Edition #548 | December 16th, 2022

HC/EDUCATION: CVM 44 Tracker – November/22

We hereby present our CVM 44 (previously named CVM 358) tracker for November. We publish on a monthly
basis the CVM 44 data, tracking stock trading information of management, Board of Directors and controlling
shareholders for all the companies in our coverage. See below the tracker showing the largest buyers and
sellers of the month.

Table 1: CVM 44 Tracker – November/22

TOP BUYERS
Compa ni es Rel a ted pa rty Wei ghted Pri ce (R$/s h) # of s ha res tra ded Tra ded Va l ue (R$) % of i ts overa l l pos i tion
DASA Trea s ury (Buyba ck) 13.6 624,000 8,487,300 64.5%
ODONTOPREV Trea s ury (Buyba ck) 8.6 850,000 7,293,000 5.6%
COGNA Boa rd of Di rectors 2.3 430,000 986,581 1.4%
ANIMA Control l i ng Sha rehol der 5.0 78,900 396,281 0.1%
HAPVIDA Boa rd of Di rectors 6.6 20,000 132,400 0.0%
BLAU Ma na gement 28.2 300 8,445 3.5%

TOP SELLERS
Compa ni es Rel a ted pa rty Wei ghted Pri ce (R$/s h) # of s ha res tra ded Tra ded Va l ue (R$) % of i ts overa l l pos i tion
SULAMERICA Control l i ng Sha rehol der 21.9 1,415,042 30,939,468 17.4%
MATER DEI Boa rd of Di rectors 7.7 259,600 1,996,850 0.7%
MATER DEI Control l i ng Sha rehol der 7.5 5,000 37,300 0.0%
HAPVIDA Ma na gement 5.5 500 2,751 0.3%
Source: CVM, BTG Pactual

Chart 1: Weighted traded buyback volume (R$ 000) by company per month
120,000

100,000

80,000

60,000
59,413

40,000

20,000
12,165 3,862 8,487
9,867
2,581 1,086 1,311 889 7,293
0 0
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22

ODPV ANIM SULA HAPV AALR QUAL SEER YDUQS COGNA BLAU DASA

Source: CVM, BTG Pactual

 HEALTHCARE: Lower House approves PEC 27/2022, aiming to finance the
salary floors for nursing professionals

Yesterday, Brazil’s Lower House approved Constitutional Amendment (PEC) #27/2022, establishing
three measures aimed at financing the payment of the salary floors for nursing professionals at the state
and municipal levels: (i) defining the responsibility of the federal government to transfer resources for
the salary floors to states and municipalities that provide more than 60% of healthcare services via SUS
(Brazil’s public healthcare system); (ii) authorizing the surplus of the federal government’s public
accounts to be transferred to states and municipalities from 2023-2027; and (iii) authorizing states and
municipalities to breach the personnel spending limit of the Fiscal Responsibility Law (LRF) for ten years.
The PEC still needs to be approved by the Senate.

The LRF currently prohibits states and municipalities from spending more than 60% of recurring
revenues on personnel expenses. But the PEC approved by the Lower House authorizes the payment
of salary floors for nursing professionals to be excluded from this calculation. The PEC would have an
estimated cost of ~R$16bn for the federal government, but it would provide considerable flexibility for
paying the salary floors in the public sector.

A few months ago, an injunction issued by Supreme Court has temporarily suspended the
implementation of new minimum wages for nursing professionals (which had been approved by
Congress before). The decision was based on the fact that more clarification and studies were necessary
on the potential impacts of the new salaries on: (i) the solvency of states and municipalities, as no
financing solutions were defined (at that time); (ii) the sector’s employability, following several allegations
of mass layoffs, as the cost hike will impact the HC industry across the board; and (iii) the quality of HC
services in Brazil, in light of the reduction in the number nursing professionals and the resulting closure
of operational hospital beds.

With yesterday’s approval (which is still pending the analysis by the Senate), one of the obstacles
brought by the Supreme Court may have been resolved (the first one aforementioned). We must say,
however, that finding financing solutions also for the private segment should remain an issue for an
effective implementation of the salary floors for nursing professionals. It will be important to closely
monitor the political developments on financing solutions for the salary floors. For now, we keep our
sector preferences and still favor RDOR/SULA, HAPV, VVEO and MATD, which are all superbly
positioned to play the sector’s market growth and consolidation trend.

HEALTHCARE: 3Q22 suspension cycle – 19 plans suspended, 46

reactivated
Yesterday, health regulator ANS unveiled its 3Q22 suspension cycle, whereby it suspended/reactivated
the sale of specific healthcare (HC) plans based on complaint levels. After analyzing 45.5k complaints,
19 plans (13 from Unimed) were suspended, protecting 388k HC plan members, and 46 were reactivated
(including 23 from Amil; see table below).

Although Amil´s plans represented half of Q3’s reactivations, it is still the HC operator with the largest #
of plans suspended in the year, to the tune of 87, of which 40 were already reactivated. For its part,
Unimed-Rio again featured in the list of suspended plans (accounting for the bulk), following recent
newsflow that it might be in financial difficulty.

The fact that sales of major Amil and Unimed-Rio HC plans remain suspended should keep benefiting
competitors, representing a growth for other dominant players in the Southeast HC market, mainly SULA
and now HAPV (via GNDI). We still favor HAPV, RDOR/SULA, VVEO, and MATD, which are all superbly
positioned to play the HC sector’s market growth and consolidation trend.
 Table 2: Plans suspended/reactivated by ANS
Quarter Action Operator # Plans
3Q22 Suspended Univida 2

3Q22 Suspended Unimed Vertente Caparaó 1

3Q22 Suspended Unimed Rio 13

3Q22 Suspended Santo André Planos 1

3Q22 Suspended Santa Rita Sistema de Saude 1
3Q22 Suspended Saúde Brasil 1

3Q22 Totally Reactivated Univida 3

3Q22 Totally Reactivated Ameron 4
3Q22 Totally Reactivated Unimed Norte 1

3Q22 Totally Reactivated Amil 23

3Q22 Totally Reactivated Unihosp 4
3Q22 Totally Reactivated Santo André Planos 3
3Q22 Totally Reactivated Biovida 2
3Q22 Totally Reactivated Associação de Saude Portuguesa 2

3Q22 Totally Reactivated Associação Metropolitana 2

3Q22 Totally Reactivated Hospital Bom Samaritano 1
3Q22 Totally Reactivated Saúde Brasil 1
Source: ANS
Analysts

Samuel Alves
[email protected]
+55 11 3383 2450

Yan Cesquim
[email protected]
+55 11 3383 2734

Pedro Lima
[email protected]
+55 11 3383 1133

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Rede D´Or Buy R$25.90/US$4.87 2022-12-16

Hapvida Buy R$4.63/US$0.87 2022-12-16

Mater Dei Buy R$6.43/US$1.21 2022-12-16

Viveo Buy R$15.38/US$2.97 (ADR) 2022-12-16