Redcare Pharmacy N.V.

Investor Presentation • Mar 6, 2023

SEVENUM, 7 MARCH 2023

FULL YEAR 2022 EARNINGS CALL

JASPER EENHORST, CFO. STEFAN FELTENS, CEO.

LIVE FROM OUR HEADQUARTERS IN SEVENUM.

TODAY'S AGENDA.

BUSINESS PERFORMANCE.

REVIEW / UPDATE ON BUSINESS AND STRATEGY.

BUSINESS PERFORMANCE.

HIGHLIGHTS 2022: LOOKING BACK ON A SUCCESSFUL YEAR.

• GUIDANCE MET IN ALL ITS ELEMENTS. TOP AND BOTTOM LINE.
• NON-RX SALES GROWTH 17%; OVERALL SALES GROWTH 14%, PROVING THE ROBUSTNESS OF THE BUSINESS MODEL.

RECORD SALES OF EUR 1.2 BILLION; GROWTH IN ALL COUNTRIES. ACTIVE CUSTOMER BASE UP 1.4M IN 2022 TO 9.3M. HIGH CUSTOMER SATISFACTION (NPS ABOVE 70).

• STRONG EXECUTION AND CONTINUED EFFICIENCY GAINS. Q4 ADJ. EBITDA MARGIN FOR ONGOING OPERATIONS 0.8%, UP 430BPS VS. 2021. FY -0.3%; WITH H1 -1.5% AND H2 0.9%.

• DEVELOPMENT OF ATTRACTIVE AREAS OF GROWTH.

NEW DISTRIBUTION CENTRE IN ITALY, MARKETPLACES IN GERMANY AND AUSTRIA, STRATEGIC INVESTMENT IN QUICK-COMMERCE PLAYER GOPULS (FIRST A), READY FOR E-RX.

• SUSTAINABILITY: DRIVING DE-CARBONISATION.

COMMITTED TO BRINGING EMISSIONS ALONG THE ENTIRE VALUE CHAIN TO NET ZERO.

WELL POSITIONED FOR A SUCCESSFUL 2023.

LOOKING BACK AT 2022 VS. THE GUIDANCE PROVIDED AT THE START OF THE YEAR. GUIDANCE MET IN ALL ITS ELEMENTS.

KEY FINANCIALS. DOUBLE-DIGIT TOTAL SALES GROWTH.

COTINUOUSLY STRONG NET PROMOTER SCORE. ACTIVE CUSTOMER BASE APPROACHING 10 MILLION.

23 MILLION ORDERS. CONTINUED HIGH SHARE FROM RETURNING CUSTOMERS.

KEY FINANCIALS: PROFIT & LOSS. POSITIVE ADJ. EBITDA IN H2.

IN MILLIONS OF EUROS. ADJUSTED NUMBERS FOR THE ONGOING BUSINESS OPERATIONS	Q4 2021	Q4 2022	Better / (Worse) than Q4 2021	Better / (Worse) than H1 2022	12M 2021	12M 2022
Sales	288	328	13.8%		1,060	1,204
Gross profit margin	24.6%	27.8%	3.2 pp	0.7 pp	25.2%	27.5%
Selling & distribution margin	(25.1)%	(23.4)%	1.7 pp	2.1 pp	(22.6)%	(24.5)%
Administrative costs margin	(3.0)%	(3.5)%	(0.5) pp	(0.3) pp	(3.1)%	(3.3)%
Adj. EBITDA margin	(3.5)%	0.8%	4.3 pp	2.3 pp	(0.5)%	(0.3)%
Adj. EBITDA	(10)	3	13		(5)	(4)

Adjustments in 2022 EUR 21.6M: EUR 14.1M (non-cash) from non applicability of IFRS 3 accounting of the 2021 business acquisitions, remainder are costs of the employee stock options programme (non-cash) and one-off external costs related to projects including acquisitions.

KEY FINANCIALS: GROSS PROFIT MARGIN. UP 2.3 PP VS. LAST YEAR'S 12M.

KEY FINANCIALS: SELLING & DISTRIBUTION RATIO. COST EFFICIENCY IN Q4 SIGNIFICANTLY BETTER VS. H1.

KEY FINANCIALS: CASH FLOW. SOLID CASH BALANCE.

REVIEW / UPDATE ON STRATEGY AND BUSINESS.

STRATEGIC ACHIEVEMENTS 2022 AT A GLANCE.

• FURTHER RISE OF CUSTOMER SATISFACTION FROM ALREADY HIGH LEVEL.
• INCREASE IN CAPACITY AND OPERATIONAL EFFICIENCY.
• SUCCESSFUL LAUNCHES OF MARKETPLACES.
• STRONG COMMITMENT TO SUSTAINABILITY.
• PROGRESS MADE TOWARDS NATIONWIDE E-RX IN GERMANY.

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FURTHER RISE OF CUSTOMER SATISFACTION.

• NOW EVEN FASTER DELIVERY ACROSS EUROPE.
• DOUBLE-DIGIT GROWTH STEADILY CONTINUED.
• ACTIVE CUSTOMER BASE UP FROM 7.9M TO 9.3M.
• RETURNING CUSTOMER SHARE IN SALES 4/5.
• HIGH NPS OF 72.
• SUCCESSFUL REBRANDING IN ITALY TO REDCARE.
• SHOP-APOTHEKE.COM CLEAR NO. 1 HEALTHCARE WEBSITE IN GERMANY.

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INCREASED CAPACITY AND OPERATIONAL EFFICIENCY.

• ROBUST AND RELIABLE PERFORMANCE THROUGHOUT THE YEAR.
• CONTINUOUS NEW CUSTOMER ORDER RECORDS.
• OPENING OF ITALIAN DISTRIBUTION CENTRE. 100% OF ITALIAN ORDERS SHIPPED FROM MILAN.

COMMITTED TO 1.5 DEGREES.

STRONG COMMITMENT TO SUSTAINABILITY.

• REDUCTION OF SCOPE 1 AND 2 CARBON EMISSIONS OF 80% ACHIEVED THREE YEARS AHEAD OF PLAN.
• NEW TARGET OF NET ZERO IN 2040.
• MSCI ESG RATING AA.

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UPDATE ON E-RX. PROGRESS MADE. READY FOR MORE.

• MORE THAN 1.3 MILLION E-PRESCRIPTIONS REDEEMED TO DATE. (As of 6 March 2023).
• ON AVERAGE 7,500 E-PRESCRIPTIONS ARE REDEEMED DAILY.
• NATIONWIDE CONTINUOUS INCREASE UNTIL E-RX OBLIGATION (PROBABLY 2024).

READY FOR A FUTURE WITH E-PRESCRIPTIONS.

OUTLOOK AND GUIDANCE.

ADJ. EBITDA MARGIN IN EXCESS OF 8%.

DRIVERS:

• GROSS PROFIT MARGINS.
• MEDIA INCOME.
• MARKETING LOWER AS A PERCENTAGE OF SALES.
• OPERATIONAL AND OVERHEAD EFFICIENCIES.
• SCALE, SPECIFICALLY IN THE INTERNATIONAL SEGMENT.
• E-RX (ELECTRONIC PRESCRIPTIONS).
• MARKETPLACE / PLATFORM.

GUIDANCE FOR FULL YEAR 2023.

Excluding impact from a potential surge in eprescriptions (eRx) in Germany.

10% TO 20% GROWTH IN NON-RX SALES.

• NON-RX ACCOUNTED FOR EUR 1.1 BILLION (90%) OF SALES IN 2022.

FREE CASH FLOW ZERO; BETWEEN EUR -20M AND +20M.

• FCF AS PER THE MOST COMMONLY USED DEFINITION, I.E. CASH FLOW FROM OPERATING ACTIVITIES PLUS INVESTING ACTIVITIES.

0.5% TO 2.5% ADJ. EBITDA MARGIN.

NET ZERO 2040

• YEAR-OVER-YEAR IMPROVEMENTS IN BOTH EFFICIENCIES AND INCOME.

TIME TO ASK QUESTIONS.

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INVITATION.

Invitation to join a webcast on our Brand Strategy on Wednesday, 15 March at 15 h 00 pm (CET).

PRESENTATION & ANNUAL REPORT FOR DOWNLOAD ON shop-apotheke-europe.com

THANK YOU FOR YOUR TIME.