Fleury S A : 2023 Sustainability Report

Sustainability Report

2023

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Contents

	Introduction	03
1	About Fleury Group	08
2	Corporate governance	21
3	Journey of care	35
4	Innovation and digital transformation	47
5	Sectorial scenario and performance	55
6	Team of excellence	60
7	Social action	78
8	Suppliers	86
9	Operational eco-efficiency	91
	Attachments	106

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Introduction

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About the report

GRI 2-3 | 2-5

We are immensely pleased to present another edition of Fleury Group's Annual Sustainability Report.

In this document, we reaffirm our commitment to transparency and reflect on how our strategy and actions have contributed to value creation for our stakeholders in the period from January 1st to December 31st, 2023.

The information presented encompasses all activities under the operational control and/or majority ownership of the Company. When there are exceptions, these will be duly indicated in the corresponding item. Furthermore, the data reflects the business combination between Fleury Group and Pardini Group (learn more on page 11), which may result in significant changes compared to previous reports.

This information has been approved by the Executive Board of Strategy, ESG and Innovation, and by the ESG Committee of the Board. It has also undergone external audit (learn more on page 117).

The report's scope was defined based on materiality, updated in 2023, following the methodology called double materiality, and revised in 2024 to also accommodate the material topics of Pardini Group, now integrated into Fleury Group's operations (learn more on page 19).

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In addition to the Main Report, for the second year, we are disclosing a Supplementary Indicator Report. The supplementary document provides our stakeholders with more details on the environmental, social and governance indicators monitored by the Company.

Both documents report information organized according to international corporate sustainability reporting guidelines, which enable standardized communication of ESG indicators.

Readers may choose to engage in a linear reading of the documents or navigate through the content following the adopted refer- ences, namely

GRI AND SASB STANDARDS

The Report was prepared in accordance with the Standard version of the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). The titles of each subchapter identify the indicators that will be reported therein through the acronyms "GRI-" and "SASB-". The complete list of these indicators can be found on pages 107and 114.

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

The Supplementary Indicators Report presents the TCFD Index, reporting on the Company's initiatives in accordance with the

reporting standards recommended by the Task Force. In the TCFD Index, we present the responses or the page where the recommendations are reported throughout the document.

PACTO GLOBAL

The GRI Content Index reports the correlation between the GRI and SASB indicators and each of the principles of the Global Compact, reaffirming our progress in this initiative (access the full list on pages

107and 114.).

SUSTAINABLE DEVELOPMENT GOALS (SDG)

In alignment with our commitment to the United Nations Sustainable Development Goals (SDGs), we have outlined the connection between the content of each chapter of the Report and the targets in the SDG Map (access the complete list on page 116).

CAPITALS

Based on the Integrated Report, we have identified the capitals covered in each chapter.

For any questions, suggestions, or information requests, please contact us at: sustentabilidade@grupofleury. com.br or [e-mail]

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Message from the Management

In 2023, we continued to follow a trajectory of solidity and consistency in strategy execution and results delivery.

We have upheld the principles that have characterized our perfor- mance, including financial discipline, strengthening our benchmark position in quality and innovation, rigorous execution of our growth strategy, and offering solutions that contribute to the sustainability of the healthcare system.

We have successfully completed the first year of the integration journey between Fleury Group and Pardini Group. This movement has reinforced our position among the leading healthcare providers in Brazil, in addition to representing a milestone towards expanding our national presence. It has also enabled business diversification and, consequently, the construction of a complete and integrated healthcare ecosystem that offers a better experience throughout the patient journey of care.

The integration also brings us closer to the overall desired goal of reaching 1.5 million lives in the C, D, and E social classes. In 2023 alone, over 95,000 people in this segment were served.

In line with the Group's financial management and investment discipline, we closed last year with all business lines achieving revenue gains. Key highlights of the past year include the growth of Novos Elos and the A+ brand, as well as the remarkable contribution of the Lab-to-Lab segment to the Company's results.

Gross Revenue reached R$ 6,961.3 million, a 44.9% increase over the previous year. Excluding COVID-19 tests, growth was 49.3%. Pro forma Gross Revenue reached R$ 7,745.6 million, a 9.7% increase over the previous year. Excluding COVID-19 tests, growth was 14.3%.

Honoring our commitment to innovation in medicine and health- care, we closed 2023 with 581 new products and services launched, expanding our portfolio. Particularly noteworthy is our pioneering role in introducing the first blood test to aid in the diagnosis of Alzheimer's disease, an achievement that represents a significant advance in Brazilian diagnostic medicine, allowing for early identification of the condition, and thus improving treatment efficacy and the patient's quality of life.

Our unwavering commitment to corporate responsibility has once again been recognized. We are proud to maintain our position in the B3's Corporate Sustainability Index (ISE) portfolio since 2014. This achievement is further complemented by our fourth consecutive inclusion in the Dow Jones Sustainability Index (DJSI) port- folio, where we stand as one of only eight Brazilian companies out of 322, and the only one in the healthcare sector in the Americas.

We concluded 2023 with robust progress on our ESG agenda, pursuing a trajectory of positive operational and financial results. As a result, we entered 2024 positioned as one of the largest companies in the sector and confident in our strategy of

developing a complete and integrated ecosystem that accompanies patients throughout their journey of care.

Board of Directors and Executive Board

Jeane Tsutsui, CEO - Fleury Group

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Highlights from 2023

EFFECTIVE GROWTH STRATEGY

R$ 6.9 billion in gross revenue, 45% higher compared to the previous period

All business lines with revenue gains

R$ 691.9 million in gross accounting revenue in Novos Elos and Plataforma de Saúde, a 67.6% growth

R$ 1.4 billion in accounting revenue in B2B, a 119.2% growth

R$ 200 million invested in IT/Digital, a 33.9% increase

R$ 21.5 million invested in R&D

FIRST YEAR OF SUCCESSFUL INTEGRATION

JOURNEY BETWEEN FLEURY AND PARDINI

524 service units

34 Novos Elos units

24 technical areas for exam processing

Geographic complementarity

ROBUST AND EFFICIENT OPERATION

17 expansions, 10 of which in diagnostic medicine and 7 in Novos Elos

New Technical Operational Center, in the

Brooklyn neighborhood, in São Paulo

400 logistics routes covering 93 thousand km daily, in the Lab-to-Labsegment

90.5% of energy from renewable sources

PATIENT AT THE CENTER

77.73 NPS in service units

243.5 million exams performed

CARE FOR OUR PEOPLE

70.5% women in leadership positions

+ 95 thousand beneficiaries in classes C, D and E served in 2023

R$ 5.5 million invested in social projects

478.9 thousand training hours

R$ 253.56 invested per employee

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Awards and recognitions

REFERENCE IN THE HEALTHCARE SECTOR

• Estadão Best Services: tied with Albert Einstein, we lead Estadão Best Services ranking in the Laboratories category. This was the fourth time we won such an award.
• 'Estadão Empresas Mais' Ranking: Fleury Group achieved 4th place overall in the Healthcare category, and we were also recognized in the Top 5 - Ethics and Citizenship and Top 5 - Sustainability.
• Top of Mind: for the 12th consecutive year, Weinmann Laboratory, a regional brand of Fleury Group, was awarded first place in the Top of Mind Porto Alegre award in the Clinical Analysis Laboratory category. Additionally, the 28th edition of the award, held in Minas Gerais, recognized the Hermes Pardini brand in the Clinical Analysis Laboratory segment.
• Datafolha Highlight: the Fleury brand was among the high- lights in Home Care in the Datafolha 2023 survey carried out with the population of São Paulo.
• The Best of SP: we were awarded first place in Folha de São Paulo's Best of SP award, in the clinical analysis laboratories cate- gory, tied with Laboratório Lavoisier.

• Valor Innovation Brazil Award: in the Medical Services cate- gory, Fleury Group ranked 4th, followed by Hermes Pardini in 5th place, as one of the most innovative companies in the country.
• Healthcare Benchmarking Award: the 13th edition of the award ranked Fleury Group as one of the best in Diagnostic Imaging Medicine in Bahia, under the Diagnoson A+ brand.
• XXVII Ranking of Minas Gerais Companies (Minas Gerais Award - Best and Largest Companies): in its 25th edition, the award considered the "Oscar of Economy in Minas Gerais" elected Hermes Pardini as one of the best and largest companies of excel- lence in healthcare in the state.
• Reclame Aqui Award: Fleury Group was present in 5 of the 20 awards in the Healthcare - Laboratory and Imaging category, as one of the Brazilian companies with the best reputations and most efficient service operations. The Fleury brand was ranked 1st, Hermes Pardini 3rd, and the brands A+ Medicina e Saúde, Labs A+ RJ and Clínica Felippe Mattoso, respectively 5th, 13th and 20th place.
• AACC (Annual Scientific Meeting & Clinical Lab Expo): Pardini Group presented 23 approved scientific works at the event in Anaheim, California (USA), highlighting the work of the R&D and Personalized Medicine teams entitled "Is comprehensive cancer

panel by next-generation sequencing (NGS) more efficient than cancer-specific NGS panel in the management of non-smallcell lung cancer patients?".

• Lusófonos Creativity Award: in partnership with Grupo Criativo, the Campana brand was awarded the Bronze Medal at a pres- tigious Portuguese design award. This award is the only one in the world dedicated exclusively to honoring and discussing the advertising and communication markets of Portuguese- speaking countries.
• Brand Recall 2023: Pretti laboratory, one of Fleury Group's brands in Espírito Santo, was the winner of the Brand Recall 2023 segment.
• Ranking 100 Open Startups 2023: we ranked fourth in the healthcare services category and 67th in the overall ranking. which follows the most attractive startups and scaleups for the corporate market.
• Best Corporations for Startups 2023 Ranking: we ranked 13th position in the ranking of the 20 corporations that best relate to the Brazilian startup ecosystem, taking into account strategy, infrastructure, operations and reputational criteria.

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• Pop List 2023: for another year, Laboratório Padrão is the best placed brand in the clinical examination laboratory segment in Goiânia.

RECOGNIZED ESG PERFORMANCE

• Best of ESG: Fleury Group ranked 2nd in the Health and Healthcare Services category of the Best of ESG ranking, a part- nership between Revista Exame and the Brazilian Institute of Capital Markets (Ibmec).
• Transparency Trophy: we won the 27th edition of the ANEFAC award - Transparency Trophy 2023, in relation to the 2022 financial statements.
• Top of Mind RH: the 26th edition of the award recognized Fleury Group as the best company in the "Companies with Recognized Practices in Corporate Education" category.
• ISE B3 (Corporate Sustainability Index): since 2014, we have been part of the portfolio of the main sustainability index on São Paulo Stock Exchange.

• Dow Jones Sustainability Index - Emerging Markets: for the fourth consecutive year, we have been included in the index portfolio, which comprises 322 companies. Of these, only eight are Brazilian, with Fleury Group being the only healthcare company in the Americas to be part of the index. Additionally, we are included in S&P's Sustainability Yearbook 2024.
• Contagem Integrity Seal (SIC): Pardini Group received, for the third consecutive year, the seal from Contagem (MG) City Hall, which recognizes companies that voluntarily adopt good integ- rity and anti-corruption practices in their daily operations.
• Pro-EthicsSeal: Fleury Group received the Pro-Ethics Seal, which promotes awareness among companies about the importance of adopting ethical measures, expanding the culture of integrity.
• B3 IDiversa: Fleury Group was among the companies selected to join the first portfolio of B3's new index, IDIVERSA. Launched in 2023, the index combines gender and racial criteria to recog- nize companies that adopt best practices in diversity and equity in the corporate environment.
• ICO2: we were selected to be part of the Efficient Carbon Index (ICO2), which recognizes transparency in relation to Greenhouse Gas (GHG) emissions.

AWARDS AND RECOGNITION FOR OUR CEO

• Value Executive (Executivo de Valor) Award: the 23rd edition of "Executivo de Valor" awarded our CEO Jeane Tsutsui as one of the most outstanding professionals in the Healthcare and Pharmaceutical Industry sector, considering criteria such as innovation, leadership management, versatility and the promo- tion of diversity and socio-environmentalresponsibility.
• Bloomberg's most influential people: CEO Jeane Tsutsui was elected as one of the 500 most influential people in Latin America in 2023 in the third edition of the Bloomberg Linea list.
• 100 most influential professionals in the healthcare sector: our CEO, Jeane Tsutsui, was elected one of the 100 most influ- ential professionals in the healthcare sector in a survey by Grupo Mídia and Healthcare Management.

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About Fleury Group

Capitals used

Related SDGs

Natural

Manufactured

Intellectual

Financial

Human

Social

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About Fleury Group

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Who we are

GRI 2-1

We began our activities in 1926 as a clinical analysis laboratory and, over the years, we expanded our operations to a business model dedicated to offering complete and integrated solutions for patients' entire health journey of care.

Currently, we stand as a benchmark in Brazil's healthcare sector, recognized by the medical community and society for our tech- nical, medical, care, and management excellence, as well as our ability to drive the sector through innovation.

To provide comprehensive and integrated diagnostic medicine solutions, we coordinate patient-centered journey of cares through our 39 brands.

INTEGRATING THE INDIVIDUAL'S JOURNEY OF CARE

Diagnostics

Prevention	Primary Care	Secondary Care	Tertiary Care

B2B and Plataforms	Innovation platforms	Corporate Venture Capital

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Mission, vision and values

OUR ESSENCE

Since our inception, we have been driven by a passion for medicine and a permanent restlessness, that makes us pursue the best in all dimensions.

We understand that those who are passionate about their work deliver their best. This is why our essence is founded on passion, especially for our people. They are our protagonists of yesterday, today, and the future. After all, they are the driving force behind our success, which is ultimately symbolized by the satisfaction of our customers, who are served in a welcoming manner and with a genuine desire to do well.

We do our best because we are

passionate about what we do.

MISSION

To provide even more complete and integrated solutions for healthcare management and personal wellbeing, with excellence, humanity and sustainability.

VISION

Health and wellbeing for people's full realization.

VALUES

Excellence, Respect, Interdependence, Solidarity, Focus on the Customer, Integrity, Innovation and Enthusiasm.

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