Apresentação Institucional - Hypermarcas 26/01/2016

1. Institutional
Presentation
January/2016

2. Disclaimer
This release contains forward-looking statements that are exclusively related to the prospects of the business, its operating
and financial results, and prospects for growth. These data are merely projections and, as such, based exclusively on our
management's expectations for the future of the business and its continued access to capital to fund its business plan. These
forward-looking statements substantially depend on changing market conditions, government regulations, competitive
pressures, the performance of the Brazilian economy and the industry, among other factors, as well as the risks shown in our
filed disclosure documents, and are therefore subject to change without prior notice.
As a goal to maintain a correlation with the Financial Statements prepared by its external auditors, the considerations and
comments contained herein are prepared on a consolidated viewpoint of the economic group Hypermarcas, and not
necessarily individualized by the various legal entities that compose the group.
In addition, unaudited information herein reflects management's interpretation of information taken from its financial
statements and their respective adjustments, which were prepared in accordance with market practices and for the sole
purpose of a more detailed and specific analysis of our results. Therefore, these additional points and data must also be
analyzed and interpreted independently by shareholders and market agents, who should carry out their own analysis and
draw their own conclusions from the results reported herein. No data or interpretative analysis provided by our management
should be treated as a guarantee of future performance or results and are merely illustrative of our directors' vision of our
results.
Our management is not responsible for compliance or accuracy of the management financial data discussed in this report.
which must be considered as for informational purposes only, and should not override the analysis of our audited
consolidated financial statements for purposes of a decision to invest in our stock, or for any other purpose.
3

3. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials pre-deal
• Financials post-deal
4

4. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials pre-deal
• Financials post-deal
5

5. Phases
6
Sustainable
growth with
value creation
“We’ve done a lot...
but there is still
much to do!”
Focus on Pharma
(2016 onwards)
Restructuring
(2011 – 2015)
Industry
Consolidation
(2007 – 2010)
Embryo in
Home Care & Food
(2002 – 2006)

6. Business overview
3Q15 LTM
* Ranking includes Sweeteners and Condoms
7
37%
33%
30%
Net Rev: R$3.0 bn
RankingKeyfacts
Branded
Prescription
Generics/
Smart
Generics
OTC/
Consumer
Health
#1 Aché Hypermarcas EMS
#2 Sanofi Sanofi Hypermarcas
#3 Eurofarma Bayer Sanofi
#4 Novartis Boehringer Novartis
#5 Hypermarcas Takeda Teuto
3Q15 LTM revenue
breakdown
Branded
Prescription
(ex-patents)
OTC/
Consumer
Health *
Generics/
Smart
Generics
Focus in Brazil Long Experience
Fast growing/
resilient market
Diversified Portfolio

7. Ownership and listings
¹ LTM November average
² October 31, 2015
³ December 11, 2015
SOURCE: BM&F Bovespa and Hypermarcas
8
Ownership structure Listings
• Sao Paulo Stock Exchange: - HYPE3
- BRHYPEACNOR0
• Ibovespa Index Ranking: 31/63
• Trade volume¹: 2.6 MM shares/day
• ADR (HYPMY)²: 10.4 MM shares outstanding
• Market Cap³: R$ 14 B
20.1%
14.8%
6.0%
59.1%
Igarapava Participações S.A.
Maiorem S.A. de C.V
Other Controlling Shareholders
Free Float
(Founder)
632.2 MM Shares

8. Pharma market
9
Business
Segment
Product
Category
Demand
Drivers Mkt Size
Mkt Growth
Δ2014-2015
Patents
Branded
Prescription
Trade
DTC
5%
60%
17%
18%
• RX with/without
prescription retention
• OTX
• Dermocosmetics
9.8%R$24.9BPhysicians
• OTC
• Nutritionals
• Related products
14.2%R$6.9BConsumer
• Patents 25.5%R$2.3BPhysicians
• Generics
• Smart Generics
11.8%R$7.7BPharmacist

9. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials pre-deal
• Financials post-deal
10

10. Attractive market characteristics
11
• Low levels of per capita consumption
• Ageing of population
• Fast growing, resilient market
• High entry barriers

11. Low levels of per capita consumption
SOURCE: Organization for Economic Co-operation and Development (OECD), 201212
3,484
1,109
1,577
3,289
3,649
4,288
4,811
8,745
OECD Avg.
Brazil
Chile
UK
Japan
France
Germany
USA
Per Capita, USD PPP
Healthcare Expenditure per Country (USD/year)
7.9x

12. Fast ageing of population
SOURCE: IBGE13
Population 60+
MM People
CAGR
2.8%
14
20
29
42
54
66
74
8%
10%
14%
19%
24%
29%
34%
0%
5%
10%
15%
20%
25%
30%
35%
0
10
20
30
40
50
60
70
80
90
2000 2010 2020 2030 2040 2050 2060

13. Potential for higher drug consumption
SOURCE: http://hpi.georgetown.edu/agingsociety/pubhtml/rxdrugs.html (10.12.2015)14
Expenditure on prescription drugs
USD per year
811
560
262
124
65-79
50-64
35-49
18-34
6.5X

14. Fast growth within Emerging Markets
SOURCE: IMS Health (Global Use of Medicines in 2020), 201515
4.2%
5.2%
6.7%
6.8%
Indonesia
China
Brazil
India
Daily Doses Per Capita (CAGR 2015-20)

15. Resilient market
SOURCE: IMS Health (PMB-PPP Sep15); IBGE16
7.7%
9.4%
7.1%
5.4%
11.1%
10.6%
11.6% 11.4%
12.3%
11.9%
8.5%
3.5%
2012 2013 2014 2015 YTD
Pharma
Market
Nominal GDP
Retail Sales

16. Large and growing pharmaceutical market
(R$ billion)
SOURCE: IMS Health – PPP17
32.5
35.9
40.0
43.4
2012 2013 2014 2015 LTM
CAGR 12-2015 LTM: 11.1%

17. Brazil pharma market overview
SOURCE: IMS Health18
Expected Market Growth (2014-2019) of 8.3% p.a. in USD
Ranking 2014* Trends Ranking 2019*
1st United States
2nd China
3rd Japan
4th Germany
5th France
6th USD 24 bn
7th Italy
1st United States
2nd China
3rd Japan
4th Germany
5th USD 36 bn
6th France
7th Italy
• Low levels of disease
treatments
• Underdeveloped health
system
• Aging of population
• Still low penetration
of generics (25%* of
the Pharma Market)
• Peak in economically
active population

18. High entry barriers
Regulator
• Long approval
process
• Strict control of
manufacturers
and products on
the market
19
Distribution
• ~70k drugstores
• Low chain
concentration
• ~170 distributors
• Continental Wide
Country (27
states; 5 regions;
+200m people)
Power of brands
• Strong local brands
• Pure generics are
also branded at
Retail level

19. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials pre-deal
• Financials post-deal
20

20. Business overview
* Excluding patents
SOURCE: IMS Health – PMB- PPP Oct15; Hypermarcas
21
37%
33%
30%
R$3.0 bn
Branded
Prescription
Generics/
Smart
Generics
OTC/
Consumer
Health
3Q15 LTM revenue
breakdown Hypermarcas
Rank
PPP
Share
Growth
Opportunities
OTC/
Consumer
Health
Generics/
Smart Generics
Branded
Prescription*
#1
#2
#5
14.7%
14.2%
4.8%
• Launch new product
concepts through brand
extensions
• Improve retail space
• Increase market presence,
especially at retails chains
• Improve portfolio coverage
especially at high value
products
• Leverage on physicians
visit network
• Launch new products
with untapped demand

21. Pharma scope
22
Cosmetics Food
Pharmaceuticals
Nutra-
ceuticals

22. Long Experience in the Pharma Market
23
1950 1970 1980 1990 2000 2010 20201960
1970
1953
1970s
1959
Traditional Pharma company with strong brands with leadership
in the market, mainly in OTC, prescription and
dermocosmetics, such as Coristina D, Polaramine, Celestamine,
Diprospan, Quadriderm, Episol, among others.
Traditional company of OTC and prescription brands with over
50 years in the market. Its portfolio includes leader brands such
as Rinossoro, Tamarine, Lisador and Mioflex.
Owner of the most traditional brands in the Brazilian OTC
market, such as Apracur, Atroveran, Benegrip, Biotônico
Fontoura, Doril, Engov, Epocler, Estomazil, Gelol, Lactopurga,
Melhoral, Merthiolate, among others.
Leader in branded generics and with an incipíent portfolio of
generics and expertise in the application for the registration of
off-patent copies with the regulator. Examples of leading
products are Neosoro, Massageol and Torsilax.

23. Constant gains in market share
SOURCE: IMS Health – PMB – PF (nov-15)24
7.5%
8.0%
8.5%
9.2%
9.9%
10.5%
2010 2011 2012 2013 2014 nov-15 LTM

24. Large scale production facility
25
323,000 m2 land 120,000 m2 constructed area 3,700 employees
Distribution
Center
Solids/
Raw
Materials
Quality
Control
Aerosol
Efervecent
Dermo Liquids
Semisolids
Injectables
R&D
PenicilinSolids
Semisolids
Liquids
R&D

25. High production capacity
SOURCE: Hypermarcas (per year)26
Tablets, capsules,
coated tablets,
pills and
effervescent
10 billion
Injectable and
ophthalmic
45 million
Aerosols
11 million
Liquids, creams,
oils, ointments,
lotions and jellies
276 million

26. 5,8%
4,1%
3,9%
3,5%
3,4%
2,9%
2,8%
2,8%
2,5%
2,3%
66,1%
Diversified revenue base
SOURCE: Company Data, Sept. YTD 201527
Other
products
(Branded Presc.)
(Trade)
(Branded Presc.)
(Branded Presc.)
(Branded Presc.)
(DTC)
(Branded Presc.)
(DTC)
(DTC)
Top 10
brands
~ 34%
net sales
(DTC)

27. Increasing importance of innovation
7.7%
8.4%
11.4%
15.7%
2012 2013 2014 YTD 2015
28 SOURCE: Company data, Sept 2015. % Revenue from products launched over the past 3 years.

28. Business: Branded Prescription
29
37%
33%
30%
Branded
Prescription
Generics/
Smart
Generics
OTC/
Consumer
Health
Products
Strategy
Demand Driver
• Drugs promoted to
Physicians (OTC / RX)
• Intensify therapeutic
classes expansion
• Physician prescription

29. Branded Prescription
Leverage on physician visit network
SOURCE: IMS Health; Hypermarcas30
10.4%
1.1%
9.7%
11.9%
0.6%
2.7%
4.8%
87%
74%
85%
74%
78%
55%
69%
Orthopaedics
Psychiatry
Dermatology
Paediatrics
Cardiology
Gynecology
General Practice
Main Visited
Specialties
Coverage
(% of prescriptions – R$ PF)
Market Share
(% R$ PF) Portfolio

30. Branded Prescription
Leverage on physician visit network
1 201631
Physicians Coverage
As % of total market demand
Specialties
Covered
Visited
Physicians
Total Weighted
Coverage
93%1
67%
62%
• Leadership in Pain/Fever
Pediatrics
• Leader in Rx for Sun
Protection and Corticoids
Dermatology
• Leverage “General Practice”
(Addera/Tamarine)
Gynecology
• Asthma/Vitamins
• Nutraceuticals/
Acne
• Contraceptives
Opportunities

31. Branded Prescription
Leverage on physician visit network
32
• +100 reps and 12 managers
• +30,000 contacts/month
• New medical demand executive
• HyperSelling
• Optimization Panel/Grid
• Diagnosis clinic
• Demand App
+ Medical
visits
+ Team
efficiency
+ Demand
tools
Action

32. Branded Prescription
Leverage on physician visit network
33
Actions in several companies
• Diagnosis of Osteoporosis and Osteopenia with
prescription of Addera
• Monitoring glucose, cholesterol and
triglycerides, and prescription of Lipanon
• APP automatically interacts with physical
material delivering technical content
• Increased technology to reach physicians
engagement
Clinic Days Demand App

33. Branded Prescription
Launch new products with untapped demand
34 SOURCE: IMS Health; Hypermarcas
Current Pending Approval Under Development Target
37%
75%
20%
16%

34. Branded Prescription
Launch new products with untapped demand
35 SOURCE: IMS Health – PMB PF Oct15 YTD
Concept
• Hypovitaminosis D
- Fractures
- Muscular strength
- Cardio diseases
• Treatment dosage
- Supplementation
- Attack dosage
10.4
12.5
14.3 14.9
12.9
15.4
25.0
32.2 31.2
36.7
50.1
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
290%
Pills
(Mar-2014)
Sell-Out
(R$ MM) 2016

35. 36
Branded Prescription
Launch new products with untapped demand
Concept
• Continuous jet
• 360º
• Adjustable flux
SOURCE: IMS Health – PMB PF Oct15 YTD
32%
2012
61.5
58.9
46.6
44.5
2015
YTD
OCT
20142013
Sell-Out
(R$ MM)

36. 37
Branded Prescription
Launch new products with untapped demand
SOURCE: IMS Health – PMB PF Oct15 YTD
30% of Revenue from products
launched in <1 Year
+4pp
Market Share
+27%
Demand
• Faster renewal of portfolio
• Line extensions
Innovation
• Increased demand team
• Focus on POS operation
• Proximity to patients
Execution
• Category gap coverage
• Intensification in categories
with lower share
Diversification

37. Business: OTC / Consumer Health
38
Products
Strategy
Demand Driver
• OTC
• Condoms
• Sweeteners
• Intensify brand extensions
• Mass media
37%
33%
30%
Branded
Prescription
Generics/
Smart
Generics
OTC/
Consumer
Health

38. SOURCE: IMS Health – PMB Oct’1539
OTC / Consumer Health
New products concepts through brand extensions
Concept
• High awareness
• Stronger formulation
• Product concept: “Good
even for migraines”
31.7
30.0
30.1
14.3
2013 2014 2015
Doril family
Sell-Out
(R$ MM)
Doril
Enxaqueca
Doril

39. SOURCE: IMS Health – PMB Oct’1540
OTC / Consumer Health
New products concepts through brand extensions
145
171
2014 2015
18%
Mkt share
+ 0.5 p.p.
Sell-Out
(R$ MM)

40. 41
OTC / Consumer Health
Improve retail space
Before After

41. 42
OTC / Consumer Health
Improve retail space
CoverageClients Stores
21
3
8
1
1
1
1
2
2

42. Business: Generics / Smart Generics
43
Products
Strategy
Demand Driver
• Generics (Large Chains)
• Smart Generics (M&Ps)
• Defend & grow selectively
• Pharmacist
recommendation
37%
33%
30%
Branded
Prescription
Generics/
Smart
Generics
OTC/
Consumer
Health

43. SOURCE: IMS Health; Hypermarcas44
52% 50%
38%
33% 31%
29%
15% 19%
33%
Hypermarcas 2014 Hypermarcas 2015 Market
Relevance
Large retail chains
Mid-sized chains
Independent
Generics / Smart Generics
Increase market presence, especially at retails chains

44. SOURCE: IMS Health; Hypermarcas45
Generics / Smart Generics
Improve portfolio coverage especially with high value products
Current Pending
Approval
Under
Development
Target
71%
91%
14%
7%

45. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials pre-deal
• Financials post-deal
46

46. Net revenue & EBITDA
(R$ Million)
47
Net revenue Adjusted EBITDA (R$ Million)
CAGR (2011-2Q15 LTM): 11.9% CAGR (2011-2014 LTM): 14.0%
3,325
3,874
4,259
4,680
5,064
2011 2012 2013 2014 3Q15 LTM
695
865
1,002
1,106
1,135
2011 2012 2013 2014 3Q15 LTM
20.9%
22.3%
23.5%
23.6%
22.4%

47. Gross margin & Expenses
48
Gross margin
(%)
SG&A ex-marketing
(%)
Marketing
(%)
27.4%
23.7%
22.7%
21.1% 20.4%
2011 2012 2013 2014 3Q15
LTM
60.3% 62.2%
64.5% 63.7%
61.5%
2011 2012 2013 2014 3Q15
LTM
19.0% 18.3%
19.6%
21.0% 20.6%
2011 2012 2013 2014 3Q15
LTM
+1.2 pp
-7.0 pp
+1.6 pp

48. Increasing profitability
11.9%
14.0%
21.6%
Net Revenue Adjusted EBITDA Net Income*
49
CAGR
(2011-3Q15)
* 2012-3Q15

49. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials pre-deal
• Financials post-deal
50

50. Net debt reduction
51
Net debt / Adjusted EBITDA*Debt Profile
3.9x
3.1x
2.9x
2.6x
2.9x
-0.4x
2011 2012 2013 2014 3Q15 3Q15
proforma
3T15
Gross Debt 5,477.7
Cash (1,616.8)
Net Debt 3,860.9
Hedge (524.3)
Net Debt after Hedge 3,336.6
(3,800.0)
Net debt after Cosmetics Sale (463.4)
Proceeds from Cosmetics Sale
3Q15
* LTM EBITDA before non-recurring expenses and other non-cash expenses

51. Pro forma liquidity
(Sept/15; R$ billion)
52
Continuing Operations Discontinued Operations
• Net Income of Discontinued Operations to be a line on P&L
• P&L to reflect results of Continuing Operations
• 2015 P&L (and 2014 comparison) to adopt this format
• Pharma division
• Condoms
• Sweeteners
• Beauty business
• Disposables business

52. Pro forma P&L
(3Q15 LTM)
53
Non-audited estimates
Net Revenue 5,063.7 100.0% 3,011.2 100.0%
Gross Profit 3,115.3 61.5% 2,288.1 76.0%
Sales (777.0) -15.3% (459.6) -15.3%
Marketing (1,042.2) -20.6% (790.1) -26.2%
G&A (254.2) -5.0% (156.4) -5.2%
Other (148.1) -2.9% (29.7) -1.0%
Adjusted EBITDA 1,135.2 22.4% 948.4 31.5%
Net Financial Expenses (508.1) -10.0% (508.1) -16.9%
Discontinued Op. Net Income 0.0 0.0% 62.4 2.1%
Net Income 348.4 6.9% 348.4 11.6%
Old report
(Continuing + Discontinued)
New report
(Continuing only)
R$ million

53. Guidance
54
EBITDA of Continuing Operations around R$1.1 billion

54. Share Performance
Source: Bloomberg as of December 11, 201555
Return* YTD LTM 24m 36m 48m
Since
IPO
Hype3 37% 39% 25% 48% 171% 173%
Ibovespa -9% -9% -10% -24% -21% -30%
Icon -3% -3% 10% 10% 54% 143%

55. 56
Phone: +55 (11) 3627-4242
ir@hypermarcas.com.br
www.hypermarcas.com.br/ir