Profarma's market share reached a record 12.0% in 3Q07, with gross revenues growing 31.9% to R$698.2 million compared to 3Q06. Net earnings increased 94.9% to R$8.2 million due to strong sales growth across branded, generic, and OTC products. Adjusted EBITDA was R$21.6 million for 3Q07, a 12.9% increase over 3Q06, demonstrating improved profitability.

1. 3Q07 Earnings Release
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2. Highlights For The Period
• Profarma’s market share breaks Record and reaches 12.0%, which is 1.3 percentage point
above the share achieved in 2Q07.
• Growth of 31.9% in consolidated Gross Revenues, reaching R$ 698.2 million, well above the
figures for the same period in 2006.
• Growth of 94.9% in Net Earnings, reaching R$ 8.2 million, when compared to 3Q06.
• Adjusted EBITDA was R$ 21.6 million for 3Q07, growth of 12.9% in relation to the R$ 19.1
million posted in 3Q06.
• Cash cycle reduce by 2 days in relation to the previous quarter.
• New regions of Pernambuco (PE), Ceará (CE) and Rio Grande do Sul (RS) showed strong
growth in relation to 2Q07, achieving Gross Revenues of R$ 55.7 million.
• Reduction of 29.0% in errors per million units shipped, dropping from 204.3 recorded in 2Q07
to 145.0 in 3Q07.
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3. Gross Revenues Evolution
In R$ MM
31.9%
698.2
609.7
529.4
3Q06 2Q07 3Q07
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4. Gross Revenues Breakdown
In R$ MM
(R$ Million) 3Q07 3Q06 % Variation 2Q07 % Variation
Branded 475.2 361.2 31.6% 404.7 17.4%
Generics 50.4 30.5 65.4% 35.6 41.6%
OTC 125.5 89.9 39.6% 120.2 4.4%
Health and Beauty Products 32.6 36.5 -10.7% 36.7 -11.1%
Other 14.3 11.2 27.9% 12.2 17.4%
Services Rendered 0.1 0.1 -20.0% 0.3 -68.9%
Total 698.2 529.4 31.9% 609.7 14.5%
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5. Market Share (%)
12.0
10.7
9.3 9.6 9.6
8.4
2003 2004 2005 2006 2Q07 3Q07
Source: IMS
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6. Gross Profit and Revenues
from Services to Suppliers
In R$ MM and
10.7% % Net Revenues
10.2%
9.9%
11.2
7.0
1.7
44.1 50.0 50.7
3Q06 2Q07 3Q07
Gross Profit Revenues from Services to Suppliers Adjusted GP Margin (%)
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7. Operating Expenses
In R$ MM and
% Net Revenues
7.9% 7.9%
6.8%
48.0
42.0
31.8
3Q06 2Q07 3Q07
EXPENSES: General and Administrative + Selling and Marketing + Logistics and Distribution
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8. Net Financial Expenses
In R$ MM and
% Net Revenues
1.8%
8.5 0.9%
0.5%
5.2
2.8
3Q06 2Q07 3Q07
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9. Net Income
In R$ MM and
as % Net Revenues
1.6% 1.3%
0.9%
8.3 8.2
4.2
3Q06 2Q07 3Q07
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10. Adjusted EBITDA and
EBITDA Margin
In R$ MM and
as % Net Revenues
4.1%
3.7% 3.6%
21.6
19.1 19.7
3Q06 2Q07 3Q07
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11. Cash Flow
(R$ Million) 3Q07 3Q06 % Variation 2Q07 % Variation
Cash Flow Used in Operating Activities (31.6) (59.4) 46.9% (67.1) 53.0%
Internal Cash Generation 14.7 8.7 68.4% 17.1 -14.1%
Operating Assets Variation (46.2) (68.1) 32.1% (84.2) 45.1%
Trade Note Receivable (35.5) (39.3) 9.6% (22.4) -58.6%
Inventories (1.9) (35.4) 94.5% (41.3) 95.3%
Suppliers (13.4) 9.1 n.a. (8.9) -50.1%
Other Items 4.6 (2.6) n.a. (11.6) n.a.
Cash Flow Used in Investing Activities (11.6) (1.8) -542.8% (1.2) -855.5%
Cash Flow Generated / (Used) by Financing Activities (6.1) 58.8 n.a. (0.0) -24428.0%
Net Increase (Decrease) in Cash (49.3) (2.4) -1938.6% (68.4) 27.8%
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12. Cash Flow
3Q06 4Q06 1Q07 2Q07 3Q07
Cash Cicle – Days 49.3 53.4 62.5 69.6 67.8
Accounts Receivable (1) 45.2 50.0 54.6 53.1 50.9
Inventories (2) 33.1 44.7 43.4 47.2 41.3
Accounts Payable (3) 29.0 41.3 35.6 30.7 24.5
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Avarege of COGS in the Quarter
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13. Indebtedness
In R$ MM
Net Debt (R$ MM) and Net Debt / Ebitda
3.0
0.9 1.5
202.3
114.0
68.6
3Q06 2Q07 3Q07
Ebitda = last of 12 months
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14. Capex
In R$ MM and
As % Net Revenues
1.9%
0.4%
11.7
0.2%
2.1
1.2
3Q06 2Q07 3Q07
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15. Operating Indicators
Service Level Logistics E.P.M.
(units served / units requested) (Errors per Million)
93.7% 204.3
92.0% 157.5
145.0
87.6%
3Q06 2Q07 3Q07 3Q06 2Q07 3Q07
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16. 25
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17. RI Contact:
Max Fischer
CFO and IRO
phone.: 55 (21) 4009 0276
E-mail: ri@profarma.com.br
www.profarma.com.br/ir
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