3. 3
7,00 8,30 9,40 10,30 11,20 11,60 13,10
14,80
17,30
19,20
21,50
23,60
26,40
30,20
36,20
42,90
49,60
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: IMS Health.
Drivers Micro Momentum
Regional
Brands
Fragmented
Market
Sector
Formalization
Drivers Macro
Income
Growth
Population
Aging
Generic
Medicines
CAGR ‘08-12
Medicine: 13.5%
Generics: 24.9%
Branded: 11.1%
Sales performance in the Brazilian pharmaceutical market from 1996-2011 (R$ Billion)
Industry Performance
A Growth and Accelerating History
4. 4Source: BofAML Global Research, ANS
Market Drivers
Healthcare Plan Penetration
32 34 35 37 39 41 43 45 47 50 52 54 56 58 59 60 60 6018%
23%
27% 28%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012e
2013e
2014e
2015e
2016e
2017e
2018e
2019e
2020e
Healthcare Plan Beneficiaries Penetration to total population (RHS)
35% 42% 50% 60% 66% 67% 69% 70% 72% 72% 73%
18%
21%
23%
24%
25% 24% 24% 23% 22% 22% 21%
47% 37% 27%
16% 10% 8% 7% 7% 6% 6% 6%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Group plans Individual Plans Not Informed
Healthcare plan beneficiaries are increasing at a 5% CAGR (2003 - 2013)
($ million)
Corporate plans already represent 73% share Decrease in unemployment drives the increase in group plans
($ million)
16 19 22 24 25 27 29 31 32
12,9% 12,4%
11,5%
9,9% 10,0%
9,3% 7,9% 8,1% 6,7%
2002 2003 2004 2005 2006 2007 2008 2009 2010
Number of group plans beneficiaries (lHS)
Unemployment (RHS)
5. 5
100 127 197
294
407
618
969
Health care spending per age group (100 basis)
27% 55%
49%
38%
52%
57%
Source: BofAML Global Research
The Brazilian population older than 60, the segment with the highest medication expenditure, is expected to increase
from 10% of the population in 2010 to 20% by 2030
Market Drivers
Brazil median age to match European countries by 2030
-20% -10% 0% 10% 20%
0 - 9
10 - 19
20 - 29
30 - 39
40 - 49
50 - 59
60 - 69
70 - 79
80+
Europe 2010 Brazil 2030
-20% -10% 0% 10% 20%
0 - 9
10 - 19
20 - 29
30 - 39
40 - 49
50 - 59
60 - 69
70 - 79
80+
Europe 2010 Brazil 2010
People over 65 years old spend more than 55% of total expenditures
23%
16%
17%
13%
8%
8%
7%
5%
29%
19%
19%
16%
12%
9%
10%
6%
Japan Europe U.K. U.S. China Global Brazil India
2010 2020
Percentage of population with more than 65 years to total population
6. 6
Note:
1. Total brand market sales estimates represent annualized sales; includes all expected generic launches in total brand numbers with key launches highlighted; assumes 6
months pediatric extension on all launches; forward looking information assumes no “at risk” launches ; 2. The timing of generic introductions and number of suppliers
can be impacted by a variety of factors, including legal challenges, regulatory issues and manufacturing capacity.
Sources: IMS Health; CVS research estimates.
Market Drivers
Generics continue to represent a significant opportunity in the coming years
20,4
35,5
11,2
16,8
13,3
2011 2012E 2013E 2014E 2015E
Total Brand Market Sales ( $ Bn)
Lipitor
Zyprexa
Levaquin
Concerta
Taxotere
Plavix
Singulair
Seroquel
Lexapro
Actos
Diovan
HCT
Eloxatin
Geodon
Tricor
Provigil
Cymbalta
Diovan
Niaspan
Nexium
Copaxone
Celebrex
Abilify
Namenda
Lovaza
Androgel
$ 97 Bn
in patents
overdue
7. 7Source: Itaú BBA Research.
Great opportunity for consolidation
Independents losing market-share for large drugstore chains
Market share by channel – number of stores, 2011 (%)
Top 5 retail chains market share
Medicine revenues, pharmaceutical market (%)
Market Drivers
Fragmented market. Opportunity to capture share of independent chains
62.0% 59.9% 55.1% 51.5% 49.1% 48.3% 47.9%
16.1% 17.0%
20.1% 22.6% 22.2% 22.7% 17.4%
5.5% 6.3% 6.5% 6.2% 6.5% 6.4%
5.5%
16.4% 16.8% 18.3% 19.7% 22.2% 22.6% 29.2%
2005 2006 2007 2008 2009 2010 2011
92.3% 91.7% 91.2% 90.8% 90.6% 89.3% 88.0%
5.1% 5.5% 5.8% 6.0% 6.0%
6.8%
6.6%
0.7% 0.8% 0.9% 1.0% 1.0% 1.2%
0.9%
1.9% 2.0% 2.1% 2.2% 2.4% 2.7% 4.5%
2005 2006 2007 2008 2009 2010 2011
29.2% 34.0%
66.0%
78.0%
70.8% 66.0%
34.0%
22.0%
Brazil Mexico USA Chile
Top 5 Others
Brazilian market is still very
fragmented
Market Share by channel – Income, 2011 (%)
Abrafarma Top 6 to10
Abrafarma Top 5
Independents
Supermarkets / Other chains
9. 9
Dream
Mission
People
• To be the best Drugstore Chain
in the country helping to
create a healthier world
• Provide health and well-being to our
customers
• Create Long-term partnerships with
our suppliers
• To have the best working climate to
develop our talents
• To be profitable to our Shareholders
• Attitude to go beyond
• Etics in all we do
• Proud to belong
• Focus on results
• Meritocracy to recognize our
talents
One Company, One Culture
11. 11Source: Brazil Pharma; Note: (1) Ranking by number of owned stores as of December 31, 2012 considering the four largest Drugstore chains in Brazil; (2) n/a: Other chains do not have
operations in the region
Drugstore ranking per Region
Number of Stores
1
4th
2nd
1st
Northeast
n/a
(2)
3rd
North
n/a
(2)
n/a
(2)
Southeast
n/a
(2)
Mid-west
n/a
(2)
South
n/a
(2)
Strong Local Knowledge
Number one in four out of five regions
12. 12
North 109
Northeast 244
Midwest 121
Southeast
South 207
REGIONS
Owned stores
10
1
108 20
15
21
11
198
7
75
116
1
9
237 Owned stores
116 Owned stores
121 Owned stores
369 Franchises
207 Owned stores
05 Distribution centers
Footprint 1,050 stores
89
86
Brazil Pharma footprint and clusters
Source: Brazil Pharma
National Footprint
The number one drugstore chain outside of the Southeast
2
13. 13
10.0%
12.4%
8.6%
16.2%
13.8% 15.1%
1Q11 2Q11 3Q11 1Q12 2Q12 3Q12
Number one in organic growth
Organic Growth (# owned stores)
Brazil Pharma Abrafarma
Branded GenericsHPC
Number one in sales mix
(3Q12)
Number one in regional growth
(CAGR07’-11’)
Strong growth potential
Number one in growth
Source: Brazil Pharma and IMS Health.
64.9%
28.5%
11.7%
37.1%
45.9%
17.0%
Number one in Same Store Sales
(3Q12)
333
90
95
109 54 681
2009 3Q12Openings
2011
Openings
9M12
Openings
2010
Openings
2009
1
1
1
1
15. 15
Footprint at and 12 months later the IPO
663 Points of sale
302 Owned Stores
361 Franchises
Platform @ IPO Actual Platform
207 Owned stores
369 Franchises
237 Owned stores
121 Owned stores
116 Owned stores
1,050 Points of sale
681 Owned stores
369 Franchises
89 Owned stores
60 Owned stores
153 Owned stores
361 Franchises
(1) Sant’Ana’s Distribution Center caught fire on December 2011. A new distribution center was inaugurated on November, 2012 ; (2) Includes 11 stores acquired from Estrela
Galdino on April , 2012 and added to Sant’Ana’s store count in June 30, 2012.Therefore they generated no revenues in 9M12.
1
(1Q11) (3Q12)
Distribution Center
Owned stores
Franchises
Increasing Footprint Since IPO
Strong delivery since the IPO…
16. 16
Increasing operational efficiency and stores productivity
Source : Brazil Pharma ; Notes: (1) Considers total stores and distribution centers employees ; (2) Considers total employees (store, distribution centers and administrative).
3.7 7.4
22.6 19.7
BRPH @ IPO (1Q11)
34,4 51.3
BRPH 3Q12
1.5 3.8
-13%
+100%
+153%
+49%
Store EBITDA / employee1
(R$ thousand)
# of store employees
per store
Sales per store / employee
(R$ thousand)
EBITDA / employee2
(R$ thousand)
Operational Performance Since IPO
...not only in growth, but also on the performance
3.8 3.6 -5%# of administrative + distribution
center employees per store
Stores Performance
Administrative Performance
17. Renato Lobo
Investor Relations Director
Otavio Lyra
Investor Relations Manager
Marina Sousa
Investor Relations Coordinator
Phone: +55 (11) 2117- 5299
E-mail: ri@brph.com.br
IR Website: ww.brph.com.br
IR CONTACT
Centro de Serviços Compartilhados - CSC, Brasília, DF
