Zur Rose Group AG

Earnings Release • Aug 21, 2019

Zur Rose Group

H1 2019 Results Conference Call

Today's Presenters

Walter Oberhänsli Founder, Group CEO Marcel Ziwica Group CFO

Financial Update

Zur Rose Group Sales

Group sales grow almost 30%

In Mio. CHF

KPIs Segment Germany

Notes: Figures reflecting performance of entire German business regardless of consolidation progress of the acquired businesses; all numbers reflecting the performance in the last twelve months period ending 31 December 2018 and 30 June 2019 respectively | 1 Customers placing an order within the past twelve months | 2 Share of orders from existing customers in relation to total number of orders | 3 Number of website visits | 4 Basket size equals average value of the purchase per order | 5 Number of orders per active customer and year

Zur Rose Group Income Statement

Earnings on previous year level

In Mio. CHF	H1 2018	%	H1 2019	%
Sales	602.7		668.4
Gross profit	96.2	16.0	104.8	15.7
Personnel expenses	-46.9	-7.8	-59.9	-9.0
Marketing expenses	-23.8	-3.9	-24.4	-3.6
Other operating income & expenses	-34.6	-5.7	-23.0	-3.4
EBITDA	-9.0	-1.5	-2.5	-0.4
EBIT	-16.7	-2.8	-17.1	-2.6
Net income	-17.6	-2.9	-17.1	-2.6

Zur Rose Group Financials

Balance Sheet

In Mio. CHF	31 Dec 2018	%	30 June 2019	%
Cash and cash equivalents	230.7		91.4
Receivables	116.5		126.0
Inventories	69.4		68.4
Property, plant & equipment	34.3		54.5
Intangible assets	264.6		456.2
Other assets	11.0		19.1
Total assets	726.5		815.5
Financial liabilities	34.1		96.6
Payables & accrued expenses	115.4		132.4
Bonds	114.1		114.2
Other liabilities	19.2		27.0
Equity	443.6	61.1	445.3	54.6
Total equity and liabilities	726.5	100.0	815.5	100.0

Outlook

Group Outlook 2019

Management expects sales of CHF 1.6 billion (including medpex's total annual sales), corresponding to growth of over 30 percent compared to the previous year

Including all extraordinary items, the aim is to achieve break-even at EBITDA level, but at least an EBITDA margin in line with 2018 (minus 1.0 per cent)

Strategy Update

DE —Integration & synergies —eRx focus

Business Priorities 2019

Ready to change

the world of pharmacy

Zur Rose Group

CH —Omnichannel —Insurance cooperations

ROE —International expansion

11

Germany: 1. Integration and Synergies

Zur Rose Group integration strategy a combination of four pillars

Brands

Organisation Culture

One brand

Shared DNA and vision

One unified platform

IT Platform

Logistics

One logistics hub for Germany

Germany: 1. Integration and Synergies

Scaling up apo-rot Heerlen site

— Marketing, Service and IT will be bundled in Heerlen

Germany: 1. Integration and Synergies

Zur Rose Group

Completion of new warehouse building

• Project on track for completion in 2021
• Ongoing evaluation to integrate further operations in 2020 – ahead of initial integration plan
• Potential for additional cost synergies in 2020

E-script introduction in Germany increasing convenience for patients to order online

• E-script enables paperless submission process
• Faster delivery
• Lower handling cost

Increasing online penetration through eRx expected, unlocking substantial upside potential

Illustrative, assuming constant Zur Rose Group share of e-commerce market and constant total market size

Law to introduce E-script in Germany enacted

Key topics of the law:

• 7 months time to clear up regulations currently prohibiting e-scripts in Germany
• Gematik to define specifications and licensing procedure for development of solutions by third party providers until June 2020
• E-script pilots instantly allowed with the purpose to provide input for the nationwide roll-out and the gematik specifications

Pilot projects co-determine speed and specification of the nationwide eRx roll-out

17

eRx readiness

Technology

eRx software leadership strengthened by acquisition of former joint-venture partner Ehealth-Tec in order to shape the design of the future architecture

Pilot projects

Cooperations launched with insurance companies and SpiFa(1) to establish proof of concept and accelerate big-scale implementation

Awareness

Boost awareness of e-script via education and broad marketing campaign

Case study - Fully digital e-script process in Techniker Krankenkasse pilot projet

• Techniker Krankenkasse established fully digital e-script process from physician to patient to pharmacy to insurance company in their pilot project
• First e-scripts already issued and filled
• Proof of concept: the electronic prescription works!

Switzerland: 1. Omnichannel Step-up of cooperation via Joint Venture with Migros: Further Roll-out Shop-in-Shop Joint webshop Innovative integrated care models

Weko erwähnen?

1. Kontinentale Omnichannel Apothekenmodell

20

In einer gemeinsamen Gesellschaft (Beteiligung Migros an Shop in Shop AG)

Zur Rose Group

Rest of Europe 1. International Expansion

Marketplace model scaling rapidly

— Successful integration of Doctipharma to Promofarma marketplace technology

— Market entry Italy targeted in H2 2019

Outlook

Group Outlook 2022

The company aims to double its 2018 sales by 2022

EBITDA target margin for 2022 is 5 to 6 percent, corresponding to CHFm 120 to CHFm 150

Rx OTC BPC UNIFIED PLATFORM Telemedicine Outcome Reporting Medication Management eRx Consumers/Patients B2C¹ Customers Marketplace Physicians B2B/B2B2C Insurance Companies B2B2C Manufacturers B2B2C Third Party Providers B2B Pharmacies B2C/Marketplace Widening presence across the ecosystem, whilst reinforcing barriers to entry Vision: European Healthcare Ecosystem

Vision: European Healthcare Ecosystem

Achievements H1 2019

1 Further improve technology competencies

2 Launch of new cooperations

3 Increase customer base 4 Highest brand awareness and trust

62%

Contact Information

Walter Oberhänsli Founder, Group CEO

ir@zurrose.com +41 58 810 11 49 Marcel Ziwica Group CFO

Disclaimer

This presentation (the "Presentation") has been prepared by Zur Rose Group AG ("Zur Rose" and together with its subsidiaries, "we", "us" or the "Group") solely for informational purposes and has not been independently verified and no representation or warranty, express or implied, is made or given by or on behalf of any of the Group. Zur Rose reserves the right to amend or replace the Presentation at any time, and undertakes no obligation to provide the recipients with access to any additional information. Zur Rose shall not be obligated to update or correct the information set forth in the Presentation or to provide any additional information. Nothing in this Presentation is, or should be relied upon as, a promise or representation as to the future. Certain statements in this Presentation are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions, intense competition in the markets in which the Group operates, costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting the Group's markets, and other factors beyond the control of the Group). Neither Zur Rose nor any of its respective directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak of the date of this Presentation. Statements contained in this Presentation regarding past trends or events should not be taken as a representation that such trends or events will continue in the future.

This Presentation does not constitute or form part of, and should not be construed as, an offer or invitation or inducement to subscribe for, underwrite or otherwise acquire, any securities of Zur Rose, nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Group, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This Presentation is not a prospectus and is being made available to you solely for your information and background and is not to be used as a basis for an investment decision in securities of Zur Rose or the Group.