Itau BBA's 13th Annual Latam CEO Conference

May 16th and 17th , 2018 | New York

Agenda

Company Competitive 1Q18 Results Enterprise

Overview Advantages Project

2
Company Overview

Business Segments Geographic Footprint

Gross Revenue by Business Segment (2017)

+1,900 cities covered 5,745 clients

31
Lab-to-Lab: performs clinical analysis tests for other laboratories and # 122 PSC (1)
hospitals, serving over 5,700 clients nationwide 74
Regional Labs (NTAs)
6 11
PSC: 122 stores (patient service centers) in Minas Gerais, Goiás, São Central Lab – Vespasiano (NTO)
Paulo, and Rio de Janeiro, offering clinical analysis, imaging tests,
vaccines, check-ups and others Progenetica and Diagnóstika

Lab-to-Lab Presence

Business segments Highlights

PSC: Regional leadership PSC: Gross revenue per type of test (2017) Total volume of tests (2017)

Leadership Position in the metropolitan Lab-to-Lab: 64.6 million (+17.1% YoY)

region of Belo Horizonte (MG)

~50% Market Share in the metropolitan PSC: 21.9 million (+10.7% YoY)
region of Goiânia (GO)

1 In December 2017 3
Hermes Pardini Track Record

Hermes Pardini Track Record

1959-2001:
2007-2011: As of 2011:
Foundation and Creation of New
Professionalization Accelerated Growth Strategy
Segments

Business segmentation into Lab-to-Lab and PSC

Professionalization
of management and
10-yr strategic plan
definition
Lab-to-Lab: Specialization and market share expansion, organically
and through M&A
PSC: Build national presence organically and through M&A

PSC M&A
Lab-to-Lab and
stretegy:
PSC M&A
Beginning of Launch of Lab- Launch of Inauguration of strategy: Launch of
diagnostics to-Lab vaccine NTO to support
operations services Hermes
services Lab-to-Lab
Pardini
expansion
brand in SP

1959 1994 1997 1998 2001 2007 2010 2011 2012 2013 2016 2017 2018

M&A streategy IPO Enterprise

Lab-to-Lab and
Launch of Creation of the Project
PSC M&A
imaging and human strategy
anatomic genetics
pathology department Implementation Entry of Gávea
Investimentos to Rio de Janeiro
services of Corporate
Governance support M&A strategy Acquisition of CMNG
and further
professionalization

4
Brands

Lab-to-Lab Brands PSC brands

Strategy: Product portfolio diversification through complementary Strategy: Build national presence organically
specialized tests and market share expansion and through M&A

• Largest laboratory in Minas Gerais, with a well

• Reference in Lab-to-Lab segment with 20 years of recognized brand and a diversified portfolio. Has 58
experience. National presence with over 5,500 clients years of experience

• Reference in anatomic pathology, located in São • Largest lab in Goiás with 31 years of experience and
Paulo and Rio de Janeiro. Highly specialized medical 31 centers. Portfolio includes clinical analysis,
team, 32 years in the market with expertise in 19 imaging and vaccines. Acquired in 2013.
segments of anatomic pathology

• Acquired in December 2016 as an opportunity to increase

market share in Rio de Janeiro. It has 9 centers. Reference
• Reference in oncogenetics with a 17-year track
in multi-specialty imaging tests with 46 years of experience.
record, located in Rio de Janeiro. Specialized test
portfolio as key rationale for the acquisition by
Hermes Pardini. Among 1st labs to implement high
complexity molecular testing

• Reference in cardiology imaging exams, it has almost

30 years of experience and 3 units. Acquired in
December, 2017.
• Acquired in March, 2017, Labfar develops activities
related to toxicological exams with high degree of
specialization, focusing on tests of detection of drug
abuse.
• Acquired in December, 2017, Humberto Abrão is a
diagnostic laboratory in the city of Belo Horizonte,
and has been operating for almost 40 years, been a
reference in clinical analysis segment.

5
Management Team

Years at Hermes
Executives Position Previous Experience and Education
Pardini

• Prior to becoming CEO, Dr. Santoro was Hermes Pardini’s Medical

Diagnostics Director
Dr. Roberto Santoro CEO 15
• Undergraduate and graduate medical degree from UFMG. Executive
MBA at Fundação Dom Cabral and post-MBA at Kellogg

• Prior to joining Hermes Pardini, Mr. de Lelis worked in the mine and
automotive industries with London & Scandinavian Metallurgical and Fiat
Camilo de Lelis CFO / IR 8 (Brazil , Mexico and USA)
• Bachelor in Accounting Sciences from Universidade Newton Paiva.
Graduate degree from UNA and MBA from Harvard-UDEM

• Prior to joining Hermes Pardini, Mr. Ferreira was a biotechnology and

Commercial biochemical professor at the post-graduate level
Alessandro Ferreira 20
Officer • Bachelor in Biochemical Pharmacy at UFMG. Master and doctorate
degree from UFMG and MBA degree from IBMEC

• Technical Director for 5 years at Lab Rede. Previous Emergency

coordinator at UFMG Hospital das Clínicas and president of the Clinical
Operations
Dr. Guilherme Collares 8 Pathology Dep. (MG)
Officer
• Medicine undergraduate and master degrees from UFMG. Executive
MBA from FGV

• Prior to becoming Business Director, Adriana Linhares was Hermes

Business Pardini’s PSC Corporate Manager
Adriana Linhares 19
Officer • Bachelor in Biochemical Pharmacy from UFMG. Graduate degree in
Clinical Analysis from UFMG and executive MBA degree from IBMEC

6
 Consistent Gross Revenue Growth
R$mm
Gross Revenue and Gross Margin - Consolidated¹
# of tests (MM) 54.8 59.2 72.8 83.7

Average ticket (R$) 13.59 13.94 13.33 14.45

Gross Margin 34.3% 34.3% 32.7% 33.0%

Lab-to-Lab: Gross Revenue and Gross Margin PSC: Gross Revenue and Gross Margin

# of tests (MM) 38.0 41.7 55.2 64.6 # of tests (MM) 17.6 18.9 19.8 21.9

Average ticket 10.26

Average ticket 18.77 19.54 20.43 25.57
11.23 11.35 10.50
(R$) (R$)

Gross Margin 37.5% 38.7% 37.5% 37.8% Gross Margin 30.5% 28.5% 25.4% 27.1%

Note: ¹ includes eliminations. Acquisitions

7
Evolution of Profitability Levels
R$mm

Adjusted EBITDA and margin Net income and margin

25.3% 24.1% 22.2% 22.1% 12.1% 10.9% 11.5% 11.6%

8
Low Leverage with Superior Returns

R$mm

Net Debt and Net Debt / EBITDA – annual evolution ROIC (without goodwill)

-26.5% -26.6% 31.6% 50.9%

Net Debt and Net Debt / EBITDA – 4Q17 x 3Q17 ROIC (with goodwill)

0.23x 0.51x

9
Agenda

Company Competitive 1Q18 Results Enterprise

Overview Advantages Project

10
Competitive advantages

1 Centralized production with efficient logistics

Key Differentiating Attributes

Lab-to-Lab: Unique Value Proposition
2

3 PSC: High Reliability and Operational Excellence

4 Focus on R&D: High Specialization and Development of New Tests

5 Organic growth opportunities

Growth Avenues
6 Experience in M&A activities

11
1 Centralized production with efficient logistics

Centralized production... …supported by regional sites (NTA) and an efficient logistics network:

Central Lab: NTO Vespasiano

RH

Rio de
RH
Janeiro

Belo
Horizonte Goiânia

Central Lab
NTO
RH RH

Onco- Pathol.
genetics Anatomy

RH
São Paulo

RH

Central Laboratory (NTO)

4 supporting regional sites (NTAs)

2 supporting specialized sites (NTAs)

5.700+ Lab-to-Lab Clients

122 Pardini PSCs

12
2 Lab-to-Lab: Unique Value Proposition

Fast Turnaround Time R&D and Broad

Test Menu

IT Integration Reliability of Results

Lab-to-Lab

Competitive Cost
Structure Medical Support

13
3 PSC: High Reliability and Operational Excellence

Medical excellence, broad portfolio and expertise with customer care increases the value perceived by patients
and physicians, while operating excellence allows Hermes Pardini to offer competitive prices for HMOs

High Value Perceived by Patients and Physicians + Operating Excellence

1 Excellence in Patient Care 1 Competitive Cost Structure

2 Brand Recall and Reliability of Results 2 Expertise in Cross-Selling

3 One-Stop-Shop 3 Real-Time Operations Monitoring

One-Stop-Shop Real-Time Monitoring

Real time
monitoring of
KPIs

Clinical Analysis Check-ups

Imaging Tests OTC Wellness
Vaccines Products

Nutrition Precision Medicine

14
4
Focus on R&D: High Specialization and
Development of New Tests
Hermes Pardini’s R&D excellence allows for a leading positioning in development of exclusive tests

New Test Development Research Production and Quality Recognition

Place in Personalized
1st
Medical Research
American
3 nominations
Association of
2 oral presentations
Clinical Chemistry

 Quality Certificates

• Zika Virus case study: 1st lab in Brazil to develop in-

house methodology for viral detection
• Zika virus test was only offered by laboratories outside
Brazil with an avg. cost of R$1,000 and 50 days of
turnaround time
• Hermes Pardini developed this test in-house and was
able to reduce patient cost by 50% and the turnaround
time to only 1 week
• R&D department developed 94 projects throughout the
year, with 32 new testes and R$ 4.4 million positive
impact on gross revenue

(1) Source: Folha de São Paulo

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5 Organic Growth Opportunities

Multiple avenues for organic value creation

Lab-to-Lab Strategy PSC Strategy

Short Term Growth Strategy:

4 Expansion Strategy:
Lab Portfolio • Strengthen presence in southeast region and expand to key
Expansion metropolitan cities in the south and northeast
and %
3
Outsourced • Increase bargaining power with payers
New Labs in
2 New Routes • Continue to focus on higher return clinical analysis with
imaging as a support
New Labs in
1 Existing
Routes • Cross-selling leverage
Increase
Share of
Wallet in New PSCs will be offered in a one-stop-shop format: units with
Client Labs ~1,500m², broad menu of clinical analysis and imaging tests,
vaccines, check-ups and anatomic pathology

+
PSCs per Region1

Long Term Growth Strategy:

Further develop relationships in Pharma
Increase volume of toxicology tests
Expand telemedicine
Focus on precision medicine

(1) December 2017, including the stores acquired through Guanabara laboratory, in Rio de Janeiro and Ecoar and Humberto Abrão, in Minas Gerais 16
6 Experience in M&A activities

Experience in M&A activities

Revenue and Margin Expansion Business Diversification

• Strengthen penetration in Rio de

Janeiro • Increase in specialized anatomic
pathologic tests’ production capacity
• Complete portfolio of tests (mainly
December 2016 nuclear medicine and radiology) • Renowned medical team
July 2013

• Acquisition of clinical analysis market

leader in Mid-West region

July 2013 • Acquisition of national paternity test

leader, strengthening biotechnology
portfolio
• Entry in São Paulo diagnostics market,
• Opportunity to acquire local authority
largest national market December 2012
portfolio
• Focused on imaging tests. Opportunity to
expand in clinical analysis and vaccines
December 2012
• Opportunity to use its lab as a NTA for Lab-
to-Lab clients in São Paulo
• Acquisition of Pregenetica’s genetics and
personalized medicine know-how

• Acquisition of imaging tests reference in

the metropolitan region of Belo • Specialized on high complexity molecular
October 2012 tests
Horizonte.

December 2017

• Expansion in the city of Belo Horizonte,

especially in the premium segment. • Strengthen company’s portfolio of
specialized exams.
December 2017 March 2018

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Agenda

Company Competitive 1Q18 Results Enterprise

Overview Advantages Project

18
 Operating Highlights for 1Q18

Record of number of tests in 8 new projects by the R&D Conclusion of the acquisition
March team of 51% of Labfar

• The month of March again saw a record number of tests with a total volume of over 8.5
million diagnostic tests;
• Our R&D team concluded 8 project rollouts in 1Q18, of which 4 related to developing new
types of exam and 3 to insourcing exams that had previously been outsourced;
• We concluded the process of acquiring 51% of Labfar shares, one of the few companies in
Brazil qualified to process toxicological tests with a wide range detection window.

19
 Operating Highlights for 1Q18

NPS: 74 in March 2018 in Inauguration of new units Self-service totems

the state of Minas Gerais expansion in Minas Gerais

• The Hermes Pardini brand's Net Promoter Score (NPS) in Minas Gerais (MG) remained
stable at 74 in 1Q18, in line with previous periods' numbers. Its São Paulo NPS reached 73 in
Feb/18 and showed strong year-over-year growth, reflecting several initiatives executed to
strengthen the operation;
• We opened a new large-scale unit in Rio de Janeiro (Nova Iguaçu) in May/18 as well as two
small units in Minas Gerais (Lagoa Santa and Sete Lagoas) in April/18;
• We added more self-service totems at several units in Minas Gerais as part of Pardini
Group's technological innovation.

20
 1Q18 Highlights: Lab-to-Lab segment

• Consistent growth in volume of tests (+10.6%). Stability in revenue per client (+1.2%);
• Commercial strategy focused on the increase of the client base: 5,151 clients
generated revenues during the 1Q18 (+6.3% YoY);
• Expertise on client relationship and high quality of services has resulted in the
improvement of Same Lab Sales indicator (+7.4%).

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 1Q18 Highlights: PSC segment

• Acquisition of Ecoar and Humberto Abrão, in Minas Gerais, has contributed to the increase in
number of tests (+10.6%).
• The decrease in gross revenue per m2 (-7.0%) is related to the decrease in revenue from
imaging tests in Rio de Janeiro, opening of new units in São Paulo (1), Rio de Janeiro (1) and
Minas Gerais (2) and acquisition of Ecoar and Humberto Abrão;
• Same store sales (SSS) of 1.0%. Excluding the Guanabara effect, SSS would be
approximately 4.6%;
• NPS (Net Promoter Score) for Hermes Pardini reached 74% during 1Q18; 22
 Consolidated Gross Revenues

R$ MM 1Q17 1Q18 Variation

Lab-to-Lab 152.5 164.0 7.5%
PSC 140.5 152.1 8.2%
Eliminations -4.0 0.6 -114.1%
Consolidated 289.1 316.6 9.5%

• Pronounce increase in gross revenue in both business units;

• Eliminations shown in the above table are mainly intercompany transactions which are
excluded for calculating gross book revenues.
23
 Gross Revenues of the Lab-to-Lab segment

• The increase in Gross Revenue (+7.5%) was due mainly to higher number of tests
(+10.6%) and number of clients which generated revenue in the period (+6.3%);
• Expertise on client relationship and high quality of services has resulted in the
improvement of Same Lab Sales indicator, which grew by 7.4%.

24
 Gross Revenues of the PSC segment

• Acquisition of Ecoar and Humberto Abrão, in Minas Gerais, has contributed to the
increase in number of tests (+10.6%) and in gross revenues from the PSC segment
(+8.2%);
• Imaging tests represented circa 44% of gross revenues from the PSC segment;
• Gross revenues, in terms of same store sales, grew by 1.0%. Excluding the effects of the
decrease in gross revenue in Rio de Janeiro, the Same Store Sales indicator for 1Q18
would be approximately 4.6%.
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Deductions from Gross Revenues and Net Revenues

R$ MM 1Q17 1Q18 Variation

Disallowances -3.3 -3.4 2.1%
Cancelled Sales and Other Rebates -1.1 -1.6 44.8%
Taxes on Services -17.2 -19.6 14.3%
Cancellations and Deductions (R$ MM) -21.6 -24.6 14.0%

• Total deductions represented 7.8% of gross revenues in 1Q18 and 7.5% in 1Q17.

26
 Gross Profit and Gross Margin

• In the Lab-to-Lab segment, the decrease in gross margin observed in 1Q18 is a

consequence of the decrease in the segment’s average ticket and in increase in the
Company’s structure of costs to support the expansion of its operations.
• In the PSC segment, the decrease in gross margin is mainly due to the decrease of gross
revenue in Rio de Janeiro, whose revenue mix primarily comprises imaging tests, and
thus has a greater operating leverage.

27
Operating Expenses (Selling, Administrative and Other)

Variation of major Operating Expenses

1Q17 1Q18
Operating Expenses % Net % Net
R$ MM R$ MM
Revenue Revenue
Selling Expenses 14.1 5.3% 20.2 6.9%
General and Administrative Expenses 20.0 7.5% 21.3 7.3%
Other Operating Income / Expenses 3.83 1.4% 0.8 0.3%
Total Operating Expenses 38.0 14.2% 42.3 14.5%

• The nominal increase in Selling Expenses can be explained by the following reasons:
• Increase of R$ 0.7 million in Advertising expenses in Minas Gerais to strengthen Hermes
Pardini brand in the region;
• Increase of R$ 0.5 million associated to the recognition of the expenses from New
Companies, acquired by the end of 2017;
• Higher Sales Commission of R$ 0.5 million when compared to 1Q17;
• Sales expenses from the Guanabara operation (RJ) were reduced in 1Q17 due to
reversions and accounting conciliations related to the acquisition process;
• General and Administrative Expenses: variation occurred mainly as a result of incorporation
of figures from Ecoar and Humberto Abrão (R$1.1 million). 28
 Financial result

R$ MM 1Q17 1Q18 Variation

Net Finance Result -4.5 -5.0 11.1%
Finance Income 5.1 2.9 -43.9%
Finance Costs -9.9 -7.7 -22.4%
Foreign Exchange Variation 0.3 -0.2 -147.0%

• Net Financial Result has been impacted by the lower cash balance in 1Q18 (-R$218.4MM in
comparison with 1Q18) and also by lower interest rates observed over the last months.

29
Income tax / social contribution

R$ MM 1Q17 1Q18 Variation

Earnings Before Taxes (EBT) 47.2 41.0 -13.0%

Expected taxes (standard rate of 34%) -16.0 -14.0 -13.0%

Effect on the results of subsidiaries taxed under the
0.8 0.6 -30.8%
presumed profit method

Income Tax and Social Contribution from previews years -0.9 1.4 -257.4%

Other exclusions (additions), net 0.2 0.6 208.4%

Income tax and social contribution -15.9 -11.5 -27.8%

% EBT -33.7% -27.9% +574 bps

Current -16.5 -10.8 -34.7%

Deferred 0.6 -0.7 -214.1%

• The decrease observed in the effective Income and Social Contribution tax rate when we
compare 1Q18 to 1Q17 is mainly due to the use of income and social contribution tax
credits from previous years arising from expenses incurred in previous years.

30
Net Income and Adjusted EBITDA

R$ MM 1Q17 1Q18 Variation

Adjusted EBITDA 64.4 59.8 -7.2%
margin 24.1% 20.5% -362 bps

31
 Trade Receivables

R$ MM 1Q17 2Q17 3Q17 4Q17 1Q18

Trade Receivables 229.6 243.4 252.1 244.0 264.9
Current 203.3 209.9 213.0 200.3 225.2
From 1 to 60 days past due 13.4 16.0 26.9 29.8 22.0
From 61 to 120 days past due 2.6 2.5 1.7 4.3 6.0
Over 120 days past due 8.9 10.5 6.1 5.1 6.7
Other amounts overdue 1.4 4.5 4.3 4.5 4.9
Allowance for doubtful accounts -10.2 -11.5 -6.1 -5.1 -6.9
Provision for loss on services provided and not yet billed -1.4 -4.5 -4.3 -4.5 -4.9
Disallowances 0.0 0.0 0.0 0.0 0.0
Total 218.1 227.4 241.7 234.4 253.1

Current / Trade Receivables 88.5% 86.2% 84.5% 82.1% 85.0%

Balance overdue until 120 days / Trade Receivables 7.0% 7.6% 11.4% 14.0% 10.6%
Provisions / Balance overdue for more than 121 days 113.7% 110.0% 100.0% 100.0% 103.6%

Net Revenue 267.4 286.4 290.5 272.7 291.9

Days of Sales Outstanding 73.4 71.4 74.9 77.4 78.0

• Our receivables portfolio is at an extremely healthy level:

• 85.0% of receivables are in order.
• we have set up a provision for all receivables overdue for more than 120 days.

32
 Debt

Net debt and Covenants

R$ MM 1Q17 1Q18 Variation

Gross Debt (Borrowings) 302.4 259.8 -14.1%
Cash and Cash Equivalents 363.1 144.8 -60.1%
Net Debt -60.7 115.1 -289.6%

Net Debt / EBITDA LTM -0.3x 0.5x -264.8%

EBITDA LTM / Financial Result LTM -21.6 12.5 -158.1%

• In 1Q18, we showed a net debt of R$115.1 MM;

• Healthy capital structure (net debt / EBITDA LTM of 0.5x).

33
 Cash Flow

R$ Thousand 1Q17 1Q18 Variation

Profit for the period 31.3 29.6 -5.4%
Itens not affecting cash 37.3 31.6 -15.3%
∆ Working Capital: -32.4 -33.1 2.0%
Receivables -19.8 -20.5 3.5%
Trade Payables -1.0 -0.8 -19.3%
Salaries / Charges -13.2 -13.3 1.2%
Other Assets and Liabilities 1.6 1.6 -1.1%
Income tax and Social Contribution and Other Payments -27.3 -12.3 -55.1%
Operating Cash Flow 8.8 15.8 79.4%
Investing Activities: -10.8 -14.3 32.0%
Acquisition of Minorities Stakes 0.0 0.0 n.m
CAPEX -10.8 -14.3 32.0%
Other investing activities 0.0 0.0 n.m
Financing Activities: 240.7 -16.7 -106.9%
Dividends -67.4 0.0 -100.0%
Other financing activities 308.1 -16.7 -105.4%
Cash Flow 238.7 -15.1 -106.3%
Conversion (operating cash flow/EBITDA) 384.7% -26% -106.7%

• Net cash flow from operations amounted to R$15.8 million in 1Q18.

34
 CAPEX and ROIC

CAPEX (R$ MM) ROIC LTM without

goodwill

• Most investments made during 1Q18 are related to improvements in existing units in the
states of Minas Gerais, Goiás, São Paulo and Rio de Janeiro and (ii) the expansion of the
NTO’s production capacity.
• ROIC LTM without goodwill of 30.8% in 1Q18.
35
 Dividends and Interest on Own Capital

• Dividends: on April 24th, the Ordinary Shareholders Meeting approved the distribution of
dividends related to the 2017 fiscal year, totaling R$ 4,240,563.26, corresponding to R$
0.03242359189 per share;

• Interest on Own Capital: on May 7th, the Board of Directors approved the payment of
Interest on Own Capital in the gross amount of R$ 9,313,264.45, related to the 1st quarter of
2018;

• In both cases, payment to shareholders should happen until May 30th, 2018.

36
Agenda

Company Competitive 1Q18 Results Enterprise

Overview Advantages Project

37
Enterprise Project Objectives

Develop the world’s largest automated laboratory platform

Implement changes in the production model, to increase operational efficiency and the
quality of tests:
• Update the technological platform with higher degree of process automation
• Increase NTO’s (Central Lab) production capacity
• Higher level of control and predictability of material consumption per test
• Production time reduction
• Replicate NTO methodologies in the NTAs – Advanced Technical Centers – located in
the cities of Belo Horizonte, Goiânia, São Paulo and Rio de Janeiro
• Continue to ensure reliable and high quality results

Renegotiate the existing commercial conditions in the agreements with the key
suppliers of laboratory technology:
• Reduction of operating costs
• Detached payment for inputs, equipment and services

Enable the digitalization of the relationship with Lab-to-Lab clients:

• New value proposition for clients in this segment

38
Enterprise Project Planning

Planning steps Description

Understanding the needs and the current • Collection of information on current situation and technical needs
1 situation • Definition of broad criteria for suppliers selections

• Analysis of the current specifications

2 Demand analysis and specifications review •
•
Identifying opportunities for cost reduction
Baseline definition

RFI (Request for Information) launch and • Suppliers information request through RFI
3 suppliers’ market analysis • Selection of suppliers for the competitive process

• Specifications’ conception and redesign

4 RFP (Request for Proposal) launch •
•
Definition of price range expectations
Elaboration and launch of RFP

• Analysis of proposals and definition of finalist suppliers

5 Negotiation with suppliers • Negotiation

• Results presentation
6 Results’ validation and approval
• Winning bid confirmation

• Change plan confirmation

• Facilities refurbishment planning
7 Project Execution • Tests validation
• Go live

39
Key results from Enterprise Project
Technological Innovations
• World´s largest automated laboratory platform,
according to Siemens
• Increase in the level of plant automation:
• We will be able to process 82% of the results
of clinical analysis tests in up to 6 hours
• Pre-analytical phase (samples´ separation)
will be performed in up to 1 hour
• Greater safety for customers, with less
human interference and risk of damages
• Implementation of cutting-edge
\
technologies:
• Siemens Atellica platform and other
complementary supplier machines
• Installation of a high-speed conveyor belt with
more than 300 meters long
• Reduction in water and electricity
consumption in the production process
• Automated storage cabinets
• Greater control of the production process
• Control Room will allow monitoring remote
operations
Business Model Innovations
• Simplifying the billing process:
• Siemens should set up a subsidiary within the
NTO in Vespasiano, and will be in charge of
controlling the inventory of inputs and
equipments
• Just-in-Time supply:
• Inventory management will be carried out
directly by Siemens in a Just-in-Time material
replacement model
• Suppliers´ remuneration format
• Detached payment for inputs, equipment and
services
• New input payment model, more aligned with
Pardini's interests
• Lab-to-Lab client digitalization:
• New value proposition for the segment
• Centralized platform will allow customers to
solve the technical, financial and
administrative demands
40
 Enterprise Project

Topic Initial Expectation Outcome from Negotiation

Reduction in cost of reagents Reduction ~10% reduction > 10%

Income Statement

New supplier payment format,

according to the number of reported N/A Supplier will be in charge of process inefficiencies
tests

- Reduction in logistics costs, due to reduction in the number of test

tubes;
Others N/A
- Reduction of water, energy and compressed air consumption;
- Others
Balance Sheet

~ 50% reduction in reagents inventories, as suppliers will be in charge of

Inventory reduction N/A
inventory management

Extension in the payment tenor conditions, when compared to existing

Suppliers Payables N/A
agreements

41
Disclaimer and IR Contacts

Disclaimer

This presentation contains certain forward-looking statements concerning the business prospects, projections of
operating and financial results and growth potential of the Company, which are based on management’s current
expectations and estimates of the future performance of the Company. Although the Company believes such
forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations
will be achieved. Expectations and estimates that are based on the future prospects of the Company are highly
dependent upon market behavior, Brazil’s political and economic situation, existing and future regulations of the
industry and international markets and, therefore, are subject to changes outside the Company’s and
management’s control. The Company undertakes no obligation to update any information contained herein or to
revise any forward-looking statement as a result of new information, future events or other information.

Contact: Investor Relations

e-mail: ri@grupopardini.com.br

site: www.grupopardini.com.br/ri

Phone: +55 (31) 3629-4503

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