Slide 1: H1 results 2024
H1 results 2024 Walter Hess | Marcel Ziwica 20 August 2024
Slide 2: Today's presenters
Today’s presenters Walter Hess Marcel Ziwica CEO CFO | H1 2024 results 2
Slide 3: Agenda
Agenda 1. Business update 2. Financial update 3. Outlook 4. Q&A 5. Back-up | H1 2024 results 3
Slide 4: Key messages and highlights
MST: Do; to be done until August Business update Key messages and highlights 1 CardLink strongly accelerates eRx revenue after pRx drop in Q1, with yoy Rx growth in July 2 Monthly new Rx customers increased 4x yoy 3 Break-even excluding eRx, due to underlying CHF 14m cost improvement yoy 4 TeleClini
Slide 5: At the very beginning to enter and capture the EUR 55bn Rx market
Business update At the very beginning to enter and capture the EUR 55bn Rx market 2022 – April 2024 April 2024+ >2025 «Break-even» «Start digital eRx» «Profitable growth» Streamlining of brands and Entering new eRx market with Attractive platforms CardLink solution unit economics · Reduction of comp
Slide 6: Digitalisation in Germany and eRx at DocMorris taking off
Business update Digitalisation in Germany and eRx at DocMorris taking off Remarkable progress in legislation: Revenue · DigiG and GDNG in force and GVSG1 promoting better chronic care · Cross-quarterly repeat script for chronic patients planned from January 2025 DocMorris eRx growth picks up speed:
Slide 7: CardLink triggers strong demand to redeem eRx with DocMorris
Business update CardLink triggers strong demand to redeem eRx with DocMorris Simple digital eRx redemption via CardLink Monthly new app downloads increased more than 4-fold >4x Card The app for the e-script -Link Scan. Redeem. Simply DocMorris. Jul 23 Okt 23 Jan 24 Apr 24 Jul 24 | H1 2024 results 7
Slide 8: Strong eRx growth overcompensates pRx drop since July
Business update Strong eRx growth overcompensates pRx drop since July · High 2023 pRx base shows strong loyalty of DocMorris customers, even after Rx bonus ban · Fast drop of pRx revenues due to system change to eRx and high statutory insurance share (GKV) · >85% of former pRx customers ordered via
Slide 9: Continuous, encouraging eRx revenue and new customer growth
Business update Continuous, encouraging eRx revenue and new customer growth Monthly average Rx revenue Quadrupling of new Rx grew 36% July on Q1 customers yoy 36% 4x 20 Monthly average Rx revenue in EURm 15 Monthly new Rx customers 10 Card- Link eRx 5 0 Q1 24 Q2 24 July 24 Jul 23 Sep 23 Nov 23 Jan 2
Slide 10: New eRx customer payback in less than 18 months, yet tend to stay for life
Business update New eRx customer payback in less than 18 months, yet tend to stay for life Cumulative contribution margin Typical eRx customer steady state unit economics Contribution · Basket size: >EUR100 · Order frequency p.a.: >4.5x Contribution · Annual contribution: >EUR 631 · Retention rate:
Slide 11: Acceleration of successful Gesundbergs eRx campaign
Business update Acceleration of successful Gesundbergs eRx campaign Strong positive response to Gesundbergs campaign Marketing focus evolved in three phases Digital campaign January – April 2024: · >900m ad impressions Create awareness · Cost per app install Switch pRx patients to eRx with QR reduce
Slide 12: TeleClinic is expanding fast as a key pillar of the digital health ecosystem
Business update TeleClinic is expanding fast as a key pillar of the digital health ecosystem Large untapped market with regulatory tailwind Numerous strategic partners won 20m 6m +20m > EUR 50 bn1 medical consultations in Germany members members members +40 more ~30% acute ~70% chronic health partne
Slide 13: TeleClinic is the leading telemedicine platform in Germany
Business update TeleClinic is the leading telemedicine platform in Germany Healthcare platforms for fully reimbursed treatments High entry barriers Treatments p.a. in Active doctors on Ecosystem · Requirement to be integrative part of the million platform in thousands partnerships complex and decent
Slide 14: Sustainability targets exceeded; tremendous CO2 reduction
Business update Sustainability targets exceeded; tremendous CO2 reduction Healthier People · New chronic care services: HIV & kidney health · New clinical pharmacy services and repeat script scaling Sustainable Planet · DE segment powered with renewable energy, saving ~75% scope 1 & 2 emissions Cari
Slide 15: Agenda
Agenda 1. Business update 2. Financial update 3. Outlook 4. Q&A 5. Back-up | H1 2024 results 15
Slide 16: Continuous execution of path to profitability programme led to break-even in base business
Financial update Continuous execution of path to profitability programme led to break- even in base business CHF 90m savings already achieved. Even more executed H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H2 2024 42m 24m 10m 7m 7m Incremental -14m eRx marketing -20m -21m (attributable 13m -31m1
Slide 17: Revenue growth and stable EBITDA despite pRx drag and incremental eRx marketing
Financial update Revenue growth and stable EBITDA despite pRx drag from Q1 and incremental eRx marketing spent External revenue in LC Adj. gross margin2 Adj. EBITDA & margin2 · Continuous focus on profitable EUR m CHF m customer base and efficient marketing 8.4% 0 bps 40 bps despite eRx campaign · R
Slide 18: Both segments, Germany and Europe, improve adj. EBITDA margins yoy
Financial update Both segments, Germany and Europe, improve adj. EBITDA margins yoy External revenue in LC Adj. gross margin2 Adj. EBITDA & margin2 8.9% · OTC revenue grew 9.7% (12.5% in LC) EUR m 20 bps CHF m 20 bps · Rx down at start of H1 as eRx shift led to patients not being able to redeem pape
Slide 19: Inflection point in active customer growth confirmed
Financial update Inflection point in active customer growth confirmed Million active customers1 last 12 months Million site visits in last 12 months 9.0 9.1 10.0 195 185 195 H1 2023 H2 2023 H1 2024 H1 2023 H2 2023 H1 2024 Basket size2 in EUR Order frequency3 Repeat order rate4 in % 101 103 102 79 77
Slide 20: Strong improvement of personnel expenses partially compensate for incremental eRx marketing
Financial update Strong improvement of personnel expenses partially compensate for incremental eRx marketing Margin Margin in CHF m H1 2023 H1 2024 in % in % External revenue1 501.4 530.1 External revenue1, in local currency 501.4 543.4 Consolidated revenue 463.0 496.3 · Significant cost margin impr
Slide 21: Solid balance sheet with comfortable cash position
Financial update Solid balance sheet with comfortable cash position 31 Dec 30 Jun in CHF m % % 2023 2024 Cash and cash equivalents 54.0 105.1 Current financial assets 97.0 90.0 · Highly attractive asset-light business model Receivables 79.2 82.0 · Comfortable cash position of CHF 195.1m plus ~CHF 26
Slide 22: Agenda
Agenda 1. Business update 2. Financial update 3. Outlook 4. Q&A 5. Back-up | H1 2024 results 22
Slide 23: Key takeaways: CardLink is a great success
Business update Key takeaways 1 CardLink is a great success 2 App downloads, Rx sales and new Rx customers are growing significantly since CardLink 3 eRx unit economics and key KPIs are better than expected 4 eRx is the proven driver for profitable growth 5 Unique strategic opportunity to invest in
Slide 24: Lower outlook: Investing in new eRx customer growth
Outlook Lower outlook: Investing in new eRx customer growth 2023: • Switching from indicative to External revenue1 2024 5% to 10% growth (including eRx) CHF firm outlook in local currency previously: >10% growth (including eRx) 1,038m • Lower revenue due to: Around CHF -50m (break-even excl. eRx) 20
Slide 25: Agenda
Agenda 1. Business update 2. Financial update 3. Outlook 4. Q&A 5. Back-up | H1 2024 results 25
Slide 26: © DocMorris SA
© DocMorris SA
Slide 27: Agenda
Agenda 1. Business update 2. Financial update 3. Outlook 4. Q&A 5. Back-up | H1 2024 results 27
Slide 28: EBITDA drivers for H2 2024
Back-up EBITDA drivers for H2 2024 eRx ramp-up, cross-selling and repeat script lead to 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 improv
Slide 29: Achieving mid-term guidance: attractive eRx unit economics
Back-up Achieving mid-term guidance: Newly opened eRx market in Germany offers highly attractive unit economics & strong contribution margins Unit economics OTC pRx eRx DOCM Mid-term development Basket size / revenue EUR 40 EUR 100 EUR 100 - Cross-selling, repeat script Product mix, Gross margin EUR
Slide 30: Debt maturity and cash flow overview
Back-up Debt maturity and cash flow overview in CHF m H1 2023 H2 2023 H1 2024 Maturity profile as of 30 June 2024 Cash start of period 126.0 199.7 54.0 Coupon Operating cash flow (34.6) (50.2) (11.1) 2.5 % 3.0 % Conversion Financing cash flow (14.3) (3.2) 191.9 price CHF Investing cash flow (24.0) (
Slide 31: FY 2023: Operational expenses improved noticeably
Back-up FY 2023: Operational expenses improved noticeably Margin Margin FY yoy in CHF m FY 20221 FY 20232 in % in % in % External revenue3 1,159.5 1,037.5 (10.5) · 23H2 Adj. gross margin increased External revenue3, in local currency 1,159.5 1,073.1 (7.4) by 150 bps yoy, due to brand Consolidated re
Slide 32: Shareholder structure
Back-up Shareholder structure As of 15 August 2024 As of 15 August 2024 100% free float Shares 14,820,639 UBS Fund Management 5.61% Thereof own shares 3,020,072 Frank M. Sands, Jr. 4.93% Thereof share lending facility1 3,018,596 Psquared Asset Management 3.63% Shares outstanding 11,800,567 Swisscant
Slide 33: Financial calendar
Back-up Financial calendar Date Event/Publication 20 August 2024 H1 2024 Results (incl. conference call) 15 October 2024 Q3 2024 Trading Update 21 January 2025 Revenue 2024 13 March 2025 2024 FY Results and Outlook 2025 (incl. conference call) 17 April 2025 Q1 2025 Trading Update 8 May 2025 Annual G
Slide 34: Thank you
Thank you
Slide 35: 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