Medios Ag · XETR:ILM1
Medios — H1 2023 Earnings Presentation
33 slides from Medios's earnings presentation, Aug 14, 2023
Slide 1: H1 2023 Results
H1 2023 Results Matthias Gaertner, CEO Falk Neukirch, CFO August 14, 2023
Slide 2: Executive summary, Financial overview, Guidance 2023, Appendix
1 Executive summary 2 Financial overview 3 Guidance 2023, growth story 4 Appendix 2
Slide 3: Highlights H1 2023
Executive summary Highlights H1 2023 • Positive business development in both operating segments • Successful acquisition of Blisterzentrum Baden-Württemberg GmbH (“bbw”) and start of Operations integration of AfS’ manufacturing volume into Medios’ labs • Centralization of blister business at the bbw
Slide 4: Centralization of blister business at one site – Potential efficiency gains
Executive Summary Centralization of blister business at one site – Potential efficiency gains Sale of Kölsche Blister GmbH in June • Kölsche Blister GmbH sold to a strategic investor • After acquiring bbw in January, Medios concentrated its blister business at the bbw site near Stuttgart, Germany •
Slide 5: QoQ almost stable despite burden due to regulatory changes
Executive Summary QoQ almost stable despite burden due to regulatory changes Revenue in €m EBITDA pre¹ €m 419 431 422 399 399 15.3 15.0 369 393 14.3 14.1 14.1 354 319 316 11.1 10.2 9.5 10.0 8.8 2.7 3.0 3.6 3.6 3.6 3.4 3.5 3.3 Margin 2.8 2.8 2.8 3.3 2.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
Slide 6: Continuous and sustainable growth YoY
Executive Summary Continuous and sustainable growth YoY Revenue in €m EBITDA pre¹ in €m +7.7% +1.9% 792 854 28.5 29.0 H1 2022 H1 2023 H1 2022 H1 2023 ¹ EBITDA pre is adjusted for special charges for stock options and expenses for M&A activities as well as from 2023 additionally for one-time performa
Slide 7: Split by operative segments for H1 2023
Executive Summary Split by operative segments for H1 2023: Ongoing high EBITDA pre share for PST above target rate of 40% Revenue by segment2 EBITDA pre1 by segment2 14% 14% 43% Patient-specific Therapies (PST) 86% 69% Pharmaceutical Supply (PS) ¹ EBITDA pre is adjusted for special charges for stock
Slide 8: Excellent geographic coverage through strong nationwide network of partners
Market positioning & business model Excellent geographic coverage through strong nationwide network of partners and own compounding facilities • 7 GMP1- / 1 blistering labs • 2 central / 2 regional warehouses Hamburg • Innovative IT-based platform mediosconnect in 5 federal states Osnabruck Berlin (
Slide 9: ESG news H1 2023 – Twice awarded
Executive Summary ESG news H1 2023 – Twice awarded Further development of M&A Award2 Deutschland Test Award3 – reporting systems „Best jobs with future“ • Goal: Extend voluntary • Award in recognition of • Over 6,000 tested reporting in the Non- the best "M&A Direction“ companies by IMWF4 financial
Slide 10: Executive summary, Financial overview, Guidance 2023, Appendix
1 Executive summary 2 Financial overview 3 Guidance 2023, growth story 4 Appendix 10
Slide 11: H1 2023 – Financials
Financial overview H1 2023 – Financials In € million H1 2023 H1 2022 ∆% Comments Revenue 853.5 792.2 7.7% • Record revenue driven by contribution of Gross profit1 54.4 53.4 both operative segments and inclusion of 1.8% bbw in consolidated accounts for six months gross margin in % 6.4% 6.7% EBITDA pr
Slide 12: H1 2023 – Organic and inorganic revenue contributed to growth
Financial overview H1 2023 – Organic and inorganic revenue contributed to growth Inorganic H1 YoY Revenue in €m H1 2022 Organic (bbw/Afs) H1 2023 Comments Pharmaceutical Supply 682.5 28.5 23.1 734.1 • bbw acquisition led to revenue Patient-specific Therapies 109.5 4.5 4.9 118.9 contribution of €28m
Slide 13: H1 2023 – EBITDA pre driven by acquisition of bbw
Financial overview H1 2023 – EBITDA pre1 driven by acquisition of bbw and integration of AfS’ manufacturing volume into Medios’ labs Inorganic H1 YoY EBITDA pre1 in €m H1 2022 Organic (bbw/Afs) H1 2023 Comments Pharmaceutical Supply 17.5 1.4 1.0 19.9 • EBITDA pre of PS grew mainly Patient-specific T
Slide 14: H1 2023 – YoY Group margin slightly decreased due to regulatory impacts
Financial overview H1 2023 – YoY Group margin slightly decreased due to regulatory impacts Pharmaceutical Patient-specific Internal Services and Group Supply ‘PS‘ Therapies ‘PST’ IFRS consolidation In € million H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 Total segment revenue 800
Slide 15: Ongoing strong financing power – to invest in future growth
Financial overview Ongoing strong financing power – to invest in future growth Available and future funds Financing power in €m • Approx. €+37m annual operating cash flow in 2023 Equity upon X acceptance • Approx. €-5m annual operating capex need Step up • Approx. €30m available cash end of June 202
Slide 16: Executive summary, Financial overview, Guidance 2023, Appendix
1 Executive summary 2 Financial overview 3 Guidance 2023, growth story 4 Appendix 16
Slide 17: Guidance FY 2023 confirmed (1/2) – Ongoing growth story
Guidance 2023, growth story Guidance FY 2023 confirmed (1/2) – Ongoing growth story Revenue in €bn EBITDA pre1 in €bn Comments • Revenue expected to reach range of €1.6-1.8bn Up to +11.8% Up to +14.8% in 2023 (growth up to11.8% compared to 2022) • EBITDA pre1 expected to reach range of €56-63m in 20
Slide 18: Guidance FY 2023 confirmed (2/2) – Main assumptions
Guidance 2023, growth story Guidance FY 2023 confirmed (2/2) – Main assumptions Main Assumptions for 2023 Synergy effects as a result Especially in purchasing and Regulatory price reductions effective since Sep 1, 2022 of the integration of logistics – negative impact on the PST* segment Cranach Pha
Slide 19: Our strategic priorities moving forward
Growth strategy & ESG Our strategic priorities moving forward Continue evolving out compounding 1 Core business: infrastructure in Germany Germany Core business: Expand compounding within 2 Europe to gain continued growth, Internationalization while increasing profitability 3 New business: Diversifi
Slide 20: Group Mid-term targets 2025–2027
Guidance 2023, growth story Group Mid-term targets 2025–2027 Mid- & long-term success depending on: Revenue • Successful implementation of adapted strategy > €2bn • Expansion of higher-margin PST business Increased • Patient-specific and advanced therapies, margins also via, EBITDA pre* margin • Int
Slide 21: Conclusion H1 2023
Guidance 2023, growth story Conclusion H1 2023 • Solid performance in H1 2023 - strengthening market leadership in Specialty Pharma • Diversification and continued focus on synergies mitigate impact from regulatory changes • Excellent Q3 2023 expected - supported by inflation-related price adjustmen
Slide 22: Executive summary, Financial overview, Guidance 2023, Appendix
1 Executive summary 2 Financial overview 3 Guidance 2023, growth story 4 Appendix 22
Slide 23: H1 / Q2 2023 - Key figures (1/2)
Appendix H1 / Q2 2023 - Key figures (1/2) in € thousand H1 2023 H1 2022 ∆ in % Q2 2023 Q2 2022 ∆ in % Revenue 853,517 792,179 7.7% 422,278 399,224 5.8% Pharmaceutical Supply 734,146 682,456 7.6% 366,002 343,252 6.6% Patient-Specific Therapies 118,948 109,484 8.6% 56,012 55,875 0.2% Services 423 238
Slide 24: H1 / Q2 2023 - Key figures (2/2)
Appendix H1 / Q2 2023 - Key figures (2/2) in € thousand H1 2023 H2 2022 ∆ in % Q2 2023 Q2 2022 ∆ in % Earnings per share (in €) Undiluted 0.39 0.42 -7.1% 0.19 0.21 -9.5% Diluted 0.39 0.42 -7.1% 0.19 0.21 -9.5% Investments (CAPEX) 547 2,864 -80.9% 272 721 -62.3% Cash flow from operating activities -7
Slide 25: Q2 2023 - Driven by acquisition of bbw and integration of AfS
Financial overview Q2 2023 - Driven by acquisition of bbw and integration of AfS’ manufacturing volume supported by organic growth Inorganic Q2 YoY Revenue in €m Q2 2022 Organic (bbw/Afs) Q2 2023 Comments Pharmaceutical Supply 343.3 11.3 11.4 366.0 • Inorganic growth driven by bbw/AfS integration Pa
Slide 26: Q2 2023 – Impacted by integration of bbw and AfS compounding
Financial overview Q2 2023 – Impacted by integration of bbw and AfS’ compounding and regulatory changes since Sep 2022 Inorganic Q2 YoY EBITDA pre1 in €m Q2 2022 Organic (bbw/Afs) Q2 2023 Comments Pharmaceutical Supply 9.1 0.1 0.6 9.8 • Successful integration of bbw and compounding from AfS led to E
Slide 27: Q2 2023 – YoY Group margin slightly decreased due to regulatory impacts
Financial overview Q2 2023 – YoY Group margin slightly decreased due to regulatory impacts Pharmaceutical Patient-specific Internal Services and Group Supply ‘PS‘ Therapies ‘PST’ IFRS consolidation In € million Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Total segment revenue 398
Slide 28: 1. Push forward manufacturing business in Germany
Growth strategy & ESG 1. Push forward manufacturing business in Germany • Closing the white spots in geographic coverage of Medios’ partner network, especially in Bavaria and/or Eastern Germany – Acquisition of labs and /or conclude cooperation agreements • Advance market penetration through innovat
Slide 29: 2. Prioritised markets are growing markets with attractive gross margins
Growth strategy & ESG 2. Prioritised markets are growing markets with attractive gross margins The total compounding The segment market size* is growth rate ranges estimated to be ~ €2bn from 5% – 65% * The gross margins range from Total population* of 10% - 60% * ~ 106m and a total specialty pharma
Slide 30: 3. Advanced therapies manufacturing represents a highly attractive market opportunity
Growth strategy & ESG 3. Advanced therapies manufacturing represents a highly attractive market opportunity, aligned with Medios’ strengths Focus on Focus on patient- Why advanced Focus on patient-specific specific therapies? specialty therapies therapies pharma 2022 2025 Medios is already Advanced
Slide 31: Contact
Contact Claudia Nickolaus Head of Investor & Public Relations, ESG Communications Phone +49 30 232 566 800 c.nickolaus@medios.ag 31
Slide 32: Disclaimer
Disclaimer This presentation has been produced by Medios AG (the „Company“). The facts and information The forward-looking statements, including but not limited to assumptions, opinions and views of contained herein are as up to date as is reasonably possible and are subject to revision in the the C
Slide 33: H1 2023 Results
H1 2023 Results Matthias Gaertner, CEO Falk Neukirch, CFO August 14, 2023