DROGASIL

Goiânia- Av. 85
São Paulo – Shopping Bourbon
DROGASIL
Ribeirão Preto- Bernardino de Campos
Sorocaba
BRAZIL DAY 2008- DROG3 – October 28, 2008
1
0
Presenters
Paulo Sérgio Coutinho
Galvão Filho
Drogasil Member of the Board
Brief Profile
CEO of GL Holdings S/A. Shareholder and Member of the Board of Drogasil
S/A since 1994.
Partner of Klabin Irmãos & Cia. Member of the Board of Klabin Group.
Board Member and Director of ABRASCA (Brazilian Association of PublicTraded Companies) and former Board member of BM&FBovespa S/A.
Bachelor´s Degree from PUC-Pontifícia Universidade Católica São Paulo.
Post Graduate Studies in Finance at University of California . Post Graduate
Studies from Harvard Business School.
Roberto Listik
IR manager since 2007.
Investor RelationsManager
Thomson Financial representative for Brazil and Latin America Regions.
Financial Career developed at Chase,Citibank , Banco Cidade and EDS in
senior positions.
Bachelor´s Degree and Post Graduated Studies from Fundação Getúlio
Vargas- S.Paulo Brazil.
2
1
1935- Drogasil is founded on March 28, 1935, when owners of
two small pharmacy chains, Drogaria Bráulio and Drogaria Brasil,
combined their respective experience and financial resources to
form a new company under the name Drogasil Ltda.
1972- Drogasil became a corporation (sociedade anônima) .
1977-, Drogasil became registered as a public company with the
CVM(Brazilian SEC).
1979-, Drogasil is pioneer on developing self service concept on
pharma retail sales.
2000- Drogasil
speeds the information technology systems
process to create a network linkage for all its stores with
distribution center. In a turnaround process, implemented several
other measures to increase the efficiency on inventory control,
cash and sales activity reports.
2007- Drogasil register for the "Novo Mercado" listing segment,
highest level of corporate governance at BM&FBovespa.
3
Drogasil HQ (1941) - Rua José Bonifácio, 166 - SP
Drogasil: Snapshot
Pharma Retail Leader in Brazil
Overview
Drogasil Stores in Brazill
Drogasil has 73 years of presence in pharma
cosmetics retail in Brazil..
Top 500 , ed 2008: ranked 365. Moved up 18
positions.
D.F.
Minas Gerais
Second Largest drugstore chain in S.Paulo.
# Stores:
27
4th Largest drugstore chain in Brazil.
# Stores
Logistics & Transport
Goiás
Goiá
Goiás
Geographic coverage on 1,000 km over 4
Brazilian States: 43 vehicles- own fleet.
# Stores:
25
19
249 Stores.
Minas Gerais
DRUGS MARKET SHARE
9,93%
8,63%
7,53%
São Paulo
5,98%
5,88%
3,87%
3,82%
3,49%
São Paulo
# Stores:
- metropolitan area:
Brasil
S.Paulo
Minas
Gerais
GOÍAS
- Inner Cities
178
117
61
Legenda
Distribution Center
Stores
Source: IMS Health- RD report
Note:
1
June 2008,
June 2007
June 2008
4
3
Drogasil :Shareholders
SHAREHOLDERS PROFILE
in the FREE FLOAT
INTERNATIONAL
59,90%
BRASIL
40,10%
Carlos Pires Oliveira Dias
26,21%
Free Float
41,36%
Tantra Participações Ltda
10,34%
Managers
6,78%
Treasury
5,91%
Regimar Comercial S.A
9,40%
1
2
Note:
1.
2.
3.
4.
5.
Tantra - Lafer Galvão Family (100%)
Oliveira Dias Familiy (100%)
Stock Option Plan dilution up to 3,0%
Stock Price: R$9,49 ( October 14, 2008)
Buy Back Program Completed :
total of 3,706,696 shares as of October 15,
2008.
Outstanding Shares as of October 2008:
59.060 M shares
Market Value: R$ 560,4 MM 4
5
4
KEY DRIVERS TOWARDS DROGASIL GROWTH
Formal Economy: Tax Evasion Reduction
10,0%
+
GROWTH
“Life Style ” Drugs patent expiration in 2008-2009.
+
Generic Drug market penetration growth.
+
+
Brazilian population life expectancy growth.
+
Growing presence women in labour market.
6
5
VAT ADVANCE-ST
Electronic Invoice
The ICMS(VAT) Systematic- A Comparison
- São Paulo
VAT
ADVANCE
SALE
PURCHASE
BASE CAL
Supplier
Purchase Price
ICMS Crédito( VAT Credit)
ICMS Retido( VAT Advance)
IVA (38,24% )=Base de Retenção
ICMS Débito ( VAT Debit)
CMV= COGS
Rec. Vendas Brutas= Gross Sales
Preço de Venda= Sales Price
ICMS DEBITO= VAT DEBIT
Venda Líquida= Net SALES
GROSS MARGIN VALUE
GROSS MARGIN ( Compared to Net Sales)
GROSS MARGIN( Compared to Gross Sales)
ICMS DEBITO= VAT DEBIT
ICMS CREDITO=VAT CREDIT
ICMS ANTECIPADO= VAT ADVANCED
Total
DEBIT
CREDIT
18%
100.00
100.00
(18.00)
82.00
18%
138.24
138.24
(24.88)
113.36
31.36
27.66%
22.68%
(24.88)
18.00
(6.88)
SUBSTITUIÇÃO
TRIBUTÁRIA
100.00
100.00
18%
(18.00)
6.88
138.24
18%
24.88
106.88
B
A
C
D
138.24
138.24 E
138.24
31.36
22.68%
22.68%
(6.88)
(6.88)
(1)DRUGS
3 Categories for Drugs- Price Reference Basis (Mark-Up Basis) for VAT Calculation under "Substituição".
38,24% -Drug products that collect Pis/Pasep and Cofins taxes(also denominated positive list) .
33,00% -Drug products that does not collect Pis/Pasep and Cofins taxes( also denominated negative list).
41,38%- Drug Product is under no classification for Pis/Pasep and Cofins taxes( also denominated neutral list)
(1)Cosmétics & Toiletries.
IVA (Mark-Up Basis) for VAT Calculation under "Substituição".
CAT 8 as of January 31, 2008.
Parfums: 165,55%
Deo Colonies, Skin Care, Permanents, products : 71,60%( any CFT product subsject to previous icms =vat @ 25%)
Hair Care, Oral Care, bath& Shower, Men´s Toiletries, Baby Care:38.90%(any CFT product subject to previous icms=vat@ 12% or 18% no regime anterior de icms
7
6
L
I
f
e
E
x
p
e
c
t
VOLUME DE VENDAS NO COMÉRCIO VAREJISTA - ARTIGOS FARMACÊUTICOS, MÉDICOS, ORTOPÉDICOS, DE
PERFURMARIA E COSMÉTICOS - CRESCIMENTO ACUMULADO EM 12 MESES
Fonte: IBGE/PMC
Elaboração: Bradesco
I
N
c
o
m
e
14,5%
12,18%
12,5%
10,83%
10,5%
9,87%
8,95%
8,5%
7,21%
6,31%
6,5%
6,83%
6,44%
5,68%
4,99%
4,39%
jun/08
mar/08
dez/07
set/07
jun/07
set/06
jun/06
mar/06
dez/05
set/05
jun/05
mar/05
mar/07
3,50%
3,29%
2,5%
8
4,33%
dez/06
4,5%
dez/04
G
r
o
w
t
h
7
Pharma Market - Brasil
Brazilian Pharma & C.F.T Markets
30,000
Pharma Market Brasil - Units, Sales in R$ & USD(000)
25,000
CAGR11.8%aa
20,0000.35
30,000
32.48%
25,000
R$ 25,228
32.26%
15,0000.3
R$ 22,875
26.86%
20,190
14,985 16,934
13,428
11,84812,282
5,000 9,210 10,065
10,000
R$ 20,792
0.25
R$ 18,466
20,000
R$ 16,580
18.37%
15,000
12.60%
11.37%
00.2
$14,744
$11,147
$9,417
10,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
0.15
Source: Febrafarma (R$000)
0.1
C.F.T. - Brazilian Market
10.29%
10.02%
$7,108
$5,603
5.16%
3.58%
5,000
6.67%
4.50%
0.05
251,585
1,486
1,422
1,352
1,305
0
2005
2006
2007
2008
15
Source: L 12 Months Base August- IMS Health
Valor R$
Valor USD
UNID
Cresc R$
Cresc USD
CAGR13.5%aa
0
20
2004
28,127
23,88325,908
10
Cresc UND
5.5
5.9
6.6
7.5
8.3
1997
1998
1999
2000
2001
9.7
11.5
17.5
13.5
19.6
15.4
5
0
2002
2003
2004
2005
2006
2007
Source: ABHIPEC R$ Billions( m.s.p. values)
9
8
Comparison Framework
Highly Fragmented Market
Number of Stores
# of Drugstores
Other
Drugstore's
chains
4%
58,745
55,591
12%
ABRAFARMA
Drugstore's
chains1
3%
Independent
retailers
93%
(51.213 stores)
Total Revenues
Brazil vs. US
Other
Drugstore's chains
15%
+
60%
# Drugstores per million habitants
40%
298
196
Independent
retailers
60%
Source: IMS Health as of 2006
Note:
1
Brazilian Drugstore Chains Association
ABRAFARMA
Drugstore's
chains1
25%
23%
US 1
Brazil
Brazil
25%
US
Source: Census Bureau, IBGE NACDS and IMS as of 2006
Note:
1 Forecasted. Quotes any retail channel where
pharmaceuticals are sold including traditional stand-alone drug
stores, including supermarkets and department stores
Scale is key for profitability
Increase in regulatory framework and in competition should trigger the consolidation process
in the pharmaceutical retail sector
10
9
Value Creation – Brand Loyalty- Consumer Respect – Intrinsic Values
...Shareholders
… Clients
..Suppliers
Chain of choice of our suppliers in new
launchings.
Drogasil increases its relevance as
distribution channel for C&T + Pharma
Industry.
Strategic Points of Presence..
Geographic Predominance.
Balance Sheet Structure..
TNS INTERSCIENCE AWARD
•Affiliate Program
Afinidade.(Drogasil
convênios)
•Affiliate Cards.
• Delivery(Fone
Farmácia).
•Drogasil Credit Card
…
11
10
DROGASIL- Services
Call Center
Drogasil CRM.
Fone Farmácia
Home Delivery.
Dermocenter
Skin Care Sales with Pharmacist
Consultancy.
Beauty Center
Beauty and Make Up center with Sales
Assitance from beauty specialists..
Programa Farmácia Popular do Brasil
Developed by Brazilian Health Ministry
offer discounts on selected drugs from
therapeutic classes related to birh
control, blood pressure, diabetes and
obesity
12
Expansion - New Markets- Selective and Accretive
Acquisitions.
Store Locations: Drogalins: 10 Store
locations in Goiania City ( August 21 ,
2007).
Company: Drogaria Vison- Drugstore
chain acquisiton with 24 Stores in
Brasilia D.F.(Feb 2008)
Organic Growth: YTD OCT 2008- 15
Stores.
Drogasil: Store Expansion with Consistent Financials
243
211
64 cities in
Brasil
151
164
(October/08)
179
4,6%
3,3%
3,5%
2004
2005
2006
Store Number
13
6,1%
187
5,6%
6,0%
5,7%
2T07
2T08
5,1%
2007
EBITDA MARGIN-% Gross Revenue
12
Drogasil : Continuous Training Towards Service Excellence.
.150,000 hours of employee training in 2007. YTD Sept 2008:151.144 Hours
782 pharmacists( as of Sept, 2008) for 249 stores. Pharmacists available
during store working hours.
Scholarship Program : Granted 53 scholarships for College Programs.
Turn Over Drogasil: YTD Sept 2008: 25.23%.
Number of Employees per area.
2006
Adm
2007
2008
2008
2008
1Q08
2Q08
3Q08
201
220
224
227
239
Distr.Center 271
314
366
380
418
Stores
2,989
3,714
3,803
4,395
4,501
Total
3,461
4,248
4,393
5,002
5,158
14
13
DROGASIL : Major Topics 2008 – Brief Update
Buy Back Program : completed 3,7 MM shares as of October 2008. Total disbursement of
R$46,952M.
ABRASCA Value Creation Prize to Shareholders- First Edition –2008. July 29, 2008.
Drogasil in Brasilia : Operation start up on July 21, 2008.
Vison Merger into Drogasil: June 30, 2008.
Electronic Invoice( NF-e) established to all Drogasil stores: March, 2008.
Drugstore Chain Vison Acquisition: February 13, 2008.
Guidance Revision Upwards- From 30 to 50 new store opennings in 2008. Feb 11,2008.
Substituição Tributária(VAT Advance) starts in S.Paulo State: Feb 01, 2008.
Buy Back Program introduction: Jan 17, 2008.
15
14
DROGASIL : Major Topics- Brief Update
Dividends & I.O.C.
50%
NET PROFIT
42.6%
35.2%
35.8%
33.8%
34.6%
R$ 9,000
35%
28.5%
30%
R$ 6,000
2007
1H
1H
22,312
10,837
Depreciation/Amortization
4,576
2,602
8,119
5,064
Interest Expenses (Income)net
(5,955)
768
(11,160)
1,531
(230)
103
(135)
143
5,250
4,664
8,134
6,849
16,860
14,815
27,540
24,138
Income Tax
EBITDA MARGIN (%GROSS REVENUE)
5.1%
6.0%
4.5%
5.1%
R$ 3,000
R$ 5,931
10%
2008
6,884
EBITDA
R$ 10,005R$ 9,522
15%
2Q07
12,759
Non Operating Result
25%
20%
2Q08
R$ 12,000
46.2%
45%
40%
EBITDA RECONCILIATION
R$ 4,500
R$ 3,366
5% R$ 2,824 R$ 2,354 R$ 2,848
R$ 4,500
R$ 3,075
0%
R$ 0
2002 2003 2004 2005 2006 2007 2008
1H08
2Q07 2Q08 3Q07 3Q08
GROSS SALES
EBITDA
EBITDA MARGIN (% GROSS SALES)
% NET PROFIT
608,541
469,181
16,860
14,815
27,540
24,138
5.1%
6.0%
4.5%
5.1%
1,300
Non Recurring Expenses: Vison Lay-Offs
480
480
Non Recurring Expenses: Vison Third Party Services
237
441
EBITDA Adjusted
EBITDA Ajusted margin (% Gross Revenue Sales)
16
246,528
1,300
Discounts on Purchase - Interest Income
IOC & Dividends
329,760
18,877
14,815
29,761
24,138
5.7%
6.0%
4.9%
5.1%
15
Growth with Efficiency
2Q07
2Q08
DRUGS
Generic
OTC
DRUGS
73,6%
Generic
14,8%
OTC
19,6%
Branded
75,3%
15,1%
21,3%
Branded
65,6%
63,5%
Non Drugs
0,0%
0,0%
24,7%
26,4%
Non Drugs
20,0%
40,0%
60,0%
20,0%
40,0%
60,0%
80,0%
80,0%
5%
33%
36%
Receivable Method – 2Q 2008
Caixa
Cheques
Cartão Débito
Cheque Pré
Cartão Crédito
Convênios/Pbms
2%
3%
21%
17
16
DROGASIL: SAME STORE SALES
70%
58,8%
60%
55,9%
47,5%
50%
45,5%
44,4%
41,1%
40%
30%
22,7%
19,1%
20% 14,3%
10%
0%
11,6%
2004/03
15,6%
14,6%
17,3%
18,0%
16,5%
12,3%
11,3%
14,9%
2005/04
2006/05
2007 / 2006
1Q08 / 1Q07
2Q08 / 2Q07
Total
+ 3 Years
- 3 Years
DROGASIL
18
2Q 07
2Q08
Sales Area- Sq M2 total eop
25.588
32.331
Sales Area- Sq M2total- Avg in the
period
25.301
32.074
Number of Stores- eop
187
243
Number of Stores- Avg in the period
185
241
Transactions
8.323
9.911
Number of Store Employees- eop
3.286
4.395
17
DROGASIL: Same Store Sales Index Analysis.
Number of Stores at FY 2007 end:211 Stores
Considered number of new stores opened until Sept 2008.
STORES
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
(+) 3 Years.
149
154
159
159
163
167
171
175
179
(-) 3 Years
30
29
27
35
47
47
72
73
69
Not Included in the Index
32
56
57
54
38
34
5
0
0
211
239
243
248
248
248
248
248
248
4
5
1
5
TOTAL
Organic Growth
Closed
19
18
Growth with Efficiency
CAGR:24,4%%
GROSS REVENUE
R$Million
26,0%
1.000,0
23,1%
GROSS MARGIN
24,1%
1.006,0
30%
R$ 250
900,0
817,5
800,0
658,5
700,0
33,8%
600,0
522,8
R$ 200
23,0%
22,2%
23,1% 22,6%
22,5% 22,5%
R$ 150
500,0
329,7
400,0
300,0
R$ 226,8
R$ 184,5
R$ 149,1
R$ 120,9
R$ 100
246,5
R$ 50
200,0
100,0
R$ 56,6R$ 73,2
10%
R$ 0
-
2Q07 2Q08
2004 2005 2006 2007
2Q072Q08
Value R$millions
20
20%
2004 2005 2006 2007
Gross Margin-% on Gross Revenue
19
Growth with Efficiency- Performance BenchMark
Drogasil X Abrafarma
Monthly Sales/ Store
513
470.00
420
420.00
370.00
Drogasil X Abrafarma - Sales per Employee
320.00
25,000
270.00
23,500
22,372
22,000
220.00
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
BR
Drogasil
Drogasil XAbrafarma
Abrafarma
Transactions July 07=100Basis
20,500
23,207
21,275
20,816
21,710
22,589 22,789
21,577
20,999
16,000
140
17,042
17,762
16,925
19,150
18,787
18,128
17,621
23,414
22,972
20,187
19,000
17,500
23,661
16,631
17,692 17,871
17,144
18,195
15,626
14,500
13,000
130
115.18
110
105.37
104.92
100
100.00
102.89
100.21
97.49
108.27
102.96
99.83
96.01
114.19
Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08
110.28
108.10
105.60
10,000
116.51
114.07
104.05 102.65
100.70 101.86
11,500
123.27
122.07
120
Abrafarma BR
Jul-08
Drogasil
103.70
94.45
90
80
Jul-07 Aug-07 Sep-07
Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08
Abrafarma BR
Drogasil - Total
Jul-08
21
20
Growth with Efficiency- Performance BenchMark
ABRAFARMA
BRAZIL
2006
GROSS SALES
6,804,195 7,892,692
2006
1,478,047 1,593,654
DROGASIL
2007
2006
5,986,682 6,886,601
16.0%
SALES GROWTH
GROSS PROFIT
2007
ABRAFARMA
(-) Drogasil
2007
817,513 1,006,091
15.0%
23.1%
1,293,531 1,366,820
184,516
226,834
GROSS MARGIN
21.7%
20.2%
21.6%
19.8%
22.6%
22.5%
NET PROFIT
80,087
62,731
59,292
29,975
20,795
32,756
ROS
1.18%
0.79%
0.99%
0.44%
2.54%
3.26%
168,167
141,770
129,916
90,505
38,251
51,265
2.47%
1.80%
2.17%
1.31%
4.68%
5.10%
EBITDA
EBITDA MARGIN
Stores
Dec-06
Dec-07
Aug-08
1842
2017
2190
ABRAFARMA -SP
630
684
748
DROGASIL
179
211
244
ABRAFARMA Brasil
22
21
Growth with Efficiency
CAGR:42,5%%
CAGR:60,7%%
57.5%
NET PROFIT- Adjusted
32,8
35,0
25,0
85.0%
20,0
22.3%
20,8
3,2%
2,8%
10,0
7,91,5%
6,8
6,0%
40,0
3,0%
9,7 1,4%
20,0
5,0
1,0%
10,0
-
0,0%
2Q08
2004
R$ MM
2005
2006
5,7%
6,0%
38,3
5,1%
27.0%
30,0
2,0%
12,8
2Q07
51,3
32.2%
4,6%
2,5%
15,0
8,0%
63.4%
4,0%
50,0
3,9%
34.0%
5,0%
60,0
113.8%
30,0
EBITDA Adjusted
R$ miillions
2007
18,8
3,3%
4,0%
3,5%23,4
17,7
14,8
2,0%
0,0%
2Q07
2Q08
2004
2005
2006
2007
% Rec. Bruta
% Gross Revenue
23
22
24
30
29
28
27
23
25
25
23
25
24
26
28
33
35
33
38
42
46
50
52
55
57
58
55
57
59
57
62
61
62
68
68
67
66
65
64
62
61
61
59
58
56
56
55
54
56
54
52
52
54
54
52
53
55
52
56
58
58
60
59
58
58
58
57
54
55
56
53
52
50
49
48
53
52
54
52
55
55
54
61
59
60
61
62
58
59
69
70
72
Lojas
jul-08
abr-08
abr-08
19
22
20
20
21
24
24
24
22
30
29
29
29
27
27
27
26
24
23
23
25
22
22
22
22
22
22
30
27
28
27
36
38
44
50
48
49
50
48
50
CD
jan-08
out-07
18
18
17
23
22
22
21
23
24
24
24
23
33
29
28
30
29
30
32
29
41
44
DIAS EM ESTOQUE - TOTAL
UNIDADES (MIL)
jul-07
abr-07
jan-07
out-06
jul-06
abr-06
jan-06
out-05
jul-05
abr-05
23
22
26
25
25
26
Me
jan-05
out-04
jul-04
abr-04
jan-04
out-03
jul-03
abr-03
jan-03
out-02
22
jul-02
22
34
32
32
32
33
32
32
30
35
34
30
35
33
31
31
31
28
28
32
28
32
31
28
31
30
30
29
29
29
27
29
29
32
32
27
31
29
32
30
31
32
30
31
31
33
33
31
33
31
33
31
32
32
31
34
30
32
31
29
32
32
33
30
31
30
30
30
29
31
29
26
28
27
25
24
24
24
24
abr-02
Working Capital Analysis: Days on Inventory
Total
80
70
60
50
40
30
20
10
0
23
Gross Revenue Sales
Net Sales
1H08
2Q 08
1H 07
2Q 07
608.541
570.375
329.757
316.630
469.181
388.630
246.528
204.293
Current Assets
Checks
Debit & Credit Cards
Others
(-) Provision for Bad Debt
Taxes to recover
Income Tax
Inventories
% Gross Sales
% Gross Sales
0,7%
4.540
1,4%
8,9%
54.017
16,4%
1,3%
8.013
2,4%
-0,1%
(677)
-0,2%
1,9%
11.800
3,6%
0,5%
3.045
0,9%
28,6%
174.286 52,9%
4.540
54.017
8.013
(677)
11.800
3.045
174.286
Current Liabilities
Suppliers
Taxes,
Salaries
121.147
27.530
20.535
19,9%
4,5%
3,4%
121.147
27.530
20.535
36,7%
8,3%
6,2%
81.482
10.688
14.098
17,4%
2,3%
3,0%
81.482
10.688
14.098
33,1%
4,3%
5,7%
Rentals
Tenure Entitlement
2.351
105
0,4%
0,0%
2.351
105
0,7%
0,0%
1.721
252
0,4%
0,1%
1.721
252
0,7%
0,1%
Current Assets
Current Liabilities
255.024
171.669
255.024
171.669
W.I.>
83.355 13,7%
Additional W.C> >
25.307
83.355
4,2% 17.168
% Gross Sales
% Gross Sales
4.389
0,9% 4.389
1,8%
42.442
9,0% 42.442
17,2%
6.218
1,3% 6.218
2,5%
(438)
-0,1%
(438)
-0,2%
5.784
1,2% 5.784
2,3%
3.197
0,7% 3.197
1,3%
105.754
22,5% 105.754 42,9%
167.345
108.240
25,3%
5,2%
167.345
108.240
59.104
12,6%
59.104
24,0%
8.250
1,8%
-71
0,0%
Days on Receivables
19
18
20
19
Inventories
72
64
68
64
Suppliers
50
45
52
50
Cash Cycle
41
38
36
34
25
24
Growth with Efficiency
EBITDA GROWTH.( L 12 M) X EV/EBITDA( L.12M)
25,0
40%
23,1
34%
35%
20,0
30%
27%
15,0
25%
15,0
13,4
17%
13,2
20%
11,7
15%
10,0
15%
10%
10%
EBITDA X SALES GROWTH
5,0
5%
45,0%
20.000
R$ 18.877
0,0
18.000
0%
2Q07
3Q07
4Q07
EBITDA GROWTH.
1Q08
2Q08
16.000
34%
R$ 14.353
R$ 14.815
EV/EBITDA
30,0%
33,8%
R$ 12.814
21,9%
14.000
30,7%
27%
23,1%
12.000
R$ 10.720
10.000
20,8%
8.000
17%
15%
15,0%
6.000
10%
4.000
2.000
0,0%
0
2Q07
26
3Q07
EBITDA
4Q07
SALES GROWTH
1Q08
EBITDA GROWTH.
2Q08
25
Volume(R$000) and Share Price- DROG3 Evolution
DROGASIL: DROG3 PERFORMANCE
R$ 18,0
12.000
R$ 16,0
10.000
R$ 14,0
R$ 12,0
8.000
R$ 10,0
6.000
R$ 8,0
R$ 6,0
4.000
R$ 4,0
2.000
R$ 2,0
R$ 0,0
-
fev/08
mar/08
abr/08
jun/08
DROG3 164 ranking in Bovespa Volume
criteria YTD August 2008.
DROG3 ADTV de R$1,600.0M (Jul 2008)
DROG3 Performance : -37.32% compared
to
jul/08
ago/08
out/08
1.000
20
800
15
600
10
Ibovespa -42.648% YTD Oct 15, 2008..
400
5
200
0
jan-05
fev-05
abr-05
mai-05
jun-05
ago-05
set-05
nov-05
dez-05
fev-06
mar-06
mai-06
jun-06
jul-06
set-06
out-06
dez-06
jan-07
mar-07
abr-07
jun-07
jul-07
ago-07
out-07
nov-07
jan-08
mar-08
abr-08
mai-08
jul-08
ago-08
out-08
0
27
Stock Price (R$)
Rel. Brazil: Bovespa
26
DROG3: Research Coverage
Investment
Analyst
Phone
SAFRA
Victor Martins
(5511) 3175-7689
[email protected]
Portuguese
BRADESCO
Fabio Monteiro/Ricardo Boiati
(5511) 2178-5326
[email protected]
English
UBSPACTUAL
Jander Medeiros
(55 21)3262-9637
[email protected]
English
BULLTICK
Diana Litewski
(5511)3089 -8746
[email protected]
English
ITAU
Luciano Campos/Marcio Osako
(5511) 5029-4160
[email protected]
English
PROSPER
Andre Segadilha
(5521) 2138-8464
[email protected]
(5511)3584-1675
[email protected]
BANK/BROKER
UNIBANCO
Juliana Rozenbaum/Francine Martins
E-Mail
Reports
IN
28
Portuguese
English
27
SELL SIDE ESTIMATIVES
Values ( R$000)
Gross Sales
2008 2009
Net Profit
2008
2009
EBITDA
2008
TP
2009
Capital Stock
59,060,064
Shares
Capital Stock
R$ 285,400.0
Million
28,042,074
Shares
Free Float
UBS
1,319 1,575
49,000
55,000
63,900
78,700 R$ 11.3
% Free Float
41.36%
ITAU
1,309 1,575
55,500
63,400
67,500
80,100 R$ 14.2
Share Price Oct 14, 2008
R$ 9.49
BULLTICK 1,293 1,635
49,000
71,000
65,000
101,000 R$13,7
IOC & DIVIDENDS
FY 2007
R$ 10,004.80
Million
UNIBANCO 1,317 1,711
55,000
65,000
68,000
87,000 R$ 17.6
IOC & Dividends
YTD September 2008
R$ 14,021.60
Million
Market Value
R$ 560,480.0
Million
(R$ 161,963.0)
Million
R$ 398,517.0
Million
Net Debt( as of June 08)
E.V
EV/EBITDA(Ebitda e AVG.2008 )
29
6.03
x
28
NGO Sponsorship- Social Commitment
• Meu Primeiro Emprego,
opportunity for youngs to have their First Job.
• Projeto de Inclusão Social,
Opportunity for Disability Persons to have a job.
• AACD,
Treatment and rehabilitation programs for children and
adults with physical disabilities .
• Instituto WCF Brasil,
against child and adult abuse.
• Ação Comunitária,
Promotes social and education care for poor population
in São Paulo city.
• Doutores da Alegria,
Bring Joy and Happiness to Children in hospitals.
• Campanha do Agasalho,
Forward sweaters and blankets collected in Drogasil
stores to charity institutions.
• Fundação Abrinq,
Promotes citizenship of children and young adults.
• Projeto “Obra do Berço”,
Promotes education, health and social welfare to children
and their families.
30
Q&A
Drogasil S.A.
Avenida Corifeu de Azevedo Marques, nº 3.097
Vila Butantã – São Paulo
0533905339-900
http://www.drogasil.com.br/ir
Roberto Listik
Investor RelationsRelations- Manager
Tel.(5511) 37693769-5670
E-mail:
mail: [email protected]
Claúdio Roberto Ely
CEO & Investor Relations Director
E-mail:
mail: [email protected]
BRAZIL DAY 2008- DROG3 – October 28, 2008
31
30