Hapvida Participacoes e Investimentos (HAPV3) investor relations material

Executive summary

• Integration process completed, shifting focus to long-term strategic objectives and customer-centric investments in healthcare delivery and clinic network expansion.

• Net revenue reached R$7,674 million in 2Q25, up 7.3% year-over-year and 2.3% sequentially, driven by health plan price adjustments and beneficiary growth.

• Adjusted EBITDA, excluding a R$202 million non-recurring SUS/ReSUS impact, was R$905 million (11.8% margin); reported EBITDA was R$703 million.

• Beneficiary base grew by 58,000 in health plans and 91,500 in dental plans during the quarter, led by corporate and retail segments.

• Accelerated technology and AI initiatives, with strong early results in chronic kidney disease and breast cancer detection.

Financial highlights

• Net revenue for 1H25 totaled R$15,173 million, a 7.3% increase over 1H24.

• Adjusted net income at R$300 million, excluding resource-related one-offs; reported net income was R$149 million.

• Free cash flow conversion at 72% of EBITDA, with BRL507 million in operating cash generated; free cash flow for 2Q25 was R$570 million.

• Net debt reduced by R$150 million sequentially, reaching R$4,017 million (1.00x adjusted EBITDA).

• CapEx for 2Q25 was R$197 million, up 6.7% year-over-year.

Outlook and guidance

• Positive outlook for H2 2025, expecting continued organic growth from new product launches, process improvements, and robust corporate pipeline.

• Management expects continued beneficiary growth, cost control, and operational efficiency through vertical integration and network expansion.

• Average price readjustments for 2025 expected to be up to two percentage points lower than 2024, with MLR under control.

• One-off SUS reimbursement provisions are expected to impact results in the near term.

• Margin recovery strategies and price adjustments to offset medical inflation and competitive pressures remain a focus.