3Q13 Conference Call Presentation

November 14, 2013

• Gross revenues of R$916.2 million, an increase of 13.9% over 3Q12.

• Gross Margin of 30.7%, in line with 3Q12

• Total SSS of 10.7%, with 6.5% for mature stores

• Adjusted EBITDA of R$51.7 million, with adjusted EBITDA margin of 5.6%

• Adjusted net income of R$13.5 million, with adjusted net margin of 1.5%

• With the opening of 13 new owned stores and 31 franchises, we ended 3Q13 with 1,186 stores.

Operational & Financial

253 Owned stores

123 Owned stores

149 Owned stores

458 Franchises

203 Owned stores

728 Owned stores

458 Franchises

1,186 stores

REGIONS

Owned stores

North 132

Northeast 251

Midwest 142

Southeast

South 203

15

2

123 20

15

30

15

191

7

70

123

1

12

5 Distribution centers

97

7

National Footprint

47 openings in 9M13 (13 in 3Q13)

27 closings (12 in 3Q13, all of them from Mais Econômica)

38.6% of owned stores not yet at mature stage

132 143 149

210 213 203

118 121 123

248 250 253

34 13

15 12

2012 Organic Growth Closing 1H13 Organic Growth Closing 3Q13

11.8%

11.3%

15.5%61.4%

Stores open less than 12 months

Stores open 12 to 24 months

Stores open 24 to 36 months

Stores open more than 36 months

• 77 openings in 9M13 (31 in 3Q13)

• Accelerated expansion strategy

• Gain of scale (for franchisees and Brasil Pharma)

388 433 458

46 31

1 6

2012 Openings Closing 1H13 Openings Closing 3Q13

804,4 916,2

2.250,6 2.565,1

3Q12 3Q13 9M12 9M13

15,1%

12,0% 10,8%

9,8% 10,7%

7,8%

5,2% 4,3%

5,3% 6,5%

3Q12 4Q12 1Q13 2Q13 3Q13

SSS Total

SSS mature stores (36 months or older)

Generic penetration in medicine sales

37,1% 38,4% 37,9% 37,6% 38,4%

17,0% 16,4% 16,5% 16,9% 15,8%

45,9% 45,2% 45,6% 45,5% 45,8%

3Q12 4Q12 1Q13 2Q13 3Q13

Non-medicines Generic Medicine Branded medicine

31,3

35,2

3Q12 3Q13

• Increase in Trade marketing revenues

• Supply chain strategy

• Sales Mix

247,1 265,3 232,9 266,0 281,5

30,7% 31,5% 29,0%

31,5% 30,7%

3Q12 4Q12 1Q13 2Q13 3Q13

682,6 780,4

30,3% 30,4%

9M12 9M13

50,1 55,2 153,5 154,3

144,7 174,6

393,6 491,3

194,8 229,8

547,1

645,6

3Q12 3Q13 9M12 9M13

General & Administrative Sales expenses

6,2% 6,0% 6,8% 6,0%

18,0% 19,1%

17,5% 19,2%

24,2% 25,1% 24,3% 25,2%

3Q12 3Q13 9M12 9M13

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

3Q11 3Q12 3Q13 9M11 9M12 9M13

Proforma Proforma Proforma

Gross Revenues 673,570 804,393 916,194 1,839,403 2,250,596 2,565,085

General and administrative expenses (G&A) (55,939) (50,123) (55,179) (139,701) (153,476) (154,296)

% Gross Revenues 8.3% 6.2% 6.0% 7.6% 6.8% 6.0%

G&A Dilution (R$'000)

Adjustments on 3Q13:

• Adjustment of R$35 million in non-cash revenue: reducing the balance of a future installment of one of

our acquisitions.

• In regard to our integration process, we continue to make no adjustments.

Non recurring SG&A (7,639) 35,000 6,874 32,406

IPO /Debenture issuance expenses (108)

M&A/Branding (426) (2,630) (684)

Income related to Santana insurance 21,653

Platforms Integration/Downsizing (3,080) (7,908) (1,763)

Other (263) 35,000 (263) 34,853

3Q12 9M133Q13Non recurring expenses (R$'000) 9M12

52,3 51,7

135,5 134,8

6,5% 5,6% 6,0%

5,3%

3Q12 3Q13 9M12 9M13

9M12 9M13

Proforma Proforma

Net income (loss) 7,610 42,325 26,735 36,867

% Net margin 0.9% 4.6% 1.2% 1.4%

(-) Non recurring expenses (7,639) 35,000 6,874 32,406

(-) SOP expenses (5,751) (3,205) (8,601) (8,904)

(-) Adjustments on Depreciation and amortization¹ (5,905) (2,987) (22,862) (10,594)

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

Adjusted Net Income (loss) 26,905 13,518 61,264 23,960

% Adjusted net margin 3.3% 1.5% 2.7% 0.9%

Net Income reconciliation (R$'000) 3Q12 3Q13

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Working capial 3Q12 4Q12 1Q13 2Q13 3Q13

Accounts receivable 24 23 24 18 5

Inventories 95 95 108 109 112

Suppliers 49 58 56 73 56

Working capital in days 70 60 76 53 62

Cash flow Statement (R$'000) 3Q12 3Q13 9M12 9M13

EBT 8,668 50,559 26,689 54,164

(+) Depreciation and amortization 13,367 18,732 41,727 52,248

(+) Others 28,246 (34,379) 54,284 (14,165) -

Operating cash generation 50,281 34,912 122,700 92,247

(+) Change in working capital¹ (62,962) (39,520) (214,054) 36,415

(+) Change in other assets and liabilities 15,283 6,498 (25,461) (110,719)

Cash consumption (47,679) (33,022) (239,515) (74,304)

Income Tax & Social Contribution payed (1,728) (4,646) (16,525) (6,098)

Net cash generated by operating activities 874 (2,756) (133,340) 11,845

(-) Capex from operations (48,652) (31,280) (96,375) (105,232)

(-) Acquisitions (20,460) (1,542) (348,358) (114,293)

Net Cash from investing activities (69,113) (32,822) (444,733) (219,525)

(+/-) Loans and financing (20,142) 92,508 238,612 51,091

(+) Equity funding / Dividends 81,897 (6,005) 480,689 970

Net Cash from financing activities 61,755 86,503 719,302 52,061

Change in cash and cash equivalents (6,484) 50,926 141,228 (155,619)

Cash and cash equivalents - opening balance 411,267 162,205 263,555 368,751

Cash and cash equivalents - closing balance 404,783 213,132 404,783 213,132

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

Integration Status

Mais Econômica repositioning

“Go Live” SAP

2nd Debenture Issuance

“Best in People Management” Award

New Vice-President

Administrative

BackOffice activities

(SSC)Logistics - New DC's

Trade Marketing

Integration

Procurement

IntegrationSales Force Training Expansion

SAP - BackOffice

Module

WMS - Logistics

Module

Front Office

Systems

(Continuous

improvement)Nov.2012

(Continuous

improvement)

(Continuous

improvement)

"Vendo Mais"

in practiceExpansion focus "Go Live" 1Q14 Implemented

Single System under

analysis

Not integrated

(expected to 2014)

Pernambuco DC

Jun.2013 / Pará DC

under analysis

Not integrated Not integrated"Vendo Mais" being

implementedExpansion focus

"Go live"

(expected to 2014)

To be implemented

in 2014

Single System under

analysis

(Continuous

improvement) Out.2013 On going

(Continuous

improvement)

"Vendo Mais"

in practice

Repositioning of

stores "Go Live" 2Q14

Under

implementation

Single System under

analysis

(Continuous

improvement)Oct.2012

(Continuous

improvement)

(Continuous

improvement)

"Vendo Mais"

in practiceExpansion focus ok Implemented

Single System under

analysis

Systems IntegrationCommercial Integration Operations

Layout adjustments

- 56 stores renovations

- 3 stores completely reformed (1 new Concept store)

Sales mix revision

Sales force training

Repositioning of stores

- 16 closings (12 in 3Q13), 6 more stores expected to be closed by the end of the year

- 9 openings, 7 of them in the new standard (2 in 3Q13)

New DC in Canoas:

- Increase the volume purchased from the industry

- Better supply efficiency

• Traditional façade

• Indoor layout: visual pollution

Traditional standard Pilot standard New standard

• New yellow façade: lost of

brand identity

• Indoor layout: “clean” visual

over sophisticated

• Traditional façade

• Indoor layout: “clean” visual

with popular appeal

SIG6 Gestão Procfit Proteus

Benefits from an Integrated System

Process standardization

Better integration capacity

Faster and more precise information

Higher quality information to shareholders

Steps

1º wave: Oct/13 - “Go live” Rosário

2º wave : 1H14 - “Go live” Santana, Mais Econômica and Farmais

3º wave : 1H14 - “Go live” Big Ben/SSC integration

2º Debentures Issuance

1st Series

Principal: R$213 million

Issue Date: September 15, 2013

Term: 5 years

Coupon: CDI + 1.70 p.a.

Interest Payments: Biannual

Maturity: September 15, 2018

2nd Series

Principal: R$73 million

Issue Date: September 15, 2013

Total: 7 years

Coupon: IPCA + 7.48 p.a.

Interest Payments: Biannual

Maturity: September 15, 2020

Allocation:

(i) 50% for amortization of the company’s short-term debt along its contractual maturities

(ii) 50% for cash reinforcement and working capital

R$ 287.7 million

captured

(15.1% additional to the

initial offering)

“Best People Management”

PEOPLE-FOCUSED strategy

Construction of a strong MERITOCRACY based culture

Consolidating a PERENNIAL and PROFITABLE company

Ranking category over 15,000 employees

1º EMBRAER

2º BRADESCO

3º TELEFÔNICA/VIVO

4º ITAÚ UNIBANCO

5º BRASIL PHARMA

The assessment takes into account the employees’

satisfaction and the degree of their engagement: the

winning companies have best practices in managing

people, contributing not only to their employees’

satisfaction, but also to their engagement, which

directly influences the business’ results.

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Brasil Pharma

IBOV

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

Company’s IPO on June 24, 2011.

BPHA3 09.30.13 Market closure

Shares outstanding 256,384,419

Price (R$/share) 7.80

Annual Performance -45.8%

Ibovespa Index -14.1%

Perfomance since IPO¹ -9.5%

Ibovespa Index -14.2%

Market Cap (R$ Bn) 2.0

Average daily trading volume in 2013 (R$ million) 12.1