Afya Limited

Recording in progress. Thank you for joining us for this conference call. I'm here today with our CEO, Eugenio Gibon, and our CFO, Luisa Greblon. 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, no and unknown risks, insurgencies, and other factors that may cause at-risk racial results to differ materially from those contemplated by these forward-looking statements. Forward-looking statements in this presentation include, but that 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 Final Inclusive Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available to us as the day starts off. You should not rely on data as predictions of future events, and we disclaim any obligation to update any forward-looking statements except as reported by law. In addition, management may reference no AFRS 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 IFRS financial measures to the most directly comparable IFRS financial measures. Now, let me turn the call over to Vigilio Gibon at the CEO.

Thank you, Renata, and welcome to our first conference call of 2026. It's with much satisfaction that AACI starts another year of great operational and financial performance. This quarterly result shows the high predictability of our business and successful execution of our strategy that once again combines growth with cash generation. AACI three pillars business model. In this presentation, I will cover key strategic topics, including our performance highlights, Successful business execution across our three segments. And finally, Luis Blanco will provide an in-depth look at our financial and operational performance. Now turning to page number three, let's begin by highlighting our performance achievements. Initially, our revenues increased by 8%, reaching R$ 1,013,000,000, accompanied by a growth in adjusted EBITDA of 4% year-over-year. reaching R511 million, with a margin of 50.5%. We also reported a free cash flow of R376 million, reflecting 3% increase compared to the previous year, boosted by the solid operational results of the company, with a cash conversion of 92.5% and a solid cash position of R1.3 billion at the end of the first quarter. With this consistent momentum, our net income reached R$ 262 million, marking a 2% growth year-over-year with an EPS of R$ 2.88, a 3% increase compared to the previous year. This growth reflects stronger operational performance partially offset by an approvision related to the OECD Pillar 2 Global Minimum Tax. Moving to our operational updates. We have now 3,768 operating medical school seats, with an increase of over 6% year-over-year. Additionally, our number of undergrad medical students has reached over 26,000 students, representing over 2% growth compared to the first quarter of 2025. Furthermore, we increased the net average ticket of medical school by almost 5% year-over-year, reaching 9,634 reais. In addition, we continue to observe improving performance in the continual education and medical practice solution sectors. In continual education, revenue increased 11% year-over-year, purely organically, reaching R$ 79 million. In medical practice solutions, we saw a 4% growth in revenue compared to the first quarter of 2025, reaching over R$ 43 million. Lastly, Our ecosystem has 304,000 active users, exemplifying substantial penetration among physicians and medical students in the country. Moving to slide number four, we will discuss our performance across our three business segments. To start with the undergrad segment, we observed important movements throughout the quarter, such as higher tickets in the medicine course with almost 5% increase year over year, above 2025 inflation. This growth was accompanied by a stable gross margin across the segment of 69%. In addition, we expanded our health science student base by 5,000 students compared to the first quarter of 2025. The continuing education segment delivered record on B2B revenue of $74 million in the first quarter of 2026. Supported by a record student base of 57,000 students and reflecting the continuous strength of our product offering and engagement across the segment. The medical practice solution segment delivered solid performance in the first quarter of 2026. Supported by an increase of 6,000 clinical management active payers, compared with the first quarter of 2025. And B2B revenue grew by 17%, reflecting the continued progress of our product offering and commercial initiatives across the sector. I will now turn the call over to Luis Blanco, ATS CFO, to provide further insight into the financial operational methods.

Thank you. Thank you, Vigilio, and good evening, everyone. Starting with slide number 6 for discussions of key operational metrics by business unions. Starting with the undergraduate programs. Our medical student base grew by 2% compared with the first quarter of 2025, reaching 26,000 students. While operating medical school seats increased by over 6% year-over-year to 3,768. Our medical school net average ticket increased by 5%, reaching 9,634 reais in the first quarter of 2026. In addition, revenue for the undergraduate segment soared an 8% increase, achieving 892 million reais, 86% of which is related to medicine and 94% from health-related courses. On the next phase, I will present our continual educational metrics. We approach continual education through three main journeys, starting with the residency journey, which encompasses products focused on the residency preparation. We saw a 20% decrease, reaching 9,744 students by the end of the period. In the graduate journey, focused on specialization tests in medicine, students grew by 15%, reaching 9,855 students. Lastly, our order-crossed B2B offerings increased and increased 41% over the same three-month period of the prior year. Continued educational revenue rose to R$ 79 million in the three-month periods of 2026 up from R$71 million in the three-month period of 2035, reflecting a growth of 11%. This includes a 13% increase in B2B revenue and 14% decline in B2B. Moving to slide number eight, I'll discuss the Magical Prep Solutions operational metrics. The first graph shows our total active payers, which are the ones that generate revenues in the business competition. The number of active payers declined to 201,000, a 1% decline over the same quarter last year. The second graph highlights our most active users, which account for 221,000, a reduction of 10% compared to the same period of the prior year. Lastly, in our final graph represents a revenue of our medical practice solution segments, which has expanded by over 4% compared to the same quarter of the last year, reaching 43 million reais. Of this total, the 38 million reais was generated by D2P, showing an increase of 3%, while D2P contributed to 5 million reais. 70% increase over the same quarter last year. In the next slide, we presented our AFIA ecosystem. We are pleased to highlight AFIA's substantial contributions to the Brazilian healthcare community. By the end of the first quarter of 2026, our ecosystem encompassed 304,000 physicians and medical students using our service and products. Moving forward to page 10, I want to discuss our financial overview for the first quarter of 2026, starting with the next slide. With great satisfaction, I present another strong quarterly performance for Antia. Revenue for the first quarter of 2026 reached 1,013 million reais, representing an 8% increase compared to the same quarter of last year. The quarter revenue increase has many due to higher tickets in medicine courses, the increase in non-medical undergraduate students, the acquisition of UNIC, and advancement of the continuing educational staff. In the first quarter of 2026, adjusted debt rose by 4%, reaching 511 million reais, with an adjusted debt margin of 50.5%. a reduction of 200 base points compared to the first quarter of 2025. The reduction in adjusted down margin was primarily driven by higher costs and expenses in continuing educational and medical practice solution segments, making reflected a lower gross margin compared with the first quarter of 2025 and higher payroll sales and marketing expenses associated with the ongoing investment cycle in both segments. Moving to the next slide. The first quarter cash flow from operating activities rose by 0.6%, reaching 473 million reais. The operating cash flow conversions ratio was 92.5%. Net income for the first quarter of 2016 than in a 2% increase from the same period of 2015. This growth reflects stronger operation performance, partially offset by an additional taxation provisions related to OCDE Pillar 2 Global Minimum Taxation. Despite a lower adjusted EBITDA margin driven by higher expenses in continuing education and medical practice solutions, net income growth was sustained supported by the disciplined execution and the consistency of our business model. Regarding EPS, we achieved R$ 2.88 per share in the three-month period, representing a 3% increase year-over-year. And now, moving to my two last slides, I will discuss our cash and net deposition, also giving more color on our cost of tax. This slide presents a table detailing our gross debt compositions at the end of the first quarter of 2026 and the total cost of debt covering our primary obligations. ASEA capital structure remains solid with a conservative leverage position and a low cost of debt. ASEA net debt excluding IFRS 16 divided by the midpoints of the 2026 adjusted EBITDA guidance was 0.7 times. Our financial discipline was also independently recognized. On May 5th, Boots reaffirmed Asia credit rating at AAA with a stable outlook reflecting our consistent revenue growth above industry average margins, solid cash generation, and robust liquidity. while also recognizing our strong competitive position and disciplined approach to liability management and capital allocation. On the next page, we can look closely at the net debt variation. As of the end of the first quarter of 2036, our net debt has reduced to 151 million reais when compared to the end of 2025, a reduction of 218 million reais, even considering the repurchase of 70 million reais in treasury in the first quarter, reflecting our strong operational performance and capital allocation discipline. This concludes our prepared remarks. We are pleased with the progress achieved during of our executions across the business sector. Our commitment to advance it through the medical journey through an integrated ecosystem of education and medical practice solutions remains unchanged. Supporting students through their path to becoming physicians, promoting continual medical learning, and enhancing physician decision making and productivity. Looking ahead, we remain focused on executing our strategy with discipline and capturing the opportunities ahead. I will now open the conference for the Q&A session. Thank you.