2. Highlights | Corporate
2
The only Brazil’s mixed market player that features exposure and expansion capacity
in the segments of Retail, Hospital & Specialties and Distribution;
Strategic partnership with AmerisourceBergen, the world’s largest player in the
pharmaceutical specialties, resulting in the creation of the company Profarma
Specialty;
The Company carried out four acquisitions between 2012-2015, including its entry
into the Retail pharmaceutical segment, and the attainment of a market position as
2nd largest player within this segment in the state of Rio de Janeiro;
Proven capacity to integrate acquisitions, combining all group companies in the SAP
plataform, BI Cognos and Hyperion.
3. Highlights | 1Q16
3
CONSOLIDATED PRO-FORMA
(considering 100% of all companies)
• Gross revenue climbed by 16.9%;;
• Consolidated EBITDA increased by 31.0% to R$ 25.8 million, with
EBITDA margin of 2.2%;
• The consolidated cash cycle was shortened by 1.1 days to 32.9 days;
and;
• The annual price increase, on March 31, came to 11.5% on average
– the highest in the last 14 years – whereas the 2015 increase stood at
5.5%.
RETAIL
• Total sales rose by 12.4%;
• EBITDA increased by 81.7% to R$ 3.5 million, with EBITDA
margin of 1.8%; and
• Operating expenses fell by 0.6 p.p., from 27.2% to 26.5%;
• Average monthly sales per mature store grew by 9.6%.
SPECIALTIES
• The Division’s sales rose by 38.8%;
• EBITDA rose by 82.9% and amounted to R$ 4.4 million, with
EBITDA margin of 2.1%;
• Operating expenses dropped by 1.1 p.p., from 9.8% to 8.3%; and
• Sales to the private sector skyrocketed by 52.4%.
PHARMACEUTICAL DISTRIBUTION
• Sales rose by 17.0%;
• EBITDA rose by 16.5% and amounted to R$ 17.9 million, with
EBITDA margin of 2.0%;
• Operating expenses dropped by 1.1 p.p., from 7.9% to 6.8%; and
• Sales of health & beauty products climbed by 38.8%.
4. Specialties(*) Retail(**) Consolidated (*)(**)Pharmaceutical
Distribution
Highlights | Breakdown by Division – 1Q16
4
Gross Revenues
Gross Profit
SGA
Ebitda
(*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife in 1Q15.
(**) Pro-forma figures: 100% of revenues from Specialties (1Q15 and 1Q16).
1Q15 1Q16
166.3
18.2
15.0
2.4
230.9
24.1
18.3
4.4
1Q15 1Q16
174.4
51.5
47.4
1.9
195.9
58.0
52.1
3.5
1Q15 1Q16
1,144.8
147.2
121.8
19.7
1,338.2
157.6
130.4
25.8
1Q15 1Q16
873.0
77.5
59.5
15.4
1,021.0
75.4
59.9
17.9
6. Specialties
Consolidated Performance
6
Gross Revenues Evolution
(R$ million)
Pharmaceutical Distribution
Sales rose by 17.0% in comparison
with 1Q16.
The Division’s sales rose by 38.8%
year-over-year.
Total sales rose by 12.4% year-over-
year.
Retail
Accounting Consolidated Gross Revenues
Pro-forma Consolidated Gross Revenues: 100% of revenues from
Tamoio (1Q15 and 4Q15) and Specialties
943.5
201.3
1,144.8
1,001.1
277.9
1,279.0
1,126.0
212.2
1,338.2
1Q15 4Q15 1Q16
4.6%
16.9%
7. Performance by Division
Pharmaceutical Distribution Specialties(**) Retail
7
Gross Revenues Evolution
(R$ million)
Accounting Gross Revenues
Pro-forma additional Gross
Revenues
(*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife
(**) Pro-forma figures: 100% of revenues from Specialties
1Q15 4Q15 1Q16
873.0
955.1
6.9%
17.0%
1Q15 4Q15 1Q16
166.3
224.1
230.9
3.0%
38.8%
1Q15(*) 4Q15(*) 1Q16
72.0
12.4%
102.3
116.3
81.8
174.4
195.9
-1.1%
1,021.0 198.1
8. Consolidated Performance
8
Pro-forma (*)
Gross Profit
(R$ million and % Net Revenues)
(*) Pro-forma figures: 100% of revenues from Tamoio (1Q15 and 4Q15) and Specialties
1Q161Q15 4Q15 1Q161Q15 4Q15
12.1%
99.5
12.2%
105.7
13.6%
133.4
14.4%14.6%
147.2
161.5
13.5%
157.6
9. Consolidated Performance
9
Operating Expenses – SGA
(R$ $ million and % Net Revenues)
Pro-forma (*)
(*) Pro-forma figures: 100% of revenues from Tamoio (1Q15 and 4Q15) and Specialties
12.1%
121.8
12.3%
138.3
11.1%
130.4
82.9
93.4
112.1
10.1%
10.8 %
11.5%
1Q161Q15 4Q15 1Q161Q15 4Q15
10. Consolidated Performance
10
Adjusted EBITDA and Adjusted EBITDA Margin
(R$ million and % Net Revenues)
Pro-forma (*)
(*) Pro-forma figures: 100% of revenues from Tamoio (1Q15 and 4Q15) and Specialties
1.6%
13.5
2.1%
18.0
2.1%
20.7
14.9%
53.8%
2.0%
19.7
2.4%
27.1
2.2%
25.8
-4.8%
31.0%
1Q161Q15 4Q15 1Q161Q15 4Q15
11. Consolidated Performance
11
Net Profit
(R$ million and % Net Revenues)
Pro-forma (*)
1Q15 4Q151Q164Q151Q15 1Q16
(7.3)
(6.0)
-0.6% -0.6%
-0.9%
(6.8)
(10.2)
(7.6)
-0.9% -08% -0.9%
(9.3)
(3.0)
(6.2)(4.4)
-0.4% -0.5% -0.6%
(1.4)
(3.9)
(6.9)
-0.1% -0.3%
-0.6%
Net Profit
Adjusted Net Profit
Pro-Forma Net Profit
Pro-Forma Adjusted Net Profit
(*) Pro-forma figures: 100% of revenues from Tamoio (1Q15 and 4Q15) and Specialties
12. Consolidated Performance
Cash Flow
(R$ million)
Cash Cycle
(Days)
12
Consolidated
Pro-forma
Cash Cycle *
Accounts Receivable¹
Inventories²
Accounts Payable³
Consolidated Pharma PFS. Retail
1Q16
(40.8)
15.8
(56.6)
(40.9)
32.0
(49.7)
1Q15
32.9
9.3
23.6
(7.2)
56.1
81.8
1Q164Q1541Q154
1Q161Q161Q16
44.5
70.2
81.9
32.834.0
45.5
62.7
74.2
43.8
70.7
81.4
33.2
19.3
80.5
62.4
37.441.8
58.8
44.3
61.4
27.9
50.9
60.4
83.4
Cash Flow Generated /
Used) in Operating Activities
Internal Cash Generation
Operating Assets Variation
Cash Flow (Used)
in Investing Activities
Cash Flow Generated /
(Used) by Financing Activities
Net Increase /
(Decrease) in Cash
* Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
(4) The account was based on the average gross sale and CGS, excluding Tamio’s
chain (included in Retail’s Division).
15. Pharmaceutical Distribution
Operating expenses
dropped by 1.1 p.p., from
7.9% to 6.8%.
EBITDA rose by 16.5% and
amounted to R$ 17.9 million,
with EBITDA margin of 2.0%;
Sales rose by 17.0%;
15
Financial Data
(R$ million and % Net Revenues)
EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
1Q15 1Q161Q15 1Q161Q15 1Q161Q15 1Q16
2.02.0
6.8
7.9
8.6
10.3
1,021.0
873.0
17. 17
Specialties
The Division’s sales rose by
38.8%;
EBITDA rose by 82.9% and
amounted to R$ 4.4 million,
with EBITDA margin of 2.1%;
Operating expenses
dropped by 1.1 p.p., from
9.8% to 8.3%; and
Financial Data
(R$ million and % Net Revenues)
EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
1Q15 1Q161Q15 1Q161Q15 1Q161Q15 1Q16
2.1
1.6
8.7
9.8
11.4
11.8
230.9
166.3
19. 19
Retail
Total sales rose by 12.4%;
Operating expenses fell by
0.6 p.p., from 27.2% to
26.5%;
EBITDA increased by 81.7%
to R$ 3.5 million, with
EBITDA margin of 1.8%;
Financial Data
(R$ million and % Net Revenues)
EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
1Q15 1Q161Q15 1Q161Q15 1Q161Q15 1Q16
1.8
1.1
26.6
27.2
29.629.5
195.9
174.4
(*) !Q15 Pro-forma figures: 100% of revenues from Tamoio