Redcare Pharmacy N.V.

Investor Presentation • Mar 2, 2021

FY 2020 EARNINGS CALL PRESENTATION.

SEVENUM, 03 MAR 2021

TODAY'S PRESENTERS.

STEFAN FELTENS, CEO.

JASPER EENHORST, CFO.

PRESENTING TODAY FROM OUR NEW HEADQUARTERS AND LOGISTICS CENTRE IN SEVENUM.

OUR MISSION. WE ENABLE EVERYONE TO LIVE THE HEALTHIEST LIFE POSSIBLE.

TODAY'S AGENDA.

FINANCIAL PERFORMANCE

UPDATE ON BUSINESS AND STRATEGY Q+A

HIGHLIGHTS 2020.

! ACCELERATED GROWTH – FULLY ORGANIC – DRIVEN BY EXCELLENT EXECUTION.

GROWTH OF 38.0% TO EUR 265M IN Q4 AND OF 38.1% TO EUR 968M FOR THE FULL YEAR.

• ! BREAK-EVEN ACHIEVED: ADJ. EBITDA MARGIN 2.3% IN Q4 AND 2.2% FOR FY 2020. 2020 ADJ. EBITDA AT EUR 21.6M, YOY IMPROVEMENT OF EUR 35.2M.
• ! RECORD NUMBER OF NEW CUSTOMERS. ACTIVE CUSTOMER BASE UP 0.4 M IN Q4 AND UP 1.6M DURING 2020 TO 6.3M CUSTOMERS.
• ! FINANCIAL PROFILE SIGNIFICANTLY STRENGTHEND. POSITIVE OPERATING CASH FLOW (EUR +17.8M AFTER EUR –30.7M IN 2019) AND SUCCESSFUL REPLACEMENT OF CONVERTIBLE BONDS.
• ! FOCUSED STRATEGY EXECUTION.

E-RX, NEW LOGISTICS CENTRE, NOW!, ONLINE DOCTOR SERVICE COOPERATION, OWN BRAND, MEDICATION MANAGEMENT.

KEY FINANCIALS. STRONG GROWTH, FULLY ORGANIC. ACTIVE CUSTOMERS +400,000 IN Q4 AND +1,600,000 FY.

ACTIVE CUSTOMER BASE UP 1.6 MILLION. WITH A BEST-IN-CLASS CUSTOMER SATISFACTION.

KPIs. STRONG WEB TRAFFIC GROWTH. MOST POPULAR PHARMACY WEBSITE IN GERMANY. *

* Source: Traffic rank Similarweb, January 2021 (health category Germany): SHOP-APOTHEKE.COM (#3)

KPIs. SHARE OF REPEAT ORDERS AT TARGETED LEVEL.

KEY FINANCIALS. ADJ. EBITDA FROM EUR –13.6M LAST YEAR TO EUR +21.6M NOW.

in EUR million		YTD Q4			Q3 Full Year
	Q4 2019	Q4 2020	Better/ (Worse)	2019	2020	Better/ (Worse)
Sales	191.9	264.7	38%	701	968.1	38%
Gross profit margin	19.8%	23.6%	3.8 pp	19.7%	22.7%	3.0 pp
Selling & distribution as percentage of sales	-17.7%	-18.4%	(0.7) pp	-18.6%	-17.8%	0.6 pp
Adj. administrative costs as percentage of sales	-3.2%	-3.0%	0.2 pp	-3.0%	-2.7%	0.3 pp
Adj. EBITDA	-1.8	6.1	7.9	-13.6	21.6	35.2
Adj. EBITDA margin	-1.0%	2.3%	3.3 pp	-1.9%	2.2%	4.1 pp
EBITDA	-4.2	3.1	7.3	-18.6	15.2	33.8

Q4			Full Year
	(Worse)	2019	2020	Better/ (Worse)

Adjustments in 2020: EUR 6.4M. Concerned only non-cash employee stock option cost and one-off costs related to projects, mainly new logistics centre.

KEY FINANCIALS. GROSS MARGIN IMPROVED BY 3.0 PERCENTAGE POINTS.

KEY FINANCIALS. EXPENSES IMPROVED BY 0.8 PERCENTAGE POINTS. OPERATIONS WELL-CONTROLLED DURING SURGE IN DEMAND.

KEY FINANCIALS. ADJ. EBITDA UP 35.2M IN ONE YEAR; MARGIN IN Q4 UP 3.3PP.

KEY FINANCIALS. WE ENDED THE YEAR WITH EUR 128M OF CASH, UP EUR 15M.

¹⁶ KEY FINANCIALS. SOLID CASH POSITION FURTHER STRENGHTENED AT THE START OF 2021.

TODAY'S AGENDA.

FINANCIAL PERFORMANCE

UPDATE ON BUSINESS AND STRATEGY Q+A

FROM A PURE ONLINE RETAILER …

… TO A CUSTOMER-CENTRIC E-PHARMACY PLATFORM.

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FOCUSSING ON OUR CUSTOMERS' NEEDS TO INCREASE CUSTOMER LOYALTY AND PROFITABILITY.

KEY STRATEGIC BUSINESS OBJECTIVES FOR 2021.

• ! E-RX.
• ! ESG.
• ! OTHER STRATEGIC INITIATIVES.

ATTAINING E-RX POLE POSITION.

! DEDICATED TEAM OF EXPERTS. TASK FORCE E-RX FIRST ALREADY ESTABLISHED 2019.

! DEEP INHOUSE EXPERTISE.

ALMOST 20 YEARS OF RX EXPERIENCE RX MAIL ORDER AND PATIENT CARE PROGRAMMES.

! ACQUISITION OF MY|THERAPY APP. LEADING MEDICATION MANAGEMENT.

! TECHNOLOGY ALREADY IN USE.

HUNDREDS OF ONLINE PRESCRIPTIONS FILLED EVERY DAY THROUGH OUR CO-OPERATION WITH ONLINE DOCTOR SERVICE ZAVA.

! EXTENSION OF PARTNERSHIPS.

INSURANCES, NOW! PHARMACIES, ONLINE DOCTOR.

READY TO GET STARTED JULY 1 IN GERMANY.

LARGE POTENTIAL FOR OUR BUSINESS. ONLINE PENETRATION OF THE RX MARKET STILL VERY LOW IN GERMANY.

Source: Market Total: Rx: IMS PharmaScope®, selling price base: AVP; OTC: IMS OTC® Report, selling price base: EVP

! CUSTOMER-CENTRICITY.

! CONVENIENCE.

PATIENTS DO NOT HAVE TO LEAVE THEIR HOMES TO ORDER AND RECEIVE THEIR PRESCRIBED MEDICATIONS.

! FLEXIBILITY.

CUSTOMERS HAVE RANGE OF CHOICES ON HOW TO FILL THEIR PRESCRIPTIONS.

! BROADEST ASSORTMENT. ONE-STOP SHOP FOR RX, OTC AND BPC.

! MEDICATION MANAGEMENT.

SMARTPATIENT (MY|THERAPY APP)/SMART PROGRAMMES.

PROVIDE BEST-IN-CLASS EXPERIENCE LEVERAGING OUR 20 YEARS OF EXPERIENCE IN E-COMMERCE, RX MAIL ORDER AND PATIENT CARE.

• ! MUNICH-BASED SPECIALIST FOR DIGITAL MEDICATION MANAGEMENT.
• ! 1.4 MILLION RX PATIENTS ACTIVELY USING SMARTPATIENT'S MY|THERAPY APP TO BETTER MANAGE THEIR MEDICATIONS AND IMPROVE ADHERENCE/PERSISTANCE.
• ! THIS LEADS TO BETTER HEALTH OUTCOMES, THEREBY INCREASING CUSTOMER LOYALTY.

SMARTPATIENT IS THE LEADING EXPERT IN DIGITAL HEALTH SERVICE OFFERINGS.

MEDICATION MANAGEMENT IS KEY TO OUR TRANSFORMATION INTO A CUSTOMER-CENTRIC E-PHARMACY PLATFORM.

MEDICATION MANAGEMENT: CONFIGURABLE EXPERIENCES WITHIN THE SAME APP.

SAME-DAY DELIVERY SERVICE.

INTRODUCING A NEW LEVEL OF AUTOMATION. DOUBLING CAPACITY TO > 35 MILLION PARCELS PER YEAR.

MEETING HIGHER FUTURE DEMAND. OUR NEW LOGISTICS CENTRE IN SEVENUM.

! OCTOBER 21, 2020: SHIPPING OF FIRST PARCELS TO ITALY.

! JANUARY 2021: START OF AUTOMATION. SHIPPING ALL INTERNATIONAL ORDERS FROM SEVENUM.

! SUMMER 2021: COMPLETION OF THE ENTIRE LOGISTICS CENTRE.

PATIENT CARE.

PLANETARY CARE.

EMPLOYEE CARE.

28

IN 2020 AND BEYOND: OUR SUSTAINABILITY STRATEGY.

WE ARE COMMITTED TO DO THE RIGHT THINGS WITH A CLEAR INTERNAL STRUCTURE, TARGETS AND RESPONSIBILITIES. BECAUSE WE CARE.

! UN GLOBAL COMPACT PARTICIPANT, JAN 2020.

! UPGRADED BY MSCI ESC RATING TO TRIPLE B, JUL 2020.

! SHOP APOTHEKE EUROPE CLIMATE NEUTRAL, OCT 2020.

FROM 2019 TO 2020 (1.09KG ! 0.93KG CO2 PER ORDER).

HERZENSWÜNSCHE (FOR SERIOUSLY ILL CHILDREN),

CUSTOMERS CAN CHOOSE INSTEAD OF RX BONUS.

! REDUCING CO2: BETTER BY 15% PER ORDER/PARCEL

! DONATIONS TO CHARITY ORGANIZATION

PEOPLE AND PLANET.

! JOINED LEADERS FOR CLIMATE ACTION WELL BELOW 2°, MAR 2020.

! INTERNAL PROGRAMMES ROLLED-OUT ON HEALTHY CUSTOMERS,

! ANNUAL REPORT 2020 ACCORDING TO GRI REPORTING STANDARDS.

CREATING A SUSTAINABLE FUTURE.

WHAT WE ACHIEVED IN 2020.

GUIDANCE 2021. CONTINUED FAST GROWTH AND MARGIN IMPROVEMENTS.

TODAY'S AGENDA.

FINANCIAL PERFORMANCE

UPDATE ON BUSINESS AND STRATEGY Q+A

CONSOLIDATED SEGMENT FINANCIALS. financing expenses are predominantly related to interest and incentive payments for the convertible bonds issued in April 2018 and April 2019 (EUR 9.1 million) and fees of prescription drugs, OTC pharmaceutical products, functional foods and mostly pharmacy≠ exclusive beauty and healthcare products in Germany, Austria and Switzer≠ segment ebitda margin improved. During the 2020 reporting period, DACH segment sales

For the year ended 31 December 2020

Segment information ñ n on adjusted and adjusted

2020	DACH	International	Total
	EUR 1,000	EUR 1,000	EUR 1,000
Revenue	815.400	152.662	968.062
Cost of sales	ñ 635.757	ñ 112.778	ñ 748.535
Adjusted cost of sales	ñ 635.757	ñ 112.778	ñ 748.535
Gross profit	179.643	39.884	219.527
Adjusted gross profit	179.643	39.884	219.527
% of revenue	22,0 %	26,1 %	22,7 %
Other income	55	10	65
Adjusted other income	55	10	65
Selling & distribution	ñ 130.299	ñ 41.642	ñ 171.941
Adjusted S&D	ñ 130.299	ñ 41.642	ñ 171.941
Segment EBITDA	49.399	ñ 1.748	47.651
Adjusted segment EBITDA	49.399	ñ 1.748	47.651
Administrative expenses	ñ 20.622	ñ 11.832	ñ 32.454
Adjusted AE	ñ 15.268	ñ 10.763	ñ 26.031
EBITDA	28.777	ñ 13.580	15.197
Adjusted EBITDA	34.131	ñ 12.511	21.620
Depreciation	ñ 10.208	ñ 5.856	ñ 16.064
Adjusted depreciation	ñ 10.208	ñ 5.856	ñ 16.064
EBIT	18.569	ñ 19.436	ñ 867
Adjusted EBIT	23.923	ñ 18.367	5.556
Net finance cost and income tax			ñ 15.904
Net loss			ñ 16.771
Adjusted net loss			ñ 10.348

Segment information ñ n on adjusted and adjusted

2019	DACH	International	Total
	EUR 1,000	EUR 1,000	EUR 1,000
Revenue	615,424	85,587	701,011
Cost of sales	ñ 499,112	ñ 64,217	ñ 563,329
Adjusted cost of sales	ñ 499,112	ñ 63,997	ñ 563,109
Gross profit	116,312	21,370	137,682
gross profit Adjusted	116,312	21,590	137,902
% of revenue	18.9 %	25.0 %	19.6 %
Other income	647	89	736
Adjusted other income	64	89	154
Selling & distribution	ñ 103,247	ñ 27,511	ñ 130,758
Adjusted S&D	ñ 103,025	ñ 27,511	ñ 130,536
Segment EBITDA	13,711	ñ 6,052	7,659
Adjusted segment EBITDA	13,350	ñ 5,832	7,519
Administrative expenses	ñ 17.142	ñ 9.099	ñ 26,241
Adjusted AE	ñ 13.778	ñ 7.313	ñ 21,091
EBITDA	ñ 3.431	ñ 15.151	ñ 18,582
Adjusted EBITDA	ñ 428	ñ 13.145	ñ 13,572
Depreciation	ñ 9.710	ñ 5.154	ñ 14,864
Adjusted depreciation	ñ 9.531	ñ 4.916	ñ 14,607
EBIT	ñ 13.141	ñ 20.305	ñ 33,445
Adjusted EBIT	ñ 9.959	ñ 18.062	ñ 28,179
Net finance cost and income tax			ñ 2,824
Net loss			ñ 36,270
Adjusted net loss			ñ 31,003

CONSOLIDATED STATEMENT OF PROFIT AND LOSS.

For the year ended 31 December 2020

	Notes	Period ended 31.12.2020	Period ended 31.12.2019
		EUR 1,000	EUR 1,000
Revenue	5	968,062	701,010
Cost of sales		748,534	563,329
Gross profit		219,528	137,682
Other income	6	65	736
Selling and distribution	7	185,596	143,392
Administrative expenses	8	34,863	28,470
Operating result		ñ866	ñ33,445
Finance income	10	93	1,333
Finance expenses	10	15,204	10,171
Share of profit of associates and joint ventures	16	45	104
Result before tax		ñ15,932	42,180
Income tax	11	839	5,910
Result after tax		ñ16,771	ñ36,270
Attributable to:
Owners of the company		16,771	36,270
Earnings per share	12	EUR	EUR
Basic and diluted per share 31 December		1.17	2.78

CONSOLIDATED STATEMENT OF FINANCIAL POSITION. OF FINANCIAL POSITION. Current assets OF FINANCIAL POSITION.

For the year ended 31 December 2020

	31.12.2020	31.12.2019
	EUR 1,000	EUR 1,000
Assets
Non≠ current assets
Property, plant and equipment	74,545	13,178
Intangible assets	204,661	199,850
Deferred tax assets	120	120
Other financial assets	1,730	2,500
Investments in equity≠ accounted joint ventures	1,151	1,105
Investments in associates	605	402
Investments in equity≠ instruments	10	10
	282,822	217,165
Current assets
Inventories	81,240	56,688
Trade and other receivables	44,591	40,894
Other financial assets	37,771	50,581
Cash and cash equivalents	90,485	62,653
	254,087	210,815
Total assets	536,909	427,980

Total assets	31.12.2020 536,909	31.12.2019 427,980
	EUR 1,000	EUR 1,000
Assets Equity and liabilities
Shareholdersí equity Non≠ current assets
Property, plant and equipment Issued capital and share premium	74,545 552,019	13,178 341,192
Reserves/accumulated losses Intangible assets	ñ 126,881 204,661	ñ 108,429 199,850
Deferred tax assets	425,138 120	232,763 120
Other financial assets Non≠ current liabilities	1,730	2,500
Investments in equity≠ accounted joint ventures Loans and Borrowings	1,151 32,810	1,105 131,512
Investments in associates Deferred tax liability	605 4,347	402 3,904
Investments in equity≠ instruments	37,157 10	135,417 10
Current liabilities	282,822	217,165
Current assets Trade and other payables	53,147	32,004
Inventories Loans and Borrowings	81,240 5,384	56,688 7,522
Trade and other receivables Amounts due to banks	44,591 39	40,894 10,167
Other financial assets Other liabilities	37,771 16,044	50,581 10,108
Cash and cash equivalents	90,485 74,614	62,653 59,801
Total equity and liabilities	254,087 536,909	210,815 427,980

CONSOLIDATED STATEMENT OF CASH FLOWS. OF CASH FLOWS.

For the year ended 31 December 2020

	Period ended 31.12.2020	Period ended 31.12. 2019		Period ended 31.12.2020	Period ended 31.12.2019
	EUR 1,000	EUR 1,000		EUR 1,000	EUR 1,000
Cash flow from operating activities			Cash flow from financing activities
Result before tax from operations	ñ 866	ñ 33,445	Interest received	93	1,333
Adjustments for:			Interest paid	ñ 7,241	ñ 7,402
ñ Depreciation and amortisation of non≠ current assets	16,064	14,864	Interest paid convertible bond	ñ 5,776	0
ñ C orporate income tax	ñ329	4	Payment of earn≠ out obligations Farmaline	0	ñ 1,100
ñ Net foreign exchange differences	ñ234	ñ 29	Capital increase	63,381	49,148
ñ S hare≠ based payment charge for the period	4,405	2,967	Capital increase exercised options	12,357	0
Operating result adjusted for depreciation			Issue convertible bond	0	58,592
and amortisation, taxes and provisions	19,040	ñ15,639	Movement other long≠ term liability	ñ37	3,965
			Movement in bank overdraft	ñ10,128	362*
Movements in working capital			Cash≠ out lease payments	ñ2,362	ñ2,456
ñ (Increase)/decrease in trade and other receivables	ñ 3,697	ñ 7,314
ñ (Increase)/decrease in inventory	ñ24,552	ñ13,339	Net cash (used in)/generated by financing activities	50,286	102,442*
ñ (Increase)/decrease in trade and other payables	27,012	5,564*
Working capital movement	ñ1,237	ñ15,089*	Net increase/(decrease) in cash and cash equivalents	27,832	38,314
Net cash (used in)/generated by operating activities	17,802	ñ 30,728*	Cash and cash equivalents at the beginning of the period	62,653	24,338
Cash flow from investing activities			Net foreign exchange difference	0	0
Investment for property, plant and equipment	ñ 38,235	ñ 4,003
Investment for intangible assets	ñ 15,100	ñ10,739	Cash and cash equivalents at the end	90,485	62,653
Investment for other financial assets	13,078	ñ18,658
Net cash (used in)/generated by investing activities	ñ 40,257	ñ 33,400

* The comparative figures of the cash flow statement for financial year 2019 have been adjusted. Last year's numbers showed the movement in bank overdraft of EUR 362 thousand as part of the movements in working capital. According to IAS 7.8 the bank overdraft position is an integral part of the financing activities of the company and as such presented in cash flow from financing activities. The figures 2019 and 2020 have been presented accordingly.

THANK YOU.