Financial Data and Key Metrics Changes - The company reported revenue of €3.7 billion for the first half of 2025, representing a year-over-year increase of 7% on a reported basis and 10.1% on a like-for-like basis at constant currency [9][38] - Adjusted EBITDA reached €876 million, a significant increase of 12.7% on a reported basis and 20.1% on a like-for-like basis at constant currency [10][39] - Free cash flow improved by nearly €200 million year-over-year, reaching €182 million higher than the previous year [10][40] - The leverage ratio improved to 4.2 times, the lowest in five years, reflecting strong cash flow generation and deleveraging efforts [11][39] Business Line Data and Key Metrics Changes - Biopharma reported growth of 8.2% on a reported basis and nearly 12% on a like-for-like basis, driven by strong demand for immunoglobulin products [14][42] - The albumin segment grew close to 10%, recovering from a temporary impact in Q1 due to a drug license renewal process in China [20] - Alpha-one and Specialty Proteins revenue grew 6.6% at constant currency, reaffirming market leadership [21] Market Data and Key Metrics Changes - The immunoglobulin franchise saw a growth of 12.5% on a reported basis, with a remarkable 17.8% growth on a like-for-like basis [18] - The diagnostics business reported a 2.8% growth at constant currency, with all major segments showing performance growth [32] Company Strategy and Development Direction - The company is focused on executing its value creation plan, which emphasizes commercial growth, margin expansion, and pipeline execution [8][12] - Innovation remains a core driver, with upcoming product launches such as fibrinogen in Europe and the U.S. [12][30] - The company is committed to improving profitability through targeted cost reduction initiatives and operational efficiencies [11][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complex and dynamic environment, including foreign exchange volatility and external uncertainties, but expressed confidence in the company's ability to adapt [6][63] - The strong performance in the first half of the year supports the expectation of continued positive results in the second half [13][64] - The company reaffirmed its full-year guidance for 2025, despite macroeconomic challenges [58][64] Other Important Information - The successful delisting of BioTest is expected to unlock value from this strategic asset [13] - The company announced a €0.15 per share interim dividend, marking the first dividend payment in over four years [53][54] Q&A Session Summary Question: Free cash flow and dividend reinstatement - The management confirmed that lower interest costs are a factor in the raised free cash flow target, but not the sole driver for reinstating the dividend, which aligns with the capital allocation framework [67][69] Question: Albumin market outlook - Management indicated that pricing pressure in China is due to government efforts to reduce healthcare costs, but they are well-positioned with local partnerships to navigate these challenges [70][71] Question: IG trends and CIDP share loss - Management noted that the deceleration in IG growth is influenced by currency impacts and emphasized that IG remains the standard of care in CIDP, with continued growth expected [75][76] Question: EBITDA guidance and cash flow phasing - Management acknowledged that FX uncertainties impact EBITDA guidance but reaffirmed confidence in the overall performance, expecting stronger cash flows in H2 [88]

Financial Data and Key Metrics Changes - Q1 revenue was $594 million, with a net loss of $104 million attributed to higher restructuring expenses related to the value creation plan [23][24] - Adjusted diluted EPS was $0.14, flat compared to the same period last year [24] - Adjusted EBITDA margin increased by more than one percentage point due to internal cost efficiencies, with free cash flow of $110 million [9][28] Business Line Data and Key Metrics Changes - Organic annual contract value (ACV) grew sequentially, driven by improved subscription renewals and new business wins [7][10] - Organic recurring revenue grew nearly 1%, with renewal rates across the subscription base improving by one percentage point [8][9] - In the IP Patent Annuity business, organic recurring revenue grew 5% due to higher volumes, with a double-digit increase in search volume for the Derwent innovation platform [13][19] Market Data and Key Metrics Changes - The mix of recurring revenue to total revenue is now 83%, an improvement of 200 basis points compared to last year [8][18] - Subscription renewal rates in the Life Science and Health segment improved to 90%, an increase of three percentage points over the prior year [14] Company Strategy and Development Direction - The company is focused on optimizing revenue, improving sales execution, and accelerating innovation through a subscription-centric model [6][10] - The value creation plan is on track despite a volatile macro environment, with a focus on business model optimization and increasing the subscription revenue mix [10][17] - The company is evaluating strategic alternatives to unlock value and maximize shareholder returns [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of research in academia despite potential government funding cuts, indicating minimal impact on business so far [11][40] - The company remains cautious against a challenging macroeconomic environment but believes its products' recurring nature positions it well [35] Other Important Information - The company has engaged with advisors to analyze options for maximizing shareholder value and will provide updates when appropriate [20] - The company launched new subscription platforms and AI-powered features, enhancing competitive advantage and customer engagement [19][20] Q&A Session Summary Question: Concerns about government funding exposure - Management indicated minimal impact from government actions in Q1 and noted that half of government contracts have already been renewed [40][41] Question: Inquiry about private equity interest in the IP segment - Management stated they are evaluating strategic options but had no specific comments on the private equity interest [48][49] Question: Drivers behind higher renewal volumes in IP - The primary driver for the increase in organic recurring revenues was a return to healthy growth in patent and trademark renewals [52][55] Question: Impact of U.S. government funding on revenue - Less than half of the A and G segment business is in the U.S., with a meaningful portion already renewed this year, indicating confidence in guidance range [59][60] Question: Expectations for transactional revenue growth - Management expects transactional revenue to remain soft in the current macro environment, focusing on improving recurring revenues [62][63] Question: Changes to the sales incentive model - Management highlighted upgrades in sales leadership and changes to the customer success organization, which have contributed to improved renewal rates [67][68] Question: Cyclical nature of patent renewals - Management acknowledged that while patent renewals can fluctuate, the long-term trend is expected to head back in a healthy direction [72][73]