Afya Limited

Thank you for joining us for AAPE School for School. I'm here today with AAPE CEO, Virginia Gibon, and our CFO, Luis André Blanc. 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 us as actual results to deform ultimately from those contemplated by these forward-looking statements. Forward-looking 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, its related benefits. These risks include those more fully described in our five links of the Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available to us as the date hereof. You should not rely on them as predictions of future events and we disclaim any obligation to update and forward look at the statements except as reported by law. In addition, management may reference no IFRS financial measures on this call. These measures are not intended to be considered in isolation or as 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 Virginia Gibon, FSU.

Thank you, Renata, and thanks, everyone, for joining us today for our third quarter and nine-month conference call. This quarter reflects more than financial performance. It demonstrates how our strategy continues to position AFIA for sustainable growth, transforming medical education across Brazil. We concluded our 13th semester after the IPO delivering strong growth, profitability, and cash generation, and keeping 100% of occupancy in all of our medical programs in Brazil. Our results highlight the strength of our ecosystem while advancing initiatives that will shape the future of medical education and medical practice. Today, I will cover key strategic developments and operational highlights that drove these results. Then, Luis Blanco will provide a detailed review of our operational and financial performance. Starting with slide number three. Let's begin with our main performance highlights and strategic priorities for the quarter. Our revenue for the nine-month period grew over 13% year-over-year, reaching R$ 2,784,000,000, followed by an adjusted EBITDA growth of almost 19% year-over-year, reaching R$ 1,292,000,000. Adjusted BIDA margin for the same period reached 46.4%, an increase of 200 BIPs over last year. We also reported a new record cash flow from operating activities, ended the nine-month period with R$1,292,000,000, 11% higher than last year, with a cash conversion of 101.5%. Net income followed the same positive trend as the last quarter and reached R$593 million, a growth of 20% year-over-year, with a basic EPS reaching R$6.40, 20% higher than last year, reflecting stronger operational performance. Turning to our operational updates, in this quarter, we maintain our leadership position in the medical education. supported by 3,653 approved medical seats, and 3,753 seats as of today after the approval of 100 medical seats in África Bragança. Our number of undergrad medical students has reached more than 25,000 students, representing 6% growth compared to the same period last year. Furthermore, our medical schools In the continued education segment, we continue to see solid results, presenting a revenue growth of 11% year-over-year, reaching R$208 million. For medical practice solution, we ended the quarter with an increase in revenue of over 9% year-over-year, reaching R$128 million in the nine-month period. Finally, our ecosystem reached 304,000 active users, reflecting strong engagement and broad adoption among physicians and medical students across Brazil. Moving on to slide number four, we will talk about our solid business execution within our three business units, starting with the undergrad segment. We saw important movements throughout the quarters, such as an impressive gross margin expansion and the successful beginning of unique operations. acquired in May of 2025. In addition, we are pleased to share that we received the authorization of expansion of 100 medical seats in África Bragança, bringing our total approved seats to 3,753 seats. The continued education segment was marked by an increase in graduate journey students, sustained by another round of organic expansion of our medical graduate campuses, with five new operating units in 2025 and a strong gross margin expansion. In this nine-month period, we saw a significant increase in B2B revenues with 65% over the last period. Lastly, in our medical practice solutions segment, once again, we ended the quarter with a growth in the clinical management active payers. In addition, we also saw an increase in B2B business to physician revenues, led by an 11% growth compared to the same period of the prior year. These results reinforce the opportunity ahead in medical practice solution, which continues to deliver increasing solutions for medical practice. In the next slide, I want to share how our ESG initiatives continue to create long-term value and strengthen others' commitment to sustainable growth. Over the nine-month period, we delivered 700,000 free healthcare consultations, including more than 500,000 of them medical consultations. These achievements exceeded the target set for 2025 and reflect our strong partnership with IFC through the sustainability-linked loan, as well as our public commitment to the United Nations Sustainable Development Goal No. 3. I also want to reinforce the creation of Instituto AFIA, which represents a new chapter in our journey. This initiative strengthens our focus on sustainability and social impact, with a clear commitment to advancing research, science and technology for the benefit of society, playing a strategic role in addressing non-communicable chronic conditions. Finally, AFIA's leadership in ESG was recognized by Valor Econômico through the Valor 1000 Award, which evaluates companies based on financial performance and ESG practices. AFIA was honored as the top performing education sector in Brazil for the fourth time in a row. And now, I'll be turning the call over to Luis Blanco, AFIA's CFO, to provide more insight into the financial and operational matters. Thank you. Thank you, Vigílio, and good evening, everyone. Starting with slide number 7 for discussions of key operational metrics by business unit. Starting with the under-graduated programs. Our number of medical students grew 6% year-over-year, reaching more than 25,000 students, while approved medical seats increased by almost 2% in the third quarter of 2025. Considering the expansions of 100 seats in África Bragança approved last week, the expansions in approved medical seats would be over 4% as of today. Our medical school net average ticket, excluding acquisitions, increased by 3.4% for the 9 months, reaching R$ 9,141. We have also achieved R$ 2,459 million in revenue, up from R$ 2,156 million from the prior year, an increase of over 14% due to higher tickets in medicine courses, the maturations of medical school seats and acquisitions of clinic. Regarding the revenue mix, 86% was derived from medical school students and 94% from health-related courses. On the next page, we present our continuing education metrics. We approach continuing education through three main journeys, starting with the residency journey. We saw a 36% decrease, reaching 9,969 students by the end of the period. In the graduate journey, student numbers grew by 26%, reaching 9,180 students. Lastly, our other course and B2B offerings increased by 5% over the same nine-month periods of the prior year. Overall, R$ 208 million in the nine-month period of 2025, up from R$ 188 million, reflecting a growth of almost 11% over the same period of the prior year. This includes a 7% increase in P2P revenue and a staggering 65% increase in P2P revenue. Moving to slide number 9, I will discuss the NETCorpred Solutions operational metrics. The first graph shows our total active payers, which are the ones that generate revenues in the business acquisition. The number of paying users reached 195,000, a 2% decrease over the same period of last year. The second graph highlights our monthly active users, which accounts for 228,000, lower than the 249,000 records over the same periods of the prior year. Lastly, the third graph shows revenue from our medical practice solutions segments, which grew over 9% year-over-year, reaching 128 million reais. This growth was primarily driven by an expansion in active payers in clinical measurements and a more favorable product mix. Of this total, R$ 114 million was generated by B2P, representing an 11% increase, while B2B contributed for R$ 14 million, a 2.5% decrease in the 9-month period. On the next slide, we also present AFIA ecosystem. We are pleased to highlight that AFIA's substantial contributions to the healthcare community in Brazil. By the end of the third quarter of 2025, our ecosystem encompass 304,000 physicians and medical students using our service and products. Moving forward to slide number 11, I want to discuss our financial overview for the third quarter of 2025, starting with the next slide. With great satisfaction, I am pleased to present another strong quarterly performance for Amphia. Revenue for the third quarter of 2025 reached 929 million reais, representing a 10% increase compared to the same period of the last year. Revenue totaled R$ 2,784 million for the nine-month period of 13% year-over-year. For the third quarter of 2025, adjusted debita rose by 15%, reaching R$ 399 million, with an adjusted debita margin of 43% and expansions of 160 base points compared to the third quarter of 2024. For the nine-month period, adjusted EBITDA amounted to R$ 1,292 million, an increase of 19% over the prior year, with an adjusted EBITDA margin of 46.4%, representing a 200 base points increase over the same period. The increase in adjusted EBITDA margin was mainly driven by higher gross margins in the undergraduate and continuing educational segments, restricting the initiatives within continuing education and medical practice solutions, and improved efficiency in selling general and administrative expenses. Moving to slide 13. The year's cash flow from operating activities rose by 11%, reaching R$ 1,292 million, reflecting a strong operating performance. The operation cash conversions ratio was 101.5% in the nine-month period of 2025. Net income for the third part of 2025 came at R$ 159 million, marking an increase of 28% over the same period of 2024. For the nine-month period ending in September, net income totaled 593 million RBI, up 20% year-over-year. This growth reflects stronger operational performance, combined with the recognition of deferred tax assets, partially offset by the additional taxations provisions related to OCDE Pillar 2 Global Minimum Tax Effects. AFIA Basic EPS for this quarter reached R$1.71, a 29% increase compared to the same quarter of 2024, with R$6.40 per share for the nine-month period of 2025, representing a 20% growth. And now, moving to my last three slides, I will discuss our cash and net debt position. I also give you more color on our cost of debts. On the next slide, we will discuss our gross debt. This slide presents a table detailing our gross debt compositions at the end of the third quarter 2025 and the total cost of debt. covering our primary obligations, the SoftBank transactions, the ventures, other financial liabilities, the IFC financing, and account payables to selling shareholders. Moving on to slide 15, I'm pleased to announce that we have strengthened our financial positions through a liability management. In October, we issued commercial loans totaling 1.5 billion reais. The usual proceeds was the early redemptions of Acquia First's insurance of debentures and the repurchase of the 150,000 Series A preferred shares held by SoftBank. We present a comparison between our actual positions as of the end of the third quarter of 2025 and the pro forma gross debt after the liability management. We have extended the gross debt durations to 3.2 years, while maintaining a low cost of debt at 106% of the CDI, even after the record chase of the preferred shares held by SoftBank. These actions strengthen our financial flexibility to support long-term value creations for our shareholders. On my last slide, we can look closely at the net debt variation. As of the end of the third quarter of 2025, net debt stood at R$ 1,342 million, a reduction of R$ 473 million compared to the end of 2024. This reduction was achieved even considering the acquisitions of Funic and the return to the shareholders protected by dividends and shares repurchased. Acquia's net debt, excluding the effect of IFRS 16, divided by the midpoint of the 2025 adjusted DAH guidance, was only at 0.8 times. AFIA's capture structure remains solid with a conservative leverage position and a low cost of debt. This concludes our prepared remarks. We are proud of the strong performance we've delivered this quarter. Our focus on improving the medical journey through an integrated education system and medical practice solutions remain strong. helping students 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 for the entire ecosystem. I will now open the conference for the Q&A session.

Thank you.