2Q13 Conference Call Presentation

August 15, 2013

• Gross revenues of R$845.4 million, an increase of 13.2% over 2Q12.

• Gross Margin of 31.5%, 1.4 p.p. over 2Q12

• Total SSS (same-store sales) of 9.8%, with 5.3% for mature stores

• Adjusted EBITDA of R$48.4 million, with adjusted EBITDA margin of 5.7%

• Adjusted net income of R$7.9 million, with adjusted net margin of 0.9%

• With the opening of 25 new owned stores and 27 franchisees, we ended 2Q13 with 1,160 stores.

• Inauguration of a new distribution center in Recife

Operational & Financial

250 Owned stores

121 Owned stores

143 Owned stores

433 Franchises

213 Owned stores

727 Owned stores

433 Franchises

1,160 stores

REGIONS

Owned stores

North 128

Northeast 249

Midwest 137

Southeast

South 213

15

2

120 20

15

28

13

201

8

69

122

1

12

5 Distribution centers

95

6

National Footprint

25 openings (34 in 1H13)

7 closings (15 in 1H13)

39.5% of owned stores not yet at mature

stage

25

7

12.4%

14.4%

12.7% 60.5%

Stores with less than 12 months

Stores with 12 to 24 months

Stores with 24 to 36 months

Stores with more than 36 months

• 27 openings in 2Q13

• Accelerated expansion plan

18.4%

12.0%

24.0%

14.0%

1H12 1H13

Abrafarma chains

Brasil Pharma

746.9 845.4

1,446.2

1,648.9

2Q12 2Q13 1H12 1H13

13.8%

9.8% 9.1%

5.3%

2Q12 2Q13

SSS Total

SSS mature stores (36 months or older)10.2% 9.8% 9.3%

8.0% 6.9%

4.3% 3.7% 3.0% 0.6%

-19.0%

Generic penetration in medicine sales

36.5% 37.1% 38.4% 37.9% 37.6%

17.1% 17.0% 16.4% 16.5% 16.9%

46.4% 45.9% 45.2% 45.6% 45.5%

2Q12 3Q12 4Q12 1Q13 2Q13

Non-medicines Generic Medicine Branded medicine

31.4

33.8

2Q12 2Q13

• Higher “pre- increase” effect in 2Q13 compared to 2Q12

• Distribution Center in Bahia

224.5 266.0

435.5 499.0

30.1% 31.5%

30.1% 30.3%

2Q12 2Q13 1H12 1H13

51,9 51,0 103,4 99,1

126,2 166,6

249,0 316,7 178,1

217,6

352,3

415,8

2Q12 2Q13 1H12 1H13

General & Administrative Sales expenses

6,9% 6,0% 7,1%

6,0%

16,9%

19,7% 17,2%

19,2%

23,8% 25,7%

24,4% 25,2%

2Q12 2Q13 1H12 1H13

G&A % Sales expenses % SG&A total %

2Q12 2Q13 1H12 1H13

Proforma

Gross Revenues 746,855 845,424 1,446,204 1,648,891

General and administrative expenses (G&A) (51,889) (50,994) (103,353) (99,117)

% Gross Revenues 6.9% 6.0% 7.1% 6.0%

G&A Dilution (R$'000)

1H12 1H13

Proforma Proforma

Non recurring SG&A (3,721) - 14,513 (2,594)

IPO /Debenture issuance expenses - (108) -

M&A/Branding (397) (2,204) (684)

Income related to Santana insurance - 21,653 -

Platforms Integration/Downsizing (3,324) (4,828) (1,763)

Other - - (147)

Non recurring expenses (R$'000) 2Q12 2Q13

46,3 48,4

83,2 83,2

6,2% 5,7% 5,8%

5,0%

2Q12 2Q13 1H12 1H13

24,3

7,9

34,4

10,4

3,2%

0,9%

2,4%

0,6%

2Q12 2Q13 1H12 1H13

Cash position and indebtedness (R$'000) 2Q12 4Q12 1Q13 2Q13

(+) Loans and financing 159,908 177,049 169,079 160,228

Short term 48,123 83,229 44,864 41,694

Long term 111,785 93,820 124,215 118,534

(+) Debentures 254,879 253,642 258,937 253,964

Short term 6,688 5,237 10,427 5,348

Long term 248,191 248,405 248,510 248,616

(+) Accounts payable for investment acquisition 498,242 345,333 264,430 232,581

Short term 244,986 99,711 82,833 81,986

Long term 253,256 245,622 181,597 150,595

(=) Total Indebtedness 913,029 776,024 692,446 646,773

Short term (%) 32.8% 24.2% 19.9% 19.9%

Long term (%) 67.2% 75.8% 80.1% 80.1%

(-) Cash and cash equivalents (411,267) (368,751) (183,870) (162,205)

(=) Net Debt 501,762 407,273 508,576 484,568

Net debt/Adjusted EBITDA (LTM) 2.9 X 2.1 X 2.7 X 2.5 X

7466

27

12

23

Working capial 2Q12 4Q12 1Q13 2Q13

Accounts receivable 25 23 24 18

Inventories 92 95 106 109

Suppliers 54 58 55 73

Working capital in days 63 60 75 53

Cash flow Statement (R$'000) 2Q12 2Q13 1H12 1H13

EBT 7,795 11,158 18,021 3,605

(+) Depreciation and amortization 12,268 17,054 28,360 33,516

(+) Others 12,896 (4,175) 26,038 20,214 - -

Operating cash generation 32,959 24,037 72,419 57,335

(+) Change in working capital (93,559) 159,077 (151,092) 75,935

(+) Change in other assets and liabilities (41,623) (104,886) (55,541) (118,669)

Cash consumption (135,182) 54,191 (206,633) (42,734)

Net cash generated by operating activities (102,223) 78,228 (134,214) 14,601

(-) Capex from operations (28,176) (49,033) (47,723) (73,953)

(-) Acquisitions (41,566) (31,848) (327,898) (112,751)

Net Cash from investing activities (69,742) (80,881) (375,621) (186,704)

(+/-) Loans and financing 62,480 (25,986) 258,755 (41,417)

(+) Equity funding / Dividends 397,851 6,975 398,792 6,975

Net Cash from financing activities 460,331 (19,011) 657,547 (34,442)

Change in cash and cash equivalents 288,366 (21,664) 147,712 (206,545)

Cash and cash equivalents - opening balance 122,901 183,870 263,555 368,751

Cash and cash equivalents - closing balance 411,267 162,205 411,267 162,205

Back-Office Adm. (SSC) SAP - Back-Office

Operation integrated (SSC).

Continuous improvement phasePre-"Go Live" tests cycle

Will be integrated in 2014Mapping phase and "Go live" in

2014

Operation integrated (SSC).

Continuous improvement phasePre-"Go Live" tests cycle

Operation integrated (SSC).

Continuous improvement phasePre-"Go Live" tests cycle

Status 75% 50%

Administrative (SSC)

Logistics Trade Marketing Procurement

New DC

(Nov 2012)

Stores remodeling (2012):

28% increase in HPCProcurement integrated

New DC

(Jun 2013)

Actions to improve generics

sales in practice

Procurement Integration

expected to 2014

New DC

FC (Out 2013)

Focus in remodeling to

standardize mix and layoutProcurement integrated

New DC

(Out 2012)

Mix and store layout

standardizedProcurement integrated

Status 70% 60% 60%

Commercial

Sales Training Culture Meritocracy POS system Growth strategy

"Vendo Mais" Program

in practice

New Brasil Pharma logo

(endorsement)

Standardization of

variable compensation

implemented

Unique system under

analysis

Store openings:

countryside of Bahia

"Vendo Mais" Program

in practice

New Brasil Pharma logo

(endorsement)

Standardization of

variable compensation

to be implemented

Unique system under

analysisStore openings in N/NE

"Vendo Mais" Program

in practice

New Brasil Pharma logo

(endorsement)

Standardization of

variable compensation

implemented

Unique system under

analysis

Store closings: sales

bellow BRPH average

"Vendo Mais" Program

in practice

New Brasil Pharma logo

(endorsement)

Standardization of

variable compensation

implemented

Unique system under

analysis

Store openings:

countryside of MT and

GO

Status 100% 100% 80% 0% 80%

Operations

Ju

n-1

1

Ju

l-1

1

Au

g-1

1

Se

p-1

1

Oct-

11

No

v-1

1

De

c-1

1

Ja

n-1

2

Fe

b-1

2

Ma

r-1

2

Ap

r-1

2

Ma

y-1

2

Ju

n-1

2

Ju

l-1

2

Au

g-1

2

Se

p-1

2

Oct-

12

No

v-1

2

De

c-1

2

Ja

n-1

3

Fe

b-1

3

Ma

r-1

3

Ap

r-1

3

Ma

y-1

3

Ju

n-1

3

Brasil Pharma

IBOV

Source: Bloomberg, as of June 30st, 2013.

Company’s IPO on June 24, 2011.

BPHA3 06.31.13 Market closure

Shares outstanding 256,084,419

Price (R$/share) 10.26

Annual Performance -28.8%

Ibovespa Index -22.1%

Perfomance since IPO¹ 19.0%

Ibovespa Index -22.2%

Market Cap (R$ Bn) 2.6

Average daily trading volume in 2013 (R$ million) 12.4

BPHA3 06.31.13 Market closure

Shares outstanding 256,084,419

Price (R$/share) 10.26

Annual Performance -28.8%

Ibovespa Index -22.1%

Perfomance since IPO¹ 19.0%

Ibovespa Index -22.2%

Market Cap (R$ Bn) 2.6

Average daily trading volume in 2013 (R$ million) 12.4

256,384,419

06.30.13