Conference Call – 3Q06 Results

Profarma is the fastest growing wholesale distributor of pharmaceutical and personal care products in Brazil

Pharmaceutical Manufacturers Drug Retailers

• 8 Distribution Centers• > 9,100 Orders Daily• Additional Value Added Services

# 120 manufacturersserved by Profarma

# 23,800Points-of-Sale

Supplied by Profarma

SCPR

SP

MGGO

BA

RJES

DF

Distribution Centers

Profarma’s Overview

Key Player

Strong Financial

Performance

Multiple Growth

Opportunities

Proven Track Record

Experienced Management

Team

Positive Sector Dynamics

Investiment thesis

- Profarma’s IPO inaugurates company’s new moment

- Trade of 17.8 million common shares at R$ 22.50

- Gross funding of R$ 401.0 million

- Primary Offer of R$ 310.5 million

- 3Q06 Gross Revenues of R$529 million, 16.4% growth over 3Q05

- Net Income totaled R$ 4.2 million, 20.8% more than in the 3Q05.

- Adjusted EBITDA reached R$ 19.1 million, 11.4% up year-on-year.

Highlights – 3Q05 vs. 3Q06

Gross Revenues Growth R$ Million

823 1,030 1,18434

60103

185

252307

59

101131

2003 2004 2005

873 985

757622925397125

9M2005 9M2006

312 361

283180903547

3Q05 3Q06

25.1%

12.9% 16.4%

1,102

1,4431,725 1,274

1,439455

529

Net Income R$ Million

8.08.9

9M2005 9M2006

3.54.2

3Q05 3Q06

12.0% 20.8%

33.6%

10.6

70.5%

5.9

Net Income, excluding expenses related to the IPO

Net Income

Adjusted EBITDA Adjusted EBITDA (R$ Million)

% of Net Revenues

47.1 61.635.7

2003 2004 2005

48.742.8

9M2005 9M2006

19.117.1

3Q05 3Q06

3.7% 4.1%3.6%

2003 2004 2005

3.8% 3.8%

9M2005 9M2006

4.3% 4.1%

3Q05 3Q06

31.4% 13.8% 11.4%

Operating Expenses% of Net Revenues

General & Administratives

2.14%2.46%

2.02%2.34%

Comercial & Marketing2.34%

2.21% 2.24%2.22%

Logistics & Distribution

2.44%

2.71%2.92% 2.88%

2.23% 2.14%

9M2005 9M2006

General and Administratives

2.51%2.34%

2.44%2.93%

9M2005 9M2006Comercial and Marketing Logistics and Distribution

2.16% 1.94%

3Q05 3Q06

2.83% 2.50%

2.40%2.49%

3Q05 3Q06

6.27%7.56%

9M2005 9M2006

Operating Expenses

7.01% 6.38%

3Q05 3Q06

Operating Expenses7.43%

6.27%

7.11%6.45%

2003 2004 2005 9M2006

Market Follow-up (from October 25 through November 10)

Vol/Neg

102.9

101.1

115.6

117.8119.2

123.3

126.7

123.6

126.2

104.5104.5103.8104.3

99.4 98.3100.2 99.2

100.9

102.2

102.6102.4 102.6102.8

98.8 98.099.6 100.098.8100.8

123.6

111.1

114.4

120.0

97

100

103

106

109

112

115

118

121

124

127

25-Oct-06 26-Oct-06 27-Oct-06 30-Oct-06 31-Oct-06 1-Nov-06 3-Nov-06 6-Nov-06 7-Nov-06 8-Nov-06 9-Nov-06 10-Nov-06

Ibovespa IGC Profarma