Earnings Release 3Q12

November 13th , 2012

OPERATING AND FINANCIAL HIGHLIGHTS

3Q12

2

• Gross revenues of R$804.4 million, an increase of 19.4% over 3Q11

• Total SSS (same-store sales) of 15.1%, with 7.8% for mature stores

• Gross margin of 30.7%, an increase of 0.6 p.p over the 30.1% posted in 2Q12

• Adjusted EBITDA of R$52.3 million, an increase of 18.8% over 3Q11

• Adjusted EBITDA margin of 6.5%, in line with 3Q12 and 0.3 p.p over 2Q12

• Adjusted Net Income of R$26.9 million, equivalent to a 3.3% net margin

• 17 Stores opened (and 1 store closed) during the quarter

• Inauguration of two Distribution Centers, one in Brasilia, DF and another in Camaçari, Bahia

OUR OWNED STORE PLATFORMS

AND FRANCHISES

3

North 109

Northest 244

Midwest 121

Southeast

South 207

REGIONS

Owned stores

10

1

108 20

15

21

11

198

7

75

116

1

9

237 Owned stores¹

116 Owned stores²

121 Owned stores

369 Franchises

207 Owned stores

05 Distribution centers

Footprint

1,050 stores²

681 Owned stores

369 Franchises

89

1) Includes 45 stores of the Guararapes platform.

2) Includes 11 stores acquired from Estrela Galdino on April 2012, added to Sant’Ana’s store count. The stores were

acquired but not yet incorporated and therefore generated no revenues in 9M12.

121

207

116

237

249 50 17

12 1

2011 Acquisition Organicgrowth

Closing 1H12 Organicgrowth

Closing 3Q12

378

665 681

STORE OPENING AND

MATURATION PROFILE

Owned Stores by Maturation Stage

4

1) Includes 45 stores of the Guararapes platform.

2) Includes 11 stores acquired from Estrela Galdino on April 2012, added to Sant’Ana’s store count. The stores were acquired but not yet incorporated and

therefore generated no revenues in 9M12.

• 17 stores opened in 3Q12 (1 store closed)

• 67 stores opened in 9M12 (13 stores closed)

• 45.1% of our owned stores base are not yet at

a mature stage

1

2

14.2%

17.2%

13.7%

54.9%

Stores with less than 12 months

Stores with 12 to 24 months

Stores with 24 to 36 months

Stores with more than 36 months

673.6 804.4

1,839.4

2,250.6

3Q11 3Q12 9M11 9M12

10.0%

12.4%

8.6%

0,0%

16.2%

13.8% 15.1%

5.8%

8.9%

6.1%

12.1%

9.1% 7.8%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

SSS Total SSS mature stores (36 months or above)

ANALYSIS OF RESULTS Gross Revenues

(R$ Million)

Same Store Sales - Total and Mature Stores (SSS)

(%)

5

+19.4%

+22.4%

Sales Mix and Average Ticket Average Ticket

(R$)

Sales Mix

(%)

6

30.5

31.3

29.6

30.5

3Q11 3Q12 9M11 9M12

37.5% 36.5% 37.1%

16.4% 17.1% 17.0%

46.1% 46.4% 45.9%

1Q12 2Q12 3Q12

Non medicines Generic Medicine Branded medicine

Generic penetration in medicine sales

211.3 247.1

574.7

682.6

31.4% 30.7% 31.2% 30.3%

1,0%

3,0%

5,0%

7,0%

9,0%

11,0%

13,0%

15,0%

17,0%

19,0%

21,0%

23,0%

25,0%

27,0%

29,0%

31,0%

33,0%

3Q11 3Q12 9M11 9M12

Gross Profit Gross Profit and Gross Margin (% of Gross Revenues)

(R$ Million)

7

55.9 50.1 139.7 153.5 111.4 144.7

323.3 393.6

167.3 194.8

463.0

547.1

3Q11 3Q12 9M11 9M12

General & Administrative Sales expenses

8.3% 6.2% 7.6% 6.8%

16.5% 18.0% 17.6% 17.5%

24.8% 24.2% 25.2% 24.3%

3Q11 3Q12 9M11 9M12

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

SG&A Expenses

G&A Dilution

(R$ Million)

8

Selling, Administrative and General Expenses (SG&A)

(R$ Million)

3Q11 2011 1Q12 2Q12 3Q12

Proforma Proforma Proforma

Gross Revenues 673,6 2.558,4 699,3 746,9 804,4

G&A (55,9) (188,4) (51,5) (51,9) (50,1)

Over Gross Revenues (%) 8,3% 7,4% 7,4% 6,9% 6,2%

G&A Dilution

23.9 26.9

63.4 61.3

3.6% 3.3% 3.4%

2.7%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

4,0%

3Q11 3Q12 9M11 9M12

44.0 52.3

111.8

135.5

6.5% 6.5% 6.1% 6.0%

3,0%

3,5%

4,0%

4,5%

5,0%

5,5%

6,0%

6,5%

7,0%

3Q11 3Q12 9M11 9M12

Adjusted EBITDA and Adjusted Net

Profit Adjusted EBITDA and Adjusted EBITDA Margin (% of Gross Revenues)

(R$ Million)

Adjusted Net Profit (R$) and Adjusted Net Margin (% of Gross Revenues)

(R$ Million)

9

CASH FLOW, CASH CYCLE AND DEBT Debt

(R$ Million)

Cash Cycle

Cash Flow

(R$ Million)

10

Cash position and indebtedness 3Q11 4Q11 3Q12

(+) Loans and financing 70,8 64,4 149,1

Short term 23,0 22,4 44,0

Long term 47,8 42,0 105,2

(+) Debentures 260,8

Short term 12,5

Long term 248,3

(+) Accounts payable for investment acquisition 70,4 54,4 333,6

Short term 17,7 17,7 98,0 Long term 52,7 36,7 235,6

(=) Total Indebtedness 141,2 118,8 743,5

Short term (%) 28,8% 33,7% 20,8%

Long term (%) 71,2% 66,3% 79,2%

(-) Cash and cash equivalents (324,0) (263,6) (404,8)

(=) Net Debt (182,8) (144,8) 338,7

Net debt/Adjusted EBITDA (LTM) n/a n/a 1,9 X

Cash flow Statement 3Q11 3Q12

EBT 12,5 8,7

(+) Depreciation and amortization 6,8 13,4 (+) Others 6,2 28,2

- - Operating cash generation 25,5 50,3

(+) Change in working capital (47,2) (63,0) (+) Change in other non current assets /liabilities 80,9 13,6

- - Cash consumption 33,6 (49,4)

Net cash generated by operating activities 59,1 0,9

(-) Capex from operations (38,2) (48,7)

(-) Acquisitions (143,3) (20,5)

Net Cash from investing activities (181,5) (69,1) - -

(+/-) Loans and financing (10,2) (20,1)

(+) Equity funding 0,4 81,9

Net Cash from financing activities (9,8) 61,8

Change in cash and cash equivalents (132,3) (6,5) - -

Cash and cash equivalents - opening balance 456,3 411,3 Cash and cash equivalents - closing balance 324,0 404,8

Working capial 2Q12 3Q12

Accounts receivable 25 24

Inventories 92 95

Suppliers 54 49

Working capital in days 63 70

OPERATING PERFORMANCE FRONTS OF INTEGRATION

11

Logistic

Jadir

Tavares

Procurement

Renato

Stefanoni

Trade

Marketing

Rovilson

Apolinário

Operations

– N/NE

Ricardo

Kitamura

Operations

– NE (Bahia)

Wesley

Barbosa

Operations -

MW

Emílio

Azevedo

Operations -

S

Delmar

Raguzzoni

IT

Rogério

Segala

SSC

Juliana

Amaral

Commercial Integration

Carlos Dutra

Operations Integration

Rodrigo Silveira

Management – SSC

Integration

Flávio Sanchez

Fronts of Integration Experienced Management

Experience in retail / pharmaceutical industry

33 years 20 years 7 years

20 years

18 years 12 years 12 years 10 years 20 years 20 years

16 years 19 years

FRONTS OF INTEGRATION Commercial Department – Procurement, Logistics & Trade Marketing

12

New DC – Bahia Located in Camaçari

New DC – Distrito Federal Located in Brasilia

Non-reformed Reformed

FRONTS OF INTEGRATION Fronts of Integration – Operations Department

13

EMILIO JOSE DE AZEVEDO

WESLEY BARBOSA RICARDO KITAMURA DELMAR RAGUZZONI

Its our concern to offer our clients the same consumer experience on any

platform they are visiting ..

FRONTS OF INTEGRATION Fronts of Integration - SSC

14

• Lower Operating Cost

• Longer implementation time

• Higher Investments

• Higher Operating Cost

• Shorter implementation time

• Lower Investments

SSC Customer Service

HIGH TECNOLOGY RESOURCE

CENTRAL SERVICE

Resolution of Special

cases

Decision-Making

Self-Service Specialized Attendance

OPERATIONAL GROUP

COORDENATOR EXECUTIVE

Exceptional case

47% of the calls

Scope of Central

Attendance

OPERATING PERFORMANCE Farmais

15

• Purchases with negotiated conditions for over a thousand

stores – Larger margin

• Product financial fees are much more appealing

• Team expert in store management with trade know-how to

increase the store turn-over and brand visibility

• Inventory management and optimization of a regionalized

mix

• Regular training for store teams

• Technical team that facilitates and reduces the costs of all

regulatory processes, in addition to alert on all possible

renewals

• Support in decisions in order to avoid potential legal and

accounting issues

CAPITAL MARKETS BPHA3

165

93

Market closing on Nov. 12th, 2012

BPHA3 – R$/share: R$13.50

YTD performance: 58.8%

Outstanding Shares: 254.6 million

Market Cap: R$3.4 billion

16

Source: Bloomberg, November 12th, 2012

17

IMPORTANT NOTE

This document may contain forward-looking statements in relation to the Company and its subsidiaries which reflect the

current outlook and/or expectations of the Company and its management for its performance and its business and in

relation to future events. These forward-looking statements are subject to risk and uncertainty in respect of factors which

cannot be controlled or precisely estimated by the Company, such as market conditions, competitive environment,

currency fluctuations and changes in the inflation rate, alterations in regulatory and governmental bodies and other

factors affecting the Company's operations. As a result, the Company's future results may show material differences

from these projections.

The reader is warned not to take any investment decision exclusively on the basis of these forward-looking statements.

The forward-looking statements do not represent and should not be interpreted as a guarantee of future performance.

The Company does not undertake to publish any revision of these forward-looking statements, or to update them in the

face of events or circumstances which may arise after the date of this document.

This document contains operational information and other proforma management information which is internal to the

Company and not derived directly from the financial statements. This information has not been specially reviewed by the

Company’s independent auditors and may involve assumptions and estimates adopted by the management. This

information should not be considered as sufficient in isolation for any investment decision and should be read in

conjunction with the Company’s financial information that has been subject to limited review or audit and which is filed

with the Securities Commission (CVM).

No responsibility will be accepted by the Company and its subsidiaries, or by their board members, officers, agents,

employees, advisers or representatives, for any loss or prejudice arising from the use of the information presented or

contained in this document, or for any damage resulting, corresponding or specific thereto. Data included in this

document was obtained by means of internal research, market surveys, information in the public domain and business

publications; the Company has not confirmed the reliability of this data with the respective sources.

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

Website de RI: www.brph.com.br

18

IR CONTACT