Fleury (FLRY3) Investor presentation summary

Business overview

• Focuses on diagnostic medicine, covering the entire patient journey with B2C and B2B services, and a broad portfolio including genomics, telemedicine, and primary to tertiary care.

• Operates 31 regional brands, 528 patient service centers, and serves over 8,000 lab-to-lab clients nationwide.

• Revenue sources have diversified, with B2C representing 67% and B2B 24% of 2024 revenues, and a CAGR of 14.2% from 2012 to 2024.

• Acquisition strategy has expanded geographic reach and service offerings, with recent deals in diagnostics, infusions, and ophthalmology.

• Diagnostic medicine remains resilient, accounting for about 20% of supplementary health expenses, with steady growth in exam volumes.

Integration and synergies

• The merger with Pardini increased potential patients by 24% and expanded the network to 557 patient service centers, covering 49% of the Brazilian private market.

• Lab-to-lab model now serves 8,000+ clients in 2,200 cities, offering 9,000 tests and 400 logistics routes, with benefits like lower costs and high service levels.

• Integration milestones include logistics adjustments, unified R&D, and new service launches, with most synergies expected within 36 months.

• Estimated annual synergies of R$200–220 million in additional EBITDA, with 90% from cost and expense reductions.

Financial performance

• Pro forma gross revenue reached R$8.3 billion in 2024, up 26.9% from the previous year; adjusted EBITDA margin at 25.8%.

• Net income margin improved to 9.0% in 2024, with operating cash flow at R$1.93 billion, representing 97.4% of adjusted EBITDA.

• Maintains a comfortable capital structure, with net debt/EBITDA at 1.2x and an average debt term of 4.2 years.