Afya Limited

with AFIA's CEO, Vigido Gibon, and our CFO, Luis André Blanco. During today's presentation, our executives will make forward-looking statements. Forward-looking statements can be related to future events, future financial or operating performance, known and unknown risks, uncertainties, and other factors that may cause AFIA's actual results to differ materially from those contemplated by these forward-looking statements. Further look at the statements in this presentation include, but are not limited to, statements related to the business and financial performance, expectations and guidance for future periods, or expectations regarding the company's strategic product initiatives and its related benefits. These risks include those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available to us at the date hereof. You should not rely on them as prediction of future events, and we disclaim any obligation to update any forward-looking statements, except as required by law. In addition, Manager May references non-IFIS financial measures on this call. These measures are not intended to be considered in isolation or a substitute of the results prepared in accordance with IFRS. This presentation has reconciled these non-IFRS financial measures to the most directly comparable IFRS financial measures. Now, let me turn the call over to Virgilio Gibon, AFS CEO.

Thank you, João, and welcome to our second quarter and first half conference call for 2025 results. Starting with the slide number three, we are pleased to report that AFIA continues to deliver strong operational and financial results. This performance highlights the high predictability of our business model and the successful execution of our strategy, which consistently combines robust growth, increased profitability, and solid cash generation. AFIA's three strategic pillars for long-term value creation. This quarter, once again, was marked by significant revenue growth and gross margin expansion in both our undergrad and continued education segments, reflecting the steady expansion of our business and our ongoing commitment to operational excellence. We are also pleased to reaffirm that AFIA remains on track to meet our full-year 2025 guidance, supported by disciplined execution and strong business fundamentals. Once again, we delivered strong performance closing the first half of 2025 with a notable growth of 15% in revenues, reaching R$1,856,000,000. Adjusted BIDA reached R$893,000,000, expanding 20% year-over-year with an impressive margin of 48.1%, an increase of 220 BIPs over last year. This margin expansion was primarily driven by the solid results of our undergrad and continued education segments, supported by cost initiatives and our shared service center, helping to boost efficiency and unlock operational synergy across selling, general, and administrative expenses. In addition, supported by the increase in adjusted EBITDA, our basic EPS climbed to 4.69 reais, representing a 17% increase over the previous year. Even after accounting for the effects of the new tax legislation aligned with the OECD Pillar 2 rules, we continue to deliver a higher value to our shareholders. Moving to our operational updates, we have 3,653 approved seats with the closing of Funic Acquisition, which contributed an additional 60 seats to our portfolio. Furthermore, our number of undergrad medical students has reached almost 26,000 students, representing nearly 14% growth compared to the first half of 2024. In addition, the medical school net average ticket, excluding the UNI-DOM acquisition, reached R$9,140, over 3% increase year-over-year. In continued education, Revenue increased almost 8% over last year, reaching 138 million reais, and in medical practice solutions, we saw over 9% growth in revenues compared to the first half of last year, reaching 84 million reais. Lastly, our ecosystem reached 302,000 active users, reflecting strong engagement and deep penetration among physicians and medical students across Brazil. Moving to slide number four, we will discuss the highlights across our three business sectors. Starting with the undergraduate segment, medicine courses continue to show strong performance with a student-based increase of 14%. This growth, in addition to integration of Unidom and the ramp-up of four Mais Médicos campuses, launched in the third quarter of 2022, contributed to a gross margin expansion for the segment. Additionally, as already mentioned, we completed the acquisition of Funic, which added 60 new medical seats to our portfolio. With operations starting the second semester of 2025, further strengthening our academic capacity and presence. The continued education segment was marked by an increase in graduate journey students, in addition to a gross margin expansion driven by our ongoing operational restructuring, which continues to contribute to improving costs. In medical practice solution segment, growth was driven by clinical management payers, an increase of 10% year over year. B2B, business to physician revenues, for the first semester also saw a growth of almost 12%, compared to the same period of the prior year. On the next slide, I'd like to share AFIA's new Share Repurchase Program approved by the Board of Directors. We plan to repurchase up to 4 million Class A chairs by December 31st, 2026 through open market transactions or private negotiated yields. This initiative reflects our strong commitment of creating shareholder value and ensuring sustainable business performance. It also reaffirms the strength and the robustness of our balance sheet, while reflecting our discipline and forward-looking capital allocation strategy aligned with the current economic and political landscape. And now I will turn the call over to Luis Blanco, as the CFO, to provide further insight into the financial and operational metrics. Thank you. Thank you, Virgilio, and good evening, everyone. starting with slide number seven for discussions of key operational metrics by business units, starting with the undergraduate programs. The number of medical students grew almost 14% year-over-year, reaching nearly 26,000 students, while the number of approved medical seats increased 14%, totaling 3,653 seats, considering the FUNIC acquisition. Our medical school net average tickets, excluding the only door positions, rose by over 3%, reaching R$9,140 in the end of the first semester. As a result, revenue for the undergraduate segment grew over 16%, totaling R$1,642 million. It's worth mentioning that 86% of this revenue comes from the medicine products and 94% from health-related courses, reinforcing our strategic focus and leadership in the sector. On the next page, I'll present our continuing educational metrics. We approach continuing education through three main journeys, starting with the graduate journey, the most relevant within continuing education. It presented a 12% growth, reaching 9,055 students. And other courses and B2B offerings also saw a solid growth of 90% compared to the same period of last year. The residency journey, which includes projects focused on the magical residency preparation, ended the quarter with 9,224 students. a 29% decrease year-over-year. Revenue for continuing educational rose to R$138 million, up from R$128 million in the first semester of 2024, representing an 8% growth. This includes a 5% increase in B2B revenue and an impressive 42% increase in B2B. On the next slide, I'll discuss the medical practice solutions operational metrics. The first graph shows our total active payers, which generate revenues in business to physician. This semester, we maintained a solid of 196,000 paying users, in line with the same period of the prior year. The second chart highlights our monthly active users, which account for 230,000, a reduction of 9% in comparison to the same period of the prior year. Finally, the third chart presents the revenue for the segment, which grew over 9% year-over-year, reaching 84 million reais. Of these, 75 million reais come from B2B, up 12%, and 9 million from B2B, 8% down compared to the same periods of the prior year. On the next slide, we present AFIA ecosystem. We are proud of the meaningful impact of AFIA continues to make across Brazil healthcare ecosystem. By the end of the second quarter of 2025, 302,000 users were actively engaging with our service and products, reflecting our solid relevance and reach in medical educational and medical solutions. Moving forward to page 11, I want to discuss our financial overview for the second quarter and the first half of 2025, starting with the next slide. With great satisfaction, I present another strong quarterly performance for ASEAN. Revenue for the second quarter of 2025 reached 919 million reais. reflecting a 14% increase over the same quarter of the prior year. And for the six-month period, revenue was R$ 1,856 million, an increase of 15% over the same period of last year. This growth is mainly driven by a 3.2% increase in the net average ticket for medical courses, maturations of medical seats, and acquisitions of unidoms. In the second quarter of 2025, adjusted EBITDA increased 17% to 401 million reais, with an adjusted EBITDA margin of 43.6%, marking an increase of 110 base points compared to the second quarter of 2024. For the six-month period, adjusted EBITDA was 893 million reais, an increase over 20% in comparison to the same period of the prior year. with adjusted EBITDA margins of 48.1%, an increase of 220 base points in the same period. The adjusted EBITDA margin expansion is mainly due to gross margin expansions within undergraduate and continuing educational segments. Completion of unidom integration. the hump-up of the four-month medical campus that stopped operations in the third quarter of 2022, operation-restricted efforts in our continuing education and medical practice solution segments, and more efficiency in selling general and administrative expenses. On the next page, cash flow from operating activities grew 15%, totaling R$783 million, driven by our robust operational performance. The operational cash conversions ratio was 88.8% in the second half of 2025. Net income for the second quarter of 2025 amounted to R$177 million, a 9% increase for the same period of 2024. For the six-month period that ended in June 2025, we saw an increase in net income reaching R$434 million, representing an increase of 70% year-over-year. Our net income this quarter reflects not only our strong operational performance, but also the impact of the new tax legislation implementing to the OECD Peter 2 growth. Our basic EPS reached R$0.90, for the quarter, an 8% increase compared to the previous years, and R$4.69 per share in the first six months period, a growth of 17%. And now, moving to my two last slides, we'll discuss our cash and net debt positions, often given more power on our cost of tax. This slide presents a table detailing our gross debt compositions and total cost of debt, covering our primary obligations, the soft bank transactions, the debentures, other financial liabilities, the IFC financing, and account tables to selling shareholders. Asia capital structure remains solid, with a conservative leverage position and the low cost of debt. ASEAN net debt excluding IFRS 16 divided to the midpoint of the 2025 adjusted EBITDA was only 0.97 times. On the next page, we can look closely at our net debt variation. As of the second quarter of 2025, our net debt has reduced to $1,600. and R$ 21 million when compared to the end of 2024, a reduction of R$ 194 million, even considering the payment of dividends and acquisitions of UNIC, reflecting our strong operational performance and capital allocation discipline. This concludes our prepared remarks. We are proud of our strong performance with DeliverThis quarter. Our focus on improving the medical journey through an integrated educational system and medical practice solutions remain strong, helping students to become doctors, supporting ongoing medical learning, and making physicians more accurate and efficient. Looking ahead, we are excited about the opportunities in front of us and confident in our ability to keep creating value in the entire ecosystem. I will now open the conference for the Q&A session.

Thank you.