Redcare Pharmacy N.V.

Investor Presentation • Nov 13, 2019

9-MONTHS 2019 EARNINGS CALL. PRESENTATION.

STEFAN FELTENS, CEO VENLO, 14 NOVEMBER 2019

TODAY'S. PRESENTER.

Stefan Feltens CEO SHOP APOTHEKE EUROPE

TODAY'S AGENDA.

FINANCIAL PERFORMANCE

UPDATE ON BUSINESS AND STRATEGY Q+A

HIGHLIGHTS. 9-MONTHS 2019.

Strong growth momentum continues: Consolidated revenues up +31% to EUR 509.2 million (28% organic growth).

Gross profit outpaced sales growth: +1.1% to 19.6%.

Strong cash position: EUR 148.9 million as of Sep 30, 2019.

Brand integration successfully completed: The Europa Apotheek customers migrated to shop-apotheke.com.

New distribution centre: Increase of shipping capacity to 35 million parcels per year.

KEY FINANCIALS. IMPRESSIVE ORGANIC TOPLINE GROWTH.

KPIs. OUR CUSTOMERS ARE HIGHLY ENGAGED.

KPIs. CONTINUOUSLY GROWING WEB TRAFFIC YEAR-BY-YEAR.

!&'\$)

(&#!(

!&\$#\$ !&%%'

)+,+ )),%

80 %

81 %

!" !# !\$ !% !" !# !\$ !% !" !# !\$ !%

)*," )%,) +(,' +!,)

82 % 81 % 81 % 81 % 78 %

!&"+) #&%+# !&#(+

+*,"

#&'#% #&()* #&(\$\$ #&**!

75 % 76 %

*!," *(,( *',!

71 %

+",(

82 %

!"#\$ !"#%

KPIs. CONTINUOUSLY GETTING REPEAT ORDERS. 49 % 51 % 53 % 52 % 56 % 55 % 55 % 66 % 66 % 67 % 67 %

!#,% !",%

#\$,) #+,% #\$," #+,#

!" !# !\$ !% !" !# !\$ !% !" !# !\$ !%

!',"

!),(

(!,*

!%,*

!%,(

KEY FINANCIALS. CONTINUOUS ORGANIC GROWTH.

(in EUR million)	YTD YTD		Q3 Q3
	2018	2019	Delta*	2018	2019	Delta*
Revenues	388.5	509.2	31%	131.3	170.9	30%
Gross profit	71.8	99.7	39%	25.4	32.3	27%
Selling & distribution costs	– 68.6	– 96.7	(41%)	– 22.8	– 29.7	(30%)
Segment EBITDA	3.2	3.0	(6%)	2.6	2.7	6%
Administrative costs	– 13.4	– 17.3	(30%)	– 5.3	– 6.0	(13%)
EBITDA	– 10.2	– 14.4	(41%)	– 2.7	– 3.3	(20%)
EBITDA adjusted	– 7.2	– 11.7	(62%)	– 0.2	– 2.1	(99%)
% of Revenues	– 1.9	– 2.3		– 0.2	– 1.2

O3
2018	2019	Delta*
131.3	170.9	30%
25.4	32.3	27%
- 22.8	- 29.7	(30%)
2.6	2.7	6%
- 5.3	- 6.0	(13%)
- 2.7	- 3.3	(20%)
- 0.2	- 2.1	(99%)
- 0.2	- 1.2

* Favorable variances without parentheses; unfavorable variances with parentheses.

KEY FINANCIALS. SEGMENT EBITDA.

KEY FINANCIALS. Q2 & Q3 WITH MAJOR IMPROVEMENTS ON OUR WAY TO EBITDA BREAK-EVEN.

KEY FINANCIALS. STRONG CASH POSITION TO LEVERAGE THE E-SCRIPTS OPPORTUNITY.

Additional EUR 110 million to fund growth.

• ! E-script opportunity,
• ! Online penetration increase,
• ! New business models.

TODAY'S AGENDA.

FINANCIAL PERFORMANCE

UPDATE ON BUSINESS AND STRATEGY Q+A

OUR VISION. CREATING THE LEADING EUROPEAN ONLINE PHARMACY.

Source: Euromonitor, Sempora Research. Note: 1) Continental Europe excludes the UK and certain small EU countries; countries included are: Germany, France, Italy, Spain, Poland, Romania, Netherlands, Belgium, Portugal, Czech Republic, Hungary, Sweden, Bulgaria, Denmark, Slovakia, Norway, Austria. Apparel and electronics TAM for 2014. 2) Sempora 2017. Sum of OTC, BPC, Rx, Functional Food. OTC is defined as non-prescription medication. BPC consist of Beauty and Personal Care Products. Rx is defined as prescription medication. Functional food is defined as food delivering additional and / or enhanced benefits over basic nutritional value.

OUR COMPETIVE ADVANTAGE. RUNNING RELEVANT DIGITAL TECHNOLOGY INHOUSE.

• ! Our technology platform enables us to quickly respond to the latest developments in e-commerce.
• ! The platform's underlying service architecture means we can rapidly deploy new features to further improve the customer experience.
• ! It ensures the fast and secure connectivity of partner systems and external solutions to our systems.
  • ! Easier and therefore faster maintenance through smaller code base.
  • ! Simplified development through modular technology.
  • ! Better and faster results by working in smaller autonomous teams that develop, deploy and improve their respective services independently.

IT & ONLINE EXPERTS: INHOUSE 2014 ~50 EXPERTS

IT & ONLINE EXPERTS: INHOUSE 2019

Improving customer experience based on our state-of-the-art technology platform is a key competitive advantage of our business model.

OUR NEW LOGISTICS HEADQUARTERS. MEETING FUTURE CAPACITY NEEDS. REDUCING COSTS PER PARCEL.

• ! Groundbreaking for ~ 40,000 sqm took place on June 14, 2019.
• ! Distance from current site just 1km.
• ! 42 docks to speed up delivery.
• ! Further automation of pharmacy operations to significantly reduce cost per parcel.
• ! Established Microsoft Dynamcis ERP plus JDA Warehouse Management System for a smooth transition phase.

Future operations can process up to 35 million parcels per year facilitating future e-script sales growth to take us to the next level of EUR 2 billion annual sales.

OUR EUROPEAN FOOTPRINT. BENEFITTING FROM THE WIDEST PRESENCE IN THE INDUSTRY.

OUR PERSPECTIVE. E-SCRIPTS TO BOOST SALES GROWTH AND PROFITABILITY.

MUCH LOWER HANDLING COST, PAPERLESS WORKFLOW.

• ! No mailing cost, no handling of envelopes, no scanning.
• ! No manual corrections, easier cash collection procedures with health insurance companies.

FASTER DELIVERY AS E-SCRIPTS ORDERS ARE TRANSMITTED ELECTRONICALLY.

INCREASED CUSTOMER LOYALTY.

HIGHER BASKET VALUE, HIGHER RETENTION RATE, INCREMENTAL MARGIN – ALL LEAD TO HIGHER CUSTOMER LIFETIME VALUE.

LOWER CUSTOMER ACQUISITION COSTS:

Increased convenience from a customer perspective will lead to higer conversions.

In June 2019, the GSAV (law for secure supply of medicines) passed both Germany's lower house of parliament (Bundestag) and the upper house (Bundesrat).

Several pilot studies are already running, technical implementation will follow. E-scripts planned for 2020.

OUR STRATEGY. BEST PREPARED FOR E-SCRIPTS.

LOOKING FORWARD. FY 2019 AND BEYOND.

MORE TO COME. MARKETPLACE TO BE LAUNCHED IN 2020.

We will expand our business from a pure online pharmacy retailer to a health-focused platform player.

TODAY'S AGENDA.

FINANCIAL PERFORMANCE

UPDATE ON BUSINESS AND STRATEGY Q+A

CONSOLIDATED SEGMENT FINANCIALS. 83-)39!:6./:()/21/-.(;!-6-8!69)7

!"#\$%!"#\$%&'()#*#\$'\$"#(+, SHOP APOTHEKE EUROPE!-./0!1(20345(16-62/1/-.(0/530.7 !"

#%&'(%)%*"%+,-%!"#\$	.'/0	1(2,3('214('5	6('6.12,.%1(2,317 /4(+451.'2,.
	EUR 1,000	EUR 1,000	EUR 1,000
3898:;8	<<=>\$*?	@#>!#\$	?"\$>#?<
#\$%&'\$('%)*+%	– 363,559	– 45,935	– 409,494
ABCDD%-BCEFG	H<>*==	#?>!H*	\$\$>@@"
% of revenue	18.8 %	25.0 %	19.6 %
,&-+.'/01\$2+	77	!3	87
4+**/05'6'7/%&./89&/\$0	– 76,714	– 20,013	– 96,727
'IJ;DG8I%+K.	– 76,477	– 20,013	– 96,490
Segment EBITDA	7.740	– 4,719	:;3<!
'IJ;DG8I%+8LM8:G%,N12.'	=>\$==	– 4,719	*>!?H
Administrative expense			– 17,371
'IJ;DG8I%',			)#<>\$H\$
EBITDA			– 14,351
'IJ;DG8I%,N12.'			– 11,731
Depreciation			– 10,985
=>?@			– 25,336
'IJ;DG8I%,N12			– 22,716
A+&'(/0)01+'1\$%&')0B'/01\$2+'&)C			– 5,072
Net Loss			– 30,408
'IJ;DG8I%(8G%5CDD			– 27,788

CONSOLIDATED SEGMENT FINANCIALS. 83-)39!:6./:()/21/-.(;!-6-8!69)7

!"#\$%!"#\$%&'()#*#\$'\$"#(+, SHOP APOTHEKE EUROPE!-./0!1(20345(16-62/1/-.(0/530.7 17

#%&'(%)%*"%+,-%!"#.	/'01	2(3,4('325('6	7('7/23,/%2(3,428 05(+562/'3,/
	EUR 1,000	EUR 1,000	EUR 1,000
49:9;<9	*=>?>@.	*>?"">	*?>.#
!"#\$%"&%#'()#	– 291,014	– 25,631	– 316,645
ABCDD%-BCEFG	H*?>H>	.?@	@#?.*H
% of revenue	17.9 %	24.6 %	18.5 %
*\$+),%-./"0)	1	8	2
3)((-.4%5%6-#\$,-78\$-".	– 57,036	– 11,599	– 68,635
'IJ<DG9I%+K/	– 55,634	– 11,461	– 67,095
Segment EBITDA	6,429	– 3,219	9:;1<
'IJ<DG9I%+9LM9;G%,N23/'	@?.*#	– 3,081	>?@="
Administrative expense			– 13,384
'IJ<DG9I%',			– 11,997
EBITDA			– 10.174
'IJ<DG9I%,N23/'			– @?!>@
Depreciation			– 9,273
=>?@			– 19,447
'IJ<DG9I%,N23			– 16,520
A)\$%&-.'./)%/"#\$%'.B%-./"0)%\$'C			– 3,480
Net Loss			– 22,927
'IJ<DG9I%(9G%6CDD			– 20,001

!"#\$%!"#\$%&'()#*#\$'\$"#(+, SHOP APOTHEKE EUROPE-../01!23 18

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS. 40-41!5/1(670)78!1-5/1()5-5/9/05( 7:(.;7:!5(-01(87))3

	#%&'(%)%*"%+,-%!"#\$	#%&'(%)%*"%+,-%!"#.
	EUR 1,000	EUR 1,000
/010230	4"\$5#46	*56.#
!"#\$#%"&%#'()#	– 409,494	– 316,645
789::%;89<=>	\$\$5??"	@#5.*?
*\$+),%-./"0)	87	1
2)((-.3%'.4%5-#\$,-67\$-".	– 106,065	– 76,517
Administrative Expense	– 19,019	– 14,775
/0:3A>%<89B%9;08C>=92:	– 25,337	– 19,447
Finance income	89:	87
Finance expense	– 6,317	– 4,192
(0>%<=2C2D0%D9:>	–  6,056	– 4,105
/0:3A>%E0<980%>CF	– 31,392	– 23,552
;./"0)%\$'<	984	625
/0:3A>%C<>08%>CF	– 30,408	– !!5\$!@
Attributable to:
Owners of the Company	– 30,408	– !!5\$!@

!*9870# #*78:";

EUR 1,000 EUR 1,000

!"#\$%!"#\$%&'()#*#\$'\$"#(+, SHOP APOTHEKE EUROPE-../01!23 !"

CONSOLIDATED BALANCE SHEET. !"#\$%!"#\$%&'()#*#\$'\$"#(+, SHOP APOTHEKE EUROPE-../01!23 !" #\$7+\$%90(+- 44,268 43,349 ;0&1+,&\$1,9%<+0,0+:+(7&)*+- =4366! 23,071 >%<+0,:?00+\$%,&--+%- !!36"" 11,525 >%<+0,/(\$&\$:(&*,&--+%- 55,330 34,422

&''()'	*"%+,-%!"#\$	*#%.,/%!"#0
	EUR 1,000	EUR 1,000
1234/566(3)%&''()'
Property, plant and equipment	11,698	11,924
#\$%&\$'()*+,&--+%-	201,949	199,892
.+/+00+1,%&2,&--+%-	!3454	973
Investments in equity- accounted joint ventures	1,008	!3446
#\$7+-%8+\$%-,(\$,&--9:(&%+-	400	400
Investments in equity instruments	!4	!4
	!#78#!9	!#98!"#
/566(3)%&''()'
#\$7+\$%90(+-	44,268	43,349
;0&1+,&\$1,9%<+0,0+:+(7&)*+-	=4366!	23,071
>%<+0,:?00+\$%,&--+%-	!!36""	11,525
>%<+0,/(\$&\$:(&*,&--+%-	55,330	34,422
Cash and cash equivalents	93,561	24,338
	!*9870#	#*78:";
<2)=>%=''()'	9;"80";	*;"8\$"7

,?5@)A%=3B%>@=C@>@)@(' *"%+,-%!"#\$ *#%.,/%!"#0

Issued capital and share premium 341,192 292,045 Reserves/accumulated losses – 103,347 – 78,069

.+/+00+1,%&2,*(&)(*(%@ "3"=5 10,841 >%<+0,*(&)(*(%(+- 128,908 72,411

Trade and other payables 36,805 28,436 Loans and Borrowings 7,652 6,488 Amounts due to banks 15,687 9,805 >%<+0,*(&)(*(%(+- 13,972 8,949

<2)=>%(?5@)A%=3B%>@=C@>@)@(' 9;"80"; *;"8\$"7

+D=6(D2>B(6'E%,?5@)A

1234F566(3)%G@=C@>@)@('

/566(3)%G@=C@>@)@('

EUR 1,000 EUR 1,000

!*:8097 !#*8\$:7

#*08099 0*8!;!

:98##; ;*87:0

450)56!1-7/1(8-6-04/()9//73

,?5@)A%=3B%>@=C@>@)@('	*"%+,-%!"#\$	*#%.,/%!"#0
	EUR 1,000	EUR 1,000
+D=6(D2>B(6'E%,?5@)A
Issued capital and share premium	341,192	292,045
Reserves/accumulated losses	– 103,347	– 78,069
	!*:8097	!#*8\$:7
1234F566(3)%G@=C@>@)@('
.+/+00+1,%&2,(&)((%@	"3"=5	10,841
>%<+0,(&)((%(+-	128,908	72,411
	#*08099	0*8!;!
/566(3)%G@=C@>@)@('
Trade and other payables	36,805	28,436
Loans and Borrowings	7,652	6,488
Amounts due to banks	15,687	9,805
>%<+0,(&)((%(+-	13,972	8,949
	:98##;	;*87:0
<2)=>%(?5@)A%=3B%>@=C@>@)@('	9;"80";	*;"8\$"7

450)56!1-7/1(8-6-04/()9//73

1234/566(3)%&''()'

/566(3)%&''()'

&''()' *"%+,-%!"#\$ *#%.,/%!"#0

Property, plant and equipment 11,698 11,924 #\$%&\$'()*+,&--+%- 201,949 199,892 .+/+00+1,%&2,&--+%- !3454 973

Cash and cash equivalents 93,561 24,338

<2)=>%=''()' 9;"80"; *;"8\$"7

#%&'(%)%*"%+,-%!"#\$ #%&'(%)%*"%+,-%!"#. EUR 1,000 EUR 1,000

!"#\$%!"#\$%&'()#*#\$'\$"#(+, SHOP APOTHEKE EUROPE-../01!23 !"

CONSOLIDATED CASH FLOW STATEMENT. !"#\$%!"#\$%&'()#*#\$'\$"#(+, SHOP APOTHEKE EUROPE-../01!23 !" – (Increase)/decrease in trade and other receivables – 6,925 – 6,750 – (Increase)/decrease in inventory – 919 9,510 – Increase/(decrease) in trade and other payables 19,274 2,234 I57H<=>%?09<;04%85@:8:=; ##EJ*" JE\$\$J

	#%&'(%)%*"%+,-%!"#\$	#%&'(%)%*"%+,-%!"#.
	EUR 1,000	EUR 1,000
/012%3456%3758%59:70;<=>%0?;<@<;<:1
Result from operations	– 25,337	– 19,447
Adjustments for: – Depreciation and amortisation of non-current assets	10,985	9,371
– Corporate income tax	– 8	"
– Issuance of stock option plan	2,188	\$%&
A9:70;<=>%7:1B4;%0CDB1;:C%357%C:97:?<0;<5=%0=C%0857;<10;<5=E%;0F:1%0=C%975@<1<5=1	– 12,172	– 9,163
G5@:8:=;1%<=%657H<=>%?09<;04
– (Increase)/decrease in trade and other receivables	– 6,925	– 6,750
– (Increase)/decrease in inventory	– 919	9,510
– Increase/(decrease) in trade and other payables	19,274	2,234
I57H<=>%?09<;04%85@:8:=;	##EJ*"	JE\$\$J
/012%>:=:70;:C%3758%59:70;<5=1	– 742	– 4,169
'()+,)#+-./*0	!1%	87
Interest paid on financial lease	– 279	"
Net cash (used in)/generated by operating activities	– 760	– 4,082

Investment for property, plant and equipment – %2"\$" – 3,987 '(/*,)3*()#45+#.()6(7.89*#6,,*), – 10,387 – 5,880 '(/*,)3*()#45+#4.(6(-.69#4.:*0#6,,*), – 1 – %" Acquisition of subsidiary, net of cash acquired " -22.296 '(/*,)3*()#.(#5);*+#4.(6(-.69#6,,*), – 20,908 – 4,379 Net cash (used in)/generated by investing activities – 32,391 – 36,552

Interest paid – 2,687 – 4,106 Payment of earn-out obligations Farmaline – %2%"" – %2%"" ',,<*#-5(/*+).89*#85(0 58,592 73,499 Capital increase 49,147 " Cash-out lease payments – 1,551 " Other non-current liabilities – 28 1,514 Net cash (used in)/generated by financing activities #"!E*K* L\$E."K Net increase/(decrease) in cash and cash equivalents L\$E!!* !\$E#KJ /012%0=C%?012%:MB<@04:=;1%0;%;2:%N:><==<=>%53%;2:%9:7<5C !JE**. #OEK.* /012%0=C%?012%:MB<@04:=;1%0;%;2:%:=C%53%;2:%9:7<5C \$*EOL# JJE\$OK

/012%3456%3758%<=@:1;<=>%0?;<@<;<:1

/012%3456%3758%3<=0=?<=>%0?;<@<;<:1

450)56!1-7/1(4-)8(965:()7-7/;/073

/012%3456%3758%<=@:1;<=>%0?;<@<;<:1

/012%3456%3758%59:70;<=>%0?;<@<;<:1

G5@:8:=;1%<=%657H<=>%?09<;04

Adjustments for:

Investment for property, plant and equipment	– %2"\$"	– 3,987
'(/,)3()#45+#.()6(7.89#6,,),	– 10,387	– 5,880
'(/,)3()#45+#4.(6(-.69#4.:0#6,,),	– 1	– %"
Acquisition of subsidiary, net of cash acquired	"	-22.296
'(/,)3()#.(#5);+#4.(6(-.69#6,,),	– 20,908	– 4,379
Net cash (used in)/generated by investing activities	– 32,391	– 36,552
/012%3456%3758%3<=0=?<=>%0?;<@<;<:1
Interest paid	– 2,687	– 4,106
Payment of earn-out obligations Farmaline	– %2%""	– %2%""
',,<#-5(/+).89*#85(0	58,592	73,499
Capital increase	49,147	"
Cash-out lease payments	– 1,551	"
Other non-current liabilities	– 28	1,514
Net cash (used in)/generated by financing activities	#"!EK	L\$E."K
Net increase/(decrease) in cash and cash equivalents	L\$E!!*	!\$E#KJ
/012%0=C%?012%:MB<@04:=;1%0;%;2:%N:><==<=>%53%;2:%9:7<5C	!JE**.	#OEK.*
/012%0=C%?012%:MB<@04:=;1%0;%;2:%:=C%53%;2:%9:7<5C	\$*EOL#	JJE\$OK

450)56!1-7/1(4-)8(965:()7-7/;/073

Result from operations – 25,337 – 19,447

/012%>:=:70;:C%3758%59:70;<5=1 – 742 – 4,169 '()*+*,)#+*-*./*0 !1% 87 Interest paid on financial lease – 279 " Net cash (used in)/generated by operating activities – 760 – 4,082