CM Hospitalar (VVEO3) investor relations material

Executive summary

• Simplified executive structure and governance improvements were implemented, focusing on functional clarity and integrated decision-making, with direct business responsibility for all VPs.

• Delivered meaningful growth in Gross Profit, EBITDA, margins, ROIC, and cash generation in 1Q26, despite virtually stable revenue year-over-year.

• Operational recovery continued, with improved commercial discipline, operational efficiency, and focus on earnings quality.

• Hospitals and Clinics unit showed consistent improvement, while Laboratories and Vaccines faced lower private demand due to public immunizer availability.

• Achieved first-ever positive free cash flow for a first quarter, totaling R$45.6 million.

Financial highlights

• Net revenue reached R$2,832 million in 1Q26, up 1.7% year-over-year, reflecting a more selective commercial strategy.

• Gross profit increased 16.2% to R$446.5 million, with gross margin expanding by 2.0 p.p. to 15.8%.

• Adjusted EBITDA grew 30.4% to R$208.1 million, with margin up 1.7 p.p. to 7.4%.

• Adjusted net loss widened to R$35.3 million from R$20.9 million due to higher financial expenses.

• Free cash flow was positive at R$45.5 million, reversing a R$52.2 million outflow in 1Q25.

Outlook and guidance

• No formal guidance provided, but management expects continued cash generation sufficient to service debt, with a focus on margin, selectiveness, and operational excellence amid a volatile macroeconomic environment.

• Healthcare sector faces lowest price adjustment in 20 years, ongoing transformation in oncology, and double-digit growth in institutional distribution.

• Regulatory advancements and patent expirations may drive further sector growth.