Q2 2026 Odontoprev SA Earnings Call

Operator: [Foreign language]

Speaker #1: Acabei de sair do médico, está tudo bem, e vou te falar: impressionante como essa Bradesco Saúde é boa, viu? Além de oferecer os melhores médicos de hospitais, ele está presente no país inteiro.

Speaker #1: Eles são humanos, próximos, estão do nosso lado desde a prevenção até o tratamento. É por isso que eu sempre digo: plano de saúde é Bradesco Saúde.

Speaker #1: Vamos lá. Plano de saúde tem vários. Bradesco Saúde, só tem Bradesco Saúde com você, sempre.

Speaker #2: Good morning, everyone. We are here at the Brad Saúde Studios on Paulista Avenue today, August 4, 2026, to show you the results of the second quarter of 2026.

Carlos Vinicius Pacheco: Good morning, everyone. We are here at the Bradsaúde Studios at Paulista Avenue today, 4 August 2026, to show you the results of Q2 2026. I'd like to start off with our highlights. During this period, we've achieved 13.6 million members, 99,000 net additions in health, and 130,000 net additions in dental. Our loss ratio last 12 months has remained stable at 83.3%. Our revenues have grown 10.8%, achieving BRL 13.9 billion. Net income of BRL 1.1 billion, increased 24.8% in the period. Our ROE increased 4 percentage points, 25.8% in the period. Atlântica Hospitais is the highlight. The net income grew 312% at BRL 64 million for the period. Over to Pacheco. He'll show you the figures for this quarter. Thank you, Marineli. Good morning, everyone. This is the first release of Bradsaúde. As you may remember, the company was created as of 1 May 2026.

Carlos Marinelli: Good morning, everyone. We are here at the Bradsaúde Studios at Paulista Avenue today, 4 August 2026, to show you the results of Q2 2026. I'd like to start off with our highlights. During this period, we've achieved 13.6 million members, 99,000 net additions in health, and 130,000 net additions in dental. Our loss ratio last 12 months has remained stable at 83.3%. Our revenues have grown 10.8%, achieving BRL 13.9 billion. Net income of BRL 1.1 billion, increased 24.8% in the period. Our ROE increased 4 percentage points, 25.8% in the period. Atlântica Hospitais is the highlight. The net income grew 312% at BRL 64 million for the period. Over to Pacheco. He'll show you the figures for this quarter.

Speaker #2: I'd like to start off with our highlights. During this period, we've achieved 13.6 million members; 99,000 net additions in health; and 130,000 net additions in dental.

Speaker #2: Our loss ratio last 12 months has remained stable at 83.3%. Our revenues have grown 10.8%, achieving 13.9 billion BRL. Net income of 1.1 billion BRL, increased 24.8% in the period.

Speaker #2: Our ROE increased 4 percentage points to 25.8% in the period. Atlantica Hospital is the highlight. Net income grew 312% to $64 million for the period.

Speaker #2: Over to Pacheco. He'll show you the figures for this quarter. Thank you, Marinelli. Good morning, everyone. This is the first release of Brad Saúde.

José Roberto Pacheco: Thank you, Marineli. Good morning, everyone. This is the first release of Bradsaúde. As you may remember, the company was created as of 1 May 2026. I'll begin showing you the consolidated of Bradsaúde, and after that, we will explore the results of the medical and hospital plans at Bradesco Saúde, and afterwards Odontoprev, and finally Atlântica Hospitais. Let's begin. As Marineli mentioned, the increase of new clients was very significant in the quarter and the H1 in the last 12 months. We have a consolidated portfolio of 13.6 million members, and significant increase of 229,000 members and an organic increase of 855,000 members as of mid last year. This is an unprecedented increase in the history of the company and the portfolios. I'd like to highlight the quality of the growth. One-third of the net adds was originated in the SME segment, small and mid-sized companies. This is a very important addressable market that provides significant returns in healthcare and dental.

Speaker #2: As you may remember, the company was created as of May 1, 2026, so I'll begin by showing you the consolidated figures of Brad Saúde. After that, we will explore the results of the medical and hospital plans at Bradesco Saúde, then ProntoPrev, and finally Atlantica Hospitals.

Carlos Vinicius Pacheco: I'll begin showing you the consolidated of Bradsaúde, and after that, we will explore the results of the medical and hospital plans at Bradesco Saúde, and afterwards Odontoprev, and finally Atlântica Hospitais. Let's begin. As Marineli mentioned, the increase of new clients was very significant in the quarter and the H1 in the last 12 months. We have a consolidated portfolio of 13.6 million members, and significant increase of 229,000 members and an organic increase of 855,000 members as of mid last year. This is an unprecedented increase in the history of the company and the portfolios. I'd like to highlight the quality of the growth. One-third of the net adds was originated in the SME segment, small and mid-sized companies. This is a very important addressable market that provides significant returns in healthcare and dental.

Speaker #2: So let's begin. As Marinelli mentioned, the increase of new clients was very significant in the quarter and the half-year in the last 12 months.

Speaker #2: We have a consolidated portfolio of 13.6 million members, and significant increase of 229,000 members and an organic increase of 855,000 members as of mid last year.

Speaker #2: This is an unprecedented increase in the history of the company and the portfolios. I'd like to highlight the quality of the growth: one-third of the net adds was originated in the SME segment—small and mid-sized companies.

Speaker #2: This is a very important addressable market that provides significant returns in healthcare and dental. The company has exclusive bank channels for distribution, and that has resulted in 104,000 new members in the last 12 months in health and 184,000 new members in the dental area for the same period.

Carlos Vinicius Pacheco: The company has exclusive bank channels for distribution, and that has resulted in 104,000 new members in the last 12 months in health and 184,000 new members in the dental area for the same period. Revenues were BRL 54 billion in the last 12 months. I'd like to remind you of the first release at the end of February, where we highlighted a level of BRL 52 billion. The increase was double digit, not only in the H1 assessment, but also the quarterly assessment, as you can see. The loss ratio remains stable, not only in the last 12 months, but also in the H1. Longer periods always favor an understanding of the dynamic of the loss ratio.

José Roberto Pacheco: The company has exclusive bank channels for distribution, and that has resulted in 104,000 new members in the last 12 months in health and 184,000 new members in the dental area for the same period. Revenues were BRL 54 billion in the last 12 months. I'd like to remind you of the first release at the end of February, where we highlighted a level of BRL 52 billion. The increase was double digit, not only in the H1 assessment, but also the quarterly assessment, as you can see. The loss ratio remains stable, not only in the last 12 months, but also in the H1. Longer periods always favor an understanding of the dynamic of the loss ratio.

Speaker #2: Revenues were 54 billion BRL in the last 12 months. I'd like to remind you of the first release at the end of February where we highlighted a level of 52 billion BRL.

Speaker #2: The increase was double-digit, not only in the half-year assessment but also the quarterly assessment, as you can see. The loss ratio remains stable not only in the last 12 months but also in the half-year.

Speaker #2: Longer periods always favor an understanding of the dynamic of the loss ratio. Now moving on to the bottom line of Brad Saúde: consolidated results of 4.2 billion BRL, last 12 months, with a significant increase of 28% in the first quarter and first half-year, excuse me, and 25% in quarter.

Speaker #2: Now we're leaving consolidated data, and we go on to specific data of each of the business units. I'd like to start off with Bradesco Saúde.

Carlos Vinicius Pacheco: We're leaving consolidated data, and we go on to specific data of each of the business units. I'd like to start off with Bradesco Saúde. At Bradesco Saúde, there is clearly a transition. So a cleansing, so to speak, of the portfolio from 2022 to 2024. We go from 4 million to 3.8 million members. Since mid-last year, a gradual recovery, which is recurring, specifically with the quality of having these new members and new contracts with discipline in underwriting and a balance in the new corporate contracts and contracts of the SMEs. Net adds in this chart is very interesting.

José Roberto Pacheco: We're leaving consolidated data, and we go on to specific data of each of the business units. I'd like to start off with Bradesco Saúde. At Bradesco Saúde, there is clearly a transition. So a cleansing, so to speak, of the portfolio from 2022 to 2024. We go from 4 million to 3.8 million members. Since mid-last year, a gradual recovery, which is recurring, specifically with the quality of having these new members and new contracts with discipline in underwriting and a balance in the new corporate contracts and contracts of the SMEs. Net adds in this chart is very interesting.

Speaker #2: At Bradesco Saúde, there is clearly a transition. So a cleansing, so to speak, of the portfolio from 2022 to 2024. We go from 4 million to 3.8 million members.

Speaker #2: Since mid last year, a gradual recovery. Which is recurring. Specifically, with the quality of having these new members and new contracts with discipline and underwriting in a balance in the new corporate contracts and contracts of the SMEs.

Speaker #2: Net ads in this chart is very interesting, as you can see a negative level in 2023 and 2024, with different kinds of of performance moving forward, with new members and new clients in the last 12 month period up to June.

Carlos Vinicius Pacheco: As you can see, a negative level in 2023 and 2024 with different kind of performance moving forward with new members and new clients in the last 12-month period up to June. In Bradesco Saúde premiums, we have an average annual growth since 2022 of over 12% per year. You can see the same rate in the H1 and two digits in the Q1 of this first year of the company achieving BRL 13 billion. Moving on to net income at Bradesco Saúde at BRL 3.5 billion last 12 months. You can see that this level is very different than what we saw in the past, in 2023 and 2024. For the H1, 33% more, and for the Q1, 37% greater year-over-year. We will move on to Odontoprev data.

José Roberto Pacheco: As you can see, a negative level in 2023 and 2024 with different kind of performance moving forward with new members and new clients in the last 12-month period up to June. In Bradesco Saúde premiums, we have an average annual growth since 2022 of over 12% per year. You can see the same rate in the H1 and two digits in the Q1 of this first year of the company achieving BRL 13 billion. Moving on to net income at Bradesco Saúde at BRL 3.5 billion last 12 months. You can see that this level is very different than what we saw in the past, in 2023 and 2024. For the H1, 33% more, and for the Q1, 37% greater year-over-year. We will move on to Odontoprev data.

Speaker #2: In Bradesco Saúde, premiums: we have an average annual growth since 2022 of over 12% per year. You can see the same rate in the first half-year and two digits in the first quarter of this first year of the company, achieving 13 billion BRL.

Speaker #2: Now moving on to net income. At Bradesco Saúde, at 3.5 billion BRL last 12 months. You can see that this level is very different than what we saw in the past in 2023 and 2024.

Speaker #2: For the half-year, results were 33% higher. For the quarter, growth was 37% year-over-year. Now we will move on to OdontoPrev data. As you well know, OdontoPrev has been the leader in dental plans in Brazil since 1998.

Carlos Vinicius Pacheco: As you well know, Odontoprev is the leader in dental plans in Brazil since 1998. The total number of members achieved 9.5 million members in June, with a significant growth in the corporate portfolio and SMEs. Company revenue, as the market leader, is approximately BRL 2.5 billion, a growth in the H1 and also in the quarterly assessment. When we analyze the loss ratio, you can see that the pattern of loss ratio, specifically in Odontoprev, compared to the healthcare market, is very unique. Less than half than what we see in medical and hospital plans. That enables the company, as it has a technological platform, to have superior returns compared to the industry. In net income, the net margin compared to revenue was over 20% per year. And given its scale and technological platform, that is the reason.

José Roberto Pacheco: As you well know, Odontoprev is the leader in dental plans in Brazil since 1998. The total number of members achieved 9.5 million members in June, with a significant growth in the corporate portfolio and SMEs. Company revenue, as the market leader, is approximately BRL 2.5 billion, a growth in the H1 and also in the quarterly assessment. When we analyze the loss ratio, you can see that the pattern of loss ratio, specifically in Odontoprev, compared to the healthcare market, is very unique. Less than half than what we see in medical and hospital plans. That enables the company, as it has a technological platform, to have superior returns compared to the industry. In net income, the net margin compared to revenue was over 20% per year. And given its scale and technological platform, that is the reason.

Speaker #2: The total number of members achieved 9.5 billion members in June, with a significant growth in the corporate portfolio and SMEs. Company revenue, as the market leader, is approximately 2.5 billion BRL.

Speaker #2: A growth in the half-year and also in the quarterly assessment. When we analyze the loss ratio, you can see that the pattern of loss ratios specifically in OdontoPrev compared to the healthcare market is very unique, less than half than what we see in medical and hospital plans.

Speaker #2: That enables the company, as it has a technological platform, to have superior returns compared to the industry. In net income, the net margin compared to revenue is over 20% per year, and given its scale and technological platform, that is the reason.

Speaker #2: We had positive non-recurring effects that increased the profitability to 505 million BRL, and which remains year after year, always over 500. Now moving on to Atlantica Hospitals.

Carlos Vinicius Pacheco: We had positive non-recurring effects that increased the profitability to BRL 505 million and which remains year after year, always over 500. Moving on to Atlântica Hospitais. You can see a constant and continuous evolution up to 2030 with the projects that are already effective. We had approximately 1,800 beds in 2024. In 2026, we're at 2,900, and we've inaugurated a new equipment in Barueri, in the state of São Paulo, and in São Conrado, in Rio de Janeiro, that should be ready by 2030. With that, an evolution of the total capacity of beds for the company will achieve over 4,000 beds. This is a very important slide which Marineli mentioned. So you can see that as of the Q2 of last year became positive and now are reaching different levels.

José Roberto Pacheco: We had positive non-recurring effects that increased the profitability to BRL 505 million and which remains year after year, always over 500. Moving on to Atlântica Hospitais. You can see a constant and continuous evolution up to 2030 with the projects that are already effective. We had approximately 1,800 beds in 2024. In 2026, we're at 2,900, and we've inaugurated a new equipment in Barueri, in the state of São Paulo, and in São Conrado, in Rio de Janeiro, that should be ready by 2030. With that, an evolution of the total capacity of beds for the company will achieve over 4,000 beds. This is a very important slide which Marineli mentioned. So you can see that as of the Q2 of last year became positive and now are reaching different levels.

Speaker #2: You can see a constant and continuous evolution up to 2030 with the projects that are already effective. We had approximately 1.8 thousand beds in 2024, at 2026 we're at 2.9 thousand, and now we've inaugurated a new equipment in Baru, in the state of São Paulo, and in São Corrado, in Rio de Janeiro, that should be ready by 2030, with that an evolution of the total capacity of beds for the company will achieve over 4,000 beds.

Speaker #2: This is a very important slide, which Marinendi mentioned, so you can see that as of the second quarter of last year became positive and now are reaching different levels.

Speaker #2: So looking at the second quarter of 2026, the net income of Atlantica is fourfold higher. With that, it accounts for a higher percentage of the consolidated data of Brad Saúde.

Carlos Vinicius Pacheco: Looking at Q2 2026, the net income of Atlântica is fourfold higher. With that, it accounts for a higher percentage of the consolidated data of Bradsaúde, and that's what we're demonstrating here. It was 2%, and now BRL 64 million accounts for 6% of the consolidated figures of Bradsaúde. Those are the main comments for this first release of Bradsaúde. We've presented original and new data to all of you, breaking down the medical and hospital data and separating that from dental data as provided in public data to facilitate your analysis, making data available that will be able for you to follow the business in upcoming years.

José Roberto Pacheco: Looking at Q2 2026, the net income of Atlântica is fourfold higher. With that, it accounts for a higher percentage of the consolidated data of Bradsaúde, and that's what we're demonstrating here. It was 2%, and now BRL 64 million accounts for 6% of the consolidated figures of Bradsaúde. Those are the main comments for this first release of Bradsaúde. We've presented original and new data to all of you, breaking down the medical and hospital data and separating that from dental data as provided in public data to facilitate your analysis, making data available that will be able for you to follow the business in upcoming years.

Speaker #2: And that's what we're demonstrating here. It was 2%, and now BRL 64 million accounts for 6% of the consolidated figures of Brad Saúde. So those are the main comments for this first release of Brad Saúde.

Speaker #2: We presented original and new data to all of you, breaking down the medical and hospital data, and separating that from dental data as provided in public data, to facilitate your analysis, making data available that will be able for you to follow the business in upcoming years.

Speaker #2: So I'd like to reiterate: a consolidated portfolio of almost 4 million members, double-digit growth in revenues, net income that has benefited from a number of efficiency and stability measures in the cost structure, and finally, significant returns, even supported by the strong and improved performance of Atlantica Hospitals.

Carlos Vinicius Pacheco: I'd like to reiterate, a consolidated portfolio of almost 14 million members, two-digit growth in revenues, net income that has benefited from a number of efficiencies and stability in the cost structure, and finally, leading to significant returns and even sponsored by the bigger and better performance of Atlântica Hospitais. Thank you for your attention. Let's move on to the Q&A session. Thank you very much. Good morning, everyone, once again. Now we will open the Q&A session. From now on, we're also counting on the presence of Vinicius Cruz, CFO of Bradesco Seguros and CFO of Bradsaúde. Our first question is from Leandro Bastos from Citibank. Leandro, go ahead. Good morning, everyone. Thank you for taking my question. I have two on our side. The first one, to explore the loss ratio.

José Roberto Pacheco: I'd like to reiterate, a consolidated portfolio of almost 14 million members, two-digit growth in revenues, net income that has benefited from a number of efficiencies and stability in the cost structure, and finally, leading to significant returns and even sponsored by the bigger and better performance of Atlântica Hospitais. Thank you for your attention. Let's move on to the Q&A session. Thank you very much.

Speaker #2: Thank you for your attention. Let's move on to the Q&A session. Thank you very much.

Speaker #1: Good morning, everyone. Once again, now we will open the Q&A session. From now on, we're also counting on the presence of Vinícius Cruz, CFO of Bradesco Seguros and CFO of Brad Saúde.

Operator: Good morning, everyone, once again. Now we will open the Q&A session. From now on, we're also counting on the presence of Vinicius Cruz, CFO of Bradesco Seguros and CFO of Bradsaúde. Our first question is from Leandro Bastos from Citibank. Leandro, go ahead.

Speaker #1: Our first question is from Leandro Bastos from Citibank. Leandro, go ahead. Good morning, everyone. Thank you for taking my question. I have two on our side.

Leandro Bastos: Good morning, everyone. Thank you for taking my question. I have two on our side. The first one, to explore the loss ratio. In the past quarter, you brought in a message of being conservative, and you can see that in the quarter, the loss ratio was actually a bit stable year-over-year. How could you comment in the utilization and considering the base of Q4 that's usually more accessible, do you remain the vision of being conservative, or do you see any improvements in the loss ratio for the rest of the year if you consider H2? That's the first point. Second point, talking about the commercial side. The net adds robustness is very clear, and as a result of that, we've seen increments in the sales expenses. A two in one. The CAC idea and commissioning, could you explain your direction of the sales expenses moving forward? Thank you.

Speaker #1: The first one, to explore the loss ratio in the past quarter, you brought in a message of being conservative, and you can see that in the quarter the loss ratio was actually a bit stable year over year.

Leandro Bastos: In the past quarter, you brought in a message of being conservative, and you can see that in the quarter, the loss ratio was actually a bit stable year-over-year. How could you comment in the utilization and considering the base of Q4 that's usually more accessible, do you remain the vision of being conservative, or do you see any improvements in the loss ratio for the rest of the year if you consider H2? That's the first point. Second point, talking about the commercial side. The net adds robustness is very clear, and as a result of that, we've seen increments in the sales expenses. A two in one. The CAC idea and commissioning, could you explain your direction of the sales expenses moving forward? Thank you. Thank you, Leandro, for participating. Thank you for your question.

Speaker #1: So, how would you comment on utilization, considering the base of the fourth quarter, which is usually more accessible? Do you maintain the vision of being conservative, or do you see any improvements in the loss ratio for the rest of the year, especially when considering the second half?

Speaker #1: That's the first point. Second point, talking about the commercial side. The net ads robustness is very clear, and as a result of that, we've seen increment in the sales expenses.

Speaker #1: So it's two in one. So, the CAC idea and commissioning—so, could you explain your direction for sales expenses moving forward? Thank you.

Speaker #1: Thank you, Leandro, for participating. Thank you for your question. Without a doubt, we do have a movement that was very important in the first quarter.

Carlos Marinelli: Thank you, Leandro, for participating. Thank you for your question. Without a doubt, we do have a movement that was very important in Q1. Obviously, in many of our conversations, we're surprised about the loss ratio, and we mentioned caution. Mentioning caution doesn't mean that we're being conservative. It's that we're in the industry for a long time. We understand the dynamic of this industry, and we have the granular information. We understand that we have to understand that not as just one quarter, but we have to consider that in the mid and long term. That's why we mentioned caution, and we gave that adequate message in Q1, as you see. Now, it's very important, and we've been highlighting the fact that we have to look at the loss ratio in the year, the stability, as we mentioned.

Carlos Vinicius Pacheco: Without a doubt, we do have a movement that was very important in Q1. Obviously, in many of our conversations, we're surprised about the loss ratio, and we mentioned caution. Mentioning caution doesn't mean that we're being conservative. It's that we're in the industry for a long time. We understand the dynamic of this industry, and we have the granular information. We understand that we have to understand that not as just one quarter, but we have to consider that in the mid and long term. That's why we mentioned caution, and we gave that adequate message in Q1, as you see. Now, it's very important, and we've been highlighting the fact that we have to look at the loss ratio in the year, the stability, as we mentioned.

Speaker #1: And obviously, in many of our conversations, we're surprised about the loss ratio and we mentioned caution. So mentioning caution doesn't mean that we're being conservative.

Speaker #1: It's that we've been in the industry for a long time. We understand the dynamics of this industry, and we have granular information. So we understand that we have to see this not just as one quarter, but consider it in the mid and long term.

Speaker #1: That's why we mentioned caution, and we gave that adequate message in the first quarter, as you see. Now, so it's very important and we've been highlighting the fact that we have to look at the loss ratio in the year.

Speaker #1: The stability as we mentioned. And Pacheco really showed that in his presentation, as the company went to another level of loss ratio, it reorganized, itself, in the post-pandemic period to build the claims, be it through use frequency and the actions that we've taken, as well as the reorganization in the strategy to consider growth again.

Carlos Vinicius Pacheco: Pacheco really showed that in his presentation as the company went to another level of loss ratio. It reorganized itself in the post-pandemic period to build the claims, be it through use, frequency, and the actions that we've taken, as well as the reorganization in the strategy to consider growth again. Pacheco showed us a drop in the number of members, and that's something that has to be controlled. You maintain the good contracts, you maintain contracts that you can bring on better profitability. As time goes by, you bring in contracts with very good underwriting discipline, be it through the point of view of new contracts or the renewal of these contracts at the right price. That movement that's being done now and the loss ratio, in our opinion, is stable or relatively stable.

Carlos Marinelli: Pacheco really showed that in his presentation as the company went to another level of loss ratio. It reorganized itself in the post-pandemic period to build the claims, be it through use, frequency, and the actions that we've taken, as well as the reorganization in the strategy to consider growth again. Pacheco showed us a drop in the number of members, and that's something that has to be controlled. You maintain the good contracts, you maintain contracts that you can bring on better profitability. As time goes by, you bring in contracts with very good underwriting discipline, be it through the point of view of new contracts or the renewal of these contracts at the right price. That movement that's being done now and the loss ratio, in our opinion, is stable or relatively stable.

Speaker #1: So Pacheco showed us a drop in the number of members and that's something that has to be controlled. So you maintained a good contract, you maintain contracts that you can bring on better profitability and as time goes by, you bring in contracts with very good underwriting discipline, be it through the point of view of new contracts or the renewal of these contracts, at the right price.

Speaker #1: So, that movement that's being done now and the loss ratio, in our opinion, is stable or relatively stable. At this time, we're looking at 2026, and we see the comfort in explaining to you that we do have relative stability.

Carlos Vinicius Pacheco: At this time, we're looking at 2026, and we see the comfort in explaining to you that we do have relative stability. The quality that we are building is very important, has to be highlighted, be it where it's being built. In the segment of SMEs, it's very important for us and has been very strong in building these new contracts. Maintaining the underwriting discipline and also including new products that has a differentiated claims mix. Obviously, when you go into certain markets, you want to add more members, not only in health but also in dental. We go in being more competitive and turning that lower loss ratio at some point with better price competitiveness at some point. About what you mentioned in sales expenses, that's what it's reflecting. It's the dynamic of our industry.

Carlos Marinelli: At this time, we're looking at 2026, and we see the comfort in explaining to you that we do have relative stability. The quality that we are building is very important, has to be highlighted, be it where it's being built. In the segment of SMEs, it's very important for us and has been very strong in building these new contracts. Maintaining the underwriting discipline and also including new products that has a differentiated claims mix. Obviously, when you go into certain markets, you want to add more members, not only in health but also in dental. We go in being more competitive and turning that lower loss ratio at some point with better price competitiveness at some point. About what you mentioned in sales expenses, that's what it's reflecting. It's the dynamic of our industry.

Speaker #1: But the quality that we are building is very important. It has to be highlighted, be it where it's being built. So, in the segment of SMEs, it's very important for us and has been very strong in building these new contracts.

Speaker #1: But maintaining the underwriting discipline and also including new products that has a differentiated claims mix, but obviously, when you go into certain markets, you want to add more members, not only in health, but also in dental.

Speaker #1: So we go in being more competitive and turning that lower loss ratio at some point with better price competitiveness at some point. And about what you mentioned in sales expenses, that's what it's reflecting.

Speaker #1: It's the dynamic of our industry. So as you have stronger growth in the number of members, in a total market where the total number of members does not grow, it's a moment that you have where you will have sales expenses that are higher at first.

Carlos Vinicius Pacheco: As you have stronger growth in the number of members in a total market where the total number of members does not grow, it's a moment that you have where you will have sales expenses that are higher at first. That has to do with our strategy. As we mentioned in Q1, there was certain caution regarding that number, even though the number is stable for the quarter and has a slight improvement when we consider the whole year. The growth that we've seen, that we had not seen in previous periods, is new growth, so to speak, in terms of intensity, will naturally reflect on the sales expenses that we have.

Carlos Marinelli: As you have stronger growth in the number of members in a total market where the total number of members does not grow, it's a moment that you have where you will have sales expenses that are higher at first. That has to do with our strategy. As we mentioned in Q1, there was certain caution regarding that number, even though the number is stable for the quarter and has a slight improvement when we consider the whole year. The growth that we've seen, that we had not seen in previous periods, is new growth, so to speak, in terms of intensity, will naturally reflect on the sales expenses that we have.

Speaker #1: So that has to do with our strategy. And as we mentioned in the first quarter, there was certain caution regarding that number, even though the number is stable for the quarter and has a slight improvement when we consider the whole year.

Speaker #1: But the growth that we've seen that we had not seen in previous periods is new growth, so to speak, in terms of intensity will naturally reflect on the sales expenses that we have.

Speaker #1: That's part of the strategy, that is being executed with discipline and expected according to what we have in terms of growth, diversity of the organization, as well as what we had mentioned before, that Atlantica Hospitals would have a higher share in the makeup of all our results.

Carlos Vinicius Pacheco: That's part of the strategy that is being executed with discipline and expected according to what we have in terms of growth diversity of the organization, as well as what we had mentioned before, that Atlântica Hospitais would have a higher share in the makeup of all our results. When I talk about competitiveness, I'd like to say that two-thirds of our results are coming from the industrial results. The financial result is part of a company with this type of characteristic, and it's well desired in this type of company where we take advantage of moments where we can have a unique return in finance. That gives us robustness and quality in our results and the reliability to move on into the mid and long term. Thank you, Marineli. Thank you, Leandro. Next question is from Maurilio Cepeda from Morgan Stanley. Cepeda, go ahead, please. Marineli Pacheco.

Carlos Marinelli: That's part of the strategy that is being executed with discipline and expected according to what we have in terms of growth diversity of the organization, as well as what we had mentioned before, that Atlântica Hospitais would have a higher share in the makeup of all our results. When I talk about competitiveness, I'd like to say that two-thirds of our results are coming from the industrial results. The financial result is part of a company with this type of characteristic, and it's well desired in this type of company where we take advantage of moments where we can have a unique return in finance. That gives us robustness and quality in our results and the reliability to move on into the mid and long term.

Speaker #1: And when I talk about competitiveness, I'd like to say that two-thirds of our results are coming from the industrial. So the financial result is part of a company with this type of characteristic, and it's well-desired in this type of company, where we take advantage of moments where we can have a unique return in finance.

Speaker #1: That gives us robustness and quality in our results, and the reliability to move on into the mid and long term. Thank you, Marinelli. Thank you, Leandro.

Leandro Bastos: Thank you, Marineli.

Carlos Marinelli: Thank you, Leandro.

Speaker #1: Next question is from Marius Zepeda from Morgan Stanley. Zepeda, go ahead, please. Marinelli, Pacheco. Good morning. Thank you for taking my question. I have two questions with pretty much the same theme, about the cushions moving forward for the business.

Operator: Next question is from Maurilio Cepeda from Morgan Stanley. Cepeda, go ahead, please. Marineli Pacheco.

Mauricio Cepeda: Good morning. Thank you for taking my question. I have two questions with pretty much the same theme about the cushions moving forward for the business. First, the court orders in the industry. Could you give us an update on that, especially in SMEs? Also, how it's a bit higher than last year. Were you considering a transition for hospitals to absorb the impacts of the court orders? The second one question also has to do with the cushions of transition and a bit with the previous question. In a case where we can go into lower interest rates, what do you think in sales side so that the premium can absorb the lower financial results and offsetting that in operations? I believe that that's a topic because of the carryover of the portfolios and commercial decisions currently. Thank you, Cepeda, for your question.

Mauricio Cepeda: Good morning. Thank you for taking my question. I have two questions with pretty much the same theme about the cushions moving forward for the business. First, the court orders in the industry. Could you give us an update on that, especially in SMEs? Also, how it's a bit higher than last year. Were you considering a transition for hospitals to absorb the impacts of the court orders? The second one question also has to do with the cushions of transition and a bit with the previous question. In a case where we can go into lower interest rates, what do you think in sales side so that the premium can absorb the lower financial results and offsetting that in operations? I believe that that's a topic because of the carryover of the portfolios and commercial decisions currently.

Speaker #1: So, first, the court orders in the industry. Could you give us an update on that, especially in SMEs? And also, how it's a bit higher than last year.

Speaker #1: Would you consider a transition for hospitals to absorb the impacts of the court orders? And the second question also has to do with the cushions of transition and a bit with the previous question.

Speaker #1: In a scenario where we see lower interest rates, would you consider, from a sales perspective, that the premium could absorb the lower financial results, and offset that in operations?

Speaker #1: And I believe that that's a topic because of the carryover of the portfolios and commercial decisions currently. Thank you, Zepeda, for your question. First point.

Carlos Marinelli: Thank you, Cepeda, for your question. First point, we obviously would say that court orders aren't desirable in the industry. We would like to have better predictability. It is a reality in our industry, not just in healthcare, but in many industries in Brazil, an intense use of the judicial branch to request and meet some demands that are not part of the contract. There is the clarity of complying with our contracts. When we consider that under the point of view of loss ratio, at this time, everything that goes, comes through into court orders. If they come in, we are going to comply with that, and that's in the loss ratio automatically, and that's in what we have already presented. We don't see any major elements or actions that could change in structural terms because of the court orders.

Carlos Vinicius Pacheco: First point, we obviously would say that court orders aren't desirable in the industry. We would like to have better predictability. It is a reality in our industry, not just in healthcare, but in many industries in Brazil, an intense use of the judicial branch to request and meet some demands that are not part of the contract. There is the clarity of complying with our contracts. When we consider that under the point of view of loss ratio, at this time, everything that goes, comes through into court orders. If they come in, we are going to comply with that, and that's in the loss ratio automatically, and that's in what we have already presented. We don't see any major elements or actions that could change in structural terms because of the court orders.

Speaker #1: We obviously would say that court orders aren't desirable in the industry. We would like to have better predictability, but it is a reality in our industry, not just in healthcare, but in many industries in Brazil and intense use of the judicial branch.

Speaker #1: To request and meet some demands that are not part of the contract. So there is the clarity of complying with our contracts. But when we consider that under the point of view of loss ratio, at this time, everything that goes comes through into court orders.

Speaker #1: If they come in, we are going to comply with that, and that's in the loss ratio automatically. And that's in what we have already presented.

Speaker #1: We don't see any major elements or actions that could change in structural terms because of the court orders. So in our loss ratios, we have our thesis for defense and that build that based on the knowledge that was acquired, not only by us, but also by the other HMOs.

Carlos Vinicius Pacheco: In our loss ratios, we have our theses for defense and that build that based on the knowledge that was acquired not only by us, but also by the other HMOs. We're very connected to the industry. Structurally, this is part of the court orders, and we don't see anything that would currently change that structurally. About lower interest rates, without a doubt, that's something that we should move towards. It's not something that we are really that concerned because at the end of the day, we have a large and diversified portfolio of reserves, and we also believe that's part of the result. Without the industrial result, they wouldn't be able to operate the company. You can see our combined index of the previous years and the more recent ones.

Carlos Marinelli: In our loss ratios, we have our theses for defense and that build that based on the knowledge that was acquired not only by us, but also by the other HMOs. We're very connected to the industry. Structurally, this is part of the court orders, and we don't see anything that would currently change that structurally. About lower interest rates, without a doubt, that's something that we should move towards. It's not something that we are really that concerned because at the end of the day, we have a large and diversified portfolio of reserves, and we also believe that's part of the result. Without the industrial result, they wouldn't be able to operate the company. You can see our combined index of the previous years and the more recent ones.

Speaker #1: We're very connected to the industry, and structurally, this is part of the court orders. We don't see anything that would currently change that structurally.

Speaker #1: About lower interest rates. Without a doubt, that's something that we should move towards. It's not something that we are really that concerned because at the end of the day, we have a large and diversified portfolio of reserves, and we also believe that's part of the result.

Speaker #1: But without the industrial result, there wouldn't be able to operate the company. You can see our combined index of the previous years and the more recent ones.

Speaker #1: So clearly, we do have the possibility of generating results. Based on the industrial component that we have, as Bradsaude has many different sources, currently, and obviously, expressed in profitability, there's still a significant part coming in from Bradesco Saude and Odonto Press.

Carlos Vinicius Pacheco: Clearly, we do have the possibility of generating results based on the industrial component that we have, as Bradsaúde has many different sources currently, and obviously expressed in profitability. There's still a significant part coming in from Bradesco Saúde and Odontoprev. That's why our growth movement is so important. We've made that in a structured manner, strategic manner, with a lot of underwriting discipline. At first, that means being more competitive and promotions in terms of price, bring in portfolios, and believe in the characteristic that we have in SME and in corporate, that we have or have a high maintenance of our portfolios, bring in those members, replenish the portfolios, and gain more robustness, especially by negotiating with our providers, considering the number of members that we have. Through a brand that's desired and respected, we build something where our clients want to stay.

Carlos Marinelli: Clearly, we do have the possibility of generating results based on the industrial component that we have, as Bradsaúde has many different sources currently, and obviously expressed in profitability. There's still a significant part coming in from Bradesco Saúde and Odontoprev. That's why our growth movement is so important. We've made that in a structured manner, strategic manner, with a lot of underwriting discipline. At first, that means being more competitive and promotions in terms of price, bring in portfolios, and believe in the characteristic that we have in SME and in corporate, that we have or have a high maintenance of our portfolios, bring in those members, replenish the portfolios, and gain more robustness, especially by negotiating with our providers, considering the number of members that we have. Through a brand that's desired and respected, we build something where our clients want to stay.

Speaker #1: That's why our growth movement is so important. We've made that in a structured manner, strategic manner, with a lot of underwriting discipline, and at first, that means being more competitive.

Speaker #1: And promotions, in terms of price, bring in portfolios. We believe in the characteristics that we have in SME and in Corporate—that we have a high maintenance of our portfolios, bringing in those members to replenish the portfolios and gain more robustness. Especially by negotiating with our providers, considering the number of members that we have, and through a brand that's desired and respected.

Speaker #1: We built something where our clients want to stay, so that would be future profit. So, the tripod of growth, profit, and loss ratio is something you always want to maximize.

Carlos Vinicius Pacheco: That would be future profit. The tripod growth, profit, and loss ratio is something you always want to maximize. The main point is the quality of how these elements are working together. We're working with stability, relative stability in loss ratio, stability of profit, and growing our members. That's the equation. That's part of our strategy in the mid and long-term. Thank you, Marineli. Thank you, Cepeda. Next question is from Samuel Alves from BTG Pactual. Samuel, please go ahead. Thank you, Marineli. Good morning, Vinicius. Good morning, Pacheco and other officers. I'd like to go back to the loss ratio. You mentioned maintaining that, I'd like to hear about the seasonality of the ordinary loss ratio for the Q3.

Carlos Marinelli: That would be future profit. The tripod growth, profit, and loss ratio is something you always want to maximize. The main point is the quality of how these elements are working together. We're working with stability, relative stability in loss ratio, stability of profit, and growing our members. That's the equation. That's part of our strategy in the mid and long-term.

Speaker #1: But the main point is the quality of how these elements are working together. So we're working with stability relative stability in loss ratio. Stability of profit and growing our members.

Speaker #1: So that's the equation. That's part of our strategy in the mid and long term. Thank you, Marinelli. Thank you, Zepeda. Next question is from Samuel Alves from BTG Pactual.

Mauricio Cepeda: Thank you, Marineli.

Carlos Marinelli: Thank you, Cepeda.

Operator: Next question is from Samuel Alves from BTG Pactual. Samuel, please go ahead.

Speaker #1: Samuel, please go ahead. Thank you, Marinelli. Good morning, Vinicius. Good morning, Pacheco, and other officers. I'd like to go back to the loss ratio.

Samuel Alves: Thank you, Marineli. Good morning, Vinicius. Good morning, Pacheco and other officers. I'd like to go back to the loss ratio. You mentioned maintaining that, I'd like to hear about the seasonality of the ordinary loss ratio for the Q3. Should we expect a worsening of the loss ratio in the Q3 and then an improvement, a significant improvement in the Q4, considering that flat dynamic that you mentioned about loss ratio? That's the first question. Second question is, could you mention the recurring levels of payout? There was a distribution in the Q2. Could we consider that quarterly? What do you expect in a reduction of taxes in the recurring level?

Speaker #1: You mentioned maintaining that. So I'd like to hear about this seasonality of the ordinary loss ratio for the third quarter. Should we expect a worsening of the loss ratio in the third quarter and then an improvement, a significant improvement in the fourth quarter considering that flat dynamic that you mentioned about loss ratio?

Samuel Alves: Should we expect a worsening of the loss ratio in the Q3 and then an improvement, a significant improvement in the Q4, considering that flat dynamic that you mentioned about loss ratio? That's the first question. Second question is, could you mention the recurring levels of payout? There was a distribution in the Q2. Could we consider that quarterly? What do you expect in a reduction of taxes in the recurring level? Thank you, Samuel. I'll talk about loss ratio, and then Vinicius and Pacheco can talk about the payout of interest on equity. When we look at 2025 is a year where we had a loss ratio that's not comparable to any other years. It was much better than the previous years. You'll see that there's a trend during the year.

Speaker #1: That's the first question. And second question is, could you mention the recurring levels of payout? So there was a distribution in the second quarter so could we consider that quarterly and what do you expect in a reduction of taxes in the recurring level?

Speaker #1: Thank you, Samuel. I'll talk about loss ratio, and then Vinicius and Pacheco can talk about the payout of interest on equity. So, when we look at 2025, 2025 is a year where we had a loss ratio that's not comparable to any other years.

Carlos Marinelli: Thank you, Samuel. I'll talk about loss ratio, and then Vinicius and Pacheco can talk about the payout of interest on equity. When we look at 2025 is a year where we had a loss ratio that's not comparable to any other years. It was much better than the previous years. You'll see that there's a trend during the year. If you look at a longer historical series, you'll see that loss ratio in the Q3 is usually higher than other quarters. Since we don't give guidance regarding the loss ratio, we are talking about a relative stability in the year, just compare last year with this year and you can see that eventually there is a trend because of the Q3 and Q4 loss ratio. Like I said, relative stability, a year that had the lowest loss ratio in history, and that already says a lot about how we see loss ratio for the rest of the year.

Speaker #1: It was much better than the previous years. So, you'll see that there's a trend during the year. If you look at a longer historical series, you'll see that the loss ratio in the third quarter is usually higher than in other quarters.

Carlos Vinicius Pacheco: If you look at a longer historical series, you'll see that loss ratio in the Q3 is usually higher than other quarters. Since we don't give guidance regarding the loss ratio, we are talking about a relative stability in the year, just compare last year with this year and you can see that eventually there is a trend because of the Q3 and Q4 loss ratio. Like I said, relative stability, a year that had the lowest loss ratio in history, and that already says a lot about how we see loss ratio for the rest of the year. Exactly, Marineli. About the payout, it's worth noting that we closed the operation on 30 April, and in H1 closing, we had the first announcement of the distribution of interest on equity to shareholders.

Speaker #1: So since we don't give guidance regarding the loss ratio, but we are talking about a relative stability in the year, just compare last year with this year and you can see that eventually, there is a trend because of the third and fourth quarter loss ratio.

Speaker #1: But like I said, relative stability. A year that had the lowest stability loss ratio in history. And that already says a lot about how we see the loss ratio for the rest of the year.

Speaker #1: Exactly, Marinelli. About the payout, it's worth noting that we closed the operation on April 30th and in first half closing, we had the first announcement of the distribution of interest on equity to shareholders.

Vinicius Cruz: Exactly, Marineli. About the payout, it's worth noting that we closed the operation on 30 April, and in H1 closing, we had the first announcement of the distribution of interest on equity to shareholders. Obviously, it starts at a lower base than the full base that we will capture during the year, and we will recurrently revisit the payout. First of all, we will follow our policy of 50% of the result, which has not changed and is the same as before the transaction with Odontoprev. Looking at our funds to see that we can recurrently use this mechanism has already had a significant improvement considering the rate in the period, and we will continue to do that as time goes by, compared to projects.

Speaker #1: Obviously, it starts at a lower base than the full base that we captured during the year, and we will recurrently revisit the payout.

Carlos Vinicius Pacheco: Obviously, it starts at a lower base than the full base that we will capture during the year, and we will recurrently revisit the payout. First of all, we will follow our policy of 50% of the result, which has not changed and is the same as before the transaction with Odontoprev. Looking at our funds to see that we can recurrently use this mechanism has already had a significant improvement considering the rate in the period, and we will continue to do that as time goes by, compared to projects. The first signal in such a short period of time of that implementation of the company is to signal the discipline that we will have for the results and distribution to our shareholders. Thank you, Marineli. Thank you, Vinicius. Good morning. Thank you, Samuel. Next question is from Gustavo Mielli from Goldman Sachs. Gustavo, go ahead, please.

Speaker #1: First of all, we will follow our policy of 50% of the result, which has not changed and is the same as before the transaction with OdontoPress.

Speaker #1: And looking at our funds to see that we can recurrently use this mechanism has already had a significant improvement, considering the rate in the period.

Speaker #1: And we will continue to do that as time goes by compared to projects. So the first signal in such a short period of time of that implementation of the company is to signal the discipline that we will have for the results and distribution to our shareholders.

Vinicius Cruz: The first signal in such a short period of time of that implementation of the company is to signal the discipline that we will have for the results and distribution to our shareholders.

Speaker #1: Thank you, Marinelli. Thank you, Vinicius. Good morning. Thank you, Samuel. Next question is from Gustavo Miele from Goldman Sachs. Gustavo, go ahead, please. Good morning, Pacheco, Marinelli, and Vinicius.

Samuel Alves: Thank you, Marineli. Thank you, Vinicius.

Carlos Marinelli: Good morning. Thank you, Samuel.

Operator: Next question is from Gustavo Mielli from Goldman Sachs. Gustavo, go ahead, please.

Gustavo Mielli: Good morning, Pacheco, Marineli, and Vinicius. Thank you for your presentation. I'd like to explore two points as well. Your ticket. When we look at the health ticket, removing the managed product, we have a modest growth year over year of 2%. I believe that they may be hiding different dynamics of mixes and portfolio price adjustments. I'd like to understand a little better how that 2% growth breaks down between portfolio price increases that you have in existing contracts, and what is an impact of more efficient products, but cheaper products. If you could give us an order of magnitude there, that would help a lot to model the future dynamic of your tickets for the insurer. That's the first point. Second point is, I'd like to hear a little bit about the competitive scenario, especially in São Paulo.

Gustavo Miele: Good morning, Pacheco, Marineli, and Vinicius. Thank you for your presentation. I'd like to explore two points as well. Your ticket. When we look at the health ticket, removing the managed product, we have a modest growth year over year of 2%. I believe that they may be hiding different dynamics of mixes and portfolio price adjustments. I'd like to understand a little better how that 2% growth breaks down between portfolio price increases that you have in existing contracts, and what is an impact of more efficient products, but cheaper products. If you could give us an order of magnitude there, that would help a lot to model the future dynamic of your tickets for the insurer. That's the first point. Second point is, I'd like to hear a little bit about the competitive scenario, especially in São Paulo.

Speaker #1: Thank you for your presentation. I'd like to explore two points as well. First of all, your ticket. When we look at the health ticket, removing the managed product, do we have a modest growth year over year of 2%?

Speaker #1: So I believe that they may be hiding different dynamics of mixes and portfolio price adjustments. So I'd like to understand a little better how that 2% growth breaks down between portfolio price increases that you have in existing contracts and what is an impact of more efficient products.

Speaker #1: But cheaper products. So if you can give us an order of magnitude there, that would help a lot to model the future dynamic of your tickets for the insurer.

Speaker #1: That's the first point. The second point is I'd like to hear a little bit about the competitive scenario, especially in São Paulo. We see that there's a growing trend here, as you highlighted in the beginning.

Carlos Vinicius Pacheco: We see that there's a growing trend here, as you highlighted in the beginning, very strong. Is that just a result of a stronger micro agenda in the growth, or do you see a competitive scenario in São Paulo that's a bit more reasoning, less aggressive maybe, and that may have helped? Those are the two points. Thank you very much, everyone. Thank you for your question, Gustavo. The two questions that you asked are very much connected because at the end of the day, competitiveness, it's price, right? Be it price replenishment or new prices, new products. That directly impacts the first item that you mentioned, which is the healthcare ticket of the managed contract.

Gustavo Miele: We see that there's a growing trend here, as you highlighted in the beginning, very strong. Is that just a result of a stronger micro agenda in the growth, or do you see a competitive scenario in São Paulo that's a bit more reasoning, less aggressive maybe, and that may have helped? Those are the two points. Thank you very much, everyone.

Speaker #1: It's very strong. Is that just a result of a stronger micro agenda in the gross, or do you see a competitive scenario in São Paulo that's a bit more, with a bit more reasoning—less aggressive, maybe—and that may have helped?

Speaker #1: Those are the two points. Thank you very much, everyone. Thank you for your question, Gustavo. The two questions that you asked are very much connected because at the end of the day, competitiveness, it's price, right?

[Company Representative] (Bradesco Saúde): Thank you for your question, Gustavo. The two questions that you asked are very much connected because at the end of the day, competitiveness, it's price, right? Be it price replenishment or new prices, new products. That directly impacts the first item that you mentioned, which is the healthcare ticket of the managed contract. The growth that we've seen year over year in the managed contracts has to do with promotions and the launch of new products in many different markets, and is also connected to the growth that we've seen. It's important that when you come from a moment where we've reorganized the portfolio to better profitability and lower loss ratios, we would reorganize the investment coming from lower loss ratio into lower competitiveness. Otherwise, we wouldn't grow. It's a tripod. Profit, loss ratio, and portfolio growth.

Speaker #1: Be it price replenishment or new prices, new products. So that directly impacts the first item that you mentioned, which is the healthcare ticket of the managed contracts.

Speaker #1: So the growth that we've seen year over year in the managed contracts has to do with promotions and the launch of new products in many different markets.

Carlos Vinicius Pacheco: The growth that we've seen year over year in the managed contracts has to do with promotions and the launch of new products in many different markets, and is also connected to the growth that we've seen. It's important that when you come from a moment where we've reorganized the portfolio to better profitability and lower loss ratios, we would reorganize the investment coming from lower loss ratio into lower competitiveness. Otherwise, we wouldn't grow. It's a tripod. Profit, loss ratio, and portfolio growth.

Speaker #1: And it's also connected to the growth that we've seen. So it's important that, when you come from a moment where we've reorganized the portfolio to better profitability and lower loss ratios, we would reorganize the investment coming from lower loss ratios.

Speaker #1: To lower competitiveness. Otherwise, we wouldn't grow. So it's a tripod: profit, loss ratio, and portfolio growth. We've delivered growth that has been very significant in terms of members in health and across time.

Carlos Vinicius Pacheco: We've delivered growth that has been very significant in terms of members in health and across time with a unique product that is desired and that we know that we have the ability of having churn rates that's under the market average, be it in corporate or in SMEs, and that we have structural work in-house to reduce, that we would have better profitability moving forward. Replenishing competitiveness, bringing in the growth, and improving the results in the future, that's what we're looking for at this time. About the competitiveness, and that's very much related, we've have significant competitiveness, especially in SMEs. We've talked a lot about products, promotions, new markets, regional products, even that we've been launching. When we talk about corporate, and this is a bit different than what we've seen before, we've seen a lack of rationality in some decisions.

[Company Representative] (Bradesco Saúde): We've delivered growth that has been very significant in terms of members in health and across time with a unique product that is desired and that we know that we have the ability of having churn rates that's under the market average, be it in corporate or in SMEs, and that we have structural work in-house to reduce, that we would have better profitability moving forward. Replenishing competitiveness, bringing in the growth, and improving the results in the future, that's what we're looking for at this time. About the competitiveness, and that's very much related, we've have significant competitiveness, especially in SMEs. We've talked a lot about products, promotions, new markets, regional products, even that we've been launching. When we talk about corporate, and this is a bit different than what we've seen before, we've seen a lack of rationality in some decisions.

Speaker #1: With a unique product that is desired and that we know that we have the ability of having churn rates. That's under the market average, be it in corporate or in SMEs.

Speaker #1: And that we have structural work in-house, to reduce that we would have in better profitability moving forward. So replenishing competitiveness, bringing in the growth, and improving the results in the future, that's what we're looking for at this time.

Speaker #1: So, about competitiveness—and that's very much related—we've had significant competitiveness, especially in SMEs. We've talked a lot about products, promotions, new markets, and regional products, even those we've been launching.

Speaker #1: And when we talk about corporate, and this is a bit different than what we've seen before, we've seen a lack of rationality in some decisions.

Speaker #1: So our growth brings movement to the market and to the industry, and sometimes we face offers where we do not see any rationality in them.

Carlos Vinicius Pacheco: Our growth brings in a movement to the market, to the industry, sometimes we face some offers that we do not see any rationality in that or profitability in maintaining that portfolio, considering what we're being exposed to, what the market has to offer. It's very simple. We're very disciplined in that sense. The portfolio has to be profitable. It's no use to have a customer that will stay with us for another year, in the future, they'll have a huge problem with loss ratio in the portfolio. We've been highly disciplined in that. We're guaranteeing the profitability of the portfolios and working stronger on that.

[Company Representative] (Bradesco Saúde): Our growth brings in a movement to the market, to the industry, sometimes we face some offers that we do not see any rationality in that or profitability in maintaining that portfolio, considering what we're being exposed to, what the market has to offer. It's very simple. We're very disciplined in that sense. The portfolio has to be profitable. It's no use to have a customer that will stay with us for another year, in the future, they'll have a huge problem with loss ratio in the portfolio. We've been highly disciplined in that. We're guaranteeing the profitability of the portfolios and working stronger on that.

Speaker #1: Or profitability in maintaining that portfolio considering what we're being exposed to what the market has to offer. So it's very simple. We're very disciplined in that sense.

Speaker #1: The portfolio has to be profitable. It's no use to have a customer that will stay with us for another year and then in the future they'll have a huge problem with loss ratio in the portfolio.

Speaker #1: So we've been highly disciplined in that. We're guaranteeing the profitability of the portfolios and working stronger on that. So we've seen that happen intensely last year.

Carlos Vinicius Pacheco: We've seen that happen intensely last year, less intense, afterwards, in the past months, considering our growth, it seems like we have a more aggressive, competitive scenario, as you mentioned, we are privileging the discipline of underwriting and price reorganization in our portfolio. Okay, thank you. Thank you. Next question is from Joseph Giordano from J.P. Morgan. Joseph, go ahead, please. Good morning, everyone. Carlos Vinicius Pacheco, thank you for taking my question. I'd like to explore two points. One, top line about competitiveness. I'd like to explore the opportunities that you have in regional plans. What's the mix between the national and regional plan sales and the opportunities that you have considering the large Bradesco base. Second, expenses. Now the company's integrated. I'd like to know what we could see in synergies and inform the main areas of integration, for instance.

[Company Representative] (Bradesco Saúde): We've seen that happen intensely last year, less intense, afterwards, in the past months, considering our growth, it seems like we have a more aggressive, competitive scenario, as you mentioned, we are privileging the discipline of underwriting and price reorganization in our portfolio.

Speaker #1: And less intense in afterwards in the past months. Considering our growth, it seems like we have a more aggressive competitive scenario, as you mentioned.

Speaker #1: And we are privileging the discipline of underwriting and price reorganization in our portfolio. Okay, thank you. Thank you. Next question is from Joseph Giordano from JP Morgan.

Gustavo Miele: Okay, thank you.

Operator: Thank you. Next question is from Joseph Giordano from J.P. Morgan. Joseph, go ahead, please.

Speaker #1: Joseph, go ahead, please. Good morning, everyone. Carlos Inicio Pacheco. Thank you for taking my question. I'd like to explore two points. One, top line.

Joseph Giordano: Good morning, everyone. Carlos Vinicius Pacheco, thank you for taking my question. I'd like to explore two points. One, top line about competitiveness. I'd like to explore the opportunities that you have in regional plans. What's the mix between the national and regional plan sales and the opportunities that you have considering the large Bradesco base. Second, expenses. Now the company's integrated. I'd like to know what we could see in synergies and inform the main areas of integration, for instance. Considering that when you look at Odontoprev and expenses, it's not an operation where there are many mistakes. Now when we look at the bottom line, it's much beyond what was expected. Did you have any one-off expenses that were relevant in terms of maybe carryover in the transaction that has affected the results in the quarter?

Speaker #1: About competitiveness. I'd like to explore the opportunities that you have in regional plans. So what's the mix between the national and regional plans sales and the opportunities that you have considering the large Bradesco base?

Speaker #1: And second, expenses. So now the company's integrated. I'd like to know what we could see in synergies. And inform the main areas of integration, for instance.

Speaker #1: And considering that, when you look at Odonto Press and expenses, it's not an operation where there are many mistakes. And now when we look at the bottom line, it's much beyond what was expected.

Joseph Giordano: Considering that when you look at Odontoprev and expenses, it's not an operation where there are many mistakes. Now when we look at the bottom line, it's much beyond what was expected. Did you have any one-off expenses that were relevant in terms of maybe carryover in the transaction that has affected the results in the quarter? Thank you, Joseph. I'll start, then Vinicius and Pacheco can add. About the opportunity in regional plans. Our company is known for its domestic, its national plans, unique plans, premium plans. It's a recent trend in the market in having regional plans. Our strategy is to take that opportunity, even though it will be in a marginal manner. At this time, we will not change our strategy of being a company that only has regional plans.

Speaker #1: Did you have any one-off expenses that were relevant in terms of maybe carryover in the transaction that has affected the results in the quarter?

Speaker #1: Thank you, Joseph. I'll start. Then Vinícius and Pacheco can add. So about the opportunity in regional plans. Our company is known for its domestic, its national plans.

Carlos Marinelli: Thank you, Joseph. I'll start, then Vinicius and Pacheco can add. About the opportunity in regional plans. Our company is known for its domestic, its national plans, unique plans, premium plans. It's a recent trend in the market in having regional plans. Our strategy is to take that opportunity, even though it will be in a marginal manner. At this time, we will not change our strategy of being a company that only has regional plans. We do have the capability, be it the aspect is Atlântica with the launch of the hospitals such as Barueri, there we're having the Hospital Santa Luzia as an anchor to have that type of movement. We launched in specific markets such as Macaé, Alphaville, and Guarulhos.

Speaker #1: Unique plans, premium plans. So it's a recent trend in the market in having regional plans. So our strategy is to take that opportunity even though it will be in a marginal manner.

Speaker #1: At this time, we will not change our strategy of being a company that only has regional plans. But we do have the capability, be it in the aspect of Atlantica, with the launch of the hospitals, such as Baru.

Carlos Vinicius Pacheco: We do have the capability, be it the aspect is Atlântica with the launch of the hospitals such as Barueri, there we're having the Hospital Santa Luzia as an anchor to have that type of movement. We launched in specific markets such as Macaé, Alphaville, and Guarulhos. We're taking advantage of the diversity of profitability and revenues of Bradsaúde to add onto regional plans that together with the national plans that we already offer, they have the capability of bringing more members in a marginal manner. When you already have 4.1 million members in the premium segment with a higher ticket, you will naturally be able to, through the network and investments in Atlântica, add onto that, bring in marginal gains. However, they are still marginal considering our strategy. That's not our major focus in having these regional plans. However, it is an option.

Speaker #1: And there, we're having the Santa Lucid Hospital as an anchor to have that type of movement. So we launched in specific markets, such as Macaé, Alphaville, and Guarulhos.

Speaker #1: So, we're taking advantage of the diversity of profitability and revenues of Bradsaude to add on to regional plans, that together with the national plans that we already offer, have the capability of bringing more members in a marginal manner.

Carlos Marinelli: We're taking advantage of the diversity of profitability and revenues of Bradsaúde to add onto regional plans that together with the national plans that we already offer, they have the capability of bringing more members in a marginal manner. When you already have 4.1 million members in the premium segment with a higher ticket, you will naturally be able to, through the network and investments in Atlântica, add onto that, bring in marginal gains. However, they are still marginal considering our strategy. That's not our major focus in having these regional plans. However, it is an option. It is yet another strategy that can be intensified as we deem interesting and obtain the results that we've planned. Regarding exploring what we have through agencies, obviously, that's a strength that the organization has.

Speaker #1: When you already have 4.1 million members in the premium segment, with a higher ticket, you will naturally be able to, through the network and investments in Atlantica, add on to that and bring in marginal gains.

Speaker #1: However, they are still marginal considering our strategy. That's not our major focus in having these regional plans. However, it is an option. It is yet another strategy that can be intensified as we deem interesting and obtain the results that we've planned.

Carlos Vinicius Pacheco: It is yet another strategy that can be intensified as we deem interesting and obtain the results that we've planned. Regarding exploring what we have through agencies, obviously, that's a strength that the organization has. It's an add-on offer that the organization can offer its clients and will do so in an intense manner. Explore all these opportunities for these synergies, even through the bank channels. Perfect. About the synergies, in fact, when we launched the ecosystem, we did mention many times that we're bringing together leading companies in their areas of operation, we will explore and continue to explore the synergies in the top line and growth. We see a very important combination of the sales force of each of the companies. Baru is a great example.

Speaker #1: Regarding exploring what we have through agencies, obviously that's a strength that the organization has. It's an additional offer that the organization can provide to its clients and will do so in an intense manner.

Carlos Marinelli: It's an add-on offer that the organization can offer its clients and will do so in an intense manner. Explore all these opportunities for these synergies, even through the bank channels.

Speaker #1: So, explore all these opportunities for these synergies, even through the bank channels. Perfect. About the synergies—and, in fact, when we launched the ecosystem, we did mention many times that we're bringing together leading companies in their areas of operation, and we will explore and continue to explore the synergies in the top line and growth.

[Company Representative] (Bradesco Saúde): Perfect. About the synergies, in fact, when we launched the ecosystem, we did mention many times that we're bringing together leading companies in their areas of operation, we will explore and continue to explore the synergies in the top line and growth. We see a very important combination of the sales force of each of the companies. Baru is a great example. It's unique and special where you can bring together a desired asset launched by the Grupo Santa with a product supply that enables us to have a commercial action and explore a market where we weren't as competitive with the offers that they had in that place. That's an excellent example of synergies that will increase the top line and much more important and sustainable than any one-off things that we will observe, and we won't ignore any opportunities for gains and efficiencies.

Speaker #1: And we see a very important combination of the sales force of each of the companies. So, Baru is a great example. It's unique and special, where you can bring together a desired asset launched by the Santa Group with a product supply that enables us to have a commercial action and explore a market where we weren't as competitive with the offers that they had in that place.

Carlos Vinicius Pacheco: It's unique and special where you can bring together a desired asset launched by the Grupo Santa with a product supply that enables us to have a commercial action and explore a market where we weren't as competitive with the offers that they had in that place. That's an excellent example of synergies that will increase the top line and much more important and sustainable than any one-off things that we will observe, and we won't ignore any opportunities for gains and efficiencies. These companies are leaders and successful in fighting against waste. About Odontoprev, their leadership in the number of members, which is absurd, even though it already is big, we've grown with a different mix than we had in the past.

Speaker #1: So that's an excellent example of synergies that will increase the top line, and much more important and sustainable than any one-off things that we will observe. And we won't ignore any opportunities for gains and efficiencies.

Speaker #1: These companies are leaders and successful in fighting against waste, regarding Odontoprev. Their leadership in the number of members is absurd, even though it already is big.

[Company Representative] (Bradesco Saúde): These companies are leaders and successful in fighting against waste. About Odontoprev, their leadership in the number of members, which is absurd, even though it already is big, we've grown with a different mix than we had in the past. The comparison of the results last year and this year are mainly resulting from last year, where we had gains in regulatory terms that incremented the results and other aspects in operation. If you look at last 12 months, we still have great results and a contribution that's significant for our ecosystem, which is greater than 10% when we consider Bradsaúde, and is still an asset that makes a lot of sense to increase the unique offer in the exclusive channels that we have so we can grow the number of members with superior profitability compared to other assets that are still in the maturity phase.

Speaker #1: We've grown with a different mix than we had in the past. So the comparison of the results last year and this year are mainly resulting from last year where we had gains in regulatory terms that incremented the results and other aspects in operation.

Carlos Vinicius Pacheco: The comparison of the results last year and this year are mainly resulting from last year, where we had gains in regulatory terms that incremented the results and other aspects in operation. If you look at last 12 months, we still have great results and a contribution that's significant for our ecosystem, which is greater than 10% when we consider Bradsaúde, and is still an asset that makes a lot of sense to increase the unique offer in the exclusive channels that we have so we can grow the number of members with superior profitability compared to other assets that are still in the maturity phase. About the synergies, I would like to add, Joseph, and mention the SMEs.

Speaker #1: But if you look at the last 12 months, we still have great results, and the contribution is significant for our ecosystem—which is greater than 10% when we consider Bradsaude—and it is still an asset that makes a lot of sense to increase the unique offer and the exclusive channels that we have.

Speaker #1: So, we can grow the number of members with superior profitability compared to other assets. They are still in the maturity phase. And about the synergies...

[Company Representative] (Bradesco Saúde): About the synergies, I would like to add, Joseph, and mention the SMEs. You can see that in the last 12 months, the consolidated net adds in Bradsaúde was 855,000 members, and one-third is coming from SMEs, not only in health but also in dental. That's 2-digit growth in the number of members in both portfolios. That's a segment that enables us to have lower loss ratio, not only in dental but also in health. Bradsaúde has unique positioning in this market, which is a new potential market and very relevant for future results. That's what we wanted to mention. Thank you, Joseph, for your question.

Speaker #1: I would like to add, Joseph, and mention the SMEs. You can see that, in the last 12 months, the consolidated net adds in Bradesaúde was 855,000 members, and one-third is coming from SMEs.

Carlos Vinicius Pacheco: You can see that in the last 12 months, the consolidated net adds in Bradsaúde was 855,000 members, and one-third is coming from SMEs, not only in health but also in dental. That's 2-digit growth in the number of members in both portfolios. That's a segment that enables us to have lower loss ratio, not only in dental but also in health. Bradsaúde has unique positioning in this market, which is a new potential market and very relevant for future results. That's what we wanted to mention. Thank you, Joseph, for your question. Next question from Caio Moscardini from Santander. Caio, go ahead please. Hi, everyone. Thank you for taking my question. We have two on our side.

Speaker #1: Not only in health, but also in dental. That's double-digit growth in the number of members in both portfolios. So that's a segment that enables us to have a lower loss ratio, not only in dental but also in health.

Speaker #1: And Bradesaude has unique positioning in this market, which is a new potential market and very relevant for future results. That's what we wanted to mention.

Speaker #1: Thank you, Joseph, for your question. Now, next question from Caio Muscardini from Santander. Caio, go ahead with your question. We have two on our side.

Operator: Next question from Caio Moscardini from Santander. Caio, go ahead please.

Caio Moscardini: Hi, everyone. Thank you for taking my question. We have two on our side. Marineli, when you're considering the design of the product that's being launched, maybe lower levels of reimbursement, something that's more sustainable based on the point of view of loss ratio or claims, I'm sorry. SME usually has higher margin than corporate. In that case, shouldn't we observe loss ratio that would gradually improve across time? The potential higher efficiency would be shared with the client so that you can grow the number of members faster. Second question about interest on equity and benefits on the actual rate. Should we expect a lower effective rate in H2 compared to H1? Should the effective rate be closer to 36%? Those are my two questions. Thank you.

Speaker #1: So, Marinelli, when you're considering the design of the product that's being launched—so maybe lower levels of reimbursement—something that's more sustainable from the point of view of loss ratio or claims.

Caio Moscardini: Marineli, when you're considering the design of the product that's being launched, maybe lower levels of reimbursement, something that's more sustainable based on the point of view of loss ratio or claims, I'm sorry. SME usually has higher margin than corporate. In that case, shouldn't we observe loss ratio that would gradually improve across time? The potential higher efficiency would be shared with the client so that you can grow the number of members faster. Second question about interest on equity and benefits on the actual rate. Should we expect a lower effective rate in H2 compared to H1? Should the effective rate be closer to 36%? Those are my two questions. Thank you. Thank you, Caio, for your question. I'll start and then Vinicius can add. About the products, definitely, they have to be sustainable.

Speaker #1: I'm sorry. And SME usually has a higher margin than Corporate. In that case, shouldn't we observe the loss rate showing a gradual improvement over time?

Speaker #1: Or the potential higher efficiency would be shared with the client so that you can grow the number of members faster. And second question about interest on equity and benefits on the actual rate.

Speaker #1: Should we expect a lower effective rate in the second half compared to the first half? And should the effective rate be closer to 36%?

Speaker #1: Those are my two questions. Thank you. Thank you, Caio, for your question. I'll start, and then Venuses can add. About the products, definitely, they have to be sustainable.

Carlos Marinelli: Thank you, Caio, for your question. I'll start and then Vinicius can add. About the products, definitely, they have to be sustainable. As I mentioned here, we have a great capability in maintaining clients, and you can only do that when you look at the loss ratio closely, and you do have the capability of offering competitive prices. We can't forget that this product basically has contract renewal every single year. Every single year, the market, through brokers or new offers. Many of the competitors obviously want to poach our clients. That's pretty obvious, we do have to be competitive in price. In designing new products, we always work on the elements, as you mentioned, the share, the co-sharing different type of reimbursements that brought reimbursements at a much lower level compared to what we had in the past, especially by fighting the frauds.

Speaker #1: As I mentioned here, we have a great capability in maintaining clients. And you can only do that when you look at the loss ratio closely and you do have the capability of offering competitive prices.

Carlos Vinicius Pacheco: As I mentioned here, we have a great capability in maintaining clients, and you can only do that when you look at the loss ratio closely, and you do have the capability of offering competitive prices. We can't forget that this product basically has contract renewal every single year. Every single year, the market, through brokers or new offers. Many of the competitors obviously want to poach our clients. That's pretty obvious, we do have to be competitive in price. In designing new products, we always work on the elements, as you mentioned, the share, the co-sharing different type of reimbursements that brought reimbursements at a much lower level compared to what we had in the past, especially by fighting the frauds. Now we have a capacity and clarity that we did that work.

Speaker #1: We can't forget that this product basically has contract renewals every single year. So every single year, the market—through brokers or new offers—and many of the competitors obviously want to poach our clients.

Speaker #1: That's pretty obvious. But we so we do have to be competitive in price. In designing new products, we always work on the elements, as you mentioned, the share, the co-sharing, different type of reimbursements, that brought reimbursements at a much lower level compared to what we had in the past, especially by fighting the frauds.

Speaker #1: So now we have the capacity and clear clarity that we did that work. But at the same time, you have an evolution in certain segments, and we can clearly see that all the segments of use are broken down, and we see the major variations.

Carlos Marinelli: Now we have a capacity and clarity that we did that work. At the same time, you have an evolution in certain segments, and we can clearly see that all the segments of use are broken down, and we see the major variations, where they're located, especially the cost of medical visits. There's some special market segments and specialties that we've seen have grown in terms of average cost per visit and per procedure. We've been working on all the elements, meaning the relationship with providers, the compensation tables, and packaging procedures so that we can contain certain points where the chain takes advantage of certain movements to increase the average revenue per visit. We're working intensely on that, and we already have many of these results being included, and we'll continue to work on that during the rest of the year.

Carlos Vinicius Pacheco: At the same time, you have an evolution in certain segments, and we can clearly see that all the segments of use are broken down, and we see the major variations, where they're located, especially the cost of medical visits. There's some special market segments and specialties that we've seen have grown in terms of average cost per visit and per procedure. We've been working on all the elements, meaning the relationship with providers, the compensation tables, and packaging procedures so that we can contain certain points where the chain takes advantage of certain movements to increase the average revenue per visit. We're working intensely on that, and we already have many of these results being included, and we'll continue to work on that during the rest of the year.

Speaker #1: Where they're located, especially the cost of medical visits. So, there are some special market segments and specialties that we've seen have grown in terms of average cost per visit and per procedure.

Speaker #1: So we've been working on all the elements meaning the relationship with providers, the compensation tables and packaging procedures so that we can contain certain points where the chain takes advantage of certain movements to increase the average revenue per visit.

Speaker #1: So we're working intensely on that. And we already have many of the results being included and we'll continue to work on that during the rest of the year.

Speaker #1: So it's not a simple matter of negotiating well. But there are practices with providers that show the understanding that we have with medical providers and other providers what would be the best care for our members so a lot of that is been happening in the past months and should reflect on a more sustainable loss ratio for the rest of the year.

Carlos Vinicius Pacheco: It's not a simple matter of negotiating well, but there are practices with providers that show the understanding that we have with medical providers and other providers, what would be the best care for our members. A lot of that has been happening in the past months and should reflect on a more sustainable loss ratio for the rest of the year. About interest on equity, Caio, you're on the right path. That's what we see in terms of the effective rate, but especially because of the increase in the contribution of the assets that are coming into Bradsaude that are equal in net worth that have a lower rate than Bradesco Saúde, and will continue to be the main source of results of the ecosystem. By using interest on equity, we can consider the effective rate and what you're seeing for the future exactly.

Carlos Marinelli: It's not a simple matter of negotiating well, but there are practices with providers that show the understanding that we have with medical providers and other providers, what would be the best care for our members. A lot of that has been happening in the past months and should reflect on a more sustainable loss ratio for the rest of the year.

Speaker #1: About interest on equity, Caio, you're on the right path. That's what we see in terms of the effective rate. But especially because of the increase in the contribution of the assets that are coming into Bradsaude at that are equal in net worth that have a lower rate than Bradesco Saude.

Vinicius Cruz: About interest on equity, Caio, you're on the right path. That's what we see in terms of the effective rate, but especially because of the increase in the contribution of the assets that are coming into Bradsaude that are equal in net worth that have a lower rate than Bradesco Saúde, and will continue to be the main source of results of the ecosystem. By using interest on equity, we can consider the effective rate and what you're seeing for the future exactly.

Speaker #1: And we'll continue to be the main source of results for the ecosystem. By using interest on equity, we can consider the effective rate and what you're seeing for the future, exactly.

Speaker #1: Next question is from Venuses Figueiredo from Itaú BBA. Venuses, go ahead, please. Good morning, everyone. How are you doing? Going into that point again of interest on equity, I know you've had some questions on that.

Carlos Vinicius Pacheco: Next question is from Vinicius Figueiredo from Itaú BBA. Vinicius, go ahead please. Good morning, everyone. How are you doing? Going into that point again of interest on equity, I know you've had some questions on that. Just to understand. To see about the risk-based capital on health and also dental at Odontoprev. You have adjusted net worth, and you have some room there, but less when you look at cash and the technical provision, for instance. Just so we can understand, is that a limiting factor for interest on equity being distributed by Bradsaúde, or is there something could be done, especially in optimizing the framework of the company? Second point about loss ratio. Everybody has explored that in the questions.

Operator: Next question is from Vinicius Figueiredo from Itaú BBA. Vinicius, go ahead please.

Vinicius Figueiredo: Good morning, everyone. How are you doing? Going into that point again of interest on equity, I know you've had some questions on that. Just to understand. To see about the risk-based capital on health and also dental at Odontoprev. You have adjusted net worth, and you have some room there, but less when you look at cash and the technical provision, for instance. Just so we can understand, is that a limiting factor for interest on equity being distributed by Bradsaúde, or is there something could be done, especially in optimizing the framework of the company? Second point about loss ratio. Everybody has explored that in the questions.

Speaker #1: Just to understand, to clarify about the risk-based capital on health as well as dental and Odontoprev, you have adjusted net worth and you have some room there.

Speaker #1: But less when you look at cash and the technical provision, for instance. Just so we can understand, is that a limiting factor for interest on equity being distributed by Bradsaude, or is there something that could be done, especially in optimizing the framework of the company?

Speaker #1: Second point about loss ratio, everybody has explored that in the questions. So is there something that we can look at, ANS specifically? If you compare yourselves with some of the main competitors, even though you're looking at alternative hospitals, services still seem big in your loss ratio when compared to peers.

Vinicius Figueiredo: Is there something that we can look at ANS specifically, is that if you compare yourselves with some of the main competitors, even though you're looking at alternative hospitals, fee-for-service is still big in your loss ratio when compared to peers. Do you still see that as a factor? Could we see more efficiency being extracted from that, or is there any specificity in a more premium segment in imitating that? I'll start off with interest on equity. That's one of the mechanisms of payout that we have at Bradesco, and we should look at it that way.

Vinicius Figueiredo: Is there something that we can look at ANS specifically, is that if you compare yourselves with some of the main competitors, even though you're looking at alternative hospitals, fee-for-service is still big in your loss ratio when compared to peers. Do you still see that as a factor? Could we see more efficiency being extracted from that, or is there any specificity in a more premium segment in imitating that?

Speaker #1: Do you still see that as a vector? Could we see more efficiency being extracted from that, or is there any specificity in that in a more premier segment, premium segment, in imitating that?

Speaker #1: I'll start off with interest on equity. That's one of the mechanisms of payout that we have at Bradesco Saúde, and we should look at it that way.

[Company Representative] (Bradesco Saúde): I'll start off with interest on equity. That's one of the mechanisms of payout that we have at Bradesco, and we should look at it that way. First of all, solvency, and not just solvency of risk-based capital, but also all our different proprietary methodologies that give us a level of buffer and comfort, not just for the volatility of results during the period, but also support the growth that we have of our operations, be it in health or dental. Specifically, in this first statement of interest on equity, we have to look at the first profit and loss of Odontoprev before the consolidated data, and there's a growth trend in the upcoming periods, as you will see in that line. I would say that the restriction is mainly on observing the growth and demand per capital than any other type of restriction that would hold back any funds of the operators that are regulated by the agency, by ANS.

Speaker #1: So first of all, solvency and not just solvency of risk-based capital but also all our different proprietary methodologies that give us a level of buffer and comfort not just for the volatility of results during the period but also support the growth that we have of our operations be it in health or dental.

Vinicius Marinho da Cruz: First of all, solvency, and not just solvency of risk-based capital, but also all our different proprietary methodologies that give us a level of buffer and comfort, not just for the volatility of results during the period, but also support the growth that we have of our operations, be it in health or dental. Specifically, in this first statement of interest on equity, we have to look at the first profit and loss of Odontoprev before the consolidated data, and there's a growth trend in the upcoming periods, as you will see in that line. I would say that the restriction is mainly on observing the growth and demand per capital than any other type of restriction that would hold back any funds of the operators that are regulated by the agency, by ANS.

Speaker #1: Specifically in this first statement of interest on equity, we have to look at the first profit and loss of odontopress before the consolidated data and there's a growth trend in the upcoming periods as you will see in that line.

Speaker #1: So I would say that the restriction is mainly on observing the growth and demand per capital. Then any other type of restriction that would hold back any funds of the operators that are regulated by the agency by ANS.

Speaker #1: So in the constant work of efficiency, we have the companies that are capitalized that are within the scope of operations and investment hospital for instance investments and growing services and making it more efficient than if the funds were in the differences of the resources and other entities that are part of the ecosystems.

Carlos Vinicius Pacheco: In the constant work of efficiency, we have the companies that are capitalized that are within the scope of operations and investment in hospital, for instance, investments in growing services and making it more efficient than if the funds were in the companies and regulated, and you'll see the differences of the resources and other entities that are part of the ecosystems. After the closing, that was in April, so only two months of Bradsaúde operating fully. We're still looking at other alternatives to have even more efficiency to the original framework of Bradsaúde that was comprised based on the composition of the partnership reorganization.

[Company Representative] (Bradesco Saúde): In the constant work of efficiency, we have the companies that are capitalized that are within the scope of operations and investment in hospital, for instance, investments in growing services and making it more efficient than if the funds were in the companies and regulated, and you'll see the differences of the resources and other entities that are part of the ecosystems. After the closing, that was in April, so only two months of Bradsaúde operating fully. We're still looking at other alternatives to have even more efficiency to the original framework of Bradsaúde that was comprised based on the composition of the partnership reorganization.

Speaker #1: After the closing, that was in April. So only two months of Bradsaude operating fully. We're still looking at other alternatives to have even more efficiency to the original framework of Bradsaude that was comprised based on the composition of the partnership reorganization.

Speaker #1: So there's the efficiency, but the important takeaway here is that we'll look at solvency, business sustainability, growth of operations, and scheduled investments for the company. So, based on that and by observing the payout that's been there, we can look at payout that considers efficiency in delivering our results moving forward.

Carlos Vinicius Pacheco: There's the efficiency, but the important takeaway here is that we'll look at solvency, business sustainability, growth of operations, and scheduled investments for the company. Based on that, and by observing the payout that's been there, we can look at the payout that considers efficiency in delivering our results moving forward. About the loss ratio, before handing over to Marinadi, we have to observe that we are more mature in the regulation process with a lot of information that was captured by Bradesco Saúde in the claim area, but also by our zona de saúde tag company that has many different analyses that bring us on more capability of understanding the movement of the claims and dialoguing with our referred network.

[Company Representative] (Bradesco Saúde): There's the efficiency, but the important takeaway here is that we'll look at solvency, business sustainability, growth of operations, and scheduled investments for the company. Based on that, and by observing the payout that's been there, we can look at the payout that considers efficiency in delivering our results moving forward. About the loss ratio, before handing over to Marinadi, we have to observe that we are more mature in the regulation process with a lot of information that was captured by Bradesco Saúde in the claim area, but also by our zona de saúde tag company that has many different analyses that bring us on more capability of understanding the movement of the claims and dialoguing with our referred network.

Speaker #1: About the loss ratio, before handing over to Marinelli, we have to observe that we are more mature in the regulation process, with a lot of information that was captured by Bradesco Saude in the claim area, but also by ours on our TAG company that has many different analyses. That brings us more capability of understanding the movement of the claims and dialoguing with our referred network.

Speaker #1: We start off with a package to kill predictability, and then we move on to packages and other options to have better alignment between the providers, operators, and the payers, so that evolves constantly.

Carlos Vinicius Pacheco: We start off with a package to kill predictability, and then we moved on to packages and other options to have better alignment between the providers, operators, and the payers. That evolves constantly. Based on information and quality of data that we have internally at the company, given our exposure and being in the system for a long time, we can build new methodologies so we can align the incentives and bring in sustainable growth that turns into price and dynamics and readjustments that are less than we saw in 2022 and 2023, as Pacheco showed us. Thank you for your question. There's an element that you brought in, and I mentioned it in a previous question, and that's very important. About the claims, we have to understand that the whole entire system evolves. At some point, and there we see the villains, right?

[Company Representative] (Bradesco Saúde): We start off with a package to kill predictability, and then we moved on to packages and other options to have better alignment between the providers, operators, and the payers. That evolves constantly. Based on information and quality of data that we have internally at the company, given our exposure and being in the system for a long time, we can build new methodologies so we can align the incentives and bring in sustainable growth that turns into price and dynamics and readjustments that are less than we saw in 2022 and 2023, as Pacheco showed us.

Speaker #1: So, based on the information and quality of data that we have internally at the company, given our exposure and being in the system for a long time, we can build new methodologies so we can align the incentives and bring in sustainable growth that turns into price and dynamics and readjustments that are less than we saw in 2022 and 2023, as Pacheco showed us.

Speaker #1: Thank you for your question. There’s an element that you brought in—and I mentioned it in a previous question—that’s very important. Regarding the claims, we have to understand that the entire system evolves.

[Company Representative] (Bradesco Saúde): Thank you for your question. There's an element that you brought in, and I mentioned it in a previous question, and that's very important. About the claims, we have to understand that the whole entire system evolves. At some point, and there we see the villains, right? The villain is fee-for-service, we have to package it up. Then the market goes into packaging. Even if you do that, it's not what you expected that would be, right? We saw that happening with some of the models that we saw of packaging. Recently, we restructured in structural terms, in teams, in leadership, so that we would have the pillars that we see in terms of claims. We have the pillar of the authorization, so we see if it makes sense, what's being ordered.

Speaker #1: So at some point and there we see the villains, right? Oh, the villain is fee for service. So we have to package it up.

Carlos Vinicius Pacheco: The villain is fee-for-service, we have to package it up. Then the market goes into packaging. Even if you do that, it's not what you expected that would be, right? We saw that happening with some of the models that we saw of packaging. Recently, we restructured in structural terms, in teams, in leadership, so that we would have the pillars that we see in terms of claims. We have the pillar of the authorization, so we see if it makes sense, what's being ordered. We understand it to see if there's something that can be streamlined and work on that with the providers so that becomes faster. Historically, we authorize that pretty fast. At the end of the chain, you see the accounts audit.

Speaker #1: And then the company—the market, excuse me—goes into packaging. And even if you do that, it's not what you expected. That would be right?

Speaker #1: And we saw that happening with some of the models that we saw of packaging. So, recently, we restructured, in structural terms, teams and leadership so that we would have the pillars that we see in terms of claims.

Speaker #1: So we have the pillar of the authorization. So we see if it makes sense what's being ordered. We understand it to see if there's something that can be streamlined and work on that with the providers so that becomes faster.

[Company Representative] (Bradesco Saúde): We understand it to see if there's something that can be streamlined and work on that with the providers so that becomes faster. Historically, we authorize that pretty fast. At the end of the chain, you see the accounts audit. They also look at what happened, if the use was adequate, the time of permanence, and the elements that make sense in that. You didn't have a vision of what was going on. We will increasingly have, and we've organized it in this manner, a structure that would work together with these providers to see what's happening and what's happening and how it's happening and organizing that. That will give us predictability for the claims. That will be very big, and always through a partnership with providers, because after all, they are providing the services and it's their responsibility.

Speaker #1: And we historically we authorize that pretty fast. And at the end of the chain you see the accounts audit and so they also look at what happened.

Carlos Vinicius Pacheco: They also look at what happened, if the use was adequate, the time of permanence, and the elements that make sense in that. You didn't have a vision of what was going on. We will increasingly have, and we've organized it in this manner, a structure that would work together with these providers to see what's happening and what's happening and how it's happening and organizing that. That will give us predictability for the claims. That will be very big, and always through a partnership with providers, because after all, they are providing the services and it's their responsibility. When we work together with them, we can streamline and obviously out of interest for them in terms of payment and not having any admin matters related to billing, and pay adequately for the right type of service provided and the right time.

Speaker #1: If the use was adequate, the time of permanence and the elements that make sense in that. But you didn't have a vision of what was going on.

Speaker #1: So we will increasingly have and we've organized it in this manner a structure that will work together with these providers to see what's happening in what's happening and how it's happening.

Speaker #1: It's organizing that so that it will give us predictability. For the claims, that's important; claims can be very big. And always, it's through a partnership with providers, because after all, they are providing the services and it's their responsibility.

Speaker #1: But when we work together with them we can streamline and obviously out of interest for them. In terms of payment and not having any admin matters related to billing and pay adequately for the right type of service provided and the right time.

[Company Representative] (Bradesco Saúde): When we work together with them, we can streamline and obviously out of interest for them in terms of payment and not having any admin matters related to billing, and pay adequately for the right type of service provided and the right time. That will enable us to change the claims profile in the future.

Speaker #1: So that will enable us to change the claims profile in the future. Thank you for your answers. Thank you, Vinicius. Next question is from Gustavo Tiseo from XP.

Carlos Vinicius Pacheco: That will enable us to change the claims profile in the future. Thank you for your answers. Thank you, Vinicius. Next question is from Gustavo Tirreo from XP. Gustavo, please. Thank you, Pacheco and Marineli. Two on our side as well, and both of them are related to Atlantica. In fact, strong results, and it has grown a lot in this quarter year-over-year. I'd like to understand how much of that is actually recurring. Is there any specific about that? What are the main drivers if it's Atlantica or any other hospital, the Santa group may be bringing in stronger growth? Is there a target? I expect that profit will be 3% to 4% in 2026 for the hospitals. Second part is the potential of expanding this vertical. You mentioned that you're looking at going into the countryside, into other regions.

Vinicius Figueiredo: Thank you for your answers.

Operator: Thank you, Vinicius. Next question is from Gustavo Tirreo from XP. Gustavo, please.

Speaker #1: Gustavo, please. Thank you, Pacheco. And Marinelli. Two on our side as well and two the both of them are related to Atlantica. In fact, strong results and it has grown a lot in this quarter year over year.

Gustavo Tiseo: Thank you, Pacheco and Marineli. Two on our side as well, and both of them are related to Atlantica. In fact, strong results, and it has grown a lot in this quarter year-over-year. I'd like to understand how much of that is actually recurring. Is there any specific about that? What are the main drivers if it's Atlantica or any other hospital, the Santa group may be bringing in stronger growth? Is there a target? I expect that profit will be 3% to 4% in 2026 for the hospitals. Second part is the potential of expanding this vertical. You mentioned that you're looking at going into the countryside, into other regions.

Speaker #1: So, I'd like to understand how much of that is actually recurring. Is there any specifics about that? And what are the main drivers—if it's Atlânticador or any other hospital?

Speaker #1: The Santa group maybe bringing in stronger growth? And is there a target? So I expect that profit will be three, four percent in 2026 for the hospitals.

Speaker #1: Second part is the potential of expanding this vertical. You mentioned that you're looking at going into the countryside, into other regions. UNIMED hospital in Santa Catarina has been doing that, or at least has started.

Gustavo Tirreo: You need a hospital, Santa has been doing that, or at least it started. I'd like to know about your pipeline. Do you have a pipeline for acquisitions or projects when you go into these other regions? Give us some flavor if the Santa group is a vertical, understand the potential of going into the countryside. Those are my two questions. Thank you. Thank you, Gustavo, for your question. The Atlantica result is a result of the growth process and development of the hospitals that has been announced since we began the Atlantica Hospitals process. We started off with greenfield equipment, which naturally becomes more mature in the places where they are already installed.

Gustavo Tiseo: You need a hospital, Santa has been doing that, or at least it started. I'd like to know about your pipeline. Do you have a pipeline for acquisitions or projects when you go into these other regions? Give us some flavor if the Santa group is a vertical, understand the potential of going into the countryside. Those are my two questions. Thank you.

Speaker #1: So I'd like to know about your pipeline. Do you have a pipeline for acquisitions or projects when you go into these other regions?

Speaker #1: And give us some flavor if the Santa group is a vertical, so we understand the potential of going into the countryside. Those are my two questions.

Speaker #1: Thank you. Thank you, Gustavo, for your question. The Atlantica result is a result of the growth process and development of the hospitals that has been announced since we began the Atlantica hospitals process.

[Company Representative] (Bradesco Saúde): Thank you, Gustavo, for your question. The Atlantica result is a result of the growth process and development of the hospitals that has been announced since we began the Atlantica Hospitals process. We started off with greenfield equipment, which naturally becomes more mature in the places where they are already installed. They start the process with registering with other payers, and that entire process and understanding those regions and the quality equipment will favor the growth in sharing in our bottom line, and that happens in all places where we install the equipment. For the Santa group, much more mature, it's stable results, that's a result of the actions that we've been taking in those places where they operate.

Speaker #1: So we started off with Greenfield equipment, which naturally becomes more mature in the places where they are already installed. They start the process with registering with other payers, and that entire process and understanding those regions and the quality equipment will favor the growth in sharing in our bottom line. That happened in all places where we installed the equipment.

Carlos Vinicius Pacheco: They start the process with registering with other payers, and that entire process and understanding those regions and the quality equipment will favor the growth in sharing in our bottom line, and that happens in all places where we install the equipment. For the Santa group, much more mature, it's stable results, that's a result of the actions that we've been taking in those places where they operate. That's a natural process of operations and growth as you grow the number of operational beds. In the material, we not only have the number of beds, but also the increase in the number of operational beds. That result comes from that growth process and the maturity of this equipment.

Speaker #1: For the Santa group, much, much more mature. So it's stable results, and that's a result of the actions that we've been taking in those places where they operate.

Speaker #1: So that's a natural process of operations and growth as you increase the number of operational beds. In the materials, we not only have the number of beds but also the increase in the number of operational beds, and that result comes from that growth process and the maturity of this equipment.

[Company Representative] (Bradesco Saúde): That's a natural process of operations and growth as you grow the number of operational beds. In the material, we not only have the number of beds, but also the increase in the number of operational beds. That result comes from that growth process and the maturity of this equipment. When we look at the potential of the share in the service chain of Bradsaúde, we started Bradsaúde with 1% results coming from Atlantica, and now in the Q2, it's 6%. As we have the number of assets that already amount to over 4,000 beds prepared for installation, our expectation that naturally we will grow the share in that pie. The pie is also growing given the results of the other operations. In 5 or 7 years, we'll have over 10%, that will come from a natural growth process.

Speaker #1: When we look at the potential of the share in the service chain of Bradsaude, we started Bradsaude with 1% of the results coming from Atlantica, and now, in the second quarter, it's 6%.

Carlos Vinicius Pacheco: When we look at the potential of the share in the service chain of Bradsaúde, we started Bradsaúde with 1% results coming from Atlantica, and now in the Q2, it's 6%. As we have the number of assets that already amount to over 4,000 beds prepared for installation, our expectation that naturally we will grow the share in that pie. The pie is also growing given the results of the other operations. In 5 or 7 years, we'll have over 10%, that will come from a natural growth process. We don't necessarily have the obligation of installing new equipment to support that growth. In the places where we see quality equipment that's already installed and will make the supply of products for Bradsaúde without requiring new hospitals, we'll follow the growth based on our agreements and our reverence with the network of providers.

Speaker #1: As we have the number of assets that already amount to over 4,000 beds prepared for installation, our expectation that naturally we will grow the share in that pie.

Speaker #1: The pie is also growing, given the results of the other operations. In five or seven years, we'll have over 10%, and that will come from a natural growth process.

Speaker #1: And we don't necessarily have the obligation of installing new equipment to support that growth. In the places where we see quality equipment that's already installed and will make the supply of products for Bradsaude without requiring new hospitals, we will follow the growth based on our agreement and our reverence with the network of providers.

[Company Representative] (Bradesco Saúde): We don't necessarily have the obligation of installing new equipment to support that growth. In the places where we see quality equipment that's already installed and will make the supply of products for Bradsaúde without requiring new hospitals, we'll follow the growth based on our agreements and our reverence with the network of providers. We're not obliged to grow through new hospitals, but if there's an opportunity to grow and become unique in that place, we will assess that. Our pipeline looks into all those factors.

Speaker #1: So we're not obliged to grow through new hospitals, but if there's an opportunity to grow and become unique in that place, we will assess that.

Carlos Vinicius Pacheco: We're not obliged to grow through new hospitals, but if there's an opportunity to grow and become unique in that place, we will assess that. Our pipeline looks into all those factors. Perfect. Thank you. Thank you, Gustavo. Our last question is from Antonio Cardoso from Jefferies. Go ahead, please. Hey, everyone. How are you doing? Two questions on my side. First of all, I'd like to know about the Atlantica capital structure. Everybody funds hospitals with debt. At some point, do you plan on doing that or only with your own capital? Second question. It impacts you less than others, but you still have 35% of the portfolio, ex managed and SMEs. The Supreme Court has consolidated an understanding of characterizing a so-called collective program according to individual plans law.

Speaker #1: So, our pipeline looks into all those factors. Perfect, thank you. Thank you, Gustavo. Our last question is from Antonio Cardoso from Jefferies. Go ahead, please.

Gustavo Tiseo: Perfect. Thank you.

Operator: Thank you, Gustavo. Our last question is from Antonio Cardoso from Jefferies. Go ahead, please.

Speaker #1: Hey, everyone. How are you doing? So, two questions on my side. First of all, I'd like to know about Atlantica: capital structure. Everybody funds hospitals with debt.

Antonio Cardoso: Hey, everyone. How are you doing? Two questions on my side. First of all, I'd like to know about the Atlantica capital structure. Everybody funds hospitals with debt. At some point, do you plan on doing that or only with your own capital? Second question. It impacts you less than others, but you still have 35% of the portfolio, ex managed and SMEs. The Supreme Court has consolidated an understanding of characterizing a so-called collective program according to individual plans law. How is that going about when it's a so-called collective plan and it's not really so, and compared to the individual's plans, how do you see that?

Speaker #1: At some point, do you plan on doing that, or only with your own capital? Second question: it impacts you less than others, but you still have three—35% of the portfolio ex-managed in SMEs.

Speaker #1: So the Supreme Court has consolidated its understanding of characterizing a so-called collective program according to individual plans law. So how is that going? When it's a so-called collective plan and it's not really so—and compared to the individual plans, how do you see that?

Antonio Pedro Cardoso: How is that going about when it's a so-called collective plan and it's not really so, and compared to the individual's plans, how do you see that? I'll answer the Atlantica one. Antonio, we will always assess the best opportunities for investment and the best framework to maximize efficiency. Up to the time being, considering the scenario, it made a lot of sense for us to use our own capital in those movements, but we will always assess the possibility of maximizing results. Don't forget that we have a pipeline of initiatives and other operations that are being assessed, and with that, we can structure the framework in the best manner possible. At this time, a balance sheet that's strong without any debt and has strengthened our financial results, we see that as a significant competitive advantage for Atlantica. Well, about your question, and thank you, Antonio, for that.

Speaker #1: I'll answer the Atlantica one. Antonio, we will always assess the best opportunities for investment and the best framework to maximize efficiency. Up to now, considering the scenario, it has made a lot of sense for us to use our own capital in those movements, but we will always assess the possibility of maximizing results.

[Company Representative] (Bradesco Saúde): I'll answer the Atlantica one. Antonio, we will always assess the best opportunities for investment and the best framework to maximize efficiency. Up to the time being, considering the scenario, it made a lot of sense for us to use our own capital in those movements, but we will always assess the possibility of maximizing results. Don't forget that we have a pipeline of initiatives and other operations that are being assessed, and with that, we can structure the framework in the best manner possible. At this time, a balance sheet that's strong without any debt and has strengthened our financial results, we see that as a significant competitive advantage for Atlantica.

Speaker #1: Don't forget that we have a pipeline of initiatives and other operations that are being assessed, and with that, we can structure the framework in the best manner possible.

Speaker #1: At this time, our balance sheet is strong, without any debt, and has strengthened our financial results. We see that as a significant competitive advantage for Atlantica.

Speaker #1: Well, about your question, and thank you, Antonio, for that. The fact is, we sell corporate plans. When you sell the corporate plans, they have to be sold through a Brazilian taxpayer number, a CNPJ, and it has to be in good standing.

[Company Representative] (Bradesco Saúde): Well, about your question, and thank you, Antonio, for that. Well, fact is, we sell corporate plans. When you sell the corporate plans, it has to be sold through a Brazilian taxpayer number, a CNPJ, and it has to be in good standing. The National Health Agency has the policies for that. When we sell, we have all those elements. What we're seeing is that some are trying to bring in some theses into the judiciary to reinterpret the contracts that were, in fact, established, maintained, signed, and are set forth in law and regulations according to the ANS. We're very confident that we comply with ANS regulations. We have valid contracts according to the model that is comprehensive and widely used in the Brazilian market. In fact, we do have internal rules that we pose in order to limit our exposure to any type of different understanding as some that have happened.

Carlos Vinicius Pacheco: Well, fact is, we sell corporate plans. When you sell the corporate plans, it has to be sold through a Brazilian taxpayer number, a CNPJ, and it has to be in good standing. The National Health Agency has the policies for that. When we sell, we have all those elements. What we're seeing is that some are trying to bring in some theses into the judiciary to reinterpret the contracts that were, in fact, established, maintained, signed, and are set forth in law and regulations according to the ANS. We're very confident that we comply with ANS regulations. We have valid contracts according to the model that is comprehensive and widely used in the Brazilian market. In fact, we do have internal rules that we pose in order to limit our exposure to any type of different understanding as some that have happened.

Speaker #1: And the National Health Agency has the policies for that. So, when we sell, we have all those elements. What we're seeing is that some are trying to bring in certain theses into the judiciary to reinterpret the contracts that were, in fact, established, maintained, signed, and are set forth in law and regulations according to the ANS.

Speaker #1: So we're very confident that we comply with ANS regulations. We have valid contracts according to the model that is comprehensive and widely used in the Brazilian market.

Speaker #1: And in fact, we do have internal rules that we impose in order to limit our exposure to any type of different understanding, as some that have happened.

Speaker #1: So we protect ourselves in that sense. So at this time there's nothing really structural on that topic. Okay. Thank you very much. Very clear.

Carlos Vinicius Pacheco: We protect ourselves in that sense. At this time, there's nothing really structural on that topic. Okay. Thank you very much. Very clear. This is the end of our webcast for Bradsaúde results for Q2 2026. All our investor relations material are available on our website at saud3.com.br. Have a great day.

[Company Representative] (Bradesco Saúde): We protect ourselves in that sense. At this time, there's nothing really structural on that topic.

Antonio Cardoso: Okay. Thank you very much. Very clear.

Speaker #1: This is the end of our webcast for Bradsaude results for the second quarter of 2026. All our investor relations materials are available on our website at saud3.com.br.

Antonio Cardoso: This is the end of our webcast for Bradsaúde results for Q2 2026. All our investor relations material are available on our website at saud3.com.br. Have a great day.

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