Docmorris Ltd · SIX:DOCM
Docmorris — H1 2023 Earnings Presentation
34 slides from Docmorris's earnings presentation, Aug 17, 2023
Slide 1: H1 results 2023
© DocMorris H1 results 2023 Walter Hess | Marcel Ziwica | Madhu Nutakki 17 August 2023
Slide 2: Today's presenters
Today's presenters Walter Hess CEO @DocMorris | H1 results2023,
Slide 3: Agenda
Agenda 1. Business update 2. DocMorris ecosystem 3. Financial update 4. Outlook 5. Q&A 6. Back-up @DocMorris | H1 results 2023
Slide 4: Business update: Key messages and highlights
Business update Key messages and highlights 1 On track to profitable growth 2 eRx mandatory as of January 2024 3 Seamless digital eRx channel Hi targets achieved: - Inflection point: return to quarterly revenue growth - EBITDA margin improves by 6.6 pptyoy Hi Milestones achieved: - Swiss business sa
Slide 5: Business update: Delighting patients and customers with health in one click
Business update Delighting our patients and customers with health in one click The most customer-centric, convenient and caring digital health ecosystem Unique eRx and chronic care experience pect patiners Profitable >and BPC business Extended Marketplace offering @DocMorris | H1 results 2023 - Digi
Slide 6: eRx rollout progress
1 Increase calculated on 7 day average in the last 10 days compared to the 7 day average on June 30th | 2 KBV: National Physician Association, German: Kassenärztliche Bundesvereinigung (KBV) | 3 www.deutsche-apotheker-zeitung.de 6
Slide 7: eRx redemption channels
Similar process and equal data protection standard Redemption channels are easy, convenient and digital as use of eGK in local pharmacies 1 KIM: electronic letters between healthcare providers (German: Kommunikation im Medizinwesen) | 2 eGK: electronic health insurance card (German: elektronische Ge
Slide 8: Agenda
Agenda Business update DocMorris ecosystem Financial update Outlook Q&A Back-up nu WN @DocMorris | H1 results 2023
Slide 9: Ecosystem
< 2020 2021 2022 2023 2024+ Chronic Care Ecosystem Patient Services eRx Marketplace ePharmacy Patient and Chronic Care Services: Patient adherence, health management Rx Services: Medication management, pharmaceutical advice, telemedicine Health Commerce: Integrated shopping experience for OTC, BPC,
Slide 10: Customer benefits of eRx
convenience peace of mind improve adherence simplified process medication safety 10
Slide 11: DocMorris ecosystem: Improved shopping cart experience
DocMorris ecosystem Improved new shopping cart experience New cart / check-out Customer journey enhancements State-of-the-art design ° Cart performance < 1 sec @DocMorris a e Real time product availability and price updates cc Ihr Warenkorb Bestellbersicht ‘send on esate thre Ueferung Rezepifiele Pr
Slide 12: Recommendation engine
Recommendation engine Recommends substitutes Recommends complementary products Enables to buy it again based on past purchases 12
Slide 13: Agenda
Agenda Business update DocMorris ecosystem Financial update Outlook Q&A Back-up nu WN > @DocMorris | H1 results 2023 13
Slide 14: CHF 76m savings already achieved, even more executed
CHF 76m savings already achieved, even more executed H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H2 2024 42m 24m 10m -21m -31m -55m Experience (faster check-out, chronic care, medication services) Long-tail marketplace (larger assortment, higher conversion) -97m1 Eurapon discontinuation, closure
Slide 15: Revenue, gross margin and adj. EBITDA (consolidated)
Revenue Gross margin Adj. EBITDA (consolidated) (margin) CHF m -6.4% 550 bps 660 bps 495 436 463 16.1% 18.4% 21.6% -55 -31 -21 (-11.1%) (-7.1%) (-4.5%) H1 H2 H1 H1 H2 H1 H1 H2 H1 20221 20221 2023 20221 20221 2023 20221 20221 2023 1 Restated for continuing businesses excl. CH segment 15
Slide 16: Revenue, gross margin and adj. EBITDA by segment
Revenue Gross margin Adj. EBITDA (consolidated) (margin) CHF m -5.4% 570 bps 600 bps 454 404 430 15.2% 17.8% 20.9% -33.7 -14.2 -6.1 (-7.4%) (-3.5%) (-1.4%) -19.8% 210 bps 1280 bps 39 31 31 24.5% 24.1% 26.6% -6.4 -3.3 -1.1 (-16.4%) (-10.6%) (-3.6%) -14.5 -13.3 -13.6 H1 H2 H1 H1 H2 H1 H1 H2 H1 2022 20
Slide 17: Customer KPIs
Site visits1 Active customers2 in m H1 2022 FY 2022 H1 2023 H1 2022 FY 2022 H1 2023 Basket size3 in EUR Order frequency4 Repeat order rate5 in EUR 101 100 101 79% 78% 76% 3.8 3.8 4.4 39 39 41 2.1 2.1 2.1 H1 2022 FY 2022 H1 2023 H1 2022 FY 2022 H1 2023 H1 2022 FY 2022 H1 2023 Rx OTC Rx OTC 1 number o
Slide 18: Income statement H1 2023
H1 Margin H2 Margin H1 Margin Yoy in CHF m 20221 in % 20221 in % 2023 in % % External revenue 634.6 524.9 501.4 (21.0) External revenue, in local currency (17.3) Consolidated revenue 494.6 436.3 463.0 (6.4) Gross profit adj. 80.7 16.3 80.7 18.5 99.9 21.6 23.9 Personnel expenses adj. (56.0) (11.3) (5
Slide 19: Balance sheet
in CHF m 31 Dec % 30 June % 2022 2023 Cash and cash equivalents 126.0 199.7 Current financial assets 30.4 82.4 Receivables 156.3 68.1 Inventories 83.2 43.7 Property, plant & equipment 132.0 96.9 Intangible assets 571.9 519.8 Total assets 1’099.4 1’010.5 Financial liabilities 63.9 52.0 Payables & acc
Slide 20: Agenda
Agenda Business update DocMorris ecosystem Financial update Outlook Q&A Back-up DAU RW N > @DocMorris | H1 results 2023 20
Slide 21: Revenue outlook chronic and non-chronic
100% 75% 50% 25% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3E Q4E 2022 2023 -25% Revenue chronic Revenue non-chronic YoY QoQ -50% Indicative only | Restated for continuing businesses excl. CH segment | Horizontal columns: Length indicates duration of impact, height indicates magnitude of impact on revenues 21
Slide 22: Outlook
1 External revenue consists of the consolidated revenue of DocMorris plus mail order revenues of pharmacies supplied by DocMorris, less the consolidated revenue from supplying them | 2 Restated for continuing businesses excl. CH segment 22
Slide 23: Agenda
Agenda Business update DocMorris ecosystem Financial update Outlook Q&A Back-up Aa RW N > @DocMorris | H1 results 2023 23
Slide 24: Q&A
© DocMorris Q&A
Slide 25: Agenda
Agenda Business update DocMorris ecosystem Financial update Outlook Q&A Back-up Au RW N > @DocMorris | H1 results 2023 25
Slide 26: Back-up: EBITDA drivers for 2023
Back-up EBITDA drivers for 2023: On track for guidance Break-even programme improves marketing efficiency, distribution and structual costs Strong gross margin improvement due to selected price increases, consolidated procurement and brand integration (especially Medpex) Focus on overhead efficienci
Slide 27: Unit economics OTC, pRx, eRx
Unit economics OTC pRx eRx DOCM Mid-term development Basket size / revenue EUR 40 EUR 100 EUR 100 - Cross-selling product mix, Gross margin EUR 11 28% EUR 18 18% EUR 22 21% - buying synergies Fulfillment / operations EUR 6 14% EUR 9 9% EUR 7 7% - scale effects Contribution margin Marketplace & after
Slide 28: Cash flow and maturity profile
in CHF m H1 2022 H2 2022 H1 2023 Cash start of period 277.7 199.2 126.0 Maturity profile as of 30 June, 23 Coupon Operating cash flow (40.2) (57.1) (34.6) in CHF m Financing cash flow (5.7) 44.8 (14.3) 2.5% Investing cash flow (29.7) (60.1) (24.0) 2.75% Sale CH segment net 282.7 31 CHF 53m on 31 Jul
Slide 29: Restated financials H1 2022, H2 2022, FY 2022
H1 2022 H2 2022 FY 2022 in CHF m H1 2022 H2 2022 FY 2022 restated1 restated1 restated1 External revenue 963.9 634.6 872.8 524.9 1’836.7 1’159.4 Consolidated revenue 824.0 494.6 784.2 463.3 1’608.2 931.0 Gross profit adj. 121.6 79.8 125.2 80.7 246.8 160.2 Personnel expenses adj. (77.4) (57.4) (78.2)
Slide 30: eRx information letters
• • • • • • • • • • • • • • • 1 Information letters are prepared for patients who are first time users of a specific medicine or group of drugs 30
Slide 31: Timeline (indicative)
1 Where dates are not shown, timings are indicative 31
Slide 32: Share structure as of 17 Aug 2023
as of 17 Aug, 2023 30 June 2023 Shares (as per H1 financial report) 13’662’456 100% Free float 4.93% Thereof own shares 1’998’062 3.26% Thereof share lending facility1 1’900’000 3.06% 0.66% Shares outstanding 11’762’455 Convertible Bond 20-25 1.34% (outstanding CHF 144m, conversion price CHF 142.4)
Slide 33: Thank you
Thank you
Slide 34: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by DocMorris AG ("DocMorris” and together with its subsidiaries, "we' or "DocMorris") solely for informational purposes and has not been independently verified and no representation or warranty, express or implied, is made or given