Ppt inst 21.03.18

1. Institutional Presentation
February/2018

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 Hypera, 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. 3
Agenda
Business Overview
Market Characteristics
Our Business and Strategy
Financials

4. 41% 30%
29%
Net Rev: R$3.6 bn
Gross Margin: 74.5%
#1 Hypera Aché NC Farma
#2 Sanofi Eurofarma Hypera
#3 GSK Sanofi Cimed
#4 Takeda Novartis Sanofi
#5 Pfizer Hypera Eurofarma
Business overview
RankingKeyFacts
2017 Revenue Breakdown Branded
Prescription²
Consumer
Health
Branded
Generics³
Focus in Brazil Long experience
Fast growing/
resilient market
Diversified
portfolio
SOURCE: Company financials; IMS Health Dec 17; Hypera.
² Ex-patents. ³ Branded Generics includes Generics and Branded Generics.
4
Branded
Prescription
Branded
Generics
Consumer
Health

5. 5
Agenda
Business Overview
Brazilian Pharma Market
Our Business and Strategy
Financials

6. Pharma market
SOURCE: IMS Health (May 2016)
2014 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
Trends

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. Local players gain market share
Multinationals
Value
(R$)
Volume
(Units)
SOURCE: IMS Health 2016
8
58% 61% 64% 65% 67% 70%
42% 39% 36% 35% 33% 30%
2012 2013 2014 2015 2016 2017
50% 52% 54% 56% 58% 60%
50% 48% 46% 44% 42% 40%
2012 2013 2014 2015 2016 2017

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. Brazil
24.3 bn
53%
Mexico
9.7 bn
21%
Argentina
3.8 bn
8%
Colombia
3.8 bn
8%
Chile
2.2 bn
5%
Others
2.3 bn
5%
Latin American Market
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 2018.
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
6.0%
55.0%
16.0%
23.0%
• RX with/without
prescription retention
• OTX
• Dermocosmetics
R$31.3BPhysicians
• Over-the-counter
• Nutritionals
• Related products
R$9.1BConsumer
• Innovative patent protected R$3.4BPhysicians
• Generics (API)
• Similars
R$13.0BPharmacist
SOURCE: IMS Health PPP Dec 2017 ,Market Size PPP LTM
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. 41%59%
Retail pharma market
# Companies to reach 42% of market share
Pharma Retail
(% Sales)
Larger
Retail Chain
Smaller Retail
Chain &
Independent
SOURCE: IMS Health World Review Conference 2017 (May 5, 2017; Dinâmicas e Perspectivas do Mercado Farmacêutico da
América Latina e do Brasil); IMS PMB-PPP February 2017; Hypera. Larger retail chains are the Abrafarma members.
75 K Point of Sales
(POS)
68.3 K POS 6.5 K POS
Larger Retailers (28)
*
Manufacturer (6)
15

16. Resilient growth
2.0
2.3
2.5
2.8
3.3
3.7
4.0
2011 2012 2013 2014 2015 2016 2017
CAGR 2011-16: 11.3% CAGR 2011-16: 12.3%
28.1
30.9
34.0
37.1
42.1
47.7
53.5
2011 2012 2013 2014 2015 2016 2017
SOURCE: IMS Health – PMB-PPP (December 2017)
16

17. 17
Agenda
Business Overview
Market Characteristics
Our Business and Strategy
Financials

18. Business overview
Rank
Market
Share
Growth
Opportunities
#1
#2
#5
11.1%
12.3%
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
18
Revenue Breakdown
41% 30%
29%
Branded
Prescription
Branded
Generics
Consumer
Health
Consumer
Health
Branded
Generics
Branded
Prescription*
* Excluding patents
SOURCE: IMS Health – PMB Dec 17; Hypera – 2017

19. Hypera 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: Hypera (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. 4.1
3.1
3.0
2.9
1.9
Aché
Teuto
Medley
EMS
Hypermarcas
Brazilian peers
1.5x
1.6x
1.6x
2.1x
COGS per Unit (R$)
SOURCE: Companies’ Financials 2016; IMS Health PMB – Units
24
Player 1
Player 2
Player 3
Player 4

25. 0.8
0.9
1.2
1.9
Brazilian peers
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 2016.
26
12.5%
14.1%
15.8%
28.7%
32.5%
União Química
Eurofarma
EMS
Aché
Hypermarcas

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. Diversified revenue base
SOURCE: Company data, 2017
Other
products
(Branded Presc.)
(Branded Generic)
(Branded Presc.)
(Branded Presc.)
(Branded Presc.)
(Consumer Health)
(Branded Presc.)
(Consumer Health)
(Consumer Health)
Top 10
Brands:
~40% sales
(Consumer
Health)
29
8,3%
6,0%
4,1%
4,0%
3,7%
3,2%
3,2%
2,8%
2,7%
2,5%
59,5%

30. Transfer
Order
30%
Diversified distribution
• Continental country
(27 states; 204mm people)
• 28 larger chains
• ~230 distributors
Fragmented distribution
36%
Direct
Channel
Indirect
Channel
34%
DistributorRetailer
Warehouse
Distributor
invoices&delivers
Hypera
takesorders
75,300 Stores
Hypera reaches 100% of POS in Brazil
SOURCE: Company Data, 2016 (Dec 17)
30

31. 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
31

32. High production capacity
SOURCE: Hypera, 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
32

33. Segment the business in “Strategic Business Units” (SBUs)
Segment Name Market Size
“Direct to
Consumer”
#1
11.1% share
• Brand portfolio
• Merchandising
capabilities
• Media Buying
Success Factor
“Medical
Community”
“Trade”
#5
4.6% share
• Product
innovation
• Sales Force
Productivity
#2
12.3% share
Consumer Health
Branded Prescription
Branded Generics
Hyper Position
R$9.1 B
R$31.3 B
R$13.0 B
• Commercial
policy flexibility
• “Fast copier”
• Distribution
network
SOURCE: IMS PMB Dec 17
33

34. New organizational structure
34
• 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

35. Launch extensions of leading brands
SOURCE: IMS Health – PMB Dec 17
35
Sell-out (R$ million)
150 164 159
192
8 23
44
2014 2015 2016 2017
Benegrip Benegrip Multi
39 41 37 42
22
37
40
2014 2015 2016 2017
Doril Doril Enxaqueca
79 80 84 88
17 17
27 19
21
2014 2015 2016 2017
Liquid Pills Gel Caps
CAGR
16.3%
183
172
236
111
97
128
96
74
63
82
150
39
CAGR
28.2%
CAGR
10.1%

36. 36
Expand to existing markets in Brazil
37%
48%
22%
40%
10%
13%
5%
18%
Consumer
Health²
Branded
Prescription²
Branded
Generics³
Coverage1
Total
27%
21%
27%
26%
Total Share Share covered
Ranking
#1
#1
#1
#1
Covered Market
Share
NOTES: (1) Disregarding markets with less than 3% of share; (
2) IMS Health PPP
(3) Average presentation price basis

37. 37
SOURCE: Dunhhumby Anti-flu + Decongestant - YTD Sept 16vs17 Value
Example: OTC Category Management
Improve POS distribution/execution

38. Significant R&D activity in the world
38
Nanotechnology Transdermal
Patches
ODT Oral Films
Fixed-dose combinations
Extended release
Inhalers
Quick Release
Sublingual
Others

39. Sell Out results 2017
Δ% 2017 vs 2016
Source: internal data/ IMS dec/1739
14.7%
19.2%
15.4%
10.5%
11.3%
11.7%
9.5%
11.3%
3.4%
7.5%
5.9%
-0.8%
Hypera Market “Spread”
Total
Branded
Prescription
Consumer
Health
Branded
Generics

40. R&D – Current structure
40
Capacity
4 x higher
• Maintenance of
existing structure
• Focus on improving
and adapting the
portfolio
• Pharmaceuticals
R&D - Anápolis
• Launched in 2017
• 190 chemists and
pharmacists, 26
Ph.D. professionals
• Laboratories for
Medicines, Dermo
and Nutraceuticals
• State-of-the-art
equipment
R&D - Hynova
Center for
Consumer Studies
• In process of
expansion
• Lots in semi-
industrial size
Pilot plant
• Evaluation of the
performance of products
and packaging based on
consumer acceptance
and preference.

41. R&D Pharmaceuticals
41
Hynova - Barueri

42. Packaging with
exclusive design
R&D Dermo & Nutraceuticals
42
Types of products and technologies
Profile Projector - 3D Printer
FPS in vitro
Labspheres
Reactors
Sprays and AerosolsGels, Lotions and Séruns
Powder and
compact powder
Capsules

43. R&D Pharmaceuticals – development process
43
Product
Design
Lab Validation
Concept
Validation
Pilot Tests Dossier
NOTE: (1) Excluding the period of prospecting and acquisition of materials and regulatory deadline
18 to 30 months(1)

44. Business development pipeline
44 # projects
Acquisition
7
2nd Brand
22
Co
development
10
License-in
34
Short-term Mid- and Long-Term

45. R&D
Current pipeline status
45
Release
ANVISA
Queue
Develop-
ment
Waiting
List
R$ mm
52 316
31 301
91 1,112
48 970
222 2,700
R$ mm
15 126
10 235
11 266
20 297
Business Development
56 923
NOTE: (1) Potential revenue adjusted for risk and project phase
Projects
Quantity
Projects
Quantity
Potential Revenue Potential Revenue
Release
ANVISA
Queue
Contract
Negotiation

46. Case study: OFOLATO (Methylfolate) - RX product
• Active form of Folic Acid (7x more bioavailable)
• Partnership with Local development company
• 1st product promoted to the doctors
• 2nd generation being developed in house
Mar/17
Relevance of strategic partnerships
Business
case
Negotiation Manufacture
Apr/17 May17 –
Jun/17
Jul/16 –
Sep/16
Oct/17
Diligence /
Contract
Ready to
Market
Jan/17
Found a
partner

47. Partnership pipeline by therapeutic area
47
14
13
11
11
8
6
3
2
2
2
1
Gastro
CSN
OTC
Pain/Analgesics
Cardiology
Respiratory
Women's health
Dermatology
Anti-infectives
VMS
Ophthalmology
# Projects

48. Increasing importance of innovation
17.2%
16.0%
18.8%
23.0%
24.3%
28.0%
2012 2013 2014 2015 2016 2017
Innovation Index (% Net Revenue)
Target: 35%
SOURCE: Hypera Sell-in (% Net Revenues; products launched over the past 5 years) Dec 17
48

49. Idea Generation
Creation Order
Innovation process
49
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
Product Strategy Review
Approvers/Committee
Executive Committee
Follow-up Committee
Launch
Preparation
Development and/or
Negotiation
Business Case Construction
Sell – in

50. 41.0
65.4
84.4
1.4%
2.0%
2.3%
2015 2016 2017
R&D R&D (% of Net Revenues)
SOURCE: Hypera
51
CAGR
51.1%
Sustained commitment to R&D

51. 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
52

52. 1,651
439
1,212
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
73%
SOURCE: Thomson Reuters (Cortellis) and Hypera
53
Availability of new active substances by country

53. 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
54
Growth source of Brazilian companies

54. Branded Prescription
Products
Strategy
Demand Driver
• Drugs promoted to
Physicians (OTC / RX)
• Intensify therapeutic
classes expansion
• Physician prescription
Revenue Breakdown
55
41% 30%
29%
Branded
Prescription
Branded
Generics
Consumer
Health

55. Ranking
#1
#2
#3
#4
#5 4.6%
5.0%
6.2%
6.9%
10.0%
Market Share Growth YoY
Total Market
Company
Branded Prescription
Ranking
SOURCE: IMS Health – PMB-PPP Dec 17
56
11.3%
14.5%
8.0%
10.9%
15.3%
16.4%

56. 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
57
Player 1
Player 2
Player 3

57. • Antihypertensive
• Antidepressants
• Antibiotics
• Analgesics
• Anti-inflammatory
• Photoprotection
• Moisturizing
• Anti-aging
Skincare
17%
Skincare
20%
Chronic
41%
Chronic
33%
Acute
42% Acute
48%
MARKET HYPERA
R$11.7bn R$1.5bn
Growth
YoY
Growth
YoY
+12%
+12%
+8%
+18%
+12%
+15%
Market
Relevance Relevance
+11%
Acute
Chronic
Skincare
+14%
Therapeutic class examples
Branded Prescription
Portfolio composition
SOURCE: IMS Health – PMB Dec 17
58

58. 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); Hypera
Main
visited specialties
Current
portfolio
Future pipeline
opportunities
Branded Prescription
Portfolio optimization by therapeutic classes
Visitation coverage
(% of prescriptions – R$ PF)
59

59. Success case: Addera
60
SOURCE: IMS Health – PMB Dec 17
Developing new treatments Sell-out (MM R$)
36 29 29 30
36
122
169 175
26
80
2014 2015 2016 2017
Drops Pills Gel Caps
CAGR
58.0%
224
151
284
72
New pharmaceutical forms/packaging:
– Family 10,000 UI
– Economic presentations 7,000UI
10 Pills – 10 weeks treatment
30 Pills – 30 weeks treatment
• Strong efforts with Physician and Pharmacy
• Exclusive gel caps

60. 19.8 19.6
21.7 20.1 21.8 20.9
23.2
21.1 23.0
4.2 4.3
5.1 6.5
6.1 6.1
5.4
4.0
3.2
5.0
8.1
8.0
23.9 23.8
26.8 26.6
27.9 27.0
33.7 33.2 34.2
4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Liquid Pills Gel Caps
-2%
5%
0%
16% 17%
13%
26% 25%
22%
Success case: Alivium
SOURCE : IMS Health – PMB Dec 17
61
Alivium demand evolution – Sell-out (MM R$)
Growth
YoY
Recovery
Plan
Media
Media and
Gel Caps
Doctors
POS
Media
• Increased investment in POS
• Dedicated Sell-out team – 2H17
• Radio and TV Advertisements

61. Branded Prescription
2017 launches
62
Lisador Dip Colflex Vit
Glycare
Ommax
UrbyVelunid
Starting in Nutracosmetics
Market
2nd half 2017
Anti-aging
Glycolic Acid in
Nanoparticles
2nd half 2017
New Concept:
Omega 3 in
pediatrics
2nd half 2017Pain & Fever
2nd half 2017
Anti-aging Mask
2nd half 2017
$ MM 300 Market
– Cardio Portfolio
2nd half 2017

62. Products
Strategy
Demand Driver
• OTC
• Sweeteners
• Intensify brand extensions
• Mass media
Consumer Health
63
Revenue Breakdown
39% 30%
31%
Branded
Prescription
Branded
Generics
Consumer
Health

63. 64
Ranking Company Market Share
Growth
YoY
#1
#2
#3
#4
#5
Total CH
Sell-out
SOURCE: IMS Health – PMB-PPP Dec 17
11.1%
10.9%
6.6%
4.8%
3.9%
Consumer Health
Ranking
10.1%
1.7%
8.0%
12.4%
-0.1%
9.5%

64. 65
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

65. 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
66

66. Increased distribution
67
8,600 PDVs
45% of market
13% Growth
SOURCE: IQVIA – PMB Sept’17
HyperaMercado
Large
chains
4,900 PDVs
70% Coverage
15% Growth
27% of market
16% Growth
76% Coverage
23% Growth
Mid-
sized
chains
13,600 PDVs 7,100 POS

67. Category Management - 2017
68
Whole North region
8 stores
Already implemented
Pilot stores
9 stores
All pharmacies in chain
2 stores

68. Roll-Out Drogasil
Extrafarma Brasil
Category Management - future
69
Roll-Out chains with pilot stores

69. Probiotics
Underdeveloped markets in Brazil
SOURCE: IMS PMB – Sept’17 – PPP / Mintel – Vitamins, Minerals and Suplements – US – Sept’ 17
70
Niche market, underdeveloped in the
Pharma channel
Great potential market:
US$2.2 Billion
Supplements
R$440 Million in Brazil:
Diarrhea and colic only
Weight
Loss
Flavored
for kids
Chocolate w /
Antioxidants
Probiotics
Chewable
for kids
Cholesterol

70. Mid-sized chains & independent stores – Challenge: OTC exposure
Initiatives – OTC self-service exposure
NOTE:(2) High / Very High> 30% POS Value; Average / Low / Very Low: <30% POS Value
SOURCES: Close Up Outlook 2017; Quintiles IMS World Review 2017
71
• 56% of stores with behind-the-counter
exposure
• OTC accounts for 41% of self-service
and only 12% of space
• High presence of OTC in POS means
greater growth
• High presence: + 15% Growth(2)
• Average/Low presence: + 6%
Growth(2)
Current situation

71. Initiatives – Increased media coverage: Globo package
SOURCE: Internal data
72
Vignettes and Commercials
throughout the 2018 program
Reapplication bonus throughout
programming
Increased coverage and
frequency

72. Maracugina Merthiolate Clean Tamarine Kids
73
Biotônico (New Flavours) Zero-Cal Flavours Adocyl
Consumer Health
2017 Launches

73. Products
Strategy
Demand Driver
• Generics (Large Chains)
• Similars (Independent)
• Defend & grow selectively
• Pharmacist recommendation
Branded Generics
74
Revenue Breakdown
41% 30%
29%
Branded
Prescription
Branded
Generics
Consumer
Health

74. #1
#2
#3
#4
#5
SOURCE: IMS Health – PMB - PPP Dec 17
Similars & Generics
Companies
Market
Share
CAGR
2014-17
25.2%
12.3%
7.7%
7.5%
6.6%
Branded Generics
Outstanding position with solid evolution
75
10.8%
10.3%
17.2%
7.8%
23.9%

75. 76
Micro-Marketing: opportunities by region/channel
SOURCE: IMS Health - PMB Sep / 17; Value = Average PF of presentation
76
Region Channel
Market share in value/covered markets, Branded Generics and Generics
20.2%
26.5%
28.4%
33.8%
37.2%
South Midwest Southeast Northeast North
26.0%
31.8%
28.5%
Large chains Mid-sized chains Independent
Highest growth
2017:
South

76. 77
SOURCE: IMS Health - PMB Sept/17; Value = Average price of presentation
Performance evolution in large chains
Market share in value/covered markets, Generics
19.6%
21.6%
LTM Sept/16 LTM Sept/17

77. Opportunity to "modernize" the portfolio
78
1
2 – 5
6 – 10
> 10
Weight of the portfolio, in value
SOURCE: IMS Health - IMS PMB Sep / 17
# of competitors
(Branded and Generics)
55%
25%
17%
2%
Neo Química Profitability
Focus: 1st to market and markets with high entry barriers

78. Key strategic initiatives – Branded Generics
79
• Improve distribution performance (~ 50% of the market)
• Improve commercial execution
• Strengthen brand and sub-brands
• Accelerate of launches through R&D and BD (+ 20 SKUs in 2018)

79. 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
80

80. Market
Relevance
53%
25%
23%
46%
21%
33%
SOURCE: IMS Health - ED
Large
chains
Mid-sized
chains
Independent retail
Branded Generics
Channel opportunities
81

81. 21.5%
17.5%
14.4%14.0%
9.3%
NORTHNORTHEASTSOUTHEASTMIDWESTSOUTH
SOURCE: IMS Health – PMB-PPP LTM Jun/16
Market Share
14.5%
Branded Generics
Regional opportunities
82

82. 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
83

83. Branded Generics
2017 Launches
84
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 2017
Reference: Naldecon

84. 85
Business Overview
Market Characteristics
Our Business
Agenda
Financials

85. 2.8
3.0
3.3
3.6
2014 2015 2016 2017
912
950
1,092
1,222
2014 2015 2016 2017
Financial highlights
86
Net Revenues
R$ bn
EBITDA
R$ mm
Net Income
R$ mm
338 346
675
1.112
2014 2015 2016 2017
CAGR
9%
CAGR
10,5%
CAGR
49%

86. Net Revenue 877.9. 100.0% 1,032.7. 100.0% 17.6% - .
Gross Profit 639.7. 72.9% 769.3. 74.5% 20.3% 1.6 p.p.
Operating Expenses (372.6) 42.4% (423.6) 41.0% 13.7% 1.4 p.p.
Depreciation and Amortization 19.0. 2.2% 18.8. 1.8% -0.8% -0.4 p.p.
EBITDA 286.1. 32.6% 364.5. 35.3% 27.4% 2.7 p.p.
Financial Result 7.0. 0.8% 3.9. 0.4% -43.9% -0.4 p.p.
Taxes (61.9) -7.0% 112.6 10.9% - 17.9 p.p.
Net Income (Continuing Op.) 212.3. 24.2% 462.2. 44.8% 117.7% 20.6 p.p.
Discontinued Operations (408.1) -46.5% (16.9) -1.6% -95.9% 44.9 p.p.
Net Income (195.8) -22.3% 445.3. 43.1% 27.4% 65.4 p.p.
4Q16R$ million ∆4Q17
4Q17 Results
87

87. Net Revenue 3,228.1. 100.0% 3,638.5. 100.0% 12.7% - .
Gross Profit 2,394.8. 74.2% 2,711.7. 74.5% 13.2% 0.3 p.p.
Operating Expenses (1,367.2) -42.4% (1,551.7) -42.6% 13.5% -0.2 p.p.
Depreciation and Amortization 64.2. 2.0% 72.5. 2.0% 13.0% - .
EBITDA 1,091.8. 33.8% 1,232.5. 33.9% 12.9% 0.1 p.p.
Financial Result (192.1) -6.0% 53.4. 1.5% - 7.5 p.p.
Taxes (188.3) -5.8% (101.9) -2.8% -45.9% 3.0 p.p.
Net Income (Continuing Op.) 647.2. 20.0% 1,111.5. 30.5% 71.5% 10.5 p.p.
Discontinued Operations 530.6. 16.4% (146.5) -4.0% - -20.4 p.p.
Net Income 1,177.7. 36.5% 964.9. 26.5% -18.1% -10.0 p.p.
∆2016 2017
2017 Results
88
R$ million

88. 3.9x
3.1x
2.9x
2.6x
1.5x
-0.7x -0.7x
2011 2012 2013 2014 2015 2016 2017
Debt Profile
Net Debt Reduction
(R$ million)
Net Debt / EBITDA
3T15
Gross Debt (658.3)
Cash 1,400.6
Net Cash 742.3
3Q17
89
(676.0)
1,522.1
846.1
4Q17

89. R$ 0.50
R$ 0.65
R$1.30
Paid in 2016 Paid in 2017
Dividends & Capital Reduction 2017
¹ Paid in Feb 24, 2017.
² Paid in July 3, 2017.
Capital Reduction
Dividends
30%
R$1.95
90
R$ per share
Dividend Paid:
Capital Reduction:
R$409.8 mnR$316.2 mn
R$821.9 mn

90. R$0.50
R$0.60²
R$0.92
2016 2017 2018
R$0.65
R$0.50
R$0.92
NOTE: It considers the dividends paid in the respective periods; Dividend Yield calculated based on the average share price in the 12
months prior to payment.
Dividend Yield: 1.9% 2.4%
91
R$ per share
Dividends/IOC
CAGR
36%
2.7%
42%

91. NOTE: ROE calculation is a result of the division of Continuing Operations Consolidated Net Income by the Consolidated Shareholders' Equity
quarterly average.
7.2%
14.0%
2016 2017
92
ROE – Return on Equity

92. Company’s Main Tax Shields (1/4)
EV/EBITDAP/E Cash flowReturns Net income
Possible analysis
impacts
Tax Shield Summary
Source: Hypera
¹ Federal tax credits are usable to pay any federal tax payment
R$ Million
Expense for
Tax only
Tax Rate Cash Value* Origin
Goodwill 597 34% 203
- Acquisitions; Amortizable for tax purporses only
- It does NOT impact the P&L, only the Cash Flow
Income Losses 1,083 - Negative pretax due to Goodwill amortization
Recoverable Taxes 326
- Withholding tax from Financial Income
- Credits from Acquisitions
Total 1,612
* Cash impact sum of tax shields
93

93. Company’s Main Tax Shields (2/4)
EV/EBITDAP/E Cash flowReturns
Source: Hypera
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)
2018 452
2019 145
Total 597
Expense for Tax Purposes only
It does NOT impact P&L
Tax Rate 34%
Tax Shield 203
Reason
Information
source
Effect
4Q17
94
(R$ million) 4Q17
2018 452
2019 145
Total 597
Tax Rate 34%
Tax Shield 203

94. Tax Credits from Income tax losses carry-forward
Company’s Main Tax Shields (3/4)
Source: Hypera
• 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
95
(R$ Thousand)
December 30 ,
2017
1,082,869
61,777
29,346
59,826
22,795
139,991
1,396,604

95. 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
December 30, 2017
Federal Taxes¹ 326,435
168,314
175,763
158,301
502,378
Source: Hypera; it includes continuing and discontinued operations
96

96. Ownership and listings
¹ January 09, 2017 LTM
² January 09, 2017
³ January 09, 2017
SOURCE: B3; Hypera
Listings
• Sao Paulo Stock Exchange: - HYPE3
- BRHYPEACNOR0
• Indexes with Hypera:
• Ibovespa Index Ranking³: 30/58
• Trade volume¹: 3.1 MM shares/day
• ADR (HYPMY)²: 6.9 MM shares outstanding
• Market Cap³: R$22.72 B (USD7.02 B)
Ownership structure
Controlling
Group
35%
97
20%
15%
65%
Founder
Free Float
Maiorem