Teleconferência 4Q13 e ano 2013

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4Q13 and Year Earnings Release |

Strategic Association with AmerisourceBergen Corporation

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Earnings Release

4Q13 and 2013

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• Profarma had one more year of great achievements and maybe one of the most important in its history. It was a year of

change in the Company’s business model, with the acquisition of 100% of Drogasmil/Farmalife and 50% of Drogarias

Tamoio chains, both in January 2013, when Profarma broke into the pharmaceutical retail market. As a result, the

Company has become an even more complete, integrated and vertically platform in the pharmaceutical market;

• On March 24, 2014, Profarma started a strategic association in which U.S. wholesaler AmerisourceBergen will be able to

own up to 19.9% of Profarma’s capital stock through the subscription of new shares in connection with a capital increase

at R$ 22.50 / share yet to be made. This amount will be mainly used to fund the Company’s growth strategy;

• Additionally, the companies will be creating Profarma Specialty, a joint venture in which each company will own a 50%

equity state, to increase Profarma’s current share in the hospital and specialties market;

• The capital subscription resulting from these two operations will amount R$ 250.0 million to R$ 400.0 million;

• The Profarma’s shares (PFRM3) were priced at R$ 18.64 at the close of the year, up 28.6% year-over-year, with an

average daily trading volume of R$ 4.0 million, up significantly 273.5% in relation to 2012.

Highlights in the Period

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Profarma | Earnings Release 4Q13 and Year

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4


Gross Revenues Evolution

(R$ million)

2012

3,802.7

514.0

3,288.7

2013

3,997.5

621.7

3,309.7

66.1

4Q12

971.0

849.8

121.2

4Q13

985.2

763.1

156.0 66.1

Pharmaceutical Distribution Hospital & Specialties Retail

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5


(R$ million and % Net Revenues)

Gross Profit and Revenues from Services to Suppliers

4Q12

39.7

50.7

2013

122.6

307.5

10.7%

13.4%

4Q13

23.6

92.3

12.4%

11.0%

2012

150.6

204.7

Gross Profit Revenues from Services to Suppliers Gross Profit Margin(%)

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Operating Expenses - SGA

4Q12

67.1

2013

333.2 7.9% 7.9%

12.3%

4Q13

105.7

2012

256.6

9.6%

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Ebitda and Ebitda Margin

4Q12

18.8

2013

95.8

2.2% 2.8%

1.7%

4Q13

14.8

2012

92.2

2.9%

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Net Financial Expenses


4Q12 4Q13 2013

6.3

28.6

1.8%

0.9% 0.7%

15.7

2012

56.0

1.6%

9

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Net Profit

4Q12

4Q13

2013

7.8

40.6

0.9%

0.6%

- 0.5%

(4.6) 2012

20.4

1.3%

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Summary of Cash Flow

Cash Flow Generated / (Used) in Operating Activities

Internal Cash Generation

Operating Assets Variation

Trade Accounts Receivable

Inventories

Suppliers

Other Items

Cash Flow (Used) in Investing Activities

Cash Flow Generated / (Used) by Financing Activities

Net Increase / (Decrease) in Cash

(R$ Million) 4Q13

7.9

9.8

(1.9)

43.2

(48.5)

14.9

(11.6)

(12.6)

6.7

2.0

Chg. %

-86.2%

-46.4%

-

-

27.6%

-91.5%

76.9%

-314.4%

-

-94.3

2013

(90.1)

68.0

(158.2)

(26.0)

(21.1)

(77.2)

(33.9)

(101.6)

202.0

10.3

Chg. %

-

-23.9%

-96.5%

61.1

-119.0%

-

49.0%

-797.4%

600.7%

-61.2%

4Q12

56.9

18.2

38.7

(18.9)

(66.9)

174.5

(50.1)

(3.0)

(18.6)

35.2

2012

8.9

89.4

(80.5)

(66.8)

(9.6)

62.5

(66.5)

(11.3)

28.8

26.4

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* Average

(1) Average of Gross Revenues in the Quarter

(2) Average of COGS in the Quarter

(3) Average of COGS in the Quarter

Cash Cycle - Days *

Accounts Receivable (1)

Inventories (2)

Accounts Payable (3)

4Q13 4Q12

54.7

45.8

56.4

47.5

46.3

51.0

48.2

52.9

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Indebtedness:

Net Debt and Net Debt / Ebitda*

(R$ million)

2013

458.5

4.8x

2012

168.7

1.8x

* Ebitda = accumulated last 12 months

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Capex

4Q12 4Q13 2013

2.2

12.3

0.3% 0.4%

1.0%

9.0

2012

10.8

0.3%

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Service Level

(Units served / Units Requested)

Logistics E.P.M.

(Errors per Million)

4Q12

89.2%

4Q13

88.9%

2013

89.6%

2012

87.8%

4Q12

65.0

4Q13

94.0

2013

107.7

2012

94.0


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Gross Revenues R$ million

95.2

Op. Exp.

Total

Gross

Margin

Ebitda

Margin

Net

Margin

21.9%

30.4%

5.6% 3.6%

Financial DataTamoio – 4Q13

(R$ million e % Gross Revenues)

59

4

6.6%

25.85

537.8

20.2

# of stores

Store Openings

1 SSS Mature Stores (more than 36 months)

Average Ticket (in reais)

Monthly Average Store's Sales

Revenues per Employee

1- Same Store Sales

9.4% 1 SSS

Operational Data Tamoio – 4Q13

(R$ thousands)

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Gross Revenues Breakdown

Tamoio – 4Q13

43.8% 33.0%

15.7%

7.4%


Gross Profit

Health and Beauty Products Branded OTC Generic 1Q13

9.6

4Q13

19,8 22.9%

29,9%

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Turnover - PFRM3 PFRM3 IBOV Index IGCX Index

Stock Performance

100

28.6

-2.0

-15.5

100

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Deal | Transaction Rationale

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Strategic Association | Transaction Rationale

• Creation of the brand Profarma Specialty;

• Each company will contribute with what it does best: growth in specialties market, focusing on distribution

services, innovation and tecnology;

• The companies will support each other to accelerate growth, while drawing on the synergies and expertise in

Pharmaceutical Distribution and Specialties Distribution.

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Relationships

New Business Opportunities

Growth

Platform for Future Growth

Diversification

New Products & Services

Recognition

Strengthening the Brand

+

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Specialties | Creation of Profarma Specialty

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Segment Industry Origin

Dermatology

Vaccines

Hospital

Private /

Distribution

Inside Profarma

Pharma Business

Oncology

Vaccines

Hospital

Private & Public /

Distribution

Acqusiition

60% in Nov/11

100% in Sep/13

Breast Implants

Dermatology

Arthritis

Hormones

Private /

Specialties

Acquisition

80% in Dec/12

100% Option

Oncology

Dermatology

Breast Implants

Vaccines

Other

Private & Public /

Distribution &

Pharmacy

Joint Venture

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Overview AmerisourceBergen Corporation

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AmerisourceBergen Corporation | Overview

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One of the largest global pharmaceutical services companies dedicated exclusively to increasing supply chain

efficiency:

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AmerisourceBergen Corporation | Overview

Company Overview

• AmerisourceBergen is one of the world's largest

pharmaceutical services companies serving the United

States, Canada and selected global markets;

• Focused on the pharmaceutical supply chain. Servicing both

pharmaceutical manufacturers and healthcare providers, the

Company provides drug distribution and related services;

• The pharmaceutical distribution business operates under the

business units of AmerisourceBergen Drug Corporation,

AmerisourceBergen Specialty Group, AmerisourceBergen

Consulting Services and World Courier;

• AmerisourceBergen Specialty Group leads the market in

oncology, plasma-derivative and biotech product distribution

in USA and Canada;

• AmerisourceBergen Specialty Group is a True Market

Leader, serving over 4,500 community oncologist practices,

is umber one in most physician specialties and in dialysis,

the number one distributor of blood derivatives, and also

have over 35,000 active customers for vaccines, biologicals

and injectables.

U$ billion

Revenues

78.7

2011

9.6%

78.1

2012

11.5%

88.0

2013

11.7%

Diverse Mix of Revenues*

Retail

Specialty

Health

Systems

Alternate

Sites

Manufacturer

Services

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*Estimated FY2014 Revenues

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AmerisourceBergen Corporation | Services & Solutions

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DEVELOPMENT PRE-LAUNCH LAUNCH HIGH-GROWTH MARKET MATURITY

Global Clinical Trial Logistics

Trial Packaging & Laboratory Services

Analytics & Busines Intelligence

Contract & Specialized Production Packaging Services

Health Economics & Outcomes Research

Reimbursement Services & Market Analysis

Physician Networks

Clinical Hotlines

Specialty Pharmacy Services

Outsourced Logistics

Patient Adherence & Compliance Services

Medical Science Liaison Programs

Oncology Product Distribution

Blood Plasma & Nephrology Product Distribution

Vaccine, Injectable & Biological Product Distribution

Generics Strategy

Expertise across Pharmaceutical Life Cycle:

Brand Services & Managed Markets Solutions

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Deal | Transaction Summary

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Strategic Association | Transaction Summary

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Strategic alliance formed by two operations:

Capital Increase

R$ 335.6 million

Primary:

R$ 40 million

Secondary:

R$ 21 million

Joint Venture Capital Increase

Market AmerisourceBergen

56%

R$ 190

million

44%

R$ 146

million

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2

1

Strategic Association | Transaction Summary

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• AmerisourceBergen Corporation may come to hold up to 19.9% of Profarma’s capital, through a

subscription of capital increase of R$335.6 million via assignment of the subscription rights attributed

to the shares held by BMK (Profarma’s holding and parent company);

• The rights issue will be carried out at the price of R$ 22.50 / share;

• The amount will be used to finance the Company’s growth strategy;

Ca

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Jo

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• Profarma and AmerisourceBergen Corporation will create Profarma Specialty, a JV in which each

company holds a 50% interest;

• Profarma will contribute its operational assets, which are formed by Prodiet, Arpmed and its Hospital

and Vaccine Division, and AmerisourceBergen Corporation will make a primary capital injection of R$ 40

million and a secondary injection of R$ 21.3 million.

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Analyst Coverage

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Profarma | Analyst Coverage

Company Analyst Telephone Email

Credit Suisse Marcel Moraes (55 11) 3841-6302 [email protected]

BTG Pactual João Carlos dos Santos (55 11) 3383-2384 [email protected]

Juliana Rozenbaum (55 11) 3073-3040 [email protected] Itaú BBA

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

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

Merrill Lynch Mauricio Fernandes (55 11) 2188-4236 [email protected]

Banco Fator Pedro Ivo Barreto Zabeu (55 11) 3049-9478 [email protected]

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

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

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Max Fischer | CFO and IRO & Beatriz Diez | IR Manager

www.profarma.com.br/ir

Tel.: 55 (21) 4009-0276

E-mail: [email protected]

Teleconferência 4Q13 e ano 2013

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