Upload
others
View
7
Download
0
Embed Size (px)
Citation preview
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.
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.
Disclaimer