Redcare Pharmacy N.V.

Quarterly Report • Apr 25, 2024

Interim report

31 March 2024

About Redcare Pharmacy

About Redcare Pharmacy.

Originally founded in 2001, Redcare Pharmacy (formerly known as SHOP APOTHEKE EUROPE) today is the leading e-pharmacy in Europe, currently active in seven countries: Germany, Austria, France, Belgium, Italy, the Netherlands and Switzerland.

Headquartered in Sevenum, close to the Dutch city of Venlo and in the heart of Europe, the company has locations in Cologne, Berlin, Munich, Tongeren, Warsaw, Milan, Lille and Eindhoven.

As the one-stop pharmacy of the future, Redcare Pharmacy offers over 11 million active customers a wide range of more than 150,000 products at attractive and fair prices. Besides OTC, nutritional supplements, beauty and personal care products as well as an extensive assortment of healthrelated products in all markets, the company also provides prescription drugs for customers in Germany, Switzerland and the Netherlands.

Pharmaceutical safety is of top priority. Being a pharmacy at its core, Redcare stands for comprehensive pharmaceutical consultation service. Since care is at the heart of everything Redcare does, the company provides services for all stages of life and health. This ranges from its marketplaces to unique delivery options and medication management.

Redcare Pharmacy N.V. has been listed on the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) since 2016.

Table of contents.

1 Interim group management report.

Business model, group structure and corporate governance.	5
Business development.	5
Segment performance.	8
Assets, liabilities and financial position.	9
Risks and opportunities.	10
Important events during the reporting period.	10
Events after the balance sheet date.	10
Forecast.	10

Unaudited consolidated statement of profit and loss.	11
Unaudited consolidated statement of financial position.	12
Unaudited consolidated statement of cash flows.	13
Segment information.	14
Glossary.	18
Contact.	20

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 31 December 2023 and any public announcements made by Redcare Pharmacy N.V. during the interim reporting period.

Key figures.

Continuing to build on our strong growth across Europe.

Business model, Group structure and corporate governance.

The statements made in the 2023 Annual Report regarding the business model, the Group structure, the management system and the corporate governance practices still apply at the time of publication of this interim report.

Business development.

Consolidated revenues and results of operations.

Sales of prescription and non-prescription pharmaceuticals and pharmacy-related beauty and personal care products are subject to seasonal fluctuations, with demand for pharmaceuticals especially high during the first and fourth quarters of the year.

Redcare Pharmacy successfully continued to grow in the first quarter, with Group revenues increasing by 50.6% to EUR 560.2 million (Q1 2023: EUR 372.1 million), and 18.6% excluding MediService AG in Switzerland. As in previous years, the number of active customers rose significantly and now stands at 11.2 million. This represents a gain of more than 1.5 million customers compared to the end of the first quarter of last year.

The number of orders reached 8.9 million in Q1, with an average shopping basket value, excluding MediService and platform, of EUR 58.9 (Q1 2023: EUR 57.9). The share of repeat orders in Q1 was at a high level of 87%, above the previous year's 84%, while the return rate remained minimal at less than 1%.

	2022			2023				2024
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Page visits (million)	93.3	85.7	79.5	89.3	110.9	109.2	107.0	112.6	126.7
Mobile page visits (million)	67.7	60.6	56.3	67.1	83.1	82.5	79.4	85.1	98.1
Ratio mobile (in %)	73	71	71	75	75	76	74	76	77
Orders (million)	6.2	5.8	5.6	6.5	7.5	7.1	7.0	7.8	8.9
Orders by existing clients (in %)	81	83	85	84	84	84	86	87	87
Return rate (in %)	0.7	0.8	0.8	0.7	0.7	0.7	0.8	0.8	0.7
Active customers (million)	8.3	8.6	8.9	9.3	9.7	10.1	10.5	10.8	11.2
Average shopping cart (in €)	56.8	57.9	59.8	58.8	57.9	58.9	60.2	60.6	58.9

Redcare Pharmacy's continuously growing active customer base.

With a growth rate of 27.0%, gross profit at Group level increased significantly in the first quarter compared to the same period last year, from EUR 103.1 million to EUR 130.9 million. The consolidated gross margin was 23.4% (Q1 2023: 27.7%). The lower gross margin is due to the consolidation of MediService AG with its Rx business, which typically has lower gross margins (as a percentage of sales) but a significantly higher contribution per parcel in absolute terms.

Adjusted Selling and Distribution (S&D) expenses for the total Group were EUR 103.1 million in Q1 (Q1 2023: EUR 83.6 million), or 18.4% of sales (Q1 2023: 22.5%). Excluding MediService, S&D as a percentage of sales was 22.5%, in line with last year. Inflationary related cost increases were largely offset by broad efficiency gains in both marketing and operations, while the Group invested in marketing for the e-prescription opportunity in Germany.

Adjusted administrative costs in Q1 were EUR 16.1 million (Q1 2023: EUR 10.8 million). As a percentage of sales, adjusted administrative costs amounted to 2.9% in the first quarter, at the same level as last year.

Redcare Pharmacy's adjusted EBITDA stood at EUR 11.7 million (margin 2.1%) in Q1 2024. Last year, it was EUR 8.8 million (margin 2.4%) with significantly lower adjustments on EBITDA level (EUR 1.1 million vs. EUR 4.2 million).

With depreciation expenses of EUR 16.3 million (Q1 2023: EUR 12.1 million), which are reflective of high investments over the past year, EBIT was EUR –5.7 million for Q1 2024 (Q1 2023: EUR –7.6 million).

Net finance costs and income tax in Q1 were EUR –2.5 million after EUR –2.6 million last year.

Segment performance.

DACH segment.

In Q1 2024, DACH – Redcare Pharmacy's largest segment by revenues, covering business activities in Germany, Austria and Switzerland – grew by 56.7% compared to a year earlier. In euros, revenues rose to EUR 453.4 million from EUR 289.4 million in Q1 2023. Prescription (Rx) sales showed the strongest growth of 348.7% year over year, driven by the inclusion of MediService, while non-Rx sales also grew at a double-digit rate in all three countries – with an average growth rate of 16.8%. Gross profit increased by 26.1% year on year to EUR 104.1 million, with a gross margin of 23.0% (Q1 2023: EUR 82.6 million, 28.5%). The adjusted EBITDA for Q1 2024 was EUR 16.2 million compared to EUR 14.9 million for Q1 2023, representing a margin of 3.6% compared to 5.2% last year. The lower margin is primarily attributable to the aforementioned marketing activities in the context of the introduction of electronic prescriptions in Germany.

International segment.

Redcare Pharmacy's International segment (Belgium, France, Italy, and the Netherlands) increased its Q1 revenues by 29.2% to EUR 106.8 million (Q1 2023: EUR 82.7 million). Segment gross profit rose by 30.5% from EUR 20.5 million to EUR 26.8 million during the reporting period. The gross margin stood at 25.1%, slightly higher than last year's 24.8%. Also driven by a significant reduction in the ratio of expenses as a percentage of sales, the adjusted EBITDA margin improved from last year's Q1 –7.5% to –4.2%, or in absolute terms from EUR –6.2 million last year to EUR –4.4 million.

Q1 2024 Segment development

in EUR 1,000	DACH	International	Consolidated
Revenues	453,410	106,806	560,216
Gross Profit	104,115	26,765	130,880
EBITDA	15,503	–4,880	10,623
Adjusted EBITDA	16,193	–4,444	11,749

Q1 2023 Segment development

in EUR 1,000	DACH	International	Consolidated
Revenues	289,375	82,677	372,052
Gross Profit	82,572	20,517	103,089
EBITDA	12,389	–7,830	4,568
Adjusted EBITDA	14,933	–6,170	8,763

Assets, liabilities and financial position.

Assets and liabilities.

At the reporting date, the balance sheet total was EUR 1.0 billion, unchanged from the end of the year 2023. Non-current assets decreased by EUR 8.4 million to EUR 513.7 million, mainly driven by right of use assets which were down EUR 2.4 million and intangible assets which were down EUR 4.9 million. Current assets remained stable compared to year-end at EUR 499.5 million. Cash and cash equivalents went up from EUR 84.2 million to EUR 98.7 million. Cash and cash equivalents do not include securities and fixed-term deposits; these short-term financial assets amounted to EUR 120 million at the end of Q1 (EUR 127 million at the start of the year). The decrease is due to a cash-out of the prepaid post-combination services in escrow related to an acquisition from prior years.

Non-current liabilities stood at EUR 243.7 million, slightly below EUR 245.8 million at the end of last year. Loans and borrowings within the non-current liabilities decreased by EUR 1.2 million to EUR 234.8 million. Current liabilities were up EUR 2.2 million from EUR 223.7 to EUR 225.9 million, mainly driven by an increase of EUR 3.0 million in trade and other payables.

The equity capital ratio was 53.7% as of the reporting date.

Liquidity situation.

Operational cash flow was a positive EUR 20.9 million compared to EUR 44.0 million during the same period of fiscal year 2023. While the operating result adjusted for depreciation, amortization and taxes was EUR 3.8 million higher at EUR 11 million (Q1 2023: EUR 7.2 million), the previous year´s operational cashflow was significantly driven by favourable working capital movements.

Investing cashflow adjusted for the effect of the cash out of the prepaid post-combination services in escrow of EUR 7.1 million amounted EUR –8.7 million. With that the net cash used for investing activities in Q1 2024 was virtually on the previous year´s level (EUR –8.6 million). EUR –9.6 million were investments in intangible assets and property, plant and equipment. Another positive EUR 1.0 million was related to interest received.

Cash flow from financing activities shows an outflow of EUR –4.1 million vs. an outflow of EUR –3.8 million last year. The main items were interest paid and cash-out lease payments.

Overall, cash and cash equivalents increased by EUR 15.2 million during the reporting period and amounted to EUR 98.7 million as of the balance sheet date. In order to benefit from positive interest rates, EUR 120 million was invested in short-term securities (fixed deposits) during the reporting period and is shown in other financial assets. Cash and cash equivalents as per end of Q1, including EUR 120 million which was on short-term fixed deposits, amounted to EUR 218.7 million (31 December 2023: EUR 204.2 million).

Risks and opportunities.

The risk described in the 2023 Annual Report as "Discrimination of online pharmacies" in connection with the redemption of e-prescriptions has been significantly reduced with the publication of the final specifications of the eHealth-CardLink by gematik in March 2024. This solution provides an additional, non-discriminatory way to redeem e-prescriptions. Beyond this, there were no changes to the company's risk assessment.

Principally, Redcare Pharmacy's business is subject to regulatory changes, which could have a significant favourable or unfavourable impact on its prospects.

Important events during the reporting period.

During the reporting period, Redcare Pharmacy underwent management changes. Chief Commercial Officer Stephan Weber and Chief Information Officer Marc Fischer announced their intention to step down approximately one year before the end of their normal terms of office. On 4 March the Supervisory Board approved their early departure. An internal succession plan was also approved to ensure a smooth transition.

Events after the balance sheet date.

With their appointment by the Annual General Meeting on 17 April, Dirk Brüse took over the role of CCO as successor to Stephan Weber, while Lode Fastré was appointed CIO as successor to Marc Fischer. Both bring valuable expertise to their positions. In addition, Weber and Fischer will provide advisory support until October 2026.

On 23 April, Redcare Pharmacy received approval to implement its eHealth-CardLink solution from the German governmental agency gematik. This approval enables Redcare Pharmacy to offer patients in Germany an easy and user-friendly method to redeem e-prescriptions by using their electronic health card and mobile phone. The eHealth-CardLink solution is expected to be implemented by early May.

No further events have occurred since 31 March 2024, which have a material impact on the company's consolidated financial statements.

Forecast.

The Management Board of Redcare Pharmacy has provided the following guidance for the full year 2024: Total sales are expected to reach EUR 2.3–2.5 billion, representing growth of 30–40%. Non-prescription (Non-Rx) sales are expected to grow by 15–25%, whereas MediService is expected to grow at a mid-single digit rate. The total Group's adjusted EBITDA margin is expected to be between 2% and 4%.

Unaudited consolidated statement of profit and loss.

EUR 1,000	Period ended 31.3.2024	Period ended 31.3.2023
Revenue	560,216	372,052
Cost of sales	–429,336	–268,963
Gross profit	130,880	103,089
Other income	66	19
Selling and distribution	–117,026	–93,939
Administrative expenses	–19,612	–16,748
Operating result	–5,692	–7,579
Finance income	1,344	581
Finance expenses	–4,255	–3,898
Share of profit of associates and joint ventures	0	190
Result before tax	–8,603	–10,705
Income tax	415	483
Result after tax	–8,188	–10,222
Attributable to:
Owners of Redcare Pharmacy N.V.	–7,805	–10,222
Non-controlling interests	–383	0
	–8,188	–10,222

Unaudited consolidated statement of financial position.

EUR 1,000	31.3.2024	31. 12.2023
Assets
Non-current assets
Property, plant and equipment	51,677	52,193
Right of use assets	32,336	34,714
Intangible assets	423,199	428,107
Deferred tax assets	1,747	2,296
Other financial assets	3,446	3,456
Investments in joint ventures	1,297	1,297
Investments in associates	5	5
Investments in equity-instruments	10	10
	513,717	522,078
Current assets
Inventories	134,691	135,786
Trade and other receivables	100,905	103,134
Prepayments and other current assets	45,004	49,380
Other financial assets	120,128	127,058
Cash and cash equivalents	98,736	84,160
	499,464	499,518
Total assets	1,013,181	1,021,596
Equity and liabilities
Shareholders' equity
Issued capital and share premium	750,886	733,424
Reserves/accumulated losses	–235,810	–211,230
Equity attributable to owners of the Company	515,076	522,194
Non-controlling interests	28,566	29,838
Total equity	543,642	552,032
Non-current liabilities
Loans and Borrowings	234,819	236,068
Employee benefit liabilities	3,275	3,454
Deferred tax liability	5,560	6,318
	243,654	245,840
Current liabilities
Trade and other payables	160,582	157,591
Loans and Borrowings	8,650	8,770
Other liabilities	56,653	57,363
	225,885	223,724
Total equity and liabilities	1,013,181	1,021,596

Unaudited consolidated statement of cash flows.

EUR 1,000	Period ended 31.3.2024	Period ended 31.3.2023
Cash flow from operating activities
Operating result	–5,692	–7,579
Adjustments for:
– Depreciation and amortisation of non-current assets	16,315	12,147
– Net foreign exchange differences	300	–23
– Share-based payment charge for the period	881	2,773
Corporate income tax paid	–804	–137
Operating result adjusted for depreciation and amortisation and taxes	11,000	7,181
Movements in
– (Increase)/decrease in trade and other receivables	–647	–826
– (Increase)/decrease in inventory	242	1,885
– Increase/(decrease) in trade and other payables	5,950	27,043
– Increase/(decrease) in other net current assets	4,380	8,691
Total change in working capital	9,925	36,793
Net cash (used in)/generated by operating activities	20,925	43,974
Cash flow from investing activities
Investment for property, plant and equipment	–2,154	–742
Investment for intangible assets	–7,440	–8,406
Investment in other financial assets	–118	0
(Investment in)/disposal from escrow account	7,058	0
Dividend received from associates	0	190
Interest received	1,043	393
Net cash (used in)/generated by investing activities	–1,611	–8,565
Cash flow from financing activities
Interest paid	–2,449	–2,027
Capital increase exercised options	731	101
Repayment of other long-term loans	–406	–406
Cash-out lease payments	–1,969	–1,514
Net cash (used in)/generated by financing activities	–4,093	–3,846
Net increase/(decrease) in cash and cash equivalents	15,221	31,563
Cash and cash equivalents at the beginning of the period	84,160	66,777
Effect of movements in exchange rates on cash held	–645	0
Cash and cash equivalents at the end of the period	98,736	98,340

Segment information.

Our operating segments are reported in a manner consistent with the internal reporting provided to the key operating decision-makers. The key operating decision-makers, who are responsible for allocating resources and assessing performance of the operating segments, have been identified as the statutory directors of the Group and make strategic decisions.

Within the context of IFRS 8, we consider two business segments for external reporting purposes: our "DACH" segment which includes medications and pharmacy related BPC products sold to customers in Germany, Austria and Switzerland, and our "International" segment which includes medications and pharmacy-related BPC products only, sold to customers in Belgium, The Netherlands, France and Italy.

The Group's assets and liabilities are not disclosed by segment as they are not included in the segment information used by the chief operating decision-makers.

The accounting policies of the operating segments are the same as the Group's accounting policies described in Note 2 in the Annual report 2023.

The Group allocates all costs (excluding net finance cost and income tax) to the segments. The result by segment is shown in the line EBITDA including all costs directly related to the revenue of the segments (marketing, operations) and administrative expenses. EBITDA means earnings before tax, interest, depreciation and amortisation.

Results per segment 3M 2024.

Segment information 31 March 2024 – non adjusted and adjusted

EUR 1,000	DACH	International	Unaudited interim consolidated
Revenue	453,410	106,806	560,216
Cost of sales	–349,295	–80,041	–429,336
Adjusted CoS	–349,295	–80,041	–429,336
Gross profit	104,115	26,765	130,880
Adjusted gross profit	104,115	26,765	130,880
% of revenue	23.0%	25.1%	23.4%
Other income	59	7	66
Adjusted other income	59	7	66
Selling & distribution	–77,194	–25,964	–103,158
Adjusted S&D	–77,185	–25,959	–103,144
Administrative expenses	–11,477	–5,688	–17,165
Adjusted AE	–10,796	–5,257	–16,053
EBITDA	15,503	–4,880	10,623
Adjusted EBITDA	16,193	–4,444	11,749
Depreciation	–10,602	–5,713	–16,315
Adjusted Depreciation	–10,602	–5,713	–16,315
EBIT	4,901	–10,593	–5,692
Adjusted EBIT	5,591	–10,158	–4,566
Net finance cost and income tax			–2,496
Adjusted net finance cost and income tax			–2,496
Net loss			–8,188
Adjusted net loss			–7,062

Results per segment 3M 2023.

Segment information 31 March 2023 – non adjusted and adjusted

EUR 1,000	DACH	International	Unaudited interim consolidated
Revenue	289,375	82,677	372,052
Cost of sales	–206,803	–62,160	–268,963
Adjusted CoS	–206,803	–62,160	–268,963
Gross profit	82,572	20,517	103,089
Adjusted gross profit	82,572	20,517	103,089
% of revenue	28.5%	24.8%	27.7%
Other income	16	3	19
Adjusted other income	16	3	19
Selling & distribution	–61,187	–22,427	–83,614
Adjusted S&D	–61,171	–22,417	–83,588
Administrative expenses	–9,003	–5,923	–14,926
Adjusted AE	–6,484	–4,273	–10,757
EBITDA	12,389	–7,830	4,568
Adjusted EBITDA	14,933	–6,170	8,763
Depreciation	–7,327	–4,820	–12,147
Adjusted Depreciation	–7,327	–4,820	–12,147
EBIT	5,062	–12,650	–7,579
Adjusted EBIT	7,606	–10,990	–3,384
Net finance cost and income tax			–2,643
Net loss			–10,222
Adjusted net loss			–6,027

For better orientation, we also provide adjusted figures, which reflect extraordinary items (the non-cash IFRS specific expenses on accounting of the business acquisitions, the non-cash IFRS expenses related to the Employee Stock Ownership Plan, and one-of costs related business projects).

A detailed reconciliation of adjustments can be found in the following table:

Reconciliation of adjustments in EBITDA overview

			Adjustments 2024					Adjustments 2023
	Non-adjusted	1.	2.	3.	Adjusted	Non-adjusted	1.	2.	3.	Adjusted
Revenue	560,216	–	–	–	560,216	372,052	–	–	–	372,052
Cost of sales	–429,336	–	–	–	–429,336	–268,963	–	–	–	–268,963
Gross profit	130,880	–	–	–	130,880	103,089	–	–	–	103,089
Other income	66	–	–	–	66	19	–	–	–	19
Selling & Distribution	–103,158	–	14	–	–103,144	–83,614	–	26	–	–83,588
Administrative expenses	–17,165	881	230	–	–16,053	–14,926	1,400	599	2,170	–10,757
EBITDA	10,623	881	244	–	11,749	4,568	1,400	625	2,170	8,763
Depreciation	–16,315	–	–	–	–16,315	–12,147	–	–	–	–12,147
EBIT	–5,692	881	244	–	–4,566	–7,579	1,400	625	2,170	–3,384
Net finance cost
and income tax	–2,496	–	–	–	–2,496	–2,643	–	–	–	–2,643
Net (loss)/profit	–8,188	881	244	–	–7,062	–10,222	1,400	625	2,170	–6,027

Description of adjustment:

1. IFRS expenses of the employee stock option plans, these expenses are non-cash for Redcare Pharmacy.

2. One-off external project expenses related to other projects. This mainly concerns external advisory costs.

3. Other major non-recurring one-offs. In 2023 this concerned the impact of contingent considerations to former owners of the acquired companies SmartPatient and MedApp. In the light of these acquisitions of 100% of the shares of SmartPatient and MedApp, the total purchase price for the shares which REDCARE PHARMACY agreed upon with the selling shareholders amounts EUR 70.6 million and EUR 8 million respectively. Along with the acquisitions contingent considerations are provided to the former owners which contain a service condition. Payments in the form of cash and shares under this contingent consideration forfeit if employment is terminated. The total contingent consideration amounts to EUR 47.8 million. On the basis of an IFRIC decision on IFRS 3.B55 Business Combinations – the contingent part of this purchase price should be accounted for as consideration for post-combination services – employee expenses during the vesting period. The total impact of the recognition of the cash component and share component of the contingent considerations of both business combinations in the result of the year Q1 2023 amounts to EUR 2.2 million. These costs are included in the employment expenses presented in the profit and loss statement under "administrative expenses". The P&L impact of this accounting method distorts the view on our underlying financial result of our business for management reporting purposes, which is the reason we adjust for it in the presented adjusted EBITDA. Reference is made to note 27 to the consolidated financial statements of the financial year 2023 for detailed explanation.

Glossary.

Active Customers

Unique customers who have placed at least one order in the 12 preceding months, predominantly via our online shops, for both our own-stock and platform business. Business-to-business (B2B) orders are excluded to not distort visibility on relevant trends. Platform-only customers are not yet included.

Administrative Expenses

Cost of corporate overhead of which examples are IT services, Finance, HR, Facility, Legal and Executive Management.

Adjusted EBITDA

Earnings Before Interest, Tax, Depreciation and Amortization excluding Adjustments. We use this metric as we find it an important indicator of our underlying operational financial performance.

Adjustments

Items we adjust to get from EBITDA to Adjusted EBITDA. There are three categories: (a) Expenses of the employee stock option programs, (b) Non-recurring or extraordinary expenses related to projects, (c) Any other major non-recurring (one-off) items of which we would release what it concerns in case we record it as specifically mentioned.

(Adjusted) EBITDA margin

(Adjusted) EBITDA as a percentage of sales.

Average shopping basket

The average gross value of received orders from end-customers and patients (B2C), predominantly via our online shops for our own-stock business, divided by the total related number of orders placed in a given time period. Current prescription medication sales (Rx) in Switzerland and the Netherlands are not included because we believe current non-comparable customer types would distort visibility on relevant trends in this metric. Business-to-business (B2B) orders are excluded for the same reason. The average shopping basket includes value-added tax (VAT).

BPC products

Beauty and personal care products.

CAGR

Compound annual growth rate

DACH Segment

Segment reporting provides financial information about the individual units of the company. Redcare uses a regional approach. The DACH Segment comprises its business activities in Germany, Austria and Switzerland.

EBIT

Earnings Before Interest and Tax.

e-RX/eScript

Computer-based electronic generation, transmission, and filling of a medical prescription.

Group

Redcare Pharmacy N.V., Sevenum, the Netherlands, together with its consolidated subsidiaries.

International Segment

Segment reporting provides financial information about the individual units of the company. Redcare uses a regional approach. The International Segment comprises its business activities in France, Italy, Belgium and the Netherlands.

Mobile visits

Site visits to our online shops originating from computers, tablets and smartphones as well as other computer-based means.

Net working capital

The difference between the company's current assets (including: trade and other receivables and inventories) and its current liabilities (including: trade and other payables, short-term loans and borrowing and short-term other liabilities).

NPS

Net promoter score of our B2C own stock and platform business for a given period of time. NPS does not yet include MedApp, GoPuls and MediService. We track NPS as an indicator for customer satisfaction.

Number of orders

Number of end-customer and patient (B2C) orders, predominantly placed via our online shops for both our own-stock and platform business, containing at least one product, placed during the measurement period.

OTC products or medications

Products or medicines sold to a customer without a prescription from a healthcare professional, as compared to prescription- only medicines, which may be sold only to customers possessing a valid prescription.

Pharmacy-related products

Products that are almost exclusively distributed through pharmacies.

Private labels or own brands

By private labels (or own brands) we mean the brands of products owned by Redcare Pharmacy or its subsidiaries.

Return Rate

Percentage of billed B2C orders for our own stock business that incorporated a return or reclamation of total billed orders in a given time period. Current prescription medication sales (Rx) in Switzerland and the Netherlands are not included because we believe the current non-comparable customer types would distort visibility on relevant trends in this metric. Business-to-business (B2B) orders are excluded for the same reason.

Rx products or medications

Prescription-only medicines, which are only allowed to be sold to customers possessing a valid prescription.

Rx revenues

Sales related to prescriptions of our own stock business in the DACH Segment.

Sales

Gross revenues minus value added taxes and discounts.

Selling & Distribution expenses

Expenses related to marketing, shipping, packaging, payments and operational labor to support our Sales.

Share of mobile visits

Mobile visits as a percentage of site visits.

Share of repeat orders

Percentage of total orders, predominantly related to our online shops for both our own-stock and platform business, that is billed during the measurement period that is not the initial order bill to the customer. Business-to-business (B2B) orders are excluded to not distort visibility on relevant trends;ith this definition we aim to provide the most relevant insight as to the development of this metric. The share of repeat orders related to platform-only customers is not yet included.

Website Visits (Web Traffic)

Unique interactions of a visitor on our website (online shops); a visit is considered terminated when the visitor leaves the browser instance or has not interacted with the page for more than 30 minutes.

Contact.

For the latest full year report, please refer to the Annual Report 2023, which you will find on Redcare Pharmacy Corporate Website https://ir.redcare-pharmacy.com/en in the Investor Relations section.

Redcare Pharmacy N.V. Erik de Rodeweg 11/13 5975 WD Sevenum

Media contact: Sven Schirmer Tel: +49 221 99 53 44 31 Email: presse@redcare-pharmacy.com

Investor relations: Monica Ambrosi Tel.: +31 77 850 6461 Email: investors@redcare-pharmacy.com