- Net income rose 333.6% quarter-over-quarter to R$9.5 million, with a 1.4% net margin. Gross revenues grew 7.5% year-over-year to R$779.4 million. - Sales of health and beauty products, which increased for the sixth quarter in a row, rose 87.3% year-over-year. - Operating expenses fell 1.4 percentage points year-over-year to 7.5% of net operating revenue. Sales through electronic orders hit a record high of 68.6% of total sales.

1. 1

2. 2Q11 Earnings Release
August, 11th, 2011
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3. Highlights in the Period
• Net income rose by 333.6% quarter-over-quarter and totaled R$ 9.5 million, with a 1.4% net margin;
• Consolidated gross revenues grew 7.5% year-over-year, totaling R$ 779.4 million;
• Highlight for the health and beauty category, whose sales increased for the sixth quarter in a row. There was a steep year-
over-year increase of 87.3%;
• The positive operating cash flow amounted to R$ 50.0 million in 2Q11, or 7.6% of the net operating revenue;
• There was 5.8-day reduction in the cash cycle. This decrease resulted in a drop in working capital of about R$ 45.4
million;
• Operating (administrative, selling and logistics) expenses fell by 1.4 percentage point year-over-year and totaled 7.5% of
the net operating revenue;
• Sales through electronic orders hit a record high and accounted for 68.6% of total sales in 2Q11.
3 3

4. Gross Revenues Evolution
(R$ Million)
778.8 779.4
724.7
2Q10 1Q11 2Q11
4 4

5. Gross Revenues Breakdown
(R$ Million) 2Q11 2Q10 Chg. % 1Q11 Chg. %
Branded 512.2 477.5 7.3% 507.1 1.0%
Generic 45.7 50.3 -9.1% 54.5 -16.1%
OTC 141.3 143.8 -1.7% 148.7 -4.9%
Health and Beauty Products 53.9 28.8 87.3% 47.6 13.1%
Hospitals + Vaccines 26.3 24.3 7.9% 21.0 25.3%
Total 779.4 724.7 7.5% 778.8 0.1%
5 5

6. Market Share Evolution (%)
11.5 11.7
10.9*
10.2*
9.6 9.5* 9.9*
9.0*
2006 2007 2008 2009 2010 2Q10 1Q11 2Q11
*Excluding the similar’s effect Source: IMS and Profarma
6 6

7. Gross Profit and Revenues from Services to Suppliers
(R$ million and as % Net Revenues)
12.3%
10.7%
9.6%
25.1
27.4
24.0
49.7
39.1 42.9
2Q10 1Q11 2Q11
Gross Profit Revenues from Services to Suppliers Gross Profit Margin (%)
7 7

8. Operating Expenses
(R$ million and as % Net Revenues)
8.9%
7.7% 7.5%
53.8
50.7 49.5
2Q10 1Q11 2Q11
8 8

9. Ebitda and Ebitda Margin
(R$ million and as % Net Revenues)
3.6% 3.2%
1.7%
21.8
20.7
10.9
2Q10 1Q11 2Q11
9 9

10. Net Financial Expenses
(R$ million and as % Net Revenues)
1.9%
1.3%
1.1%
11.8
8.8
7.2
2Q10 1Q11 2Q11
10 10

11. Net Profit
(R$ million and as % Net Revenues)
1.9%
1.4%
0.3%
11.4
9.5
2.2
2Q10 1Q11 2Q11
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12. CASH FLOW
(R$ Million) 2Q11 2Q10 Chg. % 1Q11 Chg. %
Cash Flow Generated / (Used) in Operating Activities 50,0 46,8 6,9% (80,2) -
Internal Cash Generation 19,8 17,6 12,7% 10,4 90,6%
Operating Assets Variation 30,2 29,2 3,5% (90,6) -
Trade Accounts Receivable 37,3 28,3 31,7% 22,9 62,6%
Inventories 46,3 92,4 -50,0% (30,8) -
Suppliers (48,7) (105,2) 53,7% (74,7) 34,8%
Other Items (4,6) 13,7 - (8,1) 42,9%
Cash Flow (Used) in Investing Activities (1,8) (1,9) 3,3% (1,3) -43,2%
Cash Flow Generated / (Used) by Financing Activities (51,0) (53,7) 5,1% 81,1 -
Net Increase / (Decrease) in Cash (2,8) (8,8) 68,5% (0,4) -659,2%
12 12

13. Cycle IFRS Basis
2Q10 1Q11 2Q11
Cash Cycle (Days) * 66.3 64.5 60.4
Accounts Receivable (1) 42.2 43.9 39.4
Inventories (2) 48.8 59.3 53.1
Accounts Payable (3) 24.8 38.7 32.0
* Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
13 13

14. Indebtedness: Net Debt and Net Debt / Ebitda*
(R$ million)
2.7x 2.2x
1.4x
194.8
157.1
132.5
2Q10 1Q11 2Q11
* Ebitda = Accumulated last 12 months
14 14

15. Capex
(R$ million and % as Net Revenues)
0.3% 0.2% 0.3%
1.9 1.9
1.3
2Q10 1Q11 2Q11
15 15

16. Operating Indicators
Service Level Logistics E.P.M.
(Units served/ Units requested) (Errors per Million)
89.6% 89.5% 337.0
88.6%
144.0
121.0
2Q10 1Q11 2Q11 2Q10 1Q11 2Q11
16 16

17. Profarma vs Ibovespa - % (2Q11)
115
110
105
100
97
95
91
90
85
31-Mar-11 15-Apr-11 30-Apr-11 15-May-11 30-May-11 14-Jun-11 29-Jun-11
Ibovespa Profarma
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18. Analyst Coverage
Company Analyst Telephone E-mail
Javier Martinez de Olcoz Cerdan (1 212) 761-4542 javier.martinez.olcoz@morganstanley.com
Morgan Stanley
Clarissa Berman (55 11) 3048-6214 clarissa.berman@morganstanley.com
Merrill Lynch Alexandre Pizano (55 11) 2188-4024 alexandre.pizano@baml.com
Credit Suisse Marcel Moraes (55 11) 3841-6302 marcel.moraes@credit-suisse.com
Juliana Rozenbaum (55 11) 3073-3035 juliana.rozenbaum@itausecurities.com
Itaú BBA
Marcio Osako (55 11) 3073-3040 marcio.osako@itausecurities.com
Banco Fator Iago Whately (55 11) 3049-9480 iwhately@bancofator.com.br
Raymond James Guilherme Assis (55 11) 3513-8706 guilherme.assis@raymondjames.com
BTG Pactual João Carlos dos Santos (55 11) 3383-2384 joaocarlos.santos@btgpactual.com
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