Core Insights - Auna reported solid financial and operational performance in Peru and Colombia, while facing challenges in Mexico, indicating resilience in its integrated healthcare platform [3][4][6] Financial Performance - Consolidated Revenue increased by 1% in constant currency (FXN) but decreased by 1% year-over-year (YoY) to S/1,117 million, with local currency revenues growing by 9% in Peru and 4% in Colombia, offset by a 12% decline in Mexico [8][10] - Adjusted EBITDA decreased by 5% FXN and 7% YoY to S/232 million, with a margin of 20.8%, down from 22.1% YoY; Peru and Colombia saw increases of 15% and 18% in local currency, respectively, while Mexico experienced a 29% decline [8][11] - Net Income was S/53 million in 3Q25, down from S/101 million in 3Q24, with Adjusted Net Income at S/58 million compared to S/75 million in the prior year [13] Operational Highlights - In Peru, Oncosalud and Healthcare Services showed strong performance due to growth in memberships and pricing adjustments, with an improved Oncology Medical Loss Ratio (MLR) of 49.3% [4][8] - Colombia achieved double-digit growth in Adjusted EBITDA and expanded risk-sharing Prospective Global Payment models, enhancing profitability and cash generation [5][8] - Mexico's operations saw a second consecutive quarterly increase in surgeries and growth in oncology and cardiology services, but overall revenues and profitability declined due to sluggish demand and operational challenges [6][10] Debt and Capital Structure - Auna's leverage ratio remained stable at 3.6x Net Debt-to-Adjusted EBITDA, with a focus on capital allocation and a robust cash position; the company completed a USD765 million debt refinancing to extend maturities and reduce interest costs [7][8] Strategic Initiatives - The company is focused on recovering growth, rolling out the AunaWay initiative in Mexico, and expanding access to high-quality healthcare across Spanish-speaking Latin America [9][10]

Core Insights - Auna S.A. has entered a Memorandum of Understanding with Sojitz Corporation to explore joint business opportunities in the healthcare sector across Latin America, initially focusing on Mexico [1][2][3] - Auna plans to invest approximately US$500 million over the next three to five years to expand its integrated healthcare platform in Mexico [2] - The collaboration aims to leverage Auna's healthcare expertise and Sojitz's investment capabilities to enhance healthcare infrastructure and services in Latin America [2][4] Company Overview - Auna is a leading healthcare services provider in Latin America, operating in Mexico, Peru, and Colombia, with a focus on prevention and complex diseases [5] - As of June 30, 2025, Auna's network includes 31 healthcare facilities with a total of 2,333 beds and 1.4 million health plan members [5]

Core Insights - Auna S.A. has received a construction license for Torre Trecca, a high-rise outpatient treatment center in Peru, which will be rebuilt and operated under a public-private partnership with EsSalud [1] Company Summary - Auna S.A. is a leading healthcare services provider in Latin America, with operations in Mexico, Peru, and Colombia [1] - The construction of Torre Trecca is part of Auna's ongoing collaboration with EsSalud, Peru's Social Security System [1] Industry Context - The project reflects the growing trend of public-private partnerships in the healthcare sector in Latin America, aimed at improving healthcare infrastructure and services [1]

Core Insights - Auna S.A. has successfully closed a US$765 million debt refinancing, which enhances its capital structure significantly [1] - The refinancing extends debt maturities, reduces interest expenses, and improves cash flow generation [1] - The company aims to utilize the improved financial position to invest in various strategic growth initiatives [1] Company Overview - Auna S.A. is a leading healthcare services provider operating in Latin America, specifically in Mexico, Peru, and Colombia [1] - The company is collaborating with Oncosalud S.A.C. as a co-issuer in this refinancing deal [1]

Core Points - Auna S.A. has successfully priced U.S.$365 million of 8.750% Senior Secured Notes due 2032, which will be co-issued with Oncosalud S.A.C. [1] - The notes will be used to fund a tender offer for Auna's existing 10.000% Senior Secured Notes due 2029 and to prepay existing indebtedness [2] Company Overview - Auna is a leading healthcare platform in Latin America, operating in Mexico, Peru, and Colombia, focusing on prevention and complex diseases [4] - Founded in 1989, Auna has developed a large healthcare network with 31 facilities, including hospitals and wellness centers, serving 1.4 million health plan members [4]

Core Viewpoint - Auna S.A., a Latin American healthcare company, is planning to offer senior secured notes in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933 [1] Group 1 - Auna S.A. operates in Mexico, Peru, and Colombia [1] - The company is collaborating with Oncosalud S.A.C. as co-issuers for the offering of the notes [1]

Core Insights - Auna S.A. is a public limited liability company based in Luxembourg, operating in the Latin American healthcare sector with a presence in Mexico, Peru, and Colombia [1]. Company Overview - Auna S.A. is registered with the Luxembourg Trade and Companies Register under number B267590 [1]. - The company focuses on providing healthcare services in Latin America, specifically targeting markets in Mexico, Peru, and Colombia [1].

Core Insights - Auna S.A. is expanding its insurance network in Mexico, enhancing its national presence in the healthcare sector [1] - The company aims to engage with debt and equity investors to support its growth initiatives [1] Company Expansion - Auna S.A. is a leading healthcare services provider in Latin America, with operations in Mexico, Peru, and Colombia [1] - The expansion includes partnerships with prominent healthcare institutions such as Médica Sur in Mexico City, San Javier in Guadalajara, Simnsa in Tijuana, and Centros Médicos [1]

Financial Data and Key Metrics Changes - Consolidated FX neutral EBITDA grew by 5% year over year, indicating a recovery trajectory [6][17] - Adjusted EBITDA increased by 5% in FX neutral terms, while it decreased by 3% on an as-reported basis, with the margin remaining just over 22% [17][18] - Adjusted net income increased six times year over year, positively impacted by FX neutral EBITDA growth and a favorable FX variance [20] Business Line Data and Key Metrics Changes - Revenue in Mexico grew by 5% year over year, driven by higher average ticket prices despite fewer surgeries and emergency treatments [10] - Peru's healthcare services revenue grew by 5%, primarily due to increased surgery volumes and price increases [12] - Colombia's revenue remained flat year over year, but EBITDA increased by 9%, with a margin expansion of 1.4 percentage points [13][16] Market Data and Key Metrics Changes - Total capacity utilization decreased by 2.5 percentage points to 64%, mainly due to intentional growth management in Colombia [9] - In Mexico, capacity utilization declined due to lower surgery volumes and emergency visits, but improvements in physician recruitment are expected to aid recovery [9] - The oncology MLR in Mexico fell below 50%, reflecting efficiencies gained in pharmaceutical costs [9] Company Strategy and Development Direction - The company is focused on modernizing and integrating patient care to improve medical outcomes and drive long-term shareholder value [24] - There is an emphasis on risk-sharing models and diversifying the payer mix in Colombia to safeguard cash flows and operational stability [26] - The company remains optimistic about the recovery of volumes in Mexico and the potential of its oncology offerings [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in Mexico and Colombia but believes operational adjustments will lead to improved performance [25] - The near-term growth outlook is uncertain due to trade and tariff issues in Mexico, but the Peru business continues to show strong growth potential [26] - Management expects volumes in Mexico to recover as physician relationships stabilize and align with the company's model [32][40] Other Important Information - The company refinanced over $62 million of short-term debt, improving its maturity profile [22] - Cash position decreased by 13% compared to the first quarter, but remains healthy [20] Q&A Session Summary Question: Update on Mexico's physician and supplier situation - Management reported stabilization in physician relationships and expects volume growth to improve, although the transition may take time [32][34] Question: Future of oncology MLR - Management indicated that MLR is expected to remain within a predictable range, with continuous cost containment and price adjustments [36] Question: New agreements in Colombia - Management confirmed progress in collections and a decrease in provisions, with an increase in risk-sharing contracts contributing to revenue growth [48] Question: Confidence in utilization increase in Mexico - Management believes the model is gaining traction and anticipates recovery in volumes despite current market softness [52] Question: Market share in Monterrey - Management stated that they represent over 30% of private sector beds in Monterrey and aim to increase their market share in high complexity services [56][58] Question: Normalization of effective tax rate - Management explained that the effective tax rate has stabilized due to consistent profit before tax and net profit, projecting a rate of around 35% to 38% going forward [60][62] Question: Negative free cash flow after interest costs - Management noted that organic free cash flow is expected to improve in the second half of the year, covering interest costs [62]

Financial Performance - Auna's consolidated revenue for Q2 2025 was S/1,094 million, a decrease of 2% year-over-year (YoY), but an increase of 4% on a foreign exchange neutral (FXN) basis[19] - Adjusted EBITDA for Q2 2025 was S/241 million, a decrease of 3% YoY, but an increase of 5% FXN, with a flat margin of 211% YoY[15,17,19] - Adjusted Net Income increased significantly YoY, showing a +6x increase[46] - The Leverage Ratio remained flat at 36x[17] Segment Performance - Healthcare Services Mexico revenue in Q2 2025 was S/274 million, a decrease of 9% YoY, but an increase of 5% in local currency[25] - Healthcare Services Peru & Oncosalud Peru revenue in Q2 2025 was S/474 million, an increase of 8% YoY[29] - Healthcare Services Colombia revenue in Q2 2025 was S/346 million, a decrease of 8% YoY, but remained flat in local currency[33] Debt and Cash Flow - The company successfully offered an additional $621 million in aggregate principal amount of senior secured notes due 2029 in May 2025[54] - End-of-period cash stood at S/175 million[50] - Consolidated debt was S/3,702 million (US$1,045 million)[54,58] Operational Metrics - Oncosalud Peru plan memberships increased by 10% YoY, reaching 1,388,579 members[19,101] - Total bed capacity across the healthcare network was 2,224 beds[19]