Market’s Current Situation

2. Market’s Current Situation

3. Country Population(1) GDP per capita in U$S Argentina 40,900,000 Chile 17,399,000 13,969.5 0 Mexico 109,713,000 10,802.80 Venezuela 29,767,000 10,408.70 GDP Evolution by Country • Latin America: GDP Projection 2007-2001 (Annual average variation rate) Key Information by Country 10,639.90 Brazil 194,933,000 12,916.90 Colombia 46,052,000 6,980.40 Peru 30,009,000 5,613.50 Source: Cepal

4. Pharmacies Regional Ranking(Figures in millions of dollars) Source: ILACAD World Retail/ * Estimated sales as they operated as two independent companies.

5. Participation of the Pharmacy Modern Channel v. Traditional Channel (%) Note: Modern Channel: Includes pharmacy chains and pharmacies inside supermarkets Traditional Channel: Includes traditional neighborhood pharmacies Sources: Estimations by ILACAD World Retail, chain and market data and information

6. Modern Channel: Comparison between Latin American countries Mexico:8,457 mill 1,059 +2.00% Venezuela: 2,354 mill. 21 -18.00% Colombia:931 mill 200+7.49% Peru:663 mill. 108+5.5% Brazil:11,001 mill. 453 +20.4% Chile:1,861 mill. 150+27.66% Argentina:5,575 mill. 100 +29.97% Pharmacy Modern Channel Total Sales (in millions of U$S)Store Openings (2010/2011) in the Modern ChannelTurnover Evolution in Local Currency Source: ILACAD World Retail

7. Major Chains by Country Mexico Venezuela Colombia Brazil Chile Peru Argentina Source: ILACAD World Retail

8. Top 3 Concentration Level by Country Venezuela FarmatodoFarmahorroSaas Mexico GuadalajaraSimilaresBenavides 25.2% 41.4% Colombia La RebajaOlímpicaColsubsidio 82% Brazil Raia DrogasilPacheco – Sao PauloPague Menos 58.4% Peru Inkafarma Fasa Arcángel 85% Chile Cruz VerdeAhumadaSalcobrand Argentina FarmacityVantageAhorro 96% 11.2% Source: ILACAD World Retail 2011

9. Comparison between Latin American countries • The pharmaceutical market in Latin America continued to develop during the past years, as the modern channel widened its market share in all of region’s countries. • Keeping the trend that started years ago, the client that visits the pharmaceutical channel today does so not only to acquire medication –both over-the-counter and prescriptions- but also hopes to have access to groceries and daily-needed products. The retailers focus on offering an auto-service format in order to meet the consumption needs of today’s clients. • Even though Mexico has become the second most important market in Latin America as far as sales –after Brazil, which holds the first place- it fell among the bottom three spots as turnover-per-store concerns, despite it is the country with the largest store network in the region’s modern channel. • It is important to mention the growth of the pharmacies network in the Peruvian modern channel, that –since 2009- has added 480 new stores. Source: ILACAD World Retail NOTE: All figures are shown in dollars

10. Venezuela Peru 2,354 663 Argentina 5,575 Mexico 8,457 Brazil 11,001 Colombia 931 Chile 1,861 • Latin America’s Pharmacy Channel in 2011 • Latin America is –without a doubt- one of the most promising markets in the pharmaceutical industry, along with China, India and Russia –among others-, known as “pharmaceutically emergent”, with means they are developing and registering a larger GDP growth than the major and most developed countries. • During the past years, the region experienced an improvement in the emerging economic classes' purchasing power, which positively impacted the industries, including the medicinal sector. Brazil became the leading market in the region, representing 42.5% of Latin America’s total turnover, which –in 2011- totaled around 65 billion dollars. The second and third most important markets in the regions were, once again, Mexico and Argentina –representing 20% and 18% of the region’s total, respectively-. • During 2011, the region’s leader –Brazil- experienced significant changed within the chains’ ranking in the country since the fusion of the second and fifth companies –Drogasil and Raia- and the third and fourth ones –Sao Paulo and Pacheco-, which now not only holds the second spot in the country but also in Latin America’s ranking. Modern Channel’s Sales by Country(in millions of dollars) Source: ILACAD World Retail

11. Latin America’s Pharmacy Channel in 2011 • Another important event is the increased participation and presence of the state in the country, that came along with the launching of Farmapatria, the pharmacy chain owned by the Venezuelan government, and the growth of the Populares pharmacies in Brazil, among others. Net Openings by Country in 2011 • The pharmacy chains that operated inside supermarket and hypermarkets experienced mixed results in the region. It was the case of Argentina, where Carrefour abandoned its pharmaceutical operations, and Colombia, where the French retailer chose to change their operator from Colsubsidio to Farmasanitas. On the other hand, in Chile, supermarket chain Jumbo launched their own pharmacies last year. • For 2012, the industry expects an increase of over the two-digit figure for the pharmaceutical market in Latin America. Source: ILACAD World Retail

12. Current Situation by Country

13. 2010 2011 Variation Annual sales in local currency AR$ 63,011 M AR$ 75,224 M 19.38% Pharmacy Channel Annual sales in dollars U$S 15,871 M U$S 17,494 M 10.22% 13,500 (1,500 chains, 10,500 ind, 700 health insurance , Total number of stores Companies, associations etc.) AR$ 18,444 M AR$ 23,972 M 29.97% U$S 4,646 M U$S 5,575 M 20.00% Modern Channel 1,400 1,500 100 Market share 30% 32% Turnover in mill of Turnover in mill of Pos. Chain Share Number of stores AR$ U$S 1 Farmacity 2,151.0 500.0 9.0% 174 2 Vantage 374.0 87.0 1.6% 126 4 Ahorro 139.5 32.5 0.6% 53 4 Phârmakus * 111.5 25.9 0.5% 30 5 Zona Vital* 59.5 13.8 0.2% 16 6 TKL* 44.6 10.3 0.2% 12 Others 21,091.9 4,905.5 88.0% 1,147 Total 23,972.0 5,575.0 100% 1,500 Argentina Retail Market Data Annual sales in local currency Annual sales in dollars Sources: ILACAD, Argentina’s Pharmacy Chamber, IMS Health, retailer and market information. It represents the chains’total turnover and only includes those retailers that operate more than eight stores. 8 puntos de venta. Total number of stores Chain Ranking * Turnover estimated as far as number of stores and sales per store.

14. Pharmacy Channel in Argentina • Argentina’s pharmacy market has grown steadily since 2009, registering a total market increase of 29.97% during last year and reaching sales for Ar$ 23,979 million. During the period, the drugstore chain Farmacity remained as the modern channel’s leader in the country and was the only retailer that opened new stores. • The industry estimates that, today, there are over 13,500 pharmacies in Argentina –out of which the large chains operate over 10% and, as far as sales, represent more than 30% of the total-. • The pharmacy modern channel continued to operate under two basic models: under independent companies, such as Farmacity –owned by investment firm Pegasus- and other chains that operate alongside laboratories, such as Vantage with Sidus. These chains operate both corporate stores and franchises. • The pharmaceutical market concentrates in Capital Federal and Buenos Aires; however, during the last years, the chains have expanded to other provinces in the country, like Santa Fe, Cordoba, San Juan and Mendoza. • Because of the strict regulations that the government has applied on the pharmaceutical industry, the leading supermarket chain in the country, Carrefour, discontinued its pharmaceutical operations –five in-store centers located in hypermarkets in Capital Federal- and sold them to Vantage, the second most important pharmacy chain in Argentina. • During 2011, pharmacies faced a series of problems which included: a growing inflation rate, even though they registered a moderate rise in medication prices; importingrestrictions and free sale limitations in Capital Federal, which prohibits selling prescription drugs in places that do not offer personalized assistance by pharmacists. Source: ILACAD World Retail

15. Farmacity 1 Farmacity operates in 10 provinces in Argentina (Cordoba, San Luis, Entre Ríos, Misiones, Chaco, Formosa, Salta, Jujuy, La Rioja and Buenos Aires), besides Capital Federal –where it operates the most number of stores-. • Market share: 9% • Format: Drugstore chain that offers products typically found in supermarkets as well as medications and beauty supplies. The aisles are low and –at the end of the store- clients can find a counter where prescription drugs are sold along with personalized assistance by pharmacists. Farmacity stores have large surfaces and also offer make-up, hygiene and home goods. Some are open 24 hours a day, include parking lots and even offer additional services, such as bill payment options. Important facts: • In June of 2011, the chain inaugurated a new 8,000 square-meter distribution center in the province of Cordoba, which can supply products to one hundred pharmacies throughout the region, where the chain now operates 54 stores. • By the end of 2011, Mario Quintana –President of Pegasus- became Farmacity’s new President, replacing Guillermo Bustos, who left his position after 14 years in the company. • Moreover, in 2012, the Supreme Cort prohibited the company to permanently operate in the 23 local stores operated by Mitre and Del Aguila. Source: ILACAD and retailer information

16. Vantage 2 Vantage operates in six provinces, including Santa Fe, Cordoba, Mendoza, San Juan, Buenos Aires and Capital Federal. • Market share: 1.6% • Format: The Vantage pharmacy chain –an English group owned by Sidus- operates under the traditional European pharmacy model, which includes auto-service characteristics like a health center, modern and functional spaces, etc. It also controlls a franchise system that includes reconverted stores. • Besides personalized assistance and beauty supplies, the stores offer additional services like home delivery, vaccinations, master formula preparations and bill payment options. • More information: • In the beginning of 2012, it was confirmed that the French group Carrefour would sell its five pharmacies to the Vantage group. These pharmacies are located in hypermarkets in Devoto, Boedo, Colegiales, Mataderos and the Paseo Alcorta shopping mall. So far, the only store that has started operated under the Vantage banner has been the one located in Devoto but the company expects to remodel the remaining four by the end of the year. Source: ILACAD and retailer information

17. Dr. Ahorro 3 Dr. Ahorro is located in seven provinces: Cordoba, Salta, Mendoza, Chubut, Catamarca, Buenos Aires and Capital Federal. • Market share: 0.6% • Format: Dr. Ahorro –Mexican chain that was established in Argentina in 2002- operates traditional stores where a pharmacists assists the clients. It offers over 600 medicinal products with discounts of up to 75%. Moreover, it offers nearly 5,000 SKUs and focuses on proximity and lower class clients. • More information: • During 2011, the Dr. Ahorro pharmacies increased their promotional activities by launching a loyalty card that offers its clients discounts of up to 10% on all medicinal products that are manufactured in the country. • Moreover, during the past years, the pharmaceutical chains that sell generic medications continued to suffer due to the expansion limitations the government has imposed, which do not allow to open stores from the same group in a 300 meter radio in provinces like Buenos Aires, Mendoza, Santa Fe and La Pampa. This is one of the reasons why no stores have been opened during the past years and some have even closed down. Source: ILACAD and retailer information

18. 4 The Phârmakus pharmacies operate nationwide. • The group gathers 30 traditional pharmacies since 2002, which include banners like Vasallo, Danesa and Red Farma Vip. Besides personalized assistance by a pharmacist, the group offers delivery services, discounts and sales and its stores remain open 24 hours a day. • It operates 30 stores. 5 Zona Vital pharmacies operate in three provinces in Argentina, which include Buenos Aires, Capital Federal and Rio Negro. • They are wide stores that offer medications and beauty supplies. They are located in the ABC1 areas. As it started off, the company first expanded in the northern area (Buenos Aires and Capital Federal) and then, since 1999, it has expanded to the outer regions of Buenos Aires, inaugurating stores in Pilar, Lujan and in the southern region of the country (Patagonia). The group’s pharmacies offer around 25 thousand brands. • Today it operates a network of 16 stores. 6 TKL pharmacies operate in Capital and Buenos Aires. • They are small franchised stores located in urban areas. • Today, the chain operates 12 stores. Source: ILACAD and retailer information

19. Pharmacy chains (supermarkets) • Walmart • Number of stores in 2011: Walmart has become the only supermarket chain that operate its own pharmacies, which today total 14 in-store centers, located in Capital and other provinces like Cordoba, Mendoza, Entre Rios, San Juan, San Luis, Tucuman and Chaco, among others. • Format: They are located past the check-out lanes and offer a wide assortment of prescription drugs, generic and over-the-counter medications, as well as discounts provided by health insurance companies. • Carrefour • Exit from the pharmaceutical sector in 2012 • In the beginning of the year, the French supermarket chain announced it would sell its five pharmacies located in Capital Federal (in the neighborhoods of Devoto, Boedo, Colegiales, Mataderos and the Paseo Alcorta shopping mall) to the Farmacias Vantage group. • As of today, the only pharmacy that is operating under the Vantage banner is the one located in Devoto but it is expected that the remaining four continue to do so by the end of the year. Source: ILACAD and retailer information

20. 2010 2011 Variation Annual sales in local currency R$ 42,532 M R$ 51,212 20.40% Pharmacy Channel Annual sales in dollars U$S 25,529 M U$S 27,503 M 7.70% 82,204 (3,768 chains, 68 thousand independent, 5,631 in hospitals, Number of stores Other franchises, social and homeopathic stores, etc.) R$ 17,013 M R$ 20,485 20.40% U$S 10,211 M U$S 11,001 7.73% Modern Channel 3,315 3,768 453 40% 40% Market share Pos. Chain Turnover in mill of R$ Turnover in mill of U$S Share Number of stores 1 Raia Drogasil 4,730.0 2,540.0 23.0% 776 2 4,401.0 2,363.0 21.5% 691 Pacheco-Sao Paulo (DPSP) 3 Pague Menos 2,852.0 1,531.0 13.9% 489 4 Panvel 1,469.0 789.0 7.2% 284 5 Brazil Pharma 1,075.0 577.3 5.3% 737 6 Walmart* 934.2 501.7 4.6% 320 7 Pao de Acucar* 432.0 232.0 2.1% 148 8 D'Avó Supermercados* 17.0 9.4 0.1% 6 Others 4,574.8 2,457.6 22.4% 317 Total 20,485.0 11,001.0 100.0% 3,768 Brasil Retail Market Data Annual sales in local currency Annual sales in dollars Number of stores Sources: Abrafarma, National Pharmaceutical Chamber, Chain and Market Data. Chain Ranking * Turnover estimated as far as number of stores and sales per store.

21. Pharmacy Channel in Brazil • Brazil, along with the other BRIC emerging markets (Brazil, Russia, India and China), is one of the most promising markets as far as future growth and holds the seventh spot in the medicinal sales world’s ranking, and the first one in Latin America. • The pharmaceutical modern channel in Brazil experienced a great growth in the past years and, in 2011, it registered an increase of 20.4% in its sales in local currency –which reached a sum of 20,485 million Real in 2011- in comparison to 2010. If we compare this figures to those obtained in 2009, the increase is almost 70%. • During the past two years, the industry has also experienced changes in the consumer shopping behavior, fusions and acquisitions –which have redefined the pharmaceutical sector in the countries-. The groups which held the second and fifth spots in 2009, Drogasil and Raia, have united in August of 2011 to be part of the RaiaDrogasil group and have become the leading company in the country’s market. • A few days later, the chains Sao Paulo and Pacheco –which held the third and fourth position in the Ranking in 2009- also announced their fusion and consolidated under the Drogarias DPSP S.A name and now seek to become the leading retailer in the sector in 2012. • Another indicator of the modern channel’s consolidation in the country came from the growth of the Brazil Pharma group, which in 2010 acquired the independent pharmacy chain Farmais, becoming the leading retailer in the sector as far as number of stores. It operated a total of 998 stores as of March of 2012. • Moreover, during the past two years, the market share and presence of Farmacias Populares has also grown. These stores were launched by the government back in 2004 and, by the end of 2011, it operates a total of 554 stores, where clients can find medicine up to 90% subsidized by the state. Source: ILACAD World Retail

22. Raia Drogasil 1 • Raia Drogasil operates in eleven states with a total of 776 stores. • Market share: 23% • Format: The stores offer a mixed assortment that includes pharmacy and convenience store products, as well as beauty supplies at its Beauty Centers. It targets the ABC segment and offers 24-hour pharmacy assistance. • More information: • In August of 2011, Raia Drogasil became the leading chain in the country after the fusion between Drogasil, with 57% of the shares, and Droga Raia, with the remaining 43%. • In 2011, the new company reached consolidated sales of 4,730 million Real -2,419 million from Drogasil and 2,311 million from Droga Raia-. • After this strategic fusion, the new company holds the first spot in the Ranking, despite its closeness with the second company –the group created after the fusion between Pacheco and Sao Paulo-. Sources: ILACAD and retailer information

23. Pacheco - Sao Paulo DPSP 2 Operates in five states. • Market share: 21.5% • Format: Pharmacy that includes a convenience area, with wide surfaces and personalized assistance. 75% of its total sales come from the medicinal categories. It targets clients from the ABC segment. • More information: • A few days after the fusion between Drogasil and Droga Raia was confirmed in August of 2011, Drogaria Sao Paulo and Drogaria Pacheco were united, making up the country’s second most important group. This can change during the year since the difference in total sales between the first and second group is only 7%. • The strategic alliance between the Sao Paulo pharmacies –which obtained sales of 2.2 billion Real in 2020- and Pacheco –which registered a turnover of 1.8 billion Real during the same period- made the group the leading chain in the states of Sao Paulo and Rio de Janeiro. • The new company, called Drogarias DPSP S.A is now controlled by Grupo Carvalho and Grupo Barata. Sources: ILACAD and retailer information

24. 2010 2011 Variation Turnover in local currency R$ 2,235 R$ 2,852 M 21.60% Turnover in dollars U$S 1,341 M U$S 1,531.7 M 14.20% Number of stores 400 489 89 Pague Menos 3 Pague Menos operates in 26 states in Brazil, making it the only chain with a nationwide presence. • Market share: 13.9% • Format: The chain –that has been in the market for over 30 years- focuses mainly on medications, which represent around 80% of its total turnover. It targets clients from the BC population segment and offers a 24-hour personalized assistance. • More information: • In 2011, the chain inaugurated 89 new stores and is in the process of building another 60. • Medication sales registered the highest increase: 25.58% in 2011. Sources: ILACAD and retailer information

25. 2010 2011 Variation R$ 1,298 M R$ 1,469 M 13.1% Turnover in local currency U$S 779 M U$S 789 M 1.28% Turnover in dollars 272 284 12 Number of stores Panvel 4 Operates in three states: Parana, Santa Catarina and Rio Grande do Sul. • Market share: 7.2% • Format: Panvel was launched in 1973 after the fusion of the Panitz and Velgos pharmacies. It offers a wide variety of medications and beauty supplies in large surfaces. These pharmacies also offer its clients the possibility of shopping online. • More information: • In 2011, the group –which leads the industry in the southern region of the country- entered the market in Parana, where it opened seven pharmacies in the city of Curitiba. • The group’s online sales reached a billion Real last year. • The group’s private label Panvel was expanded and now includes over 500 items. Sources: ILACAD and retailer information

26. 2010 2011 Variation R$ 175.4 M R$ 1,075.8M 512.00% Turnover in local currency U$S 105.2 M U$S 577.8 M 450.00% Turnover in dollars 503 737 234 Number of stores Brazil Pharma 5 Brazil Pharma operates in thirteen states (by March of 2012) with a total of 998 stores. • Market share: 5.25% • Format:The pharmacies that make up the Brazil Pharma group offer a wide assortment of medications at affordable prices, as well as a variety of make-up and beauty supplies. It was launched in 2009 and seeks to become leader in the region through the acquisition of small chains. In 2010, the retailer invested almost 98% of its income in the expansion of its store network. • More information: • In 2010, Brazil Pharma acquired the independent pharmacy chain Farmais. In 2011, it bought Mais Economica and, so far in 2012, it acquired the Big Ben and Santana chains. • Brazil Pharma became the group that grew the most organically, by opening 86 new stores in 2001, totaling a network of 378 corporate stores and 359 that operate under a franchise system. • After the acquisitions completed in 2012, Brazil Pharma became the country’s largest chain as far as number of stores. Sources: ILACAD and retailer information

27. Pharmacy Chains (supermarkets) • Pão de Açúcar • Launched its first pharmacy in 2011. • Operates over 148 pharmacies under the Extra, Pão de Açúcar and Compre Bem formats. • Located in teh stores’ exists and offer around 5,000 SKUs –including medications, make-up and personal care items. • D´Avó Supermercados • Operates 6 stores. • Their stores have surfaces of around 80 square meters and offer 5,000 items. • Walmart • Started operating in the pharmaceutical market in 2003 and today operates 320 stores under the Bompreço, TodoDia, BIG, Nacional, Walmart and Maxxi formats. • The pharmacies are located in the hypermarkets and wholesalers and have surfaces of around 80 square meters. They offer approximately 4,000 SKUs –including medications and beauty supplies-. • It offers its clients 500 generic medications under a “popular price”, around 50 to 60% cheaper than the leading brands. • Carrefour • Operates over 130 pharmacies inside their hypermarkets, located in 13 states. • Offers 5,000 items –including medications, cosmetics and personal hygiene items-. It also has personalized assistance by a pharmacist and home delivery service. Sources: ILACAD and retailer information

28. 2010 2011 Variation Annual sales in local currency Ch 1,049,391 mill Ch 1,346,000 mill 28.26% Pharmacy Channel Annual sales in dollars U$S 1,691 mill U$S 2,000 mill 18.34% Total number of stores 1,920 (500 independent pharmacies, 1,400 chains)) Ch 981,081 mill Ch 1,251,780 mill 27.66% U$S 1,581 mill U$S 1,861 mill 17.70% Modern Channel 1,300 1,450 150 Market share 93% 93% Turnover in bill of Turnover in mill of Pos. Chain Share Cantidad de Tiendas Ch$ U$S 1 Cruz Verde 526,030.0 782.0 42% 590 2 Ahumada 421,037.0 625.0 33% 356 3 Salcobrand 262,470.0 390.0 21% 330 4 Farmacias Dr. Simi* 29,625.0 44.0 2% 123 5 Farmacias Knop* 12,042.0 17.8 1% 50 Others 1,249.0 2.2 0.7% 1 Total 1,252,453.0 1,861.0 100% 1,450 Chile Retail Market Data Annual sales in local currency Annual sales in dollars Total number of stores Chain Ranking * Turnover estimated as far as number of stores and sales per store. For Dr. Simi and Knop, the sales per store were 75% less than the average due to their reduced prices. Sources: Pharmaceutical Industry Chamber, IMS Health Chile, retailer information.

29. Pharmacy Channel in Chile • The Chilean market continues to be the most concentrated one in Latin America as there are a large number of chains, which –in 2011- controlled 93% of the market. Neighborhood pharmacies, on the other hand, represented only 7% of the total pharmaceutical industry. • Out of the 1,820 pharmacies in the country (including both pharmacies from the modern and traditional channels), the three largest retailers operate over 70% of the total –a network of 1,276 stores-, while other chains operate 174 and the remaining 500 belong to independent pharmacies from the traditional channel. The number of stores has not suffered major changes during the past years. • After the devastating earthquake the country experienced in 2010, during 2011, the market recovered and even registered an increase of over 27% in its total sales in Chilean pesos and of 17.7% in dollars. The large chains focused, once again, on expanding and inaugurated around one hundred new stores, out of which half of them belonged to the first three chains in the ranking. • In the beginning of 2012, the Free Competition Defense Court (TDLC in Spanish) held a case in which the three main pharmaceutical chains in the country were accused of price collusion for 206 products between 2007 and 2008, meaning they got together to set prices in the market. The TDLC ruled against the three groups and fined Cruz Verde and Salcobrand for a sum of USD$ 19 million each. On the other hand, Farmacias Ahumada was not fined since it reached an agreement with the National Economic Department in 2009 and paied a sum of one million dollars. • In September of 2011, supermarket chain Jumbo, owned by Chilean retailer Cencosud, announced it would open its first pharmacies in the country, located inside the group’s stores. The first Jumbo pharmacy was inaugurated in the La Reina hypermarket, located in Chile’s capital city. • During last year, the Congress received a project that would allow over-the-counter medication sales in supermarkets and hypermarkets, strongly rejected by the Pharmaceutical Chamber in the country Source: ILACAD World Retail

30. 2010 2011 Variation Turnover in local currency Ch$ 434,700 bill Ch$ 526,030 bill 21.00% Turnover in dollars U$S 700 million U$S 782 million 11.70% Number of stores 560 590 30 Cruz Verde 1 Cruz Verde operates nationwide. • Market share: 42% • Format: Mainly focused on medications and targets the middle segment of the population’s socioeconomic classes. It operates under a pharmacy an drugstore format. • More information: • In 2011, Cruz Verde acquired the chain Maicao, and moved 47 stores from Coquimbo to Concepcion. • In addition, the retailer continued to expand throughout Central America –In Costa Rica and Nicaragua- through the acquisition of 50% of Corporacion Cefa. Since this acquisition, the group may register sales of approximately USD$ 1,000 million in 2012. • In 2011, Eduardo Jiliberto assumed as Cruz Verde’s new General Director. • And, as of 2012, the group entered Colombia through its fusion with Grupo OSI and Farmasanitas.. Source: ILACAD and retailer information

31. 2010 2011 Variation Turnover in local currency Ch$ 293,911 bill Ch$ 421,037 bill 43.00% Turnover in dollars U$S 473 million U$S 625 million 32.00% Number of stores 343 356 13 Farmacias Ahumada 2 Farmacias Ahumada operates nationwide. • Market share: 33% • Format: The Ahumada pharmacy has an average surface of 160 square meters and operates under a drugstore format, offering a wide assortment of medication and related products –like health, personal care and hygiene items-. The clients will also be able to find convenience products, private and exclusive labels. • More information: • In 2011, Fasa was incorporated to the Mexican group Casa Saba, which in 2010 it registered sales of 637 million dollars. • During the past year, 22 new stores were opened and another 9 were closed. The industry made 13 net inaugurations during the period. • The retailer was sued in 2011 by its rival Cruz Verde, which blamed the chain for disloyal competition and price collusion. Source: ILACAD and retailer information

32. 2010 2011 Variation Turnover in local currency Ch$ 206,172 bill Ch$ 262,470 bill 27.00% Turnover in dollars U$S 332 million U$S 390 million 17.46% Number of stores 328 330 2 Farmacias Salcobrand 3 Farmacias Salcobrand operates nationwide. • Market share: 21% • Format: It operates under the drugstore format and the stores have surfaces of around 150 square meters. • More information: • It was launched after the fusion between Farmacias Salco and Brand in January of 2000, becoming the Holding S&B Farmaceutica. In 2007, it was acquired by the Yarur family for USD$ 170 million. • In May of 2011, the chain inaugurated Espacio Salcobrand, a new store concept that consists of wider and more comfortable stores that offer products under the health, beauty and wellness categories. • During this past year, the chain incorporated the 2.0 technology with the launching of the Salcobrand mobile website and its website on Facebook. • In 2011, the group was fined by the Free Competition Court for price complicity. Source: ILACAD and retailer information

33. 4 It operates in eleven regions, including the main cities. • Total number of stores in 2011: 123 • Format: The group operates under a traditional pharmacy format, that focuses on low prices and generic medications. The group operates both corporate stores and under a franchise system. The stores' surfaces vary between 60 and 100 square meters. • More information: • In 2012, the group announced it plans to expand throughout the country and operating a network of 175 pharmacies by the end of the year. 5 • It operates 50 stores located in the country’s central regions. • It focuses on natural, homeopathic and therapeutical medicinal products, offering over 4,000 SKUs. In 2011, the retailer assisted over three million clients. • In 2012, the retailer announced it plans to double the number of stores in the country in order to reach a network of one hundred stores. Source: ILACAD and retailer information

34. 2010 2011 Variation Annual sales in local currency Col$ 3,727 Bill Col$ 4,006 Bill 7.50% Pharmacy Channel Annual sales in dollars U$S 1,873 mill U$S 2,069 mill 10.50% 20,000 (2,700 chains, 1,500 coop and 15,800 independent) Total number of stores Col$ 1,677 Bill Col$ 1,803 Bill 7.49% U$S 843 mill U$S 931 mill 10.44% Modern Channel 2,500 2,700 200 Market share 45% 45% Turnover in bill of Turnover in mill of Pos. Chain Share Number of stores Col$ U$S 1 La Rebaja 721,273.0 372.0 39.9% 792 2 Olímpica 440,778.0 227.0 24.4% 210 3 Colsubsidio 320,566.0 165.0 17.7% 115 4 Cafam 290,000.0 149.0 16.0% 169 5 Super Pharma * 15,100.0 7.8 0.8% 120 6 Fava Droguerías* 8,808.0 4.5 0.5% 70 7 Farmatodo* 3,020.0 1.6 0.2% 26 8 Locatel* 2,787.0 1.4 0.2% 24 Others 847.0 2.7 0.4% 1,174 Total 1,803,179.0 931.0 100% 2,700 Colombia Retail Market Data Annual sales in local currency Annual sales in dollars Total number of stores Chain Ranking Sources: ANDI, Pharmaceutical Industry Chamber, ILACAD, retailer * Turnover estimated by number of stores and sales per store, with a lower turnover since sales are also made up by the rental of medical equipment and additional services..

35. Pharmacy Channel in Colombia • The Colombian pharmaceutical modern market reached an increase of almost 8% in its total sales in local currency during 2011, strengthening the positive growth trend that has characterized this market, the fifth largest in the region, and which it has been able to maintain during the past years. • Official sources estimate that, during 2011, the total number of pharmacies in the country (including both modern and traditional channels) reached the 20,000 stores, out of which 13.5% of them belong to large retailers –around 2,700 stores-, that operate in the industry’s modern channel. • Colombia is known as an attractive market for large foreign pharmaceutical groups, which –during 2011 and in 2012- have expanded their stores in the country or have acquired local chains. This was the case of Venezuelan retailer Cobeca, which bought Droguerias Continental last year, and Faes Farma, a Spanish company that confirmed its entrance in the Colombian market in September of 2011. • Food retailers have also registered growth during last year. In 2011, Cafam started operating Exito’s pharmacies in its stores, after receiving the approval from the Commerce and Industry Department, allowing the retailer to operate nationwide. On the other hand, after the contract between Carrefour and Colsubsidio expired, the 39 drugstores owned by the French group began operating by the local chain Farmasanitas. • After law 1449 –Promotion and Protection of Investments between Colombia and India was passed in 2011, the Asian country –second leading manufacturer and distributor or generic medications- strengthened its presence in the country and became on of the main supplies in the industry. Source: ILACAD World Retail

36. Drogas La Rebaja 1 Operates nationwide, in 27 departments and 169 cities. • Market share: 39.9% • Format: Drogas La Rebaja, which belongs to Copservir group since 1996, operates under two store formats in Colomboa: Droguerias La Rebaja, with 710 stores, and La Rebaja Plus, with a total of 82 stores. The traditional drugstores have an average surface of between 65 and 70 square meters, while the second ones –under an auto-service concept- have an average size of 130 square meters. • More information: • During the past year, medicinal products represented 65% of the traditional format’s references while in the auto-service format they fell to 55% -as chains focused on beauty products-. • In 2011, the chain launched its website in social networks in order to target younger clients. It now operates a digital platform through Facebook and Twitter. • During the past two years, La Rebaja inaugurated over 130 new stores. Source: ILACAD and retailer information

37. Olimpica 2 Olimpica drugstore chain operates nationwide. • Market share: 24.4% • Format: : Olimpica operates two types of formats –Drogueria and Super Drogueria-, which are located inside supermarkets and hypermarkets. • Super Drogueria: The superdrugstores are located inside supermarkets and offer a wide assortment of medications and cosmetic products, as well as groceries, dairy and bakery. These stores have surfaces of between 250 and 750 square meters and most remain open 24 hours a day. • Drogueria: Closer to traditional pharmacies, they offer over-the-counter medications and personal hygiene items in surfaces that vary between 45 and 150 square meters. These pharmacies are located inside Superalmacenes Olimpica and Supertiendas Olimpica. Source: ILACAD and retailer information

38. Colsubsidio 3 2010 2011 Variation Col$ 267,164 M Col$ 364,643 M 26.3% Turnover in local currency U$S 134.3 M U$S 188.3 M 28.00% Turnover in dollars 139 115 -24 Number of stores Operates nationwide. • Market share: 17.7% • Formato: Colsubsidio is one of the country’s most important chains and operates several types of pharmaceutical formats, which include Superfarmacias –with stores of 150 square meters on average- and Droguerias –stores with surfaces of around 120 square meters-. The chain also operates Dispensarios and offer pharmaceutical services, that supply prescription drugs to social service associations and other organizations under a wide array of agreements. • More information: • In 2011, Colsubsidio confirmed an agreement with Nueva EPS to supply medications to the 290 thousand affiliated clients in the region of Antioquia, for which it acquired 12 Comfenalco pharmacies. • During the year, the company’s contract with Carrefour expired –causing a downfall in the total number of stores. Under this agreement, the chain operated pharmacies inside Carrefour supermarkets. Source: ILACAD and retailer information

39. Cafam 4 2010 2011 Variation Col$ 170,000 M Col$ 290,000 M 70.00% Turnover in local currency U$S 85.4 M U$S 149.8 M 75.00% Turnover in dollars 69 169 100 Number of stores Operates nationwide. • Market share: 16.0% • Format: Today, Cafam operates under drugstore formats, specializing on over-the-counter medication and prescription drugs. The store also offer personal care and hygiene items, beauty supplies, baby products, diet and organic groceries –gather a total of 13,000 SKUs-. • More information: • In 2011, Cafam signed an agreement with Exito in order to develop a drugstore format inside its hypermarkets and Exito, Carulla, Surtimax and Pomona stores. With this alliance, the company increased its market share by over 6% and added around ten new stores in the country, expanding its presence nationwide. Source: ILACAD and retailer information

40. 5 • Information: Owned by Drogueria Dromayor, one of the country’s largest distributors since its birth back in 1948. • Format:Droguerias Dromayor operates the pharmacy formats Superpharma and Don Saludero, registering sales of approximately 200 million dollars per year. This small stores offer a wide assortment of medicinal products and some convenience items. Both chains together operate over 120 stores. 6 • Information: The chain is owned by Droguerias Acuña and, after 55 years in the country’s market, it now operates 22 stores in Bogota. • Format: Today, the group operates approximately 70 pharmacies, offering both over-the-counter and prescription drugs, as well as convenience products and beauty supplies. Source: ILACAD and retailer information

41. 7 • Operates nationwide. • Number of stores: in 2010: 20 (3 auto-service stores) and in 2011: 26 (3 auto-service stores) • Format:Auto-service pharmacy format with strong presence and participation nationwide. At the storees, the clients will find medications and a wide assortment of beauty and hygiene products. • The retailer offers personalized pharmacist assistance, a 24-hour service, drive-thru lanes, home delivery and other additional services like a photo center. 8 Strong presence in Bogota and also operates stores in Medellin, Barranquilla, Pereira, Cali and Chia. • Number of stores in: 24 • Format:The Venezuelan firm Locatel operates under a specialized supermarket format, focusing on selling health & wellness products and services. Besides offering a wide assortment of medicinal products, the retailer rents medical equipment for this patients who need therapy at home • The group plans to open 50 stores by 2014. Source: ILACAD and retailer information

42. Information:The National Cooperative of Small Drugstores, Copidrogas, was launched in 1969 after the union between twenty drugstore chains from Bogota. More than 40 years later, Copidrogas operates over 3,500 affiliated drugstores in Colombia, operating under a franchise system and able to buy products at reduced prices thanks to the Cooperative’s negotiation power. • Format:The Cooperative’s stores operate under the Farmacenter banner. The stores have small surfaces –no more than 400 square meters- and offer personal hygiene items and medications, totaling around 13,000 SKUs. • Information: In the beginning of 2012, the third largest Venezuelan investment firm announced the entrance to the country, after Cobeca acquired the Droguerias Continental group. After Locatel and Farmatodo, Cobeca will seek to increase Continental´s sales, which in 2011 they fell over $ 2,524 million Colombian pesos. • Format: The group will begin operating 20 corporate pharmacies during 2012 and –if it registers positive results- it will continue to expand in the future. Source: ILACAD and retailer information

43. 2010 2011 Variation Annual sales in local currency Mx$ 178,000 M Mx$ 181,560 M 2.00% Pharmacy Channel Annual sales in dollars U$S 14,373 M U$S 13,011 M -9.48% 31,397 (9,419 chains, 12,559 independent, 8,477 fneighborhood Total number of stores pharmacies, 942 hin hospitals, etc.) Mx$ 115,700 M Mx$ 118,014 M 2.00% U$S 9,342 M U$S 8,457 M -9.50% Modern Channel 8,360 9,419 1,059 Market share 65% 65% Turnover in bill of Turnover in mill of Pos. Chain Share Number of stores Mx$ U$S 1 23,237.0 1,665.0 19.7% 948 La Fragua 2 14,773.0 1,058.0 12.5% 4,341 Similares* 3 10,871.0 779.0 9.2% 746 Benavides 4 13,652.0 978.0 11.6% 1,090 Walmart* 5 12,525.0 897.0 89.0% 1,000 Farmacias del Dr.Ahorro* 6 3,757.0 269.0 10.6% 300 Farmacias Yza* 7 2,254.0 161.0 1.9% 180 San Francisco de Asis* 8 826.0 59.0 0.7% 66 SuperFarmacias Esquivar* 9 576.0 41.3 0.5% 46 Supefarmacias Fenix* 10 Roma* 563.0 40.4 0.5% 45 Others 34,980.0 2,509.3 29.7% 657 Total 118,014.0 8,457.0 100% 9,419 Mexico Retail Market Data Annual sales in local currency Annual sales in dollars Total number of stores * Turnover estimated as far as number of stores and sales per store. Chain Ranking Sources: IMS Health Mexico, retailer information, National Association of Pharmacies in Mexico / *Turnover estimated by number of stores

44. Pharmacy Channel in Mexico • The Mexican pharmaceutical market is the second most important one in Latin America –after Brazil- and holds a position in the world’s top ten. • During 2011, the modern pharmaceutical market reached the goals set the year before and registered a 2% growth in local currency, reaching Mx$ 118,014 million. However, in dollars, sales were lower in comparison to 2010. They decreased by 9.5% and totaled USD$ 8,457 million. • During the past years, pharmaceutical retailers have strengthened their positions in the market, while pharmacies in the traditional channel have suffered a significant decrease in its sales and have had to close down over 2,000 stores, according to Mexico’s National Pharmacies Association. The institution also estimates that around 7,500 pharmacies within the traditional market may also be closed during the next years. • After a slow start in the development of generic medications, the industry has experienced a two-digit growth since 2009. According to IMS Health, it is estimated approximately 913,000 million units are sold in Mexico each year. As far as sales, the association estimates medication represents around 40% of the industry’s total sales in Mexico, figure larger than those registered in Argentina, Colombia and Chile. The generic medication boom was caused after the launching of a great number of agreements that allow the production of medication at reduced prices by other groups besides laboratories. • Mexican group Casa Saba started operating the Benavides pharmacies –previously owned by Fasa-, after the Chilean retailer sold its operations to the local group. Source: ILACAD World Retail

45. 2010 2011 Variation Turnover in local currency Mx$ 21,152 M Mx$ 23,237 M 9.85% Turnover in dollars U$S 1,708 M U$S 1,665 M -2.51% Number of stores 846 948 102 Fragua 1 Operates in: 22 states and 221 cities • Market share: 19.7 % • Format: The retailer operates under the SuperFarmacia format. The stores offer medication, beauty supplies and personal care items, as well as groceries –which include fruits and vegetables, breads, etc.- and home goods. • More information: • In 2011, the chain experienced a record expansion plan, with the opening of a Super Farmacia store every four days, adding a total of 102 stores. The group announced that, for 2012, it plans to reach the 1,000 stores. • During the year, the retailer added 46,200 square meters to its total surface, 12% more than in 2010. • Around 50% of its total product assortment is made up of medication, while the remaining half consists of groceries and beauty supplies. Source: ILACAD and retailer information

46. 2010 2011 Variation Mx$ 13,514 M Mx$ 14,773 M 9.30% Turnover in local currency U$S 1,091 M U$S 1,058 M -3.02% Turnover in dollars 4,000 4,341 341 Number of stores Farmacias Similares 2 • Operates in: Nationwide • Market share: 12.5% • Format: The chain leads the generic product industry and operates under a format and focuses on proximity and low prices. It operates a wide network of franchises that sell the best-selling medicinal products up to 75% cheaper. • More information: • The retailer operates in Mexico, Chile and Central America –Guatemala and El Salvador-. • Besides operating pharmacies, the group –controlled by Laboratorios Best- also owns a company that specializes on pharmaceutical logistics and clinical analysis. Source: ILACAD and retailer information

47. 2010 2011 Variation Mx$ 9,601 M Mx$ 10,871 M 13.22% Turnover in local currency U$S 775 M U$S 779 M 0.51% Turnover in dollars 723 746 23 Number of stores Farmacias Benavides 3 • Operates in: 16 states and 120 cities. • Market share: 9.2% • Format: Farmacia Benavides operates under a drugstore format and its stores offer over 15,000 SKUs. Besides personal care and hygiene items, clients will find photo centers and a wide assortment of non-food items. The chain –owned by Mexican group Casa Saba since it was acquired from FASA group in 2011- also offers a wide variety of private labels products under all of the major categories. • More information: • During 2011, the chain inaugurated 31 new pharmacies and closed eight stores, ending the year with a network of 23 new stores and over 179,446 square meters. • The retailer assisted over 115 million clients during 2011. • As of 2012, the chain opened eight new stores and registered an increase of 7.9% in sales in comparison with the same period in 2011. Source: ILACAD and retailer information

48. 5 Operates in: 23 states • Number of stores: 1,000 (they operate a large number of franchises) • Format:The stores offer around 7,000 references. Farmacias Ahorro operate under a proximity format and focus mainly on low prices. The chain also offers a wide assortment of private label products. 6 • Operates in: 4 states in Campeche, Quintana Roo, Yucatan and Tabasco with 300 stores. • Format: The Yza pharmacies were launched in 1958 under the traditional pharmacy concept. As time went by, the retailer started offering additional services and has now become a drugstore chain that offer medication, hygiene items, make-up, groceries, home goods and general merchandise. • More information: The Yza stores are open 24 hours a day and, among other services, they offer its clients a home delivery service, bill payment options and loyalty cards. They also offer a wide variety of private label products, which make up for 7% of the group’s total sales Source: ILACAD and retailer information

49. 7 Operates in: 4 states (Jalisco, Michoacan, Queretaro and Guanajuato) • Number of stores: 180 • Format: They operate as traditional pharmacies that include an auto-service area where clients will be able to find –besides medications- an assortment of snacks and drinks. Operates in: 22 cities in Chiapas • Number of stores: 66 • Format: The stores operate under an auto-service format, specializing in pharmaceutical products. Operates in: 4 states (Tamaulipas, Veracruz, Oaxaca and San Luis Potosi) • Number of stores: 46 • Format: Chain owned by Superfarmacias that offers not only medications but also a wide assortment of groceries. • More information: During 2011, the retailer inaugurated three stores and its sales increased by 6%. 8 9 Source: ILACAD and retailer information

50. 10 • Operates in: Baja California in Tijuana, Rosarito, Tecate and Mexicali • Number of stores: 45 • Format: The stores offer a wide assortment of prescription drugs and over-the-counter medications, as well as personal hygiene items, baby products, dairy, groceries and drinks. They are open 24 hours a day and most of the stores include a café area. • Operates in: Distrito Federal and metropolitan area • Number of stores: 41 • Format: The chain operates under a “super pharmacy” format, through which it offers pharmaceutical products as well as beauty supplies, groceries and drinks. • More information: These stores offer additional health services, such as blood pressure checks, etc. The group also accepts several payment types and offer bill payment services. Operates in: Guadalajara • Format: Pharmacies that combine over-the-counter medication with prescription drugs, as well as beauty products under a pharmacy and convenience store format. • More information: The retailer offers home delivery services and a wide sales area dedicated to make-up. In many cases, clients will be able to find personalized assistance by a specialist in this department. Source: ILACAD and retailer information