FORM 20-F Grupo Casa Saba, S.A.B. de C.V.

Table of Contents
In 2011, we continued to develop, launch and promote new products. To date, our private label offerings include personal care and hygiene products as well as
shampoos, deodorants, body lotions and baby care items such as accessories, diapers and wipes. During the year, we also launched a new line of baby formulas in various countries.
In addition to our private label brands, the Company is also focused on offering high quality, international name brands that are available exclusively in our stores.
Currently, we offers brands such as “GNC” (a leader in the vitamin and mineral category); Prudence (condoms); “Sally Hansen/La Cross” (U.S. market leader in products for the
treatment and care of hands and nails); “ROC” (internationally recognized dermo-cosmetics that include anti-aging and anti-cellulite products), “John Frieda” (a leader in innovative hair
care products in the U.S.); “Lumene” (a brand that is the first of its kind to develop an innovative line of cosmetics and skin care items); “Phyto” (a French capillary dermo-cosmetic);
Jergens (a U.S. brand with over a century of experience in the skin care industry); Scunci (the market leader in hair accessories); and Bonawell, Igora and Palette de Schwarzkopf (all of
which are a part of Henkel’s product portfolio). We expect that the increased variety of name-brand products will make us an even more attractive option for our customers and help
foster customer loyalty.
items.
In the Distribution division, we are also working to increase the number of generic products in our catalog in order to meet our clients’ growing demand for these
In recent years, our Group has also noted a potential opportunity to increase its participation in the government sector. In 2011, we secured several projects with state
and federal government institutions, including Petroleos de México (PEMEX).
To better serve several of our government customers, this year we developed a complex on-line order processing applications and data sharing services that utilize the
latest in web-service technology. These solutions allow our customers to manage their inventory more efficiently and to process orders faster, which improves their product availability
at the sales counter. We believe that this innovative new software solution may serve as a valuable tool for helping to secure contracts with other governmental entities in the future,
given that it is customizable and completely browser-based, with no additional hardware or software needed to run the programs.
Maintaining Continuous Contact with Clients and Suppliers
We are well aware that continuous contact with our clients and a solid knowledge of the markets in which we operate are key to finding new ways to increase our
sales and further develop our core pharmaceutical business. Therefore, in 2011, we continued to focus our efforts on working closely with our clients and suppliers in order to identify
their specific needs and customize our services to meet their requirements, including improving our product catalog. All of these efforts were accomplished under our minimum
profitability parameters. In terms of our suppliers, we worked closely with them to determine the market’s needs and to create innovative commercial schemes.
Analyzing the Efficiency of Our Distribution Centers and Implementing IT Solutions that Increase Our Operational Efficiency
At Grupo Casa Saba we manage over 15,000 products, which requires a high level of efficiency and systematization in terms of order fulfillment and delivery. Grupo
Casa Saba analyzes the geographic location and efficiency of its distribution centers in order to identify facilities that are not operating at maximum efficiency levels. To assure the
optimal operation of its infrastructure and distribution network, Grupo Casa Saba continuously renews its distribution fleet and invests in upgrading its logistics and information
systems.
The investments made since 2006 in terms of the IBM hardware and middleware platform have been highly beneficial for the Company. Over the course of the last two
years, our Total Cost of Ownership, or the total cost of administering our IT processes, has dropped, despite an increase in the number of transactions processed. During this time, our
applications have become more complex, thus requiring more computing power, which has been successfully supplied by the IBM platform.
In 2009, our IT efforts were focused primarily on general computer and communication systems updates and maintenance, including the purchase of new computer
equipment, the replacement of critical servers for our central site with state-of-the-art hardware and the implementation of a digital voice and data network in all of our distribution
centers as well as our corporate headquarters. We believe that these upgrades helped reduce operating costs and improved system availability.
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