OTCPharm H1/Q2 sales results

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1 OTCPharm H1/Q2 sales results Olga Mednikova, CEO Irina Bakhturina, Head of Investor Relations August, 2014

2 5 Jul 2013 Pharmstandard BoD convened two Extraordinary Shareholders Meetings ( ESMs ) on spin-off OTCPharm Spin-off Timeline OTCPharm spin-off has been completed in December Starting with April 2014 OTCPharm has become fully operational and started preparation of its own financial reporting. 11 Nov 11 Dec 2013 Pharmstandard acquires shares from shareholders that applied for buyout Completed Steps 16 Dec 2013 April 2014 Documents on OTCPharm is fully operational OTCPharm OTCPharm obtains registration are filed pharmaceutical license with tax authorities Certain assets, medicine registration certificates and employees are transferred from Pharmstandard to OTCPharm Execution of the product manufacturing contracts Launch of own financial reporting 20 Aug 2014 Prospectus registered Next Steps October-November 2014 Listing of ordinary shares Jul 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 Aug 14 Sep 14 Oct Sep 2013 ESM discussed and voted on spin-off Pharmstandard gained full support of voting shareholders 95% votes were in favor of the spin-off 11 Nov 2013 Second publication of spin-off approval by ESM Period for Pharmstandard shareholders to apply for buy-back ends 23 Dec 2013 Registration of OTCPharm Issue of the OTCPharm shares Shares proportionally distributed to shareholders 30 Jan Mar 2014 Record of IP Ordinary shares were transfer from distributed by BNYM to all Pharmstandard to eligible GDR holders on OTCPharm and of request. GDR holders the license who did not request agreements ordinary shares are entitled to cash proceeds from sale of OTCPharm shares

3 Russia Pharma Market Update In 2013, the Russian pharmaceutical market reached US$25.8bn showing a 7.8% y-o-y growth in value terms, while Russian commercial OTC market grew by 12.2% y-o-y reaching US$10.1bn. Market Overview In 2013 Russian pharmaceutical market grew by 7.8% y-o-y in value terms to RUB822bn (US$25.8bn) In volume terms, the market declined by 3.6% y-o-y to c. 5.3bn packages Commercial OTC market grew by 12.2% y-o-y in 2013 outpacing the growth of the overall market The average retail pack price in the commercial segment have increased by 14.7% in RUB terms to RUB102.6 The structure of the market is shifting towards more expensive and more effective drugs, while the share of cheaper drugs (less than RUB50 per pack) continue to decline Russian Pharmaceutical Market Dynamics (US$ bn) Russian Pharmaceutical Market Structure (by value, 2013) Hospital 15% Reimbursement 6% Commercial 79% OTC 54% OTCPharm s Leadership Position on Russian OTC Market (by value, 2013) RX 46% 8,3% 5,3% 4,9% 18,6 21,4 23,9 25,8 4,3% 7,0 8,0 9,2 10, Commercial OTC Market Russian Pharmaceutical Market 2,7% 3,3% 3,2% Source: IMS Health, Company data, public sources. 2,6%

4 Russia Pharma Market Update (Cont d) Despite the absence of cold season in 1Q2014, OTCPharm maintains leading positions in OTC segment. Key Players Sales Dynamics (RUB bn) Key Players Market Share Dynamics 30,0 9,0% 8,0% 25,0 7,0% 20,0 6,0% 15,0 5,0% 4,0% 10,0 3,0% 5,0 2,0% 0, ,0% Novartis (Sandoz) OTCPharm (w/o Arbidol) Sanofi-Aventis Bayer OTCPharm Stada Menarini Teva J&J Nycomed / Takeda Source: IMS Health, Company data, public sources.

5 OTCPharm Market Share Overview OTCPharm preserves leadership position across the key segments of Russian pharma market, even though Arbidol performance in 1Q 2014 had been affected by the lack of cold season (as compared to 1Q 2013). Anti-cold and Flu Segment 18,8% 16,5% 11,8% 13,1% 13,9% 11,2% 11,3% 11,2% 8,6% 7,0% 7,2% 6,8% 4,3% 4,5% 0,6% 0,8% Total OTCPharm Kagocel (Nearmedik Plus) Arbidol Theraflu (Novartis) Anaferon (Materia Medica) Oscillococcinum (Boiron) Amixin Maxycold Analgesics Segment 33,3% 34,8% 27,5% 28,4% 21,2% 20,1% 7,3% 6,9% 3,5% 4,1% 3,5% 2,8% 3,5% 2,8% 2,3% 2,3% Total OTCPharm Pentalgin Nurofen (Reckitt Benckiser) Tempalgin (Sopharma) Next Alka-Seltzer (Bayer) Solpadeine (GlaxoSmithKline) Ascophenum-P Source: IMS Health, Company data. Leadership Brand High-growth Brand

6 OTCPharm Market Share Overview (Cont d) OTCPharm preserves leadership position across the key segments of Russian pharma market. Fungal Infections Segment Antidiarrhoeal Micro-Organisms Segment 39,5% 42,0% 31,1% 30,4% 46,0% 42,1% 7,2% 6,7% 6,1% 6,1% 3,5% 3,5% 16,9% 19,7% 15,0% 14,8% 8,2% 9,7% 4,5% 3,7% Flucostat Diflucan (Pfizer) Mycosyst (Gedeon Richter) Fluconazole (Teva) Tranquillisers, Hypnotic 2013 / Sedatives 6M 2014 Segment Fluconazole (Stada) Linex (Sandoz) Bifiform (Pfizer) Multivitamins Segment Hylak Forte (Teva) Acipol Bifidumbacterin (Partner) 19,1% 19,5% 12,0% 11,1% 10,0% 9,9% 9,3% 9,0% 9,9% 8,6% 25,7% 26,5% 18,8% 18,0% 18,7% 18,0% 12,9% 13,8% 8,8% 8,6% Aphobazol Novo-Passit (Teva) Persen (Sandoz) Valocordin (Meuselbach) Corvalol (Farma Start) Vitrum (Unipharm USA) Supradyn (Bayer) Complivit Elevit Pronatal (Bayer) Multi-tabs (Pfizer) Expectorants Segment Other Mineral Supplements Segment 16,5% 15,7% 16,1% 14,8% 74,8% 74,7% 7,7% 7,3% 7,6% 6,8% 4,2% 3,8% 0,5% 0,9% 11,6% 13,0% 12,2% 11,0% Lazolvan (Boehringer Ingelheim) Source: Acc (Novartis) IMS Health, Company data. Sinecod (Novartis) Ambrobene (Teva) Codelac Broncho Codelac Neo Magne B6 (Sanofi) Magnelis B6 Magnerot (Worwag) Leadership Brand High-growth Brand

7 1Q and 6M 2014 Trading Update: Revenue Dynamics OTCPharm decrease of revenue in 1Q14 is mainly attributed to the anti-cold & flu portfolio which suffered a significant drop due to unprecedented absence of pandemia for almost 2 seasons in a row. Revenue Dynamics (RUB ths) Brand 1Q 2013PF 1Q 2014 %, change 2Q 2013PF 2Q 2014 %, change 1H 2013PF 1H 2014 %, change Amixin (32%) % (14%) Arbidol (58%) (1%) (53%) Asvitol (14%) % (1%) Ascophenum-P (1%) % % Aphobazolum (4%) % % Acipol % % % Aerovit % % % Klarisens % % % Codelac (54%) % (15%) Complivit (21%) % (9%) Lactazar % % % Lactonorm % % % Magnelis B (9%) % % Maxycold % % % Next (49%) % % Neosmectin (20%) (20%) (20%) Nitrocor % (37%) (18%) Noopept (11%) % % Pentalgin (3%) % % Rinostop % % % Selmevit (9%) % % Spasmol (36%) (35%) (36%) Termicon (39%) % (7%) Flucostat % % % Ciklovita % % % Cinocap % % % TPP Taufon % % % Lactofiltrum % % % Micrazim % % % Filtrum-STI % % % TOTAL (16%) % % Source: Company data. Revenue Dynamics (RUB bn) 1Q 2014 vs. 1Q 2013PF Q 2013PF 1Q Q 2014 vs. 2Q 2013PF 3.4 2Q 2013PF 2Q H 2014 vs. 1H 2013PF H 2013PF 1H 2014 Note: (1) OTCPharm executes marketing and promotion of the following brands: Taufon, Lactofiltrum, Micrazim and Filtrum-STI. 8

8 Contacts Address: Likhachevsky proezd 5B, Dolgoprudny, Moscow Region, , Russia Telephone: (495) /02 OTCPharm H1/Q2 sales results