Good morning, everyone, and welcome to the Medios Capital Markets Day 2026 here in Breda. I would also like to welcome our participants joining us online. My name is Katrin Neuffer. I recently joined Medios as Head of Investor Relations and Communications. It is a great pleasure to accompany you through the day. Great to meet many of you yesterday, and thank you for the great talks. The networking dinner was perfect, I think. Today we will build on these conversations, give you a deeper understanding of Medios, our strategic direction, and the value creation potential ahead of us. Thank you for joining us and investing your time and getting to know Medios Next Level. Let me guide you through today's agenda. First, we will start with the management presentations. Thomas Meier will set out the strategic framework for Medios Next Level.
Christoph Prusseit will then explain how Specialty Pharma Supply will contribute to the strategy and its role as cash engine. Then we will have a short coffee break. Constantijn van Rietschoten will then talk about compounding and the group's earnings growth driver. Stefan Bauerreis will connect the strategy to our financial targets, reporting framework, and capital allocation. Then we will open the floor for Q&As for your questions. Some practical information. We sent out a press release this morning, and you find it in your bag. If you would like to have a look, you have the presentation, the printout of the presentation, and you can find a QR code on the back of your badges where you can download the presentation if you would like to work in it. Then we have Wi-Fi that is here if you need it. These cards, they are everywhere here on the table.
There you find the access to the Wi-Fi. We have a live stream today by popular demand, so to say. We will also produce a video, and this is for our website. The camera will only record our executive board members, so the Q&A will not be published on our website. We take questions from participants in the room only. Then after the lunch, we will divide you into four groups. You have a colored dot on your badge, and there you can find which group you are belonging. Signs will also help you to find your group, and the groups will switch between Ceban, the Ceban site visit, and a compounding showcase here in the hotel.
So you have the opportunity to see our people, our processes, our facilities, and behind Medios and Ceban. At 4:00 o'clock., we will meet again here for a short wrap-up and discussion. Information for our online guests, the streaming will end at 12:00 o'clock. With that, I would like to hand over to Thomas. He will introduce Medios Next Level and our strategic direction through 2031. Thomas.
Thank you very much.
The floor is yours.
Thank you, Katrin, and welcome everyone here in the chapel. I say chapel, Katrin said Hotel Nassau. For the live audience, we are here in a fantastic chapel. It was built many years back and turned into an orphanage by Franciscans nun a couple of hundred years back. The atmosphere is just very beautiful, and it gave us a very nice environment for our dinner last night. I am happy to see you back, and I want to quickly reflect on the dinner last night. We talked about Nassau because of Hotel Nassau, and at the tables, I learned even more about it, that there was a free table in Göttingen where students could eat, and so on and so forth.
What was even more remarkable for me was the sensation and the feeling that everybody was very interested in Medios, was very positive about it, and was very excited to hear what we present today. I cut to chase here right away and we go into the presentation. We have many things to explain, and we are looking forward to your questions. I cannot start without saying thank you to everybody who organized this here. It was the Breda team, the Dutch team of Medios, and it was people in Berlin and within the group. They put so much work and effort in it. It was a great process to arrive with this product we have, and it was fulfilling. Thank you all. You did a brilliant job.
Looking at the agenda, it is framed about five questions we wanted to answer as a team when I started as CEO and when we prepared for this meeting here. The first question is: what matters in the market? The second question was: from what foundation starting point are we building? The third is: what influence, what change, will Medios' next level have on the positioning and the organization we are? The fourth question is: what actions will drive the next phase? The fifth, importantly of course, what financial profile we intend to create till 2031? For all those questions, you will find answers in my presentation and in the presentation of my colleagues. I will start with the forces that transform healthcare. You all know therapies are becoming more specific and more personalized.
At the same time, preparation, handling, and delivery of those therapies are more complex. Our healthcare systems, they need a reliable supply. Resilient supply is important. At the same time, we see digitalization and AI changing how those services are delivered. Also, why we talk AI and innovation is changing and making the new medicines of tomorrow. One thing is very certain when you think about the medicines of tomorrow, they will be more complex than what we have today. In addition, we have increasing requirements for quality, reliability, and cost-effectiveness. This all calls for specialized capabilities. So having seen that, one is clear, those trends, they are cutting through Europe, even if every country has individual registration and legislation. The underlying trends are consistent through Europe and to developed countries.
There is a lot of great opportunities for a company with specialized capabilities like Medios to profit from those underlying trends in the mid and long term. That is what Medios can do. We can offer secured access to the market. We can offer our partners that we help them to navigate this complicated landscape and be more cost-effective. We can offer patients, via our compounded products, individual treatments. All that is what Medios already does, and we want to do more of exactly this. How are we going to do that, probably is a question you ask. The answer is very simple to me. We just build on the fundament we already have in place. We have access to the market. We are helping individual patients. We have regulated operations.
We want to continue to work on that strength, and this presentation will show you how that is organized. Now we talked about the forces, the wind that is blowing out there in the market. In this slide, we are talking about how large, how big is that market. You see a very robust market. You see 9% of the EU GDP is spent on healthcare. If you want to have more tangible numbers, EUR 33.8 billion Specialty Pharma revenue in 2025 in Germany, an increase of 11.6% year-over-year. So we have a big market, and we have a structurally growing market due to demographics and due to the desire of all of us to live a healthy life, a longer, healthy life. Prevention comes in too, helping you even in the years where you are at best health to have a better life.
There is structural growth, and there is also a shift towards Specialty Pharma. That is where we are, towards more complex, more individualized medicines. Medios is clearly sitting in that space. So we have a big market, structurally growing market, and Medios positioned where the growth really is. I want to round this up to say that our estimates is that compounding in the Netherlands and in Germany is growing around 7% year-over-year. So a really good positioning, and that is why we want to stay where we are, and we are quite happy how it looks. But one thing is also clear. We do not work in isolation. We work together with our partners and stakeholders. You see five partners and stakeholder groups here. The first ones are the pharmacies.
If you want to understand how we can win for Medios, it is important to understand in what kind of positioning those partners are that we connect through our services, that we help making their business. The pharmacies, of course, we all know they are under substantial economical pressure. They are looking at ever more complex logistics that they need to fulfill. They have increasing networking capital requirements. The hospital, on the other side, they need flexible capacity. They want flexible capacity, and they want reliable access. We can deliver that. I think hospital and clinics, we can lump them together. They are pretty much the same constituency here. Then we have the medical specialists. They need dependable data and efficient processing. Finally, the pharma companies. Pharma companies, big companies, they need access to a fragmented market, and they want seamless execution.
They cannot deal with problems with their partners. In that ecosystem, we have a network of trusted partners that we help delivering their services, and we feel is very difficult to replicate, and we have a unique positioning in that market. In comes regulation. Regulation is something that is there and gives us a framework. For me, it cuts in two dimensions. One is pricing and reimbursement. The other one is authorization and access to markets. If we look at this framework gives us a leveled playing field where Medios can position itself towards competition. At the same time, and I think we all agree, the positive of regulation, of course, and the very central task is to make sure that patients get the medicine they need, they get the quality so that they are safe. Clearly, regulation is a positive.
Yes, I understand if the regulator comes in and reduces the price, that is short-term pain for everybody in the market, no question. But what we want to get out of that short-term pain is long-term gain. That is the task we give ourselves. How are we going to make that? First of all, we have to understand that regulation, how it is built up. We are in constant exchange with the regulatory body, with the politicians. We are in exchange with our partners and competitors to understand where is this regulation? Where is this market driving? What can we do to win the market today and in the future? One thing I think is quite intuitively clear is that if you want to win in that market, and if you listen to where the regulator is bringing it, there is no argument about quality. Quality is a given.
There is an argument how you get the best cost structure. That is where operational excellence for us becomes strategic. We need to have cost leadership so that we can act when the regulator comes in and reduces the top line, and we still have room to breathe and take on additional volumes so that the absolute numbers maybe remain the same or even go up or down a little bit. In the long term, also our profit margin comes up again. So very important, regulation is going to stay here. Short-term pain, long-term gain. The question is not when the next regulator action. Yes, it is when the next is coming, but not if. So if it is not a question, but when is the question we are targeting. We want to understand where it is going.
With that, we look at the last 10 years, and I think it is easy to agree with me that this is a success story. Over 10 years, Medios built a business of over EUR 2 billion . It is built a business that is strong in terms of partners, in terms of businesses that it is dealing, and we therefore can start from a position of strength when we are building Medios of the future. We must recognize the entrepreneurial strength of the people working in this company over 10 years, having that drive to bring it to that level and increasing profitability going forward. It was done with selected acquisition and organic growth. What we now need to do going from here is an evolution for the next step or the next level, as we say.
On the next slide, I will explain to you how we open this next chapter in our company history. Over the last 10 years, the markets have shifted, the market have changed, and so has Medios. Today, we compound complex medicines. We deliver pharmaceutical ingredients. We navigate complex regulatory landscapes and processes, and we help our partners for compounded products and services. So we do so much more than just being Specialty Pharma. That is why we call it a larger Pharma Services Group. To reflect on the company we already have become and also give the direction where we want to grow. We want to grow in the higher value compounding business and with services. So that is the positioning as a Pharma Services Group. What does that entail for our organization?
We wanted to build the new organization according to our positioning, and we decided to reduce the three segments to only two, the Compounding segment and the Specialty Pharma Supply segment. So we have two operational segments that have clear leadership structure, that have clear processes, and deal with their independent business specifics. This sounds pretty simple on paper, but of course, putting that into action, there is much more behind.
We change leadership, we change reporting lines, we change how we communicate within the company, and we adjust how we communicate with the outside world. Lots of that work is done. Stefan will explain you in detail how it looks from an organizational perspective, and we are working on figuring out exactly how we do the leadership structure to lead this company going forward. Why did we change to Pharma Services? I think I talked about it in some length.
We wanted to reflect better the Medios of tomorrow. Not to be seen as a wholesaler, specialized wholesaler, but a specialized wholesaler and a compounding company, was the impetus behind that. We wanted to also give more visibility to the entire offering that we have in the company by the term pharma services and clarifying for our customers as well as the company inside what we are doing. Why two operating segments? Those are two distinct business models. We feel if you communicate that to the outside world as it is, globally or European, for the compounding will give us more credibility, more clarity, and more transparency. We wanted to bring the compounding together. I know that the Dutch business and the German business in compounding is not identical, but they have some similarities. We felt that we can lead them better under one umbrella.
We want to sharpening execution to make sure that we get the best out of our execution and also have internal KPIs that follow through with that. We are with those two segments in a very attractive niche. On the one hand, we have the pharma companies. Pharma companies are large, standardized companies that have global scale and outreach. On the other hand, we have pharmacies, very local business that at times might be challenged with increasing quality requirements, that might be challenged with the network capital demand that they are seeing. Medios kind of builds the bridge between those two worlds, and at the same time is working at the same industrial level with high quality and relatively low costs. We have a partner network of around 1,000 people.
Just to put some numbers on it, in our network, for example, we built more than 1.5 million dose or deliveries for patients last year. We have scale, we bring breadth to the market, and we touch many people's life as we operate. We are one source Specialty Pharma. We have compounded services. I talked about the scale. We bring scale to the market. We have a relevant scale when it comes to supply. We have GMP networks that can serve as a backup for hospitals or pharmacies when they need us because we have the flexibility built into our scale. We have the knowledge for regulatory and pharmaceutical expertise. We have high-quality standards and efficiency and a strong and reliable partner network. That is the strength of Medios. We want to continue to build on this strength.
We also listened to you and many other people who said, "Well, that is all fine, but it's all a little bit complex." I think this in a nutshell shows it again that it is not that complex, but it is pretty straightforward. We have here our suppliers. Those can be API suppliers or pharmaceutical companies. They are selling to us APIs or licensed products. These licensed products then are bought, for example, by Specialty Pharma supply and then sold to pharmacy, hospitals or clinics, or used in our compounding. That we take licensed products, we compound them, and then have outsourced products and services that then again are sold to pharmacies, hospitals, or clinics. In the compounding, we can also take the API and compound that API, for example, in times of shortages, to deliver outsourced products or services.
Or we take the API and sell smaller portions of that API directly to pharmacies, who then do the in-house compounding. All this is driven by the attributes and the knowledge I just explained a minute before, and it makes a very nice company that is based on knowledge innovation. That is not the only thing. We work them individually well, but we all agree in our leadership team that we have synergies between the Specialty Pharma and the compounding. Those synergies are strong, and those synergies are also setting us apart from our competition, and we believe that we are pretty unique in what we have. If you want to spit out the synergies, we believe in procurement there are relevant and substantial synergies. We believe that in knowledge, there are synergies between those two segments.
We believe that in access to the market as well as in cross-selling, there are synergies because the end market is the same, almost identical. Also in sourcing, we are working with similar suppliers. Synergies being it here in our business model or when we do acquisition with Caelo, they are kind of intuitive to spot, but they are a little bit harder to really get to work. We will be very diligent that we can profit even more from those synergies going forward. Now we are talking about next level. That is the flavor of the day. At the same time, it is not something that will start tomorrow and today is only on paper. I wanted to bring three examples that we started that work a couple of weeks and months back.
If you are in business, there are many beautiful days where you are successful, where you can talk about how great you are. But you all know that behind every success, there are also tough decisions. Tough decisions are here the first two, and we have taken them over the last couple of months. It was not easy, but I am happy that we are where we are. We decided to discontinue advanced therapies. Advanced therapies, it turned out, has a high capital demand, and many of the core competencies we need for that business were not within our company yet. At the same time, we also did not reach the scale yet we wanted. So we decided in favor of focus and speed that we cut that loose and we let it go. Then we optimized.
Optimization is ongoing all the time within a company, but we kind of accelerated that to some level and decided that our Aschaffenburg site in the network was no longer necessary or warrant the capital we must spend to keep it in our network. So we decided to close it, knowing the personal cost, the hardship we cause, because we felt it is necessary for the health of our network. We unloaded those customers to other sites. They are still within our partner network, but we closed Aschaffenburg. This optimization of networks will never stop. We have to look how the market is developing and what is the best way to serve, and that is the optimization of the network. Once you have done this work, I think you are ready for grow.
Then we decided to acquire Caelo because we want to get stronger in our pharmaceutical ingredients business. We felt that this bolt-on acquisition in Germany makes a lot of strategic sense and that we did not overprice it. Make no mistake, now the integration of Caelo is working. We are working to bring it together with Magis Pharmaceuticals. We bring it together with our Spanish colleagues, Metapharmaceuticals. This integration process, again, has elements of discontinuation and optimization. It is not an easy process, but we go through it as one team. We focus on it to make it successful for the future. That is Medios next level. It is those incremental steps to become even more successful going forward and staying where you are.
You see trends here that shape our business. They are mainly positive. We want to profit from those trends for sure. This needs the drive to continue the transformation of the company. We are moving from a Specialty Pharma supplier with logistics and compounding into a more technology-focused company in a focus that has semi-industrialized compounding and in a company that is vertically integrated. We have no time to lose. We start this process. We are going on it. We believe that we can profit if we continue this way. It is the optimization within the company that is central. Also that we think about innovation in a very structured way. We see innovation potential going forward. We see that especially in automation, digital, and AI use cases.
We want to have a strong process around innovation so that we make sure we sieve the ideas very well. We take the ones that we believe are viable. We run to make them profitable and implement it in our company. We will see examples of those initiatives in the follow-on presentation, in compounding. You will see that we have good ideas. We will generate results with those innovation. The growth story has four pillars: operational excellence, growth initiatives, international expansion, and value-accretive M&A. Operational excellence is key, as I mentioned. Getting the network right, getting the cost structure right, having cost leadership is an imperative for us. We want to increase focus and speed with operational excellent measures that are active in the manufacturing sites for first time right, reduce scrap produced.
We want to have operational KPIs and financial KPIs that help us steer this company and show what makes us successful. Growth areas we are touching on in our presentations are hospital and clinics. We see that a lot of work is done in the hospitals. We feel we can help them with flexible capacity and reliable access. API essentials, Caelo, the expansion in Germany, those pharmaceutical ingredients, we see that there is a market that helps us and brings the revenue that we like. We will also have a go-to-market push because we believe in the markets we are active, we can further win potential customers.
Pharmaceutical entrepreneur is another field that is a Specialty Pharma supply, where we take on older brands that pharma companies don't focus on anymore. We can help with our network to make them successful for a longer time and help patients to stay on the drugs they need. We want to bring around EUR 300 million additional revenue in the next five years via organic, via M&A. We accept that there is skepticism about M&A always, and I understand why, because it is highly complex. We will be disciplined doing M&A, and we will not do M&A if we have problems. We will do M&A if we see that there is a strategic fit and that it will help our value proposition. With those elements, we set ambitious goals. We believe that in 2031, that is on the right side here, we can achieve EUR 3.1 billion revenue.
We can achieve an EBITDA adjusted EUR 170 million. You read right, adjusted. Stefan will explain what is the difference between pre and adjusted. We want to become more transparent, so a little bit of a change there. Overall, the compounding business, we believe that we can double it. I know this is not an easy task we give ourselves. It is an ambitious task. It is also something that we will follow through over the next years. That is the financial profile we target to create till 2031, and we will keep you posted on the progress. At one point, we have seen the Medios house from the top. Every company is built from the bottom. It is mainly the people and the culture that make it work, that make the machine work.
We also want to have innovation as another strategic priority and sustainability, customer centricity and service, and operational excellence and quality. Those are the elements that we will build the Medios house on. We will empower the entire operation, the entire group, the entire team to fill that with initiatives and measurable progress. Then on this fundament, we build the entire Medios house. That in turn is what I explained so far. A pharma services group, if you go from the top and the target profile on financials with the compounding and the Specialty Pharma segments serving pharmacies, hospitals, clinics, medical specialists, and pharma companies. All then underlined with initiatives and as a group endeavor. What we have is structural growth drivers. I think I explained them. That was the wind that is blowing in the market. That is the structural growing market.
We want to focus and give you transparency in what we are doing going forward. We want to have operational excellence, not as a boring must-do exercise, but a strategic pillar of our cost leadership. We will fuel the growth based on what we already have. We can build incremental our next level. We will be disciplined how we create value for all stakeholders of Medios. That is the promise the entire team gives you, and we will go this way. Thank you very much. I know Katrin is waiting. Thank you.
Perfect. Thank you. Thank you, Thomas. We will now take a closer look to Specialty Pharma Supply. Christoph Prusseit, our Chief Business Officer Germany, please go ahead. He will explain the role of the business in Medios Next Level and its contribution to cash generation. Go ahead.
Thank you very much. Thank you, and also a warm welcome from my side. Thanks for investing your very valuable time to either come here on site or being online with us. Let's dive into what we call the high-performing cash engine, our Specialty Pharma Supply. We jump right into three examples that I brought today that we are really proud of. Let's go back quickly, not too long, into the COVID pandemic time. Borders were closed globally. That also affected the pharma supply chains, partly massively. What we could achieve here is for certain products, these are the global lines, we could ensure some sort of contingence that we had in stock to keep supplying our partner pharmacies and the doctors and the patients that we all serve together. That was only possible due to a long-standing relationship to these companies. They trusted us.
They knew we are the platform in Germany that they can rely on. That is one example why relationship in the pharma world matters. The second one, hemophilia. That is what, Thomas, what you said, regulatory is not always bad. It is potentially short-term pain but long-term gain. Here, we anticipated a change in the law that came into effect at 2020. Hemophilia products, until then, the previous three decades, were directly shipped from the big pharma companies to the prescribers, to the doctors. We anticipated that change to happen, that the products needed to be shipped through wholesalers and pharmacies. As we are running and serving a very potential pharmacy network in Germany, we positioned ourselves as, let's say, the hinge in that new era where the pharma companies need reliable partners in the wholesale area and in the pharmacy area in Germany, that is focusing now on Germany.
We prepared the partner pharmacies with knowledge that we already had. We co-founded a specialist association, Verband der Hämophilie-Apotheken , very successful. As a wholesaler, that is still unique for this product range, we are running a 24/7 emergency hotline. Why? Hemophilia products, they must not run out and if you need a very immediate supply, and in the beginning, that was a big anchor for a new structured market. We had these tasks the first weeks and month where we had to rush, partly from Berlin or Hamburg, all the way down to the Allgäu, a southern German region, in order to provide patient needs. That was very successful and a lot more than normal wholesalers would ever do. The third example is we are acting as pharmaceutical entrepreneur. The German phrase is more correct, "pharmazeutischer Unternehmer." What does that mean?
Well, we've built out new regulatory capabilities in-house. You can do that. That is not even expensive. You need the right people and the qualification and the drive to do so, in order to be able to take over brands, like Thomas, you mentioned it, old brands or also brands that are necessary for patients, but just not in a big scale for the pharma company anymore. We can take over exclusive distribution rights with partly full regulatory mandate and management. So a good example how we can secure certain supply, and at the same time, a nice example how we want to evolutionize the pharma wholesale area. Why? Because these services can unlock higher margin potentials. Our market we are operating in is more or less independent of cycles, is structurally growing. We heard that. The market will grow steadily, especially in that prescribed drugs.
The Rx means prescribed drugs, and they are also the specialty products. For us, it's rather low capital intense in terms of infrastructure. We also see an increasing complexity in the products. Example is here the market of oncology. That is a very wide and broad field, but these two figures show something that is the truth and that will fuel future growth. When you compare the time between 2015 and 2019 with 2020 to 2024, there are 67% more novel active ingredients or active substances launched globally. At the same time in 2024, 74% of the ongoing oncological trials focus on rather rare cancer modalities.
Smaller patient cohorts, more products, smaller groups of patients can be targeted, but that also means the complexity increases, which for us, especially pharma wholesaler, means we need to understand these products in order to be a reliable partner for the pharmacies, the hospital pharmacies, and for the doctors. In our eyes, the specialists are clearly needed here. You know that the Specialty Pharma supply segment is based in Germany and focused on Germany. Here are some figures of last year when we have a total spending of almost EUR 75 billion within the pharmacies, EUR 63 billion account for the prescribed drugs, the Rx drugs, and more than half of that accounts for Specialty Pharma products. Within the EUR 33 billion, not every product is something that we target, but it shows you once again the market is very big.
When we try to estimate a market growth, then we see a continuing in the growth rates, as I don't see prices coming down in a massive way. Our position here in that market, based on the figures, we are coming from the prescribed drug market, go down into our Specialty Pharma area. These are numbers when we see 38% of the Specialty Pharma drugs are sold through specialty wholesalers. Also, again, here, a lot is based on our experience and certain figures that we could find. But again, here, when we see our position that we are already accounting for 14% in the Specialty Pharma wholesalers, we are in a clearly leading position. Some of you will have seen that slide in previous company presentations already. What does it show? Coming from the pharmacy side, based on the German numbers.
At the moment, Germany, the trend is clear. Pharmacies numbers are declining. We are still having 16,500 pharmacies. We target somehow 1,000 of them that we still consider as specialty pharmacies in Germany. From over 100,000 pharmaceutical products that are available in Germany, we focus on the percent, on our Specialty Pharma portfolio, which accounts for 1%. Compared to wholesalers, general wholesalers that partly run up to 20 regional warehouses to be close to their customers, we only have our two central warehouses in Berlin and in Marktsteft. With that set up, we still target EUR 33 billion. I think it's still a very highly focused and very efficient working specialist platform that we have in the Specialty Pharma supply.
Looking a bit into the business now, and once again here, we change from pharmaceutical supply PS segment to Specialty Pharma supply because it's very important to underline we are a specialized wholesaler. We are not going into the full range. We keep our focus on being specialized, so we source primarily directly from the big pharma coast, serving our partner pharmacies and hospitals. We do that in the segment with four companies. Again, here, roughly 1,000 products. Our little bit more than 100 people are very diligent hard worker, and I think we could not imagine a better team to provide these services and figures also, finally. A second very small portion to the Specialty Pharma supply segment is import and export. That is necessary.
That is not our core focus, of course, but we can reduce dependencies from single sources, and also exporting, serving other countries, apart from Germany, is important and is also part of a synergetic approach with our colleagues in the Netherlands. Here again, under the umbrella of the pharmaceutical supply, our work as pharmazeutischer Unternehmer, I explained already a little bit what the goal is, unlock a higher margin potential service and also keep certain products on the market. That is some figures. We all know them. I think it shows a nice and strong top-line growth during the years, and a very strong for our pharmaceutical supply and wholesale margins, a very strong margin that is stable. Of course, the 2.7%, which we are running at at the moment, we will see it later. We want to get back to the 3%.
That is clear to even become, again, a very high margin for our wholesale department-driven company. Talking about the portfolio, there we have to think about a few things. What do we offer? Who is it for? What does the customer need? We always try to balance out products that make sense for our customers and for ourselves. We don't want to restrict ourselves only to these six indication areas, but it gives us a clear framework. That's where we believe we are very strong in. We have business relationships to the big pharma companies that produce these products, but it's not that they restrict us. High price, high margin specialty medicines, that's what we are operating in. Here, we have to find the perfect balance. What do we offer to have a resilient portfolio?
I think it would be a big mistake to only focus on one or two indication areas here. It is good that we have a bit of a variety in that portfolio. Comparison, or you can also say, where do you want to differentiate yourself from? Compared to the pharma wholesalers, the full range wholesalers, they have a bigger top line. That is clear. They have a full range and compared to us, we are the specialists. We want to focus more on the advantages that we want to give to our customers. The dual offer, let's say, between specialty wholesale products and our compounding services is very valid because the customer is primarily the same. The products and the services can be combined in a very efficient way.
That means both in the compounding area and the specialty pharma supply area, we focus on that specific portfolio. Remember, we only run two central warehouses, so that is a lean and mean structure. We further try to reduce logistic costs and in-house costs to be able to provide good prices. That is what counts for our customers, trust and facts. Trust, they have to trust us as a company and the acting people, and facts, they want to have the best prices. That is what wholesale is about. By certain measurements, we are, I think, doing pretty well in providing both of the aspects. Part of the story is that we have longstanding and close relationships to our industrial partners. They know we can handle their products, whether they are high priced, whether they are complex, so they like to work with us.
Looking into the future is basically what we did, is what we do, and what we will do in the future to further grow, optimizing the margin, manage the cash very well because we are handling a lot of that with the high price drugs. Clearly, message we want to grow selectively because we want to grow profitably, not only top-line growth. A little bit more on the following slides. Margin over volume, I would say easier said than done in the wholesale area. We have to find a good way to steer customer groups, products. We implemented, twice per year, a strategic look onto our portfolio and an even more often look onto our customer groups because sometimes customer demands change, and we want to be the perfect partner and the preferred partner. It is always two sides of the table.
Do we fit together as specialty pharma partners? A granular steering of products and customers is important. Discipline in what we offer, of course. We cannot just offer things that we do not profit from, but only the customer. There it needs a good balance. Part of scalable growth, Thomas, you mentioned already operational excellence. That also accounts for supply for our wholesale business unit, site synergies, and also higher efficiency through automation. That is indeed will be initiatives in the years to come, I am pretty sure. When it is about the management of the cash, why is that so important? Because we are dealing with high price drugs. That can be a challenge for a lot of our pharmacies. Here it is all about the right balance. In order to provide patients and doctors with high-priced products, the pharmacy and the wholesaler need to work efficiently together.
As we are not a bank, we are quite limited in terms of the payment terms and conditions. Here we also have to see what does our customer need? What can we provide? What are we able to provide? The inventory discipline here, it's less the portfolio, but here it's what do we have on stock and in what quantities is very important. Balance also here, the right phrase. We cannot optimize our inventory when we would compromise on our supply security. The customer does rely on us, so we need to be able to deliver, and there we need the right balance. The scalable growth. Rather margin quality improvements than only top-line growth. I think the key here is focus. Being focused on what we are good at.
These are the six indication areas as a framework, as I described it a few minutes ago, but it's not restricting us. Here we also listen to our customers. What do they want from us? Which products do they see? Do they want the GLP-1s? Do they do the cannabis or whatever? Here it's always in a resonance. What do they want from us? What can we offer in the best possible way in order for us to grow profitably? Financial targets. Thomas, you had this in your slides already here for the Specialty Pharma Supply segment. Here, keep in mind, baseline 2025, that was a very successful year for that business unit. Coming from the EUR 1.7 million in top line, we want to reach the EUR 2.3 million in 2031 and keep our 3% margin.
You saw that at the moment we are running on a 2.7%-ish margin, so the clear ambition is to grow top line and profitable top-line growth so that we can have an EBITDA of EUR 68 million. That would mean a growth rate of 5% over the years. If you need to remember a few things, please do so from the Specialty Pharma Supply segment. Understand that it's a structurally growing market. Please also note that due to our long-standing relationships and trustful relationships with the industrial partners, and I think in a way that cannot be copied anymore, we have privileged access to products. The industry trusts us, the partner pharmacies do trust us, and we are therefore the preferred partner for both of them. That brought us to the margin leader that we are today. Clearly, we want to defend that position.
For the Medios Group, that business unit is the cash engine, trying to enable other growing fields with cash. For the business unit, the profitable growth is the clear ambition. Optimizing the margin, manage cash very well, and grow profitably. That's what's going on in the future. Personally speaking, thank you very much for your interest in Medios and for your time. Thank you.
Thank you very much, Christoph. We will now have a 20 minutes break. It is here on the left side, from your side on the right side. Please serve yourself at the coffee bar and listen to the signal when it is time to continue. After the break, Constantijn will talk about compounding. Please enjoy the break.
[Break]
Welcome back. I hope you enjoyed the break. We will now continue with compounding. Constantijn van Rietschoten, Chief Business Officer International, will explain how compounding contributes to our strategy and how we intend to develop the business across the different markets. Constantijn Kraaijkamp.
Thank you, Katrin. We tried it a few times. Kraaijkamp. That is the right pronunciation. Also a warm welcome from my end. Great to see so many people who have come to Breda today. It's where the company Ceban was founded almost 24 years ago. One Medios compounding business. It was already mentioned by Thomas earlier today. Why is that so important? Over the past 10 years, I think that we, the team, Medios, built a highly strong integrated compounding platform in Europe. It was not always very visible. We have patient-specific therapies in Germany, what in reality is compounding, and we have an international business segment for which I'm responsible that is also mostly compounding. To bring them under one roof, I think that is a logical next step. If we look, what is that compounding segment doing? Who are we?
754 highly dedicated specialized employees located in four operating markets, and we are already selling our products in 14 European countries. We operate 11 GMP, Good Manufacturing Practice, facilities throughout Europe. We have shown healthy organic growth the last three semesters, and we have an EBITDA pre, so it is the EBITDA pre, still not the EBITDA adjusted, that Stefan will explain later, over around 13% in the markets. Our key priorities, I will not discuss them at the moment in detail because we will discuss them later in the presentation. It is not my intention to really look back about what happened. We are the capital markets today, we are looking forward, b ut what you see here is impressive. The whole compounding business originated in Berlin, the MediosApotheke. Until 2021, we were a very strong leading player in the Berlin area.
In 2022, with the acquisition of NewCo compounding, we became a nationwide player in the compounding field. In 2024, with the acquisition of Ceban Pharmaceuticals, the company Medios became internationally active in the compounding field. Then the question, of course, is, and we have that very often, what is compounding? I want to take you through the patient journey, the role the patient goes when he goes to the prescriber. In the vast majority of cases, the prescriber will prescribe a licensed medicine, either a specialty or generic. In those situations that the needs of the patients are not fulfilled with a licensed medicine, he can ask the pharmacy to compound a specific tailor-made medication for its patients. That, you see that here is where Medios comes into play. We do sterile compounding. We do that in Germany. We do that in the Netherlands.
We do non-sterile compounding in the Netherlands, and we deliver APIs and all related materials to pharmacies and hospitals who have decided to compound still in-house. That is what I meant with the integrated business model. You either do the compounding, you outsource it as a pharmacy or a hospital, or we deliver you everything you need to compound in-house. Whatever we sell, we sell to the pharmacy. The pharmacy either dispense the outsourced product to the patient or compounds in the pharmacy and dispense to the patients. That is the market where we are in. The market is still there. I know a lot of people say compounding is not there. It is a niche market. Vast majority is served by licensed medicine, but that small percentage that need a tailor-made medication, that is where Medios comes into play.
If we look at that market, let us start on the right with the compounding essentials. In every market where we are active, pharmacies are compounding in their own pharmacy. We already discussed the Caelo acquisition. They are the number one in selling APIs to pharmacies and hospitals compounding in-house. Magis Pharma, Christophe Bouvrie, there is also a showcase table at the end of the room, is the CEO of Magis Pharma. We are the number two in Belgium. Metapharmaceutical, our location in Barcelona, is the number three in that market. You would question yourself, okay, why don't I see the Netherlands standing here? Why are we not big in API? Why in the Netherlands that whole non-sterile part of the business is mostly outsourced? The law allows it in the Netherlands to outsource non-sterile compounding.
Think about tablets, think about creams and ointments, suppositories, suspensions. As Ceban compounding in that market, we are the leader. That is important to understand the business model we have per country. It is always compounding, but what we exactly do in that specific country is depending a little bit on the local national regulatory framework. Caelo, number one in APIs. Why? Because all those customers we have in sterile compounding do their non-sterile compounding still in the pharmacies, and they need APIs. If we look to the sterile compounding part of the business, think about medication cassettes, IV bags, syringes. In Germany, we have become the leading player. We are the number one. In the Netherlands, of what is already outsourced, and we will see that later, we are the number two. Magis, I think that is a little bit the scoop of today.
We continuously develop our portfolio. We started on the 1st of September. It is difficult to see. We started with the bevacizumab eye syringes. We have received all the licenses in Belgium to also do sterile compounding. We started with one product, and towards the end of the year, we expect to have five products focused on the eye, four eye syringes and eye drops. We put a little bit an animation in. Why? Because there are so many reasons why compounding is so important for the patient. Certain patients need a dose adjustment. You would expect that if there is a tablet on the market that is licensed for 10 mg, that me with my body weight, a little bit over 100 kg, need another dosage than my child of eight years old weighing 25 kilograms. You can have an alternative route of administration.
Give a young child a bitter tablet, and probably he will spit it out. In those cases, if the tablet does not work, you can work towards a suspension. We adjust the dose, and we look for an alternative route of administration. Individualization. A lot of licensed medicine on the market needs some steps before the product can be administered to the patient. Combination therapies. We get now to the elderly population. When you get older, there is more medication you get. You can combine that in one compound, different APIs.
Sometimes it is needed to exclude an ingredient. For instance, when you have an allergic reaction for certain ingredients. Certain medicine needs to be compounded because it is very instable. That means that the active substance decorates very quickly, and for that reason, it has a very short shelf life, so the pharmacy has to take that step to compound it. Drug shortages, drug discontinuations are an increasing problem in the markets we are active in. Then three examples. I already tested you a little bit because people think there is no compounding. People that have children know that most of the medications, all those dermatological creams, ointments, it is mostly compounded to the specific needs of the patient.
What we see here is three examples. We have a pre-born parenteral nutrition. I think, Christoph, looking at you, it is something, especially in Germany, I think we are the only outsourcing facility still left being allowed to make these parenteral nutritions for pre-born patients. The baby tacrolimus syrup. Tacrolimus is available in tablets, but the exact dose, and here is it again, is depending on the body weight of the baby. Besides that, you want to have it not in a tablet. You want to have it in a suspension. For that reason, in most of the cases, it is compounded.
We will get back later, but shortages are an increasing problem in Europe. Prices are going down. There is competition from other markets. So we have shortages in the European market. In 2024, we had over 1,500 shortages in the Netherlands, and in 2025, we had over 1,000 shortages in Germany. With compounding, I am not saying we can resolve every shortage, but there are opportunities for us to serve patients. The competitive position. I already started. We have an integrated compounding platform. If you look very closely, almost all of our competition is nationally based in one country and is only focused, ZytoService Germany sterile, Ace the Netherlands non-sterile, Acofarma Spain APIs, and it stops at the border. We are, as Medios, one out of two players that are really building that international, fully integrated network.
If you look, what is driving this market? First of all, demographics. People are aging, and that is driving the compounding business in general. The increasing relevance of individualized medicine. Pharmacies and hospitals, due to regulatory reasons, due to quality reasons, due to efficiency reasons, due to the difficulties to get good educated employees, decide to outsource their compounding more and more to outsourcing facilities like Medios is operating in the Netherlands, in Germany, and since recently, also in Belgium.
If we look at that market in the four countries where we are currently active, we estimate the market to be around EUR 7.1 billion. We have to be very careful here because we should write it a little bit bigger. It is a company estimate. We do not exactly know. We are active in a niche market. It is not that you see a lot of reports about these markets. We estimated the market to be around EUR 7.1 billion. If we drill that down, because in that compounding, there is a lot of things that we either do not do, it is not efficient to outsource it to us. If we drill it down, we think that at the moment, we are operating in a market of around EUR 1.5 billion with Medios.
That market is growing at an average rate, again, company estimate of around 7%. On the first slide, you already saw what our key priorities are as a company. The last 10 years, the main focus has been on community pharmacies and the outsourcing of community pharmacies. We will focus on the hospitals and accelerate our focus on the clinics. Accelerate new product development. Operational excellence, and there are also things that I learn. I am 56 years old, and I learn every day, and I love it.
I think 10 years ago, we thought, okay, if we get more volume in our facility, the operational leverage will follow automatically. Five years ago, operational excellence became an attention point, but we are still running well. What we are doing right now is making it a priority. Why? It is not only ensuring that the cost base is well under control, but we will also be able to serve our customer better. We will see that later. Integration excellence and the European platform. I will take you through them in the following slides. It was already in the presentation of Thomas. In the hospital market, our main focus was on the pharmacy market. There is a huge untapped potential. In Germany, 50% of sterile compounding is still done in the hospital. In the Netherlands, it is around 85%. What is driving?
We said it here very nicely, the willingness to outsource. Hospitals have to be more efficient. There is more regulatory pressure on quality. It is difficult to find the employees. They have to invest in new facilities. We see that the time is changing. We are, as Medios, well-positioned. We already have a network. We already have the contacts. It is now time to push and to get a piece of that untapped potential. We will not get it all. Be very careful. There are things that will always remain in the hospital or that are not interesting for us, or that are not interesting to outsource. This is one of the important growth drivers going forward. The clinics. We already have a strong market there. We are market leader in the Ophtha clinic market in the Netherlands.
We have a very strong position in Germany, but there are opportunities to grow that further. We see the potential of new indications in ophthalmology coming to the market. What else do we see? We see that those ophthalmology clinics are consolidating. They are grouping together. They are forming international players. Even private equity gets in. What gets important is that they are looking just like we are doing when we acquire something for synergies going forward. In the beginning of December, I will not mention names, the team of Ceban and the Ophtha team of Medios will visit a customer in Germany. A small chain that already we are supplying out of the Netherlands for years. We have a strong relationship, and they are ready now to also shift their German clinics to Medios. We try to make steps there.
What is important, what we have and not every competition has, digitalization. We have mediosconnect. It is our own tool. It is our own intellectual property. It is a digital ophthalmology offering, combining the financial reporting, the reimbursement, very important in Germany, and the ordering process for the pharmacy in this case. This is very important in the market we are in. We have to continuously innovate. We have to react on drug shortages. We see markets shifting, we see demand shifting. We have to spot the opportunities in the market early. We are having local innovation team continuously screening the market, talking to prescribers, talking to hospitals, talking to pharmacies where their demands are. After the break, after the lunch, you will see by my colleagues, Bastian and Detlef Völker, they were here also yesterday, a presentation on the AI-enabled shortage detection.
In the Dutch market, drug shortages are an enormous interesting market for us. Drug shortages are not always forever. The earlier you see them, the quicker you can go to market. We have created an AI tool to predict shortages. Instead of following the shortage, we want to predict them, and we want to be the first on the market. Move fast. We want to target registrations. That is also something specifically for the Dutch market. Sometimes a compound gets too big and you have to register the product, otherwise somebody else will do it. I already mentioned the concrete initiative that we started with the ophthalmic sterile compounding in Belgium. I see that as very positive. We are only the second sterile outsourcing facility in the Belgium market. In the Netherlands, we have started, and we will accelerate that further with home infusion therapy with antibiotics.
Why? It is a product that the Apotheke, I am looking a little bit for the translation, call it hospital pharmacies, they want to outsource. Why? Because if we can combine the volume, we can give the product a shelf life, we can stock produce it, and we can have a better price than them doing it in-house. This will come after lunch and the registrations. I have it here. Thank you Geerte for taking it. On the 1st of September, we launched a minoxidil foam, and minoxidil is used for hair loss, and that is an in-licensing deal where we are the marketing Unternehmer holder of the product. Operational excellence, I mentioned it. I also learn. It was not always on my radar. Sales, the rest will follow itself. That is how I was raised at my previous employers. We already discussed Aschaffenburg.
It is not that I say we have other sites on the radar that we are going to close, but we will monitor that closely. We will continue to look how to further optimize the facility network. We will increase labor equipment and clean room utilization. We already have a program in our facility in Marktsteft with staggered shifts that will allow us to optimize the clean room. Besides that, it will improve our service to the customer. In the API business model, and we have some examples there on the table. I stole them. What we do in the API business, we purchase raw materials, active pharmaceutical ingredients in China, in India, in Korea. We get them into Europe. We analyze the raw materials. We get a certificate of analysis, and we pack them in smaller containers like you see here. One product, one site.
It does not make sense to have one API. Let us take minoxidil. That is also an active pharmaceutical ingredient. We package that at the Caelo site, at the Magis site, at the Meta site. We will continue to work. Okay, how can we optimize that network that we have in the API market? We will, in the first half of next year, launch automation in our German facility in Bonn. It is semi-automation filling of infusion bags for cytostatics, and it will reduce the labor cost per preparation. Besides that, we will increase the volume that we can do in that facility. Besides that, we increase production consistency of the product. We try to digitalize processes. We have entered in Germany into a partnership with Connected Consumables. We have to look back a little bit. We have around 500 oncological practices in Germany.
They have a rather low digital adoption. If we get a script in our facility, it comes by fax still. For the Dutch people, that is probably difficult to understand. There is a need for a digital workflow and a digital ordering process. What does that partnership with Connected Consumables entail? They have a platform that a digital therapy planning and a dose calculation. With our mediosconnect, we add an ordering system to it. Now, the goal for us is that more and more scripts come to partner pharmacies at the 1,000 we referred to earlier of Medios into Germany to boost our sales. The integration excellence, and that is very important. I will not go in detail. Have we discussed that in earlier calls of the acquisition of Caelo? My colleague Stefan will also refer to it.
But what is different from what Medios, I think, did in the past? We have done a lot of acquisitions looking back. Integrating that transaction in the group is a key priority. We identify synergies, we capture synergies, we report synergies to the market. Here, have you also communicated that in 2028, 2029, we expect synergies within the group of EUR 4.4 million. This slide is for me even more important. I am a big fan of that, personally, of that acquisition of Caelo. We have 1,000 pharmacies in Germany that we consider our partner pharmacy. They either buy licensed products from us or they buy compounded products from us. But we know that all of them are compounding non-sterile products in-house. What are we doing?
We are expanding the offering to our customer base, and we want to increase our share of wallet. We have 16,500 pharmacies in Germany. We only service 1,000 at the moment. So we will use the network of Caelo to also reach other pharmacies and maybe also increasing the share of wallet of Caelo there. In Belgium and Spain, we are relatively a small player in the market. That also means that we have a very small portfolio of APIs. Caelo is bigger. They have a full offer, so we will immediately start to cross border to expand those products to the Belgium and Spanish market. Then, we get a little bit to the end. I am sorry. I would like to talk about this business for a few hours more, if you don't mind.
But in this part of the market, it is the biggest compounding market in Europe, and we are the number one in sterile outsourcing. We have a lot of experience. We have a lot of knowledge. In the Netherlands, it is the most progressive market. All kinds of outsourcing are allowed. We are also the number one. Our ambition is to geographically expand in other European markets with a favorable regulatory framework. It is focused on sterile, non-sterile compounding and APIs, and it is not only M&A driven. We can do that greenfield. In Portugal, Meta is already greenfield supplying their products too. We can do that via partnerships, but it is also possible, of course, to do that via M&A. Then we get to our ambition going forward.
If you looked very closely, we are currently doing around EUR 400 million in the combined international and PST segment with an EBITDA adjusted of around EUR 53 million, and that means a margin of around 13.7%. We want to steadily grow the business by around 5% organically year- over- year. We have the ambition, and I clearly say all the criteria need to be met. I think Thomas already said a lot about when M&A is on the table, but we have the ambition to grow inorganically via M&A around EUR 300 million. That will bring us in 2031 to a revenue of around EUR 800 million. Organically, without acquisition, we would be at EUR 500 million. If we add the EUR 300 million, it brings us to the EUR 800 million.
We want not only to grow top line, but it is also the ambition to grow bottom line. We will see the margin going up to 14.2%, representing EUR 119 million of EBITDA adjusted. The key takeaways I already explained very well. We have an integrated international compounding platform spanning sterile, non-sterile, and APIs. We are in a highly attractive market. We have the demographics, we have the increasing outsourcing, the individualized medicine, drug shortages, et cetera. We have in those markets a leading position.
Germany, we are in APIs and sterile compounding number one. The Netherlands, non-sterile compounding the number one, sterile compounding the number two in outsourcing. In Belgium, in APIs, we are the number two, and we are just starting with our sterile compounding. In Spain, we are the number three. The strategic ambition I just explained. We want to build Europe's leading platform by 2031 with sustainable profitable growth. The five growth levers, it is important. Focus on those hospitals and clinics.
We have that strong position in pharmacy. Focus on the hospitals and the clinics. We want to accelerate our new product development. Operational excellence, not only as a cost saver, but also as a service for our customers. We want to integrate companies smoothly and with clear synergies and clear results, and we want to expand the business. It is not a must, but if we see the opportunity and it ticks all the boxes, we will certainly consider it. That was it. Thank you for your attention.
Thank you. Thank you, Constantijn. Thank you. We have now heard about the strategy and the two operating business. Stefan Bauerreis, CFO, will bring this together in the financial framework. It is up to you.
Thank you. Thank you, Katrin, and also from my side, once again, a very warm welcome to the meeting in the Capital Markets Day of Medios Group, and also welcome to all the participants on the screen in the live screen that we have. Please allow me, first of all, before we start with deepening in the financials and how the financial can support the strategy that we have, one or two words about the location where we are. We are here in a chapel. I have to explain that for those who are just on the screen. It is a very nice building. It is a very great environment. Here we are talking about Medios Next Level strategy. I invite all of us to look up.
There is enough space for the next level of developing us, and that is exactly the space we want to use. That is not just a step, it is a next level. That is also where the location stands here for. On the other side, I hope this is clear target of my presentation now that I can convince that our new strategy will be based on hard work and clear facts. If we get the support from higher levels, fine, but it is not based on hope. That is what I will show you now in the next around 30 minutes to come. Getting in and going with our agenda, let me first start with Medios at a glance to say and to understand clearly from where we are starting from.
But then also I will show you not only nice and fancy future that we have and where we will work on that, but we also have to reflect a little bit our history in terms of what are the lessons to be learned, what are things also what we have to change, and also what we took out by listening to our stakeholders, by listening to you, and to give there a reality check to really say that is a clear foundation. Following then, and with the next points on the agenda, I try to answer then the last question that Thomas raised at the beginning. I will not ask you which was the question, but it was the question: What is our financial framework and how we want to make all the strategy happen with the financial performance of Medios.
Finally, Constantijn and Thomas mentioned we will come back to our framework also in terms of our KPI. We heard a lot about EBITDA pre, EBITDA adjusted. We come back to that and also finally to our M&A strategy. Let us start with Medios at a glance and to start with what is our starting point. Also here, allow me to show you some numbers, because often numbers are the most convincing part, and therefore, for the finance presentation, it is obviously clear. In 2021, we started with an external revenue with sales of about EUR 1.3 billion, and 2025 was the first year we were able to make the EUR 2 billion. Great achievement from my perspective. Also there in 2025, our EBITDA pre margin on 4.5%. When you have a look at the first half of 2026, we are also there already above the EUR 1 billion.
We also will make sales, what we promised. We know that this year is a challenging year in terms of margin. We are quite a little bit below of last year with 4.1%, but also here I will explain you all our target to come. Taking that as a starting point for the whole Medios group, just allow me to fresh up our memories and showing you what is, as of now, as of the first half of the year, our three operational segments that we have. That is the pharmaceutical supply. There we have the biggest sales portion with EUR 868 million in the first half of the year in a EBITDA pre margin of 2.7%, following by what is then our new compounding, the both segment patient-specific therapies and international business with 9.6% in Germany and 16.1% margin in the first half year of 2026.
Yes, we know there are challenges. Yes, we know it's a challenging environment we are, and we will tackle that, and we will support our strategy going forward and improve our profitability. But before coming to that, I said we also have to look and reflect what is, what we've learned is, what is what we also see on the capital market. Obviously, here in a finance presentation, it's very important, because we can have all the best and nicest strategy and best hopes and best intention. At the end, the valuation on the stock exchange is what counts.
Here we have to say, and we are there quite realistic, that when we have a look at the development of the Medios share price, and we compare that with Fagron, our main competitor, Constantijn had it on a slide, the only one who is also not only focused on one country, but with an international setup. Then to be honest, we have to say probably it was not the best success story in terms of developing our share price and what we currently are valued on. You see on the right side all the different KPIs comparing Fagron and Medios, and there please allow me that we are splitting it a little bit because Fagron is 100% API and compounding, it has nothing to do with the wholesaling in general words.
We have to compare that with the Medios without the wholesaling activities. I think we already improved quite a bit, but there is still a way to go, and that is what we want to close also with the strategy going forward. Last but not least, when we take the last line here in those KPIs, for sure nobody is happy with the valuation of our share price that we currently have on the stock exchange. Compared to EBITDA, it's a multiple of 4.6. I even don't want to say the number of Fagron, but you can see it on the slide, it's more than 10. So to be honest, a good way to go. We will take that. But that is not only the explanation between Medios and Fagron.
Also when we have a look at, let's say, companies more German-based, also that is part of the truth that we have to say. You can see here in red the development of the share price of Medios compared to other peers with main focus on Germany. This slide should not be an excuse for us, saying, "Oh, those who are Germany-focused, they have more or less the same problem than we, perhaps not as much, but blah blah blah." No. That is just saying where we are starting from and what is our starting point, but at the end, the development and the valuation is nothing that we can rely on in future, and we are happy with that. But where does that come from?
There are several reasons, and for sure it is always based on psychological, it is also based on how stakeholders, shareholders, those who are investing money, having a view on Medios. Here, that would be my first wish out of my presentation that you take away, and probably on lunchtime I will ask some of you about that, Medios is more than wholesaling. We cannot repeat it enough often because it is, at least in the discussion I have with some of you, with colleagues, on investor conference, it really much seen as wholesaling. We are proud on the wholesaling activity, and Christoph showed a very good presentation. Also, Christoph, thank you very much for all these insights, because there is also very much fantasy to develop this business. But it is not only that.
As of now, already around 50% of our EBITDA pre is done within compounding and not anymore in wholesaling. We know that it is just the 20% of our sales, but even with the 20%, and Constantijn showed you all the fantasy that we have and the idea and this hard work activities that we are doing day by day to shape here the growth organically and potentially inorganically to develop compounding. So that is really much a very important topic. Specialty Pharma, as I said, will support as an integrated part of our strategy the development of Medios, and we are very proud of that. All that requires, and that is all where we as board of Medios will stand for, and that is a task that we have to take and we are taking that, is rebuilding trust by really much taking capital markets feedback seriously.
What does it mean in detail with all that what we have taken out by listening to all of you, by listening to our shareholders? First of all, Thomas already made the first explanation, business model too complex. Yes, because, to be honest, we have two main business models, wholesaling and compounding. Our current structure of segments is not reflecting that. There we have two segments which both of them are doing compounding, so we want to focus on that and that is why we decided in future, starting 2027, we will start focusing on exactly those two business model and going for that two operational segments. Increased transparency. There I think we already made first good steps when we have a look at our quarterly presentation.
We added some EBITDA bridges to really show where the one-timers, which are the specific individual cases to explain the result of a certain quarter. But there is still some way to go. We know that. But I think already the first steps have been done, and that is important. All that goes hand in hand with specific, bold, and very good organized and with a very good plan for integration-based M&A. I will come back to that when we then later talk about the Caelo acquisition and how this fit in our strategic frame. All this goes hand in hand with an attractive return on capital. There we have to be clear. Medios is quite good from my perspective in a cash conversion, but there still work to go. There is still further optimization that we have to do and we will do.
We also will work continuously on our capital allocation that we have in progress to really focus on the right levels where we want to go. At the end, all that stands for improving the reliability, which means, in easy words, deliver what you promise. That is, we know that this year is difficult. We know that we had to make this adjustment of our guidance in summertime. I think that is the basis for the future to shape it also with a very clear and structured reporting of all our activities like M&A, for example. Now coming once again back to the financial foundation for our strategy. We can have very good ideas, but when the finance situation is not helping us, it makes it difficult.
Here it starts the very good message, and there is a very positive and great assets that Medios has in hand. We have a solid financial structure with a lot of headroom for organic but also inorganic growth. A very outstanding activity, helping us also with a very solid acquisition and bridge loan that we got for the Ceban acquisition. Also that is a very big commitment and also shows the great partnership that we have with our banks altogether to help us, because then we can refinance that with the increased option of our loan. So easy fix to get the calculation and to get the financing in place for our new acquisition. At the end, some dates. The current financing structure that we show as of end of June 2026, we will have now the acquisition of Ceban.
We have the current maturity of our main term loan and facility until 2029 that we can expand until 2031. The program of expansion is also already in preparation. Also then combining that with an increased option of our facility. Having a good term loan is one thing. Having a great track record in being able reducing leverage day by day, it's another thing. Here we want to show you, even when it was just a small period of time between 2024 and the first half of 2026, we already were able to reduce our leverage from around 1.67 or 1.7 down to 1.3.
That shows you that solid balance sheet is not just a photo that we have as of today in our balance sheet, but this is the result of hard work of the organization, of a continuous focus of cash generation and reducing our debts. This is exactly the way that we will continue also our strategy going forward. Now coming back to the simplification and to reduce complexity of our business model and also of our reporting that finally we want to show than when we start the year 2027. Thomas pointed it out clearly, what are our main business models?
The main business model, I repeat myself, is wholesaling and compounding, and that is why we also say we will streamline exactly also our internal organization on these two main business models that we have, and therefore also reacting and building them up with our new segments going forward. Having done out of pharmaceutical supply, we will make the Specialty Pharmaceutical Supply, which at the end of the day is the same segment as we have it as of today. There we are really proud about our cash engine that we have here. The patient specific therapies as well as the international business, we will bring that together in one segment to support the European platform that we have here on compounding, as Constantijn explained, and to have that under one roof, all what is compounding related activity.
Below you can see some of the major business units or subsegments, you can call it however you want, which then in compounding is reflecting exactly the different services that we are providing, starting with the compounding services as a main activity, which is sterile and non-sterile compounding. The API, also here the new Caelo company is contributing to this subsegment and also contribution and the existing pharmacies that we have here in Netherlands. What does it mean in terms of numbers? We want to show you as a pro forma calculation that you can see that what would that mean if it would have it already now, and all these numbers are based on the 2025 numbers to give you a first flavor of how this will develop. Specialty Pharma Supply remains as it is. There is no change. Compounding, yes, there is the big change.
We will bring together the different to other operational segments we currently have. We also will integrate the digital solution part into that new compounding because that is an integrated, very important selling argument also on bringing the digitalization towards our customers and towards the different pharmacies. At the end, same pictures that you show already before. We showed already before, but now with the new segment structure. That is also that then we will do then once we change beginning of 2027, we will then show also the bridges coming across. I don't have to repeat the numbers because we had that already in the presentations of my colleagues. This is the world that Medios will present itself in the future starting 2027. Coming back to transparency, we now simplified the reporting landscape with the focus on the major two operation segments.
Also in terms of transparency, we as of now have a definition of the EBITDA pre, as it is called in Medios, which is, I would say the most relevant KPI apart from sales. You can see here on the left side, on the top left, all the adjustments that are defined, which are possible, and which are done. In terms of being more transparent, also in terms of not allowing excuses, by the way, we will focus in future on a significant smaller piece of activity that we will adjust. That is what we call the journey from EBITDA pre to EBITDA adjusted. So in future, the main impacts, and I think that is common sense because I would say every company is doing that, and it is also necessary.
Every impact on M&A, we will continue to take that out in our calculation of the EBITDA adjusted. I think that is important and that is necessary to do that. As well, everything what is restructuring costs related, what can be done. Finally, also part of all the M&A costs and activities, everything what is PPA related. I know it is very small impact on EBITDA, but also when we have a look on the EBIT side, then also here it is not sensible showing that only including PPA impact. We have to take that out, and show that, without the PPA impact. That will mean, and you see that on the lower side of the slide here, this also really stands for the transparency we are standing for.
We show here exactly what are the different amounts, getting back to 2020 even, what have been the amount Medios has adjusted or taking out in the EBITDA pre-calculation. We put here a little bit in this rosa red or pink color, topics that we will not adjust anymore in future. Therefore, I think the calculation will be also here significantly more transparent, and that is what we want to stand for it. No finance presentation without capital allocation. I think we agree. What is here our clear target, how we want to do that. I already say at the beginning, that is not yet defined until the last piece and byte downwards. That still will also need some month and some discussions to come. But we can already focus and show you what are the focus fields. Obviously, we want to go for organic growth.
I do not have to repeat all the explanation regard operational excellence, but this is exactly what we will do based on operational excellence, making our organic growth. The good message here is we have only EUR 10 to 15 million, around EUR 10 to 15 million yearly CapEx need to maintain and develop our business as it is today. So the CapEx requirement is not high, and that is great because that creates also cash flow. But it is not only the organic growth.
Whenever, and I think that has to be the major, really also an important takeaway. Whenever bolt-on margin, value accretive, perfect fit acquisition are available, then we are here. There is no plan to say, today is this, tomorrow is that, and after tomorrow is another one. That is a question of timing. That is a question of when the right opportunity is coming across.
But we are prepared for that. I think that is very important. With a solid balance sheet, we have around EUR 325 million of potential firepower that we can use. I think that is a real big argument in a real way. Not that we say we will definitely spend that, but we could whenever the good opportunities come across. Shareholder return, participation of shareholding. To be honest, not our major strength at Medios in past. There was no dividend. We started last year with the first share buyback. Obviously with the valuation we currently have, share buyback is something that we will have also in mind, and we will work on that. Therefore, shareholder returns is and will be a very integrated part in the next months to come and in the next years to come to do that.
But we are doing all that without jeopardizing the quality of our balance sheet. That is not just a saying, that is a commitment. We will not exceed a solid balance sheet logic in term of our internal target of 2.0 as covenant of debt leverage. With our banks, we have a leverage of 3.0 defined. But we never want to go to the edge. We say we want to maintain and want to make able to get our growth with a solid balance sheet. With that, coming in short sentence about what we want to go with the M&A activities. M&A has to fulfill the following activities. First, strengthen the compounding core business. That is in our capital allocation we want to go for. That is we want to spend the money whenever the right acquisition target comes into the playground.
With that, we want to expand markets, we want to expand our internationalization, we want to get additional products that we are able to sell, and want to have a very solid and a very good position in the market. This is only doable when we are focusing on creating, in very short-term period of time, the best possible value for our shareholders, but also for the whole company. Therefore, these are clear, the main targets that we follow. By doing that, by integrating those companies, this is only doable, and we are absolutely convinced we only can do that when we have, as of day one with an acquisition, control about the companies. That does not mean that we always have to have on day 100% shareholding.
Also with Caelo we will not have that, but we will have all the control to integrate the company in our API environment at Medios to create additional value. We will have dedicated post-merger integration plans and offices, and here also first 100-day plans to do that. So a clear strategic fit, that is what is required for each individual targets that we want to check the box. I give you the exact now the example why Caelo fits to that new strategy that we have. So starting with the criteria that we have. Leading position in an attractive core market. Yes, we can check the box easily. It is number one as Constantijn explained on the API market in Germany. It is a great fit in our landscape with our existing companies in Belgium and in Spain with Magis and Meta. Therefore, great target.
We want to have a control of the company. We have that with the 74%. We have clear defined logic of even getting to 100% when we want, so therefore it is a clear structured way going forward. We have here a good combined portfolio that will create customer benefit, and without customer benefit, normally no value comes across, therefore it has to be in there. Clear identification and execute the value levers that we have. We identified in our post-merger integration program, and you know the graph that we showed with the synergies that we want to create. That is not just a hope. This is clear ideas that is based on a solid analysis that we made, and now it is up to us to create that. With all that, we want to get access to an attractive growth pool for the future with those companies.
Here you can see all that is really much we can check the box with the Caelo acquisition, and I can promise you all future acquisition we come across also will fit exactly to that. With that slide also here, when we are talking about the last year and closing 2024, 2025, it is a multiple of 4.5 that we paid for Caelo. On 2025, 2026, for sure with some operational challenge the company was faced there, it increased a little bit. But on a long-term, I think it was a good and a great fit for the company, Medios, and we also are really much confident to make all the synergies that we promised. For the future, firepower is there, but firepower only will be used in case that the right targets are coming across. We will not do stupid things.
We will do the bolt-on acquisition whenever it makes sense, and also in a context of not forgetting also our shareholders. Here we can see what does that mean then finally for the whole group? The ambitions are clear and obviously it is ambitious targets. We want to go to grow to EUR 3.1 billion sales in 2031. We want to focus all activities on organic growth first and doing our homeworks with operational excellence, but also then having the possibilities with bolt-on acquisitions to strengthen and to increase mainly the compounding area, and therefore also contributing to an improvement of our margin mix. Here you see that same slide, but in a like-for-like comparison so that the change is coming then from 2025, so the starting point applying the new definition of our EBITDA adjusted within the 4.2%, and we want to increase to 5.5% EBITDA margin.
Adjusted, not anymore pre. What are now the key takeaways? First, we are in a process of transformation Medios Group, but we are operating from a position of clear strength with a great balance sheet that we have now available, and a clear DNA of Medios of focusing on reducing leverage whenever we can. Second, yes, there is some work to do in restoring capital markets trust, and we stand up here today, but also in future to explain exactly where we are, to be very transparent, and to want to restore the capital markets trust. For us, a second very important financial takeaway. This only is possible, third, with our very financial discipline that we already proved with reducing leverage in the last one and a half years, and we will continue to do that, focusing on all that. Fourth, firepower is there.
I come back to that picture that I draw at the beginning. We are here in a chapel. We have enough room for bringing Medios to the next level that we want to use, but it is based on a clear foundation and not based on hope by higher levels of support. Finally, execution is nothing that we only want to talk about. Execution already started. We have a clear plan. Hopefully, we convinced all of you here in the room today and the audience on the screen that this is a clear structured level that we want to go that is not based on fantasy, that is based on clear hard work, but also on clear commitments we want to go. With that, thank you very much. Katrin, back to you.
Thank you, Stefan. Before we hand over to you to pose your questions, we will have a short break of 10 minutes, and we will change the setup on stage and see you in 10 minutes, please. Again.
Thank you.
[Break]
Welcome back. Before we open the discussion, Thomas, could you briefly bring together the key messages from this morning, please?
Yes, very much so. Thank you, Katrin. Listen, the initial idea of this Capital Markets Day, of course, is that we can answer your questions. We want to give you a picture where we are heading, and that's why we are looking forward to the question and answer sessions right now where we can interact directly with you. This is a very important piece that's up next. But I think what we wanted to convey in the presentation was, first of all, that this is a strong team. This is a team of different characters. Each has his own spot. And we work together to create the momentum of Medios to carry for the next 10 years. And I think we're in a very good spot.
Second, I think we want to show you that we can grow on the foundation we have and that the market is very attractive we are acting in, and that we are ready to take that on. It will take work, it takes focus, it takes energy, but I think we have that within our team here and within the entire Medios group, and that's the strength we want to leverage. And with that, I think we're ready for questions. Please don't hold back. We appreciate clear feedback and transparency.
Thank you, Thomas. We now welcome your questions. Please raise your hand and wait for microphone. Please introduce yourself and your organization. And one question at a time so as many of you as possible can contribute. You would like to start?
Yeah.
Yeah.
I have already the microphone.
Yes.
I can start here. My name is Michael Heider. I am working for Berenberg Bank, and I would like to ask some questions on acquisition. You laid out that you want to add some EUR 300 million in revenues by acquisitions. Can you please give us, or do you have a view on the timeframe of these acquisitions? I know, 2031, that is clear, but when can we expect acquisitions to happen? Do you have financial acquisition criteria? How much are you willing to pay for businesses? Would you also be willing to buy restructuring cases? If they strategically fit well into your business, would you also be buying a loss-making company that you think you can turn around quickly? Are you really looking for profitable businesses?
The last one on this one is on your capital allocation. How long would you wait with the share buybacks to happen? Are we waiting for acquisitions for the next two, three years before we start giving money back to shareholders? What is your view on this? Thank you very much.
Maybe I like to start in giving you a high level idea about the M&A appetite we have within the company. We appreciate your question, and it is clear that there are a lot of questions around this EUR 300 million additional revenue we are matching that we will add till 2031. First of all, and I think several speakers mentioned that we do not feel rushed to do anything. We are going to put quality and common sense and good business before acting because we feel we are in a good spot. We have a healthy cash-generating business. Yes, we want to grow, and yes, we have ideas where that strategically fits best, but we are going to make it good business sense. That is the commitment we have here. Then again, of course, we like to go fast, but we cannot be rushed.
So, expect that we will take a deep look at what we consider to be an M&A target and then also have a strong position in the negotiation before we act. Then I pass it on to Stefan, who I felt spit out pretty nicely what are our requirements in terms of financials that we say, "Well, that makes sense.
Yeah. So, talking about this M&A checklist, if you want to say it like that. So for sure we will not pay whatever multiples that comes across. It has to be a good fit. It has to be on a prudent level. So what we now are in a structure where we paid for Caelo. I think there we believe that this is a fair pricing, what we have. But also all pricing always depending a little bit on the synergies that you believe that you can get and also on the market growth that you can get once you're using an M&A target for getting a foot into a new market. Therefore, don't ask me exactly by three comma digit the maximum multiple that we will pay, but it will be a prudent perspective first.
Second, are we willing to go in restructuring cases and saying even taking over company with a loss? To be honest, in our priority list, this would not be on a high level because our clear objective is to focus on entering into new market and then going for a company in a stress situation. I do not know if this should be our target to go. So would be very careful. So also in life, never say no, but if that is our target, I would say no. Second part of the question. Third one, if I still remember good, is share buyback. So when you remember my slide with the four pillars of capital allocation, this is just four because it's numbering the different activity, but there is not a timing issue behind.
Let's not say, okay, shareholder participation was number three, therefore we first go for organic growth, then we go for inorganic growth, and when then something is left, then we go for share buyback, and for dividends or for shareholder returns in general spoken. So all these activities have the clear target to go in parallel. That's why what we're doing on the share buyback dividend structure, shareholder return, is something we have and we are discussing having a deeper look on it, but it has timing-wise nothing to do with when comes next acquisition. All those four pillars have to run in parallel, and they will run in parallel. And our first acquisition is already here with Caelo. We are short for closing that.
Yeah. Tim Kruse from Montega. I have a question on your organic growth rate ambitions. I understand it is good to regain trust and have a prudent outlook, but you did mention market share gains in parts of the presentation and growth rates of the markets between 7% and 11%. Does that imply that you are looking to also maybe discontinue parts of the activities you are doing in those segments to focus more on more profitable areas? Because 5% organic growth versus 7% to 11% market growth does not imply market share gains in my view.
Yeah, I think that is pretty close to what we envision for the company. That we look at profitability first, and then secondly at growth. So we want to make sure that we grow in a profitable way, and if things are not fitting our vision or our target picture, we will let them go, or we will also look another way if there is a potential acquisition that would generate additional growth. So that is one angle to that. And the other one is also that the picture of 7% growth today, it could also change over time, and we wanted to be prudent there also, and not overpromise what we see there. I do not know, anything to add, colleagues?
Yeah. Maybe, Tim, to add here. Indeed, we mentioned the 5% and the 7%. I think that it is important to add, we already mentioned profitable growth. Not every compound allows for outsourcing, because we want to add value by outsourcing, by making it more efficient, because we get volumes in, we get longer shelf lives on the product. So, yeah, not every product will be outsourced to us and we will be very closely looking whether it makes sense for us to enter that market.
Simon Scholes, First Berlin. My understanding of the presentation was that you intend to supplant Fagron as the number one compounding platform in Europe by 2031. So I think you are number two at the moment. How do you expect to be able to do that, though, given that Fagron is solely concentrated on compounding and does not have a wholesaling business to deal with?
I think our intention is always to look at ourselves first. So we are looking at our business and we want to grow the business in areas we feel are attractive and with the right margin profile. What our colleagues are doing somewhere else, for me, it is not what makes me think or where I focus on. But maybe I misunderstood your question, Simon.
My understanding was that you do intend to eject Fagron as number one in European compounding.
Myself, I want to achieve the ambition we laid out today, and what other peoples are doing is second thought to me. But maybe different reading on that.
You want me to go first?
No, go for it.
I think we have to be careful. We compared, and we showed also in my presentation the comparison with Fagron and us, because it was part of also the reflecting structure where we say what is the homework that we have to do. At the end of the day, it is not our target to say we are number one and we have more sales than Fagron. We want to focus on our clear targets, as Thomas said. To be honest, I do not care too much about the performance of Fagron as of now. We are going for identifying our targets for internationalization. There is a way that we can go further on, and this is part of the answer. Take Caelo. We know that Fagron would have loved taking that company. Now it is part of Medios. First part of the answer on your question.
Yeah, and I think I understand where a little bit of a misunderstanding might be. To me, it is not just a red ocean that either Fagron or we are doing the business. It is very much to have an offering so that outsourcing and compounding can grow. That is the idea behind our growth trajectory we see for the future.
Yeah. To add, you are referring to the slide we had that we both have the international integrated platform. It is not our ambition to follow Fagron. We have our own strategy going forward. It is not ambition to compare ourselves with Fagron. If you look at the two companies itself, they are already not comparable. We are active in the German sterile compounding market. Fagron is not. I think we have to follow our own direction here and not to focus too much on the other players in the market. I think in itself, the market is big enough for several players to participate in.
Okay, thanks very much.
Because if I may add a last sentence, the focus is for us to convince our customers, pharmacies, and clinics and hospitals to use Medios as outsourcing partner and not to fight to get sales that until now Fagron made to us. That is not our ambition. The ambition is with providing the value added to the customers in getting more into that logic of outsourcing activities. That is where we want to grow.
All right. I guess it is me, Yannik Siering from Münchmeyer Petersen Capital Markets. Thank you for taking my question. I have one on the cash generation and specifically on what kind of cash conversion targets sit behind your 2031 plan. If you can also talk about the impact maybe of more selective payment plans in the SPS segment, if that has any impact on the cash generation.
The good message, first of all, is we assume that the cash conversion that we currently are able to provide with the business we have will continue until 2031. I think we have a quite good structured level that we have here on hand, and that is included in our prudent calculation, first of the firepower and also of the potential to remain continuously under 2.0. Whatever then comes in addition with future working capital projects that we obviously will talk about and we will set it up, I cannot tell you that yet.
The only thing what I can promise you is this is not included in our calculation. We are there, prudent, and once we have the clear plan of additional measures to come, we want to provide positive surprises. But as of now, our calculation is based on the capability we have as of today. I think that is a prudent approach that we are going forward.
Can you already talk about the timing of normalization of the cash flow? Is that already happening in H2? From the, let's say we had some one-offs in H1 of 2026. Should we see a more normal level already in H2 or is that more a 2027 topic?
Let's say at the end, mainly in the second quarter of 2026. On the one side, for sure we see on the cash generation and the cash flow, also the structure that we are in profitability a little bit below our expectation. The second part is that we now had additional tax payment, which was hurting us as well, and this will not appear anymore now in the near future in the last quarters to come.
Great. Thank you.
Pleasure.
Michael Kuhn, Deutsche Bank. A few also from my side. Maybe starting with the organic margin improvement potential. If I look at the 2025 to 2031 trajectory at group level, you improve via mix, but let's say within the segments, we look at broadly flat margins. Is that a reflection of, let's say, potential regulatory headwinds, or is there some element of caution also built in? A second one, on capital allocation. You mentioned that you would go for the four pillars simultaneously.
But is there also, let's say, a prioritization logic included? Because just as an example, currently you could buy your own shares at a 4.5x EBITDA multiple, but you do M&A at multiples, let's say at 5x to 7x, maybe some further thoughts in that context. Last not least, we heard about margins, obviously. But adding to that, is there also a that you are planning to disseminate also on organic growth initiatives? Maybe some thoughts how that might be integrated in your capitalized.
That was a little bit to unpack. Thank you very much for the questions. For the margin, I think we have shown EBITDA adjusted for the SPS business to remain stable at 3%. As Christoph alluded very eloquently, this is already an achievement. We are running a relatively high margin compared to other people in that business, and that margin is earned by hard work. We feel that is a good and ambitious target to keep it there. Remember, we have improvement in segments and every margin improvement needs to be earned. It is not a typical low-hanging fruit. We are looking at a payer landscape that are hand-wringingly looking how to contain costs where medical services are steadily increasing in volume. So we expect that the margin environment is a challenging one, but one that we can navigate and we make margin improvements there.
Those are forward-looking statements. We do our very best to anticipate how this is developing, but it is by no means easy or certain. We are trying very hard for one year in the budget circle and do the five-year planning and getting an idea where we are heading so that we can make best use of our resources. That is how I see it. Any additions?
No, I think I want to underline again that for the wholesale business I explained, these margins are remarkable. These margins are really remarkable. Compared to full range wholesalers, we are coming partly from zero point something, one point something. There I think there we do specific things really right, beginning with only two central warehouses, the logistics that are optimized. We are not serving the pharmacies every single day.
Why? Because it is not needed. We have a specialty portfolio where we can work so closely with pharmacies that we know and can anticipate a little bit the demands, because also the patients that they serve are a little bit more predictable than just the OTC products that are sold today or tomorrow. There I would really want to underline that, going back to the 3%, whether it is 3.1, 3.5, it is already on a really good level and it is, I think, oftentimes really good.
Those things let us First one, just to show additional views on that. First, we play the development of our business through the earnings and also with a compounding we are around 10% going up to 40% net. In addition to that, we aim on a group level to start from EBIT pre in the past. That is not just EBIT, that remains similar to last year. We are adjusting it now. It has to be earned, by the way. Therefore we have to see that in the combination. Also taking in mind the different logic. When you see that, you still remember one of my last slides where I said the starting point, EBIT was 4.5. EBITDA adjusted would have been last year 4.2, and we go to 5.5. At the end, it has to be earned in the different segments.
The main segments to be earned, that it will be the growth on the compounding side with all the other points Christoph mentioned for our wholesaling activity of 3% is a great margin that we are achieving. In terms of the capital allocation and the ROCE part of the question that you had. Yes, for sure, we are working and discussing and having all these now further topics to come in terms of developing us more in steering with other KPIs. This is what I said on the working capital and capital allocation. Yes, we are on a definition of framework. There is some homework to be done and we come back once we have that. We do not want to promise any blue sky things. We come back once we have that and then we will be ready for execution.
Having there, in addition to the KPIs we have now, then also can offer more and more other topics to come. That needs some time. For the share buyback, as I said, the four pillars, it is not one after the other. They are going in parallel and all the rest in terms of timing, let get you surprised.
Matthias Durner, ShapeQ Family Office. I have a question on sort of having the wholesale and the compounding within the same group. Are there any hard, let us say, operational synergies between the two business divisions? Apart from, of course, having one group CEO, one group CFO, right, and finance department. On an operational level, are there any hard synergies?
I am not sure I heard correctly. You say hard synergies? We have the synergies that we use, yeah.
Monetary synergies, efficiencies and so forth, right? Because on the one hand, you have a wholesaler, right? You do not produce the stuff you sell into wholesale, you do not produce yourself, right? I am just wondering, are there any synergies between the two divisions?
Yeah. There are substantial synergies, and we see that on one hand on the procurement side, so that we procure the entire volume for us and what we need in compounding in terms of processing, in terms of manufacturing positioning. There also, I am going to call it hard money technology synergy there because we understand markets, we understand the demand. Also a better behavior in both segments. The third is that site. We are bringing new single customers for, especially on the side of compounding, so we are buying both market activity.
Which is clearly below the maintenance CapEx, for example, Fagron states. Do you have so much capacity still in place within your organization?
We have a maintenance CapEx that we execute every year, and we believe the model so far, as we set it up, is correct.
Lastly, for the moment, could you mention something about your working capital ratio? It is currently about 7.5% of your turnover. Do you expect that to remain the same, or do you still expect some improvements to be achieved in that area?
Sorry, can you repeat it again, please?
Your working capital ratio.
Yeah.
It is about 7.5% of your turnover at this stage.
Okay. Yeah.
How do you expect that to progress?
At the end, what we have now in our working capital structure, that is what we maintain for this period of time in our own calculation to maintain it stable. All what comes in addition of optimization will be part of our working capital program still to be started, and once we have there more clarity what come, then we will report on that. It would not be fair to give you any blue sky numbers and saying, "Okay, this and that would be the optimization." For sure, each company can and has to optimize continuously working capital approaches. Key numbers that will be part of a project that is still to come.
It is a question from an analyst. I have a question regarding your growth strategy, your compounding area or M&A. To what extent the European Union will provide a different regulatory framework or going for liberalization of several countries to support maybe your ambition? Are there any changes in the next couple of years which you can expect? For example, there is a very more liberal handling of compounding in Europe, or do you think that the former framework will just remain stable as it is?
You want to? If you look at the framework we have now, it's regulated on national level. What I explained in my presentation, you have sterile compounding, the outsourcing allowed in Germany. But non-sterile is still done in the Apotheke. The Netherlands is highly progressive. Sweden is progressive. So at the moment, you see every country having its own regulatory framework. The European Union is working on a new EU directive pharma law. We expect that to be implemented somewhere in 2028, and so far, this looks good.
However, in the drafts we have seen, it still means outsourcing will be not forced to countries, but the local regulators can decide it themself whether they want to allow it. If you ask me, is there something going to change? Yes, there will be a new EU directive. Compounding will be in it. And so far, and I'm also looking at my colleague, Christophe, we don't see negatives in it for our business going forward.
Thank you.
Yeah.
Thank you for your questions, and thank you for all the answers. We now start the onsite program. This is why we would like to thank all the participants in our stream for their time and interest, and this will end the stream. Thank you.
Bye.