LIFTEC CZ PHARMA DIVISION PRESENTATION 2017

LIFTEC CZ
PHARMA DIVISION
PRESENTATION 2017

LIFTEC CZ HIGHLIGHTS

 LIFTEC CZ is multichannel distribution company operating since
                               1991.

 LIFTEC CZ is distributing brands such as elmex, meridol, Colgate,
   Philips, Kneipp, Salus Floradix, Dr. Böhm, Liftea and Čajánek.

LIFTEC CZ has more than 25 years of the experience on CZ and SK
                            markets.

LIFTEC CZ INTRO 1 - HISTORY

  Since 1991     •Kneipp - German # 1 in bath - since 1891 on the market
                  •(pharmaceuticals, food supplements and cosmetics)

                 •Čajánek® (baby natural teas) - LIFTEC CZ PL brand
  Since 2000         •Granulated
                     •Loose

  Since 2002     •GABA - Swiss oral care expert
                  •elmex®, meridol® brands on the Czech market

  Since 2005     •Liftea® - since 2005 - LIFTEC CZ PL - food supplements

  Since 2006     •Linde - founded in Germany in 1879
                  • Healthcare products ( Optichambers, Oxyfit)

LIFTEC CZ INTRO 1 - HISTORY
                 •Colgate® - USA based corporate company - Oral care expert
  Since 2008      •in pharmacies only – Colgate & Protex brands
                 •PHILIPS – Dutch company - inhalators

                 •Salus Haus - German company - 100 years on the market
  Since 2011      •Pharmaceutical products, food supplements, (nature
                   ingredients)

  Since 2012     • LPSDA - French company - Dentibaby

                 •Apomedica company - Austria #1 in food suppl, #2 in
  Since 2014      pharmaceuticals on Austrian market
                 •Dr. Böhm, Apomedica Med, LUUF and Lasepton brands

  Since 2015    •SUNLIFE - German company
                 •Food suplements

LIFTEC CZ INTRO 1 – HISTORY – 2017 – UP-DATE
                 •LIFTEC CZ bought by new investor

  Since 2016     •LIFTEC CZ became a part of biggest SPA group in CZ
                      •Luhačovice SPA
                      •Jáchymov SPA

2017 PROJECTS    •YEAR OG BIG CHANGES AND OPPORTUNITIES

                 •E_COMMERCE PROJECT

                 •HEALTH - FOOD SHOPS PROJECT

                 •SPA PROJECT

2017 – HEALTH – FOOD SHOPS PROJECT
LIFTEC CZ = is also a distributor to HEALTH & FOOD
 ORGANIC SHOPS
 The aim of LIFTEC CZ is to become one of 3 biggest distributors in HEALTH
  FOOD SHOPS in the country
    How to be different?
        Our aim is to bring new very high quality products to the country:
        Organic cosmetics and organic food
        Design also matters: with new modern design

    What is our added value?
        To support customers with high quality services + „Above the level“ services
        Marketing beyond the borders: interactive workshops (BTB, BTC), showrooms, bloggers,
         influencers, contests, loyalty programs, special editions, cash back programs, etc

2017 – SPA PROJECT
 LIFTEC CZ has become part of biggest SPA group in Czech Republic – both well
  know SPAs:
    SPA Luhačovice
    SPA Jáchymov
        Liftec is going to be a main supplier

LIFTEC CZ INTRO 2 - STRUCTURE
                                                             LIFTEC CZ
                                                             Founded
                                                              in 1991

                     • Selling pharma goods
Pharma division

                     • Selling print machines and services
Technical division

LIFTEC CZ INTRO 3 – STAFF ORGANISATION
  LIFTEC CZ has 30 office employees, 8 sales representatives in pharma division and
   20 employees in industrial printing division.
  LIFTEC CZ has experienced people in departments marketing, sales, logistics,
   financial controlling, accounting, etc.
  LIFTEC CZ is flexible in human resources management.
  Different channels are handled by their needs:
      Retail and pharma chains by KAM under sales director leadership
      Wellness, spa and e-shops by KAM under sales director leadership
      Pharmacies and MED = doctors by sales representatives (SR) under sales director
       leadership

  Marketing&Trade marketing is organized according to brand management and
   closely cooperates with sales, logistics and financial departments.
  Logistics department covers also warehousing services.
  Financial and account department support whole company – both divisions.

LIFTEC CZ INTRO 3 – Pharma Organigram
                                                                Executive
                                                                manager

                                                                                    Technical
                                     Pharma                             Financial
                                                                                     division
                                     Director                           Director
                                                                                     director

                         Sales&                                                     Industrial
                                                                        Finance &
                        Marketing                   Logistics                        printing
                                                                       Accounting
                        Manager                                                     structure

                                    Regulatory     Warehouse
        Sales Dep       Marketing
                                    & Scientific

  KAM           Sales Rep

LIFTEC CZ INTRO 4 – DISTRIBUTION CHANNELS

  PHARMA                     MASS
(Pharmacies,                MARKET
  Doctors –    DRUGSTORES
                              =
  GYN, PNE,
  PED, GP)                  RETAIL

                                          LIFTEC CZ
                                         WAREHOUSE

  HEALTH
                 SPA &
   FOOD                     E-SHOPS
                WELLNESS
  STORES

LIFTEC CZ INTRO 5 – PERFORMANCE
Sales 2016                   T CZK                           T EUR
Pharma Division CZ&SK        130 670                         4 836
Printing Division CZ         98 601                          3 649
Printing Divison SK          63 639                          2 355
TOTAL                        292 913                     10 842

                                      Pharma Division CZ&SK
             22%

                                      Printing Division CZ
                       44%

                                      Printing Division SK
             34%

LIFTEC CZ INTRO 5 – PERFORMANCE Highlights
 LIFTEC CZ = GROWING TREND OVER PAST YEARS
• 2016 YoY pharma division growth
  in turnover                           +8%
• 2016 YoY Salus brand growth in
  turnover                             +107%
• 2016 YoY Liftea PL brand growth in
  turnover                             +84%
• 2016 YoY Dentibaby brand
  growth in turnover                   +130%
• 2016 YoY Apomedica growth in
  turnover                             +63%

LIFTEC CZ INTRO 7 – COMPANY STRATEGY
 LIFTEC STRATEGY:
 Our aim is to build up brand awarness of our brands and
  products, educate people via appropriate brand equity
  marketing tools.
 Our task is to build up both numerical and weighted
  distribution.
 We invests into PR and marketing advertizing.
 We build up high quality sales & marketing teams.
 We tailor our activities to meet customer, shoppers and
  consumers needs.

LIFTEC CZ INTRO 8 - BRANDS
                                      Inhalators &
Oral care          Food supplements
                                      Optichambers
 Pharma channel    Total market      Total market

                                      Cosmetics
                                       SPA & WELLNESS
 Total market

                    Pharma channel

LIFTEC CZ INTRO 9 - TOP bestsellers
Pharmaceutical                       Salus Food suppl
                      Oral care                         Liftea Food suppl     Natural Tea

                 Kneipp Food suppl           Kneipp      Apomedica          Liftea
                                            cosmetics

BRAND elmex & meridol
 GABA founded in 1638 as Golden Apotheke Basel in
  Switzerland, since 2006 owned by Colgate Palmolive
  company.

ORAL CARE EXPERT
    Toothpaste, Toothbrushes, Mouthwashes, Interdental care
 G-T-M Strategy:
    Professionals – doctors – OC team calls(Colgate company),
     congresses, Digital markting
    Pharmacy – SR team calls (LIFTEC CZ), detailing
        Promo activities, POS, sampling, education, detailing, congresses

    Consumer – media campaigns - magazines, etc., doctor&
     pharmacists recommendation

                                                                         Detailed info in brand
                                                                         presentation attached

Detailed info in brand
BRAND LIFTEA                                                    presentation attached

 LIFTEC CZ private label brand
    Food supplements using traditional herbs such as St. Johns Wart,
     Baldrian, Hawthorn, Mistletoe, Passionflower, Rosehip, Sage, Nettle,
     Dandelion, Birch Tree, etc
        Diggestives
        Laxactives
        Calming stres, nerves, for good sleep
        Blood circulation
    Flexible production
        We are able to produce novelty within 2-3 months
    High quality ingredients - extracts
    Pharma oriented visuals (but selling both in pharma and retail
     market)
    Dynamic brand turnover growth - 64% YoY

BRAND SALUS                                            Since 1916 - 2016
Salus is german family company founded by Dr.
Med. Otto Greither in 1916.
Range of food suplements under brand SALUS:
 Floradix – liquid Ferrum form, now available in
   tablets too
                  #1 Liquid food supplement with
                   Ferrum in country and worldwide
                  One of the best selling LIFTEC CZ
                   product, dynamic growth +107% YoY

 Floradix Kindervital – multivitamin with
  Calcium
 Novelties:
     Gallexier
     Magnesium Liquid
                                                            Detailed info in brand
                                                            presentation attached

BRAND Dr. BÖHM – Apomedica
 Apomedica is Austrian leading company in pharmaceutical business.
    Founded in 1968 by Friedrich Böhm, Mag. pharm, M.D
 Market Position:
    No.3 on the Austrian OTC market (among 834 companies)
    No.1 on the Austrian food supplement market (among 703 companies)
    No.1 OTC brand in Austria*: Dr. Böhm®

 LIFTEC CZ managed to be an exclusive distributor in 2014
 LIFTEC CZ increased the YoY sales in 2015 by 70% and overachieved the target, in
  2016 YoY +63%.
 LIFTEC CZ is closely cooperating with Apomedica
    Marketing planning
    Media planning
    Sales planning
    Cycles planning                                          Detailed info in brand
                                                              presentation attached

BRAND Kneipp                                    "Nature has provided us generously with
                                                 everything we need to remain in good
                                                                health"
                                                           Sebastian Kneipp
 Kneipp company founded in 1891.
 Father Kneipp was refounder of water therapy.
 His cure was based on 5 pillars of healthy living:

WATER         PLANTS         EXERCISE      NUTRITION       BALANCE
 LIFTEC CZ is distributing Kneipp brand since 1991.
 LIFTEC CZ sells KNEIPP brand across the market (Pharmacy, SPA, Health stores,
  Retail, e-shops, etc).
 LIFTEC CZ 2015 YoY sales growth was 23%.
 Now selling mainly to SPA

BRAND PHILIPS
 LIFTEC CZ is distributing inhalators, optichambers and thresholds for PHILIPS:
    Patented technology
    Fast and highly effective action in shorter timing
    High quality produts
 Distribution channel: pharmacy, alergology, pneumology, final consumers
    Products are fully paid by Health insurance

    Optichambers
    Inhalators
    Threshods

                                                             Detailed info in brand
                                                             presentation attached

LIFTEC CZ Go-To-Market Strategy

LIFTEC CZ INTRO 10 Go-To-Market STRATEGY

                  • PR Media Campaigns

      ATL         • Advertising
                  • Education – congresses
                  • ON – line, bloggers

                  • Customer Mkt. Tools
                  • IN store activities
      BTL         • E-education & e-learning
                  • ON- line
                  • Newly in 2016 - Newsletter

  To create Interest & Desire

PR campaigns in CZ & SK   In magazines

                                Liftec is publishing
                                PR, produts tip and
                                adverts in many
                                popular magazines
                                across wide target
                                groups in both CZ &
                                SK

PR, media print campaigns
Elmex Gelée® – registered OTC product
•  limited marketing tools due to legislation

PR, media print campaigns
POS

PR, media print campaigns

PR, media print campaigns

PR, media print campaigns

PR, media print campaigns   PHILIPS

LIFTEC CZ Innovations
 LIFTEC CZ is flexible in market research and novelty
  implementation in order to meet consumer and market
  needs

 2015:
 More than 20 new products in the range over past year
    2 novelties of 2015 became #2 and #3 in dm category od food supplements / among
     260 other products

 2016:
 The range of new products has been implemented in PL Liftea.
 New medical product in Dr. Bohm Med

Digital – e - marketing
 Modern tool to:
    Atract & Educate consumers, Promote & visualize products
    Highly effective with focused target groups

    Digital marketing – for professionals - new
       Oral care educational tool for professionals – dentists – long term program to
        increase dentists education level – guaranteed by authorities

    Digital marketing – for consumers – cooperation with bloggers - new
       Fashion
       Health care
    Cooperation with e-shops

DIGITAL marketing – for professionals
LIFTEC CZ - Our aim is sophisticated education
                                      ON-line courses for
                                      doctors
                                      ➢ Doctors get credits
                                      ➢ Program supported
                                        by authorities

Currently program under development

Blogs

Blogs

Blogs

Blogs

LIFTEC CZ – WEB - Zdravotní poradna.cz
                                          LIFTEC web sites and e-shop
                                          currently under reconstruction
                                          • Will be innovative and more up-
                                             to-date

LIFTEC CZ web sites „ Zdravotní
poradna“ offers:
• Education part divided by indications
• Novelty info
• Promo offers

LIFTEC CZ – WEB – pharma.liftec.cz

Sales team
 CZ:
  1 Sales Director                  KAM – cover following areas:
  2 KAMs (CZ&SK)                    • Retail market services,
                                     • Spa services
  1 Area Manager                    • Chains services
                                     • Centrally managed subjects
     8 Sales Representatives (SR)

 SK: (daughter company)
                                     SR – cover following areas:
  1 Sales Director                  • Pharmacy services /calls
                                     • Spa calls
  1 Area Manager                    • Health care shops
                                        services/calls
     5 Sales Representatives

Pharma team quality work

                                     Recomendation
                                       to patient or
                                        consumer

Distribution   Detailing   Display

                                         Product
                                        purchase

DATA & CRM & Information Systems
               • VISION accounting system

   SHIP_IN
                • CRM system
                • Direct sales – shipments
                  • Pharma wholesalers, retail partners, spas &
                    wellness

               • Phoenix data

   SELL_IN     • Distributors data
               • SPRINX CRM
               • SPRINX Pharmview

              • IMS pharma – shared data with CP -

  SELL_OUT
                GABA only
              • IMS pharma - shared by Apomedica
              • Retail scan – dm, Globus, etc

LIFTEC CRM in detail
                 • Input into system during the visit or straight
   TABLETS         after
                 • Easy, fast and effective
                                                                    ON_LINE

                 • Monitoring of visits process and call quality
Questionnaires   • LIFTEC CZ inputs all questionnaires into
                   system
                                                                    ON_LINE

                 • Recommendation assurances
  Monitoring     • SR calls
                 • Frequency, rating, coverage, etc
                                                                    ON_LINE

                 • Sales reports
  Reporting      • SR performance reports
                 • Wide range of analysing tools
                                                                    ON_LINE

MARKET OVERVIEW BY CHANNEL

PHARMA MARKET OVERVIEW
CZ:
 Cooperation with all 4 pharma wholesalers:
       Phoenix CZ, Alliance Healthcare, Pharmos and Via Pharma
 Total market pharmacy panel = 2850 pharmacies ( IMS), LIFTEC CZ directly covers
  more than 60% by 8 sales reperesentatives, the average in the country is around
  40%
       (+1x yearly visits of uncovered market)
 36% WSD are chains: 2 biggest Dr. Max (340 pharmacies) and BENU (170)
 30% Independent pharmacies and 24% associates pharmacies

SK:
 Direct cooperation with 3 pharma wholesalers:
       Phoenix Sk, Medard, Unipharma
 Total market pharmacy panel = 2150 pharmacies ( IMS), LIFTEC covers via
  daughter company 50% of the market by 4+1 Sales representatives.
 Strongest chains are Dr. Max Sk and Schneider.

Photos from pharmacies

Photos from pharmacies

Photos from pharmacies

Photos from pharmacies – independent

Pharma E-shops and on-line marketing
 We cooperate with the most important pharma e-shops in the country:
 www.lekarna.cz
  The biggest and oldest pharmacy-eshop - Belongs to Phoenix group
  1 mio visits/month
  25% YoY growth
  Approx. 500 000 000 CZK TO/Year in 2015
  Owns 55% of the pharma eshop market

 www.pilulka.cz
  Approx 2,5 years on the market, „younger but aggressively growing sister“ - triple
   digit
  800 000 visits/month
  Approx. 300 mld. CZK TO/Year in 2015

 www.drmax.cz

Pilulka.cz

         Seasonal

Retail channel
We directly cooperate with all major retail chains in the CZ:
 Dm drogerie (220 shops)
 Rossmann (110 shops)
 PK Solvent (Teta – czech national chain, around 600
  shops)
 Globus (15 Hypermarkets)
 Tesco
 Ahold
 MAKRO (Metro)

LIFTEC CZ successes at retail
                        •Supplier in Food supplements &
   #5/26                 Health care products at dm

   Product #2/264       • Liftec has 2 products leading the
                          category of food supplements in dm
   Product #3/264

                        •LIFTEC CZ has top selling products
 TOP selling products    in category at TETA drugs

Photos from retail

Photos from retail

Photos from retail

Photos from retail

Photos from retail

E-shops and on-line marketing
We cooperate with number of e-shops:
www.parfums.cz , currently renamed NOTINO
 #1 cosmetic & parfumery product e-shop
 #3 e-shop in country
 YoY growth +45%
www.krasa.cz + www.prozdravi.cz
 #2 cosmetic & parfumery product e-shop, health care e/shop
www.feedo.cz
 #1 baby e-shop
www.alza.cz
 #1 e-shop in country

HEALTH FOOD SHOPS
 CZ – panel of 2 000+ stores - approx. / rapid growing trend
 SK - panel of 1 000+ stores – approx
 PL – panel of 4 000 ? stores (estimate)
 Mainly under ownership, no chains

 Strong on-line business

Spa and wellness hotels
 Traditional Kneipp channel
    „Kneipp path“ = worldwide known water
     procedure
 LIFTEC CZ has long tradition in cooperating
  with spa & wellness hotels in CZ, we sell
  products for:
    Spa procedures
    Direct sales to consumers at receptions
        Popular with clients – to get some presents
         from spa
 Current challenge - we need professional
  packaging (5 kg or 10 kg bath salts, 1L or 5L
  massage oils)

NEW PROJECTs 2017
 SPA AND WELLNESS PROJECT
    LIFTEC to become a main supplier for Luhačovice and Jáchymov SPA
        Consumer daily usage goods
        Consumer gift sets
        SERVICES

 HEALTH CARE SHOPS PROJECT – B2B, B2C
    Currently under implementation- opening soon

 NATURAL COSMETICS
    Focus on young consumers, fresh and trendy packaging, modern image
    Focus on high quality products and healthy ingredients

 OTHER SPECIAL PROJECTS

LIFTEC CZ GLANCE SUMMARY
                  • LIFTEC CZ is flexible in employing right
Human Resources     people according to our needs

                  • LIFTEC CZ has free capacity in our own
  Warehouse         warehouse

                  • LIFTEC CZ is more than 25 years on the
   Experience       market

                  • LIFTEC CZ is proactively developing
    Success         brands into growing trends

                  • Liftec CZ insist on importancy of
   Education        educational backround of our products

Send your offers to address below:
LIFTEC CZ spol. s r.o.
Počernická 272/96
108 03 Praha 10

Mail: obchod@liftec.cz

Thank you!