Zur Rose Group Q3 2017 Trading Update Walter Oberhänsli Marcel Ziwica 17 October 2017
Agenda Highlights Business Update Financial Update Outlook Zur Rose Group Conference call 23 August 2017 3
Highlights Zur Rose Group Conference call 23 August 2017 4
Highlights Q3 2017 Strong performance in Q3 Zur Rose Group (Q3: +15.4%) Strong growth in Q3 lifts 9M 2017 sales growth rate to +9.9% (9.8% in local currencies) Acquisition of Eurapon Pharmahandel GmbH strengthens market leadership in Germany Switzerland (Q3: +7.5%) B2B: +8.1% Q3 sales growth B2C: Return to growth mode in Q3: +5.6% Germany (Q3: +18.4%) (1) OTC: +38.7% Q3 sales growth Rx: Acceleration of sales growth to +14.5% in Q3 Note: 1 All figures for Segment Germany in local currency 5
Business update Zur Rose Group Conference call 23 August 2017 6
Highlights Group Cooperation with Eurapon and acquisition of Eurapon Pharmahandel GmbH further strenghtens position as market leader in Germany Acquisition of Eurapon Pharmahandel GmbH (1) Eurapon Pharmahandel GmbH provides services to Eurapon e-commerce pharmacy Eurapon is a fast growing, OTC focused business in Germany Closing of transaction is envisaged within 2017 Further strengthens market leadership in Germany Plan to transition Eurapon e-commerce pharmacy business to the Netherlands Eurapon with dynamic growth profile Sales in EURm Largest e-commerce pharmacy in Germany (Sales multiplier vs. #2 player, 2016) (2) CAGR: +30.1% 1 2.4x 23.7 33.9 40.3 52.1 2013 2014 2015 2016 Note: 1 The transaction is subject to merger control clearance 2 Sales based on FY2016 financials 7
Highlights Segment Switzerland Strong B2B performance; B2C back to growth mode B2B B2C Operational performance Operational performance Performance Highlights Further acceleration of sales growth in B2B Business: Q3 17 growth rate: 8.1% 9M 17 growth rate: 6.0% Medbase cooperation Successful transition of medbase selfdispensing practices to Zur Rose customer base End of sales decline effect caused by elimination of low margin activities within the Specialty Care Business Back on track with +5.6% Q3 sales growth yoy in B2C Business KPT cooperation Cooperation with one of the 10 largest health insurers in Switzerland First managed care insurance model with Zur Rose as exclusive supplier for pharmaceuticals in non self-dispensing cantons Shop-in-Shop Launch of first Shop-in-Shop pharmacy in Bern 8
Highlights Segment Germany Continued growth in Germany (DocMorris) Rx Rx Sales In EURm +6.1% +8.2% +14.5% 57.5 53.7 55.2 52.7 56.2 57.0 59.7 60.3 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Accelerating growth Accelerated growth in Rx lifting nine months growth rate to +9.6% Successful marketing campaign and increased basis for repeat orders as drivers for growth OTC OTC Sales In EURm 16.7 21.7 21.4 23.0 27.6 31.5 30.0 31.9 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Continuous growth in the range of +38.7% to 65.3% (1) OTC with continued high growth rates (+41.5% 9M 17) DocMorris (Rx and OTC combined) growing at +18.8% in the first nine months 2017 and +21.8% in third quarter Note: 1 YoY sales growth compared to the respective quarter 9
Financial update Zur Rose Group Conference call 23 August 2017 10
Zur Rose Group sales Pick-up in momentum Sales 9M/Q3 2016 vs 9M/Q3 2017, CHFm YoY growth (%) +9.9% Group Switzerland Germany 300.2 348.8 +15.4% 647.3 711.6 (1) 347.0 360.1 99.6 122.4 213.0 245.9 (1) 113.3 121.8 9M 2016 9M 2017 Q3 2016 Q3 2017 Strong third quarter with group sales up +15.4% accelerates nine months growth rate to +9.9% (9.8% in local currencies) Growth in both segments Market positions solidified Notes: 1 Including BlueCare sales of CHFm 2.7 (9M 17) and 1.6 (Q3 17) 11
Segment Switzerland Strong performance Sales 9M/Q3 2016 vs 9M/Q3 2017, CHFm YoY growth (%) Switzerland B2B B2C +3.8% (2.6%) +6.0% 92.0 89.6 347.0 360.1 255.0 270.5 +7.5% +5.6% +8.1% 29.7 31.3 113.3 83.7 121.8 90.5 9M 2016 9M 2017 Q3 2016 Q3 2017 B2B sales with further growth acceleration in Q3 (+8.1%) B2C sales back in growth mode after end of Specialty Care effect Strong overall performance in Q3 (+7.5%) leading to acceleration of nine months growth rate to +3.8% 12
Segment Germany Acceleration of sales momentum Sales (local currency) 9M/Q3 2016 vs 9M/Q3 2017, EURm YoY growth (%) Germany Rx OTC Other (1) +16.0% +9.6% +41.4% +2.6% 48.2 46.9 93.4 66.1 +18.4% +14.5% +38.7% +1.8% 318.7 274.6 15.8 16.1 161.6 177.1 23.0 31.9 91.5 108.3 52.7 60.3 9M 2016 9M 2017 Q3 2016 Q3 2017 Further Rx sales growth acceleration to +9.6% (nine months) due to strong third quarter (+14.5%) Continued high growth rates in OTC sales Segment Germany sales up +16.0% in the nine months period Notes: 1 Other sales include Zur Rose EU and wholesale sales 13
KPI s DocMorris Accelerated fundamentals Active customers (1) In thousands YoY growth (%) Number of orders Last twelve months in thousands YoY growth (%) +39.9% +28.6% Basket size (2) In EUR YoY growth (%) (7.6%) 1,249 1,748 4,064 5,226 74 69 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Strong growth in active customers and number of orders More than five million orders for the first time Higher growth in OTC compared to Rx leading to declining basket size on aggregate level Notes: 1 Last twelve months ending 30 September of the respective year 2 Basket size equals average value of the purchase per order 14
Outlook Zur Rose Group Conference call 23 August 2017 15
Outlook Group Outlook 2017 Management confirms Group Outlook for 2017 and specifies that the expected sales growth rate of around +10% in local currencies results from organic growth. Acquisition of Eurapon Pharmahandel GmbH envisaged to be closed before the end of year. The acquisition will not have any effect on sales in 2017. 16
Outlook Mid-Term financial targets (2021) Mid-term sales targets confirmed. Short-term Group EBITDA Guidance depending on recent and future acquisitions and growth opportunities. Taking advantage of mid-term profitable growth opportunities preferred over short-term EBITDA improvement. Midterm Group EBITDA guidance of +4-5% maintained and confirmed. 17
Q&A Zur Rose Group Conference call 23 August 2017 18
Information Investor Information Contact Information Investor information Contact information Listing: SIX Swiss Exchange Marcel Ziwica Currency: CHF CFO Zur Rose Group Ticker symbol: ROSE ISIN: CH0042615283 Phone: +41 52 724 00 64 Listing date: 6 July 2017 E-Mail: investorrelations@zurrose.com Event Calendar Event calendar 07 December 2017 Berenberg European Conference, Bagshot, UK 12 January 2018 Baader Helvea Swiss Equities Conference, Bad Ragaz, CH 24 January 2018 Sales 2017 21 March 2018 2017 Full Year Results 18 April 2018 Q1 Trading Update 24 May 2018 Annual General Meeting 19
Disclaimer Certain statements in this Presentation are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions, intense competition in the markets in which Zur Rose Group (the Group ) operates, costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting the Group s markets, and other factors beyond the control of the Group). Neither the Group nor any of its respective directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak of the date of this Presentation. Statements contained in this Presentation regarding past trends or events should not be taken as a representation that such trends or events will continue in the future. 20