Odontoprev (ODPV3) investor relations material

Business model and market position

• Operates exclusively in dental care, with a digital, asset-light model and nationwide coverage, serving over nine million clients and nearly 30,000 dentists.

• Maintains market leadership for over 20 years, with a focus on large corporate contracts but expanding into small and medium enterprises (SMEs).

• Technology and data analytics are core competitive advantages, enabling high efficiency, quality control, and fraud reduction.

• Partnerships with major banks, especially Bradesco and Banco do Brasil, provide exclusive distribution channels and access to new client segments.

• The company’s cost structure is highly efficient, with costs below 40% of revenue, supported by ongoing investments in technology.

Financial performance and growth outlook

• Margins have expanded from 49% to around 62% due to a shift in client mix toward SMEs and individuals, which offer higher profitability.

• Growth is expected to continue, especially in the SME segment, though overall revenue growth is currently in the mid-single digits.

• The company operates with zero debt and a strong cash position, distributing nearly all profits as dividends or share buybacks.

• Financial income is partially protected from interest rate declines due to a mix of long-term IPCA-linked investments and short-term Selic exposure.

• Efficiency gains from technology investments are expected to further improve margins and offset any reduction in financial income.

Dividend policy and shareholder returns

• Has distributed an average of 95% of profits as dividends over the past decade, with a strong commitment to regular and high payouts.

• Dividend yield typically ranges from 8% to 10%, combining dividends, interest on capital, and occasional share buybacks.

• Maintains flexibility in dividend payment timing, prioritizing financial prudence and strategic needs.

• Predictability and sustainability of dividends are supported by a stable business model, zero leverage, and prepaid contracts.