Redcare Pharmacy N.V.

Investor Presentation • Mar 11, 2025

Earnings call presentation: Q4 and FY 2024.

Presenting live from Sevenum.

Today's presenters.

Olaf Heinrich, Chief Executive Officer.

Jasper Eenhorst, Chief Financial Officer. Today's agenda.

Highlights of 2024.

Business performance 2024.

Update on strategy.

Highlights of 2024.

Looking back at an exceptional year 2024.

• E-Rx became the nationwide standard in Germany for all publicly insured after decades of debate.

• Fully digital patient journey via CardLink approved by the Ministry of Health and gematik.

• Highly valued, customer-centric product.

• Successful, unprecedented e-Rx marketing campaign.

• Rx growth accelerated from 7% in Q1 to 142% in Q4.

• Market leadership in Germany now both in non-Rx and Rx.

More achievements in 2024.

• Continuously high customer satisfaction and growth across all propositions.

• Now also market leader in Italy, besides Germany, Austria, Belgium and Switzerland.

• Marketplace successfully launched in Belgium and Italy.

• Growth managed operationally and record efficiency in logistics.

• Seamless leadership transition on the managing board with internal successors Dirk Brüse and Lode Fastré.

• First year reporting in accordance with CSRD.

Financial highlights 2024.

• Full-year sales up 32% to EUR 2.4bn. Excluding MediService, consolidated since May 2023, fully-organic growth of 26%.

• Non-Rx growth 21% to EUR 1.6bn. A
• Rx growth 64% to EUR 750M. A

• Adj. EBITDA margin 1.4% (Q4 -0.7%), with a strategic increase in e-Rx marketing in October. Strong underlying performance in core business throughout the year.

Cash flow EUR -26M. A

Operational cash generation, strategic capital allocations and continued underlying working capital improvements.

Further increased momentum: Rx sales +64%, total sales up 32%.

NON-FINANCIAL KPIs

+1.7M active customers, acceleration in Q4; basket also up.

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

Impressive order increase successfully processed.

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

NON-FINANCIAL KPIs

Sales up EUR 572M or 31.8% and margin within updated guidance.

Gross profit margin impacted by Rx (more euros, lower percentage margin).

	Year over Year			Year over Year
in millions of euro, adjusted numbers	Q4 2023	Q4 2024	Better or (worse)	FY 2023	FY 2024	Better or (worse)
Sales	531	675	27.1%	1,799	2,371	31.8%
Gross profit margin	22.8%	22.3%	(0.5) pp	24.5%	23.0%	(1.5) pp
Selling & distribution margin	(17.0)%	(20.2)%	(3.2) pp	(18.7)%	(18.7)%	0.0 pp
Administrative cost margin	(2.8)%	(2.8)%	0.0 pp	(2.9)%	(2.9)%	0.0 pp
Adj. EBITDA margin	3.1%	(0.7)%	(3.8) pp	3.0%	1.4%	(1.6) pp
Adj. EBITDA	16	(5)	(ਨਾ)	53	રૂરિ	(20)
EBITDA	13	(6)	(19)	40	29	(16)

Note: Mediservice included since mix impact on gross profit and selling and distribution margins when comparing year ver year.

Stable gross margins before Rx / OTC mix effects.

Cost discipline remains a priority.

KEY FINANCIALS I DACH SEGMENT

Our established businesses within DACH continued to grow at double-digits and with an already solid 5 to 6% fully-loaded margin.

For this overview, established is defined as reporting segment DACH excluding Redcare´s Swiss businesses and impact of the e-Rx boost in Germany. Here we see:

• Unabatedly year after year, increasing base of happy active customers.

• Most comprehensive propositions and market leader in Germany and Austria.

• Cash generating while fast growth continues.

KEY FINANCIALS I INTERNATIONAL SEGMENT

In International, sales almost tripled over four years. Rapidly improved fully-loaded margin for the last two years.

• Unabatedly year after year, increasing A base of happy active customers.
• ▶ Clear market leader in Belgium and in Italy since 2024 too. Smaller positions in the Netherlands and France.
• In 2024, achieved positive result before overhead of 1.3%.

Cash flow EUR -26M; continued working capital improvements.

* For comparison, in this bridge, EUR 7M is re-classfied from Working Capital to Investments, where the FRS cash flow related to 2021 business acquisitions distorts the visibility on the underlying trend. The re-classification does not impact total cash flow.

Update on strategy.

Very strong Rx KPIs confirm Redcare's strategic direction.

• Europe's leading one-stop pharmacy with a unique and broad customer value proposition.

• Best positioned as the leading pharmacy to accelerate market leadership in Germany.

• Steady gain in Rx market share, tripled within a year.

• More than one million active Rx customers in 2024.

• ➤ Rx cohorts already outperform strong non-Rx cohorts in year one by a multiple.

• Rx unit economics outperform strong non-Rx metrics, both fueling mid-term EBITDA guidance of >8%.

VALUE PROPOSITION

Europe's leading one-stop pharmacy with a unique and broad customer value proposition.

• ➤ Most popular and top rated pharmacy platform; highly trusted brand.

• Enhanced pharmacy services (e.g. pharmaceutical advice, interaction checks, repeat prescriptions).

• Widest assortment of Rx, OTC, BPC, plus additional health-related products via marketplace.

• Same-day delivery via Now! local pharmacy network.

Advanced Retail Media offerings.

STRATEGY GERMANY

Best positioned as the leading pharmacy to accelerate market leadership in Germany.

Steady gain in Rx market share, tripled within a year.

2025

Source: calculated by Redcare using ABDA / Insight Heath market size data of €55 billion, adjusted for 2024 seasonality, and own data.

More than one million active Rx customers in 2024.

• 》 Fast acceptance by patients after nationwide adoption.

• Further acceleration in H2, fueled by dedicated e-Rx marketing campaigns.

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

^➤ Finally a fully-digital solution available to patients across Germany.

RX STRATEGY

Rx cohorts already outperform strong non-Rx cohorts in year 1 by a multiple.

Even better pattern for Q2 and Q3 cohorts.

Main drivers for better cohort performance: active rate (share of returning customers after first order), average order value, order frequency.

Metrics driven by high share of patients with chronic conditions. A

25

UNIT ECONOMICS

Rx unit economics outperform strong non-Rx metrics, both fueling mid-term EBITDA guidance >8%.

Next generation intralogistics for Sevenum: major step-up in both efficiency and output capacity.

• ➤ Highly automated solution with proven technology, tailored towards our specific processes.

• Doubling order capacity at the existing Sevenum location.

• Reducing labour per order by 70%.

• Total investment EUR 95 to 105M in 2025, 2026, 2027, financed through existing cash balances; expected to be replaced by a lease.

• Pay-back in less than three years.

• ➤ Planned go-live early 2027.

LOGISTICS AUTOMATION

Guidance, full-year 2025.

• Total sales growth in excess of 25%. A
• Rx in Germany in excess of EUR 0.5 billion. A

• Non-Rx total company growth in excess of 18%.

• Adj. EBITDA margin positive 2% to 2.5%. From regular seasonality and our planning, Q1 likely to be lower.

The market and industry remain dynamic. As always, we will optimise growth and margins, and short and longer-term value creation, and will anticipate on results and developments.

Mid- to longer-term guidance of adjusted EBITDA margin in excess of 8% unchanged.

Time to ask questions.

S

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Thank VOU.

(i) Annual Report 2024 can be downloaded on our website: www.ir.redcare-pharmacy.com