Redcare Phamacy Unsp/Adr

Well, thank you very much. And Jasper and I want to welcome everybody to the full year 2021 Schopapertike Europe earnings release call in these truly unprecedented times. Our thoughts are, of course, with the people of Ukraine. And I hope, I assume you're all joining us in hoping for a very quick cessation of all Suffering. By the way, a substantial delivery of urgently needed pharmacy products will be on its way from Shop Apotheke to the Ukraine tomorrow. And just to preempt a question that you might have, no, Shop Apotheke is not directly impacted by the war in Phamacy Unsp Adr Admitably, this is not an easy transition, but we as Shop Apotheke, we have some really good news that we want to share with you about what we did last year and what we're going to do this year and what 2022 is going to look like. We are once again broadcasting live from our headquarters here in Severnum, which is a fully BREEAM certified facility. At the end of our our presentation, you will, of course, have the opportunity to ask questions. Please use the dial-in numbers that have been provided together with the invitation. We'll start by walking you through the financial performance of last year, and we're going to share with you some of the e-commerce typical KPIs. Then we'll give an update on where we are with the execution of Shop Apotheker's strategy. And then Jasper is going to conclude by sharing with you what the outlook and the guidance for 2022 and beyond is going to look like. So how did we do last year? Last year, when I look back, it was a very good year for Shop Apotheke. We had experienced some challenges, but most importantly, we overcame these challenges very quickly. and we marked an important milestone last year. We joined, if I dare to say so, we joined the club of sales billionaires last year with sales of 1 billion 60 million euros. In total, our sales were up by 9.5%. International went up our international segment by around 40%. DACH went up by around 4%. In Germany, and I think that is a remarkable achievement, we significantly increased our market share in the non-prescription market. So our growth outpaced That is probably not a surprise, the growth of the non-prescription overall pharmacy market in Germany last year, but we also significantly, by a wide margin, exceeded the growth of the non-ARICS online pharmacy market in Germany. Based on our own estimates, by the way, the same is true for Shop Apotheke as other large markets, notably Austria, Belgium and Italy. The adjusted EBITDA margin came in at a little bit more than negative 5 million euros last year. This translates into an adjusted EBITDA margin of minus 0.5%. This compares to the last guidance that we had provided to the markets, which was aiming for an adjusted EBITDA margin of minus 1.0%. Very important. We are a growth company and we grow through our customers. Our active customer base went up by 25% of 1.6 million. And by the end of last year, we had reached an active customer base of 7.9 million. As of today, of course, we have surpassed the 8 million mark by a significant margin. In terms of our strategy execution, we remain fully on track and we are ready for e-prescriptions. Of course, we're going to talk about all of these components more when we come to the strategy update with the conclusion of our move from our old pharmacy and our old distribution facility to our new headquarters, which hosts our new pharmacy and our new distribution facility. We are in a position to support the growth ambition of Shop Apotheke Europe in the future. We certainly will have ample capacity over the next two years to participate in the ERX opportunity. With the acquisitions of Smart Patient and Med App earlier last year, we significantly expanded our capabilities in the area of digital health services with an emphasis, a focus on digital medication management. Since the middle of last year, since June, we are in a position to offer same day delivery services through our partner pharmacies under the label Shop Apotheke and now in all 13 metropolitan areas in Germany. By the way, late last year, we also started our Now service in Vienna in Austria, and we are very excited about the launch of our own marketplace in Germany to be able to offer a much broader assortment of healthcare and beauty-related products to our more than 8 million customers. So taking a closer look at our two reporting segments, you remember our total sales grew by nine and a half percentage points to over a billion euros. Starting on the right hand side, our international segment consisting again of Italy, France, Belgium and the Netherlands grew by almost 14% exceeded Phamacy Unsp & Adr Phamacy Unsp & Adr Our growth would have been significantly higher, even higher, if we had not been capacity-constrained. We gained market share in the non-ARICS online market in Germany. On the ARICS side, we see a different picture. Our sales decreased by a little bit more than a third. Admittedly, the impact of the RX bonus ban, which came into effect in December 2020, had a more severe impact than we had anticipated. But we also want to state clearly the only driver behind the decline of our Rx business was indeed the Rx bonus ban. We can say this with certainty because we saw a decline in our business with publicly insured patients in Germany, but the business with privately insured patients where we can still pay the Rx bonus continued to grow last year. We remain convinced that the RX bonus ban is a violation of European law, and this will have to be resolved in all likelihood. This will have to be resolved through the legal system. So looking at a couple of e-commerce typical KPIs, we already talked about our customer growth. I just want to emphasize the gray blocks that you see on the left-hand side that lead you from the 6.3 to the 7.9 million active customers at the end of last year. The biggest block here is Q4. We had Q4 in terms of customer growth. New customer growth was indeed a record quarter. We gained more than Phamacy Unsp & Adr Q4 last year, a record-setting quarter. Our net promoter score averaged 68 across the year. If you compare net promoter scores across industries, you know that this is still a very, very strong score, a bit below 2020. Of course, our ambition is to get back to the 70 and beyond in 2021. Our average shopping basket value or AOV, average order value, dropped from 60, a little bit more than 66 euros, to a little bit more than 61 euros. The almost exclusive driver behind the drop of our AOV was the reduced share of our RX business. And if you follow Shop Apotheke, if you have followed Shop Apotheke for quite some time, you know that our average Phamacy Unsp Phamacy Unsp & Adr Our online marketing in order to manage the number of incoming orders to an amount, to a number that we can actually handle. Again, you see a steady increase in November and December. We were at or above 6 million visits per week. And then we see another spike at the beginning of the year when we got to 7 million weekly visits and beyond. Phamacy Unsp Adr In Q4, we were between 30% and 40% growth compared to the same weeks a year ago. By the way, you see a drop in the growth towards the end of the year. The only reason for this drop was because Christmas last year fell completely on a weekend. And with this, Jasper,

Phamacy Unsp& Yeah, if you can go one slide back there. Yeah, just the last comment is if you look at the blue bars year over year growth, the fact that on the left side it is higher, that is because that is cycling when there was no corona in Europe the year before. That's why the growth was very high. Okay, next. Thanks a lot. Yeah. And this has led in total all those customers have led in total to close to 20 Phamacy Unsp & Adr is the low point behind us and very upbeat. Each quarter past year had more than 80% of the orders coming from returning customers. So that's a very healthy level. And on the next slide, we see what those 20 million customers have brought us in financials. So this is the normal slide we always look at with the key financial numbers from sales up to and including the adjusted EBITDA. which was a growth in total of 9.5%. In Q4, our year-over-year growth was 8.8%. And if we just go one level deeper, then you see that everything but RX, which was in total 970 million or 90% of our total sales in 2021, was increasing for the full year by 22%. And actually, the growth was increasing Q4 from 22% to 24%. And the only reason why total growth was lower is the impact of the Rx decline, as Stefan already talked about. Those sales we achieved with an improved gross profit margin that was in quarter 4, 1 percentage points higher than the year before. But later, I have a bridge. And for the full year, 2 and 1 half percentage points. Selling and distribution is including marketing, and that's the reason for the increase. The main reason for the increase you see in Q4, as we reflect with the release of the Q3 numbers, we said we use more marketing. In the end, you see, we did a better performance than we were guiding for, and it resulted in a big increase of market shares, traffic to our website and more customers. Administrative cost as a percentage If you add all the numbers I was just quoting together for the full year, you get to the minus 5% adjusted EBITDA for the full year or minus 0.5%. This slide also allows me to explain to you that there is a relatively large adjustment in the core four numbers of two and a half million. This to me is not a relevant item, but I will explain with our adjustments. It's only the non-cash element of the employee stock option program. As you probably know, it's the limited external expenses related to projects. So that was actually in 2020. But now there is the number three in this quarter four. And the only reason for it is that in the 2021 business acquisitions we did, buying 100% of the shares of MedApp and Smart Patients, We included in the deal structure a regular earn-out in the coming years. And one of the criteria there is that the former sellers need to stay employed. And because of that, if you apply the accounting rules of IFRS 3 very strictly, you have to expense for those despite the fact that in the pure nature, it's a purchase price. And that's also fully supported by our account. All in all, let's go to the more relevant thing, one billion of sales and adjusted EBITDA slightly better than our latest guidance. This is another visualization of the elements we have written in shop apotheke want to be in the upper right, growing fast and profitable. Now what's in your face on this slide is that even in 2021, where we had some challenges, Phamacy Unsp Rx will kick in, we expect that this bubble of Paper Rx will grow and will move to the upper right of the diagram very fast. International, the blue one, is growing even faster than Dagmolnar Rx. Dagmolnar Rx 18%, International was growing 40%. Phamacy Unsp&Adr Phamacy Unsp&Adr Phamacy Unsp&Adr Phamacy Unsp&Adr And the last thing I want to say on this slide, if you look to the total, right, so things grow even much faster, that's our investments in additional future growth margin drivers and USP drivers for us as a company. All in all, in this slide, in 2021, the core of our business growing really fast at positive adjusted UNA margins. Next one, please. The gross margin for total company was up 1%. We discussed that already. for I think the eighth consecutive quarter, we can report better sourcing year over year. There was a significant positive impact from mixed from country and our assortment and other is mainly the non-repeat of negative corona related assortment items we had in 2020. But also year over year, we see that our media income is increasing even faster than our sales did increase. So an improvement of our gross profit margin. And on the next page, please, here's the S&D for the full year, an increase of 4.8%, which is a very significant increase of our cost. Of course, we had an exceptional year in the year 2020, which was the first corona year. But looking into the details, there are two things relevant. First of all, the increase in marketing. We were cycling the very attractive 2020 year and we had our issues as we talked about already this year and we accelerated successfully away from that from Q4, from Q3 to Q4 and that's explaining what you see in marketing here.

All the elements are impacted by a lower average basket.