Redcare Pharmacy N.V.

Investor Presentation • Mar 16, 2020

FY 2019 EARNINGS CALL. PRESENTATION.

SHOP APOTHEKE EUROPE STEFAN FELTENS, CEO JASPER EENHORST, CFO

17 MARCH 2020

TODAY'S PRESENTERS.

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

TODAY'S AGENDA.

UPDATE ON BUSINESS AND STRATEGY Q+A

UPDATE ON CORONA SITUATION.

HIGHLIGHTS. FY 2019.

Delivered on our ambitious top line guidance: Consolidated revenues up + 30% to EUR 701 million (28% organic growth).

EBITDA margin better than our guidance and last year, driven by better gross profit margins: Adj. EBITDA margin –1.9% (guidance –2.0 to –2.3%), in Q4 –1.0% (Q4/18: –3.0%).

Cash position: EUR 113.2 million as of Dec 31, 2019 after EUR 58.8 as of Dec 31, 2018 (including short-term securities).

Brand and tech platform integration successfully completed, Rx sales up 12%: The Europa Apotheek customers migrated to shop-apotheke.com.

New distribution centre – on track: Target-capacity more than doubled to 35 million parcels per year.

SHOP APOTHEKE EUROPE BECAME A UN GLOBAL COMPACT SIGNATORY. STEPS TAKEN.

10 PRINCIPLES ON HUMAN RIGHTS, LABOUR, ENVIRONMENT AND ANTI-CORRUPTION.

KEY FINANCIALS. IMPRESSIVE ORGANIC TOPLINE GROWTH. 4.7 MILLION ACTIVE CUSTOMERS.

OUR CUSTOMERS ARE HIGHLY ENGAGED.

5

~

PRODUCTS

SUCCESSFUL LOYALTY PROGRAM WITH HIGHLY ENGAGED CUSTOMERS AND HIGHER BASKETS.

^~ 70

ON AVERAGE PER ORDER WITH EUR 66.85 SHOPPING BASKET (2018: EUR 72.44).

OF ALL ORDERS ARE FROM EXISTING CUSTOMERS. 81%

8

VIRTUALLY NO RETURNS.

<1%

~

KPIs. STRONG WEB TRAFFIC GROWTH YEAR OVER YEAR.

KPIs. SHARE OF REPEAT ORDERS ABOVE 80%.

¹¹ KEY FINANCIALS. ADJUSTED EBITDA MARGIN UP, DRIVEN BY GROSS MARGIN IMPROVEMENT.

(in millions of euros)	YTD Full Year		Q3 Quarter 4
	2018	2019	Better/ (Worse)	2018	2019	Better/ (Worse)
Sales	540	701	30%	151	192	27%
Gross profit margin	18.4%	19.7%	1.3 pp	18.2%	19.9%	1.7 pp
Selling & distribution as percentage of sales	-17.2%	-18.6%	(1.4) pp	-17.0%	-17.7%	(0.7) pp
Administrative costs as percentage of sales	-3.4%	-3.0%	0.4 pp	-4.3%	-3.2%	1.1 pp
Adj. EBITDA	-11.8	-13.6	(15%)	-4.5	-1.8	60%
Adj. EBITDA margin	-2.2%	-1.9%	0.3 pp	-3.0%	-1.0%	2.0 pp
EBITDA	-15.6	-18.6	(19%)	-5.4	-4.2	22%

2018	2019	Better/ (Worse)

EBITDA adjustments in Q4 2019 include €1.4M related to external consulting spend related to project Venlo 2020

KEY FINANCIALS. GROSS MARGIN UP, DRIVEN BY IMPROVED PURCHASING CONDITIONS.

KEY FINANCIALS. HIGHER S&D COSTS; PURPOSEFUL INVESTMENTS IN SMART MARKETING TO DRIVE STRONG ORGANIC GROWTH.

KEY FINANCIALS. ADJUSTED SEGMENT EBITDA.

KEY FINANCIALS. ADJUSTED EBITDA MARGIN UP VS. FIRST HALF OF 2019 AND LAST YEAR.

TODAY'S AGENDA.

FINANCIAL PERFORMANCE UPDATE ON BUSINESS AND STRATEGY Q+A

AT A GLANCE. SHOP APOTHEKE EUROPE TODAY.

COMBINING OTC, BPC, FUNCTIONAL FOOD & RX OFFERINGS.

SPECIAL PATIENT CARE PROGRAMMES.

PREPARED FOR E-SCRIPTS.

7 COUNTRIES.

4.7 MILLION ACTIVE CUSTOMERS.

701 M € REVENUE 2019.

FROM A PURE E-PHARMACY RETAILER …

… TO A CUSTOMER CENTRIC E-PHARMACY PLATFORM.

18

CUSTOMER-CENTRIC SERVICES. WHAT'S NEXT?

NEW IN 2020: MARKETPLACE.

NEW IN 2020: ONLINE DOCTOR SERVICE.

EXPANSION IN 2020: OWN BRANDS.

ROLLOUT IN 2020: SAME-DAY DELIVERY.

DRIVEN BY THE LAUNCH OF E-SCRIPTS.

E-SCRIPT PREPARATIONS WITH A CLEAR FOCUS ON PATIENTS AND THEIR NEEDS.

VENLO 2020: MORE THAN DOUBLE THE SPACE FOR LOGISTICS.

MUCH HIGHER DEGREE OF AUTOMATION.

TOMORROW. 40,000 sqm plus 8,000 sqm on second level.

LOOKING FORWARD. WE RE-ITERATE OUR FY 2020 AND LONG-TERM GUIDANCE.

TODAY'S AGENDA.

FINANCIAL PERFORMANCE UPDATE ON BUSINESS AND STRATEGY Q+A

CONSOLIDATED SEGMENT FINANCIALS.

2019	DACH	International	Total
	EUR 1,000	EUR 1,000	EUR 1,000
Revenue	615,424	85,587	701,010
Cost of sales	-499,112	-64,217	-563,329
Adjusted cost of sales	-499,112	-63,997	-563,109
Gross profit	116,311	21,370	137,682
Adjusted gross profit	116,311	21,590	137,902
% of revenue	18.9%	25.2%	19.7%
Other income	647	89	736
Adjusted other income	64	89	153
Selling & distribution	- 103,247	-27,511	-130,758
Adjusted S&D	-103,025	-27,511	- 130,536
Segment EBITDA	13,711	-6,052	7,659
Adjusted segment EBITDA	13,350	-5,832	7,519
Administrative expenses			-26,241
Adjusted AE			-21,091
EBITDA			-18,582
Adjusted EBITDA			-13,572
Depreciation			-14,864
Adjusted depreciation			-14,607
EBIT			-33,445
Adjusted EBIT			-28,179
Net finance cost and income tax			-2,824
Net loss			-36,270
A 1 .			01 000

2018	DACH	International	Total
	EUR 1,000	EUR 1,000	EUR 1,000
Revenue	491,078	48,632	539,710
Cost of sales	-403,328	-37,064	-440,392
Gross profit	87,750	11,568	99,318
% of revenue	17.9%	23.8%	18.4%
Other income	156	40	196
Selling & distribution	-78,082	-16,287	-94,369
Adjusted S&D	-76,605	-16,132	-92,736
Segment EBITDA	9,825	-4,680	5,145
Adjusted segment EBITDA	11,301	-4,524	6,777
Administrative expenses			-20,704
Adjusted AE			-18,530
EBITDA			- 15,559
Adjusted EBITDA			-11,753
Depreciation			- 13,171
EBIT			-28,730
Adjusted EBIT			-24,924
Net finance cost and income tax			-4,879
Net loss			-33,609
Adiustad not loca			20 803

CONSOLIDATED STATEMENT OF PROFIT AND LOSS.

For the year ended 31 December 2019.

	Notes	Period ended 31.12.2019	Period ended 31.12.2018
		EUR 1,000	EUR 1,000
Revenue	5	701,010	539,710
Cost of sales		-563,329	-440,392
Gross profit		137,682	99,318
Other income	6	736	196
Selling and distribution	7	-143,392	-105,564
Administrative expenses	8	-28,470	-22,679
Operating result		-33,445	-28,730
Finance income	10	1,333	24
Finance expenses	10	- 10,171	-5,983
Share of profit of associates and joint ventures	16	104	97
Result before tax		-42,180	-34,591
ncome tax	11	5,910	982
Result after tax		-36,270	-33,609
Attributable to:
Owners of the company		-36,270	-33,609

CONSOLIDATED STATEMENT OF FINANCIAL POSITION.

For the year ended 31 December 2019.

	Notes	31.12.2019	31.12.2018
		EUR 1,000	EUR 1,000
Assets
Non-current assets
Property, plant and equipment	13	13,178	11,924
Intangible assets	14	199,850	199,892
Deferred tax assets	11	120	973
Other financial assets	19	2,500	0
Investments in equity-accounted joint ventures	16	1,105	1,002
Investments in associates		402	400
Investments in equity-instruments		10	10
		217,165	214,201
Current assets
nventories	17	56,688	43,349
Trade and other receivables	18	40,894	33,580
Other financial assets	19	50,581	34,422
Cash and cash equivalents	20	62,653	24,338
		210,815	135,689
Total assets		427,980	349,890

	Notes	31.12.2019	31.12.2018
		EUR 1,000	EUR 1,000
Equity and liabilities
Shareholders' equity	21
Issued capital and share premium		341,192	292,045
Reserves/accumulated losses		-108,429	-78,069
		232,763	213,976
Non-current liabilities
Loans and Borrowings	22	131,512	72,411
Deferred tax liability	11	3,904	10,841
		135,417	83,252
Current liabilities
Trade and other payables	23	32,004	28,436
Loans and Borrowings	23	7,522	6,488
Amounts due to banks	24	10,167	9,805
Other liabilities	23	10,108	7,933
		59,801	52,662
Total equity and liabilities		427,980	349,890

CONSOLIDATED STATEMENT OF CASH FLOWS.

For the year ended 31 December 2019.

	Notes	Period ended 31.12.2019	Period ended 31.12.2018
		EUR 1,000	EUR 1,000
Cash flow from operating activities
Operating result		-33,445	-28,730
Adjustments for: - Depreciation and amortisation of non-current assets	9	14,864	13,170
- Corporate income tax		4	0
- Net foreign exchange differences	10	-28	-794
- Movements in provisions		0	0
- Share-based payment charge for the period	27	2,967	1,450
Operating result adjusted for depreciation and amortisation, taxes and provisions		-15,639	- 14,904
Movements in working capital
- (Increase)/decrease in trade and other receivables	18	-7,314	-5,174
- (Increase)/decrease in inventory	17	-13,339	128
- (Increase)/decrease in trade and other payables	23	5,926	5,425
Working capital movement		-14,727	379
Net cash (used in)/generated by operating activities		-30,366	-14,525
Cash flow from investing activities
Investment for property, plant and equipment	13	-4,003	-2,804
Investment for intangible assets	14	-10,739	-9,051
Investment for other financial assets	19	-18,658	-21,913
Investment associates		0	-400
Investment equity instruments		0	- 10
Acquisition of subsidiary, net of cash acquired	29	0	-4,379
Net cash (used in)/generated by investing activities		-33,400	-38,557

		Period ended	Period ended
	Notes	31.12.2019	31.12.2018
		EUR 1,000	EUR 1,000
Cash flow from financing activities	24
Interest received	10	1,333	324
Interest paid	10	-7,402	-4,002
Payment of earn-out obligations Farmaline	23	- 1,100	- 1,100
Capital increase		49,148	0
Issue convertible bond	22	58,592	73,499
Issue other long-term liability		3,965	0
Cash-out lease payments	30	-2,456	-2,221
Net cash (used in)/generated by financing activities		102,080	66,500
Net increase/(decrease) in cash and cash equivalents		38,314	13,418
Cash and cash equivalents at the beginning of the period	20	24,338	10,920
Net foreign exchange difference		0	0
	20
Cash and cash equivalents at the end		62,653	24,338