Building the present looking towards the future - Eurofarma

Building the present looking towards

the future

ANNUAL REPORT

2013

Enter >

G4-1

Cover Summary GRI index Search Zoom+ Zoom- Next page

Previous page Print Full

screen CloseGo to

Message from the President

In many aspects, 2013 has become a year of reference for Eurofarma. All indicators were positive. In this period, the company has strengthened the corporate governance improvement model started in 2012, when the company completed its 40th anniversary. Strategic decisions tak-en since then have proven to be correct and important, which have contributed to the net sales result of R$1.88 billion, 19% more than 2012. Considering the participa-tion results in joint ventures (Supera S.A and Inova), that weren't consolidated to meet the accounting regulations, our net sales would amount to R$ 1.95 billion. There also was an increase in market share in practically all per-formance areas, presented later on this report, which follows the newly released fourth guideline (G4) of the Global Reporting Initiative (GRI). During the first decade of this millennium, Eurofarma was considered, based on various factors, one of the best pharmaceuticals in Brazil. In 2011 and 2012, the company faced adversities and re-sults were below expectations. In 2013, we recovered the historical good results of the company.

In addition to net sales growth, our profitability had a significant increase. EBITDA 2013 presented an increase of 26% compared to 2012, reaching R$ 386.8 million. Among the factors that contributed to this good per-formance, there is the record number of new available products on the market, payroll exemption and stronger control of operational processes. Our 21% EBITDA mar-gin could be bigger and comparable to the best compa-nies in the area, if the company hadn't around 16% of its income liked to activities that, for now, don't have posi-tive results. But, in a long term vision, we understand that those are the exact same operations that will bring an important part of our growth. In our main business, the prescription medicine sector, we are third in the ranking, with more than 5% of the prescriptions in Brazil.

The increased competitiveness reflects the efforts put into improvements in corporate management and imple-mentation of strategic actions defined for the company.

Our new Industrial area structure, with all operations grouped under a Vice-President of Operations, created in January 2013. In its first year of operation it has shown solid results, such as clearer processes, less shortage of products and improvement of several operational indi-cators, achievements that came mainly from the involve-ment of the entire team. The synergy between factories, people and processes has been great.

Completely reworked in 2012, the Innovation field pre-sented the first results in 2013. The number of launches last year was a record, and perspectives for the following years are equally positive. Eurofarma currently has over 200 ongoing projects, including generic medicine devel-opment, incremental and radical researches, in addition to many agreements prospects for licenses to other com-panies. Changes in the Innovation field have strengthened research performances on the company, integrated pro-cesses and qualified employees. A Scientific Committee was established, with renowned professionals of several medical specialties . Product development is a long pro-cess, and the results of this intense work, although con-tinuous, must be well evidenced on the following three years. As the nature of our business depends on releas-es, good product development results are fundamental to the company's growth.

Internationalization continues to be one of the pillars of our business strategy, and in 2013, we acquired two companies, one in Peru, the fastest growing market in Latin America, and another on Guatemala, which op-erates in all Central America, marking our entry in this region. Currently, Eurofarma sales outside Brazil already represent 11% of our revenue, 62% more than last year. The effort to match these companies to our cultural and Compliance values has been great. However, we are sure that in a few years, when we are a strong regional com-pany, we'll change status and will have created an enor-mous gain to our operations and shareholders. This is a goal we'll indisputably pursue.

Results and perspectives are also good in the entire Eurofarma group, for example, Supera, our association with Cristália labs and MSD, has been growing year after year, and intends to become one of the major pharma-ceuticals in Brazil. In 2013 we began Momenta's opera-tions, a company 100% owned by Eurofarma that aims to replicate, on a smaller structure, our products, values , practices and beliefs. These initiatives have also been fundamental in the creation of new development and career opportunities for our employees. We believe that this business model, opposed to the mergers that have ruled the sector in recent years, is a good formula. Perhaps our company's most important asset comes from the fact that we operate in a fairly segmented mar-ket. Although we're one of the largest pharmaceuticals in Brazil, our market share is only 4%. If we consider Latin America as our natural market, this share is even smaller, near 3%. This means we still have a huge terri-tory to be conquered. By simply continuing to do what we have been doing until now.

Good corporate governance practices show how Eurofarma values its intellectual assets. In the last year, a new business environment survey was applied in the company, with excellent results. Over 90% of our employees said they are happy with the company. We count on motivated people who like to work with us. We believe that, in addition to competence, these fac-tors make a difference in delivering results and are an Eurofarma value.

We were listed on the Guia Você S/A Exame list of the best companies to work for in the country for the 10th consecutive year. Another important acknowledge-ment received in 2013 was the title of best company in the pharmaceutical sector by Época Negócios mag-azine. Among the factors that contributed to these achievements, is the practicing of an aggressive com-pensation. This is an important issue, because we be-lieve that people should feel well-paid, as our level of requirements is high. I particularly feel it is gratifying to

know we compensate our employees to match their performances.

In 2013 we got 1st place among pharmaceuticals on Exame Sustentabilidade, and we also entered the Ethos Institute for social Responsibility benchmark group. Both achievements are the result of a management ori-ented to sustainable growth and heartfelt involvement in topics that are important to society and of great im-portance to the market, as the optimization of natural resources, responsibility for waste generation and the ongoing search for improvements in social and environ-mental areas.

Among the environmental initiatives that stood out in 2013, is a partnership with the city of Itapevi, in Greater São Paulo, for donating all the excess water resulting from the 100% treatment process of wastewater from our factory located in the city. In order to effect this ac-tion, Eurofarma donated a tank truck to city hall, that daily withdraws water from our Industrial Complex to use in the cleaning of public thoroughfares.

Within the maturity we've reached in Eurofarma's cor-porate governance, the search for improvements in our processes and products is constant and fundamental to our way of conducting business. The Advisory Counsel, which has five independent directors, has been of great value. Persistence and perseverance on new ventures, with a long term vision and avoiding rushed results are some of our cultural values.

Our strategic plan, that was reviewed in 2013 and now looks towards 2020 shows, clearly, the way we have to follow to be one of the largest companies in Latin America. To achieve that, we invest in innovation aligned with current and future trends, corporate gov-ernance and human resources.

In 2013 we improved our foundations for the growth that the company has been projecting.

Maurizio BilliPresident of Eurofarma Laboratórios S.A.



screen CloseGo to

ANNUALREPORT

2013SUMMARY

About the report 6

Introduction 11Eurofarma Brazil 12

Eurofarma Group 14Joint Ventures 14

Controlled 15Eurofarma Latin America 16

Mission, Vision, Values 18Eurofarma in numbers 19Timeline 20Awards and acknowledgments 20

Business Areas 22Medical Prescription 24Generics 26Oncology 27OTC 28Hospital 29Bids 30Veterinary 31Services to Third Parties 32Euroglass 33

International Expansion 35Argentina 40Bolivia 40Subsidiary data: 40Chile 41

Colombia 41Guatemala 42

Peru 42Export unit 43

Uruguay 43

Corporate Governance 45Relationship between workers

and governance 46Branding Study 47

Structure of the Organization 48Advisory Counsel 49

Committees 51Relationship with the government 56

Standards and ethics 56Code of Ethics Standards 57Ombudsman 57

Operational Excellence 58Competence and performance 60Relationship with key stakeholders 62

Internal stakeholders 62Volunteering 66Respect for diversity 68Benefits 68

External stakeholders 72Suppliers 72Customers 73

Call center 74Safety and quality control 74Health and safety at work 76Certifications 77

Innovation and Research 79Scientific Committee 81

Sustainability Management 82

Commitments and actions 84Water 86

Waste Management 87Emissions 88

GHG Industrial Emissions -Industrial 88Energy 90Risks Management 90

Eurofarma Institute 91Educational Projects 92Professional training 93Donations 93

Ethos Indicators on Corporate Social Responsibility 94IBASE progress and Ethos indicators 94Sponsorships and events 94Eurofarma's score progress on ETHOS indicators 94

Prospects 2014 101Focus on goals and growth 102

Economic Performance 105Financial statements 106

GRI Index 110Independent Auditor's Report 112

Credits 114

EUROFARMA RS20134 I 5

ABOuT ThE REPORT



screen CloseGo to

Step 3: Impact analysis opposite sustainability

From this scope and considering the topics gathered by the aforementioned sources, the next step was to extract those that are more important to assess Eurofarma's sustainability performance.

The test includes four categories:

• Impacts/risks: Issues that might relevantly impact or pose risk to Eurofarma, in the short or long term.

• Laws/regulation: Issues that are taking shape or in development with a potential for regulation.

• Business sector: Matters discussed in the business sector.

• Opportunity and innovation: Topics that have a potential do explore opportunities and innovative solutions.

Stakeholders' Mapping and Involvement

The stakeholders'mapping and involvement process, as well as the materiality matrix, were developed together with a consulting firm specializing in RI sustainability re-ports on health.

The stakeholders survey is done annually and counts on the involvement of the Executive Board. In this pro-cess, the following stakeholdersgroups were identified: Employees, Partners, Service Providers, Input Suppliers, Government and Regulatory Agencies, Customers, Communities, Universities, Press and Third Sector.

The involvement of 2013 took into account the data collected for the 2012 report was reviewed for a new assessment and inclusion of stakeholders. The tool used was an electronic survey with all stakeholdersgroups, to-taling 747 completed questionnaires. The main topics mentioned by the stakeholders were:

Customers: Economic development, effluents and waste, health and safety at work, training and educa-tion, non-discrimination, child labor, safety practices, corruption and unfair competition, customer health and safety.

Employees: Economic development, market share, materials, power, water, effluents and waste, relation-ship between workers and governance, health and safety at work, training and education, diversity and op-portunity equality, safety practices, local communities, corruption, customer health and safety, product safety and ethic regulations.

Partners: Economic development, market share, pow-er, water, health and safety at work, training and ed-ucation, child labor, corruption, customer health and safety, product compliance and safety.

Government: Market share, procurement practices, power, water, biodiversity, products and their environ-mental impact, jobs creation, training and education, equal opportunities, human rights criteria on procure-ment practices, safety practices, corruption, public pol-icies, unfair competition, compliance, customer health and safety, marketing communication, ethic regula-tions, similar medications and falsified medications.

Suppliers: Economic development, market share, ma-terials, effluents and waste, health and safety at work, child labor, forced or compulsory labor, unfair compe-tition, corruption, customer health and safety, product compliance, product safety and ethic regulations.

Communities: Market share, materials, power, efflu-ents and waste, environmental compliance, corruption, public policies, product compliance, product safety, bio-safety and ethic regulations.

Eurofarma's sustainability report, prepared annually, is on its 2013 issue already according to GRI - G4 guide-lines released worldwide in May of that year. Since 2009, Eurofarma follows the guidelines of international orga-nization Global Reporting Initiative (GRI) to produce its annual report, informing society on its economic, social and environmental performance and its main activities in the year. There are no restatements of information provided in the 2012 report issued in August 2013, not even significant changes in scope and limit.

The term covered by this sustainability report is from January 1st 2013 to December 31st 2013. Eurofarma has tried to address all fundamental issues of the new guidelines. To address this challenge, a five steps meth-od was established to identify Eurofarma's relevant sus-tainability themes.

Step 1: Risks and Opportunities for Sustainability in all our organizations

In this step, all themes addresses bu GRI on the G4 guideline were covered.

Step 2: Risks and Opportunities for Sustainability in the Pharmaceutical Industry

The most relevant topics discussed by the industry in 2013 were identified and SASB* (Pharmaceuticals) and GRI (Pharmaceuticals, Biotechnology and Life Science)** were considered.

* SASB is an American nonprofit organization that provides disclosure standards on matters of sustainability for public companies in the USA. In 2013 SASB conducted a study on materiality in health by identifying key sustainability issues raised by the stakeholders in the pharmaceutical industry.

** GRI (Pharmaceuticals, Biotechnology and Life Science) re-fers to the worldwide research conducted by GRI in which the main sustainability issues pointed out by stakeholders in the industry were presented.

G4-18 G4-29G4-22 G4-30G4-23 G4-32G4-28

About the report


G4-24 G4-26G4-25 G4-27

0 1 2 3 4 5 6 7 8 9 10

10

9

8

7

6

5

4

3

2

1

0

ABOuT ThE REPORT



screen CloseGo to

41 Customer privacy42 Product compliance43 Product safety44 Biosafety45 Biotechnology46 Ethic regulations47 Reverse logistics48 Production risks

49 Similar medications50 Medication fractionation51 Falsified medicine

Indicators and data (financial, social and environ-mental) that comprise the report have been audit-ed by an independent company, KPMG Auditores Independentes.

Universities: Economic development, market share, procurement practices, materials, health and safety at work, training and education, corruption, customer health and safety.

Press: Economic development, power, water, effluents and waste, assessment of supplier labor practices, child labor, forced labor, communities, corruption, customer health and safety, medication labeling, biosafety.

Third Sector: Economic development, market share, material, water, power, emissions, effluents and waste, products and their environmental impact, supplier environmental assessment, jobs, health ans safety at work, training and education, compensation equality between men and women, human rights criteria in pro-curement processes, non-discrimination, child labor, forced or compulsory labor, safety practices, corrup-tion, customer health and safety, biosafety, biotechnol-ogy, ethic regulations, similar medications.

Materiality:

Considering the results of the identified sustainability impacts versus the engagement result, a materiality matrix was drawn, shown on the right.

The themes identified in the materiality matrix refer to all Eurofarma's business units in Brazil, and are high-lighted in yellow on the right:

1 Economic development2 Market share3 Procurement practices4 Materials (source and use)5 Power6 Water7 Biodiversity8 Emissions9 Effluents and waste

10 Products and their environmental impact11 Environmental compliance12 Transportation13 Environmental expenses14 Supplier environmental evaluation15 Job creation16 Relationship between workers and governance17 Health and Work Safety18 Training and education19 Diversity and opportunity equality20 Compensation equality between men and women21 Assessment of supplier labor practices22 Human rights criteria in procurement processes23 Non-discrimination24 Child labor25 Forced or compulsory labor26 Safety practices27 Supplier human rights assessment28 Local communities29 Corruption30 Public policies31 Unfair competition32 Compliances33 Complaint tools34 Access to medications35 Clinical trials36 Animal welfare (tests)37 Preparing for emergencies and epidemics38 Customer safety and health39 Medication labeling40 Marketing communications

Market shareEffluents and waste

Economic developmenthealth and Work SafetyProduct safety

Materials (source and use)PowerEthic regulations

Water Customer safety and health

28

6

2, 9

4, 5, 46

49

38

1, 17, 43

19

8 25, 36

37 20, 33 7, 40

14

3, 5012, 21

22, 27, 41, 4713

15, 24, 31 30, 34, 35

32, 48

10, 11, 39, 45, 51

44 42

18, 23

16, 26, 29


G4-33G4-19G4-20G4-21

Importance of economic, environmental and social impactsIn

fluen

ce o

n st

akeh

olde

rs'e

valu

atio

ns a

nd d

ecis

ions

EUROFARMA RS2013 10 I 11

CÓDIGO



screen CloseGo to

Presentation


PRESEnTATIOn



screen CloseGo to

Hemolenta, the outlooks are of expand-ing plant performance, which reflects on margin products improvement.

In addition to these Units, Eurofarma has a plant in Rio de Janeiro (destined to the production of Pearson products - Veterinary division), and in Juatuba, MG, Inova Biotecnologia headquarters, focused exclusively on producing vaccines for FMD.

Since its founding in the 70's, by Italian immigrants who dared to create a laboratory with an unique business model in the country, Eurofarma is driven by an entre-preneurial vision. With the culture of establishing bold and high level of domestic demand targets to meet the highest standards, both management and operation-al, Eurofarma is a flexible company and open to new business models, as evidenced by the configuration of the Group, which maintains national and international partnerships in different cooperation models such as joint ventures, co-development and licensing, among others. The visionary and entrepreneurial spirit puts the Eurofarma Group at the forefront of the Brazilian pharmaceutical sector.

Eurofarma Laboratórios S.A. is a 100% national capital company, founded in 1972 (originally as Billi Farmacêutical), consolidated today as one of the largest pharmaceutical companies in Brazil.

EUROFARMA BRAZILEurofarma Laboratórios S.A. is a private company with 100% national capital, founded in 1972 (originally as Billi Farmacêutica), consolidated today as one of the largest pharmaceutical companies in Brazil, and in 2013, the country produced more than 200 million units of medications and more 60 million units of Large Volume Parenteral Solutions (LVPS). Operates in all major pharmaceutical segments through its Business Units - Medical Prescription, Generics, Oncology, OTC, Hospital, Tenders, Veterinary (Pearson), the Third Party Services, Euroglass and Export.

The industrial complex that gathers the company's main productive activities is located in the city of Itapevi, around 40 km from the city o São Paulo, and is con-sidered one of the most advanced pharmaceutical complexes in all of Latin America. The complex current-ly holds more than 70% of the Eurofarma's industrial operations.

The administrative headquarters of Unit II and three units of the company are located in the state capital, in the districts of Campo Belo, Interlagos I (Instituto Eurofarma headquarters), Interlagos II (focused on the production of ampoules and glass vials, in addition to headquartering Euroglass and Supera) and Freguesia do Ó (responsible for antibiotics production ans headquar-tering the new company, Momenta, founded in 2013). The last plant, acquired by Eurofarma in the 1980s, was the cradle of penicillin manufacturing in Brazil.

Eurofarma also has a plant dedicated to produce HVPS (high volume parenteral solutions) in the city of Ribeirão Preto, located in the countryside of the state of São Paulo. This unit is located in the Guarani Aquifer region, enabling access to excellent quality water for serum production. The nominal capacity of this plant is the largest in Brazil, supporting 11 million units of sera per month. In 2013, the unit recorded a profitability im-provement of 81%, if compared to 2012. With the re-lease of exclusive products in 2014, like Eutramix and

G4-3G4-5G4-7G4-8

PRESEnTATIOn



screen CloseGo to

COnTROLLEDMOMENTA

Created in 2013, Momenta Farmacêutica is an indepen-dent operation, 100% belonging to Eurofarma. The lab manufactures and markets its own brand of products, focused on the Medical Prescription segment. It also services companies that wish to outsource the medi-cine production process. Based in Freguesia do Ó, Sao Paulo, Momenta has the capacity to produce over 30 million units per year. Between May and November 2013, the company's net sales were over R$ 75.6 million and beat its selling goals set for the period.

Less than six months after its creation, Momenta re-leased its first product, result of a license agreement signed with Althaya, the oral contraceptive Yang 30. For 2014, the company's expectation is to release six new brands over the year, all focused on the medical pre-scription segment.

MOMENTA 2013Marketed units 12,234,917Sales R$ 75,601,355.00

MAGABI

A Magabi Pesquisas Clínicas e Farmacêuticas Ltda. is the Eurofarma company responsible for sample anal-ysis for relative bioavailability and bioequivalence stud-ies, required to obtain drug registration with ANVISA. In 2013 Magabi had a 900% growth on number of samples processed from external customers. In 2013 the structure of the Magabi laboratory was installed in Itapevi Industrial Complex (SP).

Integrated to Eurofarma's policy of search for opportuni-ties in the foreign market, last year Magabi participated

in important events, such as the meeting organized by the FDA (Food and Drug Administration) in the United States - Quantitative Bioanalytical Methods Validation and Implementation: The 2013 Revised FDA Guidance. The company also participated in international bioequiva-lence studies, in collaboration with the Colombian or-ganization Centro Internacional de Entrenamiento e Investigaciones Médicas (Cideim). The company meets Eurofarma's and other pharmaceutical companies' de-mands and was the first center in the country able to perform the analytical phase of low-dose hormones.

MAGABI 2012 2013

Gross revenue R$ 4,302,260.20 R$ 3.258.34270

Net sales R$ 3,818,255.93 R$ 2,890,576.66

Total of finalized samples 46,929 51,361

Average (samples/ month / mach.) 1,295 1,616

Average (samples / analyst / day) 35.9 39.5

Expenses R$ 3,188,454.00 R$ 2,741,235.00

Operational result R$ 629,801.93 R$ 149,341.66

Average cost / sample R$ 67.94 R$ 53.37

EUROFARMA GROUP

JOINT VENTURESIn this business model, Eurofarma has three companies in Brazil - Supera, Inova e Orygen.

SUPERA

Supera Medicamentos Ltda. is the product of a joint ven-ture founded in 2012, by Eurofarma, Cristália and Merck Sharp & Dohme (MSD), and started its operations with the transfer of brands and products of shareholder companies. In 2013 Supera released its first own brand medication, Vagicand® (fenticonazole nitrate). Over the year, the company also enabled a new presenting of the Fluxene® antidepressant and began co-promot-ing its medications Januvia® (sitagliptin phosphate) and Janumet® (sitagliptin phosphate + metformin ch-lorhydrate), still under patent in the country. Previously marketed by MSD, Maxalt® (rizatriptan benzoate) was also included in the portfolio. In 2013 Supera moved its distribution center to Goiânia.

The goals set for the company in 2013 were achieved and Supera recorded a 17% growth in marketed units compared to 2012.

SUPERA 2012 2013Marketed units* 14,500,000 17,000,000Sales R$ 219,290,000 R$ 253.075.000

Main Supera products by revenue:

1st - Gracial®2nd - Moduretic®3rd - Amytril®

INOVA

Inova Biotecnologia was created from a joint venture between Eurofarma and the Hispanic-Brazilian group Hertape Calier Saúde Animal, and it is the most modern factory for production of FMD vaccines in Brazil, located in Juatuba (MG). In 2013, all batches produced by the company were approved by the Ministry of Agriculture.

In the last year, Inova has also intensified the expan-sion of its presence in the foreign market, from the marketing of Aftomune®, a highly purified vaccine for preventing FMD. In addition to negotiating 10 million units to meet the Venezuelan market, the company also won tender in Uruguay and provided 2 million doses. In other fronts, Inova has partnered with Unión Columbia Group, acting in Bolivia, and the outlook for this market is to sell 6 million units per year.

The American company TABI (Transboundary Animal Biologics, Inc), that does licensing brokerage of foreign companies for the Department of Agriculture of the United States gave, in 2013, assent to Inova, after audit-ing the company. This is the first step for Aftomune® to get permission to enter the demanding American mar-ket of strategic safety vaccines.

INOVA BIOTECNOLOGIA 2012 2013Marketed units 14 batches* 19 batches*

Net annual revenues R$ 36,600,000 R$ 47,352 thousands

*Batches with nearly 3.5 million doses

ORYGEN

Orygen Biotecnologia is an Eurofarma joint venture ,that holds 33% of the company's capital, with Cristália and Biolab labs and has had the support of the federal gov-ernment and BNDES (National Bank for Economic and Social development) for its creation. Orygen's activities are exclusively focused on research and production of biotechnological drugs. The company is a long term project of Eurofarma's and its goal is to gather technol-ogy and knowledge, in addition do be self-sufficient do meet the demands of the Unified Health System (SUS). Seven medications and biosimilar, considered strategic by the federal government and user for cancer treat-ment and inflammatory diseases are Orygen's initial goal. The company expects Orygen's first biosimilars to be marketed within two years.

G4-13EUROFARMA RS2013

14 I 15

PRESEnTATIOn



screen CloseGo to

The process of international expansion began in 2009 with the acquisition of Argentine laboratory Quesada, focused on gastroenterology and cardiology. In the following years, Eurofarma continued the strategy of seeking business opportunities on the conti-nent and acquired Laboratórios Gautier, with operations in Uruguay and Bolivia; Volta e Farmaindustria, in Chile, and has initiated projects in Venezuela with the submission of records.

In 2012 the company acquired a Merck Sharp & Dohme (MSD) manufacturing plant in Colombia. It also opened companies in Paraguay, Equador and Mexico, the latter being the second largest pharmaceutical market in Latin America.

In 2013 Eurofarma went back to acquiring international operations. In Peru, with the purchase of Refasa Carrión, which occupies the 21th position in the regional market and in Guatemala, with the acquisition of Laprin laboratory, marking the arrival of Eurofarma to Central America and the Caribbean.

PRODUCTION PER UNIT AND PERCENTAGE OF THE TOTAL OUTPUT:

Converted Amount Sum

CENTER 2013 %

EF02 CAMPO BELO UNIT 4,768,969 2.4%

EF03 FREGUESIA DO Ó UNIT 13,186,378 6.6%

EF05 RIO DE JANEIRO UNIT 682,752 0.3%

EI01 ITAPEVI BLOCK 5 45,940,213 23.0%

EI02 ITAPEVI BLOCK 6 17,211,468 8.6%

EI03 ITAPEVI BLOCK 7 117,727,661 58.9%

EI04 ITAPEVI BLOCK 9 515,493 0.3%

Summary

MEDICINES 200,032,934 100.0%

HVPS 62,004,450 81%

EUROGLASS 153,124,968 85.67%

VALuES

Row label MAT09

MAT10

MAT11

MAT12

MAT13

LAB NOT INDICATED 22.58% 22.46% 25.31% 27.51% 27.39%

ACHE 6.48% 6.41% 6.42% 6.18% 6.42%

SANOFI 6.03% 5.76% 5.25% 4.91% 4.79%

EUROFARMA 3.12% 3.34% 3.87% 4.39% 4.74%Source: Close-Up MAT Dez/2013* Unit Farma's portfolio of Dec/2013, not considering Momenta and

Supera products.

EUROFARMA LATIN AMERICABesides Brazil, Eurofarma is present in Argentina, Bolivia, Chile, Colombia, Uruguay, Peru and Guatemala with its own operations. The company also has offices in Panama, Nicaragua, Honduras, El Salvador, Costa Rica and Dominican Republic.

Internationalization is one of the main strategic targets of Eurofarma, which aims to cover 90% of the Latin American market by 2015. The movement is unique among Brazilian capital pharmaceutical companies.


16 I 17

Internationalization is one of the main strategic targets of Eurofarma, which aims to cover 90% of the Latin American market by 2015. The movement is unique among Brazilian capital pharmaceutical companies.

PRESEnTATIOn



screen CloseGo to

Focus: permanent positive results generation goal to promote company growth through resource reinvestment in our own business.

Nationality: proud of being Brazilian and commitment to the development of Brazil, keeping the countries where we operate, respecting the traditions and customs of other peoples and cultures with which it interacts.

EUROFARMA IN NUMBERS

Countries in which it operates: 14

Total employees 5,848

Employees in Brazil 4,601

Employees in other countries 1,247

Plants in Brazil 5

Plants in subsidiaries 6

Eurofarma Brazil net income for 2013 (Controller)R$ 160,764 thousands

Amount of marketed products without AG, tender and third parties

524 SKUs

2013 HIGHLIGHTSAverage customer satisfaction with Eurofarma was 91%

Record releases - trademark.

Creation of Momenta Farmacêutica.

Release of the first medication with Supera record.

Creation of the Scientific Committee

Eurofarma's entry in Peru and Guatemala.

Partnership with the city of Itapevi to donate surplus treated water from the Industrial Complex in the city.

Chosen the Number 1 Pharmaceutical by Guia Exame Sustentabilidade.

Joining in the Ethos Institute for social Responsibility benchmark group.

Creation of Financial Vice Presidency.

Strategic Planning Review - 2020 Vision.

MISSIONPromoting access to health and quality of life with fair price treatments in a profitable operation that ensures its sustainable growth in different market segments of the company.

VISIONIn 2015, we will be one of the top 3 pharmaceutical companies in Brazil in terms of market share, with pro-prietary innovative products, and our own labels, cover-ing 90% of the Latin American market."

VALUESEthics: the behavior of all our employees is based on ethics and transparency in all actions and operations performed.

Commitment: competence and commitment to the company enable the appreciation and growth of our employees.

Diversity: respect for diversity, justice and equality in the company-collaborator relations are corporate commitments.

Sustainable development: our social responsibility and concern for environmental preservation are con-firmed in the actions towards wellness and sustainable development of the communities in which the company operates and with which it interacts.

Risk: the belief that taking risks is an integral part of a successful and dynamic company.


18 I 19G4-9

Revenues by Brand ranking Product

1 TAMISA

2 SELENE

3 PONDERA

4 ASTRO

5 SINOT

6 ARTICO

7 AMATO

8 NOEX

Source: 2013 Internal sales

Volume by presentation ranking

Product

1 NIMESULIDA

2 SILDENAFIL CITRATE

3 LOSARTAN POTASSIUM

4 ETHINYL ESTRADIOL+ CYPROTERONE ACETATE

5 ETHINYL ESTRADIOL + GESTODENE

6 BETAMETHASONE

7 DOXAZOSIN MESYLATE

8 PARACETAMOL + CODEINE

Source: 2013 Internal sales

ApresentAção CÓDIGO



screen CloseGo to


TimelineMajor milestones the history of 41 years of Eurofarma

AWARDS AnD ACKNOWLEDGMENTS

In 2013 Eurofarma's commitment to good social and environmental practices and corporate governance, as well as the appreciation for its intellectual capital, have earned the company one of its most important market acknowledgments:

• Chosen as the most sustainable company in the pharma-ceutical industry by Guia Exame de Sustentabilidade 2013.

• For the 10th year in a row Eurofarma was chosen one of the best companies to work for in Brazil by Guia Você S/A Exame 2013.

• One of the best companies in the pharmaceutical industry in Social Responsibility, Human Resources Management and Corporate Governance by Guia 100 Melhores da Dinheiro.

• Champion of the pharmaceutical industry by Época Negócios 360ºmagazine.

• Época Negócios 100 magazine – third place in the pharmaceutical industry in Brazil category.

• For the fourth time in a row, Eurofarma has conquered the Prêmio Hospitalar award in the Pharmaceutical Industry category.

• Prêmio Bumerangue award - Eurofarma won the Corporate Training category.

• Won the Prêmio PES award, presented by Sindusfarma (Association of the Pharmaceutical Industry in the State of São Paulo) to pharmaceutical companies with the largest number of participants in the workshops of the Union Education Program.

• Eurofarma Pearson was chosen the best company in the Animal health segment by Dinheiro Ruralmagazine.

1972 - Founding of Billi Farmacêutica.

1977 – Outsourcing the production of Laboratório Carlo Erba.

1979 – Acquisition of the headquarters of Campo Belo Unit (SP) and Laboratório Inaf.

1982 – Acquisition of ISA, first brazilian lab to produce penicillin.

1987 – Acquisition of brands of Majer Meyer lab.

1992 – Acquisition of Stanley Home do Brasil subsidiary (Interlagos II Unit/SP)

1993 – Creation of Eurofarma brand.

1995 – Completion of works in the Freguesia do Ó/SP Unit and starting of Euroglass activities.

1997 – Acquisition of Pearson brand and its manufacturing plants (Rio de Janeiro).

1998 - Acquisition of Wyeth brands (Amplacilina®, Benzetacil ®, Pen-ve-Oral®, Wycillin®, Helmiben® e Rehidrat®).

2001 - Entry in the Brazilian market of generics.

2002 - Beginning of exportation activities.

2006 - Creation of the Innovation Center e founding of Instituto Eurofarma. Creation and launch of the Magabi Pesquisas Clínicas e

Farmacêuticas Ltda operations.

2007 - Inauguration of the first production block of Itapevi complex. Filing of the first Eurofarma patent . EMA (European Medicines Agency)

certification for the entire line of post-injectable cephalosporins.

2008 - Filing of the first international patent. Joined in global consortium for conducting clinical trials in the country for innovative drug.

2009 - Acquisition of Quesada Farmacêutica and creation of Eurofarma Argentina. Release of the first monoclonal antibody (CIMAher®).

2010 - Acquisition of Laboratórios Gautier (Eurofarma Uruguay e Eurofarma Bolivia) and Volta and Farmindustria (Euromed Chile). Joined in the market of vac-

cines against FMD (Inova Biotecnologia).

2011 - Creation of the Advisory Council. Change in corporate name to Inc. Creation of the Supera and Cristália lab joint venture .

2012 - Creation of Eurofarma Colombia. Establishment of offices in Paraguay, Ecuador and Mexico. Creation of Supera and Orygen. Restructuring of the company aimed at promoting

growth..

2013 - Founding of Momenta Farmacêutica. Eurofarma's entry in Peru and Guatemala.


Áreas de NegóciosCÓDIGO

11 i 12



screen CloseGo to

Business Areas

9 97

53

A incluir na diagramação :

Evolução das vendas e vendas consolidadas por segmento

Relação dos lançamentos em 2013 + principais produtos em faturamento – conforme tabela Revista Panorama 143.

BuSInESS AREAS



screen CloseGo to

Eurofarma's commercial structure is organized in autonomous Business Units, which generates more flexibility and agility to meet the demands of the market and specificities of each market segment.

MEDICAL PRESCRIPTIONIn 2013, Eurofarma's Medical Prescription Unit reached the milestone of one billion reais in sales. This val-ue represents 57% of the total sales of the company during the period. Last year the Unit restructured its product lines, transferring some medications to the newest company created by the Group, Momenta Farmacêutica. Eurofarma also adopted the strategy of transferring around 200 sales task force employees to the new company.

With the transfer of some products to Momenta, the unit lost the second place in the prescription ranking , however, without accounting for transferred products, the difference between the Eurofarma Unit and the first company in this ranking is ranking point (MAT DEC


24 I 25

2013). The Medical Prescription Unit was responsible for an increase of 20.8% in revenues compared to 2012.

Last year the company started a remote visits project, Eurofarma Sem Fronteiras, which currently brings information about company products and medical update to 178 enrolled physicians that work in difficult access towns in seven Brazilian states.

Another project created and carried out by the Unit in 2013 was Propagandista Assistente, that aims to expand the access of people with special needs (PSNs) to the position of sales representative.

Medical Prescription 2011 2012 2013

Sales task force(number of people) 1,714 1,714 1,506

Amount of line presentations 216 215 210

Gross revenue R$ 911.623 mi R$ 953.2 mi R$ 1,016.0 mi

Share in company revenue 59% 58.7% 57,0%

Position in the total amount of Eurofarma sales 1st 1st 1st

Market share(Prescription- Close-Up)1 3,87% 5,13% 4,74%

Place in the lab rank1 4th 2nd 3rd

Market share (Reais PPP)2 3,09% 3,25% 3,42%

Place in the national brand drugs rank. (PMB) 7th 5th 3rd

Three main products in revenue

Tâmisa®,Selene®,

Pondera®

Tâmisa®,Selene®,Pondera

Tâmisa®,Selene®,

Pondera®

1. Source: Close-Up MAT Dec/20132. Source: IMS Health PMB MAT Dec/2013Notes: In 2013, part of the Medical Prescription Unit products were transferred to the newly-created "Momenta" operation - a company 100% owned by Eurofarma Group.In total, 17 products were withdrawn from this business unit that, in 2012, represented 11.3% of sales, in the amount of R$107.8 million. If these products had been excluded from the comparative basis, the progress of the Medical Prescription Unit would have been 20.2% over the previous year.

Medical Prescription

Releases in 2013

• Bart h(irbesartan + hidrochlortiazid) - antihypertensive

• Léptico®(lamotrigine) - antiepileptic

• Emet(tablets) (dimenhydrinate + pyridoxine) - antiemetic

• Piemonte(sodium montelukast) - antileukotriene

• Ginna®(fenticonazole nitrate) - vaginal cream

• Esc®(escitalopram oxalate) - antidepressant

• Duomo®hP (*)(doxazosin + finasteride ) - threatment of Benign Prostatic Hyperplasia (BPH)

• Molièri 30(drospirenone + ethinylestradiol) - contraceptive

• Trimeb®(trimebutine maleate) - Irritable Bowel Syndrome

(8) Product unprecedentedly combines two traditional drugs in the treatment of BPH

Marketed units

2012 48.154 mil

2013 54.276 thousand

Fluctuation 12.7%

Sales

2012 R$ 953,200 thousands

2013 R$ 1,016,000 thousands

Fluctuation 20.8%

Revenue progress and Ranking(IMS/PMB - Reais PPP - Billions)

22.153

0.624

MAT 09

0.700

MAT 10

0.813

MAT 11

0.948

MAT 12

1.127

MAT 13

24.86626.318

29.398

32.945

Eurofarma Market Place in the ranking

Source: IMS Health PMB MAT Dec/2013Brand products Farma Unit's portfolio of Dec/2013, not considering Momenta and Supera products.


*Tabela dados faturamento, força de vendas, market share, entre outros.

Relação dos lançamentos em 2013 + prin-cipais produtos em faturamento – con-forme tabela Revista Panorama 143.


*Tabela dados faturamento, força de vendas, market sha-re, entre outros.

BuSInESS AREAS



screen CloseGo to

ONCOLOGYIn 2013 the Oncology Unit improved its position in Eurofarma's sales rank (current 5th place), registering approximately R$66 million by the end of the sales year, a 28% improvement compared to last year. Good re-sults made the Unit beat all goals set for last year.

The Unit's sales force focused its studies on medicines that entered the market in 2012, but had their sales consolidates in 2013, like oncology generics imatinib mesylate and irinotecan hydrochloride. The compa-ny has a comprehensive portfolio of 20 products that meet most oncology protocols.

Investments in clinical trials are one of the Oncology Unit's main focuses, representing 37.5% of searches conducted by Eurofarma. The company has a few his-toric milestones in the segment, such ads the release of the first oncology generic in the Brazilian market (Doxorrubicina), in 2001, and the first monoclonal anti-body in the country by a national company, CIMAher® (nimotuzumabe). Monoclonal antibodies integrate a relatively new class of complex drugs, which represent advances in the treatment for many diseases.

Oncology 2011 2012 2013Sales task force (number of people)

29 29 30


Gross revenue R$ 43.0 mi R$ 51.3 mi R$ 65.9 miShare in com-pany revenue 3,0% 3,2% 3,7%

Position in the total amount of Eurofarma sales

6th 6th 5th

Market share of institutional sales (in value)*

1,84% 2,34% 2,85%

Eurofarma's rate in the national rank of institutional sales

9th 10th 8th

Three main products

Ac.Zoledronic, Calcium Folinate, Anastrozole

FolinateCalcium, Ac. Zoledonic, Anastrozole

Ac.Zoledonic, Anastrozole and Calcium Folinate

1. Source: IMS NON RETAIL MAT Dec/2011 base Feb/2012. Oncology non retail MarketNote: for pricing in Brazilian reais, abstraction is made in units and priced based on public data of tenders.

GENERIC MEDICINEActing in a very competitive market in the country, the Generics Unit was able to record a 29% growth in sales in 2013 (around R$215 million). Good performance was perceived practically in the whole line of products, and is supported by the success of the company's commer-cial strategy. The number of marketed units also pre-sented a positive variation of 6%, accounting for 47.8 million.

The unit also released 16 products in 2013, seven of them resulted of a commercial distribution agreement with Cristália lab and Althaia lab. The performance im-provement in some important drugstore chains was one of the factors that contributes to the company's bigger market share last year.

Generic Medicine 2011 2012 2013

Sales task force(number of people)

136 136 136

Line Presentations 147 144 154

Gross revenue R$ 177.0 mi R$ 166.7 mi R$ 215.1 mi

Share in com-pany revenue 11,5% 10,3% 12,0%

Rank at Eurofarma 3rd 3rd 3rd

Market share in value 7,13% 7,09% 7,46%

Place in the generics rank 3rd 4th 4th

3 main products

Cilostazol, Potassic Losartan and Sildenafil Citrate

Cilostazol, Potassic Losartan and Norethisterone enanthate + Estradiol valerate

Cilostazol, Norethisterone + Estradiol valerate and Acetylcystein

Source: Internal sales and IMS/PMB Mar/14

Generic Medicine

Releases in 2013

• Amoxicillin + clavulanate suspension *antibiotics• Atorvastatin calcium*anti-cholesterol• Betahistine dihydrochloride*antivertiginous• Escitalopram oxalate*antidepressant• Fenticonazole nitrate*vaginal cream• Montelukast chewable tablet*antileukotriene• Pantoprazole* 40 mgantiulcer• Sertraline hydrochloride* 25 mgantidepressant• Trimebutine maleate***antispasmodic• Acyclovir**topical antiviral• Amlodipine besylate**antihypertensive• Captopril**antihypertensive, vasodilator• Lisinopril**antihypertensive• Mupirocin**topical antiabiotic• Isoconazole nitrate**antimycotic• Omeprazole**antiulcer*Inside development**Partnership with Cristália lab***Partnership with Althaia lab

Marketed units2012 45,034 thousand2013 47,835 thousandFluctuation 6.2%Sales2012 R$ 166,714 thousands2013 R$ 215,140 thousandsFluctuation 29%


Oncology

Marketed units

2012 431,000 thousands

2013 496,000 thousands

Fluctuation 15,2%

Sales



Fluctuation 28,3%


*Tabela – dados faturamento, força de vendas, market share, entre outros.


*Tabela – dados faturamento, força de vendas, market sha-re, entre outros.

BuSInESS AREAS



screen CloseGo to

HOSPITAL SUPPLIESResponsible for providing for more than 1700 hospitals nationwide, the Hospital Unit is Eurofarma's second largest sales division.

Commercial strategies adopted by the Unit in 2013 al-lowed an increase of over 21% in sales compared to the previous year, totaling more than R$ 304 million in revenue. A model in the hospital segment, the Unit of-fers a a fairly complete portfolio, made up of medicines (antibiotics, anti-ulcer, anti-inflammatories, anticoagu-lants, anesthetics) and HVPS (high volume parenteral solutions).

Also acknowledged for the provision of services it of-fers to the market, Eurofarma won the Prêmio Top Hospitalar award for Pharmaceutical Industry for the fourth consecutive time.

And, keeping with the tradition in pioneering, in 2013 the Hospital Unit initiated the hospital products pack-aging innovation project, including visual elements that facilitate differentiation and help reduce the incidence of managing errors in health institutions, initiative fully in line with the guidelines of the National Patient Safety Programme, launched in 2013 by the Ministry of Health.

Another highlight of the year was the investment in lead-ership, focused on management skills improvement.

hospital suppliesMarketed units2012 5,515,2362013 5,423,520Fluctuation -2%Sales2012 R$ 251,657,9082013 R$ 304,677,572Fluctuation 21%

hospital supplies 2011 2012 2013

Sales task force(number of people) 79 72 75



Share in company revenue 15% 15,50% 17%


2nd 2nd 2nd

Total number of hospitals for which it markets products

1,581 1,448 1,727

Market share of institutional sales (in value)¹

7,94% 6,80% 6,07%

Eurofarma's rate at the national rank of institution-al sales

3rd 4th 5th

Three main products

Piperacillin + Tazobactam, Polymyxin, Meropenem

Physiological, Polymyxin, Piperacillin + Tazobactam

Physiological, Polymyxin, Piperacillin + Tazobactam

1. Source: IMS NON RETAIL MAT Dec/2013 - Hospital MarketNote: Line presentation decrease in 2013 is due to the discontinuation of sanitizing, antiseptic and cosmetic line.For pricing in Brazilian reais, abstraction is made in units and priced based on public data of tenders.

OTCCreated in January 2012, the UTC Unit, acronym for over the counter started counting, in 2013, with the support of the Generic Unit sales team to promote and sell the items that make up its portfolio at sale points. Until then the Unit didn't have a sales team, counting exclusively on the work developed by distributors at drugstores in the country.

Throughout 2013 various marketingtools were tested in order to identify those with best response within the OTC segment. For example, advertorials were created to promote herbal regulator Povata, which was ad-vertised on line and in print media. Another example is a campaign to raise awareness of the importance of breastfeeding conveyed in social networks and that in-cluded the creation of a portal for wider content, with information on baby and mother care – www.compar-tilheessecuidado. com.br. The initiative, sponsored by product Mamare, had great impact on the web.

The Business Unit had, in 2013, a 1.2% growth in sales, adding up to R$34.2 million, even with the 5.5% reduc-tion of marketed units (2.4 million) compared to the previous year.

OTC

Marketed units

2012 2.496 thousand

2013 2.359 thousand

Fluctuation – 5,5%

Sales



Fluctuation 1.8%

OTC 2011 2012 2013

Sales task force (number of people) - 4 6

Amount of line presentations - 12 12

Gross revenue - R$ 33.8 mi R$ 34.2 mi

Share in company revenue - 2,1% 1,9%


- 7th 7th

Market share (in value)1 - 0,35% 0,29%

Eurofarma's rate in the national brand popular medication rank1

- 64 67

Three main prod-ucts in revenue -

Minilax®Aires®Beminal®

Minilax®Aires®Beminal®

1. Source: IMS Health PMB MAT Dec - Reais. Base: Popular Market of Brands


http://www.compartilheessecuidado.com.br

http://www.compartilheessecuidado.com.br



A incluir na diagramação:

*Tabela – dados faturamento, força de vendas, market sha-re, entre outros.

BuSInESS AREAS



screen CloseGo to

VETERINARY SCIENCEIn 2013, Eurofarma, through its veterinary unit, was cho-sen the best company in the Animal Health segment by Dinheiro Ruralmagazine. The performance of the Unit, which operates in the areas of livestock and large ani-mals, is directly influenced by external factors that im-pact livestock farming in the country, like the weather. During the year, this segment suffered from long peri-ods of drought in some regions and excessive rainfall in others, hampering agribusiness as a whole. South Brazil was the most affected region, causing a drop in sales of raw materials and products for veterinary use.

Facing a market with constant challenges, the Veterinary Unit acted swiftly to review strategies and, in early September 2013, opted for the return of direct sales to resales, in order to improve results. In addition to cli-mate impact, that affected the whole segment, the lack of product releases, important for growth maintenance and portfolio renewal, also impaired Unit Pearson's sales, that ended 2013 with R$ 40.3 million sales and over 2 million marketed units. The number is 20% less than 2012. The review of segment planning is ongoing and new strategies are being implemented for resump-tion of growth starting in 2014.

Veterinary Science

Marketed units

2012 2.603 thousand

2013 2.073 thousand

Fluctuation -20.3%

Sales



Fluctuation -23.9%

Veterinary Science 2011 2012 2013

Sales tasks force (number of people) 52 52 46



Share in company revenue 4,00% 3,30% 2,30%


5th 5th 6th

Market share 1,66% 1,59% 1,02%

Place in the na-tional rank of vet-erinary industry.

16th 17th 22th

Three main products

Newmast®, Creolina®, Aminofort®

Newmast®, Creolina®, Aminofort®

Creolina®, Aminofort® Newmast®

1. Source: IMS – SINDAN - MAT Dec/2013.

TENDERSBy participating in tendering processes, the area serves public health institutions and offers the whole line of Eurofarma products. A few items were highlighted in 2013, like the generic medicine imatinib mesylate, in-dicated for the treatment of chronic myeloid leukemia and other cancers. Another good performance was at-tributed to sales of the emergency contraceptive Dopo ® (levonorgestrel), which became part of the federal government's programs for women's health.

The drug BUP ® (bupropion hydrochloride) stands out in the National Programme for Tobacco Control, and was selected once again for the list of items that will be distributed by the Unified Health System (SUS).

These, among other factors, made the Unit beat its 2013 goal, with an 8% surplus in volumes. Overall, more than 7 million units were marketed. However, in value, the R$ 72.5 million sales were around 9% smaller if compared to 2012. One of the main factors is related to the not

effective tenders in 2012, caused by the Federation's decentralization of purchasing for states and cities.

The enhancement of Web Licitações system, a process carried out internally, made accessing and document-ing the steps of a public tender easier and faster, con-tributing to the management of the segment and pro-viding more transparency to the process.

In partnership with the Compliance segment, the Unit conducted, in December 2013, a training for eight dis-tributors focusing on compliance with the new anti-cor-ruption law (Law n. 2.846/13), as well as Eurofarma's new compliance policies. The meeting also counted with the participation of RHS Licitações, experts in the field.

Tenders

Marketed units

2012 9.846 thousand

2013 7.333 thousand

Fluctuation -25.5%1

Sales



Fluctuation -9.3%2

1. Decrease is due to the not effective tenders occurred in 2012, which were decen-tralized from federal and state responsibility to cities.

2. Decrease is due to the not effective tenders occurred in 2012, which were decen-tralized from federal and state responsibility to cities. 3.2% is the representative-ness of the results of the Tenders Unit within the total gross sales of the company.

Biddings 2011 2012 2013




4th 4th 4th

Market share of institutional sales (in value)*

1,37% 1,27% 1,14%

Eurofarma's rate at the national rank of institution-al sales

15th 16th 17th

Three main products

Polymyxin, Meropenem 1g and Tenoxicam 20mg

Polymyxin, Meropenem, Omeprazole

Polymyxin, Imatinib Mesylate and Noex 50 and 32 mcg

1. Source: IMS NON RETAIL MAT Dec/2013 - Tenders MarketNote: for pricing in Brazilian reais, abstraction is made in units and priced based on public data of tenders.


A incluir na diagramação:

*Tabela – dados faturamen-to, força de vendas, market share, entre outros.

A incluir:


BuSInESS AREAS



screen CloseGo to

EUROGLASS2013 was a year of record performance for Euroglass, Eurofarma's Business Unit responsible for manufactur-ing glass vials and flasks that are used in product pack-aging. For the first time, the unit reached the mark of 147 million units made. The increase in production, in synergy with strategic commercial and management initiatives, provided the the Unit, in 2013, R$ 8.6 millions in sales, 53% more than the year before. This result also was 15% higher than the goal set for the year.

The achievements are a reflex of a series of measures implemented over the last few years, including, for per-formance improvement, the change of strategic com-ponents and the successful plan to increase operation speed. Focusing in productivity and service improve-ment, Euroglass also enabled continuous technical support for the customers, an important advantage for maintenance and expansion of customer portfolio.

Services for Third Parties 2011 2012 2013




8th 9th 10th

Total number of labs for which it markets products

29 29 26

Two main products Glass Flasks - Type I

Euroglass

Marketed units



Fluctuation 73.3%

Sales



Fluctuation 53.1%

Productivity

2012 84,24%

2013 85,67%

Annual production

2012 126,672,762

2013 145,848,510

SERVICES FOR THIRD PARTIESEurofarma's Third Parties Services Unit focuses its op-erations in the provision of services to other national and international laboratories to manufacture drugs from different therapeutic classes and pharmaceu-tical forms, including - besides medicines - cosmetics and hygiene products. The activity, responsible for the origins of the company, has a strategic and profitable business model in its DNA , which stands since 1972. The Unit provides equipment and high-tech products, qualification and good performance for its staff and in-dustrial plants to meet customers demands.

In 2013, the Unit recorded almost R$ 30 million in sales, a 5% increase compared to 2012. The increase in vol-umes was even bigger, 19%, totaling 18.9 million units last year.

To achieve the goals, the management of the area is alert do improvement opportunities. Last year, the partner-ship between the commercial area and operations area was strengthened to unify procedures and meet cus-tomer demands very efficiently. In addition, there was an internal restructuring for teams to have more autono-my and be more prepared to find solutions to individual

client needs. In another front, the Unit also intensified prospecting for new business, which should result in increased revenue for 2014. New agreements have the potential to increase the sales of the Unit in 15%.

Services for Third Parties

Marketed units



Fluctuation 19.1%

Sales



Fluctuation 5.7%

Services for Third Parties 2011 2012 2013

Number of marketed presentations

96 99 90

Gross revenue R$ 29.3 mi R$ 27.8 mi R$ 29.3 miShare in company revenue 2,0% 1,7% 1,6%


7th 8th 9th

Total number of labs for which it markets products

23 22 20



CÓDIGO



screen CloseGo to

International Expansion

InTERnATIOnAL ExPAnSIOn



screen CloseGo to

Eurofarma believes in synergy between the Brazilian and Latin American markets, as well as in the great potential for growth in both of them. A strong regional position also accredits and giver competitive advantage to the company to formalize new agreements and in-ternational licenses. These are some reasons for which international expansion is a fundamental part of the company's strategic planning. With prominent posi-tion in the Brazilian market, Eurofarma believes that its business model and its best practices can be enjoyed

throughout Latin America, since Brazil is a country of reference in the continent both in regulatory as-

pects as product development and marketing.

In its internationalization process, Eurofarma differentiates for acquiring companies in

countries in which it still isn't present, not creating overlap and allowing the use of

staffs in 100% of cases. In charge of op-erations, the company's option is that a

local executive lead the business front. The proposal is to improve manage-ment respecting local culture, inte-grating best practices in Human Resources and the strength of Eurofarma products and financial input.

With a bold goal of covering 90% of the Latin American market until 2015, Eurofarma, in 2013, kept its activities at full speed. Among progresses of the year, is the company's arrival in Peru, through the purchase of Grupo Refasa Carrión, of family ori-gins, that holds the 27‏th place

in the regional market and regis-tered a R$12 million profit in 2012.

Created 27 years ago, the laborato-ry has its own plant and operates in

prescription, OTC and skin care segments, with strong presence in gynecology, gastroenterology and ophthal-mology. Has more than 250 employees ans its own in-dustrial plant. The Peruvian market represents 1.81% and is the country that has shown the highest growth rates in Latin America and therefore the acquisition also becomes relevant.

Also in 2013 Eurofarma arrived in Central America and the Caribbean, a strategic step in the internationaliza-tion process of the company, that was possible thanks to the purchase of Laprin lab, one of the most import-ant pharmaceutical manufacturers in Guatemala and the sixth largest company in medical prescription in the country. The company holds commercial opera-tions and registered products in five more countries in the region: Panama, Costa Rica, El Salvador, Honduras, Nicaragua and Dominican Republic.

Besides entering new markets, Eurofarma also carries on the plan to expand the records of medicines in all countries in which it operates. In 2103 alone, 69 dos-siers were submitted to various regulatory agencies and, in the same year, 48 new records were issued. Since 2009, when internationalization of the compa-ny began, more than 50 products were released in subsidiaries.

Among Eurofarma's main challenges in its internation-alization project is the integration of all operations, the propagation of its values and culture, the organization for meeting the demands of the countries and consol-idation and use of the SAP management system in in-ternational units. In 2013 the tool was implemented in Colombia and Chile.

With both recent acquisitions, Eurofarma ended 2013 covering 68.4% of the Latin American market.

International market 2012 2013Marketed units 43.237

thousand46.687 thousand

Sales R$ 148,563 thousands

R$ 235,699 thousands


36 I 37




screen CloseGo to

Mexicomarket – 17,32%

Dominican Republicmarket – 0,88%

Venezuelamarket – 11,83%

Brazilmarket – 44,14%

Paraguaymarket – 0,45%

Boliviamarket – 0,45%gross sales: R$ 2,947 thousandsRegistered medications: 12Releases: 12

uruguaymarket – 0,62%gross sales: 29.761 thousandRegistered medications 3Releases: 9

Chilemarket – 2,63%

gross sales: R$ 73,573 thousandsRegistered medications: 14

Releases: 25

Perumarket – 1,80%

gross sales: R$ 36,160 thousands

Argentinamarket – 10,86%gross sales: R$ 31,598 thousandsRegistered medication: 1

Colombiamarket – 3,97%gross sales: R$ 41,770 thousandsRegistered medications: 5

Ecuadormarket – 1,99%

the international area represented, in 2013, 68,4% of the market

and 11% of total company sales.

Central America:market – 3,05%

gross sales: R$ 19,890 thousands(includes results from Guatemala, Panama, Costa Rica,

El Salvador, Honduras, Nicaragua)





screen CloseGo to

Chile

2011 2012 2013

Total number of employees 269 302 318

Sales tasks force (number of people) 2 22 23

Number of marketed presentations 136 272 213

Gross revenue R$ 46,696 R$ 63,685 R$ 73,572,524

Unities marketed, per year 32,545 24,052 20,378,697

Market share (in medical prescriptions)1 0,07% 0,23% 0,46%

Market share (in value - US$)2 0,11% 0,11% 0,10%

Place in the prescription rank 1 63rd 35th 36th

Place in the market overall rank (US$)2 71st 2nd (2) 77th

Three main products in revenueGAAP®

Mareamin®Tambocor®

Mareamin®GAAP®

Tambocor®

Mareamin®Tambocor ®

Lagricel Ofteno ®

1. Source: Close-Up2. Source: IMS

Colombia

2012 2013

Total number of employees 110 111

Portfolio - number of SKUs 133 129

Gross Revenue R$ 31,581,000 R$ 36,342,398

Unities marketed, per year 14,617,481 16,468,198

Market share (in medical prescriptions)1 – –

Market share (in value - US$)2 – –

Place in the prescription rank 1 – –

Place in the market overall rank (US$)2 – –


Mexsana powder 160g Mexico Mexsana polvo x 85g

Mexsana polvo x 300 g Ditopax 10 tab x 50 l-n

Mexsana powder 320g Mexico Mexsana powder 320g Mexico

1. Source: Close-Up2. Source: IMS Health

Until 2013, the production was industrial-type in this country (manufacturing drugs for other companies). The establishment of a sales force itself started in April/2014, for the promotion and sale of proper medicines and resulting from licenses.

Argentina

2011 2012 2013


Sales task force (n. of people) 40 44 44

Portfolio - number of SKUs 55 61 65

Gross revenue R$ 20,705,179 R$ 26,635,604 R$ 31,598,223

Unities marketed, per year 1,878,000 1,741,862 1,880,310



Place in the prescription rank 1 50th 49th 49th

Place in the market overall rank (US$)2 61st 65th 63rd


Esomax Esomax Esomax

Urzac Urzac Urzac

Cartan Cartan Cartan


Bolivia

2011 2012 2013




Gross Revenue R$ 1,084,249 R$ 2,623,144 R$ 3,030,509

Unities marketed, per year 65,000 116,539 140,063



Place in the prescription rank 1 38th 31 31

Place in the market overall rank (US$)2 69th 49 46


Biperid Betistin Betistin

Serc Biperid Biperid

Placet Clomax Clomax


Type of BO exchange A R$ = 0.34499 RL 1 BOB


SUBSIDIARY DATA:




screen CloseGo to

uruguay

2011 2012 2013








Place in the prescription rank 1 9th 9th 8th

Place in the market overall rank (US$)2 13th 13th 11th

Three main products in revenueHepamida®,Valsacor®,Talis®

TalisValsacorHepamida

ValsacorTalisHepamida

1. Source: Close up2. Source: IMS Health

EXPORT UNITIn addition to operations in other countries, Eurofarma has a Business Unit focused on exports of medicines. In 2013, the division recorded a 30% growth in sales compared to 2012. Consequently, it was 12% above the target set for the year.

ExPORT unIT 2011 2012 2013

Sales 1.600 thousand

1.797 thousand

2.324 thousand

Last year, Eurofarma also started commercializing its products in two new markets: Dominican Republic and Vietnam. These two countries are added to the other nations for which the company provides medicines, such as Argentina, Colombia, Costa Rica, Ecuador, among others.

Performance of export unit

Main products in revenue:

1st Meropenen2nd Ceftriaxona3rd Prednisona

Guatemala

2011 2012 2013




Gross Revenue1 R$ 9,599,847 R$ 10,377,900 R$ 13,059,604




Place in the prescription rank 1 5 6 7

Place in the market overall rank (US$)2 11 16 18


Gabilep 300 mg x 30 sachetsNeumonil 1 ml x 100 flasksGabilep 400 mg x 30 sachets

Gabilep 300 mg x 30 sachetsGabilep 400 mg x 30 sachetsMetiom h pylori x 10´s

Gabilep 300 mg x 30 sachetsNeumonil 1 ml x 100 flasksMetiom h pylori x 10´s

1. Net sales excluding VATIMS & CUP MAT December

Peru

2011 2012 2013








Place in the prescription rank 1 23 25 22

Place in the market overall rank (US$)2 25 25 27

Three main products in revenueCefalogenFlumilPhytosoya

CefalogenFlumilSulconar

CefalogenSulconarTransamin

1. Source: Internal Data2. Source: IMS - PMP3. Source: Close Up


CÓDIGO



screen CloseGo to

Corporate Governance


CORPORATE GOVERnAnCE



screen CloseGo to

In 2013, Eurofarma could see the first results from the restructuring undertaken in the company's manage-ment in 2012. Although the improvements in the cor-porate governance are part of a continuous process, the last year included major milestones in this regard, like the improvement of various indexes of the com-pany operational performance (read more in chapter Operational Excellence).

In 2013, Eurofarma switched the board of Human Resources towards the level of Vice Presidency, rein-forcing the recognition of efforts from professionals who work in the company. Also created the Financial Vice Presidency, in line with the model planned in the previous year for the area of Operations. Adjustments were felt positively throughout the company and in the stated year Eurofarma resumed historical levels of growth, reaching the level of 19% in the period.

The company also completed extensive work holding meetings with different stakeholders with whom it has relationships. The activity started in 2012 as an action for strategic planning and improvement in corporate governance. The revision of the organization's plan, aiming to 2020, was a process conducted in three stag-es. In the first stage, personal interviews with the com-pany's leaders and stakeholders, seeking the alignment of information on their views on the Brazilian pharma-ceutical market, were conducted. In the second stage, discussion round tables based on the results from the intersection between internal and external informa-tion were organized. In these round tables, all of the company's leaders and representatives from areas such as Business, Innovation, Sustainability, Finance, Operations and Human Resources were gathered.

As a result of this intense work exchanging information and mapping data from all segments, including an open and frank dialogue with various players, associations, cli-ents, auditors, consultants and government, the com-pany mapped out scenarios for its various Business

units, covering the strengths, areas for improvement and the identification of opportunities and threats.

From the scenarios designed based on stages 1 and 2, the company made projections and targets involving all areas, resulting in the development of a new plan within BSC (Balanced Scorecard), management tool that aims to consolidate indicators and guidelines so that em-ployees are guided clearly. Eurofarma also established a monitoring in the development of these indicators and targets plans, which are associated with PSP (Profit Sharing Program) and, for leadership levels, bonuses. After completion of this process, which took place last year, managers began in 2014 with the implementation of new targets outlined in the BSC.

Alongside all of these actions in the sphere of corpo-rate governance, even in 2013, Eurofarma revised the company's Vision for 2020, establishing goals that the organization must achieve until that date. The revi-sion had as a reference the meetings for discussions on strategies for each of the Business Units, as well as on specific issues considered essential to sustain the targeted growth – Innovation, People, Operational Excellence, International Areas, Expansion and Growth and Sustainability.

Altogether, more than 150 employees were involved in this process, all in leadership positions, in order to en-courage debate and collective participation, and gener-ate greater engagement to the established goals.

RELATIONSHIP BETWEEN WORKERS AND GOVERNANCEEurofarma's corporate vision was structured for the first time in 2005, so that all employees have knowledge of the main strategic goals of the company by 2015 – "We will be among the three largest pharmaceutical market share in Brazil, with its own innovative products, and par-ticipating with own brands in 90% of the Latin-American market".

In 2013, the company conducted an internal campaign to share the results and progress to date, and also the challenges that must be overcome in subsequent years to meet the targets established for 2015.

BRANDING STUDYIn 2013, Eurofarma start-ed a branding study, with the assistance of an ex-ternal consultant. Among the goals of this work is to ensure the alignment of brand positioning with the business culture, vision and objectives, by increas-ing effective communication at all points of contact with the public. The process, which should be completed in 2014, seeks to rescue the essence of the company, develop and bring forth its greatest skills and create new synergies between the fields of Communication, Marketing and Human Resources to enhance the spread of val-ues in all internal communications and di-rected to external audiences.

Presidência




screen CloseGo to

ADVISORY COUNSELEstablished in 2011 with independent business leaders, the Advisory Counsel has had great prominence within the corporate governance model consolidated in 2013. Composed of five members, the Counsel has monthly meetings where they assess important actions of plan-ning and from the company's strategic areas.

CLAUDIO ROBERTO ELY

Civil Engineer with over 40 years of experience in leading large organizations. He began the career in Camargo Correa Group, where he was CEO after per-forming the duties of Head of Production in the hydro-electric plants of Itaúba (RS), Salto Santiago (PR), and Tucuruí (PA), head of Commercial department and chief

of Budget and Costs. He was director of the General Bank of Commerce, where he served as responsible di-rector for the Southern region, COO and CEO. He also was CEO of Raia Drogasil Group for 15 years (13 years as CEO of Drogasil and two years as president of Raia Drogasil). Ely was responsible for structuring the merg-er between Drogasil and Droga Raia, resulting in the current company.

DEBORAH PATRICIA WRIGHT

Graduated in Business Administration with special-ization in Marketing and Finance, she has accumulat-ed solid experience in over 25 years of activity in the consumer goods, electronic retailing and communica-tions industries. For 15 years, she served as CEO of a number of companies, such as: Kraft Suchard Foods,

EUROFARMA RS201348 I 49G4-34

Board of Directors

Chairmanship

Vice Presidency of Business

Vice Presidency of Innovation

Vice Presidency of Operations

Vice Presidency of Human Resources

Financial Vice Presidency

Board Exec. Susten. of New

Business

Mgmt. of Business Unit Services for

Third Parties

Eurofarma Argentina

Eurofarma UruguayMgmt. Exports

Euromed Chile Eurofarma Bolivia

Eurofarma Venezuela

Eurofarma Colombia

Laprin Eurofarma Eurofarma Peru

Board International

Executive

Corporate Press

Sponsorships & Events

Strategic Planning

Corporate Social Responsibility

New Business

Environmental Management

& Occupational Safety

Compliance

Mgmt. Treasury

Mgmt. Accounting

Mgmt. Tax Planning

Mgmt. Controlling

Mgmt. IT Projects

Mgmt. Legal

Mgmt. Services and Prop. Security

Mgmt. People Development

Mgmt. Compensation

& Adm. of Individuals

International HR

Mgmt. Six Sigma

Board Quality Assurance &

Control

Board Industrial Board Itapevi

and Unit II

Board Industrial Ribeirão Preto

Board PPC & Logistics

Board Supplies

Mgmt. Production

Unit 5

Mgmt. Production Euroglass

Board Business Medical

Prescription

Board Tec. Pharma. and

Portfolio

Board Innov. Techn.

Pharmaceutics

Board Regulation

Affairs

Board Mgmt. Portfolio & Licensing

Board Medical

MAGABI

Mgmt. Biotechnology

Mgmt. Projects Innovation

Board Commercial

Generics

Board Commercial

Hospital

Mgmt. of Business Unit

Oncology

Mgmt. of Business Unit

Veterinary

Structure of the Organization




screen CloseGo to

has passed by Eurofarma as corporate vice president and president of the Brazilian Association of Exempt Prescription Medicines Industry (Associação Brasileira da Indústria de Medicamentos Isentos de Prescrição – ABIMIP). He served as a councilor in the Brazilian Pharmaceutical Industry Federation (Federação Brasileira da Indústria Farmacêutica – FEBRAFARMA) and the Brazilian Association of Research Laboratories (Associação Brasileira dos Laboratórios de Pesquisa – INTERFARMA). He is currently the Executive Chairman of SINDUSFARMA (Association of Pharmaceutical Industry in the State of São Paulo (Sindicato da Indústria de Produtos Farmacêuticos no Estado de São Paulo)) and councilor in the National Health Council, represent-ing the NHC. Moreover, he is part of the Consultative Council of ANVISA and the Paulista Competitiveness Council, among others.

PLÍNIO VILLARES MUSETTI

General manager of Janos Holding and Chairman of the Board of Directors of Natura, graduated in Civil Engineering and Business Administration from Mackenzie University. From 1992 to 1999, he was CEO of Atlas Lift S.A, and at Atlas Schindler Lifts S.A until 2002. From 2002 to 2007, he was a partner at JP Morgan Partners, the private equity branch of JP Morgan Chase, leading the process of private equity investments in Brazil and Latin America. He held executive positions and on Boards of portfolio companies by JP Morgan Partners, such as Vitopel, Diagnósticos da América S.A. and Latasa. From early 2008 until September 2009, he was CEO of the of the wooden panels man-ufacturer Satipel Industrial S.A, leading the merger of this company with Duratex. In May 2010, he became managing partner of Pragma Patrimônio and later of Janos Holding. He is currently member of the Board of Directors of Raia Drogasil S.A., Adecoagro (company listed on the NYSE) and Portobello S.A.

COMMITTEESSince 2005, Eurofarma has committees composed to assist in decision-making processes. A remarkable ac-tion featured in the corporate governance is the begin-ning of the work of the Scientific Committee in 2013. This new committee is of great strategic importance, as the company aims to strongly engage in researches in the coming years. The Scientific Committee includes re-nowned experts in therapeutic areas in which the com-pany is interested in deepening the knowledge, such as Oncology, Infectious Diseases, Dermatology and Psychiatry, among others.

There is also the Executive Committee, composed of senior managers from each area of the company, who weekly meet to discuss the direction of the company and achieved results. This group is expanded with other internal leadership for the monthly meeting to discuss the economic performance of Eurofarma.

The Committee of Cultural and Sports Sponsorships operates with the goal of investing 100% of the funds from tax incentives to support cultural and sporting events, focusing on growth and consolidation of art and national sport. The participants of this Committee are representatives of specific areas that portray the inter-ests of key stakeholders, such as employees, communi-ties, physicians, and customers.

On the other hand, the Committee for Corporate Social Responsibility was one of the first to be created in the company. The evaluation of projects executed by this Committee includes adherence to the Millennium Development Goals, established in 2000 by the United Nations (UN) and the fulfillment of the mission of Eurofarma Institute. Among the group assignments are projects approvals, monitoring of performance indica-tors, improvement proposals and approval of accounts.

Other Committees in action in Eurofarma: Investment Committee, Strategic Planning Committee, Environmental Committee and the Ethics Committee.

Kibon, Tintas Coral, Parmalat Brazil, Amélia.com.br (Pão de Açúcar Group), and Ipsos Brazil. Also was corporate vice president of the Abril Group Communications. Her professional experience also extends to participation in Councils, where she served in the Graduate School

of SP, Superior Council of CONAR and Samaritan Hospital. She is currently elected councilor

of Lojas Renner S.A and Chairman of the Sustainability Committee, and actively par-

ticipates in the WCD - Women Corporate Directors.

ERNESTO POUSADA

Graduated in Mechanical Engineering with specialization

in Business Administration in the University of São Paulo, he worked for 15 years at Dow Chemical Company, in the in-ternational department. He held various executive po-sitions in Brazil, the United States and Europe. Today is Chief Operating Officer of Suzano Papel e Celulose, responsible for all indus-tries and business opera-tions areas.

NELSON MUSSOLINI

Lawyer with over 30 years of experience in the pharma-

ceutical industry, he began his career in the pharmaceutical

industry working in the legal department of Fontoura-Wyeth

S.A. In Ciba-Geigy Química, he was responsible for the legal de-

partment of Pharmaceutical and Agricultural Divisions, as well as advis-

ing the Financial board and the Human Resources board. Before CADE, he man-

aged the merger that gave rise to Novartis Brazil and was elected statutory officer. He





screen CloseGo to


Vice Presidency of InnovationAbove, from left to right: Laura Rodrigues Pinheiro, Physician Director; Emilio Neto, Director of Portfolio & Licensing Management; Martha Novelli de Oliveira Penna, Vice President of Innovation. Below, from left to right: Rafael Eliseo Barrientos Astigarraga, Director of Pharmaceutical Portfolio Technology; Annett Aparecida Gonçalves Pereira, Director of Regulation Affairs; and Juliane Dias Piotto Juabre, Director of Innovation and Pharmaceutical Technology.

Vice Presidency of BusinessLeft to right: Fernando Cândido Gonçalves Nunes, Hospital Commercial Director; Jorge Alberto Alves de Sá, Commercial Director of Unit of Generic Brands; Roberta Junqueira Nóbrega, Commercial Director of Unit Medical Prescription; and Julio Cesar Gagliardi, Commercial Vice President.

mailto:[email protected]




screen CloseGo to


Vice Presidency of OperationsLeft to right: Valério Machado da Silva, Director of PPC & Logistics; Rosalba Pantoja Ramos, Director of Quality Control & Assurance; Fabio Bussinger da Silva, Vice President of Operations; Wagner Coelho, Supplies Director; and Tacyana Mazziotti Salomão, Industrial Director of Itapevi and Unit II.

Board of DirectorsAbove, from left to right: Mikiko Shoji Inoue, Vice President of Human Resources; Luis Felipe Schiriak, Financial Vice President.

Below, from left to right: Wesley Marucci Pontes, International CEO; Maria del Pilar Muñoz Semitel, CEO of Sustainability & New Business; and Maurizio Billi, Eurofarma's President.




screen CloseGo to

CODE OF ETHICS STANDARDS

Our employees are required to relate to the representatives of public institutions in a transparent manner, and reference is always to the moral principles of the Code.

We excel compliance with established laws, rules and legislations, as well as support the Governmental Bodies in the exercise of their functions, aimed at the development, welfare and competitiveness of a fair and free market.

Eurofarma does not perform or condone actions that may affect, through adjustments, combinations or any other expedients, the com-petitive nature of bidding.

We do not allow any form of favoritism or privilege to public officials be-cause of their function, always emphasizing the ethical issues involving the Organization and the Government, in all regards.

Aligned with our organizational values , we are adhering to all anti-cor-ruption laws, existing both locally and in countries where we have operations or maintain business relations.

OMBUDSMAN

The independent Ombudsman Channel set by the com-

pany gad its first year of operation in 2013. The service

is done by professionals qualified to answer occurrenc-

es confidentially, and is available for reports of suspect-

ed diversion contrary to the principles described in the

company's Code of Ethics and conduct. Reports might

regard employees, suppliers, customers and partners.

RELATIONSHIP WITH THE GOVERNMENTAs a way to rigorously exercise the standards of its Code of Ethics and Conduct, the company undertook in 2013 a training with leaders and employees about the new Anti-Corruption Act (Law No. 12.846 of August 1, 2013), which entered into force on 29 January 2014, involving more than 500 employees. The relationship between Eurofarma and the public sector is governed by principles of transparency and ethics, with respect for the law.

Eurofarma's Unit of Bidding Contests promoted for the first time, in 2013, a meeting with dealers autho-rized to participate in the bidding process, by offering the company's medicines, whereas the Introduction to Compliance Eurofarma and also approaches to the new anti-corruption legislation were presented. The ob-jective was to strengthen the ethical and firm way in which the company operates in the public procurement market.

STANDARDS AND ETHICSThe Committee and the Board of Ethics had their first year of operation in 2013, after the Ombudsman and the Compliance area had been created in the previous

year, aiming to support the most complex discussions related to this topic.

In the period, the revisions to the Code of Ethics were completed as well, setting the company's standard of conduct.

The new Eurofarma's Code of Ethics and Conduct pres-ents guidelines that govern all the daily actions of the company in order to cultivate a healthy environment where prevails the valuation of the employee and their personal development, loyalty, encouraging innovation, respect for the laws and the pursuit of excellence in service to all stakeholders with which the company re-lates. As part of the integration process of international subsidiaries, the new Code has been implemented in the countries where the company has operations.

Eurofarma believes that the company's practices, aligned with the best ethical principles, give confidence and support to its good image and reputation. What engages employees, business partners, customers, media, regulatory agencies, government and society in general is vital to the durability of the business, which operates in a highly regulated and increasingly de-manding market, dynamic and attentive to the practices of companies.

Eurofarma's Code of Ethics and Conduct is available in the website www.eurofarma.com.br.

Corruption cases and actions

Number of training courses conducted on Law No. 12.846 in 2013 8 training courses

Number of employees trained in Law – total number and percent-age, and, if possible, by job category and region

Addressed to positions of leadership, the training courses were offered for Managers, Supervisors and Coordinators of the company, in addition to trading partners (Dealers from the Area of Bidding). There were 504 people from a total set of 534, which corresponds to 94%, and 8 repre-sentatives from dealers, corresponding to 100% of the targeted audience

Number of confirmed corruption cases and their nature 3 cases (2 of conflict of interest + 1 theft of drugs)

Number of cases of employees dismissed for corruption 10 people (9 for conflict of interest and 1 for theft of drugs)

Number of cases of termination of commercial contracts due to violations related to corruption 4 suppliers

EUROFARMA RS201356 I 57G4-56

G4SO-5

number of calls in 2013: 252

number of cases solved in 2013:210 (the difference is due to 42 inappropriate records in the channel)

Eurofarma Ombudsmanwww.contatoseguro.com.br

http://www.eurofarma.com.br

http://www.contatoseguro.com.br


ExcElência OpEraciOnalCÓDIGO



screen CloseGo to

Operational ExcellenceConsistent growth with hard, serious work

OPERATIOnAL ExCELLEnCE



screen CloseGo to

applied to the company in 2013 also allowed the av-erage cost per produced unit to be the same of 2012, even in an economic setting characterized by the ris-ing inflation which had accumulated increase of 5.1% according to the IPCA (National Price Index to the Consumer) and by exchange variation, with dollar re-cording a rise of 15.4% last year.

Employee valuation by the company, with focus on meritocracy and a corporate governance focused on establishing greater integration and involve-ment to achieve the bold goals for growth, can be measured by grip and indexes of organizational climate survey. Although traditional in the company, this survey has undergone positive changes in 2013 with the hiring of Hay Group consultants, which helped improve methodology, providing technical support to the process. For the first time, the evaluation ques-tionnaire could also be answered digitally, by sending a link and an individual password. New ques-tions were added to the survey and this, and other innovations led to the record involvement of 82% employees in the survey. Of these, over 90% said they were satisfied with the company.

The persistence in the best man-agement practices also ensured, for the 10th consecutive year, the Eurofarma's permanence the group of the best companies to work for in Brazil by Guia Você S/A Exame 2013.

The positive reflexes of management restructuring per-formed by Eurofarma in 2012, aiming improvement of corporate governance, could be observed in all the ac-tivities of the company over 2013. In particular, in as-pects regarding operational performance and devel-opment of human capital in the company, the strongest impact was in efficiency improvement. In 2012 the op-erational area recorded a high average percentage of unmet business demand. In 2013 this average dropped, getting at only 2% and approaching the company of the best rates in the market, which represents a substantial improvement of the external service level.

Operational governance tries to deliver the best service for internal and external clients, and, in 2013, consol-idated a model of shared goals, identifying objectively which are the main relevant topics in the operational segment for the company business and, also, the use of clear indicators to attain excellence in service, mon-itoring the achievement of goals in a routine and disci-plined way.

An example of this vision directed towards efficiency was the focus placed on supply strategies and planning, as a whole, of operations, since information manage-ment of long-term demand, through the production plan, preventive maintenance, management and train-ing of staff to support all progresses.

In short, there are three major pillars of the corporate governance strategy focused on operational excellence - strict planning of actions that must be performed, the execution of what was planned with the highest pos-sible productivity and results measurement, wheth-er operational or financial, focused on continuous improvement.

In 2013 the Operations segment got a vice-presidency to lead Eurofarma's complex and diverse operations, that, in addition to operate in all main pharmaceuti-cal segments, counts with many factories in Brazil and

various countries in Latin America and responds for the supplying of products to Brazil, affiliates, subsidiaries and third parties.

Having internationalization as one of its main strategic goals, last year Eurofarma gave special attention to the process of industrial intelligence that has been con-ducted with the challenge of integrating national and international operations. Understanding the specific needs of each market and fitting them into the corpo-rate governance model, with flexibility to embrace each country's particularity and provide the best service at the most competitive cost of each product is the com-mitment of all teams.

Maximize Eurofarma's asset values, not only physical assets, but, essentially, intellectual capital present in all domestic and international operations, is the compa-ny's focus in the coming years.

COMPETENCE AND PERFORMANCEThe systematization of the integrated view of opera-tional processes showed good results in 2013. The sys-tem allowed employees swiftness and assertiveness to make decisions based on the best results for the entire organization, not only in order to care for some areas and individual interests.

Maintain the stability of the supply chain from transac-tions with suppliers of raw materials to the release of product for sale, is a strong commitment in the area of Operations. In order to ensure the fulfillment of this goal, managers established control points in the operations chain to increase productive efficiency in various fronts.

The OEE (Overall Equipment Effectiveness) indicator used by the company to measure the industrial performance of Itapevi Complex pointed, in 2013, a 21% increase in productivity average, a significant progress facing the complexity of Eurofarma's operations. Improvements




screen CloseGo to

OperatiOnal excellence58 EUROFARMA RS201362 I 63G4-10

G4-LA12

G4-11

relatiOnSHip WitH KeY pUBlicIn 2013, Eurofarma intensified relationships with its stakeholders, organizations or people who may be im-pacted by the activities of the company as employees, medical community, consumers, suppliers, govern-ment, associations, media, capital providers and the communities in which the company operates.

Communications established during the year assisted in the review of the company's Vision 2020 as well as the identification of themes that are relevant for all stake-holders. The Sustainability Report 2013 Eurofarma is one of the tools to respond to issues of transparency of its in-terested stakeholders as shown in the materiality matrix.

internal pUBlic

In 2013, the Human Resources area was elevated to vice president, reinforcing the importance of manag-ing all the human capital for the company. Last year, Eurofarma also increased the number of shares to pre-pare future leaders of the company as from the devel-opment of their professional skills. The first step was the completion of the mapping of the entire group of managers Vice President of Operations (managers, su-pervisors and area leaders) through the use of an as-sessment tool. The process involved 90 professional of Industrial and Quality Assurance boards and enabled the construction of individual development plans, in-depth feedback and directing actions of training.

Besides the leaders, throughout the year, also sever-al programs for the development and training of staff, training about 1,200 people in the operational area were performed. With a workload of 30 hours, and the involvement of 55 professionals, leaders of production, for example, participated in customized training, which addressed topics such as feedback, self-awareness and communication skills.

The other company managers (managers, supervisors, coordinators) audience of about 260 people underwent training totaling 24 hours over the year, involving such diverse topics as the use of the Nine Box tool to identify high performers .

The model of practical training, development and cor-porate education established by Eurofarma aims to support the most employees to keep them updated, fully taking advantage of their skills and expertise.

One objective of Human Resources is to integrate and standardize the practices and policies of the company in all Units Eurofarma in Brazil and also in international subsidiaries. Among the highlights of 2013 is the imple-mentation of new benefits plan in Ribeirão Preto, in the interior, such as providing scholarships and language courses , nursery, change and renewal of the restau-rant, start of family visits program and training in the Unit. Internationally, all employees of subsidiaries par-ticipated in the climate survey in 2013.

Profile of internal public-Brazil

Effectives (CLT - by law)* 4,560

Internal trainee 32

Expatriates* 1

Temporary 8

Grand Total 4,601

* Employees contemplated in an agreement, which represent 99% of the staff.

Training hours / year

Places with internal task

force (internal recruitment

and promotions)

Turn-overDistributed

PPR (in thousands)

97,088 (or 23,5 hours/men) 533 places 2.45 67.501

Expenditures with HR 2011 2012 2013

Values in r$ (thousand)

Salaries 251,774 236,169 211,123

Bonuses 97 123 199

13rd Salary 28,700 27,252 24,571

Vacations 35,260 41,367 32,426

Indemnities and advance notices 7,258 6,608 3,131

Commissions to employees - - -

Rewards to employees 67,959 62,798 56,648

Profit Sharing 61,598 58,828 46,484

Compulsory bonuses 1,524 975 769

Illness Aid 301 399 162

Health RiskPremium 151 73 685

Remuneration of Maternity leave Law nr. 11.770

632 486 696

UnionDues 1321.85394 1149.51083 1174.65737

456,575 436,226 378,068

Distribution of Employees by Work Category1

2011 2012 2013

Administrative 966 739 767

Directors 14 18 23

Trainees 44 40 32

Sales task force 1,855 1,747 1,768

Management 330 333 351

Production 1,154 1,496 1,442

Supervisor / Coordinator 137 137 155

Technician 51 50 63

Total 4,551 4,560 4,601

1. Also includes Interns and Temporaries. It excludes Apprentices and Third Part (respectively, 49 and 388 in 2912).

Distribution of Employees per Region

2011 2012 2013

Central West 93 141 131

Northeastern 341 387 355

North 40 103 90

Southwest 3,564 3,621 3,699

South 325 357 326

Total 4,363 4,609 4,601

1. It is only considered the CLT employees, temporaries, apprentices and interns.

region and gender

Female Male Grand Total

Central West 13 118 131

Northeastern 51 304 355

North 12 78 3,699

Southwest 1,408 2,291 326

South 38 288 4,601

Grand Total 1,522 3,079

Operational Excellence58

next page

previous page print Full

screen closeGo to

cover Summary Gri index Search Zoom+ Zoom-

OperatiOnal excellence58 EUROFARMA RS201364 I 65

Number of Employees at Subsidiaries

2011 2012 2013

Eurofarma Argentina 94 97 99

Eurofarma Bolivia 16 21 22

Eurofarma Chile 269 302 325

Eurofarma Colombia - 110 121

Eurofarma Guatemala 232 252 273

Eurofarma Peru 278 272 232

Eurofarma Uruguay 174 167 175

Eurofarma Venezuela - 1 1

Total 553 698 727

Distribution of Employees by Work Category1

EurofarmaArgentina

EurofarmaBolivia

EuromedChile

EurofarmaColombia

EurofarmaGuatemala and

CA

EurofarmaPeru

EurofarmaUruguay

Total

Administrative 11 5 39 8 35 28 27 153

Leaders /Coordination 7 3 26 24 10 16 14 100

Directors 2 0 0 1 8 2 0 13

Sales task force 41 13 36 0 85 55 30 260

Management 7 1 9 6 17 11 6 57

Production 10 0 173 64 84 83 60 474

Technical / Supervision 21 0 42 18 34 37 38 190

Total 99 22 325 121 273 232 175 1,247

1. It doesn't include Eurofarma Venezuela, where there is only one administrative employee.

Transparency in communication

In addition to internal communications published daily on various subjects, through electronic media and panels distributed at strategic points in the Units, Eurofarma invests in a bilingual monthly publication, Panorama Magazine, distributed to employees throughout Brazil and subsidiaries in Latin America, with updated information about the business strategies of the company, to contribute to the development of corporate culture and keep everyone informed about the objectives, achievements and challenges of the organization.

Divison of Eurofarma Brasil employees by Age, by Category1

2011 2012 2013

Under30 years

old

Between 30 and

50 years old

above50 years

old

Under30 years

old

Between 30 and

50 years old

above50 years

old

Under30 years

old

Between 30 and

50 years old

above50 years

old

administrative 26,15% 15,76% 23,73% 27,66% 12,82% 9,68% 30% 13% 10%Directors 0% 0,20% 3,39% 0% 0,31% 2,87% 0% 0% 3%trainees 3,95% 0% 0% 3,64% 0% 0% 3% 0% 0%Sales task force 38,72% 45,52% 22,03% 30,48% 42,39% 22,58% 31% 42% 23%Manager 1,17% 9,52% 12,71% 1,18% 9,05% 11,47% 1% 9% 11%Operational 26,33% 24,32% 35,59% 33,48% 31,08% 49,82% 31% 30% 47%Supervisor/coordinator 2,07% 3,62% 2,12% 1,82% 3,39% 3,23% 2% 4% 5%

technician 1,62% 1,06% 0,42% 1,73% 0,94% 0,36% 2% 1% 1%total 1,113 3,014 236 1,099 3,182 279 1,005 3,276 320

1. Also includes Interns and Temporaries

Employees by Gender, Work Category1

Administrative Supervisor/Coord Directors Trainees Management Production Technician Sales

Task force Total

Female 10,08% 1,74% 0,20% 0,46% 1,26% 12,82% 0,35% 6,17% 33,08%Male 6,59% 1,63% 0,30% 0,24% 6,37% 18,52% 1,02% 32,25% 66,92%

16,67% 3,37% 0,50% 0,70% 7,63% 31,34% 1,37% 38,43% 100,00%

1. Also includes Interns and Temporaries

Distribution of Employees by Race and Work Category2011

Yellow White Brown Black totalAdministrative 18 645 130 27 820Directors 3 13 0 0 16Trainees 3 36 4 1 44Task Force 3 1,719 114 19 1,855Management 1 323 4 2 330Production 4 649 317 140 1,110Supervisor / Coordinator 2 121 10 4 137Technician 0 30 15 6 51

2012Yellow White Brown Black total

Administrative 14 598 105 16 733Directors 1 17 0 0 18Trainees 0 34 4 1 39Sales task force 3 1,635 94 14 1,746Management 1 321 9 1 332Production 5 882 397 185 1,469Supervisor / Coordinator 2 120 11 4 137Technician 0 34 11 5 50

2013Yellow White Brown Black total

Administrative 14 634 95 18 767Directors 1 21 0 1 23Trainees 0 27 2 2 32Sales task force 2 1,659 92 14 1768Management 1 335 12 1 351Production 5 864 366 184 1,442Supervisor / Coordinator 2 135 14 4 155Technician 0 45 8 10 63

1. Also includes Interns and Temporaries. Excludes Apprentices (48),Third Part (407) Indians (2) and employees whose race was not reported (31).

G4-LA12



screen CloseGo to

OperatiOnal excellence58

VOlUntarieSIn addition to the social actions under the manage-ment Eurofarma Institute, a social responsibility policy also encourages the company, with financial support, the involvement of its employees in proj-ects of citizenship, whether in philanthropic institu-tions, entities or non-governmental organizations. The volunteer employees enter their projects in the Program and the Social Responsibility Committee of the Company, together with an independent member of the Volunteer Center of São Paulo, select which pro-gram will be supported. Within the program there is the "Volunteers Jobs" project, in which the company's employees share their professional experiences with students of Eurofarma Institute.

Projects supported by Eurofarma in 2013

Company / Unit Organization City / State Initiative Public served Project Investment

Momenta Rescue Operation Brazil Patos - PB Seated for Education Approximately, 250 children per month.

It offers different modalities of activities such as: music, sports, computers, recreation, tutoring, and medical, dental and legal services for families.

With the investment it is expected to improve the degree of children's learning by offering more comfort in classrooms.

Purchase of 60 school desks to equip five classrooms.

Campo Belo Associação Bênção de Paz São Paulo - SP Projeto José de Anchieta Around 330 children and teenag-ers per month.

It offers school and extracurricular activities such as music lessons, which already include a choir and guitar lessons.

With the investment is expected to improve the performance of the partici-pants, promoting a welcoming environment for development and learning.

Purchase of 10 guitars to music class.

FarmaABRACCE - Associação Brasileira de Combate ao Câncer Pedro Correa

Belo Horizonte - MG ABRACCE: expanding the host for even more hopes!

150 patients with cancer of all ages per month.

The institution offers human, financial and material support for patients and caregivers during treatment.

With the investment is expected to expand public access to information on cancer prevention and treatment, perform more registration of patients for future socioeconomic assessments and enlarge the volume of donations received.

Manufacture of explanatory materials and purchasing of notebook, pro-jector, projection screen, tent and tables.

Momenta Clube Atlético Alvinegro São Paulo - SP Gol de Placa - Craque de Bola, Craque na Escola

Approximately 200 children and young people of 6-15 years of Camilópolis, Santa Terezinha, Jardim Santo Antônio, Parque das Nações, Utinga, Vila Metalúrgica.

Offers sports and leisure to children attended. Also promotes monitoring of school performance and the oral health of young people.

With the investment is expected to promote the construction of citizenship, social inclusion and improving the quality of life of participants.

Purchase of sports equipment (shirts, socks, shorts, balls, net, cones, ropes), snacks and beverages.

Campo Belo Baptist Church Bom Pastor São Paulo - SP Ballet Course Around 100 children and teenag-ers per month.

Offers guitar lessons for young and keyboard and computer course for se-niors. Promotes lectures on various topics and exhibit of educational films.

With the investment is expected to promote dance lessons for beginners seeking to develop their relationship in society and teamwork, among other values .

Remodeling of the floor, placement of mirrors and steel bars on the walls and purchase of clothes, sneakers, socks for the girls.

Baptist Church Bom Pastor Ribeirão Preto – SP Movimento do BemAround 900 adults and young people (as from 13 years old) per month.

Offers computer courses for young people aged 13 years and professional in the beauty industry, for people aged 18 years or more.

With the investment is expected to prepare professionals best qualified for the work market, thereby promoting income generation.

Purchase of equipment and materials to be used in the courses.

EUROFARMA RS201366 I 67G4-SO1



screen CloseGo to

Academia – The units of Campo Belo and Itapevi have a free space for physical activities within de compa-ny. The gym is monitored full time by professionals. Other branches have partnerships with gyms in the proximities, and the employees can make use of it with no payment needed. In both cases, the com-pany requests that the employee who uses the benefit contribute to a "solidarity fee", donating one kilo of non-perishable food. Food is passed by Eurofarma to social organizations.

Snack time with balanced food to pregnant womens - Every pregnant woman can enjoy two periods (morning and afternoon) for a quick meal with nutritious snacks and balanced

Ultrasound machine + gynecologist physician - Various types of ultrasound examinations and diagnosis of other diseases can be performed in outpatient clinics of the company, which also has a gynecologist for attendance of the women and to perform exams.

Funeral Aid - Benefit offered at no charge to all employees as well as their legal dependents:

spouse and children up to 21 years or 24 years if they are students.

Dental care - Eurofarma provides a dental care plan and an external service provider network for employ-

ees and dependents. Also has offices on their premises for domestic service to employees.

Pharmacy benefit - All Eurofarma employees and their de-pendents contained in the health care plan can purchase

drugs from other laboratories with discount. For Eurofarma medicines, allowance is 100%.

Scholarship - The company gives its staff allowances ranging from 40% to 80% of the value to undergraduate postgraduate

technical, or MBA courses.

Language Learning Aid -To support the internationalization process of the company and contribute to the development of employees, Eurofarma

provides grants for language courses within the company, in partnership with Berlitz school or educational institution chosen by the employee. The allowance

for languages is 60%.


G4-LA2G4-LA12

RESPECT FOR DIVERSITY

The composition of the Executive Committee of Eurofarma is divided equally between men and women. Gender equality is one of the values of the organization and, in practice, there is a good balance in positions of high leadership, vice presidents and directors, and also in middle managers. Currently, two women and three men are in the group of vice presidents and about 50% of management positions in the company are held by women.

The company has a program of inclusion of people with disabilities. In 2013, the Prescription Unit has devel-oped the Sales Representative Assistant project aimed to increase access for people with disability to the func-tion of company's representative. At year end of 2013, Eurofarma had 175 people with disabilities in its work-force. Since 2008, the company offered to homosexual employees the possibility of inclusion of his partner in the health care plan, nationwide. In practice, these are some examples of the application of the company to respect diversity in all spheres.

BENEFITS

Eurofarma performs constant effort to provide differ-entiated benefits that result in better quality of life for its employees. There are many special programs for the female audience, which represents about 50% of the workforce of the company. The maternity leave of six months, for example, is offered in the company since 2007, long before it was required by law. Eurofarma also provides day care unit in Campo Belo, São Paulo, at Complexo Industrial de Itapevi and at the plant of Ribeirão Preto, São Paulo State, to care for the children of the employees.

Within the integration of subsidiaries models and to replicate models of governance and human resource practices in the coming years the human resource pol-icies and benefits model will be improved in interna-tional operations. Within this concept, many operations already have flexible hours, medical care, language learning aid, among others. In Bolivia, for example, Eurofarma is one of a few companies in the country to offer health insurance to employees.

BENEFITS TO THE EMPLOYEES• Gym• Snack time with balanced food (pregnant women)• Ultrasound equipment + gynecologist (Itapevi Unit)• Funeral Aid• Dental Care• Pharmacy Benefit• Food Basket Benefit• Partnerships• Daycare• Consigned Loans• Pregnant Women Meetings• Parking lot• Flexible Work time• Sabor & Saúde Nutrition Program• Program for Diabetics• Health Care Program• Private Welfare• Proafa (Care Program for Employees Suspended due

to Disease or Accident at Work)• Breastfeeding Supporting Program• Maternal Love Program• New Life, Life Anew Program• Hand in Hand with school• Restaurant• Leave early on Fridays• Game room (Itapevi Unit)• Beauty Salon• Life Insurance• Pilates (Unit II and Itapevi)• Physiotherapy (Unit Itapevi)• Ecumenical Space (Unit Itapevi)



screen CloseGo to


Breastfeeding Supporting Program - The female Eurofarma employees and the third parties are offered a room to support breastfeeding, in units Itapevi and Campo Belo. On site, plus breastfeeding, mothers can also collect breast milk and store it. The techniques are safe and allow mothers to take home the milk collected if the child is not enrolled in daycare.

Maternal Love Program - With the participation of spe-cialized professionals such as speech therapist, a pedi-atrician and a therapist to work the mother-baby bond and emotional aspects such as breastfeeding and its difficulties, speech problems with the use of pacifiers and bottles, among others.

New Life, Life anew Program – In the first week after the baby's birth, and if so desired, the employee may ask the daycare home visit to receive guidelines for the care of the newborn. This visit is made by our nurse technicians, available at the emergency rooms in every branch.

Restaurant –Eurofarma offers an indoor restaurant on each of its units, serving breakfast, lunch, dinner and supper.

Reading and Game Room – These sites are made avail-able for employees may have intervals of leisure during the hours of lunch and dinner.

Beauty Center – To value women and their self-es-teem, Eurofarma adopted salons in units Campo Belo and Itapevi with services such as manicures, waxing and hair salon, offering convenience and affordable prices to employees. The company offers a coverage of 70% over the total value and discounts are made automat-ically in the paycheck. The other units have an agree-ment in near stores with the same benefits.

Pilates –Eurofarma has an equipped room for the practice of the therapy, used for postural correction, development of balance, muscle strengthening, among other health benefits.

Physiotherapy - Eurofarma has a fitted prevention and rehabilitation of musculoskeletal and joint disorders room and postural reeducation (muscles, tendons, etc.).

Consigned loans – By special agreement, employees may request personal loan from a bank with interest rates below market. Payments can be done in up to 36 times, with automatic paycheck discount.

Pregnant Women Meetings – Target to pregnant wom-en, employees and wives of employees, the company annually conducts the meeting with the participation of health professionals, such as pediatricians, obstetri-cians, therapist, nutritionist, dentists and pedagogues to bring relevant information about pregnancy, breast-feeding, childbirth and first aid (pediatrics), helping during this period of change. The program is extended to outside people.

Flexible Work Hour – Eurofarma adopts the system of flexible time in administrative areas where employ-ee chooses its time of entry, between 7am and 9am, to comply with the eight and a half hours of work Monday to Thursday. On Fridays, workload has only 6 hours and entrance time is also variable. The benefit covers 677 employees of Eurofarma.

Nutrition Sabor & Saúde - The program is developed through nutritional consultations, focusing on nutrition-al education and monitoring of certain disorders that may be related to food, such as diabetes, high blood pressure, gastritis, hypercholesterolemia, obesity and allergies. It also involves monitoring for athletes and pregnant women.

Diabetic people - The program seeks to ensure employ-ees with diabetes have healthy meals, with food edu-cation at two intervals during the day, with balanced menu.

Health Plan - The health plan offered by Eurofarma has national coverage and is extended to dependents (spouse, children up to 21 years or 24 years if they are students), as well as same-sex partners.

Private welfare - All employees are allowed to this ben-efit, that has 100% coverage until posts which include supervisors. Other levels have a coverage of 70%.

Proafa - Program that monitors the health of employ-ees in an absence of disease or medical leave work ac-cident, through home visits.




screen CloseGo to


GOVERNMENT The guidelines of the company's relationship with the government is guided by ethics and by transparency, commitment to the country's development and the growth of national defense industry, aiming to provide greater access of the population to medicines of quali-ty. Read more about the Eurofarma relationship policy with the government at chapter focused on Corporate Governance.

Eurofarma relates directly to individual claims and deal-ings of everyday life and, through associations and pro-fessional associations in collective claims. Among the major Eurofarma institutions of relationship are associ-ations and government agencies.

• aBiFina (Brazilian association of industries of Fine chemicals, Biotechnology and its Specialties)

• anMat (national administration of Drugs, Food and Medical technology)

• anViSa (national Sanitary Surveillance agency)

• ceteSB

• liMpUrB (Department of Urban cleaning)

• eMa (European Medicines Agency)

• Grupo Farma Brasil

• instituto ethos de empresas e responsabilidade Social

• Mapa (Ministry of agriculture, livestock and Food Supply)

• Ministério da Saúde

• itapevi city Hall (including secretariat)

• São paulo city Hall (including secretariat)

• pro Generic

• SinDUSFarMa (association of the pharmaceutical industry in the State of São paulo)


G4-16G4-12 G4-EN1

CLIENTS

Eurofarma adopts a transparent trade policy in order to promote honest and healthy competition. This initia-tive is aligned with the company's values and its mission of increasing the population's access to medicines at fair prices. When not practicing aggressive promotions to maintain higher inventory in customers, Eurofarma helps customers to maintain one balanced operation, suitable for demand generation, with a policy of intelli-gent inventory and nurturing a sustainable relationship in the entire production chain.

external aUDience

SUPPLIERS Eurofarma is considered among the market it serves as a major consumer of materials, goods and services, reaching levels close to US$ 800 million in annual vol-ume of purchases. Trade relationships maintained with the supplier market is guided by respect and ethics, disseminating the values of respect for the socio-eco-nomic environment.

The company conducts business globally, with many differ-ent nationalities and cultures, tailoring strategic and win-ning partnerships. The service providers assume in writing and before the current law non-recruitment of child labor and analogous to slavery. These clauses are standard and accompany all contracts for services Eurofarma.

Regarding the standard of quality, suppliers of raw ma-terials, ingredients and packaging are systematically au-dited by the Quality:

• audits carried out in 2013: 110• Suppliers qualified in 2013: 107• Suppliers that lost qualification: 3

To align the company’s practices with commercial part-ners, Eurofarma created in 2011, the Code of Conduct for Suppliers. In 2013, the company established a mul-tidisciplinary team of professionals in the areas of social responsibility and purchasing to conduct reviews with suppliers, through a questionnaire, to continuously dis-seminate good management practices adopted by the

company and reinforce topics that are relevant in cor-porate day to day.

In 2013, we initiated a project risk management, which aims to reorganize the entire portfolio of supply of raw materials, with a focus on increasing sources of supply options, mitigating the risks of supply. There was also that year a change in the level of the Supply process, turning into a focused Board in that area, which was in-serted into the Supply Chain process until that moment. This measure reflects how important and strategical is the Purchasing theme, one of Eurofarma interfaces with the external environment and the stakeholders.

That same year, began the organization of regional purchasing under the same parameters of policies and compliance, identifying synergies and consecutive cost reductions in centralized trade agreements for eight countries in Latin America.

Package consumption in units (in million units)

2013

Tubes 24.2

Leaflet 186.0

Box 6.1

Packaging 169.1

Bottle 33.7

Label 160.3

Lid 185.3

Consumption of aluminum packaging (in tons)

2013 254.7

Eurofarma Suppliers National International

actives (with purchasing movement in the last year) 3,364 186

productive actives (raw materials appearing in technical lists) 197 156

Grand Total 3,561 342

% of expenditures with local and foreign suppliers Direct Indirect / Services

local 36,97% 89,40%

import 63,03% 10,60%

Grand Total 100,00% 100,00%

Input Consumption (in millions of R$) National International

2013 52.3 345.9



screen CloseGo to


on Project LIMS (Laboratory Information Management System), a system developed for the pharmaceutical in-dustry to carry out the information management with greater control and view of the data. Eurofarma med-icines are produced under strict quality control and sustainable practices. The work is oriented so that the company can always offer a broad portfolio of quality products at fair prices.

Production –The operational area of Eurofarma fol-lows the strictest standards of good manufacturing practices for the finished product, and daily work on continuous improvement to raise the level of services and meet the goals of the company, specially those re-lated to productivity, quality and costs.

Quality Control - Each batch of product originated in production is further analyzed by the control team to check the conformity compared to the registered spec-ifications. At this stage, the area issues an analytical cer-tificate per batch.

Quality Assurance - A staff team works to assure the internal processes be respected and they are following the rules of the law in force. At this stage, the level of demands is raised to guarantee the safety of the prod-ucts. Quality Assurance technically responds by releas-ing each product for trading.

Pharmacosurveillance – The drug surveillance is rou-tine in the pharmaceutical industry, since, even after completion of clinical studies that prove the safety of drugs, there may be reports of adverse reactions in the trading period. The Medical Area develops a series of activities, including data collection and monitoring and assessing the notifications, to ensure compliance of the law in force. The mission of the Pharmacosurveillance area is to manage the risks of the medicines from the reports of adverse events. Thesecan contribute to the improvement of a product or even the discovery of new indications.

The Pharmacosurveillance team of Eurofarma com-prises pharmacistis and the Call Center is the main channel of information to the Pharmacosurveillance area through the transfer of spontaneous reports of adverse reactions, administration errors, use during pregnancy or suspicion of therapeutic ineffectiveness. From the collection of the data, starts the process of assessing the notified event. Pharmacosurveillance acts in line with Health Surveillance. All employees who participate directly or indirectly collecting a notifica-tion of an adverse event receive specific training which demonstrates the respect and transparency Eurofarma has with their clients, whether health professionals or consumers.

call centerThe Call Center Eurofarma is a communication channel open for consumers, trade customers and healthcare professionals across the country. Once a year, the com-pany conducts a satisfaction survey to evaluate the level of service and identify opportunities for improvement. In 2013, the results showed an average Eurofarma cus-tomer satisfaction of 91%. The survey had a sample of one thousand clients, of which 702 answered effectively punctuating the degree of satisfaction with the ease of contact, care and deadlines for response and / or res-olution of the occurrence. Since 2004, when the adop-tion of survey has began, the percentage of satisfaction exceeds 90%.

Created in 1996, Central informs on a daily basis the collected data to the Executive Committee of the com-pany for the development of action plans to correct imperfections and point improvement opportunities. In 2013, the area had 16,908 contacts per month.

CAE Performance 2011 2012 2013

Average waiting time (seconds) 4 4 4

Given-up Call (percentage) 2 3 3

Average monthly contacts by 0800 telephone 10,812 10,184 11,329

Average monthly contacts by e-mail or chat 4,894 4,724 5,579

Average total contacts (including contacts not generating new events)

15,706 14,908 16,908

SaFetY anD QUalitY cOntrOlIn addition to a requirement for regulating the market, the quality of the production processes is an ongoing concern Eurofarma, who is always looking for new tech-nologies that can improve the production of their prod-ucts and increase their service levels.

The SAP system (platform technology management) of the company ensures traceability and information safety of the production process, according to the resolution of the National Health Surveillance Agency (RDC No. 17/2010). The system Electronic Document Management (GED) completed one year of operation in 2013, strengthening the Good Manufacturing Practices, Treatment of Deviations and Control of Changes, rele-vant to the quality management aspects. 22.2% of the products are assessed for health and safety.

The company also follows the standard 21 CFR Part 11, legislation enacted by the Food and Drug Administration (FDA) - the U.S. regulator - which regulates the use of electronic records and signatures in the pharmaceu-tical sector, at all stages of production, ensuring the inviolability of the data stored. Teams of Quality and Information Technology Eurofarma work, since 2008,

EUROFARMA RS201374 I 75G4-PR1

G4-PR5

CALL CENTEREUROFARMA BRAZIL-7043876



screen CloseGo to


certiFicatiOnS Always focused on the highest level of excel-lence, Eurofarma made efforts to adapt all its operations in Brazil and Latin America to the standards of the United States and Europe. The Itapevi Industrial Complex, in São Paulo, and the Freguesia do Ó Unit, responsible for over 80% of the company's manufacturing op-erations in Brazil, are ISO 14001 certified, cer-tifying compliance of the company to the envi-ronment. In Itapevi, production processes have been mapped in relation to its environmental impact. Thus, the company is working on plans to reduce, as much as possible, the consump-tion of natural resources and the generation of hazardous waste, the main impact on pharma-ceutical activity.

The company also seeks other certifications for its plants and maintains strict compliance to the standards of Good Manufacturing Practices (GMP), based on the law in force in the country, established and supervised by the National Health Surveillance Agency (ANVISA).

Obtain international certifications is also a way to be empowered to enter new markets and to anticipate future new regulations. Since 2009, Eurofarma forwarded in this direction, becom-ing part of the group of suppliers of the Pan American Health Organization (PAHO), linked to the United Nations (UN) whose objective is to improve the quality of life in Latin-American populations. The inclusion allows participation of Eurofarma in international bids organized by the entity.

HealtH anD WOrK SaFetY The staff of Occupational Safety Eurofarma inserted in Sustainability & New Businesses Office, maps and iden-tifies regularly risk situations. Based on surveys, oper-ational controls in order to eliminate or minimize the variances and reduce the risk of accidents in the orga-nization are achieved. Ensure the safety of employees in the exercise of their activities and the work environ-ment is the mission area.

The activities of Occupational Safety are based on the technical standards established by the Ministry of Labour. The company also has its own Occupational Safety Policy and seeks permanently to educate em-ployees about the risks of certain activities using com-munication as a tool for education and technicians for safety and representatives of the Internal Accident Prevention Commission (CIPA) as multipliers. Regular training and internal events on safety and health at work are performed. In 2013, Sipat (Internal Week for the Prevention of Accidents at Work), had as its theme "Behavioral Safety with Chemical Agents" and involved 1,983 employees.

In 2013, a new committee for the management of safe-ty and environment was created. Formed by leaders of the company, the group held nine meetings during

the year to discuss sensitive topics such as accidents, near accidents, absenteeism and risk map, among oth-ers. With the participation of the areas of Production, Quality, Pharmaceutical Technology, Human Resources, Engineering and Sustainability, the work of sharing in-formation, targets and indicators, besides the report-ing of deviations, enabled the Committee to discuss in depth the challenges and planning area.

Work accidents - only work (excluding route)

UNIT Occupational diseases

Lost days due to illness

Accidents with days

out

Accidents without days out

Total of accidents

Lost days due to

accidents

Total of worked hours

Total of absences of any nature

Total of worked days by internal people

TL Total

of inju-ries

TDO Total of diseases

TDP Total of Lost Days

(accident + illness

TA

Unit 2 5 0 10 4 14 388 691,643.50 100,734.00 676,459.17 4.05 1.45 112.20 29,128.88

euroglas 1 0 0 0 0 0 144,368.37 23,806.95 143,661.91 - 1.39 - 32,980.84

Biotechnology 0 0 0 0 0 0 29,973.38 2,473.00 29,924.00 - - - 16,501.31

Unit 5 0 0 0 1 1 0 52,923.39 1,573.00 52,906.82 3.78 - - 5,944.44

itapevi 0 0 19 9 28 182 5,742,221.96 106,917.00 1,999,827.93 0.98 - 6.34 3,723.89

ribeirão preto 0 0 8 2 10 42 899,280.73 77,085.02 897,892.97 2.22 - 9.34 17,143.71

cOrpOratiVe 6 0 37 16 53 612 7,560,411.33 312,588.97 3,800,672.80 1.40 0.16 16.19 8,269.10

EUROFARMA RS201376 I 77G4-LA6


CÓDIGO

closenext page

previous page print Full

screenGo to

cover Summary Gri index Search Zoom+ Zoom-

Innovation and Research

To invest in new to offer something truly superior.



screen CloseGo to

innOVatiOn anD reSearcH

process of new products. The area also served on the review of the current portfolio of the company and worked in technical adjustments to meet the regulatory changes, and identify opportunities for improvements in the formulation or presentation of the products of the company.

In 2013, Eurofarma occupied the first position in the ranking that highlights companies with the greatest number of generic and similar drugs registered in the country, a major evolution if compared to year 2012. Altogether, 31 products were awarded to the compa-ny by ANVISA (National Health Surveillance Agency) in the last year. Among these drugs, is the HP Duomo, the result of incremental innovation of Eurofarma whose launching was very well received by the medical com-munity, in particular by urologists. The licensed prod-ucts represent more than 11% of Eurofarma income.

Last year, the area has also developed an impressive job of improving the quality of the processes that be-sides the large number of launches in the period also resulted in a significant reduction in the time for place-ment of new products in stock, anticipating internal deadlines release.

In the area of Biotechnology in 2013, Eurofarma contin-ued development of the first 100% national filgrastim, biological product used for the treatment of patients with low numbers of neutrophils in the blood. The proj-ect is in the final stages, as well as the co-development of pegfilgrastim.

Last year, Eurofarma still sought many opportunities for innovation projects through license models, co-de-velopment and technology transfer, and has turned to study improvements in medicines through incremen-tal and new development platforms for the company innovations, in the future, can count on an attractive and protected portfolio. In biotechnology, important frontier of pharmaceutical research, the company has been conducting important approaches to internation-al companies.

ScientiFic cOMMittee

In 2013, Eurofarma initiated the work of the Scientific

Committee composed of specialists in therapeutic ar-

eas in which the company wants to enhance its ability

to innovate where there are demands of the scientif-

ic community and commercial opportunities. Among

the focused areas for projects of incremental and

radical innovation are Oncology, Infectious Diseases,

Dermatology and Psychiatry. As the development of the

projects, new subcommittees may be created with the

participation of specialists in a particular area.

The licensed products represent more than 11% of Eurofarma income.

The year 2013 was the consolidation of all new struc-ture built in the area of Innovation Eurofarma, which in 2012 won a Vice-Presidency, and held an important and extensive restructuring work to assist in the growth and achievement of strategic goals of the company in the technical, regulatory, clinical research, portfolio man-agement and licensing areas.

One of the important decisions was the separation of the areas of Innovation and Research, and now have two boards, one dedicated to the development of new

products and one with attention focused on mainte-nance and improvements to the existing portfolio, gen-erating greater speed in meeting the daily demands and allowed a more focused work to the development of new drugs.

Development areas now work in cells, responsible for a number of projects, which also prompted a significant increase in efficiency and the implementation of new performance measures.

The improvement of governance in Eurofarma in 2013, focused on further integration of the areas, and the closest and coordinated work between the areas of in-novation can already be seen in the results. One was the development of a large number of medications. In 2013, Eurofarma put a record number of new devel-opments stability, one of the latest into the research


cover

In 2013, Eurofarma put a record number of new developments in stability, one of the latest into the research process of new products.

Gestão de sustentabilidadeCÓDIGO


11 i 12



screen CloseGo to


Sustainability managementAlways grow, butnot at any cost.



screen CloseGo to

SUStainaBilitY ManaGeMent

GOALS OF THE SECTOR PRACTICES DA EUROFARMA

Power

Expand the use of renewable energy (which is now only 20%) and reduce 65% of oil consumption.

Using 79% renewable energy; creation of the Renewable Energy Project (installation of solar panels on industrial complexes) and LEED Certification Leed– Green Building.

Water

Search strategies for reducing waste, steam saving and recycling of effluents.

Partial use of rainwater for fire reserve and water reuse system; project of surplus treated water dona-tion. In Itapevi, 100% of effluent is treated and 18% is reused.

Waste Generation

The use more efficient technologies; better waste use; and use of more selectable raw materials to reduce waste.

89% co-processing of hazardous waste and incinera-tion of the other 11%; review of processes and Return Policy; qualification of suppliers; project for properly dispose of medications at home.

Commitment to the improvement of processes and operation for the best overall pattern

To identify best practices in our field and develop a plan of action to implement them.

Code of conduct and ethics; Annual report - GRI; Ombudsman; contractual clauses against slavery, child labor and anti-corruption; Social investment planned; and environmental indicators added to strategic planning.

Commitment to reducing inequalities

To implement policies and actions for the devel-opment of human and social capital and reducing opportunities inequalities.

Treatment at the right price policy, expanding access to medicines; fair and equal treatment to all levels of the organization; Scholarship Policy; Eurofarma Institute projects (graduation of low-income youth for the labor market); balanced participation of women in leadership positions.

Commitment to education, values and culture

Strengthen educational systems, compatible cultural environment with the principles of sustainability and favorable to the creation of a fair and sustainable global society.

Projects aimed at transforming education; cultural sponsorships; Academy of Leadership and training for all employees; Volunteer Program; Communication Campaigns for Citizenship: Campaign Against Waste, Responsible Use of Medicines, Social and Environmental Guidebook and Conscience Vote Guidebook.

Chosen as the most sustainable company in the phar-maceutical industry by the prestigious Guia Exame de Sustentabilidade 2013, reference of the sector. This is an important recognition for the sustainable management practiced by the company in all its activities. Indicators of the environment, corporate governance, transparen-cy, economic, financial, social and environmental out-comes made Eurofarma a model. Thus, the company achieved the goals set out in its Sustainability Master Plan, created in 2008. As a challenge, the area intends to launch projects, improve existing ones and still rep-licate, by 2015, part of these sustainability initiatives in countries where Eurofarma has operations.

The company continually invests in technologies and practices that can improve the efficiency and minimize the impacts of the activities performed. The organization is aware that natural resourc-es are finite and that sustain-ability is the only way to ensure the continuity of its operations.

Last year, the company focused on improving its program of water reuse, new alternatives for disposal of waste, the expansion of the "proper disposal of medicines" and the definition of a plan to implement in 2014 to Itapevi Complex take a new leap towards eco-effi-ciency and for water from industrial operations of Ribeirão Preto plant, currently discarded, can be reused.

cOMMitMentS anD actiOnSBesides the Sustainability Master Plan, actions and en-vironmental projects Eurofarma are in line with com-mitments to sustainable development and reducing en-vironmental impact established by Brazilian industries during a meeting held by the National Confederation of Industry (CNI), the Rio +20 Conference in June 2012. Much of the commitments contained in the document finalized by CNI already is part of the routine of the company, including the disposal of medicines properly to prevent contamination of soil and groundwater with harmful substances.

Trees planted by employees with 15 years of company (Roots Program)

G4 -15



screen CloseGo to



Emissions, effluents and waste

2012

Company Quantity Treatment Quality Destination

Itapevi 96.712m3 Biological treatment

Meets the standards for effluent discharge of Decree No. 8468, Article 18-A, and CONAMA 430, Article 16.

Creek and Reuse

2013

Company Quantity Treatment Quality Destination

Itapevi 90.324 m³ BiologicalTreatment

Meets the standards for effluent discharge of Decree No. 8468, Article 18-A, and CONAMA 430, Article 16.

Creek and Reuse

WASTE MANAGEMENTInternally, the whole process of generation and dispos-al of waste is controlled and tracked by a computerized system in Eurofarma, allowing,

in addition to monitoring, identifying the source and op-portunities for reduction.

Since 2010, Eurofarma conducts educational work with consumers to properly dispose of medicines, stating in-side drug packaging that packages and leaflets are ma-terials that must be sent for recycling.

In the case of primary packaging, those that have di-rect contact with the drug, they can be a source of contamination of the active ingredient are considered hazardous waste and therefore must have an appro-priate destination. To enable consumers to make the proper disposal of this material, the company has partnered with the drugstores chain of Pão de Açúcar group, which, through the special containers installed in the stores, receives this kind of household waste.

The partnership is tripartite and also involves the Department of Services of São Paulo and other cities in the state. The public agency shall be responsible for collection at the points of sale and disposal of waste. In 2013, the program collected 6.193 tons of solid waste, which were sent for incineration.The company is strongly committed to the search for new and cleaner solutions, for the use of materials. For waste arising from internal activities of the company, production losses and obsolescence, Eurofarma has other forms of allocation, because it works in the iden-tification and separation of the residue according to class of risk. Thus, a large part of hazardous waste is to co-processing.

Harnessing the power and the calorific value of the materials, those wastes feed cement kilns, causing less environmental impact. In 2013, 544 tons of waste were co-processed.

Water Among the macrothemes monitored in sustainability management, the issue of water use is one of the items reported as highly relevant by stakeholders Eurofarma. In 2013, the company established an important partner-ship with the City Hall of Itapevi, municipality of Greater São Paulo where its industrial complex is located, for the monthly donation of 500,000 liters of non-drinking water, water of reuse, to the city. The water originates from wastewater treatment plant station.

The plant treats 100% of wastewater from the industrial complex and, after this process, water is reused in some areas of the plant, for example, to supply toilets and cleanliness of the yards. The company does not use the entire volume of water treated; for this reason, in 2013, was made the mapping of the surplus and was signed a public-private partnership for the donation of water to the City. To enable the collection, Eurofarma also donated to the municipality a water tank truck. Thus, the city removes the water daily, which subsequently

is used in the cleaning of public roads throughout the county. Eurofarma is committed to reducing the con-sumption of water for every thousand units produced in its manufacturing plants, tracer established to con-sider the environmental performance of the company. In 2013, 368.460 m3 of water were consumed by the company. The total volume of water recycled and re-used by the company stood at 36.377 m3.

Water consumption m3

2011 2012 2013

Underground water

136,012 352,770 323,096

PublicSupplying

70,553 72,042 45,364

Total 206,565 424,812 368,460


G4-EN22G4-EN23

% and total volume of recycled and reused water

2011 2012 2013

Total of recycled / reused water (m3) 4,440 15,334 36,677

% of recycled / reused water in relation to the total consumption

4 15.8 39

1. The project for reuse was implemented in the Itapevi Industrial Complex in June 2011 with the objective of reuse of rain water which is collected from the roof of the industrial block (Block VII) and the treated effluent by the treatment plant, reuse is inter-connected to supply in toilets, cooling tower and for cleaning.

2. The information described in the table above refer only to the monitoring of the reuse of effluent treatment plant. For 2012, an action plan was established to increase the efficiency of the system and hence the percentage of reuse.

3. As from 2012 it was started to monitor the volume of rainwater captured from the roof and directed to the system, a factor necessary that enhanced the actual reuse data.

G4-en8G4-en10



screen CloseGo to



Emissions of GEE per unit (tCO2e)2011 2012 2013

Itapevi 1,272,682 1,582,507 1,772,829

Campo Belo 907 1,268 1,565.70

Interlagos II 596 - -

Freguesia do Ó 811 1,342 857

Emissions of GEE per unit (tCO2e)2011 2012 2013

Stationary Combustions1 - Scope 1

LPG Consumption 1,269,122 1,577,712 1,688,018

NG Consumption 437 2,982 3,014

Diesel Consumption 80 89 63

Power2 - Scope 2

Power Consumption 1,112 4,474 4,904

Other Emissions3 - Scope 3

Landfill disposal 1,842 1,660 1,187

Waste treatment through Incineration 269 528 723

Waste treatment through co-processing 2,132 2,352 2690

Total of emissions 1,274,996 1,586,266 1,700,599

1. The emissions were calculated based on the amount of acquired commercial fuels, using emission factors published by IPCC.2. Emissions were calculated per metric units as from the power consumption and specific, of the local net and from emission factors published by the Inter

Ministerial Commission on Global Climate Change.3. Emissions were calculated from activity data such as fuel use and miles of flight, besides published emission factors or others, always giving preference to

specific emission factors of source or location instead of other more generic. Industries in general are faced with a set of specific methodologies for each sector, which can be found on the Brazil GHG Protocol Program site.

Emissions of GEE per unit (tCO2e)Business Unit 2011 2012 2013

Alcohol Gasoline Alcohol Gasoline Alcohol Gasoline

Farma 76% 24% 76% 24% 74% 26%

Generic Medicine 88% 12% 93% 7% 91% 9%

Hospital supplies 76% 24% 82% 18% 79% 21%

Oncology 82% 18% 79% 21% 79% 21%

Veterinary Science 74% 26% 81% 19% 79% 21%

Total 77% 23% 84% 16% 77% 23%

77% 23% 75% 25%

75% 25% 77% 25%

Total Emission (Ton CO2 / Year) 3,011 2,970 3,055

1. From January to June was considered historic of emissions and, in August, was implemented non-emitted Total GHG policy.

Recycling of materials2011 2012 2013

Ton Financial return Ton Financial return Ton Financial return

Paper 829 R$ 103,590.60 762 R$ 181,773.00 899 R$ 104,802.70

Plastic 192 R$ 139,292.99 89 R$ 297,349.00 214 R$ 24,814.48

Metal 122 R$ 28,880.76 42 R$ 43,135.00 31 R$ 3,907.15

Glass 165 R$ 8,177.34 282 R$ 9,866.00 296 R$ 10,371.89

Total 1,308 R$ 279,941.68 1,175 R$ 532,123.00 1,439 R$ 143,896.22

Total of waste by method of disposal (t)2011 2012 2013

Non-hazardous

Recycling process 1,337 1,840 1,682.5

Landfill 1,474 910 624

Total non-hazardous 2,811 2,750 2,306.5

Hazardous

Incineration 47 156 210

Co-processing 383 498 544

Total Hazardous1 430 654 754

1. Not including hazardous waste sent for recycling, because they are not representative (batteries and lubricant oil = 0.4% of the total hazardous), and the lamps, since the control is not made by weight.

eMiSSiOnSA pioneer in the pharmaceutical market form, Eurofarma started to do, in 2008, an inventory of emis-sions of greenhouse gases (GHG), with the goal of re-ducing the emission of pollutants. As one of the largest fleets in the country, one of the measures adopted was the monitoring of emissions from 2.500 vehicles of the company.Since then, with the creation of the Corporate Policy for Fuel Consumption, the company prioritizes the use of renewable fuel, ethanol, on the whole fleet supply. This substitution of gasoline by ethanol generates 100% reduction in the emission of carbon, one of pollutants causing greenhouse effect. In 2013, consumption of re-newable fuel represented 74% in the company.

GHG Industrial Emissions -InventoryEurofarma is one of a few pharmaceutical com-panies to develop inventory of greenhouse gases emissions in the industrial area. The study, accord-ing to the GHG Protocol methodology, reaches the estimated volume of direct and indirect emissions relat-ed to the production process. From the results of the inventories of the plants, the area of environmental management, together with the areas of operations, develops actions to reduce emissions of greenhouse gases, either by replacing gas with lower environ-mentalimpact or even the development of projects and increased use of renewable energies.

EUROFARMA RS201388 I 89G4-en15

G4-en16G4-EN17

0.00%

14

12

10

8

6

4

2

02008 2009 2010 2011 2012 2013

16



screen CloseGo to



pOWerIn 2013, a substation of own energy Eurofarma began operating in Itapevi Industrial Complex, expanding the capacity to 10 MW, twice the available in 2012. Besides Eurofarma industrial park, this substation will supply also other industries in the region of Itapevi, so that the investment of the company should further contribute to local economic development.

Power Consumption 12011 2012 2013

GJ /year 2 123,560 240,160 183,718GJ / 1000 UP (units produced)2

0.70 0.95 0.73

1. The data of energy consumption are presented in GJ because Eurofarma adopts for internal control metric that calculates consumption in GJ per thousand units produced.

2. The indicator considers only the energy consumption of Units 2, 3, 5 and Itapevi which manufacture finished products. As Unit 4 manufacturers semi-finished products had not its index cal-culated due to the new metric established in 2011, which has considered only the units that manufacture finished products. Thus, the comparison between years was impaired.

riSK ManaGeMentIn 2013, Eurofarma put into practice through a series of initiatives within its policy for managing risks inherent to its activities, based on the Precautionary Principle, the ex-isting at Rio/92 and Rio +20 Declaration on Environment and Sustainable Development. This principle also is appli-cable in international agreements such as the Convention on Biological Diversity - CBD and the Cartagena Protocol. Among the highlights is the launch of the Manual of Crisis and the Cartagena Protocol on Biosafety, a quick que-ry that includes practical guidance to leaders on how to act in difficult situations, as well as the training of these employees.

Although the purpose of the material is to ensure the good image and reputation of the company, from the perspec-tive of Corporate Communications, in the drafting process, many steps were mapped and the content is shared with the Compliance & Risk Management, whose assignment also involves the raising of internal processes and the identification of the vulnerabilities.

With a focus on improving the management, and the identification and mitigation of financial and accounting risks, in 2013 the company has also advanced in its gov-ernance with the creation of controlling management and its plan for 2014 provides the establishment of an area of internal audit.

Instituto EurofarmaEurofarma Institute is responsible for the company's social projects to encourage development in the com-munities where it operates.Founded in 2006 with the mission to promote transfor-mation through education, the Institute operates on three fronts - further education, environmental education and professional teaching - and has benefited more than 23,000 people, mostly children and young people at situations of vulnerability and social risk. Only in 2013, 7.330 people were directly benefited.

Last year, the company increased by 11% the money for the projects managed by the Institute, which has its headquarters in Interlagos I Unit in São Paulo, now fully geared to educational programs.

Throughout the year, the Institute conducted a survey of the public served by the projects to evaluate the impact of the programs, measure the level of satisfaction with the service provided, and to identify new demands for future projects. One of the these requests has been met, with the creation of an English Course, that will be offered in 2014 in partnership with the British Centre.

InvestmentSocial X Profit 2011 2012 2013

Corporate programs + Instituto Eurofarma R$ 6.681 mil R$ 7.362 mil R$ 8.023 mil

Donation of medicines R$ 44 mil R$ 237 mil R$ 4.632 mil

Support to incentive laws R$ 165 mil R$ 45 mil R$ 694 mil

Other donations R$ 250 mil R$ 41 mil

Total R$ 7.140 mil R$ 7.644 mil R$ 13.390 mil

Net profit R$ 26.582 mil R$ 157.400 mil

R$ 160.764 mil

% profit applied in social investment 26,86% 4,86% 8,33%

Support to incentive laws

Donation of medicines

Other donations

Corporative +ProgramsInstituto Eurofarma

% profit applied in social investment

4,71%

2,58%3,08%

27,27%

4,86%

8,33%

0,7

4,6

0,00,2

0,4

0,00,2

0,3

0,1

0,2

2,84,0

5,66,7

7,4

8,0

EUROFARMA RS201390 I 91G4-en3

G4-14

Atualização quadro comparativo de doações – RA 2012



screen CloseGo to



prOFeSSiOnal traininGConect@ – The project Conect@ is aimed to the learning of computer for business purposes and targets young people between 14 and 18 years. The course lasts four months, totaling 102 hours. It is taught in the educational unit Eurofarma Institute and in 2013, 420 young people were trained.

Eurofarma Nurse Center (CEE) - The Centre aims to train on a professional basis the technical nursing staff with pedagogical partnership between SENAC and Hospital Albert Einstein. The course lasts two and a half years and is targeted to young people aged between 17 and 29 who have completed high school. All costs relat-ed to the course are funded by Eurofarma Institute as uniforms, snacks and transportation. In total, the proj-ect has trained 247 nursing technicians and maintains a high degree of integration in the labor market: 85% of the course participants, and 12 months after training, are working in the area.

Other Courses - Eurofarma Institute also offers train-ing courses for Office Assistant, aimed to young peo-ple between 14 and 18 years old, and Administrative Technician, for young people between 15 and 18 years old. Both have lasted four months and, in 2013, 420 students attended.

DOnatiOnSThe area of Corporate Social Responsibility is responsi-ble for coordinating all donations made by Eurofarma to social organizations. Since 2008, the company allo-cates 1% of Income Tax Due to social projects through the Fund Law for Children and Teenager (FIA). Since 2013, the company started to support projects ap-proved at PRONON - National Programme to Support Cancer Care, through the allocation of over 1% of the income tax due.

Donations

2011 2012 2013

aBrinQ Foundation R$ 27.053 R$ 25.380 R$ 24.597

Ingo Hoffmanninstitute R$ 16.400 R$ 18.000 R$ 18.600

community centerJardim autódromo R$ 14.355 R$ 15.500 R$ 18.000

Hospital do câncer de Barretos

R$ 8.113 R$ 8.712 R$ 11.334

ayrton Senna institute ¹ R$ 250.000

projeto papel de Gente ² R$ 108.000

aacD R$ 86.112

casa emanuel ² R$ 1.895

Graac (donation for the building of Graac Hospital)

R$ 50.000

Graac (Mc Dia Feliz) R$ 195.975 R$ 229.950 R$ 262.200

Secretaria Municipal de Meio ambiente de itapevi

R$ 44.000

Total R$ 706.008 R$ 297.542 R$ 430.626

Donation ofMedicines 2011 2012 2013

Units ofmedicinesmedicines

R$ 120,580 R$ 11,289 R$ 153,133

cost R$ 44,000 R$ 237,000 R$ 4,632,000

Beneficiaries(nr. of tickets) R$ 20,100 R$ 21,900

Investment R$ 195,975 R$ 229,950

eDUcatiOnal prOJectSDe Olho no Enem – Created in 2013, this is the first course 100% developed by Eurofarma Institute, from its own methodology and hiring of educators. It is guided to students of the 3rd year of secondary education in public schools, or already graduated, and aims to res-cue deficiencies in the subjects of Portuguese language and mathematics by improving the preparation for the National High School Exam (ENEM). The course lasted six months and totaled 68 hours/class, plus an inten-sive class on holiday, totaling 287 entries.

Hand in hand with the School - Aimed to children of employees, the program aims to encourage the main-tenance of children and teenagers at school and, there-fore, performs the free distribution of kits of school sup-plies for children between 4 and 14 years old enrolled in school. The program also includes reimbursement of expenses with books and handouts (up to a limit established per year). In 2013 there were invested R$ 316 thousand in that initiative, among the distribution of 1.700 kits and R$ 280 thousand in reimbursements.

Educate to Recycle - The program enables educators of the town of Itapevi, in the State of São Paulo, to effec-tively include the theme on environment in the curric-ulum of the Elementary School. It is developed in part-nership with the Municipal Secretariat of Education an Culture of Itapevi, through the participation of schools of the municipality, and with the Recyclable Materials Cooperative. Schools taking part of the project also will function as selective waste collection and all material collected is donated to the local cooperative. The value that the school receives for the sale of the material is paid by Eurofarma Institute, and the resources are ap-plied toward the organization of libraries, infrastructure improvements conducting free courses.

Raw material - Initially, the course offered activities toward to complimentary education of students be-tween 7 and 13 years old and enrolled in Elementary in municipal or state schools in Itapevi (SP). However, the success of the program led the Institute to broaden the service to young people studying in municipal schools in the south zone of São Paulo. The program serves 370 children and adolescents permanently and consists of workshops covering topics such as art, music, commu-nications, environment and citizenship, always held as after school activity. Besides the activities, the partici-pants receive meal (lunch and snack), uniforms and transportation to cultural activities. On Fridays, the unit of São Paulo is open to the surrounding public schools to conduct occasional workshops.

Raw material 2nd Generation - In this program, the courses are aimed to people between 14 and 18 years, from the Raw Material design, and focus on professional training lasting two years. The excess vacancies not filled by former students of Raw Materials are made available to youth in the community, in order to optimize resource and enable a growing number of young people.

Studio-School Eurofarma - Created in 2010, involves students from public schools in Santo Amaro, south of São Paulo, and has the region assist in educational devel-opment goal, being held in partnership with schools. The activities are conducted at school and content of work-shops is part of the curriculum. In 2013, the project was carried out in eight schools, reaching over 2,900 students.

GRÁFICO COM A EVOLUÇÃO DOS IN-DICADORES ETHOS 2005 – 2013

2005 2008 2010 2012

10

8

6

4

2

0



screen CloseGo to



meetings, among others. Initiatives for employee's events aim to value the appreciation, through the recognition and integration.

The main projects sponsored by Eurofarma, in 2013, were the season's Musical Tim Maia in Rio de Janeiro and tours in the cities of Porto Alegre and Belo Horizonte; the social project "Doctors of Joy"; and the premiere of the film on national television, "I hate Valentine's Day.

Investment with incentive laws

2011

Cost Nr. of Projects

Return / Beneficiaries

Proac R$ 1.275.496,31 10 -

Pie R$ 1,345,112.36 7 3,767

Rouanet Law R$ 660,000 1 -

Federal Law R$ 165,000 1 230

2012

Proac R$ 1,107,818.78 6

Pie R$ 1,167,439.33 8 4,955

Rouanet Law R$ 600,000 1 45%

Federal Law R$ 45,000 1 512

2013

Cost Nr. ofProjects

Return /Beneficiaries

Proac R$ 1,289,972.46 5

Pie R$ 1,295,157.66 8 4,067

Rouanet Law R$ 1,400,000 2 59%

Federal Law R$ 350,000 1 3,000

Investments without incentive2011 2012 2013

Stock Carand Football

R$ 7,137,443.00 R$ 7,820,000 R$ 8,541,502

Investments in programs of enhancement2011

Investment Beneficiaries Result of Research

Festa Junina SP R$ 150,223.76 976 94,16%

Festa Junina RP - - -

End of Year Party SP

R$ 368,273 1,500 94%

End of Year Party RB

- - -

Jubilee R$ 87,606 113 92%

Roots R$ 12,863 55 None

2012


Festa Junina SP R$ 166,345.77 960 98%

Festa Junina RP - - -


R$ 408,972.98 1,400 84%


R$ 74,768.40 550 -

Jubilee R$ 89,531 109 97


2013


Festa Junina SP R$ 130,220 960 98%

Festa Junina RP R$ 112,905 288 100%


R$ 400,000 1,300 97%


R$ 85,333 390 97%

Jubilee R$ 119,367 160 99%


etHOS inDicatOrS On cOrpOrate SOcial reSpOnSiBilitY

For nine years, Eurofarma uses the Ethos Indicators on Corporate Social Responsibility as a diagnostic and self-assessment tool for its practices and processes. Divided into seven themes: values , transparency and governance, workforce, environment, suppliers, con-sumers and customers, community and government and society, the indicators are applied in the company every two years, the time required for the implemen-tation of actions and define new goals.

In 2013, Eurofarma joined the benchmark group of Ethos Institute, which includes companies that had the top 10 placements in overall performance, ac-cording to the indicators Ethos 2012. The Corporate Social Responsibility Committee acts directly on the analysis of the diagnosis and defining action plans for the area. Become reference among the com-panies with the best practices in the country it was always a goal pursued by the organization. For this, the diagnostic tool is considered an important tool for internally validating practices, gap analysis and preparation of plans for improvement.

iBaSe prOGreSS anD etHOS inDicatOrSSince drafting its first Report, in 2005, Eurofarma uses the indicators of Brazilian Institute of Social and Economic Analyses (IBASE). Data are used to moni-tor the evolution of the company and issues related to corporate governance, especially regarding issues such as diversity and leadership.

Just as the indicators of the Ethos Institute, data from IBASE are quite aligned with the demands of stake-holders and what they wish to track within the com-pany's management style.

SpOnSOrSHipS & eVentSEurofarma works with the goal of applying 100% of the proceeds from tax incentives such as the Rouanet Law, PROAC and Federal Law for Encouragement of Sport, to support cultural programs and sports. The area is also responsible for sponsorships with own re-sources, coordination of the company's Sponsorship Committee and the management of internal events such as Festa Junina and end of year party, in ad-dition to meeting the domestic demands for partic-ipation in conferences, trade shows and scientific

eUrOFarMa'S ScOre prOGreSS On etHOS inDicatOrS94

GeneralPerformance

Environment Suppliers Consumersand Customers

Community Governmentand Society

ValuesTransparency

and Governance

Internal Audience




screen CloseGo to


1 - Base of Calculation 2010 Value (mil Reais) 2011 Value (mil Reais) 2012 Value (mil Reais) 2013 Value (mil Reais)

Net profit (RL) 1,165,981 1,331,144 1,448,310 1,681,750

Operational Result (RO) 209,666 36,264 177,955 241.755

Gross Payroll (FPB) 377,321 458,420 338,072 456.575

2 - Internal Social Indicators Value (mil) % over FPB % over RL Value (mil) % over FPB % over RL Value (mil) % over FPB % over RL Value (mil) % over FPB % over RL

Feeding *1 13,635 3,61% 1,17% 17,496 3,82% 1,31% 18,622 5,44% 1,80% 20.667 4,53% 1,23%

Compulsory social charges 104,554 27,71% 8,97% 127,240 27,76% 9,56% 145,645 42,57% 14,07% 86.984 19,05% 5,17%

Private Welfare 1,319 0,35% 0,11% 2,324 0,51% 0,17% 2,102 0,61% 0,20% 2.277 0,50% 0,14%

Health 1,319 0,35% 0,11% 23,081 5,03% 1,73% 27,224 7,96% 2,63% 30.018 6,57% 1,78%

Health and safety at work *2 697 0,18% 0,06% 1,814 0,40% 0,14% 2,581 0,75% 0,25% 3.168 0,69% 0,19%

Education 309 0,08% 0,03% 297 0,06% 0,02% 440,964 128,88% 42,59% 497 0,11% 0,03%

Culture 0 0,00% 0,00% 0 0,00% 0,00% 0 0,00% 0,00% 0 0,00% 0,00%

Capacity and professional development 3,202 0,85% 0,27% 4,801 1,05% 0,36% 2,400 0,70% 0,23% 4.712 1,03% 0,28%

Day Care Center or Daycare benefit 2,505 0,66% 0,21% 807 0,18% 0,06% 854 0,25% 0,08% 468 0,10% 0,03%

Profit Share Program 37,384 9,91% 3,21% 45,900 10,01% 3,45% 58,656 17,14% 5,67% 67.501 14,78% 4,01%

Others *3 4,876 1,29% 0,42% 6,983 1,52% 0,52% 7,308 2,14% 0,71% 3.850 0,84% 0,23%

Total - Internal Social Indicators 169,799 45,00% 14,56% 230,743 50,33% 17,33% 706,356 206,44% 68,23% 220.142 48,22% 13,09%

3 - External Social Indicators Value (mil) % over RO % over RL Value (mil) % over RO % over RL Value (mil) % over RO % over RL Value (mil) % over RO % over RL

Education 4,556 1,21% 0,39% 5,864 1,28% 0,44% 6,212 2,95% 0,60% 6.818 2,82% 0,41%

Culture 2,888 0,77% 0,25% 1,966 0,43% 0,15% 1,708 0,81% 0,16% 2.690 1,11% 0,16%

Health and sanitation services 495 0,13% 0,04% 320 0,07% 0,02% 281 0,13% 0,03% 1.091 0,45% 0,06%

Sports 8,345 2,21% 0,72% 8,647 1,89% 0,65% 9,032 4,28% 0,87% 10.186 4,21% 0,61%

Fight against hunger and food safety 43 0,01% 0,00% 49 0,01% 0,00% 51 0,02% 0,00% 28 0,01% 0,00%

Others 0 0,00% 0,00% 0 0,00% 0,00% 0 0,00% 0,00% 44 0,02% 0,00%

Total of contributions to society 16,327 4,33% 1,40% 16,898 3,69% 1,27% 17,284 8,19% 1,67% 20.857 8,63% 1,24%

Tributes (excluded social charges) 244,027 64,67% 20,93% 260,635 56,86% 19,58% 270,376 128,19% 26,12% 372.205 153,96% 22,13%

Total - External Social Indicators 260,354 69,00% 22,33% 277,533 60,54% 20,85% 287,660 136,39% 27,79% -351.348 -145,33% -20,89%

4 - Environmental Indicators Value (mil) % over RO % over RL Value (mil) % over RO % over RL Value (mil) % over RO % over RL Value (mil) % over RO % over RL

Investments related to the production / company operation

1,422 0,38% 0,12% 3,535 0,77% 0,27% 3,012 1,43% 0,29% 3.266 1,35% 0,19%

Investments in programs and/or external projects 0 0,00% 0,00% 120 0,03% 0,01% 85 0,04% 0,01% 79 0,03% 0,00%

Total of investments in environment 1,422 0,38% 0,12% 3,655 0,80% 0,27% 3,097 1,47% 0,30% 3.345 1,38% 0,20%

Regarding the establishment of "annual goals" to mini-mize waste, consumption, in general, during production / operation and increase efficiency in the use of natural resources, the company

( ) fulfill from 0 to 50% ( X ) fulfill from 76 to 100%

( ) it does not have goals ( ) fulfills from 51 to 75%

( ) fulfills from 0 to 50% ( X ) fulfills from 100%


( ) fulfill from 0 to 50% ( x ) fulfills from 100%


( ) fulfills from 0 to 50% ( ) fulfills from 76 to 100%


5 - Staff Indicators 2010 2011 2012 2013

Noof employees at the end of the period 3,629 4,363 4,560 4.601

No of admissions during the period 687 847 912 702

No of third part employee(s) 379 348 388 407

No of intern(s) 36 44 40 32




screen CloseGo to


No of employee(s) above 45 years old 377 546 621 699

No of women working in the company (intern) 784 1,106 1190 1183

No of women working in the company (external) 341 349 346 339

% of women in leading positions (intern) 53,00% 27,65% 51,78% 49,65%

% of women in leading positions (external) 0,90% 0,42% 0,85% 1,65%

No of black(s) working in the company 521 793 852 823

% of black(s) in leading positions 3,05% 4,16% 5,12% 6,04%

No of people with disability or with special needs 170 177 192 175

6 - Relevant information to the exercise of corporate citizenship

2010 2011 2012 2013

Ratio between the highest and lowest remunerationat the company

71.63 77.30 77.3 76.2

Total number of accidents at work 43 51 38 53

The social and environmental projects developed bythe company were defined by:

( ) board ( X ) board and managements

( ) all employees ( ) board ( X ) board and management

( ) all employees ( ) board ( X ) board and managements

( ) all employees ( ) board ( X ) board and managements

( ) all employees

The standards for safety and health in the work place were defined by:

( X ) board and manage-ments

( ) all employees ( ) all + CIPA ( X ) board and managements



( ) all employees

( ) all + CIPA

Concerning union freedom, right to the collective negotia-tion and to the internal representation of employee(s) the company:

( ) it does not get involved

( X ) follows the rules of the OIT

( ) incentives and follows the OIT


( X ) follows the the rules of OIT



( X ) follows the rules of OIT



( X ) follows the rules of OIT


Private welfare aims: ( ) board ( ) board and managements

( X ) all employees

( ) board ( ) board and managements

( X ) all employees ( ) board ( ) board and managements

( X ) all employees

( ) board ( X ) board and managements

( X ) all employees

Profit Share Program is intended to: ( ) board ( ) board and managements

( X ) all employees


( X ) all employees ( ) board ( ) board and managements

( X ) all employees


( X ) all employees

In the selection of the suppliers, the same ethical standards and of social and environmental responsibility adopted by the company:

( ) are not considered

( X ) are suggested

( X ) are required ( ) are not considered

( X ) are suggested ( X ) are required ( ) are not considered

( X ) are suggested

( X ) are required

( ) are not considered

( X ) are suggested

( X ) are required

Regarding the participation of the employee(s) on voluntary work programs, the company:


( X ) supports ( ) will organize and motivate






( ) supports ( X ) will organize and motivate

Total number of consumers complaints and criticisms: At the com-pany 7,395

at Procon 0 at Justice 25 at company 6,994

at Procon 1 at Justice 26 at company 7,654 at Procon 1 at Justice 15 at company 5,676

at Procon 0 at Justice 2

% of complaints and criticisms answered or solved: At company 96,56%

at Procon - at Justice 44% at company 93% at Procon 100% at Justice 16.66% at company 98% at Procon 100 % at Justice 13.33%

At company 99,9%

at Procon 0% at Justice 0 %

Total added value to distribute (in thousand R$): In 2010: 886,322 In 2011: 974,400 In 2012: 1,195,222

Distribution of the Added Value (DVA): “36 % government 41 % employees 4 % shareholders 5 % third part 14 % retained”

“36% government 47% employees 0% shareholders 16% third part 1% retained”

“32% government 44% employees 6% shareholders 11% third part 7% retained"

“34% government 43% employees 3% shareholders 10% third part 10% retained"

7 - Other information

"1 - In the field "Feeding" it was estimated a reimbursed value to the employees that work outside, considering the law in force regarding the reimbursement, multiplied by the number of employees that work outside and by the number of business working days, except for vacation period2 - Investments in work safety and health; we took into consideration the costs with individual protection and firefighting equipments - Itapevi3 -The numbers refer to the amounts dedicated to parking lot, life insurance, transportation vouchers, fuel, costs with end-of-year party.

4- The investments include payroll of the Environmental Management Area5- 20% of the total amount of investments correspond to the Water Reuse Project of Itapevi spent in 2009 and 2010. As the Project was launched in 2011, the company chose to report such investment in this report6 - It is considered black and brown people"



CÓDIGO



screen CloseGo to

Future Prospects

2014Focus on goals and growth



screen CloseGo to

FUtUre prOSpectS EUROFARMA RS2013102 I 103

Among the challenges of Human Resources for 2014 are also the de-ployment of e-social and preparing action plans based on the results of the climate survey conducted in 2013.

FOCUS ON GOALS AND GROWTHThe year of 2014 is crucial for Eurofarma to achieve the goals set in its Vision 2015, to cover 90% of the Latin American market and and be among the top three in Brazil’s Farmaceutical market share, with own innova-tive products. In the context of international expansion, Eurofarma will intensify prospecting for business op-portunities in key Latin American countries. For sales growth in the subsidiaries, in addition to launches planned for the year, is also expected to start activities

of promotion and sale of own products in Colombia, with the creation of a sales task force and action in the area of prescription. The company also will follow up with the product launch in subsidiaries and maintains the goal of increasing the number of submissions of new records in all the countries where it has opera-tions, including Venezuela, Paraguay and Ecuador.

In 2014, Eurofarma will also be focused on the stra-tegic process of industrial intelligence, aimed to inte-gration and optimization of regional operations and the consolidation of its corporate governance model. The area also estimates improvements in its manage-ment process with specific software acquisitions. The maintenance of training and focus on continuous im-provement for increased productivity, reducing indus-trial losses, inventories and costs in the following year’s agenda and various initiatives for efficiency gains have already been or will be implemented. The company also works to expand the productive capacity of Itapevi Industrial Complex through increased productivity and acquisition of assets.

In the area of sustainability, water management and new renewable energy projects will be on the agenda of investments, as well as expanding the “Correct Disposal of Medicines” program. In the social sphere, Eurofarma Institute will implement three new projects in 2014 and intends to keep the cost per capita increasing year by year the number of direct beneficiaries. Also are in the focus of this board actions and consequences arising from the brandingproject andreviewing the Planning for 2020.

In innovation, the company intends to meet the indi-cators of new products developed internally as well as alliances to advance the licensing, co-development and technology transfer, also focusing on incremental research. The company plans to close deals of new

license contracts that can add a potential of sales above to 130 million of reais in the second year of the launch-ing. The goals of the area include the development and stability of new products for human and vet lines and the presentation of records to ANVISA. It is still planned deployment of an integrated R & D process to generate an even greater gain in productivity and quality in the

documentation area, consolidating the company as in-dustry benchmark.

In the area of Human Resources, the intensification in training, formalization and implementation of the suc-cession plan, at all levels, ensuring the process of de-velopment and career of employees will be aligned to the proposal to consolidate the new structure of the company and align each more practices in Brazil with national and international affiliates. Among the chal-lenges of Human Resources for 2014 are also the de-ployment of e-social and preparing action plans based on the results of the climate survey conducted in 2013, and projects that assure the individual performance recognition.

With respect to sales, Eurofarma has a prospect to grow above the market in all segments. In 2014, the company aims once again, gain market share in prescriptions. Today the company occupies 2nd place in prescriptions in the country. The consolidation of investments in new company Momenta and also in the subsidiaries is the focus of the commercial area of the company, which also provides an organizational restructuring aimed at strengthening the participation of the Eurofarma ex-empt prescription drugs segment, called MIPs or OTC (acronym for the term over the counter).

Plans in the financial area, highlight 2014 to build an array of foreign exchange risk allowing mitigate the ef-fect of cambial changes in the company’s results and to implement improvements recommended by exter-nal audit, in the related area of inventory controls. The company also plans to implement a package of monthly result reports with adequacy of subsidiaries’ income for policy. The alignment of information and process inte-gration should bring benefits in the financial manage-ment of all operations.


CÓDIGO



screen CloseGo to

Economic Performance



screen CloseGo to


The year 2013 was good for Eurofarma results, and has shown continuous growth over the past four years. The cumulative rate of growth in sales in three years was 16% per year and the cumu-lative rate of 37% EBITDA during the period. The higher than rev-enue EBITDA growth shows a gain of operational efficiency. The improvement in the financial health of the company can also be measured by generating the necessary for the payment of debts. The relationship between bank debt / EBITDA has decreased from 2.6 in 2011 to 1.5 in 2013.

INCOME STATEMENTS FOR YEARS ENDED IN 31st OF DECEMBER, 2013 AND 2012 (In thou-sands of R$)

controller consolidated12/31/2013 12/31/2012 12/31/2013 12/31/2013

re-submitted

Income 1,681,750 1,448,310 1,876,463 1,575,892

Cost of sold products (531,788) (437,217) (604,056) (517,774)

Gross Profit 1,149,962 1,011,093 1,272,407 1,058,118

Sales Expenditures (581,436) (591,916) (661,614) (619,617)

Administrative Expenditures (206,526) (176,744) (258,675) (202,033)

Employee Profit Sharing (53,004) (50,535) (58,321) (50,897)

Other revenue 22,511 57,856 25,395 56,979

Other expenditures (12,722) (12,837) (12,806) (12,373)

Equity in earnings (12,098) (4,251) 6,963 3,648

Results before net financial income (expen-ditures) and taxes

306,687 232,666 313,349 233,825

Financial Income 49,041 32,507 50,564 32,581

Financial Expenses (56,803) (55,491) (62,632) (58,165)

Net foreign exchange and monetary variation (57,170) (31,727) (60,169) (32,909)

Net financial income (expenditures) (64,932) (54,711) (72,237) (58,493)

Income before taxes 241,755 177,955 241,112 175,332

Income tax and current social contribution (44,168) - (45,386) (400)

Income tax and deferred social contribution (36,823) (20,555) (36,978) (19,309)

Income Statement 160,764 157,400 158,748 155,623

Net Profit Attributable to

Controlling Shareholders 160,764 157,400 160,764 157,400

Non-Controlling Shareholders - - (2,016) (1,777)

The companies included in the Financial Statements are the following:

• Eurofarma Gautier Uruguay S.A • Thamaxis Limitada

• Laboratórios Euromed Chile S.A. • Eurofarma Venezuela Casa de Representación, CA

• Momenta Farmacêutica Ltda. • Laboratórios Eurofarma Bolívia S.A.

• Eurofarma Argentina S.A. • Laboratórios Carrión S.A.C.

• Incrementha PD&I • Refasa S.A.C.

• Eurofarma Edol Produtos Farmacêuticos Ltda.

• Publimedic S.A.C.

• Eurofarma de México S. de RL. de C.V.

• Laboratorios Productos Industriales S.A. (Laprin S.A.)

• Eurofarma Colômbia S.A.S.

Capital Balance Sheet Taken in 31st December, 2013 and 2012 (in Thousands of R$)

assetscontroller consolidated controller consolidated

12/31/2013 12/31/2012 12/31/2013 12/31/2013 Re-submitted

12/31/2013 Re-submitted liability 12/31/2013 12/31/2012 12/31/2013 12/31/2013

Re-submitted12/31/2013

Re-submittedWorking capital Working capital

Cash and cash equivalents 54,674 24,762 85,032 32,088 11,738 Suppliers w74.587 55,023 98,345 77,323 48,225

Other investments - - - - 2,037 Loans and financing 280,492 208,350 340,636 231,950 125,117

Accounts receivable from customers 192,952 134,382 240,676 164,989 155,390 Leasing operations 24,500 31,127 25,995 32,157 25,235

Stocks 222,833 219,741 284,031 261,552 172,414 Salaries, provisions and social contributions 32,696 47,649 43,153 52,904 39,184

Financial instruments 53,741 29,555 53,741 29,555 6,726 Taxes and contributions payable 19,099 8,519 23,170 11,694 13,100

Current tax asset 58,339 95,231 66,529 100,201 76,996 Income tax and social contribu-tion payable - - 715 1,086 952

Other receivables 18,699 16,423 34,879 14,781 19,169 Special Program for Installment Payments - PAEs 2,062 11,770 2,062 11,770 15,217

Total current asset 601,238 520,094 764,888 603,166 444,470 Employee Profit Sharing 61,595 58,388 69,450 60,455 46,666

Interest on own capital - 3,043 - 3,075 11,583

Dividends payable 67,508 37,383 67,804 37,383 2,745

Accounts payable investment - - - - 108,589

Long term receivable Other payables 56,236 61,608 61,252 65,068 32,594

Accounts receivable from customers - - - - 2,933 Total current liabilities 618,775 522,860 732,582 584,865 469,207

Current tax asset 3,139 4,553 3,159 4,553 4,474Deferred tax assets - - - - 5,507 Loans and financing 330,672 356,606 332,973 364,325 384,715Depositsfor investments 25,577 25,117 25,627 25,117 19,469 Leasing operations 16,808 32,633 17,863 33,764 29,539

Advance for future capitalincrease

22,513 750 - - - Deferred tax liabilities 53,678 16,854 49,685 12,741 -

Escrow accounts(“escrow”) 7,474 7,159 7,474 7,159 8,698 Special Program for Installment

Payments - PAEs 5,168 6,295 5,168 6,295 17,632

Other receivableaccounts 2,732 1,408 3,990 2,111 - Provision for emergencies 54,992 56,142 55,439 56,365 67,356

61,435 38,987 40,250 38,940 41,081 Accounts payable investment 46 46 64 46 7,785

Negative net equity 21,876 18,895 20,785 18,422 15,619

Other payables - - - - 1,850

Total non-current liabilities 483,240 487,471 481,977 491,958 524,496

Net asset

Share capital 627,007 627,007 627,007 627,007 546,813

Income Reserve 195,898 73,316 195,898 73,316 30,747

Accumulated translation adjustments 5,248 7,490 5,248 7,490 216

Investments 497,710 364,522 20,818 13,997 7,558 Equity attributable to share holders 828,153 707,813 828,153 707,813 577,776

Fixed assets 714,221 732,142 800,771 781,716 720,890 Non-controlling interests 15,830 15,897 14,357

Intangible 55,564 62,399 431,815 362,714 371,837 Total net equity 828,153 707,813 843,983 723,710 592,133Total non-current asset 1,328,930 1,198,050 1,293,654 1,197,367 1,141,366 Total equity and liabilities 1,930,168 1,718,144 2,058,542 1,800,533 1,585,836

Glaucia Cristina Sartori Coliath – Accountant CRC 1SP 159.824/O-1The Financial Statements were audited by KPMG that issued a report dated in 31st March, 2014.Complete financial statements are available at the headquarters of Eurofarma Laboratories S.A.

ecOnOMic ecOnOMic



screen CloseGo to


ecOnOMic ecOnOMic

EUROFARMA LABORATÓRIOS S.A.

the total added Value gen-erated by eurofarma, which reflects the aggregate wealth by business activity, totaled r$ 1,398,614 million

2013 2012

total added Value to Distribute 1,398,614 1,242,511

Distribution:

Human Resources 634.984 554.714

Taxes 459.139 400.147

Interests / Rental 145.743 132.027

Dividends 38.182 77.448

Retention 122.582 79.952

Non-controlling participation -2.016 -1.777

total 1,398,614 1,242,511

At the federal level, Eurofarma Laboratories received as government incentives the payroll unburdening for the pharmaceutical industry, the measure that aims to increase the competitiveness of domestic industry and stimulating the formal labor market; further incentives for technological innovation of Lei do Bem, Law 11.196, which provides tax incentives to companies that con-duct research and development and technological innovation.



screen CloseGo to

GRI indicatorsStrateGY anD analYSiS paGe

G4-1Provide a statement of the main decision maker of the organization (e.g. director, chairman of the board of directors or equivalent senior position) about the relevance of sustainability to the organization and its sustainability strategy.

02

OrGaniZatiOnal prOFile paGeG4-3 Using Eurofarma name. 12G4-4 Report major brands, products and services. 24G4-5 Report the location of headquarters. 12

G4-6Report the number of countries where the organization operates, and names of countries where its main operations are located or which are especially relevant to the topics addressed in the sustainability report.

16

G4-7 Report the nature of ownership and legal form of the organization. 12

G4-8 Report the markets in which the organization operates (with geographic breakdown, sectors covered and types of customers and beneficiaries). 12, 36

G4-9 Report the size of the organization:

19Total number of employeesTotal number of operationsNet sales (for private sector organizations) or net revenues (for public sector organizations)Total capitalization broken down in terms of debt and equity (for private sector organizations)Quantity of products or services 12

G4-10 Report the total number of employees, broken down by gender and labor contract. 63Report the total number of employees by type of employment and gender. 63Report the total task force, broken down by region and gender. 63

G4-11 Report the % of total of employees covered by collective bargaining agreements. 62G4-12 Describe the supply chain of the organization. 72

G4-13 Report any significant changes during the reporting period regarding size, structure, sharehold-ing or supply chain of the organization, including:

14

Changes in the location or the organization's operations, such as opening, closing or expanding facilitiesChanges in the share capital structure and other training activities, maintenance or modifica-tion of equity (for private sector organizations)Changes in the location of suppliers, the structure of the supply chain or supplier relationships, including their selection process and exclusion

G4-14 Report whether and how the organization adopts the precautionary principle or approach. 90

G4-15 List the charters, principles or other initiatives externally developed of economic, environmen-tal and social nature which the organization subscribes or endorses. 84

G4-16 List participation in associations (eg. Industry associations) and national or international advo-cacy organizations in which the organization: 73

MATERIAL ASPECTS AND LIMITATION paGe

G4-17 List all the entities included in the consolidated financial statements or similar documents of the organization. 106

G4-18 Explain the process used to define the contents of the report and the limits of the Aspects. 06G4-19 List all material aspects identified in the process to define the content of the report. 08G4-20 For each material aspect, report the Limit of the Aspect within the organization, as follows: 08G4-21 For each material aspect, report the Limit outside the organization, as follows: 08

G4-22 Report the effect of any restatements of information provided in earlier reports and the rea-sons for these reformulations. 06

G4-23 Report significant changes from the previous reporting periods covered in Scope and 06ENGAGEMENT OF STAKEHOLDERS paGeG4-24 Provide a list of stakeholder groups engaged by the organization. 07G4-25 Report the basis used for the identification and selection of stakeholders for engagement. 07

G4-26Report the approach adopted by the organization to engage stakeholders, including the frequency of their engagement broken down by type and group, with an indication that any engagement is specifically promoted as part of the report preparation process.

07

G4-27

Report the major topics and concerns raised during the stakeholder engagement and actions taken by the organization to address these issues and concerns, including the process of reporting them. Report the groups of stakeholders that have raised each of the issues and concerns raised.

07

repOrt prOFile paGeG4-28 Period covered by report (e.g. fiscal or civil year) to information that were presented. 06G4-29 Date of most recent previous report (if any). 06G4-30 Reporting cycle (annual, two-year period, etc.). 06G4-31 Inform person in charge to contact for questions regarding the report or its contents. 112G4-32 Inform the option "Agreement" chosen by organization. 06

Inform the Summary of GRI Content for the chosen option.

G4-33 Inform the policy and practice adopted by the organization to undergo external verification report. 09

GOVernance paGeGOVernance StrUctUre anD itS cOMpOSitiOn

G4-34Report the governance structure of the organization, including committees of the highest gov-ernance body. Identify any committees responsible for advising the board in making decisions that have economic, environmental and social impacts.

48

etHicS anD inteGritY paGe

G4-56 Describe the values , principles, standards and rules of behavior of the organization, such as codes of conduct and ethics. 18

inDex anD SpeciFic StanDarDS

Material Aspects Page

Economic performance 108

Presence in the Market 36

Materials 72

Power 90

Water 86

Effluents and waste 87

Health and Work Safety 76

Customer safety and health 74

Product safety 74

Ethic regulations 56

Gri inDex EUROFARMA RS2013110 I 111

GRI index

Gri inDicatOr page G4-EC1 108G4-EC4 108G4-EN1 72G4-EN3 90G4-EN8 86G4-EN10 86G4-EN15 88G4-EN16 88G4-EN17 88G4-EN22 87G4-EN23 87G4-LA2 69G4-LA6 76G4-LA12 63, 64 and 68G4-SO1 66G4-SO5 56G4-PR1 74G4-PR5 74



screen CloseGo to

ecOnOMic

Analysis of evidence supporting the quantitative and qualitative disclosures in the Sustainability Report 2013;

Analysis of the processes for the preparation of the Sustainability Report 2013, and its structure and con-tent, based on the Principles of Content and Quality of Sustainability Reporting Guidelines of the Global Reporting Initiative - GRI (GRI-G4);

Visits to the offices of Eurofarma Laboratories SA to im-plement the procedures (b), (c), (d), (e) and (f);

Head of the financial indicators with the financial state-ments and / or accounting records; and

We believe the information, evidence and results ob-tained in our study is sufficient and appropriate to base our conclusion on a limited basis.

Scope and limitations The procedures applied in a limited assurance work is substantially less extensive than those applied in a rea-sonable assurance work. Therefore, do not enable us to obtain assurance that we would become aware of all the issues that would be identified in a reasonable assurance work, which aims to give an opinion. In case we had performed a work of reasonable assurance, we could have identified other matters and any distor-tions that may exist in the information contained in the Sustainability Report 2013.

The non-financial data is subject to more inherent lim-itations than financial data, given the nature and the diversity of methods used for determining, calculating or estimating such data. Qualitative interpretations of materiality, relevance and accuracy of data are subject to individual assumptions and judgments. Additionally, we did not perform any work on data reported for prior periods, to assess the adequacy of their policies, prac-tices and performance in sustainability, or in relation to future projections data.

conclusion

Based on the procedures performed, described in this report, nothing has come to our attention that leads us to believe the constants in the Sustainability Report 2013 Eurofarma Laboratories SA information has not been compiled, in all material respects, in accor-dance with the Guidelines for Sustainability Reporting of the Global Reporting Initiative - GRI (GRI-G4), and the records and files that served as the basis for its preparation.

São Paulo, March 24th, 2014 KPMG Independent Auditors

CRC 2SP014428/O-6

Anselmo Neves Macedo Accountant CRC 1SP160482/O-6

To the Board of Directors of Eurofarma Laboratórios S.A São Paulo - SP

introduction

We were hired by Eurofarma Laboratories S.A. ("Company") in order to apply limited assurance proce-dures on the sustainability information disclosed in the Sustainability Report 2013 Eurofarma Laboratories SA for the year ended December 31, 2013.

responsibilities of company management The administration of Eurofarma Laboratories S.A. is re-sponsible for the preparation and presentation of ap-propriate form of sustainability information disclosed in the Sustainability Report 2013 in accordance with the Guidelines for Sustainability Reporting of the Global Reporting Initiative - GRI (GRI-G4), and the controls in-ternal it determines is necessary to enable the prepa-ration of information free from material misstatement, whether due to fraud or error.

responsibility of the independent auditors

Our responsibility is to express conclusion on the infor-mation stated in the Sustainability Report 2013, based on limited assurance work carried out according to the Technical Communication (CT) 07/2012, approved by the Federal Accounting Council and prepared with base on NBC TO 3000 (Different Jobs Assurance Audit and Review), issued by the Federal Accounting Council - CFC, which is equivalent to the international standard ISAE 3000, issued by the International Federation of Accountants, applicable to historical non-financial infor-mation. Those standards require that we comply with ethical requirements, including independence require-ments and that the work is performed in order to obtain limited security that the information disclosed in the Sustainability Report 2013 Eurofarma Laboratories SA,

taken as a whole, are free from material misstatement.

A limited assurance work conducted in accordance with the NBC TO 3000 (ISAE 3000) consists primarily of in-quiries to Eurofarma Laboratories S.A. management and others in the company who are involved in prepar-ing the information included in the Sustainability Report 2013 as well as the application of analytical evidence for enabling us to conclude in the form of limited assur-ance on the sustainability information taken as a whole. A limited assurance work also requires the implemen-tation of additional procedures when the independent auditor becomes aware of issues that lead to believe that the information disclosed in the Sustainability Report 2013, taken together, could have significant distortions.

The procedures selected were based on our under-standing of aspects relating to compilation, materiality and presentation of information in the Sustainability Report 2013 and other conditions of work and our con-sideration of areas and the processes associated to the sustainability material information disclosed where misstatements could exist. The procedures were:

Planning the work, considering the materiality of issues and topics for the activities and operations of Eurofarma Laboratories SA, the relevance of the information dis-closed, the volume of quantitative and qualitative infor-mation and operational systems and internal controls that were the basis for the preparation of sustainability information contained in the Sustainability Report 2013 Eurofarma Laboratories S.A;

Understanding of the calculation methodology and procedures for the compilation of indicators through interviews with managers responsible for preparing the information;

Understanding of the reporting process and form of materials management aspects and performance indicators;

Applying analytical procedures on the quantitative and qual-itative information about the questions and their correlation with indicators disclosed in the Sustainability Report 2013;


Report of Limited Assurance from the Independent Auditors

Cover Summary GRI index Search Zoom+ Zoom-

ecOnOMic

CREDITSSupervision Maria Del Pilar Muñoz Sustainability & New Business Director

General Coordination Lívia de Almeida Ferreira Corporate Press

Advisory for sustainability management and GRI indicatorsLanakaná - Rodrigo Henriques

Editorial project, graphic project, diagramming, press production KF Comunicação

Service and execution Claudia Cezaro Zanuso and Monica Deliberato Baptista

Composition Sheila Train

Revision Fabiana Aidar

Fotos Eurofarma collection: Márcia Alves, Marcelo Soubhia, Duda Bairro, Gustavo Ferri, Lilo Clareto

Placement Corporate website: www.eurofarma.com.br versao/pt/institucional

Call Us Eurofarma 0800-704-3876

Pearson-Vet 0800-709-1999

Disk Generic Eurofarma 0800-703-0001

Commercial Customers 0800-704-1993

AME (Doctor's Call Service Eurofarma ) 0800-701-2263

From Monday to Friday, 8:00 am to 5:00 pm. E-mail – [email protected] e on-line service, through website

Comments and suggestions regarding this report: E-mail – [email protected]

creDitS



Building the present looking towards the future - Eurofarma

Documents