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SHOP APOTHEKE EUROPE posts strong growth during first quarter of 2018.

• Consolidated revenues doubled to EUR 130.7 m during Q1 2018 after EUR 63.8 m in the first quarter 2017.
• Growth rate further accelerated: +105% during the first quarter of 2018 after +60% in 2017 fiscal year.
• Profitable growth in Germany, largest market by revenue, increased by 117%.
• International revenues rose by 69% with further increase in gross margin.
• Consolidated segment EBITDA improved from EUR -1.7 m to EUR -1.3 m.
• Guidance for 2018 re-confirmed.

Venlo, 15 May 2018. SHOP APOTHEKE EUROPE N.V., Continental Europe's leading online pharmacy, has started the 2018 fiscal year dynamically with significant revenue growth. Boosted by the first-time full consolidation of Europa Apotheek following the acquisition of the company in November 2017, SHOP APOTHEKE EUROPE more than doubled its consolidated revenues by 105% to 130.7 m during the reporting period (January 1, 2018 - March 31, 2018), which further strengthened the company's market position in Germany and Continental Europe. Over the same timeframe, SHOP APOTHEKE EUROPE improved its consolidated segment EBITDA from EUR -1.7 m to EUR -1.3 m. Relative to revenues, the consolidated segment EBITDA margin improved from -2.6% to -1.0%. The Management Board is confirming its forecast for the 2018 fiscal year, projecting an 87% - 97% increase in revenues to EUR 530 m to EUR 560 m and a positive adjusted EBITDA of EUR 0 to EUR 2 m.
 

SHOP APOTHEKE EUROPE increased its consolidated gross earnings from EUR 13.2 m during the first three months of the 2017 fiscal year to EUR 23.0 m, a rise of 74%. As projected, the consolidated gross margin was lower than last year due to the larger ratio of prescription medications sold following the takeover of Europa Apotheek as well as a greater focus on the contribution margin per parcel, which is geared towards achieving positive Group-level EBITDA (excluding one-time costs) for the 2018 fiscal year. SHOP APOTHEKE EUROPE's Q1 2018 gross margin stood at 17.6% compared to 20.7% during the same period last year.

Effects of scale and cost reductions also contributed to a positive development of the Group's administrative cost ratio which sank from 3.3% to 3.1% with the sales cost ratio decreasing substantially from 26.3% during Q1 2017 to 20.7% due to improvements in efficiency, further automation of processes and the adapted pricing strategy with its greater focus on the contribution margin. As a result, the EBITDA margin improved from -5.6% a year ago to -3.8% during the period under review even though EBITDA declined from EUR -3.6 m to EUR -5.0 m. First quarter EBIT was -8.1 m compared to EUR -4.9 m during the first quarter of 2017. Relative to revenues the EBIT margin improved to -6.2% during the reporting period from -7.6% in Q1 2017.

Thanks to the acquisition of Europa Apotheek and SHOP APOTHEKE EUROPE's successful growth initiatives, the number of active customers grew substantially, from 2.1 m at the end of Q1 2017 to more than 2.7 m as of March 31, 2018 - an increase of 29%. The first quarter number of orders grew by a disproportionate 50%, from 1.4 m in 2017 to 2.1 m in 2018. The ratio of repeat orders also rose significantly, from 71% in Q1 2017 to 82% during the first quarter of 2018. SHOP APOTHEKE EUROPE was able to further reduce its already minimal return rate to 0.7% (2017: 0.8%). The number of page visits increased by 18% to 21.9 m year-on-year with the number of mobile site visits up 38% to 12.3 m, approximately 56% of all site visits. These operational performance indicators further confirm SHOP APOTHEKE EUROPE's leading online presence.

Rising customer numbers and large ratio of orders by repeat customers drive profitable growth in Germany.

The integration and consolidation of Europa Apotheek led to a substantial increase in first quarter revenues for the "Germany" segment during the first quarter. Revenues increased by 117% to EUR 103.5 m (previous year: EUR 47.5 m) in the German core market, the company's largest by revenue. This enabled SHOP APOTHEKE EUROPE to further extend its leading position in Continental Europe's largest online pharmacy market. Due to the higher ratio of prescription medications sold and an adapted pricing strategy with a stronger focus on the contribution margin per parcel, the segment's gross margin declined in line with projections to 16.6% (previous year: 21%). Segment EBITDA for Q1 was at +418k following +448k over the same period last year. These figures are calculated taking into account effects due to the company's new segment structure as well as the loss of other operational income related to the integration of Europa Apotheek. Adjusted for these effects, segment EBITDA would be slightly improved compared to a year earlier.

Segment "International" continues to grow strongly; gross earnings increase.

Thanks to a huge increase in the number of orders, the International segment contributed strongly to the growth in consolidated revenues: Segment revenues for the period under review rose by 69% to EUR 27.1 m (previous year: EUR 16.0 m). Unlike in Germany, the gross margin in the company's international markets (Austria, France, Belgium, the Netherlands, Spain and Italy) is not impacted by the sale of prescription medicines since business there is focused almost exclusively on non-prescription medications as well as beauty and personal care products. As a result, the gross earnings of SHOP APOTHEKE EUROPE's second core segment rose by a disproportionate 80% from EUR 3.2 m in Q1 2017 to EUR 5.8 m during the period under review, which boosted its gross margin from 20.1% to 21.4% (+1.3%). The continuing dynamic growth is a result of the company's consistent international expansion strategy.

Forecast confirmed, further acquisitions possible.

Taking the company's strong first quarter growth into account, the Management Board of SHOP APOTHEKE EUROPE confirms its outlook for the 2018 fiscal year with an 87% to 97% increase in consolidated revenues projected. The further acceleration of the company's growth trajectory compared to the previous year is driven by both the consolidation of Europa Apotheek - which further boosts revenues in the German market - as well as the continuing dynamic growth of the company's international business. In addition, management also expects positive effects from the dynamic online market environment. Based on economies of scale, improvements in efficiency and further automation, the Management Board forecasts a substantial improvement in profitability (excluding one-time costs) during the 2018 financial year with positive consolidated EBITDA between EUR 0 and EUR 2 m. Potential acquisitions are not considered for the purpose of the 2018 outlook. SHOP APOTHEKE EUROPE intends to keep playing an active role in the ongoing consolidation of the online pharmacy market, particularly the German OTC market. In April 2018, SHOP APOTHEKE EUROPE has placed convertible bonds worth EUR 75 m with institutional investors in order to be able to react quickly and flexibly to possible target opportunities.

2018 FINANCIAL CALENDAR.

CONSOLIDATED STATEMENT OF PROFIT AND LOSS.

CONSOLIDATED SEGMENT FINANCIALS FOR Q1 2018.

ABOUT SHOP APOTHEKE EUROPE.

SHOP APOTHEKE EUROPE is the leading and fastest growing online pharmacy in Continental Europe. SHOP APOTHEKE EUROPE already operates online pharmacies in Germany, Austria, France, Belgium, Italy, Spain and the Netherlands. In Germany, the TÜV-certified shop-apotheke.com is the market leading. SHOP APOTHEKE EUROPE delivers a broad range of more than 100,000 original products to about 2.8 million active customers quickly and at attractive prices. In addition, SHOP APOTHEKE EUROPE provides comprehensive and consistent pharmaceutical services.SHOP APOTHEKE EUROPE N.V. has been listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard) since 13 October 2016.

MEDIA CONTACTS.

Trade and public media:
Sven Schirmer
Mobile: +49 152 28 50 63 61
Email: presse@shop-apotheke.com

Financial media:
Thomas Schnorrenberg
Mobile: +49 151 46 53 13 17
Email: presse@shop-apotheke.com

Investor Relations:
Dr. Ulrich Wandel
Telephone: +31 77 850 6117
Email: ulrich.wandel@shop-apotheke.com

DISCLAIMER.

This publication is an advertisement.
This communication constitutes neither an offer to sell nor a solicitation to buy securities of Shop Apotheke Europe N.V. in any jurisdiction. This is not a securities prospectus. No public offering of any securities of Shop Apotheke Europe N.V. is being made.

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Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the Group's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. You should not place undue reliance on forward-looking statements and the Group does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.