Auna S.A. Q2 FY2025 earnings call

• Peru: Retained more patients from upstream services, OncoSalud had strong revenue and EBITDA, and achieved a record low oncology MLR.
• Mexico: Stabilized doctor and supplier relationships, with nascent volume recovery indicating adjustments are working, and OncoSalud has nationwide coverage.
• Colombia: EBITDA and margin improved, tactical measures to manage risks and improve cash flows were effective, and payer mix diversified away from intervene payers.

Mexico

• Revenue grew 5% year-over-year despite fewer surgeries and emergency treatments, due to higher average tickets and repricing of services. EBITDA growth was slower than revenue growth, but margin remained healthy at 32%. OncoSalud Mexico now has nationwide coverage.

Peru

• Revenue grew 5% mainly from increased surgery volumes, price increases, and improved service mix. OncoSalud revenue grew 7%, total planned membership up 10%, and oncology MLR improved.

Colombia

• Revenue flat year-over-year, but EBITDA increased 9% and margin expanded 1.4 percentage points. Tactical measures to manage risks and improve cash flows were effective, with lower provisions for impairment losses.

• Consolidated FX-neutral EBITDA grew 5%.
• Expect capacity utilization to recover in Mexico as physician recruitment and engagement improve.
• Committed to reducing leverage to 3x net debt to EBITDA.

• Factors beyond control such as tariff uncertainty in Mexico, impact of initiatives in Colombia on long-term financial position, and risks related to forward-looking statements.

Q: Update on Mexico physician/supplier headwinds and volume growth outlook A: Margins remain healthy, relationships stabilized, volumes expected to recover as physicians align Q: Colombia risk-sharing contracts and new player relationship A: Progress in collections, reduced concentration on intervene payers, increased risk-sharing models Q: Confidence in Mexico utilization increase despite market softness A: Model gaining traction, high complexity capitated models will drive growth Q: Mexico market share in Monterrey A: Over 30% of private sector beds, below 10% in high complexity services, aiming to increase Q: Effective tax rate normalization A: Stabilization of profit before tax and net profit, deferred tax benefits from past, expected rate 35%-38% Q: View on negative free cash flow A: Impacted by collections and one-time payments, cash flow expected to improve in second half