Zur Rose : Release December 2021

Alternative Performance Measures of Zur Rose Group

Release: December 2021

The financial statements of Zur Rose Group are prepared in accordance with International Financial Reporting Standards (IFRS). In addition to the disclosures required by the IFRS, Zur Rose publishes alternative performance measures (APM), which are not subject to the IFRS provisions and for which there is no generally accepted reporting standard. Zur Rose calculates APM in order to enable comparability of the performance measures over time. The APM result in particular from different methods of calculation and evaluation and provide useful information about the financial and operational performance of the Group. Zur Rose calculates the following APM:

• External revenue1
• Growth in local currency1
• Gross margin in percent of revenue
• EBIT
• EBITDA
• EBITDA adjusted
• EBITDA adjusted before expenditures on additional growth initiatives
• EBITDA margin
• Net financial debt

EXTERNAL REVENUE is defined as 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.

Growth in local currency shows the percentage change of a performance measure compared with the previous year without the impact of exchange rate effects (conversion is at the previous year's rate).

The gross margin in percent of revenue corresponds to the division of revenue less cost of goods by

revenue.

EBIT (Earnings Before Interest and Taxes) stands for earnings before interest and taxes and is used to report the operative earnings without the impact of internationally non-uniform taxation systems and different financing activities.

Zur Rose Group AG
Walzmühlestrasse 60	T [phone]
8500 Frauenfeld	[e-mail]
Switzerland	zurrosegroup.com	ZUR ROSE GROUP

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EBIT statement of derivation

Earnings before income taxes

• / - Financial result (share of results of joint ventures, financial income, financial expense)
  = EBIT

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) stands for earnings before interest, taxes, depreciation and amortisation, impairment and reversal of impairment. EBITDA is calculated on the basis of EBIT plus the depreciation and amortisation as well as impairment recognised in the income statement less reversal of impairment of intangible assets and property, plant and equipment.

EBITDA statement of derivation

EBIT

• / - Depreciation and amortisation / impairment / reversal of impairment of property, plant and equipment and intangible assets

• EBITDA

The EBITDA adjusted shows the development of the operating result irrespective of the influence of special items, i.e. special effects in terms of their nature and magnitude for the management of the Zur Rose Group. These may include expenses and income related to acquisition, restructuring, integration and litigation. In the calculation, the EBITDA is increased by special expenses and reduced by special income.

The EBITDA adjusted before expenditures on additional growth initiatives shows the development of the operating result irrespective of the influence of special items (see EBITDA adjusted) and before expenditures on additional growth initiatives. Such additional growth initiatives may include expenditures on electronic prescriptions and on segment Europe. In the calculation, the EBITDA adjusted is increased by expenses and reduced by income related to such growth initiatives.

The EBITDA margin is calculated by dividing EBITDA by revenue.

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The net financial debt is a performance indicator designed to measure the liquidity, capital structure

and financial flexibility of Zur Rose Group. This indicator is calculated as follows:

Net financial debt statement of derivation

Public bond

• Liabilities to financial institutions
• Lease liabilities
• Other financial liabilities

• Financial debt

• Cash and cash equivalents
• Current financial assets2
  = Net financial debt

• The definition was slightly revised in 2021 and the prior-year figures were adjusted accordingly.

• These include current assets and receivables due from banks and other companies with a term of > 3 months and < 12 months and financial assets held for sale, which are initially recognised as current.