SYNLAB delivers strong performance in Q1 2024

EQS-News: SYNLAB AG / Key word(s): Quarter Results
SYNLAB delivers strong performance in Q1 2024

08.05.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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SYNLAB delivers strong performance in Q1 2024

* Revenue at EUR682 million

  * Strong underlying organic growth at 3.9% (Q1 2023: 10.0%); 5.2% adjusted
    for working days

* Adjusted EBITDA at EUR123 million (increased by 4% compared to Q1 2023)

  * Strong Adjusted EBITDA margin at 18.0% (Q1 2023: 16.9%), at the upper
    end of the guided range for FY 2024 of 17-18%

* EUR8 million of SALIX savings

* Strong unlevered free cash flow at EUR45 million

* Active portfolio management strategy improving business performance

* Adjusted net debt at EUR1.25 billion at the end of March 2024

SYNLAB AG ("SYNLAB" or "the Group", FSE: SYAB), the leader in medical
diagnostic services and specialty testing in Europe, today announced its
unaudited Q1 2024 results. The Group reports strong financial performance
driven by strong underlying organic growth (excluding COVID-19 testing
revenue) of 5.2% working days adjusted. Revenue reached EUR682 million (Q1
2023: EUR702 million) in Q1 2024 with an adjusted EBITDA (AEBITDA) of EUR123
million (Q1 2023: EUR119 million) and a strong AEBITDA margin of 18.0% (Q1
2023: 16.9%) at the upper end of the guided range for FY 2024 of 17-18%.

The Q1 2024 report is available for download on the investor relations
website: https://ag.synlab.com

"SYNLAB had a successful start to the year, with steady progress on our
strategic priorities and strong underlying organic growth. Our first quarter
results show that our portfolio management focus and the densification of
our operations have enabled continuous productivity delivery reflected in a
stronger adjusted EBITDA margin of 18.0%," commented Mathieu Floreani, CEO
of the SYNLAB Group. He adds: "Following the successful settlement of the
public acquisition offer by Cinven on 18 April, we look forward to continue
growing SYNLAB as a leading provider for medical diagnostic services
together with our long-standing shareholder."

Financial performance

    SYNLAB Key figures                    Q1 2024 Q1 2023 Change
    (EURmillion, unless stated otherwise)
    Revenue                                682.4   702.4   (3)%
    Operating profit                       53.9    45.3    19%
    Net profit (Group share)               25.0    27.9   (10)%
    Adjusted EBITDA (AEBITDA)              123.1   118.5    4%
    AEBITDA margin                         18.0%   16.9%  1.1ppt
    Adjusted operating profit (AOP)        64.8    60.5     7%
    AOP margin                             9.5%    8.6%   0.9ppt
    Adjusted net profit (Group share)      33.0    24.9    33%
    Adjusted EPS (basic and diluted, EUR)*   0.15    0.11    0.04
    Unlevered free cash flow (uFCF)        44.5    (7.0)    52

* Based on a weighted average of 219,775,252 (basic) or 220,943,418
(diluted) shares outstanding in Q1 2024 and 219,705,767 (basis) or
220,241,309 (diluted) in Q1 2023, respectively

Strong underlying organic revenue growth

Q1 2024 revenue was reported at EUR682 million (Q1 2023: EUR702 million),
reflecting a particularly sharp reduction in COVID-19 testing revenue to EUR3
million (Q1 2023: EUR25 million).

Underlying organic growth (excluding COVID-19 testing revenue) amounted to
3.9% in Q1 2024 driven by a price increase of 0.7% and a strong volume
growth of 3.2% across the Group's portfolio. Adjusted for working days
(Easter holiday being in March this year vs. in April in 2023), the volume
is very strong at 4.5% and the underlying organic growth is at 5.2%.

France (20% of Group revenue) decreased by (1.7)% due to price decreases of
(5.6)% more than offsetting strong volume growth of 3.9%.

Business in Germany (21% of Group revenue) grew organically (excluding
COVID-19 testing revenue) by 6.9% in Q1 2024 driven by a volume growth of
6.4 % and a price increase by 0.5 %.

In the South segment (29% of Group revenue), underlying organic growth was
(1.2)% due to a weak volume in Spain and despite higher prices. The South
segment underlying growth was at 1.0% adjusted for prior year revenue
one-off in Italy.

The underlying organic growth in the North & East segment (30% of Group
revenue) was very strong at 11.3% owing to strong volume growth and a
favorable pricing environment driven by health authorities partially
mitigating the effects of inflation.

Strong Q1 2024 AEBITDA margin

Q1 2024 adjusted EBITDA (AEBITDA) was EUR123 million (Q1 2023: EUR119 million)
while adjusted operating profit (AOP) was EUR65 million (Q1 2023: EUR61 million)
with margins of 18.0% (Q1 2023: 16.9%) and 9.5% (Q1 2023: 8.6%),
respectively. The AEBITDA margin was at the upper end of the guided range
for FY 2024 of 17-18%.

The year-on-year increase in AEBITDA margin was mainly driven by the 2023
disposals, a strong rebound of the profitability in Germany and cost savings
from SALIX initiatives (EUR8 million) across the portfolio. The inflation in
Q1 2024 was at 1.7% (Q1 2023 : 3.8%) benefitting from a 1% deflation in OPEX
(mainly lower energy prices compared to Q1 2023).

M&A activities

The M&A contribution was minimal in Q1 2024 as SYNLAB completed one small
bolt on acquisition.

The business continues to focus on portfolio management.

Increase of adjusted net profit

In Q1 2024, adjusted net profit (Group share) was EUR33 million (Q1 2023: EUR25
million), mainly from increased adjusted Operating profit, lower Net finance
cost and lower income tax expenses.

Reduction of adjusted (for covenant purpose) net debt

Q1 2024 unlevered free cash flow (uFCF) was EUR45 million (Q1 2023: EUR(7)
million) with a cash conversion rate (uFCF / AEBITDA) of 37%.

Net debt of the Group decreased by EUR56 million to EUR1,285 million at the end
of March 2024 (year-end 2023: EUR1,341 million).

Adjusted (as per covenant definition) net debt at the end of March 2024 was
at EUR1,249 million (year-end 2023: EUR1,303 million).

The leverage ratio decreased from 2.90x at the end of December 2023 to 2.75x
at the end of March 2024.

SYNLAB hold EUR260 million in cash at the end of March 2024 (year-end 2023:
EUR221 million).

In April 2024, SYNLAB AG entered into a new loan of EUR535 million with the
related party company Ephios Subco 3 S.à r.l. and has cancelled and repaid
in full its Term Loan A Facility.

Outlook

For 2024 SYNLAB continues to expect revenues of around EUR2.7 billion (at
current perimeter) with an underlying organic growth around 4%.

SYNLAB also continues to expect the AEBITDA margin to improve from its low
point in 2023 with a minimum increase of 50bp. The AEBITDA margin is
expected to be within the range of 17-18% considering the ongoing effort on
the portfolio management, the continuous delivery of SALIX initiatives and
the price net of inflation trajectory.

SYNLAB will continue in 2024 its bolt-on M&A strategy with an expected EV
spent to be within the range of EUR50 million to EUR100 million.

Cinven successfully settled the public acquisition offer to the shareholders
of SYNLAB AG and now controls approximately 85% of the SYNLAB share capital
and 86% of its voting rights.

SYNLAB Italy has been affected by the cyber security attack on 18 April
2024. SYNLAB has now restored operations and is gradually resuming all
services for patients and customers.

Conference call

SYNLAB Management will hold a conference call for analysts and investors
today at 3:00 p.m. CET (10:00 a.m. ET). Please register at least 10 minutes
before the start of the event by clicking on the registration link on
SYNLAB's website ( https://ag.synlab.com/conference-call).

- Ends -

For more information:

    Media contact: Steffi    +49 (0) 171 5565 996
           Susan Kim, FTI    (1)steffi.kim@fticonsulting.com  1.
               Consulting    mailto:steffi.kim@fticonsulting.com
   Investor contact:         +49 (0) 151 6701 3130 (1)ir@synlab.com  1.
   Etienne Ziller, SYNLAB    mailto:ir@synlab.com

About SYNLAB

  * SYNLAB Group is the leader in medical diagnostic services and specialty
    testing in Europe. The Group offers a full range of innovative and
    reliable medical diagnostics to patients, practising doctors, hospitals
    and clinics, governments and corporates.

  * Providing the leading level of service within the industry, SYNLAB is
    the partner of choice for routine and specialty diagnostics in human
    medicine. The Group continuously innovates medical diagnostic services
    for the benefit of patients and customers.

  * SYNLAB operates in more than 30 countries across four continents and
    holds leading positions in most markets, regularly reinforcing the
    strength of its network through a proven acquisition strategy. More than
    27,000 employees, including over 2,000 medical experts, contribute every
    day to the Group's worldwide success.

  * SYNLAB performed around 600 million laboratory tests and achieved
    revenues of EUR2.64 billion in 2023.

* Ticker symbol: SYAB; ISIN: DE000A2TSL71

* More information can be found on www.synlab.com

Appendix

I. SEGMENT REPORTING

  In         Reven-                             AOP
  EURmillion,    ue
  unless
  stated
  otherwise
               Q1    Q1   Under-lyi- Organi-  Q1   Q1     Q1     Q1
              2024  2023      ng        c    2024 2023   2024   2023
                           organic   growth             Margin Margin
                            growth
  France     135.2  143.3   (1.7)%   (5.7)%  14.2 18.6  10.5%  13.0%
  Germany    141.7  139.8    6.9%    (1.1)%  4.2  (2.6)  3.0%  (1.9)%
  South      198.5  225.4   (1.2)%   (1.5)%  21.3 23.2  10.8%  10.3%
  North &    207.0  193.9   11.3%     9.9%   25.0 21.3  12.1%  11.0%
  East
  SYNLAB     682.4  702.4    3.9%     0.6%   64.8 60.5   9.5%   8.6%
  Group

II. P&L, CASH FLOW, NET DEBT AND LEVERAGE

    Simplified P&L
    In EURmillion, unless stated         Q1 2024    Q1 2023   Change
    otherwise
    Revenue                             682.4      702.4     (3)%
    AEBITDA                             123.1      118.5      4%
    As % of revenue                     18.0%      16.9%    1.1ppt
    Adjusted operating profit (AOP)      64.8      60.5       7%
    As % of revenue                      9.5%      8.6%     0.9ppt
    Operating profit                     53.9      45.3       19%
    Financial result                    (17.2)    (20.5)     (16)%
    Income tax expenses                 (11.0)    (11.5)     (4)%
    Adjusted net profit (Group share)    33.0      24.9       33%
    Net profit (Group share)             25.0      27.9      (10)%
    Simplified cash flow
    In EURmillion                        Q1 2024    Q1 2023   Change
    Operating cash flow                  109        53        56
    Unlevered free cash flow (uFCF)       45        (7)       52
    Net debt and leverage
    In EURmillion, unless stated         31 March 31 December Change
    otherwise                            2024      2023
    Net debt                            1,285      1,341     (4)%
    Adjusted net debt                   1,249      1,303     (4)%
    Leverage ratio                      2.75x      2.90x    (0.15)x

Forward looking statements

This document does not constitute or form a part of, and should not be
construed as, an offer for sale or subscription of or solicitation of any
offer to purchase or subscribe for any securities in any jurisdiction.

Statements made in this document may include forward-looking statements.
Forward-looking statements include all statements that are not historical
facts and can be identified by the use of forward-looking terminology such
as the words "believes", "expects", "expected", "may", "will", "would",
"should", "seeks", "pro forma", "anticipates", "intends", "plans",
"estimates", "estimated", or the negative of any thereof or other variations
thereof or comparable terminology, or by discussions of strategy or
intentions. These statements are not guarantees of future actions or
performance and involve risks, uncertainties, and assumptions as to future
events that may not prove to be accurate. Actual actions or results may
differ materially from what is expressed or forecasted in these
forward-looking statements. As a result, these statements speak only as of
the date they were made and SYNLAB undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. It should be noted that past
performance is not a guide to future performance. Interim results are not
necessarily indicative of full-year results.

Declaration of non-IFRS measures

Certain data included in this document are "non-IFRS" measures. These
non-IFRS measures may not be comparable to similarly titled financial
measures presented by other entities, nor should they be construed as an
alternative to other financial measures determined in accordance with
International Financial Reporting Standards or any other generally accepted
accounting principles. Although SYNLAB believes these non-IFRS financial
measures provide useful information to users in measuring the financial
performance and condition of its business, users are cautioned not to place
undue reliance on any non-IFRS financial measures and ratios included in
this document. Due to rounding, numbers presented throughout this document
may not add up precisely to the totals provided and percentages may not
precisely reflect the absolute figures.

Organic growth represents a non-IFRS measure calculating the growth in
revenue for a given period compared to the equivalent prior year period for
the same scope of businesses presented in a uniform currency, i.e. using the
exchange rates of the prior-year period.

When calculating organic growth, SYNLAB uses the scope of businesses that
have been consolidated in the Group's prior year financial statement.
Revenue contribution from businesses acquired in the prior year but not
consolidated for the full year are adjusted as if they had been consolidated
as from January of the prior year. All revenues from businesses acquired
since 1 January of the current year are excluded from the calculation. The
Underlying organic growth is the organic growth excluding COVID-19 testing
revenue.

Adjusted EBITDA (AEBITDA) is operating profit adjusted for (by adding back)
the following:

* depreciation and amortisation;

* impairment of goodwill;

* expenses related to acquisition and post-merger integration.

Adjusted operating profit (AOP) is operating profit adjusted for the
following:

* customer list amortisation;

* impairment of goodwill;

* expenses related to acquisition and post-merger integration.

Adjusted net profit is defined as profit (Group share) adjusted for
adjustment items defined in the adjusted operating profit definition
including the respective tax effects (and effects from sale of businesses).

Adjusted net debt is defined as per banking covenant, the sum of financial
debt including loans and borrowings adding back capitalised transaction
costs, adjusted lease liabilities, and adjusted deferred price
considerations for acquisitions, net of cash & cash equivalents.

Unlevered free cash flow (uFCF) is defined as the sum of cash flow from
operating activities, net CAPEX (defined as the cash outflow from the
purchase of intangibles and property, plant and equipment, net of proceeds
from the sale of intangibles and property, plant and equipment) and leases
(defined as the sum of lease repayments and lease interest).


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08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        SYNLAB AG
                   Moosacher Straße 88
                   80809 Munich
                   Germany
   Phone:          +49 1701183753
   E-mail:         ir@synlab.com
   Internet:       www.synlab.com/
   ISIN:           DE000A2TSL71
   WKN:            A2TSL7
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1898103

End of News EQS News Service
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1898103 08.05.2024 CET/CEST