Zur Rose Group

Zur Rose Group Zur Rose Group

Time to change an 800 year old guilded system.

Zur Rose Group Zur Rose Group

3. Change happens now: Zur Rose Group at the forefront of industry consolidation

2. Pole position: Size, brand, operations and know-how

1. Large total addressable market with low online penetration

Key investment highlights

3

Zur Rose Group Zur Rose Group

Zur Rose Group: «Game Changer» in the CHF 146 bn medications market

Large total adressable market with low online penetration

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

146 bn

193 bn

54 bn

Medications Apparel Media products

(1)

(2)

(3)

CHF Market size and

e-commerce share

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

4

Zur Rose Group

Zur Rose Group the undisputed #1 e-commerce pharmacy player in Europe

Notes: 1 Bubble sizes indicating total revenue

10

10

Overview of competitive positioning

10

10

5

10

10

Zur Rose Group

Comprehensive business model and core profit base

Notes: 1 SD: Self dispensing by physicians allowed | 2 NSD: Non-self dispensing/Self dispensing by physicians not allowed | 3 Of the Rx e-Commerce pharmacy market 2017; source: IMS Health | 4 Of the physician supply market H1 2018; source: IMS Health

SD allowed(1)

Mixed cantons NSD(2)

Retail platform

CHF 98 million Sales 9M 2018

CHF 288 million Sales 9M 2018

Physician platform

35% Market share(3)

25% Market share(4)

+9.0% Sales Growth 9M 2018

+6.4% Sales Growth 9M 2018

A leading Swiss pharmaceutical supplier

6

Zur Rose Group

German e-Commerce pharmacy leader in scale and quality

Notes: 1 Last twelve months ending 30 September including Segment DE, Eurapon, Vitalsana, apo-rot & medpex customers | 2 Aggregated market share 2017 based on total mail-order market Germany including Sempora estimates for Rx mail-order market and Insight Health figures for Non-Rx mail-order market 2017; Zur Rose Germany market share incl. Segment DE, Eurapon, Vitalsana, apo-rot & medpex

Rx

EUR 198 million Sales 9M 2018

EUR 232 million Sales 9M 2018

OTC

+7.1% Sales Growth 9M 2018

+72.6% Sales Growth 9M 2018

5.6 million Active customers(1)

31% Market share(2)

German market leader

7

Market trends

Zur Rose Group Zur Rose Group

New technology enables medicine to become mobile and convenient.

Digitalisation in healthcare

Zur Rose Group

Pharmaceuticals well suited for e-commerce

Growth driver 1: Digitalisation in healthcare

Note: 1 DocMorris 2016

— Small size and weight, high value

— Predetermined product selection via prescription

— Return rate : 0,5 %(1)

10

Zur Rose Group Zur Rose Group

The need for an innovative cost reduction approach is increasing.

Cost pressure

Zur Rose Group

The need for an innovative cost reduction approach is increasing.

Cost pressure

Zur Rose Group

Zur Rose Groups digital services allow for superior quality vs. brick-and-mortar

Growth driver 2: Cost pressure

— 25-30% lower risk to receive potentially inappropriate

medication(1)

— EUR bn 1.8 avoidable costs caused by medication errors(2)

— McKinsey(3): Digitizing healthcare could take EUR 34bn

out of the German healthcare system

Source: 1 Helsana 2014 | 2 IMS Health 2014 | McKinsey 2018

12

Zur Rose Group Zur Rose Group

12% 40%

E-Commerce: Higher quality at better prices

Growth driver 2: Cost pressure

Notes: 1 Average price advantage on Rx compared to retail pharmacies (CH) | 2 Based on IMS VH data as of end of Jan-2017 (top 100 products in terms of sales in the last twelve months preceding), based on total price of basket (value weighted), compared to recommended retail price (DE)

Price advantage Rx(1) Price advantage OTC & BPC(2)

13

Zur Rose Group Zur Rose Group Source: Börsen-Zeitung, 05.05.2018, Autor Oliver Cassé, «Die demographische Herausforderung» https://www.boersen-zeitung.de/index.php?li=1&artid=2018086808&artsubm=&subm=

Demographic change

The share of the 60+ year old population will increase globally.

Zur Rose Group

36%

14%

58%

33%

77%

57%

92%

77%

35-54 55-64 65+ 18-34

≥1 chronic disease ≥2 chronic diseases

Chronically ill population growing fast

Growth driver 3: Demographic change

Source: Share of chronically ill patients by age, USA 2005, Machlin et al. 2008; 15

Zur Rose Group Zur Rose Group

European Court of Justice paving the way for competition.

European liberalisation

Zur Rose Group

2003

2009

2016

Fragmented market

ECJ continues to allow prohibition of foreign ownership for pharmacies

Competition from abroad

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

OTC mail-order all over Europe ECJ allows EU-wide OTC medication delivery via mail-order

ECJ taking out bricks in the wall, which seal pharmacy off competition

Growth driver 4: European liberalisation

Zur Rose Group Zur Rose Group

Brand power

Brands determine competition.

Zur Rose Group 67%

23%

22%

12%

8% No. 1 in Germany(1)

Growth driver 5: Brand power

Source: 1 Aided brand awareness based on GFK 2018

Zur Rose Group

Zur Rose Group

10%

12%

40%

No. 1 in Switzerland(1)

Growth driver 5: Brand power

Source: 1 Aided brand awareness based on GFK 2017

Zur Rose Group

Zur Rose Group Zur Rose Group

The scene is set for change

Key takeways

1 Digitalisation

2 Cost Pressure

3 Demographic Change

4 European Liberalisation

5 Brand Power

21

Strategy Update

Zur Rose Group

Zur Rose Group Zur Rose Group

Successful in delivering strategy communicated at the time of our IPO

Growth initiatives

Achieved initial goals Mid- to long-term initiatives

5 Innovate with e-health solutions

6 Acquisitions and international expansion

1 Give dynamic to core profit base

2 Lead the market in RX

3 Obtain market leadership in OTC & BPC

4 Intensify cooperations with insurance companies

Current focus initiatives

23

Zur Rose Group Zur Rose Group

Confident in achieving next milestones

Growth initiatives

5 Innovate with e-health solutions

6 Acquisitions and international expansion

Current focus initiatives

European healthcare ecosystem

Integration & synergies

eRx focus in Germany

3

1

2

Our business priorities

24

Zur Rose Group

Integration and leveraging capabilities of acquired businesses as next strategic step

Source: EHI Retail Institute Note: Size of the bubble indicates company size based on transaction consideration but not sized to scale

25

Focus initiatives: 1. Integration and synergies

Dutch e-Commerce pharmacy

2017

2018 Leading

marketplace for consumer health

in Spain

Top 10 German e-Commerce

pharmacy

2017

#3 German e-Commerce

pharmacy

2018

2018 #7 German

e-Commerce pharmacy

Gaining new capabilities / scale Combination of geographical diversification & new capabilities

Fully integrated 31 Oct 2018

Zur Rose Group

Market share in Germany (%)(1)

Expanding market leadership in the German e-Commerce pharmacy market

Fortifying Zur Rose Group’s leading market share in Germany

Significantly expanding German customer base

26

Number of active customers in Germany (m)(2)

31% 26% 16%

6%

PF Zur Rose Shop Apotheke Medpex

5.6 4.0 3.2

1.6

PF Zur Rose Shop Apotheke Medpex

Incl. International

Notes: 1 Sources: Sempora, Insight Health, Shop Apotheke, EHI Retail Institut, Management estimate; Zur Rose Group market share is an aggregate number of Segment DE, Vitalsana, Eurapon and apo-rot marketshare 2017 | 2 Number of active customers as of twelve-month period ended 30 September 2018 | 3 Zur Rose Group including apo-rot and medpex aggregated pro-forma customers | 4 Shop Apotheke Q3 2018 statements

(3)

(3)

(4)

Focus initiatives: 1. Integration and synergies

Zur Rose Group

Complementary capabilities to strengthen our existing set

medpex is one of the last few available sizable digital-driven, founder-led players in the German OTC space

Key strengths / focus areas

medpex offers significant incremental capabilities in marketing and technology

27

Public affairs

Rx

Branding

Logistics

CRM(1)

Google/SEA(1) Pricing Social Media

Page performance SEO(1) Agile & Scrum Best of breed components

IT

Online Marketing

Notes: 1 CRM: Client Relationship Management, SEA: Search Engine Advertising, SEO: Search Engine Optimisation

Focus initiatives: 1. Integration and synergies

Zur Rose Group

Logistics One hub: expanded logistics center in strategic location Heerlen (NL), multiple service location across Germany to remain

IT Platform One platform: ensuring integrated and efficient engine for digital leadership in healthcare

Organisation / Culture One culture: same DNA and vision across the firm

Brands One brand — selected labels: maximise marketing efficiency and differentiate communication with stakeholder groups

Zur Rose Group

Zur Rose Group integration strategy a combination of four pillars

28

Focus initiatives: 1. Integration and synergies

Zur Rose Group

Pooling a significant proportion of operations in Heerlen

Vitalsana

DocMorris Eurapon Zur Rose

apo-rot medpex

DocMorris Eurapon Vitalsana

apo-rot Zur Rose medpex

29

2018 From 2021 onwards Focus initiatives: 1. Integration and synergies

Zur Rose Group

Expansion of logistics centre in Heerlen, NL

Note: 1 Personnel expenses

— Increase of capacity from 10 to 30 million parcels per year from 2021 onwards with option to extend to 50 million parcels per year in a further step

— Increased level of automatization

— Reduction of picking cost per parcel(1) by 50%

— Construction of facility initiated in October 2018

30

Focus initiatives: 1. Integration and synergies

Zur Rose Group

Repositioning marketing strategy given that e-script is on the horizon

— German Medical Assembly enacts telemedicine

— First draft of Act for Higher Security in the Supply of Medication issued by Federal Ministry of Health includes proposal to allow electronic prescribing - required regulations to be agreed within 7 months after promulgation of Act

— Largest German health insurance company with around 10 million clients will run a pilot project with E-Scripts starting in December 2018 in Hamburg

31

Focus initiatives: 2. eRx focus in Germany

Zur Rose Group

25% 25%

10%

0%

17%

“I do not think it is unrealistic to reach 10% online penetration this year from 6% in 2017” Pär Svärdson, CEO Apotea (Sweden)

Source: Sempora 2017, IMS, 2018, Insight Health 2018, Breakit.se, 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 2017, CH 2017, SWE estimate 2018, US 2015

1.3%

Rx OTC OTC & BPC

Rx / OTC & BPC

Rx Rx / OTC & BPC

32

10%

eRx

implemented

eRx

implemented

eRx:

Initiatives in progress

Focus initiatives: 2. eRx focus in Germany

eRx

Implemented

Zur Rose Group 33 Notes: 1 Subject to regulatory restrictions, such as Rx and/or OTC mail order bans, in the respective countries Zur Rose Group

Rx OTC BPC

UNIFIED PLATFORM

Telemedicine Outcome Reporting

Medication Management

eRx

Consumers/Patients B2C1

Customers Marketplace

Physicians B2B/B2B2C

Insurance Companies

B2B2C

Manufacturers B2B2C

Third Party Providers B2B

Pharmacies B2C/Marketplace

Widening presence across the ecosystem, whilst reinforcing barriers to entry

Focus initiatives: 3. European healthcare ecosystem

Zur Rose Group

Insurance partnerships: Collaboration with KPT Health Insurance

34

Focus initiatives: 3. European healthcare ecosystem

— Operates gatekeeping model via Swiss telemedicine pioneer Medi24

— Launch of online medication platform improving adherance (30% lower risk of inappropriate medication)

— 20% discount on insurance premium for patients enrolled in the model

Telemedicine Further

treatment

Medi24

Exclusive supply via Zur Rose

Prospective patient

Zur Rose Group

PromoFarma: Leveraging marketplace model as go-forward platform for growth

— Convergence towards PromoFarma’s marketplace model for the rest of business

— Accelerated time-to-market allowing for c. 4 months roll-out lead time (France and Italy targeted next)

— Marketplace approach seamlessly connecting customers with Zur Rose Group’s stable of pharmacies (PromoFarma currently has over 500 partners)

— Potential for same day, same hour delivery within Europe

Focus initiatives: 3. European healthcare ecosystem

35

Zur Rose Group

Technology Powerhouse

Media

Multi-Category

e-Commerce & Cloud

Computing

Bookstores

Music Streaming

Service

Music (CDs)

Content Streaming

Service

Video Rentals

Online Accom-

modation Marketplace

Hotels / Landlords

On-Demand Transpor-tation &

Food Delivery

Taxis

Pre-Eminent Healthcare Platform

Pharmacies

Online Search Engine

Online Book Retail

Music Downloads

Video on Demand

Travel Booking Websites

Ride-Hailing Service

e-Commerce Pharmacy

«Winner takes it all» Zur Rose Group clearly the leader in the e-Commerce pharmacy space

36 Zur Rose Group

Growth initiatives

Winners successfully moved from offline to online to a digital full-service ecosystem connecting multiple stakeholders

Financials

Zur Rose Group

Zur Rose Group

Delivering on growth strategy

CHFm

834.4 879.5

982.9

+103.4 (+11.8%) +45.1

(+5.4%)

2.1 43.0 29.7

73.7

2015 2016 2017 Germany Switzerland Germany

+11.8% +6.3% +18.1% +0.4%

Switzerland

38

Zur Rose Group

25% sales growth (21.6% in local currencies)

Update Q3 2018 figures

CHFm

711.6

889.3 27.0

149.6

+177.6 (+25.0%)

+7.4% +42.9%

Switzerland Q1-Q3 2017

Germany Q1-Q3 2018

39

Zur Rose Group

CHFm

2017 adj. 2017 Germany One-offs(1)

-14.3 -21.2

-6.9

1.9

EBITDA

2.1

2016 Switzerland Corporate

1.7

-12.6

Enforced organic and inorganic growth strategy in Germany and one-offs leading to short-term negative EBITDA

-23.3

Notes: 1 Segment Germany EBITDA adjusted by CHF 1.3 Mio. M&A related costs and CHF 4.5 Mio. restructuring expenses relating to the transfer of Zur Rose Pharma business to Heerlen, Corporate EBITDA adjusted by CHF 6.7 Mio. IPO related costs and CHF 1.8 Mio. M&A related costs

Germany Switzerland Corporate

-4.0

-6.2

-3.4

2015

15.8

-13.7

40

Zur Rose Group

Outlook

Mid-term financial targets (2022)

Group sales in 2019 of >CHF 1.6 billion

EBITDA Group: Mid-term margin target until 2022

Integration of remaining acquired German operations into extended logistics hub in Heerlen from 2021 onwards

30% sales growth in 2019

5 – 6%

41

Organic revenue growth from 2020 onwards

+10%

Zur Rose Group

2017 2016 2015

CHF m % CHF m % CHF m %

Sales

982.9

100.0

879.5

100.0 834.4 100.0

Material expenses (836.3) (747.6) (708.7)

Other income 9.7 5.4 6.3

Personnel expenses (78.3) (60.2) (53.7)

Marketing expenses (33.7) (22.2) (15.3)

Distribution expenses (26.6) (22.7) (21.0)

Administrative expenses (27.4) (21.5) (18.9)

Rent expenses (4.2) (3.6) (3.8)

Other operating expenses (7.3) (5.1) (3.6)

EBITDA (21.2) (2.2) 2.1 0.2 15.8 1.9

D&A (17.1) (9.2) (7.4)

EBIT (38.3) (3.9) (7.1) (0.8) 8.4 1.0

Financial result 1.8 (5.6) (4.4)

EBT (36.5) (3.7) (12.7) (1.4) 4.0 0.5

Income tax expenses 0.2 (0.1) (0.6)

Net income (36.3) (3.7) (12.8) (1.5) 3.4 0.4

Income Statement

Zur Rose Group financials

42

Zur Rose Group 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

31 Dec 2017 31 Dec 2016 31 Dec 2015

CHF m % CHF m % CHF m %

Cash and cash equivalents 107.8 25.2 25.1

Current financial assets 0.2 0.2 0.4

Trade receivables 84.1 71.4 72.5

Other receivables & prepaid expenses 21.7 14.6 9.5

Inventories 58.6 48.3 34.8

Current assets 272.3 59.6 159.6 61.0 142.3 61.0

Property, plant & equipment 29.7 26.2 26.2

Intangible assets 143.7 63.1 53.7

Other assets(1) 11.0 12.5 11.2

Non-current assets 184.4 40.4 101.9 39.0 91.1 39.0

Total assets 456.8 100.0 261.5 100.0 233.4 100.0

Current financial liabilities 5.6 50.0 0.5

Trade payables 75.3 70.7 72.2

Other payables & accrued expenses(2) 33.4 17.5 16.0

Short-term liabilities 114.3 24.8 138.2 52.8 88.7 38.0

Non-current financial liabilities 32.0 9.1 62.3

Pension liabilities 13.0 8.9 8.1

Deferred taxes 3.2 1.5 1.6

Long-term liabilities 48.3 10.6 19.5 7.5 72.0 30.8

Equity 294.2 64.4 103.8 39.7 72.8 31.2

Total equity and liabilities 456.8 100.0 261.5 100.0 233.4 100.0

Balance Sheet

Zur Rose Group financials

43

Zur Rose Group

2017 2016 2015

CHF m 31 -Dec 31 -Dec 31 -Dec

Net income (36.3) (12.8) 3.4

D&A 17.1 9.2 7.4

Non-cash items financial result (4.6) 2.2 0.8

Non cash income and expenses 3.6 2.8 0.1

Income taxes paid (0.1) (0.2) (0.1)

Change in trade receivables, other receivables and prepaid expenses (13.1) (4.9) (2.0)

Change in inventories 1.0 (13.8) (0.9)

Change in trade payables 6.4 3.7 10.4

Change in provisions 3.8 (0.1) (0.1)

Cash flow from operating activities (22.2) (13.8) 18.9

Acquisition of subsidiaries, net of cash acquired (40.9) (2.2) (0.9)

Purchase of property, plant and equipment (5.1) (3.0) (5.9)

Acquisition of intangible assets (16.6) (16.9) (9.3)

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

Cash flow from investing activities (62.2) (23.1) (16.4)

Proceeds from capital increases 222.4 42.8 0.0

Increase in financial liabilities 0.0 0.0 4.9

Repayment of financial liabilities (56.1) (3.9) (0.5)

Purchase of treasury shares (0.4) (0.2) (0.2)

Disposal of treasury shares 0.0 0.0 0.2

Dividends paid - (1.6) (1.9)

Cash flow from financing activities 165.9 37.0 2.5

Total cash flow 81.5 0.1 5.0

Fx differences 1.1 0.0 (1.0)

Cash Flow Statement

Zur Rose Group financials

44

Contact information

Walter Oberhänsli

Founder, Group CEO

ir@zurrose.com +41 58 810 11 49

Marcel Ziwica

Group CFO

Zur Rose Group

Disclaimer

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. 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 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 Zur Rose 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. This Presentation does not constitute or form part of, and should not be construed as, an offer or invitation or inducement to subscribe for, underwrite or otherwise acquire, any securities of Zur Rose, nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Group, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This Presentation is not a prospectus and is being made available to you solely for your information and background and is not to be used as a basis for an investment decision in securities of Zur Rose or the Group.