4. Growth
Pharmacy Retail
Abrafarma
2004 2005 Growth2007 2004 2005 2006 2007 2008 2009 2010 2011 2012 201
2006
2008 2009 2010 2011 2012 2013
16.7% 11.4% 11.6% 9.9% 16.7% 11.4% 11.6% 18.5% 11.9% 14.3% 20.1% 18.5% 15.6% 16.9
Pharmacy Retail
11.9% 14.3% 20.1% 9.9% 15.6% 16.9%
13.3% 15.0% 7.1% 14.6% 13.3% 15.0% 18.0% 14.6% 21.7% 25.6% 18.0% 26.0% 16.7% 13.8
Abrafarma
21.7% 25.6% 7.1% 26.0% 16.7% 13.8%

6.  5 Big acquisitions:
•
•
Guararapes
•
Mais Economica
•
Sant’Ana
•
Big Benn
 Focus on processes
 Centralized BackOffice (2012)
 Focus in Cash generation
 Centralized Procurement (2013)
Rosario Distrital
 Accelerated expansion
 WC Management
 Logistics optimization : 4 New
 Slowdown in organic growth
Distribution Centers
 Systems Standardization : Start
of SAP Implementation
 Reduced investments
 Optimized corporate structure
 Processes’ redesign
 Brand repositioning
 Stores’ profitability
 Strong organic growth/market consolidation
 Stores renovation/Mix optimization
 Mais Economica Repositioning
 Leadership position in 4 out 5 regions in Brazil
 Big Ben as a separated business
 Harvest the benefits of
 Financing: IPO/ 1st Debenture/ F-ON
unit
integrations done in 2012 and
2013

8. Healthy growth despite the slowdown in Mais Economica
17.1%
North/Northeastern region
•
•
•
•
15.8%
Northeastern region
(Bahia)
Traditional standard
13.6%
Midwest region
5.6%
South region
Pilot standard
New standard

10.  New DC in Canoas:
- Increase the volume purchased from the industry
- Better supply efficiency
 Store Layout/ Mix adjustments
 Reverse Logistics
- Move the excess of products from the stores to the DC
 Redistribution of Products
 Renegotiation with the industry
- 56 stores renovations
- 3 stores completely reformed (1 new Concept store)
 Sales force training
 Focus in store profitability
- 28 closings in 2013
 Promotional Campaigns
 Better logistics’ productivity, with shorter
lead-time
 Better procurement algorithms
 Mix reduction

11. SAP Schedule:
SIG6 Gestao Procfit Proteus

Jan/14 - “Go live” Santana 
Jan/14 - “Go live” Farmais 
Oct/13 - “Go live” Rosário

1H14
- “Go live” Mais Economica
2014
- “Go live” Big Ben/SSC Integration

Gestao System Schedule
(Procurement/Logistics):
Rosario

Apr/13 - “Go live” Sant’Ana

1H14 - “Go live” Mais Economica

Benefits from an Integrated System




Process standardization
Better integration capacity
Faster and more precise information
Higher quality information to shareholders

12. Commercial
BackOffice
Operations








Still a separated business unit
 Separated Administration
 Duplicated structures/expenses
 Managed by the former owner
Integration in course:
 Continuous improvement.
Synergies to be captured in
the years to come

