, and could you give us some light on the current process, where you are standing there in terms of invoicing, or that you basically invoice some of the samples from Switzerland?

What's the timeline around this? Thank you very much.

What I can say that we are communicating now with these families actively. We started in second week of October, it's pretty new.

We started from families who or which already left the updated contact data at our website, right? That is limited to roughly 20,000 families.

To remind, we store samples belonging to 300,000 families. 50,000 of them already signed with us, yes, 50,000.

20,000 is registered, and rest is a mix of clients of different portfolios of clients, yes, because some of these families actually are our clients because originally the companies we acquired over years used to cooperate with Cryo-Save in the past. By protecting Cryo-Save inventory, we also protected part of our own inventory, yes?

Still, we estimate that we should reach at least to 100,000 more families, right? That communication is under preparation.

The difference is that we, starting November end of November, we are not respecting prepayments done by those families to Cryo-Save. Before, we were somehow obliged to respect money they paid to Cryo-Save, yes, for storage of the samples.

It's not the case anymore, right? We will simply see what's the interest, real commercial interest in of these families to continue the storage.

Overall, we can only be let's say on the surplus here, because until now, we had limited revenues, right? Because obviously, as mentioned, we signed 50,000 contracts and these families, we sold some extra services like checking the samples, expansion of cells.

They were simply very interested in understanding the quality and so and so. We are not publicly sharing information about expected revenues from that group of clients because it's simply a bit unpredictable, yes?

I would say that Q1, Q2, we will have more information and then I believe that we can start sharing if we would only be able to say, yes, this is the number we can publicly confirm. What I can also say from the other hand, it is not a subject of ad hoc, yes?

That is a certain positive impact, but not that big, yes. You would be able to say what is the financial impact on the current results and future results.

Definitely positive. Over time, that is definitely super positive because the prepayment periods will be over, and from our perspective, from 40% to 70% of these families will continue storage.

Remember, Cryo-Save started in 2001 or 2000, and the highest number of clients they had in years 2009, 2012, yes? In three, four years, there will be a bulk of families which will have to decide whether continue storage or not, and we believe 40% to 70% of them will continue under one condition: we have to reach them.

After so many years, it's not that easy because obviously people are moving, they are changing email addresses, telephone numbers, and these contacts are not fully up to date.

Just one more question from my side, Jakub, for better understanding. You currently have 50,000 clients already,

and

the target to reach 100,000 clients or

In total, I believe 100,000 clients is possible, yes.

You want to double the current amount of

Yes. Yes, I think that we can say.

However, this is not that's a guess, that's not a forecast, yes, because we don't know why, and it's pretty psychological topic, yes, because we think that those families who were the most interested already signed. Yeah.

We don't know what would be the tail, let's say, of interest from the other families. Obviously, we know thousands of people are completely not aware that something happened to Cryo-Save.

Because if they did service in 2003, imagine, yes, you signed something so many years ago, you don't care, yes, you think everything is fine, and then you can discover new information. This is why it's a bit unpredictable.

One last question from my side, and really, if you invoice them on an annual basis, what average revenue do you expect for

We are charging roughly between €90 to €100 per year.

Thank you very much.

That's free of VAT, yes, because the families are signing with our Swiss entity.

Jakub, may I just have a quick follow-up on Niels' question? If I understand correctly from those 50,000 potential in brackets, yeah, sort of your estimate, 20,000 already left their data on or is that addition to the 20,000?

No, no, no, it's 50,000 families already signed.

I think you mentioned something of 20,000

20,000 is on top of this 50 which left updated data, but did not sign.

Exactly. Yeah.

Those would be within the 50,000 additional, but maybe a bit more easy because they've already been in contact,

left

their, etc. Okay.

Understood. Yeah.

Yeah. Then just maybe one final question from me, maybe a quick update on the placenta business?

Yes. Good news from Germany, we got the license, which we struggled to obtain for more than two years, I think.

Finally, we have it, and the next topic is a process of amending the agreements with clinics. We will not start offering that before we reach we estimate 100 clinics amended contracts because, we cannot just contract and then say the client you can't deliver, yes?

I hope that we would be able to go to the market with this product in Germany in Q3 next year. What would be the reaction of the market, it's difficult to say.

Overall experience is positive from all the countries what we mentioned several times. In none of the countries we started that, we saw negative reaction, only positive.

There is only a question mark how many clients will decide on this kind of product. The next country would be probably Portugal, yes, because that depends on the authorities a little bit.

That's great news. I think the order was the other way around before.

I think you always mentioned you think Portugal would be before Germany. Overall, this is good news, right?

Yes. Yes, yes.

We were negatively surprised first by German authorities; now we are positively surprised by German authorities. They did not raise more questions.

They are cautious, as said, because that is the first license of that type in Germany, yes? I think they were really, really cautious, asked several questions, and at certain moment, they stopped and they just told us, "You have the license."

Good. Good news.

May I add, Tim, even if you, as Jakub said, when we start in Q3 next year, there will be kind of ramp-up phase, you won't see that much revenue in the beginning, of course.

Mhm.

Yes, and it's natural. There's limitation by the number of hospitals.

I don't know whether we communicated that, but there are roughly 650 hospitals with deliveries in Germany at this moment in comparison to 750 which was 10 years ago roughly. They are consolidating.

Out of this 650 hospitals, we have roughly 90% coverage in terms of collection of cord blood, but for cord tissue, I think that we have roughly 70% of these hospitals covered with agreements. We expect similar situation for placenta.

There will be a fast growth in the very beginning with hospitals which are, let's say, easier to amend such a thing, and then that would gradually go up, but not that way, right? That will be like a jump, and then up, up, up, up like we continue with cord tissue, yes?

We like to have the same coverage like for cord blood. This is long process, because you have different authorities in Länder and they have different requirements.

In certain Länder, the authority has to approve the agreement with the hospital, so that is very, very slow process. Overall, it's a positive message because we see really how positively is reaction of the clients, but also midwives.

I think this is something which is very, very important because when you collect cord blood, some midwives are saying you should do it in the very last moment, enabling the fetal or the baby to get as much blood as possible. This is so-called delayed clamping.

That is done even to certain extreme. It went to certain extreme how much blood or how long that the baby could be connected with mother.

Some midwives may consider cord blood banking as a negative thing from fetal perspective. That has nothing to do with placenta, yes?

There is much more literature supporting placental cells are very, very interesting and rich in active substances which could be used for treatment. It is also more natural.

Tim, 10 years ago, if I would ask you on the street, "What is cord blood?" , you probably would have no clue, yes?

If I would ask you what is placenta, I would guess 99.9% of people are aware what is placenta. It's more natural, right?

We really believe that should bring us simply more margin overall, right?

Good. Thanks a lot, guys.

Thank you.

Thanks for the questions, Tim and Niels. Are there further questions for the moment?

I assume not, then we've reached the end of today's call. Thank you very much again for participating.

Should any further questions occur, then please just drop us a mail or call us. We're happy to assist you.

Then talk to you soon on our next call. Thank you very much.

Bye-bye. Thank you.

Thank you.