DERMAPHARM H1 2026 TRANSCRIPT TELEPHONE CONFERENCE

Speakers

Britta Hamberger

Christof Dreibholz

Andreas Eberhorn

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Britta Hamberger Ladies and gentlemen, welcome to Dermapharm's

H1 2026 Webcast and thank you for joining us today. With me is our Chief Financial Officer, Christof Dreibholz; and our Chief Marketing Officer, Andreas Eberhorn. Andreas and Christof will guide you through today's presentation and afterwards, we will be open for Q&A. Andreas, the floor is yours.

Andreas Eberhorn Thanks a lot, Britta. Also, welcome from my side. For the first half of 2026, I want to show you a few highlights which support the really favorable trend we see on the operational side, structured in a way as you know in branded pharmaceuticals, other healthcare products and parallel import segment.

If we look briefly at the branded piece, we see nice growth in our core business in Germany. Specifically, the brands where we focus on, where we put our investment in, really grow nicely and show both internally but also on the

German market, growth above the relevant market with brands like Myditin, Tromcardin, or Keltican and develop further nicely.

As you know, after the acquisition of Mucos business from

Nestlé, we had the task also to relaunch Wobenzym after a period of supply issues in the market, which is really nicely done in Germany. And end of H1, we already achieved a distribution rate in pharmacies above 60%, which means the brand is back and is nicely growing. So, this is a very favorable trend and as said, supports also the overall growth. And also the rest of the portfolio is showing a good trend in the German market.

If we look on another piece in the market, specifically the allergology portfolio, on the one hand, this is

Allergopharma, as you know. Here the trend continues since last year or last years. We see that we are the strongest growing brand in the injection market in

Germany. We have excellent internal numbers, both for

Allergovit and Novo-Helisen and outperforming the market as mentioned above the other brands.

This is done by very strong execution of our strategy during this tough process. We mentioned this in some calls where brands need to have new registrations for the

German market. Not everyone achieved this registration.

We have seen patient potential outside and we have been able to capture far more than our fair share of this potential. So, this helps us very much in the development of these brands.

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And the trend is the same if we look a little bit outside

Germany at the other international Allergopharma markets, specifically China, which is showing here strong development. Overall, we have seen strong growth in the

Allergopharma portfolio this year, with brands such as

Volon being used to treat allergies in Germany, where the season was quite strong.

Looking internationally, our Dermapharm affiliates continue to grow, fuelled by both the in-market portfolio as well as new product launches, we have specifically here of existing products of the Dermapharm group portfolio.

Moving on to the other healthcare segment, specifically looking at Arkopharma, Arkopharma is ahead of budget in in H1, and the new strategy, which is fully implemented at the beginning of the year, is producing consistently really good results. Spain and Italy are nicely ahead and growing above last year’s figures and plan.

France is on plan, and specifically in the French market, which is the biggest market, we see positive market signs.

For the last three months, our French business has grown above normal market levels, which is really great.

Looking at Euromed, we also have good numbers here, driven specifically by increased demand in Europe and

Asia for one of our extracts, Milk Thistle. This has also helped us to overperform our slightly lower US business, which is linked to the tariffs. So, there is some nice growth on the Euromed side.

These are not 100% there to compensate for the less favorable trend that we are seeing in two other businesses in the other healthcare market, such as Hübner.

Specifically in the German market, we are seeing a trend in the health food stores where consumers tend to opt for lower-priced channels, such as drugstores, rather than paying higher prices.

And for our medical cannabis business, Candoro ethics – specifically for Dronabinol, which is the biggest brand here

– there is increasing price pressure. This leads on the one hand to lower demand and on the other hand forces us to adjust our prices to remain competitive in the market.

In the last segment, parallel trade, this is mentioned, so we are continuously optimising our portfolio to identify further sweet spots. This limits the top line but maximises growth in profitability. This gives us a good overview of glance what happened in H1 and shows a very positive operational trend.

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And I would hand over to Christof Dreibholz.

Christof Dreibholz Thank you, Andreas, and good afternoon from me. My name is Christof Dreibholz. I will guide you through the remaining slides of the presentation. Along with the operational trends that Andreas Eberhorn explained, Q2

2026 has been impacted by the following non-operational

events. There are three

The first one is that we acquired 4.3 million in shares or slightly below 8% of our share capital for a consideration or a purchase price for the shares of 181 million. These shares have been redeemed in the meantime, and the equity number has been reduced accordingly. The equity ratio declines mathematically to approximately 24%.

Part of the share buyback has been debt financed. The corresponding leverage ratio increases to 3x adjusted

EBITDA. The leverage ratio is still below the covenant agreed with the financing banks.

In line with the provisions of the SPA that we contracted with Nestlé, the review of the purchase price calculation by the parties regarding the Mucos acquisition with the

Wobenzym product portfolio is not finalized yet.

A current purchase price allocation has been based on our best estimate of the final purchase price and currently points at a badwill of approximately 24 million. The release of this badwill is shown as other non-cash income and is adjusted at normalized EBITDA level.

Thirdly, the German Financial Supervisory Authority,

BaFin, is currently examining the valuation of a financial receivable as of December '25 and the two prior years, as well as the appropriate disclosure of a related party transaction. I will not comment on the status of the ongoing investigation.

We still believe that our valuation and disclosure have been appropriate and were in line with the underlying accounting provisions. As of June '26, we have reviewed the information that has been made available since the preparation of the year-end '25 accounts and the finalization of the audit for '25.

Most importantly, the competition among growers increased beginning of '26, resulting in a notable market price decline of recreational cannabis in the Netherlands.

This new information led us to record an impairment of the financial receivable of 30 million. This impairment expense is disclosed in the separate line as part of the financial result below EBITDA.

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If we look at the Q2 figures of the group, summarized on this Slide 5, the strong branded product momentum drives revenue growth and adjusted EBITDA margin expansion.

None of the non-operational effects mentioned before have had an impact on revenue and adjusted EBITDA in Q2.

The income from the Mucos purchase price allocation has been eliminated in order to arrive at adjusted EBITDA. The impairment expense regarding the financial receivable is recorded below EBITDA in financial result and the share buyback has balance sheet implications only.

The operational trends explained by Andreas Eberhorn before resulted in an approximately 5% growth of revenues, driven by the high margin German and international businesses. This led to disproportionate increases of adjusted EBITDA plus approximately 14% and

EBITDA margin plus two percentage points.

At reported earnings after tax level, the release of the badwill to income and the expense from the impairment of the financial receivable largely net out. Earnings after tax result increases by approximately 11% to 23 million.

The half-year performance summarized on slide 6 mirrors the Q2 trend with solid revenue and disproportionate adjusted EBITDA and earnings after tax results. The favorable operating performance in the first half 2026 further leads to a remarkable growth of the operating cash flow by 35 million, representing a 17 %-points increase of the cash conversion ratio to 65% of EBITDA.

The operating cash flow is not impacted by the non-cash, non-operational income from the purchase price allocation, the before-mentioned impairment of the financial receivable, and the balance sheet related share buyback.

As in previous webcasts, we bridge on slide 7 key elements of the first half in 2026 performance, leading to a growth of approximately 14 million at earnings after tax level. All segments contribute to EBITDA growth as explained before.

At earnings after tax result level, the net impact from the impairment of the financial receivable and the adjustment to EBITDA is approximately 5 million. The major amount as part of the adjustment is obviously the release to income in connection with the Mucos purchase price allocation.

Interest cost mainly for the syndicated loan declined following the covenant improvement, leading to a lower margin on top of the Euribor compared to last year. The

5 interest rate hedging terminated end of '25. Impacts from the comparison to Q2 '25 or the first half of '25 are minor.

Corporate income and trade tax payments also decline in the first half 2026 as previous periods have been impacted by payments for prior years. Depreciation charges are approximately at prior year level.

Slide 8, please. Briefly regarding the normalization adjustments, which mainly comprise the reversal of the income from the release of the badwill as mentioned before. Other adjustments are 2.4 million resulting from restructuring and other exceptional cost.

Slide 9: The strong operating performance lifts the interest cover to now nearly 8x, partially also of course impacted by the declining interest cost. As explained before, the share buyback leads to an increased debt number and a lower equity ratio following the cancellation in equity of the related shares.

Slide 10: The increase in assets, equity and liabilities is due to a combination of operational working capital related impacts and non-operational effects. Especially assets are impacted by the initial consolidation of Mucos.

Additionally, current assets increased from generally higher trade receivables, reflecting the disproportionate growth of the branded portfolio segment. Non-current assets also increased from the first-time consolidation of

Mucos. However, the impact is offset by the impairment of the long-term financial receivable.

The equity figure has been impacted by the cancellation of the shares that have been acquired as part of the share buyback, the reclassification of the dividend liability to current liabilities, and the earnings after tax result in the year-to-date June '26 period.

Non-current liabilities are higher following the contracted new financing in connection with the share buyback, and current liabilities have been impacted by several effects, including the reclassification of the dividend liability from equity, the preliminary remaining Mucos purchase price obligation, slightly higher trade liabilities, and additional financing.

Slide 11. Net working capital is approximately 9% higher than the level seen as of June '25, a reflection of the underlying growth in the business, especially in branded product segment. The increase in inventories and trade receivables is only partially offset by higher payables.

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The growth of the business, being the main driver of the net working capital, can be seen in the trend of the working capital days, especially the unchanged cash cycle of 76 days. Slightly higher DIO and DSO are offset by a cut-off driven increase in DPO. Please note that the average quarterly DPO since Q1 2025 was 75 days i.e. in between the DPO as of June ‘25 and June ‘26.

Slide 12. H1 2026 shows a remarkable increase in the cash flow from operating activities compared to prior year, and also this KPI underlines the very good operational performance of the business. As explained before, the non-operating Q2 events have had no cash impact i.e. the operating cash flow represents the underlying operational performance of the business.

Main contributors are the underlying EBITDA improvements across segments and sustainably lower tax payments. Recurring CapEx was approximately 22 million in in H1 ‘26, slightly above prior year level. Details of the improved operating cash flow are shown on the next slide

13.

Along with the improved cash EBITDA as mentioned before, operating cash flow is mainly impacted by the sustainably lower tax payments as prior year was burdened by tax payments related to historical financial years ‘22 and ‘23.

And finally, the outlook. Based on the H1 results and the scheduled agreed forecast, we confirm the outlook for

FY26. Growth is expected to continue driven by portfolio expansion, seasonal demand for anti-allergy products, international growth and improved product availability in the branded segment. No material impact from the German

Financial Stabilization Act is anticipated for the remaining year 2026.

Revenue growth in other healthcare products is expected to recover in H2, supported by continued momentum at

Cernelle and Euromed, and a strong second half at

Arkopharma. And in parallel import, the positive earnings trend is expected to continue further, supporting profitability. Thank you very much.

I hand over to Britta.

Britta Hamberger Thank you, Andreas and Christof. Now we can open the

Q&A session, please.

Operator Ladies and gentlemen, we will now begin the question- and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. You

7 will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question.

Anyone who has a question may press star and one at this time. One moment for the first question, please.

And the first question comes from Christian Ehmann from

Berenberg. Please go ahead.

Christian Ehmann Hello, everyone, and thanks for taking my questions. I have a couple. So, first of all, I would like to know more please about the impairment from the financial asset from the recreational cannabis company. Is there any more risk of further impairments from this kind of participation?

The second one would be, how do you plan to use the significant positive operating cash flow you have? Can we envision something of debt reduction in the future and then subsequently what can you do with the kind of reduced leverage originating from this?

And the third one would be in regard to the BaFin on-going investigation. I appreciate that you set a bond comment on the on-going investigation, but are there any further downside that you can envision at this point? Thank you very much.

Christof Dreibholz Thank you for the questions. The impairment of the receivable and the BaFin investigation are the same. So I would answer that together. This financial receivable resulted from the unwinding of a contract to acquire a participation in a Dutch cannabis grower called FYTA.

The payment for approximately 20% of the participation in this business years ago was EUR60 million and this represents the purchase price we paid um for the participation. The receivable now um is in total EUR65 million resulting from this purchase price payment less a payment of EUR10 million received from the sellers since the unwinding of the contract plus interest cost.

FYTA itself, so this grower, exceeded to the contract and

FYTA is a leading grower among a number of grower who are engaged in a Dutch governmental program to legalize the sourcing of cannabis by Dutch coffee shops, i.e., or in as a result, economically, the financial receivable that we disclosed will most likely be settled by payments from