Medios (ILM1) investor relations material

Strategic direction, market positioning, and business model evolution

• Transitioning from a specialty pharma supplier to a vertically integrated pharma services group with two segments: Specialty Pharma Supply (SPS) and Compounding, integrating international business and unifying compounding management across Europe.

• Positioned in structurally growing markets driven by demographic trends, chronic disease, individualized medicine, and regulatory complexity, with compounding in Germany and the Netherlands growing at ~7% annually.

• Compounding prioritized as the key driver of future earnings, with investments in new product development, European platform expansion, and integration of recent acquisitions such as Caelo.

• Emphasis on operational excellence, automation, digitalization, and AI to drive cost leadership, scalability, and margin improvement.

• Discontinued advanced therapies and closed underperforming sites to focus resources on core strengths and optimize the network.

Financial guidance, targets, and capital allocation

• Targeting group revenue of €3.1 billion and adjusted EBITDA of €170 million (5.5% margin) by 2031, with compounding revenue doubling to €0.8 billion and margin rising to 14.2%.

• SPS segment aims for €2.3 billion revenue and 3% EBITDA margin by 2031, maintaining its role as the group's cash engine.

• Organic revenue CAGR of 5% for group, SPS, and compounding segments; €700 million from organic growth and €300 million from M&A in Compounding.

• Maintaining leverage below 2.0x (1.32x as of H1 2026), annual CapEx of €10–15 million, and cumulative M&A capacity of €325 million through 2031.

• Capital allocation prioritizes organic growth, value-accretive M&A, shareholder returns (including share buybacks), and financial discipline.

Operational initiatives and innovation

• SPS leverages industry relationships, regulatory expertise, and a focused portfolio to maintain margin leadership and supply reliability.

• Compounding operates an integrated international platform across sterile, non-sterile, and API businesses, with leading positions in Germany and the Netherlands and expansion plans for other European markets.

• Focus on hospital and clinic markets, new product development, and digital solutions (e.g., mediosconnect, AI-enabled shortage detection) to capture growth opportunities.

• Ongoing optimization of facility network, automation initiatives, and integration excellence to drive operational efficiency and service quality.

• Innovation pipeline includes automation, digital platforms, AI use cases, and process optimization to enhance efficiency and customer value.