Redcare Pharmacy N.V.

Quarterly Report • Nov 5, 2024

Q3 2024 Earnings call presentation.

Presenting live from Sevenum.

Today's presenters.

Olaf Heinrich, Chief Executive Officer. Jasper Eenhorst, Chief Financial Officer.

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Greetings from Pilsen.

Today's agenda.

Financial performance.

E-Rx update.

Outlook and guidance.

Financial performance.

Financial performance

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9M 2024 financial highlights.

• Fast growth with record sales continued. Group sales up 34% in 9M 2024, reaching EUR 1.7bn. Excluding MediService (consolidated since May 2023), growth was 23%.
• Non-Rx growth of 20% to EUR 1.2bn. +18% in the DACH Segment and +26% in the International Segment.
• Exceptional Rx momentum in Germany. 7% in Q1, -> 37% in Q2, -> 81% in Q3 of which 108% in September.
• Adj. EBITDA 2% in Q3, 2.3% YTD. Continued solid performance across the Group, with more Rx marketing in Germany throughout the year.
• Full-year guidance updated on 3 October; decision to accelerate based on very convincing e-Rx metrics.

KEY FINANCIALS | 9M sales Sales

Double-digit growth continues.

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Exceptional growth, dynamic acceleration of our Rx sales in Germany.

Rx growth from 7% in Q1, to 37% in Q2, to 81% in Q3 and accelerating to 108% in September.

Non-financial kpiS

Approaching 12M active customers, basket value up.

Number of customers

11.9M Net Promoter Score Q3 2024 (Q3 2023: 74) 69 Average shopping basket value Q3 2024 (Q3 2023: € 60.21) € 61.86

Note: due to rounding, total may differ from sum of quarters.

NON-FINANCIAL KPIS

For the first time, more orders in Q3 than in Q2.

Source: Redcare Pharmacy

Orders: sales to end-customers / patients (B2C) both own-stock and platform business. Repeat orders: exclude platform-only customers.

9M sales up EUR 428M to EUR 1.7bn, adj. EBITDA EUR 38M.

MediService included since mid-May 2023, leading to mix impact on gross profit and selling and distribution margins when comparing year over year.

Key financials Profit & Loss
9M sales up EUR 428M to EUR 1.7bn, adj. EBITDA EUR 38M. distribution margins when comparing year over year.
	year over year			year over year
in millions of euros, adjusted numbers	Q3 2023	Q3 2024	Better or (worse)	9M 2023	9M 2024	Better or (worse)
Sales	476	575	20.8%	1,267	1,695	33.8%
Gross profit margin	23.0%	23.2%	0.2 pp	25.2%	23.3%	(1.9) pp
Selling & distribution margin	(17.0)%	(18.3)%	(1.3) pp	(19.4)%	(18.2)%	1.2 pp
Administrative cost margin	(2.9)%	(3.0)%	(0.1) pp	(2.9)%	(2.9)%	0.0 pp
Adj. EBITDA margin	3.2%	2.0%	(1.2) pp	2.9%	2.3%	(0.6) pp
Adj. EBITDA	15	11	(4)	37	38	1
EBITDA	12	10	(2)	27	35	8

Key financials | gross profit margin

Strong growth achieved with stable gross profit margins before impact of mix. Adjusted gross profit margin Adjusted gross profit margin

Key financials | SELLING, distribution AND ADMIN ratio

Cost performance continues to be in focus while increasing Rx marketing. Adjusted SD&A costs Adjusted SD&A costs

Key financials: cash flow

Cash balance remains solid.

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Operating result cash flow: EUR +37 million. Adj. EBITDA margin 2.3%.

Mainly IT investments and property, Working capital: EUR +10 million. Seasonal pattern partly offset by higher inventory value.

Mainly costs of debt, financing Investments: EUR -26 million. plant and equipment.

Financing: EUR -15 million. and leases.

E-Rx update.

German e-Rx momentum further accelerating strongly. E-rx update

• Fast increase in app downloads.
• E-Rx rapidly turning into an app business; already 90% of our e-Rx prescriptions submitted via app.
• Total Rx growth of 81% in Q3, further acceleration to over 130% in October.
• Strong market share gain: from 0.27% in January, to 0.45% at end of Q2, to 0.55% at end of Q3 and increasing further to 0.66% in October. Pole-position for once-in-a-lifetime opportunity.

SHOP APOTHEKE APP DOWNLOADS

Acceleration of app downloads.

Rx BY CHANNEL

Rapid transformation into an app business.

Share of Redcare Rx prescriptions by channel received* .

Customers

• One-stop pharmacy on smartphone: a pharmacy at your finger-tip. Convenient personalised 1/1
• Fully digital journey.
• communication.

Redcare

• Higher customer loyalty.
• Reduced marketing cost after app installment.
• Higher agility to build best product.

19 *Comprising of only Rx prescriptions from patients on Statutory Health Insurance (SHI / GKV).

Exceptional growth, dynamic acceleration of our Rx sales in Germany.

Rx growth from 7% in Q1, to 37% in Q2, to 81% in Q3 and accelerating to over 130% in October.

Market share doubled from January to end of Q3, acceleration continued into Q4. SHARE IN ADDRESSABLE rx MARKET

Redcare's market share of Rx sales in Germany, assuming a EUR 55 billion addressable market.

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Today's Rx market in Germany

Germany's addressable Rx market.

Total online penetration ~1%.

EUR 55 bn

Market share gain in 2024. September and 0.66% in October. Annualised revenue potential.

+0.1pp = >EUR 50 million +1pp = >EUR 500 million

22 Total addressable Rx market in Germany around EUR 55 billion (Source: ABDA / Insight Health)

Outlook and guidance.

FULL-YEAR Guidance

E-Rx step up: 2024 guidance updated on 3 October.

Initial guidance:

• Total sales EUR 2.3-2.5 billion.
• Non-Rx sales growth 15-25%.
• MediService to grow by mid-single digits.
• Adj. EBITDA margin 2% to 4%.
• Rx too dynamic to give guidance.

Guidance since 3 October:

• Total sales EUR 2.35-2.5 billion.
• Non-Rx sales growth 20-25%.
• MediService to grow by lower half of single digits.
• Adj. EBITDA margin 1.2% to 2.2%.
• Rx too dynamic to give guidance.

Redcare's underlying business performance robust and fully in line with annual plan.

Time to ask questions.