Redcare Pharmacy : Zwischenmitteilung Q3 2024 (Englisch)

Interim

report

30 September 2024

ABOUT REDCARE PHARMACY

About Redcare Pharmacy.

Originally founded in 2001, Redcare Pharmacy (formerly known as SHOP APOTHEKE EUROPE) today is the leading e-pharmacy in Europe, currently active in seven countries: Germany, Austria, France, Belgium, Italy, the Netherlands and Switzerland.

Headquartered in Sevenum, close to the Dutch city of Venlo and in the heart of Europe, the company has locations in Cologne, Berlin, Munich, Tongeren, Warsaw, Milan, Lille and Eindhoven.

As the one-stop pharmacy of the future, Redcare Pharmacy offers about 12 million active customers a wide range of more than 150,000 products at attractive and fair prices. Besides OTC, nutritional supplements, beauty and personal care products as well as an extensive assortment of health- related products in all markets, the company also provides prescription drugs for customers in Germany, Switzerland and the Netherlands.

Pharmaceutical safety is of top priority. Being a pharmacy at its core, Redcare stands for comprehensive pharmaceutical consultation service. Since care is at the heart of everything Redcare does, the company provides services for all stages of life and health. This ranges from its marketplaces to unique delivery options and medication management.

Redcare Pharmacy N. V. has been listed on the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) since 2016.

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TABLE OF CONTENTS

Table of contents.

1 Interim group management report.
Business model, group structure and corporate governance.	5
Business development.	5
Segment performance.	8
Assets, liabilities and financial position.	10
Risks and opportunities.	11
Important events during the reporting period.	11
Events after the balance sheet date.	11
Forecast.	11

2 Appendix.
Unaudited consolidated statement of profit and loss.	12
Unaudited consolidated statement of financial position.	13
Unaudited interim consolidated statement of cash flows.	14
Segment information.	15
Glossary.	19
Contact.	20

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 31 December 2023 and any public announcements made by Redcare Pharmacy N.V. during the interim reporting period.

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HIGHLIGHTS

Key figures.

• Continuing to build on our strong growth across Europe.

Gross margin:

at 23.2 % in Q3

Revenue in Q3:	+ 20.8 %
EUR 575 million

	Active customers:
Average	11.9 million

shopping basket size:

€ 61.9

+ 1.4 MILLION

CUSTOMERS YOY

Q3 2023: € 60.2

Repeat orders in Q3:

88 Percent

Parcels sent in Q3: ~ 95,000 parcels a day

Site visits in Q3:	+ 13.7%
122 million

Customer satisfaction: 69

NPS (Net promoter score)

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INTERIM GROUP MANAGEMENT REPORT

• Business model, group structure and corporate governance.

The statements made in the 2023 Annual Report regarding the business model, the group structure, the management system and the corporate governance practices still apply at the time of publication of this interim report.

• Business development.

Consolidated revenues and results of operations.

Sales of prescription and non-prescription pharmaceuticals and pharmacy-related beauty and personal care products are subject to seasonal fluctuations, with demand for pharmaceuticals especially high during the first and fourth quarters of the year.

In the third quarter of 2024, Redcare Pharmacy sustained its revenue growth trajectory. Group revenue increased by 20.8 % to EUR 574.6 million in Q3 2024 (Q3 2023: EUR 475.5 million). Group revenue for the first nine months of 2024 grew by 33.8 % to reach EUR 1.7 billion (9M 2023: EUR 1.3 billion).

The number of active customers also increased significantly, building on a record of consecutive years of growth. Redcare Pharmacy saw a net addition of 1.4 million active customers compared to 30 September 2023 and

0.4 million during Q3, bringing the total number of active customers to 11.9 million. Since the beginning of 2024, the active customer base has grown by 1.1 million.

The number of orders reached 8.8 million in Q3, with the size of the average shopping basket value, excluding MediService and platform, increasing to EUR 61.9 (Q3 2023: EUR 60.2). The share of repeat orders was 88 % in Q3, 2 percentage points above the previous year's level of 86 %, while the return rate remained minimal at less than 1 %.

			2022					2023					2024
		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Page visits (million)	93.3	85.7	79.5	89.3	110.9	109.2	107.0	112.6	126.7	125.6	121.7
Mobile page visits (million)	67.7	60.6	56.3	67.1	83.1	82.5	79.4	85.1	98.1	96.7	92.3
Ratio mobile (in %)	73	71	71	75	75	76	74	76		77	77	76
Orders (million)	6.2	5.8	5.6	6.5		7.5	7.1	7.0	7.8		8.9	8.7	8.8
Orders by existing clients (in %)		81	83	85	84		84	84	86	87		87	87	88
Return rate (in %)	0.7	0.8	0.8	0.7		0.7	0.7	0.8	0.8		0.8	0.7	0.8
Active customers (million)	8.3	8.6	8.9	9.3		9.7	10.1	10.5	10.8		11.2	11.5	11.9
Average shopping cart (in €)	56.8	57.9	59.8	58.8		57.9	58.9	60.2	60.6		58.9	59.7	61.9

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INTERIM GROUP MANAGEMENT REPORT

Site visits (in million)

Share of mobile visits (%)

110.9

75 %

93.3			89.3
73 %	85.7
79.5	75 %
	71 %
	71 %

Q1	Q2	Q3	Q4	Q1

2022

Number of orders (in '000)

Share of repeat orders (%)

7,480

84 %

6,248			6,461
		84 %
81 %	5,777	5,619
83 %
	85 %

Q1

Q2

Q3

Q4

Q1

2022

109.2 107.0

76 % 74 %

Q2 Q3

2023

7,136 6,986

84 % 86 %

Q2 Q3

2023

126.7

77 %

112.6

76 %

Q4 Q1

8,872

87 %

7,810

87 %

Q4 Q1

125.6

121.7

77 %

76 %

Q2 Q3

2024

8,730 8,777

87 % 88 %

Q2 Q3

2024

Redcare Pharmacy's continuously growing active customer base.

Number of active customers (in millions)
									11.2	11.6	11.9
								10.8
					10.1	10.5
				9.7
			9.3
	8.6	8.9
8.3
Q1	Q2	Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2	Q3
		2022				2023			2024

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INTERIM GROUP MANAGEMENT REPORT

Gross profit at Group level increased from EUR 109.4 million to EUR 133.3 million in the third quarter, a growth rate of 21.9 % compared to the same period last year. The consolidated gross margin stands at 23.2 %

(Q3 2023: 23.0 %). While the lower share of MediService AG in total sales had an upward impact on the gross margin, the higher share of Rx sales in Germany as well as a different Country-mix had the opposite effect at a Redcare Pharmacy level.

Adjusted Selling and Distribution (S&D) expenses for the total business were EUR 105 million in Q3 (Q3 2023: EUR 80.7 million), or 18.3 % of sales (Q3 2023: 17.0 %). The main reasons for the increase were inflationary related cost increases and intentionally higher marketing expenditure, especially starting in September, to further boost the fast-growing e-Rx business in Germany.

Adjusted Administrative costs amounted to EUR 17.2 million in Q3 (Q3 2023: EUR 13.6 million). Adjusted administrative costs as a percentage of sales were 3.0 % in the third quarter, roughly the same level as in the prior-year quarter (2.9 %).

Redcare Pharmacy's adjusted EBITDA stood at EUR 11.4 million (margin 2.0 %) in Q3 2024. Last year, it was EUR 15.3 million (margin 3.2 %).

With depreciation expenses of EUR 17.1 million (Q3 2023: EUR 13.7 million), which are reflective of this year's

higher investment level, EBIT was EUR - 6.7 million for Q3 2024 (Q3 2023: EUR -2.0 million).

Net financial costs and income taxes amounted to EUR - 0.5 million compared to EUR + 11.1 million in Q3 2023. The previous year's quarter included a non-cash release (gain) of EUR 12.9 million due to a fair value adjustment of the contingent consideration liability related to the acquisition of First A, later renamed GoPuls.

Consolidated revenues	Consolidated gross profit
(in € million)	(in € million)

+ 20.8 %	+ 21.9 %
Q3 2024	Q3 2024
574.6	133.3
Q3 2023	Q3 2023
475.5	109.4

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INTERIM GROUP MANAGEMENT REPORT

• Segment performance.

DACH segment.

In Q3 2024, DACH - Redcare Pharmacy's largest segment in terms of revenue, covering operations in Germany, Austria and Switzerland - grew by 20.4 % year on year. In euro terms, revenues increased to EUR 469.3 million from EUR 389.7 million in Q3 2023. Segment revenues for the first nine months totalled EUR 1,376 million, compared to EUR 1,013 million in the same period last year. Prescription (Rx) sales in Germany showed the strongest growth in the third quarter at 80.6 % year on year, while non-Rx sales also grew at double-digit rates in all three countries, with an average growth rate of 19 %.

Compared to last year, gross profit grew by 20.7 % to EUR 106.6 million with a gross margin of 22.7 % (Q3 2023: EUR 88.3 million, 22.6 %). Adjusted EBITDA for Q3 2024 was EUR 14.4 million compared to EUR 19.8 million in Q3 2023, representing a margin of 3.1 % compared to 5.1 % last year.

International segment.

Redcare Pharmacy's International segment (Belgium, France, Italy and the Netherlands) increased revenues by 22.7 % to EUR 105.3 million in the third quarter (Q3 2023: EUR 85.8 million) and by 25.7 % to EUR 319.4 million in the first nine months. The segment's gross profit rose by 26.6 %, from EUR 21.1 million to EUR 26.8 million. The gross margin was 25.4 %, up 0.8 percentage points from 24.6 % last year, mainly benefiting from pricing and product mix. Also driven by a further reduction in S&D costs as a percentage of sales, the adjusted EBITDA margin improved from - 5.3 % in the third quarter of 2023 to - 2.9 %; in euro terms, from - 4.5 million in the third quarter of 2023 to - 3.0 million in the third quarter of 2024.

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INTERIM GROUP MANAGEMENT REPORT

Q3 2024 Segment development

in EUR 1,000

Revenues

Gross Profit

EBITDA

Adjusted EBITDA

DACH		International		Consolidated
469,278	105,270	574,548
106,550	26,764	133,314
13,846		- 3,403		10,443
14,420		- 3,038	11,382

Q3 2023 Segment development

in EUR 1,000		DACH	International	Consolidated
Revenues		389,734		85,766	475,500
Gross Profit		88,262		21,138		109,400
EBITDA	17,500	- 5,771	11,723
Adjusted EBITDA	19,762	- 4,504	15,252

9M 2024 Segment development

in EUR 1,000		DACH	International		Consolidated
Revenues	1,376,008		319,430	1,695,438
Gross Profit	315,524	79,803	395,327
EBITDA	47,786	- 12,670	35,116
Adjusted EBITDA		49,657		- 11,484		38,173

9M 2023 Segment development

in EUR 1,000		DACH	International		Consolidated
Revenues	1,013,299	254,141	1,267,440
Gross Profit	256,288		62,772	319,060
EBITDA		45,864		- 18,985		26,873
Adjusted EBITDA	52,392	- 15,121	37,265

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INTERIM GROUP MANAGEMENT REPORT

• Assets, liabilities and financial position.

Assets and liabilities.

At the balance sheet date, total assets amounted to EUR 1.0 billion, unchanged compared to the year-end 2023. Total non-current assets decreased by EUR 19.2 million, driven by movements in intangible assets of EUR 13.9 million resulting from depreciation and amortisation.

Current assets increased by EUR 16.6 million from EUR 499.5 million to EUR 516.1 million. Inventories rose from EUR 135.8 million to EUR 142.4 million reflecting the overall higher business volume. Cash and cash equivalents increased from EUR 84.2 million to EUR 99.4 million. Cash and cash equivalents exclude marketable securities and fixed-term deposits; these short-term financial assets amounted to EUR 110.5 million at the end of the reporting period (EUR 127.1 million at the beginning of the year). The total of cash and cash equivalents and current financial assets amounted to EUR 209.9 million at the balance sheet date, up from EUR 204.2 million since the start of the year.

Loans and borrowings within non-current liabilities were slightly down by EUR 1.3 million at EUR 234.7 million. An increase of EUR 23.7 million in trade and other payables from EUR 157.6 million to EUR 181.2 million was mainly related to seasonal effects, the general expansion of the business volume and further improvements. The equity ratio was 52.5 % at the reporting date.

Liquidity situation.

Operational cash flow was a positive EUR 39.1 million compared to EUR 69.6 million during the same period of fiscal year 2023. This development was largely driven by the more favourable timing of movements in working capital in the previous year´s period.

Net cash used in investing activities was EUR - 9.3 million in the first nine months of 2024 (previous year: EUR - 3.5 million). In the prior year, the acquisition of MediService was included and the impact of the negative cash balance at the acquisition date was EUR - 23.4 million. Investments in intangible assets and property, plant and equipment amounted to EUR - 29.8 million (previous year: EUR - 26.4 million). The remaining differences are mainly due to the opening and closing balances of marketable securities and fixed term deposits.

Cash flow from financing activities shows an outflow of EUR 14.9 million, compared to an inflow of EUR 19.0 million last year. The previous year's performance was mainly influenced by a capital increase in May 2023, linked to the MediService transaction with Galenica AG, which resulted in a net cash inflow of EUR 29.4 million.

Overall, cash and cash equivalents increased by EUR 15.2 million during the reporting period, reaching EUR 99.4 million as of the balance sheet date. To benefit from interest rates, EUR 110.5 million was invested in short-term securities (fixed deposits) during the reporting period, and this is reflected in other financial assets. As of the end of Q3, cash and cash equivalents, including short-term fixed deposits, amounted to EUR 209.9 million (compared to EUR 204.2 million as of 31 December 2023).

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