4Q13 Conference Call Presentation

March 27, 2014

• Gross revenues of R$3.5 billion, an increase of 14.4% over 2012.

• Gross Margin of 27.9%, over gross revenues

• Total SSS of 11.5%, with 6.8% for mature stores

• Adjusted EBITDA of R$150.9 million, with adjusted EBITDA margin of 4.3%

• Adjusted net loss of R$15.9 million.

• With the opening of 65 new owned stores and 120 franchises, we ended 2013 with 1,218 stores.

Operational & Financial

259 Owned stores

127 Owned stores

154 Owned stores

485 Franchises

193 Owned stores

733 Owned stores

485 Franchises

1,218 stores

REGIONS

Owned stores

North 132

Northeast 261

Midwest 147

Southeast

South 193

15

3

122 20

15

33

16

182

9

70

127

5

11

5 Distribution centers

98

7

National Footprint

65 openings in 2013 (18 in 4Q13)

40 closings (13 in 4Q13)

38.4% of owned stores not yet at mature stage

132 149 154

210 203 193

118 123 127

248 253 247

47 18

27 13

2012 Organic Growth Closing 9M13 Organic Growth Closing 2013

8.9%

11.3%

16.2% 63.6%

Stores open less than 12 months

Stores open 12 to 24 months

Stores open 24 to 36 months

Stores open more than 36 months

• 120 openings in 2013 (43 in 4Q13)

• Accelerated expansion strategy

• Gain of scale (for franchisees and Brasil Pharma)

361 358 364 359 355 352 369 388 406 433 458 485

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

843.7 975.4

3,094.3 3,540.5

4Q12 4Q13 2012 2013

12.0% 10.8%

9.8% 10.7%

14.1%

5.2% 4.3%

5.3% 6.5%

10.3%

4Q12 1Q13 2Q13 3Q13 4Q13

SSS Total SSS mature stores (36 months or older)

14.1%

11.5%

8.2% 6.8%

2012 2013

Healthy growth, above inflation

38.4% 37.9% 37.6% 38.4% 40.3%

16.4% 16.5% 16.9% 15.8% 13.9%

45.2% 45.6% 45.5% 45.8% 45.8%

4Q12 1Q13 2Q13 3Q13 4Q13

Non-medicines Generic Medicine Branded medicine

37.4% 38.8%

16.7% 15.6%

45.9% 45.6%

2012 2013

Generic penetration in medicine sales

30.7

35.8

4Q12 4Q13

30.5

34.5

2012 2013

265.3 232.9 266.0 281.5 256.8

31.5% 29.0%

31.5% 30.7%

26.3%

• Promotional activities

• Retraction of generic penetration in medicines sale

265.3 232.9 266.0 281.5208.7

31.5%29.0%

31.5% 30.7%

21.4%

4Q12 1Q13 2Q13 3Q13 4Q13

948.0 1,037.2

30.6% 29.3%

2012 2013

156.8 150.0 166.6 174.6 188.5 156.8

188.5

550.4

679.8

18.6% 18.7% 19.7% 19.1% 19.3% 18.6% 19.3% 17.8%

19.2%

4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 4Q13 2012 2013

53.1 48.1 51.0 52.1 53.0 53.1 53.0

206.5 204.2

6.3% 6.0% 6.0% 5.7% 5.4% 6.3% 5.4% 6.7% 5.8%

4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 4Q13 2012 2013

IPO /Debenture issuance expenses - - - (2,173) (2,173) - (108)

M&A/Branding (684) - - (1,258) (1,942) (2,802) (5,432)

Income related to Santana insurance - - - - - (9,144) 12,509

Platforms Integration/Downsizing (1,763) - - (3,898) (5,661) (5,406) (13,314)

Notice of Infraction - Farmais - - - - - - (3,869)

Earn-out write-off - - 35,000 - 35,000 - -

Impairment on non-recoverable taxes - - - (16,291) (16,291) - -

Opening balance SAP - - - (19,446) (19,446) - -

Stores closing - - - (4,809) (4,809) - -

Consulting and Advisory - - - (13,502) (13,502) - -

Other (147) - - (1,575) (1,722) (1,118) (1,381)

Non recurring SG&A (2,594) - 35,000 (62,952) (30,546) (18,470) (11,596)

Stock Option Plan (SOP) (2,816) (2,882) (3,205) (2,888) (11,792) (1,415) (10,016)

Impairment Mais Econômica/Beauty'in - - - (37,153) (37,153) - -

Inventory write-off - - - (42,392) (42,392) - -

COGS (R$'000) 1Q13 2Q13 3Q13 4Q13 2013 4Q12 2012

2013 4Q12 2012Non recurring Income/(expenses) (R$'000) 1Q13 2Q13 3Q13 4Q13

IPO /Debenture issuance expenses - - - (2,173) (2,173) - (108)

M&A/Branding (684) - - (1,258) (1,942) (2,802) (5,432)

Income related to Santana insurance - - - - - (9,144) 12,509

Platforms Integration/Downsizing (1,763) - - (3,898) (5,661) (5,406) (13,314)

Notice of Infraction - Farmais - - - - - - (3,869)

Earn-out write-off - - 35,000 - 35,000 - -

Impairment on non-recoverable taxes - - - (16,291) (16,291) - -

Opening balance SAP - - - (19,446) (19,446) - -

Stores closing - - - (4,809) (4,809) - -

Consulting and Advisory - - - (13,502) (13,502) - -

Other (147) - - (1,575) (1,722) (1,118) (1,381)

Non recurring SG&A (2,594) - 35,000 (62,952) (30,546) (18,470) (11,596)

Stock Option Plan (SOP) (2,816) (2,882) (3,205) (2,888) (11,792) (1,415) (10,016)

Impairment Mais Econômica/Beauty'in - - - (37,153) (37,153) - -

Inventory write-off - - - (42,392) (42,392) - -

COGS (R$'000) 1Q13 2Q13 3Q13 4Q13 2013 4Q12 2012

2013 4Q12 2012Non recurring Income/(expenses) (R$'000) 1Q13 2Q13 3Q13 4Q13

1 - Portion relating to commercial establishments amortization and brand amortization.

2 - Due to adjustments in non-recurring expenses and revenues during 2012, in 1Q12 we excluded the effects of Income and Social Contribution

Taxes on the insurance coverage for Sant’ana’s distribution center, which was destroyed by a fire in December 2011.

43.4 16.1

178.9

150.9

5.1%

1.6%

5.8% 4.3%

4Q12 4Q13 2012 2013

2012

Proforma

Net income (loss) (12,272) (188,247) 14,464 (151,380)

% Net margin -1.5% -19.3% 0.5% -4.3%

(-) Non recurring expenses 18,470 62,952 11,596 30,546

(-) Impairment Mais Economica/Beauty'in - 37,153 - 37,153

(-) Inventories (COGS) - 42,392 - 42,392

(-) SOP expenses 1,415 2,888 10,015 11,792

(-) D&A Commercial establishments¹ 1,234 2,971 24,096 13,565

(-) Income tax and social contrib. from non recurring expenses²- - 9,940 -

Adjusted Net Income (loss) 8,847 (39,890) 70,110 (15,932)

% Adjusted net margin 1.0% -4.1% 2.3% -0.5%

Net Income reconciliation (R$'000) 4Q12 4Q13 2013

Cash position and indebtedness (R$'000) 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

(+) Loans and financing 149,124 177,049 169,079 160,228 247,170 209,490

Short term 43,953 83,229 44,864 41,694 150,963 124,507

Long term 105,171 93,820 124,215 118,534 96,207 84,983

(+) Debentures 260,759 253,642 258,937 253,964 260,704 549,809

Short term 12,461 5,237 10,427 5,348 11,982 15,249

Long term 248,298 248,405 248,510 248,616 248,722 534,560

(+) Accounts payable for investment acquisition 333,591 345,333 264,430 232,581 179,652 147,837

Short term 97,971 99,711 82,833 81,986 82,681 70,300

Long term 235,620 245,622 181,597 150,595 96,971 77,537

(=) Total Indebtedness 743,474 776,024 692,446 646,773 687,526 907,136

Short term (%) 20.8% 24.2% 19.9% 19.9% 35.7% 23.2%

Long term (%) 79.2% 75.8% 80.1% 80.1% 64.3% 76.8%

(-) Cash and cash equivalents (404,783) (368,751) (183,870) (162,205) (213,132) (405,914)

(=) Net Debt 338,691 407,273 508,576 484,568 474,394 501,222

Net debt/Adjusted EBITDA (LTM) 1.9 X 2.1 X 2.7 X 2.5 X 2.5 X 3.3 X

156911

52

26

58

DC/Logistics Capex Others Reform SAP/IT Organic growth

Working capial 4Q12 3Q13 4Q13

Accounts receivable 23 5 6

Inventories 95 112 107

Suppliers 58 56 77

Working capital in days 60 62 36

1- The variation in working capital includes the change in accounts receivable, inventories and suppliers.

Cash flow Statement (R$'000) 4Q12 4Q13 2012 2013

EBT (13,330) (174,859) 13,359 (123,822)

(+) Depreciation and amortization 20,815 19,872 62,542 72,120

(+/-) Others (22,016) 72,173 32,267 58,008

Operating cash generation (14,531) (82,814) 108,168 6,306

(+/-) Change in working capital¹ 5,770 114,272 (208,285) 150,687

(+/-) Change in other assets and liabilities (26,678) (25,344) (52,139) (132,936)

Cash consumption (20,909) 88,928 (260,424) 17,751

Income Tax & Social Contribution payed 4,119 2,511 (12,406) (3,587)

Net cash generated by operating activities (31,321) 8,625 (164,662) 20,470

(-) Capex from operations (38,849) (50,405) (135,224) (155,637)

(-) Acquisitions (7,693) (15,311) (356,051) (129,604)

Net Cash from investing activities (46,542) (65,716) (491,275) (285,241)

(+/-) Loans and financing 41,344 249,873 279,957 300,964

(+/-) Equity funding / Dividends 487 - 481,176 970

Net Cash from financing activities 41,831 249,873 761,133 301,934

Change in cash and cash equivalents (36,031) 192,782 105,196 37,163

Cash and cash equivalents - opening balance 404,783 213,132 263,555 368,751

Cash and cash equivalents - closing balance 368,751 405,914 368,751 405,914

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

José Ricardo is our Chief Executive Officer and our

Investor Relations Officer. From December 2013 to

March 2014 he served as our Vice President of Strategy

and Finance. Before joining Brasil Pharma, José Ricardo

worked for 11 years at Aché, one of the leading

industries in the Brazilian pharmaceutical market, where

he held the position of Chief Executive Officer from 2006

to 2013

André has served as our Chief Executive Officer from

November 2009, date of the foundation of the Company,

until March 2014. He is also a partner at BTG Pactual.

Previously, he served as Chief Financial Officer of Grupo

Los Grobo and was one of the founders of PDG Realty

S.A. Empreendimentos e Participações, where he

served as a private equity officer

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

BackOffice Integration (SAP schedule)

“Go live” Rosário

“Go live” Santana

“Go live” Farmais

“Go live” Mais Economica

“Go live” Big Ben/SSC Integration

Commercial/Logistics Integration

• System standardization in Rosario, Santana and Mais

Economica: logistics efficiency and better management

control

Benefits from an Integrated System

• Integrated Financing/Accounting management

• Process standardization

• Better integration capacity

• Faster and more precise information

• Higher quality information to shareholders

SIG6 Gestao Procfit Proteus

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Brasil Pharma

IBOV

Source: Bloomberg, as of December 31st, 2013.

Company’s IPO on June 24, 2011.

BPHA3 31.12.13 Market closure

Shares outstanding 256,384,419

Price (R$/share) 6.76

Annual Performance -53.1%

Ibovespa Index -15.5%

Perfomance since IPO¹ -21.6%

Ibovespa Index -15.5%

Market Cap (R$ Bn) 1.7

Average daily trading volume in 2013 (R$ million) 10.5