Redcare Phamacy Unsp/Adr

Thank you everybody and a very warm welcome from our site. Today we would like to start off a little bit different than we do usually. So greetings from Pilsen. As announced at the beginning of October, we will open up a pharmacy and distribution center in the Czech Republic to be able to better serve our Austrian customers. An approach similar to what we have chosen in Italy. So what you can see here, is the picture of the official groundbreaking, I would call it. And you can see our COO and Chief Pharmacist Theresa Holler on the right-hand side, and also our partner CTP. What you can also see, of course, in reality, the construction of the building has started and is already advanced. If we now go to the agenda of today, like always, we start with the financial performance. And then we included an ERX update. And since we already gave in the live presentation at the beginning of October, we gave you a lot of details on Rx. We thought it makes sense this time to also show some October numbers, but we will talk about this later. And then at the end, like always, outlook and guidance. If we look into the financial performance, For the first nine months, you can see, I mean, our fast growth with record sales continues. It's a pretty easy message. I mean, our group sales are up 34% for the first nine months, reaching 1.7 billion. And even if you exclude Mediservice, you know, has been only consolidated since May 2023, the growth was still 23%. And also, if we look into the non-Rx growth, we are at 20% Phamacy Unsp-Adr Phamacy Unsp-Adr Looking into the EBITDA, we are really happy to report a 2% for Q3, 2.3% for year-to-date, and you know this happens on the basis that we have started our marketing campaign on Rx already in January of this year, and we kept the marketing up throughout the entire year. And you are aware of that, we have a full year guidance update on the 3rd of October, and this decision was really based on accelerated because of very convincing ERX metrics. If you look more into the detail, you see a picture which you are also very familiar with from previous quarters. I mean, strong growth overall, but international being a little bit stronger than the DACH region. DACH region is on 18.3% on non-RX, whereas international is on 25.7% on non-RX. DRX number of 79% for the DACH region. I mean, you know, that's a blended number. It has the German market and as well as Mediservice. And in the case of Mediservice also, again, only being consolidated since May 2023. But overall, great picture across the different segments. This slide, you already know from last time, so I do not really want to repeat a lot. Again, I mean, 81% in Q3, and we see this dynamic also in the acceleration. It's a 108% in September. And maybe I can use this slide also to expand a little bit how we report on Rx. Yeah, you know, there's because I mean, some of you also raised that question last time. You know, we have two segments on Rx. There's this Gigafow business, which is probably 90% of the overall business, and we have the Picafow business. The e-script only has been introduced for the GKV business so for the 90% and we have a share of course also of PKV business and this PKV business is because there is no e-script right now it's almost flat so what that means in turn whenever you look into a blended number like for example 108% here for our total Rx that means under the hood the ERX business so the GKV business has to have a strong growth, so you need to keep this in mind. It's already a great number, but under the hood, even stronger if you look into the ERX business, which is a GKV business only. If we go to the next slide, you can see we continue our growth, and it's also reflected in the number of new customers. We had 0.4 million active customers in the last quarter, reaching now almost 12 million active customers. At the same time, our NPS remains high and the basket value continues to grow. I mean, here we see the first impact of the Rx business, but again, also here, keep in mind, I mean, the majority of our business is still the non-Rx business, but anyway, we see some kind of impact on the basket. And if we now look into the next slide, you can see Very interesting news, at least we consider it that way. If you look into the pattern of the orders we receive throughout the year, you see that usually, at least since 2021, the Q3 is the weakest of the four quarters in terms of number of orders we receive. But this time we have turned it. So for the first time in Q3, the number of orders are higher. in the number of orders in Q2. So that's very positive and very good news. And at the same time, our repeat order rate stays at 88%, so confirms the quality of our active customer base. Having said this, I would like to hand over to Jasper.

Thank you, Olaf, and also good morning from my side. So what did those orders bring to the financials? With pleasure, I refer to the interim report published on our website this morning with all the details and as always a customary high-level summary for this presentation from sales up to and including the adjusted EBDA and for full transparency sake for reference also the fully loaded EBDA at the bottom so here we get the sales growth 20.8% fully organic growth in quarter three that's the first line that you see here And for the first nine months of the year, we increased by 428 million or 33.8% to around 1.8 billion. And this 33.8%, if you stripe out the apple and orange, full consolidation of MAIDI service, and actually there is still remaining an organic growth of 23%. MonoRx being 20%, Phamacy Unsp-Adr Phamacy Unsp-Adr and year-to-date last year we had a 2.9% margin and this year year-to-date we stand at 2.3%. If you multiply the margin with significantly increased sales then our total adjusted EBDA in euros is 1 million higher at 38 million compared to the same nine months last year. And for reference the fully loaded EBDA which didn't increase by 1 million that's because the acquisition related adjustments phased out last year, so they are no longer in our numbers explaining the EBDA increase of 7 million more than the adjusted EBDA. Then two slides on the margins, basically both with the same message and the message is we are in control and we continue to focus on the details to improve while also grabbing the opportunity that we have in front of us, the overall European pharmacy opportunity, and particularly the ERX opportunity in Germany. So this is the gross profit margin for the total group. To the left side, One could say it's stable, but the slide 0.2% from Q2 to Q3 can be because of seasonality, etc. But of course, there's also impact from an increased share of Rx. But in the underlying base, you can also see a continued continuation of our purchasing improvements and of our platform model impacts. To the right side, the same number growth profit margin for the nine month The reported number in the middle two columns going down. Why? Because of the impact of Maidy's service. We will see the positive impact one slide later. The Apple and Apple is the two columns to the right. And there you see it's basically stable, same gross profit margin despite the very fast growth that we have been achieving. There is some impact of our X in the number, but at the same time, there's a lot of positive mixed impact from the countries and including, again, purchasing improvements and more other income, including from platform. So overall here, a gross profit margin, which is excluding mainly service around 28%, but the clear fully loaded number is above 23%. Then to the next slide, please. The cost performance. So here, basically the same to the left you see. Oh, one slide back, please. Yeah, thank you. No, cash is very important, but in a couple of seconds. Thank you. So the cost performance is around 21% of sales. You see that consistently an increase from Q2 to Q3. I think that is clear to everybody. There is some impact of our decision to accelerate in marketing and immediately I'm going to the full right here of the slide. So you see that our cost as percentage of sales slightly increased compared to last year. A lot of elements in there, two elements are Phamacy Unsp & Adr continue to focus on margin improvements while at the same time going after the unprecedented opportunity we are seeing. And then indeed Monica, we go to the cash on the next slide. We started the year with 204 million of cash. This is here defined as our cash balances and our short-term deposits that we're having. 204, then the cash we get from our positive operating result of around 37 million. 10 million positive impact from changes in working capital. Yes, we have a lot of focus on working capital, but also this is the benefit that we are still having the seasonality from the start of the year, which will be first in the fourth quarter as it is doing each year. Then we have our investments of a little bit below 30 million and then the financing, which is including, according to IFRS, also the cash that we are paying, for example, And with that, I hand back over to you.

Thank you very much. Thank you very much. So let's get into the ERX update session. And I think we summarized it right well in the title of this slide. I mean, we see really the momentum and we see a further acceleration of our momentum. And it's reflected in the fast increase in app downloads. to talk about this in a couple of seconds. And also very interesting to see we are turning the ERX business into an app business. Right now, already 90% of our e-scripts are being submitted by our app. And at the same time, we continue our growth. So we had, if you recorded, 81% in Q3, we had the 108% for September, and we are able to accelerate this to more than 130% in October. shows that the momentum is ongoing and it is accelerating strongly. And also, this is, of course, reflected in the market share gain. So we start at the beginning of the year at 0.27 and then increase it over the different quarters. And in October, we are at 0.66% market share, which is actually a strong, strong gain from the beginning of the year. So overall, we think we are in a full position for this once in a lifetime opportunity on ERX. Let's look a little bit more into the details of this whole thing. So here you can see the EF downloads and we decided to also introduce this into the presentation because a lot of you guys are covering it anyway, so we can give a little bit of flavor to this one. And I think it's interesting to see Phamacy Unsp & Adr Maybe one or two words on that. I mean, this is not completely comparable to, let's say, existing businesses or existing use cases or customer journeys. Because, I mean, for example, if you think about a messenger and there comes a new messenger which has some additional features, then it's easy to generate tons of downloads at relatively low cost. But what we have to do here, and we discussed this last time in our meeting in the beginning of October, we first have to really generate the awareness on this topic. It's a new customer journey, has never been out there. Rx has never been fully digital. So that's the reason why we are investing into a high profile and broad marketing campaign at the beginning. And then because of that, we are really happy about those high number of downloads showing that we have at least chosen the right way to do the education and then now try to convert that into business via downloads of app. It also shows this company is strong in marketing. It's strong in online marketing, brand building, especially in the area of online pharmacy. If we go into the next slide, it's very interesting to see in here we talk about the 90%. But if you look into this, what happened since April? I mean, April of this year. Prior to CardLink, most of the customers were sending their scripts via mail. So you see that's gray shaded. And mail in this case really means they placed their script in an envelope. Either the traditional paper script, because at the beginning of the year we did not have only e-scripts in the market, but they also, because they did not know what to do, they also placed the QR code in an envelope and then sent it in to us. and some of them already used the QR code to scan it in via the different devices we have. So app, desktop, all those kinds of things, but the majority came in via analog. And now only a couple of months later into the game, you can see, I mean, that almost 90% are using this app and it continues to grow. And what does this mean? Of course, I mean, it has a lot of advantages. If we start with our customers first, I mean, This is the one-stop pharmacy at your fingertip. We all know how we use the smartphones. They are always around. Now you have this one-stop pharmacy right in your hand and together with a fully digital journey. Already today, especially when we talk about chronic legal patients, a lot of patients don't go to the doctor any longer. The doctor is issuing the repeat script so they even don't have to see the doctor. Or if they have to see the doctor, then at least They don't have a paper script which they have to handle. It's a fully digital journey. And I mean, they can use this app and in this fully digital journey, they also have all the other advantages. Like we mentioned last time, it's the 24-7, it's the availability check. It is the ability to simply add OTC to the basket and to do the payment. So of course, as we all know, I mean, that is fully digital and that's a lot of convenience and fun from a customer perspective. Phamacy Unsp-Adr after installment, if you compare that to, let's say, a desktop business or even the former paper script business. So in the initial results, we showed that last time when we talked about the repeat order rate, so returning customers being significantly higher than in the past, shows that we are on the right track here. So it looks like the app helps, the product which we have built helps to really also be able to reduce marketing cost after the installment. And of course, another advantage, but it goes hand in hand, is you can develop this product very agile. I mean, you still have to build additional microservice if you want to add features to the product. But then once you have developed them, it's easy to launch because it's an app only. It's not different browsers, different devices. All those kind of stuff does not exist. It's really, I mean, you can develop the microservice, you can develop the product features, and then simply launch them into the market. So overall, that's a very good development we see by moving this business towards app business. If we go to the next slide, here we now, we do not talk about the 108% of September. Any longer now, we see it's already more than 130% what we have achieved in October. And I think there's not really anything we need to add to that number. It's a dynamic acceleration of our sales growth. Maybe just one thing. Keep in mind, under the hood, as I explained earlier, under the hood is even significantly stronger than this number you can see here because of the BK4 business. So overall, it's a confirmation of the approach we have chosen on RX. If you go to the next slide, you can see this, of course, is also reflected in our market share. The market share we showed last time was 0.55%. Now it has moved to 0.66%. Phamacy Unsp & Adr Phamacy Unsp And if you take it one level up and look into the overall company, I mean, it took us many years in the non-Norex business in Germany to get to that kind of a sales level. And now within only a couple of months, we are moving the whole thing into a direction like this. That is just great. And we are building the fully fledged pharmacy, which has non-Norex as well as Rx and overall is significantly growing. And at the same time, by doing so, we become a more and more relevant player, of course, also in the supply of medicines in the German market. So especially when you think about the brick and mortar pharmacies, shrinking number of brick and mortar pharmacies, we are a valuable addition to what happens on the brick and mortar. If we go to the next slide, I mean, it's almost just like a reminder saying, hey, 1% market share equals more than 500 million in sales. I think that's a strong message. And having said that, I would like to hand this over to Jasper. Thank you, Olaf.