Glossary

Abrafarma
Brazilian Pharmacy and Drugstore Networks Association.

Anvisa
National Health Surveillance Agency.

B3
B3 S.A. – Brasil, Bolsa, Balcão. Stock exchange where Company shares are traded under the ticker symbols PNVL3 (common shares) and PNVL4 (preferred shares).

CAGR: Compound Annual Growth Rate. Average growth rate over a number of years.

CVM
Brazilian Securities Commission.

EBITDA

Earnings Before Interest, Taxes, Depreciation and Amortization. It is a non-accounting measure disclosed by the Company pursuant to CVM Instruction 527 of October 4, 2012 (“CVM Instruction 527/12”), calculated by taking earnings before interest and taxes and adding back depreciation and amortization.

IFRS 16

IFRS 16 (or CPC 06 (R2)) refers to leasing transactions and outlines the principles for recognizing, measuring, presenting and evidencing leases. It required lessees to book all leases under a single model in the balance sheet, similarly to the way that financial leases are booked according to IAS 17. More details can be found in our audited financial statements.

Street Stores
A concept that excludes stores located in shopping malls, universities, gas stations or hospitals from the comparison base.

High-Cost Drugs

IThese are medicines to treat certain acute or rare conditions which, due to their prices, are not available over the counter in drugstores. The purchaser has to submit a special order so that the Company contacts the supplier to obtain the product in the quantity requested.

Brand Name Drugs
Drugs identified by doctors and patients by their trade name.

Generic Drugs: Drugs with the same active substance, pharmaceutical form, dosage and indication as the original brand name drug. They may differ only in size and shape, period of validity, packaging, labeling, excipients, and vehicles.

Similar Medicinal Products

They contain the same active ingredient(s) in the same concentration, pharmaceutical form, administration method, dosage and therapeutic indication, preventive or diagnostic, as the corresponding Reference Drug.

MSSS – Mature Same-Store Sales
Growth occurring in stores existing for more than three years.

NPS (Net Promoter Score)

A method for measuring the level of satisfaction and loyalty of customers to a firm, product or service. It is based on a single question: “On a scale from 0 to 10, how likely are you to recommend our company or product to a friend or colleague?” Favorable marks (9 and 10) are reduced by the marks given by detractors (6 or less). 7 and 8 are considered neutral and do not influence the result.

Omnichannel
All sales made through one of the company’s various channels (telephone, online, etc.) other than stores, even if collected from stores.

OTC (over the counter) Products: Products that can be sold without a doctor’s prescription. Painkillers, vitamins, antacids are some examples of this type of product.

Same-Store Sales: An indicator that describes changes in sales for the same stores over the same period. It covers stores in operation for at least 12 months, which have not been closed temporarily for periods of more than seven consecutive days, and includes online sales.