Empreendimentos Pague Menos (PGMN3) Investor Presentation summary

Company and market overview

• Operates a unique healthcare platform in Brazil, combining strategic assets and a business model beyond traditional pharma retail.

• Second largest pharmaceutical retail chain with 1,649 stores and presence in all Brazilian states.

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

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

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

Competitive advantages

• Nationwide footprint with 1,649 stores in 399 cities and 9 distribution centers.

• Undisputed leadership in North and Northeast, with market shares of 21% and 16% respectively.

• Focused on lower-income and expanded middle-class segments, capturing the largest addressable market.

• Top-of-mind brands and robust customer engagement, with over 90% of sales identified and a strong loyalty program.

• Strong governance with an experienced, diverse board and management team.

Strategic plan and growth initiatives

• Vision to be Brazil’s best pharmaceutical retailer, offering complete health solutions and reducing healthcare access inequalities.

• Strategic priorities include store expansion, omnichannel development, customer loyalty, Health Hub, and complementary businesses.

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

• Completed integration of Extrafarma, achieving R$267 million in incremental EBITDA and consolidating regional leadership.

• Omnichannel platform integrates stores, e-commerce, app, call center, and delivery, with fast innovation cycles.