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Institutional Presentation Introduction | March 2011

Institutional Presentation Introduction | March 2011. Disclaimer.

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Institutional Presentation Introduction | March 2011

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  1. InstitutionalPresentation Introduction | March 2011

  2. Disclaimer This release contains forward-looking statements relating to the prospects of the business and estimates of operating and financial results, as well as the Company’s growth prospects. These are merely projections and as such are based exclusively on the expectations of the Company’s management concerning the future of the business and its continued access to capital to fund its business plan. These forward-looking statements depend substantially on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors, as well as the risks described in the Company’s filed disclosure documents, and therefore are subject to change without prior notice.

  3. Positive perspective for Brazilianmarket Real AverageIncome (R$ October 2010) ConsumerConfidenceIndex Social ClassDistribution Average Age (years) 3 Source: IBGE 3

  4. Positive perspective for Brazilianmarket GDP growth (%) Selicinterest rate – endoftheyear (%) 7,5% IPCA inflation (%) Unemployment rate (%) Source: Banco Central do Brasil (FOCUS), IBGE, FGV, Tendências and Wall Street releases. 4

  5. Marketgrowth Beauty and Personal Care Industry (R$ bn) Pharmaceutical Industry (R$ bn) 14.0% CAGR (06-10) 13.7% CAGR (03-09) 36,2 29,7 28.1% 26,1 23,4 21,4 11.2% 13.7% Household Cleaning Products Industry (R$ bn) Grocery Market Industry (R$ bn) 6.7% 5.7% CAGR (03-09) CAGR (03-09) Source: ACNielsen Tendências, ABIHPEC, IMS (YTD as of November). Note: ACNielsen’s market coverage totals 70%. Does not consider northern capitals.. This figures reflects this adjustment. 5

  6. Business units Focus on consumer with leadership position in many markets 2010 Combined Gross Revenue: R$5.0 billion The brand of brands. Health & Well-being Beauty &Personal Care Home Care& Food Total 2010(1) 46% 44% 10% Largest national laboratory Largest self-service domestic player Most diversified player #1 #1 #2 Over-the counter products (OTC) Diapers Steel Wool #1 #1 #2 Nail Polish Sauces Branded Generics #1 #1 #1 Electric Insecticides Condom Moisturizers #1 Sweetener Men’s Care #1 #1 Body Oil (1) Pro-forma considering the acquisitions of 2009: Hydrogen, PomPom, Olla, Jontex, Neo Química and 2010: Sapeka, Sanifill, York, Luper, Mabesa, Rx Brands, Pom Pom Soaps, Bitufoand Mantecorp. 6

  7. Ranking Hypermarcas is the largest Consumer Goods player in Brazil Hypermarcas rank in Brazil’s consumer sector #1 #1 Source: Euromonitor and IMS.Note: Dark blue numbers denote rank with the Brazilian market. (1) Does not consider companies only focused on the food market. 7

  8. Broaddistribution Important presence in both Drug store and Grocery Store channels DRUG STORE CHANNEL Mom & Pops Pharma Distributor 55% 80% 68k POSs Large Chains 20% 4k POSs Direct GROCERY CHANNEL 35% Large Chains Distribution Centers 3k POSs Direct Mom & Pops Food Distributor 45% 406k POSs 65% 8

  9. Business model Growth strategy model enables fast growth with profitability Organic Growth • Relaunch “dormant brands” • Improve distribution • Foster innovation Synergistic Acquisitions • Enter new attractive segments • Consolidate Markets • Focus on drugstores and grocery stores channels Profitable Growth Low Cost Operating Platform • Economies of scale and scope • Multiple operational synergies 9

  10. Sustainablegrowth Growth evolution 69% 60% 54% 52% 54% 10

  11. Acquisitions Growth carefully planned on “step-by-step” steady path Stair Case Growth Strategy 2010 acquisitions:A new round #23 Acquisitions since 2007 4.6per Year Equity Offering: Accelerated Growth IPO: Further Expansion in Consumer Health and Well Being Entrance in the OTC & Personal Care Started platform in Cleaning & Food 2010 2002 2006 2008 2009 11

  12. Integration Integration know-how and organized process Planning Phase I Phase II Phase III • Preserve the Business • Protect market share and sales • Adequate systems • Maintain the operations stable • Retaintalents • Brandsstrategydefinition • Quick Wins • SG&A reductions • Increaseplantproductivity • Operating FineTuning • Plant restructuring • Reduction in raw material and packaging costs • Reduction of logistic costs • ProductMarketStrategies • Stage 1: Marketing investments • Stage 2: Increase market-share and distribution • Stage 3: Product launches and brand extension • Pre Integration • 12 months • 12 to 24 months • 3-4 years 12

  13. Revenuegrowth Net Revenue (R$ million) 2.1X 2.2X 2.8X 2.9X ‘08 ‘09 ‘10 ‘10 ‘08 ‘09 ‘10 ‘08 ‘09 ‘10 ‘08 ‘09 Q1 Q2 Q3 Q4 13

  14. EBITDA evolution EBITDA (R$ million) 14

  15. Cash Earnings close to 20% of Net Revenue CashEarnings (R$ million) 15

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