Afya (AFYA) Investor Day 2024 summary

Strategic Positioning and Business Model

• Operates the largest integrated ecosystem for medical education and digital solutions in Brazil, supporting physicians from undergraduate studies through continuing education and daily practice, with a strong focus on reputation, quality, and healthcare industry integration.

• Maintains a robust network of 32 medical school campuses, 3,593 seats (11% of the private market), 5 multidisciplinary campuses, and over 22,000 current medical students, with 20,000+ physicians graduated since 1999 and 44,000+ in continuing education.

• Achieved brand awareness among medical professionals rising from 31% to 54% in under a year, supported by events and digital platforms, and is recognized for high employability (97%) and attractive physician compensation.

• Conducted over 55 million clinical consultations in the last 12 months and established more than 500 partnerships with hospitals and clinics.

• Differentiates through high regulatory scores (average 4.4/5), state-of-the-art infrastructure, and simulation centers accredited by the Society for Simulation in Healthcare.

Growth Strategy, Market Trends, and Financial Guidance

• Pursues organic growth via seat expansion (targeting 600 new seats by 2028), pricing power (projected 5.1% tuition increase in 2025), and new unit openings, especially in underserved regions through the Mais Médicos program.

• M&A remains a key lever, with 640 seats added by October 2024 toward a 1,200-seat goal by 2027, and recent integrations exceeding revenue and margin expectations.

• Projects undergraduate seat growth to 4,531–5,911 by 2028, combining organic, Mais Médicos, and acquisition-driven expansion.

• Net average medical tuition grew 13% from 2022 to 1H24, with a 5.1% increase set for 2025, outpacing inflation.

• Cash generation is robust, with over BRL 1.2 billion in operating cash flow in the last 12 months, net debt reduced by over BRL 540 million, and leverage at 1.6x EV/EBITDA.

Innovation, Digital Transformation, and Product Evolution

• Digital solutions are central, with AI-powered tools (e.g., Smart Clinic AI, Radar Whitebook) enhancing physician productivity and patient care, and a unified digital platform for continuing education and practice management.

• Whitebook app, integrated with iClinic RX, supports over 21 million medical content searches monthly, 1 million prescriptions per month, and 80% penetration among recent graduates.

• Cross-selling is a strategic focus, leveraging behavioral data and integrated platforms to increase overlap between education and practice solutions, reducing CAC and increasing lifetime value.

• B2B partnerships with pharmaceutical and healthcare companies are expanding, with 47 unique clients and 109 contracts in 2024, up 24% from 2022, and tailored marketing solutions for clients like Hypera Pharma.

• The company offers a comprehensive continuing education portfolio, with 64 new courses launched in 2024 and a strong focus on phygital (physical + digital) operations.