Dimed S A Distribuidora de Medicamentos : Dados Econômico-Financeiros

Financial Statements

Dimed S.A. Distribuidora de Medicamentos

December 31, 2021 with Independent Auditor's Report

Dimed S.A. Distribuidora de Medicamentos

Financial statements

December 31, 2021 and 2020

Contents

Independent auditor's report on financial statements ........................................................................... 1

Audited financial statements

Statements of financial position ............................................................................................................ 6

Statements of profit or loss .................................................................................................................. 8

Statements of comprehensive income ................................................................................................. 9

Statements of changes in equity ........................................................................................................ 10

Statements of cash flows ................................................................................................................... 11

Statements of value added ................................................................................................................ 12

Notes to financial statements ............................................................................................................. 13

A free translation from Portuguese into English of Independent Auditor's Report on Individual and Consolidated Financial Statements prepared in Brazilian currency in accordance with the accounting practices adopted in Brazil and the International Financial Reporting Standards (IFRS), issued by International Accounting Standards Board (IASB)

Independent auditor's report on individual and consolidated financial statements

To the Management and Shareholders of

Dimed S.A. Distribuidora de Medicamentos Eldorado do Sul - RS

Opinion

We have audited the individual and consolidated financial statements of Dimed S.A. Distribuidora de

Medicamentos (the "Company"), identified as Individual and Consolidated, respectively, which comprise the statement of financial position as at December 31, 2021, and the statements of profit or loss, of comprehensive income, of changes in equity and of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the individual and consolidated financial position of Dimed S.A. Distribuidora de Medicamentos as at December 31, 2021, and its individual and consolidated financial performance and cash flows for the year then ended in accordance with the accounting practices adopted in Brazil and with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

Basis for opinion

We conducted our audit in accordance with the Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the "Auditor's responsibilities for the audit of the individual and consolidated financial statements" section of our report. We are independent of the Company and its subsidiaries in accordance with the relevant ethical principles set forth in the Code of Professional Ethics for Accountants and the professional standards issued by

Brazil's National Association of State Boards of Accountancy ("CFC"), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the individual and consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide an individual opinion on these matters. For each matter below, our description of how our audit addressed the matter, including any commentary on the findings or outcome of our procedures, is provided in that context.

We have fulfilled the responsibilities described in the "Auditor's responsibilities for the audit of the individual and consolidated financial statements" section of our report, including in relation to these

matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

Measurement of lease liabilities and right-of-use assets, in accordance with NBC TG 06 (R3) (IFRS 16)

As described in Notes 12 and 20, the Company has recorded right-of-use assets and lease liabilities for agreements covered by NBC TG 06 (R3) (IFRS 16). As at December 31, 2021, the Company recorded a balance of R$521,231 thousand for right-of-use assets in the individual and consolidated financial statements, in addition to lease liabilities of R$557,109 thousand in the individual and consolidated financial statements.

This matter was considered significant for our audit due to the materiality of the amounts involved, both in relation to the asset/liability balances and P&L for the year, as well as the uncertainties inherent in this type of calculation and the degree of judgment required that must be exercised by management in determining the significant assumptions, which include, among other, the discount rate used.

How our audit addressed this matter

Our audit procedures included, among other, the assessment of significant assumptions used related to the lease term, discount rate and consideration amounts, in addition to the calculation methodology used by the Company to measure accounting impacts; inventory analysis of the Company's lease agreements, in addition to checking the compliance of these agreements with the scope of the standard. We also tested the reasonableness of the criteria adopted by the Company for a sample of agreements randomly selected, considering the information on the agreements and their amendments, in addition to recalculate the amounts measured by the Company for these transactions. As a result of these procedures, we identified an audit adjustment related to the measurement of certain agreements, which was not recorded by management in view of its immateriality in relation to the financial statements taken as a whole.

Based on the results of the audit procedures performed, which are consistent with management's assessment, we consider that the accounting records prepared by management for measurement of the impacts from NBC TG 06 (R3) (IFRS 16) on lease agreements, as well as the related disclosures in Notes 12 and 20, are acceptable in the context of the individual and consolidated financial statements taken as a whole.

Other matters

Statements of value added

The individual and consolidated statements of value added (SVA) for the year ended December 31, 2021, prepared under the responsibility of the Company's management, and presented as supplementary information for IFRS purposes, were submitted to audit procedures conducted together with the audit of the Company's financial statements. To form our opinion, we evaluate if these statements are reconciled with the financial statements and accounting records, as applicable, and if their form and content comply with the criteria defined under Accounting Pronouncement NBC

TG 09 - Statement of Value Added. In our opinion, the individual and consolidated statements of value added were prepared fairly, in all material respects, in accordance with the criteria defined abovementioned accounting pronouncement and are consistent in relation to the overall individual and consolidated financial statements.

Other information accompanying the individual and consolidated financial statements and the auditor's report

Management is responsible for such other information, which comprise the Management Report.

Our opinion on the individual and consolidated financial statements does not cover the Management Report and we do not express any form of assurance conclusion thereon.

In connection with our audit of the individual and consolidated financial statements, our responsibility is to read the Management Report and, in doing so, consider whether this report is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the Management Report, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the individual and consolidated financial statements

Management is responsible for the preparation and fair presentation of these individual and consolidated financial statements in accordance with the accounting practices adopted in Brazil and the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and for such internal controls as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the individual and consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters

related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.