Brazil Pharma

BTG Pactual XIV CEO Conference

Institutional Presentation

February 6, 2013

André Sá

CEO

Company

Overview

Santana store. Salvador, BA

The Opportunity

3

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7,00 8,30 9,40 10,30 11,20 11,6013,10

14,8017,30

19,2021,50

23,6026,40

30,20

36,20

42,90

49,60

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: IMS Health.

Drivers Micro Momentum

Regional

Brands

Fragmented

Market

Sector

Formalization

Drivers Macro

Income

Growth

Population

Aging

Generic

Medicines

CAGR ‘08-12

Medicine: 13.5%

Generics: 24.9%

Branded: 11.1%

Sales performance in the Brazilian pharmaceutical market from 1996-2011 (R$ Billion)

Industry Performance A Growth and Accelerating History

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Source: BofAML Global Research, ANS

Market Drivers Healthcare Plan Penetration

32 34 35 37 39 41 43 45 47 50 52 54 56 58 59 60 60 60 18%

23% 27% 28%

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

e

20

13

e

20

14

e

20

15

e

20

16

e

20

17

e

20

18

e

20

19

e

20

20

e

Healthcare Plan Beneficiaries Penetration to total population (RHS)

35% 42% 50% 60% 66% 67% 69% 70% 72% 72% 73% 18%

21% 23%

24% 25% 24% 24% 23% 22% 22% 21%

47% 37% 27% 16% 10% 8% 7% 7% 6% 6% 6%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

Group plans Individual Plans Not Informed

Healthcare plan beneficiaries are increasing at a 5% CAGR (2003 - 2013) ($ million)

Corporate plans already represent 73% share Decrease in unemployment drives the increase in group plans ($ million)

16 19 22 24 25 27 29 31 32

12,9% 12,4% 11,5%

9,9% 10,0% 9,3% 7,9% 8,1% 6,7%

2002 2003 2004 2005 2006 2007 2008 2009 2010

Number of group plans beneficiaries (lHS)

Unemployment (RHS)

5

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100 127 197 294

407

618

969

Health care spending per age group (100 basis)

27% 55% 49%

38% 52%

57%

Source: BofAML Global Research

The Brazilian population older than 60, the segment with the highest medication expenditure, is expected to increase from 10% of the population in 2010 to 20% by 2030

Market Drivers Brazil median age to match European countries by 2030

-20% -10% 0% 10% 20%

0 - 9

10 - 19

20 - 29

30 - 39

40 - 49

50 - 59

60 - 69

70 - 79

80+

Europe 2010 Brazil 2030-20% -10% 0% 10% 20%

0 - 9

10 - 19

20 - 29

30 - 39

40 - 49

50 - 59

60 - 69

70 - 79

80+

Europe 2010 Brazil 2010

People over 65 years old spend more than 55% of total expenditures

23

%

16

%

17

%

13

%

8%

8%

7%

5%

29

%

19

%

19

%

16

%

12

%

9%

10

%

6%

Japan Europe U.K. U.S. China Global Brazil India

2010 2020

Percentage of population with more than 65 years to total population

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Note: 1. Total brand market sales estimates represent annualized sales; includes all expected generic launches in total brand numbers with key launches highlighted; assumes 6 months pediatric extension on all launches; forward looking information assumes no “at risk” launches ; 2. The timing of generic introductions and number of suppliers can be impacted by a variety of factors, including legal challenges, regulatory issues and manufacturing capacity. Sources: IMS Health; CVS research estimates.

Market Drivers Generics continue to represent a significant opportunity in the coming years

20,4

35,5

11,2

16,8

13,3

2011 2012E 2013E 2014E 2015E

Total Brand Market Sales ( $ Bn)

Lipitor Zyprexa

Levaquin Concerta Taxotere

Plavix Singulair Seroquel Lexapro

Actos Diovan

HCT Eloxatin Geodon

Tricor Provigil

Cymbalta Diovan Niaspan

Nexium Copaxone Celebrex

Abilify Namenda

Lovaza Androgel

$ 97 Bn in patents overdue

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Source: Itaú BBA Research.

Great opportunity for consolidation

Independents losing market-share for large drugstore chains

Market share by channel – number of stores, 2011 (%)

Top 5 retail chains market share

Medicine revenues, pharmaceutical market (%)

Market Drivers Fragmented market. Opportunity to capture share of independent chains

62.0% 59.9% 55.1% 51.5% 49.1% 48.3% 47.9%

16.1% 17.0% 20.1% 22.6% 22.2% 22.7%

17.4%

5.5% 6.3% 6.5% 6.2% 6.5% 6.4% 5.5%

16.4% 16.8% 18.3% 19.7% 22.2% 22.6% 29.2%

2005 2006 2007 2008 2009 2010 2011

92.3% 91.7% 91.2% 90.8% 90.6% 89.3%

88.0%

5.1% 5.5% 5.8% 6.0% 6.0% 6.8%

6.6%

0.7% 0.8% 0.9% 1.0% 1.0% 1.2%

0.9%

1.9% 2.0% 2.1% 2.2% 2.4% 2.7% 4.5%

2005 2006 2007 2008 2009 2010 2011

29.2% 34.0%

66.0% 78.0%

70.8% 66.0%

34.0% 22.0%

Brazil Mexico USA Chile

Top 5 Others

Brazilian market is still very

fragmented

Market Share by channel – Income, 2011 (%)

Abrafarma Top 6 to10

Abrafarma Top 5

Independents

Supermarkets / Other chains

Sector

Overview

Rosário store. Brasília, DF

The Power of One

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Dream

Mission

People

• To be the best Drugstore Chain in the country helping to create a healthier world

• Provide health and well-being to 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

One Company, One Culture

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204 / 215 / 234 CLIENTS INVESTORS

SUPPLIERS TALENTS

To be the number one to our public is one of the main strategic business guidelines of the Company

The Power of One

1

11

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Source: Brazil Pharma; Note: (1) Ranking by number of owned stores as of December 31, 2012 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

4th

2nd

1st

Northeast

n/a (2)

3rd

North

n/a (2)

n/a (2)

Southeast

n/a (2)

Mid-west

n/a (2)

South

n/a (2)

Strong Local Knowledge Number one in four out of five regions

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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

86

Brazil Pharma footprint and clusters

Source: Brazil Pharma

National Footprint The number one drugstore chain outside of the Southeast

2

13

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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

Number one in organic growth

Organic Growth (# owned stores)

Brazil Pharma Abrafarma

Branded Generics HPC

Number one in sales mix

(3Q12)

Number one in regional growth

(CAGR07’-11’)

Strong growth potential Number one in growth

Source: Brazil Pharma and IMS Health.

64.9%28.5%

11.7%

37.1%

45.9%

17.0%

Number one in Same Store Sales

(3Q12)

333

90

95

109 54 681

2009 3Q12Openings 2011

Openings 9M12

Openings 2010

Openings 2009

1

1

1

1

Big Ben store, Belém, PA

Performance

Since IPO

15

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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…

16

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Increasing 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

Renato Lobo

Investor Relations Director

Otavio Lyra

Investor Relations Manager

Marina Sousa

Investor Relations Coordinator

Phone: +55 (11) 2117- 5299

E-mail: ri@brph.com.br

IR Website: ww.brph.com.br

IR CONTACT

Centro de Serviços Compartilhados - CSC, Brasília, DF