Earnings call transcript: Vericelen sees strong Q4 with strategic growth

Vericelen (Market cap: $2.96B) reported solid financial results for Q4, showcasing a 5.4% organic revenue growth and a 6.4% increase in adjusted EBITDA to $425.54M. The company highlighted significant advancements in its biologics sector and strategic acquisitions, positioning itself as a key player in the pharmaceutical and biotech industries. The earnings call also outlined a positive outlook for 2025, with expected organic revenue growth between 3% and 5%. According to InvestingPro data, analysts maintain a Strong Buy consensus on the stock, with additional insights available in the comprehensive Pro Research Report.

Key Takeaways

• Vericelen achieved a 5.4% organic revenue growth in Q4.
• Adjusted EBITDA grew by 6.4% in the same period.
• The biologics sector saw revenue share increase from 11% to 15%.
• The company completed the acquisition of Vonjordi Pharma.
• Positive outlook for 2025 with projected organic revenue growth of 3% to 5%.

Company Performance

Vericelen’s Q4 results demonstrate resilience and strategic growth, particularly in its biologics segment, which now accounts for 15% of revenue, up from 11% the previous year. The company’s transformation into a solution provider for the pharma and biotech industries has been a key driver of this success. The recent acquisition of Vonjordi Pharma further strengthens its market position.

Financial Highlights

• Q4 Organic Revenue Growth: 5.4%
• Q4 Adjusted EBITDA Growth: 6.4%
• Full Year Organic Revenue Growth: 2.9%
• Full Year Adjusted EBITDA Growth: 4.1%
• Adjusted Earnings Per Share Growth: 1.1%

Outlook & Guidance

Vericelen’s outlook for 2025 is optimistic, with expected organic revenue growth between 3% and 5%. The company forecasts an adjusted EBITDA margin of around 22% and high single-digit percentage growth in adjusted EPS. Mid-term targets include an 8-10% compound annual growth rate, margin expansion to 23-25%, and over 10% EPS growth.

Executive Commentary

CEO Dietmar Simson emphasized the company’s strategic direction, stating, "We are building a strong and resilient company that sustainably delivers strong growth, margin, and respective cash flows." He also highlighted the increased revenue share from biologics, saying, "We managed to increase the revenue share of system and solutions for biologics from 11% in 2023 to now 15% in 2024."

Risks and Challenges

• Destocking effects in the wild business could impact future revenue.
• Market softening in cosmetics and food/beverage sectors.
• Potential supply chain disruptions affecting manufacturing expansions.
• Economic uncertainties that might affect investment and consumer spending.

Vericelen has positioned itself as a vital partner in the pharma and biotech industries, with strategic investments and acquisitions paving the way for future growth. The company’s focus on biologics and innovative solutions is expected to drive sustained performance in the coming years. For deeper insights into Vericelen’s valuation and growth potential, including exclusive Fair Value analysis and comprehensive financial health scores, visit InvestingPro.

Full transcript - GuestLogix Inc (GXI) Q4 2024:

Vicky, Chorus Call Operator: Ladies and gentlemen, welcome to the Publication Q4 and Full Year twenty twenty four Results Conference Call. I’m Vicky, the Chorus Call operator. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. The presentation will be followed by a Q and A session. The conference must not be recorded for publication or broadcast.

At this time, it’s my pleasure to hand over to Guido Picker, Vice President, Corporate Investor Relations. Please go ahead, sir.

Dietmar Simson, CEO, Vericelen: Thank you very much, Vicky. Good morning, everyone, and thank you for joining today’s call. I will now hand over to our CEO, Dietmar Simson, to run you through the highlights of the quarter and full year together with our CFO, Doctor. Bernd Messner. Dietmar?

Good morning. Welcome, everybody. Thank you for joining us this morning. For those who are new to the call, my name is Dietmar Simson and I’m the CEO of Vericelen. I will start by giving you an overview of our business performance in Q4, our fiscal year 2024 in general, and where we currently stand with our growth projects.

My colleague Dan Messner, our CFO, will then take you into a deep dive of the numbers. As always, we will then be happy to take your questions. Yes, Q4. Q4 showed a pickup in growth we had expected earlier in 2024. We achieved an organic revenue growth of 5.4%, adjusted EBITDA growth came in at 6.4%, Adjusted earnings per share growth at 6.7%.

The growth in Q4 was mainly driven by research and wild demand and growth in systems and solutions for biologics. Once again, we grew stronger in our bottom line than in the top line. We achieved two important milestones towards the end of twenty twenty four. One was the tentative approval by the FDA for the SQ Innovation Lasix ON U. Full approval was only prohibited because the FDA had granted market exclusivity in The U.

S. For a competing product until October 2025. The FDA’s volume underlined the market readiness of our on body drug delivery device, It also clearly demonstrated our expertise as an innovative solution provider for our customers. The second milestone was the successful completion of the Vonjordi Pharma acquisition, the largest acquisition to date for Gerasama. Q4, as mentioned, was actually the strongest quarter of our fiscal year 2024, but could only partially compensate for the first three quarters, which were significantly influenced by the destocking in the wild business.

That becomes obvious when we look at our full year results. Organic revenue for the full year came in at 2.9%, adjusted EBITDA growth at 4.1%, the adjusted earnings per share grew 1.1%. These are not results we are satisfied or happy with. We had no doubt anticipated a much earlier and stronger pickup in growth in 2024. The profit warning we had to issue in September was the first since 02/2009.

That should give you an idea how unusual the market development was that we experienced in 2024. The destocking effects are moderating now, but we are still not back to normal. On the positive side, 2024 also shows that the strategic transformation to a system and solution provider is taking effect. We managed to increase the revenue share of system and solutions for biologics from 11% in 2023 to now 15% in 2024. And we successfully ramped up new manufacturing lines for customer contracts in exactly this month.

The successful acquisition of Baum Yule Pharma takes us to a whole new level, significantly growing our revenues by approximately 15% to 20% and being margin accretive already in 2025, the first year after closing. After we started our journey in 2019, it took us four years to increase our revenues from SEK1.4 billion to nearly SEK2 billion and the adjusted EBITDA from a level of around 300,000,000 to above €400,000,000 Now, including Bamioli Pharma, we will even surpass the next important mark and move towards billion in revenue and towards million in adjusted EBITDA. We consequently seize the opportunities which come with the extended portfolio and the new capabilities of system integration. I will come to this point back later. Looking back at the key priorities we have for 2024, we set out about a year ago, we had we have delivered on them and broadened the foundation for long term profitable growth by, for example, increasing the revenue share of system and solutions for biologics, executing on growth projects in general and by expanding our portfolio with highly innovative products.

As part of our growth strategy, we systematically identified growth accelerators, markets with over proportional growth and attractive margin profiles. The market for systems solutions for biologics is exactly such a market accelerator. It grows significantly faster than the pharma market overall. That’s why we have expanded our portfolio to include specialized products, systems and solutions for large molecule biologics, most of them in the end high value solutions, which help us to expand our margins and to fuel our growth. We were able to change the market perception from a commodity provider to an innovative solution provider.

We leveraged unique business opportunities in the market, won, attractive long term contracts, and we have been expanding our manufacturing capacities to serve exactly this market. We have meanwhile become a mission critical partner, the partner of choice to the pharma and biotech industry. This is evident by the figures you see to the right. Revenues from systems solutions for biologics are up 40% in 2024 compared to 2023, a big step up which pushed their revenue share to 15.2% of our total revenue. The execution of our growth projects was another key topic for 2024.

If you look at our CapEx of million in 2024, you can see that roughly 30% was dedicated to molded glass. The investments in our molded glass business were mainly driven by furnace overhaul projects and the upgrade to state of the art furnace technology as currently ongoing, for example, in our plant in Lower Germany, which will also increase production capacity. The molded glass business requires recurring investment, but also delivers very reliable cash flows. The investment cycle for a new furnace by the way is ten to twelve years. Around 70% of our investments are dedicated to our business units, tubular glass, medical systems, primary packaging plastics and advanced technologies.

As you can see, more than 80% of the CapEx for these business units is dedicated to growth projects and the vast majority of these projects are for systems and solutions for biologics. This includes for example, our capacity expansion for syringes in Queretaro and Skopje, The Republic Of North Macedonia, the expansion of medical devices in Peachtree City, U. S. And Hossovskytung, Czech Republic, all a ready to fill vial project in Wehrtland, Germany. We ramped up new lines in 2024 with more to come online in 2025.

With these investments, we are laying the foundation for future growth. The contribution of these investments to our growth and margin expansion is becoming increasingly apparent as evidenced by the increased revenue share of systems and solutions for biologics. The third key topic for 2024 was innovation. The expansion of our portfolio with high innovative products and solutions, and also here we delivered. We advanced our platform technologies in manufacturing and therapy support and reached a great milestone with our on body device, which will enable the home treatment of patients.

We industrialized the manufacturing process for EasyFill Smart, the next generation packaging platform for ready to fill vials, and will start commercial production this year. EasyFill Smart significantly reduces total cost of ownership while delivering superior quality with fewer particles. It is also more sustainable as it enables hydrogen peroxide vapor sterilization instead of sterilization with ethylene oxide. In 2024, we introduced GX Cap in The US market. This is a digitally connected cap, which monitors the medication intake and enables pharmacies to offer remote therapeutic monitoring for medication adherence, which is crucial for the therapy outcome.

GICS CAB is also an excellent example of system integration delivering a high value solution. The cap goes on our prescription drug containers beyond the market, leader for prescription containers for pharmacies in The U. S. With GxCap, we tap into a new reoccurring revenue stream for pharmacies in The U. S.

For remote therapeutic monitoring. We only started last year, but have already received a lot of interest from pharmacies because selected remote therapeutic monitoring programs can be reimbursed via Medicare and Medicaid. Another example for innovation is the SQ Innovation Lasix ON YOU. The combination product consists of a novel high concentration combination of the Directic Fersomed and Gerasama’s onboarding drug delivery device with a patented device technology. The device is based on our proprietary infusion platform for subcontainers drug delivery, featuring an innovative micro pump technology.

Benefits include a patient friendly design, lower cost per treatment and increased sustainability through a two component concept consisting of a disposal component and a reusable electronic mechanical component. The concept was developed in line with our Eco Design principles, which aim to increase product lifespan and reduce waste. The onboarded device allows for home treatment and has the potential to increase the quality of life for thousands of patients suffering from congestive heart failure. SKU NOVATION received tentative approval by the FDA last year for LARXIX ONU. You might have seen our press release.

That means that the combination product has met the regulatory standards for quality, safety and efficiency required for approval in The United States. Full approval was precluded because the FDA had granted market exclusivity in The U. S. For a competing product until October 2025. The key takeaways are: Our onboarded device is ready for market and we have demonstrated our expertise in partnering with a pharma company from product design to regulatory submission and industrial manufacturing.

First relevant revenues are expected in Q1 twenty twenty six. The key topic with the biggest influence on our group in 2024 was the successful acquisition of Bamioli Pharma. Highest strategic and complementary to our product portfolio. As already mentioned, this acquisition takes us to a completely new level, significantly growing our revenues by approximately 15% to 20% and being margin accretive already in 2025. Most importantly, it strengthens our market leading position in core segments.

It allows us to create a global molded glass powerhouse, a strong and independent global unit with diversified portfolio in pharma, cosmetics and food and beverage. It opens new opportunities for system integration, order closure combinations which creates a completely new category of high value solution. The acquisition strengthens our positioning as a system and solution provider. Thank you very much for the moment. With this, I will hand over to Bernd Metzner for a deep dive into the figures in Q4 as well as the full year 2024.

Thank you, Dietmar, and welcome everybody also from my side. Let’s dive into the analysis of the key financials for the fourth quarter twenty twenty four. Revenues grew from million to million. This led us to an organic revenue growth of 5.4%. The impact from FX was almost minus million.

Our Plastics and Devices division continued its devices driven profitable growth in Q4 twenty twenty four. Our Primary Packaging (NYSE:PKG) Glass division returned to positive year on year growth supported by our Wiles business. Adjusted EBITDA grew from 119,000,000 to €127,000,000 This led us to an organic adjusted EBITDA growth of 6.4%. Organically, adjusted EBITDA margin increased by 20 basis points to 22.1%. The impact from FX was neutral.

Adjusted EPS increased from to This led us to an organic adjusted EPS improvement of 6.7. Let’s move on to the divisional development in Q4 twenty twenty four. Plastics and Devices. Revenue grew from million to million. This led us to an organic revenue growth of 4.9%.

The impact from FX was minus million. The organic growth was once again driven by strong contributions from the medical device business. Especially the business with pens and auto injectors recorded a strong growth. The business with CYRENGE Systems was affected by phasing effects and challenging comps in prior years Q4. Adjusted EBITDA declined from million to million.

FX contribution was minus million. Organically, adjusted margin adjusted EBITDA margin declined from 29% to 26.3% driven by a less favorable product mix. To put this into perspective, the organic adjusted EBITDA margin for Q4 was with 26.3%, however, slightly better than the adjusted EBITDA margin of 25.5% for the full year 2024. Let’s move now to primary packaging glass. Revenues increased from €238,000,000 to €251,000,000 This led us to an organic revenue growth by 6.1%.

The impact from FX was minus €1,000,000 The temporary destocking effect at our customers’ level moderated in the quarter and for the first time since Q1 for the first time since Q1 twenty twenty three, to repeat, our vials business grew year over year again, especially driven by ready to fill wiles. Beside that, molded glass grew in pharma. However, molded glass cosmetics was behind our expectations in the wake of a softening of overall consumer spending for cosmetic products. Adjusted EBITDA grew from million to million. The impact from FX was plus million.

This led us to an organic adjusted EBITDA growth of 30.6%. Organically, adjusted EBITDA margin increased from 18.5% by four twenty basis points to 22.7%. The improvement in margin is driven by a better product mix and utilization. Let’s move to Advanced Technologies. The operating performance improved at Advanced Technologies, especially regarding the development of adjusted EBITDA.

However, the most important message here is that we finally reached a very important milestone towards the end of twenty twenty four, as mentioned by Dietmar before as well. The FDA granted tentative approval for SQ Innovation’s on body drug delivery device based on our technology. Due to the tentative nature of the FDA approval, our partner cannot start marketing the product before October 2025, which is later than we originally expected. This slide shows the reconciliation of the reported to the adjusted financials for Q4 twenty twenty four. Revenues grew organically by 5.4% and adjusted EBITDA by 6.4% as discussed in all detail earlier.

Let me briefly comment on our EBITDA adjustments. The difference to prior year’s level is mainly driven by EUR 15,000,000 related to the acquisition of Bommioli. Adjusted depreciation was higher compared to prior year’s level due to the increased CapEx of the most recent past and we expect the nominal growth rate to accelerate hand in hand with growth projects being executed and in Q4 twenty twenty four was 19 in Q4 twenty twenty four was 19.3% compared to 26% in Q4 twenty twenty three. The lower tax rate was due to the utilization of tax losses. Adjusted net income after non controlling interest increased organically by 8.2% compared to Q4 twenty twenty three.

Adjusted EPS grew from to This led us to an organic adjusted EPS growth of 6.7%. Coming now to the cash flow development in Q4 twenty twenty four. As always, our Q4 is our strongest cash flow quarter. Overall, the free cash flow before M and A was with EUR 48,000,000, almost on par with the prior year with EUR 53,000,000. The adjusted EBITDA increased from EUR 119,000,000 to EUR 127,000,000.

As mentioned before, the adjustment of EUR 13,900,000.0 is mostly due to the exceptional costs related to the acquisition of Bombiodi Pharma. The release of net working capital remained almost on prior year’s level. The increase in net interest paid reflects the higher net debt level throughout the year as well as the arrangement fees for the successful refinanced RCF of EUR $675,000,000 and the promissory loan note of EUR 600,000,000 in Q4 twenty twenty four. Coming now to the cash flow development in our full year 2024. In the interest of time, I will only focus on the elected line items here.

Net working capital turned from a tailwind of EUR32 million to a headwind of EUR9 million. The decline in the contribution from net working capital is solely due to the customer down payments received in full year 2023, which did not reoccur in the amount of €53,000,000 in full year 2024. Excluding the effect from customer down payments, our cash flow from operating activities in 2024 would be on par with the fiscal year ’20 ’20 ’3 free cash flow. The line item adjustments declined by approximately EUR 80,000,000 due to the costs related to the acquisition of Bombardier (OTC:BDRBF) Pharma, as mentioned before. Net CapEx in 2024 was around million above prior year’s level as we continue to execute and as explained by Dietmar, our investment program into highly attractive growth opportunities just as in our CYREN systems operations in Queretaro and Skopje, our medical device production in Priti City and Porzovsky Tyn and our high value wise production in Werthijme.

In the end, and big picture, the free cash flow 2024 was with around EUR 100,000,000 weaker than 2023. Why? Because of lower prepayments of EUR 53,000,000 and higher CapEx of EUR 48,000,000 in attractive projects. Just to be clear, we expect in 2025 a much better free cash flow. Net financial debt according to credit agreement in force stands now at billion.

This is our adjusted EBITDA leverage amounts to 2.4 times. Coming now to our financial position in detail. On a pro form a basis, that means including our Bormioli bridge financing, our leverage per end of Q4 twenty twenty four would stand at 3.5 times and we focus on deleveraging to reduce our leverage ratio to a level of mid-3s towards the year end. To strengthen our financial finance position, we refinanced about EUR 2,000,000,000 in the last year. This includes EUR 800,000,000 bridge financing for the acquisition of BOMBIODI, EUR six hundred million promissory loan notes and the refinancing of the revolving credit facility of EUR $675,000,000.

Our liquidity currently stands at €861,000,000 and consists of our cash position of €186,000,000 and the entirely undrawn revolving credit facility of EUR $675,000,000. As per today, the purchase price of BOMBIOTE has been paid by drawing the bridge loan of EUR $774,000,000. This was a driver for the increase of our pro form a net debt to almost €1,800,000,000 and the according increase of our pro form a leverage ratio. Let me close my remarks with a word on our molded glass powerhouse. With the closing of the acquisition of Bormioli Pharma, we created out of the combination of Gerasimer and Bormioli molded glass a true global molded glass powerhouse with an attractive growth and margin profile.

On a pro form a basis, our molded glass powerhouse generated around million revenues with an adjusted EBITDA margin of approximately 20% in full year 2024. As indicated last year already, the midterm target is an adjusted EBITDA margin in the mid-20s, significantly above the current level and an organic revenue growth in the mid single digits. After the closing in December, we kicked off the integration of Vomioli Pharma. We can now take the according steps to a) create the new molded glass powerhouse with greater size, scale and footprint and b) to lift the synergies. For the avoidance of doubts, in line with what we said already last year in May, we are in the process of a strategic review to assess options with regards to the molded glass powerhouse.

Speaking of disclosure, we will be starting from Q1 twenty twenty five onwards presenting our company figures in the usual way of segmentation, but we will also present our molded glass powerhouse in a sell off format. With this, I hand back to Dietmar. Yes, thank you, Bernd. Coming back to our key priorities for 2025. Key priorities for 2025 are clearly defined.

We will focus on the integration of Barmioli Pharma, Bernd already mentioned, which is already well underway. The leverage the opportunities of the combined portfolio and new capabilities in system integration. Two success stories will have one joint future. We will definitely continue to execute our growth projects and ramp up new lines to start to contribute to our top and also bottom line. And we are committed to setting new standards for customized solutions and customer excellence as a mission critical partner for the pharma and biotech industry.

To support these key priorities and to solidify our foundation for profitable growth, we will continue to pursue our targeted investment program. The 2025 CapEx planning reflects the increased focus on cash flow and an even stronger selection of growth projects. Our CapEx 2025 will remain approximately at the same level as 2024. As our 2025 CapEx includes CapEx for Bombioli, it will be lower on a like for like base. Combined with the fact that our fiscal year 2025 will add an EBITDA contribution of well above EUR 100,000,000, this clearly supports a stronger cash flow.

The CapEx of our molded mass business unit is mainly driven by furnace overhauls and upgrades to state of the art furnace technology. The majority of our CapEx for the other business units is once again dedicated to our growth projects in particular with for capacity expansion for system and solutions for biologics. You have seen the major projects already on the CapEx overview slide for 2024. These projects continue in 2025 and will start to contribute. Baumioeli Pharma adds significantly to the group’s revenue and adjusted EBITDA and takes us to an entirely new level and jump off point for our future growth.

Our focus in 2025 will clearly be on the integration of Baume Yoly Pharma, which has already well underway. A successful integration is the prerequisite for leveraging the opportunities of the combined portfolio and the new capabilities in system integration and turning them into growth. The growth rate of Barmioli Pharma is lower than the former Gerasimer growth rate, which will have a certain impact on the growth momentum for the new combined group as a whole. At present, we see softer demand in the food, beverage and the cosmetic market, which affects our molded glass business. The FDA’s approval of our on body device is a great success for us.

However, as SKU Novation only received tentative approval, it means that they can market the pump only from October 2025. So we will only see revenue contributions starting from Q4 twenty twenty five onwards. Above all, we decided to take a more prudent approach to our guidance. And this all together now translates into an estimate organic group revenue growth of 3% to 5% in 2025 compared to the combined pro form a figures of Geraslama and Baum Jolie Pharma in 2024. As mentioned before, we will see a strong EBITDA step up in 2025, an uplift in the margin, we expect an adjusted EBITDA margin of around 22%.

The adjusted earnings per share will be in the high single digit percentage range. Looking at the first quarter twenty twenty five, we will see strong growth in revenues and EBITDA on a reported basis, driven by the contributions from Romeo Pharma. However, some of the effects mentioned earlier are waiting on our group’s organic growth performance. Compared to the combined pro form a figures of Gerasama and Borbioli Pharma, we expect an organic decline in Q1. Beside the general topics that affect the full year 2025, Q1 is primarily affected by one key topic, the phasing topic in the syringe business, which will shift revenues and adjusted EBITDA from Q1 into Q2 and Q3.

We will return to organic growth on a like for like base from Q2 onwards, supporting our 2025 guidance. Our mid- and long term growth prospects remain unchanged positive. We are growing strongly in systems and solutions for large molecule biologic for which we are systematically expanding our production capacities. With the acquisition of Bombioli Pharma, we have expanded our product portfolio and created the base for new integrated high value plastic solutions. All of this will help us to continue our profitable growth in the coming years.

In the midterm, we plan a compound annual growth rate of 8% to 10% for the new combined group and the margin expansion to a level of 23% to 25%. Adjusted earnings per share is forecasted to reach 10% plus. Yes, our growth momentum has been slowed down by the destocking in the market in 2024 and we expect only moderate growth in 2025. But our long term growth prospects are completely intact. Despite the current market headwinds, the transformation of Gerasana is in full swing.

We are building a strong and resilient company that sustainably delivers strong growth, margin and respective cash flows. The next opportunity to check-in on our financial performance in 2025 will be our Q1 results, which we will publish on April 11. For the time being. Thank you. We are now happy to take your questions.

Vicky, Chorus Call Operator: We will now begin the question and answer session. You. The first question is from Oliver Rynberg, Kepler Cheuvreux. Please go ahead, sir.

Oliver Rynberg, Analyst, Kepler Cheuvreux: Hi, good morning.

Paul Knight, Analyst, KeyBanc Capital Markets: Thanks so much for taking my questions. Three if I may. The first one was to focus a bit on unpacking the kind of change in the top line guidance for 2025. So there is now obviously quite lower momentum compared to the 7% to 10% growth that you were still guiding for Gerasama stand alone in September. So I appreciate the color on motor glass and the delay in SQ innovations, but is there any kind of other adjustment that you have to apply it?

And can you provide a more granularity what you expect now for motor glass? Can you provide some kind of color on this kind of two inches delay? What has caused it? And is it can you exclude that this is not related to a chamber? And probably any kind of color, what do you expect for vials and bromeli overall?

So just to understand the underlying drivers a bit better. Secondly would be on the adjusted EPS guide, which came in a bit softer than expected. It would be helpful to avoid any kind of further EPS disappointment in the future. Can you provide some hard numbers? What do you have in mind for depreciations on a clean basis?

Is it million the right ballpark? And also an interest cost, million, is that the right ballpark? And any kind of color on the tax rate, please? And then finally, on energy cost, I guess you are largely hedged for this year. And luckily, also the kind of gas prices came down a bit again.

But can you provide any kind of sensitivity if gas prices stay where they currently are? To what extent is this still a kind of earnings headwind for 2026? And can you provide any kind of sensitivity here given that with Bombioli, obviously, the exposure to this theme has increased?

Dietmar Simson, CEO, Vericelen: Thank you for your question. I take the first one, the three to five. Man, you mentioned them. In principle, the effect comes by a combination of several topics. You mentioned the molded glass softening markets of the cosmetic and food beverage that is one of the key drivers.

No doubt that Bamioli growth in general is slightly lower than the old guidance that you are referring of the old Garussama and the later pump. And that in principle are the main reason. The syringe delay that you are mentioning is actually a phasing effect that drives sales from Q1 into Q2 and Q3 and you will not see this over the loo of the total year. And it’s really a phasing. It’s just shifting certain deliveries into the second quarter due to certain capacity, which is actually not in our production, it’s actually a secondary process, it’s actually the sterilization.

So with second earnings per share, Bernd maybe you? Thanks Oliver for this question. Regarding EPS guidance, what we baked into and what not. Actually, you mentioned that for the financial results you worked with SEK 85,000,000. I don’t want to basically it seems from my point of view in a fair ballpark.

Then the second thing is regarding depreciation. I would actually assume that you are in the beginning of the eight, so eight point zero, eight point one, eight point two regarding depreciation to sales. I think it’s a fair assumption. And regarding the tax rate, given that we are basically you should not forget, we have now expanded our operation in the South Europe area. I think that 27% tax rate at this point in time is something we should consider when you’re calculating your numbers, but really quite roughly, quite roughly.

But then I hope you can work on this on a model basis, because we don’t give guidance specifically as you know for depreciation, not for financial results, but only that you can work on this data set. Regarding the hedge, the key question is major. The hedges, as you know, are basically running out end of this year, especially for the Gaggenheim part. We never disclosed the price for the hedge price. And obviously, also for Bomiuri part of the business, this will be quite helpful.

And when you look at the energy costs for 2025, no doubt on this. Obviously, we are looking at also to hedge and decide on our hedge policy this year for the next years to come on a very opportunistic basis. So it’s nothing what we can report at this stage more on this topic. I hope it helps, Oliver.

Paul Knight, Analyst, KeyBanc Capital Markets: Thanks so much. And just a follow-up, can you just confirm on the 2025 guide, this does not include any kind of changes to the expectations to the overall Gb gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes

Dietmar Simson, CEO, Vericelen: gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes gigabytes

Paul Knight, Analyst, KeyBanc Capital Markets: gigabytes gigabytes does not include any change to your early assumption for the GP1 franchise. Is that correct?

Dietmar Simson, CEO, Vericelen: That’s correct.

Paul Knight, Analyst, KeyBanc Capital Markets: Perfect. Thanks so much indeed.

Vicky, Chorus Call Operator: The next question is from Paul Knight, KeyBanc Capital Markets. Please go ahead.

Oliver Metzger, Analyst, ODDO: Hi. You had mentioned in the past the size of the GLP market was approaching triple digits. What do you think your revenue exposure or range could be in the year 2025?

Dietmar Simson, CEO, Vericelen: Oh, we disclosed this once, Bernd. Not precisely for the year 2025. We basically always said we have peak revenues of the magnitude of three fifty five systems, all what we actually said. Yes. But they are steadily going up, no doubt about this.

Oliver Metzger, Analyst, ODDO: Okay. And then the capacity expansion, you had mentioned 80% of CapEx was for growth. Is that of the total $345,000,000

Dietmar Simson, CEO, Vericelen: Of course, the CapEx we spoke about is not only the growth that we have in GLP-one, but it’s also of course, the GLP-one investments are a key driver of this. That’s Caretahor, the syringe expansion and part of this of course is also for GLP2. It’s the PEACH3 expansion, which is a lot of this is GLP1 and also Rasovskiteun, which might be GLP1 as well. But that’s not the only growth areas for the next years. It’s only GLP-one.

There are also other areas, especially in the area of biologics.

Oliver Metzger, Analyst, ODDO: Okay. And then last question would be your annual report mentions weakness in the cosmetics market. What’s happening in that market to have a slower market dynamic?

Dietmar Simson, CEO, Vericelen: Yes. Probably have to read some of the annual reports of some of our customers. There is a certain softness in the cosmetic market environment we are facing. It started actually already end of last year and it’s lasting into 2025 and that’s what we see at the moment and that’s one of the key drivers that affects us for the total year.

Oliver Metzger, Analyst, ODDO: Thank you.

Dietmar Simson, CEO, Vericelen: Maybe Paul, just one topic regarding your GLP-one question for 2025. When I look again, we don’t guide for specific products, that’s clear. But what we said was that in 2024, we will surpass SEK 100,000,000. What we said that and that’s a matter of fact that we did. And we said that the peak is basically so far what we disclosed was SEK $350,000,000.

So that’s also fair to say that we will basically reach the SEK 200,000,000 and being above in this year.

Oliver Metzger, Analyst, ODDO: Okay, very helpful. Thank you.

Vicky, Chorus Call Operator: The next question is from Oliver Metzger, ODDO. Please go ahead.

James Vane Tempest, Analyst, Jefferies: Yes, good morning. Thanks a lot for taking my questions. The first one is on the destocking bias. So you reported some the green shoots and what we’ve seen also that other companies destocking cycles have shown some high volatility with some quarters even pointed to recovery while the next quarter was weak. Are you confident that now the trough is behind you?

And how would you describe the recovery curve? Second question, your comments also about in the past about destocking at Bomeoli at the plastics side. Can you update us on that please? And my last question is about you commented for the phasing on ’25, but very weak Q1 due to the phasing in syringes.

Dietmar Simson, CEO, Vericelen: It would be

James Vane Tempest, Analyst, Jefferies: great if you can elaborate a little bit more because the magnitude seems to be huge to create such high volatility? Thank you.

Dietmar Simson, CEO, Vericelen: Yes. Manen, in the list, please talk and we can confirm what the peers also see as a moderate recovery. If we are not completely over, but we also see a moderate recovery. Actually for the Q2, we even see very strong order intakes and various areas of the web vials. That will definitely help.

The destocking in plastic is a very unusual topic because we never saw this in the old carri summers. From my point of view, it was probably a little bit of beauty up of the pride that now the dealers are destocking, nothing that we didn’t expect at all in our business model, but that’s what we are facing right now. I don’t think that there is a real impact of the market behavior for plastic of the new colleagues in Bongioli. And Q1, yes, the key reason is really phasing, there is some stabilization topics concerning the sterilization capacity that shifts actually started already in the fourth quarter, shifting volumes into the second and third quarter. That has quite an impact.

There’s a couple of other impacts you might mention. It’s we should not forget, we still have Morgantin not running up after the flooding on full power, but I didn’t mention them because the key reason the key block, the biggest block is actually from this phasing, but no doubt there are other criteria that also do a slight impact the first quarter. But the core point is that this phasing impact on the syringes is just is really shifting sales and profits just forward into the year and will not impact this actually will not impact the total years before. So just to add one topic was the molded glass and what we have seen the softness in cosmetic is as mentioned before is also continuing to Q1 as an element as well for Q1.

James Vane Tempest, Analyst, Jefferies: Okay. Thank you. Just a very quick follow-up. Can you give us an indication where the PPG (WA:IBSP) performance would have been in Q4 excluding Aviles?

Dietmar Simson, CEO, Vericelen: For the gas. For more than last, For motor glass. As you know, we don’t start disclosing now all the subgroups. The cosmetic weakness started also. We have seen this not a great figure.

And another great figure, but I will basically calculate this. But the real growth in Q4 came actually from tubular glass. Okay,

James Vane Tempest, Analyst, Jefferies: great. Thank you very much.

Vicky, Chorus Call Operator: The next question from James Vane Tempest, Jefferies. Please go ahead.

Victoria Lambert, Analyst, Berenberg: Yes. Hi. Thanks for taking my questions please. Perhaps Perhaps if I can ask on the guidance, like I said, there’s been questions already regarding the 7% to 10% to 3% to 5% including Baumeoeli. And I guess you’ve given some explanation in terms of some of the revenue slowdowns.

But just kind of curious on the margin side in terms of the what you’re guiding to is around 22%, which is quite a step up from 2024. So with the sort of slower top line, can you give us a sense of the moving pieces to get to around 22% and why there’s such confidence with any moderate growth, please? My second question is just to clarify your point on one of the questions that’s been. So am I right, you’re saying more than 200,000,000 for GLP-one this year versus 100,000,000 last year. So obviously that’s growing 100% and you’ve mentioned $350,000,000 in 2028 and that would be 20% compounded over three years or sort of seventy five million dollars So just trying to understand the cadence of your expectation whether that’s kind of conservative or if it is very kind of front end loaded and how the revenues are going to come together?

And then my final question is I appreciate there’s probably not much you can say, but given the press release that you’ve confirmed you’re having some preliminary discussions with private equity, just wondering any background you can give us to that to help us understand potential next steps from here. Thank you.

Dietmar Simson, CEO, Vericelen: It was a very fast question, so I think you want to start with maybe I start with the EBITDA margin of 24% to 22% actually, James. The key thing is, as mentioned by Dietmar before in his speech, it’s definitely that BOM Yodi will help us. It’s quite accretive for us, no doubt. But don’t forget the core, core, we are now expanding really our revenues with high value products and this is something what you will see. You see this especially because our biologics, the dynamic in the field for biologic products is really growing and this is actually what really driving the margin expansion in combination with BOM YOD being integrated in our company.

Yes, I would say the Bomiodi is probably an effect of whatever half a percentage and all the rest actually comes and that’s not unplanned out of the higher margin profile in the mix out of the old Garisama. And the $200,000,000 GLP-one that we are planning to go through is also nothing unplanned. It’s the ramp up of the lines and it’s the consequence all of the investments that we did over the loop of the last years. And if you talk about the quartilization, it’s a little bit back end loaded in the sense, but again one topic, James, what is important, we don’t guide now for CHF300 million GBP1 revenues. We clearly said it’s surpassing CHF200 million and it surpassed CHF100 million.

So we don’t want to have each quarter discussion how much comes from GBP1 precisely. But it’s fair to say that if you look at the increase in during the year 2025, it’s more backend loaded. And it will further accelerate over the group of the next not only second half of the year, but then into also 2026 and 2027, the share will further accelerate upwards, not out of pocket. And to your third question, you are totally right. There’s not much we can say and there are no major updates actually to the ATOC release that we did in February 7.

Victoria Lambert, Analyst, Berenberg: Thank you very much. Just a quick follow-up if I can. I think you mentioned Baumeo only could add half a point. I guess my understanding looking at the performance of Baumeo, if you last year, the margins had kind of tweaked down below 20%. So I guess since having full ownership, are there some immediate savings you’ve been able to get from that to kind of get that margin so it’s accretive?

Dietmar Simson, CEO, Vericelen: Yes, absolutely. And there are no doubt we also enjoy certain synergies that were also planned from the very beginning and we are now step by step materializing these synergies, which is also helpful. But one more time, you should not only see Bomb Yule as we buy more business of the same. This is a transformational acquisition that really gives access to this high value segment in plastics. We will not see all of this in 2025, but relatively soon also into the next years, you will see further margin increases coming with the high value segment and plastics, which is a great thing.

Vicky, Chorus Call Operator: The next question is from Victoria Lambert, Berenberg. Please go ahead, madam.

Falko Friedrich, Analyst, Deutsche Bank (ETR:DBKGn): Thanks for taking my questions. The first one is just about could you provide any timelines around the molded glass review, like when we should expect some update on this process? Are you still planning a Capital Markets Day over the summer? And what sort of topics are going to be discussed at the event, that would be helpful. And then just on the plastics and devices and PPG business.

Just to get a sense of phasing throughout the year, maybe it’s more of a clarification question. So Q1 is expected to be weaker for both divisions and then we expect to pick up and grow throughout the year. And maybe just some insight in in margins because plastics and devices was a little bit weak in q4 versus the previous year. Yes, that would be helpful. Thank you.

Dietmar Simson, CEO, Vericelen: I’ll probably take the last question first, Bernd. There are two aspects you are referring to in the which affects Q1. The phasing, it’s really a phasing and it started already in Q4 that’s why you probably also see a slightly softer EBITDA in Q4 in plastic and devices because we also here already shifted and delayed some of the deliveries that will now shift into Q2 and that is also affecting Q1. The other aspects in Q1 are and it’s clear, we are still not fully operating again in Morgantown in the facility. Here, we believe that we will be fully operational by March, which means in April, they will be able to contribute to the sales and profits in a full way again.

Just taking the question of the Capital Markets Day and then I’m sure that Deepak will elaborate on the model class strategic review. Regarding the Capital Markets Day, I mean, as you can imagine, now we are really focusing on the integration of Baum Yoli, which as you know is really the largest acquisition the company has ever made. And this is one topic. The other thing is obviously we need also to see this element in the with respect to the art talk we have published. So you really will appreciate and understand that we focus on this topic as well and on our fiduciary duties in this context.

So all in all, we will come back to you with an update on that what the group will look like once you have clarity on these issues mentioned above. Yes. To the Moled Glass, I would say these things are fully ongoing. As you can imagine, we reported that we are fully integrating the Brahmi only business. You saw the first information from Bernd, this joint powerhouse disclosure of the first information that will you saw now the first time and we will proceed like this in the next quarter reports that shows very clearly we are moving on by not only setting up this powerhouse, but also setting up as a separate segment.

And this is what you see. And so things are ongoing. There is no change in the plannings we are actually executing. I hope this covers your question.

Falko Friedrich, Analyst, Deutsche Bank: Great. Yes. Thanks. Thank you.

Vicky, Chorus Call Operator: The next question from Falko Friedrich, Deutsche Bank. Please go ahead.

Olivier Calve, Analyst, UBS: Thank you. I have three questions, please. Firstly, when we look at the P and D segment excluding your GLP-one sales, do you expect this business to grow in 2025? And then also the Glass segment, do you expect that to at least grow in 2025? And then on the GLP one revenue specifically, one of your competitors announced the signing of additional contracts here in the fourth quarter.

Were you also able to secure additional contracts? Or is that something that might be possible rather down the road? And then last but not least, could you give us a flavor for the share of high value solution products in your new company, including BOMBIOLI? Thank you.

Dietmar Simson, CEO, Vericelen: I give you some time to work on the first two questions, then I maybe answer the questions three and four then you can prepare yourself a bit better. The new contract here, P1, yes, there’s quite some tenders in the market at the moment, which we are quoting for. We’re also expecting positive news here with over the next months in various areas honestly spoken. It’s a very dynamic market with great opportunities. Also share of high value for Adspek.

Do you have an update on this? Should I step into it? Yes, there are the two topics. One is we talked about the segmentation. In the segments, you ask how is plastic and devices and PPG will perform throughout the year and whether we will see some growth there in the various segments.

And the answer is clearly yes, but we don’t start now and you will understand if I quite we don’t start now to say what would have been if I have not GLP-one and so on as possible. So the message from our side is, yes, we will grow in both segments. Then I think GLP-one, no doubt, will be a strong driver, especially in Plastic and Devices. That’s it. And then the other question is regarding the high value products ultimately.

And what we can tell you, starting from basically, we are adjusting now given that we have also now the company including Vonnegutii, we start now really to present going forward our high value products in a different way, including also our high value products, plastics. But I think one good approximate for our high value product in this area of glass is definitely is and medical devices is definitely the biologics. And also in 2025, we expect that our biologics is really increasing. The share of biologics for the whole company will increase from last year. It was around, if I’m not wrong, what we presented was around 15%, will also grow in 2025 by a substantial percentage points to sales including 1,000,000.

I hope this helps. You probably will not see too much of it in 2025, but we have to clearly see that with the integration of the plastic business in Bamioli, there will be a clear increase of high value products in plastic. That’s what I always say, it is a very transformative acquisition that is not just adding more business of the same. This bottle closure combinations will open a great opportunity for high value products in plastic, a field that we never were bad at, but now we further increase our margins and market excellence also in the over the loop of the next months in special years.

Olivier Calve, Analyst, UBS: Okay. Thank you. If I can squeeze in one quick follow-up. Berndjos and the free cash flow should be much better in 2025. Do you think it could turn positive again this year or should it still be rather slightly negative?

Dietmar Simson, CEO, Vericelen: It should be rather slightly negative. From the beginning of the year, it’s difficult to quantify, but we should be around zero and minus 50. This will be basically today our expectation. But we should not forget where we are coming from in 2024 where we were minus 100. So you see really a significant step up.

And this step up is also due to the contributions of Bomiuri. We should not forget this. And this is a quite good one also to deleverage and having this good cash conversion. So this will be basically the ballpark. And you probably saw in my speech, we have further increased with the CapEx, our focus on cash flow and become even more selective that and generally not only 25, but especially also next year’s will further increase the free cash flow.

That’s what I tried to say. Even this year ’25, we will not increase in dollar and euro our CapEx in spite of the fact that we are now a new company with Formioli. And at the moment we are looking at, are you only growing 3% to 5% whatever, but we should not forget the step up in both sales and also in EBITDA of the total new company is actually significant. If you keep the CapEx flat, but you do a step up in EBITDA by well above SEK100 million, It’s clearly that has a positive impact on the cash flow.

Olivier Calve, Analyst, UBS: Okay. Thank you.

Dietmar Simson, CEO, Vericelen: Thank you, Fagor.

Vicky, Chorus Call Operator: The next question is from Olivier Calve, UBS. Please go ahead.

Oliver Rynberg, Analyst, Kepler Cheuvreux: Yeah, morning. Thanks for taking my questions. Just a follow-up on the free cash flow guidance. The CapEx guidance you’re implying, these two lines, the cash effective CapEx of SEK370 million and the cash from investing of around SEK348 million after investments in government grants. Just to clarify, you referred to that SEK348 million or to the SEK370 million million dollars would be the first one?

Second one on the syringe business phasing, could you give me maybe a bit more details on that contract, which geography or end market that is and what do you mean with the sterilization capacity being a bottleneck? And then just on overall visibility on the business, you had said you would disclose a new segment structure at the Bon Painuil acquisition, if I’m not mistaken. So I understand this is not coming, but maybe you could just shed a little bit of light on the contract manufacturing business. First of all, could you quantify your GLP-one exposure there and your exposure also to continuous glucose monitors that were in the news recently? And then on the GAT segment, could you just give us a sense of how much of an uplift you expect from the pump business pick up in 2026, ’20 ’20 ’7?

Because obviously there’s already a product on the market? And what’s your expectation would be on EBITDA breakeven in that segment? That would be my few questions here.

Dietmar Simson, CEO, Vericelen: The first question, in regards of the surgery, I will not be able to disclose customer in other topics, but it’s a European topic and one more time it’s phasing topic that just shifts certain deliveries of already produced components into the next quarters. Through I’m sure, but I fully understood the contract manufacturing business, our exposure when we are a key player, world market leader in enablers and pens in the contract manufacturing. So it’s one of the core areas of our business in the medical devices today. We are now strongly growing in the order in Yekta as well. The expertise of Gerasimer is clearly in the capability to industrialize the products and that’s also why we are very successful in getting GLP-one contracts because we are obviously a player that has the highest likelihood that you can ramp up high volumes in high accuracy and that’s what happens.

And as such, we have of course an increased market also in that chip on devices independent whether it’s pens or auto injectors for the devices. And the pump twenty twenty six, We believe, I mean, that’s a pump of the customer. We are delivering the pump, but they deliver of course the drug. We believe that this solution is a very cost competitive solution that has a strong market and we hope that the ramp up that’s now a bit delayed from October on is really contributing to sales and profits also in 2026 and especially 2027 and onwards. And then tackling your question regarding the CapEx indeed, it’s the year when we talk about the same year as a basis in the CapEx cash out of 2025 and same as in 2024, it’s a magnitude of SEK $350,000,000 CapEx cash out for 2025.

Oliver Rynberg, Analyst, Kepler Cheuvreux: Okay. Thank you.

Vicky, Chorus Call Operator: The next question is from David Ellington, JPMorgan. Please go ahead.

David Ellington, Analyst, JPMorgan: Hey guys, thanks for the questions. Most have been asked, but maybe just circle back on Plastics and Devices. Obviously, a bit of step down in growth in the fourth quarter. Just wondered if you could maybe give us a high level of thoughts in terms of how we should be modeling growth for the year in 2025 in P and D. Then secondly, just also to clarify your comments on the Capital Markets now.

I wasn’t able to interpret your comments just in terms of should we expect a Capital Markets Day this year? Or is that something that you’ve delayed indefinitely?

Dietmar Simson, CEO, Vericelen: Maybe I’ll take the Capital Markets Day question first. In the end, what we actually said is we have now the focus on the integration of POMIOLI, then we manage need to manage all the things around the ad hoc release. And after this, basically, we will give an update Once we have clarity on this, especially on this ad hoc topic, then we give clarity on when and when we want to do and will do the Capital Markets Day. That’s the idea. Yes.

To the plastic device step down growth in fourth quarter, I would not overestimate this. There are certain phasing topics in the plastic device will deliver a solid growth pattern in the whole year 2025.

David Ellington, Analyst, JPMorgan: And then maybe one follow-up. Just in terms you mentioned that you are looking at potentially new GLP-one contracts. Would those pressure your CapEx plans this year? Or is it already incorporated into your CapEx guidance?

Dietmar Simson, CEO, Vericelen: Basically, all what I mean, we don’t disclose all the details of the plan, but you can be assured that we have we are prudently managing our CapEx. And there are also some ideas which kind of projects we might win and we have AfronoDays in our CapEx budget for this project. It’s both, some are we are very, very confident that we will win these platforms, they have been included and others we have to see we have not included.

Vicky, Chorus Call Operator: The next question is from Edward Ho, Stifel. Please go ahead.

Dietmar Simson, CEO, Vericelen0: Perfect. Thanks guys. I guess my first question would just be on Boromir Ally. I think when the acquisition was announced, you mentioned synergies in the region of 3% to 5% in the first two years. So could you quantify the synergies you see for Boromir Ally today and is this baked into the guide?

And then a question more on sort of the actual individual facilities. Are there any facilities in your organization where molded glass and tubular revenues are produced in the same building? That would be my sort of first question. And then second question again on GLP-one, could you provide a rough percentage split of how much is earned in glass and how this is expected to change as we approach the million target that you’ve said? Thank you.

Dietmar Simson, CEO, Vericelen: I understand. And it was a bit hard for me to understand. I understood there was a question whether there are facilities that are mixed with Moled Glass and others. This is not the case. Moled Glass is very specific in the production process, so their motor glass facilities are motor glass facilities.

That is valid for both Gerasmal but of course also for the new facilities coming in with Bombiioli. Maybe just to tackle the question of the synergies for Bombiioli part, as you rightly remind us, we basically said 3% to 5% of the revenues of BOMBIOLI and the near term, so and we have this clear in mind And a significant portion of this should be we should also realize already in 2025 in the magnitude maybe of SEK 5,000,000 to SEK 10,000,000. And the other question, I think I understood, how can we reach or will you do you believe in this $350,000,000 GLP-one sales? We don’t have doubts in the achieving of this $350,000,000. The question is how much will be over the loop of the next year be able to overachieve this.

Dietmar Simson, CEO, Vericelen0: Okay, perfect. And just wanted to double check the synergies that you just described there. Was is this baked into your guide that you have today for 2025?

Dietmar Simson, CEO, Vericelen: Yes. Yes. It’s included in our guidance indeed.

Dietmar Simson, CEO, Vericelen0: Okay, perfect. Thank you very much, guys.

Vicky, Chorus Call Operator: The next question is from Delfin Louay, Bernstein. Please go ahead.

Dietmar Simson, CEO, Vericelen1: Yes. Hello. Hi. Good morning, everybody. Just to be back into this CapEx allocation and trying to extract from ’25 having a big a longer view than the short end one.

I think it’s a lot of importance when considering the investment you have to be made. So can you tell us and how you think the evolution, let’s say, in the three years ex multi class for your envelope? So how should we think about this million going forward, absolute and relative to sales? Is it the time to go now in terms of relative to sales for the CapEx, the way to look at that or not? Second question, obviously, linked with the operating cash flow and so the free cash flow.

So you gave us part of the response. Just willing to go back effectively into this 3% to 5% synergy on the revenue, but we all know that there is also a lot of synergy to expect from the marketing and selling, for instance, on the OpEx side. So can you let us know if you have a plan for that? When will you activate that? And thirdly, I was also willing to know what is going to be your major, let’s say, innovation milestone to come in 2025 and 2026?

Dietmar Simson, CEO, Vericelen: Maybe I think the CapEx then is you can add that. Generally, if you look at the CapEx, it’s just for molded glass, you have a situation where the base CapEx and mold is, of course, much higher than in the other areas of the business. So if you look at the molded glass CapEx separately and point to the other physics separately, you would see a lower base CapEx and then no doubt any further CapEx is significantly stronger supporting and funding the growth. That is something that you would see if you separate the quoted picture and the other picture. Maybe just to delve into, to add what Deepma just said, If you look at our CapEx program as mentioned by Deepa also in his presentation, I mean the major significant chunk more than 100 goes into molded glass.

So if you really 120 something like this in the ballpark of this three fifty, if you really zoom into the part which is not molded glass related, what is very important and it was also worked out by Dietmar in his presentation is that the base CapEx needs for the part of Gerasimer without molded glass is lower, much lower than what you see for molded glass. I think it’s a very important feature. And therefore, you need to focus on the growth CapEx in this area. And the growth CapEx for this area is actually rising a digit in 2025. And here comes into play the CapEx growth rule what we have.

Today, for each CapEx growth CapEx what we have, EUR 1, you actually can translate this into EUR 1 additional sales, rule of thumb. And that’s the logic how you need to approach our CapEx out of molded glass. And what we always said, we want to improve this ratio even going forward, but that’s where we stand today based on our CapEx rule. Yes, there is not much What I tried to say in my presentation, you have to see that the key also is more that the CapEx is relatively flat for the time being, but we are actually adding big chunks of additional EBITDA that comes in, in 2025, but also in the years out and that for sure is changing the cash flow profile.

Dietmar Simson, CEO, Vericelen1: Yes, understood.

Vicky, Chorus Call Operator: We’ll take the last question from Alexander Galica, H. A. I. D. Please go ahead.

Dietmar Simson, CEO, Vericelen2: Yes. Thank you. A couple of questions and some maybe follow ups on what you already discussed. Just wondering if you’re willing to share more ideas, particularly around SQ innovations. The product will be launched in 2026.

Is there a sense how like is that the monopoly market currently and what’s kind of the current size of the market you ultimately will be addressing?

Dietmar Simson, CEO, Vericelen: That goes deep in the details of our customer actually. Market is an attractive market, and we are talking about a furosemide, where today the patient goes to the hospital actually and gets an infusion for ten days. The competitive NCO protected is not strong in the market yet because the technology is just rolled out. So it’s still possible to really grab a major part of the market that is in itself strongly growing. So that’s the strategy of the customer and with this, we also clearly see the potential.

Beside this project, one aspect is very relevant. It’s the first time where we have a pump together with a customer through the FDA and the response is significant. It was not that our own IP device business, the former acquisition of Sensa was driven by only success stories of the group of the last year with new orders and so on. But what we clearly see now with the pump, first pump through the FDA, we have significantly more discussion with further application for the customers because they see we are on a technology level where you can successfully get one of these pumps through the FDA, that is a very, very good for further growth even beyond, very clearly beyond this individual project.

Dietmar Simson, CEO, Vericelen2: That sounds like it’s somewhat differentiated product. I wonder if you can share, sort of what’s the revenue model behind that, so maybe we can derive some kind of numbers for that in terms of what’s I don’t know what the best way to think about it ultimately if the product generates $6,000,000 what’s the Gersteiner’s share?

Dietmar Simson, CEO, Vericelen: Maybe I just get some basic data from our marketing that pulled out some data for you, but this will not help you much, aren’t they? There are six point seven million patients suffering from this congestive heart failure in The United States And this leads actually to one point two million hospital admissions annually. And this actually is permanently growing over the group of the next years. And that shows you the potential of this market. We are actually pretty conservative, our landings at the moment based on the experience we made over the group of the last years, but no doubt, we also clearly see a potential into the mid it’s whatever it can say much we want to disclose.

Normally, we don’t disclose specific customer projects because also for competitive reasons, especially in the smart markets. And therefore, we are a little bit shy on this topic. And I think this is, by the way, a very good case for systems actually, NetEpar, because ultimately we are not getting all the royalty streams from our concept, but we are actually also selling the pump separately and therefore you need to see the whole package in the industrial data. But that’s the important point of their own IP devices. The own IP device of course in the margin profile have significant different return than the classic you mentioned it earlier or one of your peers mentioned it earlier, the classic contract manufacturing.

And that is and as with the delay into the October, we will not see much of it in 2025, but they will steadily contribute in the outer years 2026 then 2027 to both bottom and top, but especially also bottom line.

Dietmar Simson, CEO, Vericelen2: And my last two questions is one on Biologics shares. So you mentioned 15%, which amounts to roughly $300,000,000 thereof $100,000,000 is GLPs. Just wondering if you could remind us, so this $100,000,000 GLP revenue, is that all CMO for auto injectors or is there something else? And also if you could give some kind of an idea the remainder $200,000,000 what is the composition of that? That’s the first question and then the very last one is, I noticed that the exceptional items shot up again.

There is some there are some items on reorganization front, $3,000,000 just wondering whether it has to do somewhat with the Bornioli integration or potential spin off already and whether we need to expect something on that front in 2025 as well? Thank you.

Dietmar Simson, CEO, Vericelen: Maybe a little bit to our portfolio on GLP-one. We have to see that we are really serving GLP-one in various applications with the broad portfolio. You have vials and cartridges, you have syringes, you have primary plastic packaging for the oral solutions and you have both auto injectors and pens. They together make these figures that we are disclosing. No doubt, key drivers are auto injectors and pens followed by the syringes.

Maybe just to step into this exceptional question. Ultimately, indeed, our exceptional were high in 2024, but in the end due to the BONJOLI acquisition, ultimately, I think it was a ballpark of 15,000,000, a ballpark of 15,000,000. Then you that’s something what still you need also to expect in 2025, a double digit million euro amount linked to the Bombioli acquisitions still also in 2025. It would be my judgment from today’s perspective. There’s no doubt on this because ultimately we want to also materialize the synergies, which we talked about it before.

Dietmar Simson, CEO, Vericelen2: Thank you.

Dietmar Simson, CEO, Vericelen: As there are no further persons with questions in the queue at this time, we will therefore now conclude today’s call. We are happy to organize follow-up calls should you still have questions, and we’re looking forward to seeing many of you soon. Bye bye. Thank you.

Vicky, Chorus Call Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing ChorusScore,

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