Thank you, operator, for the kind introduction. Ladies and gentlemen, welcome to Dermapharm's Q1 2026 webcast, and thank you for joining us today.

With me is our Chief Financial Officer, Christof Dreibholz. Christof will guide you through today's presentation, and after which we will open the floor for Q&A.

Christof, over to you.

Thank you very much, Britta. Good afternoon also from me.

My name is Christof Dreibholz. I will guide you through the numbers, starting on slide 4, please.

Looking at the Q1 figures as a group was again a positive development. Whilst revenue growth was 1.1% over Q1 2025, adjusted EBITDA increased by a remarkable 7.5%, leading to an adjusted EBITDA margin of 28.6% of revenues, 1.7 percentage points above the corresponding quarter in 2025.

All segments contribute to this growth. Main drivers are the German core business, organically across all entities in the branded products segment with a strong performance of our focus products, i.e., products that are marketed by our sales force, and inorganic growth stemming from the initial consolidation of Mucos, that is the Wobenzym product range, and Trenker.

Furthermore, Euromed and Arkopharma in the other healthcare products segment. Arkopharma's refocus of the business model is on a very good track with full sales force team on board and pharmacy measures, i.e., displays, trainings, and challenges, executed, plus launches of new products.

Euromed is negatively impacted by US tariffs, with US sales declining, but able to more than compensate through increased sales to the EU and Asia. Lower sales to the US mean less tariffs than budgeted, with a favorable impact on results.

Parallel import business, significantly improving its results, 1.6 million compared to prior year following the execution of the gross margin optimization program. At earnings after tax level, the higher EBITDA results were accompanied by lower interest cost, while tax expenses are at prior-year level.

Interest expenses were positively impacted by a step-down in the margin following our continued deleveraging. Slide 5, please.

Here we bridge key elements of Q1 26 performance, leading to a growth of approximately 12 million at earnings after tax level. Again, all segments contribute to EBITDA growth as explained before.

Hence, let me make a few additional remarks regarding the vaccine business and M&A. BioNTech revenues continue to be nearly exclusively from the pandemic preparedness model or program, and are hence unchanged.

As the contract will expire mid of 2027. The integration of Mucos is starting well.

After initial investments of time and money in sourcing, production, and logistics, sales are developing as planned. Q1 result is still subject to finalization of the purchase price calculation and also the allocation of the purchase price.

Preliminary numbers, with the purchase price allocation still ongoing, show a badwill of 4.2 million, which was released to income and adjusted at EBITDA level. Trenker is showing a positive EBITDA.

Deliveries to some Middle Eastern countries have initially been delayed by the Iran war, and are now partly rerouted through the Red Sea to and via Saudi Arabia. The interest rate hedging terminated end of 2025.

Impacts from the comparison to Q1 25 are hence minor. Interest cost, mainly for the syndicated loan, improved following the planned reduction of debt and the related covenant improvement, leading to a lower margin on top of the Euribor compared to last year, -25 bps.

Tax expenses and depreciation charges are approximately at prior-year level. Next slide, please.

EBITDA normalizations mainly comprise the reversal of the income from the release of the badwill, as mentioned before. Other adjustments are a half a million resulting from costs in connection with the acquisition of Montavit and Trenker, and are in total minor.

Slide 7, please. This slide shows net debt and the equity ratio development mirroring our value creation through continuous debt reduction and, at the same time, the deployment of significant cash amounts for acquisition growth, especially in 2025.

Net debt has been continuously reduced over the last quarters, following the amortization payments regarding syn loan tranche B with 25 million per semester, and the scheduled repayment of the promissory note loan. Net debt decline as of March 26 was mainly driven by a favorable net cash flow trend of +27 million compared to Q1 25, with a 22 million increase in cash since December 25.

The leverage ratio is comfortably below 3 times at 2.6 times, and hence even slightly below Q4 25 with 2.7 times EBITDA. The interest cover ratio, that is interest expenses compared to EBITDA, has again improved to 9.5 times from roughly 7 times in Q4 25.

Equity ratio steadily increases to now 32.3% due to positive results. The dip as of June 24 and 25 that you see on the slide is driven by the reclassification of the dividend liabilities settled beginning of July each year.

Slide 8, please. Our net assets and liabilities increased to 2.3 billion over December 25, driven by increased current assets, mainly higher inventories from the Mucos acquisition, slightly higher trade receivables, and cash as explained before.

This has been financed through increased trade payables and other current financial liabilities, including the preliminary purchase price settlement amount for Mucos. The equity number increased from retained earnings.

Next slide, please. Net working capital is at the level seen as of March 25, a reflection of the underlying seasonality in the business.

The increase in inventories and trade receivables is offset by higher trade payables. The respective days mirror the trend of the absolute numbers, i.e., the underlying drivers including growth in revenues, inflationary production cost increases both in terms of labor cost and cost of materials, and a necessity to hold certain buffer stock.

These impacts remain unchanged. DPO increases cut-off driven by 11 days to 83 days, December 25 72 days, with a favorable impact on the underlying cash cycle.

Slide 10, please. Q1 2026 shows a remarkable increase in the cash flow from operating activities compared to prior year.

Main contributors are the underlying EBITDA improvements across segments, sustainably lower tax payments, and cut-off driven higher trade payables. Recurring capex is approximately 9 million in Q1 26, and hence at approximately prior-year level.

The resulting free cash flow is 51 million, and 46 million above prior year. The cash conversion rate is 68%, and approximately at the level of 25 with 72%.

Details of the improving operating cash flow are shown on the next slide, 11. Whilst cash EBITDA improves in line with the earnings before tax result, the favorable trend of operating cash flow is mainly impacted by the slower increase of broad working capital, as discussed before, and lower tax payments, as only a small portion of tax payments still relate to historical financial years 22 and 23.

Finally, slide 13, the outlook for 26. Based on the Q1 results and a comparison to plan, we confirm the outlook for FY 26.

Thank you.

Now we would like to hand over back to you to open the Q&A.

Good afternoon, thanks. Can you just update us on the situation of your share buyback program, when you plan to cancel the shares, and the current free float?

Yes. The share buyback program was effective beginning of April, and hence is obviously not reflected in our Q1 numbers.

We acquired roughly 4.3 million shares, and we have taken all necessary steps to redeem the shares. The only outstanding step to my knowledge is I think the registration of this reduction in the commercial register, which is only for declaration purposes, and hence from April onwards, our share capital is reduced by these 4.3 million.

Hence the free float, since we acquired approximately 8%, the free float is reduced accordingly, should be slightly above 10%.

Thank you.

Thank you for joining us today. If you have any follow-up questions, please do not hesitate to contact me after the webcast.

Thank you.