Zur Rose Group The Game Changer — E-Commerce Pharmacy

Zur Rose Group 3

At a Glance

– Conference call 23 August 2017

Zur Rose Group 4

Mark

et

size

an

d e

-co

mm

erc

e s

hare

Large addressable market ripe for digital disruption

Medications CHF

146bn(1)

Apparel CHF 193bn

Furniture CHF 94bn

Key online players

Key offline players

Media products(3)

CHF 54bn

Pet Care CHF 9bn

(2)

Sources: Euromonitor, Market sizes for 2016, includes CH, DE, ES, FR, IT, UK Notes: 1 medications include Rx and OTC & BPC, 2015, excl. VAT, 2015 CHF/EUR = 0.92346 | 2 Online penetration for Rx in Germany | 3 Media products include music, films and books

20%

10%

0%

30%

40%

50%

The Game Changer – E-Commerce Pharmacy

Zur Rose Group 5

Launch of B2B business Expansion into e-commerce pharmacy

in selected geographical markets Significant investments made to

accelerate growth

1999 2001 2004 1993 2012

Entry into Swiss e-commerce market

Market entry in Germany with Zur Rose brand

Opening of state-of-the-art logistics center

in Frauenfeld, Switzerland

Acquisition of DocMorris

2015

Opening of new DocMorris logistics

center

2017 2017

Intensified DocMorris marketing campaign

leads to strong increase in new Rx customers

2016

Zur Rose established in Steckborn, Switzerland

Landmark ECJ ruling on German bonus-ban

Entering shop-in-shop cooperation in

Switzerland (pilot phase)

Proven track record of disrupting the medication supply business

Investments paving the way for growth

Milestones

2017

Successful IPO with CHF 233 Mio. gross

proceeds

Zur Rose Group 6

#1 in Europe

Notes: 1 Of the physician supply market 2017; source: IMS Health | 2 Of the e-commerce pharmacy market 2017; source: IMS Health | 3 Based on Sempora estimates of German e-commerce Rx and non-Rx market in 2017; excluding wholesale sales

Zur Rose Group at a Glance

FY17 Sales

983 CHF Mio.

500 CHF Mio.

B2B One of the leading pharmacy products suppliers for self- dispensing physicians

B2C

Leading Swiss e-commerce pharmacy for patients

51% 483 CHF Mio.

Focus on B2C

Leading German e-commerce pharmacy for patients with established Rx segment and fast growing OTC & BPC segment

49%

24% Market share(1)

38% Market share(2)

23% Market share(3)

Zur Rose Group 7

Generating savings and allocating these to different stakeholders

— Bypassing intermediaries

— Scale effects

— Distribution structure

Patients

Insurance companies

Flexibility to react based on regulatory environment

Focus on B2C

Focus on B2B and B2B2C

€

€

Allocation of savings to Savings generated by

Business Model

Zur Rose Group 8

Overview of the Competitive Positioning #1 in Europe

Source: Company information Notes: 1 Reported Sales 2017 | 2 Pro-forma Sales 2017 Segment DE, Eurapon & Vitalsana + B2C Sales CH EUR/CHF 0.89686 | 3 Sales 2016 EUR/SEK 0.10559

EUR 104m(3)

EUR 284m(1)

EUR 634m(2)

Zur Rose Group

SD allowed(1)

NSD(3)

Mixed cantons(2)

Physicians issuing prescriptions to patients Physicians operate small

pharmacies within their practices

Self-dispensing cantons (red) Non-self-dispensing cantons (grey)

Attractive business model responds to different regulatory environments

9 Notes: 1 SD: Self dispensing by physicians allowed | 2 Mixed cantons: cantons with areas of self dispensing and areas of non-self dispensing (Canton of Berne NSD: self dispensing of primary submission (first medication in the smallest unit only) by physicians allowed) | 3 NSD: Non-self dispensing/Self dispensing by physicians not allowed

A Leading Swiss Pharmaceutical Supplier

Retail (B2C) Physicians wholesale (B2B)

CHF 127 million Sales 2017

CHF 368 million Sales 2017

Zur Rose Group 10

Vertically Covered Value Chain Zur Rose’s business units covering all B2B and B2C customers

Business unit Growth initiatives

Physician Wholesale

Primary Care

Specialty Care

Retail Pharmacy

Illustrative selection

Illustrative selection

Shop-in-shop (pilot phase)

Cross-selling

Rx OTC

& BPC Consumer Health

Active customers(1)

Notes: 1 Active customers are defined as individual customers who have placed at least one order in the preceeding 12 Months (2017)

4,000

126,000

Zur Rose Group

German Market Leader

Source: 1 DocMorris, as of 2016 | 2 DocMorris, last twelve months ending 31 December 2017 | 3 Basket size means the average value of the purchase per order| 4 compared to FY 16 | 5 Including temporary staff as of 2016

11

German e-commerce pharmacy leader in scale and quality

Rx OTC & BPC

2/3 share of

sales

1/3 share of

sales

~1/3 share of

customers

~2/3 share of

customers

1.8m active customers

5.5m orders

~39% OTC & BPC sales growth FY 17(4)

EUR68 Ø basket size(3)

Zur Rose Group

Individ. medication

plan

Script reminder

Pharmaceutical counselling

Information materials

Lifestyle coaching

Video live chat

Timed delivery

App

Lock-In Model as a Growth Driver

12

Service innovation

Convenience/ ease of use

More repeat orders

Advanced/ personalised

services

More satisfied customer

Lock-in model

with 360 data

Monetary incentive (Rx: Bonuses / OTC:

attractive pricing)

New customers 360° data and broad spectrum of services

Holistic and broad data-enabled services drives customer lock-in

Zur Rose Group 13

Growth Drivers

– Conference call 23 August 2017

Zur Rose Group 14

The future is liberal

Zur Rose Group 15

ECJ taking out bricks in the wall, which seal pharmacy off competition Pharmacy Ripe for Disruption

ECJ continues to allow prohibition of foreign ownership for pharmacies

2009

ECJ rules that foreign pharmacies in the EU are not bound to local fixed price systems

October

2016

ECJ allows EU-wide OTC medication delivery via mail-order

2003

Fragmented market

Competition from abroad

OTC mail-order all over Europe

«Once in a lifetime window of opportunity»

Zur Rose Group 16

The future is chronic

Zur Rose Group

64%

42%

23%

9%

36%

58%

77%

92%

14%

33%

57%

77%

18-34 35-54 55-64 65+

no chronic disease

≥1 chronic disease ≥2 chronic deseases

17

Chronic diseases

Source: Share of chronically ill patients by age, USA 2005, Machlin et al. 2008; Demographic development Switzerland, Bundesamt für Statistik 2015

Demographic change

20% 20% 19% 19%

62% 59% 56% 55%

18% 21% 24% 27%

2015 2025 2035 2045

<20 years old

20–64 years old

65+ years old

Target customers and demand Older and chronically ill population growing fast

Zur Rose Group 18 Source: IMS Health 2016, Sempora market study, 2017, Helsana Arzneimittelreport, 2016, pharmaSuisse, 2016, Zur Rose/DocMorris estimates | 1 2015, core European market consists of CH, DE, ES, FR, IT, UK, excl. VAT, 2015 CHF/EUR = 0.92346 | 2 2016 | 3 Including Segment Germany + B2C Sales Switzerland 2017 EUR/CHF 0.8996 | 4 According to James Dudley Management: Mail Order and Internet Pharmacy in Europe 2017, p. 13

Large Addressable Market Highly attractive and fragmented CHF 146bn market with favourable long-term fundamentals

OTC & BPC Rx

# 1 player(4)

Illustrative / not true to scale

acu

te

chro

nic

Core European market: CHF 146bn(1)

B2C sales: CHF 610m(3)

E-commerce DE & CH: CHF 1.9bn(2)

Total DE & CH: CHF 49.8bn(2)

Zur Rose Group 19

The future is brands

Zur Rose Group

Brand Awareness

20

0%

10%

20%

30%

40%

50%

60%

Oct 17Jan 17Apr 16Apr 15Apr 14Jan 13Dec 11Dec 10

Most established e-commerce pharmacy brand in Germany(1)

Europa Apotheek Shop-Apotheke mycare Apotal Vitalsana

10%

12%

40%

0% 10% 20% 30% 40% 50%

MediService

nu3

Most established e-commerce pharmacy brand in Switzerland(1)

Source: 1 Aided brand awareness based on GFK, 2017 (Zur Rose) / 2017 (DocMorris)| 2 Of the e-commerce pharmacy market 2017; source: IMS Health| 2 Based on Sempora estimates of German e-commerce Rx and non-Rx market in 2017

Most established brands as driver for future growth

Market share(3) Market share(2) 1 23% 38% 1

Zur Rose Group 21

The future is digital

Zur Rose Group

Accelerating Online Penetration

22 Source: IMS PharmaScope, 2018, Insight Health 2018, Euromonitor (as of 03-Apr-2017), online penetration calculated by dividing the internet retailing market size across Europe by the total market size for each vertical, DE and US 2015, CH 2017, other European markets including France, Germany, Italy, Spain, United Kingdom, Switzerland, 2016

Relatively low online penetration leaves ample room for growth

10%

1.3%

17%

0%

39%

25%

Rx Rx OTC OTC & BPC Rx/OTC & BPC

Other European markets

(Music, films & books)

Zur Rose Group

1'095

2'083 496

1'030

1'591

3'113

2016 2021E

~2x

Accelerating Online Penetration

23 Source 1 Sempora market study, 2017 EUR/CHF = 0.94

Relatively low online penetration leaves ample room for growth

Sempora: German e-commerce expected to double within 5 years already in base case scenario (in CHFm)(1)

Rx e-commerce

OTC & BPC e-commerce

Assumptions:

— No eRx

— No cooperations with German insurance companies

Zur Rose Group 24

E-Commerce in the Pharmaceutical Market Products well suited for e-commerce

— Works well for e-commerce due to small size and weight

— Return rate of 0.5%(1) very low compared to other verticals

— Predertermined product selection via prescription (Rx)

Note: 1 DocMorris 2016

Zur Rose Group 25

Electronic prescriptions (eRx)

Pharmaceutical and operational excellence combined with innovation creating high barriers to entry

Telepharmacy App Big Data initiative

Medication feedback loop

Innovation Initiatives At the forefront of digitalisation in the healthcare industry

1 2 3 4

Zur Rose Group 26

Give dynamic to core profit base

Lead the market in Rx

Obtain market leadership in OTC &

BPC

Innovate with e-health solutions

Acquisitions and international

expansion

Base / short-term initiatives Upside / mid- to long-term initiatives

Operational excellence and economies of scale

Growth Strategy Six initiatives to capitalise on substantial upside

Intensify cooperations with

insurance companies

1 2 3 4 5 6

1,017

2,042

Zur Rose Group

Income Statement Zur Rose Group

27

2017 2016

CHFm % CHFm %

Sales 982.9 100.0 879.5 100.0

Material expenses (836.3) (747.6)

Other income 9.7 5.4

Personnel expenses (78.3) (60.2)

Marketing expenses (33.7) (22.2)

Distribution expenses (26.6) (22.7)

Administrative expenses (27.4) (21.5)

Rent expenses (4.2) (3.6)

Other operating expenses (7.3) (5.1)

EBITDA (21.2) (2.2) 2.1 0.2

D&A (17.1) (9.2)

EBIT (38.3) (3.9) (7.1) (0.8)

Financial result 1.8 (5.6)

EBT (36.5) (3.7) (12.7) (1.4)

Income tax expenses 0.2 (0.1)

Net income (36.3) (3.7) (12.8) (1.5)

Reported EBITDA (21.2) 2.1

Adjustments 15.2(1) 0.6(2)

Adjusted EBITDA (6.0) 2.7

Notes: 1 2017:Segment Germany EBITDA adjusted by CHF 1.3 million M&A related costs and CHF 4.8 million restructuring provisions relating to the transfer of Zur Rose Pharma business to Heerlen, Corporate EBITDA adjusted by CHF 6.9 million IPO related costs, CHF 1.7 million M&A related costs and CHF 0.5 million IAS 19 expenses | 2 2016: Corporate EBITDA adjusted by CHF 0.6 million IAS 19 expenses

Zur Rose Group

Balance Sheet Zur Rose Group

28

31 –Dec 2017 31 –Dec 2016

CHFm % CHFm %

Cash and cash equivalents 107.8 25.2

Current financial assets 0.2 0.2

Trade receivables 84.1 71.4

Other receivables & prepaid expenses 21.7 14.6

Inventories 58.6 48.3

Current assets 272.3 59.6 159.6 61.0

Property, plant & equipment 29.7 26.2

Intangible assets 143.7 63.1

Other assets(1) 11.0 12.5

Non-current assets 184.4 40.4 101.9 39.0

Total assets 456.8 100.0 261.5 100.0

Current financial liabilities 5.6 50.0

Trade payables 75.3 70.7

Other payables & accrued expenses(2) 33.4 17.5

Short-term liabilities 114.3 24.8 138.2 52.8

Non-current financial liabilities 32.0 9.1

Pension liabilities 13.0 8.9

Deferred taxes 3.2 1.5

Long-term liabilities 48.3 10.6 19.5 7.5

Equity 294.2 64.4 103.8 39.7

Total equity and liabilities 456.8 100.0 261.5 100.0

Note: 1 Includes investments in associates and JVs, non-current financial assets and deferred tax assets | 2 Includes other payables, tax payables, accrued expenses and short-term provisions

Zur Rose Group

Cash Flow Statement Zur Rose Group

29

2017 2016

CHFm 31 -Dec 31 -Dec

Net income (36.3) (12.8)

D&A 17.1 9.2

Non-cash items financial result (4.6) 2.2

Non cash income and expenses 3.6 2.8

Income taxes paid (0.1) (0.2)

Change in trade receivables, other receivables and prepaid expenses (13.1) (4.9)

Change in inventories 1.0 (13.8)

Change in trade payables 6.4 3.7

Change in provisions 3.8 (0.1)

Cash flow from operating activities (22.2) (13.8)

Acquisition of subsidiaries, net of cash acquired (40.9) (2.2)

Purchase of property, plant and equipment (5.1) (3.0)

Acquisition of intangible assets (16.6) (16.9)

Investments/ (disposal) of financial assets 0.3 (1.0)

Cash flow from investing activities (62.2) (23.1)

Proceeds from capital increases 222.4 42.8

Repayment of financial liabilities (56.1) (3.9)

Purchase of treasury shares (0.4) (0.2)

Dividends paid - (1.6)

Cash flow from financing activities 165.9 37.0

Total cash flow 81.5 0.1

Fx differences 1.1 0.0

Zur Rose Group 30

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 or given by or on behalf of any of the Group. Zur Rose reserves the right to amend or replace the Presentation at any time, and undertakes no obligation to provide the recipients with access to any additional information. Zur Rose shall not be obligated to update or correct the information set forth in the Presentation or to provide any additional information. Nothing in this Presentation is, or should be relied upon as, a promise or representation as to the future.

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