Redcare Phamacy Unsp/Adr

Hello and a very warm welcome also to everybody from my side. Before we start with the presentation, I would like to welcome our new CFO, Hendrik, to this round. We are happy to have Hendrik with us in the management team to further scale Redcarpharmacy. Welcome, Hendrik.

Thank you.

Happy to be here. Okay, let's look into the agenda of today. So first of all, we would like to start with the highlights of 2025. followed up by the financial performance 2025, an update on strategy, and then later, an update on guidance. So let's start with the highlights of 2025. The first three highlights are focused on Rx. 2025 has been a very successful year for RedCare on Rx. We almost doubled our Rx revenues in Germany, reaching 503 million euros. If we look into the relevant competition, our share of 67% demonstrates our clear market leadership position. From a group perspective, RX revenues are now exceeding €1 billion, more than 33% of total sales. The RX bonus for EE1 reformed pharmacies was confirmed not only at the ECJ again, but for the first time in history also at the highest German federal court. As a consequence, we introduced a new RxBone scheme in Q4, which supported the strong growth in Q4 of last year. In 2025, including the beginning of 2026, digital healthcare in Germany experienced a major step forward. The specs for a new and more comprehensive identification technology, POP, have been released for local but also for remote use cases. For online pharmacies this will massively increase and improve the redemption options. Customers using EGK card will no longer need SMS verification as an additional step in the order process and on top the digital health ID can be used to redeem Rx at online pharmacies. Please also keep in mind that at the beginning of 2027 the EU ID wallet will be launched in Germany. expanding digital use cases, including the digital health ID, to the entire population in Germany. Let's go to the next slide. 2025 was not only very promising on Rx. We also delivered on our strategy to further increase customer satisfaction, scale, automation, and cost leadership. Our logistic capacity expansion in Pilsen went live in Q4 of last year. Pilsen adds 15 million passwords annual capacity to our overall capacity. We are mainly serving the entire Austrian market from Pilsen, but the setup also allows to serve other markets on non-RX. For the Austrian market, we see since go live faster delivery times, higher customer satisfaction and a higher NPS. Since wages are lower in Pilsen compared to Sevenum, we also reduced operational costs per parcel. In Sevenum, we launched our logistics automation project in 2025. Sevenum will always remain the heart of our pharmacy, including Rx. Therefore, the automation has a clear focus on Rx, including mixed baskets, but can also serve non-Rx orders only. The strategic rationale is comparable to Pilsen. Double our capacity in 7M by early 2027 and here good news, we are clearly on track to deliver on that. Reduce labor costs by 70% per order and higher speed, faster delivery will boost customer satisfaction and increase our competitive advantage. And then we also strengthen our balance sheet in 2025. The 300 million convertible bond secures the cash we need to execute on our spreadsheet. Let's get to the next section, Monika, financial performance. Our full year revenues are up 24% to 2.9%. Phamacy Unsp-Adr Phamacy Unsp-Adr 98% up to 503 million. Overall, a 72% increase on adjusted EBITDA, 0.6 percentage points year-over-year margin improvement, ending up on 2.0% adjusted EBITDA. If we can go to the next slide, this is our typical breakdown into the different segments. Again, overall RX is the growth engine or has become the growth engine of the company. If we look into the different segments, you can see DACH 24.1% growth, non-RX 12.5%, RX 42.6%, and on international a strong 23.7% growth on non-RX. Looking into the orders, you can see there's a 19% increase in orders process, lapping a very strong 2024. And of course, also reflects somehow the higher average basket we have in our business right now compared to previous years. Now I would like to go give some additional insights into the non-NAREX growth situation. So what you can see is that our growth came down in 2025, mainly driven by the DAF segment. We have identified four main reasons. First of all, we did in 2025 not always find the sweet spot in the marketing mix, meaning the right combination of marketing, pricing, vouchers, and also things like minimum order value. Finding the right mix was not always, we did not always perform in the best way. Secondly, to some extent, we saw currently softer markets. And then at number three, we see an increased platform competition, especially in the area of top sellers of PPC. And number four, our overall push for more marketing efficiency, meaning at a certain threshold, not to buy the next possible product. Overall, we increased the marketing budget 2025 compared to 2024, but improved the marketing ratio as percentage of sales, and especially towards the second half of the last year. In Q4 2025, we were working on top against a very strong Q4 24 being pushed by, you remember, the Rx Marketing Boost campaign. The campaign, of course, had Rx as a target, but as a result of our one-brand strategy also fueled non-Rx growth in Q4 of 2024. Going forward, we will continue to optimize for growth and profitability using all elements of the marketing mix. By doing so, we expect to stabilize the growth rate at 8% to 10% in 2026. And of course, We are intensively working on the details of the marketing mix to return to different growth rates. Non-RX is the core competence of Radcare. We consider also going forward non-RX as a profitable, growing, cash generating business.