Slides
Page 1
Pague Menos CONFERENCE CALL Earnings 2Q26 s
Page 2
This document may contain certain forward-looking statements and information related to the Company reflecting current views and/or expectations of the Company and its Management concerning its performance, businesses and future events. Forward-looking statements include, without limitation, any statement that has a forecast, indication or estimates and projections of future results, performance or objectives, as well as words such as "we believe", "we anticipate", "we expect", "we estimate", "we project", among other words with similar meaning. Although the Company and its management believe that such forward-looking estimates and statements are based on reasonable assumptions, they are subject to risks, uncertainties and future events and are issued in the light of information that is currently available. Any forward-looking statements refer only to the date on which they were issued, and the Company is not responsible for updating or revising them publicly after the distribution of this document due to new information, future events or other factors. Investors should be aware that a number of important factors cause actual results to differ materially from such plans, objectives, expectations, projections and intentions as expressed in this document. In view of the aforementioned risks and uncertainties, the prospective circumstances and events discussed in this document may not occur, and the Company's future results may differ significantly from those expressed or suggested in these forward-looking statements. Forward- looking statements involve risks and uncertainties and are not guarantees of future events. Therefore, investors should not make any investment decision based on the forward-looking statements that may be contained herein. Market and certain competitive position information, including market projections mentioned herein, was obtained from in-house surveys, market research, public information and business publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we do not independently verify competitive position, market position, growth rate or any other data provided by third parties or other industry publications. The Company is not responsible for the accuracy of such information. Certain percentages and other amounts included in this document have been rounded to facilitate their presentation. The scales of the results graphs may appear in different proportions to optimize their display. Accordingly, the numbers and graphs presented may not represent the arithmetic sum and the appropriate scale of the numbers that precede them, and may differ from those presented in the financial statements. Since 2019 our financial statements have been prepared in accordance with IFRS 16, which changed the criteria for the recognition of lease contracts. To better represent the economic reality of the business, the numbers in this presentation are presented under the previous standard, IAS 17 / CPC 06. Reconciliation to IFRS 16 can be found in the earnings release. Disclaimer
Page 3
2Q26 Highlights Jonas Marques, CEO
Page 4
0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 4 Key Messages ▪ Progressively stronger comparison bases; ▪ Lower GLP-1 contribution; ▪ UX in digital channels; ▪ Same store sales 3x inflation (8.0%); ▪ Continued gains in market share (6.7%) ▪ Record profitability (EBITDA margin 6.5%) ▪ Strong cash generation (OCF R$ 188MM); ▪ 12th quarter of financial deleveraging (1.8x net debt/EBITDA) LOWER GROWTH LEVEL IN THE QUARTER CONSISTENCY IN DELIVERIES AND VALUE CREATION
Page 5
0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 We are one of the 10 Best Retail Companies to Work for in Brazil Earnings 2Q 26 5
Page 6
2Q26 Results Luiz Novais, CFO
Page 7
Gross Revenue Consistent growth, even against strong comparison bases 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 GROSS REVENUE (R$ million) 2Q25 3Q25 4Q25 1Q26 2Q26 3,975 4,145 4,306 4,143 4,343 +9.3% Earnings 2Q26 7 GROSS REVENUE (R$ million) 2Q23 2Q24 2Q25 2Q26 3,004 3,369 3,975 4,343 +12.2% +18.0% +44.6% +9.3%
Page 8
Quality of Growth Growth remains healthy, above the market and driven by continuous care customers (CCC) 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q 26 8 COMPOSITION OF GROWTH (% change 2Q26 vs. 2Q25) Market Pague Menos 8.5% 9.3% 3.3% 5.1% 1.2% 8.0% +0.8p.p. New/Closed Stores Same stores ACTIVE CUSTOMER BASE (in millions) 21.0 21.5 22.0 22.5 23.0 22.0 2Q25 3Q25 4Q25 1Q26 22.6 2Q26 +2.6% 5.8 5.9 6.0 6.1 6.2 6.3 6.4 6.5 6.0 2Q25 3Q25 4Q25 1Q26 6.4 2Q26 +6.4% Total Client Base Continuous Care Client (CCC)
Page 9
Growth Evolution GLP-1 explains much of the slowdown 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 GLP-1 CONTRIBUTION TO GROWTH (% annual change) 2Q25 3Q25 4Q25 1Q26 2Q26 18.0% 18.0% 19.8% 14.4% 9.3% 4.2% 13.8% 5.5% 12.6% 7.6% 12.2% 6.5% 7.9% 3.2% 6.1% Earnings 2Q 26 9 GLP-1 Contribution Other Categories • * Data from Jul/26 up to 07/29. 11.7% GLP-1 SHARE IN SALES (% of gross revenue) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 3.9% 1Q25 5.8% 2Q25 7.1% 3Q25 9.2% 4Q25 9.1% 1Q26 8.2% 2Q26 8.5% jul/26*
Page 10
GLP-1 Trend We observed an inflection point in 2Q26, with strong elasticity following price reductions 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 10 SEMAGLUTIDE ELASTICITY (1Q26 = base 100) 82 50 100 116 172 255 1Q26 (baseline) apr/26 may/26 66 173 jun/26 jul/26* 73 Average Price Sales (units/day) Average Price Sales (units/day) • Data from jul/26 up to 07/29. • ¹ Considers only the 10mg, 12.5mg and 15mg dosages, which had the largest price reductions. -50% price +155% volume -23% price +60% volume TIRZEPATIDE¹ ELASTICITY (May/26 = base 100) 80 77 100 160 may/26 (baseline) jun/26 jul/26* 172
Page 11
Market Share We continue to grow consistently above the market 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 11 Source: IQVIA ▪ 11th consecutive quarter with above- market growth; ▪ Gain in share in all regions; ▪ Growth in same stores; MARKET SHARE EVOLUTION (% of total market) 6.0% 6.2% 6.4% 6.6% 6.8% 7.0% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 CW SE SBR NE 6.6 6.7 N 20.8 16.0 16.5 5.1 20.6 1.9 2.0 1.1 1.1 5.3 +13bps +13bps +46bps +14bps +11bps +3bps 2Q25 2Q26 MARKET SHARE BY REGION (% of total market)
Page 12
Our growth composition remains better than that of competitors 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 12 GROWTH¹ BY GROUP (% change 2Q26 vs. 2Q25) Source: IQVIA ¹ IQVIA methodology normalizes sales prices among players, so growth in R$ CPP may diverge from what was actually realized. New stores considers stores opened in the last 24 months 5.9% (0.8%) (1.4%) Market 1.7% 6.2% 2.9% (0.2%) Pague Menos 4.2% 7.4% Associations 6.6% 2.5% (5.4%) (4.3%) Independents 8.5% 10.5% 11.4% 7.5% (0.4%) (0.4%) 3.8% 4.5% Chains (1.0%)0.8% 4.7% New Stores (<24m) Average Mix Price Volume Closed Stores (0.5%) Volume Growth
Page 13
Average Sales per Store Growth We continue widening the gap vs. the Abrafarma average 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 13 Source: IQVIA ¹ IQVIA methodology normalizes sales prices among players, so growth in R$ CPP may diverge from what was actually realized. ² ABRAFARMA (Brazilian Association of Pharmacy and Drugstore Chains) brings together 29 member chains — including several of the largest in the country — and represents the pharmacy retail sector before regulators and other industry stakeholders. 188 220 800 850 100 150 900 200 700 750 760 2Q24 2Q25 888 809 2Q26 690 Pague Menos Abrafarma² Market +8.7% +4.8% +7.5% ∆ (2Q26 vs. 2Q25) MONTHLY AVERAGE SALES¹ PER STORE (R$ thousand) +28.6% +6.4% +17.5% ∆ (2Q26 vs. 2Q24)
Page 14
Gross Profit and Margin Quarter of one-off pressure on gross margin, partially offset by efficiency gains 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 14 GROSS PROFIT (R$ million and % of gross revenue) 2Q25 29.9% 3Q25 29.4% 4Q25 29.5% 1Q26 30.6% 2Q26 1,220 1,238 1,264 1,220 1,328 30.7% ▪ Lower inflationary gains on inventory (-0.2p.p.); ▪ Fluctuation in the present value adjustment (-0.3p.p.); ▪ Reduction in inventory losses (+0.3 p.p.); ▪ Better commercial conditions (+0.1 p.p.);
Page 15
Operating Expenses Operating leverage with 0.4p.p. dilution in selling expenses 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 15 OPERATING EXPENSES (R$ million and % of G.R.) ▪ Expense per store growing close to inflation (4.9% vs. 2Q25); ▪ Increase in maintenance and digital expenses offset by centralized negotiations (bids in freight and acquiring); ▪ G&A growing +6.6% vs. 2Q25, reflecting strengthening of the corporate structure; 861 872 904 906 924 114 106 110 110 122 2Q25 3Q25 4Q25 1Q26 2Q26 976 978 1,014 1,016 1,046 24.5% 23.6% 23.5% 24.5% 24.1% G&A Expenses Selling Expenses % GR
Page 16
EBITDA Record profitability, with EBITDA margin of 6.5% 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q 26 16 ADJUSTED EBITDA (R$ million) 2Q25 3Q25 4Q25 1Q26 2Q26 244.1 260.1 250.3 204.7 281.7 +15.4% 4.0 4.5 5.0 5.5 6.0 6.5 7.0 2Q23 5.3% 2Q24 2Q25 2Q26 5.1% 6.1% 6.5% EBITDA MG. EVOLUTION (% of gross revenue)
Page 17
Net Income 22.2% growth in net income, maintaining the profitability trajectory 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q 26 17 NET INCOME ADJ. (R$ million and % of G.R.) 1.5% 2Q25 1.9% 3Q25 3.0% 4Q25 1.3% 1Q26 1.7% 2Q26 60.2 80.6 131.0 55.6 73.6 +22% EARNINGS PER SHARE¹ (LTM) (R$ per share) Note: Ex-IFRS 16 Metrics. ¹ Earnings per share calculated by dividing the sum of net income over the last 12 months by the company average free-float shares 0.25 0.30 0.35 0.40 0.45 0.50 0.55 2Q25 0.38 3Q25 4Q25 1Q26 2Q26 0.35 0.46 0.50 0.51
Page 18
Cash Cycle Improvement in inventories, still pressured by the opening of a new distribution center 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 18 OPERATING CASH CYCLE¹ (in days) 100 101 103 109 104 32 33 32 34 33 (68) (67) (74) (70) (68) 2Q25 3Q25 4Q25 1Q26 2Q26 64 68 62 72 69 Receivables Inventory Payables ▪ Receivables: +1 day vs. 2Q25, due to a higher mix of GLP-1 analogues; ▪ Inventory: +4 days vs. 2Q25, fully explained by the new DC; ▪ Payables: Stable vs. 2Q25, with no relevant changes in conditions with the industry;
Page 19
Cash Flow Continuous improvement in cash generation 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 19 OPERATING CASH FLOW (in R$ million and % of EBITDA) 210 455 474 573 44.1% 2023 72.5% 2024 52.3% 2025 57.5% 2Q26 (LTM) FREE CASH FLOW (in R$ million and % of EBITDA) (111) 132 212 252(23.3%) 2023 20.9% 2024 23.4% 2025 25.3% 2Q26 (LTM)
Page 20
Indebtedness We remain disciplined in capital allocation, ensuring progressive financial deleveraging 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 2 0 NET DEBT (R$ million and EBITDA multiple) ▪ 12th consecutive quarter of deleveraging; ▪ Reduction of 0.1x vs. 1Q26; ▪ Reduction of 0.8x vs. 2Q25; ▪ Reduction of 3.8x vs. the peak recorded in 1Q23. 508 428 290 400 316 2Q25 3Q25 4Q25 1Q26 1,951 2,064 1,827 1,820 1,803 1,443 1,636 1,538 1,420 1,488 2.6x 2.5x 2.0x 1.9x 1.8x 2Q26 Net Debt + Anticipated Receivables / EBITDA Antecipated Receivables Net Debt
Page 21
ROIC Return maintained at a record level, despite one-off pressures on working capital 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 21 ROIC¹ (LTM) (%) 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 13.7 14.4 14.8 15.9 16.8 17.9 19.4 20.2 21.0 21.2 21.2 ¹ Calculation methodology considers NOPAT (ex-general and administrative expenses) accumulated over the last 12 months after taxes (IR = 34%) divided by the average invested capital over the last four quarters (normalized working capital + fixed assets).
Page 22
Deliveries, Trends and Priorities Jonas Marques, CEO
Page 23
First Half Deliveries First-half results show our evolution 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 23 1H25 1H26 7,598 8,486 +11.7% GROSS REVENUE (R$ million) ADJ. EBITDA (R$ million) NET INCOME (R$ million) OPERATING CASH FLOW (R$ million) 394 486 1H25 1H26 +23.3% 73 129 1H25 1H26 +76.3% 25 125 1H25 1H26 +392.0%
Page 24
Consistency and Strategic Focus Good outlook for the coming quarters 0 0 190 180 197 228 255 35 66 60 55 68 153 15 45 61 82 213 0 0 100 249 216 66 Earnings 2Q26 24 RESULTS TREND STRATEGIC PRIORITIES ▪ Continuous market share gains; ▪ Lower gross margin pressures and capture of new DC gains; ▪ Expense stabilization and operating leverage; ▪ Inventory normalization and monetization of tax credits; ▪ Digital channels UX; ▪ Gradual acceleration in the pace of store openings; ▪ Roll-out of structuring projects in private labels, supply and pricing; ▪ Capturing gains with the first use cases from AI;
Page 25
Q&A
Page 26
INVESTOR RELATIONS http://ri.paguemenos.com.br ri@pmenos.com.br