Hypermarcas Apresentação Corporativa - Set/2016

1. Institutional
Presentation
September/2016
V5

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.
2

3. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials
3

4. Business overview
4
39% 30%
31%
Net Rev: R$3.1 bn
Gross Margin: 74.1%
RankingKeyfacts
Branded
Prescription
Generics
Consumer
Health
#1 Hypermarcas Aché EMS
#2 Sanofi Sanofi Hypermarcas
#3 Bayer Eurofarma Sanofi
#4 Boehringer Novartis Novartis
#5 Takeda Hypermarcas Teuto
Revenue Breakdown
Branded
Prescription¹
Consumer
Health Generics²
Focus in Brazil Long experience
Fast growing/
resilient market
Diversified portfolio
SOURCE: Company financials – 2Q16 LTM; IMS Health; Hypermarcas. ¹ Ex-patents. ² Generics includes Branded Generics.

5. Ownership and listings
¹ July 25, 2016 LTM
² July 14, 2016
³ July 25, 2016
SOURCE: BM&F Bovespa; Hypermarcas
5
Listings
• Sao Paulo Stock Exchange: - HYPE3
- BRHYPEACNOR0
• Indexes with Hypermarcas:
• Ibovespa Index Ranking³: 35/59
• Trade volume¹: 2.9 MM shares/day
• ADR (HYPMY)²: 6.4 MM shares outstanding
• Market Cap³: R$16 B (USD5 B)
Ownership structure
20.1%
14.8%
6.0%
59.1%
Igarapava Participações S.A.
Maiorem S.A. de C.V
Other Controlling Shareholders
Free Float
Founder
Free Float
Maiorem
Others
Controlling
Group
40.9%

6. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials
6

7. Pharma market
SOURCE: IMS Health
7
2014 Trends 2019
1st United States
2nd China
3rd Japan
4th Germany
5th France
6th USD24 bn
7th Italy
1st United States
2nd China
3rd Japan
4th Germany
5th USD36 bn
6th France
7th Italy
• Aging
• Underdeveloped health
system
• Treatments’ low levels
• Generics low
penetration of generics
(25% of market)
• Peak in economically
active population

8. Low levels of per capita consumption
SOURCE: Organization for Economic Co-operation and Development (OECD), 2012
8
3,484
1,109
1,577
3,289
3,649
4,288
4,811
8,745
OECD
Brazil
Chile
UK
Japan
France
Germany
USA
Healthcare Expenditure per Country
(USD/year)
7.9x

9. SOURCE: IMS Health, as of 2014
9
The largest market in a fragmented region: Latin America
#1
#2
#3
#4
#5
Brazil
USD24,3 bn
53%
Mexico
USD9,7 bn
21%
Argentina
USD3,8 bn
8%
Colombia
USD3,8 bn
8%
Chile
USD2,2 bn
5%Others
USD2,3 bn
5%
Latin American Market
Locals are dominant and
focused in their markets
Absence of strong regional
leaders
Brazilian Ranking
EMS
Teuto
Aché
Sanofi/Medley
Hypermarcas

10. Fast ageing of population
SOURCE: IBGE
10
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
1mm
p.y.

11. Potential for higher drug consumption
SOURCE: IBGE (Consumer Expenditure Survey 2008-09); Values readjusted by inflation (IPCA) to April 2016.
11
Prescription Drugs Expenditure
(R$ per month / family)
205.2
198.2
134.1
99.7
73.1
60.0
46.4
70+
60-69
50-59
40-49
30-39
20-29
10-19
4.3x

12. Resilient market
SOURCE: IMS Health (PMB-PPP March 2016); IBGE
12
9.7%
10.7%
5.7%
3.5%
12.5%
9.8%
10.5%
12.6%
11.7%
11.6%
7.3%
3.1%
2013 2014 2015 2016 YTD
Pharma
Market
Nominal GDP
Retail Sales

13. Retail pharma market
13
Business
Segment
Product
Category
Demand
Driver
Market
Size
Patents
Branded
Prescription
Trade
Direct
to Consumer
5%
60%
17%
18%
• RX with/without
prescription retention
• OTX
• Dermocosmetics
R$24.9BPhysicians
• Over-the-counter
• Nutritionals
• Related products
R$6.9BConsumer
• Innovative patent protected R$2.3BPhysicians
• Generics
• Smart Generics
R$7.7BPharmacist
SOURCE: IMS Health Oct. 2015

14. Retail pharma market
# companies to reach 42% of market share
Pharma Retail
(% Sales)
42%58%
Larger
Retail
Chain
Smaller Retail
Chain &
Independent
SOURCE: IMS Health World Review Conference 2016 (May 5, 2016; Dinâmicas e Perspectivas do Mercado Farmacêutico da
América Latina e do Brasil); IMS PMB-PPP February 2016; Hypermarcas. Larger retail chains are the Abrafarma members.
* Chains that are member of Brasil Pharma; also listed in Brazil.
75 K Point of Sales (POS)
14
67 K POS 6 K POS
Larger Retailers (28)
Companies listed in Brazil
*
*
*
Manufacturer (6)

15. High entry barriers
Regulator
• Long approval
process (3-5 years)
• Strict control of
manufacturers,
products and
retailers
15
Fragmented Distribution
• Continental country
(27 states; >200mm people)
• ~70k point of sales
• 18 larger chains
• ~200 distributors
Powerful Local Brands
• All generics are branded at retail as
most of the world (ex-US & Canada)
1960 2016

16. Large and growing pharmaceutical market
(R$ billion)
SOURCE: IMS Health – PPP (June 2016).
16
30.9
34.0
37.2
42.1
2012 2013 2014 2015
CAGR 2012-15: 10.9%

17. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials
17

18. 39% 30%
31%
Business overview
* Excluding patents
SOURCE: IMS Health – PMB-PPP; Hypermarcas – 2Q16 LTM
18
Hypermarcas
Rank
Market
Share
Growth
Opportunities
Consumer
Health
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
Revenue Breakdown
Branded
Prescription
Generics
Consumer
Health

19. Hypermarcas evolution
19
Sustainable
growth with
value creation
Focus on Pharma
(2016 onwards)
Restructuring
(2011 – 2015)
Industry Consolidation
(2007 – 2010)
Embryo in
Home Care & Food
(2002 – 2006)

20. Long experience in the pharma market
20
1950 1970 1980 1990 2000 2010 20201960
1970
1953
1970s
1959
Strong brands with leadership, mainly in
Prescription, OTC and Dermocosmetics
OTC and Prescription brands with over 50 years in the market
Most traditional brands in the Brazilian OTC
market
Leader in branded generics and with an incipient portfolio
of generics, also expertise in the application for the
registration of off-patent medication

21. Pharma scope
21
Pharmaceuticals
CosmeticsFood
Dermo-
cosmetics
Nutra-
ceuticals
Nutritionals
Nutri-
cionals

22. Consistent gains in market share
SOURCE: IMS Health – PMB–PF (June 2016)
22
7.5%
8.0%
8.5%
9.2%
9.9%
10.5%
2010 2011 2012 2013 2014 2015

23. 5.9%
4.7%
4.1%
4.1%
3.4%
2.8%
2.7%
2.6%
2.4%
2.3%
65.0%
Diversified revenue base
SOURCE: Company data, 2015
23
Other
products
(Branded Presc.)
(Generic)
(Branded Presc.)
(Branded Presc.)
(Branded Presc.)
(Consumer Health)
(Branded Presc.)
(Consumer Health)
(Consumer Health)
Top 10
Brands:
~35% sales
(Consumer
Health)

24. Increasing importance of innovation
7.7%
8.4%
11.4%
17.7%
2012 2013 2014 2015
24
SOURCE: Company data, 2015. % Revenues from pharmaceutical products launched over the past 3 years.
Innovation
(% Net Revenues)

25. Diversified distribution
25
SOURCE: Company Data, 2016
• Continental country
(27 states; 204mm people)
• 28 large chains
• ~230 distributors
Brazil has a fragmented
distribution
34%
Direct
Channel
(51 clients)
Indirect
Channel
(69 clients)
46%
Distributor/
Wholesaler
Retailer
Warehouse
Distributor
delivers
Hypermarcas
takes orders
Logistics
Operation
19%
(113 clients)
75,300 Stores
Hypermarcas reaches 100% of POS in Brazil

26. New Business Model
26
Branded
Prescription
Generics
Consumer
Health
“Go to Market” Platform
Innovation Platform
• Business strategy
• Execution control
• Market Insights
• Technical capability
• Infrastructure
• Global Network
• Low cost operation
• Strong demand generation
• Broad distribution

27. Large scale production facility
27
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

28. High production capacity
SOURCE: Hypermarcas, per year
28
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

29. New Innovation Center Under Development
29
• Located in Alphaville – São Paulo
• Total area of 4,000 m2
• Research with consumers and physicians
• Development of new products
• Start of operations: 4Q16

30. Branded Prescription
30
Products
Strategy
Demand Driver
• Drugs promoted to
Physicians (OTC / RX)
• Intensify therapeutic
classes expansion
• Physician prescription
39% 30%
31%
Branded
Prescription
Generics
Consumer
Health
Revenue Breakdown

31. Branded Prescription
Launch new products with untapped demand
31
Current Pending Approval Under Development Target
37%
75%
20%
16%
Target Market (Retail)
(R$ million)
SOURCE: IMS Health; Hypermarcas
Ps: Share of the market in value that Hypermarcas competes

32. Branded Prescription
Leverage on physician visit network
SOURCE: IMS Health (Factory Price); Hypermarcas
32
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
Largest
Specialties
Physician Visitation
(% of prescriptions; Value) Market Share Portfolio

33. Branded Prescription
Leverage on physician visit network
¹ 2016
33
Physicians Coverage
As % of total market demand
Covered
Specialties
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

34. Branded Prescription
Launch new products with untapped demand
34
SOURCE: IMS Health – PMB PF Oct15 YTD
Concept
• Hypovitaminosis D
- Fractures
- Muscular strength
- Cardio diseases
• Treatment dosage
- Supplementation
- Attack dosage
9
29 43 36 29 29
21
73
93
15
49
64
9
29
43
73
151
186
2011 2012 2013 2014 2015 2T16
LTM
Pills
(Mar-2014)
Sell-Out (R$ million) 2016 Innovation
GelCap.TabletGelCap.TabletGelCap.Tablet
1 cm 2 cm0 cm
2015
2016
2015
2016
2015
2016
Drops
Pills
Pills
(Attack)
CAGR 96%

35. 35
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

36. Consumer Health
36
Products
Strategy
Demand Driver
• OTC
• Sweeteners
• Intensify brand extensions
• Mass media
39% 30%
31%
Branded
Prescription
Generics
Consumer
Health
Revenue Breakdown

37. SOURCE: IMS Health – PMB Oct’15
37
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
Sell-Out
(R$ million)
Doril
44.4
48%

38. SOURCE: IMS Health – PMB Oct’15
38
Consumer Health
New products concepts through brand extensions
145
171
2014 2015
18%
Mkt share
+ 0.5 p.p.
Sell-Out
(R$ million)

39. 39
Consumer Health
Improve retail space
Before After
• All drugs (OTC & Prescriptions) were
mixed behind the counter
• OTC is organized per category and
“over the counter”
• Sales increase
• 30% in Value
• 23% in Volume

40. Generics
40
Products
Strategy
Demand Driver
• Generics (Large Chains)
• Smart Generics
(a.k.a. Similars; M&Ps)
• Defend & grow selectively
• Pharmacist
recommendation
39% 30%
31%
Branded
Prescription
Generics
Consumer
Health
Revenue Breakdown

41. SOURCE: IMS Health; Hypermarcas
41
52% 50%
38%
33%
31%
29%
15% 19%
33%
Hypermarcas 2014 Hypermarcas 2015 Market
Distribution Breakdown
Large retail chains
Mid-sized chains
Independent
Generics
Increase market presence especially at retails chains

42. 42
Generics
Improve portfolio coverage especially with high value products
Current Pending
Approval
Under
Development
Target
71%
91%
14%
7%
Target Market (Retail)
(R$ million)
SOURCE: IMS Health; Hypermarcas
Ps.: Share of the market in value that Hypermarcas competes.

43. Agenda
• Overview
• Brazil Pharma Market
• Our Business
• Financials
43

44. 44
* Calculado com o EBITDA Ajustado dos últimos 12 meses
44
2014 ∆2015
Ps.: Margins calculated on total net revenues (except NR ex-3rd parties)
Net Revenues ex-3rd Parties 2,733.4. 100.0% 2,954.7. 100.0% 8.1% - .
Gross Profit 2,091.9. 75.6% 2,210.1. 74.8% 5.7% -0.8 p.p.
Marketing Expenses (729.1) -26.3% 766.0. -25.9% 5.1% 0.4 p.p.
Selling Expenses (360.1) -13.0% (383.5) -13.0% 6.5% - .
G&A Expenses (156.0) -5.6% (157.9) -5.3% 1.3% -0.3 p.p.
Other Expenses (29.4) -1.1% (16.0) -0.5% -45.8% 0.6 p.p.
Depreciation & Amortization 68.6. 2.5% 66.4. 2.2% -3.2% -0.3 p.p.
EBITDA 885.2. 32.0% 950.3. 32.1% 7.3% 0.1 p.p.
Non-Recurring / Non-Cash Exp. 27.1. 1.0% 32.0. 1.1% 18.1% 0.1 p.p.
Adjusted EBITDA 912.3. 33.0% 982.3. 33.2% 7.7% 0.2 p.p.
Financial Result (411.3) -14.9% (515.9) -17.4% 25.4% -2.5 p.p.
Taxes (67.5) -2.4% (22.5) -0.8% -66.6% 1.6 p.p.
Net Income 337.9. 12.2% 345.5. 11.7% 2.2% -0.5 p.p.
2015 Results (Continuing Operations)
(R$ million)

45. 45
45
2Q15 ∆2Q16
2Q16 Results (Continuing Operations)
(R$ million)
Net Revenues 724.3. 100.0% 807.1. 100.0% 11.4% - .
Gross Profit 553.0. 76.4% 611.6. 75.8% 10.6% -0.6 p.p.
Marketing Expenses (179.5) -24.8% (193.4) -24.0% 7.7% 0.8 p.p.
Selling Expenses (97.6) -13.5% (103.3) -12.8% 5.9% 0.7 p.p.
G&A Expenses (44.5) -6.2% (41.5) -5.1% -6.8% 1.1 p.p.
Other Expenses (5.7) -0.8% 16.4. 2.0% - 2.8 p.p.
Depreciation & Amortization 16.7. 2.3% 14.7. 1.8% -12.2% -0.5 p.p.
EBITDA 242.0. 33.4% 305.0. 37.8% 26.0% 4.4 p.p.
Financial Result (110.2) -15.2% (51.1) -6.3% -53.6% 8.9 p.p.
Taxes (22.6) -3.1% (63.1) -7.8% -179.1% -4.7 p.p.
Net Income 92.4. 12.8% 176.1. 21.8% 90.5% 9.0 p.p.

46. Net Debt Reduction
(R$ million)
46
Net Debt / EBITDA*Debt Profile
3.9x
3.1x 2.9x
2.6x
1.7x
-0.8x
2011 2012 2013 2014 2015 LTM
Proforma
3T15
Gross Debt 1,918.1
Cash (1,836.1)
Net Debt 82.1
Hedge (334.2)
Net Debt after Hedge (252.2)
(540.0)
Net Debt after RB Deal (792.2)
Remaining Proceeds from RB Deal
2Q16
* Until 2015, Adjusted EBITDA (EBITDA before non-recurring expenses and other non-cash expenses)

47. 2016 guidance
47
EBITDA of Continuing Operations around R$1.1 billion

48. Company’s Main Tax Shields (1/4)
48
EV/EBITDAP/E Cash flowReturns Net income
Possible analysis
impacts
Tax Shield Summary
Source: Hypermarcas
¹ Federal tax credits are usable to pay any federal tax payment
R$ Million
Expense for
Tax only
Tax Rate Cash Value* Origin
Goodwill 1.729 34% 588
- Acquisitions; Amortizable for tax purporses only
- It does NOT impact the PnL, only the Cash Flow
Income Losses 1.008 - Negative pretax due to Goodwill amortization
Recoverable Taxes 280
- Withholding tax from investments
- Credits from Acquisitions
Total 1.876
* - Sum of future tax shields

49. Company’s Main Tax Shields (2/4)
49
EV/EBITDAP/E Cash flowReturns
Source: Hypermarcas
Net income
Possible analysis
impacts
Goodwill amortization
• Acquisitions
• Reduces Pretax for Tax Purposes only (i.e. an extra
expense for tax calculation)
• Difference between P&L and Fiscal Authorities
calculation is deffered
• Earnings Release (Table with Remaining Goodwill
Amortization for Tax Purposes)
(R$ million)
2016 430
2017 555
2018 541
2019 198
2020 4
Total 1,729
Expense for Tax
Purposes only; it does
NOT impact P&L
Tax Rate 34%
Tax Shield 588
Reason
Information
source
Effect
2Q16

50. Company’s Main Tax Shields (3/4)
50
Source: Hypermarcas
Tax Credits from Income tax losses carry-forward
(R$ Thousand)
June 30, 2016
• Explanatory Note 23(a) –
Quarterly Financial
Statements
EV/EBITDAP/E Cash flowReturns Net income
Possible analysis
impacts
• Lower pretax due to goodwill
amortization
• It is actually an Tax credit (not
another expense as goodwill
amortization)
• It pays up to 30% of Federal
taxes due in a given year
Tax Credit
Reason
Information
source
Effect
1,007,774
-
62,005
84,913
58,467
25,160
101,431
1,339,800

51. Company’s Main Tax Shields (4/4)
51
Recoverable Taxes
EV/EBITDAP/E Cash flowReturns Net income
Possible analysis
impacts
• Withholding tax from financial
investments
• Tax credits from acquisitions
• It is actually a Tax credit (not
another expense as Goodwill
Amortization)
• Can be used to offset Federal tax
payments
• Balance sheet (Recoverable
Taxes)
• Explanatory Note 13 – Quarterly
Financial Statements
Reason
Information
source
Effect
Tax Credit
June 30, 2016
Federal Taxes¹ 280,216
172,966
259,583
107,250
539,799
Source: Hypermarcas; it includes continuing and discontinued operations

52. 52
Phone: +55 (11) 3627-4242
ir@hypermarcas.com.br
http://www.hypermarcas.com.br/ir

53. Backups

54. 54
Consumer Health
Improve retail space
Before After
Alphabetical Order
• All drugs (OTC & Prescriptions) were
mixed behind the counter
• OTC is organized per category and
“over the counter”
• Sales increase
• 30% in Value
• 23% in Volume
OTC behind the counter Counter removed

55. Retailers X Manufacturers
55
11
278
Manufacturer
All Pharma
Chains
(>5 stores)
# Companies
(56% market share)
Retail channel
(% Sales)
46% 46% 46% 44%
54% 54% 55% 56%
2012 2013 2014 2015
All Pharma
Chains
(>5 Stores)
Independent
Sources: IMS Health World Review Conference 2016 (May 5, 2016; Dinâmicas e Perspectivas do Mercado
Farmacêutico da América Latina e do Brasil); IMS PMB-PPP February 2016; Hypermarcas. Retailers with more than
five stores are considered pharma chains.
25.3x
100%

56. Brazilian Pharma Retailers
56
Stores
87,0% 86,4% 86,1% 86,4%
13,0% 13,6% 13,9% 13,6%
2012 2013 2014 2015
All Pharma
Chains
(>5 stores)
Independents
Sources: IMS Health World Review Conference 2016 (May 5, 2016; Dinâmicas e Perspectivas do Mercado
Farmacêutico da América Latina e do Brasil); IMS PMB-PPP February 2016; Hypermarcas. Pharma retailers with at
least five stores are considered a chain.
Sales
46,4% 46,0% 45,5% 44,4%
53,7% 53,9% 54,5% 55,6%
2012 2013 2014 2015
100% 100%