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Miniaturka

Letter of Chairman of the Supervisory Board of NEUCA SA

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Every year NEUCA has to pursue new objectives and overcome subsequent challenges. In 2014, there were exceptionally many challenges and the Company had to face them in a quite difficult market environment following the reduction of the official margin. Nevertheless, the Group increased net results and thanks to the acquisition of the leading wholesale distributor in the country significantly strengthened its market position.

Those successes make me extremely happy as the shareholder, and projects implemented by the Company last year give grounds to a lot of optimism and confidence when looking into the future of NEUCA. The acquisition of ACP PHARMA which the Company managed to close early last year provided the Group with solid foundations for a further growth in the coming years. A quick integration of the company in the Group structures demonstrated that the Group is capable to realise benefits from the acquisitions even faster than a few years ago.

It is also worth noting that during the intensive restructuring of ACP PHARMA the level of services for pharmacies not only not worsened but actually improved. From the point of view of the founder of the Group, I can say that the ever-increasing customer satisfaction and the market position stronger every year prove that the Company's development direction set many years ago is the most appropriate. Last year, investors received firm evidence that our philosophy of not competing with independent pharmacies is aptly adapted to prevailing market trends. The Group's mission focused on providing a better future for all independent pharmacies in Poland plays an important role not only in building the Company's position, but also favourably impacts the situation on the market.
The last year events show that the Company's Board of Directors has plenty of interesting concepts for the further development. So far, investors got used to the Company's operations in the segment of its own products (Pharmacist Brand). A few years ago, when deciding whether to expand into this area, we were the pioneers because none of the European distributors without its own pharmacies chose to launch its own products. Today NEUCA is a showcase example that these activities bring measurable profits.

I believe that with the next project which is to invest in outpatient care clinics we will hit the bull's eye too. I also look forward with interest to the first steps of the Group in such areas as telemedicine and clinical trials. I am convinced that our strong position in the wholesale distribution of pharmaceuticals will allow to build effective synergies with other areas of the health care market.

Thanks to attractive prospects of the Company, as an investor I have long-term plans related to my involvement in NEUCA. I believe that continuously improving results will contribute to a lasting growth in the Company's value. My confidence in the Company relies on a lot of trust to the Board of Directors which proved not once its credibility on the capital market.

I hope that this year we will be able to pleasantly surprise investors not only with good results but also with new prospective development directions.

Kazimierz Herba
Chairman of the Supervisory Board of NEUCA SA