Empreendimentos Pague Menos (PGMN3) Investor Presentation summary

Company and market overview

• Operates a unique healthcare platform in Brazil, combining retail, clinics, and digital services.

• Second largest pharmaceutical retail chain with 1,653 stores and presence in all states.

• Serves over 21 million active clients annually, with strong brand recognition in North and Northeast.

• Brazilian pharmaceutical market shows robust growth, driven by an aging population and resilient demand.

• Market is highly fragmented, especially in lower-income segments, offering consolidation opportunities.

Competitive advantages

• Only major player focused on lower-income and expanded middle-class segments, with favorable store economics.

• Holds 21% market share in the Northeast and 16% in the North, double the next competitor.

• Over 90% of stores are in micromarkets where it has more than 10% share.

• Top-of-mind brands in core regions, with robust loyalty program and high customer engagement.

• Strong governance with experienced board and management, aligned for long-term growth.

Strategic plan and growth initiatives

• Focuses on store expansion, omnichannel integration, customer loyalty, and health hub development.

• Opened 250+ stores organically since 2021 and acquired ~400 Extrafarma stores, targeting a minimum 20% IRR.

• Completed Extrafarma integration, capturing R$267 million in synergies and consolidating regional leadership.

• Omnichannel platform integrates physical, digital, and delivery channels, with rapid innovation cycles.

• Digital sales now represent 14.7% of total, with over 5 million app downloads and high customer ratings.