RaiaDrogasil-引领巴西药店行业整合（英文）-2012.3-25页_1mb

RaiaDrogasil Summary

Core Content

RaiaDrogasil S.A. is the leading drugstore chain in Brazil, combining the strengths of two major players: Raia S.A. and Drogasil S.A. The company is positioned as a key player in the consolidation of Brazil's fragmented pharmaceutical retail market, leveraging its scale, efficiency, and financial flexibility to achieve strong growth and margin expansion.

Main Points

• Company Overview:
  RaiaDrogasil is the largest drugstore chain in Brazil by revenue and number of stores, with a national market share of 9.0% (Dec'11). It operates 791 stores across 9 states and is expanding into 3 new states (MS, MT, and BA).

• Market Context:
  The Brazilian drugstore market is highly fragmented and in the process of consolidation. RaiaDrogasil aims to lead this transformation by capturing synergies and economies of scale.

• Dual Brand Strategy:
  The company operates under two distinct brands, targeting different consumer segments and store formats. This strategy allows for customer retention and the acquisition of new customers through differentiated value propositions.

• Growth and Expansion:
  RaiaDrogasil has a strong track record of growth, with a net addition of 454 stores since 2007. It continues to expand geographically and has a solid platform for entering new markets.

• Financial Performance:
  In 2011, RaiaDrogasil reported R$4.7 billion in revenues, R$272 million in adjusted EBITDA, and R$152 million in adjusted net income. These figures highlight its strong financial position and profitability.

• Operational Efficiency:
  The company has a decentralized and complementary distribution structure, with multiple distribution centers across Brazil. This structure enables logistics optimization and cost efficiency.

• Synergy Potential:
  RaiaDrogasil is expected to benefit from hard and soft synergies, including cost savings from redundant store closures, improved purchasing conditions, and the development of a joint e-commerce platform.

• Private Label Products:
  The company has launched a main private label platform, offering premium-priced products with high margins. This initiative leverages the combined scale of the two brands to enhance profitability.

• Management and Leadership:
  The leadership team includes experienced professionals such as Eugenio De Zagottis and Leonardo Corrêa, who bring extensive knowledge in investor relations, corporate planning, and the pharmaceutical industry.

Key Information

• Market Share:
  RaiaDrogasil holds 80% of the Brazilian pharmaceutical market in terms of store count, but only 9.0% in terms of revenue. This indicates significant potential for further market penetration.

• Store Growth:
  The company has demonstrated consistent growth, with a focus on both total sales and same-store sales. Mature stores are also showing convergence in growth trends.

• Financial Flexibility:
  RaiaDrogasil has a solid and flexible capital structure, allowing for strategic use of shares as a currency for acquisitions and enhancing liquidity.

• Investor Disclaimer:
  The presentation contains forward-looking statements and is not intended as investment advice. It is confidential and not to be disclosed to third parties.

Conclusion

RaiaDrogasil is a leading player in the Brazilian drugstore industry, with a clear vision to consolidate the market through its dual brand strategy, strong financial performance, and proven track record of growth. The company is well-positioned to capitalize on the industry's transformation and continue its expansion into new markets.