Redcare Pharmacy N.v. · XETR:RDC
Redcare Pharmacy — Q1 2023 Earnings Presentation
26 slides from Redcare Pharmacy's earnings presentation, May 2, 2023
Slide 1: Q1 2023 Earnings Call Presentation
Q1 2023 EARNINGS CALL PRESENTATION. SEVENUM, 2 MAY 2023
Slide 2: Live from our headquarters in Sevenum
2 Q1 2023 EARNINGS CALL LIVE FROM OUR HEADQUARTERS IN SEVENUM. JASPER EENHORST, CFO. STEFAN FELTENS, CEO.
Slide 3: Today's Agenda
3 TODAY‘S AGENDA. BUSINESS PERFORMANCE. UPDATE ON BUSINESS AND STRATEGY.
Slide 4: Business Performance
oe SHOP APOTHEKE BUSINESS PERFORMANCE.
Slide 5: Strong Q1 with 22% sales growth and EBITDA margin up 3.8pp
5 HIGHLIGHTS Q1 2023: STRONG Q1 WITH 22% SALES GROWTH AND EBITDA MARGIN UP 3.8PP VS. LAST YEAR TO +2.4%. • DOUBLE-DIGIT SALES GROWTH – IN ALL SEVEN COUNTRIES. NON-RX SALES GROWTH 23%, TOTAL SALES GROWTH 22%. ACTIVE CUSTOMER BASE UP 0.4M TO 9.7M. CONTINUED HIGH CUSTOMER SATISFACTION; NPS ABOVE 70. •
Slide 6: Key Financials: Double-digit total sales growth
6 KEY FINANCIALS. DOUBLE-DIGIT TOTAL SALES GROWTH. 3M TOTAL SHOP APOTHEKE EUROPE 3M DACH 3M INTERNATIONAL sales | vs. prior year sales | vs. prior year sales | vs. prior year in EUR million in EUR million in EUR million Non-Rx +23% 372 289 305 235 +19% 83 +22% +23% 70 3M 2022 3M 2023 3M 2022 3M 2023
Slide 7: Active customer base close to 10 million
7 CONTINUOUSLY STRONG NET PROMOTER SCORE. ACTIVE CUSTOMER BASE CLOSE TO 10 MILLION. Number of active customers in millions +1.4M NET PROMOTER SCORE (NPS). (Q1 2022: 73) 71 9.7M 8.3M € 57.94 31 MAR 2022 31 MAR 2023 AVERAGE SHOPPING BASKET VALUE. (Q1 2022: EUR 56.79)
Slide 8: Share from returning customers continuously high
8 MORE THAN 7 MILLION ORDERS IN ONE QUARTER. SHARE FROM RETURNING CUSTOMERS CONTINUOUSLY HIGH. Number of orders in thousands Share of repeat orders in percentage of total Source: SHOP APOTHEKE EUROPE.
Slide 9: Key Financials: Profit & Loss
9 KEY FINANCIALS: PROFIT & LOSS. EFFICIENCY GAINS AND SCALE EFFECTS DRIVE EBITDA. IN MILLIONS OF EUROS. Better / (Worse) Better / (Worse) Q1 2022 Q1 2023 Q4 2022 Q1 2023 than Q4 2022 ADJUSTED NUMBERS. than Q1 2022 Sales 305 372 22.1% 328 372 Gross profit margin 26.6% 27.7% 1.1 pp 27.8% 27.7% (0.1) p
Slide 10: Key Financials: Gross Profit Margin
10 KEY FINANCIALS: GROSS PROFIT MARGIN. INCREASED GROSS MARGINS. ADJ. GROSS PROFIT MARGIN 1.5 (0.1) pp in percentage of sales 0.0 (0.3) 27.7% 27.8% 27.7% 26.6% Product Margin Country/ Q4 2022 Q1 2022 Other Q1 2023 Q1 2023 (incl. Mix) RX-OTC Mix
Slide 11: Key Financials: Selling & Distribution Ratio
11 KEY FINANCIALS: SELLING & DISTRIBUTION RATIO. IMPROVED MARKETING AND OPERATIONAL EFFICIENCY. ADJ. SELLING & DISTRIBUTION COSTS 1.3 pp in percentage of sales 0.6% 2.7% (0.2%) (0.4%) (23.8%) (22.5%) (22.5%) (25.0%) Shipping Q1 2022 Marketing Operational Other Q1 2023 and Q4 2022 Q1 2023 Labour Pack
Slide 12: Key Financials: Cash Flow
12 KEY FINANCIALS: CASH FLOW. CASH BALANCE UP 32M. OPERATING CASH: EUR +44M. (8) 212M Positive operating result and (4) 37 favourable working capital movements. 180M 7 INVESTMENTS: EUR 8M. Mainly IT. CASH AND OPERATING RESULT WORKING CAPITAL INVESTMENTS FINANCING CASH AND FINANCING: EUR -4M. SHORT-T
Slide 13: Our strong commitment to sustainability paid off
13 OUR STRONG COMMITMENT TO SUSTAINABILITY PAID OFF. • RECENTLY AWARDED MSCI AAA RATING. • AMONG THE TOP 4 PERCENT IN OUR INDUSTRY GLOBALLY. • UPGRADED FROM AA. Michaela Tünnermann Pharmacist.
Slide 14: Update on Strategy and Business
14 UPDATE ON STRATEGY AND BUSINESS.
Slide 15: Update on E-Rx: Ready for more
15 UPDATE ON E-RX. READY FOR MORE. • THE NUMBER OF PRESCRIPTIONS REDEEMED KEEPS RISING - OVER 1.7 MILLION BY THE END OF APRIL 2023. • ON AVERAGE 7,500 TO 8,000 E-PRESCRIPTIONS ARE REDEEMED DAILY. • E-RX OBLIGATION PROBABLY BY 2024. AWAITING DETAILS FROM THE MINISTRY. READY FOR A FUTURE WITH E-PRESCR
Slide 16: Strategic Partnership with Galenica
16 STRATEGIC PARTNERSHIP WITH GALENICA. AIM: CREATION OF THE LEADING ONLINE PHARMACY IN SWITZERLAND. • COMBINING THE BUSINESS ACTIVITIES OF MEDISERVICE AND SHOP-APOTHEKE.CH IN ONE COMPANY. • MERGING OF MEDISERVICE’S SPECIALTY PHARMACY EXPERTISE WITH SHOP APOTHEKE’S E-COMMERCE PROFICIENCY. • RESULTIN
Slide 17: The Transaction
17 STRATEGIC PARTNERSHIP WITH GALENICA. THE TRANSACTION. • MEDISERVICE TO TAKE OVER THE BUSINESS ACTIVITIES OF SHOP-APOTHEKE.CH. • SHOP APOTHEKE EUROPE WILL HOLD 51% AND GALENICA 49% OF THE JOINT-VENTURE MEDISERVICE. • SHOP APOTHEKE EUROPE PAYS WITH A 6% SHARE CAPITAL INCREASE. IN ADDITION, GALENICA
Slide 18: Post Transaction: Financial Reporting
18 POST TRANSACTION. FINANCIAL REPORTING. • IN ACCORDANCE WITH IFRS10, FULL CONSOLIDATION OF MEDISERVICE AG FIGURES AS OF DEAL CLOSING DATE. • CURRENT MEDISERVICE BUSINESS EXPECTED NUMBERS FOR FULL YEAR 2023: SALES AROUND CHF 450 MILLION AND EBITDA MARGIN 2 TO 3%. ALL SALES ARE PRESCRIPTON MEDICATIO
Slide 19: Rebranding Approved
Corporate ov REBRANDING APPROVED.
Slide 20: Redcare Pharmacy corporate brand
Redcare PHARMACY 20 It is all about our corporate brand and our intention to rename the N.V. e-.08 25 eSe st Redcare SHOP APOTHEKE PHARMACY EUROPE
Slide 21: Keeping local hero brands
Redcare PHARMACY pal While keeping the names of our successful local hero brands, today. SHOP APOTHEKE © SHOP PHARMACIE patton
Slide 22: New corporate brand
Redcare PHARMACY 22 e} New corporate brand One corporate vision: Redcare Pharmacy, positioning us best for future long-term growth and value creation. We are keeping our local hero brands, today. No extraordinary costs.
Slide 23: What's next: ticker change from SAE to RDC
(RDC . « ¢ What‘s = 5 n ext e Change ticker symbol ____ from : SAE to RDC AGM _ formalise Celebrate ° ‘ a name change name change with all Employees Inform our stakeholders — |
Slide 24: Guidance for FY 2023 reconfirmed
24 GUIDANCE FOR FY 2023 RECONFIRMED. Excluding impact from a potential surge in e-prescriptions (E-RX) in Germany. 10% TO 20% GROWTH IN NON-RX SALES. • NON-RX ACCOUNTED FOR EUR 1.1 BILLION (90%) OF SALES IN 2022. FREE CASH FLOW ZERO; BETWEEN EUR -20M AND +20M. • FCF AS PER THE MOST COMMONLY USED DEF
Slide 25: Time to ask questions
25 TIME TO ASK QUESTIONS.
Slide 26: Presentation & interim report for download
26 PRESENTATION & INTERIM REPORT FOR DOWNLOAD ON shop-apotheke-europe.com