Growth 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Pharmacy Retail 16.7% 11.4% 11.6% 9.9% 11.9% 14.3% 20.1% 18.5% 15.6% 16.9%

Abrafarma 13.3% 15.0% 7.1% 14.6% 21.7% 25.6% 18.0% 26.0% 16.7% 13.8%

Growth 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Pharmacy Retail 16.7% 11.4% 11.6% 9.9% 11.9% 14.3% 20.1% 18.5% 15.6% 16.9%

Abrafarma 13.3% 15.0% 7.1% 14.6% 21.7% 25.6% 18.0% 26.0% 16.7% 13.8%

5 Big acquisitions:

• Rosario Distrital

• Guararapes

• Mais Economica

• Sant’Ana

• Big Benn

Strong organic growth/market consolidation

Leadership position in 4 out 5 regions in Brazil

Financing: IPO/ 1st Debenture/ F-ON

Accelerated expansion

Centralized BackOffice (2012)

Centralized Procurement (2013)

Logistics optimization : 4 New

Distribution Centers

Systems Standardization : Start

of SAP Implementation

Brand repositioning

Stores renovation/Mix optimization

Big Ben as a separated business

unit

Focus on processes

Focus in Cash generation

WC Management

Slowdown in organic growth

Reduced investments

Optimized corporate structure

Processes’ redesign

Stores’ profitability

Mais Economica Repositioning

Harvest the benefits of

integrations done in 2012 and

2013

17.1%

15.8%

13.6%

5.6%

Healthy growth despite the slowdown in Mais Economica

South region

Midwest region

North/Northeastern region

Northeastern region

(Bahia)

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•

•

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Traditional standard Pilot standard New standard

New DC in Canoas:

- Increase the volume purchased from the industry

- Better supply efficiency

Store Layout/ Mix adjustments

- 56 stores renovations

- 3 stores completely reformed (1 new Concept store)

Sales force training

Focus in store profitability

- 28 closings in 2013

Reverse Logistics

- Move the excess of products from the stores to the DC

Redistribution of Products

Renegotiation with the industry

Promotional Campaigns

Better logistics’ productivity, with shorter

lead-time

Better procurement algorithms

Mix reduction

SAP Schedule:

Oct/13 - “Go live” Rosário

Jan/14 - “Go live” Santana

Jan/14 - “Go live” Farmais

1H14 - “Go live” Mais Economica

2014 - “Go live” Big Ben/SSC Integration

Gestao System Schedule

(Procurement/Logistics):

Rosario

Apr/13 - “Go live” Sant’Ana

1H14 - “Go live” Mais Economica

SIG6 Gestao Procfit Proteus

Benefits from an Integrated System Process standardization

Better integration capacity

Faster and more precise information

Higher quality information to shareholders

Still a separated business unit

Separated Administration

Duplicated structures/expenses

Managed by the former owner

Commercial BackOffice Operations

Integration in course:

Continuous improvement.

Synergies to be captured in

the years to come