Medical Education Landscape in Brazil - In 2025, Brazil is projected to have 635,706 physicians, equating to 2.98 professionals per 1,000 inhabitants[31] - Brazil will have 1.15 million physicians, a ratio of 5.25 per 1,000 inhabitants[32] - Afya is the leader in medical seats in Brazil, with 3,653 seats across 33 cities in 14 states, serving 25,733 medical students[77] Afya's Unique Ecosystem and Solutions - Afya's ecosystem includes medical schools, industry relationships, and solutions for medical practice, residency, and professional education[17] - Afya's Impact Project shows a 12% average increase in physician density in analyzed municipalities[45] - Afya's ecosystem has over 300,000 monthly users and 57 partnerships with the pharmaceutical industry[141] - Over 33% of physicians and medical students in Brazil use Afya's products through an integrated ecosystem[140] Continuing Education and Digital Behavior - Afya has expanded its continuing education program to 25 on-site hubs with over 70 courses[114] - 16% of physicians indicate they have reached the peak of their careers[60] - 84% of physicians indicate that they have not yet reached the peak of their careers[62] - 50% of physicians use digital tools for medical updates and news[65] Financial Performance and Capital Discipline - Afya reaffirmed its 2025 guidance for revenue and adjusted EBITDA[222] - Afya's track record includes the acquisition of 11 undergraduate assets and 8 medical practice solutions assets, with a total value of over R$4.5 billion invested since the IPO[229] - The company issued a new debenture of R$1.5 billion[245]

Financial Data and Key Metrics Changes - Net revenue increased by 16%, reaching R936 million, with adjusted EBITDA growing almost 24% year over year to R492 million, achieving a record margin of 52.5% [5][17][19] - Cash flow from operating activities rose by almost 10% to R470 million, reflecting a cash conversion rate of 96.8% [5][18] - Net income reached R257 million, marking a 23% growth year over year, with EPS of R2.79, also a 23% increase [5][19][20] Business Line Data and Key Metrics Changes - Undergrad segment net revenues increased over 17% to R827 million, with medical students growing 15% to almost 26,000 [12][16] - Continuing education segment net revenue rose almost 9% year over year to R71 million, with a notable 8% increase in B2B revenue [8][14] - Medical practice solutions segment saw a 14% growth in net revenue, reaching R42 million, driven by B2B contracts and active payers increasing to over 198,000 [8][15] Market Data and Key Metrics Changes - The ecosystem now includes over 370,000 active users, demonstrating substantial penetration among physicians and medical students in Brazil [8][16] - The company received a credit rating upgrade from Moody's from AAplus.br to AAA.br, reflecting strong growth and financial discipline [9][10] Company Strategy and Development Direction - The company focuses on expanding its educational systems and medical practice solutions, aiming to support students in becoming physicians and enhancing medical learning [21] - Strategic acquisitions, such as the Funiq acquisition, are expected to enhance operations and increase approved medical seats [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2025, maintaining guidance for the year despite strong margin performance [29][30] - The intake process for medical students was reported as healthy, with a strong brand recognition contributing to a favorable candidate-to-seat ratio [31][32] Other Important Information - The company achieved all IFC-defined targets for 2024, which will trigger a reduction in interest rates, reinforcing its commitment to social impact and financial discipline [10] - The company received its first ESG rating from MSCI, debuting with a solid BBB score, indicating strong performance in data privacy and security [10] Q&A Session Summary Question: What drove the strong EBITDA margin performance? - Management attributed the margin expansion to higher gross margins from undergrad and continuing education segments, along with operational efficiencies from restructuring [27][28] Question: Are there challenges in the intake process due to expanded medical course offerings? - Management reported a healthy intake process with strong brand recognition, noting around seven to eight candidates per seat [31][32] Question: Any significant changes in the competitive landscape affecting average ticket prices? - Management indicated that while the average ticket grew 4%, it was impacted by retention issues from last year, but they expect future increases to be higher [36][38] Question: What is the expectation for the medical practice solutions segment given the decrease in monthly active users? - Management noted a transitional decline due to the portal change but expects improvements as the new system stabilizes [40][42] Question: Clarification on the minimum tax under OECD Pillar Two rules? - Management explained that the new law introduces minimal taxation for multinational groups, and they are currently provisioning for this tax [49][50] Question: How is the company preparing for the SoftBank convertible debt deadline? - Management stated they are prepared with cash flow generation to handle potential early redemption of the debt [53][54]