Zur Rose Group AG

Earnings Release • Aug 15, 2018

H1 2018 Results Conference Call

Today's Presenters

Walter Oberhänsli Founder, Group CEO Marcel Ziwica Group CFO

Business Update

1 year after the IPO:

Fully delivered on growth strategy

1 "Give dynamic to core profit base"

2 "Lead the market in Rx"

3 "Obtain market leadership in OTC & BPC"

4 "Intensify cooperations with insurers"

6 "Acquisitions and international expansion"

5 "Innovate with e-health solutions"

Zur Rose Group

Segment Switzerland

Extension of physician supply business

— Extension of market share from 23.1% in H1 2017 to 24.6% in H1 2018

Segment Switzerland

Roll-out of further shop-in-shop pharmacies after successful launch in 2017

Segment Germany

Strong development of DocMorris KPIs

Zur Rose Group

Notes: 1 Last twelve months ending 30 June of the respective year | 2 Share of orders from existing customers in relation to total number of orders | 3 Number of orders per active customer and year | 4 Basket size equals average value of the purchase per order

Political Discussion

«Spahn: Better fair solution than Rx mail-order ban» Apotheke Adhoc, 18.07.2018

A ban on Rx mail-order would…

• be incompatible with the German constitution and European law(1)
• limit patients freedom of choice

Acquisition of apo-rot's e-commerce business

• Closing of acquisition and integration of operations in Heerlen targeted before the end of the year
• Extension of market leadership and continuation of market consolidation

Market leader in Rx, OTC, Germany and Europe

Note: 1 Pro forma sales 2017 in EURm including sales of Segment Germany, apo-rot, Eurapon and Vitalsana | 2 Pro forma sales 2017 including Segment Switzerland and Promofarma EUR/CHF 1.11

Pooling a significant proportion of operations in Heerlen…

…leading to improved contribution margin(1) for the acquired businesses in the range of 5-10%

Note: 1 Contribution margin including all directly attributable costs, fully phased in by 2021

Acquisitions and International Expansion

Expansion of logistics in Heerlen

— Increased capacity from 10 to up to 50 million parcels per year from mid-2020 onwards — Higher level of automatisation — Reduction of picking cost per parcel(1) by 50%

Acquisition of Promofarma accelerates international expansion and increases techcapabilities

— Leading marketplace for consumer health in Spain — Self-developed microservice based platform — 50% growth rate leading to EURm 19 sales in 2017

Financial Update

Zur Rose Group Sales

Group Sales growing at almost 30%

Segment Switzerland

Sales growing at almost 10% despite regulatory price cuts

Note: 1 Including BlueCare sales of CHFm 2.9

Segment Germany

Impressive growth rate solidifying leadership position in Germany

Profitability

EBITDA development in line with expectations

Zur Rose Group

Note: 1 H1 2018:Segment Germany EBITDA adjusted by CHF 1.6 million M&A related costs and CHF 0.2 million restructuring expenses relating to the transfer of business to Heerlen and expenses related to the internationalisation, Segment Switzerland EBITDA adjusted by CHF 0.2 million IAS 19 expenses, Group EBITDA adjusted by CHF 0.2 million M&A related expenses | H1 2017: Group EBITDA adjusted by CHF 5.3 million IPO related extraordinary costs | 2 Difference between Group EBITDA and sum of Segment CH plus Segment DE equals EBITDA at corporate incl. intercompany eliminations

Outlook

Group Outlook 2018

Outlook 2018 remains unchanged Sales growth of above +20% in local currencies on group level, driven by double-digit organic growth and closed acquisitions

20%

Break-even on EBITDA level adjusted by one-offs

+/- 0

Taking advantage of mid-term profitable growth opportunities prioritized over short-term EBITDA improvement, in order to extend leadership position in a dynamic market environment

Outlook

Mid-term financial targets (2021)

Mid-term financial targets remain unchanged Sales growth Switzerland: Mid single-digit growth rate ~5% 15 – 19%

EBITDA Group: Mid-term margin target of

$$
4-5\%
$$

Sales growth Germany: Organic growth rate in the mid- to high-teens

Growth Initiatives

Zur Rose Group: «Game Changer» in the CHF 146 bn medications market

Sources: Euromonitor, Market sizes for 2016, includes CH, DE, ES, FR, IT, UK Notes: 1 medications include Rx and OTC & BPC, 2015, excl. VAT, 2015 CHF/EUR = 0.92346 2 Online penetration for Rx in Germany | 3 Media products include music, films and books

E-Health Solutions

E-Script on the horizon

Dr. Gottfried Ludewig (BMG): «We can no longer carry out long-term defensive battles to prevent the E-Script.» — German Ministry of Health is pushing E-Health

• German Medical Assembly enacts telemedicine
• E-Script logical next step and part of digital agenda
• Second E-Health law announced to be enacted this year

E-Health Solutions

E-Health platform

• Next level technology
• Increasing entry barrier and basis for growth
• Microservice based architecture allowing for agile product development and flexibility

Acquisitions and

Continuation of growth strategy

1. Lead consolidation in the German OTC e-commerce market International Expansion 2. Platform to target European market

Disclaimer

This presentation (the "Presentation") has been prepared by Zur Rose Group AG ("Zur Rose" and together with its subsidiaries, "we", "us" or the "Group") solely for informational purposes and has not been independently verified and no representation or warranty, express or implied, is made or given by or on behalf of any of the Group. Zur Rose reserves the right to amend or replace the Presentation at any time, and undertakes no obligation to provide the recipients with access to any additional information. Zur Rose shall not be obligated to update or correct the information set forth in the Presentation or to provide any additional information. Nothing in this Presentation is, or should be relied upon as, a promise or representation as to the future.

Certain statements in this Presentation are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions, intense competition in the markets in which the Group operates, costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting the Group's markets, and other factors beyond the control of the Group). Neither Zur Rose nor any of its respective directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak of the date of this Presentation. Statements contained in this Presentation regarding past trends or events should not be taken as a representation that such trends or events will continue in the future.

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