Apresentação Institucional Hypermarcas Agosto 2017

1. Institutional
Presentation
August/2017
V2

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
• Brazilian Pharma Market
• Our Business
• Financials
3

4. OTC
56%
39%
18%
22%
21%
Branded
Rx
Consumer
Health¹
Branded
Generics
OTX
Dermocosmetics
Net Rev: R$3.4 bn
Gross Margin: 74.6%
#1 Hypermarcas Aché NC Farma
#2 Sanofi Eurofarma Hypermarcas
#3 Takeda Sanofi Sanofi
#4 GSK Novartis Cimed
#5 Pfizer Hypermarcas Eurofarma
Business overview
RankingKeyFacts
2016 Revenue Breakdown
Branded Rx²
Consumer
Health
Branded
Generics³
Focus in Brazil Long experience
Fast growing/
resilient market
Diversified
portfolio
SOURCE: Company financials; IMS Health Feb 2017; Hypermarcas. ¹ Includes OTC (Branded, Generic and Similar),
² Ex-patents. ³ Branded Generics includes Generics and Similars.
4

5. Agenda
• Overview
• Brazilian Pharma Market
• Our Business
• Financials
5

6. Pharma market
SOURCE: IMS Health (May 2016)
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
6

7. Main markets growth
SOURCE: IMS Health (Average Expected Growth)
1%
1%
3%
3%
4%
5%
6%
6%
7%
7%
8%
8%
9%
12%
France
Japan
Italy
Spain
Germany
RoW
UK
Global
China
Russia
USA
EM
Brazil
India
Forecasted 2016-21 CAGR
7

8. 50% 52% 54% 56% 58%
50% 48% 46% 44% 42%
2012 2013 2014 2015 2016
58% 61% 64% 65% 67%
42% 39% 36% 35% 33%
2012 2013 2014 2015 2016
Local players gain market share
Multinationals
Value
(R$)
Volume
(Units)
SOURCE: IMS Health 2016
8

9. Low levels of per capita consumption
SOURCE: Organization for Economic Co-operation and Development (OECD), 2012
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

10. Latin American Market
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%
SOURCE: Latin American Markets IMS Health (2014)
The largest market in Latin America
Locals are dominant and
focused in their markets
Absence of strong regional
leaders
10

11. Fast ageing of population
SOURCE: IBGE (2010)
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

12. Potential for higher drug consumption
SOURCE: IBGE (Consumer Expenditure Survey 2008-09); Values readjusted by inflation (IPCA) to February 2017.
Prescription Drugs Expenditure
(R$ per month / family)
200.4
193.6
130.9
97.4
71.4
58.6
45.4
70+
60-69
50-59
40-49
30-39
20-29
10-19
4.4x
12

13. Retail pharma market
Business
Segment
Product
Category
Demand
Driver
Market
Size
Patents
Branded
Prescription
Trade
Direct
to Consumer
5.9%
54.9%
11.5%
22.2%
• RX with/without
prescription retention
• OTX
• Dermocosmetics
R$28.5BPhysicians
• Over-the-counter
• Nutritionals
• Related products
R$5.9BConsumer
• Innovative patent protected R$3.0BPhysicians
• Generics (API)
• Similars
R$11.5BPharmacist
SOURCE: IMS Health PPP Feb 2017
13

14. High entry barriers
Strict Regulator
• Long approval
process (3-5 years)
• Strict control of
manufacturers,
products and
retailers
Fragmented Distribution
• Continental country
(27 states; >200mm people)
• ~70k point of sales
• 28 larger chains
• ~230 distributors
Powerful Local Brands
• All generics are branded at
retail as in most of the World
(ex-US & Canada)
1960 2016
14

15. 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.
75 K Point of Sales
(POS)
67 K POS 6 K POS
Larger Retailers (28)
*
Manufacturer (6)
15

16. Resilient growth
2.0
2.3
2.5
2.8
3.3
3.7
2011 2012 2013 2014 2015 2016
CAGR 2011-16: 11.2% CAGR 2011-16: 13.2%
28.1
30.9
34.0
37.1
42.1
47.7
2011 2012 2013 2014 2015 2016
SOURCE: IMS Health – PMB-PPP (December 2016)
16

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

18. OTC
56%
Business overview
Rank
Market
Share
Growth
Opportunities
Branded Rx²
Branded
Generics
Consumer
Health*
#1
#2
#5
14.8%
14.7%
4.6%
• 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
SOURCE: Company financials; IMS Health Feb 2017; Hypermarcas. ¹ Includes OTC (Branded, Generic and Similar)
² Ex-patents. ³ Branded Generics includes Generics and Similars.
18
Revenue Breakdown
39%
18%
22%
21%
Branded
Rx
Consumer
Health¹
Branded
Generics
OTX
Dermocosmetics

19. Hypermarcas strategic development
2007 - 2010 2012 - 2015 2017 - 2020
Shareholder
Value
Industry
Consolidation
Business
Restructuring
Pharma
Focus
Cycle 1
Cycle 2
Cycle 3
19

20. Key objectives of strategic phases
Industry
Consolidation
Business
Restructuring
Pharma
Focus
2007 - 2011 2012 - 2016 2016 - 2020
• Acquisition of outstanding assets (brands/companies) at attractive valuations
1970s 1953 1959 1943 1970
20

21. Key objectives of strategic phases
Industry
Consolidation
Business
Restructuring
Pharma
Focus
2007 - 2011 2012 - 2016 2016 - 2020
• Developed “outstanding” Go-to-Market platform
• Operations
• Marketing
• Distribution
• Implemented successful product / market strategies
with continuous market share gains
• Successfully executed business portfolio “Churn”
21

22. 45%
59%
100%
55%
41%
2010 2013 2016
Successfully executed business portfolio “churn”
• Materially
improved
capital
structure
• Concentrated
on the most
attractive
Pharma
business
HPC
Pharma
Sale of
Home Care
& Food
Sale of
Cosmetics,
Condoms &
Diapers
SOURCE: Hypermarcas (Net Revenue breakdown)
22

23. Developed the best Go-to-Market platform
• Largest and most productive
Brazilian manufacturing site
• Highest production volume
• Lowest cost producer
• Most horizontal
distribution
- Mom&Pops
- Regional
- Chains
• Largest field
force at store level
(>70% direct access)
• Most productive
sales force at physicians
• Lowest cost media buying
Distribution
Operations
Marketing
Most Productive
Lowest Cost
Best Distribution
23

24. 3.30
2.99
2.66
2.46
1.71
Aché
Teuto
Medley
EMS
Hypermarcas
Brazilian peers
1.4x
1.6x
1.7x
1.9x
COGS per Unit (R$)
SOURCE: Companies’ Financials 2015; IMS Health PMB – Units
24
Player 1
Player 2
Player 3
Player 4

25. Brazilian peers
0.8
0.9
1.2
1.9
Productivity
R$ MM/Rep per Year
SOURCE: IMS Health – PMB-PPP Oct 16
25
Player 1
Player 2
Player 3

26. EBIT Margin
Brazilian peers
SOURCE: Companies' Financials 2015.
12.1%
12.5%
13.9%
27.8%
29.9%
União Química
EMS
Eurofarma
Aché
Hypermarcas
26
Player 1
Player 2
Player 3
Player 4

27. Key objectives of strategic phases
Industry
Consolidation
Business
Restructuring
Pharma
Focus
2007 - 2011 2012 - 2016 2016 - 2020
• Focus on most attractive Pharma sector, leveraging on superior
competitive advantage
• Accelerate organic growth through more assertive “business
innovation”
• Further improve sales & marketing execution capabilities
27

28. Concentrated on most attractive Pharma business
HighLow
Low High
Pharma
Business
Attractiveness
• Aging of population
• Resiliency
• Untapped demand
Competitive Position
• #1 with leadership in many markets
• Diversified portfolio
• Most productive Go-to-Market platform
Accelerate growth
• Leverage on
“outstanding” platform
• Explore underpenetrated
markets
• Widen product offering
28

29. Segment the business in “Strategic Business Units” (SBUs)
Segment Name Market Size
“Direct to
Consumer”
#1
14.8% share
• Brand portfolio
• Merchandising
capabilities
• Media Buying
Success Factor
“Medical
Community”
“Trade”
#5
4.6% share
• Product
innovation
• Sales Force
Productivity
#2
14.7% share
Consumer Health
Branded Prescription
Branded Generics
Hyper Position
R$5.9 B
R$28.5 B
R$11.5 B
• Commercial
policy flexibility
• “Fast copier”
• Distribution
network
SOURCE: IMS PMB Feb 17 LTM
29

30. New organizational structure
30
• Offer opportunities based
on deep knowledge of
global technology
• Efficient innovation process
and execution
• Vertical integration of sales
More focused field teams
• Define innovation needs
based on market insights
and business strategy
Innovation Capabilities
Business Development
Innovation Center
(Hynova)
Consumer
Health
Branded
Prescription
Branded
Generics

31. 6.8%
4.4%
4.2%
3.3%
4.1%
3.0%
2.7%
2.3%
2.9%
2.4%
63.8%
Diversified revenue base
SOURCE: Company data, 2016
Other
products
(Branded Presc.)
(Branded Generic)
(Branded Presc.)
(Branded Presc.)
(Branded Presc.)
(Consumer Health)
(Branded Presc.)
(Consumer Health)
(Consumer Health)
Top 10
Brands:
~36% sales
(Consumer
Health)
31

32. Increasing importance of innovation
17.2%
16.0%
18.8%
23.0%
24.3%
27.6%
2012 2013 2014 2015 2016 2T17
Innovation (% Net Revenue)
Target: 30%
SOURCE: Hypermarcas Sell-in (% Net Revenues; products launched over the past 5 years) Feb 17
32

33. Transfer
Order
33%
(113 clients /
17 distributors)
Diversified distribution
• Continental country
(27 states; 204mm people)
• 28 larger chains
• ~230 distributors
Fragmented distribution
32%
Direct
Channel
(51 clients)
Indirect
Channel
(69 clients)
35%
DistributorRetailer
Warehouse
Distributor
invoices&delivers
Hypermarcas
takesorders
75,300 Stores
Hypermarcas reaches 100% of POS in Brazil
SOURCE: Company Data, 2016 (Feb 17)
33

34. Large scale production facility
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
34

35. High production capacity
SOURCE: Hypermarcas, per year
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
Occupancy
Rate
65%
35

36. Innovation: New Center
• Located in Alphaville – São Paulo
• Total area of 4,000 m2
• Research with consumers and physicians
• Development of new products
36

37. Launch
Preparation
Development and/or
Negotiation
Business Case Construction
Idea Generation
Creation Order
Innovation process
37
Executive Directors
Innovation Committee
Business Committee
CEO
Process Leader
Innovation
Manager
Innovation
Management
D.O.: R&D
Negociation Order
(N.O): Business
Development
Product Manager
and
Project Manager
Development Order (D.O.)
Priorization of Orders (D.O. / N.O.)
Launch Order
Sell – in
Product Strategy Review
Approvers/Committee
Executive Committee
Follow-up Committee

38. Availability of new active substances by country
NOTE: New molecules launched between 2010 and 2014. Availability of molecules in 2015.
SOURCE: IMS Institute for Healthcare Informatics, Dec 2015
128
108
102
88
83 79
73
67
61 60 58
41
USA Germany Great Britain Italy Japan Spain Canada France South Korea Mexico Polonia Brazil
170 new
substances
(2010-14)
Business development - sourcing
R&D
Availability in December/2015
38

39. 1,621
467
1,154
High potential
for partnering
in innovative
products
Late stage
development or
recently launched
products
Yes No
Presence in Brazil
• Fixed dose
combinations
• Extended release
• Inhalation devices
• Transdermal patches
• Nano-tech
• Quick release
• Sub-lingual
• ODT
• Oral films
• Others
70%
SOURCE: Thomson Reuters (Cortellis) and Hypermarcas
39
Availability of new active substances by country

40. NOTE: ¹ Adjusted by inflation. ² Considers products launched before 2008. ³ Considers products launched between 2008-2015
SOURCE: IMS Health - PMB Retail
• Negative
performance of
legacy portfolio
• Growth comes
from new products
-0.8% 7.9%
1
CAGR
11.9
-0.3
3.0
14.6
2012 Legacy New products 2015
2 3
40
Growth source of Brazilian companies

41. 39%
18%
22%
21%
Branded
Rx
Consumer
Health
Branded
Generics
OTX
Dermocosmetics
OTC
56%
Branded Prescription
Products
Strategy
Demand Driver
• Drugs promoted to
Physicians (OTC / RX)
• Intensify therapeutic
classes expansion
• Physician prescription
Revenue Breakdown
41

42. Ranking
#1
#2
#3
#4
#5 4.6%
5.4%
6.3%
6.7%
9.6%
11%
18%
17%
12%
19%
21%
Market Share Growth YoY
Total Market
Company
Branded Prescription
Ranking
SOURCE: IMS Health – PMB-PPP Feb 17 LTM
42

43. 1.9
0.8
0.9
1.2
750
1,300
1,900
2,300
NC - Farma
Eurofarma
Aché
Team size
# representatives
Productivity
R$ MM/Rep per Year
Branded Prescription
Productivity of medical reps team
SOURCE: IMS Health – PMB-PPP Oct 16
43
Player 1
Player 2
Player 3

44. Rank Company Market Share Growth YoY
#1 16.9% 19%
#2 9.0% 10%
#3 9.0% 11%
Total 100.0% 13%
Rank Company Market Share Growth YoY
#1 7.8% 21%
#2 7.3% 12%
#15 2.2% 33%
Total 100.0% 13%
Rank Company Market Share Growth YoY
#1 33.5% 19%
#2 13.3% 28%
#3 11.9% 3%
Total 100.0% 11%
Acute
Chronic
Skincare
Branded Prescription
Portfolio & competitive position
SOURCE: IMS Health – PMB Dec 16
44

45. • Antihypertensives
• Antidepressants
• Antibiotics
• Analgesics
• Anti-inflammatory
• Photoprotection
• Moisturizing
• Anti-aging
Skincare
11%
Skincare
21%
Chronic
63%
Chronic
29%
Acute
26%
Acute
50%
MARKET HYPERMARCAS
R$27.6bn R$1.3bn
Growth
YoY
Growth
YoY
+14%
+13%
+11%
+28%
+11%
+28%
Market
Relevance Relevance
+13%
Acute
Chronic
Skincare
+18%
Therapeutic class examples
Branded Prescription
Portfolio composition
SOURCE: IMS Health – PMB Dec 16
45

46. 1%
11%
1%
10%
12%
1%
3%
5%
Ophthalmics
Orthopaedics
Psychiatry
Dermatology
Peadiatrics
Cardiology
Gynecology
General Practice
Market share
(% R$ PF)
93%
87%
74%
85%
74%
78%
55%
69%
SOURCE: IMS Health (Oct/2016); Hypermarcas
Main
visited specialties
Current
portfolio
Future pipeline
opportunities
Branded Prescription
Portfolio optimization by therapeutic classes
Visitation coverage
(% of prescriptions – R$ PF)
46

47. Marketing / Conceptual
• New treatment concept: attack
(50,000 ui) and maintenance
(7,000 ui & 1,000 ui)
Pharmaceutical Form
• Pills
• Gel caps
4 5 5 7 8 9 9 10 12 12 10 9 9 8 7 7 8 7 7 7 8 7 7 7
4
12
20 20
25
36 41 39 41
48
41 39 40
8
18 19 19
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
SOURCE: IMS Health
Sell-out PPP
R$ MM
Type of
innovation
Hyper
Marketing / Conceptual
• Importance of
Hypovitaminosis D
treatment
• Medical visitation
Pharmaceutical Form
• Liquid
Pharmaceutical Form
Soft Gel Caps
• Modernity &
innovation
• Easy swallowing
• Size reduction
• Exclusivity
7,000/50,000UI
• Preferred by 70%
patients
Drops Pills Gel caps
Branded Prescription
Taking Addera D3 to a new level
cm
47
2011 2012 2013 2015 20162014
66
64
48
46
48
44
32
2728
21
13
2017
65 67

48. 19
22
19 20 20
22
20
22 21
23
4
5
4
4 4
5 9
9
8
9
5
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Liquid Pills Gel Caps
SOURCE: IMS Health - PMB Retail PF (Jun/17) & internal analyses
InfantAdult
Consumer
• Media campaign
• Packaging relaunch
• Unique identity
• + Impact
• + Visibility
• Launch of blister x 3
POS
• 50% increase in channel investments
Medical demand
• Valuing prescription and shielding
• Co-promotion: 2 teams
POS
• Better exposure
• Winter campaign with flu-symptom drugs
Alivium demand evolution – Sell-out (R$ MM)
Growth
YoY
Branded Prescription
Alivium positive conversion
48
31
29
27
24
23
27
23
24
29
37
11%
3%
-7% -3%
5% 0%
27% 21%
37%

49. -1%
1%
17%
19%
27%
SOURCE: IMS Health – PMB Oct’16
¹ Dermocosmetics market growth: 8.9%
Highest Growth Rates (LTM Oct/16 - PPP)
• Innovation
- Fast launches
- Attractive/innovative
products
• Diversification
- Portfolio renewal
(cleansing, moisturizing, anti-
aging)
- Entrance in new markets
• Execution
- Expansion of demand team
- Focus on POS execution
Branded Prescription
Skin Care – Important growth driver
49

50. Branded Prescription
2017 launches
50
Lacrilax Colflex
Blancy
Ommax
VelunidiSoftalm
Starting in Nutracosmetics
Market
Launched in 2016
Progressive skin
lightening;
1st 100% nanotechnology
Launched in 2016
New Concept:
Omega 3 in
pediatrics
2nd half 2017
R$ MM 300 Market – Cardio
Portfolio
2nd half 2017
Eye drops
Launched in 2016
Ocular anti-inflammatory
Launched in 2016

51. 39%
18%
22%
21%
Branded
Rx
Consumer
Health
Branded
Generics
OTX
Dermocosmetics
Products
Strategy
Demand Driver
• OTC
• Sweeteners
• Intensify brand extensions
• Mass media
Consumer Health
51
Revenue Breakdown
OTC
56%

52. 52
Ranking Company Market Share
Growth
YoY
#1
#2
#3
#4
#5
Total CH
Sell-out
SOURCE: IMS Health – PMB-PPP Fev 17 LTM
14.7%
14.3%
6.7%
5.9%
5.7%
Consumer Health
Ranking
9.6%
8.1%
5.9%
6.4%
1.8%
6.3%

53. 53
CosmeticsFood
Dermo-
cosmetics
Nutra-
ceuticals
Nutri-
tionals
Pharmaceuticals
• Safe and well tolerated
• Simple dosages
• Fast relief of minor symptoms
• Ease of access
• Good distribution
• Wide range of options
• Affordable prices
Self Care
Universe Characteristics
POSCommunication
Education & Knowledge
Consumer Health
Business scope

54. 54
2012 2013 2014 2015 2016
6.7%
SOURCE: IMS PMB-PPP Feb 17
• More stable market
• Unfavorable regulation
• Products
• POS
• Hyper portfolio focused on
more mature categories
CAGR
12-16
Consumer Health
9.7%
Consumer Health
Hypermarcas sell-out evolution

55. 41%
89%
37%
6%
22%
5%
MARKET HYPERMARCAS
Growth
YoY
6.4%
-9.6%16.2%
18.7%
10.8%
11.1%
Share of the
Market Share
10.3% 9.7%
Main Markets
Development
Mature Attack
Mature Leadership
• Vitamins & Supplements
• Nutraceutics
• Probiotics
• Antispasmodics
• Muscle relaxant
• Antiflatulants
• Analgesics
• Gastro
• Flu Symptoms
Development
Mature Attack
Mature Leadership
Mature market,
Hyper share >14%
Mature market,
Hyper share <5%
Dynamic market,
Hyper share <5%
Growth
YoY
SOURCE: IMS Health – PMB Oct 16
Consumer Health
Portfolio composition
55

56. Development
Rank Company Market Share
#1 17.6%
#2 13.7%
#3 10.8%
#6 3.6%
Total 100.0%
Mature Attack
Rank Company Market Share
#1 13.6%
#2 12.0%
#3 9.5%
#11 2.7%
Total 100.0%
Mature Leadership
Rank Company Market Share
#1 29.8%
#2 19.0%
#3 12.9%
#4 10.6%
Total 100.0%
Development
Mature
Attack
Mature
Leadership
SOURCE: IMS Health – PMB Oct 16
Consumer Health
Portfolio & competitive position
56

57. SOURCE: IMS Health PMB – PPP LTM Out’16.
Gastro 32.2%
Tranquilizers 35.0%
Antihemorrhoids 36.2%
Laxatives 41.3%
Flu Symptoms 73.0%
Antiseptics 75.2%
Market Size
(R$ MM)
387
41
249
23
73
654
BrandsMarket Share 1st
Consumer Health
Mature products – Hyper leadership market
57

58. Topical Pain Relief
Antispasmodics
Supplements
Infant Vitamins
Nutritionals
Adult Vitamins
MarketHypermarcas
Portfolio Extension
SOURCE: IMS Health – PMB Oct’16
Consumer Health
Innovation
58

59. SOURCE: IMS Health – PMB Jun 17
Consumer Health
New products concepts through brand extensions
Concept
• High awareness
• Stronger formulation
• Product concept: “Good
even for migraines”
38.8 35.6 35.8 36.8
44.6
20.7
37.2
40.0
2013 2014 2015 2016 2017 LTM
Sell-Out
(R$ million)
74.0
56.5
59
84.6
CAGR
25.0%

60. SOURCE: IMS Health – PMB Jun 17
Consumer Health
New products concepts through brand extensions
150 164 159
191
8 23
40
2014 2015 2016 2017 LTM
Benegrip Benegrip Multi
Sell-Out
(R$ million)
183
172
60
231
CAGR
18.9%

61. Specialist Team CH
Focus on execution
Resources Optimization
Grow Weighted Distrib.
Verticalization of the Sales & Merchandising
Teams
Convert Market Share in POS space via block
exposure of brands
Consumer Health
Distribution
61

62. Pilot Project -
Before After
Category Management – Education & Expansion
SOURCE: IMS Health – PMB Oct 16
Consumer Health
Distribution
62

63. Apracur (Chewable) Lacto Purga (Light) Tamarine (Zero Jam)
63
Biotônico (New Flavours) Coristina (Box w/ 8) Benegrip (Box w/ 12)
Consumer Health
2017 Launches

64. 39%
18%
22%
21%
Branded
Rx
Consumer
Health
Branded
Generics
OTX
Dermocosmetics
Products
Strategy
Demand Driver
• Generics (Large Chains)
• Similars (Independent)
• Defend & grow selectively
• Pharmacist recommendation
Branded Generics
64
Revenue Breakdown
OTC
56%

65. #1
#2
#3
#4
#5
SOURCE: IMS Health – PMB - PPP LTM Feb/17
Similars & Generics
Companies
Market
Share
CAGR
2012-16
25.3%
6.0%
6.9%
8.4%
13.6%
17.7%
21.3%
-7.3%
13.1%
8.1%
Branded Generics
Outstanding position with solid evolution
65

66. 888
1,049
1,192
1,435
1,553
2012 2013 2014 2015 2016
SOURCE: IMS Health – PMB - PPP Feb 17
CAGR
15.0%
R$ MM
Branded Generics
Sell-out demand evolution
66

67. SOURCE: IMS Health – PMB - PPP Feb 17
Similars Generics
288
359
419
550
602
2012 2013 2014 2015 2016
CAGR
20%
600
690
773
886
951
2012 2013 2014 2015 2016
CAGR
12%
R$ MM
Branded Generics
Sell-out demand evolution
67

68. GenericsSimilars
SOURCE: IMS Health - PMB- PF LTM Feb/17
Market
Share
#1 19.2%
#2 17.3%
#3 14.4%
#4 5.7%
#5 5.5%
Market
Share
#1 28.0%
#2 13.7%
#3 11.8%
#4 10.9%
#5 8.0%
Branded Generics
Ranking by market segment
68

69. SOURCE: IMS Health - PMB
1st Sildenafil
3rd generics market
Orlistat
5th generics market
Torsilax
4th biggest market
Neosoro
1st product
by units
Doralgina
5th OTC market
Losartan
1st generics market
GenericsSimilars
Branded Generics
Leadership in main molecules
69

70. 70%
5%
6%
7% 88%
TotalUnder
development
2021-23
Launches
2019-20
Launches
2017-18
Current
portfolio
Strategy:
• 1st to market
• High-barrier markets
• High-potential markets
SOURCE: IMS Health – PMB – PF LTM Jun/16
Branded Generics
Pipeline opportunities
70

71. Market
Relevance
53%
25%
23%
46%
21%
33%
SOURCE: IMS Health - ED
Large
chains
Mid-sized
chains
Independent retail
Branded Generics
Channel opportunities
71

72. SOURCE: IMS Health – PMB-PPP LTM Jun/16
21.5%
17.5%
14.4%14.0%
9.3%
NORTHNORTHEASTSOUTHEASTMIDWESTSOUTH
Market Share
14.5%
Branded Generics
Regional opportunities
72

73. Brand awareness and use
27%
54%
80%
96%Knows
Tried
Uses Regularly
Uses frequently
Brand with lowest level of rejection
¹ Average of 5 largest competitors
SOURCE: Nationwide quantitative survey
87%
44%
68%
24%
AVG
leaders¹
Branded Generics
Well-known brand with loyal consumers
73

74. Base
Inventory
Price
Point
ExposureTraining
Field team:
• +100 employees
Coverage:
• ~20% POS
• ~50% of sell-out demand
Branded Generics
POS execution
74

75. Price, base inventory & exposure
reviewed
SOURCE: IMS Health – MDTR (Moving quarterly average , Sell-out – PMB PF)
Doralgina sell-out evolution – National large chains
+26%
Branded Generics
POS execution – Doralgina
75

76. The Brazilian Family’s Medicine
“ We dedicate all of our efforts
to provide more health and
wellness so that everyone can
fully enjoy happy moments with
their families”
TV | Radio | Print media | Digital | PDV
Branded Generics
Action plan: new media campaign
76

77. Branded Generics
2017 Launches
77
2nd generic version of the market
Launched in 2016
Reference: Lasix
Line extension
1st half 2017
Reference: Sotacor
Escitalopram Furosemide
Sotalol
2nd generic version of the market
Launched in 2016
Reference: Selozok
2nd generic version of the market
1st half 2017
Reference: Nebilet
Metoprolol Succinate
Neolefrin
Biggest “controlled drugs” market
Launched in 2016
Reference: Lexapro
Nebivolol
Biggest OTC-Similar market
Launched in 2016
Reference: Naldecon

78. Agenda
• Overview
• Brazilian Pharma Market
• Our Business
• Financials
78

79. 2.8
3.0
3.3
2014 2015 2016
2016 highlights
79
Net Revenues
R$ bn
EBITDA
R$ mm
Net Income
R$ mm
912
950
1,131
2014 2015 2016
338 346
675
2014 2015 2016
CAGR
9%
CAGR
11%
CAGR
41%

80. 2Q16R$ million ∆2Q17
80
2Q17 PnL
Net Revenues 807.1, 100.0% 852.3, 100.0% 5.6% - ,
Gross Profit 611.6, 75.8% 637.4, 74.8% 4.2% -1.0 p.p.
Marketing Expenses (193.4) -24.0% (199.8) -23.4% 3.3% 0.6 p.p.
Selling Expenses (103.3) -12.8% (108.5) -12.7% 5.0% 0.1 p.p.
G&A (41.5) -5.1% (46.8) -5.5% 12.7% -0.4 p.p.
Other Operational Expenses 16.4, 2.0% 17.8. 2.1% 8.5% 0.1 p.p.
Equity in Subsidiaries 0.6, 0.1% 0.3, 0.0% -41.9% -0.1 p.p.
Depreciation & Amortization 14.7, 1.8% 18.4, 2.1% 25.1% 0.3 p.p.
EBITDA 305.0, 37.8% 318.9, 37.4% 4.6% -0.4 p.p.
Financial Result (51.1) -6.3% 26.0, 3.1% - 9.5 p.p.
Taxes (63.1) -7.8% (88.0) -10.3% 39.5% -2.5 p.p.
Net Income (Continuing) 176.1, 21.8% 238.6, 28.0% 35.5% 7.2 p.p.
Discontinued Operations 0.3, 0.0% (43.6) -5.1% - -5.1 p.p.
Net Income 176.4 , 21.9% 194.9. 22.9% 10.5% 1.0p.p.

81. 81
Net Revenues 2,956.6. 100.0% 3,288.7. 100.0% 11.2% - .
Gross Profit 2,210.1. 74.8% 2,442.0. 74.3% 10.5% -0.5 p.p.
Marketing Expenses (766.0) -25.9% (810.1) -24.6% 5.8% 1.3 p.p.
Selling Expenses (383.5) -13.0% (413.5) -12.6% 7.8% . 0.4 p.p.
G&A Expenses (157.9) -5.3% (153.8) -4.7% -2.6% 0.6 p.p.
Other Expenses* (16.0) -0.5% (25.0) -0.7% 56,3% -0.2 p.p.
Depreciation & Amortization 66.4. 2.2% 64.2. 2.0% -3.4% 0.2 p.p.
EBITDA* 950.3. 32.1% 1,106.4. 33.6% 19.2% 1.5 p.p.
Financial Result (515.9) -17.4% (192.1) -5.8% -62.8% -11.6 p.p.
Taxes (22.5) -0.8% (202.4) -6.2% 798.9% -5.4 p.p.
Net Income 345.5. 11.7% 674.5. 20.5% 95.2% 8.8 p.p.
2016 PnL
* It excludes reimbursement agreement signed with the Company’s former Corporate Relations officer81
R$ million 2015 ∆2016

82. Net Debt Reduction
(R$ million)
Net Debt / EBITDADebt Profile
3.9x
3.1x 2.9x
2.6x
1.5x
-0.7x
-1.2x
-0.5x
2011 2012 2013 2014 2015 2016 2T17
LTM
Post
Cap.
Red.¹
3T15
Gross Debt (664.0)
Cash 2,115.3
Net Cash 1,451.3
Hedge 6.7
2Q17
Capital Reduction (821.9)
Proforma Net Cash 636.1
82 ¹Paid in July 3rd, 2017.

83. Dividends
R$0.50
R$0.60²
R$0.05¹
Paid in 2016 Paid in 2017
R$0.65
R$0.50
30%
Ps.: 2017 YTD. Dividend Yield calculated with average stock price; 2017 refers to Feb 16, 2017 YTD.
¹ Paid in Feb 24, 2017.
² Expected to be paid by the end of June 2017.
Dividend Yield: 1.9% 2.4%
83
R$ per share

84. R$0.65
Dividends & Capital Reduction
¹ Paid in Feb 24, 2017.
² Paid in July 3, 2017.
Capital Reduction
Dividends
30%
R$1.95
84
R$ per share
Dividend Paid:
Capital Reduction:
R$409.8 mnR$316.2 mn
R$ 0.50
R$0.60
R$ 0.05
R$1.30
Paid in 2016 Paid in 2017
R$821.9 mn

85. Company’s Main Tax Shields (1/4)
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 831 34% 282
- Acquisitions; Amortizable for tax purporses only
- It does NOT impact the P&L, only the Cash Flow
Income Losses 930 - Negative pretax due to Goodwill amortization
Recoverable Taxes 223
- Withholding tax from Financial Income
- Credits from Acquisitions
Total 1,435
* Cash impact sum of tax shields
85

86. Company’s Main Tax Shields (2/4)
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)
3Q-4Q 17 462
2018 310
2019 59
Total 831
Expense for Tax Purposes only
It does NOT impact P&L
Tax Rate 34%
Tax Shield 282
Reason
Information
source
Effect
1Q17
86

87. Tax Credits from Income tax losses carry-forward
Company’s Main Tax Shields (3/4)
Source: Hypermarcas
• 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
87
(R$ Thousand)
June 30 , 2017
930,220
62,755
43,119
75,035
18,724
95,531
1,225,384

88. Company’s Main Tax Shields (4/4)
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, 2017
Federal Taxes¹ 223,312
161,974
175,127
60,338
397,439
Source: Hypermarcas; it includes continuing and discontinued operations
88

89. Ownership and listings
¹ August 01, 2017 LTM
² August 01, 2017
³ August 01, 2017
SOURCE: B3; Hypermarcas
Listings
• Sao Paulo Stock Exchange: - HYPE3
- BRHYPEACNOR0
• Indexes with Hypermarcas:
• Ibovespa Index Ranking³: 30/58
• Trade volume¹: 2.8 MM shares/day
• ADR (HYPMY)²: 6.4 MM shares outstanding
• Market Cap³: R$17.82 B (USD5.7 B)
Ownership structure
Controlling
Group
35%
89
20%
15%
65%
Founder
Free Float
Maiorem

90. Phone: +55 (11) 3627-4242
ir@hypermarcas.com.br
http://www.hypermarcas.com.br/ir
90