Good morning. How are you? Thank you for being here. Welcome everyone, and welcome to one other Afya Day. This is our sixth edition since our IPO. This is a very special edition, and we are very excited. I think it's going to be really cool that you're going to learn more about the moment we're going through. Let's start. The theme of today's Afya Day is strengthening the core and expanding opportunity. The idea, this is the first Afya Day since our possible merger with Yduqs. Our agenda is really cool. Our first panel will be with Virgílio. We're going to talk a little bit about Afya's thesis. More than that, we're going to talk about the possible merger and how we are thinking about the integration.
The second talk will be with Blanco, and how we're going to generate value to our shareholder, and how we can return the value to our shareholders. Finally, Lélio will close with our digital services and the continuing education for doctors. When we finish these panels, we're going to have a Q&A session up here in the front. Later, we're going to have a Q&A moment at your tables during lunch, exclusive to investors. We are going to explain how we're going to run it. Then we're going to move on to our close-up. We're going to start now. We're going to show you our new IR website. We are launching it today. It's already aired. It has changed a lot, so the experience is friendlier and it's better for you, especially if you want to get information from our financial history and further documents.
The coolest news is that it has an AI assistant, so you can seek information quite speedily in our website. We will be waiting for your feedback, and tell us if we can have any further improvement. The idea is to facilitate how information reaches our investors and shareholders. To start our Afya Day, I'm going to invite Virgílio Gibbon, our CEO.
Hello. Good morning, everyone. Welcome to our 2026 Afya Day. It's a great joy, it's a great pride from our side to talk about our history. Today, this is an even more special day because we managed to join our Afya Day, our chat with stakeholders with our news from 2026.
We have executives from all over Brazil and from other parts of the world to talk about the transformation and the planning after the announcement of our intention to merge with Yduqs and our ecosystem challenges that is our great business. You are very welcome, and it's a great joy to be here with you today. I'm going to do a brief recap of our last six years, especially when you started to follow up with us when we went public in 2019. We are the only globally known ecosystem that is integrated for professionals in health and medical areas that generates values to medical education and everyday routines, connecting doctors to industry, leveraging income, bringing more patients, and generating a ton of differentials, especially when we talk about our undergrad studies and our continuing education.
We have here a 3-minute footage to show how this ecosystem is becoming a greater purpose that connects almost 10,000 collaborators and several doctors.
" Até onde a medicina pode chegar? Quais são as fronteiras da saúde?"
What are the frontiers of health?
[Foreign language]
Where can we take it with?
"Quem queremos ser nessa história que está se escrevendo?"
Who do we want to be in this written story?
"Grandes transformações começam com um sonho."
Great transformations begin with a dream. Our history is proof of that. Afya was not born to be just a great company. It was born to be an answer.
[Foreign language]
An answer to those who have a vocation to care and needed to find the right place to make this dream come true. An answer to doctors who needed an ally for their journey. A response to our stakeholders, partners who trust in building the solid, sustainable, and people-centered ecosystem, and a response to the whole society that needed to believe that it is possible to have access and be cared for. In the last 10 years, we have expanded access and raised the quality of training professionals aimed at transforming health in Brazil. We grew exponentially year after year with consistency and responsibility. We combine medical knowledge and technology, supporting the education and development, and also through digital solutions that are now part of the daily lives of thousands of professionals.
With great pride, work, and dedication, we have become the greatest ecosystem of education and solutions for medical practice in Brazil. Leader not only medical vacancies in the country, but for doing what no one dared to do and reaching where no one dared to go. Presence in 52 cities. 37 undergraduate units, 32 with medicals. Plus 93,000 employees, of which 1,700 physicians, 3,700 medical vacancies in 2,700 total. 85,000 undergraduate students in total. 50,000 students in continuing education. Plus 200,000 active users in the ecosystem. Plus 3.5 million free services to those who need it most. But what now? And the future, what will happen in the next 10 years? The future is not something that just happens. It is something that is built.
And in an ever-changing world, a decision is permanent, that how we choose to act as an institution, as a leader, as those responsible for education and health. We know who we want to be in this new world. A point of reference in the midst of uncertainty. A light for those who honor every day the oaths they made. Afya, it is made of courage, vision, and people who believe, in the last 10 years, have brought us here. The next 10 will be even more transformative. How do we join this ecosystem with several solutions and services and captures the purpose that connects the almost 10,000 collaborators of the company today?
There is no doubt that if we did not have this purpose within the 1,700 doctors and our 3,500 collaborators and 17,000 doctors doing continuing education, if you pay attention to this number, we have more doctors doing some kind of specialization than the entire resident system in the country. So please watch our responsiBE. We have 26,000 graduating students in medicine. Today, 307 spots. This will lead us to form more doctors than many of the northern states in Brazil. So we are talking about 300K doctors as users, and we have a system that we reach directly over 1,500 doctors through our solutions and capillarity. If we multiply that by the number of patients that are directly or indirectly impacted, it will show you the impact that we have been causing inside our company, and yet generating spectacular returns to our students, our doctors, and our stakeholders.
And we have built this strong foundation for this ecosystem, but with lots of performance and dedication and effort. We would like to show you some numbers. Since 2019, when we went public, we had an operation in seven states in 2019, and we expanded to almost the entire domestic territory with operating in over 20 states. We had 1,200 spots in medicine, and we have reached 3,800 spots. Our revenue, it was BRL 670 million to something next to BRL 3.8 billion. If we can multiply by five or by six, depending on the line of our balance in the past five or six years, when we talk about undergraduate revenue, we left from 0.6 to 3.4 in revenue. Today, we left our adjusted EBITDA from 0.3 to 1.7.
We always said that Afya had a tripod that was resilient and predictable, with high growth, with yields and having over 40% margin, keeping our efficiency, having all our ecosystem that has and never seen resilience to our doctors. But none of that would have been possible if we had not this obsessive focus on working on differentials and quality. This is an example from 2026. We have reached academically nine CIIM accreditations, and we are seeking this accreditation to all our institutions. It is just a matter of time. We need to have the entire accreditation method being carried out. Also, this accreditation will have our students accepted all over the world. So this accreditation for CIIM is key. We have invested, in the past 12 months, over BRL 100 million in physical infrastructure.
We have rooms, we have labs, we have clinics, we have practical simulation in our units. When we talk about research environment today, Afya is the company that publishes more scientific papers in Brazil. We have 4,500 papers with over 90% in medical area. We have international papers with 333 articles within the A1 and A2 classification. This in 2025, comparing to 2023, we have increased 6.4 our production. We try to work with this resilience, keeping our occupation and keeping our schools attractive and having 100% of our occupation. I know that throughout this year, we had some people taking part in our third Afya Summit, we show our chain of value, the value of how we connect industries, patients, students, doctors, our CBCs that generate value in our flywheel of Afya, and Lélio will comment on that.
Many of those with over 1,000 doctors and representatives of the industry being connected within our ecosystem. We have over 200 active in contract, either schools or educational programs, providers, pharmaceuticals, hospitals. They are consuming Afya somehow, either by continuing education, access to doctors, or more attractiveness to jobs, or helping us with an education process within our medical schools. So we connect people, we increase our engagement. Today over almost 600 partnerships with healthcare and government in reaching our practice in the graduate and in continuing education. We have a ton of impact especially in needy communities. Recently, maybe in the last 18 months, we dove right in in our AI program, and we are launching this new curriculum called AI First. That is our students, if they joined us through any entrance program, we know what kind of individual is studying with us.
We do all assessments. We build this development plan according to their soft and hard skills gaps, and we follow up on with them, and we build their learning process, their knowledge with real situations. It's basically creating an avatar that will grow on with the student, that interacts with our digital solutions and offers an educational experience even 5 years, 10 years after graduation. Let's say they join the iClinic, and then they have a patient standing in front of them, they are having an infarction, and then they will revisit the protocols based on the objects that are set in our articles in our AI. We don't do that only just to education and decision-making, but also to help educating our students by creating medical cases, all based on AI, to do a better decision-making process.
We have tons of benefits and efficiency that we always look in the Afya Play that is available for free with over 5,000 objects generated or created and released daily for the sake our students consuming in a very direct way. We train over 10,000 physicians in AI courses, free courses or premium courses, and some were paid for, and increasing our ecosystem as well. Tools to support each field is not only GPT-based, but it has to have the way of talking and dealing. Afya, in a new curriculum, not only integrated with the best technologies, but creating an avatar who is a physician or a student and will follow the whole journey. It's not only about quality or results if we don't fulfill our social role.
Something that made me very glad, a work in 2023 that we are updating in 2026 is the SROI, the social return on the investments in 2023. We measured 20 of our units, taking the municipalities we call control municipalities, to have a payback to society with a methodology by an independent consultant firm, reducing hospitalizations in the public network, increase of vaccination for children, and was quantified in reduction in expenses and benefits for social aspects. To each investment of Afya, it is bringing benefits for society. In the new study, we go from 20 medical schools up to 24, 3 municipalities covered, being packed by our units. These are the indicators, the metrics that help us to make tangible where Afya is present, has its footprint. We have 564,000 in medium-high vulnerability municipalities, almost 100 in specialties.
Inland, in rural areas, is not only the lack of a consultation, but in specialties. We have this in our units, 15 different specialties. So in a radius of over 500,000 kilometers is an expertise that is saving lives in those units. It is nothing by chance. It increases quality, reputation, social impact, and brings a financial return. Due to this impact, we were able to have a finance from the World Bank with some social governance that. We reach them in reducing over 15 basis points for our cause at each measurement. High impact, connecting us with the cities that we are present. So for the last 6 years, an amazing, spectacular delivery, always providing guidance to the market, always overcoming the targets. We have done 21 acquisitions since our IPO. Now, what about the next 10 years? The market has changed.
There are tons of differentiations. A passionate team, always delivering and overcoming the guidance. How do we grow and deliver and add value for the next 10 years? The market has increase in competition, regulation uncertainties that we are seeing for the last 2, 3 years. 7 to 8,000 seats in medical schools that we have tried to fight against. 100% of our occupation, full occupation. We have reached maturity, delivering dividends and repurchases for the shareholders. But how do we provide growth if the education sector is rating the lowest figures that we know so far? Why it looks? That's the question, because it makes sense for us to assemble this platform that's totally, fully differentiated in our ecosystem. We are gathering ecosystems, a full health ecosystem, also higher education with a capillarity that is no match in the country.
That prepares us for the 10 next years, but to unlock the growth for the next years of the combined company. Talking about the combined company, Afya currently has BRL 3.8 billion in revenue, and we about a BRL 10 billion company. But more than that, the medical seats, we have this amount of seats, and we have 3.8 thousand medical seats. So we have multiples that we will have. Accretive capital allocation in terms of the acquisitions. Blanco will show in his presentation, we have an average of transactions since the IPO, multiples 4x to 6x. This is the average. After all the synergy, this will overcome all records in terms of attractiveness of capital allocation for our investor. A company that will generate BRL 1.2 billion in cash, that we have this commitment of distributing 50% of this amount to our shareholder, and reaches 38,000 medical students.
But more than that, besides the synergies, it is how we unlock growth within this new player that we are combining into a business that is still a premium business. 50% of our revenue in medical education, the Ibmec, that is a platform that I will mention later on, and over 66% of our EBITDA operational result in cash flow and cash generation from a resilient, predictable business with higher complementarity. And the higher player in medical education, a ton of synergy and way ahead of capturing less risky synergies. But what are these growth avenues? I will tackle four new points that weren't here at Afya. First, our health ecosystem. Afya was reaching over 95% of maturity. So adding to Yduqs seems we have some opportunity to increase the frequency, creating 10%-15% more in volume. So it's almost basal.
Or will make it mature, and will make grow our medical base foundation. Those that follow us for the 2 last years, you can see among these cohorts that it's the greatest organic leverage, because during the pandemic, we grew a lot in medical education. But we saw that our medical courses will reach maturity. So it's a regulated market. We don't know what will place tomorrow in terms of capital allocation. We'll provide opportunities. So under Afya brand, all the full health portfolio, and this fits perfectly in our operations. A lot of strategic meaning, especially in the small, medium-sized cities, where Afya brand and the physician that region is part of and all other medical professionals or health professionals want to be part of this institution. So we are maturing the operations with the average ticket above any competitor in terms of on-site medical classes.
This, when you check in the med, this is strong brand in good areas to work with this opportunity and expand it. The same way in lifelong learning. We are in 25 cities. Our supply in grad and extending continued education. This lifelong learning, it takes place in the weekend, so we can expand with installed capacity, not only G&A optimization, but create more capillarity in within. And Yduqs, the second-greatest player, already has a big footprint, not only with medical schools, with partners, clinics, and hospitals, and users that will be benefited by our digital medical practice solution with more audience monetization channels and more added value to the industry. The second leverage is Ibmec. It's a fantastic brand in the Southeast region with the perfect acknowledgment of its existence, but not so much explored in very needy regions, North, Northeast. We are expanding to Fortaleza.
It's a capital city with a lot of opportunities to grow. So we'll accelerate due to our Northeast, Southeast footprint and to gain agility, but will serve for the lifelong running health management, how to gather forces for postgrad dedicated for management. Connecting to the third point, if we check the superior education platforms hybrid aspect compared to on-site education, Brazil has the greatest incentives in the planet to have a university or third level of education. And if we see the other countries in Latin America, and on the other hand, the greatest gap in wages or salaries if compared to those that only have the secondary level education. So like I said, 24% versus 48% OECD. So what's the dream of a student? Have a postgrad diploma at Ibmec.
We have this structure for digital feature, and this makes sense to reinforce our muscles with this footprint that only Yduqs could bring to us. Most of that, it unlocked the fourth line for the last 3 years, 4 years. We were very narrow looking the assets that we were looking for medicine, medical education, 67% of the revenue at that institution. There were places that could be a better capital location with more efficiency, but we did not have the muscle or a platform that would help us to get this energy of distance education with the diversity of courses. In this combined company, we really become a player with a strong balance sheet, a strong currency, and a very big footprint to extract value and to consolidate after the consolidation of this new company. As such, we have the synergies. Well, here it is. Apologies.
Either me or you. One more slide. That it is. When we chose to make sense this kind of transaction or trade to have the player before any discussion of price or trade, really a great learning with Bertelsmann. Let us not go into a commercial discussion if we do not see the size of synergies, and we see it in this merge. We have an international consultancy firm to help the consolidation team. We have one taking all the relevant contracts by each side. We do the cost driver for each contract for the best benchmark, assess everything that can extract value from either company. Based in the study that took 3 months, validated with the C-level from each company, we reach a synergy of expenses, costs, and CapEx to BRL 2.2 billion.
We are talking about 20%-25% of market cap and 80% of synergies that will be captured in 3 years. Well, okay, but we have the synergy, and this is complex. That is why we looked into Yduqs. I started my C-executive path in education at Yduqs. I really admire all the work and the professionals. It may be 5 of you that got to C-level and 2 that also. Can you raise your hand? This was not a rehearsal. 1 people , 2 people , 3 people , 4 people, C-level, and 240 executives that were bought and worked at the other side admire our house. So we know the platform, the architecture, the systems. In a precondition, we have governance. We have the same controller. We have the definitive leadership and a way to go ahead. To deliver, it is not to be easy.
Denis Del Bianco that I want to introduce you, is with us since 2019, since the IPO, went through different departments, was Vice President for Corporate Service, and also a partner in the system of shared services, and also the rollout taught us to all the units, and then came to take care of our shared system. Now he goes to a continue education, and he knows in depth. And was my partner in my life before this that helped to deploy the system and the shared systems at Yduqs. So Denis, you will be our leader integration. You tell us what you can, how you are doing, how you are planning this integration. So how you extract BRL 2 or BRL 2.2 billion. Well.
Good morning. Good morning, everyone. Please be very welcome to Rio. Today is a little sadder because it's raining. We were hoping to welcome you with a beautiful day. Rio, besides being my hometown, since yesterday, it's also the headquarters of the clean team. The transaction is subject to preceding conditions. We have some government approval needed, and everything has to do with the planning of what we will be able to do after we get the approval. Well, I am Denis. As Virgílio mentioned, I've been at Afya for seven years. In these seven years, three and a half as a service management. Besides my people team, I would work with shared services from corporate IT, and I helped to create the integration machine that Luis Blanco will also mention. We have reached a level of excellence in integration.
I had this role until the arrival of my partner, Mirella. With her arrival, she took this management seat, and I started using with the BU of continuing education. Three plus five years later, I had the invitation to be integration officer. Up till this moment, the BU for medical practice and continuing education has been subject to a debate of integration, and it will be under Lélio's leadership. He will talk about it later. So where are we in this transaction? Everybody will remember the proposal of matching the businesses that were approved by both councils at the end of September. Following up, we started mobilizing consultancies and legal teams, and that was end of September, beginning of October. This transaction has some preceding conditions, and maybe the most important one are two components.
First is that this transaction, it still depends on the approval by the board of directors of both companies. So by the beginning of October, we invited the assemblies, and it should take place by the end of November, beginning of December. Once it's been approved by both board of directors, we should have the CADE assessment. It's important to mention that in such a transaction, we need to go through the due process with the antitrust assessment. With that, we expect that it should last from nine to 11 months. We are talking about June by nine months and latest August. So from now to August, there are several restrictions to sharing sensible data. Both companies need to keep on operating as separate companies, independent companies, and especially as competitors. They are still competitors throughout this period.
What the legislation allows in this period is the setting a clean team. This clean team, given certain conditions of the antitrust protocol, this clean team can start working on the planning of this integration. So basically, what is the role of this clean team that we have set up since yesterday? This team has been established, protocols have been signed, and this team has one role right now: to plan how we are going to organize the systems, the processes, the products of this combined company, and how they are going to work since day one between first day and day 100, and what can we do immediately in terms of capture of synergies, what we must do over the first 100 days. That refers into integration of systems, change of systems, and this may take a little longer for our capture.
At the end of the day, the greatest role of the clean team is planning. To set up a plan so that on day 1, everybody knows what they need to do. Virgílio here mentioned briefly, and it is quite clear to us, both for the team as the management team and my partners and so on, it is quite clear that there is a certain skepticism from the market about the publishing of synergies. We have had some recent history of processes that failed in capturing published synergies. Besides governance, as mentioned, maybe for me, what is the main point, quite differently from those transactions we have seen here, we have a very clear governance. We have a great controller. We have a controlling group that involves the current Afya controllers plus reference Yduqs shareholders. We have a solid shareholder agreement.
It is clear that the company will be led by Virgílio when the process is over. Virgílio will be the CEO. The role of the Yduqs CEO in the new company has also been set. The issue on how much we have evolved in governance keeps our team at peace while planning the execution for the future. Not only that, also the companies have decided to separate the time of very senior executives, so the teams that were set for focal points and for the clean team, we are talking about 95% of executive reporting directly to C-level executives. We have people with great talent and history in the company. The third point, just as important, the decision of the company to do that the team dedicated to clean team have exclusive dedication to the planning.
We are talking about 12 people, 13 counting me, that are set aside from their everyday operations to work 100% in planning this integration. How are we organizing this team? For each of those pillars that you see here, this is the structure of the exclusive clean team. We always have a pair, one executive from Yduqs, one from Afya. Once again, executives that have left their previous positions and are here to roll out the plan. On the side, we have a team responsible for master plan. This is the planning of all activities that need to take place from day 1 to day 100, and so on. The second group, that is value capture, that is responsible, let us say, to operate the business plan. We have a designed business plan with synergies that have been mapped.
The idea here is to detail these synergies, but we also need to input all those actions into the master plan. Then we have two structures here that are more dedicated to people and talents. The first one, more focused on organization, so how the company is going to work, how the organization is going to be from day 1, and issues related to compensation and benefits and union relations. This is on pillar number 3. Pillar number 4, maybe we are going to have the most strategic asset. Here we are working heavily on culture, change management, but mainly on talent management. We are going to ensure that our greatest talents are mapped on both sides, and in the new organization, we have room for our best talents in their best roles. We close with two pillars that I call architecture.
Here we have anticipated how the academic architecture is going to be. We have two different ways of working medicine, and these teams, in a clean team regime with exclusive dedication, they are going to work with the academic architecture ahead with health, remote learning, medicine courses. The last module, we are talking about IT architecture. What systems remain in each area and what we need to have in our master plan to get there. Well, guys, at the end of the day, Virgílio talked a lot about the credits of this transaction. It is quite clear what needs to be captured. But the difference between us winning or losing this game depends on discipline. In this first stage, discipline on the organization, on planning, designing, and architecture, and then after D1, discipline on executing this master plan.
Here I have no question in my mind that we have the greatest team set up. I'm speaking on behalf of the team of 12 that are with me and the other teams that are the focal point, and I am sure that we are going to do this incredible integration case. These were my comments. We talked a lot about integration. To keep on working with our agenda, I would like to invite my partner, CFO from Afya, Luis André Blanco, to talk about M&A and capital allocation.
Thank you, Denis. Welcome, everyone, for our very dear sixth Afya Day. I'm also from Rio. We have three Cariocas that have been on the stage, and it's great that it takes place here in Rio, and it's great to share with you a little bit of our consistency and discipline.
To start talking about our consistency, just looking at the past, how we have behaved on delivering results. To the left, we have our history starting in 2021 up to 2026, our EBITDA and revenue history. We have a 21% in revenue and 22% EBITDA, which are quite a solid delivery. As Virgílio mentioned, we have always delivered over six or seven years since our IPO, all the guidances that we promised the market. This consistency in revenue and EBITDA also translates into an FCFE consistency. Here, we have set in our history, and we calculated the simplest way possible from the variation from liquid debt associated to all shareholders' returns and M&As that took place over the period. We have this risk history, and we talk about this free cash flow and equity allocation that I want to go over with you.
Where do we allocate this free cash flow equity? We like to think about this allocation as something here that we look at, basically, well, this picture of 2021 until the 2Q 2026. As I mentioned before, we had BRL 3.1 billion, and we returned to our shareholders BRL 1.1 billion between repurchase and dividends, same bar, and we have had acquisitions that have less to BRL 3.2 billion. I'm going to comment that in the next slide. To conclude, we have had 1.2 liquid debt, and we closed the second quarter of 0.8 x. This is a very low leverage and very low cost. Thinking of this allocation that we have, we can divide those basically into three boxes. Our shareholder returns, dividends and buybacks. The second one, our inorganic M&A growth. Also what we have done with our expansion CapEx.
These three boxes are the main goals of my slides here, and to convey to you how we think and how each of these items and how we allocate the cash generation, bringing results to the company. Starting with shareholder returns. If we look at our history also from 2021 to 2026, Afya has returned to you, shareholders, 36% of our free cash flow equity over the period. Depending on the period, we had more dividends or a little less dividends. Then also depending on the period, we have a great participation in buybacks than dividends. How do we think about it? The return to shareholders is done from the moment we feel comfortable with our leverage and when we have a greater return to generate cash to the company.
Every time we find this binome of adequate leverage, along with the opportunity to allocate in investments, organic or inorganic, we return it to the shareholder. But then you ask, "How do you decide between dividends and buyback?" We decide from the price of our dividends and buybacks. We have our overview, and we allocate by buyback or a dividend according to the share price to avoid buybacks. I would like to highlight also on this slide that in the past 6 months of our first semester, we returned to our shareholders 106%, and we also ended the period with a 0.8 leverage of debt over EBITDA. Following up on that, our greatest decision here on capital allocation was M&A. M&A, if I look at the picture since the IPO, we have executed 22 M&As over the time, and 11 were in the graduation system.
Also, as PM, in graduation, these 11 deals represented BRL 4.1 billion. We always said that our M&A, after synergy, they were between 4 to 4.6 EBITDA, but the average was evaluated 4.6 at the total of almost 22,000 seats purchased over the period. All these M&As were run, as Denis mentioned, with great consistency and discipline. We are very consistent in our evaluations. We do not do the math, just a simple math is so much per seat. It's always cash flow and thinking on the tier and the nominal tier must be unleveraged. When we take a picture of these deals and these tiers, we took a picture of the last 3, which is Onidonto, Unigranrio and Hiub. We had this hurdle over 20% that we sought in terms of leverage.
In these 3 specific deals, we generated an added value on our EBITDA of 12.7% in the year of the transaction. This is quite a positive result of this capital allocation. Not only that, we also invested in 11 deals of digital or techs in continuing education. On allocating BRL 0.5 billion with a 4.1x EV over sales, there were 8 acquisitions and 3 on education mergers. Why am I highlighting this point here? Because these acquisitions, they created a new segment. We had 2 segments until 2021, and from 2021 with the arrival of PEBMED and iClinic, which is a segment led by Lélio, which is a medical practice, and we build a ton of reputation along with the doctors. We serve more than one-third of the doctors in the country.
We provide support to thousands of appointments, of prescriptions every day, and this builds credibility along with the medical community that this, it's not just marketing. No marketing expense will set this off. We expanding every day, increasing the assertiveness of medical decisions, increasing their productivity, and making them make more money. Because a doctor trusts our solutions, either through the clinical side or productive and charts, they will exercise their profession, and this is priceless. This builds credibility to the Afya brand. When compared to the entire sector, we have the lowest marketing expense, but the most effective marketing expense.
We always mention when people look for this, we are helping these professionals all the time. So besides unlocking a segment E along with SPN and continuing learning, we'll generate 15. So 4.1 x from the acquisition regarding the revenue is almost BRL 500 million in organic growth in this sector. So moving on, well, the path of M&A, what about Yduqs? We see Yduqs doing 10 years in one after the IPO. Up to now, we did 11 transactions with 2,000 seats. Here, with Yduqs, we have 2,100 seats in 10 years in one transaction with a multiplier of 1.1. EBITDA, if we compare this multiple is 2.7, 3.8 EV/EBITDA to 2.7. If this transaction is approved, there is a price after synergies that we obtain 2.7 x after the synergies, a more accretive up to now.
A leverage 1.6 x combined company before dividend distribution, we get to 1.2 x net debt/EBITDA. With the generation of free cash point for equity of BRL 1.2 billion, and we have 60. You have this in split. It's the volume, extremely meaningful, and a valuation very attractive for us. But is that why we did this transaction with Yduqs? No, I will show now why there were other advantages. But before that, I would like to tackle what's on the screen. The dividends that will be paid, that we are committed, that generated doubts from the investor. But this is clear how this behaves. Then the transactions agree that Yduqs will pay BRL 750 million, like the free cash flow to equity, the greatest from both.
Afya will do it if Yduqs does not reach a free cash flow to equities up to BRL 750 million, there will be a top up, 69%- 31%. I can provide an example. Let's say that Yduqs will generate BRL 750 million, that is the midpoint from the guidance for 2026. This will generate a gap of BRL 180 million. As Afya, in this moment, the lock box date up to the closing date, how much Afya would have to pay for dividends would be free cash flow. That in this example, I inserted the 12 last month that were BRL 7,500 million. Plus the top up, that is 180 x the relation of 2.2, that would be BRL 400 million. Afya would have the right between the June 30th, this amount, or do the dividends or rebuy.
So it's important to highlight the relationship is just a 69%- 31% is unchangeable no matter the economical execution or from us, either us or them. This is locked, but the amount of shares that the shareholders from Afya will receive, as we have announced, will be updated according to the rep buys or the new buys. What Yduqs brings to us increases our acquisition pipeline. We were very dedicated. The 60% of medical sources in the long term that would get to 89 companies with 12,000 medical seats. With Yduqs, we expand our potential of M&A target to 135 companies with 21,000 medical seats. Not only that, Yduqs brings more liquidity, a critic that we see from the investor, the low liquidity rate, BRL 7 million in liquidity that we had daily in the market, adding to the Yduqs liquidity.
Keeping turnover, our 43%, we get to 70%, which is very interesting, make us be part probably of a different MSCI and the maintenance at the Ibovespa or the market capital, trade capital. We bring all this new opportunity with Yduqs. To close, I bring this slide, which is the third way to allocate capital. I went over the return to us and buybacks. I would like to present our last slide on CapEx. That brings new opportunities for revenue different from other companies in the industry with a CapEx linked to property in that we also have invested in the last 18 months, BRL 205 million in infrastructure, labs, equipment, books. We invested more still in intangibles, in content, because Afya is much more than undergrad. It's a full ecosystem for a physician.
I'd like to highlight, in these 18 months, we accelerated a lot investments in technology, not only for medical practice, but for continued education with BRL 178 million in tangibles and BRL 40,000 million content to accelerate our growth. Therefore, from now on to say what will be the results of this acceleration of intangibles that we are investing. I'll pass the floor to Lélio to show how we will get all the payback or the return on these investments.
Good morning. It's a great pleasure to be here with you again, sharing what we'll be doing with the invest or have been doing. Thank you, Virgílio, Blanco, Denis. It's a great pleasure to work with you. Also it's a privilege, in fact, to work in a company with this capacity of investments to accelerate the delivery of our ecosystem.
An ecosystem that reaches 80% of physicians in Brazil. They are registered as having news or using 508,000 registered and more than half of users are active ones of our solutions. Almost 300,000 use our solutions at least once a month. Our intention is to intensify our relationship with this base. A great part of the investment for this year is to accelerate the delivery of experiencing this ecosystem, our virtual cycle or our flywheel. It's based on these three assets. Qualified audience, that is part of this investment to grow and keep the audience that through the use of our solutions, generate data. Not only the digital behavioral content, courses, consumption solutions, as well the data from the medical practice, prescription, the electronic report.
This enables to improve the experience of these physicians with the ecosystem and then make us able to create new avenues for monetization, with special B2B pharma industry providers and much more, those that want to have relations with this medical audience more. A lot of this experience done manually and the investments in main ecosystem is to create capability that enables the systematizations and scale up this. We have been creating components of a technical foundation. When we combine 11 health techs, I have at least 11 registrations, registers of physicians or solutions for logging. If a physician uses more than one solution in a systemic wise, it is more than one user. This is, I cannot relate with him as an individual. We do it manually through campaigns and much more, but this doesn't scale up.
Part of the investment, it seems simple, but those that work with technology, nothing is so simple. Is to unify medical registers and solutions for login. It was started, but with Denis into the clean team, we accelerate the unification of these business units to capturing operational synergies and the relationship with this persona, which is the physician. We are serving the same physician. One with iClinic is used, is in a classroom for graduation. In the second semester, we are unifying the business units. And the audience, our primary focus for our investment this year, we have to improve with this perspective. Volume, very important to us to grow our base with, although we have 80% of physicians registered, I have more of the, we have with recurrent use, measured through mail. And we want to increase the frequency.
I want this physician using it every day, our solutions, I want to be present daily. And depth, I want to have more surface of relationship. This physician using more solutions from my ecosystem, generating more exposure with products and more data that enable more thesis, more capacity, and to improve and grow our audience in these three perspectives in a scalable and systemic way. How do I create this audience? These are flags. Whitebook, our main products for clinical decision by bed. Those that are the emergency rooms, any of these rooms, 60%-80% of the physicians have our solution on their hands. More than 400,000 physicians registered. We have an AI innovation with over 100,000 physicians using it. Whitebook, I have 32 million consults annually or search queries, which is valuable. I will bring an example to generate clinical intelligence.
iClinic is one of the major solutions for e-report, with over 50,000 active subscribers, over 3 million patient consultations per month. That enables clinical research that we're still not doing yet. We started conversations this year how to apply this asset in clinical research activities. Our continued education platform with over 10,000 e-students and over 56,000 users take into account digital platforms in our courses, over 1 million of hours of educational content consumed. This is value in the individualization with this physician. In our greenfield target in the last 12 months, we have reached 20 million prescriptions in our platform with 46,000 prescribing physicians. This is an asset that is interesting the pharma industry. Just recently, Brazil released the issuing of prescription that are yellow and blue through digital means. This is very important to us. That makes the growth of monetization.
The volume of e-prescriptions will grow, therefore the increase of monetization with this asset. Showing some innovation for Whitebook. We embedded AI with a conversational interface for the user. With this extreme responsibility that the content that feeds as LLM, we didn't create it, we used available in the market. We created content that feeds the LLM to ensure assertivity. We have this over 100,000 users and high level satisfaction, 3 million searches, and those 13% are using daily. We believe that the growth will take place. The Whitebook, as I said, many users, 32 million searches of clinical decision annually. This is an insight that we work to generate value. I will call to the stage Dr. Diana, which is physician from our research center, would share with you a use case of these searches and data through the Whitebook. It's good to have you.
Tell us what you're doing with it.
Well, first of all, I'd like to say it's a huge pleasure, delight to be here. We'll talk a line of research that is part of my line of education and have the privilege to present last month in China in a conference of the OMS of a World, WHO part that we are doing. What's our major aspect? Lélio mentioned how much our data can generate clinical intelligence, and I'll bring to you a practical example how this is taking place. First, we look into the Whitebook data, which has a high level engagement. About 170,000 physicians that use Whitebook to research clinical cases. They are within the emergency room. They are doing the prescriptions and thinking about diagnosis. So we capture the data that it is being researched. Second stage, we assess the signal detection.
That means look in the historical curves of access of our users. When we see historically we were not expecting that increase, we see that there is something different, and we check the signal in a more special way. We apply algorithms of machine learning to do the analysis there and generate insights that are regional. We look into a state or a specific region. So these insights are mapped, and our clinical team validates it. So we gather, we talk with our physicians and to check if the increase associate to an epidemiology in that venue. If we understand that this movement, in fact, has some possibility of being important clinically speaking, we provide a communication to the physician that is by the bed in that location, the updated content based on evidences.
Here we have our great advantage, which is the engagement of our physicians that goes beyond the individual interaction. With that, we can
Generate source of data for the health system. We are going to bring a practical case that we have recently experienced. We are seeing the measles issues and cases. We noticed that our users, they were researching quite deeply the theme on measles within our app. As we see in the graph, we see here a base curve on measles research. We see a peak here. We identified that there was a different movement going on in São Paulo. Based on that, we sat down together, understood. We actually had a confirmation of measles cases in São Paulo. We had anticipated our ideas. We contacted our doctors. We sent a notification to over 70,000 doctors within the pediatricians, GPs, and infectious disease specialists, experts.
We also sent an updated newsletter that if they had a suspicious case, that they should have the best content for the assistance. This potential goes beyond a single case. We brought the practical example here, but our researchers, they are quite wide. We have been studying very much. We have two published articles on important magazines. The first one, we took several diseases in several regions. We realized that when we deliver to our AI model, the data of Whitebook, the model is better adjusted. They understand better the disease behavior pattern. This article was published in the "BMC Health." The second article was when we looked specifically inside into dengue. We analyzed 27 regions. We created a model for measuring, where we do a forecast. We do a prediction analysis for cases in 8 weeks into the future.
We understand that when we work in scenarios that simulate what we have today in Brazil, that is a scenario that it has a delay notification. If we deliver this pattern into our Whitebook, we have a better performance of the model because we have real-time data. We can see the access of our users. We also talk about the great finding of our studies was in a real-world scenario, our data has contributed to the performance of the models. We have worked on the validation of our rater when we understand the best triggers to get to a cool accuracy, to understand other diseases in other regions, and to understand the clinical outcomes, and to work on the impact on information reaching clinical decisions.
We understand that our data can generate value, both for our users, but in Afya. Now we understand also for our health system.
Congratulations, Diana. I am very proud to be part of this project. This is extremely innovative for the market. We are used to when we do the analysis to look back, to look into the past. Today, we have a tech innovation that allows us to work proactively in real time and with a prediction feature, even if it is a short interval for important events in health. This creates a differential in the doctor's experience into this ecosystem, where we can take extremely valuable and contextualized information, either by a determined health event or a region that will make the practice easier, but also for health managers. This is a proxy to the demand of appointments, of beds, and medications all in real time.
We stop looking into the past, and we have a solution that allows me to monitor that in real time. It is extremely innovative, and I believe that this can be one of the theses on monetization to B2B. The iClinic also, we have onboarded with generative AI, with assistant practice. The doctor can invest 100% of their time with their patient, listening to the patient, transcribing into a report, and having a much richer quality of data. We are now bringing an engine for clinical decision into the report in our Whitebook, so it can support hypothesis during the consultation, also in the doctor's practice. What we do today in our emergency rooms, we can do that in their own practice to give a better support to the doctors. Today, we have 50,000 payers for iClinic. We have 36K active users and 3 million consultations per month.
The potential of use of this platform here, for example, for clinical research. Brazil is in a better position for interesting in clinical trials and research as far as legislation goes, and we can be players working in partnership with the industry in this realm. Our prescription in field, it is an extremely important asset in our ecosystem. Today, we distribute it naturally through iClinic in our practice solution, but also in Whitebook, where we see a two-digit monthly growth and in our medical updates portal. With Whitebook, you can prescribe for free with no limits, medication, lab tests, and vaccines all in one place with greater safety and prescription in under a time. You share instantly with your patients without the risk of losing a prescription, all backed up by the clinical decision support of Whitebook. Whitebook, a new way to prescribe for changing world of medicine.
Download Whitebook for free and try it now. Today, our prescription is available in our free Whitebook. We are one of the main players on digital prescription, and this is a growing market. By increasing the number of prescriptions and having the law on our side, there is no doubt that this market is going to grow, and this market is where we are going to strongly operate. Our continuing education platform, as I mentioned, throughout the year, we have done 46,000 consultations in our healthcare facilities. We have about 6,000 active students, and 10,000 have been in our undergraduate programs. We have also invested in a new platform with medical updates. Medical updates is one of the components that give us frequency in our solutions. This is an asset that you can access every day.
Every day, we distribute medical updates through the app or through external channels, mainly YouTube and Spotify. This is a key asset in our ecosystem. Besides the digital platform, we have always worked in transforming our 25 units in a hub for doctors. Today, our units have intense activity during class times, Thursday, Friday, Saturday, and we are using this room to bring events and engage the medical communities. We have over 160 events carried out this year. It also makes our platform quite interesting to the medical segment, especially for the B2B market. 18 of these events were partners with pharma, and the idea is to scale that.
The idea is to use our health facilities that are idle between Monday and Thursday to offer to this new doctor quite an accessible option with a high-quality practice, and this will be also another way to engage doctors. We have a pilot program in Belo Horizonte with a high level of satisfaction. So we trust the engagement of this audience through a high-quality space that we have in 25 units spread all over Brazil. All that enriches our audience, which is our extremely valuable asset. We have 500,000 registered physicians. We have 1 million subscribers to our YouTube channels, which is increasing the frequency on our medical update channels. We have 87,000 in our WhatsApp, 27,000 in our Spotify. In January, we are going to launch our new experience in our new portal, and there is no doubt it is going to launch up.
What we are doing, all this investment, is to deliver, in fact, an ecosystem, an experience in an ecosystem, and this is our great value. I have solutions for the entire journey of this professional. From the moment they are graduating from their undergraduate program, they start using our solutions up until after they retire. Even after they retire, this doctor can keep on consuming medical updates contents. We have even more fragmented solutions. This is a leap we are taking this year, which is to make viable as a system an experience that is more integrated into our ecosystem. It is key that this new medical update platform, because it is a cross-cutting environment, reaching the new doctor and the retiring doctor, consolidating this experience. So this is my main point of contact throughout the journey.
If I can, through this platform, offer this doctor the ecosystem experience, I optimize and make my relationship with these doctors more intelligent. A great share of Blanco's investment is being used to build the capabilities that lead our execution to evolvement. So today I have a solution for medical updates that we are going to launch in Q1. We have these communities. We have over 87,000 users using communities in WhatsApp. The idea is to control better this audience and the use of data. I have a leading solution to supporting decision making. That is the top of the funnel to other solutions. Where is the doctor that is going to consume a grad program on our Whitebook? Where is the doctor that is going to open a practice? They are on Whitebook using one of our continuing education programs. How do I relate to this doctor today?
Still manually. We generated this intelligence manually. The capabilities we are building will allow us to create a system and scale this relationship in a smarter way. Just listen to a Drop Speed podcast about Heartburn. Check out more information-
Well, the podcast was great, but let's get to work. Good morning, Dr. Anna. Good morning. The patient just called to say he is running late. No problem, because now I can fill all those gaps getting my life together. In the meantime, I can catch up on my studies for the specialist board exam by answering practice questions right on my phone. Also, hop on Whitebook to see what's new with medication guidelines and new procedures available. And of course, write prescriptions and send them straight to my patients in the blink of an eye. Oh, did I mention I can even attend international medical conferences without even leaving the office? Yes. It's just about hitting play button. Come in. Good morning, Joe. Sorry I'm late. How can I help you today?
Afya. To have a more fluid integration among our solutions. This allows us to scale even more our monetization thesis. In B2C, a doctor paying for the use of our solutions by subscription, participating, taking part in events, or buying continuing educations or a special solutions package. But we believe that B2B, it's where we're going to unlock the greatest value, either through pharmaceutical industry, where we have our primary focus and where we are reaching a meaningful growth. This year, we are going to grow 40% year-on-year. It's still not relevant in our total revenue, but it is by far the one that grows the most. We act on promoting engagement with the industry, with the audience of doctors, either by continuing education or promotional content. I'm going to show you an example, but it goes beyond the pharmaceutical industry.
Any B2B that wants to engage with medical audience in an intelligent way to the industry and practical way to the doctors, we have the best ecosystem for this engagement. Besides this pharmaceutical industry, we start working with marketplace concept to attract other industries from other segments to our ecosystem. I'm going to give you one example here of an offer that we are working with pharmaceutical industry that has generated value by prescriptions. So we have 20 million prescriptions in the last 12 months, 46,000 doctors prescribing, and we have the promotion of a medication at the prescription moment. So while I'm prospecting, I highlight this product. Of course, a doctor can choose to use the medication or not, and this has grown 109% year-on-year. The more I increase the level, the number of prescriptions, the more I increase the interaction, the more I increase the offers.
We have solutions for B2B. This year, intentionally, we focused more on the pharmaceutical industry. So if I focus on the pharma industry, the growth here is 40%-50% year-on-year. So there is great value to unlock here still. I would like to conclude my participation. Thank you for your attention. I hope we have the opportunity to exchange ideas here. I'm going to invite Renata Couto to the stage.
Can you hear me now? Just raise your hand. We're calling Virgílio, Denis, Luis Blanco, Lélio. Do we have our hosts just ready to go? We start over on the left side of the room. Before doing your question, introduce yourself, please.
Yeah.
Thank you, Samuel Alves, BTG Pactual bank. Thank you for the presentation. I have two doubts. First, if you could talk more about the need of these investments due to concentration, to approval of the antitrust council because of the fourth leverage that Virgílio mentioned, and Blanco, in the expansion of scope for inorganic assets. What kind of asset the two new ecosystems can complement even more? Examples. More footprint in São Paulo, or the potential on-site business, or any geography or combination of costs. Can you explore it? Thank you.
Thank you, Samuel. Great questions. I will talk about CADE, the antitrust council. All of you can help me as well. We have an overlap based on the relevant market within the high education market in relation to CADE understanding. We have three important overlaps in some cities. Rio de Janeiro, Teresina, and Paranavaí.
It's a first case discussing higher education in merges as a notation point for the medical courses. It's still early to say if we'll have the investments. We know there is different dynamics in the market for high-scale courses, a radius of attendance that is very different. We have two-thirds of our students come from other places. It's different when a physician. Travel Edico has started about three or four years housing for those students that are from outside the state. Two-thirds of them, it's a student that has income and availability and flexibility to travel. We consider in our synergies 2.2 can capture something in terms of the synergy. In terms of capital allocation that unlocks in the M&A market. Now, it's different from 2019, 2020.
If you check a good medical institutions in regions that make sense with good brands or used to be very expensive, wouldn't make sense if it wasn't like that, or low-level attractiveness, because it won't make sense. On the other hand, there are great assets in some regions with great assets like São Paulo, Afya and Yduqs as a small presence. But makes sense, but will be a hybrid player. Concentration of medical aspects below 50%, maybe 30% or 40%, and will extract synergies not only medicine, but also in the digital platform with the footprints from other courses. We start to check public and private players that were not under Afya radar. We have a strong currency and a balance sheet that will help us in opening the options.
In the end of the day, health is something that will be able to extract more synergy than in other fields. I would like to add, Samuel, it is super important to highlight that new opportunities, this new range that will be opened after we close the transaction and start capturing synergies. We have very strong discipline, like we like to say, in capturing synergies, and then to open to new opportunities that they do exist. Thank you.
Hello. Flávio, Bank of America. Thanks for the opportunity. It is always good to talk to you. I would like to know about pricing for the medicine business with integration that I would like to know how you see in regions with integration would like to help the pricing due to the competition that is increasing in other business, in the semi-presential with more aggressiveness.
What do you think to keep this behavior or change? Or either if there is any opportunity for the investment and add a purebred horse in the equation.
Well, I will start by the end. There is in our strategy any the investment pitch. This new platform makes sense, generates value, is diversified the proper way. We have the proper muscle to continue as a key player in higher education. The scale is always important and will not be different. Instead of running more to the side, now seeing a more diversified way, we can attract more investments with capital allocation that makes more sense to bring return to our investment. Therefore, we have to have the amount or robustness necessary. Having said so, no company can deal with a bad capital allocation. Either management, digital tools, it will analyze it, but strategically speaking, it is not in our roadmap.
Regarding the medical field, we have a lot of complementarity. We have three cities. We do not know exactly how it will behave, but there is this exam that is necessary. The student already gives the options in terms of universities. So we do not see opportunity for pricing, but resilience to keep differentiated frequency of seats. We put this in Yduqs that has this opportunity of occupation, but we have the opportunity to improve in many aspects, reduce the funding part of financing, and to keep the sustainable price, take into account to be the long-term. Pricing of companies are still isolated or apart. The competitions exist, each one with its own commercial policies, but planning and executing 171, it is the unified exam, took place the last weekend. We contribute with everything, pricing and everything that is being presented for the final approval of the transaction.
We are in the intake of 2027.1. We have published for our future students the pricing for January with an increase of 25%. When we check the projections of IPCA for 2027, the pricing is above to the projection of the Boletim Focus for IPCA, the metrics for inflation.
Good morning. Lucas Nagano. From the study. First question, in terms of demand, with all the changes in the labor market in the medical field, time for study and payback, how are you observing the changes in the mindset of those that will be taking the exams? There is this average that must be reached in terms of grade, so this will end in effect in the average of 2026. What have you prepared yourselves? And there are schools that were not assessed before. What are you doing about all of this?
Lucas, a great opportunity to talk about ENAMED and we'll go backwards. The government has published a provisory ordinance. This publication and approval by the Congress, depending on the president that can veto what was approved, but for Brazil and the education sector, we understood with good eyes that is exactly we have question in 2025 for ENAMED. With this approval, the students are responsible for the process. I'll mention some aspects. The track record of the students that are taking ENAMED will have the results in the ENAMED. This is very important to help us to engage the student in the commitment taken with the exam. The process of certification of the CFM will take long because it starts with the newcomers and after six years, they will have the professional registry certification in the board, having it or not at the medical councils.
This is important for the commitment by the students regarding this. It help us in the process of ENAMED in the future. We have worked a lot with the simulated exam, and we did it in 2026. We did 11 simulation exams and the curve of results, not only of doing it, but the grades have grown and the results are preliminary that we have collected. Also, the answers in the day of the exam of ENAMED that showed us a good result and evolution of our students. Because in 2026, we have clearer rules, which was something that we didn't have in 2025 because the rules of ENAMED were published after the exam being done.
Now with this being clear in 2026, we were able to work with students and also trying to close gaps in the process, helping us in the learning curve of these students and the results in 2026. I would like to mention regarding ENAMED, the bill was approved in Congress that is Article 14 and the process or the injunctions that are taking place do not exist. Punishments stop, the injunctions stop, and the new ones will take place after the second exam after the approval of the bill becoming a law. This may lead to some changes, of course, but the next exam will be in this first semester of 2027. The second exam on the second semester of 2027. If there are situations with penalties and low proficiency in those two exams, you go back to the process of injunctions or penalties.
This is very positive, but on the other hand, engages much more the student. There is an average weighted, otherwise they won't get the certification. If they didn't get the right grades, will be able to take a second exam. But this student may fail the exam but can be a professional in research or teaching. The bar that is demanded for institution goes up or go upwards. In how we see the capture of students, we were really successful with all the seeds being fulfilled. We are now dedicated to 2027. We'll have a convention for 2027.1 with many participants selling our ecosystem, how we have a resilience, robustness, generating more value for the physician, not only doing their student pathway. In Afya, we're still working the construction of differentiation, reinforcement of the brand and resilience a long time. Good.
Hello, everyone.
Renan Prata from Citi Bank. Congratulations. Two questions. First, for the bank to understand capital allocation in terms of dividends, you have exemplified the mechanism's top-up. I would like to understand the timing. Should we expect something closer to the deal closing in 9 months- 12 months, and then a real big announcement, or this will be gradually done up to the conclusion of the deal? For Lélio, you have presented many initiatives for 2027, and I would like to know more about changes after the merge. What are you expecting for the new company can add value in this growth of avenue, new physicians, new teachers? What do you think? Renan, thank you for your question. Regarding capital allocation, just remind you, we still have the buyback program to be done up to December 31st. We still have a balance of over 200,000 shares.
This is being done according to the limitations of the American market regulations, and dividends will be distributed throughout the period. As there is a top-up, we have to leave some part for the end to ensure the execution of top-up, but we will do this BRL 1 billion and 200,000 throughout the term. In combination of the business, all these students as the ecosystem, like Virgílio said, creates value for Yduqs and also creates value for the ecosystem. The 26,000 students of Afya use our solutions. The 11,000 students from Yduqs, it will be also audience. There is something is called Hardwork that is a preparation for title exams, or there is this synergy with our business with residency. The founders are ex-medical students and similar to our business here. If I add on our side, we have one more component that is quite interesting.
The physical units are divided in standalone units where we do not have a grad school, and we have cross units when we open within grad, undergraduate program. Normally, when we open a new set, a new location, we have a medical ecosystem. That is, I have a teacher that is a doctor, student that is a doctor. Usually, those units have better results than the standalone units. Let us say I enter a new city and I am starting to create an ecosystem there. When we close the combination of results, we are going to have several locations where we can go and open a cross where investment is lower, or where we have a standalone unit, where overnight, we are going to have a medical ecosystem in that location. In both cases, I think it is quite interesting in the continuing educational business. Just to add a little comment here.
I am Victor from Santander. Thank you for the opportunity and congratulations for the event. When we look at synergies, you mentioned the expense and cost synergies, but I would like to tackle revenue synergies. I think that some of them are clear, especially when we talk about the Afya's ecosystem for Yduqs students. Do you have a number for the synergy and the speed of penetration for the students of Yduqs? What do you expect on that? The second question on cost and expense synergy is, where do you think Yduqs is very efficient and Afya not as much? What are the main lines of synergy that Afya and Yduqs are more efficient?
First, starting also by the end, Victor, these synergies we have not looked into so much detail because it has been into a clean team regime, and during the legislation, we cannot look into these metrics and publish them. We are looking into the metrics of where we both have good practices, and from the side of Afya, along with our ecosystem, we have a practice of grouping medicine efficiency and capture methods. We have better occupation rates
than Yduqs. I think that you can see that in our ecosystem, and they will be given that as a gift. But when we talk about scalability and digital platform, we do not have as much muscle as Yduqs' price intelligence, as their capillarity and their strength to operate, not just as a brand, but also in the domestic environment, because as they work with Estácio, for example, I think that you must run this market and this operation. Eric, who was an operations director, he is quite knowledgeable about this large-scale operation. He was also a director of operations, both on-site and online for Yduqs last year. So we can add value by adding our expertises into this joint operation. Just to add, there is one fact that is quite important, is the theme of using the structures that we have in medicine today.
We have some that are dedicated exclusive to medicine, and then we can use them for health as well. So there is a big room to amplify, to expand the costs on health, where today we have exclusively medicine. So we also took this pathway in the past three years of expanding the costs of health on the Campi, where only medicine was located. Just to add, when we talk about revenues, this has not been fully quantified, but just considering the courses and capillarity, we estimate about BRL 800 million to additional BRL 1 billion on NPV. So it depends on execution, but this is not what we are giving the market as guidance, but an increase of offer, cross-selling, up-selling, and availability. We have the synergies that the companies are going to offer us. We can only put into synergy what we can predict. Good afternoon, Marcelo Santos, J.P. Morgan.
The first question on the seats expansion in medicine for the past years, I would like to ask you, are all the seats operational? Have we already seen a stabilization of offer, the seats that you have seen in competition for the first semester of last year? How do they compare? Are we at this regime point? This is the first question. And second for Lélio. Lélio, you said we are at the point of focusing on audience for medical practice solution. What is the roadmap for the next years? What is the focus for next year? What do you seek? What is your next step? I will start. Thank you for the question. It is a great opportunity to talk about this additional seats theme and the authorizations that have been released that starts with a legal process, and then it was incorporated to 531 as the Supreme Court.
Today, what we see in most locations where new seats were authorized, it is a great frustration to our competitors because they effectively cannot fill their additional seats, mainly in the smaller cities. Because they are new in those regions, they know little of the market, so they face great difficulties and they are not managing to open these new seats. Another important factor is that sometimes students are not comfortable with these authorizations under bylaw, because many of those authorizations, they are not stamped by the Ministry of Education as full authorizations. Students know that it has been a legal decision, court decision. So we are operating in a region where sometimes students are not comfortable because in many cases, some of those authorizations fell through and they know they will not be able to finish their courses and how they are going to move on.
We have witnessed lots of frustration with these authorizations. Just to add, all those high volumes of legal authorizations, we have now a residual number. So we see many prohibitions and authorizations. But if you have any added seats, I think it is going to be quite a precarious volume when we talk about authorization. It generates low credibility and a little generation of demand to the competitor. Some institutions may be at another example here in Rio, let us say, the Catholic University, PUC, is also launching a course. They should launch their entrance exam. So this is the remaining line of seats, and 95% of the seats have been granted already. But if you look ahead, maybe we are seeing the opposite mechanism. I am very happy with the approval by ENAMED. The bar for quality is very high.
I hope they close many seats in many institutions because it has been quite irresponsible. We work in such an integrated ecosystem, so we see that maybe this will be a break of organization. The Ministry of Organizations, it works on impulse. It opens a door, goes into momentum, and then opens a course, closes, and a remote course, an EAD course. So we need to have a stabilization for the next few years. Who created differentials are okay. Who did not will face problems. We are very well positioned to have great performance in the following years. This is a great opportunity to explore this because there is a constant evolution of products in a moment of succession, and we see AI, and we have been adopting it responsibly in a way that we offer the doctors AI in some sectors.
I have room to trip on it, but in medicine, I cannot trip. It needs responsibility. Also according to use and cost. When we think of generative AI, most of us think on reducing cost. But when I offer this as a product, I increase my operational cost. I increase because we are talking about the tokens economy. When I show the Whitebook user, I must somehow have some intelligence on what I offer. So there is quite a lot of technological evolution to do better use of generative AI in our solutions and in our development cycle. We start by using more intensely in a scale, inactive development. So we have less people, but more use of generative AI. We have this roadmap with one of the levers on profitability for the next few years. So we are going to scale this up.
When we talk about ecosystem, what we are doing this year, which is expand audience, intensify monetization thesis for B2B, mainly for pharma industry, where we are a relevant player in Brazil and we grow. The rhythm, it grows in Brazil. In Brazil, the pharma industry, it massively invests in medical engagement in a more traditional way. Like you have commercial representatives with free samples. But any kind of context in the industry, the trend is to use more and more digital platforms. Afya is the best player to take over this space. We are taking over this space. We are going to keep on growing this Brazilian market, and we start diversifying sectors in B2B. Hospitals where we still have very little penetration in B2B, labs, and other industries. The financial sector is all fully interested in talking to doctors.
We have shown the initial income of a doctor is 16,000 reais, so this is quite a qualified audience for many economic sectors. So we want to create this marketplace to bring other service providers and other products to engage with doctors. This is just to talk about Brazilian market. If we talk about LATAM, this is a very blue ocean for our ecosystem. We see similar ecosystems in the U.S., but not with our coverage. We have Oximit FIM3, which is a company that I follow and operates in Asia, the U.S., and works in Brazil in partnership with Afya. So here we have the opportunity to consolidate Brazil to expand also geographically. The roadmap here, our great challenge here is to prioritize. There is so much we can do, so many growth opportunities. We need to prioritize and execute them well. One more question here.
This is the last question, so we can move on to our lunch. Vinicius Figueiredo from Itaú. I would like to seize the opportunity to make two questions. One is about cost. I think you spoke very well about what it represents in synergy. But looking at Yduqs and Afya, we know that the profile of your students and of your cost is quite different. You have different profiles for teachers and their platform. So it has the remote learning courses, and given that remote has a greater presence than on-site learning, can you go deeper, please, into what kind of cost will you be able to impose when we talk about technology, when we talk about service to the student?
When we talk about online classes and assessment, and also another point that is correlated to the material that you presented, but I would like to seize the opportunity to talk about the impact on the end of the six to one working shifts.
In some sectors, we are tackling that more and less, but I think you will feel the impact of this labor decision now. I think that the first part, when we talk about costs, when we showed the synergies, the most is in SG&A. But maybe we can talk about OPEX and costs that involve technology. When we talk about cost, there are two main levers. The first is the synergy with all the online muscle that today we have at Yduqs.
How can this be replicated to the online disciplines that we have at Afya, especially when we talk about the courses that even though it is a small scale, we can increase them. Today, we use what Unigranrio has, their muscle that has landed on us, it has a completely different scale than Estácio, for example, when we talk about domestic capillarity. We have the digital platform, and when we talk about CapEx and content improvement of content and curricular evolution, we do not need to get into detail, but we are going to have this manufacturing unit of educational content, and we approach all the segments premium, and we are going to keep a high level of service. But still talking about costs, how do we work in the states for you to do the practice for students? We talk about partnerships. So how we manage our partnerships.
There is also some synergy to it, especially when we talk about the quality of our learning spaces and try to optimize the costs every time possible. So you see that the synergy is important when we are bringing technology, especially when we look at AI. There is no doubt there is synergy, but the greatest share is expenses focused on SG&A. The second is at the scale 6 to 1 in labor force. We do not operate on Saturdays, not in undergraduate. We have some operation on online courses, and they are compensated with a free day on Mondays. So this operational side of working on the weekends has no impact to us. When we talk about in our administration that we are going to have a reduction of 44 hours to 42 hours and then 40, these additional hours, we were not working with them anyway.
We were using the 8 hours and a break of minutes to add to 44 hours a week. We have to gain productivity. We are not going to hire anyone in our administrative department to compensate, to offset this reduction in hours. So we have to gain productivity. So this impact of Saturdays and our administration, we understand that we will have to be more efficient. The great impact on the education sector is on teachers and professors that are usually hired hourly. And why is this an impact? Because you have a summary by the Superior Court of Labor that has the compensated weekly resting, and that is that you currently pay one-sixth of those working hours as an additional, as a bonus, and today's date.
Although the legislation that is approved last week does not state explicitly DSR, it is this understanding from the moment that the legislation is not clear how DSR is calculated one-sixth now should be calculated two-fifths. This means 20% in the pay.
Our understanding that this didn't come to increase the wages of any professional. This must be clear because if it doesn't state explicitly DSR, that possibly the evolution should become clear. This would be the potential impact of something that is not in the legislation. That is this one-sixth up to two-fifths, creating more costs.
We'll close our Q&A. Thanks for your presence, and Virgílio will do the final comments.
I would like, first of all, to thank Renata and all the IR team and to reinforce those that cannot stay with us for lunch. Afya, for the last six years, we have created an ecosystem generating huge differentiation for the health of our company and unlocks opportunities of revenue generation with new businesses that are not within our business model. Yes, we look for a combination of business that unlock opportunities for the next years and undoubtedly good opportunities for capital allocation regarding the market and what we have seen in higher education. So it's a pleasure to be with you. Thanks to everyone and also the presence of our counselor, Miguel Japur de Paula , independent counselor, to also chat with you during lunch. Enjoy lunch. Let's go