Redcare Pharmacy N.V.

Investor Presentation • Nov 4, 2020

Q3 2020 EARNINGS CALL. PRESENTATION.

SHOP APOTHEKE EUROPE STEFAN FELTENS, CEO JASPER EENHORST, CFO

05 NOV 2020

TODAY'S PRESENTERS.

STEFAN FELTENS CEO SHOP APOTHEKE EUROPE JASPER EENHORST CFO SHOP APOTHEKE EUROPE

PRESENTING TODAY FROM OUR NEW HEADQUARTERS IN SEVENUM.

TODAY'S AGENDA.

UPDATE ON BUSINESS AND STRATEGY Q+A

HIGHLIGHTS. Q3 2020.

Accelerated growth – fully organic – driven by excellent execution. Growth of 39.7% to EUR 238.7M in Q3 and of 38.1% to EUR 703.3M YTD.

Record number of new customers. Active customer base up 400,000 in Q3 and 1.4M YOY to 5.9M customers.

Adj. EBITDA margin 1.8% in Q3 and 2.2% YTD. 9M adj. EBITDA at EUR 15.5M, YOY improvement of EUR 27.2M; operating cash flow EUR +10.9M.

Successful early conversion/redemption of the EUR 135M 4.5% convertible bonds initiated in Q3. Substantial improvement of SAE's equity ratio and significant lower financing costs.

Focus strategic initiatives. Venlo 2020, e-Rx, SHOP APOTHEKE NOW!, portfolio expansion.

KEY FINANCIALS. IMPRESSIVE FULLY ORGANIC TOPLINE GROWTH. ACTIVE CUSTOMERS +400,000 in Q3, +1,400,000 YOY.

EXPANSION OF ACTIVE CUSTOMER BASE. PLUS 400,000 IN Q3 (RX & OTC).

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

* Source: Traffic rank Similarweb, July 2020 (health category wordwide): SHOP APOTHEKE.COM (#55); MEDPEX (#102); DOCMORRIS (#144).

KPIs. SHARE OF REPEAT ORDERS REMAINS HIGH DESPITE LARGE NUMBERS OF NEW CUSTOMERS.

KEY FINANCIALS. ADJ. EBITDA FROM EUR —11.7M LAST YEAR TO +15.5M NOW.

(in EUR million)	YTD Q3 last year and this year		Q3 9M last year and this year
	Q3 2019	Q3 2020	Better/ (Worse)	9M 2019	9M 2020	Better/ (Worse)
Sales	170.9	238.7	40%	509.2	703.3	38%
Gross profit margin	18.9%	21.9%	3.0 pp	19.6%	22.3%	2.7 pp
Selling & distribution as percentage of sales	-17.4%	-17.6%	(0.2) pp	-19.0%	-17.5%	1.5 pp
Administrative costs (adj.) as percentage of sales	-3.0%	-2.6%	0.4 pp	-2.9%	-2.6%	0.3 pp
Adj. EBITDA	-2.1	4.2	6.3	-11.7	15.5	27.2
Adj. EBITDA margin	-1.2%	1.8%	3.0 pp	-2.3%	2.2%	4.5 pp
EBITDA	-3.3	2.8	6.1	-14.4	12.1	26.5

9M 2019	9M 2020	Better/ (Worse)

Adjustments in 9M 2020 of EUR 3.4M are mainly related to the non-cash employee stock option programme.

KEY FINANCIALS. GROSS MARGIN UP 3.0 PP VS. LAST YEAR.

KEY FINANCIALS. MARKETING EXPENSES UP, REFLECTING GROWTH INVESTMENTS. OPERATIONAL COSTS WELL CONTROLLED.

KEY FINANCIALS. EBITDA UP EUR 27.2 M YEAR OVER YEAR.

KEY FINANCIALS. CASH BALANCES UP DUE TO A POSITIVE CASH FLOW IN Q3.

TODAY'S AGENDA.

FINANCIAL PERFORMANCE UPDATE ON BUSINESS AND STRATEGY Q+A

FROM A PURE E-PHARMACY RETAILER …

… TO A CUSTOMER-CENTRIC E-PHARMACY PLATFORM.

16

17

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

VENLO 2020: NEW LOGISTICS CENTRE TO MEET THE HIGHER FUTURE DEMAND EXPECTED DUE TO E-SCRIPT.

100,000 A DAY. INTRODUCING A NEW LEVEL OF AUTOMATION. CAPACITY OF > 35 MILLION PARCELS PER YEAR.

VENLO 2020:

AMPLE CAPACITY FOR OUR AMBITIOUS GROWTH PLANS.

NEW LOGISTICS CENTRE FULLY ON SCHEDULE. A SEAMLESS MOVE TO GUARANTEE OPTIMAL OPERATIONS.

• OCTOBER 21, 2020: SHIPPING OF FIRST PARCELS TO ITALY.
• JANUARY 2021: INTRODUCTION OF A SIGNIFICANTLY HIGHER LEVEL OF AUTOMATION.
• Q2 2021: COMPLETION OF THE ENTIRE LOGISTICS CENTRE.

VENLO 2020 INSPIRING OPEN SPACE ENVIRONMENT FOR OUR EMPLOYEES.

VENLO 2020. CREATING A SUSTAINABLE BUILDING.

FOCUS ON SUSTAINABILITY.

REDUCING OUR ENVIRONMENTAL FOOTPRINT.

"VERY GOOD" ACCORDING TO THE DUTCH BREEAM CERTIFICATION STANDARDS.

CUSTOMER-CENTRIC SERVICES KEY STRATEGIC INITIATIVES.

OWN BRANDS.

EXTENSION OF REDCARE PRODUCTS.

MARKETPLACE.

• SHOP APOTHEKE NOW!
• PORTFOLIO EXPANSION.

ONLINE DOCTOR SERVICE.

CO-OPERATION WITH ZAVA IN GERMANY.

E-SCRIPT. INTERNAL PREPARATONS FULLY ON TRACK.

E-RX FIRST: ALREADY PREPARED TO GET STARTED.

DEDICATED TEAM OF EXPERTS.

TASK FORCE "E-RX FIRST" ESTABLISED 2019.

DEEP INHOUSE EXPERTISE.

ALMOST 20 YEARS OF RX EXPERIENCE (EUROPA APOTHEEK / SMART).

TECHNOLOGY ALREADY IN USE

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

EXTENSION OF PARTNERSHIPS.

JOINED TK PILOT.

LOOKING FORWARD. 2020 SALES AND EBITDA GUIDANCE RAISED AGAIN.

TODAY'S AGENDA.

FINANCIAL PERFORMANCE UPDATE ON BUSINESS AND STRATEGY Q+A

27

NOW IT'S TIME FOR Q&A.

CONSOLIDATED SEGMENT FINANCIALS.

30.9.2020	DACH	International	Unaudited interim consolidated
	EUR 1,000	EUR 1,000	EUR 1,000
Revenue	591,696	111,649	703,345
Cost of sales	$-463.027$	$-83,457$	$-546,484$
Gross profit	128,669	28,192	156,861
% of revenue	21.7%	25.3%	22.3%
Other income	12	$\overline{2}$	14
Selling & distribution	$-92.824$	$-30,407$	$-123,231$
Adjusted S&D	$-92,824$	$-30,407$	$-123,231$
Segment EBITDA	35,857	$-2,213$	33,644
Adjusted segment EBITDA	35,857	$-2,213$	33,644
Administrative expenses	$-13,700$	$-7,877$	$-21,577$
Adjusted AE	$-10,794$	$-7,357$	$-18,151$
EBITDA	22,157	$-10,090$	12,067
Adjusted EBITDA	25,063	$-9,570$	15,493
Depreciation	$-6,904$	$-3,970$	$-10,874$
EBIT	15,253	$-14,060$	1,193
Adjusted EBIT	18,159	$-13,540$	4,619
Net finance cost and income tax			$-10,651$
Net Result			$-9,458$
Adjusted net Result			$-6,032$

30.9.2019	DACH	International	Unaudited interir consolidate
	EUR 1,000	EUR 1,000	EUR 1,00
Revenue	447,935	61,219	509,15
Cost of sales	$-363,559$	$-45,935$	$-409,49$
Gross profit	84,376	15,284	99,66
% of revenue	18.8%	25.0%	19.69
Other income	77	10	8
Selling & distribution	$-76,714$	$-20,013$	$-96,72$
Adjusted S&D	$-76,477$	$-20,013$	$-96,49$
Segment EBITDA	7,739	$-4,719$	3,02
Adjusted Segment EBITDA	7,976	$-4,719$	3,25
Administrative expenses	$-11,364$	$-6,007$	$-17,37$
Adjusted AE	$-9,806$	$-5,183$	$-14,98$
EBITDA	$-3,625$	$-10,726$	$-14,35$
Adjusted EBITDA	$-1,830$	$-9,902$	$-11,73$
Depreciation	$-7,187$	$-3,799$	$-10,98$
EBIT	$-10,812$	$-14,525$	$-25,33$
Adjusted EBIT	$-9,017$	$-13,701$	$-22,71$
Net finance cost and income tax			$-5,07$
Net Result			$-30,40$
Adjusted net Result			$-27,79$

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS.

	Period ended 30.9.2020	Period ended 30.9.2019
	EUR 1,000	EUR 1,000
Revenue	703,345	509,154
Cost of sales	$-546,483$	$-409,494$
Gross profit	156,862	99,660
Other income	14	87
Selling and distribution	$-132,474$	$-106,065$
Administrative expenses	$-23,208$	$-19,019$
Result from operations	1,194	$-25,337$
Finance income	190	261
Finance expenses	$-11,306$	$-6,317$
Net finance costs	$-11,116$	$-6,056$
Result before tax	$-9,922$	$-31,392$
Income tax	464	984
Result after tax	$-9,458$	$-30,408$
Attributable to:
Owners of the company	$-9,458$	$-30,408$

UNAUDITED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION.

	30.9.2020	31.12.2019
	EUR 1,000	EUR 1,000
Assets
Non-current assets
Property, plant and equipment	58,792	13,178
Intangible assets	206,561	199,850
Deferred tax assets	120	120
Other financial assets	1,682	2,500
Investments in equity-accounted joint ventures	1,105	1,105
Investments in associates	402	402
Investments in equity-instruments	10	10
	268,673	217,165
Current assets
Inventories	72,982	56,688
Trade and other receivables	51,638	40,894
Other financial assets	39,852	50,581
Cash and cash equivalents	116,728	62,653
	281,200	210,816
Total assets	549,872	427,981

	30.9.2020	31.12.2019
	EUR 1,000	EUR 1,000
Equity and liabilities
Shareholders' equity
Issued capital and share premium	414,611	341,192
Reserves/accumulated losses	$-114,006$	$-108,429$
	300,604	232,763
Non-current liabilities
Deferred tax liability	3,415	3,905
Loans and Borrowings	160,300	131,512
	163,715	135,417
Current liabilities
Trade and other payables	57,159	32,004
Loans and Borrowings	9,887	7,522
Amounts due to banks	37	10,167
Other liabilities	18,471	10,108
	85,553	59,801
Total equity and liabilities	549,872	427,981

UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS.

	Period ended 30.9.2020	Period ended 30.9.2019
	EUR 1,000	EUR 1,000
Cash flow from operating activities
Result from operations	1,194	$-18,304$
Adjustments for:
- Depreciation and amortisation of non-current assets	11,002	7,254
- Corporate income tax	226	$-5$
- Share-based payment charge for the period	2,395	1,303
Operating result adjusted for depreciation
and amortisation, taxes and provisions	14,817	$-9,751$
Movements in working capital
- (Increase)/decrease in trade and other receivables	$-10,744$	$-4,008$
- (Increase)/decrease in inventory	$-16,294$	579
- (Increase)/decrease in trade and other payables	23,134	17,550
Working capital movement	$-3,904$	14,120
Net cash (used in)/generated by operating activities	10,913	4,369
Cash flow from investing activities
Investment for property, plant and equipment	$-19,558$	$-1,154$
Investment for intangible assets	$-13,978$	$-7,017$
Investment for other financial assets	10,626	$-15,588$
Acquisition of subsidiary, net of cash acquired	0	$\Omega$
Net cash (used in)/generated by investing activities	$-22,910$	$-23,759$

	Period ended 30.9.2020	Period ended 30.9.2019
	EUR 1,000
		EUR 1,000
Cash flow from financing activities
Interest received	190	78
Interest paid	$-6,423$	$-2,480$
Payment of earn-out obligations Farmaline	$\overline{0}$	$-1,100$
Capital increase	63,381	49,147
Capital increase exercised ESOP	11,508	$\Omega$
Issue convertible bond	$\overline{0}$	58,592
Issue other long-term liability	$-27$	$-18$
Cash-out lease payments	$-2,558$	$-1,047$
Net cash (used in)/generated by financing activities	66,071	103,172
Net increase/(decrease) in cash and cash equivalents	54,075	83,781
Cash and cash equivalents at the beginning of the period	62,653	24,338
Cash and cash equivalents at the end of the period	116,728	108,119