Summary of the Q3 2018 results

12 November 2018

AGENDA

1. Market and legal environment

2. Implementation of the pharmacy strategy

3. Financial results

4. Profit redistribution

5. Implementation of the customer strategy

2

Customer satisfaction assessment*

Summary of the Q3 2018

* Pharmacist Satisfaction Barometer Q3 2018

Share in the pharmacy wholesale market

28,7%

Pelion

4.12

NEUCA4,18

Farmacol

4.15

vs.3,97

in Q3 2017

vs.3,95

in Q3 2017

vs.4,14

in Q3 2017

28,7%

28,2%

Q3

2017

Q3

2018

0,5 p.p. r/r

825

695

Q3

2017

Q3

2018

19%

Number of pharmacies in the Partner+ program

Summary of the Q1-3 2018 results*

Sales revenues

PLN 5.8 billion

Revenues from

own products segment

PLN 103.9 million

Net profit

PLN 74.1 million

Profit from

own products segment

PLN 23 million9%

4%

17%

17%

6,51

5,99

6,24

6,47

7,12

6,38 6,446,57

7,49

6,78 6,78

6,97

7,81

6,877,07

7,23

8,38

7,067,21

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Stable and growing pharmacy wholesale market

Value of the pharmacy wholesale market in quarters and annual dynamics (blue color %)

in Q1 2014 - Q3 2018 (PLN billion)*

*IQVIA data

5,1% 5,3% 3,6%5,2%

2014 2015 2016 2017 2018

4,0%

• 1.9% dynamics of market

growth in the third quarter

(y/y)

5

Market position of NEUCA

Quarterly shares of the NEUCA Group broken down into market segments in the period of Q1 2016 -

Q3 2018 (%)

28,327,7

28,029,4 29,1 28,8 28,2

29,3 29,4

27,628,7

26,2

24,0 24,1

26,625,6 25,6

24,3

26,4 26,5

24,025,6

29,8 30,330,8

31,7 32,0 31,7 31,432,1 32,1

31,0 31,5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

In total Network pharmacies Independent pharmacies

• Stable position in the independent

pharmacies segment 31.5% in Q3

2018 vs. 31,4% in Q3 2017

• Regular work on improving the quality

and customer service; consistent non-

engagement in price struggle

• Increasing the range of programs and

market activities

2016 20182017

6

IMPLEMENTATION OF THE PHARMACY STRATEGY

We provide a better future

to all independent Pharmacies

in Poland.

Customer satisfaction — NEUCA is a quality leader

4,35

4,35

4,28

4,31

4,34

4,36

4,39

4,42

Range of products

Continuity ofsupplies

NEUCA Average Pelion Farmacol

4,13

4,31

4,12

4,28

4,14

4,31

4,19

4,35

Promotional offer

Commercialconditions

*IQVIA data, Monitor Apteczny Q3 2018

8

Customer satisfaction — NEUCA is a quality leader

4,35

4,12

4,35

4,15

4,42

4,21

4,56

4,36

Transportationservices

Logistic services

NEUCA Average Pelion Farmacol

4,36

4,17

4,32

4,19

4,41

4,28

4,56

4,47

Telemarketingservices

Complaintsservices

*IQVIA data, Monitor Apteczny Q3 2018

9

The increase in the quality of the order processing process - OTIF indicator

10

• OTIF order processing - product OTIF Order acceptance, OTIF completing and OTIF delivery

• Target at the end of 2018: OTIF Order processing at the level of 90%, exceeding 90% in subsequent years - the level of the best global

companies in terms of this indicator used in the industry.

• Improvement by 1 p.p. on an annual basis, OTIF Acceptance is a PLN 70 million increase in sales

• OTIF Completing - percentage of completed orders without complaints

• OTIF Delivery - percentage of completed deliveries without delays on the part of customers

72%77%

83%88%

82%86% 89%

94%99,70% 99,72% 99,70% 99,73%

88% 90% 93% 94%

2015 2016 2017 2018 Q3

OTIF Order processing

OTIF Order acceptance

OTIF Completing

OTIF Delivery

A complete portfolio of programs strengthens and stabilizes the market position

CU

ST

OM

ER

EN

GA

GE

ME

NT

AREAS OF CUSTOMER

SUPPORT

# 3776

# 864

# 253

# 825

# number of pharmacies in the program: as on 30.09.2018.

• As many as 43% of pharmacies (5718) in the country, including Partner+, 6% participate in programs and market activities

11

5 499

Q4 2017 IIIQ2018IIQ2018

5,718

+219

NUMBER OF PHARMACIES IN MARKET PROGRAMS AND ACTIVITIES

FINANCIAL RESULTS

Sales revenues (PLN billion)

1,9%market

dynamics

in Q3 2018

• The dynamics of revenues in the third quarter significantly higher than the pace of market development

13

1,81

5,59

1,87

5,80

3Q 2017 1-3Q 2017 3Q 2018 1-3Q 2018

4%

3%

Gross margin (%)

9,7

9,5

10,110,2

9,4

10,7

10,3

1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018

• Increase of gross margin by 0.2 pp (y/y) in Q3 2018 as a result of changes in the sales structure in favor of independent

pharmacies and improvement of results in patient businesses and own products

14

PLN 8

million

Operational profit

Operational profit (PLN million) Operational profit excluding one-off events (PLN million)

• One-time profit from the sale of real estate in Zielona Góra, at the level of PLN 1.6 million recorded in Q3 2018

• PLN 0.2 million - total effect on the result of real estate transactions (loss of PLN 1.4 million from the sale of real estate in Rzeszów in Q1 2018)

15

27,8

83,1

30,0

94,9

3Q 2017 1-3Q 2017 3Q 2018 1-3Q 2018

14%

8% 27,8

88,1

28,4

94,7

3Q 2017 1-3Q 2017 3Q 2018 1-3Q 2018

7%

2%

Net profit

Net profit (PLN million) Net profit excluding one-off events (PLN million)

• Decrease of financial costs in Q1-3 2018 by 13% to PLN 7.3 million as a result of short-term financing negotiations and repayment of

long-term loans and leasing with a higher interest rate

16

21,5

63,5

23,8

74,1

3Q 2017 1-3Q 2017 3Q 2018 1-3Q 2018

17%

11% 21,5

68,5

22,2

73,9

3Q 2017 1-3Q 2017 3Q 2018 1-3Q 2018

8%

3%

The Apteo brand appreciated by pharmacists

368

74

64

342

86

20

17

3,4

3,6

3,8

4,0

4,2

4,4

4,6

4,8

3,8

3,9

4,0

4,1

4,2

4,3

4,4

4,5

4.36

3,4

3,5

3,6

3,7

3,8

3,9

4

4,1

3.89

4.09

Data source: Data source: Current monthly result - Pharmacist Satisfaction Barometer - September 2018

Data source: Data source: Current monthly result - Pharmacist Satisfaction Barometer - September 2018

Product quality Price Attractiveness/Referrals

• In September the Apteo brand reached the highest level of indicators of the Pharmacist Satisfaction Barometer

Pharmacist Satisfaction Barometer (pt)

PROFIT REDISTRIBUTION

61,4**

Distribution of profit between shareholders: dividend and buy back

11,814,6

17,319,1

22,1

26,329,6

30,9

17,4

26,6

42,0

29,0

60,0*

3,203,80

4,33 5,005,75

2012 2013 2014 2015 2016 2017 2018

Value of the dividend (PLN mln) buy-back (PLN mln) value of the dividend per share (PLN)

2.60

* Planned share purchase value at the beginning of 2018

** Realized purchase value from January to 15.10. 2018

6.40

• Purchased 150K shares for redemption at the end of June at the price of PLN 310 per share; acquisition of a total of 204K shares from January 2018

• Adoption of resolutions on the redemption of a total of 289,442 shares (6.25% of the capital) in 2018; issuance of 83,220 new shares in 2018

• 35% average annual increase in funds allocated for distribution among shareholders (dividend plus purchase of shares for redemption)

19

IMPLEMENTATION OF THE PATIENT STRATEGY

We facilitate access to health protection

to improve the quality of life

and a sense of patient safety

Increase in sales revenues in patient businesses Q1-3 2018 *

Patient business segment

PLN 87.3 mln

Primary health centers

PLN 62.1 mln

34%

26%Clinical tests

and telemedicine*

PLN 25.9 million

55%Ortopedio.pl

PLN 3.3 million** 57%

* Diabids results; ** The results of Ortopedio.pl in the financial statement are included in the pharmacy wholesale segment

• Increase in the scale of operations of the clinic by joining the new health facilities to the Świat Zdrowia network

• A surge in the number of contracts in the SMO segment, investments in the Clinmed Pharma Clinical Research Center in the CRO

segment

• The growing range of pharmacies cooperating with ortopedio.pl and the growing number of platform users

25

Work on the effectiveness of the Świat Zdrowia network

Medical Clinics “Świat Zdrowia” (“the World of Health”)

• Filling in nearly 7400 e-prescriptions as part of the nationwide pilot program of the system,

• participation of two branches of NZOZ Judyta in Skierniewice

• Active development of the patient booking portal at www.dolekarza.pl

• and increasing appointments via the online channel

• Covering more than half of the clinics with the implementation of a homogeneous standard of patient service

• Improvement of patient's contact with the clinic through launch for selected clinics’ call center services

• Participation in the government POZ Plus program financed by the EU and the World Bank, directed to

• patients with the 11 most common chronic diseases

61

medical

clinics

150,000patients

27

Clinical tests

CRO (Clinmed Pharma and BioScience)

• Significant share of the CRO segment in the results of clinical trials

• Implementation of the EPOCH project related to the treatment of bowel cancer

SMO (Pratia)

• October’s takeover of the largest independent clinical research center - Małopolskie Centrum Medyczne

• 20 years of experience in implementing projects in the field of hemato oncology, currently 70 projects under way

• Value of the takeover transaction of MCM PLN 18 million

• PLN 11 million in revenues and gross profit of approximately PLN 2.6 million in 2017

• Implementation of a high-margin clinical trial in the field of biological treatment in patients with psoriasis

23

PLN

11.7 million

116% y/y

value and increase of

SMO contracts

Q1-Q3 2018

43259% y/y

number and increase of

contracted

patients

Q1-Q3 2018

Increase in the range of e-commerce channels

Ortopedio.pl

• 600 pharmacies with reh-ort equipment

• Nearly 130 pharmacies with NHF (NFZ) refund, the largest number of outlets with a refund in the reh-ort area in Poland

Apteline.pl

• A significant increase in the number of orders placed through

Apteline.pl by 78% in Q3 vs. Q2 2018

• 0.9 million visits by unique users and 1.1 million visits in Q3 (300%

increase)

• Almost 14,000 products on offer

24

1700

pharmacies

cooperating

with ortopedio.pl

1170

pharmacies

cooperating

with apteline.pl

Synergies in the field of telemedicine

Diabdis

• Launching the prescription service after teleconsultation with a Diabtis doctor

• a prescription for medicines in accordance with the patient's refund

• no need to visit the POZ; home delivery of prescriptions

• order processing via apteline.pl, collection at the pharmacy of the patient

• Launching the functionality of ordering medicines in the Diabdis mobile application and at the Diadbis Patient Portal

• The “My First Aid Kit” section acting as a shopping basket on Apteline.pl

Telemedycyna Polska

• Dynamic growth of active Kardiotele subscription contracts (+600 in Q1-3 2018)

• Increase in the average monthly subscription under new Kardiotele contracts from PLN 69.8 (01.2018) to PLN 97.1 (09.2018)

• Improvement of the sense of security under the influence of the Kardiotele service, according to 90% of respondents (NPS Study, 07.2018)

25

4533

Number of participants

in the Diabdis program

3400

Number of subscribers

of the Kardiotele service

Telemedycyna

Polska

FUTURE PERSPECTIVES

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