Profarma is a Brazilian pharmaceutical wholesale distributor that had its IPO in 3Q06. Some key highlights from the document: 1) In 3Q06, Profarma reported gross revenues growth of 16.4% over 3Q05 and net income growth of 20.8%. Adjusted EBITDA grew 11.4% year-over-year. 2) Operating expenses as a percentage of net revenues declined across all categories compared to the prior year periods. 3) Since its IPO, Profarma's stock price has generally tracked the broader Brazilian market, with some volatility.

2. Conference Call – 3Q06 Results

4. Profarma’s Overview
Pharmaceutical Manufacturers Drug Retailers
BA
GO
DF
MG ES
S
RJ
PRP
SC
• 8 Distribution Centers Distribution Centers
• > 9,100 Orders Daily
• Additional Value Added Services
# 120 manufacturers # 23,800
served by Profarma Points-of-Sale
Supplied by Profarma
Profarma is the fastest growing wholesale distributor of pharmaceutical
and personal care products in Brazil

5. Investiment thesis
Positive Sector
Dynamics
Strong Multiple
Financial Growth
Performance Opportunities
Experienced
Management Key Player
Team
Proven Track
Record

6. Highlights – 3Q05 vs. 3Q06
- Profarma’s IPO inaugurates company’s new moment
- Trade of 17.8 million common shares at R$ 22.50
- Gross funding of R$ 401.0 million
- Primary Offer of R$ 310.5 million
- 3Q06 Gross Revenues of R$529 million, 16.4% growth over 3Q05
- Net Income totaled R$ 4.2 million, 20.8% more than in the 3Q05.
- Adjusted EBITDA reached R$ 19.1 million, 11.4% up year-on-year.

7. Gross Revenues Growth R$ Million
12.9% 16.4%
25.1%
1,439 529
1,725
1,274
125 455 47
1,443 131
97 253 35 90
101 307
1,102 229 76 80 31
252 103
59 60 75 28
185
34
1,184 873 985 361
1,030 312
823
2003 2004 2005 9M2005 9M2006 3Q05 3Q06

8. Net Income R$ Million
33.6% 70.5%
12.0% 20.8%
10.6
5.9
8.9
8.0
4.2
3.5
9M2005 9M2006 3Q05 3Q06
Net Income
Net Income, excluding expenses related to the IPO

9. Adjusted EBITDA
Adjusted EBITDA (R$ Million)
31.4%
13.8% 11.4%
61.6
35.7 47.1 42.8 48.7
17.1 19.1
2003 2004 2005 9M2005 9M2006 3Q05 3Q06
% of Net Revenues
3.6% 3.7% 4.1% 4.3% 4.1%
3.8% 3.8%
2003 2004 2005 9M2005 9M2006 3Q05 3Q06

10. % of Net Revenues
Operating Expenses
General & Administratives
2.46% 2.23% 2.14% 2.16% 1.94%
2.14%
2.34%
2.02% 9M2005 9M2006 3Q05 3Q06
Comercial & Marketing General and Administratives
2.34%
2.22% 2.21% 2.24% 2.51% 2.83%
2.34% 2.50%
Logistics & Distribution 2.93% 2.44% 2.49% 2.40%
2.92% 2.71% 2.88%
9M2005 9M2006 3Q05 3Q06
2.44% Comercial and Marketing Logistics and Distribution
Operating Expenses
7.43% 6.45% 7.11% 7.56% 6.27% 7.01% 6.38%
6.27%
9M2005 9M2006 3Q05 3Q06
2003 2004 2005 9M2006 Operating Expenses

11. Market Follow-up (from October 25 through November 10)
127 126.7
126.2
124 123.6
123.3 123.6
121
119.2
118 117.8 120.0
114.4
115.6
115
111.1
112
109
106 104.3
Vol/Neg 104.5
103.8 104.5
102.2
103 102.9
100.9
100.2 99.2 101.1
99.4 98.3 102.8 102.4 102.6 102.6
100
100.8
99.6 98.8 98.8 100.0
97 98.0
25-Oct-06 26-Oct-06 27-Oct-06 30-Oct-06 31-Oct-06 1-Nov-06 3-Nov-06 6-Nov-06 7-Nov-06 8-Nov-06 9-Nov-06 10-Nov-06
Ibovespa IGC Profarma