Corporate Dossier

Table of contents

1. Overview 2. Our products 3. R&D Commitment 4. Awards 5. Corporate Social Responsibility 6. Foreign Markets 7. Our Staff 8. Distribution 9. Medical Visits 10. Contact information

Overview

Laboratorios Actafarma was founded in 1997 by two partners with over 15 years of experience in the pharmaceutical industry. In barely ten years, it has become one of Spains leading self-healthcare laboratories. Laboratorios Actafarma is a dynamic, innovative and 100% Spanish-owned company in the lifestyle-pharma sector. It develops and markets products aimed at solving our greatest concern: improving the quality of life and the health of our customers. As a pioneer in the research and development of functional foods, Actafarmas policy has always been innovation in OTC products. The company currently has considerable R&D agreements with centers like the CSIC, as well as with leading universities in Spain and abroad. Our mission: To have a worldwide presence and to, day by day, make Actafarma the most international laboratory for self-healthcare needs, one based on ethical and professional principles.

Our values: keys to our success Product development Integrity Trust Investment in R&D Leadership Creativity High-quality production Strategic marketing Teamwork Commitment

Actafarma: a sustainable business model At Actafarma we believe in research, quality production, in having the trust of pharmacists and in customer satisfaction. This clearly structured business model, oriented toward sustainable growth, is the basis for our companys success. At Actafarma were thinking of you and your well-being. We love to take care of you.

Our Products

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At Actafarma we know how important it is to stay healthy. That is why we are committed to innovative and quality pharmaceutical products that are safe, efficient and specifically developed for every need. From our weight control, hair care and cellular anti-aging products to our digestive aids and innovative dermo-cosmetic formulations, all of our product lines are indicative of the effort we are making to be Spains leading self-healthcare laboratory. In 2007,Actafarma marketed 12 products. It now has 37. Its commitment to innovation translates into 4 or 5 product launches a year. Among its signature products are Obegrass, a leading weightloss solution that has been on the market for 10 years, and Revidox, which was awarded one of 2009s best and most innovative ideas and recognized as the best and most innovative healthcare product in 2010. 10 PRODUCT LINES AND 22 BRANDS ANTI-AGING LINE, NUTRACEUTICAL LINE, JOINT-CARE LINE, DIGESTIVE AID LINE, SOLAR LINE, AQUARETICS LINE, HAIR CARE LINE, WOMENS CARE LINE, DEFENSES LINE AND REST LINE .

R&D Commitment

Actafarma devotes a significant percentage of its budget to new product research and development at its R&D Department, which consists of a team of professional pharmaceutical experts.

Production
Actafarmas commitment is present from the moment the future product is conceived with the selection of the raw materials from which to extract the active ingredients in its formulations. In the manufacturing process, it cooperates with major national and international suppliers, leaders in their sector, and whose raw materials have been subjected to rigorous safety checks to ensure that their properties remain intact. Actafarma also has partnership agreements with prestigious international institutions like the CSIC. All of our products are made using high-technology equipment and are carefully designed to provide the highest levels of quality. Quality Policy Laboratorios Actafarma, an ISO 9001-certified company, guarantees compliance with its internal quality system, which involves: Validation of manufacturing processes. Strict safety controls throughout the production process. Verification of and compliance with international quality standards through the use of analytical methods. Traceability. All of our products have a National Code* and are also registered in Europe.
*The National Parapharmacy Code is a logistical code issued by the General Council of the Association of Pharmacists.

Awards

Innovation is one of the pillars of the business world; specifically, in the nutraceutical industry, it is at the heart of every product. Without research there are no new products, and without new products, there is no innovation. Actafarma was the first laboratory to commit to functional foods by subjecting nutritional supplements to the same quality processes as medicines, but without their undesired side effects.

After just ten years of activity, Laboratorios Actafarma is starting to reap the benefits of its efforts and of its rigorous scientific endeavors. In 2011 it received three awards with one common theme: innovation.

Award for one of the Best 100 Ideas in 2009. Most innovative product in 2010: Healthcare category. Award for the Province of Madrids most innovative company in 2010. Award for the most innovative company in 2010.

Corporate Social Responsibility

For Actafarma, CSR is a model for management as a whole, not just for projects or for specific, isolated actions. In our view this industry has a long road ahead, and we hope that this potential helps to advance both society and companies, especially SMEs. We believe that CSR must be approached voluntarily, which is why we support government efforts to actively push and promote this practice. Today, we are collaborating with cultural and childrens agencies, in addition to complying with all of the environmental regulations involved in our production processes. Actafarmas commitment is evident in its support of renowned cultural institutions like the Wagner Society of Madrid, which furthers the careers of young national and international talents. It also partners with the Antena 3 Foundation to help hospitalized children, and with the Isabel Gemio Foundation for research on muscular dystrophies and other rare diseases, which is currently engaged in four research projects in Spains finest hospitals. Let us not forget something essential truthfully conveying the effectiveness of our products. All of our advertising is approved by Spains self-regulatory agency, Autocontrol de la Publicidad. Our idea is to participate in creating the society of the future. We think we can contribute to making the society of wellbeing a reality.

At Actafarma, we also care for those who need care.

Our Staff

With the same energy and dreams with which it started 13 years ago, Laboratorios Actafarma has opted to expand its human resources, the commitment, talent, dedication and efforts of which have allowed us to solidify our success in the lifestyle-pharma sector year after year. One of Actafarmas commitments is to have within its team professionals with a broad background in the sector. Since 2007, departments have been created charged with handling areas such as Marketing, Customer Service, Communications and, more recently, Exports and a Medical Division. The goal of the laboratory is to continue to offer quality jobs with promising futures, with promotions from within as one of its priorities. Whenever a new hire becomes part of this exciting project, the company grows, and everyone grows.

2007 7 Empleados

2011 55 Empleados

Actafarma invests heavily in the media, with 25% of its turnover devoted to direct marketing and communications campaigns, to training activities and to conferences involving Pharmaceutical Associations, as well as to maintaining a constant dialogue with its consumers through various channels: a call center (which receives 4,000 calls a month), a website and internet forums. The range of media outlets spanned is impressive: national TV, radio stations, press At the heart of Laboratorios Actafarmas campaigns are opinion makers with great professional reputations, who naturally satisfy all of Autocontrol de la Publicidads requirements, thus promoting the use of honest, truthful and socially responsible advertising.
2007 1.500.000 2011 3.400.000

Foreign Countries

Actafarmas experience in exports goes back to the year 1998, when it exported its first internally developed product, Lidersoft, to 14 countries.

The successful launch in April 2009 of Revidox, which placed this product among the top three in sales that year in the sector, was the catalyst that propelled Actafarma to enter into numerous distribution agreements with EU countries.
Likewise, since the year 2000 Actafarma has been present internationally in countries like Italy with other products, such as Obegrass, Cofilac, Ritenil and Revidox, which sold over 300,000 units since it was launched internationally. This internationalization process continued in 2010, a year that saw the signing of marketing agreements in Portugal, Russia, Belarus and Ukraine, as well as in South and Central America (Venezuela, Colombia, Argentina, Chile, Dominican Republic, Peru, Bolivia and Mexico), where its introduction is scheduled for 2011. This is the clearest sign that Laboratorios Actafarma is undergoing a period of growth and expansion.

Financial Data

Since 2007, Actafarma has grown spectacularly at every level. It has increased its staff, its product offerings, it has expanded its facilities and added two new departments to its corporate structure.

This growth model, sustained through the reinvestment of profits, has given Actafarma a solid structure and a high degree of financial independence.
Clients The number of clients has grown substantially by 900 % to be exact, from 12 in 2007 (distributors, wholesalers and pharmacies in department stores like El Corte Ingls) to over 7,500 direct clients in 2011.

2007 12 Clients

2011 7.500 Clients

Turnover The turnover data demonstrate without any doubt how the right approach, the tenacity and the efforts of recent years have, as shown below, increased our turnover rate by 450 %, transforming Actafarma into one of Spains fastest growing pharmaceutical companies.

2007 5.000.000

2008 7.000.000

2009 16.000.000

2010 16.000.000

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Distribution

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Actafarma has two branches at its headquarters, situated in Madrid (Spain), totaling over 5,000 m2 of office and warehouse space and common areas. In 2008, it bought a warehouse from which to distribute product orders. This warehouse currently handles over 300 orders a day, a figure that rises upwards of 6,000 transactions a month during the busiest periods.

Commercial network This increase in clientele is due to the gradual creation and establishment of a commercial network throughout Spain:

2007 x

2008 15

2009 23 Aragn Pas Vasco CYL Cantabria Asturias Galicia

2010 28

2011 30

Madrid Levante Catalua

Andaluca Baleares

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Medical Division

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In 2011, Actafarma launched a new product distribution division to conduct medical visits to medical specialists. With the launch of Movial in March of this same year, Actafarma is making a breakthrough firstly by starting with a new joint-care product line, and secondly by striving to have the quality of its products, leaders in the OTC market, recognized as aiding the treatments prescribed by healthcare professionals. As an integral part of its CSR activity, Actafarma has developed materials so that patients with this type of ailment (it is estimated that one in three Spaniards go to the doctor due to joint problems) can learn more about their pathologies, how to treat them and, above all, how to prevent them. Among its initiatives in this area are the creation of expert working groups, compilation of clinical cases, presentation of scientific studies on the efficacy of this product, guides to provide training to pharmacists on healthy joints, etc. This new medical distribution division was launched in late 2011 in the province of Madrid, and is expected to introduce Movial to 300 specialists over a four-month period.

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Contact Information

3. Plan de Comunicacin
If you want more information about the activities of Laboratorios Actafarma, you can contact us at the following address: Laboratorios Actafarma Avda de Monteclaro 10, 28223 Pozuelo de Alarcn, Madrid. Telephone: 91.351.14.56
actafarma@actafarma.com

www.actafarma.com Me encanta cuidarme @tecuidamos

President/Founder: D. Jose Antonio Garbayo. Presiedent/Founder: Dr. Pedro Tocabens. Management Team CEO: Toms Romero. tomas@actafarma.com Financial Director: Flor Martnez. flor@actafarma.com Technical Dept./R&D: Laura Alvarez. laura.alvarez@actafarma.com Foreign Markets: Antonio Temes. atemes@actafarma.com Marketing: Mara Vicario. maria@actafarma.com Communicati on/Advertising: Cristina Carpintero. alejandra@actafarma.com Key Account Manager: Carmen Robles. carmen@actafarma.com

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