Latin America's Pharma Retail Map

1. Latin America's Pharma Retail Map

2. Research Goals and Methodology Goals • To provide an overview of the Pharmaceutical Retail current situation in the región and the channel’s commercial trends. • Highlight each country’s (Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela) sector specific data and the most essential information on the business. • Detail the Top Retailers in each country, reporting or estimating their key financial data. Methodology • To gather information on the sector through different Sources: Government organizations, field’s associations, consulting agencies and retailers’ data. • To summarize all the information, taking into consideration each country’s nomenclature and channel definitions. • To collect key data from the most important chains through published and released data or through our own estimates, based on turnover by square meter projections. This report belongs to ILACAD World Retail, and, according to Law 11.723, the transfer, copy, publication, public release, translation or adaptation is subject to previous authorization by ILACAD World Retail.

3. Retail Overview Worldwide

4. In 2013, Latin America registered the largest growth within the Pharmaceutical business, widely exceeding the North American and European markets. Sources: IMS Health, MIDAS, MAT Dec 2013; Pharmacy Channel– Growth in constant USD rates

5. Retail Overview in the Region

6. Brazil is considered the largest market as far as sales income, while Mexico has the largest number of stores within the Modern Channel. *Bolivia, Paraguay, Surinam and Guayanas are not audited by Midas; Latam data excludes Puerto Rico Sources: IMS Health, MIDAS, MAT Dec 2013; Pharmacy Channel

7. Economic Situation in Latin America in Mexico PopulationGDP per capita (GDP % Variation) 119,321,000 U$S 8,611 (+3.9% ) Venezuela Colombia 30,390,000 U$S 6,320 (+1.0%) 48,374,000 U$S 4,203 (+4.2%) Peru Brazil 30,297,000 U$S 4,210 (+6.3%) 199,985,000 U$S 5,691 (+1.0%) Chile Argentina 17,603,000U$S 9,373 (+5.6%) 41,425,000 U$S 11,335 (+1.9%) Sources: ILACAD World Retail - CEPAL

8. Data on Latin America’s Main Countries in 2013 Modern Channel’s Total Sales (in millions)2013/2014 Modern Channel’s Total Sales Evolution (local currency) Mexico U$S 11,536.6 +5.20% Venezuela Colombia U$S 1,324.80 +24.91% U$S 1,204.2 +4.00% Peru Brazil U$S 1,115.8 +5.50% U$S 12,212.7 +14.80% Chile Argentina U$S 2,711.7 +4.71% U$S 4,165.7 +18.79% Sources: ILACAD World Retail – Market data

9. Top 3 Concentration level by Country in 2013 Mexico 44.6% Guadalajara PharmaciesSimilares Pharmacies Del Ahorro Pharmacies Venezuela 26.5% Colombia 67.4% FarmatodoFarmahorro Saas Pharmacies La RebajaOlimpica Colsubsidio Brazil 54.6% Peru 72.1% Raia DrogasilPacheco/Sao Paulo Pague Menos InkafarmaQuicorpArcangel Chile 70.9% Argentina 18.5% Cruz VerdeAhumada PharmaciesSalcobrand FarmacityVantagePhârmakus Source: ILACAD World Retail

10. Traditional Channel v. Modern Channel Share (%)Mass-consumption Product Turnover Distribution Note: Modern Channel: Includes pharmacy chains and pharmacies inside supermarkets. Traditional Channel: Includes all traditional neighborhood pharmacies. Sources: Estimates by ILACAD World Retail, market data and retailer information

11. Latin American Countries Comparison • It is estimated that, within the next years, Latin America’s development will be very favorable to the business. The growth for developed countries will be between 2% to 5%, while “pharma-emergent” countries –the Latin American ones are key players worldwide- will register an increase of between 9% to 12%, double the growth expected for countries like United States or India. • Within the called “pharma-emergent countries”, we can highlight Brazil (it represents 24.5% of the region's total pharmaceutical market), which will register an estimated growth of between 13% to 16% in dollars for the 2014-2018 period and will become one of the most important markets in the next years to come, followed by Mexico, which represents 23.1% of the market. • However, pharmaceutical sales in Brazil could present a slowdown since firms face many barriers when entering the country, which is a very expensive market to access to as well. Instead, Mexico is a more affordable one, cheaper and with an easier-access, and offers judicial credibility when investing as well as a stable currency exchange. Source: ILACAD World Retail - IMS Health NOTE: Data in dollars

12. Store Opening within the Modern Channel by Country Source: ILACAD World Retail

13. Regional Pharmacy Ranking NOTE: All chains within the region’s groups are taken into consideration for the study(Data in millions of dollars) Source: ILACAD World Retail

14. Overview by Country

15. Main Facts on Argentina 41,425,000 U$S 11,335 28.3% MC 32% CE 2012 1 U$S - Ar$ 4.53 CE 2013 1 U$S - Ar$ 6.49 Sources: ILACAD World Retail, Argentina’s Pharmaceutical Chamber, IMS Health, market data and retailer information. Representa el total de la facturación de las cadenas. It represents the chains’ total turnovers. There were only taken into consideration chains with over 8 stores. Estimates based on market share and turnover per store. * Data in millions

16. Retailer Ranking in Argentina in 2013 Sources: ILACAD World Retail – INDEC – Retailer information * Data in millions of dollars

17. Little concentration outside of the country’s capital city • During 2013, internal market sales (local production + imports) registered a 20% growth, while the Argentinean pharmaceutical industry presented an 18.8% increase in sales and exports grew by 6% in comparison to the year before. Out of the sector’s total turnover, 71.5% is made up by internal market sales, 8.2% by exports and the rest by the local resale of imported goods. • The medications that registered highest sales were those for heart problems, followed by digestive and metabolism products, nervous system medicine and, finally, anticancer drugs and immuno-modulators . • During 2013, the number of medicinal products broke a new record: it reached the 709 million units, out of which 74% of them were prescription drugs –that represented 88% of total sales-. As far as brads, only 4% of the total units sold are generic medication, which shows that the Argentinean pharmaceutical market is strongly dominated by brands. • In 2013, the 1632 Health Department Resolution impacted the market as it ruled that, by March of2014, pharmacies could not sell non-medicinal products (both over-the-counter and prescribed), besides personal care and hygiene items, beauty supplies, [cleaning products, etc.]. Since this policy hurt all multi-category pharmacy businesses, the government of the city of Buenos Aires –where chains operate most of its stores- released an official permit that allows selling more products if the surface of the store does not interfere with the functioning of the pharmacy and if the staff of this area do not sell other items or provide other services. • This measure drove chains like Farmacity, the sector’s leading retailer, to diversify and launch two business units: Simplicity, with sells all products Farmacity sells, except medication; and Look, which focuses on make-up and beauty supplies. Sources: ILACAD World Retail – Retailer data - INDEC

18. Farmacity 1 • Farmacity is present in 13 Argentinean provinces: Cordoba, Entre Rios, Salta, San Luis, Buenos Aires, among others, besides the city of Buenos Aires, where it operates most of its stores. • It operates drugstores that combine supermarket elements with medication and beauty supplies sale. It has low aisles and a counter in the back of the stores where clients get prescription drugs. Farmacity stores are large and offer all sorts of personal hygiene items, beauty supplies and make-up, as well as a wide array of private label articles. • The measures taken in 2013 drove Farmacity to diversify and open two business units (since medication makes up for more tan 60% of its sales): Simplicity, which opened its first store in Moron and offers all the products Farmacity usually sells, with the exception of medicine; and Look, with opened in downtown Buenos Aires as well as small stands at shopping centers and offer make-up and beauty supplies. • Even though the Government of the City of Buenos Aires –where Farmacity operates most of its stores- released an official permit that allows selling more products if the surface of the store does not interfere with the functioning of the pharmacy and if the staff of this area do not sell other items or provide other services, the chain still bets on these two new formats and keeps inaugurating new stores. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

19. Vantage 2 • Pharmaceutical chain Vantage is present in six Argentinean provinces: Santa Fe, Cordoba, Mendoza, San Juan, the province of Buenos Aires and the autonomous city of Buenos Aires. • This English retailer, owned by Sidus Group, operates under the European Pharmacy model, which is characterized by the auto-service system as a health system, and large and modern spaces. It also operates under a first-opening or reconverted pharmacy franchise system. Today, Vantage operates 12 owned pharmacies and 100 franchises. It plans to open five stores by the end of 2015 and remodel the existing ones. • Besides offering Pharmaceutical customer service and selling beauty supplies, the stores provide additional services like home delivery options, immunization shots, master formula preparations and the possibility to pay bills. • It also targets the beauty supply category through VantageBeauty, an specific area at the stores focused on make-up and derma-cosmetics. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

20. Phârmakus 3 • Phârmakus is a Company that gathers 30 traditional pharmaceutical chains in the country and holds a strong presence in Buenos Aires and the city of Buenos Aires, where it controls a 76-store network. • The group began operating back in 2002 when some independent and small Pharmaceutical chains came together to face the market’s high concentration level. This commercial alliance was formed among brand and well-known pharmacies. • Ran by professionals, the Phârmakus stores also provide 24-hour customer service, home delivery options and a wide discount system. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

21. Dr. Ahorro Pharmacies 4 • Dr. Ahorro Pharmacies operate in seven Argentinean provinces: Cordoba, Salta, Chubut, Mendoza, Misiones, Catamarca, Buenos Aires and the city of Buenos Aires. • This Mexican chain –which has been operating in the country since 2002-, manages traditional and over-the-counter small stores, offering pharmaceutical assistance directly to the public. It sells over 600 medicinal products with up to 75% discounts. These stores offer assortments of around 5,000 SKUs, focuses on proximity and targets clients with little resources. • The stores target the D and medium C (C2 and C3) population segments. Moreover, 85% of the chain’s total sales come from medication and the remaining 15% includes other categories, such as personal care. • The retailer also operates under a “Start up” franchise system, which means the stores can be developed from scratch at any building that meets the requirements of the province where it is located. People that will franchise the store will also get the support and assessment needed since the beginning of the investment process. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

22. Farmar 5 • Farmar is a Pharmaceutical network that was born in the province of Corrientes, which also operates in Chaco, Santa Fe, Misiones, La Rioja, Jujuy, Formosa, Tucuman, Salta, Catamarca, Entre Rios, Santiago Del Estero and the City of Buenos Aires. • The Company sells mass-consumption Pharmaceutical products, accessories, imported and National beauty supplies, as well as cleaning goods and candies. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

23. ABC Pharmacies 6 • Even though most of the ABC Pharmacies are located in Buenos Aires, the Company operates one unit in the province of Mendoza and another one in Tierra del Fuego. • These store have large surfaces and offer both medication as well as beauty supplies. They are ran by trained staff behind the traditional counter. • The chain also offers a program called Farmasis, through which users get Access to Pharmaceutical or medical consultations and can even enter forums related to different pathologies as well as get information on prescriptions or their delivery date. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

24. Zona Vital 7 • Zona Vital Pharmacies operate in the city of Buenos Aires, the province of Buenos Aires, Lujan and the Argentinean southern Patagonia region. The chain offers wide stores, where clients will find a wide array of medicinal and personal care products. • The stores are located in ABC1 areas. Initially, the Company expanded throughout the northern areas of Buenos Aires and, since 1999, it opened stores in other regions within the province (ZV Pilar, ZV Lujan) and expanded south towards Patagonia. • The group’s Pharmacies offer around 28,000 that make up a wide and varied medicinal stock, as well as accessories, make-up and international personal care items. • At the Farmadietetica space, the group sells natural and dietary supplements and products, focusing on helping the client achieve a healthy lifestyle. Some of the items offered include nutritious infusions, teas, energetic foods, mineral and vitamin supplements for the elderly and athletes, etc. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

25. Autofarma 8 • Autofarma is considered a “Wellness Center”. It is a Pharmacy that also offers high range beauty products and accessories under an auto-service format with wide spaces and comfortable aisles. • The chain operates in three provinces in the southern region of the country: Chubut, Santa Cruz and Tierra del Fuego. Up to date, it controls a 15 store base. • The retailer also offers a loyalty program, FARMAVALOR, through which clients accumulate points after every purchase an Access a Price catalog to redeem them. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

26. TKL Pharmacies 9 • The TKL Pharmacies operate in the city of Buenos Aires and two other stores in San Miguel and Munro, in the province of Buenos Aires. • These Pharmacies are small and are usually located at easy-access large urban centers. They also offer personalized customer service as well as a wide assortment of medication, personal hygiene items and beauty supplies. • The TKL Pharmacies were some of the first to unify its units under the same brand. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

27. Patagonicas Pharmacies 10 • Patagonicas Pharmacies was born in 2004 as a pilot concept under the wellness field in the southern region of the country. • The chain operates 12 stores: Querol, Plaza, Mitre, Pellegrini, Avenida, Chubut, Costanera, 28 de Julio, Esquel, Shopping, Rawson and Gaiman. • The format offers a wide array of traditional Pharmaceutical products as well as beauty supplies, women items, baby products, make-up, accessories, gifts, etc. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

28. Main Facts on Brazil 199,985,000 U$S 5,691 6.00% MC 60% CE 2012 1 U$S - Br$ 2.05 CE 2013 1 U$S - Br$ 2.35 * Data in millions Sources: Abrafarma, National Pharmaceutical Councel, IMS Health, market data and retailer information

29. Retailer Ranking in Brazil in 2013 Source: ILACAD World Retail

30. Brazil, the main “pharma-emergent” market in the region • Traditionally, Brazil ha been considered Latin America’s largest pharmaceutical business. Its industry has experienced an almost 140% growth in the past five years. A peculiar characteristic of the Brazilian pharmaceutical market is that medication is priced much lower in comparison to other important markets in the American continent. Several factors help maintain low prices in the market, such as imported drug tax legislation, low taxes on high-demand medicine and high competition levels among generic medication. • In 2013, prescription drugs represented around 73% of the market’s total sales, while OTC medication represented a Little over 27. • Market statistics show they can be easily affected by the fact that, in the country’s least developed regions, medication is still sold through informal stores and businesses. Moreover, results are affected by the fake medication that goes around, despite many efforts to stop this illegal activity. • The generic medication sector is the fastest growing in Brazil, as they represent a great percentage of the country’s consumption as far as volume but also represent 53% of the total prescription medication sales and around 38% of the total spending on medicinal items. • The rapid growth seen in the Brazilian Pharmaceutical sector was noticeable enough to get the attention of foreign firms. Specialists say that the arrival of foreign pharmaceutical chains would be more probable through the purchase of smaller retailers, strategy seen with the purchase of Brazilian Onofre Drugstores chain by CVS (USA) in 2013. Source: ILACAD World Retail

31. Raia Drogasil 1 • Raia Drogasil is the leading chain in the Brazilian Pharmaceutical market, as it operated a 967-store network in 11 states nationwide by the end of 2013. • The stores offer a mixed assortment between pharmaceutical and convenience products, as well as beauty supplies at their Beauty Centers. They target the ABC population segment and are opened 24 hours a day. • In 2013, the retailer opened 85 stores and closed 24, as part of their optimization program. For 2014, the chain plans to open 130 new units. • As far as openings go, one of the retailer’s Main goals is to drive the new Farmasil format, which is being tested through 15 pilot stores since the end of 2013. The Farmasil model is characterized by smaller stores, which require less investment and targets smaller markets. • Likewise, the chain seeks to maintain its opening rhythm, as it inaugurates new units under the traditional Raia and Drogasil formats, the first one operating under a compact store model and the second one, under a more complete one. • Another goal is to improve the private label program and increase the generic product penetration among customers. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

32. Pacheco/ São Paulo (DPSP) 2 • Born in 2011 after the fusion of the Sao Paulo Pharmacies and Pacheco Pharmacies networks, DPSP is the third largest Pharmaceutical Company in the World after Raia Drogasil and Brasil Pharma. The Pacheco and Sao Paulo drugstores operated 843 Pharmacies in five Brazilian states by the end of last year. • These pharmacies offer convenience products although medication represents 75% of total stores. The chain targets the ABC population segment and its store offer wide spaces as well as personalized customer service. • During the year, it has been said that the chain may ally with North American retailer CVS Caremark, as the world’s second largest pharmaceutical chain has already presented a formal offering for the purchase of Brazilian firm DPSP, owner of the São Paulo and Pacheco brands. The offering, which reached a sum of R$ 4.5 million (U$S 2,000 million), was denied by DPSP. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

33. Pague Menos 3 • The retailer Pague Menos is located in the 26 Brazilian states, making it the only chain with nationwide presence. • With a 30-year experience in the market, Pague Menos is mainly focused on selling medication, which represents around 80% of the chain’s earnings. Today, the stores offer around 15,000 SKUs to its customers. • The chain focuses on the BC population segment and offers 24-hour customer service and assistance. • The stores mainly focuses on medication, beauty supplies, personal hygiene items, cosmetics, derma-cosmetic products, some groceries and convenience store goods. • The pharmaceutical chain ended 2013 with a total of 648 stores and another 49 that were being built. After these are inaugurated, the chain be operating in 260 municipalities an 233 Brazilian cities by the end of 2014. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

34. Brasil Pharma 4 • Pharmaceutical group Brasil Pharma is the largest Brazilian chain as far as number of stores. It operates 1,218 units in 13 states. • The Pharmacies that make up the Brasil Pharma group offer a wide assortment of medication at affordable prices, as well as a wide section of make-up and beauty supplies. Despite the wide array of products, medication makes up 60% of the chain’s total income. • The group owns some of its stores –a total of 733 units- and also operate under a franchise system –it franchises a total of 485 stores-. • Besides Sant’Ana (127 stores), Brasil Pharma gathers the Big Ben drugstores (259 stores), Drogaria Rosario (154 stores) and Mais Economica (193 stores), as well as the Farmais franchises. In 2013, the group opened 65 new stores and closed another 40 in the southern region of the country, as part of a strategy that implies the closure of non-profitable units, most of them which operated under the Mais Economica banner. The group will continue to apply this strategic plan in order to reposition its brand in the South and increase its earnings. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

35. Araujo Pharmacies 5 • With 108 years of experience, this chain operates 130 stores distributed in every region within the city (besides Betim, El Conde, Lagoa Santa, Nova Lima, Ribeirao das Neves, Sabara, Santa Luzia, Sete Lagoas and Vespasiano). • It offers a 20,000 SKU assortment, as well as a telemarketing and 24-hour assistance service. • This chain was the first one to launch the Drive Thru service, which allows the clients to purchase their medicine and convenience store products without leaving their vehicle. This service is now being offered at four of the chain’s stores. • Moreover, the chain is part of the “Popular Pharmacy” national program, which lets clients with Little resources access free medicine for diabetes, blood pressure and asthma. Under this service –promoted by the federal government-, they can also purchase other medications and diapers with up to 90% discounts. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

36. Panvel Pharmacies 6 • Panvel is the Pharmaceutical chain with the strongest presence and share in the southern region of Brazil, operating in the states of Rio Grande do Sul, Santa Catarina and Parana. • The Panvel Pharmacies were born in 1973 after an Alliance between the Panitz and Velgos pharmaceutical chains. Besides offering medication, the stores provide a wide array of beauty products in comfortable spaces. Moreover, these Pharmacies also offer its clients an online shopping service. • The chain operates under five formats: Megastore, stores of two stories that offer a wide variety of products and services; Express, that offers a limited array of convenience store items; Promocional, mainly focused on offering discounts; Beleza e Bem and Bem Estar. • Panvel strengthened its private label, adding 14 new lines during last year. Likewise, during 2013, it remodeled its distribution center in Parana, by Maringa, and built a new corporate office and distribution unit in the city of Eldorado do Sul / RS. • During the year, Panvel inaugurated 18 new stores, out of which 10 are located in Curitiba, the city where the chain focuses on the most for its expansion. By the end of 2013, the chain operated 307 stores in 23 cities within the state of Parana. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

37. Nissei Pharmacies 7 • With over 27 years of experience in the market of Parana, Nissei operates nearly 230 stores in the states of Sao Paulo and Santa Catarina . • The chain was one of the first ones to take the drugstore format to the Parana market and it is considered one of the few that provides 24-hour customer assistance at most of its stores. • The Nissei stores are wide and comfortable, and offer its clients an easy access through the aisles as well as parking spaces. Besides offering medication, the chain provides personal hygiene items, beauty supplies and some convenience store goods. • The chain also offers home delivery options and a loyalty card, which allows its clients to access special deals and promotions and even to make payments for their purchases. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

38. Onofre Drogaria 8 • Onofre Drogaria is a Pharmaceutical chain that focuses on the Health, beauty and wellbeing categories, offering a wide assortment of medicine, vitamin supplements, beauty supplies, baby products, hygiene and personal care items as well as geriatric products. The chain originated as an online store and today it operates 46 brick-and-mortar units as well. • With over 70 years of experience in the market, the chain offers around 25,000 SKUs in their stores. It operates in the cities of São Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Vitoria, São Jose do Rio Preto, São Jose dos Campos and Santos. • In 2013, CVS Caremark Corp purchased the totality of Onofre Pharmacies, becoming the first investment the retailer made outside of the United States. The operation may have reached a sum of around R$ 800 (U$S 200 million), even though thee exact amount was not confirmed. If CVS finds this deal successful, it may make new investments in the Brazilian market. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

39. Walmart Pharmacies 9 • Walmart Pharmacies, one of the most important chain in the countries, operates units located in the Walmart, TodoDia, Maxxi, Bompreco, BIG and Nacional stores. • These Pharmacies are located inside supermarkets and wholesale stores and offer over 4,000 items –medicinal products and personal care items- inside 80 square-meter surfaces. • The stores offer approximately 500 generic drugs at affordable prices, up to 50% to 60% cheaper than other brands. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

40. Extrafarma 10 • The Imifarma firm entered the drug distribution business back in 1960. The Company operates in the states of Cears, Amaps, Piaui, Maranhão, Para and is considered one of the largest pharmaceutical product distributor in the north and northeast of the country. • During the 90s, the group launched its operations in the Retail business with the opening of the Extrafarma stores, which today add up to 180. • The Extrafarma network offers additional services to its clients, like home delivery options, an area specialized on diabetic and high blood pressure patients, another sector that sells derma-cosmetic products, as well as being part of the “Popular Pharmacy” National program. • The stores offer a 20,000 SKU assortment and also distribute and supply medication, pharmaceutical products and health and beauty supplies.

41. Main Facts on Chile 17,603,000 U$S 9,373 3.00% MC 93% * Data in millions CE 2012 1 U$S - Ch$ 479.80 CE 2013 1 U$S - Ch$ 525.14 Sources: ILACAD World Retail – It represents the chains’ total turnovers. There were only taken into consideration chains with over 8 stores.

42. Retailer Ranking in Chile in 2013 Sources: ILACAD World Retail – Retailer information

43. The pharmaceutical modern channel shows high concentration levels • Chilean global medication market reached a U$S 1,424 million turnover in 2013, 63% of which is represented by brand medicinal product sales and the remaining 27% by generic medication (35.7% as far as total units sold). It is expected the market would reach a U$S 3,000 million value by 2017 and see a downfall in brand medication and a rise in generic products, which would reach 36% of total sales within the next three years. • As far as expansion, retailers have seen a downfall during the past two years. In 2012, chains registered an 8% growth in relation to the year before but in 2013, the growth rate barely reached 5%. It is expected that this year the increase will be even smaller, as retailers may register a 1.36% annual growth. • Chile is the only country in Latin America where the pharmaceutical modern channel reaches 93% of the industry, despite it is dominated by only three retailers: Cruz Verde, Alliance Boots (former Ahumada Pharmacies) and Salcobrand, which are being very questioned due to several accusations by local pharmaceutic chains. One of the most serious accusations stated the retailers conspired on establishing medication prices, defrauding millions of Chileans. • According to the Independent Pharmacy Owners Union, large firms continue to establish prices and operating its units in a monopolistic behavior, while the government does not take any measures. Besides, they assure that they have made an agreement on settling and inflating every price. Out of almost 500 independent pharmacies that operate in the country, 300 are currently in bad shape. Likewise, they criticize the idea of selling medication inside supermarkets since “it forces pharmacies onto a disloyal competition” among chains. • One of the sector’s biggest events during the year was the entrance of Alliance Boots to the market, pharmaceutical leading chain in Europe, as it purchased Casa Saba’s operations, which indirectly control Ahumada pharmacies (in Mexico and Chile). The European retailer will take control of Casa Saba starting on the third quarter of 2014. Source: ILACAD World Retail – Market information

44. Cruz Verde 1 • Cruz Verde Pharmacies is Chile’s largest Chain and the one with the largest presence in the country, operating in regions like Cerro Sombrero and the Easter Island. • Mainly focused on medication, the chain operates under the pharmacy and drugstore format. It also targets the largest population segment and offers them medication at convenient prices. • Today, the chain operates two formats: stores with aisles and other without them. At the stores, clients will be able to find not only medication but also personal hygiene goods, beauty supplies and personal care items, among other categories • During 2014, the chain faced a very important work union problem, which took most of its employees on strike. The Company still hopes this issue does not affect its final earnings. • Cruz Verde expects its sales will grow by 10% in comparison to 2013, for which it would have to open between 30 to 40 new stores in the country. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

45. Ahumada Pharmacies 2 • Ahumada Pharmacies’ Main business is selling pharmaceutical products. However, they also offer natural products, nutritional supplements, beauty supplies, personal hygiene items and some other convenience store goods. • By December 2013, Ahumada Pharmacies operated 404 stores in 88 cities in Chile, being present in places like Arica to Punta Arenas and reaching a total of 61,703 square meters in sales area. However, it concentrates its presence especially in the central region of the country. • During 203, the chain launched two new formats. One is a sort of beauty shop under the NATIVA banner that has no aisles and only offers beauty supplies, baby products and personal care items. The other one operates under the FarmaRebajas banner, a new type of Pharmacy that targets the largest segment of clients. • In May of 2014, Casa Saba, which directly controls Ahumada Pharmacies, announced it had reached an agreement with Alliance Boots under which it would sell the European Company the totality of its shares in FASA under a public share acquisition offering (OPA in Spanish) through Chile’s Stock Market. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

46. Salcobrand 3 • Salcobrand, which holds the third spot in Chile’s Ranking, operates in most of the Chilean territory. • It operates a drugstore format with aisles and 150 square meter surfaces. It focuses on taking care of its clients’ health by offering a wide array of products and services that work towards a general wellbeing. • During 2013, the chain launched its second Mobile Pharmacy, which goes around the region of Bio Bio. It also inaugurated the first Espacio Salcobrand Inclusivo (Salcobrand Inclusive Space), the first pharmacy that offers an easy Access for handicapped clients in all Latin America. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

47. Dr. Simi Pharmacies 4 • After operating 12 years in Chile, Dr. Simi Pharmacies operate 182 stores up to date. • The chain operates a traditional Pharmacy format and offers generic medications at low and affordable prices. • The group operates both own pharmacies as well as franchised units, that have surfaces of between 60 to 100 square meters. • The company’s project for 2014 is to reach 200 stores in the country and consolidate its strategy that combines medicine at low prices and affordable medical care. • Present in all of Chile, the Mexican chain –known as “del Doctor Simi”- seeks to expand its services to clients with higher resources as well as widen their job offerings. • Today, the Dr. Simi Pharmacies chain holds a 77% satisfaction level in Chile, while in the Pharmaceutical sector it reaches 58%. As far as the medications the stores offer, 87% of clients are satisfied with them. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

48. Knop Pharmacies 5 • Today, Knop Pharmacies operate a 52-unit network. • The Company focuses on natural, therapeutic and homeopathic medicinal products, offering over 4,000 SKUs and trying to satisfy the growing demand of these sort of products in the country. • During 2014, the firm inaugurated two stores, located in Coquimbo and La Serena. Turnover in millions Sources: ILACAD World Retail –Retailer Data- 2014 Turnover is estimated based on sector data and retailer information-Stores up to July 2014

49. Main Facts on Colombia 48,374,000 U$S 4,203 1.94% MC 45% * The currency exchange data is shown in billions of Colombian pesos and the data in foreign currency data is shown in millions of US dollars. CE 2012 1 U$S - Col$ 1,770 CE 2013 1 U$S - Col$ 1,925 Sources: ILACAD World Retail – It represents the chains’ total turnovers. There were only taken into consideration chains with over 8 stores.

50. Retailer Ranking in Colombia in 2013 Sources: ILACAD World Retail – DANE – Retailer information