Solution by LT from LV

Agenda

12/09/09 2

Generic drugs producer Generic drugs & ingredients producer

Revenues by countries

Generic drugs producerGeneric drugs &

ingredients producer

Product origin Product types

Intra-industryVertical (value chain)

Horizontal (competitors)Both Internal &Market Drivers

Previous Sanitas Mergers

Previous Sanitas Mergers

HB and Jelfa deals are identical

Capacity building/consolidation

Product and market extension

Geographic roll-up

Same cost and revenues synergies

All mergers operational

HB Slovak

Jelfa

Homeofarm

Reactions

Reactions

12/09/098

Possible anti-trust case

Maximum market share in a country

Excessive bargaining power over distributorsNone, as drug stores chains are also very consolidated

The consolidated market share will not exceed 10% in any of the countries

Attention from Competition Council is highly unlikely

Proposed Integration

Organizational integration

Revenues benefits

Cost benefits

Questions are welcome!12/09/09 14