Zur Rose Group continues to grow strongly

EQS Group-Ad-hoc: Zur Rose Group AG / Key word(s): Quarter Results Zur Rose Group continues to grow strongly 21-Oct-2021 / 06:55 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement.

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Frauenfeld, 21 October 2021 
Press release 

Zur Rose Group continues to grow strongly

- Growth continues: revenue up 17.7 per cent in the first nine months of 2021

- France expands by extending product range to include OTC medications

- DocMorris healthcare platform takes next step in its development

- Zur Rose expects external revenue growth of over 15 per cent for the full year In a challenging market environment the Zur Rose Group posted significant growth in the first nine months of 2021. External revenue^[1] increased by 17.7 per cent in local currency terms or 19.7 per cent in Group currency terms to CHF 1,490.8 million. Growth in the third quarter 2021 was 11.9 per cent year-on-year in local currency terms. The number of active customers rose by 400,000 to 12.1 million in the third quarter.^[2]

Significant revenue growth in all markets The Zur Rose Group saw powerful growth in Germany in the first nine months, with external revenue up by 24.9 per cent in local currency terms. The increase is mainly due to the online business in non-prescription drugs and healthcare products, which more than made up for the slight decline in revenue from prescription drugs on a paper prescription. In the Swiss home market Zur Rose grew at a consistently stable 5.3 per cent, which is ahead of the market. The Europe segment reported a pleasing revenue growth with a plus of 20.2 per cent in local currency terms.

DocMorris.fr extends range to include OTC medications DoctiPharma.fr, now DocMorris.fr, the second-largest online pharmaceutical platform in France and part of the largest marketplace in Europe, is extending its product range with a strategic partner in November 2021 to include OTC medications. This will provide customers in France with easy and safe access to a broad range of health products and pharmaceutical advice. The considerably increased customer traffic will also make the platform more attractive for pharmacy partners. As part of this expansion the DoctiPharma brand has been changed to DocMorris, the umbrella brand of the Zur Rose Group for the European healthcare ecosystem. The improved brand identity and services offered are being accompanied by a multimedia campaign. The intention is to extend the service offering at a later stage through a partnership in telemedicine.

DocMorris healthcare platform in Germany takes next step in its development Thanks to the integration of the DocMorris Express marketplace with its network of partner pharmacies and their services, customers of the healthcare platform can now enjoy both mail order and the option of same day express delivery by a local partner pharmacy when ordering medications and healthcare products. This will make the platform even more closely focused on its customers. With its central portfolio of services and easy access through a single app, the DocMorris healthcare platform provides a holistic way for people to manage their health in one click - from diagnosis in an online doctor's consultation and having an e-prescription filled to pharmaceutical advice and checking for interactions, all the way to multiple options for delivery.

The app had a handy scan function for filling e-prescriptions right from the start of the gematik test phase on 1 July 2021. Customers expect functions tailored to their needs when mandatory e-prescriptions are launched nationwide on 1 January 2022. Having e-prescriptions filled has to be user-friendly, have no barriers and offer a free choice of the means of transmission. Scanning the e-prescription token allows patients to send the digital prescription information to their chosen pharmacy securely and rapidly. On 30 September the launch of e-prescriptions on 1 January 2022 was confirmed. The introductory phase in Berlin-Brandenburg as a focus region is being extended by two months by gematik and will be rolled out nationally in December.

Health app Well heralds the future of Swiss healthcare The end of August 2021 saw the start of Well, the comprehensive new digital healthcare app for Switzerland. A test version of Well is already available and a full version will be ready in early 2022. Well will make a major contribution to simplifying digital access to healthcare services for patients and making healthcare processes more efficient. Zur Rose is a founding partner, along with insurers CSS, Visana and Medi 24, and has provided some of the technology.

Outlook In view of the revenue performance in the first nine months and the weakness in OTC demand due to the pandemic, the Zur Rose Group is adjusting expected growth in external revenue for the current year to over 15 per cent.

The remaining targets that have been announced remain unchanged: Management assumes that in the medium term - over a time horizon of three to five years - online penetration of prescription medicines in Germany can reach a level of around 10 per cent as a result of the mandatory introduction of electronic prescriptions (eRx), with further potential beyond this period. The Zur Rose Group expects to exceed the sales threshold of CHF 4 billion towards the beginning of this medium-term time horizon as a result of organic growth. The Group also confirms the medium-term EBITDA margin target of around 8 per cent. Implementing the healthcare ecosystem will create further relevant potential for revenue and profit. The aim is for break-even at the EBITDA level 12 to 18 months after 2021.

Revenue, in CHF million (unaudited)                1.1.-30.9.2021 1.1.-30.9.2020 Change 
Zur Rose Group external revenue                           1,490.8        1,245.2  19.7% 
Zur Rose Group external revenue, in local currency                                17.7% 
Zur Rose Group                                            1,258.4        1,066.5  18.0% 
Zur Rose Group, in local currency                                                 16.2% 
Markets 
Germany external revenue                                    979.5          765.4  28.0% 
Germany external revenue, in local currency                                       24.9% 
Germany                                                     747.1          586.6  27.4% 
Germany, in local currency                                                        24.3% 
Switzerland                                                 457.9          434.9   5.3% 
Europe                                                       58.6           47.6  23.1% 
Europe, in local currency                                                         20.2% 
Business models 
B2C external revenue                                      1,090.9          862.1  26.5% 
B2C                                                         858.5          683.3  25.6% 
Professional Services                                       346.5          338.1   2.5% 
Marketplace                                                  58.6           47.6  23.1% 
Revenue, in CHF million (unaudited)                1.7.-30.9.2021 1.7.-30.9.2020 Change 
Zur Rose Group external revenue                             492.8          435.3  13.2% 
Zur Rose Group external revenue, in local currency                                11.9% 
Zur Rose Group                                              418.6          368.5  13.6% 
Zur Rose Group, in local currency                                                 12.4% 
Markets 
Germany external revenue                                    323.5          274.7  17.8% 
Germany external revenue, in local currency                                       15.8% 
Germany                                                     249.3          207.9  19.9% 
Germany, in local currency                                                        17.9% 
Switzerland                                                 152.9          146.1   4.6% 
Europe                                                       18.1           15.6  16.5% 
Europe, in local currency                                                         14.6% 
Business models 
B2C external revenue                                        360.9          307.9  17.2% 
B2C                                                         286.7          241.1  18.9% 
Professional Services                                       115.5          112.9   2.3% 
Marketplace                                                  18.1           15.6  16.5% 

External revenue consists of the consolidated revenue of the Zur Rose Group plus the mail-order revenue of pharmacies supplied by the Zur Rose Group, less the consolidated revenue for their supply.

Investors and analyst contact Christoph Herrmann, Head of Investor Relations Email: [e-mail], phone: [phone]

Media contact Lisa Lüthi, Head of Group Communications Email: [e-mail], phone: [phone]

Agenda 20 January 2022 Sales 2021 24 March 2022 2021 Full-Year Results 20 April 2022 First Quarter Trading Update 28 April 2022 Annual General Meeting

Zur Rose Group The Swiss Zur Rose Group is Europe's largest e-commerce pharmacy and one of the leading medical wholesalers in Switzerland. It also operates the leading marketplace in southern Europe for consumer health, beauty and personal care products commonly sold in pharmacies. The company is internationally present with strong brands, including Germany's best-known pharmacy brand, DocMorris, and employs more than 2,200 people at sites in Switzerland, Germany, the Netherlands, Spain and France. Now serving more than 12 million active customers in core European markets, Zur Rose generated revenue of CHF 1,752 million (including external revenue) in 2020.

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October 21, 2021 00:56 ET (04:56 GMT)