4Q06 Earnings Results

HIGHLIGHTS FOR THE PERIOD

3

– Opening of the new Distribution Center in Pernambuco– R$ 570.0 million market in Pernambuco (PE) and R$ 212.0 million in Paraíba(PB) will be supported by Profarma

– R$528.6 million Gross Revenues, up 17.3% in comparison with 4Q05

– Adjusted EBITDA registered 3.2% increase related to 4Q05, reachingR$ 19.4 million on 4Q06

_ R$ 12.7 million Net Income on 4Q06, 52.5% increase in comparison withwith 4Q05

1,442.9

1,725.2

1,967.7

2004 2005 2006

450.8 437.9471.8

529.4 528.6

4Q05 1Q06 2Q06 3Q06 4Q06

Em R$ MM

17.3%

Gross Revenue Evolution

36.4%

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Gross Revenue Breakdown

5

R$ thousands 4Q05 4Q06 Variation % 2005 2006 Variation %Branded 312.0 347.8 11.4% 1,183.9 1,332.4 12.5%Generics 28.0 36.5 30.7% 103.1 112.6 9.2%OTC 77.2 96.1 24.5% 306.6 349.5 14.0%Health and Beauty Products 27.2 36.4 33.8% 98.7 132.1 33.8%Others 6.2 11.6 87.1% 31.8 39.8 25.1%Services Rendered 0.3 0.3 3.4% 1.1 1.3 25.0%Total 450.8 528.6 17.2% 1,725.2 1,967.7 14.1%

8.4

9.3

9.6 9.6

2003 2004 2005 2006

Market Share (%)

Source: IMS

6

Adjusted EBITDA and Adjusted EBITDA Margin

In R$ MM and as a % Net Revenues

18.8

12.7

16.819.1 19.4

4.7%

3.3%4.0% 4.1% 4.2%

4Q05 1Q06 2Q06 3Q06 4Q06

35.7

47.1

61.668.1

3.9%4.1%3.7%3.6%

2003 2004 2005 2006

7

16.321.6

(3.6)

In R$ MM

Net Income

Adjusted Net Income

2005 20064Q05 4Q06

32.5%

53.0%

Net Income

8

8.312.7

(12.5)

2,1%

ROE – Return on Equity

38.2%38.4%

36.5%

2004 2005 2006*

* IPO Expenses Ajusted

ROE = (Net Income + Tax Incentives) / Shareholders Equity (period beginning)

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Operating Expenses

10

5.86% 6.38% 5.86%

4Q05 3Q06 4Q06

7.11% 6.16%

2005 2006

TOTAL OPERATING EXPENSES

Cash Flow

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R$ Thousands 4Q05 4Q06 2005 2006

Cash Flow (used in)/provided by Operating Activities 13.4 (14.8) (15.6) (98.5) Internal Cash Generation 12.4 18.5 31.1 37.7 Operating Assets Variation 1.0 (33.3) (46.7) (136.2)

Cash Flow (used in)/provided by Investing Activities 0.3 (2.2) (2.0) (4.4)

Cash Flow (used in)/provided by Financing Activities (19.5) 201.6 19.3 292.4

Increase (Decrease) in Cash (5.8) 184.6 1.7 189.5

Cash Flows

Indebtedness

Net Debt (R$MM) and Net Debt / Ebitda

-64.7

50.1

82.8104.1

-1.0

1.71.81.4

2003 2004 2005 2006

12

59.0

26.9

72.7

27.4

0.0

60.9

38.1

104.2

2003 2004 2005 2006

Short Term Long Term

Em R$ MM

100%

31%

69%66%

34%21%

79%

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Indebtedness Position

Capex

1.2 0.9 1.4

3.10.5 0.91.0

1.0

0.1 0.20.1

0.7

0.3%

0.2%0.2% 0.2%

2003 2004 2005 2006

Inst, Maq and Equip IT Others % Net Revenue

1,9 2,02,5

4,7

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Operanting Indicators

15

Service Level(units served / units requested)

89.9%88.7%

87.7%86.6%

92.9%90.8%

2003 2004 2005 2006 9M06 4Q06

Logistics E.P.M.

(Errors per Million)

Logístics – Productivity(units shipped / worked hours)

16

231202

250

2004 2005 2006

89.4 89.8 89.6

2004 2005 2006

Operanting Indicators

35.242.1

47.9

28.8

2003 2004 2005 2006

180.4215.7

157.4

245,9

2003 2004 2005 2006

Sale per Square Meter Average Sale per DC

. In R$ m (Gross Revenue) .In R$ MM (Gross Revenue)

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Operanting Indicators

Average Invoice Sale Through eletronic Orders

. R$ % on total sale

40.0%43,8%

35.0%

2004 2005 2006

18

802.9 782.3857.2

2004 2005 2006

Operanting Indicators

Gross Revenue per Employee Ebitda per Employee

In R$ MM In R$ MM

28,832,0

44,549,1

2003 2004 2005 2006

889,1980,9

1246,6

1419,7

2003 2004 2005 2006

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Operanting Indicators

Capital Markets

110,9

114,6

150,8

9599

103107111115119123127131135139143147151155159163167171175179

25-out 1-nov 9-nov 17-nov 27-nov 4-dez 11-dez 18-dez 26-dez 4-jan 11-jan 18-jan 26-jan 2-fev 9-fev 16-fev 27-fev

Ibovespa IGC Profarma

20

Max FischerCFO and IRO

Ana Paula RibeiroIR Coordinator

phone.: 55 (21) 4009 0276E-mail: ri@profarma.com.br

www.profarma.com.br/ri

IR Contact: