Afya Ltd (AFYA) 2023 Q2 法說會逐字稿

Thank you for joining us for Afya's Second Quarter 2023 Conference Call. Today, I'm here with Afya's CEO, Virgilio Gibbon; and Luis Andre Blanco, our CFO. During this presentation, our executives will make forward-looking statements. Forward-looking statements can be related to future events, future financial operating performance, known and unknown risks, uncertainties and other factors that may cause Afya's actual results to differ materially from those contemplated by these forward-looking statements.

感謝您參加 Afya 2023 年第二季度電話會議。今天，我和 Afya 的首席執行官 Virgilio Gibbon 一起來到這裡。和我們的首席財務官路易斯·安德烈·布蘭科。在本次演示中，我們的高管將做出前瞻性陳述。前瞻性陳述可能與未來事件、未來財務運營業績、已知和未知風險、不確定性以及其他可能導致 Afya 的實際結果與這些前瞻性陳述預期的結果存在重大差異的因素有關。

Forward-looking statements in this presentation include, but are not limited to, the statements related to the business and financial performance, expectations and guidance for future periods or expectations regarding the company's strategic product initiatives, its related benefits and our expectations regarding the market as well as the potential impact from COVID-19. These risks include those fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available to us as of the date hereof. You should not rely on them as predictions of future events, and we disclaim any obligation to update any forward-looking statements, except as required by law.

本演示文稿中的前瞻性陳述包括但不限於與業務和財務業績相關的陳述、對未來時期的預期和指導或對公司戰略產品計劃、相關利益的預期以及我們對市場的預期以及COVID-19 的潛在影響。這些風險包括我們向美國證券交易委員會提交的文件中詳細描述的風險。本演示文稿中的前瞻性陳述基於截至本新聞稿發布之日我們所掌握的信息。您不應依賴它們作為對未來事件的預測，並且我們不承擔更新任何前瞻性陳述的義務，除非法律要求。

In addition, management may reference non-IFRS financial measures on this call. These measures are not intended to be considered in isolation or a substitute of the results prepared in accordance with IFRS. This presentation has reconciled these non-IFRS financial measures to the most directly comparable IFRS financial measures.

此外，管理層可能會在此次電話會議上參考非國際財務報告準則的財務指標。這些措施不應被孤立地考慮或替代根據國際財務報告準則編制的結果。本演示文稿已將這些非國際財務報告準則財務指標與最直接可比的國際財務報告準則財務指標進行了調整。

Let me now turn the call over to Virgilio Gibbon, Afya's CEO.

現在讓我將電話轉給 Afya 首席執行官 Virgilio Gibbon。

Thank you, Renata, and thanks, everyone, for joining us today for our second quarter and first half conference call for 2023 results. For us in Afya, this quarter results reinforce that our strategy has been successful, marked by the consistent growth of our operational and financial results. Once again, we are proud to present the strong execution of our unique business model, combining high growth in all 3 segments profitability and strong cash generation, proving its resilience.

謝謝 Renata，也謝謝大家今天參加我們的 2023 年第二季度和上半年業績電話會議。對於 Afya 來說，本季度的業績證明我們的戰略是成功的，其標誌是我們的運營和財務業績持續增長。我們再次自豪地展示我們獨特業務模式的強大執行力，將所有三個細分市場盈利能力的高增長和強勁的現金生成能力結合起來，證明了其彈性。

During this presentation, I will first run through some main strategic topics such as our performance highlights, the successful business execution within our 3 segments, 2023 guidance, recent awards recognition, the new brand strategy and to finalize our future expectations. Further on, Luis Blanco will shed some color over our financial and operational overview.

在本次演講中，我將首先介紹一些主要戰略主題，例如我們的業績亮點、三個細分市場內的成功業務執行、2023 年指導、最近的獎項認可、新品牌戰略，並最終確定我們的未來期望。接下來，路易斯·布蘭科 (Luis Blanco) 將對我們的財務和運營概況進行一些闡述。

So moving now to Page #3. Let's start with our quarter highlights. Adjusted net revenue increased 24% year-over-year, reaching BRL 712 million, followed by an adjusted EBITDA growth of more than 22%, reaching BRL 268 million with a margin of 38%. We also reported a record cash flow from operating activity of BRL 566 million, an increase of 26% year-over-year, boosted by the solid operational results of the company with a cash conversion of 99% and a solid cash position of BRL 741 million at the end of the quarter. Adjusted net income was BRL 132 million, a growth of 11% year-over-year, with an EPS of BRL 1.42 representing a growth of 12%, even considering a higher net debt and interest rate period during this quarter over last year.

現在轉到第 3 頁。讓我們從季度亮點開始。調整後淨收入同比增長 24%，達到 7.12 億雷亞爾，調整後 EBITDA 增長超過 22%，達到 2.68 億雷亞爾，利潤率為 38%。我們還公佈了創紀錄的經營活動現金流量 5.66 億雷亞爾，同比增長 26%，這得益於公司穩健的經營業績，現金轉換率為 99%，現金狀況穩定，達到 741 雷亞爾本季度末為100 萬元。調整後淨利潤為 1.32 億雷亞爾，同比增長 11%，每股收益為 1.42 雷亞爾，增長 12%，即使考慮到本季度淨債務和利率高於去年同期。

Moving to our operational updates of the quarter. We have reached 3,113 operating seats an increase of over 25% over second quarter last year, with the beginning of 4 Mais Médicos campuses, along with organic seat expansion in Itabuna and also the acquisition of UNIT Alagoas and FITS Jaboatão. In addition, our number of underground medical student has reached almost 21,000 representing an 18% growth compared to the second quarter of previous year.

接下來是我們本季度的運營更新。隨著 4 個 Mais Médicos 校區的啟用、伊塔布納的有機席位擴張以及對 UNIT Alagoas 和 FITS Jaboatão 的收購，我們的運營席位已達到 3,113 個，比去年第二季度增長了 25% 以上。此外，我們的地下醫學生人數已達到近21,000人，比去年第二季度增長了18%。

Once again, we saw great results for Continuing Education present a strong net revenue growth of 50% year-over-year. Also, we are happy to say that Afya reported great results in the digital health service segment, which ended the quarter growing 28% in revenues year-over-year. These results materialize the great opportunity ahead in Digital Services, and it is explained by the stronger impact on B2B engagements with more than 100 contracts with pharmaceutical industry companies and the continued ramp-up on B2P contracts, business to physicians. Our ecosystem reached almost 282,000 active users a growth of 6% year-over-year. This represents around 34% of the Brazilian physicians and medical students market.

我們再次看到繼續教育的巨大成果，淨收入同比強勁增長 50%。此外，我們很高興地說，Afya 在數字醫療服務領域取得了出色的業績，本季度收入同比增長 28%。這些結果體現了數字服務領域未來的巨大機遇，這可以解釋為與製藥行業公司簽訂的 100 多份合同對 B2B 業務的影響更大，以及 B2P 合同、醫生業務的持續增長。我們的生態系統擁有近 282,000 名活躍用戶，同比增長 6%。這約佔巴西醫生和醫學生市場的 34%。

Moving on to Slide #4. We'll talk about our solid business execution within our 3 business units. Starting with the Undergrad segment, we saw an important movement throughout the quarter, such as higher tickets and medicine courses with almost 9% increase in medicine tuition. The maturation of medical seats, the consolidation of UNIT and FITS acquisition and 64 additional seats in Faculdade Santo Agostinho, in the city of Itabuna. We are delighted to present that the most significant growth in terms of revenue came from the Continuing Education segment with 50% growth year-over-year due to the robust intake process, new campuses and course maturation.

繼續看幻燈片 #4。我們將討論我們 3 個業務部門內可靠的業務執行力。從本科生部分開始，我們在整個季度看到了一個重要的變化，例如更高的票價和醫學課程，醫學學費增加了近 9%。醫療席位的成熟、UNIT 和 FITS 收購的整合以及伊塔布納市 Faculdade Santo Agostinho 的 64 個額外席位。我們很高興地宣布，由於強勁的招生流程、新校區和課程成熟，收入增長最顯著的是繼續教育部門，同比增長 50%。

On our Digital Services segment, we ended the quarter with a revenue increase of 28% compared to last year. This result reinforces the opportunity ahead in Digital Services and is explained by the ramp-up in B2B engagements with new contracts in pharmaceutical industry and the continuous ramp-up in B2B contract. And it's with great excitement that we present to you Rx Insights, the new data intelligence platform that will allow pharmaceutical industry companies a real-time, in-depth look at physician prescriptive behavior.

在我們的數字服務部門，本季度結束時，我們的收入比去年增長了 28%。這一結果強化了數字服務領域未來的機遇，並可以通過製藥行業新合同的 B2B 業務增加以及 B2B 合同的持續增加來解釋。我們非常興奮地向您展示 Rx Insights，這是一個新的數據智能平台，它將允許製藥行業公司實時、深入地了解醫生的處方行為。

In the next slide, we are reaffirming our guidance for 2023, which considers the successfully concluded acceptance of new medical students, ensuring 100% occupancy in all of its medical schools. Considering the above factors, the guidance for 2023 is defined as shown in the chart. Adjusted net revenue is expected to be between BRL 2.75 billion and BRL 2.85 billion, and adjusted EBITDA is expected to be between BRL 1.1 billion and BRL 1.2 billion excluding any acquisition that may be concluded after the issuance of the guidance and also consider the increase of FG-FIES contribution rate.

在下一張幻燈片中，我們重申了 2023 年的指導方針，其中考慮了新醫學生的成功錄取，確保所有醫學院的入住率達到 100%。考慮到上述因素，2023 年的指引定義如下圖所示。調整後淨收入預計在27.5 億雷亞爾至28.5 億雷亞爾之間，調整後EBITDA 預計在11 億雷亞爾至12 億雷亞爾之間，不包括指南發布後可能完成的任何收購，並考慮增加FG-FIES 貢獻率。

Under the new FIES program, Higher Education Finance Fund introduced in 2018, a retention is applied to the amount paid by the program to cover the delinquencies of the financed students. There was a transition rule that captured the retention at certain levels until 2022. From 2023, the limit was lifted and the retention was updated according to the delinquency per education entity for those FIES students that entered the amortization phase. For Afya, the expected impact on the increase of the FG-FIES in 2023 is around BRL 24 million, which was already considered when we issued the 2023 guidance. In other words, after 2023 net revenues and adjusted EBITDA will be almost 4x higher than in 2019, the year of our IPO. Furthermore, the cash conversion rate will continue to perform above 90%, showing our capacity to deliver strong growth, expanding our profitability and cash generation. Once again, we are guiding another strong round ahead, aiming the top of the year guidance, improving asset resilience and ability to keep delivering solid results with a high predictability.

根據新的 FIES 計劃，即 2018 年推出的高等教育財政基金，該計劃支付的金額將被保留，以彌補受資助學生的拖欠款項。有一條過渡規則規定了 2022 年之前一定水平的保留。從 2023 年起，限制被取消，並根據每個教育實體的拖欠情況更新進入攤銷階段的 FIES 學生的保留。對於 Afya 來說，2023 年 FG-FIES 增加的預期影響約為 2400 萬雷亞爾，我們在發布 2023 年指南時已考慮到這一點。換句話說，2023 年之後的淨收入和調整後 EBITDA 將比 2019 年（我們 IPO 當年）高出近 4 倍。此外，現金轉化率將繼續保持在90%以上，這表明我們有能力實現強勁增長，擴大我們的盈利能力和現金生成能力。我們將再次引導未來的另一輪強勁增長，目標是實現年度最高指引，提高資產彈性和以高可預測性繼續交付堅實業績的能力。

Now moving to Slide #6. I'm really proud to announce that Afya's remarkable performance garnered 3 significant awards within the second quarter. First one, Valor Econômico's Best Education Company in Innovation. Second one, another prestigious recognition for being the best company in the education sector, the Valor 1000 awards; and third, the Executivo de Valor award that I was recognized in the education sector in June. We are very proud of all these achievements as they reflect the work and passion of our thousands of employees around an unique vision to transform health together with those who have medicine as a vocation.

現在轉到幻燈片 #6。我非常自豪地宣布，Afya 的出色表現在第二季度獲得了 3 個重要獎項。第一個是 Valor Economico 的最佳創新教育公司。第二個是教育領域最佳公司的另一項享有盛譽的獎項——Valor 1000 獎；第三，六月份我在教育界獲得了Executivo de Valor獎。我們對所有這些成就感到非常自豪，因為它們反映了我們數千名員工的工作和熱情，圍繞著與以醫學為職業的人們一起改變健康的獨特願景。

On the next slide, I'd like to talk about Afya's brand strategy and its new architecture. We recognize the importance of incorporating the value we create into our brand and the importance of strengthening and integration that reflects our sense of unity and mission. We already are the leaders and pioneers of a solid and profitable business. Now is the time to be perceived as such. We have almost 282,000 physicians and medical students using our digital solution, but only some of them know the brand Afya. This brings us a huge opportunity to become the reference in solution for medicine, to hook them up, improve the engagement cross-sell and upsell along the journey. Therefore, one of our main objectives is to make Afya hub known and relevant to students, physician, health care companies and society becoming the top of mind and most recurrent brand by physicians throughout their journey. With this new logo, we review Afya's brand architecture to no longer let the value of Afya we fragmented or diluted, to consolidate all this value under a single brand, simplifying the comprehension of our portfolio, avoiding brand conflicts and working towards strengthening Afya as the one-stop shop for physicians.

在下一張幻燈片中，我想談談 Afya 的品牌戰略及其新架構。我們認識到將我們創造的價值融入我們品牌的重要性，以及體現我們團結感和使命感的加強和整合的重要性。我們已經成為穩固且盈利業務的領導者和先驅。現在是被這樣看待的時候了。我們有近 282,000 名醫生和醫學生使用我們的數字解決方案，但只有其中一些人知道 Afya 品牌。這給我們帶來了一個巨大的機會，可以成為醫學解決方案的參考，吸引他們，提高整個旅程中的交叉銷售和追加銷售的參與度。因此，我們的主要目標之一是讓 Afya 中心為學生、醫生、醫療保健公司和社會所熟知並與之相關，成為醫生在整個旅程中最先想到和最常出現的品牌。通過這個新標誌，我們重新審視了Afya 的品牌架構，不再讓Afya 的價值被我們割裂或稀釋，而是將所有這些價值整合到一個品牌下，簡化我們對產品組合的理解，避免品牌衝突，並努力加強Afya 作為為醫生提供一站式服務。

So to finalize, I would like to talk about our future expectations. When we analyze our goals for 2028, 6 years ahead and consider our 3 business segments, we have a very ambitious plan ahead. With Undergrad, we have 3 avenues for growth. First, by maturing the existing seats; second, through organic growth of half of the requested seats that have been asked to the Ministry of Education. And last, through acquisition. The fact that Undergrad is our biggest cash generator, allows us to maintain our goal of constant growth with the plan to increase our available seats by 200 per year through acquisition. Considering the increase in inorganic and organic seats, we expect to reach a total capacity of more than 32,000 students and capture 15% of the market share in terms of private seats by 2028, which represents a growth of over 2x in top line. It's worth remembering that Afya manages to extract significant value from every acquisition.

最後，我想談談我們對未來的期望。當我們分析未來 6 年 2028 年的目標並考慮我們的 3 個業務部門時，我們有一個非常雄心勃勃的計劃。對於本科生，我們有 3 種成長途徑。首先，使現有席位成熟；其次，通過向教育部申請的一半席位的有機增長。最後，通過收購。事實上，Undergrad 是我們最大的現金來源，這使我們能夠保持持續增長的目標，併計劃通過收購每年將可用席位增加 200 個。考慮到無機和有機座位的增加，我們預計到 2028 年，學生總容量將超過 32,000 名，並佔據私人座位 15% 的市場份額，這意味著收入增長超過 2 倍。值得記住的是，Afya 設法從每次收購中獲取巨大價值。

In Continuing Education, which is the next natural step for those who study medicine, we have a product that has shown great potential and despite being significantly impacted by COVID-19 pandemic, it has experienced an expansion that has exceeded our expectation and still has a lot of room for growth. Through strong top line growth, ramp up of our new units and additional 50 new courses, we expect to reach BRL 440 million of net revenue by 2028, 4x higher than the figures seen in 2022.

在繼續教育方面，這是學習醫學的人的下一個自然步驟，我們有一個產品顯示出巨大的潛力，儘管受到COVID-19 大流行的嚴重影響，但它的擴張超出了我們的預期，並且仍然具有很大的成長空間。通過強勁的收入增長、新部門的增加和額外的 50 個新課程，我們預計到 2028 年淨收入將達到 4.4 億雷亞爾，比 2022 年的數字高出 4 倍。

Afya Digital Services is where we can expand beyond our physical structure and reach a vast number of physician with tools that offer productivity, assertiveness and up-to-date information. Our strength in this segment lies in serving as a bridge between the pharmaceutical industry payers and providers and a vast community physician at various stage of their journey. Our goal for 2028 is to increase penetration and engagement in B2P, business-to-physician sector and consolidate our B2B offerings, reaching a net revenue of BRL 1.2 billion in Digital Services by 2028.

Afya 數字服務是我們可以超越物理結構並通過提供生產力、自信和最新信息的工具接觸到大量醫生的地方。我們在這一領域的優勢在於充當製藥行業支付者和提供者與處於不同階段的廣大社區醫生之間的橋樑。我們的 2028 年目標是提高 B2P、企業對醫生領域的滲透率和參與度，並鞏固我們的 B2B 產品，到 2028 年數字服務淨收入達到 12 億雷亞爾。

To summarize, we intend to grow more than 2x 2022 net revenue in Undergrad by 2028, 4x in Continuing Education and over 6x in the Digital segment. This means that Afya will almost triple its net revenue between 2022 and 2028. Despite being ambitious goals, they are achievable supported by strong execution, focus on the medical journey and a dedicated team.

總而言之，我們計劃到 2028 年本科生淨收入增長超過 2022 年的 2 倍，繼續教育增長 4 倍，數字領域增長超過 6 倍。這意味著Afya 在2022 年至2028 年間其淨收入將增加近兩倍。儘管目標雄心勃勃，但在強有力的執行力、對醫療旅程的關注和敬業的團隊的支持下，這些目標是可以實現的。

I will now turn the call over to Luis Blanco, Afya's CFO, to give more color on the financial and operational metrics. Thank you.

現在，我將把電話轉給 Afya 首席財務官路易斯·布蘭科 (Luis Blanco)，以提供有關財務和運營指標的更多信息。謝謝。

Thank you, Virgilio, and good evening, everyone. Moving to Slide #10 to discuss the financial highlights of the second quarter. It is with much satisfaction that I presented another strong quarter results for Afya. Adjusted net revenues for the quarter was up 24% year-over-year to BRL 712 million, reflecting the maturation of medical seats, higher tickets in medicine courses, the impressive growth from Continuing Education, consolidation of Digital Service and the integration of new acquisitions. For the 6-month period, adjusted net revenue was BRL 1,422 million, an increase of 24% over the same period of the last year. Adjusted EBITDA for the quarter increased 22% to BRL 268 million, while the adjusted EBITDA margin decreased 50 basis points to 38%.

謝謝你，Virgilio，大家晚上好。轉到幻燈片 #10，討論第二季度的財務亮點。我非常滿意地展示了 Afya 另一個強勁的季度業績。本季度調整後淨收入同比增長 24%，達到 7.12 億雷亞爾，反映出醫療席位的成熟、醫學課程票價的上漲、繼續教育的顯著增長、數字服務的整合以及新收購的整合。 6個月期間，調整後淨收入為14.22億雷亞爾，比去年同期增長24%。該季度調整後 EBITDA 增長 22%，達到 2.68 億雷亞爾，而調整後 EBITDA 利潤率下降 50 個基點，至 38%。

For the 6-month period, adjusted EBITDA was BRL 598 million, an increase of 22% over the same period of the prior year with an adjusted EBITDA margin decrease of 80 basis points in the same period. The adjusted EBITDA margin reduction is due to the mix of net revenues with higher participation of the Digital and Continuing Education segments and the consolidations of 4 new Mais Médicos campuses that -- operations started on the third quarter of 2022 and UNIT Alagoas and FITS Jaboatão dos Guararapes, which are performing better than expected, but still present lower margins when compared to the integrated companies.

前六個月期間，調整後 EBITDA 為 5.98 億雷亞爾，較上年同期增長 22%，同期調整後 EBITDA 利潤率下降 80 個基點。調整後的 EBITDA 利潤率下降是由於淨收入與數字和繼續教育部門的更高參與度以及 2022 年第三季度開始運營的 4 個新 Mais Médicos 校區以及 UNIT Alagoas 和 FITS 的合併所致Jaboatão dos Guararapes 的業績好於預期，但與綜合公司相比，利潤率仍然較低。

Moving to the next slide. Cash flow from operating activities for the semester was 26% higher year-over-year, totaling BRL 566 million, resulting in a strong cash conversion ratio of 99%. Adjusted net income for the second quarter of 2023 was BRL 132 million, an increase of almost 11% over the same period of the prior year. Even with the higher interest rate year-over-year, and an increase in debt with the acquisitions of UNIT Alagoas and FITS Jaboatão dos Guararapes, our adjusted EPS kept increasing due to operational leverage reaching in the BRL 1.42 in the second quarter.

轉到下一張幻燈片。本學期經營活動現金流量同比增長 26%，總計 5.66 億雷亞爾，現金轉化率高達 99%。 2023年第二季度調整後淨利潤為1.32億雷亞爾，比上年同期增長近11%。儘管利率同比較高，且收購 UNIT Alagoas 和 FITS Jaboatão dos Guararapes 後債務有所增加，但由於第二季度運營槓桿達到 1.42 巴西雷亞爾，我們的調整後每股收益仍持續增長。

Moving to Slide #12 for discussions of key operational metrics by business units. Starting with the Undergrad segment, our number of medical students grew 18% year-over-year, reaching almost 21,000 students with approved medical seats increasing nearly 15% year-over-year to 3,163 approved seats. Considering additional organic and inorganic seats increase, we expect to achieve a capacity of more than 32,000 Undergrad medical students in 2028. With our net average ticket increasing almost 9% year-over-year for medical school, we've reached BRL 1,616 million of combined tuition fees up from BRL 1,310 million from the prior year, an increase of 23% for the 6-month period. Regarding revenue mix, 78% of these are derived from medical school students and 90% from health-related courses.

轉到幻燈片 #12，討論業務部門的關鍵運營指標。從本科生部分開始，我們的醫學生人數同比增長 18%，擁有批准的醫學席位的學生人數達到近 21,000 名，同比增長近 15%，達到 3,163 個批准的席位。考慮到有機和無機席位的增加，我們預計到 2028 年可容納超過 32,000 名本科醫學生。隨著我們醫學院的淨平均票價同比增長近 9%，我們已達到 16.16 億雷亞爾。學費合計比上一年增加了13.1 億雷亞爾，6 個月期間增長了23%。就收入構成而言，其中 78% 來自醫學院學生，90% 來自健康相關課程。

On the next page, I will present our Continuing Education metrics. As said before, we saw another impressive growth from our Continuing Education segment, which reported a strong intake process, increasing the number of students by 31% year-over-year. In the quarter, net revenues grew almost 50% when compared to the same period of the prior year. And for the 6-month period, we saw an increase of 48%, reaching a net revenue of BRL 71 million. This recovery is due to the better performance of Afya Educacao Medica, mainly related to the robust intake process and course maturation.

在下一頁上，我將介紹我們的繼續教育指標。如前所述，我們的繼續教育部門再次取得了令人印象深刻的增長，該部門的招生進程強勁，學生人數同比增加了 31%。本季度淨收入與去年同期相比增長近 50%。在 6 個月期間，我們的淨收入增長了 48%，達到 7100 萬雷亞爾。這一複蘇得益於 Afya Educacao Medica 的更好表現，主要與強勁的攝入過程和課程成熟有關。

Moving to Slide #14, I will discuss the Digital Service operational metrics. On the first graph, you can see our total active payers, which are the ones that generate revenues in B2P. With a continuous growth trend, so far, in this quarter, we have reached 270,000 (sic) [207,000] paying users, an increase of 8% to the same period of 2022. As you can see in the second graph, our ecosystem reached almost 282,000 monthly active users, representing around 34% of all medical students and physicians in Brazil, as Virgilio said before.

轉向幻燈片 #14，我將討論數字服務運營指標。在第一個圖表中，您可以看到我們的活躍付款人總數，即在 B2P 中產生收入的付款人。呈持續增長趨勢，到目前為止，本季度我們的付費用戶數量已達到270,000（原文如此）[207,000]，比2022 年同期增長了8%。正如您在第二張圖中看到的，我們的生態系統達到了正如 Virgilio 之前所說，每月有近 282,000 名活躍用戶，約佔巴西所有醫學生和醫生的 34%。

And finally, our 2 last graphs we can see our Digital Service net revenues, which for the quarter increased over 28%, reaching BRL 54 million. And regarding the 6-month period increased by almost 24% year-over-year. The organic growth is a combination of the start of B2B [segments] with pharmaceutical companies and the expansion of the active payers in B2P. In addition, since 2022, we've started to break down our Digital Service net revenue within B2P and B2B segments. So, from the BRL 111 million of Digital Service net revenue in the first half of 2023, more than BRL 91 million came from B2P and almost BRL 20 million came from the B2B. B2B strategy holds a huge potential and still ramping up.

最後，在最後兩張圖表中，我們可以看到我們的數字服務淨收入，本季度增長超過 28%，達到 5400 萬雷亞爾。 6 個月期間同比增長近 24%。有機增長是製藥公司 B2B [細分市場] 的啟動和 B2P 活躍支付者擴張的結合。此外，自 2022 年以來，我們開始細分 B2P 和 B2B 細分市場中的數字服務淨收入。因此，在 2023 年上半年 1.11 億雷亞爾的數字服務淨收入中，超過 9100 萬雷亞爾來自 B2P，近 2000 萬雷亞爾來自 B2B。 B2B 戰略擁有巨大的潛力，並且仍在不斷發展。

And now moving to my 3 last slides, I will discuss our cash and net debt positions, also giving more color on our cost of tax. Cash and cash equivalents at the end of this quarter were BRL 741 million, an increase of 20% over second quarter 2022 and an increase of 2.6% over the first quarter 2023. In this quarter, net debt totaled BRL 2.4 billion, a decrease of 1.3% compared to the first quarter 2023. The increase of BRL 623 million when compared with the fourth quarter 2022 was mainly due to the BRL 825 million UNIT Alagoas and FITS Jaboatão acquisition closed in January 2023, which was partially offset by the free cash flow generation in the first half of 2023 as we can look closely on the next page.

現在轉到我的最後三張幻燈片，我將討論我們的現金和淨債務狀況，並對我們的稅收成本進行更多說明。本季度末現金和現金等價物為 7.41 億雷亞爾，比 2022 年第二季度增長 20%，比 2023 年第一季度增長 2.6%。本季度淨債務總額為 24 億雷亞爾，減少與2023 年第一季度相比增長1.3%。與2022 年第四季度相比增加6.23 億雷亞爾，主要是由於2023 年1 月完成的UNIT Alagoas 和FITS Jaboatão 收購交易價值8.25 億雷亞爾，部分被免費我們可以在下一頁仔細觀察2023 年上半年的現金流生成情況。

In this slide, I presented the net debt reconciliation for 2023. The cash flow from operation activities was allocated to income tax and lease payments, CapEx activities and for the service of the financial debt. Even considering that we had executed part of our share buyback in this quarter, we were able to generate BRL 202 million as free cash and reduce our net debt in the semester.

在這張幻燈片中，我介紹了 2023 年的淨債務調節。經營活動產生的現金流量分配給所得稅和租賃付款、資本支出活動以及金融債務的償還。即使考慮到我們在本季度執行了部分股票回購，我們仍然能夠產生 2.02 億雷亞爾的自由現金，並減少本學期的淨債務。

On the next slide, you can see a table with the breakdown of our gross debt as our average cost of debt, considering our main debts: the SoftBank transactions, other loans and financings, the account payables to selling shareholders. Our capital structure remains solid with a conservative leverage position and a low cost of debt.

在下一張幻燈片中，您可以看到一張表格，其中將我們的總債務細目作為我們的平均債務成本，考慮到我們的主要債務：軟銀交易、其他貸款和融資、出售股東的應付賬款。我們的資本結構保持穩健，槓桿狀況保守，債務成本較低。

This ends our prepared remarks. I will now open the conference for the Q&A section. Thank you.

我們準備好的發言到此結束。我現在宣布會議開始問答部分。謝謝。

(Operator Instructions). Our first question is from Lucca Marquezini from Itaú.

（操作員說明）。我們的第一個問題來自意大利的 Lucca Marquezini。

So we saw that adjusted EBITDA margin was impacted by revenue mix and the consolidation of new campuses and acquisitions. So if you could please just provide us more color on the integration process of UNIT and also comment on the profitability performance of Medcel specifically, that will be very helpful.

因此，我們看到調整後的 EBITDA 利潤率受到收入組合以及新園區和收購整合的影響。因此，如果您能為我們提供有關 UNIT 整合過程的更多信息，並具體評論 Medcel 的盈利表現，那將非常有幫助。

I'll take this one, Lucca. I think for your questions. Regarding UNIT, we have the expectations to do the migrations to our shared service during the fourth quarter. So the integration is going to happen this year, less than 1 year after the business combination itself. And regarding Medcel itself, the second quarter -- the second and the third quarter are the ones that are not relevant for the business itself. The revenues are more concentrated on the first and the fourth quarter. So Medcel itself during the second quarter, it's just relevant for the results.

我要這個，盧卡。我想針對你的問題。關於 UNIT，我們期望在第四季度遷移到我們的共享服務。因此，整合將於今年進行，距離業務合併不到一年。就 Medcel 本身而言，第二季度——第二季度和第三季度與業務本身無關。收入更多集中在第一季度和第四季度。所以 Medcel 本身在第二季度，它只與結果相關。

Yes. To give a little more color Luca. Important to say that if you look to our gross margin of Digital Services and Continuing Education, we increased the margins of both segments and -- now in the second quarter. And also, if you look for the ex-acquisition results that we present in the first table of the earnings release, you also can see that UNIT has a margin that's below what we can see now of our other results. So in the end of the day, as we said, everything is going as predicted and we are still seeing operational leverage in all segments.

是的。給盧卡多一點色彩。重要的是，如果你看看我們的數字服務和繼續教育毛利率，我們就增加了這兩個部門的利潤率——現在是第二季度。此外，如果您查看我們在收益發布的第一個表格中提供的除收購外的結果，您還可以看到 UNIT 的利潤率低於我們現在看到的其他結果。因此，最終，正如我們所說，一切都按預期進行，我們仍然看到所有細分市場的運營槓桿。

So the next question will come from Lucas Nagano from Morgan Stanley.

下一個問題將由摩根士丹利的盧卡斯·長野提出。

We have 2 questions. The first one is related to the regulation on medical seats. Now that we have some more visibility on the Supreme Court's decision, do you have any expectations for the 170 approximately requests that were made outside of Mais Medicos that will still be analyzed by [Mac]. And in parallel, do you have any guess on the format of the new Mais Medicos' 3 program? Like in terms of size or regions? That was my first question.

我們有 2 個問題。第一個是關於醫療座椅的規定。現在我們對最高法院的判決有了更多的了解，您對 Mais Medicos 之外提出的大約 170 項請求有何期望，這些請求仍將由 [Mac] 進行分析。與此同時，您對新的 Mais Medicos 3 計劃的格式有什麼猜測嗎？比如規模或區域？這是我的第一個問題。

The second question is related to FG-FIES. You mentioned that the expected impact for the year is BRL 24 million. And I wanted to ask you how much of this was already reflected in the first half? Can we assume it's BRL 12 million? And was this effect concentrated in the second quarter or spread between the first quarter and the second quarter?

第二個問題與FG-FIES有關。您提到今年的預期影響是 2400 萬雷亞爾。我想問你，這其中有多少已經在上半年得到體現？我們可以假設是 1200 萬雷亞爾嗎？這種影響是集中在第二季度還是在第一季度和第二季度之間傳播？

Okay, Lucas, it's Virgilio, I'll take the first question here of the FG-FIES and Blanco will help me out. About the ask for new seats out of the Mais Medicos process, I think as too soon, we are in the middle of the judgment. We have the second judge just releasing his (inaudible) this afternoon. Now he was completely opposed, against the continuity of the process that was already within the [Mac] and the Ministry of Education step but it's still soon in the process to check how would be the impact of all these issues, the issue process that is out of the current Mais Medicos process.

好的，Lucas，我​​是 Virgilio，我將回答 FG-FIES 的第一個問題，Blanco 會幫助我。關於從 Mais Medicos 流程中申請新席位，我認為為時過早，我們正處於判斷之中。今天下午，第二位法官剛剛發布了他的（聽不清）。現在他完全反對，反對[Mac]和教育部步驟中已經存在的流程的連續性，但仍很快就會檢查所有這些問題的影響，問題流程是超出當前的 Mais Medicos 流程。

About the Mais Medicos 3 -- about the (inaudible), I think you still have to wait for 1 or 2 weeks to have the public bid in the market and to analyze, which will be the seat that would be the (inaudible) for the Mais Medicos 3.

關於 Mais Medicos 3 - 關於（聽不清），我認為您還需要等待 1 或 2 週才能在市場上進行公開投標並進行分析，這將是（聽不清）的席位麥斯麥迪科斯 3。

Lucas, it's Blanco, in talking about FG-FIES, when we saw the increases in the rotation fees of FG-FIES that was in the beginning of March, we foresee that and we did this expectations of BRL 24 million. And we put it -- it's under our guidance. So since the inception of the guidance of 2023, it's reflected on our guidance of 2023. So it's -- we don't expect any kind of changes in our guidance and our expectations of this impact in terms of net revenues for the year would be BRL 24 million.

盧卡斯，我是布蘭科，在談論 FG-FIES 時，當我們看到 3 月初 FG-FIES 的輪換費增加時，我們預見到了這一點，並且我們實現了 2400 萬雷亞爾的預期。我們把它放在我們的指導之下。因此，自 2023 年指導意見出台以來，它反映在我們 2023 年的指導意見中。因此，我們預計我們的指導意見不會發生任何變化，而且我們對這一影響對今年淨收入的預期是2400 萬雷亞爾。

Yes. And we don't see a lot of seasonality between the quarters for us to see a lot of concentration in 1 quarter or other, okay Luca.

是的。我們沒有看到季度之間有太多的季節性，因此我們可以看到第一季度或其他季度的集中度很高，好吧，盧卡。

Yes, but -- as the (inaudible) based by semester. So you can consider that -- most of them, 50% of them will be in the first and the second half. But consider that we have maturation, we still have more students enrolling in the second half. So it was a little bit higher in the second half when you compare it to the first half because of the maturation.

是的，但是——作為（聽不清）基於學期的。所以你可以考慮一下——大部分，50%會在上半場和下半場。但考慮到我們已經成熟了，下半年我們還有更多的學生入學。因此，當你與上半年相比時，由於成熟，下半年的價格要高一些。

(Operator Instructions) The next question is coming from Jessica from JPMorgan.

（操作員說明）下一個問題來自摩根大通的傑西卡。

It's a follow-up question on FG-FIES. So if you could give a little bit more color on the outlook for this contribution on 2024. And do you think it should remain stable as a percentage of medical revenues, assuming no changes in regulations?

這是 FG-FIES 的後續問題。那麼，您是否可以對 2024 年這一貢獻的前景進行更多描述。假設法規沒有變化，您認為它佔醫療收入的百分比應該保持穩定嗎？

Thank you, Jessica. I'll take this one. And let's recap about the FG-FIES regulations, as Virgilio talked in his part of the presentation, the retentions started when it was ended, the fifth year in the beginning of the 6 years. So this kind of retention is coupled by the governed payer educational entity, where -- each one of the entities. What happened here in this first year that the entity that has no medical educations were affected because the government calculated delinquency rates regarding the program, but put it on the revenues that are the FG-FIES revenues that are related to that financial entity. So the entities that has more known medical institutions were more affected in terms of percentage.

謝謝你，傑西卡。我要這個。讓我們回顧一下 FG-FIES 規定，正如 Virgilio 在演講中所說，保留是在該規定結束時開始的，即 6 年年初的第五年。因此，這種保留是由受監管的付款人教育實體耦合的，其中每個實體都是如此。第一年發生的事情是，沒有接受過醫學教育的實體受到了影響，因為政府計算了該計劃的拖欠率，但將其計入與該金融實體相關的 FG-FIES 收入中。因此，從百分比來看，擁有更多知名醫療機構的實體受到的影響更大。

The medical entities were not affected because we didn't have any kind of graduations of the medicals during the beginning of the 6 years, the medical program, the graduations will occur at the end of the 6 years. So we are in this year in a transition period, okay? So regarding the impact in 2024, it's hard to foresee an impact on that. But what definitely I could share with you the views that the entities that has medicine and other courses, the kind of retention that we have will decrease because right now, we just have the delinquencies of the non-medical parts affecting all the revenues of these entities. So I would say that we can expect the reduction on that because we will start to reflect the delinquency of the medical programs.

醫療實體沒有受到影響，因為我們在 6 年開始時沒有任何形式的醫學畢業，醫學項目畢業將在 6 年結束時進行。所以今年我們正處於一個過渡期，好嗎？所以對於2024年的影響，很難預見到會有什麼影響。但我絕對可以與您分享的觀點是，擁有醫學和其他課程的實體，我們的保留率將會減少，因為現在，我們只是影響了這些實體的所有收入的非醫療部分的拖欠。實體。所以我想說，我們可以預期這一數字會有所減少，因為我們將開始反映醫療計劃的拖欠行為。

And regarding the medical -- the pure blood, the pure-play medicine, it's right now that we have something about 13% of the retentions. It could go up or down because the delinquency rates on this kind of entity, it's very, very low for non-FIES. So it's kind of hard to say right now what will be the behavior of this [retentions] when these calculations is updated in 2024, but having these 2 different groups spare, I could say that even we could even get a reduction on that. But it's kind of expectations right now, Jessica.

至於醫療方面——純血統、純藥物，現在我們有大約 13% 的保留。它可能會上升或下降，因為此類實體的拖欠率對於非外商投資企業來說非常非常低。因此，現在很難說當這些計算在 2024 年更新時，[保留] 的行為會是什麼，但有了這兩個不同的組，我可以說，即使我們甚至可以減少這一點。但現在這只是一種期望，傑西卡。

So the next question comes from Mauricio Cepeda from Credit Suisse.

下一個問題來自瑞士信貸銀行的 Mauricio Cepeda。

I also have some questions around FG-FIES. It's kind of a controversial topic. It was kind of the hot topic in the results from the other companies as well. So it seemed that the size of the contribution was kind -- kind of took the companies off guard. The magnitude of it was kind of unexpected. So my question would be what you as a company or as a sector, how are you working to mitigate these effects for the future? What are you proposing that could mitigate the effects from the delinquency?

我還有一些關於 FG-FIES 的問題。這是一個有爭議的話題。這也是其他公司業績中的熱門話題。所以看來捐款的規模是善意的——有點讓公司措手不及。其規模之大有點出人意料。所以我的問題是，作為一家公司或一個行業，您如何努力減輕未來的這些影響？您有何建議可以減輕拖欠行為的影響？

And a clarification as well following what Blanco was answering. You said the delinquency of the medical entities are higher or lower than the non-medical ones. This is just a clarification.

在布蘭科的回答之後也進行了澄清。你說醫療機構的拖欠率比非醫療機構高還是低。這只是一個澄清。

And my second question would be on prep courses. I know that this is not exactly the cycle for revenues, but you have mentioned in other opportunities that you have been up repositioning, right, repositioning the courses in a different [tactic] -- commercial tactic . So if you could update us on how this reposition is going, it would be great.

我的第二個問題是關於預科課程。我知道這並不完全是收入周期，但您在其他機會中提到您一直在重新定位，對，以不同的[策略]——商業策略重新定位課程。因此，如果您能向我們介紹此次重新定位的最新進展，那就太好了。

Mauricio, I will get from the first -- your second question about the delinquency on medical, it's much lower than other programs. Our PDA levels is around 1%, 1.5% for a pure player, a pure campus that's just running a medicine program here. And about the size of this retention, of course, that we do not think that this is fair, considering that all this retention is over the delinquency calculated over the students that is getting into the amortization phase. These students, they are nonmedical students, because if the program that -- the new FG-FIES started back in 2018, we are just considering students ex medicine or other programs than medicine that they graduated and entering the amortization phase and their delinquency is much higher than any other medical problems that we have in Afya.

毛里西奧，我將從第一個問題——你的第二個問題中得到關於醫療拖欠費的問題，它比其他項目低得多。我們的PDA水平大約是1%，對於一個純粹的玩家來說是1.5%，一個純粹的校園，只是在這裡運行一個醫學項目。當然，關於保留的規模，我們認為這是不公平的，因為所有這些保留都是針對進入攤銷階段的學生計算的拖欠率。這些學生，他們是非醫學生，因為如果新的 FG-FIES 項目於 2018 年開始，我們只考慮醫學或醫學以外的其他項目的學生，他們畢業並進入攤銷階段，他們的拖欠率會很高比我們在阿菲亞遇到的任何其他醫療問題都要嚴重。

So considering that when they are using this as a proxy to calculate which would be the retention rate over the entire institution, over the entire entity, they are applying this for overall revenues. That's why the entire sector do not agree and is trying to convince everyone that this is not fair, and we're trying -- we are seeing like (inaudible) an amendment being discussed under the Congress to limit this retention rate in the future. Otherwise, yes, we would lose the traction and FG-FIES is an important flag for the current government, we should see some changes in the future semesters.

因此，考慮到當他們使用此作為代理來計算整個機構、整個實體的保留率時，他們將其應用於整體收入。這就是為什麼整個行業不同意，並試圖讓每個人相信這是不公平的，我們正在努力——我們看到國會正在討論一項修正案（聽不清），以限制未來的保留率。否則，是的，我們將失去吸引力，而 FG-FIES 是現任政府的一面重要旗幟，我們應該會在未來的學期看到一些變化。

So this is about the FG-FIES. And your third question about the Pillar 1. The second, third quarter is a very low seasonality on our revenues here. Otherwise, we are combining not only the residence prep costs coming from Medcel but all other continuing medical education programs that prepare physician for titles and so forth. So the operation coming from Além da Medicina also CardioPapers. They are increasing a lot the number of students. So we expect for the second half, starting the revenues on the fourth quarter better so the turnover when it compared to the last year. So we are now combining all the products into a big portfolio, not only Medcel or residence prep costs, but all in terms of title prep and also soft SKU programs combining into the Pillar 1, that's our digital continuing medical education offerings, okay?

這是關於 FG-FIES 的。關於支柱 1 的第三個問題。第二、第三季度我們的收入季節性非常低。否則，我們不僅會合併來自 Medcel 的住院準備費用，還會合併所有其他為醫生獲得頭銜等準備的繼續醫學教育計劃。所以這項手術來自 Além da Medicina 和 CardioPapers。他們正在大量增加學生人數。因此，我們預計下半年第四季度的收入會比去年更好，因此營業額也會比去年更好。因此，我們現在將所有產品組合成一個大的產品組合，不僅包括Medcel 或住院準備成本，還包括標題準備和軟SKU 項目，這些產品都合併到第一支柱中，這就是我們的數字繼續醫學教育產品，好嗎？

Yes. Just for me to add some color, Mauricio, under the FG-FIES. So today, we have a retention rate of something around 27% that you -- should be 13%, and what the sector's [fighting] is to limit to 25%. So that could be a change that we can see in the pharma in the next months. And other point that's important to mention here is that we haven't seen any change on a pure player of medicine in the retention rate. So if it was 13.5%, it is still 13.5%, okay?

是的。只是為了讓我在 FG-FIES 下添加一些顏色，Mauricio。所以今天，我們的保留率約為 27%，你應該是 13%，而該行業的 [戰鬥] 是將其限制在 25%。因此，這可能是我們在未來幾個月內可以在製藥公司看到的變化。這裡值得一提的另一點是，我們沒有看到純醫學玩家的保留率有任何變化。所以如果是 13.5%，它仍然是 13.5%，好嗎？

Yes, just to put a color on that, what's happened that these calculations is done by entity, okay? So if the entity just have medicine courses as none of the medical students has graduated during the 6 years because they were going to graduate in the 7 year, the retention rates didn't change. What happened -- changed is the entity that had medicine and other courses that, as Virgilio mentioned. The delinquency was calculated just for non-medical and was applied to the whole program. That's why that we have some entities that had a higher retentions because they calculated the delinquency of non-medical and apply for the whole entity itself. And with the cap of 25%, that's being discussed on Congress that would reduce the impact of this increase implementations for us.

是的，只是給它加上一個顏色，這些計算是由實體完成的，發生了什麼，好嗎？因此，如果該實體只開設醫學課程，而由於醫學生將在第 7 年畢業，因此在第 6 年內沒有畢業，那麼保留率不會發生變化。正如 Virgilio 提到的，所發生的事情——改變的是擁有醫學和其他課程的實體。拖欠率僅針對非醫療計算，並適用於整個計劃。這就是為什麼我們有一些實體具有更高的保留率，因為它們計算了非醫療拖欠並適用於整個實體本身。國會正在討論 25% 的上限，這將減少實施增加對我們的影響。

Just to finalize, Mauricio, the most reasonable thing is to consider that the retention rate instead of applying for the entire entity should be a applied program by program. So it would consider the delinquency over each program, not for overall institution based off some sample of this unit that does not represent the total revenue of that entity. So that is the -- I think the pledge of the entire sector with the (inaudible).

最後，Mauricio，最合理的做法是考慮保留率，而不是申請整個實體，而應該逐個項目進行申請。因此，它將考慮每個計劃的拖欠情況，而不是基於該單位的某些樣本（不代表該實體的總收入）的整個機構的拖欠情況。這就是——我認為整個行業的承諾（聽不清）。

So I think that we do not have any more questions. If you have any other doubts that you couldn't ask here, I'll be available in our e-mail of the IR department. It was a pleasure to have you all today. Thank you for the participation. Have a nice evening.

所以我認為我們沒有更多問題了。如果您有任何其他無法在此詢問的疑問，請通過 IR 部門的電子郵件與我聯繫。今天很高興見到大家。感謝您的參與。祝你今晚愉快。