Summary of the Q1 2019 results

Conference for investors, Warsaw, 14 May 2019

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

Market and legal environment

51%share of independent

pharmacies

in the market in Q1

2019

• Further stabilization of the situation of independent pharmacies; market share at 51.0% in Q1 2019 vs. 50,1% in Q4 2018

• Market values of independent pharmacies in Q1 2019 at the level of 4.3 billion PLN - similar to Q1 2018

• The obligation to report from 1 April 2019 to the Integrated System for the Monitoring of Trade in Medicinal Products - implemented

as of 1 April 2019; the NEUCA group is the first to report to the ISMTMP from mid-July 2018 (reporting products from the so-called

deficit list)

The impact of the Pharmacy for the Pharmacist regulations

Pharmaceutical law amendment

• Introduction of mechanisms limiting illegal export of medicines abroad

• Preventing the plans to introduce mail order sales of prescription drugs for the disabled

Act on the profession of pharmacist

• Increasing the role of a pharmacist in the health care system

• Increased chances of implementing pharmaceutical care

Anti-counterfeit directive

• Implementation of the directive from February 9, 2019, creation of a nationwide database verifying the authenticity of medicines

• Estimates of the European Commission indicate that the value of the Polish market for counterfeit medicines is 62 million EUR

3

ISMTMP

Stable and growing pharmacy wholesale marketValue of the pharmacy wholesale market in quarters and annual dynamics (blue colour %)

in Q1 2014 - Q1 2019 (billion PLN) *

*IQVIA data

7,12

6,38 6,446,57

7,49

6,78 6,73

6,97

7,81

6,876,78

7,23

8,38

7,067,21

7,52

8,34

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2019

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

2015 2016 2017 2018

4,1%

• The second best quarter in

the history of measurements

of the pharmacy wholesale

market

• Lower incidence in the flu

season

• Expected market dynamics in

the whole year at the level of

3-4%

4

- 0,5%

Value share of independent pharmacies in the market (%) vs. number of pharmacies

54,2

53,152,7

50,1

51,451,7 51,7

50,1

51

1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019

• Continuation of the trend of

stabilizing the market position

of independent pharmacies

1486814912

14975

14847

14723

14571

14480

14331

14180

Share of independent pharmacies

(%)

Total number of pharmacies

Number of independent

pharmacies

1042610328

1021010111

99389813

97099562

9404

5

Market position of NEUCA

Quarterly shares of NEUCA broken down into market segments in the period of Q1 2016 - Q1 2019 (%)

28,327,7

28,0

29,429,1

28,828,2

29,3 29,4

27,6

28,728,3

28,9

26,2

24,0 24,1

26,6

25,6 25,6

24,3

26,4 26,5

24,0

25,6 25,426,0

29,8 30,330,8

31,732,0

31,7 31,432,1 32,1

31,031,5

31,231,7

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

In total Network pharmacies Independent pharmacies

2016 20182017

6

*IQVIA data

2019

IMPLEMENTATION OF THE PHARMACY STRATEGY

We provide a better future

to all independent Pharmacies

in Poland.

Improving customer satisfaction

4,35

4,40

4,18

4,23

4,13

4,24

4,25

4,33

Range of products

Continuity ofsupplies

Average Farmacol Pelion NEUCA

* IQVIA data, Monitor Apteczny Q1 2019

8

4,39

4,25

4,18

4,12

4,21

4,05

4,31

4,17

Commercialconditions

Promotional offer

Average Farmacol Pelion NEUCA

The NEUCA Group is a customer satisfaction leader in each of the categories analysed

Improving customer satisfaction

4,60

4,44

4,37

4,23

4,30

4,15

4,48

4,34

Transportationservices

Logistic services

Average Farmacol Pelion NEUCA

* IQVIA data, Monitor Apteczny Q1 2019

9

4,54

4,48

4,34

4,22

4,25

4,04

4,43

4,31

Telemarketingservices

Complaintsservices

Average Farmacol Pelion NEUCA

The NEUCA Group is a customer satisfaction leader in each of the categories analysed

A complete portfolio of programs strengthens and stabilizes the market position

CU

ST

OM

ER

EN

GA

GE

ME

NT

AREAS OF CUSTOMER

SUPPORT

# 3652

# 743

# 389

# 859

# number of pharmacies in the program: as on 31.03.2019

* Pharmacies participating in the most advanced programs

• As many as 60% of pharmacies in the country participate in programs and market activities, including 9% in Partner +

10

777

Q1 2018 Q1 2019

859

+82

+11%

NUMBER OF PHARMACIES IN MARKET PROGRAMS AND ACTIVITIESGROWTH OF PHARMACIES IN THE

PARTNER+ PROGRAM

5643pharmacies

in programs

and activities

at the end of Q1 2019

# 1248 (+36% yoy)

1457 pharmacies*

situation on

6/05/2019

The participation of pharmacies in market programs affects the results of NEUCA

Economic indicators grow along with the Customer engagement in cooperation

11

83%

94%

95%Partner+

IPRA

85%Zysk+

RPM

72%Outside programs Outside programs

4,2%

RPM

3,1%IPRA

Partner+

2,4%Zysk+

1,8%

2.0%

97%Partner+

30%

IPRA 84%

RPM

57%Zysk+

9%Outside programs

RETENTION Q1 2019 SYNOPTIS SHARE Q1 2019 FIRST SUPPLIER Q1 2019

NEUCA with the best rate of customer loyalty in the market

*Customer loyalty rate; "How likely is it that you would recommend cooperation with wholesaler X to a different pharmacist"

3737

33

3840

3841

-15

-5

5

15

25

35

45

55

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Net Promoter Score* of pharmaceutical distributors (pt)

NEUCA Pelion Farmacol Small and medium-sized wholesalers

12

FINANCIAL RESULTS

Sales revenues (billion PLN)

• Revenue growth correlated with a decline

in the value of the market in Q1

• Stable market position of the Company

14

2,16 2,14

Q1 2018 Q1 2019

-1%

Operational profit

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

• Increase of gross margin on sales in Q1 2019 by 0.28 p.p. up to 9.72%

15

42,7

48,0

1Q 2018 1Q 2019

13%41,3

46,9

1Q 2018 1Q 2019

14%

Business efficiency improvement

Sales and management costs (million PLN)

• Decrease in sales and management costs by over

7 million PLN in Q1 2019 as an effect of activities

optimizing costs and increasing business efficiency

implemented in 2018

• Business efficiency increase executed with

simultaneous investments in new business areas

16

161,7

154,5

Q1 2018 Q1 2019

- 4%

Net profit

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

• The impact of real estate sales decreasing the net result by 0.9 million PLN in Q1 2019 and 1.4 million PLN in Q1 2018

• The decrease of financial costs by 30% to 3.15 million PLN as a result of further optimization of the debt structure

17

30,9

36,3

Q1 2018 Q1 2019

18% 32,3

37,2

Q1 2018 Q1 2019

15%

Cash flow (PLN million)

18

• Net debt PLN 380.9 million, net debt/EBITDA at 2.2

• Increase in debt due to changes in accounting standards - IFRS 16 treating lease agreements as leasing;

• Additional leasing liability due to the implementation of IFRS 16 at the level of nearly 127 million PLN; annual increase in depreciation by approx. 15 million PLN

Results in the own products segment

Value of sales to pharmacies (million PLN) and yoy dynamics Net profit (million PLN) and yoy dynamics

• Investments in portfolio medicalisation - increase in the number of Genoptim products to 100 SKUs in Q1 2019 from 86 in Q1 2018

• 65 of products on the refund lists in Q1 2019

19

37,6 38,1

Q1 2018 Q1 2019

1% 7,9 8,3

Q1 2018 Q1 2019

5%

PROFIT REDISTRIBUTION

63**

17,3 19,122,1

26,829,6

33,1

3

26,6

42,0

29,0

65,0

37,5*4,33

5,005,75 6,40

7,40

2014 2015 2016 2017 2018 2019

Value of the dividend (mln PLN)

buy-back (mln PLN)

value of the dividend per share (PLN)

2.60

• The value of the program implemented in 01-04.2019

**The value of the program adopted for the years 2019-2020

14 years of regular annual dividend payment

Distribution of profit between shareholders: dividend and buy back

• The purchase of 127.5 thousand shares for redemption in April 2019, total 136.9 thousand shares purchased in 2019

• Adoption by the General Meeting of Shareholders of the resolution on purchase of 200 K shares by the end of 2020 at the maximum price of

315,00 PLN (26 April 2019)

• 15 May 2019 designated as the “right to dividend” day

21

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 the scale of operations and results of patient businesses in Q1 2019

Patient business segment revenues

38.7 mln PLN 54%

18% 227% 239%

*The sales results of Ortopedio plus Apteline.pl are included in the results of the pharmacy wholesale segment

• Dynamic increase in revenues in the area of clinical trials as a result of entering the project implementation phase in 2018 by SMO PRATIA (increase

in contract value by 50% y/y without acquisitions) and inclusion of the Małopolska Medical Center purchased in 2018 into the structure of Clinical

Research Centers at Pratia SA

• Implementation of the plan to increase the scale of operation of “Świat Zdrowia” outpatient clinics by means of takeovers in selected regions

4,9 mln PLN

Outpatient clinics revenues

24.5 mln PLN

Clinical testsand telemedicine

revenues

14.2 million PLN

E-commercerevenues*

4.2 mln PLN

Patient business segment operational profit

5.1 mln PLN

2323

Clinical trials - unique values for manufacturers and the clinical trial market

24

CRO area (Contact Research Organization) - responsible

for managing and monitoring clinical trial projects for

pharmaceutical companies (sponsors)

SMO area (Site Management Organization) - a network of

clinical trial centers responsible for conducting a study on

patients for pharmaceutical companies (sponsors)

Main challenges:• Work with local sponsors (including NEUCA partners)

and scientific centres in Poland

• Acquisition of international contracts from biotechnology companies

(including through the office in London)

Main challenges:• Increased efficiency of patient recruitment to centers

• Acquiring contracts (including oncology development)

International DNA of clinical trials

Clinical trials

CRO (Clinmed Pharma and BioScience)

• Beginning of the first meetings with clients related to international sales by the Office in London

• Synergy effect resulting from sharing structures between both companies (more effective human resources and

competencies management) - impact on margin construction

• Implementation of subsequent projects managed by CRO and carried out in the Pratia SA centres

SMO (Pratia)

• Continuation of improvement in the quality of contracting clinical trials in the SMO model - increase in the number

of contracted patients by 87%

• Improving the effectiveness of patient recruitment via online and offline channels - increasingly better method of

building relationships with the patient and the doctor translated into an increase in the number of patients included

in the conducted projects by 30%

• The merger of Małopolskie Centrum Medyczne and Pratia Kraków centres into one of the largest clinical research

centres in Poland, divided into the areas of oncological and specialist research. Increasing the value of contracts

and the number of patients in the acquired center

87%

y/y

increase of

contracted

patients

2019

30%

y/y increase in

number of patients included

into examinations

in 2019

25 25

Organization focused on "Patient experience"

69

medical

clinics

150,000patients

POZ

Leader in the implementation of effective models of care - coordination, prevention and education:

• POZ PLUS pilot program carried out jointly with the NFZ, MZ, BŚ and UE

• increased access to a wider range of services

• acquiring patients

Patient's satisfaction - "service and health effect":

• one standard of services implemented in all outpatient clinics

• personnel trained in the field of patient service

• constant process of measuring patient satisfaction

• NPS (indicator of the clinics’ recommendability) at a high level of 40

Business development:

• increasing the range and scope of e-services (patient account)

• senior care (two centres, łódzkie and mazowieckie voivodships) implementation from EU subsidies

• preventive and rehabilitation programs, including in cooperation with local authorities for people who are excluded professionally or

socially

26 26

Development of a new telemedical service - teleconsultation

20000verified

Diabtis patient

account

Acquiring Customes and creating competencies in the scope of teleconsultation:

• finalization of negotiations of contracts with insurers regarding remote patient service

• construction of a full-profile medical teleconsultation center: internists, pediatricians, specialists

• including in the teleconsultation offer other solutions of the NEUCA Group:

• e-prescriptions and drug reservations, e-referrals and e-applications

• long-term remote cardiac and diabetological care

Further development of services for diabetic patients:

• improving the e-prescriptions ordering process and their automatic extension by Diabdis patients

• full integration and automation of e-prescription filling process with an order basket integrated with

Apteline.pl

• improvement of processes related to the Diabdis patient service and education automation

Development of new services in the field of home care by Telemedycyna Polska:

• winning new projects financed by City and Commune Offices in the area of senior care

• preparation for the implementation of the first projects in the field of telecare

27 27

Dynamic increase in the range of medicine ordering platform

1250 pharmacies

cooperating

with apteline.pl

Business growth

• 4.8 million unique users in Q1 2019, a 5-fold increase vs. Q1 2018,

• A significant increase in the number of orders on Apteline.pl to nearly 40

thousand in Q4 2019 vs. 4Q 2018 (in the entire period Q1-3 2018 - 21.6

thousand)

• 3rd place among the platforms for ordering and reserving medicines on the

Polish market*

Development

• Further construction of the business scale, 3 million visits in March (vs. 400 K

in March 2018) and work on the conversion of traffic into orders

• Increasing the presence in the largest cities, currently 1250 cooperating

pharmacies, 300 new pharmacies in the process of obtaining for cooperation

• Improved website effectiveness (faster page loading, improved search engine

quality, new product recommendation mechanism)

* according to the independent portal Similarweb

28 28

A unique online solution for ordering equipment refunds

Development of the offer and the scale of business

• 50% increase in the number of users in Q1 2018 vs. Q1 2019

• Launch of the first telemedical platform in Poland, enabling the patient

to obtain an order for reh-ort equipment refund without leaving home

• Development of the assortment among others by creating an own

brand under the name "Wheelie" in the category of wheelchairs

Distribution

• To the patient's home

• 665 pharmacies with reh-ort equipment

• 200 pharmacies with NHF (NFZ) refund, the largest number of outlets

with a refund in the reh-ort area in Poland

29 29

FUTURE PERSPECTIVES

THANK YOU