Profarma reported its financial results for the fourth quarter and full year of 2013, highlighting growth in revenues and profits. The company also announced a strategic partnership with AmerisourceBergen, including a capital increase and joint venture, to expand in the pharmaceutical specialties market. Profarma expects the deal to accelerate its growth and strengthen its brand through new business opportunities and synergies with AmerisourceBergen's expertise.
3. 3
• 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
3
Profarma | Earnings Release 4Q13 and Year
5. 5
5
Profarma | Earnings Release 4Q13 and Year
(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(%)
6. 6
6
Profarma | Earnings Release 4Q13 and Year
(R$ million and % Net Revenues)
Operating Expenses - SGA
4Q12
67.1
2013
333.2
7.9% 7.9%
12.3%
4Q13
105.7
2012
256.6
9.6%
7. 7
7
Profarma | Earnings Release 4Q13 and Year
(R$ million and % Net Revenues)
Ebitda and Ebitda Margin
4Q12
18.8
2013
95.8
2.2%
2.8%
1.7%
4Q13
14.8
2012
92.2
2.9%
8. 8
8
Profarma | Earnings Release 4Q13 and Year
Net Financial Expenses
(R$ million and % Net Revenues)
4Q12 4Q13 2013
6.3
28.6
1.8%
0.9%
0.7%
15.7
2012
56.0
1.6%
9. 9
9
Profarma | Earnings Release 4Q13 and Year
(R$ million and % Net Revenues)
Net Profit
4Q12
4Q13
2013
7.8
40.6
0.9%
0.6%
- 0.5%
(4.6)
2012
20.4
1.3%
11. 11
11
Profarma | Earnings Release 4Q13 and Year
* 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)
4Q134Q12
54.7
45.8
56.4
47.5
46.3
51.0
48.2
52.9
12. 12
12
Profarma | Earnings Release 4Q13 and Year
Indebtedness:
Net Debt and Net Debt / Ebitda*
(R$ million)
2013
458.5
4.8x
2012
168.7
1.8x
* Ebitda = accumulated last 12 months
13. 13
13
Profarma | Earnings Release 4Q13 and Year
(R$ million and % Net Revenues)
Capex
4Q12 4Q13 2013
2.2
12.3
0.3% 0.4%
1.0%
9.0
2012
10.8
0.3%
14. 14
14
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
Profarma | Earnings Release 4Q13 and Year
15. 15
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%1SSS
Operational Data Tamoio – 4Q13
(R$ thousands)
15
Profarma | Earnings Release 4Q13 and Year
16. 16
16
Profarma | Earnings Release 4Q13 and Year
Gross Revenues Breakdown
Tamoio – 4Q13
43.8%
33.0%
15.7%
7.4%
(R$ million and % Net Revenues)
Gross Profit
Health and Beauty Products Branded OTCGeneric
1Q13
9.6
4Q13
19,8
22.9%
29,9%
17. 17
17
Profarma | Earnings Release 4Q13 and Year
Turnover - PFRM3 PFRM3 IBOV Index IGCX Index
Stock Performance
100
28.6
-2.0
-15.5
100
19. 19
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.
19
Relationships
New Business Opportunities
Growth
Platform for Future Growth
Diversification
New Products & Services
Recognition
Strengthening the Brand
+
20. 20
Specialties | Creation of Profarma Specialty
20
SegmentIndustry 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
22. 22
AmerisourceBergen Corporation | Overview
22
One of the largest global pharmaceutical services companies dedicated exclusively to increasing supply chain
efficiency:
23. 23
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
23
*Estimated FY2014 Revenues
24. 24
AmerisourceBergen Corporation | Services & Solutions
24
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
26. 26
Strategic Association | Transaction Summary
26
Strategic alliance formed by two operations:
Capital Increase
R$ 335.6 million
Primary:
R$ 40 million
Secondary:
R$ 21 million
Joint VentureCapital Increase
Market AmerisourceBergen
56%
R$ 190
million
44%
R$ 146
million
27. 27
2
1
Strategic Association | Transaction Summary
27
• 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;
CapitalIncreaseJointVenture
• 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.