Slide 1: Zur Rose Group
Zur Rose Group
Slide 2: H1 2020 Results Conference Call
H1 2020 Results Conference Call Zur Rose Group
Slide 3: Today's Presenters
Today's Presenters Walter Oberhänsli Marcel Ziwica Olaf Heinrich Founder, Group CEO Zur Rose Group Group CFO Head Germany
Slide 4: H1 2020 Highlights
H1 2020 Highlights — Bundestag passed PDSG law making eRx mandatory starting 2022 #1 position 1 — Strong partner network established for pre-Gematik roll-out for eRx — TeleClinic acquisition as strong addition to eRx approach Market — Excellent organic growth of DocMorris and medpex 2 Leadership — A
Slide 5: Financial Update
Financial Update Zur Rose Group
Slide 6: Group Sales growth of around 10% in line with guidance
Zur Rose Group sales Group Sales growth of around 10% in line with guidance CH in million CHF at steady exchange rates1 — Sustainable growth +70.6 (+9.2%) — Stockpiling in Q1 and COVID-19 restrictions for doctor visits resulting in softer Q2 DE — Focus on eRx — Stockpiling in Q1 +5.5% +8.5% +90.5% 8
Slide 7: Expanding market leadership with more than 9 million active customers
Group B2C & marketplace KPIs Expanding market leadership with more than 9 million active customers Active customers1 Repeat order rate2 Site visits3 in millions +51.2% 81% 77% 176m 243m 1.1 H1 2019 H1 2020 H1 2019 H1 2020 Basket size4 Order frequency5 in EUR in # 8.1 (8.6%) (8.2%) 6.1 59 54 2.6 2.4
Slide 8: Operational performance improved driven by gross margin
Zur Rose Group income statement Operational performance improved driven by gross margin H1 Margin H1 Margin in million CHF 2019 in % 2020 in % — Growth track record continued Sales incl. medpex in local currency 771.3 841.9 in line with guidance Sales reported 668.4 698.0 — Strong development of gro
Slide 9: EBITDA adjusted before growth initiatives in line with FY guidance
Zur Rose Group income statement EBITDA adjusted before growth initiatives in line with FY guidance H1 2019 H1 2020 EBITDA adj. before EBITDA adjustments EBITDA adj. EBITDA adjustments EBITDA adj. Investments investments in growth in growth in million CHF in million CHF initiatives initiatives (0.4%)
Slide 10: Run-rate analyses show an EBITDA margin of 2-3%
Zur Rose Group income statement Run-rate analyses - assuming full integration - shows an EBITDA margin of 2-3% in relation to current sales 2019 1569 209 15% -159 -12% -53 -4% -39 -3% 29 2% -14 -1% Sales Gross margin Variable costs(1) Marketing Other expenses One-off EBITDA Increasing OTC margin Low
Slide 11: Strong financial position ahead of eRx roll-out
Zur Rose Group balance sheet Strong financial position ahead of eRx roll-out 31 Dec 30 June in million CHF 2019 % 2020 % Cash and cash equivalents 204.7 258.0 — Highly attractive, asset-light Receivables 152.6 159.1 business model Inventories 70.6 105.7 — Strong liquidity position with CHFm 258 of c
Slide 12: Strategy Update
Strategy Update Zur Rose Group
Slide 13: Key strategic initiatives
Strategy update Key strategic initiatives 1 1. Easing and innovating health journeys - with TeleClinic acquisition Healthcare 2 2. Partnerships with best-in-class digital solutions in the pipeline Ecosystem 3 3. Enabled by leading developments in technology 1 1. #1 position in OTC with 8 million cus
Slide 14: Healthcare Ecosystem
Healthcare Ecosystem Zur Rose Group
Slide 15: To create a world where everyone can manage their health in one click
To createa world where everyone can manage their health in one click Zur Rose Group 15
Slide 16: Health in one click
Healthcare ecosystem Health in one click —Personalized treatment journeys —Convenient access to products and best-in-class digital solutions —Ensured effective medication and better outcomes Zur Rose Group 16
Slide 17: Creating seamless consumer journeys from awareness to adherence
Healthcare ecosystem Creating seamless consumer journeys from awareness, diagnosis, treatment to adherence Awareness/ Diagnosis Treatment Adherence/ activation monitoring ellness W mart S management nline O treatment & medication Monitoring and diagnosis Pharma portal access care solutio
Slide 18: Leveraging best-in-class digital solutions and convenient access to products
Healthcare ecosystem Leveraging best-in-class digital solutions and convenient access to products for better lives Awareness/ Diagnosis Treatment Adherence/ activation monitoring mart S treatment & medication access nline O consultation Adherence Amanage- dherence Connected Medication ma
Slide 19: Zur Rose Group Ecosystem
Healthcare ecosystem Zur Rose Group Ecosystem Zur Rose Group Note: Displayed logos are showing examples of current and potential partners 19
Slide 20: Acquisition of TeleClinic adds building block of customer journey
Healthcare ecosystem From Diagnosis to Delivery – Acquisition of TeleClinic adds important building block of customer journey to the Group — Germany’s leading telemedicine provider — Reimbursable consultation services compliant with German national health insurance scheme — E-scripts expected to be
Slide 21: Telemedicine gaining momentum in recent months
Healthcare ecosystem «Telemedicine: every second user prefers video Telemedicine consultation hours over visits to the doctor» Bitkom Study: «Digital Health 2020» gaining momentum in «Telemedicine is laying the roadmap for healthcare's recent months future» Entrepreneur.com, August 3, 2020 «62% of G
Slide 22: eRx opportunity
eRx opportunity Zur Rose Group
Slide 23: Regulatory update: eRx mandatory in Germany from 2022 onwards
eRx opportunity Regulatory update: eRx mandatory in Germany from 2022 onwards — PDSG law passed German Bundestag, making eRx mandatory from 2022 onwards — Access to eRx server will be possible for all market participants, including EU mail-order pharmacies — Gematik solution as backbone with interfa
Slide 24: Increasing online penetration through eRx expected
eRx opportunity Increasing online penetration through eRx expected, unlocking substantial upside potential Online penetration Rx in % 20% Rx online market EUR 8.6bn 10% Rx online market EUR 4.3bn 5% Rx online market EUR 2.1bn 1.4%(1) Rx online market EUR 0.6bn Illustrative, assuming constant total m
Slide 25: Adoption curve of marketplace approach vs e-commerce only
eRx opportunity Adoption curve of marketplace approach expected to be much higher than e-commerce only approach Online penetration Rx in % Marketplace approach E-commerce only approach illustrative Development over time Zur Rose Group 25
Slide 26: Preparation for take-off fully accelerated
eRx opportunity Preparation for take-off fully accelerated First-mover phase Harvesting phase Pre-Gematik (2020-2021) Gematik framework (2022 onwards) Physicians eRx Server Pharmacies Physicians eRx Server Pharmacies 27% Phased roll-out to 38’000 50% of pharmacies with the ability 100% of physicians
Slide 27: Partnerships and eHealth-Tec B2B solutions ready for scaling
eRx opportunity Partnerships and eHealth-Tec B2B solutions ready for scaling eRX opportunity Marketplace / Apps Direct eRx server connection Pre-Gematik Physicians Connection via Pharmacies (2020-2021) Basic App Partner network Marketplace Basic Competitor Apps App App Apps Direct eRx server connect
Slide 28: Roadmap to fully harvest eRx opportunity
eRx opportunity Roadmap to fully harvest eRx opportunity 1. Launch eRx marketplace app 2. Become first mover in the eRx opportunity 2020/2021: Pre-Gematik a. Test & learn in §140 SGB V contracts for special care provision (2020-2021) b. Scaling via digital prescription service of TeleClinic c. Full
Slide 29: Launch of eRx marketplace app in Q4 2020
eRx opportunity Launch of eRx marketplace app in Q4 2020 — Launch of DocMorris branded eRx marketplace app on the basis of existing marketplace technology of the group on track for launch in Q4 2020 — Core functions will include full range of Rx, OTC and BPC product offering, pick-up and other deliv
Slide 30: Integration & synergies
Integration & synergies Zur Rose Group
Slide 31: Integration strategy & roadmap – four pillars
Integration & synergies Zur Rose Group integration strategy & roadmap – a combination of four pillars Brands Organisation / IT Platform Logistics Culture Target picture Target picture Target picture Target picture One brand One Organisation One unified platform Efficient and customer centric Shared
Slide 32: Integration roadmap 2020
Integration and synergies DocMorris apo-rot Integration roadmap 2020 – bundeling of service functions, remaining sites as operational hubs — Vitalsana will be fully merged with DocMorris and the Vitalsana site will be closed down — Marketing and customer service departments of Eurapon will be pooled
Slide 33: medpex example shows leading know-how in German OTC market
Integration and synergies medpex example Best-in-class Best-in-class Best-in-class growth rate gross margin profitability shows leading know-how in Sales growth Gross margin EBITDA margin German OTC market +36% 25.8% 28.7% 4.4% Sales growth vs. -0.5% H1 2019 in local H1 2019 H1 2020 H1 2019 H1 2020
Slide 34: Outlook
Outlook Zur Rose Group
Slide 35: Group Outlook 2020
Outlook The latest acquisitions strengthen the Group Outlook market position of the Zur Rose Group. 2020 Taking into account the revenues of medpex, Apotal and TeleClinic, management expects growth of over 10 percent for the full year 2020. Before expenses for additional growth initiatives, especial
Slide 36: Mid-term targets
The Group expects growth in the Rx Outlook business to accelerate significantly from Mid-term targets next year and confirms its medium-term sales expectation of over CHF 3 billion. The medium-term EBITDA target margin, adjusted for growth initiatives, is around 8 percent. The mandatory introduction
Slide 37: Q&A
Q&A Zur Rose Group
Slide 38: Contact Information
Contact Information Walter Oberhänsli Marcel Ziwica Founder, Group CEO Group CFO ir@zurrose.com +41 58 810 11 49
Slide 39: 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