DocMorris AG

Welcome everybody to our H1 26 results conference call. Today with me is Daniel, our CFO, and I'm Walter Hester's CEO. The first half of 26 has been a milestone period for DocMorris, marked by accelerated growth and an outstanding operational execution. Our focus remains on scaling our integrated digital and AI-driven healthcare platform to deliver long-term profitable value. Today's agenda proceeds the highlights of H1 to start with, followed by the business update, financial update and the outlook before we move then to the Q&A session. Let's start with our highlights on slide number four. We delivered a 38% direct growth in H1 accelerating further to 46% in Q2 with an even stronger momentum continuing into July and August. Our active customer base expanded by 1.1 million year-over-year to 12.9 million with teleclinic contributing 1.5 million active users. Digital services grew 71% in H1 and even 80% in Q2 translating directly into an over-proportionate profit increased due to the high margins. The execution of our AIFR strategy is fully on track, expecting a positive earnings contribution in H2 26 and over 15 million Swiss francs in recurring annual net savings by end of 27. And therefore, on the back of this strong commercial momentum, We have confidentially raised our full year 26 financial guidance. DocMorris has successfully transitioned into a unique integrated digital and data health platform serving the 12.9 million active customers. Our high volume online pharmacy remains the core engine, driving the distribution of prescribed medication as well as over-the-counter medication. Our marketplace extends our reach by offering a comprehensive range of health products and health services through trusted partners. Teleclinic, our telemedicine platform, represents a fast-growing, highly scalable take-rate business model that delivers attractive margins. We are unlocking additional monetization opportunities through retail media and driving superior customer engagement and conversion with our AI assistant. Let's move to the assistant on the next slide. We have successfully completed the full rollout of our AI assistant. Health and Shopping Assistant across the entire DocMorris desktop, mobile website and app. The Assistant is experiencing a fast adoption with monthly engaged users and total sessions growing very rapidly. Crucially, we are seeing that the AI Assistant users demonstrate significantly stronger platform interactions and higher conversion rates. This conversational interface is a critical differentiator, helping customers manage their health, including prescriptions, find products, and receive health advice. We are continuously further deploying new features and value-added services to further enhance retention and customer lifetime value on our platform. Let's move to RxNow. Our RX revenue reached a record of €86.9 million in Q2 26, representing a doubling compared to the ERX start in Q2 24. This represents a Q2 year-over-year revenue growth of 45.8%, showcasing the speed of ERX adoption. The sequential growth of 17.2% equal to 12.6 million from Q1 to Q2 reflects a strong momentum that is even further accelerating into the third quarter. Active RX customers grew by 15.6% year-over-year in Q2 with also strong sequential acceleration of 7.1% quarter-over-quarter. We are highly encouraged by these trends, which confirm that DocMorris is a primary destination for digital prescription redemptions. The ERX redemption via digital channels are driving unprecedented customer loyalty, with latest ERX cohorts showing structurally superior retention and order frequency. Latest cohorts are 4.5 times more loyal than legacy paper RX cohorts and two times more loyal than our first ERX cohorts. Also, our average order value for RX increased significantly to €120 in Q226, coming from €119 one year ago. On the next slide, Rx customers generate over 10x the revenue of OTC customers, which also translates into significantly higher customer lifetime value. This is why we are prioritizing the acquisition of new Rx customers over new OTC customers. We have achieved a step-up function reduction in customer acquisition costs, as you can see on this slide, and marketing spend since Q4 2025. This reduction was driven by the removal of high-cost traditional TD ads and out-of-home campaigns and the shift towards efficient digital channels in combination with the extension of co-payments. The additional costs from co-payment exemptions compared to the previous bonus model are relatively small and much more than offset by the savings in the marketing expenses. On slide number 10 you will find an update on the regulatory and pharmacy reform topics. The completed German pharmacy reform provides full regulatory and policy clarity, introducing a step-by-step increase in fixed remuneration for medication from €8.35 to €9, already in place since 1st of July this year, and rising further to €9.50 in January 27. This is accompanied by an increase in the statutory pharmacy discount which rises to 2,07€ in 2027. Under the newly passed Getafau financial reform patient co-payments will rise by 50% in 2027 to a range of 7,50€ to 15€ which will further increase and already does price sensitivity among Publicly Insured Patients While there is a lot of discussions and talk regarding our copayment exemption, we just want to clarify and underline that European and national courts have fully reconfirmed the legality of our Rx bonuses, establishing that our copayment coverage preserves principles of statutory health insurance without creating any medical incentives. Let's move to the non-RX business now. Our non-RX segment continues to provide a solid recurring revenue stream, growing 6.6% in H126 to reach 486 million euros. OTC and ETC products grew by 4% in H1 with growth being actively calibrated by us towards attracting higher margin RX customers as shown before on the slide for RX. We are intentionally managing OTC volumes to focus on margin preservation and profitability rather than low margin discount volumes. digital services, including teleclinic retail media and our marketplace, grew by a significant 71% in H1 and 80% in Q2. The rapid expansion of high margin digital services is also successfully shifting the overall group margin upwards. So let us come now for an update about teleclinic on slide number 12. The revenue of teleclinic grew by 48% to 17.6 million in age one, 26, driven by increased treatment volumes of 51% year over year to 1.3 million, and supported by a further growing number of doctors on the platform who also continuously increase their utilization rates. EBITDA doubled compared to H1-25, underscoring the powerful operational leverage and inherent scalability of our telemedicine business model. Teleclinic is in addition maintaining a strong pipeline of new healthcare and insurance partnerships, significantly broadening our strategic reach across the entire healthcare landscape. And in addition, they have successfully launched an AI-powered doctor appointment booking system, introducing an additional highly scalable pay-per-booking model. And last but not least, in the business update, our retail media platform. DRM advertising has established itself as the undisputed number one healthcare ad network in Germany. In H126, TMR achieved the first time over 10 million euros in net sales, representing a strong year-over-year growth rate of far more than 100%. This business operates at very high profitability, delivering a robust mid-double-digit EBTA margin directly to our bottom line. To mention is that during the World Cup, the Soccer World Cup, we run high impact campaigns across digital TV channels, generating over 250 million highly measurable ad impressions. DocMorris also benefited significantly from this, achieving highly attractive ROAS return on advertising spend through precise targeting, which allowed us to maximize awareness for RX redemption with co-payment exemption. And coincidentally, this happened exactly with the time the regulator decided to increase co-payments starting from 27, making this a widely discussed topic in Germany. In total, we expect this highly profitable data-driven ad engine to remain a major growth and margin lever for DocMorris in the coming years. And with that, I would like to hand over to my colleague Daniel now for the financial update and the outlook.

Thank you, Walter, and also from my end, a very warm welcome to everyone on the call. And it's my pleasure to present you the numbers of our first half performance and then followed up by the updated guidance for 26. If we move to the first slide, which should be known to you, even if there's an addition, because you have added the operating cash flow, since I will come later to that. But let's start with the top line. Revenue delivered double-digit growth of 13.4% in local currency and 10.7% in Swiss francs. While external revenue grew a little bit less with 12.5% in local currency and 9.8% in Swiss francs. The growth was driven by Oryx with a half-year growth of close to 40%, exactly 38.3%, and digital services with a growth of over 70% revenue increase year over year. On the gross margin, gross margin remains more or less stable despite negative impact due to the co-payment. and this negative impact is approximately in the first half year was approximately 50 basis points and therefore the stable gross margin is even more a very good achievement which can come also from digital services which contributed due to the high sales growth relatively more to the top bank gross margin. It's also important to say that this roughly 15 basis points negative impact of the co-payments from the OREG side are more than overcompensated at the bottom line on the UPTA level at the end of the day. A charted EBITDA margin expanded strongly by 350 basis points to minus 1.8% year over year. As mentioned, we have added operating cash flow, which also showed a very remarkable development. The operating cash flow improved by almost 35 million Swiss francs to now minus 21.1 million in the first half of 26. With that, let's go to the KPIs. Over here, a very friendly or very nice picture of development. As you can see, customer acquisition accelerated across our business units, mainly in Oryx, OTC, but also very strongly in teleclinic with 1.1 million new customers year over year, bringing the total of active customers to roughly 13 million. In the first half of the year, the share of new Oryx customers increased significantly and that's very important where of the majority were new ERX customers besides a minority of OTC and also paper OX customers which switched to, which has become ERX customers. These are the so-called switchers. Active teleclinic customers grew to 1.5 million by the end of the semester. Let's move to the average order value, which also developed very nicely. We saw an increase from 97 to 101 euros. Please bear in mind that that's an average number, and we have clearly seen a further increase by the end of the whole year. OTC kind of very stable over the last period. They stayed at 33 euros. If we look at the order frequency, which is also important, an important KPI, we see that there is an ongoing further increase to 4.1 times. while OTC also remains stable at two times. Repeat order rate, you could argue or in the first instance think that that's kind of a slight decline, that that's a bad trend, but it's quite the opposite. Given the high share of new OX customers, By definition, then, the repeat orders, because the new cohorts, they are assets, the new end could not be in a position to reorder, and that's the reason why, if you would kind of level it out, the repeat order rate would stay at the very high level of high 70%. Let me conclude on this slide as follows. The KPI is clearly on the line, the high value contribution of our new Oryx customers, which basically came in as of March of this year, and translating into increased average order values, higher order frequency, and stable repeat order rates, and which is kind of a very good basis for the future business which we can do with these clients. Let's have a deep dive into the P&L. As said, on top line, the revenue growth of 13.4% clearly exceeded our initial expectations, and as mentioned, mainly driven by orgs and digital services. The good thing is that we really had the proof that the operational leverage does work. And as you have seen, despite the substantial growth, personal expense ratio improved by 80 basis points. The marketing efficiency even translated into 310 basis points improvement of the marketing efficiency ratio. and that was kind of backed by a 14 million decrease in marketing expenses year over year. And even distribution expenses which everyone would expect to increase given the high fuel prices, could lower them by 10 basis points and that just shows that we all there had kind of tailwind from our operational leverage which we have built on. Adjusted EBTA improved substantially by almost 18 million year over year. The reported EBTA improved by 7.1 million But of course, their substantial one-off costs of 9.1 million have to be taken into account here. This 9.1 million adjustments, where do they come from? In the first half of the year, we recorded a total of 7.6 million of restructure costs, which were caused by two projects. First of all, the closure of the Ludwigshausen warehouse by the end of March of this year. And then secondly, the bigger part of our communicated AI-first strategy in June, which sums up both together at 10.6 million restructuring costs. The finance result looks also on the first view not a little bit ugly, but keep in mind, and that's also written in the half-year report, that almost $5 million out of the $10.6 million are FX-related and, as usual, non-cash. It's not a non-cash. It has no non-cash impact. why the reason is that that's the kind of the FX impact which will occur on our intercompany loans given that our companies in Swiss francs and intercompany loans are on Euro and given the decline in Euro that results then always in a non-cash FX loss also even not mentioned here on the table because it's a small position, but just to take that off the table, interest rate, interest expense, excuse me, taxes have increased by $1 million. I think to pay taxes, that's never ever something that you'd appreciate, but on the other hand, that just shows that we have already some entities which are generating net profit and revenue and the reason is that we are talking about teleclinic which has to pay since last year taxes of course there are a lot of huge taxes carried forward in Germany but please bear in mind that different to Switzerland where you can total 100% in Germany it's a 60-40 ratio and that's the reason why always 40% of taxes you have to pay but this is the benefit that these taxes carry forward or last forever while in Switzerland they will fall apart after nine years. On the next slide If we look at the balance sheet, I think the most important thing to mention is our strong liquidity position of almost 100 million, which provides us with a constant liquidity buffer to reach free cash flow break-even in the course of 27 and beyond. Also, What I'd like to mention are the receivables, which increased substantially. I think part of it is due to the high growth and the higher share of the ORIGs, ORIGs in revenues. As you know, ORIGs has become receivables or receivables almost one month, 20 to 25 days, while on the OTC you even have kind of negative networking capital because you pay your suppliers once you have already received the cash from your customers. And this has kind of an impact of roughly $8 million in the first half, and the other impacts were one of the effects which won't occur going forward. net debt increased by 36 million to 174 million, while the group balance sheet remains very solid with a healthy equity ratio of 46%. Overall financial flexibility remains well aligned with our medium term operational roadmap. The next slide should also be known to you, the two metrics, the indirect cost ratio and the net working capital. Overall, our indirect cost ratio improved by 20 basis points year over year. Very remarkable is that in the online pharmacy, meaning OCC, ORIX, the indirect cost ratio could substantially be reduced, being on absolute but also relative levels. While on our digital services, we made some investments into the platform, the fast-growing platform to cope with the fast-growing, the fast growth of especially teleclinic and retail media. The implementation of our AI-first strategy will have an additional positive impact on our indirect costs, which is not yet reflected here, and that will happen over the next 18 months as an additional pattern to the only course of business indirect cost management. The net virtual capital on the right hand chart expanded by 40 basis points year over year, which means, as I said, mainly driven by the higher share of ONIX revenues, which has kind of an increase of the accounts receivables as a consequence. And I mentioned the negative impact on the network cattle is roughly 8 million Swiss francs. Having said this, we are maintaining active working cattle management to optimize ratios as revenue, as our revenues will further scale. Let's have a quick look at our AI-FIRST strategy. As you know, we have by the end of June announced our AI-first strategy and we are very pleased to communicate at this point in time that we are fully on track to capture this above 50 million of recurring savings fully phased in by the end of 2027. All savings will directly translate into free cash flow with roughly 75% hitting also the APTTA level. The balance, the 25% balance being lower tech development costs, which is a huge substantial part of the AI-first strategy, which you know are capitalized and therefore are kind of have a cash impact, but not an impact on EVTA, and that's the reason why the cash impact is higher than the impact on the EBITDA level. In the course of the announcement we have executed the layoff of the people and we have at this point in time dismissed over 100 FTEs which was kind of as announced the plan and that has now been fully executed. By the end of 27, we assume annual capex savings of over 5 million. That's also mainly in the tech area, where we need much less coders, given that the AI tools can do that by themselves much faster and at equal efficiency or even higher efficiency, but also kind of quality level. As a consequence, we have lowered our capex guidance for 26, which was around 30 million to below 30 million. The one-time restructuring expenses of 4.3 million in relation to the AI-first strategy, which we have booked in Q2. will be largely offset in the second half of 26 given this kind of savings which we can already realize in the second half of this year. Now let's move to the second part of the presentation to the update of the guidance and especially to the overarching targets of this year to achieve EBTA breakeven in the course of 26. Also, kind of a chart which should be common to you or known to you. We have added the Q2 EBITDA performance of minus 4.6 million and also refined the coming quarters. it's more or less exactly the same figures. We have not done any bigger deviations. Therefore, that shows that the planning wasn't that bad at this end. But having said this, we are even more comfortable that we will reach the EBTA break even. You see that the dark green, that's basically the midpoint, kind of the let's say the safe side and then we have some deviation to the low end and the top end and it's clear that Q4 will be EBTA positive and on Q3 we are working to get close to already being EBTA positive. I think first of all the achievements which we realized in the first half but then also very important the few weeks since then and up to today show the continuation of the strong trend which we have seen due to and even despite holiday season some further acceleration and that's why we all have our confidence is coming from. Then thinking already into 2027 for the next milestone is to achieve free cash flow break even we have and well knowing that the breaking cash flow is does not equal free cash flow but just to show it's a starting point to come to free cash flow the operating cash flow development there you see a remarkable development year over year coming from almost minus 56 million to minus 33 in the second half last year to minus 21 million and also there will be the same trend will be ongoing so that we will have a very good and strong starting base into 27 to tackle then the free cash flow break even in the course of the year 27. Where does this EBTA operating cash flow improvements are coming from? First of all, clearly EBTA, the EBTA improvement but then also driven by lower interest expenses, which helps there to drive the operational cash flow. With that, let's come to the slide with the official guidance, and I provide you also the draft guidance. company, the hard guidance that you also can find in our leaderies this morning. On the three metrics we put forward in March when we guided for the financial year 26, top line, and here we are talking external revenues, We guided to low teens, which is somewhere in the area of 3% to 12% in our interpretation. And we now narrowed and increased the range to 9% to 13%, coming from 12.5% by the end of the first half of the year. Adjusted EBTA, we also substantially narrowed down the range from minus 10 to minus 25 to minus 10 to minus 17.5 million, which implies at the best end basically kind of positive EBTA for the second half, but clearly skewed towards negative. kind of still slightly negative EVJ for the second half if you kind of put the minus 10.9 million EVJ for the first half into this range. CapEx, I already mentioned, we lowered from around 30, which was kind of rather 30 plus, now to below 30 million. and I think that also will be something which will stay and will have a positive impact going forward. As mentioned, of course, we reconfirm EPTA break-even in the course of 26 and free cash flow break-even in the course of 27 and also our mid-term profits remain unchanged with roughly 15% revenue growth 8% EBJ margin and roughly 30 million capex per year but you have my comments in relation to the capex and we will have a close look at it when we look at the mid-term guidance the next time. Very important that the soft guidance to the to the top line growth of 9 to 13% basically the same patterns which we provided to you in March Oryx has developed much more favor than we thought and is still developing very strongly that's the reason why we raised the self-guidance from around 20% growth to around 40% growth, which is already on the line with Q2 with over 40% quarterly growth. On the OTC, we keep the sales guidance with mid-single pitches based on the comments Walter made that we are really kind of managing profitability and customer quality. and digital services we guided before softly kind of mid double digit which translated at this time to 40 to 60 percent and now we specify to digital services will grow above 50 percent and with that thank you very much for your attention and

We already have a few questions in the queue. The first one goes to Jan Koch from Deutsche Bank. Please go ahead.

Good morning. Thanks for taking my questions. I have three, if I may, and I would like to take them one by one if possible. The first question is on your Rx strategy, which seems to be paying off. How much did you spend in H1 to cover copayments? And it also appears that you plan to cover the increased copayments next year. How do you ensure that this does not result in loss making orders? And for how long do you plan to cover the full copayment?

Yeah. Thank you, Ann, for this question that everybody is writing who talks to us. So as I have explained before, so the step from the bonus model before to the co-payment is relatively small. So it's not a big step on what we have to spend there. The optimization of the marketing spend is much, much bigger. And therefore, the approach we have chosen is a very economically reasonable approach. And it shows month by month. On the one hand, we have the growth, but also on the other hand, with the results that we have with the RxGrowth, that this is really, for us, the right and good strategy regarding we have never told to the market that we are going to take over the full co-payment for the whole market for everything in next year so and you can be assured that what we will do next year will again be economically reasonable and will support the Rx business but in a way that we also achieve our overall targets which is becoming next year cash positive and we have the mid-term targets that we To achieve them, that's the overlay. This will drive our policy also in the next year, which will communicate if the time is the right one.

Okay, great. And then secondly, on your garden philosophy, the upgraded garden still appears somewhat more conservative than your targets in recent years. You're already at the upper end of your sales guidance after H1, and then you mentioned our export accelerated further in the first week of Q3. And then also based on the chart on slide 22, it seems unlikely that you will reach the full year just EPTA loss of 17.5 million. Are there any potential headwinds worth lagging in H2, or are you just simply taking a more conservative approach here?

That's the end of that question. I think the only bit to burn is the lesson learned was that you do not want to promise and then overdeliver, then the other way around. If you tell me now differently, then we will take it but won't change anything. No, I think more on the current trading. definitely would maybe justify a little stance of more tithing, more aggressive. However, as you said, we do not see any headwinds, but as like with thunderstorms or orcans, you don't see them come and all of a sudden they are there. We do not expect anything, but we also expect I would like to have some buffer to the upper end to the lower end because I'm now with two years and basically every second week there's something new is popping up which looks initially kind of threatening but but we always get away with it and get around with it and therefore I think we are just not in a business which is going straight and smoothly and therefore we definitely have built in to both ends a little bit of possibility.

Great. That sounds good. And then lastly, did the recent heat wave have any impact on your OTC or your RX businesses?

On the OTC, of course, it had an impact, but throughout the year this will be again compensated. On the RX, as also mentioned, we see further acceleration in July and August, so I think that The need for medication based on the prescribed medication on chronic, there is not a negative one on that angle, but it's nothing that would change our view on the full year. Okay, great. Thank you. Thank you.

Thank you very much. The next question is from Urs Kunz, research partner.

Good morning and thanks for taking my questions. I have also three questions. First question is again regarding your guidance on the attractive G80 range. Could you elaborate a little bit? Is the range dependent on the growth or are there other things that make it more being 10 or 17.5 million? then the second question is just a short one on the adjustments in H1 where 9.1 million is this all for the whole year or do we have to expect more in H2 and the last question would be on transport costs you mentioned somewhere in the slide that they are up 20 cents are you confident that this 20 cents is enough to fulfill all requirements that we see that are, yeah, you see now, yeah.

Okay, let me start with the first question. EVTA guidance, I think we, that's clearly devised on our amended forecast, the budget, because we have rolling forecast there. which has kind of the self-guidance, the top-line growth, as it's underlined, component, and that's derived from them, and if I think that happens, then I think that's somehow calibrated to the midpoint, to the guidance, and if we are kind of better or worse, then we have a deviation within the range, but I think it's definitely a bit of a top line, but it's also kind of the execution of our cost measures that this will run as planned for the time being that works out perfectly. and I think these are basically the main drivers of the EBTA guidance. The second question, adjustments in H2, which we already know, because otherwise we should need to disclose it. I think there won't be in that magnitude the high can pull that out, maybe a few hundred thousand or two million, but nothing more. What was the third question? Yeah, they are factored in, transport costs, but this additional 20 euro cents, they were not yet effective in the first half, therefore, but for the second half, that's fully factored in and taken care of, and there should not be any negative surprises on that end.

And you're confident that this is enough for all the requirements, be it temperature things, signal trusting, so to cover it?

Yes, yeah. That's mainly the signature that you have to reach. And then we have that negotiated with the logistic providers, and that's the reason why we are very confident on the cost.

Okay, thanks a lot.

Next question goes to Sebastian for UBS.

Hello, I've got three questions. I also would ask them one by one. The first one is on the marketing spending. In terms of exit rates, can you give us a little bit of an indication, how was it in the end of the first half, and what is the sort of essential states, the number that is the one that you're aiming for going forward?

I didn't get the first part of the question. What is the exit rate?

exit marketing spending so in that sense what you have seen a 5.8 for the full first half was it in June or in May more like closer to the 5% or was it closer to 4% or was it actually above the 5.8 to have a little bit of an understanding what's the 5.8 verse essentially I think you have to take into consideration that basically January, February there were

there was no co-payment only on the MedTax brand and therefore the half year does not show that the full half year is only four out of six months but I think you can therefore you should maybe slightly keep it as it is or slightly increase it but I think that for the time being that seems to be a reasonable run rate for the second half of the year and then from 27 onwards as Walter mentioned we are about to define our Oryx co-payment strategy and therefore any statement here would not be backed. Therefore, let's focus on the second half of 26, where you can assume more or less the same marketing ratio.

Got it. Many thanks. My second question would be on the network and capital side. Do you see that as a sort of a headwind or a tailwind in the second half?

The second half, I see it as a tailwind. because of course we assume that maybe the relative size could then slightly increase but we all have initiated measures and we will initiate further measures and The half year, it's always kind of, from a network-heavy point of view, a little bit worse than the end of the year. And therefore, I assume kind of a neutral to slightly positive trend, but rather neutral.

Got it. Thanks. My third question would be on the contribution margin. You in the past have given some indications where you're aiming for and therefore to have a bit of a market-to-market, so to say. Can you give us a bit of a sense there, what is the contribution margin after fulfillment costs at the moment, at least in the ballpark, for ARICs, OTC, digital surveys, and then on a group level, if possible?

I think all our cyber-friendly competitors will be very interested in these things and know that they're something which we... would not like to disclose because that's highly relevant from a competition point of view, but we can have kind of a deep dive in a smaller round, and then we can provide you with a little bit of guidance there.

Got it. Many thanks. I will be happy to go back to the queue.

Thank you very much. The next question is from Ramon Huber in Limat Capital.

I would have two questions. First is, like you're telling that even accelerated after the end of June, the RX sales, you see that as percentage-wise, because like the Q3 last year was compared to Q2 also very strong. So we see percentage-wise even better than what we have seen in Q2.

indicated in Q2 it was 46% and it continued to further grow percentage wise in July and August so far okay and then coming back to the guidance so what has to happen that at the end you get lower than this 10 million you know when you take your

parts, bars you talked about that you tried to work getting closely already in Q3 to every day flat or slightly negative so what had to happen then in Q4 that you get below 10 million in the negative case I think basically

do we have to find kind of a one additional million? No. I think it's 2-4 is always a good quarter, and I think let's say that the basis, whether we are rather going to the aggressive or the lower or the higher end of the range, is definitely Q3, because Q3 is extremely difficult to predict. It's holiday season, now we have this heat wave, which is what's kind of had no impact on the digitalization of Oryx, but the OTC could have been better, and Let's see how Q3 turns out, because Q4 is much more predictable and manageable, and Q3 will lay the foundation to where we will end up in our EBJ range.

Okay, but RX definitely will help, then.

RX always helps. Not only today, but... And then what we see is we...

We really have a good momentum, be it in Rx, be it in Teleclinic, be it in retail, media, marketplace, anyway. The costs are managed extremely tight. We have announced in June the layoffs, which all have already been executed, so we will see also there the results in the second half of the year. Daniel mentioned before that the past learned us to be cautious with the guidance and of course we tried to be at the good end but as Daniel said let's now accomplish Q3 we will communicate then after Q3 and then let's accomplish Q4 and talk again then about where we end this year.

Thank you.

Question goes to Guillaume Galland from Berkeley. Go ahead.

Hi, sorry. Hi, Daniel. I have three questions, if that's fine. The first one is on non-Rx. It feels like it's been growing 4% in G2. on the OTC side. We're looking at the end market trends in July. It's slightly tougher, so any color here would be helpful. And also thinking into H2, so a Q4 has tougher comps. It was a pretty strong quarter for you last year, so you should do something around low single digits in Q4. My second question is around customer acquisition costs. If you could give some color around the trends there, how it's improved beyond your Thank you. Sorry, your connection was quite bad. Could you please repeat the third question? Yes, the third question was on the financing and the converts. When looking at the 20-day converts, they are well in the money. So I just wanted a quick update on the capital allocation policy and actually the partnership. Very important. Thank you.

Thank you. Let's go to the last question, the 20-day conversion. Yes, you're right. I think it trades roughly 150, 160%, and it's full equity. I think we, not a year ago, I think we launched it, and we will, of course, we evaluate our options, what we can do with it. Unfortunately, it has no soft call in it because the maturity is only three years. but I think first of all it's a comfortable situation because basically we consider it as equity and also provides us with kind of optionality which we will take into consideration and make our heads around it.

The second one regarding customer acquisition costs as you have seen on slide number 9 we really have optimized and driven down the customer acquisition cost to a really low level and we continue to further optimize of course but we think at that level in combination with the code payment exemption we have a very good a very good base to further accelerate growth and also, yeah, continue the path that has started a few months ago with Alex. And the first question... Yeah, on the OTC on the market this year, The market in the first half year was also around 3.5 to 4%. The overall market growth, so we are at the same level as we steered to that level. At the end, the reason I explained before, we focus on profitable and the long-term more profitable Rx customers. And so OTC, we We see a continuation that the overall market continues to grow low single digit percentage on telemedicine. We have seen the growth there and this will definitely continue. Telemedicine will become more and more important also in the standard care in Germany. So there the trend very much goes further, might even increase. and also on retail media as we are really at the forefront there and in Europe, mainly in Germany, retail media is quite a young discipline. Also there, we see a strong upward trend also in the next years. Does this answer your questions, Guillaume?

Yes, thank you. Thank you very much.

Thank you very much. The next question goes to Gianmarco Vero from ZKB. Please go ahead.

Thank you. Good afternoon, everyone. Just two questions from my side. So first of all, You mentioned in the beginning of mid-March that you have there also combined development teams to also improve the traffic, also the customer engagement and customer loyalty on your platform. So besides the health companion, is there anything more to come also out of this partnership that might roll out in the second half of this year? And then the second question is just a nitty-gritty one on the auto-operating income. last half year you see that there are 4.4 million auto operating income now it's only half a million is there any change is there more to come in the second half any seasonalities in there or is the normal run rate on an annual basis roughly 1 million of auto operating income that you expect there thank you I thought this last one just to get it out of the

I think last year, remember, that was also an EPTA adjustment. We had the sale of two non-operational real estate, being the facility, the warehouse in Halle, and then the property in Schleckborn, which accounted for 3.5 million and what you that went into other operating income and what you see in this year there's no exceptional operational income and the half a million or one million on a yearly basis is kind of a slightly growing pace there and you can take this one million for the full year.

The first question about the companion. So for us it is really a very strategic asset that we have built and launched last year and now we have rolled it out over all the DocMorris platform and we see really that the acceptance of the customers is very good and the engagement of the users making use of the assistant is very good, because it's a shopping assistant, it's a health assistant, it's an assistant for customer service, so it's really a 360 degree assistant, and we see already now, we see a relevant impact on all our main KPIs, and we further develop, so we are preparing to roll out further services, which again will increase engagement. We are focusing also on specific chronic diseases that we will reinforce via the platform and with the help of the assistant. So yeah, there is a lot of things being deployed week by week, also in the background and we chose which was resolved that are on the line and which will also help in the future It's for us really also a USP, what we have built here. Yeah, sure, thank you.

Thank you very much, everyone, for your participation. With that, we answered all the questions, and I would like to hand over back to your host for the closing remarks.

Yeah, well, thanks a lot again. Thanks to all of you for joining this call, for taking the time. I hope you got the information that is necessary for your assumptions. On our side, we can just say, on our side, the lamps are on green. And we are rapidly advancing with our transformation of the whole platform, of the digital and data health platform, in all regards. We are rapidly executing our AI-first strategy. We see a good, even great momentum in Rx digital services. So we control costs really well. We reduce them month by month. And with that, we can just reconfirm we are very confident to achieve also the race guidance 26, and we are very confident to achieve the to become cash positive in the course of 2027. And with that, thanks a lot again, and I wish you all a nice day. Bye-bye.