DERMAPHARM Q1 2026 TRANSKRIPT TELEFONKONFERENZ

Speakers

Britta Hamberger

Christof Dreibholz

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Britta Hamberger Ladies and gentlemen, welcome to Dermapharm's Q1 2026 webcast and thank you for joining us today. With me is our

Chief Financial Officer, Christof Dreibholz. Christof will guide you through today's presentation, and after which we will open the floor for Q&A. Christof, over to you.

Christof Dreibholz Thank you very much, Britta. Good afternoon also from me.

My name is Christof Dreibholz. I will guide you through the numbers, starting on Slide 4, please.

We're looking at the Q1 figures as a Group with again a positive development. While revenue growth was 1.1% over

Q1 2025, adjusted EBITDA increased by a remarkable

7.5%, leading to an adjusted EBITDA margin of 28.6% of revenues, 1.7 percentage points above the corresponding quarter in 2025.

All segments contribute to this growth. Main drivers are the

German core business organically across all entities in the branded product segment, with a strong performance of our focus products, i.e., products that are marketed by our sales force. And inorganically -- and inorganic growth stemming from the initial consolidation of Mucos, that is the

Wobenzym product range, and Trenka.

Furthermore, Euromed and Arkopharma in the other healthcare product segment. Arkopharma's refocus of the business model is on a very good track with a full sales force team on board and pharmacy measures, i.e., displays, trainings, and challenges executed, plus launches of new products.

Euromed is negatively impacted by US tariffs, with US sales declining, but able to more than compensate through increased sales to the EU and Asia. Lower sales to the US mean less tariffs than budgeted, with a favorable impact on results. And parallel import business significantly improving its results, 1.6 million compared to prior year, following the execution of the gross margin optimization program.

At earnings after tax level, the higher EBITDA results were accompanied by lower interest cost, while tax expenses are at prior year level. Interest expenses were positively impacted by a step-down in the margin following our continued deleveraging.

Slide 5, please. Here we bridge key elements of Q1 '26 performance leading to a growth of approximately 12 million at earnings after tax level. Again, all segments contribute to

EBITDA growth as explained before. Hence, let me make a few additional remarks regarding the vaccine business and

M&A. BioNTech revenues continue to be nearly exclusively

2 from the pandemic preparedness program and are hence unchanged. As you know, the contract will expire mid of

2027.

The integration of Mucos is starting well. After initial investments of time and money in sourcing, production, and logistics, sales are developing as planned. Q1 result is still subject to finalization of the purchase price calculation and also the allocation of the purchase price. Preliminary numbers with the purchase price allocation still ongoing show a badwill of 4.2 million, which was released to income and adjusted at EBITDA level.

Trenka is showing a positive EBITDA. Deliveries to some

Middle Eastern countries have initially been delayed by the

Iran war and are now partly rerouted through the Red Sea to and via Saudi Arabia.

The interest rate hedging terminated end of 2025. Impacts from the comparison to Q1 '25 are hence minor. Interest cost, mainly for the syndicated loan, improved following the planned reduction of debt and the related covenant improvement, leading to a lower margin on top of the

EURIBOR compared to last year, minus 25 bps. Tax expenses and depreciation charges are approximately at prior year level.

Next slide, please. EBITDA normalizations mainly comprise the reversal of the income from the release of the badwill as mentioned before. Other adjustments are half a million resulting from costs in connection with the acquisition of

Montavit and Trenka and are in total minor.

Slide 7, please. This slide shows net debt and the equity ratio development mirroring our value creation through continuous debt reduction and at the same time the deployment of significant cash amounts for acquisition growth, especially in 2025. Net debt has been continuously reduced over the last quarters following the amortization payments regarding SynLoan tranche B with 25 million per semester and the scheduled repayment of the promissory note loan.

Net debt decline as of March '26 was mainly driven by a favorable net cash flow trend of plus 27 million compared to

Q1 '25, with a 22 million increase in cash since December

'25. The leverage ratio is comfortably below 3x at 2.6x and hence even slightly below Q4 '25 with 2.7x EBITDA. The interest cover ratio, that is interest expenses compared to

EBITDA, has again improved to 9.5x from roughly 7x in Q4

'25.

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Equity ratio steadily increases to now 32.3% due to positive results. The dip as of June '24 and '25 that you see on this slide is driven by the reclassification of the dividend to liabilities settled beginning of July each year.

Slide 8, please. Our net assets and liabilities increased to

2.3 billion over December '25, driven by increased current assets, mainly higher inventories from the Mucos acquisition, slightly higher trade receivables, and cash as explained before. This has been financed through increased trade payables and other current financial liabilities including the preliminary purchase price settlement amount for

Mucos. The equity number increased from retained earnings.

Next slide, please. Net working capital is at the level seen as of March '25, a reflection of the underlying seasonality in the business. The increase in inventories and trade receivables is offset by higher trade payables. The respective days mirror the trend of the absolute numbers, i.e., the underlying drivers including growth in revenues, inflationary production cost increases both in terms of labor cost and cost of materials, and the necessity to hold certain buffer stocks.

And these impacts remain unchanged. DPO increases cut off-driven by 11 days to 83 days, December 25 was 72 days, with a favorable impact on the underlying cash cycle. Slide

10, please.

Q1 2026 shows a remarkable increase in the cash flow from operating activities compared to prior year. Main contributors are the underlying EBITDA improvements across segments, sustainably lower tax payments, and cutoff-driven higher trade payables. Recurring capex was approximately 9 million in Q1 26 and hence at approximately prior year level.

The resulting free cash flow is 51 million and 46 million above prior year. The cash conversion rate is 68% and approximately at the level of 25 with 72%. Details of the improving operating cash flow are shown on the next, Slide

11.

Whilst cash EBITDA improves in line with the earnings before tax result, the favorable trend of operating cash flow is mainly impacted by the slower increase of broad working capital as discussed before and lower tax payments as only a small portion of tax payments still relate to historical financial years '22 and '23.

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And finally, Slide 13, the outlook for 26. Based on the Q1 results and the comparison to plan, we confirm the outlook for FY 26. Thank you.

Britta Hamberger Now we would like to hand over back to you to open the

Q&A.

Operator We will now begin the question-and-answer session.

Anyone who wishes to ask a question may press star and one on their telephone. You 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.

Anyone who has a question may press star and one at this time.

Our first question comes from Gerhard Orgonas with

Berenberg. Please go ahead.

Gerhard Orgonas Yes. Good afternoon. Thanks. Can you just update us on the situation of your share buyback program, when you plan to cancel the shares, and the current free float?

Christof Dreibholz Yes. So the share buyback program was effective beginning of April and hence is obviously not reflected in our Q1 numbers. We acquired roughly 4.3 million shares and we have taken all necessary steps to redeem the shares. The only outstanding step to my knowledge is the registration of this reduction in the commercial register, which is only for declaration purposes. And hence from April onwards, our share capital is reduced by these 4.3 million. And hence the free float, since we acquired approximately 8%, the free float is reduced accordingly, so should be slightly above 10%.

Gerhard Orgonas Okay, thank you.

Operator As a reminder, if you wish to register for a question, you may press star and one. Looks like we have no more questions so far.

Britta Hamberger Okay. Thank you for joining us today. If you have any follow- up questions, please do not hesitate to contact me after the webcast. Thank you.

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