Eckert & Ziegler Strahlen- und Medizintechnik Aktie

Good afternoon. This is Harald Hasselmann, CEO of Eckert & Ziegler. Very much welcome to today's analyst conference, August 13, and I'm going to present to you the first half year results of the year 2026. With me is Karolin Riehle and Julian Schröder, and I'm pretty sure that you will have questions later on, finance related. And Julian, as always, is well prepared to step in, correct me or add what I have tried to present beforehand. I will give you an update for the first 6 months for the first 15 to 20 minutes, and then I open the floor for discussions. You know that what I'm talking is more important than what I have written beforehand. So this is the usual disclaimer. And all what we have achieved is accomplished by 1,000 employees around the world, out of which you see here the Executive Committee with Gunnar Mann and myself representing the Vorstand, but the entire executive team is mentioned here, representing both segments as well as the holding.

For those who are following our presentation, some of these slides are familiar to you. Now with a lot of excitement, we have added 2 companies and 2 deals here just recently. BWXT Medical has a new owner up to $800 million being paid for that business and 10x more, USD 8 billion have been paid to acquire Lantheus. So it's not only that the business gets more and more busier, but it's that the momentum continues, that big industry and investors are paying a lot of attention to build up here a really big industry for the treatment for imaging and treatment of cancer and other treatments around the globe with small companies, big entities. And this story is up for continuation.

That's why we do believe in a strong uptake for the next 5 years on a 15% average growth rate up to 2030. The market should exceed a USD 25 billion by then. And Eckert & Ziegler's aim is to participate, to participate with our broad portfolio of products which we have. You know that our flagship is the Gallium generator. It is our Lutetium customers where we are getting the momentum now. It's Yttrium, a long-lasting isotope in the market for many, many years and really contributing to Eckert & Ziegler's success. Actinium being produced regularly, constantly with high yields to be sold to customers. And of course, our equipment and services, our CDMO business. I will talk about that in a minute.

Now these are the customers in the 3 main areas: Lutetium, Actinium and contract manufacturing. I'm mentioning these 3 pillars because they are those which are representing the growth momentum. I could have also mentioned all the Y-90 customers or the GalliaPharm customers. But here in Lutetium, in Actinium and our CMO business, we want to grow. We are demonstrating the growth momentum for the years to come, and that's why it is important that we have big customers and also smaller companies on all of these 3 pillars, which we are making in contract manufacturing. For those who are following us for a longer period of time already, you know that we established that business in order to foster the interaction and the relationship with our customers that they do purchase isotopes later on. Meanwhile, that business has become an independent franchise in that respect that it is generating growth, revenues and profit, all of the above, and that is to the satisfaction of the entire strategy execution team.

Now here, we see the 2 wheels in which we are working. The upper part is the Medical segment, the lower part is the Industry segment, sources isotope, sources and isotopes in all areas you might dream of, and that's why we are continuing that growth. Talking about Medical because here, most of you are taking the highest level of interest. These are 4 events which took place in the last quarter. We have opened our factory in Jintan in June of this year. We entered into a partnership with Thor Medical for the evaluation of business possibilities for Lead, for Blei, Plumbum, Lead-212. We have been awarded for a team award for Best Managed Companies award. And in our baby -- our Therapy business, a very important certification. The MDR certification has been granted for our eye applicators labeled with Ruthenium-106. So these are 4 important news, which have been published, among others, in order to demonstrate that we are active in all these areas.

These are numbers of last year. 55% of the revenue is generated within Medical, 64%. So almost 2/3 are generated in terms of EBIT adjusted within the Medical that demonstrate a higher efficiency where we are working with approximately 400 people in the Medical, 600 within the Isotope segment. That's why you see here on that side, the revenue per employee is EUR 200,000 with the Isotope and EUR 400,000 within the Medical segment. So that really demonstrates how important that business is and will continue to grow. Also last year's numbers to start with our strategy, growing top line and bottom line with a mixed portfolio in both areas. And last year, these are well-known numbers with a growth rate of a margin above 20%. You remember 20% is the threshold we don't want to undermine [indiscernible].

Now how does the first half year look like? The press release has been published today morning. For those who do know the story of Eckert & Ziegler, we were suffering in last year in '25 by the cyberattack in the first half year. And that's why for the first half year, a pure apple-to-apple comparison remains ambitious due to 3 effects: A, is the cyber effect; B, is a big license deal in the first half year of last year, which happened with Actinium-based at EUR 5 million. And third is the FX adjusted numbers. And I would like to highlight that because if you just look through the flat overall sales numbers of EUR 150 million to EUR 150 million more or less of the last year, that is only partly true because there is no license deal this year. If that was to include or adjusted by last year, then logically, the sales number would be positive.

Most importantly is that radiopharmaceuticals, so the composition of everything which deals with radioactive materials within the pharma business with the pharma world continue to grow. 3% compared to last year. License adjusted even double digit. And that is, I mean, you can adjust whatever you want. But it is important at least to mention that in this year, there wasn't a license deal yet. And if you compare that with the operator [prior] business, then it's really a super result of a double-digit growth compared to last year. Now there are some positive effects, some lower effects. I come to that in a minute, a mixed picture. And that is also here if you look to the EBIT adjusted number, it's slightly lower than last year. Here, again, the license deal, of course, this year is missing. And then we have also some other issues within the Isotope business. I will talk in a minute. And then net income, it's positive here with 5% growth compared to last year due to some positive effects in terms of financial results and others.

Let's look to the 2 segments with a more detailed view. Here, we see that our CDMO business really continues to grow EUR 3 million more than last year. Lutetium stronger than last year, EUR 2 million more, Y-90, EUR 2 million more than last year and generators also EUR 2 million more. So in all our important areas where we want to demonstrate our growth momentum, we are growing and that is good to come. Now if you look to pure Actinium deals, of course, as we are missing the license deal in this year, you cannot compare last year to this year. So I would say in the pure Isotope segment, which really represents the radiopharmaceutical business, positive news. FX adjusted, it would be even stronger.

Now engineering, our ITD business in Dresden, is weak. There is less demand and less orders incoming, and that flattens the overall performance within the Medical segment. EBIT adjusted, good result here, growth by 7%, even not considering the license deal. So if you compare that, then the apple-to-apple comparison would show an even stronger adjustment and stronger growth on the EBIT adjustment here. So that's overall good. And I think you would agree with that, that the EBIT adjusted margin even above 30% is a skyscraper level. Now Isotope, a mixed picture, flat revenue. And in terms of EBIT adjusted, we see a downgrading here, minus 24% because the product mix is less favorable. We are losing industrial, which is really having a good gross margin and that we are missing in compared to last year.

Now what is the outlook? The outlook for this year is if you compare that in the first quarter of this year compared to first quarter of last year, there was negative growth of almost 50% in terms of EBIT adjusted. And that has now come down of basically a flat Q2 result this year last year, only minus 5%. So what we mentioned earlier on is that the trend is positive, very weak starting point at the beginning of this year. And then step-by-step, we are improving. That gives us a lot of confidence that by the end of the year, we will achieve what we have planned, what we have budgeted, what we have communicated also in the IP segment, and that's why the positive trend is positive. And I think here, if you look to the pure 2Q result here, then we see that Q2 is even better than last year, the Q2 of last year with plus 5%. And that demonstrates that the overall performance here for the first half year is positive.

There were basically no big adjustments. You see here, it's everything below EUR 1 million. So I skipped that slide because there are no big events for the first half year. Where is the revenue and the sales are coming from, basically, no big change, some slight deviations. Europe is growing here, more sales in Germany and the U.K. and Scandinavia. So that's growing so that 40% of the overall revenue is generated in Europe. Also, approximately 40% is coming from North and South America. So no big deviation. China and Asia, a little bit less than last year because the license deal is missing here that you can see very easily. Otherwise, also no change. So the group revenue split in the continents is stable in spite of all international conflicts and disruptions you might dream of.

So here, a very stable picture. And if I look to the radiopharmaceutical picture, here again, what is happening, growth, no license deal compared to last year, but the overall trend positive and also in the years, in the quarters to come, we expect an overall performance in order to achieve our EUR 160 million round of EUR 160 million by the end of the year in the composition of where you're talking Y-90, Lutetium and Actinium, so the bulk radioisotopes, but also our generators, the cold kits of South America CMO business continued to grow. So that overall gives you the picture where basically 50% of the overall company's revenue is coming from.

Let's have a look to the balance sheet. Cash. Cash is king, still EUR 100 million and slightly more of cash, which we have in our bank account than receivables, money, which we are collecting is also a good number in terms of overall ratios. The loan liabilities on the other side have been further reduced, only EUR 10 million. So we are basically debt-free. And here, we see some benchmark. EBIT adjusted, I mentioned that number before and is stable. Cash flow is missing here the license deal, but everything is also according to last year. Cash stable, loan stable, equity ratio slightly better and headcount in the area of 1,100 FTEs around the globe. So basically, there is no big changes in terms of the KPIs compared to last year. If you want to melt it down, here are the 4 key factors from equity ratio to cash flow and EBIT adjusted numbers. Outlook. What is the outlook, EUR 320 million or the range of EUR 200 million to EUR 320 million top line, EUR 80 million bottom line, and we remain confident to arrive in that range as we have announced earlier.

Before we open the Q&A session, I want to give you some updates why we are always talking about China, why is China so important for us as a supplier of isotopes within the oncology area. If we compare USA and China, we see that, unfortunately, and that is the middle chart here of that side is that in China for the 4 most dominant cancer diseases, breast, lung, colorectal and liver, it is detected by far too late. 70%, 80% of the diseases, which are most dominant in China are only detected and imaged and it's basically too late. So we have new cases of China vs. U.S. is twice as high, no surprise. We have much more inhabitants, but the death per annum is 4 to 5x higher. So that gives us a strong need, and it illustrates why China is so actively in building up more PET centers, CT centers. They want to double the number within the next 10 years that more patients should be treated and more hospitals should be equipped to treat and to image cancer.

And how they want to do it? They want to do it with Lutetium, with Actinium, with Gallium and with Lead in these areas I just mentioned, lung, colorectal, breast and liver. And these are not only our partners, importantly enough, but these are also the big players. And how is the overall landscape? There is demand and availability of our Gallium generator. And if you look, there are local producers, but Eckert & Ziegler also plays an important role here for the supply of Gallium-based generators. Same applies to Y-90. The global supplier is basically only EZAG. Lutetium, we are not producing in China, but we are exporting and we are sending to China because there is a big demand. And let's see how the development for Actinium and later on also for Lead is. For Actinium, we are already selling to China, and it's good because different to other products being sold in China, here, we see a high price for Actinium for the current situation.

And Eckert & Ziegler set up with basically 3 pillars. We have our network with our distributors, which you see here, a lot of distributors working for our products. We have our joint venture with DC Pharma to produce in China for the Chinese market, our radioisotopes. And we have our own sales office selling our products into the entire Republic of China. And we are placed in Jintan here as our sales office as well as our production. And from that perspective, we want to grow. And we started that basically that journey 3 years ago, less than 3 years in setting up the joint venture, then we are setting up our cyclotron. We had the inauguration in June this year. And in August, the installation of the hot cell took place. So we are fully on track in setting up here our production facility. I just want to illustrate here how important China is for the medical market and how Eckert & Ziegler is positioned here.

With this one, I close the presentation, not forgetting Karolin's slide here, what's coming up. There are lots of conferences in Hamburg and Julian is traveling throughout the U.S. area. And then we have later on here in Munich and other conferences where we do hope to see you. Next quarterly report is November the 12th. With this one, I stop sharing my presentation. Thanks for your attention. And I do open the Q&A session and look who is first. I see here the first number. And please with this one here.

I'm wondering about the full year guidance, you're guiding for EUR 80 million of EBIT. Now you achieved EUR 33 million in the first half, so you need a significant step-up in the second half. I'm aware there's going to be a EUR 5 million license payment that you're expecting in the second half. But can you give us more, or can you talk about your confidence and the drivers why the second half should be significantly stronger on EBIT than the first half?

Is this your only question or is there more?

The other question is regarding the product mix in Isotope. You said there was, you suffered from a weak product mix. I think it's due to industrial weakness and also oil well logging. How do you see the product mix developing in the second half of the year? That's it.

Okay. Julian, do you want to step in here with the bridge from the guidance?

Sure. Tim, I mean, basically, we have the situation at Medical is performing quite good. So doubling this plus the EUR 5 million is more mathematics show us that this works out with the guidance. So I think the decisive factor will be Isotope products. Looking at Isotopes product, we've seen the momentum growing. And as you mentioned correctly, we still have this weak product mix. Going forward, we still expect the industry, including oil well logging products, to maybe not catch up, but to increase.

And this will, and this is the expectation will be a more favorable product mix in H2 as well. Plus the third topic for the holding, we have this onetime effect in H1 now with a correction from last year and some reassessment of this year, which will not double and not be shown next half year again. So having all this, I think the holding will be better for sure. And IP is going to catch up and Medical is either way on a good way.

And the second question was also the product mix as such for the Isotope segment.

Yes. I mean basically covered this. In the end, it's all about industry and oil well logging products. I mean we're going good with the medical products with the high activity radiation sources, which is mostly linked to projects that we realize when we have a good order intake, if you want. So the decisive product will be for this industrial high-margin products.

Yes, sounds good. And your customers in the industrial business, are they signaling, is that what is, your discussions with your customers, is that what is giving you the bullishness for a further, for a pickup in the second half of the year?

Yes, we get the feedback from our American colleagues that already the order intake for Q3 is way better than for H1.

Nicolas, you are the next one.

So maybe 2 for me. The first one will be on the Lutetium revenues. I think you highlighted that you had a very strong momentum if you compare to last year. Could you kind of run us through what were the drivers that led to that? And is there any one-off, or we should expect that, let's say, the trend is probably starting to ramp up and we should continue to see that. And we could maybe expect that you might almost reach like a double-digit million maybe of sales for the year, something like that.

And second question was on what you just discussed about China and the strategy. In your view, what will be the ideal geographic split that you will need to, are we to think that long term, we should see maybe 25%, 30% of the group revenues there, as you highlighted, the huge market and, let's say, not so much international competition for now.

And lastly, I was also wondering about the Medical segment margin. Is it the right read to say that what allowed you to get to the 31% margin is the underperformance of the Engineering business? And so if we see a normalization there, we should see, let's say, reverse effect of margin?

Three questions, happy to take. So first one was on Lutetium. I think we will achieve double-digit sales numbers on an annualized level. That means if you take on the 12-month perspective. Now for this year, that will be ambitious to achieve because we see a strong order incoming now from June onwards. So I cannot confirm that for that year yet. Is it a onetime effect? No. It's really a positive trend in 2 areas. A, we have our big customer for which we are setting up our factory and that they are slowly increasing their numbers, Eli Lilly on the one side, but then also within all the smaller hospitals and customers, they are intensifying their order pattern, ordering pattern, and that also contributes to a steady flow. So our sales team is happy that on a monthly performance, they have not only grown month by month, but it's also stabilizing on a high effect. So we are really happy with the development of the Lutetium business.

Now with China, yes, the number which we are mentioning is our target. The question then later on is how you define it. If we produce in our joint venture, isotopes and you tell that this is then a joint venture selling expertise and exercise including into the number which you are mentioning, although we are using it internally, which we will also do Germanium being produced in China will be also used by ourselves. So if you take that also by adding up the number which you have mentioned, then it is a good range. And our perspective is as follows. We want to be present in all the 4 big continents, Europe, North America, China and South America, not only because of the chemical structure of our products, which have to be close to the customers, but we also want to be, to a certain extent, producing locally in local markets.

And that's why it is good to have sites also in Buenos Aires and in Brazil, where we are opening our factory beginning of September. So that all goes into the strategy of being not only a fully fledged supplier of isotopes and equipment, but also to be localized.

Third question, medical mix, yes, the 30% plus is something I mean, we always said we don't want to, we have to be above 20%. And if we are reaching 30%, then we are coming more to the area in which industry works. That is not our business. I think it depends. We also want to use the money which we are generating to invest. And if we invest, then we have depreciation. So a very high number is not necessarily also demonstrating a single-minded super results. So I would say 25% plus is something where I'm more than happy.

Then next one is Switzerland.

Also on Medical and the margin, I must say I was quite astonished to see. I mean, I understand that the top line was flat because of the license deal last year. So that's far I understand. But then you generate more than EUR 2 million more EBIT. So with the sales that compensated a super high margin license deal, you produced more EBIT, which is quite astonishing. I mean, maybe you can explain a little bit in more detail how you managed to sell Lutetium and Yttrium, et cetera, at gross margins, 90% plus.

Yes, so Marc. It's -- not everything is as good as Im Schokoladen, but that is, honestly, the gross margin for Y-90 is good. And I presented that the sales for Lutetium are increasing, and that also contributes. But more seriously, Julian, do you want to contribute to that also?

Sure. I mean, in the end, it's a mix. A, it's high-margin products that are going very well. And this is like for H1, for example, the generator where the margin is not drastically increasing. But for other products as like Yttrium-90 or Lutetium in this case, both, the costs are flattish, whilst our revenues go up. And seeing Lutetium, for example, I mean, a couple of you guys here, we talked about it for a couple of times. We have the irradiation of the Ytterbium-176. And I mean, I won't tell you the factor, it's hard to tell. But once we irradiate the Ytterbium, we can sell Lutetium for either one or Factor X patients.

And we are in such momentum. We are producing weekly, and this is not 100% what we did last year, but close. So extra revenue is really giving us extra margin. Plus the second effect, what Harald already mentioned in the presentation, that our engineering business, the hot cells we produce is comparably weak this year due to a couple of reasons, shifts to intercompany business. We are producing our own hot cells for Boston, for example, for China, plus weaker sales. And this engineering business had very low margins. So going down there, where top line, we are very sad. But bottom line, we are...

No, I understand that the margin might go up, but I mean the EBIT also went up in absolute numbers. But, but let me ask differently. I mean you will, last year, in the second half, you had another EUR 9 million of license income. And this year, I think you're expecting some EUR 5 million. So there is, again, a negative delta of some EUR 4 million. Should we expect that all the reasons that you mentioned why EBIT grew in the first half in Medical that this applies also to the second half, so that we should expect second half medical EBIT to also be better than last year despite the fact that you still have to compensate for EUR 4 million of license revenues?

For the time being, I suggest we expect what we're guiding for. I mean I see where you're coming from, and I see that there is a lot of potential, numbers-wise. Operational, there is a little bit of headwinds. So we also really have to work for this. This is, it's not just working. So the official answer is go with what we guide for and the rest we will see.

Okay. Next question...

I ask to give you some more, I mean, Julian mentioned already, we would have loved to see a stronger performance of the ITD business. We would have loved that more products have been approved meanwhile than just Pluvicto being on the market. If you look to the landscape, there are tons of compounds in the studies. But if you look what really matters so far, now it is Pluvicto. And that's why the big wave still to come. But here, we are producing Actinium, but we could sell more Actinium because our capacity, I always mentioned that we are lasting here for several thousand patients to be treated for clinical studies, but that is only possible if someone rings the bell and we have that. So what I want to say, Eckert & Ziegler is a first-class supplier. But if the demand of isotope isn't as fast as we are scaling up, then sometimes we have to be also patient. And that's why the guidance remains an ambitious target.

Sure. Maybe on the guidance, my next question. On Slide 20, you're now having this 2026 guidance of EUR 160 million. This is EUR 160 million of radiopharmaceutical sales, not medical. Because in the past, sometimes you would say group and then you would split up isotope and medical, but the EUR 160 million is radiopharmaceutical sales.

Okay. So we will see a strong acceleration then obviously, I mean, that's EUR 160 million you had EUR 70 million in the first half. So we should expect EUR 90 million of sales in radiopharmaceuticals in the second half. That compares to EUR 77 million you had in the second half last year. Do I read this correctly?

Yes. Of course, we want to, we have stronger sales in Y-90. We have stronger sales in Lutetium, we have stronger sales in Gallium.

Okay. No, it sounds very good. And you have EUR 4 million less in licensing but still Okay. Then my last question is, there was this consolidation. There was like Curium buying Monrol or something, a Turkish company. And apparently, they are producing a Gallium generator themselves and Curium used to be a distributor for your generator in France. And now they're going to sell their own generator, probably competing not only in France with you guys, but maybe also on a global scale. I mean, can you comment on this, the competitive landscape in Gallium generators? I mean, so far, there used to be 2, now it seems there are 3 players. So maybe if you can highlight this.

So the question is a good question. It's not completely unexpected, but let me give you some light on that. We had, for many, many years, it was Eckert & Ziegler basically alone on the market, then IRE joined the market, then ITM joined the market. ITM basically disappeared. Now we have Monrol generators coming on to the market, and we have also some from South Africa and other areas. We have potentially also a Chinese generator entering the market.

So the market is growing, and that is a good signal to the market. There is extremely increasing demand, and that's why the stronger the demand is in the high price area, it is attractive also for competitors to join. And that's why I'm happy that we have more competitors because it demonstrates that we are playing in the right market. I'm afraid or I'm disappointed or I'm anxious or I'm nervous or you name it, about competitors because I have to share potentially the growing cake with other people with appetite.

And the same applies also to the Curium generator. They aim to enter into the market, and they have potentially a fairly good generator. Now what triggers the decision of a potential customer to buy a generator it is experience, it is reliability. It is redundancy. It is perhaps price, not so sure. But at the end of the day, it's quality, quality, quality. And Eckert & Ziegler is in the market for more than a decade. We have different sources of Germanium. So if one of our raw material supplier of the precursors fails to supply, we can easily shift to someone else. So we, I think we are super well equipped with a long track record. So I'm not afraid of other competitors into the market. Sometimes they probably will also gain a customer, but we are well established to defend our position here.

Then I think Alex is the next one here.

Dr. Hasselmann, you hear me?

Yes.

May I ask you 3 questions, still very brief? Could I ask you if you could comment on any effects that you've seen from the introduction of Gozellix into the market by Telix? My second question is that at this point last year on generators, you said that the order book for this year that 2025 is full. The order book for next year is almost complete, not fully, but almost complete. So could I ask you to comment on the level of order book for generators as it stands at the moment, please? And the third question, my final question, which is more general. Could you comment on whether you think Copper dotatate has any ability to take share from Gallium?

Thank you, Alex. So Gozellix has been introduced by Telix in order to broaden up their possibilities to enter into the market. It can be used both either by the cyclotron and also by a generator. Now what are we doing in the most dominant market, we will launch a new generation of generator, the so-called GalliaPharm 200 by the beginning of next year, and that can be also used with the Gozellix kit. So that means that the hospitals which do not have a cyclotron, they can also rely on our high quality and quantity and high activity generator, GalliaPharm 200, in order to cope with that.

So I'm pretty confident that here again, we will profit with a growing market. And if you look what Telix can do, they are growing and they are defending their position not only against other Gallium-based kit producer, but also against the F-18. And that brings me to your third question, are we afraid of copper? I think the race currently is between F-18 and Gallium and copper might become interesting, but we don't see so far any indication that we are losing business or generator business through the disadvantage of Gallium or the advantage of Copper dotatate so far, that is not really playing a big part.

The order book, normally, we have a lead time of 6 weeks. So customers are asked to place their orders 6 weeks in advance in order to be shipped with the generator in due time. Now that would be 6 weeks from today. Annual would be order book end of September. But if I speak to my colleagues in the customer service department, they know pretty much what they will have sold by the end of the year. So the order book until the end of the year, I wouldn't say it's 100% sure, but we can pretty much predict how many generators we will sell until the end of the year.

Super. And then I have the next one is Simon Keller.

Two questions. Firstly, on the M&A market that you also described earlier. Do you think these deals have any positive or negative impact on your business, especially those 2 deals that you've mentioned today? And are you considering to play an active role as a consolidator as well? What are the drawbacks or what's your consideration here? And then secondly, on the, I mean, the Telix readout on BiPASS Phase III study is still outstanding for quite some time. And I was wondering whether you see any chances for guideline changes even before the readout?

Okay. So the M&A market. I'm wondering about the prices PE companies are sometimes paying in a general statement. And that is rather a personal statement of Harald Hasselmann than here an official Eckert & Ziegler statement to be taken as such. But I'm surprised how much money is paid for companies within the industry. Overall, it is a signal that the money which is available is invested in radiopharmaceutical companies because they do believe this good reason that they can harvest later on more money out of the investment than they have put into the money. And if they put $8 billion in, they have a business case which justifies that investment.

And so I'm surprised on the one side about the high money being paid, but I'm also happy that so much money is invested because it demonstrates that we are on the right track where if money is invested into that industry, we can expect that also outcome that will be available.

And the better the outcome of these developments is, the better it is for us at Eckert & Ziegler as a supplier of isotopes for that area. For the specific ones, which you have mentioned, BWXT is a super company, and they will now be probably in an area in which they can position themselves as a good player, and we have areas where we compete and where we cooperate, and that will continue. So I don't think that on a normal professional business side, we will see a lot of changes neither on the first nor on the second deal, which just happened.

Will we play an active role in the consolidation? I would give you the answer slightly differently. I would say we are very carefully looking to the opportunities in the market. And if something interesting pops up, we will consider that very seriously. What I can promise you, Eckert & Ziegler is not in the situation to take a loan of $8 billion and to buy companies of that range. But we will look to what fits to us, where we can add.

And that's why our current discussion, which we have, for instance, with our cooperation partner, Thor Medical, where we're investigating possibilities to work together that not necessarily enters into M&A deals, but rather in cooperation deals. So both, we are open for both more cooperations and smaller M&A deals. And if that happens, you will be one of the first being informed about that.

And regarding the BiPASS Phase III study, I mean, basically saying whether guideline changes are possible.

No guideline change because that will take longer. The BiPASS study as such is, as far as I know about the BiPASS study, it's a super indication because it would enable all the urologists to replace a biopsy by a PET scan with Gallium. And so if the results are positive, that will also boost the overall business and then we will gain on that, but I don't expect that this will influence this year's guidance.

Alex, you have raised your hand. I don't know whether that is still the case.

Yes. I just have one follow-up question, please, on what you said about the upcoming GalliaPharm 200. My reading of the prescribing information from Gozellix that it's compatible with Eckert generators. It doesn't specify whether it's the standard or the GalliaPharm 100. But going by the number in principle, GalliaPharm 200 would be very large and powerful. What purpose does that serve for a remote hospital that presumably has only a very small amount of people? What do you need to introduce the GalliaPharm 200 to do that the 100 does not do or that the standard one does not do?

Very good question, Alex. Basically, the reason why we are launching the GalliaPharm 200 is of 2 reasons. One is we want to demonstrate, hopefully successfully demonstrate that Eckert & Ziegler is always front of the edge in launching new adaptions of the existing model. So if the GalliaPharm 200 will be launched, it will be the first in market with these high [indiscernible], now why is it used for? It will be used for those radiopharmacies in the U.S. market who either need a high activity from the very beginning onwards or whether they have a high number of elutions to be pulled out during the day.

And that can be done with, so to answer your question, the GalliaPharm 200 will be more and more than used by the high-quantity radiopharmacies who are currently saying no, 50 is not enough, 100 is not I could put 200 in a row or combine it, but then I pay more money for GalliaPharm 200. It will be a softer start. So in the beginning, if we meet in Q1 of next year, and Nicolas asked me how many generators 200 have been sold so far. So that will be a very low number, but it demonstrates that we are on the market and then it will grow step by step.

Don't see any more questions. Thank you very much for your attention. And please reach out if there is more to be answered in the next phase. Otherwise, for sure, we will have the next opportunity to meet again. Thanks very much. Have a good day. Bye-bye.

Ladies and gentlemen,, this is Harald Hasselmann, CEO of Eckert & Ziegler SE speaking, very much welcome. Good morning and good afternoon. I'm speaking out of Berlin. And together with my colleagues, Karolin Riehle and Julian, whom you all know pretty well, we are going to lead you through the Q1 results, followed by a Q&A session. My presentation, which will last for the first half of today's meeting will be recorded. So for those who cannot participate, you are able to listen to once. Thereafter, whereas the Q&A session is a live session only. So in a nutshell, the Q1 result of 2026 confirms that our strategy is in line and that our numbers are on track. By that, we are also confirming our outlook, which has been published earlier this year. I will lead through the over.

Sorry for interrupting. I only see the title slide. I don't know if the others. That's right.

So I will lead you now through the presentation and just wanted to keep you alerted that the key message of today's Q1 result is everything, as we say here in Germany is on green light. Now let me go through the slides step by step. You know the usual disclaimer, which demonstrates here that everything is based on the legal and overall environment. The Group Executive Committee consists of Gunnar Mann and myself running the company, together with our Group Executive Committee, which is represented by all important functions throughout the organization, we take the full responsibility and ownership of what's happening here within the business. Looking backwards, looking forward, you see both here, revenue increasing year-by-year. There is a dark blue line and the net profit line. We have chosen here the net profit because we used to present net profits for a long, long time. That's why you see here the numbers over the last year, constantly increasing both in absolute numbers as well as in margin. Now how does this look like in precise numbers for the years to come. We remain extremely optimistic for the field of nuclear medicine that is the medical part in which Eckert & Ziegler plays a dominant role. And you see here the key milestones starting with Bayer's Xofigo product more than 10 years ago and then launching Lutathera for Novartis, launching Pluvicto, Lantos and others. All in all, there's a strong increase. We do expect together with overall consents of 15% CAGR year-by-year until the next -- until the end of this decade until 2030, assuming up by EUR 26 billion overall market in which Eckert & Ziegler wants to play an important role. Here are those companies who have decided to participate in the game of radio nuclear medicine, big companies, smaller companies, the M&A trend continues. There are still companies on the market who haven't been acquired. And mostly, it's the big companies who do acquire smaller ones in order to also participate in that imaging and therapeutic field of radio diagnostics and the theranostics as a buzzword. And I'm happy that this slide remains part of our investors and analyst deck because it gets busier and busier every time I'm presenting here that slide to you and the other folks. Eckert & Ziegler plays in most of the existing isotopes and important, if not the market leader position, Gallium, our generator business, very strong in the market in North and South America and Europe, but also in Asian countries. And then we have the individual vials, which we are selling Y90, Actinium, Lutetium, but also then the wholesale business, the overall analytic and quality instruments, which we are selling combined with the CMO and CDMO work. Here, the customers. Some of you have seen that slide. Here again, more companies are added, both for Lutetium as well as for Actinium for the isotope part, but then also for the CMO part where we have our sites here in Germany as well as in North America and in South America. Eckert & Ziegler produces nothing else but radioisotopes for the medical part, that is the upper part where for hospitals, clinics, health care professionals to the benefit of patients and for the industry, for validation sources, quality assurance or overall industrial measurements, we are the leading provider. What are the highlights of last year -- of last quarter, I'm sorry. In February, we entered into a development partnership with Molecular Partners. We are constantly now producing Actinium out of our facility in Czech Republic, and then it's further processed in our Braunschweig facility. And we have a new analyst, new ways initiates the coverage with Bio rating. So overall, all good news. I talked already about our partnership with Molecular Partners last time. But here, once again, it enables us to also move into different areas. Now let's come to the numbers, and let's discuss here what has been achieved in the first year. The medical part, which is shown here in orange, clearly plays a dominant role both in revenues as well as EBIT adjusted. You see 65% is generated by the Medical division. And here, we have a revenue of EUR 171 million last year and an EBIT adjusted of EUR 50 million for the isotope business, the revenue is comparable more or less equal. But in terms of EBIT, it is getting smaller because the driving engine is the medical business. So that was all last year. Here, again, our strategy pays off, I will say, and hopefully, you can confirm that growth in overall revenues as well as EBIT adjusted and also the EBIT margin, constant increase here, the numbers of last year. This is all not to. So here we go to the Q1. The overall sales grew by 7%, above EUR 73 million almost. If you look to FX adjusted revenues, it would have been double digit. You all know that we are seeing currently a weak U.S. dollar, and that is also a headwind for us. So FX adjusted, that would have been better. But the case, sometimes you win, sometimes you lose. Radiopharmaceutical continues to grow. I will come to that later on, on a separate slide with more than 20%. And most of that is coming out of the medical business here with more than 20% growth compared to last year. IP, the third-party sales in the isotope business is lower than the quarter of last year, minus 7%. We will talk about that in a minute. So here are the sales and looking to EBIT adjusted, there is nothing easier to compare this quarter of 2026 with the first quarter of 2025 because you all know that the comparison of these 2 quarters is really ambitious last year. At the same time, we were suffering from a heavy cyber attack on the negative part, we had delivery and logistics issues with bringing the generator on the street to the customer. So that was really painful in the first quarter. On the other side, the positive effect of last quarter was that we have a license deal with China, bringing not only cash to the company, but also revenue and income. Now if you compare these 2 events, both the cyber attack and the delivery issues for the GalliaPharm on the one side and then the positive effect with the license deal. These are 2 extraordinary events, which makes it very ambitious and difficult to compare with this year towards last year. Now we see a strong sales increase despite all these challenges. Now with the license deal, which was heavily also putting money to the bottom line, there we were suffering together with the low performance of IP in the first quarter. That's why if you look to the adjusted numbers here, we are more or less on last year's level. Net income is slightly better, but let's focus here on the EBIT adjusted numbers for the time being. We will for sure in the Q&A session, talk about that later. Medical, I mentioned that already, there was Q1 here, it's in bold letters. It's mentioned Q1 2025 was heavily impact of the cyber attack. Now still, we are growing more than 20%, FX adjusted by 24% compared to last year because Q1 was low last year. This year, it's a normal one. And even in terms of pure generators, we are growing, and that's why we are also very optimistic, positive and confident about the overall performance within Medical. EBIT adjusted, strong increase against previous year in spite of the license deal of last year. So a good result here in the EBIT adjusted and also in the net income, we see a positive trend due to the high and profitable GalliaPharm business, which we performed in the first quarter of 2026. We go again. For those who are following the GalliaPharm business more closely, you see all in dark blue the countries where we are selling GalliaPharm. And in -- we are not covering the entire world map, but we are represented in all the big important markets, latest country, small country is Georgia here in Eastern Europe, but more and more countries are going to be added, and that brings also more sales in addition to the wideness of the indication level. Lutetium and other important isotopes. And what I'd like to show here is that there are lots of new products on the horizon. These are the potential estimated market entry dates in addition to the already existing products from Novartis against neuroendocrine tumors, small lung cancers and prostate cancer, lots of new products, which are already in Phase III, happy to supply them. You all know that Eli Lilly, for instance, is a big customer for us, and that's the reason why we are investing a lot of money in a second production facility here. So in the years to come, we do see an overall market increase by factor of 5 from EUR 100 million these days until EUR 500 million in the years to come by 5 years. the potential of the overall market for Lutetium should be increased by factor 5. Looking to Actinium , the situation is comparable. Also here, we see a lot of new products coming. The patient, which has to be delivered and demonstrated here is a little bit longer. We see here products only coming by '28, '29, 2030, but it's a huge also playground played by Novartis, Bayer and other big companies. They want to launch their product. And here, again, we see a market by the year 2034 of close to EUR 200 million in the prostate cancer area. So big momentum these days, and that's the reason why a lot of clinical studies are performed in the area of Lutetium , 200 studies for lutetium, 30 studies for Actinium and you see other potential isotopes being launched or further developed for the treatment or imaging of different cancer areas. Let's also talk about isotope products. I mentioned already that here, we are, for the first quarter, not happy with the results, revenue lower by 7% compared to last year. Here, strong impact of the currency FX adjusted, the sales would have been flat, but it is as it is. And in last year, we had, at the same time, also those products who were heavily contributing to a strong EBIT adjusted in the first half year that was lower. You see over logging one of the pillars within the IP segment is minus 1/3, isotrak, minus 1/3 isotope sales. So overall, we are not really happy with the results of isotope product. But the message is clear that from March onwards, we see a positive momentum and the outlook for the entire year is that we will achieve the budget for the IP segment in spite of the slow start-up here in the beginning of this year. The overall adjustments, that is something Julian and his team is always very keen on, but from the EBIT reported in this year, 14.1% to 14.0%, you don't see a big momentum both in isotope as well as medical. So the adjustments being made in this quarter are extremely minor. We don't need to talk about this. How is are the revenues divided in the different regions. We see here 40% in Europe, 40% in America and 12% in Asia. Now the reason why this is lower than last year is exactly the license deal, which happened last year at the same time, and that is not the case of 2026, first 3 months of this year. That's why we see a shortfall, but that is very easily explainable due to the vaccine license deal, which we don't see here in this year, at least not for the first quarter. The rest remains relatively stable. Strong growth momentum here in Germany, where also the generator business continues to grow in addition to the isotopes Lutetium. Now overall, the radiopharmaceutical business, that is what is the umbrella for that core business, our isotopes, the hot cell business, both from IP segment as well as the Technetium generator are produced in South America. We see a growth from Q1 last year to Q1 this year increased by 23%, and that is a strong growth by EUR 7 million approximately. And that is why we remain confident that if we look to the guidance of the radiopharmaceutical for this year to achieve EUR 160 million, which is part of the overall guidance. If you just do a simply controlling extrapolation, you would be flat compared to last year, but the reason is what I already mentioned that the starting of this year was not really mirroring and matching with our overall expectation. That's why we see here a stronger growth, both for the outcoming -- still pending license business still to come this year for the remaining [indiscernible] As well as for other isotopes, which just have been started Lutetium , Actinium is just on the ramp-up scenario, and there will be more sales during the course of the year. Looking to the balance sheet, we have here cash EUR 120 million, quite a lot of money. I'm pretty sure we might talk about our cash situation later on. The rest remains stable loan has been repaid. So it's only EUR 12 million less. left, sorry. And we are also, if necessary, able to change that number upwards or downwards. The key figures, which you see here, normally, there is not much to sell about here. Once again, the cash position increased from EUR 180 million to EUR 112 million loans from EUR 18 million down to EUR 12 million cash flow activities due to the license issues I mentioned, slightly lower than last year. The rest is stable, also our CapEx, our investments, EUR 5 million last year, EUR 5 million this year. Outlook. And that brings me already to my second last page here. The outlook remains unchanged, remains as we published earlier this year in March, EUR 320 million in terms of sales and revenue, whereas EUR 80 million EBIT adjusted. And that is on the basis that we have here not major deviations out of the currency, which might then change the revenue slightly, but we are confident that we are in a good deal here and also the license is still to come. Here are some dates for upcoming conferences. There's one conference in New York pretty soon next week. There's another one from Cantor in Hamburg. And then we do here our roadshow conference in New York. We have then our Boss meeting. Some of you are participating in the annual meeting later on in Berlin here, June 25. And then next time we are reporting numbers is August 13 with the full half year report. Happy to see all of you then at the latest again. Thanks for that. I stop sharing the slides for a moment, switch on my camera. And as the first 15 minutes are over. And I'm now together with my colleagues, more than happy to take all your questions and comments.Please use your electronic hand because that makes it easier for us to see who has a question. I see the first question from. Here you are. The microphone is yours.

On the IP segment, starting off with this one, what explains the sales lumpiness that you've seen in Q1? Just fundamentally, what's the core project type nature that basically explains it? And what gives you confidence that it will grow in the last remaining 3 quarters? And also maybe do you have some orders already that indicate the pickup, for example? And then also similarly, on the Medical segment, you've performed particularly strongly. Do you see any reason that momentum comes down a bit and basically, your segment guidance is a bit out of order basically, that IP is growing slightly less and medical is doing better? And then a last question also on the cash position that you just highlighted, are you currently considering acquisitions or share buybacks? That would be helpful to know.

Perfect. Perfect. So the easiest answer would be sometimes you lose, sometimes you win. At the end, it's plus/minus 0, and that confirms the guidance. That would be the easy answer to your 2 segments related questions. And coincidentally, it might work out, but that is not the case. The situation is a different one. And if I look to the isotope, the industry area, I like to explain a little bit more in detail. We have had comparable strong Q4 of last year, lots of orders were coming in, and that's the reason why then if you have a strong November and December, which we reported last year, then it's quite natural that in January, February, you have a slower momentum at this stage. And that is exactly the case that January and February was, in general, in the IP segment lower than last year due to the effect I mentioned of the strong Q4. In March, we already saw regaining business in all areas in the [ isotrack ] business, but also in those areas where you are most interested in, and that is the oil logging business. Oil logging is that business, which always goes up once more companies are looking for new oil sources, try to. Now due to the Iran situation, it might look obvious that there is a higher demand in oil sources. which in theory is right. And we see also a slight increase in the demand. However, I ask you not to exaggerate that assumption because they are still all on sales. So we cannot really see for the time being whether once the inventory, the stock, which is still available has been consumed, whether then this boosting effect will continue or not. So it's a little bit too early here to celebrate apart from the overall political situation, of course. But we are by that, quite confident that the growth momentum, which we have seen in March will continue also in the remaining part of the year, and that's why we are confident that IP remains at the budget level. Now in terms of the medical, yes, right you are, we have seen good momentum. And if I look to the GalliaPharm order book, which gives us a lead time of approximately 3 to 4 months. So I know pretty well what is happening in the next months to come and weeks to come so that Q1 and also Q2 are basically safe. Now what is happening in Q3, you never know exactly. And if I speak to people, they are saying, yes, but it might be that there is more F-18 coming up or whatever and that a product launch from a different country or it will be delayed. So that's why I remain a little bit cautious what's happening here, and I don't want to change here the numbers which we have published beforehand. But right, GalliaPharm is the driving engine of the overall medical success here. But all in all, we are not changing the numbers here upwards or downwards. In terms of the cash position, yes, it's obvious now [ Olivier ], our Chief Accountant, is here participating in this call, and he always reminds me that some funds which we have assumed under cash are reserved for certain positions where we cannot just spend the money or throw the money out of the window. Still, it's a lot of money which we have and also the potential debt we could raise gives us some flexibility in case we need the money. When would we need the money if a super target flows by and if we then say, okay, that fits ideally to our company's strategy. That can happen, but -- and we are very carefully looking to the market, but there is nothing to be announced as of today, but I can promise you that we will take each and every possibility to enhance or enlarge our business in addition to the organic growth once it fits and once it is affordable. We will not pay money which is out of our scope of possibilities or where we don't see a fair value for a target. So it's not the case that Eckert & Ziegler desperately needs to buy something. Our organic growth remains very stable. And that's why if it pops up, it's okay. If not, then the organic growth is more than confirming our strategy.

May I have one short follow-up question. And that is share buyback. Is that something you take into consideration? Maybe on the M&A side, what would be the ideal bolt-on acquisition for you?

Yes. Yes. So I can be -- to the first question, share buyback is always attractive once you don't have any other option to maximize shareholder value. And our strategy is to maximize share to the benefit of the shareholders, and that's why better to invest the money for CapEx or for M&A activities than to give it back to our investors. And that's why for the time being, we are not taking this as an alternative. And regarding M&A targets, I can be very precisely answering you that we are only looking to those companies who are within our scope of activity and that is isotopes, isotope, isotopes. And that's why we are not deviating from our strategy. And there are lots of conferences. The next one is in Los Angeles. There are a lot of start-up companies are floating around. And if they are knocking at our door and it fits that's it. Good. Ladies and gentlemen, who is next?

So just a very quick one on the competitive environment. So you just sort of following up from Simon's question. Did you -- have you seen any change in the competitive environment generally, particularly on the A segment? Is there any sort of lower conversion rate or anything additional you can tell us about that?

Yes. So we see in -- if I look to the Lutetium business, for instance, we know the competitors pretty well, and there is no new player coming into the market. Same applies to Actinium . Also, the existing competitors are well known to us. And don't see any change in the competitive landscape there neither. So if I look beyond isotpoes in the CMO business, that is a broader field because sometimes companies are entering into that field, they stay there for some time and then they disappear. So there, the overall market remains more flexible. And also for Eckert & Ziegler , the CMO market and business is an important one because it enables us to participate in the growth momentum and to foster the relationship, but we take always the CMO business as an enabler. So we look what the others are doing and whether we remain competitive towards the others, but it's not so much in our day-to-day focus whether a new company pops up and disappears at the same time. Overall, the landscape remains unchanged, I would say.

I ask a question, on competitive. Do you see more competition coming from China first question? And second? The other questions are related to the road map of product 2027. What for you are the most credible products that we will see in 2027? It seems that there is a big road map coming. It should be interesting. And third question will be on the capacity availability. Where are there, which is the most ready to answer this -- you will answer, I would say, to this road map of product in terms of capacities?

Okay. So China, we have 3 cooperations with Chinese, so to speak. We have had cooperation for our [indiscernible] Business. Then we have a tech transfer with the Chinese company in Chengdu, and then we have our joint venture close to Shanghai. And that is as of today, the most important one, there will be the big inauguration event in beginning of June with the facility, which is now ready to -- for the last mile. And for us, it remains of utmost important to stay in China to produce that because the mandate for China is really China first produced -- product being produced in China and likely will have a strong advantage for -- against products coming from external or from outside. Now the companies which we are talking are either state-owned companies or private companies. And the mandate is pretty clear. They do not want to lose the track momentum comparing to Western countries, European or North American countries. The competitive landscape here also remains stable with the remark that these companies are really pushing their pipeline. So they also do want to play a role in Actinium in the years to come, in Lutetium in the years to come or in CMO business and things like that. And that's why it is good that we are already with a presence in China, so they can also approach us for potential cooperations. And that's why colleagues of mine have been in China earlier this month coming back with a lot of potential activities. Now we know that out of 10 activities, only one will survive. -- but I'm pretty sure that, that will be to the benefit of Eckert & Ziegler. Competition will be not more challenging than in other countries.

You the market share, the market shares that you have in the different isotope today?

Good question, but I think that's ambitious and difficult to answer because there's only the GalliaPharm , which is a GMP produced generator, but there are also localized produced ones. So 2027 for the most important product is the Lutetium -based product from Eli Lilly because we are setting up the production facility in North America for the production of Lutetium. That's why we are very closely what Eli Lilly is doing together with Lutetium and the combined relationships there, and that will be of utmost important that this product portfolio of Eli Lilly will perform as planned. And that is also relating to...

What is the risk attached to the ED? What happens if ED doesn't succeed in the approval?

Yes. I think they have 3, 4 compounds, which they are currently testing. And if one is delayed, then the others go faster. If 2 are delays, then one will still survive. So it's good to have a portfolio and Eli Lilly has a strong -- as far as we know, a strong commitment towards radiopharmaceuticals, and we are demonstrating our capacity and capability. So there will be a constant product flow coming out of that value chain. And that brings me also to the capacity topic you were mentioning. I think everybody was looking for Actinium and Actinium Actinium Actinium . Now we have 3, whatever companies producing Actinium. Eckert & Ziegler is one of those. And that is still in low numbers because the product launch will be later this decade, only by the end of this decade. So I think it pays off that we did not invest EUR 100 million or EUR 200 million or EUR 300 million like others did in a single isotope, but that we rather remain open. We spend a double-digit amount in the development and production of Actinium. We are doing the same for Lutetium, and we will do the same also for other isotopes rather than to put all the bet on one single isotope. And that's why I'm happy that we are participating in the Actinium play, but I'm also extremely relaxed if there is a delay because then we have other isotopes who are refilling that revenue stream.

And then I see here from MR. sorry for not knowing who is behind MR.

The floor is yours.

Sorry, I can't see the name.

Sorry, in English.

Maybe you can remind me of the license deal which are coming. You mentioned that one is in your guidance, it's from Telix and maybe Julian can remind me how big that is. And I think I heard in one sentence in your presentation that there are some others, for other isotopes, which could be close. Did I get that right?

Super. And as I don't want to talk all the time by my own, I know that Julian is such a fan of the license deal. Julian, you get the chance now for your 30 seconds pitch here.

Actually quite easy to answer. So if you look for the numbers, see the presentation and the outlook guidance slide. But it is planned for this year that is EUR 5.6 million. That's the remainder of the Telix deal, compared to last year, where altogether, Telix as well as a joint venture license was EUR 14.4 million. Going forward, I missed the point where Harald mentioned something, what you heard, but I don't know anything about other licenses that are planned for this year. So I'm pretty sure that there is nothing in the pipeline.

Maybe Hard...

Some secrets. looking around.

I don't see any more questions for the time being. So 45 minutes is here. Once again...

Just a quick one in terms of the revenue split in the report, you've got -- you break down the revenue also by sale of goods and sale of services. And the services revenue is down sort of what is it, 20%, 25% or so on last year. Is that associated with the Telix deal? Is that a kind of one-off...

So it's not just steel for sure, not because there was nothing happening either now or back last year, but related to the license with the joint venture as well as other service areas we are in. So not in the medical field, there are service product lines, mainly CDMO is developing quite good. But we have also some service parts in the IP segment, and they are also performing a little bit worse compared to last year. So...

Going forward as a proportion of revenues, we expect it to be about where it is here, whatever that is 12% or so? Or is that...

Honestly, this is something I have to look -- I haven't looked at the proportion between the different goods and services. I might look it up the next time we see an answer...

No, Carlin, do you see any other -- ladies and gentlemen, it has been a pleasure as always, and very much looking forward to seeing you soon again. Thanks very much, and have a........

Hello, and good afternoon. This is Harald Hasselmann calling, CEO of Eckert & Ziegler. Together with my colleagues, I welcome you to the annual statement conference. I ask everybody to put his or her microphone for the time being on mute so that nobody is disturbed. There are still some microphones which are not on mute. So please be so kind and assure that you put your microphone on silent note.

Very much welcome to the year 2025 as well as the outlook statement for the year 2026. For those who are participating in these calls for a longer period already, you are aware that I will give you an overview about the market about the financial numbers of the last year and then looking into the future.

Overall, we are happy and we are confident that the story of Eckert & Ziegler for those who are following us for a longer time, a success story, will also deliver in the future good and promising results.

Now let me start with the usual disclaimer that here we take all the liabilities of. This is our current Board of Manager. You know Gunnar Mann, responsible for operative issues, myself and then the entire team, which has been enlarged to assure that those all product-related topics as well as all regional issues are well covered by our group executive team here in Europe as well as in North and South America as well as in China.

The market continues to grow. It continues both in terms of modalities, but also in terms of numbers who participate in the market. And all the big and midsized pharma companies are continuing acquiring smaller companies in order to assure that in addition to the current portfolio, they also do have the radioligand therapy within their basket. And this chart is used already for some time, but it stays busier and busier because more companies are added. And Eckert & Ziegler as the radioisotope producing company is looking forward to supply those companies, which you see here.

The year 2025, but then also the outer years are promising, a constant growth on average, 15 years 15% per year up to the year 2030. You see here what is predicted as the midterm development for the next 5 years, reaching $26 million. If we look at least to those analysts' reports, which are available, we have picked on this one here, the biggest success, of course, is coming from the ones starting with Bayer in the 2013s, but then later on followed also by other products and more to come.

Eckert & Ziegler is delivering radioisotopes in the medical area for both imaging and therapy. That's why we call it theranostics. And you see here our most important products, Y-90, actinium, lutetium for treatment and gallium for imaging as well as our equipment and service businesses with some companies where we have published the cooperation agreements. There are more which are not published or not published yet. But here again, also this slide is busy.

Here again, the split of those partners with whom we officially or published-wise working together in the most dominant fields, which is lutetium and actinium, but also the contract manufacturing, the CMO and CDMO business. Eckert & Ziegler is not only active in the medical field, which is the upper part here, where we produce radioisotope, where we deliver service, where we produce on behalf of pharma companies, but of course, also in the industry area and the pure isotope business where we deliver radioisotopes for imaging, for industrial, for calibration and validation services for all kinds of quality assurance. And you know that this is a wide portfolio.

Looking to the year 2025, I have picked here 4 examples in which areas we have constantly broadening our business. Our most important product, which is the gallium generator called GalliaPharm has been approved in Japan and important milestones for our product. In our CMO activities, we are working together both in Europe as well as in our Boston site. And here are some examples where we have been chosen as the manufacturer or as a partnership for instance, Archeus or Bicycle Therapeutics in last year. And finally, we continue to deliver actinium still on very small amounts, but as our production now moves into regular production, that is an extremely important cornerstone for Eckert & Ziegler to be established and recognized as the isotope producing company.

Some illustration what we are doing. We are not only producing, but we are also investing here. I invite everybody to come to Berlin if you have time. We are setting -- erecting a new building close to our headquarter here in north of Berlin in order to be able to enlarge and to have a broader production facility for our gallium generator business, but also for other products. And that's why we are erecting a building here.

And here another picture, 10,000 kilometers away from here, that is China, Jintan. In June, we were opening our production facility. On the left side, you see the cyclotron which has been inserted. On the right side, you see a picture how our building look like for the production of radioisotopes and more services, which will be offered there from the moment when it's opened.

For those who are following also the latest development that is in publication of February '26, where Eckert & Ziegler is also going into closer collaboration with companies for them to develop new potential platforms for treatment of patients. And that goes beyond the pure delivery of radioisotopes. It is both. It is the value chain, which is enlarged and broadening by delivering the isotopes, but also be a partner for new development possibilities in therapeutics. And that's why we are extremely proud that Molecular Partners has chosen us here as a partner. This is already something which happened this year.

Now let me go back for a second and let's talk about the year 2025. This is a picture which I used to present in each of my presentations. But now you see for the first time, the 2025 numbers where both revenue, in particular, also EBIT adjusted is by the majority contributed by the medical part. You see here, 55% has been generated in terms of revenue by Medical and in terms of income of EBIT adjusted, it's 64%. So there's a heavier weight coming out of Medical. And that is also shown in the benchmarks and the KPIs.

If you see what the revenue per employee, that is EUR 230,000 that is industry standard in the Isotope business, but it is EUR 400,000 strong increase in the Medical business, and that's why also here more than EUR 50 million have been generated from the overall adjusted EBIT out of Medical. So that is a driving engine. But it's good to have both segments under one roof because Medical is moving forward, needs a lot of money for CapEx, whereas industry remains our cash-generating engine.

Overall, Eckert & Ziegler strategy pays off. What does it mean? We are concentrating on the production of radioisotopes and its surrounding activities. And that's why by last year, our sales were increasing north of EUR 300 million with a strong EBIT increase, as you can see here in the free cash flow margin of 10%, strong contribution by Medical, 15% net sales growth, almost 30% in EBIT adjusted and also a strong increase in the EBIT margin.

Overall, the company's, the group EBIT margin reaches 25%. I'm always saying everything more than 22% or 23% is the air gets thinner. Now last year was extraordinarily high, which is a good result for all our shareholders.

Let's go to the real numbers from 2024, below EUR 300 million, 2025 increased by 5% in top line. EBIT adjusted increased by 80%. And if you look for those who are still interested in net income numbers, it's even a stronger increase because there is a strong contribution in this year that we don't have the exclusion of the IFRS 5, that is a former Pentixa business that is not here playing any role and influence in the year 2025 anymore. That's why it fully -- the overall profits fall through, and that's why we have such strong increase compared to the previous year.

Still, let's not forget that at the beginning of the year 2025, we were heavily impacted by the cyberattack. And that's why if later on, we will compare Q1 of last year with Q1 of this year, that might be challenging to compare numbers to numbers because in the last -- in the first quarter of last year, sales were low due to the cyberattack, which has been fully recovered by now, but that is -- will then make the comparison a bit more difficult. That was one issue.

And then in 2025, for the first time, also a weak U.S. dollar since many years contributed to -- impacted us negatively. If we look to FX adjusted numbers, the sales increase would have been higher by 7%. If you want to go into more depth, Julian, who is also online here, can give you more explanation on the FX effect.

As I mentioned, the biggest growth momentum is our gallium -- GalliaPharm business, our CMO business and our licensing deals, which we have done. We will also come to the licenses adjustments in '24 and '25 and '26 later on so that we better understand what impacted the licenses which we generated, what inference they took in the year.

Financial performance, Medical, I mentioned that already. FX adjusted here again, the weak dollar harmed us slightly by 2 percentage points. Otherwise, generators increased, actinium license deal and already some smaller sales last year and more this year. You see here EUR 8 million compared to last year. And our CDMO, CMO business continues to grow, and that is important because you remember that in the beginning, we wanted to use CDMO business as a facilitator for more radioisotopes to be sold, but now it becomes really something on a stand-alone business that is a positive income contributor.

Radioisotopes, good, but also the other business, Engineering, Radiation Therapy, big business for those who know that business increased compared to last year. So we are extremely happy with an EBIT adjusted increase from EUR 39 million to EUR 51 million, almost 30% increase compared to last year, really a super result if you see here these numbers and net income also fine.

Our gallium generator business is accepted in more and more countries. So all the dark blue dots here, what you see countries are those countries where we are selling GalliaPharm. Of course, there is still a lot of gray area in there, the African continent, Russia and -- Russia or Soviet countries are also still in gray, but the biggest countries, the most important countries are really all now served. You see China, you see Japan, you see Australia and you see Brazil. So that is more and more really getting close to what we wanted to achieve. There will be more to come, but that is a development step by step. Next time we present that chart, there should be more blue colors here to be presented.

Isotope products, we talked about that also in the previous quarterly conferences was weak in last year. We lost 4% on top line and EBIT adjusted 9%. The biggest reason for that was that our most profitable business in that area, the oil well logging, OWL, as mentioned here, was way below previous years, and that is from a sales perspective, but even more on the contribution side on the EBIT adjusted perspective, it is something where we miss than income, and that's why the overall result was not as good as we had hoped.

Now we come to the explanation. The year 2024 was extraordinary high. And in '25, we almost went back to the normal level. And that's why you see here also the EBIT adjusted margin of 90% is still higher than in the years before. So it's still an increase compared to previous years, but the year 2024 was extraordinarily high, and now we went back to normal.

Julian and his team is always making some adjustments in order to arrive at the EBIT adjusted numbers. And you see here what has happened that is hyperinflation, that is currency effects, what you see here. Overall, if you go to the very right number here, the EBIT reported was EUR 74 million. EBIT adjusted EUR 77 million. So it's not a big difference. There are some restructuring, and you see here the effects, currency and hyperinflation are the biggest influencing components to arrive at the result as just presented.

The regional split is also which is important because we do focus on Europe, North and South America and Asia. And if you look to here, the European numbers, 40% in Europe, 40% in America and almost 20% in Asia and rest of the world. So that is a good split. And our strategy remains unchanged that we also want to participate in the growth of China. If China grows faster, then it's also good for us. If they have an economical flattening period, that might have also an influence on the Chinese development. But overall, we see here a strong increase not only but also due to the license effect, which we have had last year. But it's a good split overall here, all these regions.

Radiopharmaceuticals, that is where most of you are keen on having a closer look to the numbers, almost EUR 150 million we sold in the broader field of radiopharmaceuticals, 16% more than last year. Last year means 2024. And radiopharmaceuticals is Y-90, lutetium, actinium, so the therapeutic components as well as our generator business. This is technetium produced in South America and our gallium generators plus cold kits and services, which we are producing worldwide to the benefit of our customers.

Now let's have a look to the balance sheet. Equity strong, cash strong. I come to the benchmarks and KPIs in a minute. You also see that our loan has been reduced that is mentioned here, it's EUR 30 million for the time being. All the rest remains relatively unchanged as we are investing money also in our facilities, the balance -- some increases on a yearly basis.

So let's have a look to the KPIs and key figures. EBIT adjusted growth by 18%. And then we see here what else is important. Cash, still strong; equity ratio, 55%; head count, slight increase up to 1,100 FTEs around the world; and ROCE is also something people are keen on having a look is here 20% compared to 13% in the year before. So overall, a good perspective.

Let me then summarize here the key numbers for the year 2025. Cash flow, EBIT adjusted, cash balance and equity ratios, these are the numbers where we have a strong look to and watching that very carefully.

How does the outlook look like? And here, it looks perhaps more complicated as at the end of the day it is. We are here giving you a corridor of EUR 320 million in terms of sales and EUR 80 million EBIT adjusted. Now the question is, and we might discuss this in a second, what is this comparing to the previous years? If we just look to the nominal comparison between '26 and '25, it's an increase of 3% top and 3% bottom line.

Now what we also want to make sure is that we have an adjustment because of the extraordinary license deals, which you see here. Last year, in 2025, we had a license income of almost EUR 15 million, which in our guidance is reducing down to EUR 5 million. So that is going down by 30%. Still we are growing. So if the license deal and the FX effect, where I'm coming to in a minute, if you exclude these 2 effects, then top line is growing by 9% and EBIT adjusted by 21%. The last year's average was 1.13 for the exchange rate. Currently, we have given a guidance on an exchange rate of 1.20 to the euro.

So here is the financial calendar. For those who are around in Paris on next Monday, they will see me there with the Kepler Cheuvreux Roadshow. Later on, we have at Frankfurt and other events upcoming and happy to see you on some of those events. General Meeting in Berlin here, June 24. And Q1 report that is also reported is on May 12. So I welcome everybody to listen to this event.

And with this one, I stop here my presentation for the time being and close sharing the screen and open here the discussion. And I ask my colleague, Karolin Riehle, who is participating, Olivier from finance is participating from finance and accounting as well as Julian, who most of you know already.

So I ask you to raise your electronic hand so that I can take your notes. And already, I'm seeing here the first question from, I think that's Nicolas.

Maybe just a few quick ones for me. The first one is on your guidance for '26 and mostly looking at the EBITDA adjusted line. So you had, let's say, EUR 14 million of one-offs in '26. And so you guided for EUR 5 million next year. And yet you expect to have growth on the EBIT level despite, let's say, the gap. What is the driver that will allow you to get that? Is it that you have -- you still expect very strong momentum on the Medical segment or it's a normalization in the IP, a bit of both? So that will be my first question.

Then also a very quick one, but on the slide on the Medical revenue, you have something like EUR 8 million that is tied to Actinium-225 technology. Could you just expand on that? And then just a broader question. What is the next big milestone that we should expect when it comes to the development of lutetium, actinium or maybe new isotope? Do you have any new things that we can expect over the next year? And a very small one to finish. Just on this Molecular Partners collaboration, could you also just come back on that and kind of give us a bit more of an explanation on what this collaboration is going to look like and what -- how should we think about the financials into this one? And I think I will stop there. That's already a lot.

Now let me combine the answer to your questions. And if that is satisfying, then it's okay. Otherwise, please ask for this sometime. Now looking out of the license deals, so where is the growth coming from? Here, it's split between the 2 segments. Medical will grow and IP will grow. Now Medical, we will continue with our generator business. That is -- if you were going more into the details, you would not only see that more countries are covered by the GalliaPharm and more centers, but also that the acceptance of the GalliaPharm 100 is increasing. So it's not only a pure increase in quantities, it's also if you take the potential illusions, if you divide a generator by the potential illusions which are possible, we will see a strong increase why the demand is so strong.

Why is the demand so strong? Because more customers need a generator. It's Helix, it's Novartis, it's more studies. In particular, for instance, in Japan, we are selling more generators for study purposes. In China, studies are ongoing. So it remains a combination of study generators as well as for normal business. In the other areas like CMO, contract manufacturing, more companies are knocking on our doors and saying small numbers, but can we make use of your service in Berlin, in Braunschweig, in Boston because as long as they are only moving into the clinical areas, clinical studies, they are not investing in huge capacity by themselves, and that's why they need us. So here, again, we are happy to see a growth momentum.

In IP, I expect that the oil well logging will go to normal business again, and that's good because I mentioned earlier that this is also profitable. The EUR 8 million for actinium is mainly driven by the license business, and that's also why last year, the pure actinium sales were relatively low but from this year, we are really selling actinium to customers for their studies. small amounts, but that is so important for Eckert & Ziegler because if we are selling from the very beginning, then that gives us the possibility to be included in their study protocols in their SmPCs, in all their documents they needed for later on for commercial treatment. It remains unchanged that the big commercial sales will not start before 2028 for actinium. There is no change. But still for us as a partner of big pharma, it is important to be there from the very early beginning onwards.

New isotopes and also partners, we are taking everything what we get. If a partner like Molecular Partners comes and we need your radioisotopes, we want to make sure of your development facilities where we want to see whether that molecule is more specifically can be targeted to cancer therapy, then our research team is cooperating very closely together with companies like Molecular. And they might use with established isotopes as well as with newer ones. If you ask me what are those which are most interested one, then probably it's lead. And I'm spending a lot of time these days to see to what extent we will look closer to exploring business opportunities. Others like copper is also interesting, but that is not something where I'm now investing a lot of my time, at least colleagues are doing it, but lead is the one which is of most interest for the time being.

Super. Then I take the next question, and that is [ S Ker ].

Simon Keller.

Looking at the growth in Medical, I think it's 2% year-over-year guided for '26 when adjusting for the license deals. And that is despite gallium, CDMO, et cetera, all seemingly doing well. So the question is what explains this cautious sales growth outlook in Medical? And maybe there's something or is there something that we should know about that hinders the growth in gallium, et cetera, to shine through more visibly? And also on Medical, can we expect you to share some larger announcements for supply agreements for actinium and lutetium in '26? Is there anything in the pipeline that you can already provide any hints at?

Yes. Julian will give you probably a better explanation as I try to do it regarding the top line license adjusted and non-license adjusted for Medical, as I did before, but Julian will do that in a second. The overall perspective is whenever we can publish a supply agreement, we will do so. But sometimes pharma companies are a little bit cautious because they don't want to demonstrate or show their dependencies on supplying companies. That's why it is not so much on Eckert & Ziegler side that we are not publishing. It's rather on the customer side. But the big companies like Bayer and Novartis and Eli Lilly and RayzeBio and Amgen, they all need or will need Actinium and they all will look to 2 or 3 suppliers. So it's unlikely that only one company will be chosen to be the supplier. It is 2 or 3 companies who will be nominated. Our market assumption is that if we are beyond and coming to one of these 3 suppliers, we are more than happy that would then derive in an average market share of 1/3 or 30%, and that's why that covers it.

Julian, can you give some insight once again about the Simon's numbers he mentioned?

Sure. Well, you summarized quite well. Actually, we are expecting the growth in GalliaPharm and other fields, especially related to the radiopharmaceutical products. But this is something we haven't talked about yet for the lower-margin product lines as our engineering business, laboratory equipment therapy, we also see some downsides. We have some good projects going on, especially in the engineering field. So this is compensating the growth we're expecting from the higher-margin products. So it's mostly if you want to bring it down to one word, it's probably product mix.

I see here -- it is Simon Keller, again?

Yes, if there's no one else in the queue, I'm happy to ask another question that I have on my mind, and that's China. How relevant is the expansion there for you? I'm thinking of GalliaPharm, where there is an approval pending. How much of GalliaPharm revenues from China have you baked into your guidance for '26? And also beyond GalliaPharm, do you see lutetium and actinium to offer opportunities in China?

Good question. So for this year, generators in the lower to mid-double-digit numbers have been forecasted. And that is a mixture of generators for clinical studies on the one side and already commercialized generators for -- sometimes for clinical use and for nonclinical use. Basically, the aim is, and that is why we did it together with Novartis, that we are selling the generator in particular for the usage together with LOCAMETZ, which is the Novartis product. So -- and that's then only the GMP generator of Eckert & Ziegler who will be then sold.

But independent from that LOCAMETZ, once that this has been all stamps on the paper, we are already selling it now for nonclinical use or for nonhuman use as well as for studies. And that is in the number I mentioned. The midterm perspective for China is good, but the price level is much lower than, for instance, in Japan. That's why if I have to choose one generator in Japan or one in China, then the high-priced country gets a higher priority. But as we are investing into China, that's why that has a dominant role also.

In terms of other radioisotopes, lutetium and actinium, yes, we are and will supply also those isotopes to China. But here, again, for low numbers, same answer than before. It's important to be there from the very beginning onwards. That's why already by now, we are supplying lutetium into the Chinese market and later on also actinium to follow.

Then, I think from Hamburg, it is Tim, probably. No?

The next question is from Ben Thielmann from Berenberg.

I hope that you can hear me. My Internet is a bit unstable. So I keep the video off just to be on the safe side. First question would be on the oil well locking services, which is a higher-margin product in the IP division. It seems like higher oil prices is usually something that could lead to a faster normalization of that business. I was just wondering, do you have a normalization of the OWL business factored into your guidance? Or is that something that would positively come on top, maybe?

We have included the normal business. The latest political situation has not been mirrored because that would be -- I mean, we see if oil price -- the tendency on a midterm perspective goes up, then this will also have a consequence on oil well logging, but it would be probably not serious if we now due to a specific situation in Iran with high oil prices, but nobody knows how long they will last. And then that is not a trend, that is an ad hoc situation, which has been not reflected in the guidance because that would be probably not really serious. But overall, we see a normalization of oil well logging in this year happening.

Okay. Perfect. And then maybe a follow-up on that or on a different topic, maybe, first of all, is the licenses. I mean, there is a EUR 9 million delta between '25 and '26, an example, EUR 14.5 million and then EUR 5.5 million in 2026. What is the chance that the EUR 5.5 million in '26 turns into an EUR 8 million or EUR 9 million? What visibility do you have that your licenses could actually be higher in 2026? And then the question would be if we spin the wheel 1 year further and we say 2027, what would you say is an average run rate that we could see in the years beyond 2026 to get a little bit of the feeling how is the comp changing basically next year?

Yes. So Julian, please jump in if you want to add. But basically, the -- if you look to the generator business, up to 80% or so, we can plan the business because we know the existing database. We know where our customers are, we can predict how many new customers most likely will be added. And then we have an order book of 6 months in advance. So it's pretty clear to know what will happen during this year with some 10% to 20% deviation.

In terms of license, it depends on new customers to be identified who are then saying, okay, I want to make use of that production license or that technique and so on and so forth, very hard to predict. That's why in our guidance, we stick to these numbers. If something else pops up, that could come in. But as of today, in terms of the guidance, I would not be a fan on favoring in putting that into the numbers because it is too unlikely to predict with the probability north of 50%.

Julian?

Yes, actually, nothing to add. But in very easy words, this is a remainder of the Telix license deal and nothing new that we do not know anything about yet.

Makes sense. Maybe one follow-up, if I may, would be on CapEx. If you could guide us a little bit what we could expect in 2026 because there is a certain element of expansionary CapEx going on. So anything 2026 guidance would be fantastic.

Julian?

Well, I mean, over the last 2, 3 years, we really increased the overall level of our CapEx. We have initiated a couple of CapEx initiatives. Well, you're aware of this is lutetium in Boston, for example, the pictures that Harald just showed, especially the GalliaPharm farm expansion there, the Wäscherei project. So this will remain on a higher level. I'm not 100% sure about the exact level because we are still juggling around with some bigger topics in terms of actinium when to invest and where to invest and how. So it will remain on a higher level and can maybe even be higher.

And probably, if you want to follow up, I have given you 2 examples. One is China, where we are putting money in with our joint venture partner. It's here at the Berlin site, where we are erecting a new building. It's South America for the production of cold kits where we're investing money. It's Boston for the expansion of our lutetium line. These are the biggest points where we put money in order to have a broader and double line capacity production hubs on both sides of the Atlantic.

Talking about the Atlantic, I go to the small town in Hamburg with the river Elbe, where Tim Wunderlich is sitting.

Good afternoon. I have a follow-up question to the oil well logging. First of all, I want to make sure that it's not only oil, but it's also being used when it comes to natural gas. Is that correct, which is a big topic now with the Strait of Hormuz?

Yes.

It's also natural gas. And what can we take as a leading indicator to get an idea of whether the oil well logging business may perform ahead of your expectations? Should we look at the international rig count?

Exactly. And these are publicly available web pages where you can see how the right delivers and there you see -- I mean, that is to be seen. But the question is that, for instance, North America will now invest more money into the oil well logging activities in order to be more independent. But that is speculation, that's up for others to decide on that, but that is the topic where everybody now very closely will have a look what happens in the midterm to whether countries want to become more independent.

Yes, certainly interesting. And then on actinium, which should become quite big, I guess, in 2028, 2029. I was wondering about your competitive position. There's a small Belgian company, which is called PanTera. They are owned by IBA and by EQT, I think, and they have very ambitious plans. I think they said they want to treat or they will have capacity to treat up to 100,000 patients once the facility is live in 2028. And they have a specific technology, I think it's called Rhodotron, and you guys are using cyclotron. So just whatever you can tell me about how this technology compares, how you think you are positioned in this emerging very large market. and whether you believe that the market size, the market growth for actinium is going to be big enough to accommodate several players such as yourself and PanTera?

It's a very good question, Tim. And on the one side, it's a good question. On the other, it's a useless question because it is predicting the future, which is cloud signs or whatever. So the truth will tell. But my view to the actinium case is the following. There is the existing established methodology of cyclotrons. We know how a cyclotron works. We know exactly how much energy cyclotron needs, but when the maintenance takes place, how to run cyclotron. It can be done and is used by a lot of people for many, many years.

Rhodotron is also very interesting and PanTera is following that new approach how to run Rhodotron. And they -- I wish and hope all the best for them for sure. The question is, do we have already enough visibility in terms of maintenance, energy consumption and things like that, that is to be seen and to be proven. I believe that out of the 6 or 7 potential suppliers of actinium, not all of them will be included in the list of big pharma supplier lists. Our approach is to participate in that selection process from the very beginning onwards. That is why we're putting so much speed on it that already in small numbers of clinical studies, they include Eckert & Ziegler as their suppliers. That's why it's important to start from the very beginning onwards.

In terms of market size, as a lot of companies are entering into the field, it is not completely unlikely that in the first years, there will be overcapacity. That can happen. And that's why Eckert & Ziegler's strategy is always not to focus on one radioisotope by its own, but have a broader portfolio of lutetium, of Y-90, perhaps of lead and others to be able to shift capacity also from one size to the other. So in our -- you produce a radioisotope, but then you have to clean it up. You have to prepare a radioisotope before it can be sold. In order to do that, we have our facilities where all these radioisotopes are polished, if you want to say so. And that's why, for instance, in Braunschweig, we do lutetium, we do Y-90.

So we have a lot of economy of sales, and that makes us more competitive in terms of speed, in terms of flexibility and hopefully, also in terms of price because if we have overcapacity, it's not unlikely that also some kind of price competition will take place. And there, I don't want to participate in that game only to sell my very last actinium. I want to be a supplier of choice in good quality and high flexibility.

Okay. Good. Karolin, here, there is again, who is this? Simon. Simon gets 1, 2, 3. He gets another question. Here you go.

Yes, one last one. I think also slightly tricky and it goes into the direction of what Tim just asked about actinium and the production method and maybe because you also mentioned that there might be 2 suppliers to one big pharma company. So I've looked at Niowave and their cooperation with Novartis on actinium. And I thought -- or I was wondering whether you could basically comment on this? Is it you win some, you lose some? Is there a technological meaning to it? Do you still have a chance to also cooperate with Novartis on actinium? Any comments would be interesting.

So as mentioned before, there will be 2 to 3 suppliers that is what I would recommend to big pharma, and that is what we also see in the market. So your assumption is completely right. Very positive --

Good. Then before the number of 42 participants declines, I look around, no more questions. Ladies and gentlemen, it has been a pleasure, as always. We close the recording, we close the meeting and the entire team of Eckert & Ziegler wishes you a nice day. Thanks very much for participating. All the best. Bye-bye.

Good afternoon, ladies and gentlemen. We hope you are enjoying JPMorgan Healthcare Conference. I'm Nikhil Gondalia, VP in the Healthcare Investment Banking team at JPMorgan. This afternoon, we have Dr. Harald Hasselmann, CEO of Eckert & Ziegler presenting. There will be time for Q&A at the end. For now, over to you, Dr. Hasselmann.

Good afternoon, everybody. Thanks for coming. Thanks for joining, and I can promise you there's a lot to learn about our company, which is at the market for more than 30 years. We are a listed company, Berlin-based and more to follow if I go through my presentation.

This is a usual disclaimer before I start with the overview of the company. So normally, we would say size matters. But here, the situation is a different one. It is not the size which is important. It is one of the key success criteria is the number of locations. As we are producing nothing else but radioactive material, which is used for medical purposes and for industry purposes, it is important that we have more than one site in order to be close to the customer. That's why we have increased the number of locations during the last years by close to 20 different sites around the globe, and I will illustrate that in more detail when we go further down the presentation.

We have EUR 300 million in revenues and approximately 1,000 employees working for Eckert & Ziegler since 35 years. The Management Board is composed out of North American people sitting here in Los Angeles, but also in Berlin, in South America.

Now if we talk about the size of Eckert & Ziegler, we are a midsized company, but we are offering all the service and the products of a multi- conglomerate company. And that's why we have presence and revenue in North and South America and equally sized in Europe. Because here, you see last year's number, EUR 140 million for North and South America, EUR 100 million in Europe and more and more importantly growing is the Chinese and Asian business where we are working together with the Chinese joint venture partner.

If you look to the numbers of 2024, so not last year's numbers, but those which were published on a full year perspective, then you see here a split between our 2 segments. One is the segment in green. We call that the Isotope Industry segment and the other one is the Medical segment. In '24, the revenue was split precisely 50-50%, whereas the profit is more heavier on the medical side. There, the gross margin is higher. The growth engine is stronger, and we expect that also in the years to come. So for '25, numbers will be published in March, but also in the outer years that the growth will be stronger in the medical part. Here, we are working with 300 people, whereas in the industry segment, it's around 600.

Now let's talk a little bit before I come to those, which is of highest interest for those who are listening here in the room, but also on screen for the medical part. Before I come to that, I want to spend some minutes on the industry, on the isotope part. Here, we have a product portfolio of properly 10 different profit centers, and they are producing all kinds of radioisotope material, which is used in the industry sector for validation, calibration and security technology.

Here, you see some pictures of those radioactive batteries or products which we are producing for different purposes. They are for oil well logging, that is one of the most important profit center in that segment because it is used to find new oil sources. It's used for exploration. It's highly profitable. But we also have density measurement tools or level measurement tools. And you see here the radioisotopes, which are used, and we are sourcing them in from different sources around the globe. But we are not only sourcing in, we are also sourcing out. That means we are taking care of all the waste management of decontamination topics with low radioactive waste. We collect them, we store it and then we take care of that.

We acquired a company in South America and Argentina some years ago, and they are producing a generator. A generator is a coffee box, a coffee machine, which lasts for a certain time of weeks or months or even a year depends on what kind of generator we are talking here. You see in the upper corner of that picture, you see a technetium generator. Technetium-99 is used for SPECT cameras. And we acquired that company in order to offer that service, that product for South American countries and later on also for other countries to follow, combined with cold kits with non-radioactive kits in order to detect to image noncancer-related diseases, which we are offering out of that company.

The other part is the medical part. And what you see here on the comic is basically the structure how radioligand therapy works. You see the orange, the purple part. That's you, that is the cancer cell. You see the blue part that is the pharma part, that is the kit, the molecule, the protein, the product which is produced, developed by the pharma companies. And then at the end, you see the radioactive material that is Eckert & Ziegler. The radioactive isotope is linked to the product, to the molecule, to the product of radiopharma. And then together, it finds its way to the cancer cell and there it destroys the cancer, purely the cancer. And that is the modus vivendi, how radioligand therapy works. And that is what the expertise of Eckert & Ziegler can be described of.

We are doing nothing else but producing these radioisotopes in different formats, in different molecules, in different structures, in different packaging forms. One possibility is a generator. I mentioned already the technetium generator. Here on this picture, you see another generator that is a gallium-68 generator, but we are also wrapping the radioisotope in patient individual vials for single usage, whereas the generator lasts for a year and can be used for multiple purposes.

We have other products also in the cancer area. These are implants, prostate implants, IsoSeeds, routine applicators and other kinds of technical devices.

Finally, we are also producing hot cells. These are lead-shielded working benches, work benches. For those customers who do want to produce their own material, they want to handle radioactive material in a secured environment, and that's why we are producing these hot cells out of Dresden in Germany for customers around the world.

Why is the field of radioligand therapy so interesting? Why is this growing so fast? The common and well-known reasons are listed here. It's increased number of patients. It's the elderly people, the aging society. And more and more patients cannot only be imaging diagnosed by radioligand therapy, but can also be cured or even healed with products coming out of pharma together with our radioisotopes. That's why if we have a look to the pharma companies who are more and more acquiring smaller companies in order to follow what has positively demonstrated by Novartis when they launched their first product for neuroendocrine tumors years ago and then followed by product against prostate cancer, also the other big pharma companies want to have a strong footprint in the radiotherapy area. And you see here companies like Bayer and Eli Lilly and Bristol-Myers, they are all acquiring and paying a lot of money to smaller companies in order also to participate on that journey.

And hopefully, and that is our target, all these companies or at least the majority of these companies will become our customers, either by supplying them with our radioisotopes or by offering other services to them.

If you look to the future development of radioisotopes or radioligand therapy, there's a common understanding that by 2030, the overall market with all products being available is north of USD 30 billion. And what we see here is the development in blue. There you see the strong uptake of radiotherapeutics of theranostics, the combination of imaging and therapy, and it's growing. And we see then if you look to the numbers of '24 and even '25, that what has been predicted comes to reality, and we are very optimistic that the trend will continue, that the growth will continue. And if you look and listen to the other companies who have been presenting their story here at the JP conference that also the other companies are following that direction.

Why is it so attractive for our company, Eckert & Ziegler? We are offering the most demanding radioisotopes. You see them here, it's gallium for imaging, it's lutetium for treatment, it's Y-90 for treatment, it's actinium for treatment. And I mentioned earlier, the equipment part, the lead-shielded, the working places. And we have linked these isotopes with those customers who were willing to publish and being announced by us as our customers.

Looking to the future, there are existing products available. But if you look, for instance, to lutetium, approximately 200 clinical studies are currently on its way. For actinium, it's less because it's not as far advanced as lutetium is, but I'm pretty confident that this is to follow in the size of numbers of studies. But here, for the time being, 200 studies are presently under investigation. And hopefully, most of them will come up also to be commercialized later on.

Here are those studies which are most advanced. And in addition to those which are known like the Novartis products, we do expect more products to come, and it's Eckert & Ziegler's clear commitment and objective to also become a supplier of all these newly launched products by the years, which I mentioned here in the right part of that slide.

If you look to the market potential, currently, about 10,000 to 20,000 patients are treated with commercialized and registered products. But if you look to 5 years ahead from us, then we do believe that the numbers being treated with lutetium-based products is multiplied with a factor of 5. So we are coming to 60,000, 70,000 patients, and that is also made in a much bigger pie in terms of revenue compared to today's situation.

The same applies to actinium. That is the next big thing. Here also, we do expect that by the end of this decade, there will be more products at the market and some of them are listed here from big companies like Novartis, Bayer, Bristol-Myers and EZ, but there is more to come. I just mentioned the number of studies which are available. I'm pretty confident that the majority will also have positive results here.

As of today, we expect that at the beginning by '29, when the first products are going to be commercialized, something around 5,000 patients will be treated. And then 10 years later, at least 12,000 to 20,000 patients should be treated, and that will be also seen then in the revenues, which we forecast. We might -- we probably are conservative, but Eckert & Ziegler has always been conservative and then overdelivered. But that is the market expectation, how we see it.

What is our current customer base look like? We have customers for lutetium. We have reservation of supply contracts for actinium. And for CMO and CDMO, I have also listed some of those companies with whom we are working together as of today. And you see smaller companies and you see also bigger companies. So the race is open for all these companies launching products and supplied with isotopes from Eckert & Ziegler, of course, others, the pandemic and also the wars around the globe have proven evidence that pharma companies will always have 2 or 3 suppliers. And our objective is to participate in that supply race and to be one of the preferred supplier.

If you look to the results of last year, the overall results will be only published by March of this year. But important for us is that our flagship that is the gallium-68 generator for the imaging procedure of neuroendocrine tumors, but also for prostate cancer has now approved not only in all European countries, but also in Japan. Japan is equally high price and North America, very important. We also will sell the GalliaPharm in China this year. We are doing CMO work for companies in Germany, in Europe, but also in Boston, in our Boston facility. One company, Archeus has been mentioned here. We have different supply agreements, and we are doing strategic partnerships with companies who are developing compounds for the treatment of cancer.

Here, you see some pictures where we are currently spending the money we earn. We are having an amount of approximately EUR 20 million on a yearly basis, which we invest into CapEx. And why are we doing that? We have a strong belief that our gallium business, our flagship, which represents approximately 50% of our medical business needs more capacity. That's why we are investing into an expansion of our existing production facility, and that is a picture which was taken a month ago, and that will go online by '27 in order to double the production capacity of our gallium business.

This is a picture of China, close to Shanghai. We invested into a facility together with a Chinese partner. We have the strong belief that it is important also to produce in China. And you can -- that is at least my understanding, you can only be successful if you produce in China for the Chinese market, and we are doing that together with a Chinese partner. And here, you see the building, the cyclotron for the production of isotope has been implanted just now by the end of last year. And that's why the building looks big. It is big. But in terms of protection, you need thick walls and you need place also for CDMO works for the production of radioisotopes, and that is close to Shanghai. So you're all welcome to visit us there in Jintan, where we will open the facility in summer this year.

Now this is the strategy and the numbers which are mirroring Eckert & Ziegler's strategy. And I can say this strategy pays off because we are concentrating on what we know and what we can and where our competencies are, and that is isotopes. And I mentioned earlier on that we are doing that with 2 arms. One is the industry part, one is the medical part. Overall, EUR 220 million for the first 9 months with an EBIT adjusted of EUR 50 million and a free cash flow rate of 10%. These are the key figures I would like you to take home.

And then if we go to the 2 segments, you see one segment in green, the other in orange, and I will come to these numbers in a second. Overall, we are growing in the first 9 months by 4% top line, 9% bottom line, and we have an EBIT adjusted margin of north of 23%. Here again, the numbers, 4% growth, 9% growth in EBIT adjusted. And let's have a look to the medical part here. The most -- the biggest part is coming from GalliaPharm, the gallium generator. We were growing FX adjusted by 16%. Now due to the weaker dollar, it is only 15% on a euro per euro level. Generators are strong. Actinium, we had a license deal with the Chinese company earlier this year, and we are developing our CDMO work quite successfully.

Profit-wise, it's even stronger. So our profitability grows, and you see that also in the absolute amounts from EUR 25 million up to EUR 30 million in the first 9 months, and an EBIT adjusted margin of 26% compared to 23% in the previous year. Isotope product had a weak start of the year. You remember for those who are more closer to our company that we had an awful cyber attack at the beginning of the year. That's why we couldn't produce and deliver in the beginning of the year, and it took a while until, in particular, that segment could catch up what they missed in the beginning of the year. That's why here, the numbers were weaker for the first months, but I'm pretty confident that by the year's end numbers, we will produce good results.

Now the regional split is mentioned here, 40% approximately is generated in Europe, 40% is generated in Americas. So that is equally splitted. And Asia, in particular, China is growing strongly by 30% compared to last year to the first 9 months, which I mentioned here with EUR 30 million compared to EUR 28 million last year.

The core of Eckert & Ziegler is the radiopharmaceutical business, and that's growing. That's growing over the years. And you see here from '27 onwards, a 10 years' perspective, including also the inorganic growth where we acquired the Argentina business in 2022, there was hyperinflation. That's why the sales revenues, which were generated in Argentina were contradicted by strong hyperinflation, but that has now come not to an end, but has strongly improved. Overall, we see a growth of the radiopharmaceutical business in the first 9 months by 7%.

Year-end guidance is EUR 150 million. I will confirm our guidance on my last slide. But here again, I can already say that the numbers are really looking confident compared to our guidance.

Key figures, some key figures. We have cash of EUR 120 million. We have only EUR 20 million in loan, which we have repaid. So currently, it's EUR 15 million. So we can finance both our dividends, our CapEx out of our cash flow, which we are generating. The balance sheet looks relatively boring. We have an equity ratio north of 50%. And here, you see the key figures. EBIT adjusted growing, cash flow is here, free cash flow is 10%, ROCE is 18%. For those who are interested in all these financial data, I'm happy to enter into discussion. But basically, the numbers are pretty confirming our strategy.

Last slide, and that is despite the challenges which we have had, we are confident that by the end of the year, we deliver what we promised at the beginning of the year, that is the guidance EUR 320 million is a corridor in terms of revenue and EUR 78 million EBIT adjusted. There's a corridor, of course, plus/minus. But overall, that is the number which we published and what we are confident to reconfirm March this year.

Now is what we are trying to deliver? Does this match with the reality? And if you compare here our own track record that was published by Berenberg, who is taking care of our coverage, they are saying the green ones is there where we published a guidance and where at least we beat it or were even better in terms of sales, EBIT and net income. And there are 2 incidents where we missed it, but in 90%, we fulfilled what we promised, and that is our mission to make our shareholders happy in terms of deliver what we promised.

For those who want to learn more or hear it again what Eckert & Ziegler is doing, there are more conferences coming up during this year. But for those who, in particular, want to see the first quarter that is in May 12, we will publish -- and this year's result will be published in March 26. Happy to see all of you again at one of these conferences, either in person or virtually. Thanks very much. That is my presentation, and I'm happy to take any questions from you or from the audience.

Thanks very much. Do we have any questions from the floor? Please don't be shy. I know it's late. Yes.

Zain Ebrahim, JPMorgan. Just a question on the isotopes business. You showed the 6% decline in the first half, and apologies if I missed it, but what's driving that? And how are you seeing the trajectory going forward and the moving parts to maybe drive a recovery there?

And then second question is on the radiopharmaceutical side in terms of the interest that you're seeing with customers because we're hearing a lot about radiopharmaceuticals here at the conference and developments there. So how you're thinking about the growth outlook for that business?

The growth -- what?

The growth outlook for radiopharmaceuticals going forward?

Okay. So the first question is you are always punished if you are delivering a super result. And the IP result in '24 was extraordinary high. Now if you compare the '25 result with an extraordinary high result in '24, it is basically no surprise if you then get a small dip. If you look to the longer trend of the IP, it's a constant growth of worldwide GDP of 5%. That's why I can reconfirm that also the outer years will continue to grow in that range. It is just the punishment of having a strong year, in particular, in oil well logging, which was very strong in '24. And then in '25, we were going back to normal business, and that's why we were lagging that extra plus result.

If I come to your second question, I share the optimism, and I share the bright outlook of the business in which we are in. And that's why I can confirm the slide which I presented here with coming to more than EUR 30 billion by the year 2030 of the overall area. Now to put some water in the wine is we always will have companies who will not manage what they promise. And that is -- we see that also a company in Germany is winding up a small company, but they want to develop a drug and now they have to confess that it is not working. They are lacking money. It's difficult to get. So not everything will materialize as planned or at all. And that's why it's good that Eckert & Ziegler has a broad range of customers and is not only focusing on one radioisotope, but is also offering a huge variety in that corridor of what we can, what we want and what we do, but has more radioisotopes to offer.

At the end of the day, if radioligand therapy delivers what it aims to do, namely deliver at the right time, at the right place at the right quality, then that therapy has a very, very high chance of being the game changer. Now if this was a conference of ADCs or cell and gene therapy, I would imagine that also there was a lot of optimism for cell and gene therapy potential. Here, we see more radioligand therapy companies showing up, and that is because prostate cancer of Novartis has been so effective that everybody wants to follow in that route. And that's why it's good. But we must pay attention that we also fulfill our promises in not order to give possibilities to other to bite into that optimism.

I've got a couple of questions. You've seen a lot of recent success in your CDMO business. What are your plans for that business going forward? And do you have plans to accelerate growth and expansion in that part of the business?

If you had asked me 5 years ago whether Eckert & Ziegler is a typical CMO or CDMO company, most likely, I would have said no. And then we said, let's find a way to enable our business to sell more radioisotopes. And then we say, if we can lock it to some kind of services, then it might be even better for pure selling the radioisotopes.

Now in last year, that business, that CMO and CDMO business for the first time has become profitable by its own because more and more customers are saying, okay, there's a good landscape of CDMO companies in North America, but there are not so many in Europe. And as Eckert & Ziegler is offering both North America and Europe and in future also for China, this is some attractiveness for companies approaching us and saying, can we make sure that you can also provide services to us. And that's why we will follow that possibility when we will offer these services on an individual basis, in an ideal scenario combined to our radioisotopes, but there are also good examples of pharma companies who are saying we bring our own radioisotope, and we lack on your -- we rely on your CMO facilities. So both is offered. And as long as the customer is happy and pays, we are also happy.

Just another question from me. We've seen a lot of issues with supply of actinium in the industry. And obviously, you mentioned that you're developing an actinium facility. Could you give us the latest on how that's progressing and your plans to supply actinium to the radiopharmaceutical industry?

Actinium is very promising, and that's why the pharma companies are following the route to develop compounds with an alpha emitter to really have precision oncology at its best. That's why it is a no-brainer that also Eckert & Ziegler has invested money into the development and also into the production together with our Czech partner for the production of actinium.

Our current production facility enables us for the production of 5,000 patient doses on a yearly basis. We are optimistic that by '28, '29, there will be a strong demand of higher volume. And that's why we are able to scale our production by setting up an own cyclotone production fully owned by Eckert & Ziegler. We haven't taken that decision yet because we want to be relatively sure and confirmed that the announcements which we have seen from the market are also going to be materialized. And then we will scale up. But for the time being, it is a mixture of existing isotopes which is lutetium, Y90 and the future and the future is actinium, but there are also other potential radioisotopes, which are equally attractive. that is lead, for instance, that is copper-64. So other radioisotopes, which should not be forgotten, and they also have their pros and cons. At the end of the day, the customer determines what he wants, and we do our best to fulfill their needs.

And perhaps one final question for me. We've talked a lot about kind of the organic growth story of Eckert & Ziegler. And as an analog to that, how does M&A fit into the strategy? Is that something that you're considering actively?

This conference is an ideal place to talk to other companies or to learn what's happening and a lot of names have been given to me during the last days. We are looking to some of them, whether they do fit. And what means whether they fit? First of all, they have to fit to our core competencies. They have to be an added value to what for the time being, we are not able to do by our own. Then they have to be affordable.

And if you remember the slide I have presented here with billions of money being paid for a Phase II company that is beyond our scope. We will not pay EUR 1 billion for a Phase II company. And also, we want to stick to what we can and what we are known for. That's why we are looking very carefully if there is something which we would like to put on top of our list. and we are open, but I'm flying home still with a fully packed wallet and haven't spent the money yet.

Any more questions from the floor?

Can you talk about expectations in terms of license revenues going forward?

Yes. At the end of the day, money is money and also license money is more than welcome. Now the difficulty with license deals, you cannot predict them. If you look to our gallium business, we can pretty much forecast how much generator on the recurring business we are doing on a yearly basis.

Now with license deal, it comes as it comes. And we have one license deal where we entered into an agreement with the Chinese company for the production of actinium. And we have also another license deal which has been published with Telix also for the production of radioisotope of actinium. And some of that money was generated in '24. Some of that money is generated in '25, and the remaining money of that Telix deal will be generated by '26.

Now is license agreement, is this a permanent and repeating business part? The question is difficult to answer because, as I mentioned earlier, it's difficult to predict. But if companies are coming to us and say, Harald, we want Eckert & Ziegler as a supply company for radioisotopes, but simultaneously, we need a second source. And that second source should be our own in-source production, and we need someone helping us, why should I deny that possibility in entering into a deal with a pharma company twice with a supply contract and simultaneously with a license deal. Sounds strange, but at the end, it's attractive because it fosters the interaction with our partners, and that's why we are open, but it's not enforceable at the end of the day.

Thank you. Any more questions from the floor? Super. I see there's no more questions on the iPad. So thank you very much.

Thank you very much, Nikhil.

Hello, and good afternoon. This is Harald Hasselmann from Berlin calling, and I welcome everybody for today's 9 months press conference. It's the last time that at least in this year, we are coming together to have a look on the numbers on the Teams call. For those who want to have more information on present conferences, you are invited to join them at one of the upcoming conferences.

With me today is Karolin Riehle organizing this conference and also Julian Schröder. And as usual, as you all know that I will present to you the latest data. Some of that has been published earlier today, and then we will continue with the Q&A session. Forward-looking statement known to everybody. This is what we are talking about. Here, you see our enlarged Executive committee consisting out of the first one, Management Executive Board members as well as the entire group executive team, where also Julian Schröder is participating in it. I continue to open the presentation with some introduction charts.

Some of you who are participating in the conferences are known to these However, they are becoming more busier every time I present in this chart, you see basically all the big pharma companies as well as the ones who have been swallowed or acquired or went into cooperation with big pharma. And the message of this slide is unchanged. It is really a very motivating slide because it demonstrates the urgency to produce drugs in the area of radiopharmaceutical oncology of cancer and Eckert & Ziegler is the producer of isotope is participating on that development.

Now what is the expectation for the years to come? Basically, that chart mirrors the previous one that we do see a strong growth momentum in the years to come. We are currently here on the '25 expectation numbers, but there is still an upcoming and that is split up into radiotherapeutics on the one side, but then also technetium generator business in which we are also participating as well as other PET tracers in our 2 segments, the IP segment as well as the medical segment.

Our customers in all of the most dominant isotopes, gallium, lutetium, Y90, actinium and hot cells. So basically, whenever we talk about the businesses of Eckert & Ziegler Medical segment, then we see big companies as well as smaller ones as our customers, and that is the main contributor of Eckert & Ziegler's success. Lutetium established isotope with quite a lot of companies regularly ordering our isotopes, whereas actinium equally long that list.

However, the numbers in real qualities is, of course, still much lower than for the existing ones. And then we have our CMO, CDMO development in Braunschweig in Berlin, in Boston, where we are aiming for getting more and more customers on that list as well. Looking to the highlights of last quarter of quarter 3. Basically, very important is GalliaPharm has been approved in Japan, smaller country in terms of inhabitants compared to other Indian or Chinese countries.

However, as the price level is high in Japan, the approval, which we achieved for GalliaPharm in Japan earlier in September was a very important cornerstone for the future of GalliaPharm. We are happy that Berenberg Bank has started to take coverage on Eckert & Ziegler also in September. Earlier in August, we did a share split. That's why the share price is around EUR 17 and not EUR 51.

But basically, the aim is the same to increase the number of flow here and to optimize the liquidity of Eckert & Ziegler shares. And we have added one CDMO customer in July of this year for the Boston side, and they are also making use of our facility there. This is a picture taken 2 weeks ago here in Berlin, where we are setting up a new production facility for our GalliaPharm business. We were talking a lot about increasing capacity.

Now the building here on the left side is from the brick-and-mortar part is ready. Now we will start with the in-cell equipment, all this in order to be ready in time. This is how it will look like. And here, we are going to produce then upscaling GalliaPharm for covering and matching the market demand. Equally important is China. This is how the building in China looks like. This is for those who have been here in Berlin, you know that this symbol of Eckert & Ziegler is also placed on the roof of our Chinese building in Jintang.

This is how it really looks like. the entrance is here, and then we have the factory and the cyclotron area. And also here, you see that the cyclotron has been implemented inserted, built in meanwhile. So here again, our 2 important production sites are very much on track with our cost and time plan. Now let's have a look to the numbers. These are old figures as of '24, we are not able to produce full year's number to present them here.

So this is known to you, split of revenue, split of EBIT adjusted. A always the lighter red part is the medical, whereas the green is the industry, the isotope product part. How does the first 3 quarters look like? Here are the numbers. We have published today morning that overall growth was 4% whereas EBIT adjusted could grow by almost 10%, precisely 9%. And for those who are still interested in the net income, there is a growth Pentixa adjusted of almost 30%, 28% precisely from 23% up to 29%.

So let's have a closer look to the net sales. Basically, you are all aware that we have had a very challenging half year 1 with the cyberattack, with the discussions about tariffs with headwind in currency and things like that. That's why that was really a very unpleasant start of this year. Still FX adjusted, the growth is even stronger. It's almost 7%. And where is it coming from? You know the answer.

It's coming from the radiopharmaceutical growth, 17% versus prior year. Looking to the income or the EBIT adjusted numbers, no surprise that most of the growth is coming from the medical business, where we have here an EBIT adjusted growth for the Medical business exceeding the sales growth. In isotope, it's a mixed picture because we have products which are heavily contributing towards the growth, whereas also we have in the product mix, those which have a weaker contribution.

All in all, our EBIT adjusted margin is in the area of last year, 22% last year, slight increase up to 23% of this year. Looking into the 2 segments. Here, we see the double-digit growth of the Medical business, 15% growth almost EUR 120 million for the first 9 months. And here, again, due to the weaker U.S. dollar, if it was an FX adjusted picture, it would be slightly better.

Where is it coming from? Of course, from our gallium generators, they continue to grow EUR 7 million increase, but then we have also the income license for the license agreement, EUR 5 million and EUR 4 million was achieved by our new business unit, CDMO, plus EUR 4 million compared to last year. But also in the smaller ones, we had a positive development in our seed business in our prostate seed business, EUR 1 million better than last year.

The EBIT adjusted stronger growth here from EUR 9 million higher than last year. The gross profit has increased by 18%. So we have a gross margin now almost 50%, 48% to be precise, 2 percentage points more than last year, whereas the EBIT adjusted margin also could increase by 10% from 23% to 26%. So all in all, a good result for the Medical business. And even if we were looking to the net income here, the result is positive.

Isotope, a mixed picture. You know that the first half year was weak. But if we look to what we also announced earlier on that the second part of this year or the second half year will be better than the first one, then we have seen here the improvement. The Q3 results in terms of sales were 4% higher than last year. So that is a good development. And still, we are suffering by a lower income -- order income from OWL logging with high margins that is so far disappointing, but we have in the other isotope business and the spec business, there's a stronger growth.

And that gives, as I mentioned earlier, the picture. But to face reality, it's 6% lower than last year. That is not satisfying, although Q3 has been, as announced earlier, demonstrated how the recovery could look like. Simultaneously, also the EBIT adjusted numbers due to the lower margin products, which were stronger growing contributed to that profit decrease in the EBIT adjusted as well as the net income.

That is not where we wanted to land. However, we should not forget that 2024 was an extraordinary good year, whereas now we are more coming back to the original or to the typical to the historic values. Still, we have an EBIT adjusted margin of 18% for those of you following the isotope segments for a longer period. And if you look backwards, you would see that we were coming from 12%, 14%, 16%. So 18% is still okay. But of course, sky is a limit.

We would have been even more happier if the results would be better, and we are working heavily to come back to these better numbers. This is a slide which shows you the transfer and transition from the EBIT reported to the EBIT adjusted. And you see the medical column, the isotope product and others. Look to the total ones, please. You see that the EBIT reported is here EUR 48 million and then it's basically EUR 3 million higher, EUR 50.8 million is the EBIT adjusted.

And where is it coming from? You see it's a currency effect, it's hyperinflation. These are the 2 main topics contributing to that effect. And then you know that we have had the cyber attack, which was also then giving some headaches. For us, that is why we have then EBIT adjusted a higher number of EUR 15.8 million compared to EUR 46.7 million in the previous year. A regional split -- most important is that Asia, that is the third line here, continues to grow.

16% of our overall revenues is coming from Asia, meanwhile, and that is here a strong growth from EUR 28 million to EUR 36 million, and China is the largest contributor to that development, and that proves our decision to establish a site in China for the Chinese market because we do want to participate in that growth. Looking to the other 2 and still more important region that is Europe and North and South America, Europe, slightly below 40% North and South America above 40%.

And the reason I talked about isotope business, that's the reason here, including also the FX effect. that the growth was negative in this year compared to the previous ones, and that is compensated by the incoming growth for the European areas where we see the largest market is Europe and then followed by the other ones. They all have now introduced GalliaPharm and that also contributed to that sales in countries where GalliaPharm was not on the market yet.

Radiopharmaceuticals run rate and also where is it coming from? We have slightly changed that slide here. The dark part is the pure medical contribution, whereas the lighter blue is the revenue deriving out of isotope products, and that is mainly the South American, Argentinian and Brazilian business with our technetium generators and some cold kits. Here in '22, we acquired that company, and they are contributing.

We are well aware of the hyperinflation effect. But it is now out of basically up to 10% is deriving out of that isotope South American business, and we continue to grow last year to this year, and we expect to land compared to also to our guidance of EUR 150 million to be achieved by the year-end. That is slightly more than extrapolated because we are still awaiting license income here for Actinium.

It is the entire mixture of Y-90, lutetium, actinium, the generator business and then the other business, as mentioned here. I skipped the quarter business and rather would like to bring your attention to our balance sheet. You see left part and right part or active passive part of the balance sheet, EUR 450 million is the overall balance sheet number. That is quite an amount. Cash is EUR 120 million or cash equivalents.

But then the other remaining part is also equity, strong equity number, and we have once again reduced our liabilities. It's by now EUR 50 million. And here, we have some KPIs I want to present. A is the EBIT adjusted that was presented early on, above EUR 50 million is still the number compared to EUR 46 million of last year. Then cash flow from activities slightly below last year, but that is a temporary effect as receivables have increased and things like that.

So that will be flattened and come back to the number we are used by the end of the year. That is just because of fixed date of end of September. The rest is pretty much in line with the previous year. I mentioned loan liabilities have been decreased by EUR 5 million. Cash is higher than last year. Equity ratio remains above 50% and the overall headcount 1,100 people are working for the company.

Financial overview, cash flow, EUR 40 million; equity, 50%. Here, again, you see the number, and that is the revenue balloon getting bigger with the dark blue as just presented. Outlook. That is a slide I used to present also during the previous presentations. There is still a lot to do for the remaining part of the year. But we are -- despite all the challenges which we have had at the beginning of the year, we remain confident to deliver of the numbers which we have presented, EUR 320 million in net sales and approximately EUR 78 million in EBIT adjusted.

So these are the financial numbers. And now I mentioned early on, this is the last time that we have here a Teams call for this year, then only by Q1, you will see me again here on screen. But for those who want to talk to Julian and myself in presence here is the calendar. There's Jefferies next week, then Eigenkapitalforum Equity Forum in Frankfurt, then a small one in Dusseldorf and then the bigger one is JPMorgan conference in San Francisco at the beginning of the year.

Having said so, I close the presentation and stop here sharing my screen, and I'm more than happy to open the discussion with all of you. I see here 35 participants, and I would ask you to raise your hands electronically. And no surprise, [ Tim Bunderich ] is, I think, the first one and then the others are to follow. Tim, please go ahead.

My first question is on the gallium generator. Could you talk about the current capacity utilization? And how soon are you going to benefit from the increased capacity that you're currently working on?

Yes. Give me all your questions and then...

Okay. So I have a few. The other one is on the implicit guidance for Q4. Evidently, the EBIT in Q4 needs to be significantly stronger than what you've seen so far in the Q1 to Q3. So I think the expectation is that you're going to receive a license payment. Is that still your expectation that this is going to come?

And I think it was supposed to come in December. So what is the risk that this first off doesn't happen or that it gets shifted into 2026? So that's my second question. And then the other question is on Asia, China. What is driving growth here? I mean performance was nice. Is that also the gallium generator? And that once again brings me to the question of capacity utilization and how quickly you are going to benefit from the higher capacity to capitalize on the growth in that region?

And then a last one in Q3. I mean, you did have very strong catch-up effects in Q2 from the cyber attack that hurt your business in Q1. Did you still experience catch-up effects from this in the third quarter? And that's it for the moment, and I'm going to jump back in the queue.

Wonderful. So question number one is the GalliaPharm capacity. I do expect that our new plant, our new site will be ready end of '27 or somewhere first half year of '28. We have enough capacity to produce on our current site until the end of '28. So there is -- we will be ready with the new site before we will make use of the second site. And still, once we have opened the second site, we can still continue to produce on the first one.

So if you ask me about our currency utilization, it's still below 100%, and we will be perfectly matching the overlap reaching capacity while the new site is open by then. Second question was the guidance. Yes, right, you are. There is license income still to be generated, and we expect this to come in, in the Q4 accounting procedure. So that will happen in that one. Now can I promise you that everything will be incorporated before December 31 or will be something handed over to the beginning of next year.

We are striving to get most of that into this year, and that is the composition of the guidance to be confirmed here that we will have enough license income to be in that guidance corridor. Asia and China, yes, it's also GalliaPharm related, not so much the Gala farm in China yet, but in Japan. So we are selling already the GalliaPharm to Japan on a higher price level than average, and that contributes to also the strong improvement of profitability and then there are neighborhood countries.

But if you ask me what are the biggest countries for the time being, that is Japan starting in this year and then China next year. And the last question was the cyberattack. Most of the recovering process has taken place in Q2 because that was the production lack of GalliaPharm. Now we still have some issues which are still pending, but they are all together in terms of revenue in a single million-digit amount.

So as a nutshell, I can say the cyber attack has been fully recovered. Super. Then I take the next question that is Alexander.

I have a couple. Maybe the first one on your CDMO business unit. Maybe you can talk a little bit more about it. My understanding was that the activities are rather negligible for the time being in the short term, but yet you record 4 million more revenues alone in this quarter. Just maybe you can put it in the context what are those revenues? Is there any continuity to those? Or is it a onetime payment? And whether it's related to the cooperation with the Arches, I believe it's called for PSMA therapeutic.

Yes. Give me...

Sure. Yes, I'll throw in a few more I have. The would be interesting to hear an updated or refresher on CapEx outlook for the coming years, given that already you have made quite a bit of progress on the erection of new buildings, et cetera. That's the second.

And the third is around IP part of radiopharma revenues. There was a jump in 2024. Can you also elaborate what was that driven by? Is that acquisition or it was organic? And then maybe generally, more broadly, what's the outlook for the technetium generators in this vertical and also the related kits? That would be it.

Yes. The Q4 question regarding IP, I'm happy that Julian will jump in once we have approached at that stage. Let me start with the CDMO part that the increase by EUR 4 million is not Q3, it's EUR 1 to 9 million compared to EUR 1 to 9 million of the previous year. So it's a 9-month comparison, not only Q3, right? Archeus is a big customer or supposed to be becoming a big customer for our Boston site.

And the original idea of the CDMO business was to start with that business in order to attract customers to buy our isotopes. Now what we do see is that for clinical studies, not necessarily we have to provide them with the isotope, but they are making use of our facility, in particular, in the well-established site in Braunschweig and there, the customers -- for those who are visiting us, you would see who the customers are.

I'm not allowed to give names here on that conference here. But the number of kits which we are there producing, the number of label products is heavily increasing, and that's why we have really good development of these customers making use of that services. And I'm pretty sure that also in the next year, that will continue. And without giving too much details here on the CDMO activity in the original idea was say, okay, if it's plus/minus, we will be happy with not negative gross margin as long as they contribute to an increase of isotope orders.

Now that business is also positively contributing to the overall gross margin, and that's why we have given an extra Will it be as big as the other GalliaPharm and things like that? Probably not. But we will take that with us in order to demonstrate that Eckert & Ziegler is a fully fledged service provider. CapEx, that is -- there is one big issue which is still pending that is scaling up the facility of actinium production because what we currently see is that the clinical studies are ongoing.

But if you then speak to big pharma, we see here and there slight time delays, and that's why we are putting still a foot on the brake by saying, let's not, for the time being, spend here EUR 50 million. That is a number which I originally mentioned, EUR 10 million for property, EUR 1 million for the building, EUR 10 million for the cyclotron, EUR 10 million for hot cells and other, EUR 50 million, you can easily spend. And that kickoff has not taken place yet.

All the other investments, CapEx and that you have seen on the KPI overview chart is increasing for our business in South America in Brazil, where we are investing in a new site for our lutetium site in Boston and also here in Berlin, where we put money in order to foster our CDMO activities. So overall, I expect that the number this and next year will be around EUR 20 million. Technetium kits, that is a business which is increasing for South America, though.

We do not have a North American approval yet. So it's sold in the South American countries, and these numbers are increasing. It is very price sensitive, but to produce in South America is an advantage to other production hubs, but we are not at the end of our task list yet because, of course, we want to also have a presence for Europe and North America that is pending on approvals yet. That's why there we have still more growth momentum to come.

Julian, can you please help me in the IP question for Q4 of last year?

Alexander, good to see you. Now first, I learned that wording can be very confusing with us because we have IP and medical. And we have IP sales within medical, and we have medical sales within our IP isotope product segment. So let me know what exactly your question was aiming at.

It was referring to the chart that you now adjusted where you show radiopharma revenue and then there is a different color showcasing what part comes from the IP-related. So my question was what was the jump in 2024 related to?

Okay. So basically, the radiopharmaceutical revenues coming from the IP segment is the Latin American business. It's all about the technetium generators and the SPECT tracers. So it's mostly [indiscernible] and parts in Brazil. Looking at this, the nominal numbers is it's EUR 0.5 million more this year compared to last year. Last year, this field has quite an impact in Q4. So -- and that's basically it.

Nicolas, I hope we don't have to change to French, but here we go. Nicolas.

I will speak in English. Just 2 questions on my side. Would be interesting just to come back on Japan and your comments about the pricing there. What is the reason why it's so high there? And would you say it's even higher than what you have in the U.S.? So this will be the first question. And then if you could kind of quantify what's the opportunity in Japan that you see either on the top line and also on profitability as you say, it was having a good impact on margins? And then the second question, which is maybe a bit broader, but is to -- it would be nice to kind of have a view of how things are evolving on the IP part -- sorry, on the lutetium part and on the actinium part. Do you still have negotiation ongoing, things that we can expect in the future? And from the answer you gave on the CapEx investment, it sounds like you are maybe a bit, let's say, more cautious on the actinium side. Is this overerpreating things or maybe you -- as you said, you see the pharma not willing to move as fast as they used to be a year ago?

Okay. So Japan has always been a higher-priced country with pharma prices. You see this everywhere. And the overall, the price level is comparable to North America, to the U.S. and also our prices are in that range, what we are generating in the U.S. market. And that's why the overall number of generators will for sure, be less than in the U.S. But overall, in terms of price and margin, it's very much comparable.

And we are together with Novartis. So we have filed our approval for the Japanese market together. And as they have now received all the approvals they need, it was good for us as we have achieved, it's good for them, and that's why we can do that together. And I expect one of -- the first wave of generators, which we have sold to Japan will be seen or is seen this year and the next wave is then coming next year.

Regarding the lutetium and actinium business, we have still one prominent product in the market that is Pluvicto with lutetium. But if you speak to big pharma, they want to achieve both. They want to enter into a generic market or let me call a generic or me-too market in the prostate cancer area, but also endeavor new possibilities for other cancer areas. Our biggest customer for the time being is Eli Lilly.

And for them, we are producing already by now for their composition because they acquired the Later in which we had a supply contract with, but now it belongs to the Eli lilly group. And for them, we are producing already out of Brunswick, but we are very optimistic that also then once Boston is ready, lutetium will be also shipped out of Boston. Actinium, I'm not saying I'm cautious. I would rather say I'm realistic.

And the product development takes time. And for good reason. I mean, at the end of the day, it's treatment of human bodies. And all of us, we want to have a product which is safe -- and that's why it takes time until all the clinical studies are successfully performed, accomplished and brought to a reasonable end. And that takes as it takes. And I don't want to invest now EUR 50 million. And then if you speak to scientific people, some of them are very supportive for Actinium.

But then if you speak to others, they are saying, yes, the next wave is lead or Copper 67. I don't want to borrow you with all these isotope names, but the development could be relatively fast. And then I want to stay flexible. And if we now press the CapEx button, we would be still in time to match '28, '29 commercial starting point of big pharma entering into the commercial field. That's why I'm saying let's be reasonable with shareholders' money in order not to overinvest here at the very beginning.

Okay. Super clear. And maybe just a quick follow-up on the Biopharma agreement. If I remember rightly, it was EUR 100 million of total sales of lest that you were kind of eligible to get. Did you already collect some of that or it's mainly tied to approval of the drug?

No, no, no. There's -- I mean, small numbers because it's still in the -- but out of that contract, money is still already generated. Good. Then I have Benny from Berenberg.

I have 3 questions, if I may. First one is on GalliaPharm. You mentioned already Japan. Let's talk about China. I'm still somewhat expecting an approval in China somewhere between today and, well, the end of the year. So first question is, this is still realistic to expect a potentially positive news flow on this topic in the next couple of weeks or if that is something for H1 2026?

The second question is then basically on radiopharma revenues. First 9 months look pretty good, up 17% roughly year-over-year. But Q4 last year was pretty strong, nearly EUR 39 million radiopharma revenues. And I was wondering if you could give us some color what we could expect in Q4. I remember you were guiding for approximately 20% growth for the full year, we're at 17%. Is it fair to say that Q4 could be a little bit of a similar development as we have seen in Q4 last year?

And then the follow-up question would be, is that radiopharma guidance that you gave back then is any GalliaPharm revenues from Japan and China baked into that? That's it for now.

Okay. So lots of GalliaPharm questions. Yes, the first answer is yes, between 330 and end of the year, we are expecting the approval. They are -- here again, we are doing it together with Novartis. And for Pluvicto, the signal is already basically positive on the table. And now we are waiting for the combined diagnostic kit from Novartis together with our GalliaPharm.

So basically, we are expecting it any day to come. Whether that will generate sales in this year already out for the Chinese territory, it's unlikely because even once we have the approval, then you have to have 5,000 stamps on different papers and translated back in Chinese and then back to German and then whatever. So that takes some additional weeks before the first GalliaPharm out of that approval is going to be shipped.

What currently is happening, we are already shipping some generators into the Chinese market basically on the patient name basis. So on an individual basis, we can already ship or we can also ship study generators. Study generators are used to perform clinical studies, and we do this together with a Chinese company or also with Novartis. We are selling these generators in order to perform studies in China for a higher price that later on will be generated once the product is commercial.

Is some of these sales for Japan, it's in, yes, for China for Q4, out of that approval, there are no sales in the guidance for this year already. Now the radiopharma business, and here again, Julian is happy to join. It is always the question what to compare apple-to-apple or apple to pear. And if you look to last year, we had in Q4 some license income, which were inducing a strong result of radio business in Q4.

We are aiming to get also that additional license income in Q4 of this year, and then you can compare apple-to-apple. If 1 of the 2 would be taken -- was taken out, then the picture looks differently. And that's why if you really want to have a clean, clean, clean version, then you compare license-free versus license-free development. Julian, perhaps you give some more light on that.

I couldn't have said that better than you.

Okay. Good. I think these were your questions. And then Alexander has a follow-up question. I'm used to that has another 5 questions in the second round. Alexander, please go ahead.

Yes. Just a few ones. mostly follow-ups. So on Japan, are you aware if IRE doing any inroads in this market with Galileo? That's the first one. And the second one related to China. How will your distribution look like for gallium generators in China? And when do you think you will be able to start producing locally?

3 questions you asked for 2. Okay. So as I'm aware, we have a strong position in Japan. I'm not supposed to talk about competitors, but let me pronounce it in that way. I think we have a very strong position in Japan for the time being because it's only Novartis and GalliaPharm linked together and bringing the product into the market. So for the time being, strong position in Japan.

In China, the situation is a different one because there is also local production or other deals which are possible for generators with different level of quality, let me put it in that way. And the important question for conquering the Chinese market will be how the customers will adapt to high-quality generators or lower quality lower standards. And that depends also on the Chinese systems of hospitals that you have Class IV hospitals.

Most likely, they will all stick to high-quality ones like the GalliaPharm, which has GMP status. But there are also other hospitals with a lower degree Class , Class II hospitals, they might also look for a different level of quality. So that is quite difficult to predict how the overall development in terms of numbers and prices is going to be. We will work together with the distributor, and that brings the advantage that the distributor knows the market.

Currently, we are selling via a specific distributor with whom we are working together for many, many years in order to make sure that all these so-called study generators are arriving in time at the right price, and that is the chosen model also later on for the commercialized products. Now when the question -- if you ask me, when are we going to produce in China, setting up a production site in China will take something about 2 years.

What we are currently doing is produce -- aiming for producing the isotope, the germanium isotope in China, which is then used to produce the gallium generator. So we have to differentiate between production of the isotope germanium and potentially opening up a production site for local produced generators in China for the Chinese market. Answering the first question, that should be ready by '27. -- answering the second question, that should be ready by '27 or '28. Good.

Benny, your hand is still visible. I don't know whether you want to raise your voice again.

Yes, I want to -- maybe a few questions for Julian actually. Or maybe let's start on GalliaPharm question for China. You mentioned you have a higher price point in Japan. Is this likely to be the case as well in China? Maybe any color on the price point there? That's the first question. And then a question for Julian. If I look at your others division, we had like roughly EUR 0.5 million negative impact in the first 9 months of '25.

Last year, it was roughly EUR 3.4 million. So there is a year-over-year delta of roughly EUR 2.9 million in the first 9 months, respectively. And I was wondering if you could give us some color where is that coming from?

I'll answer the first question with pleasure. you can say in general, the price level in China is around 50% or 60% of the Japanese prices. So it's really tangible lower than the Japanese one. And if you then go to the lower quality ones, then you can cut it once again by 2. Julian?

It's a mix of a lot of different topics. First is a very openly shown one. It's that we wrote off last year EUR 600,000 for the investment that we took for the [indiscernible], where we've just seen the picture that looked completely different beginning of last year because we really had a change in scope and tear down the old building and started to build a new one. So we had to write off investments that we made earlier.

Second is that there has been some preparational costs for the spin-off of Pentixapharm. Third, due to the cyberattack, there has been some shifts here internally of spending costs, but we didn't touch the budgeted management fees to the company. So it's more an intercompany topic that we have slightly higher earnings than expected from this intercompany transactions. But on a group level, it doesn't matter. So this is basically it.

Okay. Perfect. And then maybe one follow-up, if I may, regarding adjusted EBIT in Q3 in your Medical division. I mean, over the last -- or last 9 months this year compared to last -- 9 months last year, it looks pretty strong. But if I compare Q3 in particular, it seems like last year, Q3, we were at an adjusted EBIT for the Medical business around EUR 8 million.

This year, we're going to be at around EUR 7 million or we are at around EUR 7 million. Was there any change in the revenue mix that was driving that? Was that actually mostly FX that was driving the year-over-year impact? Or any color on that topic?

I mean within 2025, it's just shifts between the quarters. I mean the Q1 looks better than it actually was due to the license deal. And Q2 really catched up everything that we missed in Q1 due to the cyber attack. So that's why those 2 are quite high and Q3 is lower. Looking into the numbers, you're correct.

Last year was EUR 8 million. This year, EUR 7.7 million, so more or less the same. It is sort of a product mix. There have been slightly also higher revenues and lower-margin products, but nothing really particular to give some more light to.

Nicolas?

Yes. Just a last one, a quick one, I hope. Just to dig back on the [ Telix ] milestone that you're expecting by the end of the year. Could you help us understand how much is there left to do for the year to make sure that you get to the milestone and be able to recognize the revenue?

And is there any case in which you could, I don't know, recognize only half of it this year and half next year because you are not fully on track with what you were expecting to do by the end of the year? Just trying to get how sensitive is it to completion and if that could be a risk on the guidance in the end?

Yes. It's a fair question, Nicolas. So basically, what is the project work all parties being involved are working on is continuously ongoing and that does not know the end of the year.

So that could be as a mixture of the entire license package is a composition of this work stream and that work stream, it could be that some of the remaining finishing work will be handed over in the beginning that could then if not all homeworks are carefully carried out until Christmas, that some of them has to be postponed, and that would then also trigger some of the payments into the remaining.

But we have to differentiate between payment and accounting that is then, again, a different statement. So your question is a very fair one. But for the time being, everybody has to work like hell and then we see what we can cash in and also book in, in this year and if there's something which has to be carried out. But for sure, it will be not lost, and that is the main story.

Good. I look around a little and before everybody is disappearing, at 35 participants. Thanks very much for joining in. It has been a pleasure, good questions and looking forward to seeing you all soon again here on screen or at the upcoming conferences around the globe. Thanks very much, and goodbye.

Thank you very much. Goodbye.