Institutional Presentation

February 2012

The Sector

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Sales Performance in the Brazilian Pharmacy Retail Sector from 1996-2011 (R$ Billion)

Pharmacy Retail: A Growth History…

Sources: IBGE, Farmácia Popular, Health, OMS IMS, Brazil Central Bank

Micro Drivers Timing

Regional

Brands

Fragmented

Market Formalization

Macro Drivers

Income Growth Population Aging Generic Drugs

1997 – 2000

1997: Asian Crisis

1998: Russian Crisis

1999: Real Depreciation

2000: Internet Bubble burst

2001 - 2002

2002: Crisis pre-Lula election

2001: Argentine Default

2003 – 2005

2003-04: First years of

Lula´s election

2004: Mensalão scandal

2006 – 2007

2006: Second Lula election

2008 – 2011

2008: Subprime Crisis

2010: Greece Debt Crisis

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2 / 79 / 159 Market Share and Players Footprint

Source: IMS Health, Companies web site, Brazil Pharma

Brazil Pharma is located in strategic regions with low competition, high growth perspectives and large

complementarities to top players.

Revenues

Breakdown per

State

Raia +

Drogasil

Drogaria

S. Paulo +

Pacheco

Brazil

Pharma

São Paulo 31%

Rio de Janeiro 14%

Minas Gerais 10%

Rio Grande do Sul 8%

Paraná 6%

Goiás + DF 5%

Bahia 4%

Santa Catarina 4%

Pernambuco 3%

Ceará 3%

Pará 2%

Others 11%

Pharmacy Retail: ... With Consolidation Opportunity

South

East

Region

Other

Regions

Brazil Pharma Focus

Peers Focus

The Company

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2 / 79 / 159 Geographic Location Strong Organic Growth Capacity (# Stores)¹

TOTAL: 986

627 own stores e

359 franchise stores

Brazil Pharma: Ready to Grow

Largest Pharmacy Retail Company in Brazil outside the Southeast

Profitable Mix (3Q11 Sales Mix)¹

Brazil Pharma Abrafarma

Branded

Generics

Non-Medicines

¹Excluded Big Ben and Estrela Galdino’s Stores

104 own stores

1st

228 own stores

1st

359 franchise stores

1st

194 own stores

2nd

5

1

95 20

14

89 7

8

187

7

1

7

85

98

52

150

71

221

71

292

378

2007 2008 2009 2010 2011

86

101 own stores

101

1st

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Brazil Pharma: Strategies to Create Value

Market

Consolidation

Highly fragmented

market with large room

for consolidation

Organic Growth

Opening of new stores to

consolidate local

leadership and enter new

states

Differentiation

Product development,

private label and loyalty

programs

Operational

Efficiency

Strong synergy to come

through integration

Unparalleled

Growth

(# of stores

9M11)

60

34

21

Source: Drogasil and Droga Raia’s press releases as of September 30th, 2011

Consolidation

Integration IT: Totvs

Head Count Reduction: 1.069

Shared Service Center: Midwest

Differentiation

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Experienced management with more than 25 years in the pharmacy retail industry on average

Brazil Pharma: Our People

André Sá

CEO

Marcelo Doubek

CFO

Renato Lobo

Investor Relations

Álvaro Silveira Jr.

Head of Midwest and Commercial Director

Gilberto Portela

Head of Northeast Operations

Raul Aguilera

Head of North Operations

Wilson José Lopes

Head of South Operations

Management

Board of Directors

Marcelo Kalim

Board Member

Carlos Fonseca

Board Member

Roberto Martins

Board Member

José Luiz Depiere

Board Member

2

2

n/a

22

36

30

25

25

# Years

Pharmacy Retail

n/a

n/a

20

14

25

# Years

Financial Industry

12

14

18

n/a

n/a

n/a

n/a

n/a

15

14

22

n/a

n/a Artur Grynbaum

Independent Board Member

Experience

Álvaro Silveira

Board Member

Carlos Dutra

Comercial Director 20 n/a

Financial Expertise

Retail Expertise

Manufacturing Expertise

122 years of

Pharmacy Retail

Experience

Entrepreneurship

Experience

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(1) Including Sant’ana and Big Ben acquisirttion that is still pending shares incorporation

Brazil Pharma: The Shareholders

BTG is our main Shareholder

Farmais Rosário

Distrital

Mais

Econômica

100% 100% 100%

Big Ben

100%

Sant’ana

100%

Sócios

Operacionais

23%

Free Float

39%

BTG

Pactual(2)

31%

Sant’ana

Family

7%

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226

338 352

27,6%

19,2%20,9%

Brazil Pharma Drogasil Raia

Brazil Pharma: Comparing With The Peers

Solid track record in sales, Gross Margin and EBITDA

9M11 EBITDA and EBITDA Margin

(R$ million, % of Gross Revenues

9M11 Selling, General, Administrative and Other

Expenses1 and % of Gross Revenue

(R$ million, % of Gross Revenues)

¹Excluded Big Ben’ Stores

48

107

87

5,9% 6,1%

5,2%

Brazil Pharma Drogasil Raia

352

359

384

Brazil Pharma Drogasil Raia

9M11 Gross Profit and Gross Margin

(R$ million, % of Gross Revenues)

Stores (as of September 30, 2011)¹

275

446 439

33,6%

25,3% 26,2%

Brazil Pharma Drogasil Raia

Integration Process

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Operations Administrative

(SSC) Procurement

Corporate

Finance

Accounts Payable

Human Resource

Accounting

IT

Legal department

Sales (pricing, mix,

location

New stores

Logistics

Purchase process

Relationship with

manufactures

Service Level

Working Capital

G&A Reduction Sales increase

Operational efficience

Gross margin Benefits

We have three operations areas:

(i) Procurement

(ii) Sales and Operations

(iii) Back Office

Brazil Pharma: Integration Process

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TRANSPORTATION

1 PARKING LOT

2 BUS STOP

3 BUS STOP

4 102 SUL SUBWAY

STATION

FOOD

1 303 SUL

2 103 SUL

3 304 SUL

4 302 SUL

5 PÁTIO BRASIL SHOPPING

MALL

COMMERCE

1 303 SUL

2 PÃO DE AÇÚCAR

SUPERMARKET

3 304SUL

4 103 SUL

5 302 SUL

6 SHOPPING PÁTIO BRASIL

SERVICES

1 BANCO SANTANDER

2 LANGUAGE SCHOOL

3 DOM BOSCO HIGH SCHOOL

4 SWIMMING GYM

5 GYM

6 GALOIS HIGH SCHOOL HEALTHCARE

1 7 SENAC COLLEGE

2 HOSPITAL

LEISURE

1 PARQUE DA CIDADE PARK

2 NIQUELÂNDIA

3

CSC: “Go Live” In April of 2012

New Acquisition

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2 / 79 / 159 Founded in 1945, with head offices in Salvador - Bahia;

CEO and Majority Partner: José Sant’Ana;

Brazil’s 9th largest drugstore chain – according to Abrafarma’s 2011 ranking;

Largest drugstore chain in the state of Bahia, with 63% of top of mind in the regional market, according to “Marketing

Consult”;

101 stores in the states of Bahia, while 33% of the stores still under maturation;

Sales per store of approximately R$470 thousand/month;

In December 2011, Sant’Ana’s Distribution Center of approximately 7,000 m² burned down, since then Sant’Ana has been

operating with 2 Distribution Centers of a total of 2,400 m²; and

R$ 527 million Sales and R$ 36 million EBITDA as of LTM Sep.11.

61%18%

21%

Branded Medicine

Generics

Non Medicine

Sant'Ana Overview

Sant’Ana is the absolute leader of the state of Bahia, which is the most important state of the

Northeastern region.

(1) As of Pro-forma September 30, 2011.

Sales Breakdown

LTM Sep.11

Sant'Ana (1)

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Total acquisition amount of R$ 497.0 million

• R$150.0 million in Brazil Pharma’s shares, issued at a price of R$10 per share;

• R$247.0 million in cash;

• R$100.0 million in cash at the 48th month anniversary, adjusted by IPC-A (Consumer Price Index);

• Up to R$35.0 million conditioned to the achievement of pre settled goals;

• Index Cupon: R$17.2 million;

• Net Debt: R$14.0 million at the signing date;

• Goodwill: R$314.8 million, representing a present value estimated fiscal benefit of R$81.0 million.

Indemnity and Securities

• 100% of previous contingencies will be secured by the former owner as agreed by contract; and

• Forward installment in cash and equity interest in Brazil Pharma will be secured by indemnities.

Corporate Governance

• José Sant’Ana remains as Sant'Ana’s CEO;

• 3-year lock-up for issued shares; and

• 5-year Non-Compete agreement, additionally to the lock-up period..

Transaction Analysis

The acquisition has a cash component and a share issuance.

Transaction Highlights

R$ 347,0 million in cash

15,000,000 shares @ R$10.0

100% shares

Implied EV/EBITDA 2012 E

Transaction Multiples: 8,5x

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(1) Ranking by stores considering only the 4 largest drugstore chains of Brazil, data as of September 30, 2011; and

(2) “n/a”: Other players doesn’t have any operating stores in the region.

4th

2nd

Brazillian New Rank

Brazil Pharma condolidates its leadership position in 4 out of the 5 main Brazilian regions, becoming

Brazil´s Largest Drugstore Retailer excluding Southeast region.

Ranking – Comparison of the 4th Largests Drugstores Chains in Brazil

1st

3rd

North South Southeast Northeast Mid- West

(1)

(1)

n/a n/a n/a

n/a

n/a n/a

(2)

(2) (2) (2) (2) (2)

Operational and Financial Highlights 3Q2011

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Sales and SSS

Solid track record in sales and SSS growth

Gross Revenues

(R$ million)

SSS (Same Store Growth Sales)

SSS SSS mature stores (36 months)

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Sales Mix and Average Ticket

Increase in average ticket even with the growing relevance of generics in our sales mix

Sales Mix

(% of sales)

Average Ticket

(R$)

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Gross Profit and Expenses

Gross margin expansion, given better mix and inventory management

Gross Profit and Gross Margin

(R$ million, % of gross revenues)

Selling, General, Administrative and Other

Expenses1 and % of Gross Revenue

(R$ million, % of gross revenue)

(1) Includes other net operating revenues. Data adjusted to exclude non-recurring expenses occurred during

the quarters. On the 3T11 non recurring expenses were R$5.9million, being R$4.3 million related to

severance paid, in view of the headcount cut in the South platform and R$1.6 million expenses related to the

stock option plan.

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EBITDA and Depreciation and Amortization

Highest EBITDA margin since the creation of Brazil Pharma

EBITDA and EBITDA Margin

(R$ million, % of gross revenue)

Depreciation and Amortization Expenses

(R$ million)

Starting January 2011 there was a change in our accounting criteria and

the key money (commercial establishments) amortization was classified

under depreciation and amortization expenses in the income statement.

This same line includes the depreciation of our plant and equipment and

the investments in the layout adjustment at our stores.

Out of the R$6.8 million depreciation and amortization expenses booked in

3Q11, R$3.9 million represented the amortization of intangible assets

(commercial establishments).

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Financial Result and Net Income

Lower financial expenses given Company’s capitalization and maintenance of profitability

Financial Result

(R$ million)

Net Income and Net Margin1

(R$ million, % of gross revenue)

(1) Net income before minority interest and adjusted to exclude non-recurring expenses in the period.

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Contact Details

Investor Relations

Renato Lobo IR Officer

renato.lobo@brph.com.br

(55 11) 2117 -5200

www.brazilpharma.com.br/ri

Brazil Pharma S.A.

Rua Gomes de Carvalho, 1629

6º e 7º andares

CEP 04547-006

São Paulo, SP, Brasil