Profarma 4Q10

Profarma 4Q10

• 2.
  4Q10 and 2010Earnings Release March, 3rd, 2011
• 3.
  Highlights in thePeriod • A drop of 3.7 days in the Company's cash cycle when compared with 2009 (IFRS base), to 49.0 days. This is the shortest cash cycle since 2006. This decrease resulted in a fall of about R$ 22.9 million in working capital; • The operating cash flow was positive for the third consecutive year and amounted to R$ 44.4 million, or 1.7% of the net operating revenue; • The net debt stood at R$ 108.7 million in December 2010, a R$ 9.4 million decrease in relation to December 2009, mainly due to the Company's positive operating cash generation, of about R$ 44.4 million; • A rise of 3.0% in consolidated gross revenues year-over-year, totaling R$ 3.1 billion, highlighting the health and beauty category, in which a sharp growth of 37.8% was recorded; • Sales through electronic orders hit a record high and accounted for 65.3% of total sales in 2010; • In October 2010, Profarma decided to terminate the market maker contract with Credit Suisse Brasil SA CTVM; nevertheless, there was no drop in daily liquidity. 3
• 4.
  Gross Revenues Evolution (R$ Million) 3,132.8 3,041.6 807.4 809.8 832.3 4Q09 3Q10 4Q10 2009 2010 4
• 5.
  Gross Revenues Breakdown (R$Million) 4Q10 4Q09 Chg. % 3Q10 Chg. % 2010 2009 Chg. % Branded 554.6 546.3 1.5% 537.8 3.1% 2,083.4 2,058.5 1.2% Generic 59.6 50.8 17.5% 56.2 6.1% 219.5 165.1 32.9% OTC 151.4 157.1 -3.6% 153.7 -1.5% 590.8 602.0 -1.9% Health and Beauty Products 43.9 26.2 67.3% 38.6 13.7% 142.3 103.2 37.8% Hospitals and Vaccines 22.7 27.1 -16.3% 23.5 -3.6% 96.6 112.7 -14.3% Total 832.3 807.4 3.1% 809.8 2.8% 3,132.8 3,041.6 3.0% 5
• 6.
  Market Share Evolution(%) 11.5 11.7 11.6* 10.9* 10.2* 10.2* 10.4* 9.6 2006 2007 2008 2009 2010 4Q09 3Q10 4Q10 *Excluding the similar’s effect Source: IMS 6
• 7.
  Gross Profit andRevenues from Services to Suppliers (R$ million and as % Net Revenues) 11.7% 11.0% 10.7% 10.2% 10.1% 37.9 100.3 181.1 263.6 18.6 26.8 28.4 57.1 43.3 41.7 4Q09 3Q10 4Q10 2009 2010 Gross Profit Revenues from Services to Suppliers Gross Profit Margin(%) 7
• 8.
  Operating Expenses (R$ million and as % Net Revenues) 7.4% 7.4% 7.5% 7.7% 7.1% 202.0 193.9 50.6 48.6 51.5 4Q09 3Q10 4Q10 2009 2010 8
• 9.
  Ebitda and EbitdaMargin (R$ million and as % Net Revenues) 4.1% 4.3% 3.1% 3.0% 2.7% 110.7 79.9 28.0 21.5 18.6 4Q09 3Q10 4Q10 2009 2010 9
• 10.
  Net Financial Expenses (R$ million and as % Net Revenues) 1.1% 1.0% 0.9% 0.8% 0.8% 28.5 26.7 5.3 5.4 6.0 4Q09 3Q10 4Q10 2009 2010 10
• 11.
  Net Profit (R$ million and as % Net Revenues) 2.2% 2.1% 1.5% 1.3% 0.7% 53.2 34.4 15.4 10.5 4.7 4Q09 3Q10 4Q10 2009 2010 11
• 12.
  CASH FLOW (R$ Million) 4Q10 4Q09 Chg. % 3Q10 Chg % 2010 2009 Chg. % Cash Flow Generated / (Used) in Operating Activities (21.3) (19.2) -11.0% 62.1 - 44.4 80.2 -44.7% Internal Cash Generation 22.2 23.7 -6.1% 9.5 134.4% 67.9 92.5 -26.6% Operating Assets Variation (43.5) (42.9) -1.5% 52.7 - (23.5) (12.3) -91.4% Trade Accounts Receivable (16.4) (25.1) 34.5% (50.8) 67.7% (40.6) (8.6) -371.2% Inventories (64.7) (84.1) 23.0% (10.2) -536.1% (1.2) (35.0) 96.6% Suppliers 68.5 102.0 -32.9% 120.7 -43.3% 45.1 80.8 -44.1% Other Items (30.9) (35.8) 13.8% (7.1) -333.7% (26.8) (49.4) 45.8% Cash Flow (Used) in Investing Activities (3.3) (3.6) 7.5% (1.5) -122.0% (8.1) (11.8) 30.9% Cash Flow Generated / (Used) by Financing Activities (15.5) (9.9) -56.8% (43.8) 64.6% (43.8) (94.3) 53.5% Net Increase / (Decrease) in Cash (40.1) (32.6) -22.8% 16.9 - (7.5) (25.8) 70.8% 12
• 13.
  Cycle Previous IFRS Cycle IFRS Basis 4Q08 4Q09 3Q10 4Q10 4Q08 4Q09 3Q10 4Q10 Cash Cycle (Days) * 65.8 52.7 48.8 49.0 Cash Cycle (Days) * 66.0 52.7 48.8 49.0 Accounts Receivable(1) 45.9 41.1 43.3 43.6 Accounts Receivable (1) 45.9 41.1 43.3 43.6 Inventories (2) 49.9 49.6 40.6 48.7 Inventories (2) 53.6 53.9 43.9 52.0 Accounts Payable (3) 29.9 38.0 35.1 43.3 Accounts Payable (3) 33.5 42.3 38.4 46.6 * Average: (1) Average of Gross Revenues in the Quarter (2) Average of COGS in the Quarter (3) Average of COGS in the Quarter 13
• 14.
  Indebtedness: Net Debtand Net Debt / Ebitda* (R$ million) 1.4x 1.4x 1.1x 1.1x 0.8x 118.1 118.1 108.7 108.7 75.1 4Q09 3Q10 4Q10 2009 2010 * Ebitda = Accumulated last 12 months 14
• 15.
  Capex (R$ million and % as Net Revenues) 0.5% 0.5% 0.5% 0.3% 0.2% 12.0 8.3 3.7 3.5 1.5 4Q09 3Q10 4Q10 2009 2010 15
• 16.
  Operating Indicators Service Level Logistics E.P.M. (Units served/ Units requested) (Errors per Million) 93.0% 170.0 90.4% 130.0 88.1% 93.0 4Q09 3Q10 4Q10 4Q09 3Q10 4Q10 16
• 17.
  Profarma vs Ibovespa-% year 2010 120 110 100 101 95 90 * Base 100 em 30/12/2009 80 Jan-10 30-dez-09 Feb-10 29-jan-10 Mar-10 28-fev-10 Apr-10 May-10 30-mar-10 29-abr-10 Jun-10 29-mai-10 Jul-10 28-jun-10 Aug-10 28-jul-10 Sep-10 27-ago-10 Oct-10 26-set-10 Nov-10 26-out-10 Dec-10 Jan-11 25-nov-10 25-dez-10 Ibovespa Profarma 17
• 18.
  Analyst Coverage Company Analyst Telephone E-mail Javier Martinez de Olcoz Cerdan (1 212) 761-4542 [email protected] Morgan Stanley Clarissa Berman (55 11) 3048-6214 [email protected] Merrill Lynch Alexandre Pizano (55 11) 2188-4024 [email protected] Credit Suisse Marcel Moraes (55 11) 3841-6302 [email protected] Juliana Rozenbaum (55 11) 3073-3035 [email protected] Itaú BBA Marcio Osako (55 11) 3073-3040 [email protected] Banco Fator Iago Whately (55 11) 3049-9480 [email protected] Raymond James Guilherme Assis (55 11) 3513-8706 [email protected] BTG Pactual João Carlos dos Santos (55 11) 3383-2384 [email protected] 18