Instituto Hermes Pardini S A : Dados Econômico-Financeiros

(A free translation of the original in Portuguese)

QUARTERLY INFORMATION 1Q21

(A free translation of the original in Portuguese)
Summary
Results Release..............................................................................................................................................	3
Quarterly Information
Report on review of quarterly information (ITR) ........................................................................................	19
Balance sheet ..............................................................................................................................................	21
Statement of income...................................................................................................................................	22
Statement of comprehensive income .........................................................................................................	23
Statement of changes in equity...................................................................................................................	24
Statement of cash flows ..............................................................................................................................	25
Statement of value added ...........................................................................................................................	26
Notes to the financial statement.................................................................................................................	27
1	Operations ...........................................................................................................................................	27
2	Basis of preparation and presentation of the interim accounting information, and a summary of significant
	accounting practices............................................................................................................................	28
3	Cash and cash equivalents and financial investments.........................................................................	29
4	Trade receivables.................................................................................................................................	29
5	Inventories...........................................................................................................................................	30
6	Taxes recoverable................................................................................................................................	30
7	Other assets.........................................................................................................................................	31
8	Investments .........................................................................................................................................	31
9	Property and equipment .....................................................................................................................	33
10	Intangible assets ..................................................................................................................................	34
11	Right-of-use assets...............................................................................................................................	36
12	Trade payables.....................................................................................................................................	37
13	Tax, social security and labor obligations ............................................................................................	37
14	Leases...................................................................................................................................................	38
15	Debentures and borrowings ................................................................................................................	39
16	Taxes payable in installments..............................................................................................................	40
17	Provision for contingencies .................................................................................................................	41
18	Current and deferred income tax and social contribution ..................................................................	42
19	Restricted financial investments and liabilities for acquisition of investments ..................................	44
20	Equity ...................................................................................................................................................	46
21	Net service revenue.............................................................................................................................	47
22	Operating costs and expenses by nature ............................................................................................	48
23	Finance income (costs) ........................................................................................................................	49
24	Related-party transactions ..................................................................................................................	49
25	Earnings per share ...............................................................................................................................	51
26	Financial instruments and risk management ......................................................................................	52
27	Non-cash transactions .........................................................................................................................	55
28	Events after the reporting date ...........................................................................................................	55
Officers' Statement on the Quarterly Information......................................................................................	57
Officers' Statement on the Independent Auditor's Report.........................................................................	58

2 of 59

Medicine, Health and Well-being

EARNINGS RELEASE

3

Letter to Investors

Dear Investors,

Regarding the recent Diagnostic Medicine ("DM")

sector reports analyzing the current operations and business prospects of Instituto Hermes Pardini S.A. and other players, we would like to make some considerations. We will take this opportunity to update Pardini's current status, considering that some market analysts may not have understood the importance of DM in the healthcare value chain when disclosing our information and that of other

industry players.

We are concerned about the fact that some market analyses on DM, particularly those published by large companies, have placed Diagnostic Medicine in a secondary position. We are worried about the content and scope of such information, since some of these companies have thousands of agents and

offices, and are a source for minority shareholders

in Brazil. These shareholders often refer to such reports and guidance, which may not comprise an in-depth and structured context.

The first mistaken information refers to news that Health Operators ("OSs") will put pressure on Diagnostic Medicine, since they are losing value.

DM has an historical and sustainable relationship with operators, contributing to Primary Care in the scope of prevention, for example, in the areas of mother and child care and neonatal screening. With respect to Secondary Care, another concrete

example is the monitoring of chronic diseases. Laboratory and imaging follow-up, together with important clinic conduction, avoids the worsening of patients and the need for more complex and expensive treatments in hospitals. In order words, DM corresponds to avoidable costs in health savings.

Another important aspect is the contribution given by the R&D area, which is typical of large DM companies, for creation of new tests, particularly in the genetics and genomics areas, which opens up new possibilities for Customized Medicine by making prevention and treatment more individualized and effective. Once again, DM combines new possibilities that contribute to patients and OSs by using a preventive and individualized approach through diagnosis, thus obtaining increased accuracy and rationality in the use of this resource, therapies and high-complex interventions.

Another important area refers to the contribution of DM to Oncology through early diagnosis, which favors treatments and the use of drug-target therapies and oncogenetic testing. In these cases, DM also allows using individualized, outpatient and

homecare treatments, avoiding higher hospital costs.

Thus, Diagnostic Medicine gives a transforming and sustainable contribution to patients, OSs, companies, and the whole value chain.

DM's historical medical inflation is much lower than that of other health segments, and it represents one of the lower percentages of the operators' global costs with healthcare and coverage.

Another point of doubt is the constant comparison between DM and the recommendation of/indication to purchase shares in hospitals or vertical business that have launched IPOs recently, to the detriment of DM, mistakenly indicating that the first have more power over the OS or client companies. Other areas are facing high pressure from the operators' relatively high expenditures and medical inflation. In the future, vertical business will face pressure due to freedom of choice and the experience of customers and companies in healthcare assistance. The OSs already adjust their DM tests tables on a yearly basis, and it is important to note that price adjustments follow more sustainable and lower medical inflation models. This already indicates the cost/benefit ratio of DM in the long term, contrarily to some prospects of analysts that do not translate this sustainable relationship in a clear manner. We understand that the relationship between OSs and service suppliers involves a better use of the resources available in order to improve care - rather than a relationship of higher expenses -, which contributes to the sustainability of the system.

4

MD's strategic position allows lower healthcare expenses, and contributes to avoidable costs and 'dehospitalization' of care. This point is not

considered by some analysis companies that are not attentive do disclosing this information.

It is important to highlight, particularly to foreign investors, that according to Brazil's healthcare model, the laboratories and the whole DM area are included in the health GDP of the municipalities, where public health is in fact performed and that also engage private entities, being the first option for primary and secondary healthcare diagnosis. In

this context, the Brazilian model is more sustainable than that of other countries where primary and secondary healthcare are concentrated in hospitals, which results in higher costs. Thus, we evidence the importance of DM in Brazil to reduce public and private health expenses.

Material aspects of the Pardini Group

Pardini is among the major imaging diagnosis infrastructure groups in Brazil. This is a core and traditional business of our company for many years now and, in 4Q20, it has resumed the levels recorded before the pandemic: in addition to the backlog existing in the area, we see a resumption in the volume of tests of this type still during the pandemic, as well as a potential increase in patients' care and monitoring after the pandemic.

Pardini has a successful history of acquisitions with nimble integration and reasonable valuations. Since 2012, our Group has successfully conducted 12

successful acquisitions that expanded the geographic positioning of our actions, brought new technologies, and increased the scope of our high specialization portfolio, and our market reach and production scale.

Another trend that must be taken into account is the reposition of prices of L2L tests considering the new post-pandemic scenario of increase in outsourced services by customers. There was an

increase in specialized tests, such as Covid-19 tests, as well as changes in pricing dynamics, which lead to a more rational L2L price environment in the first months of 2021.

Additionally, the change in the legislation in 2021 boosted the potential of Forensic Toxicological tests, which must obligatorily be conducted each 2.5 years. However, this information is frequently

omitted in the reports.

Pardini owns the largest logistic network infrastructure among all DM players in the country. Thus, we are qualified to establish profitable agreements with large conglomerates that may arise from mergers that are inherent to a consolidating market.

Another uncomfortable aspect of the analyses is the

relativization of Pardini's assessment against the

historical strategy and results of another DM market player. Pardini's performance and strategy by no means depend on the results of this other group.

Pardini follows its own strategy, has invested in DM infrastructure through the "Enterprise Project" and edge automation, and is already prepared to grow

in the next 10 years.

We serve all our partners in Brazil in a differentiated manner, offering the best technologies currently available. This is the essence and the purpose of our Company. In the city of Goiânia and Metropolitan Region of Belo Horizonte (RMBH), we have a large market share in clinical analysis in the PSC segment. The non-identification of the exclusive and strategic characteristics of each company, and the

relativization thereof by valorizing certain characteristics to the detriment of others, was a rash decision taken by an analyst of the sector. Pardini has directly served major companies in the State of Minas Gerais for over 50 years. The entry of other groups in this segment recently cannot invalidate the actions of other laboratories. Some analysts are not taking into account the relationship

of our partnering laboratories, and the relationship

of Pardini itself, with companies, particularly in occupational and forensic health. Moreover, innovation initiatives are regarded as a differential among the companies, although it is publicly known that Pardini has performed homecare services for over 30 years through a broad services network that is present in several cities. In 2020, the growth in

this service modality surpassed 185%.

5