Slide 1: FY results 2023
FY results 2023 Walter Hess | Marcel Ziwica 21 March 2024
Slide 2: Today's presenters
Today’s presenters Walter Hess Marcel Ziwica CEO CFO | FY23 results
Slide 3: Agenda
Agenda 1. Business update 2. Digital health ecosystem 3. Financial update 4. Outlook 5. Q&A 6. Back-up | FY23 results
Slide 4: Key messages and highlights
Business update Key messages and highlights Back to growth and eRx is the new eRx as enabler of digital 1 profitability in sight 2 standard 3 health ecosystem FY outlook achieved Mandatory launch on January 1st Fully digital redemption channel Return to growth: 14% in Q4 >70% of scripts are electron
Slide 5: eScripts became the standard in Germany in only a few weeks
Business update eScripts became the standard in Germany in only a few weeks! redeemed eRx (cumulative) 120m eScripts redeemed in total >70% of scripts redeemed electronically1 ~85% of doctors practices issued eScript1 Encouraging eRx share in first months despite limited access to eScripts Full mark
Slide 6: Seamless digital redemption channel will open access to the entire Rx market
Business update Seamless digital redemption channel will open access to the entire Rx market CardLink solution Three simple steps Specifications published in agreement with data 1. Authentication 2. Scan eGK3 3. Check out protection agencies (BSI1 and BfDI2) Certification request handed in this week
Slide 7: Rx repeat script model is live and leads to higher share of wallet and customer lifetime value
Business update Rx repeat script model is live and leads to higher share of wallet and customer lifetime value Rx subscription model Beneficial for all stakeholders Multiplicator of key KPIs Patients DocMorris Most convenient Higher basket size Secured continuity of supply Higher order frequency Bet
Slide 8: eRx campaign "Die Gesundbergs" successfully launched with >400m views
Business update eRx campaign „Die Gesundbergs“ successfully launched with >400m views eRx marketing campaign KPIs1 >400m ad impressions >200m TV reach Thumb Stop Ratio: 35% vs. 25% channel benchmark View Rate Skippable: 16% vs. 13% channel benchmark | FY23 results
Slide 9: Finally at the tipping point to access the EUR 55bn Rx market
Business update Finally at the tipping point to access the EUR 55bn1 Rx market Digitalisation in German healthcare system has taken off Mandatory eScript is the base to enter the EUR 55bn market of prescribed medication Seamless digital eScript redemption with CardLink is the accelerator Repeat scri
Slide 10: Agenda
Agenda 1. Business update 2. Digital health ecosystem 3. Financial update 4. Outlook 5. Q&A 6. Back-up | FY23 results
Slide 11: eScript enables an effective and efficient digital health ecosystem
Digital health ecosystem eScript enables an effective and efficient digital health ecosystem Significant financial impact Extended offering beyond medication Added value services with high margins (Telemedicine, Care, PaaS) Increased patient loyalty and retention Highly efficient, effective and scal
Slide 12: DocMorris chronic care supports patients along their health journey
Digital health ecosystem DocMorris chronic care supports patients along their health journey and significantly increases share of wallet Increase basket sizes of Acquire & enable Increase loyalty & 1 existing customers 2 new customers 3 minimize churn Providing products, services and content for pat
Slide 13: TeleClinic breakthrough in Germany
Digital health ecosystem TeleClinic breakthrough in Germany: Addressing need of lower healthcare costs with effective and convenient care TeleClinic telemedicine platform ~30% market share of video consultations1 2,000+ active doctors 40+ insurance partnerships Regulatory drivers (2024) Unlimited nu
Slide 14: TeleClinic has highly attractive standalone financials
Digital health ecosystem As an integral part of the DocMorris ecosystem, TeleClinic has highly attractive standalone financials that are ready to scale with the eScript Significant upside beginning to emerge Revenues doubled in 2023 High margin take-rate business Positive EBITDA in 2024 expected >50
Slide 15: Sustainability: Executing on our ambitious goals
Digital health ecosystem Sustainability: Executing on our ambitious goals Healthier People New care service: Diabetes & polymedication consultation Chronic disease services to be expanded Sustainable Planet CO₂ emissions reduced by 13% 2023 Commitment to reduce CO₂ emissions by at least 4.2% p.a. Ca
Slide 16: Agenda
Agenda 1. Business update 2. Digital health ecosystem 3. Financial update 4. Outlook 5. Q&A 6. Back-up | FY23 results
Slide 17: Swift execution towards break-even in base business
Financial update Swift execution towards break-even in base business | FY23 results
Slide 18: Break-even programme led to significant EBITDA improvement and return to revenue growth
Financial update Break-even programme led to significant EBITDA improvement and return to revenue growth Continuous focus on profitable customer base and efficient marketing H2 consolidated revenue up 15.5% (18.1% in LC and 2.1% external), in line with specified full-year guidance Q4 external revenu
Slide 19: Both Germany and Europe segment heading towards EBITDA break-even
Financial update Both, Germany and Europe segment heading towards EBITDA break-even Brand integration further drives consolidated revenue and EBITDA Continued focus on profitable customers and marketing efficiency 11.7% Rx revenue decline yoy, mainly Germany due to delayed bonus ban effect Limited R
Slide 20: Stable KPIs and inflection point in active customers achieved
Financial update Stable KPIs and inflection point in active customers achieved 10.2 9.0 9.1 190 195 185 | FY23 results
Slide 21: Operational expenses improved noticeably
Financial update Operational expenses improved noticeably 23H2 Adj. gross margin increased by 150 bps yoy, due to brand integration and price increases Brand integration of Medpex limited the reduction of personnel expenses and increased distribution expenses Break-even programme with positive impac
Slide 22: Solid balance sheet with strong equity ratio
Financial update Solid balance sheet with strong equity ratio Highly attractive, asset-light business model CHF 151m comfortable cash position plus imminent further inflow due to Swiss property sale Net working capital temporarily increased by CHF 24m to CHF 52m due to strong payables reduction. Nor
Slide 23: Agenda
Agenda 1. Business update 2. Digital health ecosystem 3. Financial update 4. Outlook 5. Q&A 6. Back-up | FY23 results
Slide 24: eRx customer lifetime value 10x more attractive than OTC customers
Outlook eRx customer lifetime value 10x more attractive than OTC customers Adj. EBITDA 2024 eRx impact1 0 Exceptional eCommerce CLV potential Unique customer acquisition opportunity Milestone-based marketing expenses | FY23 results
Slide 25: Outlook now includes eRx indication for 2024
Outlook Outlook now includes eRx indication for 2024 2023: External revenue1 2024 >10% growth (including eRx) CHF in local currency new 1,038m Outlook is indicative, due to unpredictable eRx ramp-up 2023: Further clarity with H1 results Adj. EBITDA 2024 CHF 0m to CHF -35m (including eRx) Previously:
Slide 26: Agenda
Agenda 1. Business update 2. Digital health ecosystem 3. Financial update 4. Outlook 5. Q&A 6. Back-up | FY23 results
Slide 27: Q&A
© DocMorris Q&A
Slide 28: Agenda
Agenda 1. Business update 2. Digital health ecosystem 3. Financial update 4. Outlook 5. Q&A 6. Back-up | FY23 results
Slide 29: EBITDA drivers for 2024
Back-up EBITDA drivers for 2024 eRx ramp-up: Higher sales and contribution margins Break-even programme further eRx ramp up: Marketing campaign reduces operational and structural spending and other ramp-up costs costs Tailwinds Headwinds Gross margin improvement from Material cost and wage inflation
Slide 30: Achieving mid-term guidance: eRx offers attractive unit economics
Back-up Achieving mid-term guidance: Newly opened eRx market in Germany offers highly attractive unit economics & strong contribution margins | FY23 results
Slide 31: H2 2023: Operational expenses improved noticeably yoy
Financial update H2 2023: Operational expenses improved noticeably yoy 23H2 Adj. gross margin increased by 150 bps yoy, due to brand integration and price increases Brand integration of Medpex limited the reduction of personnel expenses and increased distribution expenses Break-even programme with p
Slide 32: Financial maturity and cash flow overview
Back-up Financial maturity and cash flow overview | FY23 results
Slide 33: Shareholder structure
Back-up Shareholder structure | FY23 results
Slide 34: Financial calendar
Back-up Financial calendar | FY23 results
Slide 35: Thank you
Thank you
Slide 36: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by DocMorris AG ("DocMorris" and conditions affecting DocMorris’ markets, and other factors beyond the control of DocMorris). together with its subsidiaries, "we", "us" or "DocMorris") solely for informational purposes and Neither D