Teleconferência 2Q15

August 12, 2015

2Q15 EARNINGS RELEASE

2

Highlights | Corporate

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 over the last three years, including its

entry into the Retail pharmaceutical segment, and the attainment of a market position

as one of the major players within this segment in the state of Rio de Janeiro;

Proven capacity to integrate acquisitions, combining all group companies in the SAP

plataform.

3

Highlights | 2Q15

CONSOLIDATED (considering 100% of all companies)

• Consolidated EBITDA rose by 54.8% from 2Q14 to R$37.7

million, with EBITDA margin of 3.6%;

• Gross margin increased by 1.6 p.p. or 10.5% year-over-

year;

• Gross revenue climbed by 9.6% from 2Q14.

RETAIL

• Drogasmil’s and Tamoio’s sales rose respectively by 21.0%

and 11.3% fro m 2Q14;

• Drogasmil’s EBITDA margin moved up by 0.2 p.p. and

Tamoio’s by 3.8 p.p. in relation to 2Q14;

• Drogasmil’s same stores sales (SSS) increased by 17.7%

and Tamoio’s by 11.0% in relation to 2Q14.

SPECIALTIES

• Division’s sales grew by 17.0%, with a year-over-year

increase of 28.6% in specialty wholesaling;

• Sales to the private sector climbed by 38.6% against 2Q14;

• Oncological sales increased by 54.4% in relation to 2Q14.

PHARMACEUTICAL DISTRIBUTION

• Sales increased by 8.7% against 2Q14;

• EBITDA rose by 38.4% from 2Q14, with EBITDA margin of

3.6%;

• Generics sales up 18.0% year-over-year.

Specialties

2Q14 2Q15(**)

148.4

17.6

15.7

1.4

173.7

20.3

16.7

2.8

Retail(*)

2Q14 2Q15

161.0

50.1

47.2

2.3

185.3

58.5

49.2

6.6

Consolidado(*)(**)

2Q14 2Q15

1,075.3

148.3

121.7

24.3

1,178.5

178.7

132.3

37.7

Pharmaceutical

Distribution

2Q14 2Q15

828.4

80.6

58.8

20.5

900.8

99.9

66.4

28.4

4

Gross Revenues

Gross Profit

SGA

Ebitda

Highlights | Breakdown by Division – 2Q15

(*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife.

(**) Pro-forma figures: 100% of revenues from Specialties.

CONSOLIDATED PERFORMANCE

Consolidated Performance

6

Gross Revenues Evolution (R$ million)

2Q14

1,009.2

1Q15

943.5

2Q15

964.1 2.9%

9.6%

66.1

1,075.3 201.3

1,144.8 214.4

1,178.5

Sales increased by 8.7% against

2Q14.

Division’s sales grew by 17.0%, with

a year-over-year increase of 28.6% in

specialty wholesaling.

Drogasmil’s and Tamoio’s sales rose

respectively by 21.0% and 11.3%

from 2Q14.

Pharmaceutical Distribution

Specialties

Retail

Accounting Consolidated Gross Revenues

Pro-forma Consolidated Gross Revenues: 100% of revenues from

Tamoio and Specialties

Performance by Division

7

2Q14 1Q15 2Q15

828.4

873.0

3.2%

8.7%

2Q14 1Q15 2Q15

148.4

166.3

173.7

4.4%

17.0%

2Q14 1Q15 2Q15

62.3 15.1%

72.0 75.4

6.3%

900.8

Pharmaceutical Distribution Specialties(**) Retail(*)

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

98.7

102.3

109.9 161.0

185.3

174.4


8

2Q15 2Q14

13.4%

117.7

1Q15

12.1%

99.5

14.7%

123.6

14.6%

2Q15 2Q14

148.3

1Q15

147.2

17.2%

178.7

Pro-forma (*)

Gross Profit (R$ million and % Net Revenues)

(*) Pro-forma figures: 100% of revenues from Tamoio and Specialties

15.6%


9

Pro-forma (*)

121.7

12.1 %

121.8

12.8%

132.3

96.5

82.9 91.6

2Q15 2Q14 1Q15 2Q15 2Q14 1Q15

Operating Expenses – SGA (R$ million and % Net Revenues)


10.1% 10.8% 11.0%

12,8%


10

Pro-forma (*)

2Q15 2Q14 1Q15 2Q15 2Q14 1Q15

2.3%

20.4

1.6%

13.5

3.2%

27.2

102.4%

33.8%

2.6%

24.3

2.0%

19.7

3.6%

37.7

91.2%

54.8%

Adjusted EBITDA and Adjusted EBITDA Margin (R$ million and % Net Revenues)



11

(7.6)

2Q14

3.6

0.4%

-0.6%

0.3%

1Q15

(6.0)

2Q15

2.7 2.1

2Q15

0.2%

-0.9%

0.0%

0.1

1Q15

(2.8)

3.2

(3.1)

-0.3% -0.4%

0.4%

(1.3) (1.4)

6.3

-0.1% -0.1%

0.6%

2Q14

Net Profit (R$ million and % Net Revenues)


Pro-forma (*)

Net Profit

Adjusted Net Profit

Pro-Forma Net Profit

Pro-Forma Adjusted Net Profit


12

2Q15

(104.2)

20.7

(124.9)

(5.9)

(6.6)

(116.7)

2Q14

(11.9)

1.4

(13.3)

16.6

145.9

150.6

2Q154 1Q154 2Q14

Cash Cycle - Days * 43.6 34.0 46.9 40.1 39.6 49.6

Accounts Receivable¹ 47.3 45.5 44.5 48.7 57.8 18.0

Inventories² 55.9 62.7 63.2 58.3 40.8 80.1

Accounts Payable³ 59.6 74.2 60.7 66.9 58.9 48.6

2Q15 2Q15 2Q15

Pro-forma

Pharma PFS. Retail

Cash Flow (R$ million)

Cash Cycle (Days)

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

Consolidated Consolidated

* 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

Specialties division.

5.0

13

0.6

1.1

3.3

2Q14 1Q15 2Q15

167.1

2.2x

205.1

3.3x

331.9

4.5x

Consolidated Performance Capex

(R$ million)

Indebtedness: Net Debt and Net Debt /

EBITDA (R$ million)

Capex

2Q15 Others IT

Machinery and

Equipment

PHARMACEUTICAL DISTRIBUTION

3.6

2Q14 2Q15

2.9

8.5

2Q14 2Q15

8.3

12.8

2Q14 2Q15

11.3

900.8

2Q14 2Q15

828.4

15

Generics sales up 18.0%

year-over-year.

Gross margin increased by

1.5 p.p. or 13.4% year-over-

year;

EBITDA rose by 38.4% from

2Q14, with EBITDA margin of

3.6%;

Financial Data (R$ million and % Net Revenues)

EBITDA Margin

(%)

Op. Exp. SG&A

(%)

Gross Margin

(%)

Gross Revenues

(R$ million)

Pharmaceutical Distribution

SPECIALTIES

17

1.8

2Q14 2Q15

1.1

10.5

2Q14 2Q15

11.6

12.7

2Q14 2Q15

13.1

173.7

2Q14 2Q15

148.4

Division’s sales grew by

17.0%, with a year-over-year

increase of 28.6% in

specialty wholesaling;

Oncological sales increased

by 54.4% in relation to 2Q14.

Specialties


EBITDA Margin

(%)

Op. Exp. SG&A

(%)

Gross Margin

(%)

Gross Revenues

(R$ million)

Sales to the private sector

climbed by 38.6% against

2Q14;

RETAIL

19

9.3

2Q14 2Q15

5.5

22.3

2Q14 2Q15

25.6

31.7

2Q14 2Q15

31.1

109.9

2Q14 2Q15

98.7

Tamoio chain’s sales up

11.3% year-over-year;

Average monthly sales per

store up 9.4%, from R$ 548.2

thousand in 2Q14 to R$

600.0 thousand in 2Q15;

Operating expenses down

3.3 p.p. in relation to 2Q14;

Retail | Tamoio


EBITDA Margin

(%)

Op. Exp. SG&A

(%)

Gross Margin

(%)

Gross Revenues

(R$ million)

EBITDA was up 87.7%

compared to the 2Q14.

20

2Q14 2Q15 1Q15 2Q14 2Q15 1Q15 2Q14 2Q15 1Q15

600.0

568.4 548.2

9.4%

98.7

109.6

102.3

11.0%

89.0

99.5

92.1

11.9%

5.6% 8.0% 7.1%

Retail | Tamoio

SSS Mature Stores (R$ million)

Monthly Average Store's Sales (R$ thousand)

Same Store Sales (R$ million)

21

2Q14

vs.

2Q15

2Q14 2Q15 1Q15 2Q14 1Q15 2Q15

27.3

30.0

28.8

9.8%

4.1%

60 60

61

1.7%

1.7%

Retail | Tamoio

# of Stores (units)

Average Ticket (in reais)

1 Opening

0 Close-downs

0 Reformulated

50 Mature

22

-4.8

2Q14 2Q15

-5.0

32.7

2Q14 2Q15

35.2

31.3

2Q14 2Q15

31.2

75.4

2Q14 2Q15

62.3

Average monthly sales per

store up 11.6%, from R$

346.2 thousand in 2Q14 to

R$ 386.6 thousand in 2Q15;

A 3.2 p.p. drop in net loss as

a percentage of sales, from

17.8% in 2Q14 to 14.6% in

2Q15.

A 21.8% increase in gross

profit YoY, with 31.3% gross

margin in 2Q15;

Retail | Drogasmil/Farmalife


EBITDA Margin

(%)

Op. Exp. SG&A

(%)

Gross Margin

(%)

Gross Revenues

(R$ million)

23

2Q15 1Q15 2Q14 2Q14 2Q15 1Q15 2Q14 2Q15 1Q15

386.6 376.5

11.6%

346.2 56.5

66.5

63.7

17.7%

54.8

64.2 62.6

17.2%

4.3% 2.6% 2.7%


SSS Mature Stores (R$ million)

Monthly Average Store's

Sales (R$ thousand)

Same Store Sales (R$ million)

2Q14

vs.

2Q15 49 Mature

2 Reformulated

24

2Q14 2Q15 1Q15 2Q14 1Q15 2Q15

60

64

67

11.7%

4.7%

31.8

36.3 35.9

14.2%

1.2%


Average Ticket (in reais)

# of Stores (units)

3 Opening

0 Close-downs

ANALYST COVERAGE

Analyst Coverage

26

Banco Fator Caio Moreira +55 (11) 3049-9487 [email protected]

Brasil Plural Guilherme Assis +55 (11) 3206 8285 [email protected]

BTG Pactual Rodrigo Gastim +55 (11) 3383-2468 [email protected]

HSBC Luciano Campos +55 (11) 3371 8194 [email protected]

BofA Merrill Lynch Roberto Otero +55 (11) 2188-4119 [email protected]

Morgan Stanley Javier Martinez de Olcoz +55 (11) 3048 6088 [email protected]

Votorantim Andre Parize +55 (11) 5171 5870 [email protected]

J.P. Morgan Joseph Giordano +55 (11) 4950-3020 [email protected]

Company Analyst Telephone E-mail

Max Fischer - CFO e IRO & Beatriz Diez - IRM

www.profarma.com.br/ri | Tel.: 55 (21) 4009-0276 | E-mail: [email protected]

Investor Relations

Teleconferência 2Q15