Slides
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INVESTORS’ AND ANALYSTS’ CONFERENCE CALL Q1 2025 Grünwald, 15 May 2025
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AGENDA Q1 2025 2 1. Financial figures 2. Outlook 2025 3. Backup
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Financial figures 3 1
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Highlights Q1 2025 Dermapharm starts 2025 financial year as planned 4Dermapharm 3M 2025 Strong organic growth in high-margin branded pharmaceuticals driven by international business allergology products and parallel import business more than compensating for revenue decline in vaccine business and Arkopharma Successful start to axicorp restructuring reduction in headcount will lead to lower personnel expenses reduction in product volumes contribution margin/product will increase
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Q1 2024 Q1 2025 Q1 2024 Q1 2025 Dermapharm Group Continuous revenue growth at expected lower profitability level following exceptional income in Q1 2024 5 Revenue growth of 1.2% to €302.4m, driven by organic growth in existing branded portfolio and parallel import business more than compensating for decline in vaccine business based on pandemic preparedness program (Q1 2024 included exceptional amounts covering H2 2023) and Arkopharma due to the planned reorganisation of business model, mainly in the Spanish entity Adj. EBITDA declines by 8.3% to €81.3m (-6.5% to €80.1m at reported level), driven by the reduced high-margin vaccine business increasing personnel expenses following labour cost increases and the reorganisation of axicorp Q1 2024 Q1 2025 Total Revenue €m +1.2% YoY Branded pharmaceuticals Parallel import businessOther healthcare products EBITDA1 €m, adjusted 302.4298.7 EBITDA Margin 29.7% 26.9% 81.388.7 -8.3% YoY EAT2 €m 33.243.1 -22.9% YoY Dermapharm Group 1 EBITDA 3M 2024 adjusted for non-recurring costs of €3.0m in connection with the reduction in shareholding in Wellster Healthtech Group GmbH and the relocation of Candoro ethics GmbH NM and THC Pharm GmbH to Friedrichsdorf | Group EBITDA also includes reconciliation of -€1.3m (Group Holding) | EBITDA 3M 2025 adjusted for non-recurring costs of €1.2m essentially in connection with the restructuring of axicorp | Group EBITDA also includes reconciliation of -€1.2m (Group Holding). 2 EAT = Earnings after taxes. Dermapharm 3M 2025
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-5.7 -1.5 +1.6 -5.7 -2.7 +4.3 -0.2 Q1 2024 Vaccine / Pandemic Preparedness Program Arkopharma Other operating effects SWAP SynLoan Interest Costs & Other Income taxes Depreciation Q1 2025 Earnings after tax (EAT) Lower EAT result driven by exceptional results included in Q1 2024 and the valuation of the interest hedges 6 EAT €m 43.1 33.2 ∆ Financial result Calculated taxes on lower EBT Dermapharm 3M 2025 Higher Q1 2024 result referring to H2 2023 Driven by BP with organic topline growth of 6.2% ex vaccine business Lower interest income compared to Q1 2024
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Dermapharm Group EBITDA adjustments again declining compared to prior year 7 €m Q1 2025 Q1 2024 Reduction in shareholding 2.2 Wellster Restructuring 1.1 axicorp Relocation to Friedrichsdorf 0.6 Candoro Neumarkt / THC Pharm Others 0.1 0.1 Total 1.2 3.0 Dermapharm 3M 2025
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25.2 25.2 27.0 25.2 27.7 29.2 30.5 01.09.2023 01.12.2023 01.03.2024 01.06.2024 01.09.2024 01.12.2024 01.03.2025 Net debt reduction by €93m since Sep 2023 shows the ability of the business to generate cash 8 Net debt €m 984 937 921 919 919 869 891 01.09.2023 01.12.2023 01.03.2024 01.06.2024 01.09.2024 01.12.2024 01.03.202530 Sep 2023 31 Dec 2023 31 Mar 2024 30 Jun 2024 30 Sep 2024 31 Dec 2024 31 Mar 2025 Equity ratio in % Net debt increase in Q1 2025 mainly driven by higher corporate tax of €25m for prior years paid in Q1 2025 (FY2024: €12m) and higher net working capital Net debt / adjusted EBITDA 1: 2.9x in line with syn loan provisions (FY2024: 2.8x) Comfortable interest cover ratio² of 7.5x Steadily increasing equity ratio 1 rolling 12M adjusted EBITDA as of 31 Mar 2025. 2 Interest Cover = adj. EBITDA / interest expenses (long and short-term loans). 30 Sep 2023 31 Dec 2023 31 Mar 2024 30 Jun 2024 30 Sep 2024 31 Dec 2024 31 Mar 2025 Dermapharm 3M 2025
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608 645 1.145 1.160 327 307 31 Dec 2024 31 Mar 2025 Balance Sheet of Dermapharm Group Total assets and liabilities largely unchanged 9 1.487 1.482 593 630 31 Dec 2024 31 Mar 2025 Total assets €m 2,1122,080 Total equity and liabilities €m Non-current assets Current assets Equity Current liabilities Non-current liabilities 2,1122,080 Other current assets increased, driven by higher working capital Higher working capital financed economically through an increased equity number Corporate tax payment for prior years (€25.0m) triggered an increase in financial liabilities Cut-off driven lower VAT liabilities led to a reduction of current liabilities Dermapharm 3M 2025
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Working capital Net working capital increase by >7% mainly driven by a combination of higher inventory and lower trade payable levels 10 Higher inventory levels driven by underlying growth in revenues inflationary production cost increases (labour and materials) generally higher buffer stock to secure ability to deliver products against the backdrop of tight supply chains Slightly longer cash cycle impacted by cut-off driven DPO decrease by 6 days compared to Q1 2024 €m Q1 2025 Q1 2024 YoY Inventory 350.7 337.5 +3.9% Trade receivables 129.4 124.8 +3.7% Trade payables 97.5 105.4 -7.5% Net working capital 382.6 356.9 +7.2% Days DIO 104 102 2.0% DSO 39 38 2.6% DPO 65 71 -8.5% Cash cycle 78 69 13.0% Dermapharm 3M 2025
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Cash flows and cash conversion mainly impacted by lower earnings, driven by exceptional items in Q1 2024, and valuation impacts as well as increased tax payments for historical fiscal years 11 CF from operating activities declines largely because of lower EBT, increased tax payments for historical fiscal years and to a smaller extent from an increased broad working capital Change in CF from investing activities mainly due to increase in PPE due to finalisation of the modification of the axicorp building (candoro ethics) and additions to the technical equipment of the Brehna production Free cash flow: -€5.1m in Q1 2025 (Q1 2024: €26.4m) Cash flow and cash conversion1 €m and in % of Group EBITDA 33.1 4.2 -6.7 -9.3 Q1 2024 Q1 2025 Cash conversion 37.3% 5.2% 1 Cash conversion defined as operating cash flow / (adjusted) EBITDA. CF from operating activities CF from investing activities FCF 26.4 -5.1 Dermapharm 3M 2025
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Cash Flow from operating activities mainly impacted by lower Cash EBITDA and increased tax payments 12 Q1 2025 Q1 2024 YOY EBT 49.7 63.9 -14.2 Depreciation / amortisation fixed assets 20.0 19.7 +0.3 Largely unchanged to prior year, no major growth capex after Q1 2024 Interest expense / income 9.6 7.4 +2.2 (Lower) interest expenses for syndicated and promissory note loans, partly offset by interest income from a settlement claim regarding a repurchase agreement Other non-cash items, gain / loss on disposal of non-current assets 2.4 2.0 +0.4 Currency translation due to fluctuating exchange rates Expensed research project Cash EBITDA 81.7 93.0 -11.3 Broad working capital (assets and liabilities) -40.6 -36.7 -3.9 Higher inventory and trade receivable levels accompanied by cut-off driven lower trade payables Income tax payments -36.9 -23.1 -13.8 The majority of the tax payments related to fiscal year 2022 which has been favourably impacted by the vaccine business CF from operating activities 4.2 33.1 -28.9 Dermapharm 3M 2025
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Outlook 2025 13 3
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Outlook 2025 Current trading in line with budget, portfolio effects expected to balance positive and negative budget deviations 14 Based on the current trading, which is in line with budget, general portfolio effects of the business and our regular reforecasting processes, Management has currently no indication that the budgeted ranges for revenues and adjusted EBITDA will not be met Revenues EBITDA (adjusted) Growth strategy $ of €1,160m-1,200m vs. previous year (€1,180.8m) of €322m-332m vs. previous year (€315.6m) Dermapharm 3M 2025
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15 Backup3
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Branded pharmaceuticals Strong organic growth in core portfolio and international business 161 EBITDA 3M 2024 adjusted for non-recurring costs of €2.4m in connection with the reduction in shareholding in Wellster Healtht ech Group GmbH. EBITDA 3M 2025 adjusted for non-recurring costs of €0.1m. Revenue increase of 1.9% to €145.7m, driven by strong organic growth of 6.2% without vaccine business in both, existing portfolio, esp. allergology products international business more than offset the planned decline in vaccine business from exceptionally high revenues in Q1 2024 Reported and adjusted EBITDA declines to €66.0m, driven by the exceptionally high revenues and results from the vaccine business in Q1. Excluding the vaccine business adjusted EBITDA increased by 9% compared to prior year. Q1 2024 Q1 2025 Revenue €m +1.9% YoY EBITDA1 €m, adjusted 145.7143.0 66.071.2 -7.3% YoY Dermapharm 3M 2025 EBITDA Margin 49.8% 45.3% Q1 2024 Q1 2025
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Q1 2024 Q1 2025 Other healthcare products Restructuring of Arkopharma’s business model drives decline in Q1 2025 171 EBITDA 3M 2024 adjusted for non-recurring costs of €0.7m in connection with the relocation of Candoro ethics GmbH NM and THC Pharm GmbH to Friedrichsdorf. Revenue declined slightly by -2.9% to €96.2m, primarily attributable to ongoing restructuring of Arkopharma’s business model, mainly in the Spanish entity organic growth in remaining portfolio of the segment develops as planned, but cannot fully offset the decline EBITDA decreased by -5.9% to €17.4m (adjusted, reported EBITDA by -2.2% to €17.4m) Revenue €m -2.9% YoY EBITDA1 €m, adjusted 96.299.1 EBITDA Margin 18.7% 18.1% 17.418.5 -5.9% YoY Dermapharm 3M 2025 Q1 2024 Q1 2025
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Q1 2024 Q1 2025Q1 2024 Q1 2025 Parallel import business Portfolio streamlining and restructuring costs drive decline in EBITDA 18 Revenues increases by +7.1% to €60.6m The portfolio streamlining has been initiated in Q1 2025 and is ongoing, initial impacts expected to be seen in Q2 2025 EBITDA decreases to -€0.9m, (adjusted, reported EBITDA to -€2.0m) portfolio streamlining initiated in Q1 2025, positive impacts expected to materialise in from Q2 2025 onwards restructuring provision of €1.1m recorded Revenue €m +7.1% YoY EBITDA1 €m, adjusted 60.656.6 -0.90.2 -550% YoY EBITDA Margin 0.4% -1.6% Dermapharm 3M 20251 EBITDA 3M 2025 adjusted for non-recurring costs of €1.1m in connection with restructuring costs at axicorp.
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Earnings before tax (Group EBT) Result decreases due to exceptionally high result in Q1 2024, interest hedges related valuation impacts and lower interest income 19 EBT decreases by -22.2% to €49.7m translating to an EBT margin of 16.4% Lower EBT result mainly driven by lower vaccine related revenues and results due to exceptionally high income recorded in Q1 2024, valuation of the interest hedges and higher net interest expenses Earnings before tax (EBT)1 €m Q1 2024 Q1 2025 49.7 63.9 -22.2% YoY 1 Calculation of EBT based on unadjusted Group EBITDA of €80.1m (3M 2025) and €85.7 (3M 2024), respectively. Dermapharm 3M 2025 EBT Margin 21.4% 16.4%
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2025 2026 Financial calendar 2025 20 14 March 28 March Annual Report 2024 Sustainability Report 2024 Analysts‘ and Investors‘ Call FY 2024 15 May 12 August 13 November26 June 26 August Quarterly Statement as of March 2025 Preliminary figures for H1 2025 Annual General Meeting 2025 Half-year Financial Report as of June 2025 Quarterly Statement for Q3 2025 Preliminary figures for FY 2024 Dermapharm 3M 2025
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Disclaimer 21 This publication includes statements, estimates, opinions and projections with respect to the anticipated future performance of Dermapharm Holding SE (together with its consolidated subsidiaries, “Dermapharm”) and such statements, estimates, opinions and projections (“Forward-Looking Statements”) reflect various assumptions concerning anticipated results based on Dermapharm’s current business plan or publicly available sources which have not been independently verified or assessed by Dermapharm and which may prove to be incorrect. The Forward-Looking Statements reflect current expectations based on the current business plan and various other assumptions, involve significant risks and uncertainties, should not be read as a guarantee of future performance or results and may not necessarily be accurate indications of whether or not such results will be achieved. The Forward-Looking Statements only speak as of the date of this publication. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of Dermapharm and the estimates given herein. These factors include those discussed in Dermapharm’s financial statements which are available on Dermapharm’s website. Each recipient of this publication should make its own assessment of the validity of Forward-Looking Statements and other assumptions and, Dermapharm accepts no liability with respect to any Forward-Looking Statements or other assumptions. Except as provided by law, Dermapharm assumes no obligation whatsoever to update or revise any of the information, Forward-Looking Statements and conclusions contained herein, or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof. Dermapharm 3M 2025
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Dermapharm FY 2021 22 For information, please contact Britta Hamberger Investor Relations & Corporate Communications Dermapharm Holding SE E-Mail: ir@dermapharm.com Phone: +49 (0) 89 641 86 233