Slide 1: ZurRose Group
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Slide 2: 2020 Results – Analyst & Media Conference Call
2020 Results – Analyst & Media Conference Call Walter Oberhänsli | Marcel Ziwica | Walter Hess 18 March 2021 ZurRose Group
Slide 3: Today's Presenters
Today's Presenters Walter Oberhänsli Marcel Ziwica Walter Hess Founder, Group CEO ZurRose Zur Rose Group ZurRose Group Group Group CFO Head Germany
Slide 4: 2020 in review
2020 in review e-prescriptions to become DocMorris+ healthcare Significant revenue growth Acquisition of mandatory platform and app launch represent strategic in all markets: Germany 16.5% TeleClinic, in Germany from 2022 milestones on the way to Germany’s leading provider an integrated healthcare S
Slide 5: Summary FY2020 Financial Results
Summary FY2020 Financial Results ZurRose Group
Slide 6: Summary FY 2020 results
Sales growth of over 10% y-o-y (including Medpex, Summary FY 2020 results Apotal) 2020 targets achieved +14.4% y-o-y in local currency Break even on adjusted EBITDA level and before expenses for additional growth initiatives, especially in the area of electronic prescriptions and for European opport
Slide 7: Group Sales growth of 14.4% - well ahead of guidance
Zur Rose Group sales Group Sales growth of 14.4% - well ahead of guidance Group — Demand partly accelerated by in million CHF Covid +14.4%1 CH — Accelerated growth above market DE — Focus on eRx — Strong performance in core OTC +7.1% +16.5%1 +73.5%1 1’751.92 brands 1’568.7 — Apotal acquisition furth
Slide 8: Expanding market leadership with more than 10 million active customers
Group B2C & marketplace KPIs Expanding market leadership with more than 10 million active customers Active customers1 Repeat order rate2 Site visits3 in millions +52.0% 1.1 79% 76% 216m 244m FY 2019 FY 2020 FY 2019 FY 2020 Basket size4 Order frequency5 in EUR in # 9.4 (5.2%) (8.3%) 6.9 57 54 2.4 2.2
Slide 9: Operational performance improved driven by gross margin
Zur Rose Group income statement Operational performance improved driven by gross margin FY Margin FY Margin in million CHF 2019 in % 2020 in % — Sales growth above guidance Sales incl. Medpex, Apotal 1‘568.7 1‘751.9 — Strong development of gross Sales reported 1‘355.5 1‘476.9 margin mainly driven by
Slide 10: Adj. EBITDA before growth initiatives in line with guidance
Zur Rose Group income statement Adj. EBITDA before growth initiatives in line with guidance FY 2019 Adj. EBITDA FY 2020 Adj. EBITDA before before EBITDA adjustments Adj. Expenses expenses in EBITDA adjustments Adj. Expenses in expenses in EBITDA in growth growth EBITDA growth growth initiatives init
Slide 11: Run-rate analyses show steady state EBITDA margin of 2-3%
Zur Rose Group income statement Run-rate analyses - assuming full integration - shows a steady state EBITDA margin of 2-3% in relation to current Sales 2020 1’752 17% (12%) (4%) (3%) 2% 0% Sales Gross margin Variable costs(1) Marketing Other expenses Growth initiatives Adj. EBITDA before expense in
Slide 12: Strong financial position ahead of eRx roll-out
Zur Rose Group balance sheet Strong financial position ahead of eRx roll-out 31 Dec 31 Dec in million CHF 2019 % 2020 % Cash and cash equivalents 204.7 300.6 — Highly attractive, asset-light Receivables 152.6 145.4 business model Inventories 70.6 92.9 — Strong liquidity position with CHFm 300 of cas
Slide 13: eRx Opportunity
eRx Opportunity ZurRose Group
Slide 14: Increasing online penetration through eRx expected, unlocking upside potential
eRx opportunity Increasing online penetration through eRx expected, unlocking substantial upside potential Online penetration Rx in % OTC 20% Rx online market EUR 8.6bn 10% Rx online market EUR 4.3bn 5% Rx online market EUR 2.1bn Rx 1.4%(1) Rx online market EUR 0.6bn Illustrative, assuming constant
Slide 15: Roadmap of German government / gematik leads to multiple implementation scenarios
eRx opportunity Roadmap of German government / gematik leads to multiple implementation scenarios — Launch of national gematik infrastructure targeted for July 2021 — Connection of remaining doctors and pharmacies to Telematik infrastructure and roll-out of eRx capabilities — Specifications on gemat
Slide 16: Roadmap: Preparation for full acceleration of eRx scaling
eRx opportunity Roadmap Zur Rose Group: Preperation for full acceleration of eRx scaling — Journey mapping for each e-script redemption scenario — Readiness of all webshops / apps — Backend readiness at all locations — Roll-out and scale digital healthcare ecosystem ZurRose Zur Rose Group Group 16
Slide 17: Foundation for eRx set in pre-gematik phase to ensure implementation
eRx opportunity Foundation for eRx set in pre-gematik phase to ensure implementation Solution for physician National eRx server Solution for pharmacy information systems information systems developed by IBM and eht — Zur Rose as pioneer and driver of eRx technology solutions — “eRezept Deutschland”
Slide 18: Marketing campaign – Drive awareness ahead of and during eRx launch
eRx opportunity Marketing campaign – Drive awareness ahead of and during eRx launch — Further increase leading brand awareness — Expand brand values of DocMorris from e-commerce to digital health provider as initiated via viral Christmas campaign with 147 million views — Activate customers ahead of
Slide 19: Further evolve eRx app by adding features and partners
eRx opportunity Further evolve eRx app by adding features and partners — Expand customer journey from diagnosis to delivery via integration of telemedicine, same day delivery and click & collect — Development roadmap: eRx readiness and further improve customer experience — Convert partner pipeline p
Slide 20: TeleClinic integration in DocMorris website unlocks first synergies
eRx opportunity TeleClinic integration in DocMorris website unlocks first synergies — Integration of Online Doctor function to DocMorris website completed — Better customer experience by offering digital journey via telemedicine and online pharmacy ZurRose Group 20
Slide 21: Brand Integration and Logistics Capacity
Brand Integration and Logistics Capacity ZurRose Zur Rose Group Group
Slide 22: Brand integration – Transition towards single brand initiated
Brand integration and logistics capacity Brand integration – Transition towards single brand initiated 3-5 years — DocMorris will be the lead brand across Europe — Branding transition started with launch of new logo and campaign — Step-by-step brand integration to optimise customer transition metric
Slide 23: Extension of new distribution center on track
Brand integration and logistics capacity Extension of new distribution center on track — Installation of warehouse automation in the new distribution center on track — Increased degree of automation of 70% will lead to productivity improvements — Additional capacity of 15 million parcels per year to
Slide 24: Technology & New Business
Technology & New Business ZurRose Group
Slide 25: Zur Rose has evolved towards a tech company
Technology & new business Zur Rose has evolved towards a tech company setting the foundation for Europes leading Healthcare Ecosystem — 3 Tech Hubs in Berlin, Barcelona and Zurich1 — Agile culture and continuous deployment — 200+ employees from 20 nationalities — Tech background: software engineers,
Slide 26: Healthcare ecosystem – Novo Nordisk partnership on obesity
Technology & new business - Healthcare ecosystem Leveraging best-in-class digital solutions and convenient access to products and services to improve lives of people with chronic conditions – Novo Nordisk partnership on obesity Awareness/ Diagnosis Treatment Adherence/ activation monitoring Weight M
Slide 27: Healthcare ecosystem – DiGA portal at Teleclinic
Technology & new business - Healthcare ecosystem Leveraging best-in-class digital solutions, convenient access to products and services to improve the lives of people with chronic conditions – DiGA portal at Teleclinic Raising awareness and enabling convenient, online access to Digital Health Apps r
Slide 28: Platform as a Service business model
Technology & new business - Platform as a Service Growing interest in self developed tech assets is enabling the launch of a new PaaS business model — Insurance cooperation in Switzerland1 and gematik tender to provide eRx server as first use cases — Third parties may accelerate time to market and e
Slide 29: Marketplace Europe
Technology & new business - Marketplace Europe >1.0 million Enabling a truly Active customers(1) European Healthcare >1’000 # of sellers(1) Ecosystem +73.5% Sales growth 2020 — Continue on growth trajectory — Shift to DocMorris brand and invest in branding — Explore extension to further geographies/
Slide 30: Summary of Strategic Priorities 2021
Summary of Strategic Priorities 2021 ZurRose Group
Slide 31: Summary of strategic priorities 2021
Summary of strategic priorities 2021 1 1. Continue on growth trajectory pre and post eRx introduction Growth focus 2 2. Change of behavior via marketing campaign 3 Scale new business including telemedicine and ecosystem collaborations 3. 1 1. eRx readiness across journeys & products eRx opportunity
Slide 32: Financial outlook
Financial outlook ZurRose Group
Slide 33: Group Outlook
Outlook For 2021 management expects sales growth of around 20% including Medpex and Apotal Group Outlook 2021: First eRx sales are expected after the launch of Continued strong gematik infrastructure currently targeted for July 2021 and to accelerate with the mandatory sales growth and introduction
Slide 34: Mid-term targets: Huge potential of increasing online penetration of Rx
Management is convinced of the growth Outlook opportunity driven by the introduction of electronic prescriptions in Germany and believes Mid-term targets: that online penetration of Rx can reach a level of around 10% in the mid-term (time horizon Huge potential of of 3 to 5 years) with further poten
Slide 35: Mid-term financial targets – path to profitability
Outlook Mid-term financial targets – path to profitability 2020 1’752 17% (12%) (4%) (3%) 2% 0% Sales Gross margin Variable costs(1) Marketing Other expenses Growth initiatives Adj. EBITDA before expense in growth initiatives Increasing OTC margin Lower picking Higher costs Organisational marketing
Slide 36: Q&A
Q&A ZurRose Group
Slide 37: Income Statement
Zur Rose Group financials Income Statement 2020 2019 2018(1) CHF m % CHF m % CHF m % Sales 1’476.9 1’355.5 100.0 1’207.1 100.0 Cost of goods (1’235.6) (1’146.9) (1’015.9)(2) Other income 14.8 42.0 3.1(2) Personnel expenses (142.9) (9.7) (117.5) (8.7) (93.7) (7.8) Marketing expenses (60.6) (4.1) (53.
Slide 38: Balance Sheet
Zur Rose Group financials Balance Sheet 31 Dec 2020 31 Dec 2019 31 Dec 2018 CHF m % CHF m % CHF m % Cash and cash equivalents 300.6 204.7 230.7 Current financial assets 0.4 0.2 0.2 Trade receivables 114.9 126.7 92.3 Other receivables & prepaid expenses 30.4 25.8 24.2 Inventories 92.9 70.6 69.4 Curre
Slide 39: Cash Flow Statement
Zur Rose Group financials Cash Flow Statement 2020 2019 2018(2) CHF m Net income (135.6) (52.4) (39.1) D&A 39.3 31.9 18.9 Non cash items financial result 1.8 (2.2) 3.2 Non cash income and expenses 18.0 (35.3) 3.4 Income taxes paid 2.4 2.3 0.6 Change in trade receivables, other receivables and prepai
Slide 40: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by Zur Rose Group AG ("Zur Rose" and together with its subsidiaries, "we", "us" or the "Group") solely for informational purposes and has not been independently verified and no representation or warranty, express or implied, is made