4Q16 Presentation

1. 2016 Results

2. 2016 | Capital Allocation Strategy

3. 3
In 2011, having completed the wholesale expansion to a national coverage, the strategic decision was to diversify in search of
higher returns for the company.
Profarma
2016 | Capital Allocation Strategy
2011
Acquisition 60%
Prodiet
2012
Acquisition 80%
ArpMed
Acquisition 40% Prodiet (remaining)
Acquisition 50% Tamoio
Acquisition 100% Drogasmil/ Farmalife
2013
2014
Acquisition 20% ArpMed (remaining)
Joint Venture AmerisourceBergen
2015
Acquisition 50% Tamoio (remaining)
Acquisition 100% Íntegra
2016
Acquisition 100%
Rosário

4. 625 631 662 776
578 571
709
41 68
101
53 68
96
156
272
389
571
625 672 730
1,032
903
1,028
1,376
2010 2011 2012 2013 2014 2015 2016
10.8% 10.9% 10.9%
12.2%
13.4% 14.0% 14.3%
Profarma | Histórico Alocação de Capital
Profarma
2016 | Capital Allocation Strategy
Invested Capital Evolution – Profarma Group
(R$ million)
Pharma: 10.6% - last 5 years average.
Specialties: 12.6% - last 5 years average for a adjusted EBITDA margin of 3.2%.
Retail: 19.2% - top 3 players average.
Consolidated: Weighted average potential ROIC, considering each division’s potential ROIC.
4
Invested Capital: Equity + Net Debt
ROIC: NOPAT /Invested Capital
Potential
ROIC
Pharma Consolidated potential ROICSpecialties Retail

5. Profarma
Drogasmil | Turnaround
5
Monthly Average Sales per Store
# of stores and R$ thousands
84
74 67 67 63 60 62 64 64 67 67 68 67 67 68 67
165
262
314 329 324 346 365 385 375 375 385 401 411
442 418
456
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
# of stores Monthly average sale

6. • Niche brands
• More competitive market
• Long period with no supply
• Renewal of 70% of stores from the original platform
• Complete brand renewal
• Hiring of 400 employees in 3 months
• Replacement of 100% of the technological platform
• Directors and managers team build up on going
Profarma
Case Drogasmil versus Rosário
• Leading brand
• Less competitive market
• Short period with no supply
• Stores in good condition
• Brand update (implemented in May/17)
• Staff complete
• Migration from SAP legacy to SAP d1000
• Complete management team
6

7. 54.0
29.6
24.8
28.3
31.8
38.1
Dec-15 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Profarma
Rosário Integration Evolution
Gross Revenues Evolution - Rosário
(R$ million)
*
*
Acquisition of Rosário by Profarma in 09/22/16
Potential
of 59.0
Considering the average price increase of 10.5% occurred in March 2016(1)
(1)
7
+54%

8. ??
Fonte: Companies estimations
# of stores (2015)
Combined Operation
Brazil’s main competitors
Note (1): Considering 100% of Rede Tamoio, CSB Brasil (“Drogasmil” and “Farmalife”) and Rosário.
Em R$ billion (2015)
Brazil’s main competitors
+
Profarma
d1000 | Overview of the Combined Retail Operation
• Regions with different competitive environments assuring a
more balanced gross margin.
• 2nd largest in number of stores considering the regions where it
acts.
o Midwest leader
o 2nd in Rio de Janeiro
• 6th largest in number of stores in Brazil.
• Brand portfolio with complementary positioning.
• Platform that allows accelerated organic expansion.
• Scale
+
9.0
7.0
4.8
2.6
1.6 1.5 1.4 1.4 1.1 0.6 0.4
1º 2º 3º 4º 5º 6º 8º 9º 10º 11º7º
1,235
1,079
828
381 347 279 254 248 240 150 125
1º 2º 3º 4º 5º 7º 8º 9º 10º 11º6º
8

9. Profarma’s Model Benefits

10. 42.0 38.7
58.2
77.6
89.1
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Integrated logistic structure enables a promptly accelerated
inventory recovery in various regions.
Benefícios do Modelo Misto
Supply agility
47%
56%
65%
80%
82%
Service Level
(R$ million)
Inventories
Profarma
Profarma’s Model Benefits to the Retail Division
Lower working capital
3Q16 (Days)
Accounts Receivable 19.0
52.9
47.9
24.0
21.8
88.4
60.3
50.0
25.0
96.0
65.0
56.0Cash Cycle
Accounts Payable
Inventories
Optimized working capital and a cash cycle 30 days shorter than
the average of other retail players.
*
*
10
+130%
Player A Player B
Acquisition of Rosário by Profarma in 09/22/16
Source: Companies website
Normalized estimate d1000 varejo farma cash cycle
* *

11. Combined purchsing power between retail and
wholesale assures more competitive prices
Benefícios do Modelo Misto
Profarma
Profarma’s Model Benefits
Average top 3
retail players
11
Variation %
CATEGORY A
-2% RJSP
R$ 93
Example: Retail RJ 100 Basis
Variation %
CATEGORY B
-17%
RJ
R$ 91
RJSP
R$ 42
RJ
R$ 35
More competitive prices when buying inside the state
directly from the wholesale
Relevance to Suppliers| 2016
(R$ billion)
Tax Optimization
+
Source: Companies website
5.5
5.6

12. Benefícios do Modelo Misto
Drugstore market – Sales evolution
Profarma
Profarma’s Model Benefits
G&A Sinergies
• Distribution center shared with wholesale clients – 35 thousand
clients supplied nationally.
• Shared Services Center: legal, fiscal, internal audit and human
resources.
• Better production balancing – optimization of the distribution
center as the production of d1000’s volume occurs in its idleness
time.
12
Source: Close Up | Abafarma: Associação Brasileira do Atacado Farmacêutico
Wholesalers with lower dependence on big chains and market share
growth with higher rates.
(R$ billion) VAR ANO
ANT. %
13.3%
11.7%
15.6%
13.0%
1.0%
14.3%
5.3%0.8%
1.5%
3.0%
4.3%
11.7%
25.6%
53.1%
57,4
0.9%
1.5%
3.3%
4.3%
11.4%
25.8%
52.9%
50.7
3.5%
26.2%
52.1%
64.7
11.2%
MAT Jan/17MAT Jan/15 MAT Jan/16
Big Chains Independent Associations Small Chains
Medium Chains Delivery Partner Pharmacies
1.0%
1.6%4.3%
VAR ANO
ANT. %

13. 2016 Results

14. Destaques | Abertura por Divisão
Specialties(*)
2015 2016
766.7
84.3
66.4
16.0
967.9
101.6
77.3
17.3
Retail(**)
2015 2016
748.7
222.3
200.6
13.4
839.4
253.9
230.2
18.7
Consolidated(*)(**)
2015 2016
4,913.5
649.4
524.8
114.7
5,529.7
726.9
582.1
144.6
Pharmaceutical
Distribution
2015 2016
3,739.3
342.9
257.8
84.4
4,201.1
371.4
274.4
108.7
Gross Revenues
Gross Profit
SG&A
Ebitda
(*) pro forma figures: 100% of Specialties in 2015 and 2016.
(**) pro forma figures: 100% of Tamoio in 2015.
Profarma
Highlights | Breakdown by Division
14

15. Consolidated Performance

16. 3,398
3,722
749
839
767
968
4,914
5,530
Consolidado | Receita Bruta
12.5%
pro forma (R$ million)
Specialties
Pharma Distribution
Sales increased by 12.4% year-over-year.
Sales increased by 26.2% year-over-year.
Sales increased by 12.1% year-over-year.
Retail
2015 2016
Profarma
Consolidated | Gross Revenues
16
Pharma Distribution Retail Specialties

17. 2.3%
3.0%
2015 20162015 2016
Consolidado | Ebitda e Margem Ebitda Ajustada
85
109
-4
19
-1
-3
80
124
85
109
13
19
16
17
115
145
3.0%
2.7%
Profarma
Consolidated | EBITDA and EBITDA Margin
17
Pharma Distribution Retail Specialties
Consolidated IFRS (R$ million and % Net Revenues) pro forma (R$ million and % Net Revenues)

18. Consolidado | Ebitda e Margem Ebitda Ajustada
Profarma
Consolidated | EBITDA and EBITDA Margin
18
Pharma
Distribution
2015 2016Equity Income
Specialties
Rosário d1000
Consolidated IFRS
Ebitda Bridge per Division 2016 vs 2015 (R$ million)
pro forma
2015 2016
24.3
-6.3
29.0
-3.0
79.6
123.9 24.3
-6.3
10.7 1.3
114.6
144.6
Pharma
Distribution
SpecialtiesRosário d1000

19. Consolidado | Lucro Líquido
2016
2015 2016
X
C
(11.6)
(14.5)
(0.5)
X
C X
C
X
C
(9.1)
(21.2)
(49.0)
(8.3)
2015 2016
(54.5)
-0.6%
-1.2%
-0.3%
-0.2%
-1.1%
-0.2%
-0.3%
0.0%
Profarma
Consolidated | Net Income
19
Net Income
Adjusted Net Income
pro forma Net Income
pro forma Adjusted Net Income
pro forma (R$ million and % Net Revenues)Consolidated IFRS (R$ million and % Net Revenues)

20. Consolidado | Lucro Líquido
Profarma
Consolidated | Net Income
20
2015
Adjusted Net Income Bridge per Division 2016 vs 2015 (R$ million)
pro forma
Financial
Expenses
Tamoio’s
Balance
2016d1000 Others
Pharma
Distribution
Rosário
Equity Income
Specialties
Non-recurring expenses
2015
Financial
Expenses
Tamoio’s
Balance
2016d1000 Others
Pharma
Distribution
Rosário Specialties
Non-recurring expenses
Consolidated IFRS
3.1
24.9
-9.9
-3.0
-14.5
0.2-9.1
-21.2
-48.9
-8.3
3.1
16.0
-9.9
-6.0
-14.5
0.2
-0.5
-14.5
-54.5
-11.6

21. Capex
2016OtherIT
Machinery and
Equipment
32.28.4
4.3
19.5
4Q15 4Q16
415.2
236.6
3.0x
3.3x
4Q16
w/o Rosário
353.2
2.7x
Profarma
Consolidated | Capex and Indebtedness
21
Net Debt and Net Debt / EBITDA (R$ million)Capex (R$ million)

22. Attachments

23. 3,398
3,722
749
839
767
968
861 911 906 925 980
198
196 205 198
241
224
231 246 241
249
4,914
5,530
1,279
1,338 1,357 1,364
1,470
3,673 3,862
308
839
919 930 945 965 1,022
82
196 205 198
241
3,981
4,701
1,001
1,126 1,150 1,163
1,263
Consolidado | Receita Bruta
4Q15 2Q16 3Q161Q16 4Q162015 2016 4Q15 2Q16 3Q161Q16 4Q162015 2016
18.1% 26.1% 12.5% 14.9%
Profarma
Consolidated | Gross Revenues
23
Consolidated IFRS (R$ million and % Net Revenues) pro forma (R$ million and % Net Revenues)
Pharma Distribution Retail Specialties

24. 343 371
94
254
82 75
114
94 88
24
58
63
60 72
437
625
106
133
178
154
160
343 371
222
254
84
102
82 75
114
94 88
56 58
63
60 72
24 24
31
24 23
649
727
162 158
208
178 183
Consolidado | Lucro Bruto
4Q15 2Q16 3Q161Q16 4Q162015 2016
12.6%
15.3%
12.2%
13.6%
17.8%
15.2%
14.6%
4Q15 2Q16 3Q161Q16 4Q162015 2016
15.0%15.0%
14.4%
13.5%
17.6%
14.9%
14.3%
Profarma
Consolidated | Gross Profit
24
Consolidated IFRS (R$ million and % Net Revenues)
Pharma Distribution Retail Specialties
pro forma (R$ million and % Net Revenues)

25. 258 274
100
230
67 60 66 69
79
26
52
53 51
74358
505
93
112
120 120
153
258 274
201
230
66
77
67 60 66 69
79
52
52
53 51
74
18
18
20 20
19525
582
138
130
140 140
172
Consolidado | Despesas Operacionais SGA
4Q15 2Q16 3Q161Q16 4Q162015 2016 4Q15 2Q16 3Q161Q16 4Q162015 2016
12.4%
10.3%
10.8%
11.5%
12.0% 11.8%
14.0%
12.0%12.1% 12.3%
11.1%
11.8%
11.7%
13.4%
Profarma
Consolidated | Operating Expenses - SGA
25
Consolidated IFRS (R$ million and % Net Revenues)
Pharma Distribution Retail Specialties
pro forma (R$ million and % Net Revenues)

26. 85
109
13
19
16
17
20 18
45
30
16
2
4
10
7
-2
5
4
5
2
6
115
145
28
26
60
39
20
85
109
-4
19
-1
-3
20 18
45
30
16
-1
4
10
7
-2
0
-1 -1 -2
0
80
124
18
21
54
35
14
pro forma (R$ million and % Net Revenues)
Consolidado | Ebitda e Margem Ebitda Ajustada
4Q15 2Q16 3Q161Q16 4Q162015 2016 4Q15 2Q16 3Q161Q16 4Q162015 2016
Pharma Distribution Retail Specialties
2.3%
2.1% 2.1%
5.4%
3.5%
1.3%
3.0% 3.0%
2.5% 2.2%
5.1%
3.3%
1.6%
2.7%
Profarma
Consolidated | EBITDA and EBITDA Margin
26
Consolidated IFRS (R$ million and % Net Revenues)

27. Consolidado | Lucro Líquido
Net Income
Adjusted Net Income
4Q163Q16
2Q16
4Q15 1Q16
pro forma Net Income
pro forma Adjusted Net Income
2016
2015 2016
8.5
(6.2)
(9.3) (9.5)
(18.8)
16.0
(7.3)
(4.4)
0.8%
0.1%
-1.8%
1.6%
-0.5%
-0.9%
-3.5%
-0.6%
-0.8%
1.3%
0.0%
-1.5%
-0.6%-0.3%
0.6%
-1.0%
-3.1%
-0.6%
-0.9%
(11.6)
(39.6)
(6.8)
(18.9)(14.5)
(0.5)
7.5
15.0
4T16
pro forma (R$ million and % Net Revenues)
(9.1)
(21.2)
1.0
(38.6)
Consolidated IFRS (R$ million and % Net Revenues)
(49.0)
(8.3)
4Q163Q16
2Q16
4Q15 1Q162015 2016
(54.5)
(3.9)
-0.6%
-1.2%
-0.3%
-0.2%
-1.1%
-0.2%
-0.3%
0.0%
(12.2)
(0.1)
(10.2)
(6.9)
Profarma
Consolidated | Net Income
27
-0.9%
X
C
X
C

28. Capex
2016
OtherIT
Machinery and
Equipment
32.28.4
4.3
19.5
Profarma
Consolidated | Capex and Indebteness
28
4Q15 2Q16 3Q161Q16 4Q16
287.7
428.4
415.2
236.6
3.0x
3.3x
3.8x
3.1x
3.3x
397.8
353.2
2.7x
4Q16
w/o Rosário
Net Debt and Net Debt / EBITDA (R$ million)Capex (R$ million)

29. 8.18.2
7.6
8.9
10.3
9.9
4,201.1
2015 2016
3,739.3
2015 2016 2015 2016 2015 2016
Financial Data (R$ million and % Net Revenue)
EBITDA shot up by 28.8% to R$
108.7 MM, with 3.0% EBITDA
margin;
Operating expenses shrank by
0.4 p.p., from 8.0% to 7.6%;
and
The Independent customers
segment grew by 20.6%.
955.1
1,136.3
10.6
8.0
2.6
3.0
2.4
1.6
Pharma Distribution
Financial Performance
29
EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
4Q15 4Q16 4Q15 4Q16 4Q15 4Q16 4Q15 4Q16

30. Especialidades
8.2
8.8
9.4
10.2
11.5
11.4
967.9
Crescimento de 6,3% nas vendas da
categoria de genéricos.
Aumento de 12,3% no lucro bruto, que
alcançou R$ 94,2 milhões e margem
bruta de 10,5%;
Financial Data (R$ million and % Net Revenue)
Operating expenses slid by 0.7
p.p., from 9.4% to 8.7%;
Sales to the private sector rose
by 37.8%; and
Oncologicals sales boomed by
34.7%.
766.7
224.1
249.0
11.9
8.7
2,3
2,0
2,6 2,6
Specialties
Financial Performance
30
4Q15 4Q16 2015 2016 4Q15 4Q16 4Q15 4Q162015 2016 4Q15 4Q162015 20162015 2016
EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)

31. Varejo
EBITDA Margin
(%)
27.0
26.4
Op. Exp. SG&A
(%)
26.8
29.4
Gross Margin
(%)
30.1
4Q15 4Q16
28.5
Gross Revenues
(R$ million)
801.3
Crescimento de 6,3% nas vendas da
categoria de genéricos.
Aumento de 12,3% no lucro bruto, que
alcançou R$ 94,2 milhões e margem
bruta de 10,5%;
2015 2016 4Q15 4Q16 4Q15 4Q162015 2016 4Q15 4Q162015 2016
Financial Data (R$ million and % Net Revenue)
Gross margin rose by 0.4 p.p.
to 30.1%;
EBITDA shot up by 86.1% to R$
25.0 MM, with 3.1% EBITDA
margin; and
Average monthly sales per
mature store came to R$ 579.8
thousand, 8.6% higher than
ABRAFARMA’s.
2015 2016
748.7
198.1
202.4
29.7 26.4
3.1
1.8
1.2
2.3
Retail
Financial Performance (w/o Rosário)
31

32. Total Sales Growth (%) Same Store Sales (%) SSS Mature Stores (%)
Retail
Operating Performance (w/o Rosário)
32
4Q15 2Q16 3Q161Q16 4Q162015 2016
-6.2 p.p.
3.9%
11.1%11.3%
10.6%
1.4%
12.3%
6.1%
4Q15 2Q16 3Q161Q16 4Q162015 2016
-4.4 p.p. -8.2 p.p.
-9.2 p.p.
2.5%
8.5%
9.6%
8.2%
0.0%
9.4%
5.0%
3.7%
10.5%
12.4 %
4Q15 2Q16 3Q161Q162015 2016
-5.2 p.p. -9.1 p.p.
11.3%
2.2%
12.2%
7.0%
4Q16

33. Monthly Average Store's Sales (mature)
(R$ thousand) # of Stores (units) Average Ticket (R$)
4 opening
4 close-down
6 reformulated
102 mature
Retail
Operating Performance (w/o Rosário)
33
564.0
589.7
549.2
4Q15 2Q16 3Q161Q16 4Q162015 2016
5.7% 4.2%
556.5
4Q15 2Q16 3Q161Q16 4Q162015 2016
580.1
548.4
579.8
130
129
128
129 129129 129
4Q15 2Q16 3Q161Q16 4Q162015 2016
9.8% 10.7%0.0%
35.8335.82
34.49
32.84
36.36
32.45
35.62
0.0%

35. Max Fischer - CFO & IRO | Beatriz Diez - IR Manager
Tel.: 55 (21) 4009-0276 | E-mail: ri@profarma.com.br
www.profarma.com.br/ir