Redcare Pharmacy N.V.

Investor Presentation • Mar 5, 2024

Q4 and FY 2023 Earnings call presentation.

Presenting live from our headquarters.

Today's presenters.

Olaf Heinrich, Chief Executive Officer.

Jasper Eenhorst, Chief Financial Officer.

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Today's agenda.

Highlights of 2023.

Business performance 2023.

Strategy update and outlook 2024.

Finance outlook and guidance 2024.

Highlights of 2023.

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Highlights of 2023.

• Guidance fully achieved.

  • · Across all elements, with record sales and major margin improvements.

• More than 10 million active customers reached.

  • · Thanks to comprehensive services and offerings as the onestop pharmacy for Europe.

• New corporate brand successfully launched.

  • Introduction of Redcare Pharmacy in June 2023.
  • · Until every human has their health.

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Highlights of 2023.

• ➤ Progress in sustainability driven forward.
  • · MSCI AAA Rating for sustainability.
  • · Recycled packaging material share increased to 93%.

• Strategic partnership with Galenica established.

  • · Combination of online expertise and proficiency with specialty Rx leadership in Switzerland.

• The course for e-Rx in Germany finally set.

  • · Announcement of mandatory e-Rx requirement as of 1 January 2024.
  • Development of eGK NFC solution specifications announced by gematik in December.

Business performance 2023.

FINANCIAL HIGHLIGHTS 2023

Ambitious guidance fully met.

➤ Fast total and organic growth. Total sales up 62% in Q4 and 49% FY (excl. MediService: 23% in Q4 and 24% FY). Non-Rx growth of 23% in Q4 and 25% FY.

Efficiency gains drive EBITDA. Adj. EBITDA 3.1% in Q4, 3.0% FY (3.7 pp better vs. prior year). Improvements achieved across all components of P&L.

Solid cash position. A Full-year positive FCF (EUR 8M); cash balance around EUR 200M.

Continued fast growth across the Group.

NON-FINANCIAL KPIs

Active customers +1.5M, with an increased basket.

NON-FINANCIAL KPIs

Fast increase of orders every year; over 29M in 2023.

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

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Adj. EBITDA up EUR 61M; growth, efficiency and scale.

MediService included since mid-Q2.

	Q4			FY
in millions of euros, adjusted numbers	2092	2023	Better or (worse)	2022	2023	Better or (worse)
Sales	328	531	62.1%	1,204	1,799	49.4%
Gross profit margin	27.8%	22.8%	(5.0) pp	27.5%	24.5%	(3.0) pp
Selling & distribution margin	(23.8)%	(17.0)%	6.8 pp	(24.8)%	(18.7)%	6.1 pp
Administrative cost margin	(3.7)%	(2.8)%	0.9 pp	(3.4)%	(2.9)%	0.5 pp
Adj. EBITDA margin	0.3%	3.1%	2.8 pp	(0.7)%	3.0%	3.7 pp
Adj. EBITDA	1	16	15	(8)	53	61
EBITDA	(0)	13	13	(30)	40	70

Adjustments in FY 2023 EUR 13.5M (FY 2022: EUR 8.1M (non-cash) from non applicability of FRS 3 accounting of the 2022 business acquisitions, remainder are costs of the employee stock options programme (non-cash) and one-off external costs related to projects including acquisitions.

Adj. EBITDA +3.7 pp, DACH margin more than doubled.

Fundamental improvement of 0.6 pp in gross profit margin.

Selling and distribution as percent of sales improved 3 pp.

Free cash flow EUR +8M, total cash balances EUR +24M.

Strategy update and outlook 2024.

Strengthening our European online pharmacy leadership.

• Drive growth of our strong core non-Rx business, comprising OTC and BPC products as well as own brands.

• Unlock the success of our platform strategy through the expansion of NOW! and marketplace to other markets.

• Realise the strategic rationale of our Swiss partnership.

• Maximise our capacity and distribution.

• Become the leading online player in e-Rx.

The e-prescription has finally arrived.

• ➤ Mandatory requirement of e-Rx re-instated by gematik (as of 01 January 2024).
• ▶ Increased acceptance from healthcare professionals ahead of deadline.

• More than 70% of all national health insurance prescriptions in Germany are electronic

• Over 75% of all doctors issue e-prescriptions.

• From the start of 2024 over 95 million e-prescriptions redeemed.

Best positioned for e-Rx. Fully digital version on its way.

STRATEGY UPDATE AND OUTLOOK 2024

Status quo on eHealth-CardLink.

eHealth-CardLink: It's as easy as ABC.

Finance outlook and guidance 2024.

Continued very fast growth expected.

• Strength across all our seven countries driving sales and solid margins.

• First year of full e-Rx (electronic prescriptions) implementation in DACH (Germany).

• ▶ (E)-Rx in 2024 too dynamic to give precise guidance.

Guidance for full-year 2024.

• Total sales to increase to EUR 2.3-2.5 billion, a growth of 30-40%.

• Non-Rx sales growth 15-25%. A
• ▶ MediService expected to grow by mid-single digits.
• Adj. EBITDA margin 2% to 4%. A

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

Time to ask questions.

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Thank you.

0 Annual Report 2023 can be downloaded on our website: www.ir.redcare-pharmacy.com

● SEVENUM I 05 MARCH 2024