Raia Drogasil S A : 4Q23 Institutional Presentation

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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.

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RD 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
2,953	280-300
pharmacies across every	new pharmacies per year
Brazilian state	in 2024-2025 (guidance)
47.6 million	NPS	92 pharmacies
unique active	net promoter	68 apps
customers (2023)	score
362 million	475 million
tickets	digital sessions
(2023)	(2023)
R$ 36.3 billion	16.1%
gross revenue (2023)	market share
+17% Y/Y growth	(4Q23)
R$ 2.6 billion	AAA(bra)
adj. EBITDA (2023)	rating by
+15% Y/Y growth	Fitch

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

Pharmacies

(Store count, thousands)

4x

Gross Revenue

(R$ billions)

8x

36.3

30.9

25.6

21.2

Adjusted EBITDA

(R$ billions)

10x

2.6

2.3

1.8

1.3 1.4

1.1 1.2

1.8

0.8 0.9 1.0 1.1 1.2 1.4 1.6

2.1 2.3 2.5

2.7

3.0

18.4

15.5

13.9

11.8

9.4

4.7 5.6 6.5 7.8

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

(Brazilian pharmaceutical market. R$ billions. Source: IQVIA.)

171186

145

11 12 13 15 17 19 21 21 25 30 36 43 50 58 66 75 85 96 103113126

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Brazilian population over 65 years of age

(Millions of people. Source: IBGE, 2018.)

Fragmented market: opportunity for consolidation

						(Market share. Source: IQVIA.)		number of
							pharmacies
9.2%	9.8%	10.8%	11.4%	11.8%	13.4%	13.5%	14.1%	14.6%	15.5%	3.0k
		18.6%	17.5%	16.3%	16.4%	16.3%	16.0%	15.2%	15.2%	16.1%	*	5.0k	15.8k
											16.5%		(chains)
		22.5%	24.7%	24.9%	23.9%	23.3%	22.3%	21.8%	21.0%	19.5%	19.3%	7.7k
		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
		32.5%	32.1%	31.3%	30.7%	30.3%	29.1%	29.2%	27.6%	25.9%	22.6%	53.3k	players)
2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	94.9k

(Total)

RD Abrafarma #2 to 5 Other Chains Assoc./Franch. Independents

• Considers in 2022 the acquisition of Extrafarma by Pague Menos on a proforma basis for the entire year, reclassifying the company from the Other Chains group to ABRAFARMA #2 to #5.

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

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

4Q23	RR: 4		AP: 5
		PA: 51
Geographic				MA: 39
presence				PI: 20
AM: 21			CE: 89
			RN: 27
			TO:	PB: 21
			PE: 96
AC: 6			20	AL: 22
RO: 14		DF: 91	SE: 27
		BA: 102
			GO: 117
Total: 2,953 pharmacies MT: 45
MG: 218
Raia: 1,246	MS: 55		ES: 60
	RJ: 213
Drogasil: 1,707
	PR: 161	SP: 1,209
Distrib. centers: 14

Cities: 574 (+34 LTM)	SC: 92
	RS: 128

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

Distance from RD 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

15.2%	16.1%	26.9%	28.0%	10.8%	Market share	10.8%	10.5%	11.2%	7.5%	9.0%
11.5%	18.8%	20.0%	9.9%
								(Source: IQVIA)
	Brazil			SP	Southeast	Midwest	South	Northeast	North
			4Q22			4Q23

Sales and EBITDA* per mature store

(R$ thousands, 2023)

1,174		EBITDA 4-wall Gross revenue
1,079	1,072	1,067	1,060	990	967
164	131	169	150	124	106	121
14.0%	12.1%	15.8%	14.0%	11.7%	10.7%	12.5%
Region 1	Region 2	Region 3	Brazil	Region 4	Region 5	Region 6

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

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Strategy 2025	Our Strategy is focused on increasing the Customer Lifetime Value by combining
the New Pharmacy, including a Marketplace, and the Health Platform.
Together for a Healthier Society.

Healthier People	(Employees, Customers, Community);
Healthier Businesses	(Diversity, Education, Shared Value);
Healthier Planet	(Footprint, Energy, Waste).

Pharmaceutical	Integral
Retail	Health
New Pharmacy	Healthcare
(Omnichannel + Marketplace + Health Hub)	Platform

Focus on	Customer	Logistics	Technology, data and agile	Digital and innovative	RD Ventures
people	centricity	1P and 3P	organization	culture

2030 Ambition: to become the group that contributes the most towards a healthier society in Brazil.

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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 the

entire customer journey

CLTV

Pharmacy NPS

			77	82 84	88 89 89 92
		73
60 62 65	67

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

App NPS and

Delivery/C&C NPS

		*	66	77	81
*	~55
~50
				62	68
42
	34	37
2019		2020	2021	2022	2023
	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

47.6

100%

40%

30

41.2

24

21

60%

5

8

12

1.8MM

6.4

Customers

Retail gross

Casual

Overall

Frequent

Casual

Overall

Frequent

revenue

customers

average

customers

customers

average

customers

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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: 203
100*
CAV per
Customer	(Index)	Casual: 20

CAV by Profile

CAV by Bond (examples)

Profile and bond impact on loyalty

167

Chronic Use

240

Child Care	238 X
Beauty

272

Healthy Lifestyle

DIGITAL BONDS

Omnichannel

App

Marketplace

Stix

175

193	BONDS
217	HEALTH
199

Cumulative % of frequent customers

187

Injections	= 21%			92%
			71%
189		45%
Covid Test
	38%
245
Vaccination
	4%
157	0 profiles 1 profile	1 profile +	1 profile +	2 profiles + 3 profiles +
0 bonds	1 bond	2 bonds	2 bonds 3 bonds

Other Services

Loyalty progression

• Data for 3Q23.

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Digital sales of R$ 5.1 billion, with 57.5% of growth and 16.7% of retail penetration in the 4Q23. Focus on leveraging our apps, reducing delivery time and gaining productivity.

Digital sales and penetration

(R$ millions, % of retail gross revenue)

15.2%			16.7%
+57.5%			15.7%
vs. 2022		13.7% 14.3%	+60.3%
		vs. 4Q22
5,078.9			1,471.0
11.8%	1,341.5
11.1%		1,195.1
	1,071.3
3,224.0	917.8

2022 2023 4Q22 1Q23 2Q23 3Q23 4Q23

Digital channel mix

(% of digital sales)

*

	Super
	apps
Desktop	7%
10%
Social
7%
Mobile site
11%	App
	65%

* Call Center represents < 1% of the mix.

93%	modern and
proprietary channels
84%	modern, proprietary
and mobile channels

Delivery mix

(% of digital sales)

	Super
D+N	apps
7%
8%

Up to
60 min	C&C
25%	60%

fulfilled by

94% pharmacies

92%	delivered in
up to 60 minutes

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