Brasil Pharma is a leading pharmaceutical retailer in Brazil operating over 1,000 stores across five regional chains and a franchise system. In 2012, Brasil Pharma underwent a process of integrating its regional brands under a single national Brasil Pharma identity and culture. This included launching a new corporate brand and shared services center, restructuring the commercial department, and standardizing store operations. Brasil Pharma's goal is to be the best drugstore chain in Brazil by providing health and well-being to customers, long-term partnerships with suppliers, a good working environment for employees, and profitability for shareholders.

1. Annual
Report
2012
Providing
Brazil with
well-being.

2. Time for changes.
Meet Brasil Pharma’s
new corporate brand.
As one more step towards our strategy of
strengthening our brand with nationwide presence,
in 2013 we announced Brasil Pharma’s new identity.
A light and modern brand that embodies concepts
that represent us really well, such as confidence, health,
personal care, and well-being: this is how the new Brasil
Pharma now presents itself, incorporating the “s” of
the Brasil we are building together. As a result of the
unification of our people, identity and dreams, the new
brand strengthens the concept of a unique Brazilian
company within our clients, employees, suppliers
and shareholders.
Our new identity reflects a dynamic, multifaceted
company that has a big dream, namely to improve
the quality of life of Brazilians, bringing health and
well-being to our country.

3. BRAZIL
São Paulo
Minas Gerais
Rio de
Janeiro
Rio Grande
do Sul
Paraná
Santa
Catarina
Espírito
Santo
Bahia
Sergipe
Alagoas
Pernanbuco
Paraíba
Ceará
Piauí
Maranhão
Tocantins
Goiás
Mato Grosso
do Sul
Mato Grosso
Pará
Amapá
Roraima
Amazonas
Acre
Rondônia
Rio Grande
do Norte
Southeast South Northeast North Midwest
GDP¹ 55.0% 16.0% 14.0% 5.0% 9.3%
% GDP growth (CAGR 07-12) 2.9% 3.8% 3.8% 3.6% 3.8%
Population² (% of 2010) 42.1% 14.3% 27.8% 8.4% 7.4%
Market share - Pharma 2012³ 53.0% 17.1% 17.2% 4.4% 8.3%
Brazil 2000 2010 2020E 2030E
Population (million inhabitants) 170 191 207 217
% over 60 years old 8.1% 10.0% 13.7% 18.7%
GDP (R$/ tn) in 2012 4.40
Notes: 1- GDP - IBGE data | 2- Population -IBGE data | 3- Market share pharma - IMS Health

4. Market
Brasil Pharma
3,100,000,000reais in gross revenues
340cities served
17,000employees
1dream: to be the best drugstore chain in the country
People over 60 years old
spend on average
3X
Approximately
25%
78%
of the population has a health care plan
have a corporate health care plan
Market Concentration³ (% gross revenues)
more than people between 20 to 59 years old
Of those medicare
beneficiaries
Notes:
1 - HPC Market – ABHIPEC-2012
2 - Pharma Retail Market – IMS Health ex-factory price
3 - Market Concentration – ABRAFARMA and Company estimates
Independent drugstore chains
Medium/large drugstore chains
55.1%
44.9% 46.8%
53.2%
69.2%
30.8%
2007 2012 2020E
HPC Market¹
R$ 34.0 b
CAGR last
five years 11.6%
Pharma
Retail Market²
R$ 49.6 b
CAGR last
five years 16.0%
Brand name drug
R$ 38.5 b
CAGR last
five years 13.2%
Generic drug
R$ 11.2 b
CAGR last
five years 30.9%

7. 1. Letter from Management
2. Brasil Pharma
2.1 National Presence
2.2 Timeline
2.3 Company Profile
2.4 Our Culture
2.5 Awards and Recognitions
3. The Pharmaceutical Industry: Greater Demand, Greater Growth
4. Integration: The Strength of a Unique Company
4.1 Administrative: Shared Services Center (SSC)
4.2 Commercial
4.3 Operations
4.4 Cultural Integration: A Strong Brazilian Chain
5. Farmais – The Industry’s Largest Franchise Chain
6. Our People
6.1 Trainee Program
6.2 Climate Survey
6.3 Training
7. Social and Environmental Programs
7.1 Environmental Projects
7.2 Social Projects
8. Stock Market
9. Operational Performance
10. Closing Message from Management
06
08
08
09
10
11
13
14
15
16
17
23
25
27
29
29
29
30
38
38
40
41
42
44
Summary

8. 8
AnnualReport2012
1. Letter from
Management
From left to right
1) Renato Stefanoni – Commercial Officer
2) Renato Lobo – Investor Relations Officer
3) Cristina Caiuby – Legal Officer
4) André Sá – Chief Executive Officer
5) Sara Rezende – Chief Financial Officer
6) Rodrigo Silveira – Integration Officer
7) Gabriel Guioto – People and Management Officer
8)CarlosDutra–ChiefInvestment OfficerandVice-PresidentofOperations

9. 9
AnnualReport2012
We ended 2012 celebrating yet another year
of growth. Our positive results were boosted
by the increase in the Brazilian population’s
income and consequently the inclusion of new
consumers of drugs, coupled with the aging
of the population and the entry of new generic
drugs into the market. Over the past 15 years,
the pharmaceutical sector has shown resilience,
acting as a leader in the retail sector in terms
of growth, fueled by the basic characteristic
of selling products for everyday use and low
exposure to credit.
It is our assessment that the growth seen in
the Brazilian market is similar to that seen in
the United States about 15 years ago. There,
growth, consolidation, the opening of stores,
geographic expansion, and professionalization
were dominant themes between 1995 and
2003. In Brazil, this scenario began to take
shape only in mid-2011. We currently see
Brazil in a similar situation, with large chains
increasing their market shares, organic growth,
and mergers and acquisitions of medium and
large groups.
In this context, a great deal of discussion
has taken place regarding the best growth
strategy for the sector: organic or inorganic?
However, very little discussion about doing
one, followed by the other, has occurred. At
Brasil Pharma, this has been our agenda.
Over the last four years, our company opened
the largest number of stores in the sector,
showing that we have acquired, in addition
to excellent points of sale, a great team of
professionals with a wide capacity to open
new stores, putting us in a leadership position
in the markets in which we operate.
We do not buy businesses in order to grow; rather,
we buy businesses that we can grow after we have
acquiredthem.Thisapproachisexemplifiedbythe
two large acquisitions we made in 2012: Big Ben
and Sant’Ana. With these two large chains, we
found ourselves with an exposure of roughly 60%
of our business in the country’s fastest-growing
Northeastern and Northern regions. We remain
true to our acquisition pillars, always seeking three
factors: (i) market leadership, (ii) proven organic
growth potential, and (iii) transactions that add
value for our shareholders.
We currently operate in four of the five Brazilian
macro-regions; we are ranked first in three of
them and second in the other. In 2012, we opened
96 stores, compared with an average of 97 over
the last four years. This intense level of activity
demonstrates that our acquisitions have given
us a strong executive growth capacity, always
bolstered by the strength of our regional brands.
We are proud to be able to count on strong
regional teams with knowledge of local markets
and the loyalty and admiration of our clients in
relation to our products and services.
At this pace, we continue to dream of being the
best drugstore chain in Brazil. Day by day, we
get closer to making this a reality. We feel that
the most important factor in achieving this goal
is always being the first option. We want to be,
and indeed we have to be, the first option for our
clients in relation to their well-being, health, and
convenience; the first option for our suppliers for
the launch of products with national coverage and
professionalism in execution at points of sale; the
first option for our talented people when they are
making career decisions; and the first option for
our shareholders when choosing investments.
Withthisdreaminmind,in2012weconcentrated
our efforts on the integration process, with
the great challenge of transforming excellent
regional companies into a single exceptional and
unique national company.
As an essential part of this process, in March
2012 we inaugurated our Shared Services Center
(SSC). Located in Brasilia (Federal District), the
SSCcentralizesourregionalback-officeactivities,
enabling great optimization of our structure and
providing a base for continued growth with gains
of scale in our administrative expenses.
We also focused on the commercial area.
Over the course of the year, we restructured
the department, bringing in big names from
the market and centralizing purchasing
transactions in our head office, in São Paulo
(SP), enabling unified communications with our
supplier partners without losing the regional
characteristics of our chains.
At the other end, in the stores, integration has
also been the key word in our restless pursuit
for first place in the hearts and minds of our
clients. In 2012, we invested in the integration
of the store operations. In this sense, the
various efforts ranged from standardization
of the materials used in the construction and
refurbishment of points of sale, to uniforms,
sales force training and remuneration.
We are fully conscious that none of this
would be possible without an exceptional
team. We believe that we have the best team
in the industry, with a focus on profitability,
performance, and in-depth knowledge of
regional peculiarities.

10. 10
AnnualReport2012
2. Brasil Pharma
X-Ray
National Presence
By region
Owned Stores
North 117
Northeast 251
Midwest 130
Southeast
South 210
We are one of the major players in the Brazilian retail pharmaceutical indus-
try, with a presence in every one of the country’s regions through large, local
drugstore chains. More than 1,000 stores are distributed across 340 cities
through five chains: Big Ben/Guararapes, Sant’Ana, Rosário, Mais Econômica,
and Farmais, the last one being the only franchise system in the Brazilian retail
pharmaceutical industry.
2.1 National Presence
Spread across Brazil, we own more than 700 Big Ben/Guararapes, Rosário,
Mais Econômica, and Sant’Ana stores, in addition to almost 400 franchised
units of the Farmais chain.
Find out a bit more about our national presence:
Owned Stores: 708
Franchises: 388
337 cities 1,096 stores
16,629
employees

11. 11
AnnualReport2012
2.2 Timeline
2012201120102009
• Brasil Pharma is born, with the ambition to become the leader in pharmaceutical retailing in Brazil.
• Consolidation: Beginning of the acquisition process of regional drugstore leaders around the country.
• BrasilPharmaenterstheMidwest,Northeast,andSoutheastregionsthroughtheRosário,Guararapes,
and Farmais brands.
• Brasil Pharma enters the Southern region through the acquisition of the Mais Econômica drugstore chain.
• Institutionalization and Brasil Pharma DNA construction: IPO, strengthening the Brasil Pharma name in
the market.
• Presence in the North and stronger position in the Northeast region through the acquisition of Big Ben and
Sant’Ana drugstore chains.
• The phase of cultural and process integration takes off, focusing on the capture of synergies and dissemination
of the Brasil Pharma culture.
• Inauguration of our Shared Services Center (SSC) in Brasília: centralization of back-office activities for our stores.
Over four years, we have accumulated 186 years of history and expertise in
regional retail pharmacy. Get to know more in our timeline:

12. 12
AnnualReport2012
2.3 Company Profile
Our role in society lies at the very heart of our business:
to provide health and well-being to people throughout
the country. However, our motto is not just in these
words. We truly believe in the importance of providing
drugs and hygiene and personal care products to help
people with their health, their personal care and their
self-esteem.
It is important to mention that the population’s self-
esteem comes not only from the products offered
to consumers on our shelves, but also from the
economic impact produced by the capilarity of our
store chains, now spread across 19 Brazilian states
and the country’s Federal District. What we are
talking about here is constant job creation and income
generation generation over virtually all of Brazil. The
numbers provide evidence of the important role we
play in the regions where we operate: we already
have 17,000 employees in our workforce and in 2012
alone, we provided roughly 1,300 talented young
people with their first job opportunities.
By opening new possibilities for a number of
professionals, the great majority coming from the C
and D classes, we are transforming the outlook for a
new segment of consumers who are currently the main
drivers of the domestic economy. Thus, the profile of
our employees is young and diversified: 94% of them
are under the age of 45, with women accounting for
66% of the workforce.
Paying close attention to these figures, we make an ef-
fort to really know the people who build our business day
after day. In 2012, the substantial amount of information
generated by our survey “Business Intelligence (BI) of
People” gave us a major benefit in relation to our main
asset and we focused our actions in accordance with our
employees’ concerns and needs. After all, because our
business is built by our professionals and we now under-
standtheirprofile,wetrulyknow“whoBrasilPharmais”:
34%men
66%women
14,753
employees in
stores
60%
have been with
the company for
more than a year
66%
are women
More than
2,645
promotions
1.3 mil
young people
began their
careers with
Brasil Pharma

13. 13
AnnualReport2012
2.4 Our Culture
To be the best
drugstore chain
in the country,
helping to create
a healthier world
To provide health
and well-being to our
customers
To create long-term
partnerships with our
suppliers
To have the best
working climate to
develop our employees
To be profitable for our
shareholders
Attitude to go
beyond
Ethics in everything
we do
Proud to belong
Focus on results
Meritocracy
recognizing talent
We were born out of a dream to be the best drugstore chain in Brazil, helping
to create a healthier world. In day-to-day terms, this dream is being built by
the talent and dedication of 17,000 professionals who, together, throughout
Brazil, play their parts and can claim a share of the credit for our growth.
In 2012, we underwent an important process of transmitting our culture
to employees in various Brazilian states working in different drugstore
chains, each with its own peculiarities. Our culture was born out of this
unique blend. Precisely the chains’ different regional origins give us our
major competitive differential, in the same way that local seasonings are
mixed together to produce an unprecedented result.
At Brasil Pharma, this culture is made up not only of Our Dream, but
also of Our Mission and Our People. These three basic pillars feed back
into and help explain our professionals’ commitment and our success, in
terms of the numbers.
Our
Dream
Our
Mission
Our
People

14. 14
AnnualReport2012
OUR DREAM
OUR PEOPLE
OUR MISSION
We believe that the size of the dream does not matter; the same amount of effort is required, whether you dream big or small. For this reason, we always
prefer to dream big. Our dream carries the ambition of someone who likes to be big. We think only about big challenges, major achievements, and the great
responsibility of someone who desires to be different and who aims to make the world a healthier place.
Weliketogobeyondthecommonplace.Thus,toworkfortheCompany,
it is necessary to believe in the culture and to show Initiative to do
more. We act properly and adopt an Ethical approach in everything
we do. We are Proudto be part of a company that does not want to
be just another one, but wants to be number one! For this reason, our
work is Focused on results.
We adopt a Meritocracy approach to recognize and attract
the most talented people. We are not just a chain of stores, but
rather a chain of opportunities. We invest in making our employees
into true professionals as well as in their futures. At Brasil Pharma,
with knowledge, results, and merit, everybody can make it onto the
Company’s executive team. Fully aware of this universe of possibilities,
ourpeoplegrowatanacceleratedpace,alwaysdrivenbychallenges.
We want to always be the first option: for our
clients, our suppliers, our shareholders, and
our talented employees. For this reason, in our
mission, we make serious commitments to
each of our major stakeholders. We make these
commitments the reason for our existance and we
are certain that we will realize our dream through
these commitments.
We are already leaders in the Midwestern,
Northern,andSouthernregions,andweareranked
second in the Northeastern region. Our strategy,
which is characterized by growth in areas where
we already have a presence, coupled with the
convenience sought by our clients, helps make our
operations profitable, in addition to consolidating
our presence. At the same time, and always with
the goal of consolidating our position as being
the first choice for our clients, we continue to bet
increasingly on humanizing our customer service
and showing concern for our customers’ health
and well-being.
We also foster collaborative partnership
relationships with our suppliers. We believe
in building by working together, guided by
ethics, respect, and the commitment of both
parties. We look for business partners who
are willing to accompany our growth with the
same confidence as our professionals and who
are guided by the same objective of providing
Brazilians with health and well-being. On
these bases, we want to be the first option for
suppliers.
We also believe that we will increasingly be the
first option for our employees. It cannot be
any other way, because we are sure that our main
differential is exactly this, our People. We already
have a great team, with excellent professionals,
and we will continue to bet on the Company’s
development by investing in the training and
recognition of our employees. So that we are
always the first option for talented people, now
and in the future, we want to grow in size, boosted
by our widespread distribution and geographical
presence, and in strength, with an increasingly
strong brand, which is a true reference point within
the industry.
This combination is our recipe for success: as a
result of our efforts, our figures are increasingly
positive and consistent, so that we are also the
first option for our shareholders.

15. 15
AnnualReport2012
2.5 Awards and Recognition
The market has recognized our business model
as well as the efforts and professionalism
of our talented people. In 2012, in return for
our results and our social and environmental
practices, we received a number of very
significant awards in the corporate area and in
the regions where we operate.
Awards in 2012
Corporate
• Boldest Business of the Year 2012 –
Mergers and Acquisitions – Ig/Insper
• Best Investor Relations on an IPO –
IR Magazine Awards 2012
Northern Region – Big Ben
• Pleasure in Working Award – 4th position
in the State of Pará
• Abrinq Stamp – Child-Friendly Company –
5th year in a row
Northeastern Region – Sant’Ana
• Top of Mind Awards – Drugstores
and Pharmacies Category
Midwestern Region – Rosário
• Top of Mind – Jornal de Brasília
• Largest in the Federal District (DF) –
Jornal de Brasília and Finance
Secretariat of the Federal District
Southeastern Region – Farmais
• Afras Stamp of Low Carbon Franchise 2012
Southern Region – Mais
Econômica
• Symbol Trophy 2012 – House
of Representatives of the State
of Rio Grande do Sul
• Brands and Leaders Award 2012 – Diário
Canoas Newspaper, Nova Ulbra, and CICS

16. 16
AnnualReport2012
3. The
Pharmaceutical
Industry
Greater Demand, Greater GROWTH
Well positioned in the country’s five
regions, we are an important agent
in the consolidation of the Brazilian
pharmaceutical market. In 2012, the rise
of the C, D, and E social classes, coupled
withgrowthinthecountry’semployment
indices, played an important part in
the boom that the sector registered in
Brazil. With job creation, rising incomes,
and more information, the population
has gradually begun to pay greater
attention to well-being. People in these
social strata now have greater access to
health plans, and, of course, to doctors,
which has resulted in an increase in the
consumption of drugs. Fueled by the
same factors, personal care with hygiene
and beauty items is also becoming more
important in Brazilian people’s lives,
producing an increase in the demand for
products such as cosmetics.
As a direct result of this favorable
scenario, the pharmaceutical industry’s
growth has been boosted with strong
figures. In 2012, according to IMS
Health, the drug market’s revenues
were 15.6% higher than in the preceding
year. Sales of hygiene and personal
care products showed a similar pace of
growth, with a 15.7% increase over the
numbers reported in 2011, according to
ABIHPEC.
In addition to these social and economic
changes, the pharmaceutical market
has witnessed a number of important
transformational processes. The trend
toward consolidation of the retail sector,
which has been marked by mergers
of regional chains and growth in the
penetration levels of large chains, is
slowly beginning to alter the fragmented
panorama of the Brazilian market, which
remains dominated by family-owned
companies. In addition to this trend, over
the last few years, we have observed
decreases in informality, with more
professional staff, and welcome trends
in terms of tax compliance and changes
in the regulatory framework.
This reality of consolidation and
reduced informality can only benefit
the consumer. More mindful of product
quality and better informed regarding
variety in brands and prices, consumers
are becoming increasingly demanding.
In this scenario of greater competition,
chains that are better prepared and
structured to take advantage of
the growth in demand and to meet
consumers’ requests, by offering clear
differentials, such as better service,
greater convenience, and lower prices,
will stand out.
In this context, we work every day
toward spreading the Brasil Pharma
standard of customer service and
consumer experience throughout Brazil,
achieving, in practice and in each and
every store, our dream of being the first
option in the retail pharmacy sector.
HPC Market
29.4 b
34.0 b
42.9 b
49.6 b
Drug Market
15.65%
15.62%
2011
2012
2011
2012

17. 17
AnnualReport2012
4. Integration:
The Strength of
a Unique Company
Providing Brazil with health and well-being
2012 was a year of major challenges for us. In the first quarter, after the Sant’Ana
and Big Ben chains joined the group, we expanded our presence to Brazil’s five
regions, successfully meeting our initial objective of achieving a nationwide
presence. The accelerated inorganic growth, by means of the acquisition of
leading regional players with local performance expertise and significant growth
potential, was essential to taking our first step toward industry consolidation
based on an aggressive organic expansion plan.
At the same time, our focus shifted toward the reinforcement and dissemination
of our management profile and our identity throughout Brazil. The year was
marked by the adoption of a series of measures, always bearing in mind the huge
challenge of integrating the chains, strengthening our culture, and recognition
of clients, suppliers, our talented people, and our shareholders. We make every
effort to be seen not just as a chain of excellent regional companies, but rather as
a large and unique Brazilian company.
To transform this vision into reality, we adopted four main integration efforts:
administrative (SSC), commercial, operations, and training and culture. All
of these pillars are parts of our total focus on integrating our regional chains,
bringing unique expertise in retail management to each of them. Over the next
few pages, we present each of these efforts.
Focusing on integrating our regional drugstore chains and bringing in retail management expertise
Administrative (SSC) Commercial Operations Training & Culture

18. 18
AnnualReport2012
We opened our Shared Services Center (SSC) on March 5, 2012, after almost a
year of studies and mapping of the administrative activities in each of the chains
that make up Brasil Pharma. Strategically located in Brasília (Federal District), the
country’s central point, the SSC was born out of a major challenge: to carry out
administrative support activities for all of our pharmacy chains.
This bold initiative, with an aggressive schedule, has already produced major
benefits for the Company. First, we simplified the administrative structure by
concentrating all back-office activities of our chains under one roof, which resulted
in significant cost savings. Additionally, centralization of the processes provides
greater visibility of information and facilitates stimulation of the sharing of best
administrative practices. From the regional operations perspective, the transfer of
basic activities to the SSC has freed chains to focus their efforts on other functions,
such as the management of points of sale and the opening of new stores.
With a marked commitment to the schedule, by the end of 2012, the SSC’s
structure already had 286 employees operating the administrative systems for
four of our five chains, in addition to Corporate. To complete the favorable picture,
the employees’ ticket resolution ratio is 100%. However, a great deal remains to be
done. Over the next two years, in addition to concluding the process of integrating
the chains, the SSC will concentrate on implementing the SAP system, which will
unify our chains’ back-office activities in such a way as to incorporate the activities
of the finance and accounting departments. At the same time, we will continue to
fine tune the activities that have already been carried out, seeking to continuously
improve controls and the levels of management information generated.
4.1 Administrative: The Shared
Services Center (SSC)
2
3
SSC
PAS
PAS
PASPAS
PAS
1
SSC
Areasinvolved
Activities
PLUG-IN
CONTINUOUS
IMPROVEMENT
MAPPING
ACTIVITIES
HUMAN RESOURCES
FINANCE
ADMINISTRATIVE
FISCAL
ACCOUNTING
IT
PAS
PAS - Service
Outposts:
We have six PAS (Service
Outposts) near our stores
for activities that cannot
be centralized in Brasilia,
such as recruitment
and admission of new
employees and cash
flow processes.
SSC in Brasilia, DF
6 PAS
Future: Big Ben PAS
Sant’ana
PAS
Corporate and
Farmais PAS
Mais Econômica
PAS
PAS Rosário
Understanding how our Shared Services Center works
Plug-in Stages
Understanding the platform needs,
design of scope, and processes.
Plugging the platform into SSC.
Mirroring: activities running in parallel
- SSC and platform - for 60 days, to
mitigate errors.
Through quality tools, constant
pursuit of improvements in process
and productivity gains.

19. 19
AnnualReport2012
Our Commercial Structure
To strengthen our team and become even more prepared for the sector’s great challenges and to
keep up our constant growth, in 2012, we brought in seasoned executives with experience in the retail
and pharmaceutical industries to structure our Commercial team. This team is now made up of the
Procurement, Logistics, and Trade Marketing teams.
4.2 Commercial

20. 20
AnnualReport2012
Procurement
Negotiating at a national level
Created in 2012, the new Purchasing structure
enables us to create long-term partnerships with
suppliers, turning our company into an important
commercial intelligence center. The idea is to have
visibility and access to trends in retail pharmacy
at the national level and, at the same time, to
maintain our understanding and customer service
in relation to local demand. For this reason, the
Procurement department was split into two cells.
The first, located in the city of São Paulo, State of
São Paulo, close to the industry, consists of the
nationalnegotiationteam,whichclosespurchasing
deals for Brasil Pharma’s chains that have already
been integrated. The second cell, which is no less
important, is found in each of the chains and is
responsible for contacts with local suppliers, in
addition to accompanying the execution of actions
at points of sale, such as special promotions and
the correct placement of products in accordance
with agreements with manufacturers.
Based on this model, during the year, we
successfully concluded the Commercial integration
of four of our five chains, all within the initial
schedule. At the same time, we initiated actions
aimed at improving the profitability of commercial
negotiations, with a view to generating value for
the Company and for our clients, always with the
focus on being the first option. These initiatives
involved the following fronts:
Purchasing conditions: Taking into account our
own stores and the franchises, we are the largest
retailer in the pharmaceutical sector. To get an
idea of this scale, at the end of the year, our group
was buying drugs and hygiene and personal care
products from the industry and distributors for
a total of 1,096 stores spread across almost the
entire country.
Improving the profitability of the mix: We
believe that rather than just selling drugs, we
offer our clients well-being and health. It was
with this belief and our retail expertise that we
began the process of analyzing and adjusting
our product mix. The objective is clear: to make
available to our clients, at any Brasil Pharma
chain, the most sought-after lines and brands
in each category, always respecting regional
consumption characteristics.
Relationship with the industry: We believe in
long-lasting partnerships and relationships
based on mutual trust between the parties.
In August 2012, for example, at an informal
meeting held in the city of São Paulo, State
of São Paulo, we brought together more than
400 commercial partners and suppliers to
present the new Commercial structure and our
executives.
Optimization of inventories: Offering variety
with consumer intelligence is associated with
the rapid replenishing of the stores. We seek to
meet this objective so that we can always offer
what the client is looking for without burdening
our structure with high levels of inventories.
To keep our clients happy, in 2012 we kept
our inventory levels above what was desirable,
avoiding lost sales due to interruption of supply.
Over the course of the next few months, we
intend to improve our automatic replenishment
control and purchase request system, in this
way optimizing, with the help of our market
intelligence tools, the number of SKUs (stock
keeping units) available at the stores.

21. 21
AnnualReport2012
Find out about our Purchasing and Distribution process
Pharma
Industry
Hygiene & Beauty
Industry
Distribution
Centers (DC)
Distributors
Stores
Long-term partnerships with the Industry
• Differentiated purchasing conditions
• Partnership in launching new products and
promotional activities on a nationwide scale
Brasil Pharma DCs
• Five DCs in four of the five regions of Brazil
• Quick stock refill at our stores
• Purchases from the industry, providing
better commercial conditions
Partnerships with Distributors
• Supply of low-turnover products
• Emergency supplies in case of stock
shortages at our distribution centers
• Special conditions for Farmais
Brasil Pharma’s stores
• 1,096 stores
• More than 337 cities represented
in 19 states and the Federal District
• Bring health and well-being to
more than 75 million Brazilians

22. 22
AnnualReport2012
Trade Marketing
The art of organizing
Keeping up with changes in the Purchasing sector, in 2012 we also initiated the process
of the refurbishment and internal reorganization of our stores to improve our clients’
consumption experience and to increase the profitability of each point of sale. The
changes began with the stores of the Sant’Ana chain, in the State of Bahia, and, by
2014, should include 100% of our units.
At Brasil Pharma, the art of organizing points of sale is meticulous and detailed.
The exposure of the products and layout pattern of each store are defined according
to differentiated selling strategies, which take into account the social and economic
profiles of local clients, regional consumption characteristics, and each point’s local
competition.
To cater to these different audience profiles, we divide our points of sale into three
store standards: Popular, Standard, and Concept.
Find out more about each of our store standards:
POPULAR STORE
A store model characterized by
strong promotional appeal. Located
at strategic points in urban centers,
it aims to cater to the general public,
with good cost-benefit ratio.
Focus: price, dispatch, promotions
STANDARD STORE
The chain’s most commonly-found
store model. It aims to cater to
various audiences, offering organized
and standardized services. Makeup
and Dermocosmetics stand out in
the store layout.
Focus: diversity, comfort, need
CONCEPT STORE
Stores at prime locations, targeting
extremely demanding audience,
where the purchase is made by
choice and intended at well-being.
Client service is undisturbed.
Increased investment in furniture
and finishing of civil works.
Focus: product with high added
value and quality

23. 23
AnnualReport2012
The mapping carried out by our Market Intelligence
team aims to fit each point of sale into one of these
three store standards. The mapping and grouping
of stores by consumption pattern are also vital
for the application of industry-related commercial
strategies. Because we know each unit’s public,
we can improve the launch of new products, direct
promotional materials, or stress the sale of specific
lines in accordance with the profile and interest of
each region’s consumers.
In Trade Marketing, the following step entails
the application of tools necessary to make the
best possible use of the sales space. To this end,
in line with each unit’s needs, we can invest in
complete refurbishments entailing changing
the shop front and putting in a new floor along
with lighting, fixtures, and fittings; or in simpler
reforms limited to adjustments of sales baskets
and the management of product categories. That
is, this task involves the intelligent organization of
the items on exhibition in line with consumption
incentives, which should be implemented in all
stores, with or without refurbishment.
The result is a better purchasing experience –
and work environment – with more attractive
stores that are better aligned with our clients’
desires and needs, in addition to better
perceptions of price and quality.
Logistics
Operational excellence
Presently, we own five distribution centers
(DCs) that are located strategically to provide
support to each of our chains. To ensure
operational excellence in terms of storage,
transport, and security, in 2012 we began the
challenging task of renovating and bringing the
DCs up to standard, with a focus on productivity
and supporting the growth of our operations.
Find out more about Brasil Pharma’s
distribution centers:
• Camaçari, BA
• 15,000 Skus
• 9,000 m² of storage area
• Canoas, RS
• 12,000 Skus
• 5,600 m² of
storage area
• Belém, PA
• 50,000 Skus
• 10,800 m² of storage area
• Brsília, DF
• 13,000 SKUs
• 4,800 m² of storage area
• Jaboatão dos Guararapes, PE
• 13,000 Skus
• 3,240 m² of storage area

24. 24
AnnualReport2012
Keeping strictly to our operational growth
schedule, in 2012 we opened new units
for two of our five DCs. The first, in
Brasília, in the Federal District, came
into operation in October to replace the
previous DC located in Águas Claras,
also in the Federal District, resulting in
greater operational potential and storage
capacity. With a useable area of 4,800
square meters and sufficient capacity to
supply the entire Midwestern region, this
venture strengthens the Rosário Group’s
operations and provides the necessary
support for our regional growth.
In turn, the modern DC located in
Camaçari, in the State of Bahia, which
was opened in November, has a useable
area of 9,000 square meters and plays
a vital role in the support required for
the growth of the Sant’Ana chain,
where sales performance in 2012 was
negatively affected by a fire at its former
DC. The gains can already be felt at the
points of sale. Now, items requested
by a store located in the State of Bahia
can be delivered on the day after the
request was made, improving speed
and productivity for the chain.
For the next few years, in addition to
bringing the remaining three DCs up
to standard, we face the challenge of
standardizing operational processes at
all of our DCs. The intention is that the
five units will have the same systems,
performance, and stock control
indicators.
More for
our suppliers
In addition to being
physically closer, with the
centralization of contacts
in the head office in São
Paulo, our partners gain the
chance of having access
to the national market for
coordinated new product
launch activities.
More for
our clients
At any Brasil Pharma
store, our clients encounter
quality, convenience, and
excellent customer service.
Applying intelligent retail
management and always
alert to major consumption
trends, we provide Brazilians
with well-being, helping
to put our country onto
another level of health and
living well.
More for
our employees
Our 17,000 employees,
who previously belonged
to regional drugstore
chains, are now part of one
of the largest and most
professional pharmaceutical
retail chains in Brazil. We
believe that the company is
built by our people and that
our success is related to our
team’s commitment and
achievements. We firmly
believe in a meritocracy and
an owners’ culture, and we
try to ensure that everyone
has access to training and
qualification activities so
that they can continuously
broaden their horizons
in terms of professional
growth.
More for our
shareholders
We are fully aware that
our shareholders play an
essential part in our results.
For this reason, our efforts
are guided by decisions
aimed at promoting the
Company’s sustainable
growth, linked to maximizing
the return on capital. All
integration efforts that
have been implemented so
far should result in greater
profitability per store,
optimized inventory levels,
and operational leverage.
Commercial
integration: a win-win
situation
Read more about our
performance over the
year on page 42.

25. 25
AnnualReport2012
Because we know that the pharmaceutical retail
sector is regionalized, we try to gain an in‑depth
understanding of the places where we operate, their
populations, their peculiarities, and their desires.
This is our mindset when running our regional
operations. With strong brands, our chains are
amongthemajorregionalleaders,alwayssupported
by a track record of trust and an understanding
of local consumers’ needs. In total, we have a
cumulative track record of more than 186 years of
growth and expertise in the regional pharmaceutical
sector. This characteristic makes us strong and
capable of turning the dream of becoming the best
drugstore chain in Brazil into reality.
In this scenario, our store Operations teams have
solid expertise in terms of regional operational
management, backed by experience and local
practice. With a great deal of communication
with our Commercial department, coupled with
in-depth knowledge of their consumers’ profiles
and the competition in the area around each
unit, these professionals run things on a day-
to-day basis at the points of sale, contributing
to their performance with regard to issues such
as monitoring of sales targets, promotional
activities, and discount strategies.
The Operations team also plays a vital role in
our chains’ growth. After all, the identification of
new points of sale to support our bold expansion
plan is another task that demands in-depth
knowledge of the dynamics of local markets.
Another factor crucial to our sales performance is
the store manager. Thus, closely monitoring the
work of these professionals to keep them motivated
and aligned with the Company’s strategic targets is
also one of our Operations team’s roles.
We have an excellent local operations team and
pioneering brands, most of which are market
leaders in the regions where we operate. This
unique positioning is also reflected in the best
locations in terms of points of sale and strategic
advantages over our competition, presently and
in the future. Our regional knowledge of local
trends, coupled with our understanding of our
clients’ behavior, means that we are in a position
to safely carry on with our accelerated expansion
and growth plans in a way that is increasingly
profitable and sustainable.
4.3 Operations
“The manager is the
owner of the local business;
the success or failure of a
store is directly connected
to him.
”Fábio Eirado | Operations Manager | Big Ben

26. 26
AnnualReport2012
“The team is a
reflection of its ‘coach,’
and the same thing is
true with the store.
”Delmar Raguzonni | Operations Manager
Mais Econômica
“Someone who lives
in the region is in a much
more favorable position
to determine whether
the ideal location of
a store is on the right-
hand or left-hand
corner of a street.
” Emílio Azevedo | Operations Manager | Rosário

27. 27
AnnualReport2012
Our growth-by-acquisition strategy requires
constantalignmentoftheoperation,coupledwith
an absolutely vital element, the consolidation
of a strong chain around the construction and
reinforcement of our unique culture.
Forus,ouruniquecultureis synonymous with our
unique profile in terms of management, respect,
and values that are shared by all of our employees
and executives, particularly that of our unique
dream. This means synergy in management
consistency and in the communication and clarity
of targets given to our employees, as well as in
each employee’s professional development. We
believe that, by constructing and disseminating
our culture and our values, we will achieve our
dream of building a strong brand and serving as
an industry leader that conveys the credibility
and trust that Brazilians seek.
To get there, we set up several important
cultural integration taskforces. Find out more
about a few of these:
Culture Roadshow
Because educating employees in 19 Brazilian
states and in the country’s Federal District
about our unique culture is a major challenge,
in 2012 we set up the Brasil Pharma Culture
Roadshow. Through this initiative, over the
course of the year, our executives visited
Company stores throughout all five regions of
the country to convey our values, to gain a better
understanding of the reality and demands of
each store, and to get closer to the sales force.
Since this project began, our corporate officers
have visited dozens of stores, giving each one
a Brasil Pharma Culture Plaque. This initiative,
which will continue until all of our stores have
been visited, is an important means of bringing
the company’s senior management even closer
to our employees throughout the country. By
awarding the Plaque to units and reinforcing
the importance that the Company attaches to
the idea of a meritocracy, our officers show
that there are no barriers to growth and that
everyone can be promoted on the basis of their
own merits and results.
The Magazine Somos+
To share stories of success, news, and the
latest information about the performance of
each of our regional operations, and to present
our new projects, in 2012 we launched the
magazine Somos+. More than 17,000 copies
are printed each month and distributed to all
of our employees and executives. In addition
to becoming better informed, our professionals
find out about their colleagues in Brazil’s
various regions and receive up-to-date news
regarding the company’s recent promotions,
providing further reinforcement of our merit-
based culture and an extra incentive regarding
the possibilities for the growth of our talented
people.
Training and Culture
We make great efforts to offer our clients the
same consumption experience, regardless
of the chain that they are visiting. We always
want to be the first option when the question is
well-being and health. To achieve this, we need
the support of our commercial partners and,
in particular, the belief and alignment of our
employees and executives.
We like dynamic, proactive people who know
the industry well and share our values. A good
professional, no matter what his/her position
or job, needs to understand the importance
of respect and care for clients and for his/her
own team, being able to spread knowledge, as
well as educate and encourage people. For this
reason, we constantly promote training and
professional education activities.
Find out more about our activities for the
training and development of executives and
employees on page 29.
Our Endorsement
A brand is much more than a name, a logo, or
even a slogan: it is a company’s identity and,
very often, its most valuable asset. We believe
that our brand, which was constructed over
the course of 2012 and will win over the market
in 2013, embodies the set of associations that
arouse exactly what we want in each consumer:
trust, health, personal care, and well-being.
Our new identity translates our belief into the
well-being, strength of will, and determination
of our employees.
Our new brand is dynamic, modern, cheerful,
4.4 Cultural Integration:
A Strong Brazilian Chain

28. 28
AnnualReport2012
and objective, reflecting work that is based
on results and the attitude to be a larger
presence in our culture. The starting point
of the new logo was a cross, a symbol
that is universally known as an icon of the
pharmaceutical sector. Our differentiation,
with regard to our presence in all four corners
of the country, was brought to mind by the
symbol of the compass. Based on these
icons, the new logo was created, representing
an abstract mixture of the two elements that
contains less-obvious organic traces.
To go with the remodeled logo, the new slogan
“Well-Being for Brazil” reinforces our concept
and a positioning that already translates
into our Culture and our People. We want
well-being to become the link between Brasil
Pharma and our chains.
Bit by bit, all internal and external disclosure
materials have begun to communicate the new
Brasil Pharma and all shop fronts of our more
than 700 owned stores throughout Brazil
have received the Brasil Pharma endorsement.
This means that the regional brands remain,
although they are accompanied by an
endorsement that the whole of Brazil already
knows and trusts. This endorsement will
also function as a reinforcement of the entire
cultural and operational integration process
that has been in progress since the beginning
of 2012.

29. 29
AnnualReport2012
5. Farmais – The
industry’s largest
franchise chain
2012 was an important year for the operation of our Farmais franchise chain. We opened
52 new points of sale and closed 23, as the result of careful work to bring our franchise
base up to standard. We ended the year with a franchise base of 388 stores, 222 of which
were concentrated in the State of São Paulo.
Over the course of the year, we focused on strengthening the brand and increasing its
visibility, seeking to add value to the perception of our franchisees and, consequently,
boost the chain’s penetration. We also improved the process of defining the franchisee
profile and the provision of management support in such a way as to create longer-
lasting, more stable partnerships. The result of our efforts was very positive and can
already be seen in the satisfaction of our franchisees.
More for our Franchisees:
Purchases made with
conditions negotiated for
more than 1,000 stores –
greater margins.
More attractive rates in
terms of financial products.
Support in connection with
decisions related to legal,
accounting, and regulatory
matters.
Team specialized in store
management and trade
marketing know-how to
increase store turnover and
brand visibility.
Significant investment
in marketing.
Frequent training sessions
for store teams.
Motivational conventions
for franchisees.

30. 30
AnnualReport2012
In the expansion front, we have begun a period of strong growth that we expect to
continue for the next several years: in addition to increasing our franchisee base,
we expect to see Farmais in other states outside the Southern, Southeastern, and
Midwestern regions, where it currently operates. To support this plan, Farmais has
already set up a team of supervisors who will monitor the expansion and work
together with our new franchisees.
The new growth strategy arises from an opportunity to gain market share in
places where operating one of our own stores would not be justified, in addition to
obtaining important market understanding in regions where we do not yet operate.
This strategy will also have the advantage that we will be able to make use of
know-how acquired in our own platforms within our franchise chain.

31. 31
AnnualReport2012
6. Our People
We believe that our people are our major
asset. Conscious of this reality, we invest
heavily in the qualifications and in-house
recognition of our employees, in the
dissemination of our culture, in ensuring
that our philosophy and our ethics become
firmly ingrained, and especially in sharing our
concern with our customers. Find out about
some of our initiatives below:
In 2012, we began our second Trainee Program
to train professionals on our business model.
Publicized nationwide, the selection process
included preliminary stages in Rio de Janeiro,
Brasília, and São Paulo. From a total of more
than 4,000 people who enrolled, ten young
people with degrees in business administration,
engineering, and marketing were selected, and
had the opportunity to become acquainted with
the diversity of our operations and our intense
process of integration.
With the 2012 Trainee Program, the young
people selected spent the first six months
operating in SSC projects and the second
half of the year in sectors where they could
be hired. At the end of the program, the
trainees became analysts in the People,
Projects, Controllership, Franchising, Logistics,
Marketing, and Expansion areas. The results
were so positive that we repeated the model
for the 2013 Trainee Program, selecting ten
young people from the country’s five regions
out of a total of more than 13,000 who
enrolled, more than three times the number of
those interested in the first year.
2012 was also marked by the implementation
of our very first Organizational Climate Survey.
Developed using an internal methodology, the
survey helped us to gain a better understanding
of our People, bringing us even closer to our
Mission to be the best work environment for
the development of our employees. The survey
was answered by 5,872 employees at all levels
and from all of our chains, providing a detailed
overview of information for our next actions,
which will be implemented over the course of
2013.
6.1 Trainee Program
6.2 Climate Survey

32. 32
AnnualReport2012
We believe in a meritocracy and like to promote our talented people internally.
For us, the opportunity for professional growth that we offer our employees is
a differential and a major factor in internal motivation. This is not surprising
because everyone ends up winning as a result of this model. Employees can count
on a vast universe and opportunities in terms of job positions throughout Brazil,
while the Company gets to work with people who are aligned with its values and
who have accumulated diverse professional experience over the courses of their
careers at Brasil Pharma.
Under the Vendo+ umbrella, which is our “corporate university,” we offer training
programs designed to improve the productivity of professionals and to open new
horizons in terms of career progression for each of them.
6.3 Training
The Customer Service and Sales Method book. In 2012, Vendo+
launched a book that has become our store bible. The book presents
the employee with everything that he/she needs to carry out his/her
function on a day-to-day basis and with the maximum input necessary
to continuously increase productivity.
Training & Development Actions 2012
58,441 attendances in training
412,212 hours of training

33. 33
AnnualReport2012
“
Brasil Pharma is where I learned
everything, I’ve matured professionally
to an incredible degree in a short
amount of time. I learn a lot here,
both new techniques as well as the
challenges of each of the country’s
regions. During the process of
integrating the regional HR teams,
we saw that each chain had its
strong points to be incorporated
in the process. This was the time
when I learned the most!
”
“
Brasil Pharma provided me with a
level of new experiences and professional
growth (during this one year’s work) that
many people don’t have after having
worked in the job market for many years.
The company’s changes and dynamism
taught us to look for improvements and
particularly to adapt to what we have.
I gained a lot from working with people
with different personalities and cultures,
from various parts of the country,
without even mentioning that it’s
always good to meet new people!
”
Rafaella Andrade
Began her career in 2005 at Drogaria Rosário.
Since 2010, she has been an HR Manager
at Brasil Pharma.
Danilo Gonçalves
Began his career at Brasil Pharma in 2011
as an intern and is now a Financial Planning
Analyst. In the space of one year with the
Company, he had a great deal of exposure to
its operations: he accompanied the changeover
in the system at Dro-garia Guararapes, he
received in-depth experience in the financial
area at Drogaria Big Ben, and he accompanied
the inclusion of the chains in the SSC.

34. 34
AnnualReport2012
Livio Silva
Began his career in Brasil Pharma in 2007
at Drogaria Rosário. Held positions as a
Pharmacist, Pharmaceutical Manager,
Supervisor, and Regional Manager, and is now
the General Sales Manager at Drogaria Sant’Ana.
“
Brasil Pharma provides me
opportunities for training, professional
growth, and great friendships.
We always receive recognition for
our work and are encouraged to
feel that we are the ‘owners’ of the
business. Here, we learn the value
of development as a team and the
importance of continuously learning
more about our clients, increasing the
company’s profitability, and attracting
more and more talented people.
”For example, in the sales force, we generally hire people to fill
entry-level positions. With the growth obtained as a result of day-
to-day experience and continuous training, we promote talented
people who stand out the most. The natural order is to go from
being a cashier to being a sales assistant, and then an assistant
manager, until one gets to be the manager of a store. This
process of going through a variety of positions in a unit provides
professional exposure to situations that will be fundamental to an
employee’s ability to manage the business in each unit.
For this reason, we invest heavily in the education and training
of our “in-house” sales force. Everything is done so that
the selection processes for leadership positions take place
internally.
Learning Matrix – Sales Force
OFFICE BOY
Average time
in function =
4 months
Courses
attended:
- Training for
cashiers
- Professional
conduct
CASHIER
Average time
in function =
8 months
Courses
attended:
- Cashier’s
service and
sales
- Technical
knowledge of
products
SHOP
ASSISTANT
Average time
in function =
1 year
Courses
attended:
- Brasil
Pharma’s
service and
sales method
- Advanced
qualification
in product
technique
ASSISTANT
MANAGER
Average time
in function =
6 months
Courses
attended:
- Training for
multipliers
- Training for
leadership
MULTIPLIER
Average time
in function =
6 months
Courses
attended:
- Development
of multipliers
- Process
management
MANAGER
Average time
in function =
2 years
Courses
attended:
- Leadership
development
- Training for
supervisors
STORE
SUPERVISOR
Average time
in function =
5 years
Courses
attended:
- Development
of supervisors
- Training for
executives

35. 35
AnnualReport2012
Always in alignment with the organization’s objectives, our programs begin with a diagnosis based on
competency gaps that requires reinforcement. Our model considers competencies as combinations of
knowledge, skills, and attitudes expressed in a professional’s performance that add value to the people and
the organization. Our programs are brought together in Vendo+ and structured around four development
axes: Corporate, Functional, Potential, and Development.
Development
Development of key competencies aligned with
our values and strategy, enhancing knowledge
and organizational culture.
Corporate
Functional
Potential
Development
Development of technical and behavioral
competencies in functional areas.
Development of employees' potential,
preparing them for complexity and/or
strategic tasks.
Provide personnel and professional
complementary development.

36. 36
AnnualReport2012
Learn more about some of our Training and Development initiatives included in the
Development Axes:
Integration Events
Each year, we hold our integration event to remind our team members about the
strength of the union and to reinforce the idea that we are big at the regional level, but
gigantic at the national level. In 2012, we brought together more than 200 employees
for an immersion course on integration and dynamics, with lectures and debates
about the company’s direction for the next year. The course spanned three days and
contained a healthy mixture of knowledge, determination, and results. We believe that
a differential for our consistency in the delivery of better results lies in the precise
alignment of targets and objectives. At Brasil Pharma, everyone knows that “together
we can do more” because “We’re Brasil Pharma.”
Sales Marathon
The Brasil Pharma Sales Marathon is an internal campaign that has already become a
symbol of our dreams, our mission, and our people. This comes as no surprise to us
because it is in line with our main objective of becoming the first option for our clients,
suppliers, and employees, and generating more profitability for our shareholders. The
Marathon stimulates increased sales of certain products, mainly from the personal
hygiene and beauty lines of suppliers who purchase quotas in the program. In reality,
for the sales team, it means that the larger the supplier’s quota for a determined
product, the greater the weight in terms of the score in the sales competition, and,
consequently, the greater the prize.

37. 37
AnnualReport2012
During a period of four months, the participants - sales people, store managers,
pharmacists, regional managers, supervisors, and multipliers - make an effort to
win cash prizes that help them achieve many of their dreams. At the end of each
Marathon, in addition to the improved results on the part of the stores, we note a
reinforcement of relationships with our suppliers, in addition to satisfied clients and
employees who are increasingly motivated to sell and with that nice feeling that all
their work and efforts were rewarded under the initiative’s merit-based approach.
Development of Regional Leadership
In each of our chains, our efforts in terms of the training and development of regional
leadership have generated good results. Presently, the team consists of four regional
operational managers (North/Northeast, South, Midwest, and Bahia) who make up a
solid management group, with the experience and local practices that are necessary
for the job. To complete the model, the regional leadership also counts on the support
of the founding partners of each chain as consulting partners.
Executive Development Program
In June 2012, we held the first Executive Training with participation by
professionals from all of Brazil’s regions. Based on content aimed at the
management of people and processes, this event was conceived to help develop
our future leaders and also to integrate our processes and spread the new culture
of people and management.
In 2012, 11 of the 20 participants in the program were promoted and thus became
engaged in new challenges within the Company.
Graduation of the first Executive Development Program | Guarujá (SP)
“I’m a new professional,
with a box of tools and a pair
of magic glasses to see the
environment better.
”
Ronaldo Machado | Sales Manager
Mais Econômica

38. 38
AnnualReport2012
“In addition to being very
knowledgeable, the leader should
have good relationships, an
understanding of the business, be
objective and straightforward in,
and focus management efforts
on the achievement of targets.
”
Gabriel Guioto | People and
Management Officer
Development of the Multipliers Program
One of the main actions implemented by Vendo+ is the development of the
Multipliers Program. This initiative began in 2012 with the purpose of training
salespeople and assistant managers to become instructors, spreading knowledge
about customer service and sales methods to the rest of the team at the stores, in
line with Brasil Pharma’s standards.
Inspired by an experiment adopted by the Rosário chain, the program is based
on correcting potential deviations or productivity problems identified within each
sales team. With 160 hours of theoretical training and 440 hours of practical
development, it offers our employees the professional development necessary to
increase individual and collective productivity.
The results speak for themselves. In its very first year, the initiative generated
positive results for 60 professionals from the Mais Econômica, Rosário, and
Sant’Ana sales teams, who increased their productivity by roughly 40% following
the training. Encouraged by this success, we will extend this action to all chains
over the next few months.

39. 39
AnnualReport2012
When did you start your story at Brasil Pharma?
I was hired by GRD in 2007 as an office boy. Then, I became a cashier, then an administrative assistant and
a sales assistant before I made it to the position of assistant manager. After less than two months in this
position, I was invited to take part in the selection process to become a multiplier.
Did you stop there?
Of course not. We can’t get too comfortable, especially with the opportunities that Brasil Pharma gives us.
I did four immersion courses and, after I became a multiplier, I worked for nine months in the position and
took a test for the position of manager of a medium-sized store. After a month on the job, I was transferred
to a larger store, where I stayed for eight months until I took part in the selection process to become a
supervisor and I became a Sales Supervisor at Rosario.
And how did you end up in Bahia?
An opportunity arose for me to become a regional manager with Farmácias Sant’Ana and I decided to go for the
challenge. So, here I am now, a regional manager, in charge of 56 stores, four supervisors, and roughly a thousand
employees.
When did you first start at Sant’Ana?
I started in July 2004 as a security guard. Then, I became a cashier, then a sales assistant and after eight
years, I did the multiplier course and then became a manager.
What has Brasil Pharma done for you?
Nowadays, I’ve got a house, I’ve raised my 17-year old daughter and paid for her studies. I’ve achieved professional
and financial goals and I’ve learned that the client must always be our priority. For example, I myself don’t provide
customer service, I enchant.
What have you noticed in terms of changes as a result of the
integration of the chains?
There are additional new opportunities for qualification and recognition and we’ve always got the chance to grow.
It just depends on our potential, because we are recognized and we can go all the way to the Executive Board.
Adriano Rone
Martins Pessoa
Regional Managert
Sant’Ana | Bahia
Antônio
Rogério da Silva
Alves
Store Manager
Sant’Ana | Bahia
Stories of success and growth
in the words of employees

40. 40
AnnualReport2012
7. Social and
Environmental
Programs
Our dream of being the first option also brings great responsibilities. We are fully aware of the vital
role that we play in the national economy, just as we recognize the importance of our attitudes
towards our employees, our clients, our suppliers, civil society, and the environment. Thus, we seek
to carry out actions that benefit all stakeholders with whom we interact in our areas of operation.
Onthisfront,2012wasaremarkableyearforus,withanumberofinitiativesrelatedtosustainability.
We undertook many things, from activities connected with the environment and communities, to
internal transparency practices and a new code of conduct for our employees. Also, our concern for
the well-being of Brazilians is reflected in the care we take in relation to the well-being of the planet.
Find out about some of our projects:
7.1 Environmental Projects
Low Carbon Program
The Farmais Low Carbon Program is a pioneering practice in the franchising sector,
conceived by the Sustainable Franchises Association (Afras) to encourage franchises to
adopt sustainable practices in their operations, helping to preserve the environment by
means of carbon offsets.
At Farmais, we drew up a pilot project with help from Afras, Fábrica Éthica (Ethical
Plant), and the Instituto Socioambiental (ISA; Social and Environmental Institute), and
brought together four of the chain’s franchises in the states of São Paulo, Minas Gerais,
and Rio Grande do Sul. Each franchise measured its greenhouse gas emissions resulting
from energy consumption, fuel, air travel, and solid and organic waste produced in the
operational areas. In this way, an estimate was made of the number of trees that should
be planted to offset these effects in accordance with the Fábrica Éthica consulting firm’s
methodology and the Green House Gases (GHG) Protocol.
At present, farmers are planting seedlings in the Xingu Basin region, between the states
of Mato Grosso and Pará, in partnership with the region’s Indians, who are compensated
for collecting the seeds. The farmers, in turn, are doing their part by preserving riparian
vegetation and local rivers. At the end of the program, each participating franchise receives
a Green Store plaque.
In 2013, during the second stage of the project, our franchisees will adopt actions to reduce
emissions of these gases and we will encourage more franchisees to join the program. The
aim is simple: to plant fewer trees as our operations become more sustainable. The offsetting
is conducted annually, as is the awarding of the plaques.

41. 41
AnnualReport2012

42. 42
AnnualReport2012
Social Small Change - Rosário
Drogaria Rosário is aware of the importance of its contributions to the development
of communities in which it operates and to the improvement of the quality of life of the
inhabitants of Brasília (Federal District). Social Small Change is a project carried out in
partnership with the Brazilian Association for Assistance for Families with Children who
have Cancer and Blood Diseases (Abrace) and the CDL Foundation, and gives our clients
the opportunity to donate the change they receive when they make purchases at our
stores to charitable organizations.
Abrace, for example, uses the money raised for activities for children with cancer, and the
CDL Foundation invests in support for institutions that care for people in need.
Formoreinformation,see:http://www.drogariarosario.com.br/#!/responsabilidade-social
Grandma’s Tea – Mais Econômica
To raise awareness, Grandma’s Tea is an activity aimed at the elderly audience,
developed in the communities in which we operate in southern Brazil. Held once
per month, Grandma’s Tea offers an entire afternoon of fun and lectures for those
who take part. Among the themes are explanations about the government program
Farmácia Popular, the use of generic drugs, and products aimed at the elderly. Gym,
dance, and drama classes complete the fun, which benefits the roughly 300 people
who participate in each program.
Big Happy Day – Big Ben
In October, the Month of Children, our employees provide a day of merriment with
playful activities and the distribution of toys to in-patients at three children’s health
institutions in the State of Pará. In 2012, this action benefited 300 children with
serious health problems.
7.2 Social Projects
2010
R$
218,814.99
2012
R$
315,047.96

43. 43
AnnualReport2012
8. Stock
Market
2012 was an important year for BPHA3. We made our second public offering
and distribution of shares and we observed a marked increase in the stock’s
liquidity.
During the year, the stock also produced a solid return for our
shareholders. We ended 2012 with a share price of R$ 14.40 and
a market cap of R$ 3.7 billion. The average daily trading volume
during the 12 months was R$ 5.4 million, which rose to an average
of R$ 14.0 million during the two months following the end of the
minimum lot.
69.5% appreciation
for BPHA3
7.4% appreciation in
the Ibovespa
R$ 1.4 bi
R$ 3.7 bi
2011
Market Cap
2012
IPO
(06/24/2011)
R$ 387.0 million raised
24 million shares issued
Price R$ 17.25/share (R$ 8.63 after the share split)
Share Split
(12/23/2011)
159,699,158 shares issued
after the share split
End of the minimum lot
(12/26/2012)
End of the minimum lot of 10,000 shares. BPHA3 begins to
be traded using the BM&FBovespa’s standard lot
(100 shares, with the odd-lot market being allowed)
Follow-on
(06/21/2012)
R$ 466.4 million raised
52.8 million new shares issued
Price R$ 9.25/share
R$ 8.62
R$ 7.98
R$ 9.50
R$ 14.00
Jun-2011
Jul-2011
Aug-2011
Sep-2011
Oct-2011
Nov-2011
Dec-2011
Jan-2012
Feb-2012
Mar-2012
Apr-2012
May-2012
Jun-2012
Jul-2012
Aug-2012
Sep-2012
Oct-2012
Nov-2012
Dec-2012

44. 44
AnnualReport2012
9. Operational
Performance
Note:
Proforma figures, assuming all of our drugstore chains integrated Brasil Pharma group since 2011.
1 - Excludes non-recurring expenses, results from equity accounting and profit sharing.
2 - Excludes non-recurring expenses, intangible assets (commercial establishments) amortization, brand amortization and income tax effect on non-recurring expenses.
Summary of Results (R$’000) 2011 2012 Var(%)
Gross Revenues 2,558,435 3,094,293 20.9%
Gross Profit 801,536 947,968 18.3%
% Gross Margin 31.3% 30.6%
Ajusted EBITDA¹ 155,354 191,034 23.0%
% Adjusted EBITDA Margin 6.1% 6.2%
Adjusted Net Profit² 92,217 70,110 -24.0%
% Adjusted Net Margin 3.6% 2.3%
Operating Indicators
Number of employees 8,662 16,629
Average Ticket (R$) 29.5 30.5
SSS (mature stores) 6.6% 8.2%
SSS (total) 9.8% 14.1%
Number of stores 737 1,096
Owned stores 378 708
Franchises 359 388
Owned Store growth 233 330
Openings 97 96
Closings -11 -15
Acquisitions 147 249
The year of 2012 was another year of growth and consolidation for the Company, due to the positive result of both the performance
of the industry and our focus on execution. We ended the year with accelerated growth, with sales pushed by sound double digit
organic growth and SSS (same store sales), thus meeting our revenue target set for 2012.
By the end of December, we had 1,096 points of sale, of which 708 owned stores and 388 franchises. During the year, we
completed the opening of 96 owned stores, number slightly below our target of 100 openings estimated for the period. As a result,
we expanded our operations in all regions of Brazil, particularly in the North/Northeast, where 34 stores were opened, and in the
Midwest, with 28 openings.
We remain focusing our efforts on creating a solid Brazilian company, in the path towards our dream of becoming the country’s
best drugstore chain. In order to do so, we believe we are the first choice of our clients, suppliers, employees and talents, delivering
consistent results and generating value to shareholders. We once again thank everyone for the confidence placed on us.

45. 45
AnnualReport2012
Note:
Proforma figures, assuming all of our drugstore chains integrated Brasil Pharma group since 2011.
1 - Excludes non-recurring expenses, results from equity accounting and profit sharing.
2 - Excludes non-recurring expenses, intangible assets (commercial establishments) amortization, brand amortization and income tax effect on non-recurring expenses.
Gross Revenues
(In millions of Reais)
Gross Profit and Gross Margin
(In millions of Reais|% of gross revenues)
30.1% 32.2% 31.4% 31.5% 30.2% 30.1% 30.7% 31.5% 31.3% 30.6%
Adjusted Net Profit² and Adjusted Net Margin
(In millions of Reais|% of gross revenues)
2.1% 4.6% 3.6% 4.0% 1.4% 3.2% 3.3% 1.0% 3.6% 2.3%4.6% 6.9% 6.5% 6.1% 5.3% 6.2% 6.5% 6.6% 6.1% 6.2%
Adjusted EBITDA¹ and adjusted EBITDA margin
(In millions of Reais|% of gross revenues)
1Q11
553
2Q11
613
3Q11
674
4Q11
719
1Q12 2Q12
699 747
3Q12
804
4Q12
844
2011
2,558
2012
3,094
1Q11
166
2Q11
197
3Q11
211
4Q11
227
1Q12 2Q12
211 224
3Q12
247
4Q12
265
2011
802
2012
948
1Q11
11
2Q11
28
3Q11
24
4Q11
29
1Q12 2Q12
10
24
3Q12
27
4Q12
9
2011
92
2012
70
1Q11
25
2Q11
42
3Q11
44
4Q11
44
1Q12 2Q12
37
46
3Q12
52
4Q12
56
2011
155
2012
191

46. 46
AnnualReport2012
10. Closing
Message from
Management
Everything that we have built and achieved over the course of 2012 suggests a
positive, healthy outlook. The path is full of challenges that will, no doubt, require
ever-greater efforts and dedication on the part of our people, but nevertheless looks
extremely encouraging for the next few years. Analyzing the industry’s situation,
our future agenda, and our employees’ spirit and level of preparation, we can see a
number of opportunities for growth, whether of an organic nature or by acquisition.
For these reasons, we continue to hold firm to our dream of being the best drugstore
chain in Brazil. At the points of sale, where consumers can see the difference, we
believe that the local adjustment of our product mix to regional characteristics and the
credibility of our brands with our customers will continue to provide us with a marked
competitive advantage to seize market opportunities that arise.
Because we boast pioneering brands in the regions where we operate – with many
of them keeping pace with the growth of the cities in which they are located – we
are sure that we will always have local answers to national problems. This pioneering
approach will continue to ensure that we have the best locations for our points of sale
and unique knowledge of regional specifics and local trends, in addition to an in-depth
understanding of different client profiles.
In our industry, each market has a differentiated product mix, along with its own
seasonal characteristics and price dynamics. For many years, we have been monitoring
the nuances of each of these markets to offer our clients the most complete variety of
cost-effective products, at the right time. We will continue to operate in this manner.
Regarding consumption, because our company was created for the purpose of taking
care of the health and well-being of our clients, we hold firm to our conviction that it
is also necessary to take care of the planet on which we live. In 2013, we are continuing
practices that were adopted over the course of 2012 and will continue to take new and
important initiatives in terms of social and environmental responsibility.

47. 47
AnnualReport2012
Regarding what goes on behind the scenes of our operations, it is worth remembering
that because we were heavily focused on integrating our operations in the SSC, in
2012 we opted to keep higher levels of inventories to prevent omissions in our level of
service and to retain the loyalty of our regional customers.
At our Distribution Centers and stores, we have programmed the major task of
optimizing SKUs, unifying the supply of certain products to our regional operations.
We are also investing a great deal of time and resources in developing technology
and systems that will give us a long-term competitive advantage in the retail sector.
To round things out, in 2013 the implementation of SAP should produce important
future gains in terms of efficiency in managing our inventory levels.
To support this agenda, we will further increase our investments in the training of
our talented people. We believe that good people attract good people, and, with this
in mind, we will also have a team that is more engaged and better prepared for the
challenges that we are going to face. Our merit-based approach will also continue to
dictate the rules in terms of our recognition actions, so that our employees are always
looking at a broad horizon of professional growth.
2013 will be the year in which our new brand will fully invade the streets and our stores
and become our customers’ friend. This means that our regional brands will continue
to have all of the strength and credibility that they already display, but that they will
be accompanied by the endorsement of a nationwide brand that the whole of Brazil
already knows and trusts.
These efforts, which involve the entire Company, will have a unified final result: a unique
standard of excellence in customer service and consumer experience for all of our clients
throughout the whole of Brazil. The Brasil Pharma standard, the first option for customers,
suppliers, employees, and investors of the country’s best drugstore chain.

48. Credits
This Annual Report was developed by
Brasil Pharma. Areas involved: Investor
Relations and People & Management.
Graphic Project and Layout
LOWBUDGET | www.lowbudget.com.br
Send us your comments
Your opinion on this Annual Report is
very important for us. Please send
your comments to ri@brph.com.br

49. 49
AnnualReport2012
Brasil Pharma would like
to thank all employees that
enriched this report with their
pictures and testimonials.

50. 50
AnnualReport2012
www.brph.com.br