Brazil Pharma

BTG Pactual LatAm CEO Conference - New York

October 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 104

Northeast 242

Midwest 118

Southeast

South 201

REGIONS Owned stores

10

1

103 20

15

19

10

193

7

75

114

1

8

232 Owned stores

114 Owned stores

118 Owned stores

352 Franchises

201 Owned stores

05 Distribution centers

Footprint 1.017 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

(2Q12)

Geography: More Growth and Less Competition

(CAGR07’-11’)

Maturation of Owned Stores

(2Q12)

Brazil Pharma competitive advantages

Competitive Advantages … Taking benefits of this.

Source: Brazil Pharma and IMS

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

201 Owned stores

352 Franchises

232 Owned stores

118 Owned stores

114 Owned stores

1,017 Points of sale 665 Owned stores

352 Franchises

89 Owned stores

60 Owned stores

153 Owned stores

361 Franchises

(1) Sant’Ana’s Distribution Center suffered a fire on December 2011. A new distribution center will be inaugurated in the second half of 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 2Q12.

1

(1Q11) (2Q12)

Distribution Center

Owned stores

Franchises

Increasing Footprint Since IPO Strong delivery since the IPO…

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Incresing operational efficiency and stores productivity

Notes: (1) Considers total stores and distribution centers employees.

(2) Considers total employees (store, distribution centers and administrative).

3,7 6,4

22,6 20,4

BRPH @ IPO (1Q11)

34,4 54,9

BRPH 2Q12

1,5 3,0

-10%

+74%

+98%

+60%

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 3,5 -8% # of administrative + distribution

center employees per store

Stores Performance

Administrative Performance

Source: Brazil Pharma

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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Source: Brazil Pharma

One Company, One Culture … becoming just one Company…

Our dream is what moves our People

Dream

Mission

People

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

• Provide health and well-being for our customers

• Create Long-term partnerships with our suppliers

• To be 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

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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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171

306

6.0%5.9%

1 2

703

1,060

24.8%20.5%

1 2

874

1,36730.8%

26.4%

1 2

665

807

1 2

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

LTM 2Q12 EBITDA¹ and EBITDA Margin

(R$ million, % of Gross Revenues

LTM 2Q12 Selling, General, Administrative and

Other Expenses¹ and % of Gross Revenue

(R$ million, % of Gross Revenues)

LTM 2Q12 Gross Profit and Gross Margin

(R$ million, % of Gross Revenues)

Stores (as of June 30th, 2012)

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

1

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% 39.4% 24.5% 0.4%

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

Note: Considering 15 millions shares to be issued from Sant’ana’s incorporation.

Appendix

Operations

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Non-renovated store

Trade Marketing Constantly working on improving consumption experience...

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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 at 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.