Genomma Lab Internacional SAB de CV Class B · BMV:LAB/B

Genomma Lab Internacional SAB de CV Class B — Investor Day (November 2014)

77 slides from Genomma Lab Internacional SAB de CV Class B's investor day presentation, Nov 7, 2014

  1. Slide 1: Genomma Day 2014

    GENOMMA DAY 2014 NOVEMBER 7TH [> “ 1% LATAM

  2. Slide 2: Agenda

    20/20 Vision Company Update New Commercial Strategy Status per Country Financial Outlook

  3. Slide 3: 20/20 Vision

    20/20 VISION

  4. Slide 4: Consumer health market segments

    Vitamins and Dietary Supplements USS84.4 billion US$14.3 billion Weight Management Sports Nutrition US$8.9 billion Source: Euromonitor

  5. Slide 5: Population demographics: Latin America

    1950: Population 28,295,000 2000: Population 103,873,000 2050: Population 156,101,000 2100: Population 139,794,000 4 @ FEMALE

  6. Slide 6: Population demographics: North America

    Population 157,813,000 Population 400,853,000 2000: 2100: Population 284,594,000 Population 462,069,000 90-94 75-79 60-64 45-49 30-34 15-19 0-4 4 @ FEMALE

  7. Slide 7: Population demographics: Asia

    1950: 2050: Population 167,869,000 Population 781,566,000 2000: 2100: Population 526,278,000 Population 736,228,000 90-94 75-79 60-64 45-49 30-34 15-19 0-4 4 @ FEMALE

  8. Slide 8: Health care environment over the next years

    HEALTH CARE ENVIRONMENT OVER THE NEXT 10 YEARS In the past... In the future... Health care system leaves many uninsured e Newly-insured lives & new funding sources ES Mes aes elicits |e Providers as critical players in new ways NSTI TAC ELT Celt) Focus on low-cost, high-quality solutions Brand-to-ge

  9. Slide 9: Key transitions impacting health and wellness

    KEY TRANSITIONS IMPACTING HEALTH & WELLNESS ALREADY SEEN IN STORES Prevention & Maintenance vs. Acute Treatment Healthcare Reform Duane Reade, New York |] Automation in Diagnostics reM@, Reply REFILL to refill by text. Txt STOP to quit HELP for info. Walgreens Mobile (jew Rite Aid, Waltham Source: E

  10. Slide 10: The foundation for innovation in consumer health

    THE FOUNDATION FOR INNOVATION IN CONSUMER HEALTH Creative Sources ¢ Formulation Driving Forces ¢ Consumer Trends ¢ Demographics ¢ Retail Landscape New Product ¢ Delivery Mechanism e Packaging e Labelling ¢ Positioning e Pricing Development e Economic Conditions Regulations Source: Euromonitor

  11. Slide 11: Source: Euromonitor

                        Source: Euromonitor

  12. Slide 12: Consumer health product innovation examples

    Culterelle Probiotic Chewables The increasingly competitive retail environment  Company: i-Health Inc  Market: US has producers exploring more niche and  Description: An orange-flavoured chewable probiotic supplement specialised markets. that helps with digestive discomfort. Alleradd Consumer-c

  13. Slide 13: Latin America product innovation examples

    Redoxitos  Company: Bayer AG  Market: Brazil  Description: The first chewable vitamin C tablet marketed specifically for children. NewEra Movility  Company: Nutrisa SA de CV  Market: Mexico  Description: A combination dietary supplement for women with collagen, as well as ginger for a boost of

  14. Slide 14: OTC switches in new product development

     OTC switches are an important part of new product development in consumer health as they expand OTC access to new APIs and therapeutic areas.  While it varies by geography, many regulatory agencies are increasingly receptive to switches as a way to increase access to medications and shift expense

  15. Slide 15: Market size

    USS 129 Billion USS 102 Billion USS 70-80 Billion Source: Euromonitor

  16. Slide 16: BPC growth performance by category

    In terms of categories in 2013, deodorants was the strongest performer followed by oral care, while all other categories’ growth rates were fairly subdued compared to the previous year. BPC: Growth Performance by Category 2012 vs 2013 e £ o c 5 Q 2 = i.) E > 8 9 Pal ° x i) Skin Care Hair Care Colour

  17. Slide 17: Top eight BPC market growth prospects 2013/2018

    Top Eight BPC Market Growth Prospects 2013/2018 US$ million rsp China 20,787.7 Brazil 16,066.1 US 6,239.8 India 3,688.5 Indonesia 2,066.9 South Korea 2,054.6 Saudi Arabia 1,853.5 Mexico 1,314.5 Others 15,278.8  China and Brazil combined will contribute some 53% of global BPC market value growth ove

  18. Slide 18: Emerging vs developed market BPC

    Emerging vs Developed Market BPC: Value Sales by Category 2013 =Brazil and China’s proportional weight in hair care and skin care, respectively, is indicative of category growth prospects. In the context of overall emerging markets, category opportunities differ in terms of potential for further pen

  19. Slide 19: Slide 19

  20. Slide 20: Sales growth and international share

    • As of September 2014, 42% of sales come from our international operations. 2014 2013 2008 2009 2010 2012 2011 Sept Sept Sept Sept Sept Sept Sept CAGR: Compound Annual Growth Rate 2008-2014. Information in a LTM basis.

  21. Slide 21: Market data (IMS Health)

    Source: Company data and IMS Health.

  22. Slide 22: Market data (IMS Health)

    Source: Company data and IMS Health..

  23. Slide 23: Sales 2008 to 3Q14 LTM

    2009 2008 2010 2012 2013 3Q14 LTM 2011 CAGR: Compound Annual Growth Rate 2008 – 2013.

  24. Slide 24: Quarterly results 1Q12 to 3Q14

    1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

  25. Slide 25: Laboratories

    LABORATORIES @ TBO

  26. Slide 26: Marzam year over year growth

    Marzam’s year over year growth based on Casa Saba’s situation. 14,000 +36.7% 12,000 10,000 8,000 6,000 4,000 2,000 2013 2014 Genomma’s products sold at Marzam increased 150% during the last quarter.

  27. Slide 27: New Commercial Strategy

    “NEW COMMER ~ STRATEGY |

  28. Slide 28: Point of sale

    POINT OF SALE { Shopper, Consummer & Channel » \Understanding, Commercial Innovation In-Store Vision y estrategia de categoria Strategic Alliances Creation Point of Sales Execution

  29. Slide 29: Shopper insights and education

    Education a : ~ a. ‘ a 9) What are they Navigation 2 ths: F Pie) purchasing? Rei 3 Where are they purchasing? Stopping urchasing? Power a e @n P 9 \ Insights Shopper / Eye Assessment \ Reactio Trackin Adjacencies

  30. Slide 30: In-Store Vision & Category Strategy

    IN-STORE VISION & CATEGORY STRATEGY

  31. Slide 31: Channel segmentation

    31 he Fee ES Xx Xx —- | X Xx Pharmacy Channel 17% Traditional Channel 4 x x x x 48% ©” Channel Segmentation %X Not developed afm To Exploit +A Mature

  32. Slide 32: Strategic Alliances Creation

    STRATEGIC ALLIANCES CREATION

  33. Slide 33: Point of Sales Execution

    POINT OF SALES EXECUTION

  34. Slide 34: Commercial Innovation

    COMMERCIAL INNOVATION Open Exhibition Project

  35. Slide 35: Status per Country

    STATUS PER COUNTRY __ | —— ee | wade aie) se er nt i ae ian MAL si SUE ————— ee Ti won, 1 178 <= rman = CASE Wojlgt60Is. — Se NET Wes. —_ 1 Ss USA | , — HERG | tonpes paaih 1 2 eo a ee GOICOE U a af O Amica Arnica Mom Mama Arange Peel Piel de Naranja Reaffirming Reafirmant Contains |

  36. Slide 36: IMS ranking by country

    Rank IMS: #1 Hispanic Market** Rank IMS: #1 Rank IMS: #6 Rank IMS: #4 Rank IMS: #5 Rank IMS: #8 Rank IMS: #7 Rank IMS: #1 *In the countries where we participate **Genomma Lab is the #1 Hispanic Company in Walgreen’s Source: IMS Health

  37. Slide 37: IMS ranking by country

    Rank IMS: #1 Rank IMS: #2 Rank IMS: #5 Rank IMS: #1 Rank IMS: #4 Rank IMS: #4 Cuba Haiti Venezuela Belice . *In the countries where we participate Source: Company Data.

  38. Slide 38: Brands by country

    19 brands 91 brands 13 brands 26 brands 12 brands 25 brands

  39. Slide 39: Genomma Lab Internacional

    Genomma Lab‘ Internacional

  40. Slide 40: Mexican snapshot

    MEXICAN SNAPSHOT TOP BRANDS: Demographics: TOP CLIENTS (Medieasp Pop.: 120.3mm — sia GDP: MXP 1.3t |OXXO} Asenkia GDP per Capita: emi px $15,600 USD (Nahorro cae Ma benavides LTM Sales (QG5) Segmentation: OTC Market: +4 OTC 62%, PC 19.3 billion MXN ENE SIN 38% GOICOTABS Comercial \ Nikzo, WAL*MART D

  41. Slide 41: Consumption index Genomma Lab

    185 165 145 125 105 85 65 2009/12 2010/06 2010/12 2011/06 2011/12 2012/06 2012/12 2013/06 2013/12 Consumption Index Genomma Lab Base 100 october 2009. Source: INEGI. CAGR: Compound Annual Growth Rate 2009.-2013, in real value in Mexico.

  42. Slide 42: Genomma Lab market share: OTC

    • Market size in Mexico: 1 Non-narcotics and antipyretics 2 Cold and cough preparations without $19.3 billion pesos anti-infectives • Genomma Lab’s market share: 3 Oral electrolyte sustitutes 13.2% 4 Emolients and Protectors 5 Multivitamins with minerals 6 Antimicotics, topical dermatological 7 Milk

  43. Slide 43: Genomma Lab market share: personal care

    • Market size in Mexico: $130.9 billion pesos • Genomma Lab’s market share: 6.8%* 1 Mass Cosmetics 2 Hair Care 3 Skin Care 4 Fragrances 5 Colour Cosmetics 6 Oral Care 7 Oral Care Excl Power Toothbrushes 8 Men’s Grooming 9 Premium Cosmetics 10 Bath and Shower Genomma Lab has 11 Deodorants presence in

  44. Slide 44: Top OTC labs and advertisers

    Top 10 OTC Labs Top 10 Advertisers *Base 100: Genomma Lab representing 100%.

  45. Slide 45: Mexico channel development

    ¢ Opening of new modern and traditional channels: Mexico Channel Development % of Sales'06 © % of Sales ‘14 4% 4% —4%4% 4% 9% 3% 3% 2% 2% Doan O85

  46. Slide 46: Mexico sales

    3Q10 LTM 3Q11 LTM 3Q12 LTM 3Q13 LTM 3Q14 LTM

  47. Slide 47: Genomma Lab Internacional

    Genomma Lab’ Internacional

  48. Slide 48: Brazilian snapshot

    BRAZILIAN SNAPSHOT BRANDS: Medicasp M Poinitis LENKESING Demographics: Pop.: 200.4mm GDP: MXP 29,340 bn Top Clients: Panpharma, D Center, Santa Cruz, Profarma, Nazaria 146 Local Manufacturing: 33% of total brands LTM Sales Segmentation: OTC 20%, PC 80% GDP per Capita: OTC Market: Points of Sale: 69,

  49. Slide 49: Top OTC labs and advertisers

    Top 10 OTC Labs Top 10 Advertisers *Base 100: Genomma Lab representing 100%.

  50. Slide 50: Lied

    = — _ Lied ia) C= <=

  51. Slide 51: Argentinian snapshot

    ARGENTINIAN SNAPSHOT TOP BRANDS: Elimin los hongos muy répid. Asepxia’ Tafirol GOICOECHEA Cicatricure: UNS BENGUE Top Clients: Drogueria del Sud, Suizo Argentina, Farmcity, Monroe Americana Local Manufacturing: 68% of total brands LTM Sales Segmentation: OTC 29%, PC 71% Demographics: Pop.: 41.4 mm G

  52. Slide 52: Top OTC labs and advertisers

    Top 10 OTC Labs Top 10 Advertisers *Base 100: Genomma Lab representing 100%.

  53. Slide 53: Argentina channel development

    ¢ Opening of new modern and traditional channels: Argentina Channel Development % of Sales'06 © % of Sales ‘14 10% 6% i 1 7 3% ht 1% = me Oy RS

  54. Slide 54: Acquisition performance: Actron and Tafirol

    125 175 225 275 325 25 75 • jun-12 jul-12 Since ago-12 Acquisition sep-12 oct-12 nov-12 dic-12 ene-13 feb-13 mar-13 abr-13 may-13 ACTRON jun-13 jul-13 ago-13 TAFIROL sep-13 oct-13 nov-13 dic-13 ene-14 feb-14 mar-14 abr-14 may-14 jun-14 jul-14

  55. Slide 55: Genomma Lab Internacional

    Genomma Lab* Internacional

  56. Slide 56: U.S.A. snapshot

    U.S.A. SNAPSHOT Demographics: Pop.: 316.1 mm BRANDS: GDP: MXP 219,495 bn GDP per Capita: Medkgagp Top Clients: OTC Market: 39.4 Walgreens, bn MEDIC. Walmart Tukol NACHO Xray Local i E Pam Manufacturing: i eedates 0, Wikzon 79 pot pet market Asepxia Daley LTM Sal ales ; : ® Segmentation: edn OTC 20%,

  57. Slide 57: US Hispanic population

    • • • • • Source: US Census Bureau 2010

  58. Slide 58: Top advertisers

    Top 10 Advertisers *Base 100: Genomma Lab representing 100%.

  59. Slide 59: Key success drivers

    KEY SUCCESS DRIVERS ¢ Long term agreements with clients. * Successful business model driving traffic to stores Walmart

  60. Slide 60: Rest of LATAM Outlook

    Rest of LATAM Outlook

  61. Slide 61: Top OTC labs and advertisers

    Top 10 OTC Labs Top 10 Advertisers *Base 100: Genomma Lab representing 100%.

  62. Slide 62: Top OTC labs and advertisers

    Top 10 OTC Labs Top 10 Advertisers MARCAS PROPIAS UNKNOWN *Base 100: Genomma Lab representing 100%.

  63. Slide 63: Top OTC labs and advertisers

    Top 10 OTC Labs Top 10 Advertisers *Base 100: Genomma Lab representing 100%.

  64. Slide 64: Top OTC labs and advertisers

    Top 10 OTC Labs Top 10 Advertisers *Base 100: Genomma Lab representing 100%.

  65. Slide 65: Top OTC labs and advertisers

    Top 10 OTC Labs Top 10 Advertisers *Base 100: Genomma Lab representing 100%.

  66. Slide 66: Genomma Lab Internacional

    Genomma Lab‘ Internacional

  67. Slide 67: Working capital and cash conversion cycle

    2011 2012 2013 oo Oo = ~ Days of Trade Receivables Days of Inventories Days of Suppliers Cash Conversion Cycle Svs see) Bsr ses) Bisvaxs Bisvsx*s)

  68. Slide 68: Sales by segment and geography

    3Q13 3Q14 2008 2009 2010 2012 2013 2011 LTM LTM 3Q14 3Q13 Pharma* PC Total 3Q14 Pharma* PC Total 3Q13 %Var Mexico 1,339.0 675.6 2,014.6 1,197.7 819.4 2,017.1 -0.1% International 379.0 966.0 1,344.9 240.2 809.4 1,049.6 28.1% TOTAL 1,718.0 1,641.5 3,359.5 1,437.9 1,628.8 3,066.8 9.5%

  69. Slide 69: OTC and personal care by country

    OTC – Over the Counter Pharma – OTC and Generics PC Phar m a – Personal Care PC 1. Brazil 2. OTC Argentina PC 3. USA 4. Colombia 5. Chile 6. Peru 7. Ecuador *According to IMS.

  70. Slide 70: EBITDA and margin

    3,500 50.0% 3,000 2,500 YoY Growth: 40.0% 6.8% 2,000 30.0% 1,500 20.0% 1,000 10.0% 500 - 0.0% 2008 2009 2010 2012 2013 2011 3Q13 3Q14 EBITDA EBITDA MARGIN

  71. Slide 71: Quarterly EBITDA and cash conversion cycle

    4,000 35.0% 3,500 30.0% 3,000 25.0% 2,500 20.0% 2,000 15.0% 1,500 1,000 10.0% 500 5.0% 0 0.0% 1Q10 2Q10 3Q10 4Q10 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 1Q11 2Q11 3Q11 4Q11 119 155 149 107 123 200 170 132 205 162 153 154 158 139 144 138 155 145 136 18% 21% 27% 34% 18% 21% 27% 34% 18%

  72. Slide 72: Financial debt and leverage

    As of 3Q14, Ps. 6.08 billion in financial debt, representing a 1.49x Net Debt/EBITDA ratio.

  73. Slide 73: EBITDA margin vs peers

    EBITDA Margin. 28.8% Average: 23.1% 9 op, 25.6% 26.0% 26.7% oy 22.9% 24.3% 24.7% sig ia Oo i DO Average: 11.9% 1.6% sn.g% tng 2% 8% 12.6% 1B 070 10.0 /0 _ 76% 2% “89% - Source: FactSet

  74. Slide 74: Peer leverage comparison

    Average: 1.6 x Source: FactSet

  75. Slide 75: Slide 75

  76. Slide 76: Europe expansion and portfolio rationalization

    1. Genomma Lab will be expanding its operations to Europe in the coming years. For this matter, we will be starting business in Spain in the short term. Rodrigo Herrera, CEO, will be leading the initiation process personally. The new commercial strategy, focused on improving our products’ presence a

  77. Slide 77: @

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