CompuGroup Medical : Speech CFO Daniela Hommel (Courtesy translation - the spoken word is valid) (240515 EN CFO Rede zur)

COURTESY TRANSLATION

THE SPOKEN WORD IS VALID

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CFO

May 22nd 2024

Dear shareholders, dear ladies and gentlemen,

First of all, let me introduce myself. My name is Daniela Hommel and I am delighted to accompany CompuGroup Medical, one of the leading companies in the e-health sector, into an exciting future as the CFO since February 2024. I have been active in the healthcare sector for 26 years now. Since 2012, I have held various finance and controlling positions within the Fresenius Group and, from 2018, I was responsible as CFO for the development of the Fresenius Helios segment. In 2022, I additionally took on the role of Chief Financial and Innovation Officer of Helios Global Health GmbH. Furthermore, since 2022, I have been responsible as CEO for Fresenius' digital subsidiary Curalie.

Following Michael Rauch's update on the company's development, I will now provide some details on the financial performance of the past year.

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I am happy to start with the organic growth,

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4.3%

4.1%

0-3% p.a.

to incl. elematic Infrastructure Adjustments

May 22nd 2024 Annual General Meeting 2024

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which continued to be successful at a sustainably high level in the 2023 fiscal year.

Excluding the acquired businesses and foreign exchange effects, CompuGroup Medical achieved a very good organic revenue growth of 4.3 percent in the past year. Adjusted for the telematic infrastructure, an organic growth of 5.3% was achieved compared to the previous year.

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Let's take a look together at the key performance indicators:

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(	5% yoy)	(	6% yoy)	(	:	1.40)	(	: 6	)
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		(	13% yoy)	(	:	1.80)
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In the financial year 2023, CompuGroup Medical achieved a new revenue record of 1.188 billion euros, representing a 5 percent growth. he operative result (EBI DA) for 2023 amounted to 230 million euros, a 6 percent increase compared to the previous year. Adjusted for special effects, primarily related to restructuring, the EBI DA increased by 13 percent to 265 million euros.

At 114 million euros, the EBI was 10 percent up on previous year.

he annual net income amounted to 47 million euros, a 37 percent decrease from the previous year, mainly due to lower financial income and significantly increased financial expenses. he continuous increase in interest rates by the European Central Bank resulted in a 2.5 to 3 percentage points higher interest rate environment for refinancing. However, our interest burden in 2023 was significantly below market interest rates as the interest hedging instruments acquired in previous years took effect.

he earnings per share were lower than the previous year, while the adjusted earnings per share were at

2.06 euros, an increase compared to the previous financial year. he growth in revenue and profit contributed to a strong free cash flow of 113 million euros.

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he individual segments of CompuGroup Medical contributed to the development of earnings as follows:

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		A
		I		I		I
		S		S		S
2023	yoy	2023	yoy	2023	yoy	2023	yoy
Revenue	5%		1%		14%		8%
( m)		org. 0%		org. 14%		org. 6%
EBI DA
adjusted	13%		7%		53%		28%
( m)
EBI DA	1ppt		2ppt		3ppt		6ppt
margin
(adjusted)
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he slide shows you our segments in the new reporting structure that will apply from January 2024, allowing a comparison to our quarterly reporting in the course of 2024. In 2023, an increase in revenue was achieved in all operational segments. he hospital segment once again recorded the highest growth rate, which is also attributable to the successful implementation of projects related to the Hospital Future Act.

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Looking at the development of the past years since the beginning of our investment initiative, it becomes clear that…

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		2021	2022	2023
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...not only organic revenue growth reached a new level, but also the revenue quality, which is reflected by the share of recurring revenues. Recurring revenues increased overproportionate by 12 percent compared to the previous year, resulting in a 6 percent share of recurring revenues in the past fiscal year. Since 2021, the total revenue has increased by an average of 8 percent and the adjusted EBI DA by percent per year.

his is not only a clear evidence of the strength of our business model, but also a clear indicator of the long-term customer relationships we have built over the years. he achieved values follow a path that we want to maintain: sustainable profitable growth!

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he pleasing business performance of the past year is reflected positively in a high free cash flow, to which the above-mentioned recurring revenue with attractive profitability make a significant contribution.

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2021	2022	2023	2021	2022	2023
			L

Leverage	et debt (liabilities to banks and financial liabilities (incl. leasing liabilities according to IFRS 16) . sh.cand cash equivalents (except for accounts
(L M) adjusted for restructuring expenses plus pro rata EBI DA of newly acquired companies (Leverage ratio 2021: EBI DA adjusted (L M) plus pro rata
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under third-party management)) EBI DA EBI DA of the newly acquired companies)

CompuGroup Medical was able to achieve the highest free cash flow in the company's history in 2023. With 113 million euros, the free cash flow exceeded the targeted threshold of 100 million euros. his has direct implications on an improved leverage ratio. Despite acquisitions, higher interest expenses, and investments in next-generation technologies, we were able to reduce the leverage ratio from 3.1 times to 2.8 times EBI DA in 2023. Our focus will continue to be on reducing debt in the future.

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After reaching our guidance for 2023, we are now focusing on another year of profitable growth.

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May 22nd 2024 Annual General Meeting 2024

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he 2024 guidance has been published on February 7th, 2024, with an organic revenue growth between 4 percent and 6 percent, recurring revenue share between 65 percent and 70 percent, adjusted EBI DA in the range of 270 million to 310 million euros, free cash flow in the range of 70 million to 100 million euros and growth of adjusted earnings per share of approximately 10 percent.

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Let's now turn to the balance sheet of CompuGroup Medical:

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A		E			E
					2023
		66	674
1,530	1,523
		884	8 5
					2022
370	421	347	375
Dec 31, 2023	Dec 31, 2022	Dec 31, 2023	Dec 31, 2022
		Equity
on-current assets		on-current liabilities
Current assets		Current liabilities
		incl. 1 m assets held for sale	incl. 2	m liabilities related to assets held for sale
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May 22 2024 Annual General Meeting 2024
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Compared to the balance sheet date of the previous year, the total assets decreased by approximately 44 million euros to 1. billion euros. he assets have slightly decreased compared to the end of fiscal year 2022. he intangible assets represent the largest item on the assets side of the consolidated balance sheet. hese mainly consist of the hidden reserves from company acquisitions disclosed as part of purchase price allocations - i.e. the balance sheet value of goodwill, customer relationships, software, order backlogs, and trademark rights.

Our balance sheet structure shows that our non-current assets are financed on a long-term basis. As in the previous year, the equity ratio remained solid at 35 percent at the end of the year.

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May 22nd 2024 Annual General Meeting 2024

he group's equity decreased slightly from 674 million euros as of December 31, 2022 to 66 million euros as of December 31, 2023.

With the reported consolidated net income amounting to 47 million euros, there were more than sufficient funds available for the payment of the dividend of approximately 26 million euros.

In the past year, other changes, mainly exchange rate fluctuations, increase in investments in subsidiaries as well as actuarial losses, had a negative impact on equity totalling to 22 million euros.

Dear shareholders, following my remarks on our financial performance over the past year, I would like to inform you about the proposal to increase the dividend.

	200	-2011	2012-2017	2018-2022	2023
						subject to the approval of 2024 Annual General Meeting
22	nd	May 2024	Annual General Meeting 2024
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We are delighted to propose a doubling of the dividend compared to the previous year to 1.00 Euro per share. he resilience of our business model and the improved free cash flow profile enable us to sustainably increase the dividend level for our shareholders while continuing to invest in future growth. Based on currently dividend-eligible shares of 51.7 million, the total amount of dividends would increase from 26.1 million euros to 51.7 million euros. Based on the year-end closing price of 2023, the proposed dividend increase would correspond to a dividend yield of 2.6 percent.

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