2 - Raia Drogasil

0
Major trends along 2009/2010
¾Industrial Capacity Recovery
¾Actual Wage Growth
¾Lower unemployment rates.
¾Formal Employment increase
¾GDP with positive outlook
¾Credit Expansion.
¾Credit deliquency rates reduction
rates reduction.
¾Increasing consumer confidence. Consumer
Growth
The New Brazilian Consumer
¾More informed.
¾A
¾Aware
on self
lf wealth.
lh
¾Concerned about ecological impacts.
¾More urban; less rural
¾Convenience to buy: Stores
to buy: Stores and
products in less size
Indulgence
Sofistication
ƒTry new Products
ƒExperience
p
new
ways to Buy.
Drogasil Experience
Last 12 months
( Base August‐ 2010X2009 criteria : R$ volume) ¾ Colourants‐ Growth of 15.3%
¾ Diapers
Di
– Growth
G
th off 16.1%
16 1%
¾ Baby Milk‐ Growth of 18.0%
¾ Skin Care‐ Growth of 25.1%
¾ Deodorants
Deodorants‐ Growth of 38.4%
¾ Liquid Soap‐ Growth of 40.8%
¾ Sun Care‐
S C
G
Growth
th off
41 4%
41.4%
3
Drug Retail Market Brasil ‐ Sales in R$(000) 35.000
25,0%
R$ 30.231
21,3%
30.000
20,0%
R$ 26.397
R$ 23.583
25.000
R$ 21.452
16,0%
20.000
R$ 19.231
15 0%
15,0%
14,5%
R$ 16.981
11,9%
11,5%
15.000
R$ 13.995
9 9%
9,9%
10 0%
10,0%
10.000
5,0%
,
5.000
0
0,0%
2005
2006
2007
2008
2009
Source: IMS Health New Flas h June2010 Value R$
Value R$
YTD
YTD
JUNE 09 JUNE 10
YoY Growth R$
YoY Growth R$
4
Drug Retail Market Brasil ‐ Units, Sales in U$D(000) 18000
50,0%
47%
$15.437
16000
45,0%
$14.648
42%
40,0%
14000
$12.179
35,0%
12000
$
$9.868
10000
$9.455
24%
$7.955
23%
30 0%
30,0%
25,0%
8000
20%
$6 423
$6.423
20 0%
20,0%
18,2%
6000
15,0%
4000
7 6%
7,6%
4,5%
2000
1.374 5,3%
1.436
1.517 5,6%
1.632
8,3%
10,0%
,
1.768 5%
829
980
0
5,0%
0,0%
2005
2006
2007
2008
2009
Source: IMS Health Flash June 2010 UNIT
Value USD
Value USD
YoY Growth UNIT
YoY Growth UNIT
YTD
YTD
JUNE 09 JUNE 10
YoY Growth USD
YoY Growth USD
5
Generic Drug Market in Brazil
in Brazil (1/2)
CAGR: 27.3%P.A.
39%
R$(Millions)
15%
%
14
4%
12%
11%
9%
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
DRUG MKT SHARE
Source: IMS Health New Flash
6
Generic Drug Market in Brazil
in Brazil (2/2)
Drug Patent to expire in 2010 .
S
Source:
IMS Health
H lth New
N
FlashFl h June
J
2010
Source: Anvisa
7
Brazil Pharma Retail Market
120%
Abrafarma associates´s share in outlets and sales(2009)
100%
80%
64%
60%
95%
40%
20%
0%
60000
50000
40000
30000
20000
10000
0
56.266
R$ 263
R$ 263
4000
3500
R$ 3.521
3000
2500
2000
1500
R$ 1.348 R$ 1.431
1000
3.091
2.324
673
500
0
36%
5%
1
Abrafarma
2
Rest of Market
3
Store Number
b
Sales Per Store(R$000) Annual
l
( $
)
l
Tax Evasion Reduction Coupled with Pharma Retail Compliance Rules are reshaping
are reshaping the segment
Top 5 in the
Top 5 in the Brazilian Market
Top 5 Generic Manufacturers in Brazil
Criteria: YTD Local Currency
MEDLEY
EMS PHARMA
EUROFARMA
ACHE
GERMED PHARMA
Source: IMS Flash June 2010
Top 5 Therapeutic Classes in Brazil
Criteria: YTD Local Currency
Analgesic Non Narcotic
Analgesic
Non Narcotic
Hormonas Contraceptive
Anti‐ Rheumatic non‐steroidal
Anti‐Depressive Anti‐Ulcer
Source: IMS Flash June 2010
jun‐10
33,2%
,
24,9%
5,9%
5,6%
5,2%
jun‐10
4,7%
4,1%
3,5%
3,3%
3,1%
Top 5 Manufacturers in Brazil
Criteria: YTD Local Currency
EMS PHARMA
EMS
PHARMA
SANOFI‐AVENTIS
MEDLEY
ACHE
EUROFARMA
Source: IMS Flash June 2010
Top 5 Drug Markets in Brazil
Criteria: YTD Local Currency
São Paulo
São
Paulo
Rio de Janeiro
Minas Gerais
Rio Grande Sul Parana
Source: IMS Flash June 2010
jun‐10
6,6%
6
6%
5,7%
5,6%
5,4%
4,0%
jun‐10
30,4%
13,5%
9,4%
7,7%
5,7%
9
DROGASIL Evolution
DROGASIL Evolution – Brazil Market Share and Ranking.
Ranking
Ranking- Drugstore Chain (ABRAFARMA)
Empresa
UF
2009
2008
Drogaria Pague Menos
CE
1ª
1ª
Drogasil
SP
2ª
3ª
Drogaria São Paulo
SP
3ª
2ª
Drogaria Pacheco
RJ
4ª
4ª
Drug Market Share
Source: IMS Health - Relatório de Distribuição - RD
Match Base Jun 2010
12,9%
12,4%
10,9%
jun/09
jun/10
9,5% 9,3%
7,8%
4,2%
4,1%
6,5%
6,0%5,4%
0,3%
BRASIL São
Sã P
Paulo
l Mi
Minas
Gerais
G iá
Goiás
Di t it
Distrito
Federal
Espírito
E
í it
Santo
Brand Analytics ranks
DROGASIL brand in 39th
among top 50 most
valuable brands in Brazil
Source: www.brandanalystics.com.br
1
0
DROGASIL in Brazil
Minas Gerais
Brasilia(DF) Brasilia
(DF) Stores 27
Stores 38
309 Stores distributed in five Brazilian States. Headquarter in S.Paulo , SP
Brazil. One Central Distribution located in S.Paulo, SP. ‰ 309 Stores
Goiás
‰ 5 Brazilian States.
‰ 82 cities in Brasil
Stores 26
‰ 13 stores in Supermarkets
‰ 37 stores in Shoppings
‰ 33 stores open 24 hours.
‰ 258 street stores.
São Paulo
‰ 1 Delivery
Stores 206
‰ 1,010
1 010 Pharmacists (June,
(June 2010)
‐ Metropolitan area130
‰ 6,821 Employees (June, 2010)
‐Inner cities 76
‰ Store Sales Area: 136 sq.m² avg size.
Legenda
Distr. Center
Espírito Santo
Stores 12
11
DROGASIL Expansion
DROGASIL Expansion(1/2)
(1/2)
•
2007‐ Acquistion of 10 store locations in Goiânia 2008‐ Drugstore chain company acquisition in Brasília (DF) with 24 stores.
•
Aguas Claras‐DF
2009‐ 12 store locations acquistion in Espírito Santo State.
•
2007 Innauguration: 32 Stores
•
2007 Net Addition: 32 stores.
•
2008 Innaguarations: 46 Stores
•
2008 Net Addition : 45 stores.
•
2009 inaugurations: 28 stores.
Campinas Norte Sul
Jundiaí
Ju
da
Campinas Centro Convivência‐SP
Araraquara‐ SP
In 4 Year Period:
130 New Stores . DROGASIL DrugStore chain
expansion
with CAGR Goiania- Setor
Marista
17.2% p.a.
•
2009 Net Addition‐ 27 stores
2009 Net Addition
27 stores
•
2010 Net Addition: 26 Stores
•
L t d t ( S t 22 2010)
Last update ( Sept 22 , 2010)
Piracicaba
12
12
DROGASIL Expansion
DROGASIL Expansion(2/2)
(2/2)
• On July 27 , Drogasil announced store
location acquisitions : • 18 Stores in Brasilia(DF)
Nova Odessa
• 2
Stores in Goias.
in Goias.
Campinas Norte Sul
• + 6 stores organic
growth in Rio de in Rio de
Janeiro. Drogasil´s Stores Distribution Before and After Acquisition
Itatiba
State
Before
After
Stores %of Total Stores %of Total
São Paulo
Minas Gerais
Goias
Federal District
Espirito Santo
Rio de Janeiro
Rio de Janeiro
204
27
24
36
12
0
67%
9%
8%
12%
4%
0%
204
27
26
54
12
6
62%
8%
8%
16%
4%
2%
303
100%
329
100%
Goiania- Setor Marista
total
Roll Out
New Stores
2
2
Piracicaba
13
DROGASIL REVAMPING THE DRUGSTORE CHAIN
DROGASIL REVAMPING THE DRUGSTORE CHAIN....
Growth of 22.3%
Growth of 10.3%
2010: Project to revamp 60 STORES.
2009: REFURBISHED 60 STORES.
2008: REFURBISHED 30 STORES.
So far, 37 Stores were revamped. (last update Sept 10, 2010)
14
BEFORE
AFTER
BEFORE
AFTER
ANVISA RDC 44: OTC DRUGS MOVING BEHIND THE COUNTER: So
ANVISA RDC 44: OTC DRUGS MOVING BEHIND THE COUNTER: So Far 297 297 stores
stores
already revamped( revamped( Sep
Sep 22, 2010)
15
SAME STORE SALES (1/2)
90%
82,5%
80%
70%
58,8%
55,9%
60%
52,0%
47,5%
44 4%
44,4%
50%
40%
27,4%
30%
22,7%
19,1%
19,0%
15,6%
20% 14,3%
10%
18,3%
18,0%
16,5%
15,5%
12,3%
11,6%
0%
Total
+ 3 Years
80,1%
33,7%
28,2%
11 4%
11,4%
6,1%
17,9%
‐ 3 Years
TICKET
Avg Ticket: 2T10 = R$38,8
R$38 8
Avg Ticket : 2T09 = R$35,9
Growth : 8.0%
TICKETS
Growth: 7.7%
16
DROGASIL: SAME STORE SALES – INDEX ANALYSIS (2/2).
Number of Stores eop Dec, 2009: 283 Stores
STORES
4 Q0 7 1 Q0 8 2 Q0 8 3 Q0 8 4 Q0 8 1 Q0 9 2 Q0 9 3 Q0 9 4 Q0 9 1 Q1 0 2 Q1 0 3 Q1 0 4 Q1 0 1 Q1 1 2 Q1 1 3 Q1 1 4 Q1 1 1 Q1 2 2 Q1 2 3 Q1 2 4 Q1 2
(+) 3 YEARS.
149 154 159 159 163 167 171 175 179 182 190 205 212 237 245 249 257 260 274 278 286
(-) 3 YEARS
29
28
27
35
47
47
71
72
76
75
80
73
71
51
56
60
52
49
35
31
23
Not Included in the Index
33
33
57
54
46
44
28
31
28
31
31
31
26
21
8
0
0
0
0
0
0
TOTAL
Organic Growth
211 215 243 248 256 258 270 278 283 288 301 309 309 309 309 309 309 309 309 309 309
4
Closed
5
1
5
8
2
13
1
8
5
5
13
8
Obs.:
Obs
- Vison Stores included as of April/ 2 0 0 8 .
SAME STORE SALES - QUARTER ANALYSIS
15%
6%
26
25%
%
21%
20%
20%
18%
20%
20%
19%
25%
20%
%
30%
27%
29%
28%
2
24%
22%
%
21%
17%
15%
14%
13%
16%
20%
Qo…
11%
•
10%
5%
0%
QoQal
1
7
• DROGASIL‐ Drugstore Chain Expansion Vis à Vis EBTIDA MARGIN. Working Capital Investment (1/3)
256
211
6,6%
9,1%
7,9%
5,1% 5,3%
3,3% 3,5%
2004 2005 2006 2007 2008 2009
EBITDA MARGIN‐%
EBITDA MARGIN
% Gross
Gross Sales Revenues
Sales Revenues
2004 2005 2006 2007 2008 2009
Sq.m² e.o.p.
36.148
2Q 10
20.291
12.757
171.891
12.964
11,0%
28.055
13.359
216.788
10.999
12,2%
6M9
6M10
31.354
26.037
171.891
11.308
15,8%
42.706
31.919
216.788
47.580
17,2%
40.099
2Q09 2Q10
EBITDA MARGIN‐% Gross Sales Revenues
NOPLAT
CAPEX
2Q 09
2Q 10
1H09
47.580
11.308
1
12.964
1
10.999
31.919
12.757
42.706
7,9%
31.354
9,1%
28.055
37.963 34.537 29.741 24 807
24.807 20.772 22.382 6,6%
5,1% 5,3%
4,6%
,
3 3% 3,5%
3,3%
20.291
Qty Stores
Qty Stores
2Q09 2Q10
NOPLAT
CAPEX
W.I.
Var W.I.
ROIC
2Q 09
26.037
4,6%
270
13.359
179
151 164
301
283
Var W.I
1H10
18
WORKING CAPITAL(2/3)
Gross Revenue Sales
Gross Revenue Sales
Net Sales
1H10
993.283
954.320
479.936
461.371
S/ Vd Bruta
4.249
94.277
7.252
(503)
51.142
5.119
244.846
0,4%
9,5%
0,7%
-0,1%
5,1%
0,5%
24,7%
4.249
94.277
7.252
(503)
51.142
5.119
244.846
Suppliers
Taxes
Salaries
Rentals
Tenure Entitlement
137.466
137
466
19.195
29.377
3.396
158
13,8%
13
8%
1,9%
3,0%
0,3%
0,0%
137.466
137
466
19.195
29.377
3.396
158
Current Assets
Current Liabilities
406.381
189.592
W.I.>
Additional W.C>
216.788
47.580
19
1H09
820.785
790.159
1 Q1 0
513.348
492.949
S/ Vd Bruta
C
Current
tA
Assets
t
Checks
Debit & Credit Cards
Others
(-) Provision for Bad Debt
T
Taxes
to Recover
R
Difered Income Tax
Inventories
2 Q1 0
0,8%
18,4%
1,4%
-0,1%
10,0%
1,0%
47,7%
S/ Vd Bruta
4.450
89.597
7.444
(527)
48.261
5.499
280.880
0,9%
18,7%
1,6%
-0,1%
10,1%
1,1%
58,5%
2 Q0 9
1 Q0 9
441.377
425.228
379.408
364.931
S/ Vd Bruta
5.177
79.032
6.743
(906)
34.156
5.375
217.578
0,6%
9,6%
0,8%
-0,1%
4,2%
0,7%
26,5%
S/ Vd Bruta
5.177
79.032
6.743
(906)
34.156
5.375
217.578
1,4%
20,8%
1,8%
-0,2%
9,0%
1,4%
57,3%
S/ Vd Bruta
4.918
68.097
8.595
(847)
34.431
4.414
247.479
1,3%
17,9%
2,3%
-0,2%
9,1%
1,2%
65,2%
Current Liabilities
D
Days
on R
Receivables
i bl
26 8%
26,8%
3,7%
5,7%
0,7%
0,0%
406.381
189.592
21,8%
4,8%
216.788
10.999
18
183.608
183
608
14.548
27.648
3.353
657
38 3%
38,3%
3,0%
5,8%
0,7%
0,1%
435.603
229.814
42,2%
2,1%
205.789
36.580
126.308
126
308
17.040
28.384
2.983
752
15 4%
15,4%
2,1%
3,5%
0,4%
0,1%
347.156
175.468
19
171.688
11.308
20
42,9%
7,6%
126.308
126
308
17.040
28.384
2.983
651
33 3%
33,3%
4,5%
7,5%
0,8%
0,2%
347.156
175.367
20,9%
1,4%
171.789
12.964
18
170.344
170
344
13.594
20.798
2.774
651
3,6%
5,5%
0,7%
0,2%
367.087
208.160
45,3%
3,4%
158.927
(1.656)
19
Inventories
61
60
71
30
61
79
Suppliers
34
34
46
17
35
55
Icms
13
12
12
9
9
8
58
57
56
42
53
52
Cash Cycle
44 9%
44,9%
41,9%
-0,4%
19
WORKING CAPITAL : Inventory Days(3/3)
20
THE SECOND DISTRIBUTION CENTER: In operation by 4thQuarter 2010 Process and Separation area:6,200 sq.m²
Total Plant area: 56,000 sq. m²²
Employees: circa 77 employees.
Number of items: 3,300 itens , representing 80% gross revenue.
Located at: Contagem, Minas Gerais.
Suppliers: 50 Working one shift for process and delivery.
Capacity for 100 stores.
21
GROSS SALES BREAKDOWN
2009
DRUGS
GENERIC
OTC DRUGS
14 0%
14,0%
72,8%
17,8%
BRANDED
68,2%
Non DRUGS
0,0%
27,2%
20,0%2008
40,0%
60,0%
80,0%
DRUGS
GENERIC
OTC DRUGS
2Q09
14,9%
,
72 3%
72,3%
18,8%
BRANDED
Medicamentos
DRUGS
GENERIC
OTC DRUGS
74,4%
18,3%
BRANDED
0 0%
0,0%
27,7%
20 0%
20,0%
40 0%
40,0%
60 0%
60,0%
80 0%
80,0%
67,5%
Non Drugs
0,0%
Non DRUGS
74%
14,2%
66,3%
26%
20,0%
25,6%
40,0%
60,0%
80,0%
2
2
Método Recebimento 2009 3%
32%
38%
2%
Método de Recebimento 2008
todo Recebimento 2008
3%
22%
5%
Método Recebimento 2007
33%
Cash
Checks
36%
5%
Debit Card
P D d Ch k
Pre Dated Check
Credit Card
34%
Others
2%
35%
3%
21%
2%
4%
20%
23
DROGASIL : Financial DROGASIL : Financial Highlights
Highlights(1/3)
(1/3)
Gross Revenue Sales
Gross Profit - R$ Millions
Gross Margin % Gross Revenue
R$ millions
34,8%
398,8
1.787,8
21,0%
24,0%
1006
22,9% 23,2%
1 326 6
1.326,6
820,8
2008
2009
CAGR: 33.3% a.a.
250,0
188,4
200,0
226,8
16,0%
2007
350,0
300,0
230,1
20,0%
18,0%
400,0
22,3%
294,2
22 0%
22,0%
993,3
1H09 1H10
22,5% 22,2%
150 0
150,0
14,0%
100,0
12,0%
50,0
10,0%
-
1H09 1H10
2007 2008 2009
Amount
24
DROGASIL : Financial DROGASIL : Financial Highlights
Highlights(2/3)
(2/3)
S.G.A. (with Board Fees)
R$ millions
350,0
307,3
300,0
244,7
250,0
173 5
173,5
200,0
184 5
184,5
143,3
150,0
18,3%18,4% 17,2%
100,0
50,0
17,5%17,5%
-
1H09 1H10
100,0%
90,0%
80,0%
70,0%
60 0%
60,0%
50,0%
40,0%
30,0%
20 0%
20,0%
10,0%
0,0%
2007 2008 2009
% Gross Revenue Sales
FY09oFY08: -1.2 p.p
25
DROGASIL : Financial DROGASIL : Financial Highlights
Highlights(3/3
(3/3)
CAGR: 52% a.a.
Net Profit
R$ millions
EBITDA 79,4%
R$ milions
120,00
45,8%
100,00
74 6
74,6 80,00
60,00
32,8 40,00
,
4,2%
3,3% 3,9%
33,1%
15,0%
80,0
10,0%
60,0
25,0%
73,5 55,2 5,0%
20,0
6,7% 7,4%
2007 2008 2009
20,0%
15,0%
40,0
5,0%
0,0%
1H09 1H10
66,1 51,2
4,5%
0,00
30,0%
100,0
51,2 35,9 45,0 4,4%
20,00
120,0
20,0%
25,3%
118,6 25,0%
6,6%
10,0%
5,0%
5,1%
-
0 0%
0,0%
1H091H10
200720082009
% Gross Revenue Sales
Margin EBITDA
26
PERFORMANCE BENCHMARK(1/6)
27
PERFORMANCE BENCHMARK(2/6)
Dec‐09
Dec‐08
Dec‐07
$
$98.729,0
$
$87.471,9
$
$76.329,5
12,9%
14,6%
74,2%
Gross Profit
$20.380,0
$18.290,4
$16.107,7
Gross margin
20,6%
20,9%
21,1%
CVS
Net Sales
Sales Growth
Net profit
Return On SALES
EBITDA
EBITDA margin
g
$ 3.696,0
3,7%
$ 7.815,0
7,9%
,
$ 3.212,0 $ 2.637,0
3,7%
3,5%
$ 7.188,0 $ 5.889,0
8,2%
,
7,7%
,
28
PERFORMANCE BENCHMARK(3/6)
Retail Pharmacy Segment
CVS CVS
Net Sales
Dec‐09
Dec‐08
Dec‐09
Dec‐08
Dec‐07
1,720,548
1,260,147
833,069
36.5%
51.3%
Dec‐07
DROGASIL
Net sales
$55.355,0
$48.989,9
$45.086,5
13,0%
8,7%
11,9%
Gross Profit
$16.593,0
$14.704,4
$13.110,6
Gross Profit
398,850
294,158
226,834
Gross margin
g
30,0%
,
30,0%
,
29,1%
,
g
Gross margin
23.2%
23.3%
27.2%
S.G.A.
$ 12.434,0
$ 10.988,0
$ 10.151,0
S.G.A.
307,328
244,706
184,538
SGA
S.G.A
22 5%
22,5%
22 4%
22,4%
22 5%
22,5%
SGA
S.G.A
17 9%
17.9%
19 4%
19.4%
22 2%
22.2%
Operating profit
$ 4.159,0
$ 3.753,0
$ 2.960,0
Operating profit
105,220
69,770
47,701
EBITDA
$ 4.159,0
$ 4 159 0
$ 3.753,0
$ 3 753 0
$ 2.960,0
$ 2 960 0
EBITDA
118 574
118,574
69 378
69,378
51 266
51,266
7,5%
7,7%
6,6%
6.9%
5.5%
6.2%
Sales Growth
EBITDA margin
Sales Growth
EBITDA margin
Source: Company reports;Annual Reports. Source: Company reports;Annual Reports. (All values US$000) Comparative to Net Sales
(All values R$000) Comparative to Net Sales
29
PERFORMANCE BENCHMARK(4/6)
Aug‐09
Aug‐08
Aug‐07
Dec‐09
Dec‐08
Dec‐07
1,720,548
1,260,147
833,069
Sales Growth
36.5%
51.3%
$ 15,244.0
Gross Profit
398,850
294,158
226,834
28.2%
28.4%
Gross margin
23.2%
23.3%
27.2%
$ 14,366.0
$ 13,202.0
$ 12,093.0
S.G.A.
307,328
244,706
184,538
22.7%
22.4%
22.5%
S.G.A
17.9%
19.4%
22.2%
Operating profit
$ 3,164.0
$ 3,430.0
$ 3,189.0
Operating profit
105,220
69,770
47,701
EBITDA
$ 4,222.0
$ 4 222 0
$ 4,281.0
$ 4 281 0
$ 3,827.0
$ 3 827 0
EBITDA
118 574
118,574
69 378
69,378
51 266
51,266
6.7%
7.3%
7.1%
6.9%
5.5%
6.2%
WALGREENS
Net sales
$ 63,335.0
$ 59,034.0
$ 53,762.0
Sales Growth
7.3%
9.8%
13.4%
Gross Profit
$ 17,613.0
$ 16,643.0
Gross margin
27.8%
S.G.A.
S.G.A
EBITDA margin
DROGASIL
Net sales
EBITDA margin
S
Source: Company reports;Annual Reports. C
t A
lR
t
Source: Company reports;Annual Reports. (All values US$000) Comparative to Net Sales
(All values R$000) Comparative to Net Sales
30
PERFORMANCE BENCHMARK(5/6)
Retail Pharmacy Segment
Dec‐09
Dec‐08
Dec‐07
Dec‐09
Dec‐08
Dec‐07
36.5%
51.2%
23.5%
CVS Net Sales Growth
l
h
13,0%
8,7%
11,9%
DROGASIL
Net Sales Growth
SSS
5,0%
4,5%
5,3%
SSS
27.4%
19.0%
15.6%
Pharmacy % of Net Revenue
Pharmacy % of Net Revenue
67,5%
67,5%
67,8%
DRUGS % of GROSS Revenu
DRUGS % of GROSS Revenu
72 8%
72.8%
72 3%
72.3%
73 6%
73.6%
Third Party % Pharmacy Revenue
96,9%
96,1%
95,3%
Third Party % GROSS Revenue
4.0%
5.0%
5.0%
Number of Stores
7.074
6.981
6.301
Number of Stores
283
256
211
Source: Company reports;Annual Reports. (All values US$000) Comparative to Net Sales
Source: Company reports;Annual Reports. (All values R$000) Comparative to Net Sales’
31
PERFORMANCE BENCHMARK(6/6)
Aug‐09
Aug‐08
Aug‐07
Dec‐09
Dec‐08
Dec‐07
36.5%
51.2%
23.5%
WALGREENS
N S l G
Net Sales Growth
h
7 3%
7.3%
9 8%
9.8%
13 4%
13.4%
DROGASIL
Net Sales Growth
SSS
2.0%
4.0%
8.1%
SSS
27.4%
19.0%
15.6%
Pharmacy % of Net Revenue
Pharmacy % of Net Revenue
65.3%
64.9%
65.0%
DRUGS % of GROSS Revenu
DRUGS % of GROSS Revenu
72 8%
72.8%
72 3%
72.3%
73 6%
73.6%
Third Party % Pharmacy Revenue
95.4%
95.3%
94.8%
Third Party % GROSS Revenue
4.0%
5.0%
5.0%
Number of Stores
7,496
6,934
5,997
Number of Stores
283
256
211
Source: Company reports;Annual Reports. (All values US$000) Comparative to Net Sales
Source: Company reports;Annual Reports. (All values R$000) Comparative to Net Sales’
32
DROG3: SHAREHOLDERS STRUCTURE
DROG3
: SHAREHOLDERS STRUCTURE
Free Float
41,36%
Tantra
Participações
P
i i
Ltda
10,3%
Nota:
1.
2.
3.
4.
5.
Members of BoardPires Family
6,78%
Treasury
5,36%
Tantra –Lafer Galvão Family (100%)
5
Oliveira Dias Family (100%)
Stock Option total of 605,264 shares. ( June 2007) . Stocks Option Exercized: 346,200 shares.
Share Price: R$39,0 (Sept 10, 2010))
Buy Back completed: total de 3,706,696 shares in October 08, 2008. Quantity as of March 10, 2010: 3,367,136 shares.
Segment “Novo Mercado”.
Fiscal Board.
Tag Along.
Carlos Pires Oliveira
Dias
26,21%
1
Regimar Comercial S.A
2
9,40%
0 55%
0,55%
Executive
Directors
3
Number of Outstanding Shares:
59.406 M shares
Market Cap: R$ 2,316.8M 4
33
DROG3: RESEARCH COVERAGE & ESTIMATIVES
Values ( R$ 0 0 0 )
Gross Sales
Net Profit
EBITDA
T.P.
BRADESCO
2010
2.151
2011
2.659
2010
91.000
2011
114.000
2010
150.000
2011
196.000
2011
R$ 55,3
FATOR
2.177
2.847
92.000
109.000
147.000
181.000
R$ 37,5
ITAU
ITAU 2.135
2.592
91.000
111.000
152.000
184.000
R$43,6
BTGPACTUAL
2.105
2.715
91.000
126.000
152.000
203.000
R$44,0
M. STANLEY
2.189
2.618
81.000
101.000
143.000
177.000
R$32,2
SAFRA 2.070
2.461
92.000
113.000
153.000
186.000
R$ 50,1
RAYMOND James
2.033
2.677
91.100
118.900
149.400
196.200
R$ 39,0
GOLDMAN Sachs
2.141
2.656
89.900
114.600
149.500
186.900
R$ 40,0
CREDIT Suisse
2.025
2.460
89.000
110.000
145.000
183.000
R$ 47,0
AVG
2 .1 1 4
2 .6 3 2
8 9 .7 7 8
1 1 3 .0 5 6
1 4 8 .9 8 9
1 8 8 .1 2 2
R$ 4 5
Last. update: p
9/22/2010
/ /
Phone
E-Mail
Reports
In
Ricardo Boiati/Rodrigo Santoro
(5511) 2178‐5326
[email protected]
English
Juliana Rozenbaum /Marcio Osako
(5511) 3073‐3040
juliana.rozenbaum@itau‐unibanco.com.br
English
Javier Martinez/ Clarissa Berman
Javier Martinez/ Clarissa Berman
(+1) (212)761‐4542
(+1) (212)761
4542
Javier Martinez Olcoz@morganstanley com
[email protected]
English
Iago Whately/ Caio Monteiro Walter
(5511) 3049‐9480
[email protected]
English
BTG PACTUAL
Fabio Monteiro/Carlos Vasques
(5511) 3383‐2006
[email protected]
English
SAFRA BANK Erick Guedes/ Felipe Rotenberg
(5511) 3175‐7821
[email protected]
English
RAYMOND JAMES
Guilherme Assis/Roberto Dib
(+5511)3513‐8706
[email protected]
English
GOLDMAN SACHS
Irma Sgarz/Rachel Rodrigues
(+5511)3317‐0728
[email protected]
English
Marcel Moraes/Ricardo Scodro
(+5511)3841‐6302
[email protected]
English
BANK/BROKER
RESEARCH
ANALYST
BRADESCO
ITAU
MORGAN STANLEY
MORGAN STANLEY
FATOR
CREDIT SUISSE
34
E.V. DROG3
35
Dividends & I.O.C.
d d
38%
35%
36%
34%
On Sept 16, 2010 R$6,200.0M 39.000,0
announced as IOC. 36.000,0
,
35%
33.000,0
33%
30.000,0
31%
29%
26%
27.000,0
25%24.000,0
23%
21.000,0
20%
35 412
35.412
18 000 0
18.000,0
17%
15.000,0
12.000,0
19.422
10.005
2.824 2.354 2.848 3.366 5.931
IOC & Dividends
( R$000)
Título do
Eixo
9 000 0
9.000,0
5.022 5.750
9.52211.200
6.000,0
3.000,0
00
0,0
% NET PROFIT
36
DROG3: ACCOMPLISHMENTS
DROG3
: ACCOMPLISHMENTS
37
2010: A New
2010: A New Year of Accomplishments
Accomplishments....
•
•
•
•
•
•
Drogasil joined the “Campanha
Campanha do Agasalho
Agasalho” – Solidarity Fund
of S.Paulo State . Drogasil joined the campaign on May 31 for all
Drogasil stores in S.Paulo metropolitan area.
Drogasil in the Solidarity Exchange Campaign with
AACD(children impaired association). Cash Exchange in the
cashier can be donated automatically to AACD and a coupon is
issued in the amount donated to Drogasil customer.
customer
According to “TOP 500 Companies”‐ Maiores & Melhores Exame
, edition 2010 , Drogasil is ranked in 231 position (growth of 82
positions ).
)
Drogasil is awarded by ABRASCA(Brazilian association of Listed
Companies) with Shareholder Value Creation Prize‐ for the
second time,
time for retail segment.
segment
Drogasil has conquered IR Magazine Awards Brazil 2010,in the
category Best Evolution in Investor Relations‐ Small & Mid Cap
S
Segment.
t
Brand Analytics institute ranks Drogasil brand in 39 position
among top 50 most valuable brands in Brasil.
38
Thank You.
D
Drogasil S.A.
il S A
Avenida Corifeu
Avenida Corifeu de Azevedo Marques, nº 3.097
Vila Butantã –
Vila Butantã – São Paulo
05339‐‐900
05339
http://www.drogasil.com.br/ir
Roberto Listik
Roberto
Roberto Listik
IRO
[email protected]
Phone (+5511)3769
(+5511)3769‐‐5670
Claudio Roberto Ely
CEO
[email protected]
l @d
il
b
Add DROG3 IR site to your
DROG3 IR site to your mobile: mobile: http://mobile.drog
http://mobile.drogasil.com.br
GOLDMAN SACHS– NON DEAL ROADSHOW –September 2010- DROG3
39