Interim / Quarterly Report • May 14, 2018
Interim / Quarterly Report
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INTERIM FINANCIAL STATEMENTS FIRST QUARTER 2018 SHOP APOTHEKE EUROPE N.V.
15 MAY 2018
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.
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5
Increased basket size and € contribution per parcel have already resulted in significantly improved group segment EBITDA and EBITDA margin.
Shop Apotheke has been awarded BEST GERMAN ONLINE PHARMACY BRAND* and CUSTOMER CHAMPION IN AUSTRIA** .
EBITDA is supported by economies of scale that have decreased administration costs to 2.8% of sales (3.0% in Q1 2017).
• The Minister of Health was not appointed when the coalition agreement was signed
• The new German Minister of Health, Mr Spahn, is an advocate of digitalization in the health sector
Source: (1) Börsen-Zeitung, 13 March 2018, Article: SHOP APOTHEKE peilt 2018 Gewinnschwelle an; (2) Börse-Online, 15-21 February 2018, Article: Bittere Pille; (3) Frankfurter Rundschau, 15 February 2018, Article: Auf Druck der Apothekenlobby; (4) Bloomberg (as of 04 April 2018); (5) https://www.apotheke-adhoc.de//nachrichten/detail/markt/shop-apotheke-will-umsatz-verdoppeln/; FY2017 Annual Report
Enormous OTC mail order market growth in our European markets (in EUR m) (1)
OTC represents a huge addressable market in continental Europe with an online penetration close to zero(2)
Multiple paths to profitable growth
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)
SHOP APOTHEKE EUROPE is on target for FY 2018.
Strong Gross Profit growth despite high international sales growth.
Web traffic (in m) Share of mobile visits (%)
Source: SHOP APOTHEKE EUROPE.
Number of Active Customers (in m)*
Number of Orders (in m)
Share of repeat orders (%)
Average basket size (in €)
Source: SHOP APOTHEKE EUROPE.
Note: (2) OTC: Prescription-free medication sold; Rx: Pharmaceuticals that require a prescription; BPC: Beauty and personal care products (3) Sales growing +44% YoY, while market increased by 11.8% according to the German E-Commerce Trade Association (bevh)
Michael Köhler, CEO & Co-founder
20 years of experience in the pharmaceutical industry (Hoechst, Aventis)
Stephan Weber, CMO & Co-founder
15 years of pharmaceutical and online experience; led the business since 2001
Dr. Ulrich Wandel, CFO > 20 years of experience in the pharmaceutical industry
15 years of experience in the in leading mail-order pharmacies (incl. DocMorris)
Marc Fischer, CTO & Co-founder > 20 years of experience in the IT industry (incl. Credit Suisse, Brechtle)
Committed management team with ample experience in the field, holding a significant stake in Shop Apotheke Europe N.V.
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| May 17, 2018 | Citibank Internet and eCommerce Day, London |
|---|---|
| May 23 – 24, 2018 |
Berenberg Conference USA 2018, Tarrytown, NY |
| August 14, 2018 | st Publication of the results for 1 HY 2018 |
| August 30, 2018 | Commerzbank Sector Conference, Frankfurt |
| November 14, 2018 | Publication of the results for Q3 2018 |
| Q1 2018 | GERMANY | INTERNATIONAL | CONSOLIDATED |
|---|---|---|---|
| EUR 1,000 | EUR 1,000 | EUR 1,000 | |
| Revenue | 103,527 | 27,139 | 130,667 |
| Cost of sales | $-86,319$ | $-21,333$ | $-107,652$ |
| Gross Profit | 17,209 | 5,806 | 23,015 |
| % of revenue | 16.6% | 21.4% | 17.6% |
| Other income | $-13$ | 42 | 29 |
| Selling & Distribution | $-16,778$ | $-7,599$ | $-24,377$ |
| Segment EBITDA | 418 | $-1,751$ | $-1,333$ |
| Administrative expense | $-3,637$ | ||
| EBITDA | $-4,970$ | ||
| Depreciation | $-3,087$ | ||
| EBIT | $-8,057$ | ||
| Net finance cost and income tax | $-50$ | ||
| Net loss | $-8,107$ |
| GERMANY | INTERNATIONAL | GERMANY | ELIMINATIONS | CONSOLIDATED |
|---|---|---|---|---|
| SERVICES | ||||
| EUR 1,000 | EUR 1,000 | EUR 1,000 | EUR 1,000 | EUR 1,000 |
| 47.493 | 16.034 | 1,678 | $-1,427$ | 63.778 |
| $-37.662$ | $-12.812$ | $-73$ | $\mathbf 0$ | $-50.547$ |
| 13.231 | ||||
| 20,7% | 20,1% | 95.6% | 20,7% | |
| 784 | ||||
| $-15.676$ | ||||
| 442 | $-2.343$ | 240 | 0 | $-1.661$ |
| $-1.900$ | ||||
| $-3.561$ | ||||
| $-1.295$ | ||||
| $-4.856$ | ||||
| $-582$ | ||||
| $-5,439$ | ||||
| 9.831 590 $-9.979$ |
3.222 188 $-5.753$ |
1,605 6 $-1,372$ |
$-1,427$ $\theta$ $-1,427$ |
| PERIOD ENDED 31.3.2018 |
PERIOD ENDED 31.3.2017 |
|
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| Revenue | 130,667 | 63,778 |
| Costs of sales | $-107,652$ | $-50,547$ |
| Gross profit | 23,015 | 13,231 |
| Other income | 29 | 784 |
| Selling & Distribution | $-27,001$ | $-16,777$ |
| Administrative Expense | $-4,101$ | $-2,095$ |
| Result from operations | $-8,057$ | $-4,856$ |
| Finance income | 24 | 22 |
| Finance expense | $-477$ | $-553$ |
| Net finance cost | $-452$ | $-531$ |
| Result before tax | $-8,510$ | $-5,387$ |
| Income tax | 403 | $-52$ |
| Result after tax | $-8,107$ | $-5,439$ |
| ASSETS | PERIOD ENDED 31.3.2018 |
PERIOD ENDED 31.12.2017 |
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| Non-current assets | ||
| Property, plant and equipment | 8.431 | 8.278 |
| Intangible assets | 189,360 | 189.827 |
| Deferred tax assets | 3.884 | 3.447 |
| Investments in equity- accounted joint ventures | 905 | 905 |
| 202.580 | 202.457 | |
| Current assets | ||
| Inventories | 34.361 | 39.989 |
| Trade and other receivables | 23.711 | 20.546 |
| Other current assets | 4.354 | 6.524 |
| Other financial assets | 9.926 | 12.510 |
| Cash and cash equivalents | 22.222 | 15.783 |
| 94.573 | 95.352 | |
| Total Assets | 297.152 | 297.808 |
| EQUITY AND LIABILITIES | PERIOD ENDED 31.3.2018 |
PERIOD ENDED 31.12.2017 |
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| Shareholders' equity | ||
| Issued capital and share premium | 289.317 | 289.317 |
| Reserves/accumulated losses | $-58.458$ | $-50.351$ |
| 230.859 | 238.966 | |
| Non-current liabilities | ||
| Provisions | 220 | 323 |
| Deferred tax liability | 12.730 | 12.711 |
| Other liabilities | 3.783 | 4.316 |
| 16.733 | 17.350 | |
| Current liabilities | ||
| Trade and other payables | 33.349 | 23.090 |
| Amounts due to banks | 4.225 | 4.863 |
| Other liabilities | 11.986 | 13.539 |
| 49.560 | 41.492 | |
| Total Equity and Liabilities | 297.152 | 297.808 |
| PERIOD ENDED 31.3.2018 |
PERIOD ENDED 31.3.2017 |
|
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| CASH FLOW FROM OPERATING ACTIVITIES | ||
| Results flow from operations | 8.057 | $-4.856$ |
| Adjustments for: - Depreciation and amortisation of non-current assets |
3,087 | 1,295 |
| Operating result adjusted for depreciation and amortisation, taxes and provisions |
$-4.970$ | $-3,561$ |
| Movements in working capitals: | ||
| - (Increase)/decrease in trade and other receivables and other current assets |
$-995$ | 488 |
| - (Increase)/decrease in inventory | 5,628 | 2,962 |
| - Increase/(decrease) in in trade and other payables and other liabilities |
9,631 | 2,962 |
| Working capital movement | 14,265 | 6,412 |
| Cash generated from operations | 9.295 | 2,851 |
| Interest received | 24 | 22 |
| Net cash (used in)/generated by operating activities |
9,319 | 2,873 |
| PERIOD ENDED 31.3.2018 |
PERIOD ENDED 31.3.2017 |
|
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| ASH FLOW FROM INVESTING ACTIVITIES | ||
| nvestment for property, plant and equipment | $-841$ | $-4,348$ |
| nvestment for intangible assets | $-1,933$ | $-1,545$ |
| nvestment in other financial assets | 2,584 | 0 |
| let cash (used in)/generated by investing ctivities |
$-189$ | $-5,893$ |
| ASH FLOW FROM FINANCING ACTIVITIES: | ||
| nterest paid | $-420$ | $-553$ |
| ayment of earn-out obligations Farmaline | $-1,100$ | 0 |
| Other non-current liabilities | $-533$ | 0 |
| let cash (used in)/generated y financing activities |
$-2,052$ | $-553$ |
| let increase/(decrease) n cash and cash equivalents |
7.077 | $-3,573$ |
| ash and cash equivalents t the beginning of the period |
10,920 | 38,485 |
| ash and cash equivalents. it the end of the neriod |
17 006 | 34 012 |
Dr. Ulrich Wandel
CFO
Phone: +31 77-8 50 6117
E-Mail: [email protected]
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