Auna SA

Good morning and welcome to our second quarter 2025 earnings conference call. My name is Ellie and I will be your operator for today's call. At this time, all participants are in listen-only mode. Please note that this call is being recorded. There will be an opportunity to ask a question at the end of today's presentation. Now, I would like to turn the call over to Anna Maria Mora, Head of Investor Relations. Ma'am, please go ahead.

Thank you, operator. Hello, everyone, and welcome to AUNA's conference call to review our second quarter results. Please note that there is a webcast presentation to accompany the discussion during this call. If you need a copy of the presentation, please go to our investor relations website or contact AUNA's investor relations team. Please note that when we discuss variances, we will be doing so on a year-over-year basis and in FX neutral or local currency terms. with regards to Mexico and Colombia, unless we note otherwise. Let's move to slide two. In addition to reporting and audited financial results in accordance with international financial reporting standards, we will discuss certain non-IFRS financial measures and operating metrics, including foreign exchange neutral calculations. Investors should carefully read the definitions of these measures and metrics included in our earnings press release of yesterday to ensure that they understand them. Non-IFRS financial measures and operating metrics should not be considered in isolation as substitutes for or superior to IFRS financial measures and are provided as supplemental information only. Before we begin our remarks, Please also note that certain statements made during the course of today's discussion may constitute forward-looking statements, which are based on management's current expectations and beliefs, and which are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that may be beyond the company's control. These include, but are not limited to, our expected adjusted EBITDA growth, the expected impact on revenues and profitability of certain initiatives we're pursuing in Mexico, and long-term financial position and flexibility as a result of certain initiatives we are pursuing related to payers in Colombia and our target leverage level. For a description of these risks, please refer to our Form 20-F filing with the U.S. Securities and Exchange Commission and our earnings press release. Slide three, please. On today's call, we have Suso Zamora, our Executive Chairman and President, Giselle Remy, our Chief Financial Officer and Executive Vice President, and Lorenzo Mazart, our Executive Vice President of Strategy and Equity Capital Markets. They will discuss AUNAS consolidated and segment financial and operating results for the second quarter, and will also provide updates on our various strategic growth initiatives. After that, we will open the call for your questions. Please go ahead.

Thanks, Ana Maria. And good morning, everyone. We appreciate you joining our latest results call. During the second quarter, our Mexico business resumed its growth, while our Colombian operations strengthened, with EBITDA growing again in this segment as well. Combined with the top line in EBITDA growth of our Peruvian operations, This resulted in consolidated FX neutral EBITDA growing five percent, slowly reasserting our trajectory. All three geographies contributed to the quarter's growth in the respective agencies. This demonstrates the strength of our regional health care platforms fundamentals and is encouraging with respect to recovering more growth during the remainder of the year. We remain bullish in the medium to long term. Return to the Quarters highlights a key aspect of Peru's performance was retaining within our healthcare network more patients from upstream services, such as emergency treatments and outpatient visits, leading to increased surgery volumes that have a higher average ticket. OncoSalud, the health plan side of our Peru business, delivered another solid quarter with respect to revenue and EBITDA, in addition to achieving a record low oncology MLR. In Mexico, we stabilized our doctor-supplier relationship, and there was a nascent volume recovery from the first quarter, indicating that the adjustments we have made are working. These adjustments enable physicians to more easily transition to our standards and practices in this particular area. As a reminder, this hasn't been the first time we've encountered operation setbacks when bringing a illness care model to a new market, which is a complex and gradual process, and which of course is disruptive to legacy medical protocols and practices. Also, as a reminder, our model is the one sought after by Mexico's insurance companies and other payers. with the aim of improving patient outcomes while effectively managing the cost of healthcare. Another bright spot in the quarter was our results in Colombia, where EBITDA and margin improved versus the first quarter, as the tactical measures that we've implemented to manage risk and improve cash flows have proven to be effective. Although our leverage ratio remained unchanged, Rest assured, we haven't lost sight of our medium-term target of three times net debt to EBITDA. Now, turning to slide five, AUNDA's total capacity utilization decreased 2.5 percentage points to 64%, mainly explained by Colombia, where we have intentionally slowed growth by proactively managing contracted services with intervened payers to mitigate payment risk and prioritize a positive cash cycle. among other measures we've taken in Colombia. In Mexico, utilization takes down again this quarter on lower surgery volumes and emergency visits that eventually drive hospitalizations and ICU admissions. As we manage to improve physician recruitment and engagement, we expect capacity utilization to recover in Mexico, and we remain focused on utilization related to high complexity services consistent with our growth strategy. At OncoSalud, the growth in general healthcare plans remained strong, growing 10% again this quarter, while membership in oncology plans grew 2%, and the MLR of these plans fell for the fourth consecutive quarter to below 50%, which reflects efficiencies that we've gained with respect to pharmaceutical costs. Let's now take a closer look at each of our segment results, beginning with Mexico on slide seven. Revenue in Mexico grew 5% year over year, despite fewer surgeries and emergency treatments. This was due to higher average tickets for these services, as well as the repricing of other services, such as radiology and chemotherapy. The lower mix of high complexity services in the quarter meant that the pace of EBITDA growth was slower than revenue growth, something that you also see reflected in the margin decline in the chart on the right of this slide. Nonetheless, Mexico's margin level is a healthy one, and ongoing efficiency initiatives have lowered our pharmaceutical costs and those related to surgical equipment. Although we expect the adjustments that we've made regarding the implementation of the AUNA way will help recover growth going forward, market conditions remain soft as the impact of tariff uncertainty continue to ripple through Mexico's economy, particularly in the north of the country. A brief word about uncle said in Mexico. We continue making headway on this important growth front. Our policies now provide nationwide coverage to a network of doctors and hospitals as well as ancillary medical services like Latin preventative care. In addition to Monterey this now includes Mexico City while I had a and he went. This is an important step forward towards scaling this new business and capitalizing on the massive gap in Mexico's health care market. Now let's turn to Peru on slide eight, please. The 5% revenue growth in Peru's health care services was mainly driven by the increase in surgery volumes, price increases, and an improved services mix across a network of facilities in the country. OncoSalud revenue grew 7% on the 10% increase in total plan memberships that I highlighted before, in addition to price increases that we made relative to inflation in the medical services sector. Besides a strong improvement in Peru's oncology MLR, its total MLR decreased 3.7 percentage points to just under 55% on an increase in general healthcare plans within the product mix. Now moving to Colombia on slide nine. The strong improvement in Colombia resulted from implementing risk sharing models and diversifying our base of payers away from intervened ones. Salud Total, for example, is a payer that AUNA began serving in Colombia on July 1st under a PGP contract with them, and we should start seeing this increasingly contribute to the top line in the upcoming quarters. Although Columbus revenue was flat year-over-year, EBITDA increased 9% and the margin expanded 1.4 percentage points. As you can see in the chart at the right of the slide, the sequential improvements were even stronger. Also noteworthy is the quarter's lower provisions for impairment losses, which reflects the timely receipt of outstanding payments from Nueva EPS, the largest intervened payer that we serve in the country. With that, I'll turn the call over to Giuseppe, who will provide some detail on our financial results.