Presentation Transcript

1. InstitutionalPresentation Update| March 2011
2. Disclaimer This release contains forward-looking statements relating to the prospects of the business and estimates of operating and financial results, as well as the Company’s growth prospects. These are merely projections and as such are based exclusively on the expectations of the Company’s management concerning the future of the business and its continued access to capital to fund its business plan. These forward-looking statements depend substantially on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors, as well as the risks described in the Company’s filed disclosure documents, and therefore are subject to change without prior notice.
3. Agenda: CompanyUpdate MantecorpAcquisition
4. Agenda: CompanyUpdate - Highlights
5. 2010 Financial resultssummary Strongprofitablegrowth Company total growth SBS organicgrowth Gross margin Ebitda Net Profit * Adjusted for thenoncasheffectofthe R$12.8 mm increaseofthecostofgoodssold in acquistions' inventories 5
6. Mainactivitiesimplemented in 2010 Manyimpactfulinitiativesperformed StrategicAcquisitions OrganicGrowth Over 400 itemslaunched Severalsuccess cases in relaunchingdormantbrands Manynewinnovativeproducts Improvementson POS management anddistribution 9 announceddeals (R$4 bi) FocusonPharma, BeautyandPersonalCare Strategicandoperationalfit Acquisitionentrymultiples in linewithhistoricallevels OperationalPlataform Benchmark integrationof systems (100% onthe SAP plataformwithin 180 days) Costreduction for rawmaterialswitheconomiesofscale Productivitygains in theproductionplants Plantconsolidation Improvements in logistics 6
7. Competitiveposition Stronglystrengthened its competitiveposition Becomesthelargestandmost complete Braziliancompany for ConsumerHealthcareproducts BeautyPersonalCare Pharma # 1 National, # 2 Total Largest business segmentscoverage Superior brandportfolio Leadershippositions in manysegments: # 1 OTC, # 1 OTX, # 1 Similars, # 2 National RX, # 2 Dermocosmetics, # 1 Condoms, # 1 Sweeteners # 1 National in self-service, # 2 Total Largest business segmentscoverage Best brandportfolio Leadershippositions in manysegments: # 1 Moisturizes, # 1 Nailpolish, # 1 Men'sCare, # 1 Diapers, # 1 BodyOil 7
8. Quarterlyresultsevolution In 4Q10, theCompanyreachedhistoricalpeakoperationalresults EBITDA (R$ mm) Net Revenues (R$ mm) 8
9. Maindeals in 2010 secondsemester Hypermarcas ended 2010 performing a series ofextraordinarystrategicacquisitions 4Q10 Deal Highlight Benefits Traditional Baby Carebrandcomplementary to PomPomDiapers Strenghtened Baby CarereachandPomPom as anumbrellabrand Oral Care business complementary to Sanifill’s Strenghtenedof Oral Carereach Innovative set ofBrandscomplementary to prescriptions SBU StrenghtenedDoctor’sprescriptionreach Cremer-Disney brandcomplementary to Diaper’s Hypebecomesthelargestandmost complete player ofdisposablediapers Extraordinary set ofbrands in OTC, OTX, RX andDermocosmetics Hyper becomesthelargestandmost complete domesticpharmaceutical player 9
10. 4Q10 Macroeconomicenvironment Reversion ofcyclicalmacroeconomicaltrends Interest Rate - Selic Main sector impacts Reductionofpurchasingpower Increaseofdelinquencyofendconsumers Increaseofworking capital cost Reductionofinvestmentlevels Inflation - IPCA (%) Likelyimpacts Reductionof short termdemand Reductionofclientsinventoriesandcredit 2011 interestincreasecycle Governmentexpensesreduction 10
11. Main perspectives for 2011 Manyupsidesahead Extensivepipelineofnewproducts Fastgrowthof Neo Química Genéricos Mantecorpintegration Plantconsolidation in Anápolis Pharma Newrelaunchesofdormantbrands Newproductlauncheswithinnovativeappeal Improvementon POS management Consolidationofdiapers, oral care, amongothers Personalcare 11
12. Agenda: CompanyUpdate - Results
13. Net Revenueper BU 4Q10 2010 Strong SBS and Inorganicgrowth 61% 34% 17% SBS organicgrowthof 12% in 4Q10 and 17% in 2010; ConsideringonlyPharmaandBeauty & PersonalCare, the SBS was 26% in 2010 and 21% in 4Q10; Yearhighlight for Risqué, Monange, Bozzano, Farmasa, Benegrip, Lisador, Rinosoro, Tamarine, Epocler, Biocolor, amongothers. 12% 13
14. Gross Marginper BU 4Q10 2010 Improve- ments Gross Margin (%) Improvement Improve- ments 5.3pp 5.6pp -3.6pp -4.7pp SBS Gross Marginsincreased 5.6ppdue to net priceincreasesandcostreductions. Evenwiththeacquisitiondillutingeffect, the Gross Marginraised 0.9pp in 2010. MIX MIX 14
15. Results INCOME STATEMENT (R$ million) 4Q09 % NR 4Q10 % NR 2009 % NR 2010 % NR Net Revenue 702.8 100.0% 942.6 100.0% 1,966.6 100.0% 3,159.7 100.0% Gross Profit 374.2 53.2% 518.1 55.0% 1,107.3 56.3% 1,806.4 57.2% Sales Expenses (80.0) -11.4% (146.5) -15.5% (261.3) -13.3% (470.8) -14.9% Marketing (141.4) -20.1% (169.6) -18.0% (355.9) -18.1% (598.2) -18.9% General and Administrative Expenses (52.4) -7.5% (55.5) -5.9% (111.3) -5.7% (196.0) -6.2% Other Operational Net Expenses 16.5 2.3% 45.0 4.8% 53.5 2.7% 70.6 2.2% EBIT 116.8 16.6% 191.5 20.3% 432.2 22.0% 612.0 19.4% Net Financial Expenses (15.1) -2.1% (53.1) -5.6% 15.5 0.8% (183.2) -5.8% Net Income (loss) 83.1 11.8% 87.9 9.3% 292.1 14.9% 261.9 8.3% EBITDA 154.6 22.0% 223.6 23.7% 504.5 25.7% 734.5 23.2% Cash Earnings 133.5 19.0% 168.7 17.9% 435.1 22.1% 557.9 17.7% Cash Earnings per Share 0.30 0.31 1.04 1.06 Relevant EBITDA growthof 46% in 2010 and Record CashEarnings EBITDA reduction is due to mismatchbetweenacquisitionspaceandsynergiesseizing 15
16. Leverage (R$million) (1) Notes payableandCashconsidertheacquisitionsofMantecorp, MabesaandSanofi-MedleyRxbrands in the total amountof R$992.2 million. 16
17. Agenda: MantecorpAcquisition
18. Mantecorp Overview Traditionalfarmaceuticalcompanywith strongbrandsandmarketleadership Former JV with Schering-Plough HIGHLIGHTS MAIN FIGURES 18
19. Complementarity Broadcomplementaritybetweenthecompanies PERFECT MATCH OTC:Over-the-counterproducts (exceptGenericsandPersonalCareandFoodproducts) RX: Allethical /prescriptiondrugs(exceptGenerics) Similars: Productsclassified as bonnified Generics:Allgenericsdrugs in IMS base SkinCare:Alldrugs in theTherapeuticalClassesTodos D and J01A and J02A (exceptGenerics) Source: IMS Health, PMB – Nov’10 – R$ Source: Close-Up International, Targeting– Nov’10 19
20. New business opportunities NumberofMolecules (withoutSkinCare) Farmasa/DM Neo Opportunityoflaunchingseveralproducts for theBrandsMantecorp andFarmasaleveragingandstrengtheningthe Medical Visits 49 145 36 7 0 7 21 Mantecorp 20
21. CUSTOMER / CLIENT REACH Competitiveadvantage in pharma Strong Mass Media Established Medical Call Enhanced Points of Sale National and Regional distribution MARKET REACH OTC (over the counter) Superior competitiveposition Prescription (OTX / RX) Generics/Similars 21
22. Economicrationale * - Estimated for 1H2012 Annualized ** - Estimated for 1H2013 Annualized 22