Redcare Phamacy Unsp/Adr

Welcome to the SHOP Apotheca Q1 2022 earnings release presentation. This conference is being recorded. At this time, I would like to turn the conference over to Stefan Seltzen. Please go ahead.

Thank you very much, operator, and good morning to everybody, Jasper and I. We welcome you to SHOP Apotheca's Q1 2022 earnings release call. Before we get into the details, we want to take a moment to recognize and to remember that while we are having the earnings call a little bit further east, a terrible war is continuing to ravage Ukraine at this point of time. Our thoughts and prayers are with all the people that are suffering from this terrible war. Well, what are we going to share with you today? Jasper and I are going to start with an overview of our financial performance, operational performance over the first three months of this year. Then just on a couple of strategic topics, we're going to give you an update. And at the end, Jasper is going to talk about the outlook for the remainder of the year. I can already tell you that we are going to confirm the guidance that we just provided a couple of months ago to you. At the end of our presentation or after our presentation, rest assured, we're going to have enough time for your questions. Well, what were some of the highlights of the first quarter? Our non-Rx growth amounted to 15% and this needs to be seen in comparison or on top of the strong growth in Q1 2021 when our top line expanded by 22%. In all of our markets, at least in the markets for which we have reliable and valid market data, we have seen a notable increase of shop apothekers' market shares. Our ARIC sales have stabilized, or as we sometimes refer to it, they have bottomed out at around 10 million per quarter. In terms of our bottom line, our adjusted operating results came in at minus 4 million euros or minus 1.4% of net sales. This is an improvement versus Q4 last year, but it's a little bit of a deterioration compared to a year ago and Jasper is going to talk more about this. Most importantly, our Q1 EBITDA is fully in line with our guidance for the full year. Our operating cash flow added up to a positive 24 million euros driven by continued favorable development in our working capital, most notably a reduction of our inventory levels and an increase of our payables combined with a bit of seasonality. The highlight of the first quarter was a record customer satisfaction level with an NPS of 73. on the smooth operations in our new pharmacy and distribution facility here in Severnum. By the way, in the first quarter, we also set another record in the number of orders, customer orders processed in a single day, which exceeded 110,000. In terms of our customers, our active customer count went up in the first quarter by around 400,000 Phamacy Unsp & Adr Phamacy Unsp & Adr with acquiring First A, one of the leading quick commerce players in the pharmacy space. First A will be an important cornerstone for us to ensure that we will continue to be able to address all of the relevant Our total sales went up by 7.3%, reaching 305 million euros. When we look at the two reporting segments, the DAF segment went up by 2%. This is, of course, a blend of a solid non-RX growth of 10% and a decline of our RX business of around 33%. Even though the RX bonus band came into effect on the 15th of December 2020, we all remember that we didn't see the full effect of the RX bonus band until later in 2021. So again, the RX bonus band is the driver Phamacy Unsp & Adr in Q1 last year. So quarterly sales of our international segment are now at around 70 million euros. Looking at some of our KPIs, I already mentioned the active customer base went up compared to a year ago by 1.5 million. So that's, of course, purely organic growth, 1.5 million or 22%. I think I already Phamacy Unsp & Adr was certainly the case in the first quarter. And as I already mentioned, the pharmacy and the distribution facility is now really working smoothly here in Sevenon. A high IPS or a high NPS, of course, translates right into our P&L. Happy customers are returning customers, resulting in Phamacy Unsp and Marketing Resources. Looking at our average basket value, the average basket value dropped from around 63.5 euros a year ago to around 57 euros. Phamacy Unsp The main driver, not the only driver, but the main driver behind the reduction of our AOV was the decline of our RX business and the RX basket is significantly higher than an average non-RX basket Phamacy Unsp & Adr web traffic all the visits to shop Apotheke's websites in Germany and all of the other markets you see here with the green line on the right hand side throughout Q1 it was between seven and eight million visitors or visits that is a notable increase compared to even Q4 last year which was already you know a strong quarter in terms of our web traffic when you look at the year-over-year growth in comparison to the exact same week a year ago. Here, indicated with the blue bars, you saw that throughout Q1, our growth, year-over-year growth, was at or above 30%. According to similar web, in March, Shop Apotheker's website in Germany was the most frequently visited e-pharmacy website. That is probably not a surprise. We have mentioned this before, but more Phamacy Unsp

Phamacy Unsp & Adr If you look at this slide, then you see that in 2019, we for the first time achieved 3 million orders per quarter. In 2020, 4 million. Last year, it was around 5 million orders. And then this quarter, we crossed the 6 million customer orders for the first time. You mentioned already, Stéphane, that we achieved more than 80% of all the orders that you see here came from returning customers. Next slide, please, Karwin. Thank you. And then what financials did we produce with those 6 million orders? On this slide, the customary P&L financials on one page from sales up to and including the EBDA. The sales ended up at 305 million, and the adjusted EBITDA margin was a minus 1.4. If I start with the top line sales, they increased by 21 million to 305, which was a 7.3% increase, but also compared to quarter four, we increased by 5.8%, and that absorbs the impact of, for example, that February has fewer days than an average month. The Gross Profit Margin and the SMD. In a minute I will show you in the variance bridge the year-over-year change, but now already on a high level on the total company perspective. percentage points compared to the most recent past quarter for 2021. SMD as a percentage of sales was 25%. That was a significant increase compared to last year. Please remember that last year was a full lockdown quarter and also included significantly more Rx sales than we had this year. Administrative expenses as a percentage of sales at 2.9% were stable year over year and slightly improved compared to the past quarter. And if you add up all the numbers I just quoted, then the adjusted EBDA in absolute millions of euros was minus 4 million. That was 10 billion lower than last year. And it was an increase, an improvement of 6 million compared to quarter four. Margin minus 1.2%. If you look at the adjustments, the adjusted EBDA last year was 6 million and EBDA was 3 million. So adjustments were 3 million. This year from minus 4 to minus 11 is 7 million. This is not an increase because we want to show a nice adjusted EBDA number. No, we continue to be very conservative in the use of adjustments. The only reason for the increase, namely the 4 million increase, Phamacy Unsp & Adr Phamacy Unsp Phamacy Unsp & Adr Phamacy Unsp & Adr Phamacy Unsp & Adr Phamacy Unsp But this is also number three, the total company perspective and international is growing even faster at 30% than that is growing and in the mix in total. Phamacy Unsp & Adr to the past quarter. All in all, S&D as a percentage of sales, 25%, a slight improvement versus the prior quarter. And with that, we go to the next slide because what is this doing to our cash position? We started quarter one with 282 million of cash and cash equivalents and ended the quarter at a 9 million higher level of 291 million. Phamacy Unsp Adr Phamacy Unsp Adr Pham in Italy and the financing cash flows of 3 million also includes our lease payments. All in all, slight increase of our already robust cash position in the quarter. Back to you Stefan.