Auna Announces 3Q24 Financial Results

Adjusted EBITDA increases 23% YoY FXN, maintaining strong growth

Leverage ratio decreases 0.4x to 3.7x

Auna (NYSE: AUNA) (“Auna” or the “Company”), a leading healthcare platform in Latin America with operations in Mexico, Peru and Colombia, today announced unaudited financial results for the third quarter ended September 30, 2024 (“third quarter 2024” or “3Q24”). Financial results are expressed in Peruvian Soles (“S/” or PEN”) and are presented in accordance with International Financial Reporting Standards (“IFRS”), unless otherwise noted.

3Q24 Consolidated Highlights

• Consolidated Revenue increased 11% YoY to S/1,127 million
• Adjusted EBITDA increased 18% YoY to S/250 million, or +23% FXN (Foreign Exchange Neutral)
• Adjusted EBITDA Margin of 22.1%, up 1.4 p.p. YoY and 0.8 p.p. YTD
• Leverage ratio improved to 3.7x from 4.1x in 2Q24
• Consolidated total capacity utilization increased to 67%, up 4 p.p. YoY
• Oncology Plan MLR was 53.7%, improved 1 p.p. from the previous quarter.

Message from Auna’s Executive Chairman and President

We delivered a strong quarter. We increased capacity utilization across the regional network which allowed us to achieve record sales. In addition, Adjusted EBITDA reached historical highs in Mexico and Peru which enabled Auna to reduce our leverage ratio to 3.7x Net Debt-to-Adjusted EBITDA.

In Mexico, the implementation of the AunaWay - fostering a culture of patient-centered care, high medical resolution resulting from productive engagement with Auna’s physician and nursing communities, and standardization at scale - continues to yield improved financial results. Our unique approach improves utilization rates and revenues through increased physician productivity and a greater mix of high-complexity services. We anticipate this positive trend will continue and accelerate during 2025.

The early results of our OncoMexico pilot program are encouraging, as we leverage over 35 years of experience providing integrated oncological services in Peru. We will continue the pilot through the remainder of 2024 and into early 2025, focusing on testing commercial, clinical, and risk-underwriting processes in preparation for the launch of OncoMexico by integrating our insurance business into our healthcare platform in Monterrey. The launch will initially target the B2B segment, with plans to scale to the B2C segment later.

In Peru, where our integrated model is most developed, we continue to deliver high performance levels, driven by sustained plan membership demand and ticket growth, as well as scale productivity gains and an ongoing shift toward higher-complexity procedures across our network in the country.

In Colombia which is an important contributor of scale and excellence in clinical practices across Auna, we will continue to regionalize these advantages. We remain optimistic about its medium and long-term prospects. However, we are tempering our growth in the short term. While our cash conversion cycle is managed with rigor, the regulator intervention in some payors, including Nueva EPS, requires a cautious stance in relation to our account receivables growth and related provisions.

With the aforementioned strong performance, during the quarter, we reduced Auna’s leverage, marking the eighth consecutive quarter of a lower Net Debt-to-Adjusted EBITDA ratio, which improved to 3.7x at the end of the quarter, keeping us on track to achieve our medium-term target of less than 3.0x.

In addition, as we continue to further strengthen Auna's capabilities, we recently made a series of adjustments to our organization and team structure.

In summary, we remain optimistic about Auna’s near and long-term growth prospects, particularly regarding our progress in implementing the AunaWay in Mexico and our ongoing expansion in Peru. Although we remain optimistic in Colombia that the tensions between the authorities and payors, and between payors and providers, like ourselves, will be reduced in the medium term, we are managing the situation with prudence and vigilance. Thus, in the near term, in Colombia, we will favor cash flow over growth.

The fragmented and underserved healthcare market in Spanish-speaking Latin America remains highly attractive. Through our distinctive operating model and scalable regional platform, we will continue to innovate, modernize, and expand access to integrated healthcare across the region, always with a sharp focus on providing high value to our patients, their families, Auna staff, and our shareholders.

Overview of 3Q24 Consolidated Results

Revenues increased 11% YoY to S/1,127 million, or 13% FXN, as a result of Auna’s improving sales mix, with revenues increasing 16% in local currency (“L.C.”) in Mexico, 13% in Peru and 11% in Colombia.

In Mexico, the results reflect improvements in productivity and service mix through the implementation of the AunaWay. During the quarter, Auna’s Peruvian operation continued to outperform, demonstrating the strength of the Company’s vertically integrated business model when operating at scale. Colombia kept pace with sustained demand for oncology services, consistent with Auna’s ongoing focus to high-complexity care in the country.

Adjusted EBITDA increased 18% YoY, or 23% FXN, to S/250 million, with the corresponding margin expanding 1.4 p.p. to 22.1% on solid revenue growth and increasing efficiencies across local and regional levels as the Company continues to capture synergies and streamline processes. Operating profit increased 53% YoY and included a one-time S/44 million reversal of the holdback from the acquisition of OCA in Mexico; excluding this reversal, the operating profit would have increased 24% YoY. Consolidated Adjusted EBITDA was impacted by provisions for impairment losses of S/16 million on account receivables in Colombia; excluding these reserves, consolidated Adjusted EBITDA would have been S/265 million, a 30% FXN growth and a 23.6% margin.

Net finance costs were S/103 million in 3Q24 versus S/172 million in 3Q23. When excluding FX effects, net interest expenses would have been S/132 million, a decrease of S/23 million or 15% versus 3Q23. These FX effects include a non-cash accounting FX benefit of S/28 million, corresponding mainly to the appreciation of the Peruvian Sol to the Mexican Peso.

Net Income was S/101 million in 3Q24, compared to Net Income of S/8 million in 2Q24 and Net Loss of S/18 million in 3Q23. On a per-share basis, Auna reported Net Income of S/1.32 based on a weighted average number of basic and diluted shares of 74,175,144.

Adjusted Net Income was S/75 million in 3Q24, versus S/13 million in 2Q24 and a loss of S/17 million in 3Q23. On a per-share basis, Auna reported Adjusted Net Income of S/0.98 based on a weighted average number of basic and diluted shares of 74,175,144.

For a full version of AUNA’s Third Quarter 2024 Earnings Release, please visit: https://aunainvestors.com/English/financial-information/quarterly-results/

Conference Call Details

When: 8:00 a.m. Eastern time, November 20th, 2024

Who: Mr. Suso Zamora, Executive Chairman of the Board and President; Mrs. Gisele Remy, Chief Financial Officer and Executive Vice President; Mr. Lorenzo Massart, Executive Vice President of Strategy and Equity Capital Markets.

Dial-in: +1 888 596 4144 (U.S. domestic), +1 646 968 2525 (International)

Passcode: 3884034

To access Auna′s financial results call via telephone, callers need to press # to be connected to an operator.

Webcast: click here

About AUNA

Auna is a leading healthcare platform in Latin America with operations in Mexico, Peru and Colombia, prioritizing prevention and concentrating on high-complexity diseases that contribute the most to healthcare expenditures. Our mission is to transform healthcare by providing access to a highly integrated healthcare offering in the underpenetrated markets of Spanish-Speaking Americas. Founded in 1989, Auna has built one of Latin America′s largest modern healthcare platforms that consists of a horizontally integrated network of healthcare facilities and a vertically integrated portfolio of oncological plans and selected general healthcare plans. As of September 30, 2024, Auna’s network included 31 healthcare network facilities, consisting of hospitals, outpatient, prevention and wellness facilities with a total of 2,308 beds, and 1.3 million healthcare plans.

For more information visit www.aunainvestors.com

Safe Harbor Statement

This press release contains forward-looking statements. Forward-looking statements convey our current expectations or forecasts of future events. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from the forward-looking statements that we make. Forward-looking statements typically are identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” ”estimate,” “intend,” “project,” “plan,” “believe,” “potential,” “continue,” “is/are likely to, ”or other similar expressions. Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including, our expected timing of the refinancing of the 2025 notes, Net Debt-to-Adjusted EBITDA, 2024 Adjusted EBITDA growth, the expected impact on revenues and profitability of certain initiatives we are pursuing in Mexico and our target leverage level. Any or all of our forward-looking statements in this press release may turn out to be inaccurate. Our actual results could differ materially from those contained in forward-looking statements due to a number of factors.

The forward-looking statements in this press release represent our expectations and forecasts as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see our Form F-1 filing with the U.S. Securities and Exchange Commission.

2024 Financial Guidance Disclaimer

Auna′s guidance is based on management’s current performance outlook and expected macroeconomic and regulatory conditions in the three countries where the Company operates. Any changes in these conditions could have an impact on the guidance provided.

The 2024 financial guidance reflects management’s current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company’s Form F-1 filed with the United States Securities and Exchange Commission (the “SEC”). Reconciliations of forward- looking non-IFRS measures, specifically the Net-Debt- to-Adjusted- EBITDA guidance, to the relevant forward-looking IFRS measures are not being provided, as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such guidance and reconciliations. Due to this uncertainty, the Company cannot reconcile projected Net Debt-to-Adjusted EBITDA to projected net income without unreasonable effort. The 2024 financial guidance constitutes forward- looking statements. For more information, see the “Forward-Looking Statements” section in this release.

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