MEDPLUS HEALTH SERVICES Q2 CONCALL: 800 NET STORE ADDITIONS TARGET MAINTAINED, FY27 EBITDA GUIDANCE CUT TO ₹380–400 CR, PRIVATE-LABEL EXPANSION & 50–75 BPS COST SAVINGS EXPECTED

• MANAGEMENT MAINTAINS FY27 TARGET OF 800 NET STORE ADDITIONS, INCLUDING FRANCHISE OUTLETS, SUPPORTED BY AGGRESSIVE RETAIL EXPANSION & DEEPER MARKET PENETRATION • MANAGEMENT EXPECTS FY28 STORE ADDITIONS TO POTENTIALLY EXCEED FY27 LEVELS, ALTHOUGH NO FORMAL NUMERICAL TARGET HAS BEEN PROVIDED • MANAGEMENT REDUCED FY27 OPERATING EBITDA GUIDANCE TO ₹380–400 CR FROM THE EARLIER ₹420–440 CR, PRIMARILY DUE TO HIGHER EMPLOYEE COSTS • MANAGEMENT EXPECTS NEAR-TERM OPERATING EBITDA MARGIN OF APPROXIMATELY 4.8%, WITH POTENTIAL IMPROVEMENT TOWARD 5% AS COST EFFICIENCIES & STORE PRODUCTIVITY IMPROVE • MANAGEMENT TARGETS APPROXIMATELY 50–75 BPS OF COST REDUCTION OVER THE NEXT FOUR QUARTERS THROUGH AI-LED AUTOMATION, WAREHOUSE CONSOLIDATION & OPERATIONAL EFFICIENCIES • MANAGEMENT EXPECTS COMBINED PRIVATE-LABEL REVENUE CONTRIBUTION TO IMPROVE BY APPROXIMATELY 30–50 BPS PER QUARTER, SUPPORTED BY BETTER PRODUCT AVAILABILITY & NEW CATEGORY EXPANSION • MANAGEMENT EXPECTS MATURE-STORE SAME-STORE SALES GROWTH OF APPROXIMATELY 9–10.5%, SUPPORTED BY IMPROVED PRODUCT MIX, CUSTOMER SPENDING & STORE PRODUCTIVITY • MANAGEMENT PLANS TO CONSIDER FURTHER MAJOR DIAGNOSTICS INVESTMENTS AFTER ACTIVE SUBSCRIPTIONS REACH APPROXIMATELY 3–4 LAKH VS 2.16 LAKH CURRENTLY • MANAGEMENT HAS WITHDRAWN PLANNED MAJOR NEW WELLNESS & CONCIERGE CAPITAL EXPENDITURE, PRIORITISING CORE PHARMACY EXPANSION & PROFITABILITY IMPROVEMENT • MANAGEMENT EXPECTS WORKING CAPITAL TO NORMALISE TOWARD FY27 YEAR-END AS NEW STORE INVENTORY REQUIREMENTS & SUPPLIER SETTLEMENTS STABILISE • Q2 CONSOLIDATED REVENUE REACHED ₹2,037.1 CR, SUPPORTED BY STRONG PHARMACY SALES GROWTH, FRANCHISE EXPANSION & HIGHER PRIVATE-LABEL CONTRIBUTION • Q2 REPORTED OPERATING EBITDA STOOD AT ₹98.1 CR, WITH OPERATING EBITDA MARGIN OF 4.8% • EXCLUDING A ONE-TIME ₹7.96 CR EMPLOYEE RETENTION BONUS PROVISION REVERSAL, ADJUSTED OPERATING EBITDA WAS APPROXIMATELY ₹90.1 CR, WITH AN UNDERLYING MARGIN OF 4.4% • PHARMACY REVENUE GREW 21.3% YOY, WHILE PHARMACY OPERATING EBITDA REACHED ₹88.5 CR AT A 4.4% MARGIN • CONSOLIDATED GROSS MARGIN IMPROVED TO 25.1%, EXPANDING APPROXIMATELY 60 BPS QOQ, SUPPORTED BY PRODUCT MIX IMPROVEMENT & PRIVATE-LABEL GROWTH • TOTAL STORE NETWORK REACHED 5,642 OUTLETS, INCLUDING 849 FRANCHISE STORES, REFLECTING CONTINUED EXPANSION ACROSS PHARMACY RETAIL MARKETS • Q2 NET STORE ADDITIONS STOOD AT 166, WITH 219 NEW STORES OPENED & 53 CLOSED, TAKING H1 NET ADDITIONS TO APPROXIMATELY 312 • APPROXIMATELY 71% OF STORES ARE AT LEAST TWO YEARS OLD, WHILE 29% ARE YOUNGER STORES WITH FURTHER MATURITY & PROFITABILITY IMPROVEMENT POTENTIAL • FRANCHISE NETWORK ADDED 82 NET STORES DURING Q2, WHILE 103 COMPANY-OWNED STORES WERE CONVERTED INTO FRANCHISE OUTLETS • FRANCHISE REVENUE INCREASED APPROXIMATELY 40% QOQ TO ₹116 CR FROM ₹83 CR, REFLECTING RAPID NETWORK EXPANSION • MANAGEMENT INDICATED THAT MEDPLUS RETAINS APPROXIMATELY 10–11 PERCENTAGE POINTS OF GROSS MARGIN UNDER ITS ILLUSTRATIVE FRANCHISE ECONOMICS MODEL • MANAGEMENT EXPECTS TO PROVIDE MORE DETAILED FRANCHISE UNIT ECONOMICS FROM THE NEXT QUARTER, WHILE INITIAL FRANCHISE CLOSURES ARE EXPECTED TO STABILISE • PRIVATE-LABEL PRODUCTS CONTRIBUTED 21.4% OF TOTAL REVENUE, SPLIT EQUALLY BETWEEN PHARMA & NON-PHARMA CATEGORIES AT APPROXIMATELY 10.7% EACH • PHARMA PRIVATE-LABEL SALES GREW 5.9% QOQ, WHILE NON-PHARMA PRIVATE-LABEL SALES INCREASED 18% QOQ, SUPPORTING HIGHER BASKET SIZE & PRODUCT DIVERSIFICATION • NON-PHARMA PRIVATE-LABEL REVENUE SHARE INCREASED FROM 9.8% TO 10.7% QOQ, WHILE MANAGEMENT CONTINUES TO FOCUS ON IMPROVING PHARMA PRIVATE-LABEL PENETRATION • DIAGNOSTICS REVENUE GREW APPROXIMATELY 23.5% YOY TO ₹41.05 CR VS ₹33.25 CR LAST YEAR, SUPPORTED BY GROWING CUSTOMER SUBSCRIPTIONS • DIAGNOSTICS OPERATING EBITDA INCREASED TO ₹9.79 CR FROM ₹5.09 CR LAST YEAR, WITH EBITDA MARGIN REACHING 23.8% • ACTIVE DIAGNOSTICS SUBSCRIPTIONS REACHED APPROXIMATELY 2.16 LAKH, PROVIDING A FOUNDATION FOR FUTURE GROWTH WITHOUT IMMEDIATE LARGE-SCALE CAPITAL EXPANSION • WAGE INCREASES ACROSS KARNATAKA, TELANGANA & OTHER REGIONS HAVE ADDED APPROXIMATELY ₹7 CR PER MONTH TO EMPLOYEE EXPENSES, CREATING SIGNIFICANT PRESSURE ON FY27 PROFITABILITY • MANAGEMENT IS IMPLEMENTING AI & BACKEND AUTOMATION TO REDUCE REPETITIVE WORK, IMPROVE EMPLOYEE PRODUCTIVITY & LOWER OPERATING COSTS • WAREHOUSE CONSOLIDATION IS EXPECTED TO REDUCE TRANSPORTATION, STAFFING & LOGISTICS EXPENSES, SUPPORTING THE TARGETED 50–75 BPS COST SAVINGS • NET WORKING CAPITAL STOOD AT APPROXIMATELY 54 DAYS, WHILE WAREHOUSE INVENTORY WAS AROUND 34 DAYS & FIRST-YEAR STORE INVENTORY WAS APPROXIMATELY 86 DAYS • OPERATING CASH FLOW REMAINS AFFECTED BY NEW STORE INVESTMENTS, HIGHER INVENTORY REQUIREMENTS & SUPPLIER PAYMENT SETTLEMENTS • MANAGEMENT ACKNOWLEDGED PROMOTER SHARE PLEDGING CONCERNS BUT DID NOT PROVIDE A COMMITTED TIMELINE FOR REDUCTION • MANAGEMENT REMAINS POSITIVE ON STORE EXPANSION, FRANCHISE SCALING, PRIVATE-LABEL PENETRATION, DIAGNOSTICS PROFITABILITY & COST OPTIMISATION, BUT WAGE INFLATION, LOWER UNDERLYING EBITDA MARGINS, NEW STORE MATURITY, WORKING CAPITAL PRESSURE & FRANCHISE EXECUTION REMAIN KEY RISKS

LOOKS HEALTH SERVICES LIMITED

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