Fleury S A : Sustainability Report - Short Version 2023

Sustainability Report

2023

Short version

Click here to access the full version.

About Fleury Group

We stand as a benchmark in Brazil's healthcare sector, recognized by the medical community and society for our technical, medical, care, and management, as well as our ability to drive the sector through innovation.

BUSINESS COMBINATION

In 2022, we announced to the market the combination with Pardini Group, which was approved by CADE (Administrative Council for Economic Defense) and began in 2023. Therefore, the data presented in this report reflects the business combination between Fleury Group and Pardini Group.

The integration takes our ability to generate value to a new level, expanding the integrated offer of diagnostic health services throughout the country and positioning us as one of the market's leading players. This union brings with it a complementary portfolio of brands and expanded geographical coverage, further strengthening the Company's presence nationwide.

We now operate

in more than 13 states

with 39 regional brands recognized in various segments

We have expanded our service units, reaching

524 service units

34 Novos Elos units

We have expanded our workforce, adding

+20 thousand employees and

+4,6 thousand doctors

We boosted our technical operational capacity

with 24 technical areas for processing exams and

processing capacity of +300 million exams per year

Strategy for the future

Our growth avenues and competitive advantages allow us to position ourselves differently in the healthcare market:

DIAGNOSTIC MEDICINE

In 2023, we inaugurated ten service units, enabling:

• Inclusion of more population groups; and
• Expanding access to health care for classes C, D and E.

With the integration with Pardini, we have expanded our B2B (business to business) activities through our Lab-to-Lab and Toxicology operations. As a result:

• We now operate in 2,200 cities in Brazil
• Provide service to 7,300 partners
• Having consistent logistics, with an emphasis on efficiency

• Significantly increase the scope of drugs monitored in keratin, with the validation of over 50 new substances.

NOVOS ELOS

With seven units launched in 2023, this front has grown, especially in the medication infusion, orthopedics, ophthalmology, outpatient surgical center and reproductive medicine segments.

HEALTH PLATFORMS

In 2023, we witnessed a heightened engagement of brands in marketplaces that facilitate the establishment of an open health journey of care. Consequently, the Company was able to venture into uncharted growth avenues, as well as explore novel revenue streams and models.

TECHNICAL OPERATIONAL CENTER

In 2023, we officially opened our new headquarters in the Brooklin neighborhood of São Paulo (SP). The building has six floors dedicated to the new Technical Operations Center (NTO), which has brought greater efficiency to the Company through automations.

3x increase in operational capacity and productivity

30% increase in the volume of tests carried out per year

reduction of 26 tons of waste generated per year

2

Operational and financial performance

We closed last year with positive results that demonstrate the effec-

tiveness of the Company's growth strategy, as well as the success of the first year of the integration journey with Pardini.

All business lines achieved revenue gains. Here are some of the highlights:

R$ 6.9 billion gross revenue (+45%)

R$ 4.9 billion gross revenue at service units (+30.2%)

R$ 691.9 million gross accounting revenue from Novos Elos and Health Platform (+67.6%)

R$ 1.4 billion accounting revenue in B2B (+119.2%)

Investments amounted to R$413.8 million, distributed as follows:

• Maintenance and renewal of the equipment park (+33.1%)
• New units, expansion of supply in units and technical areas (-40.8%)
• Digital and IT initiative infrastructure (+33.9%)

Access the Sustainability Reportto learn more about the results and progress of Fleury Group's ESG commitments in 2023.

Innovation and digital transformation highlights

In 2023, with a view to improving and enhancing our portfolio, we invested:

R$ 21.5 million in R&D for the implementation of

581 new products, services and methodologies

We have a solid legacy in Research and Development. With the business combination with Pardini, we have the opportunity to explore new areas and advance in medical research.

2023 highlights

Publication of 66 scientific articles, participation in congresses and drafting of patents

Exclusive launch of Alzheimer's diagnostic test

"My Fleury" Solution, which provides a full history of patients' health data collected outside the doctor's office

Expansion of the Enterprise project, which revolutionizes clinical analysis processing with laboratory automation

Use of AI to speed up patient diagnosis and prioritize care, as well as in the detection of cerebral aneurysms, cranial hemorrhages and lesions in cases of pulmonary embolism

IMPACTA PROGRAM

In 2023, we continued the Impacta Program, which aims to present solutions to the Company's main environ- mental, social, and governance (ESG) challenges by connecting with startups and entrepreneurs who are leaders in the field.

1st edition concluded in April, with the participation of

13 startups.

2nd edition launched in December, with six startups selected to support Fleury Group in expanding access to healthcare and managing climate change.

3

ESG STRATEGY

Pillar Commitment*

	1. Reduce the generation of biological waste by 20% by 2025 (in line with the goals of the ESG debenture).
E
	2. Become a net-zero company by 2050.***
	1. Structure initiatives to encourage employability through health qualifications/training.
S	2. Reach 1.5 million patients in social classes C, D and E served by the Company's products and services and/or impacted by
	philanthropic healthcare actions by 2030.
	3. Enhance the representation of prioritized Diversity groups (PwD gender, LGBTQIA+, ethnic, racial and generational) within the Group
	and in leadership positions by 2030 (including the Board of Directors and Statutory Executive Board).
	1. Become a B corp certified company by 2030.
G
	2. Preserve the Group's culture of medical excellence and evolve in risk management, internal controls and anti-corruption.

*For other topics, either no goals have been set or no measurement timeframe has been established. ** Currently, we are conducting an internal diagnosis that will subsequently be translated into an action plan. The plan will also include the development of science-based emission reduction targets.

Eco-efficient operation

Logistical efficiency and the use of drones (Lab-to-Lab)

• 8,065.6 km traveled by drones to transport samples, avoiding the emission of 1,379.2 kgCO2 in 2023
• Potential to avoid the emission of 169 tCO2 per year by using electric vehicles on sample routes

Decarbonization

• Start of the decarbonization journey with a focus on net-zeroby 2050
• Improved measurement of Scope 3 emissions
• Implementation of actions to reduce Scope 2 emissions

Renewable energy use

• 90.5% of energy comes from renewable sources
• 2 photovoltaic plants in operation in São Paulo and one in Rio de Janeiro

Annual targets
Indicator*	Target	Result	Status
Biological Waste	0,0115	0,0097	Reached
Generation (kg/exam)
Common Waste	0,0131	0,0126	Reached
Generation (kg/exam)
Energy consumption**	0,7927	0,8547	Not
(KWh/exam)	Reached
Water consumption**	0,026	0,029	Not
(m2/exam)	Reached

• Targets and results include Fleury only. ** Failure to achieve energy and water consumption targets is mainly due to the increased use of air conditioning due to the heat waves that occurred in 2023, which brought a seasonality in consumption that was different from the pattern observed in the previous years.

4

Social action

		"ELAS NA LIDERANÇA" (WOMEN IN LEADERSHIP).
Private social investment and volunteering
•	R$ 5.5 million invested in social projects	To support the achievement of the Company's diversity
•	5,000 hours donated to volunteering and 1,367 volunteers	targets and considering the scenario of the predominance
		of women in the Group's workforce, in 2023 we launched
New supplier evaluation	the Elas na Liderança Program, aimed at developing
•	73 new suppliers, 100% selected on social criteria	and fast-tracking the careers of black and brown female
•	1,947 suppliers re-accredited evaluated on human rights	employees who aspire to leadership positions.

• 40 suppliers participating in PERC

Team of excellence	EXPANDING ACCESS TO HEALTHCARE
Career development	Between 2022 and 2023, we added 159,140 lives reached
• 478,900 hours of training (average of 22 hours per employee)	by initiatives to expand healthcare access, surpassing the
• R$ 253.56 invested per employee	50,000 lives foreseen in the debenture issue. In 2023, over
	95,000 beneficiaries in classes C, D and E were assisted.
Diversity, Equity and Inclusion (DE&I)

79% women in the Fleury Group

70.5% women in leadership positions

45% black women in leadership positions

Corporate governance

Risk management

• Risk matrix review started in 2023
• Mandatory training for all employees
• 109.7% target achieved for the completion of risk-related action plans

Ethics and compliance

• Integration of the Fleury and Pardini Code of Trust
• 12,392 employees (94%), 125 leaders (98%) and 19 governance members (100%) trained in the fight against corruption

Information security and privacy

• 4,023 Fleury's employees (28%) and 3,508 from Pardini (47%) trained in Information Security

Access the Sustainability Reportfor more highlights of our

ESG management.

5