Investor Presentation • Mar 14, 2019
Investor Presentation
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SHOP APOTHEKE EUROPE N.V.
ANNUAL REPORT 2018
VENLO, 15 MARCH 2019
The information contained in this Presentation has been provided by SHOP APOTHEKE EUROPE N.V. (the "Company" and, together with its shareholders, subsidiaries and associated companies, the "Group") and has not been verified independently. Unless otherwise stated, the Company is the source of the information contained herein. For the purposes of this notice, the Presentation includes this document, its contents or any part of it and any related video or oral presentation, any question or answer session and any written or oral material discussed or distributed during the presentation meeting.
Presentations are by their nature abbreviated information and cannot substitute for narrative information. In addition, the information herein is preliminary and is not comprehensive. Consistent with its purpose, this Presentation does not include all information that is material to evaluate the strengths and weaknesses as well as risks and opportunities of the Company.
This Presentation does not constitute or form part of, and should not be construed as an offer or invitation or recommendation to, purchase or sell or subscribe for, or as any solicitation of any offer to purchase or subscribe for, any securities of the Company, in any jurisdiction. Neither this Presentation, nor any part thereof nor anything contained or referred to therein, nor the fact of its distribution, should form the basis of or be relied on in connection with, or serve as an inducement in relation to, a decision to purchase or subscribe for or enter into any contract or make any other commitment whatsoever in relation to any such securities.
No reliance may be placed for any purpose whatsoever on the information or opinions contained in the Presentation or on its completeness, accuracy or fairness. Neither the Company, the remainder of its Group nor its shareholders, any of their respective affiliates, directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to the accuracy, completeness or fairness of the information or opinions in the Presentation (or whether any information has been omitted from the Presentation) or any other information relating to the Group, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of the Presentation or its contents or otherwise arising in connection therewith. In particular, no representation or warranty is given as to the likelihood of achievement or reasonableness of, and no reliance should be placed on, any projections, targets, ambitions, estimates or forecasts contained in this Presentation, and nothing in this Presentation is or should be relied on as a promise or representation as to the future. No statement in this Presentation is intended as a profit forecast or a profit estimate and no statement in this Presentation or any related materials should be interpreted to mean that earnings per share for the future or current financial periods would necessarily match or exceed historical published earning per share.
This Presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, are reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Group operates or in economic or technological trends or conditions. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. It is up to the recipient of the Presentation to make its own assessment as to the validity of such forward-looking statements and assumptions.
All information in this Presentation is current at the time of publication but may be subject to change in the future. The Company disclaims any obligation to update or revise any statements, in particular forward-looking statements, to reflect future events or developments.
To the extent available, the industry and market data contained in the Presentation has come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company reasonably believes that each of these publications, studies and surveys has been prepared by a reputable source, the data contained therein has not been independently verified by the Company or anyone else. In addition, certain of the industry and market data contained in the Presentation come from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. Accordingly, undue reliance should not be placed on any of the industry or market data contained in the Presentation.
Statements contained in this Presentation regarding past events or performance should not be taken as a guarantee of future events or performance.
Recipients of this Presentation should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters, and must make their own assessments concerning such matters and other consequences of a potential investment in the Company and its securities, including the merits of investing and related risks. Any prospective purchaser of the Securities is recommended to seek its own independent financial advice.
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Neither this Presentation nor any part or copy of it may be taken or transmitted into the United States of America ("United States") or distributed, directly or indirectly, in the United States. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state in the United States and may not be offered or sold in the United States except in reliance on an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
This Presentation and the information contained therein, is not directed to, or intended for viewing, release, distribution, publication or use by (directly or indirectly, in whole or in part), any person or entity that is a citizen of, or resident or located in, the United States, Australia, Canada or Japan or any jurisdiction where applicable laws prohibit its viewing, release, distribution, publication or use.
INTRODUCTION.
HIGHLIGHTS & ACHIEVEMENTS 2018.
E-SCRIPT: OUR STRATEGY FOR THE FUTURE.
OUTLOOK.
Q + A.
We are well prepared and ready to take our successful growth story to the next level. Our goal is to grow substiantially in our established markets while rapidly growing in our new markets to reach critical mass there.
STEFAN FELTENS CEO, SHOP APOTHEKE EUROPE.
is the company's Chief Executive Officer (CEO) since January of 2019, succeeding Michael Köhler.
is SHOP APOTHEKE's Chief Operating Officer (COO) as well as its responsible pharmacist, registered as the company's "gevestigde Apotheker" (resident pharmacist) in the Dutch pharmacy registry in 2008.
As Chief Technical Officer (CIO), Marc Fischer is responsible for SHOP APOTHEKE's technical operations.
is Chief Marketing & Sales Officer (CMO) and deputy CEO.
is the company's Chief Financial Officer (CFO) and has been involved with SHOP APOTHEKE since 2010.
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.(2) 2018 for OTC, BPC, RX, Functional Food.
6
INTRODUCTION.
OUTLOOK.
Q + A.
!Fastest growing online pharmacy in Europe
!3.5 m active customers with rising baskets.
!Successful integration of Europa Apotheek / eRx to accelerate Rx business growth.
!The acquisition of nu3.com in July 2018 shall accelerate international online penetration.
!SDAX-Listing since 24 September 2018.
* We define active customers as unique customers who are active in 12 months preceeding a given period of time.
GROSS PROFIT IN EUR MILLION 58 99 2017 2018 + 72%
Gross profit has decreased in line with expectations by 1.9 pp to 18.4% due to higher share of prescription medicines.
INTRODUCTION.
HIGHLIGHTS & ACHIEVEMENTS 2018.
OUTLOOK.
Q + A.
Step 2: Adding online Rx – core market Germany to introduce E-Scripts in 2020 – liberalization in EU markets expected in future.
Source: (1) Sempora market research 2017; (2) IMS PharmaScope, 2017, Sempora market study, 2017, Euromonitor (as of 03 April 2017), online penetration calculated by dividing the internet retailing market size across Europe by the total market size for each vertical, DE and US 2015, other European markets including France, Germany, Italy, Spain, United Kingdom, Switzerland, 2016; (3) ABDA, Sempora, Euromonitor, IMS health: avg. online penetration in Europe was 2.5% for Rx and 3.5% for OTC in 2016; The avg. online penetration rate is expected to grow to 6% by 2020 in continental Europe (excl. DE)
Large Opportunity Complimentary to OTC/BPC(1) 2017 Continental European Total Addressable Market ("TAM"), € bn (excl. VAT)
Source: (1) Sempora 2017, OTC is defined as non-prescription medication. 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. SAE is OTC and Pharma Related BPC. (2) Please refer to page 11. (3) Sempora and Euromonitor. All market sizes exclude VAT.
TOTAL 500 MIO. PRESCRIPTIONS IN GERMANY
INTRODUCTION.
HIGHLIGHTS AND ACHIEVEMENTS 2018.
E-SCRIPT: OUR STRATEGY FOR THE FUTURE.
OUTLOOK.
Q + A.
| 30 April 2019 | Annual General Meeting, Venlo |
|---|---|
| 15 May 2019 | Publication of the results for Q1 2019 |
| 14 August 2019 | Publication of the results for H1 2019 |
| 14 November 2019 | Publication of the results for Q3 2019 |
| Period ended | Period ended | |
|---|---|---|
| 31.12.2018 | 31.12.2017 | |
| EUR 1,000 | EUR 1,000 | |
| Revenue | 539,710 | 283,992 |
| Cost of sales | $-440,392$ | $-226,407$ |
| Gross profit | 99,318 | 57,585 |
| Other income | 196 | 3,015 |
| Selling and distribution | $-105,564$ | $-66,417$ |
| Administrative expense | $-22,679$ | $-13,378$ |
| Result from operations | $-28,730$ | $-19,197$ |
| Finance income | 324 | 40 |
| Finance expenses | $-6,185$ | $-2,246$ |
| Net finance costs | $-5.861$ | $-2,206$ |
| Result before tax | $-34,591$ | $-21,403$ |
| Income tax | 982 | 45 |
| Result after tax | $-33,609$ | $-21,358$ |
| Attributable to: | ||
| Owners of the company | $-33,609$ | $-21,358$ |
33
| Year ended | Year ended | Year ended | Year ended | ||
|---|---|---|---|---|---|
| 31.12.2018 | 31.12.2017 | 31.12.2018 | 31.12.2017 | ||
| EUR 1,000 | EUR 1,000 | EUR 1,000 | EUR 1,000 | ||
| Assets | Equity and liabilities | ||||
| Non-current assets | Shareholders' equity | ||||
| Property, plant and equipment | 11,924 | 8,278 | Issued capital and share premium | 292,045 | 289,317 |
| Intangible assets | 199,892 | 189,827 | Reserves/accumulated losses | $-78,069$ | $-50,351$ |
| Deferred tax assets | 973 | 3,447 | 213,976 | 238,966 | |
| Investments in equity-accounted joint ventures | 1,002 | 905 | Non-current liabilities | ||
| Investments in associates | 400 | 0 | Loans and Borrowings | 72,411 | 4,316 |
| Investments in equity-instruments | 10 | $\Omega$ | Deferred tax liability | 10,841 | 12,711 |
| 214,201 | 202,457 | 83,252 | 17,027 | ||
| Current assets | Current liabilities | ||||
| Inventories | 43,349 | 39,989 | Trade and other payables | 28.436 | 28.855 |
| Trade and other receivables | 34,596 | 27,070 | Loans and Borrowings | 6.488 | 2.722 |
| Other financial assets | 34,422 | 12,510 | Amounts due to banks | 9.805 | 4.914 |
| Cash and cash equivalents | 24,338 | 15,783 | Tax liabilities | 1.846 | 3.947 |
| 136,705 | 95,352 | Employee benefit liabilities | 2.173 | 1.054 | |
| Provisions | 4.930 | 323 | |||
| 53,678 | 41,815 | ||||
| Total assets | 350,906 | 297,808 | Total equity and liabilities | 350,906 | 297,808 |
| Period ended 31.12.2018 |
Period ended 31.12.2017 |
|
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| Cash flow from operating activities | ||
| Result from operations | $-28,730$ | $-19,197$ |
| Adjustments for: - Depreciation and amortisation of non-current assets |
13,171 | 7,059 |
| - Corporate income tax | $\Omega$ | $\Omega$ |
| - Movements in provisions | 3,573 | $-1,861$ |
| - Issuance of stock option plan | 1,450 | $\Omega$ |
| Operating result adjusted for depreciation and amortisation, taxes and provisions |
$-10,536$ | $-13,999$ |
| Movements in working capital | ||
| - (Increase)/decrease in trade and other receivables | $-5,174$ | $-203$ |
| - (Increase)/decrease in inventory | 128 | $-14,236$ |
| - (Increase)/decrease in trade and other payables | $-7,953$ | 5,359 |
| Working capital movement | $-12,998$ | $-9,080$ |
| Cash generated from operations | $-23,534$ | $-23.079$ |
| Interest received | 324 | 40 |
| Interest paid on financial lease | $-331$ | $-205$ |
| Net cash (used in)/generated by operating activities | $-23,541$ | $-23,244$ |
| Cash flow from investing activities | ||
| Investment for property, plant and equipment | $-2,804$ | $-3,143$ |
| Investment for intangible assets | $-9,051$ | $-6,472$ |
| Investment for other financial assets | $-21,913$ | 7,502 |
| Acquisition of subsidiary, net of cash acquired | $-4,379$ | 1,255 |
| Net cash (used in)/generated by investing activities | $-38,147$ | $-858$ |
| Period ended 31.12.2018 |
Period ended 31.12.2017 |
|
|---|---|---|
| EUR 1.000 | EUR 1.000 | |
| Cash flow from financing activities | ||
| Interest paid | $-4,467$ | $-2,041$ |
| Share issue cost | $\Omega$ | $-1,103$ |
| Payment of earn-out obligations Farmaline | $-1,100$ | $-1,100$ |
| Investment equity accounted joint ventures | $\Omega$ | $\Omega$ |
| Investment associates | $-400$ | $\Omega$ |
| Investment equity instruments | $-10$ | $\Omega$ |
| Issue convertible bond, net of costs of issuance | 73,499 | $\overline{0}$ |
| Cash-out lease payments | $-2,221$ | $\Omega$ |
| Other non-current liabilities | $\Omega$ | 781 |
| Net cash (used in)/generated by financing activities | 65,302 | $-3,463$ |
| Net increase/(decrease) in cash and cash equivalents | 3,613 | $-27,565$ |
| Cash and cash equivalents at the beginning of the period | 10.920 | 38,485 |
| Cash and cash equivalents at the end of the period | 14,533 | 10,920 |
| Reconcillation to the balance sheet: | ||
| Cash cand cash equivalents - assets | 24,338 | 15,783 |
| Bank overdraft | $-9,805$ | $-4,863$ |
| 14,533 | 10,920 |
| DACH | International | Consolidated | |
|---|---|---|---|
| EUR 1,000 | EUR 1,000 | EUR 1,000 | |
| Revenues | 491,078 | 48,632 | 539,710 |
| Cost of sales | $-403,328$ | $-37,064$ | $-440,392$ |
| Gross profit | 87,750 | 11,568 | 99,318 |
| % of revenues | 17.9% | 23.8% | 18.4% |
| Other income | 156 | 40 | 196 |
| Selling & distribution costs | $-78,082$ | $-16,287$ | $-94,369$ |
| Adjusted selling & distribution costs | $-76,605$ | $-16,132$ | $-92,736$ |
| Segment EBITDA | 9,825 | $-4,680$ | 5,145 |
| Adjusted segment EBITDA | 11,301 | $-4,524$ | 6,777 |
| Administrative expenses | $-20,704$ | ||
| Adjusted administrative expenses | $-18,530$ | ||
| EBITDA | $-15,559$ | ||
| adjusted EBITDA | $-11,753$ | ||
| Depreciation | $-13,171$ | ||
| EBIT | $-28,730$ | ||
| Adjusted EBIT | $-24,924$ | ||
| Financial result and taxes on income | $-4,879$ | ||
| Adjusted financial result and taxes on income | $-4.879$ | ||
| Period result | $-33,609$ | ||
| Adjusted period result | $-29,803$ |
| DACH | International | Consolidated | |
|---|---|---|---|
| EUR 1,000 | EUR 1,000 | EUR 1,000 | |
| Revenues | 251,289 | 32,703 | 283,992 |
| Cost of sales | $-201,721$ | $-24,687$ | $-226,407$ |
| Gross profit | 49,569 | 8,016 | 57,585 |
| % of revenues | 19.7% | 24.5% | 20.3% |
| Other income | 2,592 | 422 | 3,015 |
| Selling & distribution costs | $-46,286$ | $-14,131$ | $-60,416$ |
| Adjusted selling & distribution costs | $-60,416$ | ||
| Segment EBITDA | 5,875 | $-5,693$ | 182 |
| Adjusted segment EBITDA | 5,875 | $-5,693$ | 182 |
| Administrative expenses | $-12,320$ | ||
| Adjusted administrative expenses | $-8,728$ | ||
| EBITDA | $-12,137$ | ||
| adjusted EBITDA | $-8,545$ | ||
| Depreciation | $-7,059$ | ||
| EBIT | $-19,197$ | ||
| Adjusted EBIT | $-15,605$ | ||
| Financial result and taxes on income | $-2,161$ | ||
| Adjusted financial result and taxes on income | $-2,161$ | ||
| Period result | $-21,358$ | ||
| Adjusted period result | $-17,766$ |
Dr. Ulrich Wandel
CFO
Phone: +31 77-8 50 6117
E-Mail: [email protected]
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