Redcare Phamacy Unsp/Adr

Yes, a very, very welcome to everybody. As you know, it's my first time as CEO of REDCA. And I'm really looking forward to having this meeting together with you. And I think the timing is perfect because we have great numbers on the one hand. We have also great development on the other hand. So looking forward to having a great Q3 presentation together with my colleague Jasper. So if we look into today's agenda, it's pretty straightforward. First, we would like to talk about financial performance and then give an update on business and strategy. And the focus here is on ERX and then outlook and guidance. Next slide. So if we talk about the financial performance, we can see in the nine month great development across the entire P&L. If we start on the sales side, we can see Phamacy Unsp&Adr Phamacy Unsp&Adr which shows Q3 has even been slightly better than the first half of the year. If we look into the non-Rx, we can see that's even a little bit higher. So we have 28% and 27% for the first nine months of the year. If we look into the development of the customers, I mean, we are gaining active customers. We have done this over the last, A couple of years, but also in this quarter, we gained 400,000 additional active customers, ending up now on 10.5 million active customers. If you look year on year, we have added 1.6 million active customers. And at the same time, we kept the Net Promoter Score above 70. But we are not only performing on the, let's say, customer or commercial side, but we are also happy to report Our adjusted EBITDA for Q3 is 3.2%, and year-to-date it's 2.9%, which is 4 percentage points up to the period last year. And also important to say, this happens across the entire components of the P&L. And of course, that leads to a solid cash position. We have for the first nine months of the year a free cash flow and a cash balance well above 200 million. We can confirm the raised guidance, which we raised already in the middle of this year, for the full year 2023. That means a non-array excess between 20 and 30%, net sales 1.7 to 1.8 billion, and adjusted EBITDA on 1.5% to 3%, and a free cash flow from minus 20 to plus 20 million. And I think Jasper will later elaborate a little bit more on that one. The last point I would like to make is on Mediservice. I mean, I mentioned that already earlier. It's our strategic partnership, and it's focused on this market, and here everything is on plan, and we are really happy about this development. If we can go to the next slide, please. Look, I mean, we have double digital growth across the group, as already mentioned. I mean, there are two things I would like to point out. If we take out the Mediservice, you can see that in DACH we have 24.4% sales, which I think is a really good number, outstanding number, and even being topped by our international sales showing 28.7%. If we can please go to the next slide. What we can see is the strong development on our number of active customers. I mean, 10.5 million is a really good starting point also when we think about going into the ERX. And what you can see is in the quarter after quarter, we are adding a substantial number of new customers and a number of active customers. It's 400,000 in this quarter, but also in the previous quarters had been a similar number. But it's not only building the customer file, it is also about having happy customers. And therefore, we are really very proud of our NPS. This is how we measure customer satisfaction Phamacy Unsp & Adr

Thanks a lot, Olaf. So with all those new active customers, how many orders did we do? Well, at the right side of this graph, you see that in total we processed, in quarter three, 7 million orders. And 7 million orders is 1.4 higher than the 5.6 million orders that we did last year. Of course, you see in the graph for all the year the typical seasonality of an online pharmacy, or at least of us, where you see a very strong quarter one and quarter four, and you see Phamacy Unsp& So 7 million orders that we processed were actually, despite the already mentioned significant gain of active customers that ODAF talked about already, but we're coming from 86% and that was an increase compared to the most recent quarters. 86% was coming from returning customers, a reflection of apparently we do something that satisfies our customers. You can go to the next slide, please. Because with all those orders, what are the numbers? To not repeat what Olaf said already at the start, I would like to begin with the sales in Q3. So we increased our sales to 476 million exactly in Q3 this year, which was an increase of 67.1%. Then immediately going to the adjusted EBITDA margin, because the full consolidation of the service, which is impacting both the gross profit margin and adjusted selling and distribution expenses. And I will talk about that later. But first, go to the adjusted EBITDA margin, because they are actually the impact of major service is only small. Actually, there is a smaller downward impact of major service because major service is operating at an adjusted EBITDA margin and even margin between two and 3%. So actually, despite the fact that there's the full consolidation 4 in Q3 last year to 3.2 this year. And if we then go to the year-to-date number, the adjusted IBRA was minus 1% after nine months last year and is plus 2.9, so an increase of indeed four percentage points year over year. Then going to the absolute adjusted IBRA, so one line lower, last year Q3, 1 million, This year, 15 million, an increase of, it's saying here, 14 million routers. Last year, the first nine months, minus nine, an increase of 37, sorry, an increase to 37 of 46 million adjusted EBITDA. To us, this is the most important line as to profitability, the adjusted EBITDA, but for full clarity's sake, there's also the fully loaded EBITDA as the bottom line of this table, and there you actually Phamacy Unsp & And that's because of the rapidly phasing out of the bookings because of the non applicability of either is free related to the business acquisitions, we did in 2021. Phamacy Unsp & I see the footnote it's a business acquisition 2022 but it should be 2021 so just a significant improvement very significant improvement and a fully loaded even even 10 million more improvements. Then in the gross profit margin and SMD, and later more details about the drivers, but SQ3 is the first quarter where May deserves is fully consolidated. And you see that our gross profit margin is standing at 23% for the total group, which is 5 percentage points lower than last year. And the SMD is standing at 70%, which is 7%, 7.3% even better than last year. So all in all, adjusted EBITDA minus 1% last year after 9 months and plus 2.9% this year, year-to-date. Please to the next one. One additional slide here, not only talking about the year-to-date numbers that I already just set for the total group from minus 1 to plus 2.9%, but also this slide to emphasize the segment that we report on always and all the details are also in the interim report as always. The DAF segment 1.4 to 5.2 and actually if you would strip out maybe services will be even above 6% so growing organically 24% in DACH non-organically 67% in DACH but we're also improving our margin by four percentage points there and what is also something that makes us happy as a company at the moment is the execution of our We are growing fast. And in the Netherlands, Belgium, and France, and Italy combined, we actually halved our negative EBITDA margin. They are 40% lower adjusted EBITDA margin negative than the year before from rounded minus 10% to minus 6%. Quickly to the next slide, please. That's the gross profit margin bridge. In black, there are the numbers as I showed already in the table and are any financial statements. So the gross profit margin after nine months at 25.2. No, sorry, I have to say, yeah, 25.2, it's in the P&L. And 23%, I quoted that number already in the third quarter. But then looking at the underlying developments of the excluding mainly service business, and you see that we improved from last year after nine months, 27.4. We say again, we were able to report improvements in our gross profit margin because on an Apple to Apple base, we are 80 basis points better. And that is driven mainly by improving the product mix of the products that we are selling to our consumers. And the development in Q3 is comparable to the year to date number. So gross profit margin improvement. Let's go to the next slide. The same setup here with the reported number in black So marketing improving lower as a percentage of sales compared to last year. But then the other two blocks are also really noteworthy to point out. So despite the inflationary pressure on gas on increasing labor costs, you see actually that we succeeded to have a lower last mile cost as a percentage of sales as a total company and also lower operational labor as a percentage of sales compared to last year. Very happy with the developments here. So that makes me come to the next slide, which is the cash flow bridge. As always, this is including everything, also short-term deposits, et cetera. So cash and cash equivalents. If you look it up in the balance sheet, it's in cash. And it is 95% of the other financial assets. But this is cash. At the start of the year, we had 180. And at the end of quarter, we increased this by 46 million to 226 million. That's the numbers. And I'm happy to hand it over back to you, Olaf. Thank you very much.

So now we would like to talk about business and strategy update. As I said earlier, a quick update on the branding, but then the majority of the focus should be on the e-script. Can please go to the next slide? I mean, as you know, we successfully relaunched the brand on the corporate level. So the Red Cap Pharmacy brand, and we received a lot of positive feedback from all of the stakeholders. And as a consequence, we have done this now also on our workshops in Germany and Austria, incorporating a new look and feel, and at the same time keeping the local hero names. And overall, we see there's also a positive feedback from our customers. And you saw the sales development in Q3. So overall, it looks very well. It was very well received from our customers. If you can please go to the next slide. Yeah, I would like to highlight two points. The one thing is we see an increased acceptance among healthcare professionals in Germany. on the e-script. This is pretty clear. Numbers are going up. And the second message is e-scripts will be mandatory beginning of January 2024. So those are two really great messages. Let's look a little bit more into the details. I mean, we saw that the number of scripts being issued by doctors are going up. Last week, we even had more than 100,000 scripts on one day. But to me, more or at least equally important is that the number of doctors Phamacy Unsp & Adr So, but really great development on the doctor's side. And then the second topic, e-scripts being mandatory. I think it's important to point this out. We don't need any further regulation or something like this. So this is based on the PDSG from 2021 and has been reinstated by the Ministry of Health. Beginning of next year, e-scripts are mandatory in Germany. So that's very good news overall, if we look into the market. If we can please go to the next slide, let's see what that means to our business model. Yes, you know there are different ways to redeem an e-script. We have on the one hand the Ematic app. It's a digital solution, but it has one hurdle. You need to have the EGK, which is the German physical health care card, plus your PIN. And as we all know, almost nobody has the thing. So it's an option, but it's a limited one. And then the second way to get it, it's really the paper printout. So you receive the printout from the doctor, and then you can use the QR code. And that's what you can do currently. Scan it into our app, and then we can fill the script. It's a non-digital solution. It happens on the request of the patient, but it works today. And then there's a third one. which we call the EGK plug-in solution. How does it work? I mean, the patient after having been at the doctor has to go physically into the pharmacy and to present the same card they are using at the doctor's site and have to plug it in into the card reader of the local pharmacy. Here you don't need a PIN and therefore that's a pretty good way to do the business for brick-and-mortar pharmacies. The only thing, it is discriminatory for online pharmacies because, as you can imagine, I mean, you cannot plug in this card, you can't send in the card to us, something like this. So, at the end of the day, this solution clearly takes away the patient choice, the freedom of choice on a pharmacy level. And as you know, that is a fundamental in Germany, but also in most of the European countries, that's the free choice of pharmacy. Phamacy Unsp&Adr to the pharmacy or if you live in rural areas I mean sometimes it's 10 kilometers or more to find a way to the pharmacy so it's really taking away freedom of choice and that is something of course which is not acceptable but the good news is if we please turn to the next page we have developed a solution for that a fully digital solution so we call it the EGK mobile solution which is the digital twin of the plug-in solution for brick-and-mortar pharmacies. How does this work? So you download the app for pharmacy, can be a brick-and-mortar pharmacy, but of course can also be an online pharmacy. Then you present the same physical card in front of your mobile. The mobile is reading that card via NFC technology. And then the pharmacy sees all of the scripts in the app. And then you can, as a customer, you can then choose different services. If you're with an online pharmacy, you can see in terms of if you would like to add something to the basket or different delivery options. If it's a brick and mortar pharmacy, you can look into is the product available or agree on a pickup or something like this. And overall, this is a solution which works for doctors. This is a solution which works for pharmacies, for all pharmacies. And of course, it's a solution which works for consumers. because by the end of the day it's the real first application or let's say use case of the eScript in Germany which is full digital and has added value. If you think about what I explained earlier, if you're immobile or if you're old or elderly or you live in rural areas, you can call your doctor. The doctor can, let's say in the case of a repeat script, the doctor can issue the eScript either without seeing you or by having a video chat with you, then the script is on the e-server and then you can just attach the card to your smartphone and then you can choose all of the options. Delivery from brick and mortar pharmacies, as well as our services as online pharmacies. It's a full digital way and works for everybody. I think this will really help also the acceptance on the e-script in Germany. Let's have a look into the status. Where are we right now on this? The good news is no statutory changes are needed. I mean, this can all happen within the existing legal framework. We are in ongoing talks with Gematik, the Ministry of Health and other stakeholders on data security, for example. And by the end of the day, this is supposed to be a product of Gematik. From a technology perspective, we are ready. But again, we are in talks with Gematik. So purpose is that this becomes an official Gematik product. If we think about timing, our target launch date is the end of this year. And why is that? Because beginning of next year, eScript is going to be mandatory in Germany. And this is a discriminatory freeway for patients to act in the German market. Phamacy Unsp & Adr