Brazil Pharma

Bradesco CEO Conference - New York

November 2012

The Opportunity

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7.008.30 9.40 10.30 11.20 11.60

13.1014.80

17.2019.20

21.5023.60

26.40

30.20

36.00

43.00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Sales Performance in the Brazilian Pharmacy Retail Industry from 1996-2011 (R$ Billion)

Industry Performance A Growth and Accelerating History…

Source: IMS.

Drivers Micro Timing

Regional Brands Fragmented Formalization

Drivers Macro

Income Growth Population Aging Generics Drugs

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Brazil Pharma vs Competitors (2011)

Competitors Focus

Drugstores per region (2011)

More dense

Less dense

Market Growth - CAGR (2007-2011)

Geographic Concentration … still concentrated in the Southeast

There is low competition on the regions outside the Southeast.

Source: IMS.

The Company

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86

Brazil Pharma footprint and clusters

North 109

Northeast 244

Midwest 121

Southeast

South 207

REGIONS Owned stores

10

1

108 20

15

21

11

198

7

75

116

1

9

237 Owned stores

116 Owned stores

121 Owned stores

369 Franchises

207 Owned stores

05 Distribution centers

Footprint 1,050 Stores

89

Source: Brazil Pharma

National Footprint Largest drugstore chain outside the Southeast…

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Source: Brazil Pharma, Abrafarma ; Note: (1) Ranking by number of owned stores as of Dezember 31, 2011 considering the four largest Drugstore chains in Brazil; (2) n/a: Other chains do

not have operations in the region

Drugstore ranking per Region

Number of Stores 1

4o

2o

1o

Northeast

n/a (2)

3o

North

n/a (2)

n/a (2)

Southeast

n/a (2)

Mid-west

n/a (2)

South

n/a (2)

Strong Local Knowledge … With a leadership position in four out of five regions…

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Strong Organic Growth Capacity

Organic Growth (# owned stores)

Brazil Pharma Abrafarma

Branded Generics HPC

Profitable Sales Mix

(3Q12)

Geography: More Growth and Less Competition

(CAGR07’-11’)

Maturation of Owned Stores

(3Q12)

Brazil Pharma competitive advantages

Competitive Advantages … Taking benefits of this.

Source: Brazil Pharma and IMS.

333

90

95

109 54 681

2009 3Q12Openings 2011

Openings 9M12

Openings 2010

Openings 2009

14.2%

17.2%

13.7%

54.9%

Stores < 12 months

Stores > 12 < 24 months

Stores > 24 < 36 months

Stores > 36 months

64.9%28.5%

11.7%

37.1%

45.9%

17.0%

Performance

Since IPO

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Footprint at and 12 months later the IPO

663 Points of sale 302 Owned Stores

361 Franchises

Platform @ IPO Actual Platform

207 Owned stores

369 Franchises

237 Owned stores

121 Owned stores

116 Owned stores

1,050 Points of sale 681 Owned stores

369 Franchises

89 Owned stores

60 Owned stores

153 Owned stores

361 Franchises

(1) Sant’Ana’s Distribution Center caught fire on December 2011. A new distribution center was inaugurated on November, 2012 ; (2) Includes 11 stores acquired from Estrela

Galdino on April , 2012 and added to Sant’Ana’s store count in June 30, 2012.Therefore they generated no revenues in 9M12.

1

(1Q11) (3Q12)

Distribution Center

Owned stores

Franchises

Increasing Footprint Since IPO Strong delivery since the IPO…

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28.3 29.9 30.5 28.8 31.4 31.3

1Q11 2Q11 3Q11 1Q12 2Q12 3Q12

10.0%12.4%

8.6%

16.2%13.8% 15.1%

1Q11 2Q11 3Q11 1Q12 2Q12 3Q12

5.8%8.9%

6.1%

12.1%9.1% 7.8%

1Q11 2Q11 3Q11 1Q12 2Q12 3Q12

Strong historical sales growth and same-store sales (SSS)

Sales Profile

Sales Mix1

(% of Gross Revenues)

Average Ticket1

(R$)

(1) Proforma information, except when otherwise indicated.

Same-Store Sales1

(Total - %)

(Mature Stores - %)

31.6% 37.5% 36.5% 37.1%

47.5% 46.1% 46.4% 45.9%

21.0% 16.4% 17.1% 17.0%

2011 (Non-proforma)

1Q12 2Q12 3Q12

Non-Medicine Branded Generics

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Financial Highlights

Gross Profit and Gross Margin1

(R$ Million | % of Gross Revenues)

Adjusted Net Profit and Adjusted Net Margin1,3

(R$ Million | % of Gross Revenues)

Adjusted EBITDA and EBITDA Margin1,2

(R$ Million | % of Gross Revenues)

Gross Revenues¹

(R$ Million)

(1) As of September 30th, 2012, on a proforma basis; (2) Adjusted Ebitda - excludes non-recurring expenses ; (3) Adjusted Net Profit - excludes non-recurring expenses, brand and intangible

assets amortization and non-recurring IR & Social Contribution effect.

673.6 719.0 699.3 746.8 804.4

3Q11 4Q11 1Q12 2Q12 3Q12

211.3 226.8 211.0 224.5 247.1

31.4% 31.5% 30.2% 30.1% 30.7%

3Q11 4Q11 1Q12 2Q12 3Q12

44.0 43.6 36.9 46.3 52.3

6.5% 6.1%5.3%

6.2% 6.5%

3Q11 4Q11 1Q12 2Q12 3Q12

23.9 32.010.1

24.3 26.9

3.6% 4.4%

1.4%3.3% 3.3%

3Q11 4Q11 1Q12 2Q12 3Q12

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Incresing operational efficiency and stores productivity

Source : Brazil Pharma ; Notes: (1) Considers total stores and distribution centers employees ; (2) Considers total employees (store, distribution centers and administrative).

3.7 7.4

22.6 19.7

BRPH @ IPO (1Q11)

34,4 51.3

BRPH 3Q12

1.5 3.8

-13%

+100%

+153%

+49%

Store EBITDA / employee1

(R$ thousand)

# of store employees

per store

Sales per store / employee

(R$ thousand)

EBITDA / employee2

(R$ thousand)

Operational Performance Since IPO … not only in growth, but also on the performance

3.8 3.6 -5% # of administrative + distribution

center employees per store

Stores Performance

Administrative Performance

Focus on Integration

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Great regional companies into a Excellent National Company

2012 2013E 2014E 2016E2015E1945 1965 1975 1994

IPO

1994 2009 20111995

186 years of

History

Brazil Pharma History 186 accumulated years of experience…

Source: Brazil Pharma

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Dream

Mission

People

• To be the best Drug Store Chain in the country helping create a healthier world

• Provide health and well-being for our customers

• Create Long-term partnerships with our suppliers

• To have the best working climate to develop our talents

• To be profitable to our Shareholders

• Attitude to go beyond

• Etics in all we do

• Proud to belong

• Focus on results

• Meritocracy to recognize our talents

Source: Brazil Pharma

One Company, One Culture … becoming just one Company…

Our dream is what moves our People

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Holding

OperationsAdministrative

(SSC)Commercial

Corporate

#1 for Suppliers #1 for Customers #1 for Talents

Dis

tin

ct

Co

mp

an

ies

Un

iqu

eC

om

pa

ny

Corporate Structure … With a simple and aligned structure …

Source: Brazil Pharma

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Operationally Integrated … becoming 100% integrated

Operations Administrative (SSC) Commercial

Corporate

Joint negotiation

Team centralization

Continuos improvement

1

2

3

1. Platforms operate separately but with

strict Corporate guidelines;

2. Centralization of Procurement

department: unification of regional talents

into one single team;

3. Commercial intelligence: relationship

with the industry, sales mix improvement,

scale in campaigns, standardization of

DC’s and Logistics.

Management Team

Training and Regional

Leardeships

Continuos improvement

1

2

3

Mapping

Plugging-in

Continuos improvement

1

2

3

1. Management Team to monitor the

Operations’ Team of each regional platform:

Culture dissemination and performance

monitoring;

2. Training and formation of Regional

leaderships;

3. Centralized operation’s management.

1. Requirements understanding, drawing

the scope and processes;

2. Plug-in platforms into the SSC.

3. Through quality tools, in the quest for

constant improvement in its processes

and productivity gains.

Source: Brazil Pharma

Peers

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179.1

318.9

6.0%5.9%

BRPH RD

730.3

1,113.524.6%

20.6%

BRPH RD

909.4

1,432.430.6%

26.5%

BRPH RD

681

828

1 2

Brazil Pharma: Comparing With Peers¹ Solid track record, with improvements to come on maturation and integration

LTM 3Q12 EBITDA¹ and EBITDA Margin

(R$ Million, % of Gross Revenues

LTM 3Q12 Selling, General, Administrative and

Other Expenses¹ and % of Gross Revenue

(R$ Million | % of Gross Revenues)

LTM 3Q12 Gross Profit and Gross Margin

(R$ Million | % of Gross Revenues)

Stores (as of September 30th, 2012)

1- Adjusted figures according to each company’s criteria.

Farmais

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Why to expand the footprint?

# Stores by Sales

category

Average sales of

each store

R$

thousand/month

Total sales of

each category

R$ MM/year

Categories in which Own

BPRPH Platforms act

Potential categories for

FARMAIS

Addressable market

•10,062 stores

• Average turn-over

~R$ 140

thousand/month

• Total turn-over ~R$

1,4 Bi / month ~R$

16,8 Bi / year

11,172 41,052

Source: IMS internal bases, by distribution study. Data related to medications

Market size

64,281

Stores

Market size

R$ 37,437

million

Appendix Company’s Structure

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Shareholder’s Structure

BTG Pactual + FIPs Managers Operating Partners Free Float

35.7% 38.7% 19.6% 0.4%

100% 100% 100% 100% 100% 100%

Note: As of November, 2012

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Remaining Lock-up Period

Note : Rosario’ s familly does not have lock-up (1) After the 3 years lock-up shareholders have the right to sell all stake (2) Shareholder have the right to sell up to 1/3 of the shares every

year after the first anniversary (June, 2011).

2011 2012 2013 2014 2015 2016

Feb/2012 Feb/2015

Mar/2012 May/2015

Jun/2011 Jun/2014

Jun/2011 Jun/2014

1

2

1

1

Oct/2012

Shares: 2,250,974

% Shares: 0.9

Shares: 7,864,262

% Shares: 3.1

Shares: 15,000,000

% Shares: 5.9

Shares: 23,840,957

% Shares: 9.4

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Experienced Management

Logistic

Jadir Tavares

Procurement

Renato Stefanoni

Trade Marketing

Rovilson

Apolinário

Operations – N/NE

Ricardo

Kitamura

Operations – NE

(Bahia)

Wesley Barbosa

Operations - MW

Emílio Azevedo

Operations - S

Delmar

Raguzzoni

IT

Rogério Segala

SSC

Juliana Amaral

Commercial Integration

Carlos Dutra

Operations Integration

Rodrigo Silveira

Management – SSC Integration

Flávio Sanchez

Fronts of Integration

Experienced Management

Experience in retail / pharmaceutical industry

33 years 20 years 7 years

20 years

18 years 12 years 12 years 10 years 20 years 20 years

16 years 19 years

Appendix

Operations

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Trade Marketing Constantly working on improving consumption experience...

Non-renovated store

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Renovated store

Trade Marketing Constantly working on improving consumption experience...

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Logistics ...Operational excellence supporting sales and growth

New DC – Distrito Federal Situated in Brasília Services Midwest region; Storage area: 5,000 m²; Ceiling: 8 mts; 3.6 thousand pallet position; Production capacity of 200,000 units/day; Storage capacity: up to 13,000 SKU; Operates with WMS system.

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New DC – Bahia Situated in Camaçari

Logistics ...Operational excellence supporting sales and growth

Services Bahia state, may also service Sergipe state Storage area: 9,000 m²; Ceiling:12 mts; 6,000 pallet positions (reaching up to 8.6 thousand); Production capacity of 400,000 units/day; Storage capacity: up to 15,000 SKU; Operates with WMS system.