Oncoclinicas do Brasil Servicos Medicos S.A.

Oncoclinicas do Brasil Servicos Medicos S.A.

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Q2 FY2026 · Earnings Call TranscriptAugust 17, 2026

Operator

Good morning. Welcome to the audio conference of Oncoclínicas.

At this moment, all of our participants are connected only as listeners. Later, we will start the Q&A, question and answer session when instructions will be given for you to participate at that time.

Please remember that this audio conference is being recorded. I would like to pass the microphone to Mr.

Carlos Gil, CEO of the Oncoclínicas Group. Carlos Gil, please go ahead.

Carlos Gil

Good morning. Thank you for everyone's presence.

I would like to compliment all of our investors, analysts, and other participants joining us in the in the release of our results of the second quarter of 2026. The second quarter brought important challenges to the company and demanded quick decisions without opening without letting go of responsibility of each daily choice.

With that, we would like to During this period, we remained maintained the quality of our attendance of our service, of our care. In this period, we advanced in the normalization of the supply of medications, a a subject that we have treated with the most as a maximum priority since the beginning of this present liquidity liquidity crisis.

The supply of 150 million reais came in, which has helped us to retake the the care and without compromising the the resources of the company and the quality of our care. This is an important step in the in our plan of restructuring, operational restructuring, and our commitment with the equalization of the treatments and with the recovery of the of operational efficiency.

At this time, we're starting to show concrete results. We are generating positive cash, operating cash, and an adjusted EBITDA, which is again positive for the quarter.

This is an important signal that these measures are what's being implemented are producing the desired effects and that we're heading in the right direction. The We still have a long way to go, and recoup recovery will be gradual, but these first results give us the confidence to continue executing with discipline and consistency the plan that we have drawn up.

We also recognize that the results of this quarter were impacted by nonrecurring accounting events. These will not alter our conviction that the Oncoclínicas business is sustainable and will go through the necessary adjustments and and returning to profitability.

During this time, we've had constructive conversations with our creditors with the objective of reestablishing a chronogram for the amortization of our debts, which is consistent with our cash generation and our operational efficiency. In spite In spite of these challenges, we will remain sustained by the solid and ethical fundamentals.

Oncoclínicas maintains its position as a leader in oncology in Brazil, with a national a relevant national presence when is a an important part in the role of oncological care in the country. I would like to take advantage of this moment to reinforce that we count with the a a committed group of doctors who due to the natural dynamics of the dynamics of this, and we have not observed any important impacts in our capacity to give care to our patients.

We are We are well We are conscious that the rational allocation of capital, and this is exactly what we're doing in a concentrated way. Measures implemented in recent months continue building a sustainable base for the organic growth of our of our growth and the profitability and strengthening of the reputation of the company.

This will not happen from one day to the next, but it is being conducted with transparency and responsibility, maintaining the market complete well-informed about our most advanced most relevant advances. Now I would like to present our interim CFO, Isaac Quintino, who will give the financial results, details of the financial results for the quarter, second quarter of 2026.

Isaac Quintino

Thank you. Beginning with slide number 3, we present the principal highlights of the quarter and the adjustment accounting adjustments which have impacted the second quarter of 2026.

In the environment of gross revenue, as we mentioned in our recent most recent call, the company had a crisis of lack of supply of medications, especially in March and March, April, and part of May, which has been due to the pressure cash pressure which the company had been confronting in this first quarter in this first half of the year. The supply of medications was partially normalized starting in the celebration of the FIDC of 100 of 150 million up to 150 million reais.

Beyond this effect, we've had a an effect an accounting effect of PCLD during this quarter of approximately 72 million reais in that period, accounting for expenses from previous years. We were impacted by several recurring problems from payers, 170 million in glosas and non-payments from previous year.

In expenses, we had three one-off effects in this quarter totaling 184 million reais, made up of 78 million in impairment of the BTS from Goiânia, 76 million reference to the penalty for the rescission of the tract with on the property which the company was preparing for a unit on Avenida Angélica in São Paulo, and the 30.5 million reference to the provision of loss of credits of [Unimed?] [Leste Fluminense?]

. Next slide, slide 4, we can see the evolution of the number of procedures and the average ticket, especially in relations to the period of the lack of medications.

In the second quarter, we registered approximately 114,000 procedures, the volume which reflected the impact of the lack of medication which began in the first quarter and which took up a large part of the second quarter as well. However, on the other hand, the average ticket grew by 9.5% in relation to the second quarter of last year, which to the effects had having two effects: one was the repasse of the CMED of that period, and the second effect the interruption of the services being supplied from by several payers with whom we were not with whom we did not have commercial conditions that were favorable.

In the last 12 months, the number of procedures approximate total approximately 537,000 procedures, while the average ticket went to from 9,500 to 10,286 in this current in this period current period, a growth of 8 a growth of 8%. On slide number 5, gross revenue reached 1,227 million in the second quarter of 2026 compared to 1.67 million in the second quarter of 2025, a reduction of 25%, a direct reflection of the crisis of supply of medications, also the policy commercial policy of the company, which is more restrictive, adopted by the company, and also by the closing of the sale of several assets the company has done during the last 12 months, principally in the last 12 months.

In the vision of the last 12 months, the gross revenue reached 5.7 million reais, 5.7 compared to 4.8 in the period ending in the second quarter of last year. On slide number 7, the net revenue totaled in the second quarter compared to 1 billion 470 more million in the second period of 2026 2025, a reduction of 28%.

Here is an impact of 72 million reais, as I mentioned, with reference to the PCLD, a one-off in this quarter. As we always mention, and as is evidenced in the following slide, we would have a PCLD of 9% in the second quarter.

Have Excluding this one-off effect of approximately 72 million reais, the PCLD would have been 3.1% of gross revenue, a level which is closer to the historical level of the company, and therefore which indicates that the company has been observing signals of a recovery, a return of several indicators to more stable indicators of the past, such as this of 3% of PCLD. The effect natural effect on the indicators of the companies with this PCLD, with this nonpayment, is that the net profit that the the gross margin of the company went to 27.2% when excluded this nonrecurring effect of 72 million reais.

Looking at accounting numbers, we have 22.2% of gross margin, an improvement a relevant improvement compared to the last quarter. When we look at the two numbers together, normalized both in the first quarter as well as the second quarter, we've seen improvement and a stable a stabilization in this level of 27% in the last two quarters.

Looking at slide 9, operating expenses of the company, we had these three effects, as I mentioned. Excluding these three effects, the company has reduced its expenses from 226 million, not including the hospitals of the first quarter, to 226 25 million in the second quarter of 2026, an improvement of 20 million reais in the sequential table.

It's also important to mention that the company continues a series of initiatives in the reduction of expenses. We've done a a strong reduction in the personnel in the personal in our personnel in July and several other initiatives for the reduction of expenses occurring in the month of August and in the next coming months, which will bring the company to have better indexes of operating expenses in the next periods.

The company continues advancing on this front of of matching its the size of the company of the corporate expenses in relation to the size of our of the company's revenue. On slide 10, the adjusted EBITDA of the company, not including the effects of the PCLD, was 34.3 million, an improvement a sequential improvement.

However, when we look at the margin, excluding this effect of the PCLD, we reach a EBITDA of a margin of 9.6%, 9.5%, and therefore in a sequential line, this is very important, especially with the effect of this improvement in expenses which the company has been observing. On the next slide, the net loss of the company of 275 million reais is the effect a very relevant effect of the expenses, financial expenses of the company, which are still very high, even in the context of the extrajudicial recovery which the company in which we find ourselves at this moment, especially for the renegotiation of these debts to adequate make them more adequate to the the financial expenses to the size of the company and current obligations of the size of the company.

The next slide, the cycle of cap of working capital still which still has the noise from due to these renegotiations which are happening with the principal suppliers of the company. When we observe that in slide number 3 13, we can we can observe an improvement in the cash in operational cash flow of the company.

In this case, differently from the previous quarters, where there was a huge change in the point of view of anticipation of receivables and paying down of these anticipations of receivables, in this quarter, we have a photo more recurring photo of the operating cash of the company. This 158 million reais reflects the position of receivables of the company more normalized in our vision.

During the quarter, as there was a We had the the judicial decision issued by the company which protects the company from executions. However, it gives us a period for the nonpayment of interest and and principal on our debts, but does not did not cover the entire quarter.

Therefore, during that period which was not covered, the company had to pay 37.5 million reais in interest and had a number of principal payments as well. Excluding these two effects, we had a capex of 13.2 million this but much closer 13.3 million, which is much closer to normal as recurring for the company, much closer to the levels of maintenance of the company without growth projects or expansion projects.

This is a more recurring level in our vision. Finally, and no less important, on slide 14, position of the debt of the company, the net debt of the company of 3.4 billion reais, where 3.2 million 3.26 million are financial debts at the end of the first quarter of 2026, and 86 million of debts with acquisitions to pay.

With that, I end the expositive part of our presentation, and we will now open for question and answers.

Operator

Ladies and gentlemen, we will now start the question and answer session. If there are any questions, please raise your hand through the button that's available on the videoconference.

Reminding you again, to make a question, please raise your hand through the button that's available on the videoconference. We now close at this point in time the question and answer session.

I'd like to pass the word to Carlos Gil for his final considerations. Carlos, please go ahead.

Carlos Gil

I would like to thank all of you. Thank you for being with us here today, and wish you all a good week.

Thank you very much.

Operator

The audio conference of Oncoclínicas is now closed. We thank you for your participation.

Please have a good day, and thank you for using Voxcom.