Redcare Phamacy Unsp/Adr

Thank you very much and good morning to everybody and a very warm welcome from our side. Let's have a look into today's agenda. So first of all, we would like to talk about financial performance, then an update on Rx regulatory landscape, then an Rx update on our Rx development, and then by the end, an outlook and guidance for the remaining part of the year. If we go to the next slide, you can start with the financial performance. Group sales are up 27% year over year. So we are showing a continued strong growth. It's fully organic and it's in both areas, non-RX and RX. Also in non-RX, we are showing a growth of 18%, 60% in the DACH region and 26% in the international segment. Overall and particularly in Germany with strong market share gains. So if we look into the German market and we can see, especially in Q2 of this year, that our competition and also brick and mortar is almost flat in sales. So we are really lucky to report a continued growth and showing our strength in that region and in that market. Also fast year over year growth on RX sales in Germany, 155% compared to the first half of last year. And looking into the EBITDA, we now draw an adjusted EBITDA of 1.9%. It's a doubling from the margin from Q1, which was 1.3 to 2.6 in Q2. Also, we worked on our balance sheet. Now we have a much more robust balance sheet. We successfully launched a convertible bond of 300 million at the beginning of April. and also bought back already 70% of the existing convertible bond. And Jasper will talk about this probably a little bit later. And then also we confirm our full year guidance on all elements. If we go to the next slide, we can see this is our breakdown by regions. Again, a total growth of 27.3%. In DACH, we are growing slightly. higher at 27.5 than international and 26.1. If you look into the non-NAREX, it's the same picture we saw in previous quarters. Internationally, it's growing stronger in the DACH region. If we go to the next slide, you can see our customer development. And again, we were able to add 0.4 million active customers now showing Phamacy Unsp&Adr Phamacy Unsp&Adr on the NPS. And so we are really happy to show this number. But of course, our objective is still to bring the NPS further up. Also very good news on the large basket. Here you can see the impact of the RX business. Our basket is increasing. It's now showing 63.92 euros, almost 8% up year over year. So very good development also in terms of unit economics. If we go to the next slide. You can see our orders. We continue to grow. 22 million orders in the first half of this year. It's up 25% to the prior year. But you can also see here clearly the Easter shift. So Q1 being a little bit higher and Q2 being a little bit lower because of the shift of Easter. Having said this, I would like to turn this over to Jasper.

Yes, thank you Olaf and good morning to everybody also from from my side. Thank you for joining today's call. So here the customary table with the financial numbers of two and including the EBITDA. So if you look at sales, we increased the sales from 561 million last year to not less than an increase of 148 million in just one quarter to 709 million this year. An increase of Phamacy Unsp & Adr If we then go to the gross margin, and S&D and Admin as a percentage of sales, there's quite some mixed impacts, etc., which we will later explain in the bridge. The gross margin is increasing 0.4%, year-to-date 0.2%, the selling and distribution is up 0.6%, 0.8%, but it's more relevant to look at the sum of the two, which is the adjusted EBITDA margin. And as you said already, Olaf, from 1.3% in Q1, It doubled to what you see on this slide, 2.6% in the second quarter. And with the 2.6% in the second quarter and the 709 million of sales that we achieved, we had an adjusted EBITDA of 18 million. 18 million is the highest number that we ever achieved as a company in one quarter. And on an annualized base, that is something around 70 to 80 million. If we look at the current year, We're standing here today at 1.9, because we started with 1.3 and have now 2.6%. And with a lower margin than last year, only because of our first quarter of this year, you see actually because of our sales growth that the absolute Euros of adjusted EBITDA we generated at 27 million is equal year over year. So achieving 300 million more sales, growing 27% in each of our country, by the way, in some countries like Germany or Italy, for example, with huge market share gains. And we were able to do this at the flat margin. But before we go to the next slide, also in helicopter view remark, if we then look at the 2.6% in quarter two, which is relatively flat to last year's 2.7%, it's important to know that that is not because sometimes we suggest that we save on marketing costs, for example, This number includes actually an increase of the marketing in Germany in absolute terms and as a percentage of sales. So the number that we report today is because of the strength of everything else. Each of our country improved year-over-year the margin. We see scale, we see efficiency, we see a loyal customer base in total and it also means that the number that you're seeing here is actually also a sort of base to build upon further towards our because the scale and efficiency will just continue with our business model as we have at the moment. On top of that, we will of course have next year the advantages of our distribution center in check. The year after we will have also our ERX automation bringing us to a next level. So a couple of remarks from my side to color the picture, but let us now focus again on the current quarter result. And here's then the bridge of the numbers that we just saw. To the left, the gross profit margin of 0.4% year-over-year and year-to-date 0.2%. The third block of the bridge, the large one there, that is the impact of the success of our RX. But actually, you see that this block of the RX gross profit margin by improvements in the two first and in the fourth block. So our product margin including the mix of the products that we are selling improved compared to last year. The country mix added also positive benefits to our overall performance and in other you see for example the impact of our success with our platform. So when one would potentially expect, hey, our X, perhaps your gross margin as a percentage is slightly down, we're actually year over year up. And then we go to the selling and distribution and administrative expenses as a percentage of sales. It went up from, in the quarter, 20.7% to 21.3%, an increase of 0.6%. And year to date, so over the first six months, it was an increase of 0.7%. And also interesting things happening here, because you see the block of the increase, which is mainly actually the country mix that we are having there in total. And to the left, you see two blocks which have been improving. in total and to start with the efficiency and scale. So taking all the SG&A costs before mix into account. So from the individual countries, you see that the cost increased, sorry, the cost improved, despite what I already just mentioned, an increase in our marketing costs. So again, the efficiency and scale and the success of our business model are reflected in the improved margin over there. That may be slightly improved, be slightly lower, In the end, this should all sum up to the cash flow that we're seeing. And also here, not only talking about what we've seen in the first half of the year, but also taking a helicopter view. We have never had a stronger cash balance than we have at this moment. So we ended up well beyond 300 million. and later more on the individual blocks that are also positive. But of course, the main reason for the significant increase of our cash balances is what you referred to already, successful tool convertible bond transactions that we executed on April 8th. First of all, we placed a new 300 million convertible bonds, but at the same time, in parallel, we bought back in a couple of hours with a tender already 70% of our existing bond, the 2021 bond, which was in total 155 million and likely we will also pay the remaining 30% before or lately in June 2026. Why did we do this transaction? It's proactive management of our debt profile and rolling forward the debt maturity or using simpler words in total instead of having to repay our convertible bonds potentially in 2026 until 2030. We also did a top-up, a slight top-up in the convertible bonds, and that is actually because with that we established the target liquidity that we think suits the company of our profile. So that is done now. So we have the balance sheet that we want. We have the debt profile that we want. And with the target liquidity, it's important to realize that we as a company have doubled in size in just two years. We did 1.2 billion Last year we did 2.4 billion. So we're there from a better sheet perspective. We are robust. Then back to the current year, 25 million in the bridge you see we generated from our operations. Then a very favorable working capital inflow of 45 million. We have structural improvement. We have better terms. We have better management of our working capital continuation of the past many years. The majority here, however, has also to do with timing and seasonality. Those two blocks, and then a relatively large block of investments, though the net of those three blocks is still a positive 13 million. The investments are at an elevated level because we invest in distribution capacity for the Austrian market in Pilsen, and we invest in the ERX automation here in Zevenum. Because of the convertible bond transactions, there was no need for any other loans related to our lease, so we have been paying that out of our existing cash, but at the moment that 30% in January to completely have repaid to convert the whole to 2025, which is a little bit less than 70 million.

Olaf. Thank you very much. Thank you very much. So, you know, we saw a lot of development. I have to say positive development in H1 on DRX regulatory landscape. And for that reason, we added an additional section in our presentation. So let us start first with CardLink, our access to the ERX market, and then let us switch to the German Supreme Court ruling. Let me start with a high-level message. Our CardLink license has been extended until January 2027 to support a seamless transition to the next generation of ERX technology. CardLink has been built on a gematic backend technology called VSDM, which by law by a new version called POP. POP is the proof of patient's presence. Since the migration from VSDN to POP takes longer than Gematik originally anticipated, Gematik has extended our carding license to ensure a continued access to the German ERX market during the infrastructure migration phase. The planning of POP is in full swing. Current Gematik plan is to start phase rollout from mid of 26 on. starting with a brick and mortar use case and then followed up by the remote case including the EGK in Q4 of 26. We expect the necessary specifications from Gematik for the remote case in Q3 or Q4 of this year. So there is sufficient time to do the implementation and to develop the product for the start in Q4 of 26. Also very good news, POP continues to support the EGK redemption without PIN. This means low barriers and freedom of choice for patients. In addition, POP will also support the digital ID, which may allow future use of face ID or fingerprint, enhancing convenience and security. If we go to the next slide, You can see this more on a timetable, but actually it's telling exactly the same story I just told you. This is Digimatix Seamless Migration Plan for POP. Phased rollout of POP start with 26 with a brick-and-mortar use case. That's the upper yellow box. And then the rollout of POP EGK remote case, the successor of HeartLink, starts then in Q4 of 26. We expect the necessary pop remote specs in Q3, Q4 of this year. If we go to the next page, let's talk about the Rx bonus. So also here, I would like to start with the high level message. The German Supreme Court confirms Rx bonus for EU online pharmacies. After the ECJ ruling on Rx bonus from 2016, this is another landmark ruling in our favor. And let me explain why. As you all know, the European Union ensures free movement of goods and services within its member states as part of the single European market. This is, let us call it, the default setup in Europe. The German pharmacy business has installed two protection layers against competition, the ban on foreign ownership and the Rx fixed price regime. To open up the protected German pharmacy market, For us as a Dutch online pharmacy, the ECJ in 2016 ruled that there is no justification for the German Rx fixed price regime to be applied to EU online pharmacies. And now the German Supreme Court confirmed this ECJ away. The plaintiffs, and I think even more important the German government, were unable to provide evidence that EU pharmacies harm the national supply of medicines. I mean, we all know this. We saw the number of pharmacies in Germany declining from almost 23,000 to below 17,000 in the last couple of years, and our market share on Rx never exceeded 2%. But it's the first time that this has also been acknowledged by the German Supreme Court. With its demand for data-based evidence, the Supreme Court followed the line taken by the ECJ. In our interpretation, That is also it's also the current RX band established in the 129 social law book will not need the strict ECJ and Supreme Court justification test. So overall in some confirmation of our long standing position that we are allowed to offer RX bonuses. And before we go to the next slide, I would also like to talk briefly about what is going to happen later in the week. You know, there's another Supreme Court oral hearing on a bonus case. This time it is not about the bonus. I would just like to mention this in terms of that everybody has a full picture here. So we are really clear on that we are allowed to give a bonus. The court case later in the week is about advertising on bonus. So there had been an ECJ ruling in February of this year on the advertising of this bonus. And the question here is, are we allowed only give a direct bonus or are we also allowed to give an indirect bonus direct bonus for example is a reduction of the co-payment on rx or it's a cashback on rx indirect bonus for example could be a voucher for a sale in the future and if you recall the ruling from the ecj in february of this year they clearly allowed direct bonuses for advertising for direct bonuses and they were a little bit more reluctant on the indirect bonus, meaning giving vouchers for a second purchase. And this is now back at the German Supreme Court, who forwarded this case in the first place to the ECJ. And there's this oral hearing by the end of this week. So we will see what the outcome looks like. But please keep in mind, we are allowed to give the RX a bonus. And it's only a question on the advertising I would call it commercial kind of setup, direct versus indirect. And we are all looking forward to that oral hearing. If we go to the next page, this is now about update on our Rx development. Also very good news here. So let's start with the market share. What you can see, we continue to grow our market share. 0.87% in June of this year. And you know, we are growing year over year, and we are growing quarter over quarter, now reaching 0.87. To neutralize the Easter effect, 24-25, we are additionally showing the average of March, April 24-25. What did we exactly do? Because we determined the monthly 25 market sales by using the seasonality of 24, Reported March is artificially high, so the 0.87 in March is artificially high, and April is artificially low. Combining March and April, thus neutralizing the Easter impact, the average market share was 0.82. This is what we are trying to show in the image. So what you can clearly see, we continue to grow. Our market share is an upward trend. Also, what you can see throughout the last 15 months, we had different marketing objectives. In 2024, we wanted to become the market leader and establish ourselves as number one ERX brand with a patient and to achieve reasonable CAC. In 2025, I mean, and we achieved that objective in 2024. In 2025, we put more emphasis now on CAC and break even period. We are spending, as Jasper pointed out, we are spending significantly more marketing than last year, also in percentage of sales. But at the same time, we also take our learnings we had and we are optimizing on the CAC. And I think that is the right thing going forward. So we have good control of what we are doing. And that is also why we feel so comfortable confirming the guidance. We know what we are doing in terms of CAC management. So also very good news on this side. If we go to the next slide, and you know this for those who are following us also in the previous sessions, you know this slide already. This is our cohort comparison between the Rx and the non-Rx cohorts. And what you can clearly see, we continue to add strong, strong Rx cohorts quarter after quarter. and also the gap between the Rx cohorts and the non-Rx cohorts is continuous to widen. So great non-Rx cohorts and even better Rx cohorts. And what did we do here? We added, so because in the past we only showed the Q1 of 24 cohort, now we added the Q2 and Q3 cohort of last year. And why did we do that? Because now we have one year in the books for the Q2 Q2 cohort as well as for the Q3 cohort. And what you can see, super stable, super comparable. On the sales side, the Q1 cohort was the best of last year. But if you then look into the gross margin, which I think is the more relevant one, you can see the Q2 was even more successful in the Q1 cohort. And what is the reason for that? There are many reasons, but I mean, two are pretty obvious. The one is because of the Rx fixed price regime of the Rx reimbursement scheme in Germany. So you get a fixed amount of money per Rx unit. So it could be that the Q2 and Q3 cohorts that they have more Rx units in the basket. And because of that, the absolute margin is going up. It could also be that the mixed basket share is higher. More or more OTC is in the basket, but I think those are all details. More important is especially on the right hand side, all cohorts are stable. We are adding great customer quality quarter after quarter and especially when you look into gross margin, they are very close to each other. So overall also looking into the cohorts, we are on track and that is again the reason why we feel so comfortable giving the guidance for the rest of the year. If we can go to the next slide, we would just say, well, we have been now in this business for 12 to 15 months. And our key takeaway out of this period, as well, Jasper, is very simple. This is all just the beginning, I have to say, or we have to say. Look, I mean, the adaptation of digital pharmacy solutions is rising fast. I mean, we see triple digit growth in online pharmacy, as we just showed you. But we also see German pharmacy platforms using CardLink and supporting the digital transformation. Since those platforms have thousands of participating pharmacies, more and more patients are getting used to digital pharmacy solutions. So that's really, really good news for the patients, for the system, for the participating pharmacies. or the development into the right direction. We also see individual pharmacies offering digital services via CardLink. Also those are supporting digital transformation. And at the same time, unaided awareness of CardLink is still pretty low. So we see a significant upside potential with approximately 80% of Germans not having new online redemption methods top of their mind. Yeah, 80%. And what does that mean in reality? So, a chronically ill patient goes to the doctor, receives a script, and then leaves the doctor's office, and then does not have the online redemption method top of the mind. So, it's, of course, then looking for brick-and-mortar pharmacy. And if we can increase that share, yes, or reduce the 80%, there's a huge potential out there. And please keep in mind, it has always been, only been 12 to 15 months. Also, we have tailwind, both from national and EU regulators. The digitization of the German healthcare system is ongoing. The use of EPA, you know, is the electronic health record, and also the digital ID is becoming more and more present. Yes, it takes some time, but the overall direction is clear and will even accelerate in the future. And also on EU level, we see the European health data space and the EU wallet coming up. both will clearly help to further boost digitization of the healthcare system. Within the European health data space, the e-script is even a mandatory element. So putting this all into a larger perspective, I mean, we had great success in the first 12 to 15 months, as we show in the numbers. But I mean, there is more to come. We think it is all just a beginning. Having said this, I would like to hand this over back to Jasra.

Phamacy Unsp & Adr Phamacy Unsp which would be a doubling year over year. And yes, that implies that in absolute terms, our outreach sales in the second half will be higher than in H1. We have an internal plan to get to the guidance and we are on track of that plan. And non-RICs, everything, beauty, personal care, nutrition, OTC, in all our countries, we expect to continue to grow double digits. Year to date, we're standing at 18.2 or 18.3%. And for the full year, we also expect a growth of higher than 18%. And this with an adjusted EBITDA positive between 2% and 2.5%. And what I tried to explain already when explaining the quarter two numbers is that we actually also consider this as a base to further build from, because the efficiency and skill that we achieve and the rapid leverage of the ERIX marketing and structural and fundamental improvements kicking in it is clear that not only the full year guidance for this year to 2.5%, but also the real result that delivered in the second quarter are all paving towards our clear target of an adjusted EBITDA margin in excess of 8%. And that guidance is also unchanged. And with that, I think we have ample of room for some questions if there are any. Please, operator, continue.

Yes. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star, followed by a 1 on the touchtone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking questions. In the interest of time, please limit yourself to two questions. Anyone who has a question may press star and one at this time. We have the first question coming from Jan Koch from Deutsche Bank. Please go ahead.

Good morning. Thanks for taking my questions. I have two. The first one is for Jasper. You have mentioned in the trading update in early July that the Q2 EVDA margin should be above 2% and you have delivered on that. But you also mentioned that you expect further improvement in the second half of the year. Phamacy Unsp& Does that really mean that we should expect an adjusted EBDA marginal of above 2.6% in H2? Or did you just see an even higher margin in Q2? And then secondly, could you elaborate a bit on your strategy to accelerate the Rx growth in H2 to meet your foliar guidance and reassure the market?

Yeah, hello Jan. Yeah, thank you and indeed that's literally what I said and that the Q2 margin came in somewhat to the positive end. Certain things fell to the positive because of a good operational performance. We reiterate today our full year guidance between two and two and a half percent, of course, but we have and we are not changing that one. So though literally you are correct there, but then stating that today we say that the next two quarters will for sure be higher than a 2.6%. I cannot confirm that, but it is clear that both quarters need to be clearly above the 2% to meet the full year guidance. So that's a little bit the direction. So thanks for clarifying that. So it could be, but I'm Based upon the very strong Q2 results, I'm not repeating the same sentence as I said during the training statement.

Second question, shall I give it a try? I think the second question, Jan, was about acceleration in the second half of the year, if I remember it right, on RX. Yes, I mean, as I pointed out, we now have a clear understanding of how to grow. I call this CAC management. So we know how much marketing money to invest, and how many customers we will get back for this fund. We clearly learned over the last year. So based on that and what we are seeing in the market and also what we see in July, we feel really comfortable that we are able to accelerate to reach that guidance based on the know-how we have gathered within the last year.

Okay, great. One follow-up, if I may. We've seen some positive news flow that the German regulators are planning to make changes to the doctor reinvestment system by actually Q4 this year, which should promote the use of the repeat prescriptions. How are you positioned here to benefit from this change?

Well, I can try to answer your question. Yes, I mean, Q4, we cannot confirm the Q4. So because we see there is a lot of things going on on the regulatory side. So I would probably see this more at the beginning of next year, but I think that is not so relevant. The more relevant question is, can we participate and profit from this one? And I think in general, You know what this is all about. So the patient does not each time need to see the doctor if the doctor decides so. So that means they don't have to go on a quarterly basis to the doctor to present the EGK card. So if that is going to happen, yes, then of course we think we will benefit from this one because then you have an entire digital journey. So that means as a chronic legal patients, you do not even need to go to a doctor. And then the doctor issues still issues And then, of course, if you want to complete the digital journey, then you can use online pharmacies. So therefore, we think that is in our favor. This is in our favor. Of course, we are also preparing for that. But again, I mean, nothing is set in stone right now, but we are looking forward to see this kind of development in the market. Great. Thank you.

The next question comes from Paul Carbosse from Baader Bank. Please go ahead.

Thank you for taking my question, Paul Carbosse from Baader Bank. I would have two questions. First is, how do you look on the number of customers who increased by 0.4 million in the quarter after you grew by 0.6 million in third quarter, fourth quarter? How do you look at that and how do you interpret it with growth, please? And the second question would be on how the trading in July is really done. So perhaps you can give us a quick preview on how things are progressing, especially in Germany. Thank you.

You were very far away. It was not very clear. The first one I got.

The second one I did not get at all. No, the second one. Could you repeat the second one?

Second one was on current trading. Current trading July.

Oh, okay. Current trading, so how things are going now in July. Yes.

Maybe I didn't try to answer the first question. If I understood the question right, so I will try to repeat the question. It was about active customer development, saying that we added 0.4 million active customers in Q2 of this year, whereas we had 0.6 in Q1 of this year. I think that was the question. And so, yeah, I mean, to us, that's completely fine because, you know, the Q2 is not the strongest quarter this year because there has been an Easter shift. And again, as what I tried to point out earlier, we have a good CAC management now in place. So we know exactly what we are doing. And based on that, we will, of course, we have to accelerate then in the second half of the year, also in terms of a number of active customers to really reach them our guidance. But again, we feel pretty comfortable on that and don't see this as a signal of something that's not working at all. And the second question was more on trading. I think Jasper, maybe that's more on your side.

Yeah, absolutely. This is still also only active customers, what you said. When we saw the number coming in, we were satisfied, very satisfied with the number we had in quarter two. And it's also clear that we also benefit a lot from trading up our existing customers. So I don't know what it means for going forward, but in the end, increasing the frequency and getting BPC, OTC customers that are already active customers towards our Development for us now already and going forward. Yeah, current trading. Yeah, you want to know more than that, etc. We are happy with current trading. We reconfirm our guidance. We're happy with the trading. Q2 in itself, we didn't want to point out towards excuses and things like that, but had some flaws in the market in total where you had the off days, etc. I think we are now back to normal. A good start. Some holidays here and there, but the same as last year. Current trading, good. We can confirm everything is running smoothly up to and including. The moment we started the call, yes, yeah, exactly. Thank you. Yeah, thank you for her.

The next question comes online of Ramon Huber from Limit Capital. Please go ahead.

Hello, just on on the. Updates like things we had this judgment from the. Did you see any acceleration from clients? Did that change anything in the market? Did you start spending more marketing? I just saw that you were quite public with this bonus. Is that already having an impact or is it too early because it's holiday time?

Maybe I can try to answer that one. You know, I mean, our position always has been that we are allowed to give RX bonuses. So it's again, it's a landmark ruling. But if you look into what we have done commercially, also prior to the ruling, I mean, commercially, we had vouchers out there on RX throughout the entire year. And after the ruling, we have not really changed that significantly. And so because we think we are in a position that we can give our bonuses to us, again, it's just a confirmation of our position. In general, the commercial strategy out there and of course this commercial strategy will make use of bonuses or vouchers or any kind of price advantage as you can call it. But there is not this, there was a zero before and then there's a significant step up after this ruling. Again, we have a commercial strategy and we will also maybe adjust commercial strategies like we always do throughout the year, but it's not a significant step of kind of thing because we in our commercial offer have not really changed a lot the day after the ruling.

Okay, and the next ruling coming up Do you think it's important or as I understand it's not that important if you give like a voucher or if you give really money back or you think it's important?

Yeah, I think all of the rulings of the Supreme Court are of course important. But what I was trying to point out, I mean the fundamental ruling just happened and that is are we allowed to give bonus, yes or no. And now it's about the commercial setup of this. Is it only a direct bonus or also indirect bonus? Are they allowed? So this this kind of question is, of course, has some kind of impact on a commercial strategy. So to be very concrete, if you can offer a voucher for a next purchase is something different than to offer a cashback or reduction on a copayment on the same order. So it's a different mechanics. But nevertheless, we strongly believe that at least the Thank you very much and good luck.

The next question comes online of Olivier Calvet from UBS. Please go ahead.

Yes, hi, good morning. I hope you can hear me well. I have a couple of questions left. So the first one would be on the sales growth. You know, if we think about the breakdown between DACH and international in NRX, is it fair to assume for the full year that international should land above the group non-Rx, so of 18% guidance, but also above the group guidance of 25% for the full year, as it did in H1. In contrast, I'm wondering if you're seeing any change in competitive dynamics. I think you evoked something to that effect in Q2 in the non-Rx field. Phamacy Unsp-Adr Phamacy Unsp-Adr Phamacy Unsp-Adr And then just on the free cash flow, I just wanted to confirm, you know, typically you see a seasonal inflow in the first half and a seasonal outflow in the second half. Where do you see working capital changes, you know, for the full year, breakeven, positive or negative, just to, you know, ballpark? And capex phasing, you talked about 100 million automation investment, I think, at the full year results call. that was spread over 25 to 27, mostly 25 to 26 in my understanding. I knew you wanted to sell and lease back the automated assets, you have the Austrian bit as well adding up, but how should we think about the remainder of the year in terms of capex phasing?

I think the majority is mine.

I think, yes, but the majority is yours. So maybe you give it a try and maybe I add one or two sentences. Correct me if I'm wrong.

Hi, good to hear you. About DACH and international. Yes, international is even growing faster than DACH. You talked about some dynamics. but also in some other countries we also did that. But we only have a total company guidance, so I'm not going to split it per segment. What you're saying makes sense, but I will not confirm that one. We will keep the flexibility there. As a total company, we want to grow non-RX beyond the 18%. Then as to main service, Indeed, a surprisingly strong growth of mainly service in the second quarter. That's absolutely correct. Normally in the past years, it was often around mid single digits and it was now beyond 11%. The strength for mainly service came from a higher average order value and they have already a high average order value. So that's good. It was beyond the market. but in the business model of mainly surface taken to account that because of the reimbursement scheme that is not leading to more gross profit at this case because it's kept already at the Max in in general, but it's mainly surface and going forward with maybe service. We don't change any expectations to marketers having there. We don't have explicit guidance for their company. Besides the fact that we are happy with maybe service and we expect them to continue to grow. on the working capital for the full year. We don't have guidance on cash and working capital. And then the fourth one is the ARX investment. Yeah, exactly. So if we wouldn't have done the convertible bond so successfully as we did, we would have already now had a loan for the automation. And now it's certain that we will do a lease at the moment that we start with the automation, but during the build-up phase, it is more efficient for us to continue to pay that from existing balances as we do at the moment. And it's, by the way, besides that, fully confirmed. So we have Pilsen aiming to end this year, and then we have continuing until at the end of 2026, start of 2027, the ERX automation here is

Okay, so just to understand the sort of phasing, you know, you had something like 40 million, you know, cash outflow from PP&E. How should we think about the full year? You know, is there going to be some further increment? I mean, you're talking about a hundred million automation invest, and I know there's the Austrian bit on top, but the hundred million is over, I think, two years, right? So just wanted to get a rough sense, you know,

Yeah, that's for a bit over two years. The majority is in the current year.

Okay. Yeah, that's helpful. Thanks. And just to follow up on the German regulatory situation. Did you not start offering the same kind of rebates as your main competitor because you're basically looking to offer more vouchers than direct discounts? Is that basically what we should understand from your earlier comments?

No, I mean, we have a clear commercial strategy and currently we are offering a direct bonus via a voucher. And of course, we are looking into what our competitor is doing and we will adjust if we think it's needed. But so far we feel comfortable with what is our current offer. But again, I mean, like in other businesses and industries, I mean, this is not set in stone, so we will act Phamacy Unsp-Adr Phamacy Unsp-Adr

Okay, thanks. And sorry, just a final one. Is your expectation that you would keep your margin guidance? Should you start to offer rebates for Rx?

No, that's not related to each other. We have full flexibility there. I think with bonus and voucher, I mean, we report it on a different line, but that's to me also part of the total marketing proposition and one is related to the other. So no, no, that's not. We can do what we want. There's plenty of room in our margin guidance from all perspectives, and we will do what we think is best, just as Olaf said. And what we will do exactly, the marketing tactics, we will not disclose. Many thanks. I think you will appreciate that we don't do that.

As a reminder, if you wish to register for a question, please press star four by one on your telephone. There are no more questions at this time. I would now like to turn the conference back over to Olaf Heinrich for any closing remarks.

Yes, thank you very much. So thank you to all of you guys for joining us and also for asking all of the questions. I think, I mean, what we have seen, especially in the first half of this year, is there's a lot of noise in the market. Yes, there's a lot of things not everybody immediately understands. So, for example, Phamacy Unsp & Adr We know how to maneuver in this situation and we can take also the advantages of all of this. So therefore, we highly appreciate that you ask all of those questions. We know there's a lot of noise, but please, we feel very confident to steer this into the right direction. And again, we think this is just the beginning. So thank you very much for joining and then see you next time three months from now.