Company

FamiCord is the pioneer of stem cell banking in Europe. In order to strengthen this position in a targeted manner, new business segments are to be developed in addition to the existing core business. The goal, particularly in the existing core business, is to expand the market penetration or gain market shares – depending on market position in a given country. The Group also intends to enter into new regional markets.

FamiCord wants to increase awareness of stem cell based therapies and thus increase both the size of the market, and the number of services offered. For example, the Group is in the process of rolling out placenta storage offering in new countries where comparable offers are not yet available. The strategic focus in this area was further strengthened in 2024 and corresponding measures were implemented or prepared. At the same time, FamiCord wants to increase its market share in selected countries, particularly but not limited to UAE and other GCC countries, UK, Hungary, Romania and Italy. There are also several ongoing campaigns to win over as many customers as possible whose prepayment contracts are expiring for longer storage of the samples. FamiCord plans to improve the monetization of existing clients’ base by offering them new products and services, for example healthcare insurance.

As for the achievement and implementation of strategic goals, FamiCord 2024 made further progress. Particularly worthy of mention is the expansion of the product range to include the introduction of placenta banking. After the first positive customer response to this new service in Switzerland, FamiCord 2024 also implemented the market launch in Poland, the GCC countries, Romania and Italy. According to its own assessment, the market position in the markets served was further maintained or expanded in the reporting year. Intensive marketing and sales efforts continued to serve this purpose in 2024. The goal achievement of this organic expansion of the market position can usually only be measured in the medium term. In addition, nationally adapted contract designs, which were increasingly implemented in several countries in 2024, supported the expansion of the company’s own market position. The positive storage and revenue figures in the GCC countries underscore the successful measures in developing new international markets.

EXPANSION OF THE CORE BUSINESS
FamiCord relies on a combination of organic and inorganic growth within the scope of its corporate strategy. With the merger of the present-day subgroups PBKM and Vita 34, today’s FamiCord has been able to increase its market coverage in Europe. The Group is represented in all economically attractive markets from the perspective of FamiCord, primarily in Central and Southern Europe. Exceptions to this are markets such as France and Belgium, in which special circumstances or legal restrictions de facto do not allow market entry. In the medium term, the aim is to complete the further consolidation of the European market by 2026 and achieve market leadership in the vast majority of countries in which the company operates. FamiCord’s extremely strong position in the core European markets it already serves will prove to be a decisive success factor. In addition, the Group aims to develop further markets outside Europe, particularly in the GCC region. 22 Combined Management Report Fundamentals of the Company and the Group FamiCord Annual Report 2024 Organic growth will be driven primarily by new business from the storage of umbilical cord blood and umbilical cord tissue. The storage of placental tissue is also expected to make a gradual contribution. In the coming years, significantly more revenues are also expected from prepayment contracts that were concluded usually 5, 10, 18, 20 or 25 years ago and are likely to be extended by customers. Current experience in this field is encouraging – on average, over 50% of these customers are prolonging the storage contracts.

INORGANIC GROWTH
An additional focus of the FamiCord growth strategy is traditionally on vertical (development of new markets) and horizontal (conclusion of additional cooperative ventures) acquisitions in Europe, which are intended to strategically strengthen the market position according to clearly defined parameters and develop additional synergies, particularly in the areas of marketing and sales, as well as production and administration. The vertical strategy for portfolio expansion involves opportunistic acquisitions along the value chain or of companies with complementary product ranges. Horizontal market expansion focuses on the selective development of certain European markets. FamiCord has already successfully acquired and integrated a whole series of companies since 2006. In fiscal year 2021, the merger of the present-day subgroups Vita 34 and PBKM was another very significant step in the Company’s history. From this position of strength, FamiCord is decisively shaping the further consolidation of the European market and is on the verge of continuing its growth outside of Europe as well.

ONGOING COST EFFICIENCY
Projects to optimize Group-wide processes were already implemented in the reporting year. The focus was on the markets in Italy, Switzerland, Spain and Poland as further cost-reduction potential was identified here in particular. Specific measures were taken here to ensure the best possible coordination of logistics, administration and laboratory and storage capacities, from which efficiency gains can be derived in the long term. Synergies were also achieved in the areas of sales, marketing and customer service. For example, some of the marketing activities of a subsidiary were bundled centrally in Leipzig, which led to savings in personnel and material expenses. Moreover, optimized resource management in the entire Group strengthens the negotiating position of FamiCord vis[à-vis suppliers. This has reduced the dependence on external service providers, and lower purchase prices have been negotiated. The goal of the Management Board is to continue to advance the orientation of the Group-wide organizational and process structure towards cost efficiency