Raia Drogasil S A : 1Q24 Institutional Presentation

Institutional Presentation

1Q24

v1

Disclaimer

The material that follows is a presentation of general background information about Raia Drogasil S.A. (the "Company") as of the date of the presentation. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. This presentation is strictly confidential and may not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein.

This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of the Company that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.

Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to the Company's management, the Company cannot guarantee future results or events. The Company expressly disclaims a duty to update any of the forward looking-statements.

Our securities have not been and will not be registered under the Securities Act or under any state securities laws in the United States, and are being offered under exemptions from registration under the Securities Act. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act. Any offering to be made in the United States will be made by means of an offering circular that may be obtained from the agents.

This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.

2

RD Saúde snapshot: Leading the pharma retailing industry in Brazil.

Our Purpose:

Together for a healthier

society.

Our Ambition:

To become, by 2030, the group that contributes the most towards a

healthier society

in Brazil.

+200 years	#1 pharmacy
of combined history of Raia and	chain in Brazil in both revenue
Drogasil, merged in 2011	and pharmacy count
3,010	280-300
pharmacies across every	new pharmacies per year
Brazilian state	in 2024-2025 (guidance)
48.2 million	NPS	90 pharmacies
unique active	net promoter	68 apps
customers (1Q24)	score
373 million	132 million
tickets	digital sessions
(1Q24 LTM)	(1Q24)
R$ 37.6 billion	16.2%
gross revenue (1Q24 LTM)	market share
+16% Y/Y growth	(1Q24)
R$ 2.7 billion	AAA(bra)
adj. EBITDA (1Q24 LTM)	rating by
+12% Y/Y growth	Fitch

3

A decade of consistent high growth in pharmacy count, gross revenue and adj. EBITDA.

Pharmacies

(Store count, thousands)

Gross Revenue

(R$ billions)

8x

36.3

30.9

Adjusted EBITDA

(R$ billions)

10x

2.6

2.3

1.8

0.8 0.9 1.0 1.1 1.2 1.4 1.6 1.8

4x

3.0

2.1 2.3 2.5 2.7

4.7 5.6 6.5

25.6

21.2

18.4

13.915.5

11.8

7.8 9.4

1.3 1.4

1.1 1.2

1.0

0.7

0.5

0.3 0.3 0.4

'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

4

Demand growth due to the ageing of the population. Fragmented market offers ample opportunity for consolidation.

Pharma market maintains an accelerated long-term growth	Fragmented market: opportunity for consolidation
(Brazilian pharmaceutical market. R$ billions. Source: IQVIA.)	(Market share. Source: IQVIA.)	number of
		pharmacies

									171186	9.2%	9.8%	10.8%	11.4%	11.8%	13.4%	13.5%	14.1%	14.6%	15.5%	3.0k	15.8k
									145	18.6% 17.5%	16.3%	16.4%	16.3%	16.0% 15.2%	15.2%	16.1%	16.5%	5.0k
									103113126												(chains)
							58 66 75 85	96	22.5% 24.7%	24.9%	23.9%	23.3%	22.3% 21.8%	21.0%	19.5%	19.3%	7.7k
				17 19 21 21 25 30 36	43	50			17.2% 15.9%	16.7%	17.6%	18.4%	19.1% 20.2%	22.0%	23.9% 26.1%	25.8k	79.1k
																		(other
11	12	13	15						32.5% 32.1%	31.3%	30.7%	30.3%	29.1% 29.2%	27.6%	25.9%	22.6% 53.3k	players)

2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
																										RD		Abrafarma #2 to 5		Other Chains		Assoc./Franch.		Independents

94.9k

(Total)

Brazilian population over 65 years of age	Average annual sale per POS in 2023
	(Millions of people. Source: IBGE, 2018.)			(RD Saúde = 100 index. Source: IQVIA.)
						51
				40		RD	100
			30				Abrafarma #2 to 5	64
	21
14				+11M elders	Other Chains	49
	+10M elders		+10M elders
+7M elders			Assoc./Franch.	20
	CAGR = 4%		CAGR = 3%	CAGR = 2%
CAGR = 4%				Independents	8
2010	2020	2030	2040	2050

5

We continue to expand nationwide with unique pace and diversification while sustaining real IRRs above 20% net of cannibalization.

	1Q24	RR: 4		AP: 5
			PA: 51
Geographic
		MA: 41
	presence AM: 21
				PI: 20
					CE: 94
					RN: 27
					PB: 21
				TO: 21	PE: 100
	AC: 6			AL: 22
	RO: 14	DF: 92	SE: 28
		BA: 103
			MT: 47	GO: 123MG: 219
Total: 3,010 pharmacies
MS: 56		ES: 60
	Raia: 1,270			RJ: 215
	Drogasil: 1,740		PR: 169	SP: 1,227
	Distrib. centers: 14		SC: 93
	Cities: 587 (+38 LTM)		RS: 131

5 min coverage evolution

(population % by social class)

86%	92%	60%	76%	24%	41%	8%	17%	2%	5%	2%	3%	20%	31%
	A	B1	B2	C1	C2	D+E	Brazil

2019 2023

Pop. coverage pharmacies

(Millions of people, % population)

123.1

99.5 59.4%

47.9% 64.0

43.5 30.9%

20.6%

2019 2023

5 min Isochronous coverage 5 km coverage

15.3%	16.2%	26.9%	28.2%	10.8%	Market share	10.9%	10.8%	11.4%	8.0%	9.1%
11.7%	18.6%	19.9%	10.0%
								(Source: IQVIA)
	Brazil			SP	Southeast	Midwest	South	Northeast	North
			1Q23			1Q24

Sales and EBITDA* per mature store

(R$ thousands, 1Q24 LTM)

1,196	1,098		EBITDA 4-wall		Gross revenue
1,091	1,089	1,079	1,012	987
174	178	135	158		131	116	130
14.5%	16.3%	12.4%	14.5%	12.2%	11.5%	13.1%
Region 1	Region 2	Region 3	Brazil	Region 4	Region 5	Region 6

• 4-wallEBITDA (stores), not including Distribution Centers and regional expenses.

6

Our Health and Wellness strategy is focused on the Customer journey, offering a pharmacy connected to a service platform, positioned in primary care.

Pharmaceutical

Retail

New Pharmacy

(Omnichannel + Marketplace + Health Hub)

Health promotion	Prevention
Promote, educate and	Monitor and treat chronic
maintain a healthy lifestyle	conditions

Value Proposals

Nutrition

Adherence

Participants

Healthcare Platform

Protection	Primary care
Protect health through	Diagnose and treat acute,
vaccination and	low-complexity conditions
immunization
Vaccination and	Telehealth
Immunization

Integral

Health

Together for a

healthier

society:

Healthier People

(Employees,

Customers,

Community);

Healthier

Businesses

(Diversity,

Education,

Shared Value);

Healthier Planet

(Emissions, Energy,

Waste).

7

Our customers are our greatest asset. In-store experience has increased customer engagement while digitalization has driven more loyalty and frequency, resulting in an increased CLTV.

Engagement is the result of			Pharmacy NPS
the entire customer journey						88 89 89 92	90
				77	82 84
		67	73
60 62	65

CLTV

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

1Q24

App NPS and Delivery/C&C NPS

		*	66	77	81	77
*	~55
~50					68	68
				62
42
34		37
2019	2020	2021	2022	2023	1Q24
App NPS		Delivery and pick-up NPS

• Estimated 2019 and 2020 criteria for current methodology.

	Customer segmentation		Customer frequency
(Millions, % LTM retail gross revenue LTM)		(Purchases per year)
	Frequent customer		Casual customer	Total customers	Digitalized customers
48.2	100%

40%					29
40.7			23
60%	5	8	4	11	2.0 MM
7.5

Customers	Retail gross	Casual	Overall	Frequent	Casual	Overall	Frequent
	revenue	customers	average	customers	customers	average	customers

8

Our digital and health strategy aims to build bonds with each customer to enhance Customer Annual Value (CAV) according to their profile.

CAV = Customer Annual Value

Annual R$ Gross Margin per Customer

Average		Frequent: 277
100*
CAV per
Customer	(Index)	Casual: 27

CAV by Profile

179

Chronic Use

296

Child Care	X
254
Beauty

328

Healthy Lifestyle

DIGITAL BONDS

CAV by Bond (examples)			Profile and bond impact on loyalty
							Cumulative % of frequent customers
201					315
Omnichannel		Injections						92%
	BONDS
206				173	=			45%	71%
	Private Label
App
			38%
	HEALTH
245				527	21%
Marketplace		Vaccination		4%
213					318		0 profiles 1 profile	1 profile +	1 profile +	2 profiles + 3 profiles +
					0 bonds	1 bond	2 bonds	2 bonds 3 bonds
Stix		Other Services

Loyalty progression

• Data for 1Q24.

9

Digital sales of R$ 1.5 bi in the 1Q24, with 46.4% of growth and 17.3% of retail penetration. 70% via apps and 92% delivered or collected within 60 minutes.

Digital sales and penetration

(R$ millions, % of retail gross revenue)

	16.6%	17.3%
	15.5%	+46.4%
13.6%	14.2%
vs. 1Q23

1,550.0

1,451.0

1,325.7

1,179.5

Digital channel mix

(% of digital sales)

*

Super

apps

Desktop 6%

9%

Social 6%

Mobile site 9%

Delivery mix

(% of digital sales)

	Super
D+N	apps
6%
8%

Up to
60 min
25%	C&C
	61%

1,058.6

61% 62%

66% 68%

70%

App 70%

94%	modern and
proprietary channels

95%	fulfilled by
pharmacies (incl. D+N)

1Q23	2Q23	3Q23	4Q23	1Q24
Revenue of digital channels	Retail penetration
App participation in sales

84%	modern, proprietary
and mobile channels

* Call center represents < 1% of the mix.

92%	delivered in
up to 60 minutes

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