Medios AG

Earnings Release • Jun 2, 2020

QUARTERLY STATEMENT AS OF 31 MARCH 2020

Following to the admission to the Prime Standard segment of the Frankfurt Stock Exchange on 29 May 2020 and in compliance with the ongoing reporting obligations resulting from the admission, Medios AG publishes the following quarterly statement for the first quarter 2020 in addition to the press release already published on 4 May 2020:

Medios AG confirms forecast for 2020 after first quarter – Admission to Prime Standard

• Sales growth of more than 50% in the first quarter of 2020
• So far, no significant Corona effects on business development
• Continued growth expected for the full year
• Admission to Prime Standard granted

Medios AG ('Medios'), one of the leading Specialty Pharma companies in Germany, has continued its dynamic growth in the first quarter of the 2020 financial year. In the period from January to March, group sales increased by 52.2% to €162.8 million compared to the same period of the previous year (€107.0 million). Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for extraordinary expenses*, increased by 19.3% to €4.3 million (previous year €3.6 million). Consolidated earnings before taxes (EBT), adjusted for extraordinary expenses*, climbed by 16.6% to €3.7 million (previous year €3.2 million). The Management Board confirms the full-year forecast.

Significant events in the reporting period

• Acquisition of Kölsche Blister GmbH

With the acquisition of Kölsche Blister GmbH in the first quarter of 2020, Medios' business model was expanded with the service of patient-specific blistering. This is the patient-related repackaging of finished pharmaceuticals on individual request.

• Raising of a syndicated loan in the amount of €62.5 million

In addition, Medios has signed an agreement for a syndicated loan in the amount of €62.5 million in the first quarter. This is intended to enable Medios to finance future growth and to make further acquisitions if requested in order to benefit from the consolidation of the pharmaceutical market.

Significant events after the reporting period

• Admission to the Prime Standard

On 29 May 2020, the Company was admitted to the sub-segment of the Regulated Market with additional post-admission obligations (Prime Standard) of the Frankfurt Stock Exchange. Thus, the Medios shares are now traded in the segment with the highest transparency and disclosure requirements in Europe. Previously, Medios was listed in the General Standard of the Regulated Market.

• Placement oversubscribed several times – Free float over 60%

Mid-May the successful placement of 600,000 existing shares took place. The shares were sold in a private placement by M.M.Warburg & CO to international institutional investors. The offering was oversubscribed more than three times after only a short time. There was no dilution of the shareholders. The free float of Medios AG has increased from around 57% to around 61% as a result of the full placement.

Financial performance and financial position

The earnings situation of the Medios Group continued to improve in the first quarter of 2020 compared to the same period of the previous year. The Medios Group achieved a turnover of €162.8 million. Sales increased by €55.8 million or 52.2% compared to the same period of the previous year (€107.0 million).

The largest growth driver was once again the Pharmaceutical Supply segment, which increased its sales by €53.8 million, or 57.0%, to €148.2 million compared to the same period of the previous year (€94.4 million). The Patient-specific Therapies segment also continued to grow compared to the previous year. Revenues increased by €2.0 million to €14.5 million (same period last year: €12.5 million). This corresponds to an increase of 15.9%. In the Services segment, sales remained at a low level of €0.1 million compared to €0.0 million in the previous year. The segment provides internal group services, particularly in the areas of IT and finance. Sales to third parties are generated with IT services. All sales were generated almost exclusively within the Federal Republic of Germany.

Earnings before interest, taxes, depreciation and amortization (EBITDA) without extraordinary expenses rose by 19.3% from €3.6 million to €4.3 million, particularly as a result of the expansion of business. EBT without extraordinary expenses rose from €3.2 million to €3.7 million, an increase of 16.6% compared to the previous year.

Extraordinary expenses resulted from share option programs in the amount of €0.2 million and the amortization of the customer base capitalized in 2018 as a result of the acquisition of operating units of BerlinApotheke Schneider & Oleski oHG in the amount of €0.2 million.

The operating cash flow increased by €1.7 million to €2.4 million.

The balance sheet total as of 31 March 2020 amounted to €134.8 million. The increase is mainly driven by higher inventories for stockpiling against the background of COVID-19, with an opposite increase in trade payables. These increases have since been reduced again. As a result, the equity ratio fell to 61.8% despite an absolute increase in equity to €83.3 million.

Outlook

For the 2020 financial year, Medios continues to expect – including the acquisition of Kölsche Blister GmbH in March 2020 – group sales of around €610 to €670 million, an adjusted EBITDA* of around €19.5 to €22.5 million and an adjusted EBT* of around €17.5 to €20.5 million.

The wider target ranges take into account the special conditions. At present, it is not possible to estimate whether the spread of the Corona virus will have a larger impact on the future business development. So far, it has not been significantly affected by the pandemic however.

Key Figures

	Q1 2020 (unaudited)	Q1 2019 (unaudited)	Change
in EUR			in EUR	in %
Revenue	162.833.953	107.009.974	55.823.979	52,2
Thereof Pharmaceutical Supply	148.216.726	94.427.588	53.789.138	57,0
Thereof Patient-specific Therapies	14.534.939	12.544.324	1.990.615	15,9
Thereof Services	82.288	38.062	44.226	116,2
Operating result before depreciation andamortisation (EBITDA)	4.066.051	3.285.709	780.342	23,7
Margin (in % of Revenue)	2,50%	3,07%
Thereof Pharmaceutical Supply	2.296.199	2.605.740	-309.542	-11,9
Thereof Patient-specific Therapies	1.957.552	1.141.097	816.455	71,6
Thereof Services	-187.700	-461.128	273.429	-59,3
EBITDA without extraordinary expenses*	4.260.851	3.570.401	690.450	19,3
Margin (in % of Revenue)	2,62%	3,34%
Earnings before taxes (EBT)	3.372.676	2.754.488	618.188	22,4
Margin (in % of Revenue)	2,07%	2,57%
Thereof Pharmaceutical Supply	1.997.901	2.472.857	-474.955	-19,2
Thereof Patient-specific Therapies	1.615.470	797.888	817.582	102,5
Thereof Services	-240.696	-516.257	275.561	-53,4
EBT without extraordinary expenses*	3.719.356	3.191.060	528.296	16,6
Margin (in % of Revenue)	2,28%	2,98%
Comprehensive income before minority interests	2.310.283	1.892.333	417.950	22,1
Earnings per share
Undiluted	0,16	0,13	0,03	22,1
Diluted	0,15	0,13	0,03	22,1
Balance sheet total (as of 31 December)	116.567.316	98.416.818	18.150.498	18,4
Equity (as of 31 December) Equity ratio (as of 31 December)	83.336.368 61,84%	73.890.866 71,60%	11.128.897	15,1
Investments (CAPEX) (as of 31 December)	374.496	888.388	-513.892	-57,8
Cash flow from operating activities	2.443.230	734.089	1.709.141	232,8
*Extraordinary expenses Expenses from share option programmes Amortization of the customer base	194.801 151.880	284.692 151.880	-89.892 0	-31,6 0,0

* EBITDA and EBT are adjusted for extraordinary expenses for stock options and acquisitions.

About Medios AG

Medios AG is one of the leading Specialty Pharma companies in Germany. As a specialist for the provision of Specialty Pharma drugs to patients and as a GMP-certified provider of patient-specific therapies and innovative analytical methods, Medios covers substantial elements of the supply chain in this field and follows the highest international quality standards. Usually, Specialty Pharma drugs are high-priced medicines for chronic and/or rare diseases. Patient-specific therapies are, for example, infusions that are compiled and produced on the basis of individual diseases and parameters like body weight and surface. In the field of drug safety, NIR spectroscopic analysis methods (NIR: Near infrared) are used to distinguish marketable finished drugs from drug counterfeits. It is Medios' aim to provide integrated solutions along the value chain to partners and clients, thereby ensuring an optimal pharmaceutical care for patients.

Medios AG is Germany's first publicly listed Specialty Pharma company. The shares (ISIN: DE000A1MMCC8, DE000A288821) are listed in the Regulated Market of the Frankfurt Stock Exchange (Prime Standard).

Contact

Medios AG Claudia Nickolaus Head of Investor-/ Public Relations Phone: +49 30 232 566 800 Fax: +49 30 232 566 801 E-mail: ir@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.