PharmaSGP : Interim Statement Q1 2024

Interim Statement Q1 2024

Broad and long-standingregulatory expertise

PharmaSGP at a Glance

PharmaSGP is a consumer health company with a di-	ƒ A wide target group media reach of more than
versified portfolio of leading over-the-counter (OTC)	165 million contacts per month
pharmaceuticals and other healthcare products.
PharmaSGP's OTC products cover highly relevant and	In order to focus on its success drivers, PharmaSGP
chronic indications. In a structurally growing market,	has deliberately established a scalable, asset-light
it has thereby been able to establish market-leading	business model which can also be transferred
positions in many important areas, such as rheumat-	quickly and efÏciently to other target markets. The
ic and neuralgic pain, sleep disorders or men's and	entire manufacturing process is handled by a diver-
women's health. In Germany for example,	sified network of third-party manufacturers in Eu-
PharmaSGP is the market leader for systemic chemi-	rope. In Germany and in foreign markets, individual
cal-free OTC pain remedies with its brand families	local logistics providers supply wholesalers and to a
RubaXX® for rheumatic pain and Restaxil® for neural-	lesser extent pharmacies directly. Combined with
gic pain (nerve pain).	many years of experience of approval processes for
		new OTC pharmaceuticals in Germany and abroad,
With the acquisition of the established OTC brands	as well as regulatory requirements for other health-
Baldriparan®, Formigran®, Spalt® and Kamol® in Sep-	care products, PharmaSGP's platform allows it to
tember 2021, PharmaSGP has expanded its portfolio	quickly and efÏciently establish and grow both new
through further market leaders in their categories.	and existing brands and to establish its business
For example, Baldriparan® is the No. 1 herbal sleep	model in other countries with little investment.
aid in pharmacies, and Formigran® is the leading OTC	PharmaSGP's products are marketed directly to
pharmaceutical against migraine.	their target group, especially senior citizens, under
		well-known pharmaceutical brands via a specialized
Over the past twelve years, PharmaSGP has created	D2C marketing strategy with a wide target group
a platform to successfully integrate and grow brands	media reach and efÏcient commercial media condi-
in all its European markets. Five key factors are the	tions.
basis for the ongoing success:
		Since the launch of the first product from the cur-
ƒ	A proven, scalable asset-light business model	rent product portfolio in 2012, PharmaSGP has suc-
	combined with established processes	cessfully transferred its business model to Austria,
		Italy, Belgium, France and Spain. Since September
ƒ	A highly diversified European supply chain	2021, the Group has expanded its operations to
		Switzerland and Eastern European EU countries.
ƒ
ƒ	A strong and specialized Direct-to-Consumer
	(D2C) marketing strategy

Overview of Performance Indicators

REVENUES

in € thousand

+25.8 %	30,205
24,011
Q1 2023	Q1 2024

Adjusted EBITDA

in € thousand

29.2 %	29.4 %
+26.5 %	8,869
7,011
Q1 2023	Q1 2024

PharmaSGP on the Capital Market | Economic Report | Condensed Interim Cosolidated Financial Statements	4

PharmaSGP on the Capital Market

In the period under review from January 2023 to April 2024, the share price of PharmaSGP peaked at € 29.30. On 30 April 2024, the share closed at a price of € 23.40, which corresponds to a market capitalization of € 280.8 million or a share price performance of - 12.0 % in this period. The benchmark index Euro Stoxx Total Market Pharmaceuticals & Biotechnology also achieved a negative performance of - 6.7 % in the same period.

Share Price*

115

110

105

100

95

90

85

80

75

70

65

31/12/2022

30/01

/2023

28/02

/2023

31/03

/2023

30/04

/2023

31/05

/2023

30/06

/2023

31/07

/2023

31/08

/2023

30/09/2023

31/10/2023

30/11

/2023

31/12

/2023

30/01

/2024

29/02

/2024

31/03

/2024

30/04

/2024

PharmaSGP

Euro Stoxx Total Market Pharmaceuticals & Biotechnology

*  based on Xetra closing prices of Deutsche Börse AG 31 December 2022 = 100

Master Data of the Share*

Security Identification Number (WKN)

ISIN

Ticker symbol

Type of shares

Initial listing

Number of shares

Closing price* (30 April 2024)

High / low*

Market capitalization (30 April 2024)

Stock exchange / segment

Designated sponsor

* based on Xetra closing prices of Deutsche Börse AG

A2P4LJ

DE000A2P4LJ5

PSG

Ordinary bearer shares with no par value (no-par value shares)

19 June 2020

12.0 million

€ 23.40

€ 29.30 / € 18.10

€ 280.8 million

Frankfurt Stock Exchange / Prime Standard

Joh. Berenberg, Gossler & Co. KG

PharmaSGP on the Capital Market | Economic Report | Condensed Interim Cosolidated Financial Statements	5

Shareholder Structure

Information based on the voting rights notifications received pursuant to the German Securities Trading Act, WpHG and other disclosed information (as of March 2024)

13.0 %

5.4 %

0.1 %

FUTRUE GmbH / MVH Beteiligungs- und Beratungs-GmbH*

Union Investment Privatfonds GmbH

PharmaSGP Holding SE (own shares)

Free float

81.5 %

*  Based on a voting agreement between FUTURE GmbH and MVH Beteiligungs- und Beratungs-GmbH, there is a mutual attribution of voting rights between FUTURE GmbH and MVH Beteiligungs- und Beratungs-GmbH with regard to all shares held by them in Pharma SGP Holding SE.

PharmaSGP on the Capital Market | Economic Report | Condensed Interim Cosolidated Financial Statements	6

Economic Report

Course of Business of PharmaSGP

According to data sourced by the German Federal Statistical OfÏce, Germany's gross domestic product decreased by 0.3 % in 2023.1 With a slight GDP growth of 0.2 % in the first quarter of 2024, a recession was avoided.2 However, the Kiel Institute for the World

Economy (IfW) still does not expect an economic recovery for the full year, citing structural problems. According to the Kiel-based economic researchers, the German economy will do little more than stagnate with a forecast growth rate of 0.1 % in 2024. A more significant increase in GDP of 1.2 % is not expected until next year.3

In this industry-specific market environment, PharmaSGP successfully continued to expand its business development in the first quarter of 2024 despite the overall economic stagnation. Revenues reached

• 30,205 thousand, which corresponds to an increase of 25.8 % compared to the prior-year quarter. The high profitability level of the past was also maintained (adjusted EBITDA margin Q1 2024: 29.4 %, Q1 2023: 29.2 %). In addition to the continuous growth in the German market, revenues in Italy and Austria in- creased at an above-average rate. Internationalization is thus progressing according to plan.

The IfW also sees the Eurozone in a phase of economic stagnation. After GDP grew by 0.5 % in 2023 according to Eurostat figures, the IfW expects the economy to pick up slightly in 2024 with growth of 0.7 %. In line with the forecast for the German economy, slightly stronger GDP growth of 1.5 % is again predicted for the Eurozone in 2025.4

Key development trends such as an ageing society, the ongoing increase in health awareness and an increase in self-medication, are the drivers for continued growth in the pharmaceutical and healthcare market relevant to PharmaSGP. In Germany, the OTC market grew by 6.5 % YTD in the first quarter of 2024.5 For the period from 2024 to 2029, an annual growth of 2.9 % and 3.9 % is expected in the OTC market in Germany

and in Europe.6

Revenues Development

REVENUES

in € thousand

+25.8 %	30,205
24,011
Q1 2023	Q1 2024

ƒ Significant revenue increase compared to the prior year Q1 2023 and also compared to the previous quarter Q4 2023.

ƒ Growth is achieved in almost all indication areas of the Health Brands category and also in the Beauty Brands category.

1 Institut für Weltwirtschaft (2024), Kieler Konjunkturberichte, Deutsche Wirtschaft im Frühjahr 2024, p. 3

1. https://www.destatis.de/DE/Presse/Pressemitteilungen/2024/04/ PD24_173_811.html
2. Institut für Weltwirtschaft (2024), Kieler Konjunkturberichte, Deutsche Wirtschaft im Frühjahr 2024, p. 4
3. Institut für Weltwirtschaft (2023), Kieler Konjunkturberichte, Weltwirtschaft im Frühjahr 2024, p. 17 ff.
4. Insight Health Database, OTC-Market Germany (ApU) excluding diagnostica
5. https://de.statista.com/outlook/hmo/otc-pharma/deutschland;https://de.statista.com/outlook/cmo/otc-pharma/europa

PharmaSGP on the Capital Market | Economic Report | Condensed Interim Cosolidated Financial Statements	7

Revenues by Region

Other European countries

4 %

Austria

9 %

Italy	Q1 2023
12 %
	Germany

75 %

Other European countries

2 %

Austria

11 %

Italy	Q1 2024
18 %
	Germany

69 %

• Main growth contributors in the first quarter of 2024 were the Italian (+ 80.2 %) and Austrian (+ 49.7 %) markets.
• Germany remains the key market by volume.

	Revenues by Category
	in € thousand
	+25.1 %		ƒ	Growth is driven by almost all indication areas of
5	29,035			the Health Brands (+25.1 %), the main focus in
			PharmaSGP's portfolio strategy.
0	23,214		ƒ	The Beauty Brands category - starting from a
5				lower level - also recorded strong growth in
				revenues.
0
		+42.0 %
5
		797	1,132
0
	Health Brands	Beauty Brands
	Q1 2023	Q1 2024

PharmaSGP on the Capital Market | Economic Report | Condensed Interim Cosolidated Financial Statements	8

	Revenues Health Brands
	in € thousand
	+18.4 %	ƒ	The main growth markets are Italy and Austria,
			where the Group could generate 18 % and 11 % of
5	23,609		its total revenues in the first quarter of 2024.
0	19,936	ƒ	Thus, internationalization is progressing as
			planned.
5
		+65.5 %
0
		5,426
5		3,278
0
	DACH	Other European
		Countries
	Q1 2023	Q1 2024

Revenues Beauty Brands in € thousand

+80.3 %	ƒ Growth in DACH region results from increased
	+11.3 %	demand in skincare products in Germany.

640
	442	492	ƒ
355
DACH	Other European
	Countries
Q1 2023	Q1 2024

In other European countries, Beauty Brands

remain on a solid level.

PharmaSGP on the Capital Market | Economic Report | Condensed Interim Cosolidated Financial Statements	9

Earnings Development

Asset Position

In the first quarter of 2024, PharmaSGP achieved an adjusted EBITDA of € 8,869 thousand, which corresponds to a margin of 29.4 %. Compared to the prior year period, adjusted EBITDA has significantly improved by € 1,858 thousand or 26.5 %. The adjusted EBITDA margin has improved by 0.2 percentage

points.

Assets

in € thousand

140,929

131,299

66,996

68,482

in € thousand

adjusted EBITDA

adjusted EBITDA margin

One-time effects

unadjusted EBITDA

unadjusted EBITDA margin

Q1 2024	Q1 2023
8,869		7,011
29.4 %	29.2 %

200 - 2

8,659 7,013

28.7 %	29.2 %

Change

26.5 %

23.5 %

27,663

22,051

40,76646,270

31 December 2023

31 March 2024

Non-current assets

The increase in adjusted EBITDA margin of 26.5 % mainly results form the revenue increase (+25.8 %). The individual expense items have largely developed variably in line with the growth in revenues. Due to the higher percentage of high-margin products, the COGS quota has decreased from 9.5 % in the prior year to 8.4 %. The marketing quota of 47.3 % is at the same level as in the prior year (47.1 %).

In the first quarter of 2024, one-time costs and special effects mainly comprise expenses for the long-term compensation of the Management Board and planned

acquisitions.

Other current assets

Cash and cash equivalents

Compared to last year's balance sheet date, non- current assets have decreased by € 1,486 thousand or 2.2 % to € 66,996 thousand as of 31 March 2024. This mainly results from regular depreciation and amortization of intangible assets, property, plant and equipment (PPE) and capitalized right-of-use assets.

Cash and cash equivalents have increased by

• 5,504 thousand or 13.5 % due to the positive earn- ings position and the resulting positive net cash inflows from operating activities. The increase in oth- er current assets by € 5,612 thousand mainly stems from trade receivables which - in connection with the revenue increase - amount to € 14,306 thousand as of 31 March 2024.

PharmaSGP on the Capital Market | Economic Report | Condensed Interim Cosolidated Financial Statements	10

Equity and liabilities

in € thousand

140,929

131,29929,179

24,594

Financial Position

in € thousand		Q1 2024	Q1 2023
Net cash flows from operating				5,918
activities	6,921
Net cash flows used in investing		- 648	- 235
activities

66,951

67,085

Net cash flows used in financing		- 769		- 1,015
activities
Net increase in cash and cash
equivalents	5,504	4,668

39,75444,665

31 December 2023

31 March 2024

Current liabilities

Non-current liabilities

Equity

Since the last balance sheet date, the equity position has increased by 12.4 % to € 44,665 thousand as of 31 March 2024. This change results from the profit of the period of € 4,559 thousand and from the positive measurement of interest rate hedges of € 352 thousand, the change in value of cash flow hedges is recognized in equity.

Non-current liabilities are basically unchanged to the last balance sheet date. The main position is the syndicate financing, redeemable in semi-annual tranches. Therefore, there were almost no changes of this position as of 31 March 2024.

Current liabilities amount to € 29,179 thousand as of 31 March 2024. The increase of € 4,585 thousand or 18.6 % compared to the last balance sheet date mainly stems from higher trade payables.

Cash and cash equivalents as of
1 January	40,766	32,642
Cash and cash equivalents as
of 31 March	46,270	37,310

Compared to the prior year period, cash flows from operating activities have increased by 16.9 %. The improvement results from the increased operating result (unadjusted EBITDA +23.5 %). This improvement is altered by an increase in working capital and higher income tax prepayments.

Cash flows used in investing activities were mainly incurred for PharmaSGP's marketing authorizations and qualification of contract manufacturers.

A total of € 769 thousand was spent for financing activities in the first quarter of 2024. This amount includes a redemption of lease liabilities of € 115 thousand as well as interest payments for leases and the syndicate financing of € 1,020 thousand. PharmaSGP received in the first quarter of 2024 € 366 from interest rate hedges.