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.

Shipping, the cost did not increase per parcel, but international is growing faster than our DAG is growing, and it's the lower basket, as I just said. Operational labor makes totally sense. We were operating two facilities last year when we were shifting to the new location. We also increased our wages, but with the efficiency that we have in the new building, we are confident to offset that in the near future. Next one, please. Then our cash. We started the year with a total of 128 million of cash and other short-term cash balances. By the way, the year before it was 113, so it increased from 113 to 128. And throughout the year 2021, we had a total operating cash flow of a positive 12 million. The operating result was minus 17, but we drove through Phamacy Unsp & Adr a little over a year ago with a 0% coupon of 230, so at the moment we stand at a cash balance of 282 million.

So shifting gears for a few moments, talking about strategy. So Shop Apotheke Europe, of course, we have taken some important steps on our strategic journey last year and will continue on our path from a pure online retailer to Europe's Leading, truly customer-centric e-pharmacy platform. I'm sure you've heard the description, this wording before. Today, we want to take the opportunity to add a little bit more color. What does it mean when a shop apotheker talks about a platform? So we want to put it all in one picture because it also emphasizes the importance of the milestones we reached last year, starting with medication management, an important part of our platform concept. With the acquisition of Smart Patient, with the acquisition of MedApp early last year, we certainly bolstered our capabilities in the area of digital medication management, enabling our customers to better manage their medication therapy at the end of the day to yield better health outcomes. In Q4, Smart Patient also introduced its first disease-specific modules, enabling, allowing the users to better understand their disease and to better manage their disease. Again, aimed at generating, yielding better health outcomes. In terms of our Now service, I already mentioned this, covering 13 areas, this is becoming an increasingly important part of our platform and we'll talk more about this in a moment. Our online doctor services, we are cooperating with one of Europe's leading telemedicine and online doctor service providers, Zava. We've been working with them now for over two years. I think that is a very beneficial cooperation for both sides. By the way, we have purposefully decided to cooperate with online doctor service providers instead of fully integrating them. This gives us more flexibility in the future because we have the the option to work not just with one online doctor service provider, but with several of them if we choose to do so. Resulting from this cooperation, and this means that customers of Shop Apotheke through our platform, through our webshop can now obtain a consultation, a medical online consultation Phamacy Unsp with Zava, customers that are using this opportunity are already today sending hundreds of prescriptions to Shop Apotheke that we can dispense. The marketplace, we're going to talk more about this, we launched it last year, we're very excited, will be a key contributor not just to Shop Apotheke's growth but also to our bottom line Phamacy Unsp & Adr which focuses on pharmacy products including OTC medications. And just a couple of weeks ago, we introduced our next line of own brand products under the name of Skintest, our first a truly sustainable beauty and care line of products. Of course, all of these brands, again, they're developing nicely, but they're generating significantly higher gross margins than third-party products, and these products can only be purchased at shop Apotheke, so it also helps us to increase the customer loyalty. Talking about customer loyalty, our customer loyalty program RedPoints is developing nicely. It's generating tangible benefits in terms of generating, yielding higher customer lifetime values for the customers that use RedPoints versus the customers that don't use RedPoints. And RedPoints is becoming more and more the bracket that encompasses all of the components of Shop Apotheca's e-pharmacy platform. And just to give you two Phamacy Unsp & Adr They can now start collecting red points by using the app. And of course, these red points can be redeemed in our webshop. Another example, users of our Now service through local partner pharmacies, they can now also buy RedCap products when they place Now orders that will be delivered through our local partner pharmacies. So a few more details about a couple of the components of our e-pharmacy platform, starting with the marketplace. I already mentioned we launched this last December. The objective is to offer our now more than 8 million active customers a much broader portfolio of health care and beauty Related Products. We started late last year. Every day, every week, we are adding additional merchants and additional products. We have purposefully chosen the concept of an actively managed marketplace to ensure High Quality Standards. By the end of this year, we started in Germany. Germany will grow substantially over this year and in the future. By the end of this year, we will have launched our marketplace in at least one additional market and we will have prepared for the launch in additional markets over the course of this year. Another really important and increasingly important component of our e-pharmacy platform is, of course, our same day delivery service under the Shop Apotheke Now label. As we mentioned before, we are reaching now through the Now service in 13 metro areas in Germany. 20 million potential customers. We launched our marketplace in the first non-German city late last year in Vienna. By the way, the NPS, the customer satisfaction of customers that use our Now service is even higher than the already high customer satisfaction levels of customers that place their orders directly with Shop Apotheke. really critical, more important, the network of Now Partner Pharmacies is of course an important springboard for us in order to quickly respond and to anticipate changing customer expectations. So throughout 2022, we will strengthen the network of Now Partner Pharmacies we already have. By the way, we will help some of them to scale up their businesses. And secondly, of course, we're going to expand our offering in terms of additional options for existing partner pharmacies. And we're going to make our now service available in other areas as well. electronic prescriptions in Germany. Again, I know that is something that's on top of mind of everybody, certainly also of everybody at Shop Apotheke. So I want to share with you what is our view of the hematic test phase that has been extended, as you all know, and what is the status of Shop Apotheke. Just to make this clear right at the beginning, we have been and we are ready for e-prescriptions in Germany at Shop Apotheke. Most of you probably know that in late January, the shareholders of Gematik agreed on six predefined quality criteria. These quality criteria must be met in order to successfully conclude the test phase of e-prescriptions in Germany. As of, I think, two days ago, 2882 had been redeemed, electronic prescriptions had been redeemed through the telematics infrastructure. The target in terms of the number of e-prescriptions that must have gone through the hematic telematics infrastructure is 30,000. This means 30,000 electronic prescriptions must have must have been dispensed by pharmacists and must have been reimbursed by statutory health insurance. Based on everything we've heard from the political realm in Berlin, and that was very important, very reassuring for us, everybody we talked to emphasized e-prescriptions remain a top priority because they are an important building block for the further digitalization of the healthcare system in Germany. Just one example, the electronic patient file, which is another important component to digitalize the German healthcare system. They are not going to be successful without e-prescriptions. So again, everybody we've been talking to, and we're talking to a lot of people E-prescriptions remain a top priority. They need to come as quickly as possible. But once we go live with E-prescriptions on a broad scale, they need to be working properly. If you follow Shop Apotheke for quite some time, you might remember that starting in October last year, Jasper and I, we communicated that we didn't assume a big bang, a nationwide go-live of E-prescriptions in Germany. At the time, we stated that our assumption was that we would see a significant surge of E-prescriptions starting around Phamacy Unsp & Adr So how is Shop Apotheke doing? As of yesterday, we had processed 85 electronic prescriptions via the telematic infrastructure. The first e-prescriptions had been processed on, I think, Jasper, it was the 26th of October last year, had been processed on the 26th of October. Again, it's still a relatively small number, but more important, all of these e-prescriptions, the 85, they have gone through our processes from the Phamacy Unsp & Adr Everything at Shop Apotheke in terms of e-prescriptions is working. Once we go live, and for competitive reasons, of course, we're not disclosing all the details yet, but once we go live, our customers are going to experience a very convenient, a very compelling End-to-End Customer Journey. We're very confident once a customer experiences the end-to-end customer journey for e-prescriptions at Shop Apotheke, they will continue to send their prescriptions to Shop Apotheke. Yes, I think we all understand, we all acknowledge that the nationwide introduction of e-prescriptions is taking a little bit longer than we had all thought a year ago, but we remain confident at Schropp Apotheke that e-prescriptions are going to happen in Germany this year. We are ready and honestly, we can't wait to get started. Last but certainly not least, Italy. Italy, truly, it is a massive opportunity for shop apothecary. We all know Italy is a large pharmacy market. You know, we're talking about 30 billion euros in terms of the total pharmacy market. This includes non-prescription, but also prescription products. We started serving customers in Italy already in 2018 under the label Shop Pharmacia. Last year, we more than doubled our business in Italy, and we have significant growth expectations going forward. Let me say it differently. Italy will certainly be one of our very important growth drivers going forward. In order to serve our customers in Italy better, we have already announced, we already communicated that in Q3 we're going to open our second distribution facility. Besides the facility that we are broadcasting from today, Phamacy Unsp & Adr to our pharmacy and distribution facility in the Netherlands and eventually back to our customers in Italy. All of this in the future is going to happen within the boundaries of Italy. And again, that is going to result in significant significantly reduced carbon emissions. So I hope that We have been able to share with you a little bit of context in terms of what Shop Apotheke has done, what we intend to do, and hopefully you share our view that we have been on the right path and will continue to be on the right path by executing our strategy. Well, that's what 2022 and beyond is going to look like.

Yeah, thank you. Yeah, very happy to share with you our updated guidance. I will do that in three slides. And let's start with the broad picture. Our mid to long term adjusted EBITDA margin outlook is unchanged. It is an adjusted EBITDA margin in excess of 8%. And then of course, the question is, how do we get from the current level towards this level of an excess of 8%? and starting with the top of the P&L with the gross profit margins. It's in the DNA of Shop Apotheke to provide very attractive prices to our customers and we will continue to do so. But at the same time, we are also seeing significant opportunities to improve our sourcing conditions, to have more direct sourcing, to improve the mix of the product that we are selling and also the impact of our own brands. So that's in the gross profit margin. And then to media income. Media Income is already a significant part of our P&L, but seeing the strength that we are having with our unique positions in our main countries and with the high traffic to our websites and seeing the team that is working on Media Income at Shop Apotheke, we are convinced that Media Income growth will even outpace our fast growth ambitions in the coming years. Number three, a lower marketing as a percentage of sales. Always, you see, If you are growing, everything else being the same, then marketing as a percentage of sales will be lower if you're larger versus if you're smaller. So that's pure marketing skill. But in addition to that, we have our medication management programs to increase loyalty, and that will also benefit marketing as a percentage of sales. Then we have the operational and overhead efficiencies. And on scale, I want to repeat what I International are as attractive as they are in Germany, but it's only the pure scale at the moment why the margins there are lower than they are in DACH region. This is through the P&L and then two elements from a holistic view, very important on top of that. The introduction of ERX. ERX is having better unit economics than even our attractive non-RX business that we do in and also ERX is having very valuable customers. So that's on top of it. And why do we give guidance not of 8%, but in excess of 8%? That has to do with our platform, because everybody who understands how a platform is working, and I hope that the movie has helped to show how concrete it is, will understand if this is successful, how attractive the margin structure of a platform model is. So on this slide, 8% mid to long term, unchanged, and then going to the current year, 2022. It's a full year sales growth. And we give guidance as much as possible that we can in those areas where we think we can provide you guidance because we feel comfortable about it. And that's on the non-RX, a continuation of the double digit growth. In 2018, 19, 2020, 2021, and also this year we expect a continuation of double digit growth of our non-RX and we specify it between 15 and 25% growth. Note that our non-RX was in 2021 90% of our assortment. So this over 1.9 billion we expect to grow between 15 and 25%. On our X we don't give guidance for 2022 and please don't read that but it's just too uncertain what the exact timing is of the rollout of early adoption rates. We don't give guidance on this, but this is of course perhaps at the moment more an art than a science. So that's the full year sales growth. The adjusted EBITDA is in a range of minus 1.5% to plus 1.5%. And important for me to let you know that this includes what we plan to do Phamacy Unsp & Adr Phamacy Unsp Adr On the next one, because today it's already March 2nd, a little bit more color on Q1. Our non-RX, we see that the strong growth continues across our geographies, meaning we see a continuation of double digit growth across our geographies in non-RX. Please take into account that Q1 last year So perhaps the growth in Q1 will be at the lower end of our guidance or perhaps slightly below, but we give a full year guidance of between 50 and 25%. To the margin of Q1, everything else being equal at shop appetite, we have a seasonality being promotional also this year. So take that into account for quarter one and then on our X. We are seeing what we can name the bottoming out of the decline. We even had some analysts saying, hey, congratulations, your total volume of sales of paper from Q3 to Q4 is increasing last year. But they said, no, you cannot draw that conclusion because that's seasonality. So it is a bottoming out of the decline. That's what we are seeing there. And also in looking at Q1, we see that year over year. and we give you a margin range with upside and also potentially some room to maneuver if that is needed. Before we go to the Q&A quickly, I'm very happy to also show you this slide. We were acknowledged by a significant upgrade by MSCI on our ESG rating. We increased from a 5.0 to an 8.1. And as you remember that already from 19 to 20, we make significant improvements in reducing our carbon footprint. So we did that already a year ago. The main driver last year was the acknowledgement of our very strong, both active and passive data privacy of our customers, the governance, how we steer our company, and the management of how we treat our people. And that was acknowledged with an 8.1 in total, meaning that we are in our industry in the top 20% according to the ESG ratings. With this double A on MSCI, we concluded our presentation. So let's please go quickly to the Q&A.

Thank you. And if you'd like to ask a question, please signal by pressing star 1 on your telephone keypad. Again, that is stair one to enter the queue for questions. We'll take our first question from Alexand Thiel of Jefferies. Please go ahead.

Hi, Stefan and Jasper. Good to see you. I hope you can hear me. Three questions from my side and I would like one by one. Firstly, on your guidance, I understand you don't guide on the ERX for the top line, but you bake it into your profitability guidance. Could you walk us through your thinking here and what basically changes if we reach, let's say, the 30,000 scripts by end of April, beginning of May? Would you have to change your full year guidance based on the early data? It looks like there's significant more than 1% currently is going online in the near term future. and follow up on that would be your SAVA cooperation based on my understanding SAVA did more than 250 000 e-scripts last year how much of these are going to you as those scripts are not really on the gematic dashboard the first one is guidance so should i take that one yeah indeed Alexander it's exactly working i think what you were implying one of the reasons for the range is that

Phamacy Unsp Phamacy Unsp So then we will end up everything else being equal at the higher end of our guidance. That's exactly how it's working. That's one of the main underlying reasons for this guidance range. On SAVA.

Alexander, good to hear from you. We have to be a little bit cautious here because it's not just shop apotheca that's impacted if we disclose information, but also the other side, SAVA. So I can only say that we are receiving, and these are indeed electronic prescriptions, but they don't go through the telematics infrastructure. So perhaps we're a little bit more cautious than others in terms of how we present this. But what I can say with full confidence is Every day, we're getting hundreds of prescriptions through the cooperation with SAVA from patients that are using the online doctor service that SAVA offers. But again, because there is another party involved, I'm sure you understand that we cannot disclose specifics there.

Yeah, definitely. Secondly, on your logistic capacity, you stated in your press release that you can now fulfill 35 million orders per year from the Netherlands. and you will add on top with the Italian hub going live. This year you fulfilled around 20 million orders with some soft quarters in the second and third quarter. Could you provide some color on how much capacity will be added with the Italian hub and how much capacity will stand on that, plus how much room you have in the Netherlands to grow for the capacity and also the degree of automation for the Italian hub would be interesting. Thank you.

and we are going to open that already in the middle of the year. But it's a very different animal from the location we are having here. The total CAPEX we needed for the current location, which is highly mechanized, was up to 60 million euros. And if you include operating leases, the capitalization of that even 100 million because we leased the building. In Italy, including all the IT, it's significantly below 10 million euros what we're going to spend in total in Italy. Distribution Center for the Italian markets. It can do a lot of sales, enough for our ambitions there for the coming years. And I think of a hundred millions of sales as a capacity that we have available in Italy, but it's not the mechanized way of working like we have here in the Netherlands. Orders, everything we can say there, 35 million, last time we did 20 million, then we had Italy, its minimum, that one. Phamacy Unsp & Adr and then the density of your order picks that you are doing. I mean, it's just with those volumes, it doesn't make sense. I mean, here we have a thing that's doing billions of sales and there we have a different distribution center and then it doesn't make sense from my perspective to invest in mechanization as much. That's my experience also with online grocery, but often doing it the old fashioned way is more efficient unless you have big volumes like we're having here in the central hub.

Yeah, Alexander, you have been to our old facility, to the previous facility that gives you an idea of what the facility in Italy has gone to be operated initially.

Okay, yeah, but it still had a degree of automation, right? It was like, and now you said, Yeah, we have.

And it's also all digital, just to be clear, it's all digital.

Okay. Lastly, on your current trading, I mean, you put it on the last slide, right? OTC was going quite well in Q4 and spilled over into Q1. I mean, could you comment a little bit on the effects that is still in your business coming from COVID products, flu season? How do you see the France impact and the Italian impact? And lastly, would be on the adjustments for 2022 for M&A transaction. What should we expect there on the adjustment side for earners?

No, limited impact. We've seen our numbers of double digit growth. The fact that we get, for example, some more self tests in Italy in January, that's not moving the needle. It's just a benefit. It's just rounding. The total number in Q1 will be on the lower end of our guidance because of the strong last year. We have a full year guidance of 15 to 25%. We entered the year with all the traffic records that we had to The way how it's accounted for, you know what our purchase prices are, we disclose everything we did already with the half-year results and also in the annual report for both acquisitions. The earn out element of that is basically taken, we need to take We need to take the full first year, half of the second year, one third of the third year, and that's why it's much more in the first year than it's in the second year, and it's only one third in the third year. So it's gonna be significantly below the 22 and a half million that we had this year.

Okay, thank you very much.

It's not any cash impact, it's the accounting, but for us it is actually in the nature also acknowledged

Perfect. Thank you.

Thank you for your question.

Yeah. We'll take our next question from Christopher Jonen of HSBC. Please go ahead.

Yeah. Thanks, guys, for taking my questions to you, Phamacy. So first, looking at the ERX numbers, I know you're probably not going to like the math one-to-one. I understand the sample size with less than 3,000 ERX processed until yesterday. Phamacy Unsp & Adr Even given the small sample size, I mean, how do you view those numbers? Is this primarily driven by a lot of people wanting to try out the new method? Any sort of comments on that would be interesting for me. And then second question on your non-RX growth guidance. Obviously, you didn't guide between segments. But is it fair to assume that even the DACH region would be able to deliver the low end of your guidance, i.e., are you fine with us assuming at least 15% growth in Germany? And then, oh, sorry, a third small one, just on capex for the full year, if you have a view, that would also be helpful. Thank you.

I'll start with the e-prescriptions. I know that we all love to do our math, but I think the numbers are still pretty small overall in terms of us processing 85 prescriptions. I think the sample size is too small to draw any conclusions from this in terms of future market shares. For us, it's important that we can say with confidence that our systems, our processes are working. We can't wait to get started. When you follow the Gematik dashboard, you see it's not just that the number of prescriptions, e-prescriptions, and again, this is important, that have gone through the telematics infrastructure is increasing every day, but the daily, we see an upswing in terms of the daily number. So it's not just that we are on a linear function, but it's better than a linear function. Everything, and I know I'm repeating myself there, everything that we are seeing we assume that in terms of e-prescriptions issued by physicians, we should probably in early Q2 to get to the 30,000 in terms of going through the whole process. E-prescriptions reimbursed by statutory health insurance in Germany were probably approaching the end of Q2 this year. So everything we're seeing so far, for us, it is encouraging. It confirms our thinking that we first conveyed to the markets in October last year.

Yeah. OK. Yeah. Of course, I really like the mathematics that you're doing. Phamacy Unsp Adr I cannot confirm that, but I would be really surprised if we don't grow double digit there. We also have in Italy only a limited number, but we will continue to invest in IT. Numbers of the exact percentage will, of course, depend on the denominator sales, how much it is in total. But I think in a steady state at Shop Appletaken, not necessarily this year, you would look at 3 to 4% of our sales being KPEX.

Okay, thank you.

I would say it's time now, but for me it's okay to continue with questions as long as there are people. Yeah, that's not possible you say? Okay, let's take one more question.

I think it's time to conclude. Again, thank you for your interest and thank you for your time in Shop Apotheke. I'm sure many of you have more questions. You know how to reach Jasper or me, so please feel free to do this. We are excited about 2022 because a lot of the work that has been done, not just last year, but starting much, much earlier, will finally come to fruition in 2022. ePrescriptions, our marketplace, our now-programmed digital medication services. Hopefully, you walk away from this call with at least a better understanding of what platform at Shop Apotheke means. And we'll talk more about this in the future. But at this point of time, let's conclude the call. Again, I'm going back to the very beginning. Phamacy Unsp & Adr