Good day, and welcome to the Shop Apotheke earnings release Q2 2021 call. At this time, I would like to turn the conference over to Stefan Feltens. Please go ahead, sir. Well, thank you for the introduction, and hello, and good morning from Jasper and from me. We have the privilege to welcome you one more time, once again, to our earnings release from our headquarters here in Sevenum. The last quarter, as you already know, of course, had its challenges for Shop Apotheke, but we can say with confidence that we have and we are making progress with putting these issues behind us. More about this in a moment. What do we want to cover today? We're going to start with what I was just referring to. Where are we with the situation in logistics, with the temporary capacity constraints we have experienced? We're going to start with this. Jasper and I are going to walk you through the financial performance in the first half of the year, in the second quarter. I will give a very short update on two key strategic initiatives, rest assured, we will have sufficient time to answer any questions you might have. Similar to what we did in our Q1 call, you will be able to ask questions via live audio. In this case, please use the specific, the separate phone dial-in numbers that you will see later, but they were also part of the invitation. Quick update on logistics. Before we talk about the status quo, just let me walk you through some of the milestones of moving our business, our activities from the old facility to the new facility. This actually started last year in October, when we transferred all the orders from customers in our international segment to our new facility. By using some of the capacity here in our new facility and still operating the old facility full steam, this allowed us to post record sales in Q4 last year and again in Q1 2021. In January, we started using our new automated equipment and our automated processes, and then the most important milestone happened in April and in May, when we transferred all of the non-prescription orders from customers in the DACH region to our new facility. Of course, in May, we started to encounter a shortage of resources, especially in our distribution facility in light of a surprisingly fast-tightening labor market in the greater Venlo area. This is not, of course, limited to this part of the Netherlands. Admittedly, that is something that we had not anticipated, at least not to the full extent. Where do we stand today? We have taken a number of actions in order to address our manpower shortage. We have enhanced and changed some of our internal processes. We have enhanced and improved the compensation packages. Again, there is a different competitive environment. That is something that has just taken place over the last few days. With this measure, we are confident that we will be able to attract additional talent to Shop Apotheke, and it will also help us to retain the people that are already working for Shop Apotheke, so it will help us to reduce fluctuation. In addition, we have strengthened our recruiting processes. We have strengthened and increased our recruiting resources. Of course, we are doing all of this to get us back onto the Shop Apotheke growth track and equally, or one might say even more important, we want to have the capacity in place by the end of this year to be able to take advantage of the eRx mandate as of January next year, but also other opportunities that present themselves beyond the boundaries of Germany. Our move to the new facility will actually be concluded by the end of September, when we will have transferred also all the Rx orders from the old to the new facility and any or all the orders containing any cold chain products. Shifting gears, Jasper and I are going to walk you through the financial performance in the first half of the year in the second quarter. What were some of the key facts of the first six months? Our sales increased in the first six months of the year by 15% to EUR 534 million. In the second quarter, our sales increased by 8% to exactly a quarter of a billion EUR. In Q2, we posted for the sixth quarter in a row, a positive adjusted EBITDA of around EUR 1 million. For the first six months, we generated an adjusted EBITDA of EUR 7 million and 1.3% of net sales. Our customer growth, the growth of our active customer base, continued to increase significantly compared to a year ago. Our active customer base increased by 1.6 million. Our strong operational performance allowed us to generate a positive operating cash flow, and Jasper is going to share more details in a couple of minutes. You, of course, are all familiar with the guidance update that we provided on the 22nd of July. We are now projecting a sales growth, a top-line growth of 10%-15% with an adjusted EBITDA margin at around break-even level. A quick look at our two reporting segments, the DACH region and the international segment. Both segments were, of course, impacted by the capacity constraints we experienced in the second half of the second quarter. Starting with the international segment. The international segment still, for the first six months of the year, posted, I can say, solid year-over-year growth of 44%. Of course, for a six-month period, for the first time, they exceeded the EUR 100 million threshold. Our DACH business expanded over the first six months by 10% and generated sales of close to EUR 430 million. Going back to our active customer base. By the end of June, so as of the 30th of June this year, we had exceeded the 7 million mark of active customers. I know you all are familiar with the definition of an active customer, somebody who has placed at least one order over the last 12 months. The 1.6 million increase is an increase by almost 30%. Moving to the right-hand side of the chart, starting with the customer satisfaction measured via the net promoter score, the NPS. Not surprisingly, we experienced in the second quarter some extended delivery times because of the capacity constraints we had. After an NPS of 70 in the first half Excuse me, an NPS of 70 in the first half of last year. There's a typo on the chart. The NPS in the first half of this year dropped to 68. On the next chart, we're going to share some new and additional insights into the evolution of our net promoter score. Our average basket value came in at EUR 62.57, after it had been a bit above EUR 65 in the first six months of 2020. The key driver was the lower share of our Rx business, which generates higher average basket values. This is, of course, not what we want and what we had planned for. Again, comparing this to other companies, comparing this to other industries, anything above 60 would still be considered as a reasonably good NPS. Of course, it's not good enough for Shop Apotheke. Very encouraging, and I was referring to this earlier, is that we see a recovery of our NPS. The last data point with a score of 71 is once again within our target range. I acknowledge 3 data points don't yet necessarily make a trend. At least the early signs are encouraging that the measures that we have taken are taking hold and are helping us to get out of the valley that we experienced, again, in the first half of July and in June. Switching to our web traffic. The red line shows the weekly total visits to all of our websites in all of our markets. You see a peak towards in late February and in March. You see a couple of weeks where the web traffic was pretty steady on the right-hand side here. You see a sharp decline that started in early June. Of course, this is directly related to the capacity constraints we experienced and triggered by the capacity constraints. Of course, we reduced our marketing investment because we didn't want to generate additional orders that we would have had problems to process. When you look at the blue bars, which show the weekly year-over-year growth, so the growth of our web traffic or the change of our web traffic with the same week a year ago. Throughout the period that we're showing here, our web traffic has grown, albeit, of course, not at the pace towards the end of this period that we would like to have seen. The sharp drop from April or in April, of course, has to be seen in the context of the start of the COVID pandemic last year in March and April, when we saw a significant jump in our web traffic. With this, I'll hand it over to Jasper to walk you through the financials. Thank you very much, Stefan. Very clear. Good morning to everybody on the call. On this slide, we see the orders per quarter of the past two and a half years, and it's in thousands. For example, at the right side of the slide, rounded, you see that we processed 4.7 million orders in the current quarter. There are a couple of messages I would like to highlight on this slide. First of all, if you look at 2019 and 2020, you see that we generally tend to peak in the first quarter of the year and then have a slower second quarter. That is because of seasonality. Let there be no unclarity, we were aiming for more than the 4.7 million orders that we processed in the current quarter. Another key message on this slide is in the green circles, where you are seeing that also in the past quarter, we had more than 80% from our total volume coming from returning existing customers, and we also at the same time had a healthy inflow of new customers continuing. The last thing I would like to highlight here, of course, the 4.7, we wish it would have been a little bit higher, but it's also clearly our second highest quarter ever, even higher than our very strong fourth quarter of the past year, which was at a 4.4, and this is showing the strength with which we entered the second quarter. To the next slide. What did those 10 million orders we did in total in the first half of 2021 bring us in from a number perspective? On this slide, in the customary format, all the key P&L items. Before I start discussing the sales tool, including the adjusted EBITDA, a word on the adjustments. Of course, we had a quarter with turbulence in quarter two, but we continued to apply the same definition of our adjustments. That is mainly the accounting treatment of our ESOP program, and the remainder is from one-off project related costs. In the second quarter, this was EUR 2.6 million, the total adjustments, exactly the same number as we had in the first quarter of this year. Going to the sales. Stefan mentioned already the above EUR 500 million of sales that we achieved over the first six months, and this has also given me the opportunity to tell you that the numbers improved slightly versus the preliminary numbers that we released on July 5. The Q2 growth preliminary was 7.3% in the second quarter, but it increased to 7.6% in the second quarter and around 15.0% over the first six months. On the 22nd of July, we got a question about our Rx developments in Germany. Stefan then responded that the preliminary number was a decline of 26%. The final numbers are is that there was an Rx decline of 24% over the first half of the year. Gross profit margin. Gross profit margin was around 25.5%, both in the first half and in the second quarter, which was well up year-over-year. A little bit later, I have a bridge on that. Selling and distribution, it was a bit over 21% of sales. It was up over the first half, 3.7 percentage points versus last year. In the second quarter, it was up 3.6%, to be precise. The adjusted administrative costs were around 3%, both in the first and in the second quarter. All the numbers I just mentioned, if you add them up, you get to the adjusted EBITDA year to date, EUR 6.9 million positive. Also in the second quarter, we reported a EUR 1.2 million positive adjusted EBITDA. As Stefan mentioned already, it's the sixth consecutive quarter of a positive adjusted EBITDA margin. The gross margin. It increased from 22.5% by 3 percentage points to 25.5%. If I start with the first building block, it is also the sixth consecutive quarter that we disclose to you that we've achieved year-over-year improvements in our sourcing. Half year this year compared to last year, an improvement of 0.3 percentage points. There was a benefit of 0.6% from the net pricing and vouchers, which includes vouchers related to Rx. The other one of 1.2, also a benefit, but that's mainly mix. It is mix in countries and mix from Rx to OTC. A more fundamental important block, a building block here of 0.9% is other. There is in part the fact that we had last year higher write-downs of COVID-related assortment, but the main element in this improvement is a higher media and monetization income. On this slide, everything related to the gross profit margin fell to the positive. The next one, please, Carmen. This is the expenses as a percentage of sales. From 17.5%, it increased by 3.7 percentage points. Clearly, the increase came from higher marketing. On one hand, we had last year a very marketing efficient period at the start of Corona, and this year we invested really in our marketing position. Shipping packaging increase because of the very strong growth we achieved, 44% year to date in our international business. The slight increase in operational labor should not come as a surprise. At the moment, we are operating two facilities, and last year it was just one, and the other is mainly reflective of our increase in IT. Next one, please. The cash flow slides. The good thing about cash is that you can talk about EBIT, net income, about adjusted EBIT or non-adjusted EBIT, but cash is what it is. If I start with the building blocks, you see that despite some headwinds we experienced in the first half of the year, we started with an absence of cold and flu, there was a lower allergy season, the bonus on our Rx, and also our internal logistics issues, we still generated EUR 5 million of positive operating results. In addition to that, the favorable working capital movements resulted in an inflow of EUR 20 million. The sum of the two, the operating cash flow, was at EUR 25 million over the first six months of 2020. Investments at EUR 61 million were at an elevated level. It includes the two business acquisitions of the first quarter, MedApp and smartpatient. It includes our investments in the new automated warehouse, and it includes our regular PP&E and IT. Of course, IT, because after all, we are this tech and digital front-runner company. Also this year, we had in quarter one a very successful placement of convertible bonds at the zero coupon, and this is the main reason for the inflow of well above EUR 200 million. On this slide, you see cash, which is defined as cash and cash equivalents, including our short-term financial assets. We started the year well above EUR 100 million, and we ended the second quarter in a cash position of well above EUR 300 million. A solid cash position. With that, I hand it over back to you. Is that okay? Okay. Thank you, Jasper. Well, quick update on two key strategic initiatives. Before we go there, despite some hiccups that we have and probably will continue to experience occasionally, we firmly stand behind our ambition, and we are convinced that we remain fully on track to develop Shop Apotheke to become Europe's leading customer-centric e-pharmacy platform. Now switching to the two initiatives. The first one is our same-day service. You might remember that we had aimed to cover all of the metropolitan areas in Germany by the end of this year. Actually, we achieved this ahead of schedule by the end of June. You see here all the red dots. We are able to serve all of the metro areas in Germany with our same-day service under the Shop Apotheke Now! label. We have now the opportunity to reach more than 20 million potential customers. Of course, the same-day service is especially relevant if customers have acute medication needs and cannot and don't want to wait until the next day or the following day to receive their package. By the way, that is also something that we closely monitor. The NPS or the customer satisfaction of the people that use our same-day service is very, very strong. That's a very encouraging sign for us. The other topic that's probably on our minds is the ongoing eRx pilot that was launched by the gematik on the 1st of July, according to their schedule, so they were on time with this. Since the 1st of July, the gematik has processed many electronic prescriptions, and the main objective is to ensure that all the e-prescription related processes and the systems are working properly. July 1st actually marks the start, the launch of electronic prescriptions in Germany. It's our understanding that in the initial phases of the pilot, the emphasis was on the claims processing aspect of the electronic prescription of the eRx processes. To ensure that electronic prescriptions flow properly and smoothly from the pharmacy through the claims processing center to the statutory health insurer. As far as we as Shop Apotheke are concerned, I can say with, I dare to say with a healthy dose of pride, that we are ready. We are ready to receive electronic prescriptions. We have not yet received a prescription from the pilot. If this is the case at a later point in time, we will certainly be ready to properly process this first electronic prescription for Shop Apotheke. I can only, also in front of you now, express my appreciation also on behalf certainly of Jasper, to the task force that had been put in place two years ago, and that has worked tirelessly to make sure that we are ready. I can state, again, with appreciation and with gratitude, I can state that all of our front-end and our back-end processes are ready. We are prepared for e-prescriptions. Taking a closer look at the pilot that was started by the gematik, as I said, on the 1st of July. The gematik talked about three phases, a hyper care phase, an extended care phase, and an enhanced care phase. Based on what we have heard, it looks as if the gematik has moved, has progressed towards or into the enhanced care phase. The enhanced care phase, of course, is important because that's when the pilot that's limited to the Berlin-Brandenburg region will be scaled up towards around 100 pharmacies at the end of September and around 50 physicians. Once the pilot is concluded around the end of Q3, the nationwide rollout of electronic prescriptions in Germany is actually going to happen. Meaning, once the pilot has been concluded, then all the physicians in Germany and, of course, then pharmacies, as the next part in the process chain, will be able to issue and to process electronic prescriptions. They don't have to, but they can if they want to. This is, of course, all in preparation for the eRx mandate, meaning that physicians in Germany, starting on the 1st of January next year, will be obliged to issue electronic prescriptions in the vast majority of instances. Again, in conclusion, based on everything that we are hearing, based on everything that we are seeing, it seems as if the gematik remains on track to conclude the pilot as scheduled, and then to move towards the nationwide rollout of electronic prescriptions across not just the Berlin-Brandenburg region, but all the regions in Germany. The last chart, we just want to show you again the guidance, but you're very familiar with this, 10%-15% top-line growth is what we're projecting for the year. I don't think we need to walk you through the details, because we want to move to your questions, and we want to make sure that we have enough time. As I said, this concludes the presentation by Jasper and by me, and we now move to your questions. I just want to reiterate, please use the dialing numbers that you see on the screen. The last point from my side, please don't forget, while you ask your question, please mute your webcast, because otherwise we get the ugly echo. With this, operator, do we already have a question? Yes, we do. As a reminder, if you do wish to queue for a question, please signal by pressing star one on your telephone keypad. Again, that is star one to queue for a question. We'll now take our first question from Alexander Thiel of Jefferies. Please go ahead. Hi, Stefan and Jasper. I hope you can hear me. Thank you for the update. Despite most of the points being pre-released, a couple of questions from my side. I would like to take them one by one. Firstly, I would like to understand your underlying growth assumptions for the rest of the year. You said that you are back on stable operating performance again. I'm assuming correctly that Q3 will most likely be in the same magnitude, such as the second quarter, with July and part of August fully impacted, and potentially a return to higher growth in Q4, ultimately depending on when you fix your labor issue. What could be the upside of the current guidance if you fix the issue already in August and basically have the flexibility on the marketing side to really scale up growth going forward? Thanks, Alex, and once again, good morning. Your summary is exactly correct. That's exactly how it is. Indeed, we expect in Q4 a higher growth than in Q3, because in July our performance was comparable from a customer satisfaction perspective, much better because our delivery times are back to normal. From a total capacity perspective, we started Q3 as we end with Q2. Growth in Q3 lowered, and it's our best estimate, but our guidance is a full year growth of 10%-15% with a higher growth in Q4 returning. Yeah. Okay. Thank you. The second question would be on your pure German underlying performance. Could you clarify how many of your 7 million active customers are German-based? Well, Alex, again, we don't disclose this. What we disclose is the total number of our active customers. Germany, of course, is by a wide margin our biggest market, but we don't disclose the breakdown by country. Okay. Lastly, on your same-day delivery service, could you provide more insight how many pharmacies are on board and how the incentive structure is built up for brick-and-mortar pharmacies and on the Shop Apotheke side? That would be interesting. Thank you. We decided to roll out our Now! service master. That was because of the very good and promising results we had in our first test under the radar screen, then the live test, both from a financial perspective, also from a customer satisfaction perspective. The exact numbers, we don't disclose. In the total P&L they are not significant yet, from a business case perspective, they are very positive. As to the margin structure, I think you will understand that we will not share what the exact margin structure is, it's the classical win-win-win, where you will see that the pharmacist is happy with the additional sales. We get a fee for the additional sales, a customer is paying to us. We handle the last mile, and we handle the payment process. That's the basic structure. Do you have a follow-up on that? Okay, maybe. Yeah. Yeah, definitely. Maybe a follow-up. Is it structured on a subscription fee, or is it take rate based? Will you expand the same-day delivery for Rx as well in the future? There is no subscription, but if there's appetite for a subscription, then we might do a subscription. What you are now seeing is that our Redcare loyalty program patients, customers, they pay a lower delivery fee than our other customers. Your second question was the subscription. It's absolutely our intention. There are some challenges there still to make that possible, but with the introduction of eRx, it's absolutely our intention that that's also possible through this marketplace same-day delivery Now! service. Yeah. Okay, perfect. Thank you. Yeah, thank you. Yeah. We will now take our next question from Olivier Calvet of Kepler. Please go ahead. Yeah. Hi, good morning again. Couple of questions. We'll take them also one by one. First one, I appreciate the color on net promoter score. I was just wondering if you could help us understand how much your delivery times increased by on average over these times. I think, looking at the last calendar weeks of Q2, maybe weeks 23, 24, or to 27. Can you shed some light on how much more time it took for you to deliver packages on average? I don't have the data in front of me. Olivier, I can share my own story. I placed an order in late June, and it took over a week to get the package, and I placed an order when I returned from vacation around the middle of July, and I got the package the next day. Again, it was a significant extension of our delivery times, but I don't have the data, the precise numbers in front of me. Jasper, do you have any color there or? Yeah, that is fully correct that you ask the question there, Olivier, because indeed, sometimes the world is very simple. One of the main reasons for an NPS, whether it's high or low, is do I get it delivered on the time that is promised to me? This is indeed the main reason for the decline we had there. Indeed, normally, we have a certain percentage internally that we want to deliver on the next day. Ordering and then delivering the next day, and we significantly slower with that. As always, we prioritize our Rx orders because of the necessity for customers to have that. The delay was more in health and beauty orders we had in the past weeks. As of now, we are back on track with our SLA to the customers. Okay. Maybe a related question would be perhaps your average time usually, or where you want to be currently in terms of the delivery time between the order and the delivery to the end customer. Can you maybe give us a rough idea of where you want to be? We want to have a significant part delivered the next day after you order, and we promise the customer generally that they will receive it in one to two days. Okay. Then second question- In Germany. It depends per country. We are active in 70 countries. Yeah. It depends per country what we promise. Yeah. Yeah. That's a perfect transition. Just among these logistic problems, have you prioritized the German or the international market? Is there anything there or was this hitting both? No, the prioritization that we did, as Jasper just mentioned, is based on medical necessity. We prioritized Rx orders. That means because we are serving Rx almost exclusively in Germany at this point of time. Besides this, there was no prioritization by country. Okay, fair enough. You said during the presentation that you moved the non-prescription part to the new facility in May. Is the prescription business still in the old facility currently? That's correct. Again, the prescription orders and the cold chain orders will have been moved by the end of September. These are the last orders that are currently processed in our old facility. Okay, fair enough. I was just wondering if you could come back. There were reports that you received a letter from the EU Commission explaining they would stop the infringement procedure against Germany concerning the Rx pricing and the issue with the Vor-Ort-Apotheken-Stärkungsgesetz. Are you now going to take legal steps on your own against this German law or no? Olivier, you're right. We received a letter from the European Commission. There's an opportunity for us to reply to this letter. I don't know whether you have access to this letter, but at great length, the European Commission outlines and explains why the bonus ban is a violation of European law. As they coin it, because of opportunity reasons, they propose, the decision hasn't been made yet, but they are considering to stop the infringement proceedings. Again, that's what you are alluding to. They're encouraging us to pursue this topic through other means. That is what we have been considering for quite some time. At the same time, again, since the beginning of the year, this is nothing fundamentally new. We have been dealing with the bonus prohibition. Again, that is what we are doing right now. We are drafting the reply to the European Commission. Of course, our position is, that's what they have stated is, it's their responsibility to ensure the enforcement of European law. They might make a different decision in this specific instance, we need to consider the other legal options that are available to us. Okay. Yeah, on your own. Okay. Final two questions. Sorry for that. Just on the adjustments to EBITDA, I understand it's primarily the employee stock option plan, but can you work out the expected number over the full year? Maybe, we saw the total adjustment, I think the number was roughly the same in Q1 and Q2. I'm just wondering if that should also be the case for Q3, Q4? Yeah. No, the exact numbers and also the table with the exact details are also all split out in the interim report. We started doing that- Yeah -giving a full transparency. What you will see there is that close to 70% of the total adjustments is related to the ESOP program. The ESOP program is based upon the accounting treatment of the Black-Scholes and is reflecting the fact that our share price increased so much the past year. That's a non-cash item, but it's a correct accounting treatment, so that's about the level. Indeed, because you determine this value at the moment of granting, that means that you can expect the same number for the coming quarters. Yeah. Okay. Final one, sorry again, on finance expenses, I just wanted to confirm, the online payment expense is part of your financial cost. Would that be fair to assume that it's roughly 60% of those financial expense? No, absolutely not. No, it's much lower. The main elements there is, as you know, because we discussed it before, there is the financing expenses related to our new convertible bonds, but we pay zero coupon, so that's the accounting treatment. Cash wise, we don't pay interest, but it's in there, so it's the convertible bond. It's net interest that we're paying. Importantly, it's the operating lease financing element that we're paying. It's our lease of our building, and then there is a smaller part related to payments. Yeah. Okay, fair enough. Thanks a lot. Yeah. Thanks. You're welcome. Thank you for the questions, Olivier. As a reminder, if you wish to queue for a question, please signal by pressing star one on your telephone keypad. It appears there are no further questions at this time. I'd like to hand the call back to you. Okay. Well, we're not surprised that there are not too many questions because, again, we've been in contact with you over the last few weeks. We just want to conclude with, again, acknowledging the hiccups that we have talked about, and I think we were transparent. It looks like we are on our road towards recovery as far as our operational performance is concerned. More important is the readiness that we have achieved in terms of being able to process electronic prescriptions with front and back-end processes. By the end of the year, and that's what we're focusing on now, is we want to have the capacity in place to be ready to take advantage of the opportunities that will present themselves in 2022. We want to thank you for your time and for your interest in Shop Apotheke. You know how to reach us if you have additional questions. Please, we know you're not shy to reach out to us. Thank you. Have a great day. Thank you. Bye.