Medios AG

Quarterly Report • Nov 9, 2021

Quarterly Statement as of September 30, 2021

Medios AG still on course for record year

• Revenue more than doubled in the first nine months of 2021 disproportionate increase in earnings
• Cash flow from operating activities and free cash flow significantly increased
• 97% inorganic and around 22% organic growth underpins adopted profitable growth strategy

Medios AG ("Medios"), the leading provider of Specialty Pharma Solutions in Germany, continues to be on course for the best financial year in the company's history following record figures in the first nine months of 2021. Consolidated revenue in the period from January to September increased by 118.3% to €988.8 million compared to the same period of the previous year (€452.9 million). EBITDA pre1 rose to €28.2 million (previous year €10.2 million), an increase of 175.6%. EBT pre1 climbed by 203.9% to €24.4 million (previous year €8.0 million). The Executive Board currently assumes that Corona will no longer have any impact on the revenue and earnings situation in the future.

The biggest growth driver in the first nine months of 2021 was the Pharmaceutical Supply segment, with a 131,9% increase in revenue to €941.7 million. At €23.8 million, the segment also reported a disproportionate increase in earnings of around 300%. As in the previous year, revenue attributable to the Patient-Specific Therapies segment amounted to €46.5 million. In contrast, EBITDA pre1 and EBT pre¹ increased by 37.9% and 44.9%, respectively, reflecting the focus on higher-margin products.

Revenue growth in the first nine months of 2021 was 118.3% – of which organic growth accounted for around 22 percentage points and inorganic growth for around 97 percentage points due to the successful acquisition of Cranach Pharma GmbH in January 2021 and Kölsche Blister GmbH in the previous year.

Cash flow from operating activities increased significantly by €33.4 million to €40.4 million in the first nine months of 2021 and was thus positive, as in the comparable prior-year period. Free cash flow also increased significantly by €58.8 million to €61.5 million.

Significant events and developments in the third quarter of 2021

• Establishment of additional audited GMP laboratories

As part of the implementation of its strategy, particularly in order to expand the higher-margin Patient-Specific Therapies segment, Medios began setting up additional laboratories in Berlin. When the state-of-the-art and GMP-certified laboratories (GMP: Good Manufacturing Practice) are commissioned, probably in the first quarter of 2022, it will be possible to increase manufacturing capacities up to threefold.

• Digitalization – Significant progress in the roll-out of the digital platform mediosconnect

Medios has launched its digital platform mediosconnect in another fourth German federal state. The company has thus significantly accelerated the roll-out of its innovative ordering and billing portal for individualized medicines. In addition to the expansion of mediosconnect to other parts of Germany, further indication areas will be integrated.

• Medios AG drops out of the SDAX

As part of its regular review of the DAX selection indices (DAX, MDAX, SDAX, TecDAX), Deutsche Börse decided on September 3, 2021 to change the composition of the SDAX, among other things. Accordingly, Medios – along with five other companies – left the SDAX with effect from September 20, 2021 and is therefore no longer listed in any of the DAX selection indices.

Significant events after the reporting period

• Falk Neukirch new CFO

Falk Neukirch has been appointed as a member of the Executive Board of Medios AG and as Chief Financial Officer (CFO) with effect from October 1, 2021 and is responsible for the departments Finance and Facility & Contract Management. As CEO, Matthias Gaertner is responsible for the departments Investor & Public Relations as well as Mergers & Acquisitions and will focus in particular on the strategy and further growth of the Medios Group.

Earnings, financial and asset situation of the Medios Group

The earnings situation of the Medios Group has increased disproportionately in the first nine months of 2021 (reporting period) compared to the same period of the previous year in terms of the increase in revenue. This is due in particular to the inclusion of Cranach Pharma GmbH in the consolidated financial statements since January 2021; the company has been fully consolidated since January 1, 2021, which is reflected accordingly in the financial figures. The Medios Group generated revenue of €988.8 million, an increase of €535.9 million or 118.3% (previous year €452.9 million) – of which 96.8 percentage points are attributable to inorganic growth through Cranach Pharma GmbH and Kölsche Blister GmbH.

The main growth driver in the first nine months of 2021 was the Pharmaceutical Supply segment, which increased its external revenue by €535.7 million or 131.9% to

€941.7 million (previous year €406.0 million) including €521.8 million from Cranach Pharma GmbH. As in the previous year, external revenue of the Patient-Specific Therapies segment amounted to €46.5 million. The Services segment recorded external revenue of €0.5 million (previous year €0.3 million). All revenues were generated almost exclusively in Germany.

Personnel expenses and other expenses rose disproportionately low in the reporting period.

Thus, EBITDA pre1 increased by €18.0 million or 175.6% to €28.2 million (previous year €10.2 million). The increase in depreciation and amortization from €2.6 million to €11.6 million is mainly due to the first-time amortization of the customer relationships of Cranach Pharma GmbH acquired in January 2021.

EBT pre1 recorded an increase of €16.3 million or 203.9% to €24.4 million (previous year €8.0 million) in the reporting period.

Cash flow from operating activities amounted to €40.4 million (previous year €6.9 million). The increase in cash flow from investment activities is mainly resulting from the contribution of cash and cash equivalents as part of the acquisition of Cranach Pharma GmbH.

The balance sheet total as of September 30, 2021 amounted to €457.6 million (December 31, 2020: €194.5 million). The increase of 135.2% is mainly due to the acquisition of Cranach Pharma GmbH. Equity amounted to €320.0 million as of September 30, 2021, an increase of €177.6 million or 124.7% (December 31, 2020: €142.4 million). The equity ratio was 69.9% as of September 30, 2021 (December 31, 2020: 73.2%).

Outlook

Medios expects to see strong growth in the 2021 financial year despite a market environment that remains challenging. Following a very good revenue performance in the first half of the year, Medios increased its revenue guidance for the 2021 financial year in August 2021. The company now expects to generate consolidated revenues of €1.2 billion to €1.3 billion (previously €1.15 billion to €1.20 billion). The company's earnings guidance remains unchanged, however, due to increased investments in future growth. As a result, Medios continues to expect EBITDA pre¹ of €38.0 to €39.0 million and EBT pre1 of €31.0 to €32.0 million. This corresponds to revenue growth of between 92% and 107% and an even more significant increase in EBITDA pre1 of approx. 152% to 159% and an increase in EBT pre1 of approx. 158% to 166%.

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¹ EBITDA is defined as net earnings before interest, income taxes, depreciation and amortization. EBT is defined as net earnings before income taxes. EBITDA pre and EBT pre are each adjusted for extraordinary expenses for stock options, M&A activities and amortization of the customer base.

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Key financials (IFRS)

in thousand €	9M 2021	9M 2020	∆ in %	Q3 2021	Q3 2020	∆ in %
Revenue	988,765	452,900	118.3	353,839	160,015	121.1
Pharmaceutical Supply	941,745	406,044	131.9	338,185	143,970	134.9
Patient-Specific Therapies	46,544	46,544	0.0	15,498	15,940	-2.8
Services	476	312	53.1	156	106	48.7
EBITDA	27,197	9,057	200.3	9,610	2,972	223.3
Margin (in % of Revenue)	2.8	2.0		2.7	1.9
EBITDA pre* 1	28,207	10,235	175.6	9,951	3,760	164.6
Margin (in % of Revenue)	2.9	2.3		2.8	2.4
Pharmaceutical Supply	23,808	5,958	300.0	8,560	1,829	367.8
Patient-Specific Therapies	5,983	4,340	37.9	2,030	1,412	43.7
Services	-1,584	-63	>1,000	-638	519	-223.1
EBT	14,759	5,976	147.0	5,418	1,802	200.6
Margin (in % of Revenue)	1.5	1.3		1.5	1.1
EBT pre* 1, 2	24,353	8,013	203.9	8,616	3,122	175.9
Margin (in % of Revenue)	2.5	1.8		2.4	2.0
Pharmaceutical Supply	21,265	4,951	329.5	7,700	1,476	421.5
Patient-Specific Therapies	5,113	3,528	44.9	1,699	1,129	50.3
Services	-2,024	-466	334.0	-783	516	-251.7
Comprehensive income after tax	9,890	4,269	131.7	3,617	1,101	228.7
Earnings per share (in €)
Undiluted	0.50	0.28	78.6	0.18	0.07	157.1
Diluted	0.48	0.27	77.8	0.17	0.07	142.9
Investments (CAPEX)	8,948	3,140	185.0	3,188	925	244.6
Cash flow from operating activities	40,359	6,947	481.0	10,705	28	>1,000
Cash flow from investment activities	21,154	-4,210	-602.5	-3,159	-899	251.4
Free Cash Flow	61,513	2,737	>1,000	7,546	-871	-966.4
Extraordinary expenses
1 Expenses from stock options	850	584	45.5	264	195	35.5
1 Other M&A expenses	159	594	-73.2	78	594	-86.9
2 Amortization of customer base	8,058	503	>1,000	2,686	175	>1,000
2 Financial expenses M&A	527	356	48.0	170	356	-52.3
	09/30/21	12/31/20	∆ in %
Headcount	300	279	7.5
Balance sheet total	457,639	194,537	135.2
Equity	320,024	142,425	124.7
Equity ratio (in %)	69.9	73.2
* without extraordinary expenses

Key Performance Indicator (KPI): Figures used to manage the company's success

Group financial interim statement as of September 30, 2021

in thousand €	9M 2021	9M 2020	∆ in %	Q3 2021	Q3 2020	∆ in %
Revenue	988,765	452,900	118.3	353,839	160,015	121.1
Change in stocks of finished goods and work-in-progress	0	45	-99.7	-30	32	-195.6
Work performed and capitalized	405	17	>1,000	136	0	n/a
Other income	365	287	26.9	130	102	28.0
Cost of materials	939,772	426,723	120.2	336,730	151,283	122.6
Personnel expenses	14,129	10,631	32.9	4,867	3,784	28.6
Other expenses	8,437	6,839	23.4	2,867	2,109	36.0
Earnings before interest, tax, depreciation and amortization (EBITDA)	27,197	9,057	200.3	9,610	2,972	223.3
Depreciation and amortization	11,596	2,568	351.5	3,923	947	314.3
Operating profit/loss (EBIT)	15,601	6,488	140.4	5,687	2,025	180.8
Financial expenses	853	527	61.9	272	224	21.5
Financial income	12	15	-22.6	4	1	204.3
Consolidated earnings before tax (EBT)	14,759	5,976	147.0	5,418	1,802	200.6
Tax	4,869	1,707	185.2	1,801	702	156.6
Consolidated earnings after tax	9,890	4,269	131.7	3,617	1,101	228.7
Total consolidated earnings	9,890	4,269	131.7	3,617	1,101	228.7
Undiluted earnings per share (in €)	0.50	0.28	78.6	0.18	0.07	157.1
Diluted earnings per share (in €)	0.48	0.27	77.8	0.17	0.07	142.9

Statement of comprehensive income

Consolidated balance sheet

in thousand €
Assets	09/30/2021	12/31/2020	∆ in %
Non-current assets	227,013	58,232	289.9
Intangible assets	198,724	35,237	464.0
Property, plant and equipment	11,153	5,337	109.0
Right of use	16,824	17,269	-2.6
Financial assets	312	390	-19.9
Current assets	230,626	136,305	69.2
Inventories	35,812	35,310	1.4
Trade receivables	110,849	74,789	48.2
Other assets	2,156	6,394	-66.3
Income tax receivables	113	24	371.7
Cash and cash equivalents	81,696	19,788	312.9
Balance sheet total	457,639	194,537	135.2

Liabilities

Equity
Subscribed capital	20,265	16,085	26.0
Capital reserves	268,016	104,487	156.5
Accumulated Group's net income	31,743	21,853	45.3
Attributable to shareholders in the parent company	320,024	142,425	124.7

Liabilities

Non-current liabilities	73,162	21,484	240.5
Financial liabilities	50,217	16,647	201.7
Other accrued liabilities	2,056	1,039	98.0
Deferred tax liabilities	20,889	3,798	450.0
Current liabilities	64,453	30,628	110.4
Other provisions	505	512	-1.5
Trade payables	48,211	22,398	115.2
Financial liabilities	2,535	2,587	-2.0
Income tax liabilities	8,857	2,613	239.0
Other liabilities	4,346	2,517	72.7
Total liabilities	137,615	52,112	164.1
Balance sheet total	457,639	194,537	135.2

Consolidated cash flow statement

in thousand €	9M 2021	9M 2020	∆ in %	Q3 2021	Q3 2020	∆ in %
Cash flow from operating
activities
Net income for the period	9,890	4,269	131.7	3,617	1,101	228.7
Depreciation and amortization on non-current assets	11,596	2,568	351.5	3,923	947	314.3
Decrease/increase in provisions	-101	-114	11.3	-156	-6	>1,000
Other non-cash expenses	850	584	45.5	264	195	35.5
Increase in inventories, trade receivables and other assets not attributable to investment or financing activities	16,064	-30,857	-152.1	-3,068	-26,053	-88.2
Decrease/increase in trade payables and other liabilities not attributable to investment or financing activities	538	34,835	-98.5	5,442	29,489	-81.6
Financial result	842	512	64.4	268	223	20.4
Income/expenses from the disposal of assets	-6	-1	542.0	0	0	n/a
Income tax expense	4,869	1,707	185.3	1,801	702	156.6
Income tax payments	-4,182	-6,557	-36.2	-1,386	-6,570	-78.9
Net cash inflow/outflow from operating activities	40,359	6,947	481.0	10,705	28	>1,000
Cash flow from investment activities
Payments made for investments in intangible assets	-1,949	-1,203	62.1	-946	-532	78.0
Payments from disposals of intangible assets	250	0	n/a	0	0	n/a
Payments made for investments in property, plant and equipment	-6,999	-1,937	261.3	-2,242	-393	470.0
Payments from disposals of tangible fixed assets	16	15	0.8	0	4	-100.0
Payments from the disposal of long-term financial items	77	62	24.3	25	21	21.4
Payments for additions to the scope of consolidation	29,972	-1,163	<-1,000	0	0	n/a
Payments from disposals from the scope of consolidation	-224	0	n/a	0	0	n/a
Interest received	12	15	-22.7	4	1	204.3
Net cash outflow from investment activities	21,154	-4,210	-602.5	-3,159	-899	251.3

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in thousand €	9M 2021	9M 2020	∆ in %	Q3 2021	Q3 2020	∆ in %
Cash flow from financing activities
Proceeds from equity injections	0	53,450	-100.0	0	0	n/a
Payments for issuing costs for the capital increase	-342	-1,459	-76.6	-140	-19	646.0
Proceeds from financial liabilities	30,000	19,000	57.9	0	0	n/a
Cash outflows from the repayment of financial liabilities	-26,991	-17,500	54.2	0	-17,500	100.0
Interest paid	-767	-735	4.3	-224	-308	-27.2
Repayments of lease liabilities	-1,506	-881	70.9	-559	-356	57.2
Net cash inflow from financing activities	395	51,875	-99.2	-923	-18,182	-94.9
Net change in cash and cash equivalents	61,908	54,611	13.4	6,623	-19,054	-134.8
Cash and cash equivalents at the beginning of the period	19,788	12,645	56.5	75,073	86,310	-13.0
Cash and cash equivalents at the end of the period	81,696	67,256	21.5	81,696	67,256	21.5

Consolidated statement of changes in equity

in thousand €	Subscribed capital	Capital reserves	Accumulated total consolidated earnings	Attributable to share holders in the parent company	Equity
As at 01/01/2021	16,085	104,487	21,853	142,425	142,425
Net profit for 9M 2021			9,890	9,890	9,980
Share-based payments		850		850	850
Capital increase	4,180	163,020		167,200	167,200
Transaction costs and tax from the capital increase		-342		-342	-342
As at 09/30/2021	20,265	268,016	31,743	320,024	320,024
As at 01/01/2020	14,564	51,237	15,789	81,627	81,627
Net profit for 9M 2020			4,269	4,269	4,269
Share-based payments		584		584	584
Capital increase	1,521	53,429		54,950	54,950
Transaction costs and tax from the capital increase		-1,459		-1,459	-1,459
As at 09/30/2020	16,085	103,828	20,058	139,972	139,972

This quarterly statement was published on November 9, 2021.

Contact

Medios AG Claudia Nickolaus Head of Investor & Public Relations Heidestraße 9 10557 Berlin Germany P +49 30 232 566 800 F +49 30 232 566 801 c.nickolaus@medios.ag www.medios.ag

Disclaimer

This notification contains forward-looking statements that are subject to certain risks and uncertainties. Future results may significantly deviate from currently expected results, specifically due to various risk factors and uncertainties such as changes in business, economic, and competitive circumstances, exchange rate fluctuations, uncertainties about legal disputes or investigations, and the availability of financial resources. Medios AG assumes no responsibility whatsoever for updating the forward-looking statements contained in this notification.

This document is a quarterly statement pursuant to Sec. 53 of the Exchange Rules for the Frankfurt Stock Exchange.