Hi again to this small round as usual in our earnings calls, and welcome to the full year 2025 earnings call of FamiCord. As usual, we've prepared a small presentation for you, just a couple of slides to get into the topic, and then I'll hand over to Jakub, and he will lead you through the presentation.

Afterwards, we have time for a Q&A, of course. Jakub, please go ahead.

Welcome, everyone. Maybe some others will join because we got some emails from investors interested, but who knows whether they would be able to join today's call.

We published our results as planned. The year was pretty good.

We delivered more or less what we expected. Revenue grew solidly by over 7%, earnings even more by 12.3%.

We had as usually a certain impact at net level related to goodwill impairment. What is worth noticing is that we noticed strong shift of our clients towards subscription services.

Much more of them are selecting yearly payment over those who decided to prepay for 5, 10, or 20, 18 years, depending on the option. What we also announced in our guidelines that we noticed second half of the fourth quarter sudden change in consumer behavior and then we became pretty cautious as that already continues in Q1 of 2026.

One important information, we decided not to continue supporting our CAR-T project and understood that we cannot afford investing more. We stay as a minority shareholder, but having less than 20% of the equity, and we are just a passive shareholder and we are not consolidating the results of that company which is called FamiCordTX or FamiCord Therapeutics, and that company is burning cash because it's typical R&D company.

We are living in pretty difficult environment that everybody knows, yes, which is rather getting more complex and complicated. There are less and less children, right?

Economy is really fragile. That overall uncertainty may have a strong impact on our potential clients' behavior.

It's also related with AI because I believe that certain industries might be under pressure in terms of maintaining jobs of people, particularly let's say younger clerks or simply employees of corporations which are at age of, let's say, 30, 35, and that is also part of our target group. We believe that impact of AI could be also responsible for the shift of interest in our services.

From the cost perspective, we believe we are trying at least trying doing our best to maintain the cost in order and we reduced let's say unnecessary spendings and also we decided to postpone unnecessary capex until having more clarity how the situation develops. That's it, I think, from the summary.

Maybe, Thomas, you can add something from your end.

Can you go one slide back just to see if we said something about financial stability and focus? We are taking care of costs about the development and it's also that we see maybe this year.

We are close monitoring our cash position as is on the first page in the summary. Equity ratio went down to 3.3%, which is pretty low, which is not in a dangerous situation for us, but it needs to be understood that it's mainly driven by impairment and also by extending our asset balance.

Therefore the equity ratio came down, but it's closely monitored and yeah, maybe from the financial side it's also something we might add to be aware of.

I did not comment on particular markets, right, because it's not that all the markets are doing the same or were doing the same. We see still continued growth in GCC despite the situation caused by a war between Israel, US, and Iran, right?

We see that our operations there are doing pretty well and that they are doing also pretty well in Q1, right, and April. A certain selected countries in Eastern Europe are also pretty resistant to potential issues we've seen in other markets.

It's not that everywhere we see a sudden drop of interest, but it's in majority of countries, but not in all of the countries, yes. One more comment, regarding this year, we decided to be really cautious.

The situation is really unclear and economic environment is influenced by let's say political decisions and distortions and the outcome is completely unclear which direction it will go. We all know that there will be no more children, that there is no magic solution to be implemented in a short term.

At least nobody invented that. Maybe Chinese will do something because they have even bigger troubles, maybe something new will come from Asia, who knows.

Taking all of that into consideration, we decided to issue that kind of forecast or guidelines showing revenues in range of 80 to 90 million for 2026 and group EBITDA in range of 9 to 11. I think that's it from my side.

If you have any questions, happy to answer.

Great, Jakub. Thank you.

I'd say as we have such a small round here, just please feel free to open your mic anytime and ask a question. Tim, yeah, as I saw.

Happy to take you first.

Thanks, Jens. It's understandable, I think, the outlook, right?

I was a bit disappointed or it comes at a timing where at least from the last reports you had to Q3 with placenta banking positive sort of momentum in Eastern Europe, at least in some countries. The overall impression is so much more muted, obviously, which then I'm pretty certain also led to those new impairments because the muted outlook obviously then results in another business outlook.

My question there would be, is this what you are already seeing, you mentioned this that you were seeing parts of this in Q1, right, that's led to this stance, but maybe you could just sort of outline where is it coming from? Is it more the overall contracts, pricing pressure, in what regions?

We just understand a bit more where your cautious sort of outlook is coming from, or is it more precaution than actually what you're seeing? Then, Thomas, probably then follow-up for you: monitoring your equity ratio is an interesting formulation.

Are you at levels where you have to take action? Your covenants for the banks, etc., that's all to be fine, right?

EBITDA is good. From my point of view, but please tell me if I'm wrong, it's more a cosmetic topic than an actual financial distress situation.

Maybe I will start and then Thomas will answer. We see something which is pretty unusual that consumer sentiment dropped in most of the countries.

In the past, it was like some countries were performing very well, sometimes some of them not so well, some of them were in average, blah blah blah. That was balancing.

That was more balanced. At the moment, is different.

We see drop of sentiment or interest in majority of the geographies. This is why we started to be really cautious because that is probably the first time in our history.

It has never happened before. As said, we are doing well in GCC, we are doing pretty well in Turkey, we are doing pretty well in Hungary, Romania, Poland is also not that bad, but some of these countries, although they are doing not that bad, they are doing below our expectations, yes.

That means that even the countries which we consider healthy are sometimes below what we would have expected. Whether there is one reason for that is unclear because we don't see, what you ask maybe, we don't see that much pressure for price, but the fact that more people are choosing subscription is an indicator that consumption power is smaller or people don't like to spend money.

Yes. We don't see that suddenly we should lower our prices by 20%, but the selection of given packages is also an indicator that price might be an issue, yes.

We don't see competitors being suddenly hyperactive or offering special prices or being somehow desperate. No, we don't see that.

I think it's overall market perspective rather than one action of one cause or one reason. We also mentioned in our letter that we should also adjust our marketing strategies due to AI and the way AI is now used and how the information is searched.

Older, let's say, digital communication was optimized for SEO, yeah, traditional search engines. Now we are simply optimizing that to be better visible by engines supported by LLMs, yes, by models, because they are providing information in different way, and also they are reading information in different way.

That will take us couple of quarters to adjust and adopt, yeah, to be better visible or to have higher or bigger efficiency of marketing campaigns. That's more or less the situation from the market perspective.

Obviously, there is one factor which we believe is rather positive after political changes in Hungary. A lot of money should flow from European Union to Hungary, yeah, we believe that that country would benefit, indirectly also some of our potential clients will benefit out of that.

It's a very good market, but it's not that big market overall. Whether as I mentioned, yeah, we don't see very negative impact of the conflict in Middle East at our operations there.

We are still growing, we are actually at record sales there. The question is only whether we can continue growth.

That we don't know, because that also depends on the political situation. We are not only operating in Emirates, we also have partners in Bahrain, Oman, Kuwait, in entire region.

Yes, and otherwise, I think that Thomas may comment on the banking side.

Thank you, Tim, for the question. Why did I mention the equity ratio?

To say it as a first step, it's not an issue of us, of course, because we have one financial covenant, which is net debt to EBITDA, it's not the equity ratio. For somebody who's not within our business, it sounds strange to see an equity ratio just of 3.3%, but if you understand our business as you do, it's mostly coming from our contract liabilities, enhanced balance sheet, plus the situation that we had some impairments last year, especially on FamiCord AG, our German entity, and our Portuguese subsidiary Stemlab.

Of course, we had some M&A activities last year, our debt position increased because was financed with cash and debt last year. Overall, that's why our equity ratio came down.

It's not worrying us, but we are taking care, of course. Especially since last year, our operating cash flow changed, since we have more subscription, which is good to have in the long run, sustainable development, but nevertheless, we have less cash that we received.

This is something we are really taking care, taking to account what Jakub said, and what we are seeing in the outlook. We just need to be careful.

That's why we highlight this, and this, let's say, our job to be careful at this, whatever would come in the market or macroeconomic development.

Just to clarify, the equity ratio itself is nothing which would require you to do any kind of capital measure. I just wanted to clarify that.

Of course, Tim, of course, it's better to have a higher ratio.

Sure.

Yeah.

That's clear. That's clear.

I'll jump in the queue.

Great. Thanks, Tim.

Any other questions today? This does not seem to be the case.

Then if nobody has a question, of course I have another question. Can you give an update on the placenta banking?

I remember that Portugal was the next country you were looking, and I remember that you had some positive, surprisingly positive signs from Germany also, what this topic was.

Portugal, we introduced placenta banking in December. At the moment, what we see is practical execution, because hospitals in Portugal were not well prepared for that.

Obviously, it's not our responsibility in terms of Portuguese regulations, it's different in Germany. We are gradually now training hospitals in Portugal to be familiar with the topic.

Sometimes we had cases that somebody signed the agreement and then hospital did not collect placenta, which is not complex, as because we are just taking entire placenta, we are not doing anything with that. Cord blood collection is much more complex.

That was done, and we believe that it will improve in Portugal. We don't expect to reach that ratio of 35, 40% we have in some countries or even more than 50% of people taking that offer, but at least minimum 20% is the goal.

Germany, yes, we got the license after, oh, more than two years of discussions with the authorities. We have collection license and production license.

What we started is signing the agreements with hospitals across Germany. It is required.

That's very regional process, there is no pan-German or federal standard on the topic. We have to do it at the level of Länder in Germany.

At the moment, as far as I remember, we are at range of 35 or 40 agreements signed in that range out of more or less 600, which is the total number of hospitals. In that case, we believe that after we'll have at least 100 agreements signed, we will launch the product in the territory of Germany.

We believe that will be in Q3 this year, yes. It's more complex in Germany because due to regulations, not only we have to have it in the form of a written amendment to our existing agreements with hospitals, but also we have to formally train the hospital staff collecting placenta like we do regularly for cord blood and cord tissue.

What is planned for this year is Hungary. In the past, we were rejected to get the license because the authorities in Hungary told us there is no law in Hungary which will allow to issue such a license.

We believe that that was a wrong interpretation of the law, and we reapplied to get the license. I think we placed the request again in end of February.

We expect rather positive answer. Obviously, the government is now changing, we will see also maybe some changes in the Ministry of Health and all the agencies, so that would be probably a little bit longer process than usually, but we really believe that we may introduce also this product in Hungary this year.

Yeah. A very quick reminder, I think you once mentioned that what you're seeing currently is that it doesn't really cannibalize the Cord blood, yeah, yeah,

yeah. Cord blood,

yeah, yeah. Yes.

Yes, there are two things. One thing that we simply have more money per client.

Obviously, we cannot sell with the same margin, yes. It's a add-on product.

The margin percentage-wise is smaller, but it's simply higher margin per client. Obviously, there is another factor which is important.

Placenta seems to be well accepted, yes, by stakeholders. If you would ask person on the street what is placenta, everybody or almost everybody knows.

What is cord blood, not necessarily. From that perspective, we see that.

This is why the take-up is so high, yes, for the new product. On average, it's over 35%.

I think it's even more. Even weighted, it's over 40%.

Another country I forgot to mention, we also introduce that in the UK. We will not process it in UK, we'll use our Portuguese laboratory for that because we have already license in UK, we don't have the license placenta yet.

We also introduce placenta banking in the UK.

Okay. Thanks.

All the best.

Thank you, Tim.

Thank you.

Any further question at this point? I think now that's not the case anymore.

Maybe one from my side, Jens.

Yes, of course.

Thank you very much for hosting the call today. Maybe you could also share some light on the ongoing efforts on Cryo-Save.

Where do we stand there in terms of customers which you have won from the existing customer base, and how do you see the future in signing up more of those customers?

Pretty positive, I think. Last year, we solved all the formal issues related with court proceedings we were involved in and which were blocking us from active communication with these families.

There is entire process of communication going on. We started the year much better than we expected.

We see rather positive response of these families. I believe that these families will contribute positively to our not only revenue, but also profit this year, which would be first time since we saved all these samples.

There is an action plan prepared. We selected certain cohorts of clients per country, per year of storage, and so and so.

We have a dedicated call center for that, multilingual call center, which is operating from Warsaw with some help of our daughter companies across Europe. I'm rather positive.

The main issue we have is that the addresses and contact numbers we have are unfortunately in 30% or 35% they are simply old and not correct anymore. It's an issue how to get to these families, yes, because we can use official channels to identify the person, but that is pretty costly exercise, yes.

We are rather focus on mass now, sending communication to as many as possible, which makes sense, and then trying to obviously upsell because we are not only offering storage, but we are offering extra services including also physical check of the sample, right, whether it is expanding, cells are expanding, they are growing, and we can also reconfirm the genetic origin of the sample and this kind of stuff, yeah. I'm rather positive, and that should grow in perspective of next years.

How many clients have you already signed and what's your current target?

Over 50,000 signed, but you should remember that in the very beginning of couple of years until we had the so-called backup agreement binding, backup agreement was between PBKM in Poland and bankrupt Cryo-Save, we were accepting prepayments, yes, which were paid before to Cryo-Save. Now we are not accepting that anymore because backup agreement is over.

This is why I'm pretty positive in terms of growing revenue from these clients. To remind everybody, we are talking about roughly 50,000 families out of more or less 225,000 families who were direct clients of Cryo-Save.

On top of that, there are also B2B relationships, these are partners of Cryo-Save who stored the samples with Cryo-Save, and we have at the moment, I think, four agreements signed with former partners of Cryo-Save, and these companies are now our clients, right? They are paying B2B so wholesale price, not individual price, it's different in terms of profitability.

What's your current target in terms of customers from Cryo-Save? How much of the 225 will you convert?

No, we are not disclosing that kind of information.

Regarding the recurring revenue, where are you standing there and where will you stand at the end of the year, roughly?

Last year, I think that we disclosed that information.

€22.7 million.

Yes. Maybe Thomas, you can comment on that, yes?

Last year we had €22.7 million recurring revenues. The end of the year, I'm not That

is the range, but these are recurring, if anyone are paying annually, yes, and on top of that, we have also roughly €7.5 million extra cash from prepayments done by existing clients or clients who prolong a finished contract. Altogether, roughly €30 million from cash, yes, from existing clients base.

Where do you think will you stand at the end of the year?

Subscription base should grow. Now it's natural process, yes, because churn is low, as you know.

The question is only the prepayment component, and here we don't know. Really we don't know because we see that less people are choosing prepayments overall, right?

Even for those who continue expired contracts, we don't know which fraction of them will really go for prepayment. The component Thomas mentioned, 22.5, let's say, million, that will grow, but the

By how much, do you think?

It's natural. Assuming you can calculate that information is public, let's say cash-wise, it should be in range of between €0.5 million and €1 million, yes?

That depends because depends on the ratio of how many clients will select subscription model, and also Cryo-Save has an impact, because Cryo-Save we also offer both annual payments and prepayments, and we push for prepayments here. Why?

Because mostly these clients are older. They banked 20 years ago, 15 years ago, people are at age of 50 today, they are probably stronger from financial point of view, yes, because when they were banking at age of 30, 35, likely their income was lower than they have at age of 45, 50, or something, yes.

Prepayment is better accepted across, let's say, ex-Cryo-Save clients than for our regular clients.

Did I understand it correctly that you expect a growth of €1 million in recurring revenues or is it €1.5 million?

No, no, no. Between €0.5 million and €1 million, yes.

Thank you.

Great. Thanks, Niels.

Any further questions? That doesn't seem to be the case for today.

Then I think it's time to close the call. We've reached the end of today's earnings call.

Thank you all for participating in this small round. For those of you who were not able to follow the call from minute one, we will download this conversation and make it available on our website in the course of the day.

For the time being and until our next call in the middle of the year, thank you all for joining and have a great weekend.

Thank you.

Thank you very much. Bye.

Bye-bye.

Bye.