Q U A L I FA R M ACompany Profile

Castell’Arquato Febbraio 2019

Company Information

Founded in 2002 developing and trading private label (food supplements)

From 2005 part of a holding with QualiFarma Retail - chain of parapharmacies now dissolved into Equi Spa

From 2010 become independent offering Contract Sales and Marketing Services

Italian Ownership

Main Offices in Castell’Arquato old town (PC)

Innovative monitoring IT systems for Principals

In-depth knowledge of the pharmaceutical market

Passionate and streamlined organization

Pharmaceutical contract service Sales and Marketing

provider

Complete coverage of the Italian pharmaceutical supply chain

Value proposition

Value (M/€)

0

5

10

15

20

2013 2014 2015 2016 2017 2018

Turnover trend

18,0917,5

15,1

12,9

7,56,6

OPTION 01

OPTION 01Over 30% of the annual revenues are secured with factoring agreements with Customers

OPTION 01All the credits on behalf of foreign Principals are 100% covered by Insurance

Financial Risk Assessment

OPTION 01

OPTION 01Credits coming from 3 southern Regions are managed by two authorized dealers

OPTION 01Qualifarma holds the highest Credit Bureau’s ratings

CEO A.Bovolenta

Marketing&Communication

C.Lusignani

Sales ManagementA. Bovolenta

Logistics & Supply Chain

M. Romani

Administration & Customer Service P.Obertelli - C.Sala

Graphic&Web (outsourcing)

Bubble

2 Sales Manager

Communication (outsourcing)

Ardeche

Sales Assistant F.OreficiS.Pagani

45 Agents

Logistics Provider (outsourcing)

Consigliere Logistica

Finance & HR (outsourcing)

Studio Livatino Studio Tedeschi

Business Development

Company Structure

Since January 2017 we have in our team two exclusive agents!

Sales forces is composed of: 45 reps and 2 area managers 2 KAM

Managing 3 canvas periods with incentives quarterly model.

Pharma Sales Force

1

4

6

1

4

1

22

2

4

11

1

1

3

1

2

2

4

2

Main Principals/Brand

Distribution NetworkLogistic

QualiFarma also has a dedicated warehouse in the North of Italy (Milano).

Capacity: 10.000 pallets tot.

Types of products: full authorization for drugs, cosmetics, food supplement, veterinary drugs

. This logistic hub is a strategic asset,

providing a reliable logistic platform serving the whole Italian territory.

MILANO

HOUSING HANDING SHIPPING

Supply chain & Logistic

To all custumers: ▪ Pharma / Paraf / Sanitary Shop ▪ Pharma Wholesalers

Manufacturer 66,1%

Pharmacist 18,8%

State VAT or other taxes 9,9%

Wholesaler 5,2%

Distribution in the Pharmaceutical Industry

Europe Distribution Margins, wich are generally fixed by governments, differ significantly from country to country

Below is a typical break down of the retail price of a medicine:

Distribution in the Pharmaceutical IndustryIn Italy, the OTC market is gradually gaining market shares.

Pharmacies are the main distribution channel in Italy, with about EUR 8.5 billion sales in year 2013.

Among products sold through pharmacies, Parapharmaceuticals (nutraceuticals ) and notified sectors show 7% growth per annum.

Self-care drugs

Notified

Health and beauty

Parapharmaceutical

Nutritional

Prescription

61,8%

OTC

38,2%

PHARMACIES 89,1%

PARAPHARMACIES6,8%

GDO4,1%

OTC3,1%

PRESCRIPTION-1,8%

Italian OTC vs. Prescription in 2013

Distribution volume 2013 vs.2012

Sales channelPotential reach of over 10.000 POS in the Country

Pharmacies

Parapharmacies

Sanitary and Health shops

Distribution NetworkCustomersQualiFarma’s competence and client oriented philosophy has gained the trust of a large number of pharmacists across Italy.

Pharmacy 7.554

Drugstores 682

Sanitary stores 139

Orthopedic stores 104

Co-operatives and wholesalers 60

Independent Pharmacies

Coverage of 7.554 pharmacies (54% of the total independent - all the A & B class)

45 Reps coordinated by 2 Area Managers with constant weekly monitoring to assure the best sales result for Principals

Canvass Meeting with the Principals’ participation

Sell-out agreements with the main Virtual Networks

CooperativesTransfer order agreements with the main Cooperatives:

Orders taken by Reps in Pharmacies negotiating directly with owners

Stocks delivered to the Pharmacies

Invoicing to the Cooperative

Pharmaceutical WholesalersCustomized commercial activities with the main Wholesalers (AA and A):

Annual purchase plans

Telesales

Commercial offers to pharmacies via-modem or House Organs

Incentive plans to push core brands

Listing

Discount to pharmacies management

Product range management with the other Wholesalers (B):

Health ShopsPartnership with one of the main Sales Forces in the market with a coverage of 1.500 POS out of 4.500

21 Reps coordinated by 1 Sales Manager

Parapharmacy RetailersCustomized commercial activities with the main Retail Chains in Corners overseen by pharmacists:

Annual purchase plan

Display boxes campaigns

Commercial offers trough Consumer “door-drops”

Product range management

Brands distribution: phase 1

In few years only, QualiFarma has reached EUR 18,09 M€ of revenue and is today recognized to be a solid,

stable and influential player in the pharmaceutical industry.

REPUTATION

KNOWLEDGE

CRITICAL MASS

Exclusive sales force: phase 2 next level

QualiFarma now seeks to accelerate the growth of the portfolio of brands by acquiring strong brands distribution

from large pharmaceutical players in order to increase critical mass and switch into an exclusive sales force.

IMPROVE TURNOVER

SECURE SOURCING

EXCLUSIVE SALES FORCE

1. Choose the right

store

2. Make the store right

4. Build awareness

& drive footfall

3. Drive consumer

offtake

Brand Build Model

Brand Build Model

CHOOSE THE RIGHT STORE: Distribution and market Analysis Sales Force Effectiveness Model ROI of Promotional Activities

MAKE THE STORE RIGHT: Market Diagnostic Depth of distribution Quality of distribution Brand Impact at Point of Sale

DRIVE CONSUMER OFFTAKE: Price compliance Rate of sales strategy, including promo strategy to drive Trial & AWP

BUILD AWARENESS & DRIVE FOOTFALL:Search Engine Mktg and online adv Traditional Media and In-store demos Brand Literature Hospital Programmes and Consumer Shows

1

2

3

4

SUSTAINABLE AND

CONSISTENT BRAND

AND CATEGORY GROWTH

Brand Build Model

INFORM

ENGAGE & SOCIALISE

TRANSACT

PACK

AGIN

G

PROMOTIONS POS

WOM

PR EVENT

SO

CIA

L N

ET

WO

RK

ING

BRAND COLLATERAL

OLA

SEM

PRINT

Marketing services Consulting

•general rollout consulting (start-up) •marketing activities, communication tools and investment planning •legal advice and possible support for contracts

Analyses and Market Research

•analyses on specific fields/products – feasibility studies and competitor analyses •IMS reporting

Operative Support

•organization of events (exhibitions, trade shows, conferences, events, PR and print) •distribution and mailing of promotional material and product samples (promoter and ambassador) •compliance with administrative, customs, tax and transport procedures •transport coordination, verification of product conformity •search engine placement, web-marketing •creation of websites and active social networks •e-commerce

Marketing Services

Marketing Services

Coordination of 360°marketing activities on the wide spectrum of the Media:

PRESS

RADIO

TELEVISION

PR EVENTS

SOCIAL WEB

Consulting in the creation of POS materials and in store supporting actions.

G R A Z I E