FLRY3. June, IBGC s 2010 Corporate Governance award in the category for listed companies. IBGC - Brazilian Institute of Corporate Governance

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1 FLRY3 IBGC s 2010 Corporate Governance award in the category for listed companies IBGC - Brazilian Institute of Corporate Governance June, 2011 TODOS OS DIREITOS RESERVADOS 2010

2 Our business A Medical Services provider, leader in Diagnostic and Preventive Solutions to clients The most trusted center for diagnostic tests Benefits from scale (5.4 MM patients, 32 MM tests) But we go beyond Knowledge converted into Innovation and Integrated Medical Services Knowledge Services in Integrated Medicine Pernambuco Presence in the main Brazilian economic centers DF Bahia Positioned for A, B and C plan segments Paraná Rio Grande do Sul São Paulo Rio de Janeiro Diversification Patient Service Centers, Diagnostic Operations in Hospitals, services for companies, clinical analysis and imaging services, Preventive Medicine Differentiation Strategy best choice, must have brands 2

3 Financial Highlights Double-digit growth with superior returns Revenues 13.6% 1Q11 YoY (13.3% organic growth YoY) (R$ Million) Consolidated gross revenues Revenues CAGR 07-10: 16.8% CAGR 16.8% EBITDA CAGR 07-10: 27.0% EBITA margin 2010: 23.1% 13.6% Strong acquisition track-record ( 02-11: 25 acquisitions) 3

4 Healthcare Sector in Brazil 4

5 Growth Potential for the Private Market Formal employment increase (Cumulative net job creation and cumulative net plan addition, Millions since 2005) 1,3 1,3 Source: CAGED/ANS 2,5 3,1 4,1 4, Net Job Creation 5,6 6,8 6,5 8,3 Net Plan Addition Increasing number of members (Millions of lives and % Health plan penetration) 9,1 11,9 (Millions of lives above 60 years old and % of total population) Source: IBGE Growing elder population % 10% % % 52.1 Private health plan penetration (% of population covered by private health plan) 24% % 53,9 45,6 31,8 18% 24% 27% E 85% 60% 24% USA Mexico Brazil Source: estimates based upon IBGE, ANS and Morgan Stanley Research data 2008; Source: IBGE, ANS ; U.S. Census Bureau; Instituto Nacional de Salud Publica 5

6 Selection of medical service provider: patient s choice, influenced by the physician 1.Physician raises a hypothesis, requests a series of tests and suggests where patient should be investigated 2. Patient goes to his trusted medical service provider 3. Medical service (e.g., diagnostic test) is provided 4. Patient receives reports and delivers to physician 6

7 Competitive Positioning 7

8 Provider of diversified healthcare solutions PATIENT SERVICE CENTERS OPERATIONS IN HOSPITALS LAB-TO-LAB Network of 137 Patient Service Centers under 5 brands In charge of Diagnostic Centers in 9 top tier hospitals Nationwide, provider of diagnostic solutions to over 3,000 laboratories Complete portfolio of diagnostics tests Clinical Analysis (Routine, Pathology & Esoteric tests) Diagnostic Center (Imaging, > 40 diagnostic specialties) HEALTH ASSESSMENT HEALTH PROMOTION CHRONIC DISEASE MANAGEMENT Market leader (individualized programs for executives) Wellness programs for companies Pioneer in the Brazilian market Partnership with Healthways 8

9 Competitive Advantages for all Stakeholders Health Plan Providers Offer several coverage options 72% of Fleury revenues Our brands portfolio covers the entire health plan coverage segmentation Employers Choose health plan and services provider: for them Fleury is a must-have Patients Choose service provider based on health plan coverage, personal preference and physician s indication Client satisfaction index above 90% Physicians Recommend health service provider Integrated Solutions Knowledge Generation Consultancy Innovation Offers preventive medicine solutions to improve employee wellness Best and most trusted center for diagnostic medicine for 85% of physicians (1) In 2009 Fleury competitor A competitor B Source: 2008 IBOPE; 2010 Ipsos 9

10 Portfolio of Brands for different Plan Segments Paraná Rio Grande do Sul DF São Paulo Bahia Rio de Janeiro Pernambuco Strong brand portfolio Fleury best and most trusted brand in Brazilian Market. Leader in A/B plans a+ New national brand, launched after extensive Marketing Research Unique competitive attributes and positioning Strong potential for capturing B/C segments Consolidated 13 brands, 94 PSCs, with operational synergies Positive reaction from HMOs High commitment of our employees to a novel, strong brand Weinmann leader in Rio Grande do Sul for A/B plans Campana competitive offer for basic plansin São Paulo Diagnoson New acquisition, adding Imaging services in Bahia 10

11 Valor (segundos) From Knowledge to Differentiation Tempo de Protrombina 40 32,00 24,00 16,00 8, /11/ /10/2009 5/10/ /9/2009 7/9/ /8/2009 Data Introduction of integrated reports Image results on the internet Resultado Referência Máxima Referência Mínima Test results with historical data Health assessment diversification 2005 Introduction of health promotion programs 2006 Knowledge management Introduction of disease management program Itaim Patient Service Center Integrated Medical Centers (1) Until October 2009 An incubator for Client Experience Innovations Use of art & culture in Service Innovation 11

12 Integrated Medical Centers Comprehensive approach, definitive diagnostic conclusions Tests performed in a rapid, sequential and prioritized way Specialized medical consultancy Integrated reports: conclusive elucidation of complex clinical cases New centers: 2010/2011 Integrated Neurology Center & Center for Sleep Disorders Advanced Gastroenterology & Endoscopy Center Lymphoma Center Center for Investigation & Rehabilitation of Urology Disorders Fetal Medicine Center Center of complex diagnostics procedures 12

13 Human Capital Profile 4,600 employees and 632 physicians¹ Professionals by Area¹ 12% 11% 77% 3.0% 0.1% 2.5% Business Units Administrative areas Physicians Age Years working at Fleury Group 1.9% 71.8% 8.3% 14% 4% 18% 13% 4% 17% 12.4% 38% 26% 26% 40% ¹ Dec 2010 up to 25 years above 50 years less than 1 year 1-3 years 4-10 years years above 20 years 13

14 Qualification and Talent Retention Qualification Physicians - Master degree/phd 37% - Post Doc 5% Investments in education (R$ million) Hours of training per employee 34.4 hours Global average¹ (1) source: American Society of Training and Development, 2008 Turn Over (12-month average) 14

15 From Knowledge to Competitive Advantage Knowledge generation Integrated solutions Artificial intelligence tools to analyze test results ¹ physicians¹ 172 peer-reviewed published articles 313 abstracts in scientific meetings 95 book chapters # of new products New products Knowledge Innovation 39 medical specialties branches, 60 types of integrated reports Medical Consultancy Services 24/7 Physicians analyze complex cases and suggest subsequent investigation Revenues in BRL millions ² ² Last 24 months revenue from products launched in the 24 month period # of consultancies registered in electronic medical records 15

16 High corporate governance standards and experienced management team High corporate governance standards before going public Strategic Board of Directors since 1998 Independent members since creation (3 independent out of 9) Audit and Risk Management Committee Strategy Committee Compensation, Appointment and Organizational Development Committee External auditing since 1992 IBGC s 2010 Corporate Governance award in the category for listed companies: Model minimizes corporate succession problems in the company (no heirs) Good evaluation system for executives and employees at all levels Well structured variable remuneration and stock option plan Board of Directors is very focused on strategy and less on operational issues Other Awards 2008 and 2009 Executive of Value Healthcare Industry IBGC s 2007 Corporate Governance award in the category for unlisted companies Key Executives Omar Hauache Chief Executive Officer Accumulates Integrated Medicine and M&A Wilson Pedreira Executive Director, Patient Service Centers Rogério Rabelo Executive Director, Operations Jose Marcelo Oliveira Executive Director, People & Organizational Development Paulo Pedote Executive Director, Infra-structure and IT Rendrik Franco Executive Director, Strategy and Marketing Fábio Marchiori Executive Director, Chief Financial Officer & Investor Relations Years of experience Healthcare industry Fleury Group IBGC - Brazilian Institute of Corporate Governance 16

17 Multiple opportunities for growth Growth in Preventive and Therapeutic Medicine Expansion of hospital and lab-to-lab operations Selective acquisitions Increasing services offering to existing clients New offerings with focus on Imaging tests High growth specialty diagnostics tests Expansion/Relocation of service units Goals Increasing size and number Improving qualification Increasing attraction of potential clients for units in each brand Pursue add-on acquisitions on Current markets Imaging diagnostics business New markets Increase number of hospitals and lab clients Search for new opportunities/businesses To expand chronic disease management business line 17

18 Strategic Acquisitions: leveraging future growth opportunities Enhancing services diversification, geographical presence and knowledge base 25 acquisitions since Rio de Janeiro Bahia Pernambuco São Paulo Paraná Rio de Janeiro São Paulo Bahia São Paulo Rio de Janeiro Bahia São Paulo Rio Grande do Sul Rio de Janeiro MoU Paraná 18

19 Operational and Financial Performance 19

20 Double-digit growth (R$ Million) Consolidated gross revenues CAGR 16.8% 13.6% Organic Growth (YoY) 12,5% 11,8% 13,3% 4,3% 8,0% 1T10 2T10 3T10 4T10 1T11 Source: Company data 20

21 Operational highlights Average revenue per square meter and total square meters (R$ Million) Average Gross Revenue per Patient Service Center Thousands m² PSCs Gross Revenue PSCs per m² (R$ thousand) ,9 3,4 2,9 CAGR 17.8% 4,2 3,4 4,5 5,6 12.4% ,4 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 1, Q10 1Q11 Number of PSCs Q10 1Q11 21

22 Revenues breakdown 36.6% 36.4% 32.6% 32.2% 63.4% 63.6% 67.4% 67.8% 1Q10 1Q11 1Q10 1Q11 Gross revenues breakdown by business line 1Q11 (%) 1Q11 (%) Gross revenues breakdown by source Individuals 13% Other sources 15% Health Plan Providers 72% Source: Company data 22

23 High Margins (R$ Million) EBITDA and EBITDA margin 0,3 0,2 0,2 CAGR 27.0% % 51 (R$ Million) Q10 1Q11 Net income and net margin 130 CAGR 72.5% % Q10 1Q11 23

24 12/16/09 01/16/10 02/16/10 03/16/10 04/16/10 05/16/10 06/16/10 07/16/10 08/16/10 09/16/10 10/16/10 11/16/10 12/16/10 01/16/11 02/16/11 03/16/11 04/16/11 05/16/11 Capital Market Shares and Market Cap - 05/30/2011 Shares Outstanding 131,298,550 Free Float 37.2% Market Cap R$ 3.3 billion Close R$ Stock performance % -4.6% YTD11-6.2% 1Q11-9.0% FY % FLRY3 IBOV Since IPO +56.3% Free Float breakdown Source: Fleury data, Mar 2011 Average Daily Trading Volume 2011 R$ 4.6 mm 4Q10 FY10 R$ 3.9 mm R$ 3.3 mm 24

25 Fábio Marchiori CFO and Head of Investor Relations João Patah Investor Relations Manager Phone:

26 Back-up 26

27 Shareholder structure Bradseg Core Participações 22.3% 77.7% Free Float Integritas Participações Bradseg Partners of Core Participações Other shareholders 62.7% 3.0% 2.4% 31.8% million voting shares 27

28 Strategic portfolio of brands targeting different income classes in major markets Brand strategy, positioning in different market segments and competitive attributes DF Bahia Pernambuco Proactive medical consultancy in more than 40 different medical specialties Paraná Rio de Janeiro On demand medical consultancy Complete diagnostic center Rio Grande do Sul São Paulo Call Center Basic diagnostic center Clinical analysis: trustworthy results Basic patient service centers Intermediate diagnostic center Clinical analysis: trustworthy results modern, responsive, friendly and accessible approach Clinical analysis: interpretative results and integrated solutions Personalized care and Innovation Management: Fleury Group 28

29 Other Recent recognition One of the most valuable companies Top 2 in the sector 1 st among providers according to the Valor 1000, from Valor Econômico magazine. 1 st in Value Generation and margin from operations Top 2 in the sector 1 st among providers according to the 500 best Brazilian companies, from Istoé Dinheiro magazine. 1 st in Financial Sustainability and Corporate Governance August, 2010 August, 2010 One of the most valuable brands Fleury was rated as one of the most valuable brands in Brazil by BrandAnalytics and Millward Brown*. Company of the year in Human Resources Management Brazilian award, in September 2010, from Gestão & RH ( Management & Human Resouces ) magazine. The most valuable Brazilian brand, for the second year, in the medical diagnostic industry * Millward Brown is a leading global research agency specializing in advertising, marketing communications, media and brand equity research, BrandAnalytics is one of the most important brazilian brand consulting. 29

30 Cash Flow and Debt Cash Flow 1Q11 R$ MM Net Income 27 Op. Cash Flow 31 Net Cash Flow (1) Debt Position Total (R$ MM) Next 12m Loans Acquisitions 30 7 Taxes TOTAL DEBT Cash and Equivalents