earnings release 1q08 presentation

1. 1 Earnings Release 1T08

2. Highlights For The Period2 Growth of 26.5% in consolidated Gross Revenue when compared to the same period of the previous year, reaching R$ 702.6 million. Profarmas market share reaches 11.8% in the 1Q08, 1.1 percentage points above the share reached in the same period of the previous year. The adjusted EBITDA was of R$ 18.6 million, a 24.0% growth when compared to the R$ 15.0 million posted in the 1Q07. Increase in the service level, reaching 91.2% in the 1Q08, a 1.2 percentage points growth in relation to the 1Q07 and 0.3 percentage points in relation to the 4Q07. Price increase that occurred in March 31st was of 3.1% in average, 50% higher than previous year. 3. Gross Revenues Evolution 3In R$ MM740.4702.6 555.3 1Q07 4Q071Q08 4. Gross Revenues Breakdown4 In R$ MM(R$ Million) 1Q081Q07Chg. % 4Q07Chg. %Branded503.0 374.0 34.5%517.9 -2.9%Generics 34.033.02.8% 46.8-27.4%OTC119.5 99.020.7%128.5 -7.0%Health and Beauty Products 31.037.4-17.1% 31.2-0.8%Other15.111.927.1%16.1-5.8%Total702.6 555.3 26.5%740.4 -5.1% 5. Market Share (%) 5 11.811.59.3 9.69.6 2004 2005 2006 2007 1Q08 Source: IMS 6. Gross Profit and Revenues6 from Services to SuppliersIn R$ MM and as % Net Revenues10.8% 10.4%10.0%9.2 7.45.4 59.855.7 42.8 1Q074Q071Q08 Gross ProfitRevenues from Services to Suppliers Adjusted GP Margin (%) 7. Operating Expenses 7 In R$ MM and as % Net Revenues 8.4%7.7% 7.8% 53.7 47.5 37.31Q07 4Q071Q08EXPENSES: General and Administrative + Selling and Marketing + Logistics and Distribution 8. Net Financial Expenses 8 In R$ MM and as % Net Revenues1.4%0.9% 0.6%9.25.6 3.11Q074Q07 1Q08 9. Net Income 9 In R$ MM and as % Net Revenues 2.0% 1.1%0.8%12.75.1 5.01Q07 4Q07 1Q08 10. Adjusted EBITDA and EBITDA Margin10In R$ MMand as % Net Revenues4.1% 3.1%3.1%26.218.6 15.01Q07 4Q071Q08 11. Cash Flow 11(R$ Million)1Q08 1Q07 Chg. % 4Q07 Chg. %Cash Flow (Used) / Generated in Operating Activities5.7 (58.0)n.a.(6.2) n.a.Internal Cash Generation14.810.540.8%14.3 3.5%Operating Assets Variation(9.1)(68.5) -86.8% (20.4) -55.7% Trade Note Receivable29.9 (43.4)n.a.(30.5)n.a. Inventories19.3 (3.4) n.a.(59.1)n.a. Suppliers(49.4) (19.1) 158.3%81.6 n.a. Other Items(8.8)(2.5)252.7% (12.5) -29.4%Cash Flow (Used) in Investing Activities (2.1)(0.9)128.9% (2.7)-22.2%Cash Flow (Used) / Generated by Financing Activities (34.4)0.5n.a.52.8n.a.Net Increase (Decrease) in Cash(30.8) (58.4) -47.3% 43.9n.a. 12. Cash Cycle 123Q064Q061Q072Q073Q07 4Q071Q08 Cash Cycle - Days*49.353.4 62.5 69.6 67.864.3 68.8Accounts Receivable (1)45.250.0 54.6 53.1 50.951.7 50.7Inventories (2)33.144.7 43.4 47.2 41.348.6 47.9Accounts Payable (3) 29.041.3 35.6 30.7 24.536.0 29.8*Average (1) Average of Gross Revenues in the Quarter (2) Average of COGS in the Quarter (3) Average of COGS in the Quarter 13. Indebtedness 13 In R$ MM Net Debt (R$ MM) and Net Debt / Ebitda*124.0124.8 1.51.5 -0.1 -4.11Q074Q07 1Q08* Ebitda = Accumulated last 12 months 14. Capex14In R$ MMand as % Net Revenues 0.4%0.3%0.2% 2.82.1 0.9 1Q074Q07 1Q08 15. Operating Indicators 15 Service LevelLogistics E.P.M(units served / units requested) (Errors per Million)91.2% 201.0 90.9%95.0100.090.0% 1Q07 4Q07 1Q081Q07 4Q071Q08 16. Share Performance16* 100 pts basis on 25/oct/2006 181176171166161154 156151146141134 136131130126121116111106101 96 Ibovespa IGC Profarma 17. Analyst Coverage17FirmAnalystRecommendation Joo Carlos dos Santos - Alexandre Pizano 55 11 2188-4282 / 4316 / 4024 Merril LynchBuy [email protected] [email protected] Tufic Salem - Rafael Shin - Antonio Gonzalez 52 55 5283-8952 / 8969 / 3821 Credit [email protected]@[email protected] Alan Cardoso Prosper Corretora Fone: 55 21 2138-8465 Buy [email protected] Victor Luiz de Figueiredo Martins Safra Fone: 55 11 3175-7689 [email protected] Renata Faber - Marcio Osako Fone: 55 11 5029-4542 / 4650HoldItau BBA [email protected] [email protected] 18. 18 IR Contacts: Max FischerCFO and IROBeatriz DiezIR CoordenatorPhone.: 55 (21) 4009 0276 E-mail: [email protected]/ir