Individual and Consolidated Interim Financial Information

Individual and Consolidated InterimFinancial Information

Notre Dame Intermédica Participações S.A.June 30, 2021and Independent Auditor’s Report

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Notre Dame Intermédica Participações S.A.

Individual and Consolidated Interim Financial Information

June 30, 2021

Contents

Independent auditor’s report on review of individual and consolidated interimfinancial information 3

Reviewed interim financial information

Statements of financial position 5Statements of profit or loss 7Statements of comprehensive income 9Statements of changes in equity 10Statements of cash flows - indirect method 11Statements of value added 13Notes to the individual and consolidated interim financial information 14

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São Paulo Corporate TowersAv. Presidente Juscelino Kubitschek, 1909Vila Nova Conceição04543-011 - São Paulo – SP - Brasil

Tel: +55 11 2573-3000ey.com.br

A free translation from Portuguese into English of Individual and Consolidated Interim Financial Informationprepared in Brazilian currency in accordance with accounting practices adopted in Brazil and in accordancewith International Financial Reporting Standards (IFRS), issued by International Accounting Standards Board –IASB and consistently with the standards issued by the Brazilian Securities Commission (CVM).

Independent auditor’s review report on individuals and consolidated interimfinancial information

To the Shareholders, Board of Directors and Officers ofNotre Dame Intermédica Participações S.A.São Paulo - SP

Introduction

We have reviewed the accompanying individual and consolidated interim financial information,contained in the Quarterly Information Form (ITR) of Notre Dame Intermédica Participações S.A.(“Company”) for the quarter ended on June 30, 2021, comprising the statement of financial positionas of June 30, 2021 and the related statements of profit or loss and of comprehensive income forthe three and six-months periods then ended, and of changes in equity and cash flows for the six-month period then ended, including the explanatory notes.

Management is responsible for preparation of the individual and consolidated interim financialinformation in accordance with Accounting Pronouncement NBC TG 21 – Interim FinancialReporting and IAS 34 – Interim Financial Reporting, issued by the International AccountingStandards Board (IASB), as well as for the fair presentation of this information in conformity withthe rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to thepreparation of the Quarterly Information Form (ITR). Our responsibility is to express a conclusionon this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on reviewengagements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information performedby the Independent Auditor of the Entity, respectively). A review of interim financial informationconsists of making inquiries, primarily of persons responsible for financial and accounting matters,and applying analytical and other review procedures. A review is substantially less in scope thanan audit conducted in accordance with auditing standards and consequently does not enable us toobtain assurance that we would become aware of all significant matters that might be identified inan audit. Accordingly, we do not express an audit opinion.

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Conclusion on the individual and consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that theaccompanying individual and consolidated interim financial information included in the quarterlyinformation referred to above are not prepared, in all material respects, in accordance with NBCTG 21 and IAS 34 applicable to the preparation of Quarterly Information Form (ITR) and presentedconsistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM).

Other matters

Statements of value added

The abovementioned quarterly information include the individual and consolidated statement ofvalue added (SVA) for the six-month period ended on June 30, 2021, prepared under Company’sManagement responsibility, and presented as supplementary information by IAS 34. Thesestatements have been subject to review procedures performed together with the review of thequarterly information with the objective to conclude whether they are reconciled to the interimfinancial information and the accounting records, as applicable, and if its format and content are inaccordance with the criteria set forth by NBC TG 09 – Statement of Value Added. Based on ourreview, nothing has come to our attention that causes us to believe that they were not prepared, inall material respects, consistently with the overall individual and consolidated interim financialinformation.

São Paulo, August 10, 2021

ERNST & YOUNGAuditores Independentes S.S.CRC-2SP034519/O-6

Emerson Pompeu BassettiAccountant CRC-1SP251558/O-0

Notre Dame Intermédica Participações S.A.Statements of financial positionJune 30, 2021 and December 31, 2020(In thousands of reais)

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The accompanying notes are an integral part of the individual and consolidated interim financialinformation.

Parent Consolidated

NoteJune 30,

2021December 31,

2020June 30,

2021December 31,

2020Assets

Current assets 243,448 113,538 4,091,517 5,118,964Cash and cash equivalents 5 239,224 110,545 479,844 2,563,751Short-term investments 6 - - 1,721,669 1,001,019Trade receivables 7 - - 702,153 637,763Inventories - - 185,726 100,520Deferred acquisition costs 8 - - 256,015 244,009Tax and social security credits 9 2,046 812 163,615 113,630Other assets 10 2,178 2,181 582,495 458,272

Noncurrent assets 7,599,898 7,627,134 13,368,585 11,234,575Long-term investments 6 - - 256,292 152,647Tax and social security credits 9 - - 3,619 -Deferred tax assets 11 - - 438,670 386,647Deferred acquisition costs 8 - - 223,124 229,558Judicial and tax deposits 12 120,856 98,746 895,606 782,033Other assets 10 10,552 10,552 692,702 726,254Investments 13 7,468,490 7,517,836 466 993Property, plant and equipment 14 - - 2,455,974 2,217,421Right of use 15 - - 565,004 492,451Intangible assets 16 - - 7,837,128 6,246,571

Total assets 7,843,346 7,740,672 17,460,102 16,353,539

Notre Dame Intermédica Participações S.A.Statements of financial positionJune 30, 2021 and December 31, 2020(In thousands of reais)

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Parent Consolidated

NoteJune 30,

2021December 31,

2020June 30,

2021December 31,

2020Liabilities and equity

Current liabilities 177,580 177,818 3,326,553 2,797,100Trade payables 2,157 2,333 176,887 162,326Salaries payable 189 98 262,880 212,006Taxes and social charges payable 17 357 510 609,114 502,841Dividends payable 174,877 174,877 174,877 174,877Loans and financing 18 - - 303,437 225,077Debentures 19 - - 29,464 81,091Provision for income tax and social contribution - - 42,842 62,431Technical reserves of healthcare operations 20 - - 1,451,936 1,176,699Leases 15 - - 45,348 38,376Other liabilities 21 - - 229,768 161,376

Noncurrent liabilities 464,707 464,707 6,931,691 6,457,754Taxes and social charges payable 17 - - 86,336 62,369Loans and financing 18 - - 1,135,887 943,663Debentures 19 - - 2,240,218 2,238,572Technical reserves of healthcare operations 20 - - 590,456 531,537Deferred purchase price 23 66,219 72,938 66,219 72,938Deferred tax liabilities 11 - - 429,096 363,311Provision for lawsuits 22 - - 787,116 870,530Leases 15 - - 570,424 489,355Other liabilities 21 398,488 391,769 1,025,939 885,479

Equity and noncontrolling interests 24 7,201,059 7,098,147 7,201,858 7,098,685Capital 5,808,609 5,646,453 5,808,609 5,646,453(-) Treasury shares (2,857) (2,857) (2,857) (2,857)(-) Premium on acquisition of equity interest (2,779) (2,779) (2,779) (2,779)(-) Costs with public offering of shares (113,913) (113,913) (113,913) (113,913)Reserves: 1,587,907 1,571,243 1,587,907 1,571,243

Capital reserve and stock options granted 165,968 149,304 165,968 149,304Income reserves 1,421,939 1,421,939 1,421,939 1,421,939

Loss for the period (75,908) - (75,908) -Noncontrolling interests - - 799 538

Total liabilities and equity 7,843,346 7,740,672 17,460,102 16,353,539

Notre Dame Intermédica Participações S.A.Statements of profit or lossThree and six-month periods ended June 30, 2021 and 2020(In thousands of reais, except earnings (loss) per share expressed in reais)

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NoteQuarter endedJune 30, 2021

Period ended inJune 30, 2021

Quarter endedJune 30, 2020


Net operating revenue 25 - - - -

Cost of services rendered 26 - - - -

Gross profit - - - -

Administrative expenses 27.a (8,260) (31,904) (13,346) (27,156)Share of profit of subsidiaries 13 (42,446) (49,346) 243,082 423,454

(Loss)/Profit before finance income and costs (50,706) (81,250) 229,736 396,298

Finance income 28 2,950 5,625 136 2,541Finance costs 28 (138) (283) (6,286) (14,849)

(Loss)/Profit before income tax and social contribution (47,894) (75,908) 223,586 383,990

Current income tax and social contribution 11 - - - -Deferred income tax and social contribution 11 - - - -

(Loss)/Profit for the period (47,894) (75,908) 223,586 383,990

Attributable to:

Equity holders of the Parent (47,894) (75,908) 223,586 383,990Noncontrolling interests - - - -

(47,894) (75,908) 223,586 383,990(Loss)/Earnings per share:

Basic 30 (0.0789) (0.1250) 0.3307 0.0637Diluted 30 (0.0789) (0.1250) 0.6214 0.6214

Parent

Notre Dame Intermédica Participações S.A.Statements of profit or lossThree and six-month periods ended June 30, 2021 and 2020(In thousands of reais, except earnings (loss) per share expressed in reais)

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NoteQuarter endedJune 30, 2021




Net operating revenue 25 3,196,313 6,099,940 2,604,078 5,163,524

Cost of services rendered 26 (2,710,842) (5,091,683) (1,728,464) (3,572,231)

Gross profit 485,471 1,008,257 875,614 1,591,293

Administrative expenses 27.a (255,740) (556,813) (292,146) (537,987)Selling expenses 27.b (175,251) (333,695) (130,370) (260,471)Impairment of receivables 27.c (32,155) (54,423) (33,040) (55,225)Other income (expenses), net 6,949 13,347 (20) (3,770)

Profit before finance income and costs 29,274 76,673 420,038 733,840

Finance income 28 61,586 104,291 33,479 80,671Finance costs 28 (130,376) (223,020) (62,711) (142,666)

(Loss)/Profit before income tax and social contribution (39,516) (42,056) 390,806 671,845

Current income tax and social contribution 11 (12,335) (34,507) (137,507) (271,730)Deferred income tax and social contribution 11 3,871 683 (29,908) (16,320)

(Loss)/Profit for the period (47,980) (75,880) 223,391 383,795

Attributable to:

Equity holders of the Parent (47,894) (75,908) 223,586 383,990Noncontrolling interests (86) 28 (195) (195)

(47,980) (75,880) 223,391 383,795(Loss)/Earnings per share:

Basic 30 (0.0782) (0.1250) 0.3704 0.6364Diluted 30 (0.0782) (0.1250) 0.3715 0.6211

Consolidated

Notre Dame Intermédica Participações S.A.Statements of comprehensive incomeThree and six-month periods ended June 30, 2021 and 2020(In thousands of reais)

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(Loss)/Profit for the period (47,894) (75,908) 223,586 383,990Other comprehensive income - - - -Total comprehensive income for the period (47,894) (75,908) 223,586 383,990

Parent





(Loss)/Profit for the period (47,980) (75,880) 223,391 383,795Other comprehensive income - - - -Total comprehensive income for the period (47,980) (75,880) 223,391 383,795Attributable to:Equity holders of the parent (47,894) (75,908) 223,586 383,990Noncontrolling interests (86) 28 (195) (195)

(47,980) (75,880) 223,391 383,795

Consolidated

Notre Dame Intermédica Participações S.A.Statements of changes in equitySix-month period ended June 30, 2021 and 2020(In thousands of reais)

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The accompanying notes are an integral part of the individual and consolidated interim financial information.

Capital reserve Income reserves

Note(-) Unpaid

capital

Premium onacquisition of

equity interest

(-) Costs withpublic offering

of shares(-) Treasury

sharesStock option

reserve Legal Statutory Total TotalBalances at December 31, 2019 5,526,232 (225) - (113,913) (2,857) 100,563 52,313 808,283 - 6,370,396 - 6,370,396

(-) Unpaid capital - 225 - - - - - - - 225 - 225(-) Repurchase of treasury shares - - - - (245,122) - - - - (245,122) - (245,122)Sale of treasury shares - - - - 242,343 - - - - 242,343 - 242,343(-) Premium on acquisition of equity interest - - (2,779) - 2,779 - - - - - - -Recognition of options granted - - - - - 23,495 - - - 23,495 - 23,495Profit for the period - - - - - - - - 383,990 383,990 (195) 383,795Noncontrolling interests - - - - - - - - - - 906 906

Balances at June 30, 2020 5,526,232 - (2,779) (113,913) (2,857) 124,058 52,313 808,283 383,990 6,775,327 711 6,776,038

Balances at December 31, 2020 5,646,453 - (2,779) (113,913) (2,857) 149,304 89,122 1,332,817 - 7,098,147 538 7,098,685

Capital increase 24.a 162,156 - - - - - - - - 162,156 - 162,156Recognition of options granted - - - - - 16,664 - - - 16,664 - 16,664(Loss)/Profit for the period - - - - - - - - (75,908) (75,908) 28 (75,880)Noncontrolling interests - - - - - - - - - - 233 233

Balances at June 30, 2021 5,808,609 - (2,779) (113,913) (2,857) 165,968 89,122 1,332,817 (75,908) 7,201,059 799 7,201,858

Capital

Retainedearnings/(accum

ulated losses)Noncontrolling

interests

Notre Dame Intermédica Participações S.A.Statements of cash flows - indirect methodThree and six-month periods ended June 30, 2021 and 2020(In thousands of reais)

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Parent ConsolidatedJune 30, June 30,

Note 2021 2020 2021 2020Cash flows from operating activities:Profit for the period (75,908) 383,990 (75,880) 383,795

Depreciation of property 14 - - 74,350 65,627Amortization of intangible assets 16 - - 69,601 65,134Depreciation of right of use 15 - - 35,745 28,895Share of profit (loss) of subsidiaries 13.a 49,346 (423,454) - -Monetary adjustment of judicial deposits 12 (4,311) (1,066) (17,486) (9,652)Monetary adjustment of contingencies 22 - - 43,367 25,574Fair value adjustment of financial investments 6 - - 19,645 79Monetary adjustment - SUS 20.a - - 6,996 23,307Financial investments income 6 - - (48,308) (32,703)Foreign exchange (gains) / losses 18.b - - (2,498) 377Current and deferred income tax and social contribution 11 - - 33,824 288,050Changes in technical reserves 20.c - - 72,900 20,355Provision for lawsuits 27.a - - 49,095 10,624Provision for (reversal of) impairment of receivables 27.c - - (921) 14,138Loss on impairment of receivables 27.c - - 55,344 41,087Provision for expected disallowances 7 - - (2,134) 6,192Amortization of deferred acquisition costs 8 - - 167,636 140,566Present value adjustment - deferred portion - 14,707 - 14,707Interest on debentures and transaction cost 19 - - 55,694 36,504Interest on loans and financing and borrowing costs 18 - - 32,938 14,189Interest on leases 15 - - 28,340 22,732Appropriation of share-based payment plan 27.a 16,664 23,495 16,664 23,495Write-off of property, plant and equipment/intangible assets 14 e 16 - - 2,695 8,578Others - - 70 (56)Derivative financial instruments - NDF 28 - - 7,161 (4,195)Write-off of right of use/leases 15 - - (1,992) (584)Payment of income tax and social contribution - - (93,350) (237,617)

(Increase) decrease in operating assetsTrade receivables 7 - - (74,394) (9,242)Inventories - - (68,943) (59,259)Tax and social security credits (1,234) (238) (4,515) 6,100Deferred acquisition costs 8 - - (171,083) (204,544)Judicial and tax deposits 12 (17,799) (30,330) (137,280)Other assets 3 1,725 (213,880) (139,154)

Increase (decrease) in operating liabilitiesTrade payables (176) (332) (237,321) (41,162)Salaries payable 91 35 25,844 42,737Taxes and social charges payable (153) (465) 32,369 170,807Technical reserves of healthcare operations - - 38,866 67,009Provision for lawsuits 22 - - (28,562) (26,006)Other liabilities 6,719 55,032 (9,903) (62,682)Deferred purchase price 23 (6,719) (55,033) (6,719) (55,033)

Net cash used in operating activities (33,477) (1,604) (219,075) 501,489

Notre Dame Intermédica Participações S.A.Statements of cash flows - indirect methodThree and six-month periods ended June 30, 2021 and 2020(In thousands of reais)

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Note 2021 2020 2021 2020

Cash flows from investing activitiesShort-term investments 6 - - (8,703,107) (8,505,570)Redemptions of short-term investments 6 - - 8,112,838 8,154,455Business combination 2 - - (1,391,055) (2,631,212)Acquisition of property, plant and equipment 14 - - (28,285) (124,690)Acquisition of intangible assets 16 - - (707) (13)Capital increase in subsidiary - (20,000) - -

Net cash used in investing activities - (20,000) (2,010,316) (3,107,030)

Cash flows from financing activitiesDebentures paid - interest 19 - - (45,675) (64,255)Debentures paid - principal 19 - - (60,000) (960,000)Aumento de capital - Controlada 162,156 - 162,156 -Capital contribution - - - 225Repurchase of shares - share-based payment plan - - - (245,122)Raising of loans and financing 18 - - 308,659 880,000Leases paid - principal 15.b - - (53,918) (41,014)Loans and financing paid - principal 18 - - (142,580) (150,380)Loans and financing paid - interest 18 - - (23,158) (6,338)

Net cash used in financing activities 162,156 - 145,484 (586,884)Decrease in cash and cash equivalents 128,679 (21,604) (2,083,907) (3,192,425)

Cash and cash equivalents at the beginning of the year 110,545 133,881 2,563,751 3,514,439Cash and cash equivalents at the end of period 239,224 112,277 479,844 322,014

Notre Dame Intermédica Participações S.A.Statements of value addedThree and six-month periods ended June 30, 2021 and 2020(In thousands of reais)

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June 30, June 30,2021 2020 2021 2020

Revenue - - 6,233,169 5,308,825Sales of goods, products and services - - 6,273,734 5,351,399Other income - - 13,858 12,651Impairment of receivables - reversal/(recognition) - - (54,423) (55,225)

INPUTS PURCHASED FROM THIRD PARTIES (12,313) (2,826) (5,454,900) (3,841,525)Cost of sales and services - - (4,790,533) (3,389,499)Materials, electric power, outsourced services and others (12,313) (2,826) (664,367) (452,026)

GROSS VALUE ADDED (12,313) (2,826) 778,269 1,467,300

DEPRECIATION AND AMORTIZATION - - (179,697) (159,654)

NET VALUE ADDED GENERATED BY THE ENTITY (12,313) (2,826) 598,572 1,307,646

VALUE ADDED RECEIVED IN TRANSFER (43,721) 425,996 110,597 80,456Share of profit of subsidiaries (49,346) 423,455 - -Finance income 5,625 2,541 104,291 80,671Others - - 6,306 (215)

TOTAL VALUE ADDED FOR DISTRIBUTION (56,034) 423,170 709,169 1,388,102

DISTRIBUTION OF VALUE ADDED 56,034 (423,170) (709,169) (1,388,102)

Personnel (17,719) (24,140) (252,953) (315,629)Salaries and wages (17,719) (24,140) (220,235) (274,929)Benefits - - (19,911) (20,615)FGTS (Unemployment Compensation Fund) - - (12,807) (20,085)

Taxes, fees and contributions (275) (321) (283,687) (544,796)Federal (211) (309) (188,415) (459,591)Municipal (64) (12) (95,272) (85,205)

Value distributed to providers of capital (1,880) (14,719) (248,409) (143,882)Interest (1,871) (14,709) (245,607) (139,830)Rentals - - (1,889) (3,522)Others (9) (10) (913) (530)

Value distributed to shareholders 75,908 (383,990) 75,880 (383,795)(Loss)/Earnings retention for the period 75,908 (383,990) 75,908 (383,990)Noncontrolling interests - - (28) 195

Parent Consolidated

Notre Dame Intermédica Participações S.A.Notes to the individual and consolidated interim financial informationJune 30, 2021(In thousands of reais)

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1. Operations

Notre Dame Intermédica Participações S.A. (hereinafter “Company”) is a publicly-heldholding company headquartered in Brazil at Avenida Paulista 867, Bela Vista, CEP 01305-100,São Paulo-SP. The individual and consolidated interim financial information incorporate thefinancial statements of the Company and its subsidiaries (or “Notre Dame Intermédica Group”).The Company was established on February 18, 2014 and is engaged in: (i) the management ofits own assets and (ii) holding interests as a partner, shareholder or holder of any other right inother civil or commercial companies whose purpose includes activities related to varioussegments of health, including companies that, directly or indirectly (a) manage, market ordistribute healthcare plans or private dental plans; (b) operate hospitals, laboratories, clinicalcenters or medical care units; and/or (c) have real estate intended primarily for the developmentof activities in the health sector.

The Company obtained its registration as a publicly-held company on April 19, 2018 and begantrading its shares in the “New Market” segment of B3 S.A. – Brasil, Bolsa, Balcão (“B3”) onApril 23, 2018, under ticker GNDI3.

The Company is the direct parent company of BCBF Participações S.A. (“BCBF”), a publicly-held holding company, and indirect parent company of privately held entities regulated or not bythe Brazilian Regulatory Agency for Private Health Insurance and Plans (“ANS”), and suchentities are engaged in providing services in the fields of medicine, dental care and hospital,covering the operation of own hospitals, laboratories and clinical centers through execution ofhealthcare contracts with individuals and legal entities, government or private entities andparticipations. Information on the Company's direct and indirect subsidiaries is presented in Note3.b.

1.1. COVID-19 Pandemic

In compliance with CVM-SNC/SEP Official Letter No. 03/2020, in view of the current scenariothat Brazil and the entire world are experiencing due to the COVID-19 pandemic, the Companysought to assess the possible material impacts on its operations, in order to verify the effects onthis interim financial information for the six-month period ended June 30, 2021 and futuredisclosures.

In Brazil, after the confirmation of the first coronavirus case, shutdowns, resulting from socialdistancing were requested or imposed by government authorities or defined by companies aspreventive measures. These shutdowns impacted several segments of the national economy,mainly the physical retail and many industry sectors, in addition to the service chain.

Throughout the first six-month period of 2021, although the measures of social distancing havebeen intensified, we experienced a different behavior from patients, who continued to seekhealth services to maintain their routine and/or elective treatments. Accordingly, not only theexpenses with exams, but also the demand for hospital services reached levels above thehistorical average.

Below we describe the main impacts noted in the second quarter of 2021:

Health and dental care cost:

Unlike the first wave of COVID-19 experienced in mid-2020, the second wave of the pandemicin Brazil was more dramatic due to the increase in the total number of cases, accompanied by


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a much higher frequency of serious and severe cases, affecting not only the elderly, but thistime also the younger and working population, especially in the states of the South andSoutheast. This prevalence of severe cases in the working population in the main marketswhere the Company operates generated the highest level of hospital care in the Company’shistory.

In the first months of the year, the Company faced a record volume of hospitalizations forpatients with COVID-19, significantly greater than in the first wave. The situation was even morechallenging for operations, since patients affected with COVID-19 who needed hospitalizationfound the hospital sector already operating close to normal with respect to other electivesurgeries, creating an overload on the health system as a whole, since only a few states andmunicipalities have decreed the mandatory suspension of elective surgeries. In this scenario,the Company had to count on the opening of hundreds of additional beds in our own network,including the opening of another hospital (Intermédica Anália Franco), but we also had to seeksupport from our accredited network, which acted as an important partner at this time of healthcrisis.

As for dental care, using our historical operating indicators adjusted for the seasonality of thistime of year as an assumption, the Company continues to notice a decrease in the use of dentalprocedures by our beneficiaries, which resulted in a higher claim rate than that observed in thesecond quarter of 2020 (peak of lockdown), but lower than the historical parameters..Hospital services for other healthcare plans:

We have noticed a reduction in healthcare services for customers from other healthcare plans,justified by a strategy to face the pandemic, which prioritized the preservation of hospital bedsin case there is a need to care for beneficiaries of the Company and its subsidiaries. This dropin healthcare services for customers from other healthcare plans allowed the opening of thecapacity of hospital beds and, mainly, ICUs, which were progressively filled with our patientswith suspected or confirmed COVID-19. Despite this, we noticed a gradual recovery in thevolumes of service to other agreements, especially when comparing the second quarter of 2021with the same period of the previous year.

Risk related to impairment of financial assets:

With the gradual resumption of normal activities in the main financial markets worldwide, theimpact from mark-to-market, mainly on certain ANS investment funds, created for the BrazilianRegulatory Agency for Private Health Insurance and Plans backing purposes, was significantlyreduced.

Risk related to impairment of intangible assets:

In the fourth quarter of 2020, the Company engaged an independent specialized consulting firmto assess the impairment of intangible assets. The assessment considered the projections forthe next five years. The report issued presented no indications of impairment. Despite the resultreported in the second quarter of 2021, the Company's management recognizes that thisperformance is associated with the time of the pandemic, since all the main profit or lossaccounts behaved as expected, except for the medical claims associated with the second waveof COVID-19, which is already showing signs of cooling, thus not changing the Company'smedium and long-term plans.


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Risk of inventory losses:

With the gradual resumption of medical services, our inventory levels have already returned tonormal and we have not identified any need for recording losses.

Going-concern risk:

Our customer base continues to grow. Our billings and average ticket also continued to increase.

Despite the restriction and social distancing and/or isolation measures adopted by the stategovernments, we noted an increase in the demand for outpatient care, which is close to ouraverage historical indicators. Concurrently, we also observed a progressive increase in care forpatients with symptoms of COVID-19, in all regions in which we operate.

It is not possible to quantify the actual impacts of these current trends as they will depend notonly on (i) the evolution of the disease curve itself; (ii) how fast the population is vaccinated andthe responses to different vaccines; (iii) new treatment protocols for patients with COVID-19 thatmay require new medications, but mainly the measures that may be implemented bygovernments, which may affect not only (iv) the speed of spread of the virus, but also (v) theeconomic activity, and consequently, employment. And because it is a new disease, it is difficultto predict exactly when normality will return.

Although COVID-19 is expected to continue to impact global and local economic activity, untilthe date of disclosure of these financial information, we have not identified any increase in defaultof our customers or requests for cancellation or modification of contracts, even though themaintenance of the adverse macroeconomic scenario may continue to affect negativelyemployment level in the country and, consequently, the number of private healthcare planbeneficiaries in Brazil.

We believe that because we are offering essential health services – especially in times of apandemic – we have not experienced an impact on credit risk, except for specific negotiationswith certain customers, in which monthly fees were postponed and are already reflected, asmentioned in Note 7.

With respect to liquidity management, the Company and its subsidiaries prepare projected cashflow analyses and periodically review the obligations assumed and the financial instrumentsused, including those related to the guarantee of technical reserves. It is important to mentionthat at June 30, 2021 our consolidated position of immediate liquidity assets, classified as Cashand cash equivalents, corresponds to R$ 479,843, as mentioned in Note 5, while our debtcommitments have an average maturity of the gross debt of up to six years, as mentioned inNotes 18 and 19.

Through its subsidiaries BCBF Participações and Notre Dame Intermédica Saúde, the Companyhas debentures that contain financial covenants, the main covenant refers to the maintenanceof the ratio of net debt to EBITDA - Earnings before interest, taxes, depreciation andamortization, measured every three months. At June 30, 2021, BCBF Participações and NotreDame Intermédica Saúde were in compliance with the covenants.

In the first months of 2021, the Company and its subsidiaries initiated a comprehensivevaccination program for its hospital and ambulatory care frontline employees in all regions wherewe operate, in accordance with the guidelines of the respective local health departments.


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Despite the impacts in the second quarter of 2021, the extent to which COVID-19 will affect thebusiness, the financial position, results of operations and the prospects of the Company and itssubsidiaries will depend on future developments, which are uncertain and cannot, for the timebeing, be reasonably foreseen, including new information that may arise about the spread ofCOVID-19 and/or the actions of the government and other entities to contain it in Brazil. Althoughit is not possible to reasonably estimate the extent of possible impacts on our business, financialcondition, results of operations and prospects, our estimates of revenue and cash flow fromoperating activities fully ensure the continuity of our operations. The Company and itssubsidiaries continuously monitor the situation as closely as possible and are actively evaluatingthe possible impacts on their business and implementing measures that mitigate potentialexisting risks.

1.2. Corporate restructuring

The Notre Dame Intermédica Group, under its strategic plan of continuous growth andexpansion through acquisitions and corporate restructuring transactions, with the purpose ofstreamlining and unifying administrative activities, as well as achieving gains and operationalsynergy, completed the following for the period ended June 30, 2020:

(i) Merger of Lifeday Planos de Saúde Ltda.

As the Special General Meeting (SGM) held on April 1, 2021, the Explanatory record of mergerwas approved, for the merger of the company Lifeday Plano de Saúde Ltda. into the subsidiaryClinipam Clínica Paranaense de Assistência Médica Ltda. The appraisal report on the net bookvalue of the merged company was issued by an independent firm. The merger occurred atApril 1, 2021, as at March 31, 2021. The base net assets of the merger amounted to R$ 31,307.

1.3. Ownership Structure

Notre Dame Intermédica Group ended the period ended June 30, 2021 with the followingownership structure:


18

2. Business combination

2.1. Acquisition of Lifecenter Sistema de Saúde S.A.

On January 20, 2021, the Notre Dame Intermédica Group signed the closing term of the sharepurchase and sale agreement and other covenants of Lifecenter Sistema de Saúde S.A.(Lifecenter). The purchase price was R$ 175,698, with a cash payment of R$ 115,698, acontingent portion of R$ 40,000 payable in up to six years and a portion withheld of R$ 20,000payable up to January 20, 2027 to cover any contingencies arising from the period preceding theclosing date, as determined in a contractual clause.

Organograma societário em 30 de junho de 2021

Notre Dame IntermedicaSaúde S.A.

Hospital IntermédicaJacarepaguá Ltda.

100,0% 100,0%

100,0%

100,0%

1,4%

50,0%

51,9%

99,8%100,0



São Lucas Serviços MédicosLtda.

Clinica São Lucas Ltda.

Gralha Azul Adminstração eParticipação Ltda.

100,0%

Notre Dame IntermedicaParticipações S.A.

BCBF Participações S.A.



Hospital São Bernardo S.A.

São Lucas Saúde S.A.

Clinipam - Clínica MédicaParanaense de Assist. Médica

Hospital do Coração deBalneário Camboriú Ltda.

Alkes II - FIP

11,3%

100,0%

100,0%

98,9%

Hospital e Maternidade SantaMônica S.A.

Bioimagem - Diagnóstico porImagem e Laboratório de Análises

SMV Serviços Médicos Ltda.

INCORD - Instituto de Neurologiae do Coração de Divinópolis Ltda.

41,5%

50,0%

97,9%

100,0%

87,0%

89,9%

10,1

Hospital e Maternidade SantaBrígida S.A.

99,5%

Lifecenter Sistema deSaúde S.A. 100,0%

Climepe Total Ltda.100,0%

Bio Saúde ServiçosMédicos Ltda.

100,0%

Notre Dame IntermedicaMinas Gerais Ltda. (Osi Par)

Notre Dame IntermedicaMinas Gerais Saúde S.A.

(Medsanitas)

NDIS Drogaria Ltda

Notre Dame Minas GeraisInvest Ltda. (Osi Invest)

81,5%

87,7%

100,0%

NDIS MG ServiçosOperacionais Ltda. (SOS)

NDIS MG InvestimentosParticipações Ltda. (MS Hol)

Centro Médico NDSI MG Ltda.

Centro Oftalmológico NDISMG Ltda.

Centro Clínico NDIS VendaNova Ltda.

Hospital Notre DameIntermedica BH Ltda.

100,0%

18,5

12,3% 100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%Hospital Coração de Londrina

Ltda.100,0%


19

The appraisal report is preliminary and its measurement ends as soon as the Company obtainsthe full information about facts and circumstances existing at the acquisition date. However, themeasurement period will not exceed one year from the acquisition date.

As required by CPC 15 (R1) - Business Combinations, the Company provided through anindependent firm the identification report for the tangible and intangible assets on the acquisitionof Lifecenter.

On December 23, 2020, the transaction had been approved by the Brazilian Antitrust Authority(CADE) through merger review process No. 08700.006411/2020-85.

All the conditions precedent were achieved on January 20, 2021, when the instrument of closingof the acquisition was formalized.

The table below summarizes the consideration paid to acquire Lifecenter and the fair value ofthe identifiable assets and liabilities at the acquisition date:

1Property, plant and equipment acquired at the fair value of R$ 20,977 is comprised of the cost of acquisitionin the amount of R$ 19,617, plus appreciation in the amount of R$ 1,360.

Cash installment 115,698Portion withheld 60,000

Total consideration 175,698Present value adjustment on portion withheld (8,736)

Consideration, net 166,962

AssetsCurrent assets 62,832Cash and cash equivalents 162Short-term investments 30,004Trade receivables 20,671Inventories 7,492Tax and social security credits 471Other current assets 4,032

Noncurrent assets 101,145Long-term investments 5,377Deferred tax assets 2,563Other noncurrent assets 526Investments 172Property, plant and equipment1 20,977Right of use 67,036Intangible assets 532Indemnification assets 3,962Total identificable assets acquired 163,977


20

The Company identified the allocation of tangible and intangible assets on the acquisition ofLifecenter measured at fair value. According to the appraisal report issued by an independentfirm, the preliminary allocations are:

For consolidation purposes, the intangible assets identified by the Company were allocated asfollows:

As defined in the shareholders’ agreement, all contingencies relating to periods previous to theexecution of the share purchase and sale agreement would be the responsibility of the formershareholders and, consequently, these amounts would be reimbursed or deducted from theportion withheld payable.

Goodwill on acquisition is rendered justifiable by the value of assets acquired and expectedfuture profitability from the synergy generated by the Notre Dame Intermédica Group activity.

Lifecenter was consolidated as of January 1, 2021. The contribution to the consolidatedstatement of profit or loss for the three and six-month periods ended June 30, 2021 was a netrevenue of R$ 69,241 and a loss for the period of R$ 7,761.

LiabilitiesCurrent liabilities 81,277Trade payables 21,535Salaries payable 8,217Taxes and social charges payable 7,644Loans and financing 25,894Provision for income tax and social contribution 794Leases 5,270Other current liabilities 11,923

Noncurrent liabilities 130,769Loans and financing 49,637Provision for lawsuits 3,962Leases 68,997Other noncurrent liabilities 8,173

Total liabilities assumed 212,046

Total identifiable assets acquired/(liabilities assumed) (48,069)

Goodwill arising on transaction 215,031

Total consideration, net 166,962

Valuation method LifecenterProperty, plant and equipment Market value 1,360Goodwill Fair value 215,031

Intangible assets Intangible assets amount allocatedUseful lifeGoodwill not allocated 215,031 IndefiniteTotal intangible assets 215,031


21

2.2. Acquisition of Climepe Total Ltda.

On March 8, 2021, the Notre Dame Intermédica Group signed the closing term of the sharepurchase and sale agreement of Climepe Total Ltda. (Climepe). The purchase price wasR$ 193,045, paid in full on that date.

The appraisal report is preliminary and its measurement ends as soon as the Company obtainsthe information that it was seeking about facts and circumstances existing at the acquisition date.However, the measurement period will not exceed one year from the acquisition date.

As required by CPC 15 (R1) - Business Combinations, the Company provided through anindependent firm the identification report for the tangible and intangible assets on the acquisitionof Climepe.

The table below summarizes the consideration paid to acquire Climepe and the fair value of theidentifiable assets and liabilities at the acquisition date:

AssetsCurrent assets 24,100Cash and cash equivalents 344Short-term investments 20,879Trade receivables 1,606Inventories 268Tax and social security credits 991Other current assets 12

Noncurrent assets 57,346Long-term assets 209Judicial deposits 209Property, plant and equipment 17,328Intangible assets 39,809Total identificable assets acquired 81,446

LiabilitiesCurrent liabilities 15,480Trade payables 1,251Salaries payable 2,252Taxes and social charges payable 1,025Dividends payable 1,500Provision for income tax and social contribution 1,047Technical reserves of healthcare operations 7,959Other current liabilities 446

Noncurrent liabilities 1,534Technical reserves of healthcare operations 353Provision for lawsuits 1,181


Total identifiable assets acquired/(liabilities assumed) 64,432




22

The Company identified the allocation of tangible and intangible assets on the acquisition ofClimepe measured at fair value. According to the appraisal report issued by an independentfirm, the preliminary allocations are:



Climepe was consolidated as of March 1, 2021. The contribution to the consolidated statementof profit or loss for the three and six-month periods ended June 30, 2021 was a revenue ofR$ 29,293 and a profit for the period of R$ 4,465.

Had Climepe been consolidated as of January 1, 2021, the consolidated statement of profit orloss for the three and six-month periods ended June 30, 2021 would have presented pro formanet revenue of R$ 40,664 and pro forma net income of R$ 6,559.

On September 17, 2020, ANS approved the acquisition of Climepe Total Ltda., through OfficialLetter 91/2020/ASSNT-DIOPE/DIRADDIOPE/DIOPE.

On November 27, 2020, CADE, through merger review process No. 08700.004121/2020-05,approved the acquisition of Climepe Total Ltda.

All the conditions precedent were achieved on March 8, 2021, when the instrument of closingof the acquisition was formalized.

2.3. Acquisition of Bio Saúde Serviços Médicos Ltda.

On March 31, 2021, the Notre Dame Intermédica Group signed the closing term of the sharepurchase and sale agreement and other covenants of Bio Saúde Serviços Médicos Ltda. Thepurchase price was R$ 78,846, with a cash payment of R$ 71,046 and a portion withheld ofR$ 7,800 payable up to March 31, 2027 to cover any contingencies arising from the periodpreceding the closing date, as determined in a contractual clause.

Valuation method ClimepeCustomers portfolio Income method 39,809Goodwill Fair value 128,613

Intangible assets Intangible assets amount allocated Useful lifeCustomers portfolio 39,809 7 to 8 yearsTotal allocated 39,809Goodwill not allocated 128,613 IndefiniteTotal intangible assets 168,422





23


As required by CPC 15 (R1) - Business Combinations, the Company provided through anindependent firm the identification report for the tangible and intangible assets on the acquisitionof Bio Saúde.

The table below summarizes the consideration paid to acquire Bio Saúde and the fair value ofthe identifiable assets and liabilities at the acquisition date:

The Company identified the allocation of tangible and intangible assets on the acquisition of BioSaúde measured at fair value. According to the appraisal report issued by an independent firm,the preliminary allocations are:


AssetsCurrent assets 18,939Cash and cash equivalents 126Short-term investments 15,539Trade receivables 3,274

Noncurrent assets 45,336Property, plant and equipment 11,720Intangible assets 28,440Indemnification assets 5,176Total identificable assets acquired 64,275

LiabilitiesCurrent liabilities 40,603Trade payables 1,646Salaries payable 148Taxes and social charges payable 828Loans and financing 159Provision for income tax and social contribution 203Technical reserves of healthcare operations 35,807Other current liabilities 1,812

Noncurrent liabilities 6,098Technical reserves of healthcare operations 541Provision for lawsuits 5,557





Valuation method Bio SaúdeCustomers portfolio Income method 28,440Goodwill Fair value 60,102


24


Bio Saúde was consolidated as of April 1, 2021, the contribution to the consolidated statementof profit or loss for the three and six-month periods ended June 30, 2021 was a revenue ofR$ 39,848 and profit for the period of R$ 470.

Had Bio Saúde been consolidated as of January 1, 2021, the consolidated statement of profitor loss for the three and six-month periods ended June 30, 2021 would have presented proforma net revenue of R$ 79,370 and pro forma profit of R$ 1,211.

On September 17, 2020, ANS approved the acquisition of Bio Saúde Serviços Médicos Ltda.,through Official Letter 92/2020/ASSNT-DIOPE/DIRAD-DIOPE/DIOPE.

On March 29, 2021, CADE, through merger review process No. 08700.005771/2020-60,approved the acquisition of Bio Saúde Serviços Médicos Ltda., without restrictions.

2.4. Acquisition of Medisanitas Brasil Group

On April 13, 2021, the Notre Dame Intermédica Group signed the closing term of the sharepurchase and sale agreement and other covenants of Medisanitas Brasil Group. The purchaseprice was R$ 1,068,571, with a cash payment of R$ 968,571 and a portion withheld ofR$ 100,000, which will be paid partially in the third anniversary and the remaining amount will bepaid in the sixth anniversary.

1According to the agreement between the parties, the retained portion (escrow) was reserved as investment by theCompany. The withdrawal of this investments is subject to the seller’s approval and it is reserved to refunds andpossible contingencies within a period of up to 6 years.


As required by CPC 15 (R1) - Business Combinations, the Company provided through anindependent firm the identification report for the tangible and intangible assets on the acquisitionof the Medisanitas Brasil Group.

The table below summarizes the consideration paid to acquire the Medisanitas Brasil Group andthe fair value of assets and liabilities identifiable on the acquisition date:

Intangible assets Intangible assets amount allocatedUseful lifeCustomers portfolio 28,440 7 to 8 yearsTotal allocated 28,440Goodwill not allocated 60,102 IndefiniteTotal intangible assets 88,542

Cash installment 968,571Portion withheld1 100,000

Total consideration 1,068,571


25

1Property, plant and equipment acquired at the fair value of R$ 43,708 is comprised of the cost of acquisition inthe amount of R$ 39,522, plus appreciation in the amount of R$ 4,186.

The Company identified the allocation of tangible and intangible assets on the acquisition ofMedisanitas Group measured at fair value. According to the appraisal report issued by anindependent firm, the preliminary allocations are:

AssetsCurrent assets 197,068Cash and cash equivalents 24,653Short-term investments 133,564Trade receivables 13,993Inventories 3,477Deferred acquisition costs 2,125Tax and social security credits 11,046Other current assets 8,210

Noncurrent assets 396,579Long-term assets 71,750Tax and social security credits 3,619Judicial deposits 65,315Other noncurrent assets 2,816Investments 374Property, plant and equipment1 43,708Intangible assets 224,129Indemnification assets 56,618Total identificable assets acquired 593,647

LiabilitiesCurrent liabilities 195,989Trade payables 33,695Salaries payable 8,927Taxes and social charges payable 8,714Loans and financing 6,720Provision for income tax and social contribution 5,177Technical reserves of healthcare operations 126,472Other current liabilities 6,284

Noncurrent liabilities 74,717Taxes and social charges payable 6,969Technical reserves of healthcare operations 14,282Provision for lawsuits 50,400Other noncurrent liabilities 3,066




Total consideration, net 1,068,571


26



The Medisanitas Brasil Group was consolidated as of April 1, 2021. The contribution to theconsolidated statement of profit or loss for the three and six-month periods ended June 30, 2021was a revenue of R$ 152,685 and profit for the period of R$ 4,504.

Had Medisanitas Brasil Group been consolidated as of January 1, 2021, the consolidatedstatement of profit or loss for the three and six-month periods ended June 30, 2021 would havepresented pro forma net revenue of R$ 326,511 and pro forma loss for the period of R$ 6,168.

On December 4, 2020, ANS approved the acquisition of Medisanitas Brasil Group., throughOfficial Letter 137/2020/ASSNTDIOPE/DIRAD-DIOPE/DIOPE.

On March 18, 2021, CADE, through merger review process No. 08700.004547/2020-51,approved the acquisition of Medisanitas Brasil Group., without restrictions.

2.5. Acquisition of Hospital do Coração de Londrina Ltda.

On April 5, 2021, the Notre Dame Intermédica Group signed the closing term of the sharepurchase and sale agreement and other covenants of Hospital do Coração de Londrina Ltda.The purchase price was R$ 101,590, with a cash payment of R$ 70,000 and a portion withheldof R$ 31,590, which will be paid on April 4, 2027.


As required by CPC 15 (R1) - Business Combinations, the Company provided through anindependent firm the identification report for the tangible and intangible assets on the acquisitionof Hospital do Coração de Londrina.

Valuation method MedisanitasProperty, plant and equipment Market value 4,186Customers portfolio Income method 223,671Goodwill Fair value 745,630

Intangible assets Intangible assets amount allocated Useful lifeGoodwill not allocated 745,630 IndefiniteTotal intangible assets 745,630





27

The table below summarizes the consideration paid to acquire Hospital do Coração de Londrinaand the fair value of identifiable assets and liabilities at the acquisition date:

1Property, plant and equipment acquired at the fair value of R$ 27.417 is comprised of the cost of acquisition inthe amount of R$ 15,626 plus appreciation in the amount of R$ 11.791.

The Company identified the allocation of tangible and intangible assets on the acquisition ofHospital do Coração de Londrina, measured at fair value. According to the appraisal reportissued by an independent firm, the preliminary allocations are:

AssetsCurrent assets 10,716Cash and cash equivalents 2,020Trade receivables 2,741Inventories 5,026Tax and social security credits 929

Noncurrent assets 32,820Long-term assets 233Judicial deposits 233Investments 264Property, plant and equipment1 27,417Intangible assets 50Indemnification assets 4,856Total identificable assets acquired 43,536

LiabilitiesCurrent liabilities 90,399Trade payables 21,980Salaries payable 5,486Taxes and social charges payable 46,348Loans and financing 14,813Other current liabilities 1,772

Noncurrent liabilities 31,199Taxes and social charges payable 26,343Provision for lawsuits 4,856


Total identifiable assets acquired/(liabilities assumed) (78,062)



Valuation method LondrinaProperty, plant and equipment Market value 11,791Goodwill Fair value 174,921


28

For consolidation purposes, the intangible assets identified by Hospital do Coração de Londrinawere allocated as follows:


Hospital do Coração de Londrina was consolidated as of April 1, 2021. The contribution to theconsolidated statement of profit or loss for the three and six-month periods ended June 30, 2021was a revenue of R$ 47,844 and profit for the period of R$ 2,319.

Had Hospital do Coração de Londrina been consolidated as of January 1, 2021, theconsolidated statement of profit or loss for the three and six-month periods ended June 30, 2021would have presented pro forma net revenue of R$ 62,163 pro forma net income of R$ 1,373.

On March 10, 2021, CADE, through merger review process No. 08700.000292/2021-38,approved the acquisition of Grupo Hospitalar de Londrina Ltda.

All the conditions precedent were achieved on April 5, 2021, when the closing term of theacquisition was formalized.

3. Preparation and presentation of the individual and consolidated interim financialinformation

a) Statement of compliance

The individual and consolidated interim financial information for the period endedJune 30, 2021 has been prepared in accordance with Accounting Pronouncement CPC 21(R1) – Interim Financial Reporting and International Accounting Standard (IAS) 34 issuedby the International Accounting Standards Board (IASB) and in accordance with thestandards of the Securities and Exchange Commission of Brazil (CVM), presentinginformation comparable with the prior period.

In preparing this interim information, the Company uses the following disclosure criteria: (i)regulatory requirements; (ii) relevance and specificity of information on the Company’soperations to the users; and (iii) information needs of users of the interim information.Therefore, management confirms that relevant information specific to the interim financialinformation, and solely this information, is being disclosed and corresponds to that used bymanagement in running the Company and its subsidiaries.

The Company’s interim financial information has been prepared having the Real (R$) as itsfunctional and reporting currency, and is expressed in thousands of reais unless otherwisestated. Items disclosed in other currencies will be properly identified, when applicable.

The accounting practices and policies adopted by the Company when preparing itsindividual and consolidated interim financial information are consistent with those adoptedand disclosed in the financial statements for the year ended December 31, 2020 (Note 4)and, therefore, should be read together therewith, except for the policy regarding the

Intangible assets Intangible assets amount allocated Useful lifeGoodwill not allocated 174,921 IndefiniteTotal intangible assets 174,921


29

recognition and measurement of Income Taxes in the interim period, as described inNote 9 (i).

The individual and consolidated interim financial information for the period endedJune 30, 2021 was approved by the Board of Directors and authorized for issue onAugust 10, 2021.

b) Basis of consolidation

The interim financial information includes the financial information of the Company and itssubsidiaries as of June 30, 2021.

The individual and consolidated interim financial information does not include all informationand disclosures required in the annual individual and consolidated financial statements.Therefore, it should be read together with the individual and consolidated financialstatements for the year ended December 31, 2020 and approved on March 16, 2021, whichwere prepared in accordance with the accounting practices adopted in Brazil, whichcomprise the standards of the Brazilian Securities and Exchange Commission (CVM) andthe pronouncements issued by the Brazilian Accounting Pronouncements Committee(CPC), which are in conformity with the International Financial Reporting Standards – IFRSissued by the International Accounting Standards Board (IASB).

The subsidiaries included in the consolidated interim financial statements, all based inBrazil, are the following:

4. Risk management

The Company controls companies that operate exclusively with health and dental plans, ownhospitals and emergency rooms, catering to a wide range of corporate customers, associationsand individuals. The main risks of these businesses are credit, interest rate and liquidity risks.

Equity interest

Core activityAcquisition

date Merger date Direct Indirect Direct IndirectBCBF Participações S.A. Holding company - - 100.00% - 100.00% -Notre Dame Intermédica Saúde S.A. Healthcare plan - - - 100.00% - 100.00%Hospital São Bernardo S.A. Health 02/23/2017 - - 100.00% - 100.00%Hospital Intermédica Jacarepaguá Ltda. Health 04/05/2019 - - 100.00% - 100.00%São Lucas Saúde S.A. Healthcare plan 01/23/2020 - - 100.00% - 100.00%São Lucas Serviços Médicos Ltda. Health 01/23/2020 - - 100.00% - 100.00%Clínica São Lucas Ltda. Health 01/23/2020 - - 87.07% - 87.07%Clinipam - Clínica Médica Paranaense de Assistência Médica Ltda. Healthcare plan 02/07/2020 - - 100.00% - 100.00%Gralha Azul Administração e Participação Ltda. Holding company 02/07/2020 - - 100.00% - 100.00%Hospital do Coração de Balneário Camboriú Ltda. Health 05/20/2020 - - 98.99% - 98.99%SMV - Serviços Médicos Ltda. Healthcare plan 08/24/2020 - - 97.90% - 99.30%Hospital e Maternidade Santa Monica S.A. Health 08/24/2020 - - 99.84% - 99.60%Incord - Instituto de Neurologia e de Coração de Divinópolis Ltda. Laboratory 08/24/2020 - - 100.00% - 100.00%Bioimagem - Diagnóstico por Imagem e Laboratório de Análises Clínicas Ltda. Laboratory 08/24/2020 - - 93.35% - 93.35%Hospital e Maternidade Santa Brigida S.A. Health 10/23/2020 - - 99.56% - 97.02%Lifeday Planos de Saúde Ltda. Healthcare plan 12/01/2020 04/01/2021 - - - 100.00%Lifecenter Sistema de Saúde S.A. Health 01/20/2021 - - 100.00% - 0.00%Climepe Total Ltda. Healthcare plan 03/08/2021 - - 100.00% - 0.00%Bio Saúde Serviços Médicos Ltda. Healthcare plan 03/31/2021 - - 100.00% - 0.00%Hospital do Coração de Londrina Ltda. Health 04/05/2021 - - 100.00% - 0.00%Notre Dame Intermédica Minas Gerais Investimentos Ltda. Holding company 04/13/2021 - - 100.00% - 0.00%Notre Dame Intermédica Minas Gerais Ltda. Holding company 04/13/2021 - - 100.00% - 0.00%NDIS MG Investimentos e Participações Ltda. Holding company 04/13/2021 - - 100.00% - 0.00%NDIS MG Serviços Operacionais Ltda. Administration 04/13/2021 - - 100.00% - 0.00%NDIS Drogaria Ltda. Drugstore 04/13/2021 - - 100.00% - 0.00%Notre Dame Intermédica Minas Gerais Saúde Ltda. Healthcare plan 04/13/2021 - - 100.00% - 0.00%Centro Oftalmológico NDIS MG Ltda. Health 04/13/2021 - - 100.00% - 0.00%Centro Clínico NDIS MG Venda Nova Ltda. Health 04/13/2021 - - 100.00% - 0.00%Centro Médico NDIS MG Ltda. Health 04/13/2021 - - 100.00% - 0.00%Hospital Notre Dame Intermédica BH Ltda. Health 04/13/2021 - - 100.00% - 0.00%

2021 2020December 31June 30,


30

Management of these risks involves different departments and contemplates a number ofpolicies and fund allocation strategies deemed appropriate and sufficient by management.

(a) Credit risk

Credit risk is the risk that a counterparty to a business does not fulfill the obligationestablished in a financial instrument or a contract with a customer, which would lead to afinancial loss. The Company and its subsidiaries are exposed to credit risk in their operatingactivities (mainly related to trade receivables) and financing, including deposits in banks andfinancial institutions and other financial instruments.

The credit policy considers the peculiarities of operating health and dental care plans and isdesigned to maintain the flexibility required by market conditions and our customers’ needs.The Company and its subsidiaries carry out an ongoing monitoring of the level of their tradereceivables. The methodology to determine the provision for credit losses is used, accordingto requirements of CPC 01 – Impairment and CPC 48 – Financial Instruments.

The Company and its subsidiaries prioritize their financial assets classified as cash and cashequivalents and short-term investments in institutions that have a minimum investment graderating in the assessment made by S&P Global Ratings or Fitch (between AAA and BBB-) andin accordance with criteria internal valuation criteria and limits established based onqualitative and quantitative information.

The Company works with financial institutions whose ratings are as follows:

The investment policy requires the need to allocate resources in accordance with ANSNormative Resolution (RN) 392/15, amended by ANS RN 419/16, 427/17 and 430/17, toguarantee the technical reserves.

(b) Liquidity risk

The main purpose of the Company’s liquidity risk management is to monitor the maturity ofthe rights and obligations of the Company and its subsidiaries, as well as the liquidity of theirfinancial instruments. The Company and its subsidiaries seek to mitigate liquidity risk by

Issuers June 30, 2021National long-

term rating December 31, 2020National long-

term ratingBanco Santander (Brasil) S.A. 809,537 brAAA 1,026,703 brAAABanco Bradesco S.A. 268,743 AAA(bra) 1,092,470 AAA(bra)Caixa Econômica Federal 23,324 AA(bra) 73,824 AA(bra)Itaú Unibanco S.A. 656,381 AAA(bra) 634,656 AAA(bra)Votorantim S.A. 267,179 AAA 284,913 AAA(bra)Banco Safra S.A. 46,424 AAA(bra) 35,535 brAAABanco Daycoval S.A. - AA(bra) 50 AA(bra)Banco do Brasil S.A. 79,331 BB 370,362 AA(bra)XP Investimentos 79,989 AAA 78,549 AA(bra)Greencred - AA(bra) 2 AA(bra)Uniprime - A(bra) 1,376 A(bra)Citibank 1,318 AAA(bra) 2,430 -Sicoob 43,875 AA-(bra) 37,982 AA-(bra)Unicred 1,126 A-(bra) 1,112 -Banco Sul América S.A. 15,309 AA - -Banco Mercantil 26,849 BBB - -Banco BTG Pactual S/A 54,043 AA(bra) - -

2,373,428 3,639,964


31

matching the expected cash flows required to meet commitments and the net financialresources available on a timely basis and in quantities necessary to cover any mismatching.

For that purpose, the Company and its subsidiaries prepare projected cash flow analysesand periodically review the obligations assumed and the financial instruments used,especially those intended to guarantee the technical reserves.

(i) Liquidity risk

In accordance with ANS RN 392/15, amended by RNs 419/16, 427/17, 430/17 and 448/20,subsidiaries Notre Dame Intermédica Saúde S.A, São Lucas Saúde S.A., Clinipam – ClínicaMédica Paranaense de Assistência Médica Ltda, Lifeday Planos de Saúde Ltda., ClimepeTotal Ltda., Bio Saúde Serviços Médicos Ltda. and Notre Dame Intermédica Minas GeraisSaúde S.A. maintain restricted short-term investments for the coverage of technicalreserves, amounting to R$ 1,079,202 at June 30, 2021 (R$ 978,675 at December 31, 2020).

(ii) Asset and liability management (ALM)

Assets and liabilities are managed under the ALM method. This method consists of anongoing process of preparation, implementation, monitoring and review of assets andliabilities management strategies for the purpose of reaching a certain return at a certainrisk level.

(c) Currency risk

(i) Loans and financing

The Notre Dame Intermédica Group, through its subsidiary Notre Dame Intermédica SaúdeS.A., has in its liabilities foreign currency loan transactions through Law 4,131/62, suchtransaction has an exchange risk and to protect itself from a variation of these currenciesagainst the Real, Non-Deliverable Forward - NDF derivative instruments were contracted(purchase of Financial Bond), on the same date as the funding transaction.

At June 30, 2021, NDF’s long position is R$ 2,136 (R$ 4,133 at December 31, 2020) as perNote 10, generating expense at June 30, 2021 of R$ 7,161, as per Note 28.

Liquidity Short-term investments June 30,2021

December 31,2020

Amount % portfolio Amount % portfolioImmediate Short-term investments 395,467 16.66% 2,486,298 68.31%

From 31 to 120 days Bank certificate of deposit - CDB - variable rates, repodebentures, open-ended fixed income funds and others

856,963 36.11% 474,364 13.03%

From 31 to 120 days Financial bills - LFT - 0.00% 19,430 0.54%


237,733 10.02% 14,583 0.40%

From 121 to 240 days Financial treasury bills - LFT 43,386 1.83% 0.00%


299,586 12.62% 125,700 3.45%

From 241 to 360 days Financial bills - LF 140,502 5.92% - 0.00%From 241 to 360 days National treasury bills - LTN 79,734 3.36%

More than 361 days Bank certificate of deposit - CDB - variable rates, repodebentures, open-ended fixed income funds and others

92,803 3.91% 30,002 0.82%

More than 361 days National treasury bills - LTN 145,696 6.14% 227,385 6.25%More than 361 days Financial treasury bills - LFT 81,558 3.44% 80,862 2.22%More than 361 days Financial bills - LF - 0.00% 181,340 4.98%

2,373,428 100.00% 3,639,964 100.00%


32

(d) Insurance risk

The Company’s subsidiaries business model is based on the collection of monthly or annualamounts from customers and is exposed to insurance risk from the variation of costs of healthand dental care plans, and in the dental segment, the risk is limited to the frequency of useand low cost of treatments made.

In the development and structuring of health and dental care plans, the following areconsidered: cost of customer services, model of service that the beneficiary will receive,model of enrollment with the dental and healthcare plans, model of use of own or contractednetwork and fees paid to professionals of the accredited network.

Additionally, the Company and its subsidiaries also analyze the risk of variation in health anddental care plan costs and the direct impact on customers’ contracts.

In managing these risks, the Company and its Subsidiaries monitor claims due to the use,and any deficiencies are negotiated directly with their customers so that the contract may bebalanced in relation to their profitability.

(e) Interest rate risk of financial instruments

Interest rate risk arises from the possibility of changes in interest rates that could bringimpacts to the present value of the investments portfolio, loans and financing and the raisingof debentures.

The Company and its subsidiaries adopt a policy of investing mostly in floating rate securities.

By means of RN 392/15, amended by RNs 419/16, 427/17 and 430/17 pursuant to CMNResolution 4444 of November 13, 2015, the ANS establishes for the healthcare providers thediversification of their investments toward assets pledged in guarantee of technical reserves.In view of this requirement, the Company's operators have been making investments in fixedand floating rate government bonds.

The financial portfolio of the Company and its subsidiaries is almost entirely exposed tofluctuations in interest rates in the domestic market - Interbank Deposit Certificate (CDI), andthe remainder is indexed to the Central Bank Benchmark Rate (SELIC).

Breakdown of financial investments is shown in Note 6.

The Company’s direct and indirect subsidiaries have loans and financing and debentures andare exposed to the variation of the CDI rate + spread and TLP. Breakdown of loans, financingand debentures is presented in Notes 18 and 19, respectively.

(i) Sensitivity analysis of interest rate variations

For the sensitivity analysis, the Company and its subsidiaries adopted rates in effect atdates close to reporting dates, using the same rate for SELIC and CDI, due to theirproximity. In the projection of the probable scenario, for scenarios I and II, these rates wereincreased/decreased by 25% and 50%, respectively.


33

Therefore, with other variables held constant, the chart below shows a simulation of theeffect of interest rate variations on equity and future profit or loss for the next 12 months(consolidated) considering the balances at June 30, 2021.


34

ParentJune 30, 2021

Index Risk % - p.a.¹ R$ Probable Rate -25% Rate -50% Rate +25% Rate +50%Other liabilities

Contractual obligations CDI CDI increase 6.33% (398,488) (25,224) 4.75% (18,928) 3.17% (12,632) 7.91% (31,520) 9.50% (37,856)

ConsolidatedJune 30, 2021

Index Risk % p.a. R$ Probable Rate -25% Rate -50% Rate +25% Rate +50%Cash and cash equivalents (note 5)

CDBs CDI CDI decrease 6.33% 55,527 3,515 4.75% 2,638 3.17% 1,760 7.91% 4,392 9.50% 5,275Open-ended fixed income fund CDI CDI decrease 6.33% 337,141 21,341 4.75% 16,014 3.17% 10,687 7.91% 26,668 9.50% 32,028Repurchase operations CDI CDI decrease 6.33% 2,757 175 4.75% 131 3.17% 87 7.91% 218 9.50% 262Others Selic Selic decrease 6.50% 42 3 4.88% 2 3.25% 1 8.13% 3 9.75% 4

395,467 25,034 18,785 12,535 31,281 37,569

Short-term investments (note 6)CDBs CDI CDI decrease 6.33% 918,812 58,161 4.75% 43,644 3.17% 29,126 7.91% 72,678 9.50% 87,287LFTs Selic Selic decrease 6.50% 81,558 5,301 4.88% 3,980 3.25% 2,651 8.13% 6,631 9.75% 7,952Open-ended fixed income fund CDI CDI decrease 6.33% 568,274 35,972 4.75% 26,993 3.17% 18,014 7.91% 44,950 9.50% 53,986LFs CDI CDI decrease 6.33% 183,887 11,640 4.75% 8,735 3.17% 5,829 7.91% 14,545 9.50% 17,469

1,752,531 111,074 83,352 55,620 138,804 166,694Loans and financing (note 18)

BNDES TLP TLP increase 5.55% (858) (48) 4.16% (36) 2.78% (24) 6.94% (60) 8.33% (71)Working capital CDI CDI increase 6.33% (102,393) (6,481) 4.75% (4,864) 3.17% (3,246) 7.91% (8,099) 9.50% (9,727)Working capital CDI + 2.3% p.a. CDI increase 8.78% (298,651) (26,222) 7.16% (21,383) 5.54% (16,545) 10.39% (31,030) 12.02% (35,898)Working capital CDI + 2.6% p.a. CDI increase 9.09% (260,964) (23,722) 7.47% (19,494) 5.85% (15,266) 10.72% (27,975) 12.35% (32,229)Working capital CDI + 2.4% p.a. CDI increase 8.88% (508,124) (45,121) 7.26% (36,890) 5.65% (28,709) 10.50% (53,353) 12.13% (61,635)Leasing CDI CDI increase 6.33% (1,009) (64) 4.75% (48) 3.17% (32) 7.91% (80) 9.50% (96)Promissory notes CDI + 1.4% p.a. CDI increase 7.82% (189,576) (14,825) 6.22% (11,792) 4.61% (8,739) 9.42% (17,858) 11.03% (20,910)Credit cooperative CDI CDI increase 6.33% (53,963) (3,416) 4.75% (2,563) 3.17% (1,711) 7.91% (4,268) 9.50% (5,126)Others CDI CDI increase 6.33% (13,100) (829) 4.75% (622) 3.17% (415) 7.91% (1,036) 9.50% (1,245)

(1,428,638) (120,728) (97,692) (74,687) (143,759) (166,937)

Debentures (note 19)Debentures - BCBF (4th) CDI + 2.65% p.a. CDI increase 9.15% (756,560) (69,225) 7.53% (56,969) 5.90% (44,637) 10.77% (81,482) 12.40% (93,813)Debentures - BCBF (5th) CDI + 2.65% p.a. CDI increase 9.15% (701,758) (64,211) 7.53% (52,842) 5.90% (41,404) 10.77% (75,579) 12.40% (87,018)Debentures - Notre Dame (3rd) CDI + 1.6% p.a. CDI increase 8.03% (811,364) (65,153) 6.43% (52,171) 4.82% (39,108) 9.64% (78,215) 11.25% (91,278)

(2,269,682) (198,589) (161,982) (125,149) (235,276) (272,109)

Contractual obligations (note 21.a)Contractual obligations 100% of CDI CDI increase 6.33% (848,182) (53,690) 4.75% (40,289) 3.17% (26,887) 7.91% (67,091) 9.50% (80,577)Contractual obligations 105% of CDI CDI increase 6.65% (9,667) (643) 4.98% (481) 3.32% (321) 8.31% (803) 9.97% (964)Contractual obligations 90% of CDI CDI increase 5.70% (37,562) (2,141) 4.28% (1,608) 2.85% (1,071) 7.13% (2,678) 8.55% (3,212)Contractual obligations 95% of CDI CDI increase 6.01% (35,666) (2,144) 4.51% (1,609) 3.01% (1,074) 7.51% (2,679) 9.02% (3,217)Contractual obligations 100% SELIC SELIC increase 6.50% (48,567) (3,157) 4.88% (2,370) 3.25% (1,578) 8.13% (3,948) 9.75% (4,735)Contractual obligations IPCA IPCA increase 6.45% (30,442) (1,964) 4.84% (1,473) 3.23% (983) 8.06% (2,454) 9.68% (2,947)

(1,010,086) (63,739) (47,830) (31,914) (79,653) (95,652)

(2,560,408) (246,948) (205,367) (163,595) (288,603) (330,435)

Interest reduction Interest increase

Interest reduction Interest increase


35

¹ In the % p.a. column (probable scenario) the rates were obtained from the website of bank Bradesco - “BradescoLong-Term Projection” published on July 1, 2021.

5. Cash and cash equivalents

Short-term investments have immediate liquidity, are readily convertible into a known amount ofcash and are not subject to a significant risk of change in value, and the Company and itssubsidiaries are entitled to immediate redemption.

6. Short-term investments

At June 30, 2021, the financial instruments comprising short-term investments were as follows:

i. Federal government bonds were recorded at cost plus yield accrued and adjusted to fairvalue based on the benchmark reference of the secondary market of the BrazilianAssociation of Financial and Capital Markets Entities (ANBIMA) (Level 1).

ii. The Company and its subsidiaries adopt the policy of investing mostly in floating ratesecurities with immediate liquidity issued by financial institutions in Bank DepositCertificates (CDBs), (Level 2).

iii. Funds are managed by Banco Bradesco S.A., Banco do Brasil S.A., Banco Itaú, BancoSafra S.A., Banco Santander (Brasil) S.A., Caixa Econômica Federal, Unicred and XPInvestimentos (Level 2).

iv. Transactions will financial bills were recorded at cost plus yield accrued and adjusted to fairvalue in floating rate securities tied to the Interbank Deposit Fund (CDI) with 2-year liquidity(Level 2).

The short-term investments have daily yield tied to the CDI and SELIC rates with variablematurities up to April 2034.

The Company and its subsidiaries’ investments are classified under “Financial assets at fairvalue through profit or loss”. Regardless of the maturity of the Company and its subsidiaries’investments, they are recognized in current assets (except for the investment tied to the contractobligation, which is recorded in noncurrent assets).

June 30, 2021December 31,

2020 June 30, 2021December 31,

2020Cash and banks 268 11,865 84,377 77,453Cash and cash equivalents 238,956 98,680 395,467 2,486,298

239,224 110,545 479,844 2,563,751

Parent Consolidated

December 31, 2020

Fair value through profit or loss Levels Up to 1 year From 1 to 5 years Over 5 years Carrying amount Fair value Carrying amount Fair valueFinancial treasury bills – LFT (i) 1 - 81,558 - 81,558 81,558 100,292 100,292National treasury bills – LTN (i) 1 - 225,430 - 225,430 225,430 227,385 227,385Bank Certificate of Deposit – CDB (ii) 2 835,506 44,000 39,306 918,812 918,812 223,628 223,628Open-ended fixed income fund (iii) 2 558,777 9,497 - 568,274 568,274 421,021 421,021Financial bills - LF (iv) 2 183,887 - - 183,887 183,887 181,340 181,340Total 1,578,170 360,485 39,306 1,977,961 1,977,961 1,153,666 1,153,666

Consolidated

MaturitiesJune 30, 2021


36

The amount of R$ 248.566 refers to the guarantees (escrow) originated by the acquisitions ofClinipam, Unimed ABC and Medisanitas.

Changes in financial investments

Fair value measurement

The fair values of fixed-income government securities were obtained from the reference tablesdisclosed by the Brazilian Association of Financial and Capital Markets Entities (ANBIMA). Thequotations of fixed-income private securities were announced by ANBIMA.

The pricing criteria for financial instruments are defined by the manager and the custodian, andcurves and rates disclosed by ANBIMA and B3 are used for the calculations described in theinstitution's pricing manual, in conformity with ANBIMA's self-regulation code.

The financial investments are under custody of, registered with and traded at the SELIC and B3.

7. Trade receivables

Trade receivables refer to transactions related to healthcare plans and healthcare services,generated by the operation of subsidiaries at June 30, 2021, as follows:

At June 30, 2021, the breakdown of trade receivables was as follows:


2020Balance at the beginning of the year 1,153,666 1,285,126Balance acquired 205,363 176,047Investments 8,703,107 15,041,759Redemptions (8,112,838) (15,405,731)Foreign exchange gains (losses) - (473)Finance income (costs) 48,308 57,332Fair value adjustment (19,645) (394)Balance at the end of the period/year 1,977,961 1,153,666

Consolidated

June 30,2021

December 31,2020

Trade receivables related to:Healthcare plans 391,064 395,423Healthcare not relating to healthcare plans 311,089 242,340

702,153 637,763

Consolidated

ConsolidatedJune 30,

2021December 31,

2020Receivables from operations with healthcare plans 452,412 447,271(-) Impairment of receivables (61,348) (51,848)

391,064 395,423


37

Aging of trade receivables is as follows:

(i) Receivables from operations with healthcare plans

(ii) Receivables from healthcare operations not related to the Operator's healthcare plans

June 30,2021

December 31,2020

Receivables from healthcare operations not related to theOperator's healthcare plans 353,908 261,624(-) Impairment of receivables (42,819) (19,284)

311,089 242,340

Consolidated

June 30, 2021

BalanceImpairment of

receivables Net balanceCurrrent:From 1 to 30 days 279,843 (5,500) 274,343More than 30 days 16,826 (218) 16,608Past due:From 1 to 30 days 69,975 (2,889) 67,086From 31 to 90 days 43,733 (10,706) 33,027More than 90 days 42,035 (42,035) -Receivables from operations with healthcare plans 452,412 (61,348) 391,064

Consolidated

December 31, 2020

Current: BalanceImpairment of

receivables Net balanceFrom 1 to 30 days 259,537 (5,157) 254,380More than 30 days 24,805 (6) 24,799Past due:From 1 to 30 days 45,342 (2,014) 43,328From 31 to 90 days 78,929 (6,013) 72,916More than 90 days 38,658 (38,658) -Receivables from operations with healthcare plans 447,271 (51,848) 395,423

Consolidated

June 30, 2021


receivables Net balanceCurrent:From 1 to 30 days 114,473 (1,983) 112,490More than 30 days 51,387 (46) 51,341

Past due:From 1 to 30 days 70,542 (153) 70,389From 31 to 90 days 93,194 (16,325) 76,869More than 90 days 24,312 (24,312) -Receivables from healthcare operations not related to theOperator's healthcare plans 353,908 (42,819) 311,089

Consolidated


38

Changes in trade receivables from operations with healthcare plans:

Changes in receivables for health care transactions not related to the Operator’s health plans

Changes in expected credit losses

December 31, 2020


receivables Net balanceCurrent:From 1 to 30 days 49,719 (41) 49,678More than 30 days 46,169 (35) 46,134Past due:From 1 to 30 days 25,554 (229) 25,325From 31 to 90 days 124,771 (3,568) 121,203More than 90 days 15,411 (15,411) -Receivables from healthcare operations not related to theOperator's healthcare plans 261,624 (19,284) 242,340

Consolidated

June 30,2021

December 31,2020

Balance at the beginning of the year 395,423 221,367Balance acquired 19,602 65,387Net considerations 5,797,772 10,424,104Amounts received (5,767,165) (10,210,560)Reversal (recognition) of impairment of receivables (318) (10,601)(-) Loss on receivables (54,250) (94,274)Balance at the end of the period/year 391,064 395,423

Consolidated

June 30,2021

December 31,2020

Balance at the beginning of the year 242,340 271,402Balance acquired 23,631 14,811Revenue from healthcare operations not related to the Operator'shealthcare plans 477,870 638,460Co-participation 129,458 183,618Amounts received (560,223) (851,709)Provision for expected disallowances (2,134) (8,025)Reversal (recognition) of impairment of receivables 1,241 (4,631)(-) Loss on receivables (1,094) (1,586)Balance at the end of the period/year 311,089 242,340

Consolidated

Consolidated

Healthcare plansNot related to

healthcare plan TotalBalance at December 31, 2020 (51,848) (19,284) (71,132)

Reclassification (1,018) 1,018 -Amounts recognized (241,888) (116,410) (358,298)Reversals 233,406 91,857 325,263Balance at June 30, 2021 (61,348) (42,819) (104,167)


39

8. Deferred acquisition costs

Acquisition costs are deferred and amortized over the contract term or expectation according toActuarial Note (NTA) and are reflected in the balance of “Deferred acquisition costs” in currentand noncurrent assets. At June 30, 2021, deferred acquisition costs comprise the following:

9. Tax and social security credits

Tax and social security credits comprise the following:

(i) The Company and its Subsidiaries adopt the procedure of making monthly prepayments ofthe amounts due related to Income Tax and Social Contribution on Profit and making theannual adjustment of the amounts due at the end of the year, when the prepaid taxesaccounts are matched against the taxes payable accounts.

June 30,2021

December 31,2020

Balance at the beginning of the year 473,567 364,833Balance acquired 2,125 -Amounts recognized 171,083 402,802(-) Amortization (167,636) (294,068)Balance at the end of the period/year 479,139 473,567

Current assets 256,015 244,009Noncurrent assets 223,124 229,558

Consolidated

June 30,2021

December 31,2020

Income tax (i) 76,284 66,531Social contribution on profit (CSLL) (a) 29,866 14,255Withholding income tax 43,525 23,745Social security credit 1,776 878PIS and COFINS credits 10,619 7,835ISS credit 1,545 386Current assets 163,615 113,630

Other tax and social security credits 3,619 - Noncurrent assets 3,619 -

167,234 113,630

Consolidated


40

10. Other assets

a) These refer to judicial deposits related to Service Tax (ISS). The deposited amount is relatedto the provision shown in Note 17. As the deposit is made on the tax maturity date, i.e., in themonth subsequent to the provision, there is a mismatch between the judicial deposit and theprovision.

b) Under the share purchase and sale agreement and other covenants, it has been defined thatall contingencies relating to periods prior to the execution of the agreement would be theresponsibility of the former shareholders and, consequently, these amounts would bereimbursed or deducted from the portion withheld payable. The Company also has propertiespledged as collateral, granted in the form of a secured fiduciary transfer, to cover thecontingencies that exceed the installment withheld from the purchase price; however, inaccordance with IAS 37, these assets will be recorded only when the probability of transferof property ownership is virtually certain.

c) According to a private instrument for the purchase and sale of shares and other covenants,signed between the former members of the Green Line Group and the Notre DameIntermédica Group, which in certain circumstances guarantee, as long as they are liable toindemnity, any obligations that may occur. The corresponding entry was recognized inliabilities, in the provision for contingencies line item, as per Note 22.

d) The Company has made payments for data services effective for 12 months, which will berecognized in profit or loss over the appropriate period.

June 30,2021 December 31, 2020

June 30,2021

December 31,2020

Judicial deposit ISS – SP (a) - - 437,387 376,929Advances to suppliers 384 129 82,774 40,676Other receivables 1,384 1,705 12,925 11,671Advances to employees - - 12,996 12,640Advances for payment of lawsuits - - 16,560 10,587Prepaid expenses 410 347 5,570 654Data services to be amortized (d) - - 14,283 5,115Current 2,178 2,181 582,495 458,272

Receivables - indemnities (b) - - 569,748 620,124Trade receivables from healthcare plans - - 7,749 7,822Collateral deposits - - 842 838Indemnity assets (c) - - 84,759 74,045Court-frozen deposits 1 1 10,644 7,249Derivative financial instruments - NDF receivable - - 2,136 4,133Others 10,551 10,551 16,824 12,043Noncurrent 10,552 10,552 692,702 726,254

12,730 12,733 1,275,197 1,184,526

ConsolidatedParent


41

11. Income tax and social contribution

Deferred taxes arising from temporary differences will be realized as they are settled or realizedin a period not exceeding 10 years. The period of settlement or realization of such differencesis uncertain and is related to several factors that are not under management's control. Based onits projections of future taxable profits, management's expectation for the realization of taxcredits is as follows:

At June 30, 2021, the Company’s subsidiaries amortized for tax purposes goodwill amountingto R$ 1,800,646, using tax credits of R$ 612,821 as from the setup, in conformity with a technicalstudy, business plan and management’s projections.

The income tax expense for the period is as follows:

June 30, 2021

December 31,2020

Changes in theperiod

Recognized inthe statement of

profit or lossAcquisitions of

subsidiariesDeferred tax assets on temporary differences arising from:

Provision for lawsuits (civil, tax and labor) 147,375 163,524 (16,149) (4,952) (11,197)Impairment of receivables 46,639 47,687 (1,048) (1,122) 74Provision for SUS events 139,744 131,388 8,356 8,356 -Tax credit on difference - initial adoption leases CPC 6 (R2)/IFRS 16 17,637 11,986 5,651 3,104 2,548

Provision for ANS penalties 7,212 6,220 992 992 -Other additions (2,305) 25,842 (25,842) (25,842) -Tax loss 82,368 - 82,368 82,368 -

Deferred tax assets 438,670 386,647 52,023 62,904 (8,575)

Deferred tax liabilities on temporary differences arising from:Depreciation and amortization (23,677) (21,408) (2,269) (2,269) -Amortization of intangible assets for tax purposes - NDI Par (76,905) (82,996) 6,091 6,091 -Monetary adjustment of judicial deposits (38,672) (34,167) (4,505) (4,505) -Amortization of intangible assets for tax purposes (2,168) (2,168) - - -Deferred tax liabilities on goodwill arising from acquisition (40,798) (40,798) - - -Deferred tax liabilities on goodwill arising from merger (218,596) (157,032) (61,564) (61,564) -Others (23,943) (24,742) (1,505) (1,679) 73Indemnities (4,337) - (4,337) 1,705 (6,041)

Deferred tax liabilities (429,096) (363,311) (65,785) (62,221) (5,968)

Total net deferred tax 9,574 23,336 (13,762) 683 (14,543)

Consolidated

Consolidated2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total

18,649 37,299 37,299 37,299 43,597 48,096 48,096 48,096 48,096 48,096 24,047 438,670438,670

Parent Consolidated

2021 2020 2021 2020Profit before taxes (75,908) 383,990 (42,056) 671,845Tax rate of 34% 25,809 (130,557) 14,299 (228,427)

Share of profit of subsidiaries (17,136) 143,975 - -Variable compensation of management - - (8,125) (7,015)Share-based payment plan (5,666) (7,988) (5,666) (7,988)Present value adjustment - deferred purchase price - (5,002) - (5,002)Tax losses of subsidiaries without recognition of deferred tax - (790) (25,549) (10,178)Presumed profit adjustment - - 683 (6,321)Non-deductible expenses 1,466 - (2,251) (10,599)Other permanent exclusions (additions) (4,831) 362 (7,215) (12,520)

Income tax and social contribution expenses disclosed in the statement ofprofit or loss (358) - (33,824) (288,050)

Current income tax and social contribution expense - - (34,507) (271,730)Deferred income tax and social contribution expense - - 683 (16,320)

Effective rate 0% 0% -80% 43%

June 30,June 30,


42

12. Judicial and tax related deposits

The Company and its subsidiaries’ judicial deposits are as follows:

Tax – as mentioned in Note 22, the Company and its subsidiaries are parties to legal andadministrative proceedings. The Company and its subsidiaries, according to guidance providedby their legal advisors, made judicial deposits and await conclusion of the cases.

Labor – deposits made by the Company and its subsidiaries to cover contingencies presentedin Note 22 of a labor nature, for pain and suffering, collective lawsuits and public civil actions.

Regulatory/Civil – these correspond to judicial deposits relating to indemnity collectionlawsuits, affirmative covenants, revision actions, petitions requesting that amounts payablecould not be claimed and declaratory judgment actions. The regulatory/civil contingenciespresented in Note 22 refer to these deposits.

Judicial deposits – SUS – the subsidiaries are challenging in court the amounts charged byANS as “SUS Refund”, addressed by article 32 of Law No. 9656/98. The subsidiaries assignedno risk prognosis since this refers to a guarantee for effective jurisdictional protection.

13. Investments – Company

a) Changes in investment in direct subsidiary BCBF Participações S.A. were as follows:

(i) Refers to the goodwill generated by the acquisition of the Notre Dame IntermédicaGroup and the surplus value of tangible and intangible assets.

ConsolidatedDecember 31,

2020 Balance acquiredAdditions/write-

offs depositsMonetary

adjustment June 30, 2021Tax 212,244 27,319 7,475 9,987 257,025Labor 28,389 406 2,264 1,110 32,169Regulatory/Civil 66,592 31,967 7,874 1,425 107,858Judicial deposits - SUS 474,808 6,065 12,717 4,964 498,554

782,033 65,757 30,330 17,486 895,606

Consolidated

December 31,2019 Balance acquired

Additions/write-offs deposits

Monetaryadjustment

December 31,2020

Tax 176,785 918 25,996 8,545 212,244Labor 25,744 - 920 1,725 28,389Regulatory/Civil 55,037 1,299 8,179 2,077 66,592Judicial deposits - SUS 235,848 30,477 197,501 10,982 474,808

493,414 32,694 232,596 23,329 782,033

BCBF Other assets (i) TotalBalance at December 31, 2020 7,039,838 477,998 7,517,836Share of profit of subsidiaries for the period (37,523) - (37,523)Amortization Added value arising from business combinations - (11,823) (11,823)Balance at June 30, 2021 7,002,315 466,175 7,468,490


43

b) Main accounting information on direct subsidiary BCBF Participações S.A.:

June 30,2021

December 31,2020

Assets 9,510,654 9,376,664Liabilities 2,508,339 2,336,826Equity 7,002,315 7,039,838(Loss)/Profit for the period/year (37,523) 840,622% Equity interest 100.00% 100.00%


44

14. Property, plant and equipment

Property, plant and equipment items are subject to periodic analyses, at least annually, of impairment. At June 30, 2021, there were noindications of impairment of property, plant and equipment items.

The amount of depreciation for the period is recognized in line items “Cost of services rendered” and “Operating expenses”, as mentioned inNotes 26 and 27.a, respectively.

Consolidated

Useful life

Annualdepreciation rate

% p.a.December 31,

2020 Balance acquired Acquisitions Disposals Transfers DepreciationJune 30,

2021Land and buildings 25 to 50 years 2% 1,347,353 28,382 43,468 - 92,980 (19,312) 1,492,871Vehicles 1 to 10 years 17% 714 705 - (30) (13) (231) 1,145Facilities 5 to 10 years 14% 7,492 939 1,728 (29) 7,222 (723) 16,629Machinery and equipment 1 to 25 years 14% 306,457 31,802 22,236 (26) 13,425 (35,106) 338,788Furniture and fixtures 1 to 15 years 10% 56,988 14,453 4,726 (26) 2,773 (4,009) 74,905IT equipment 1 to 15 years 25% 26,597 2,598 2,496 - 30,370 (6,018) 56,043PP&E in progress - - 227,189 20,549 59,644 (1,579) (108,575) (208) 197,020Leasehold improvements - - 244,631 21,722 65,763 (790) (44,010) (8,743) 278,573

2,217,421 121,150 200,061 (2,480) (5,828) (74,350) 2,455,974

Consolidated

Useful life

Annualdepreciation rate %

p.a.December 31,

2019 Balance acquired Acquisitions Disposals Transfers DepreciationDecember 31,

2020Land and buildings 25 to 50 years 2% 1,072,796 221,553 3,176 - 75,817 (25,989) 1,347,353Vehicles 1 to 10 years 17% 639 1,218 - (480) (1) (662) 714Facilities 5 to 10 years 14% 4,926 1,603 81 (137) 2,013 (994) 7,492Machinery and equipment 1 to 25 years 14% 256,693 73,722 45,977 (352) 2,036 (71,619) 306,457Furniture and fixtures 1 to 15 years 10% 46,213 5,691 8,716 (247) 2,686 (6,071) 56,988IT equipment 5 to 15 years 25% 26,344 2,663 2,236 - 6,952 (11,598) 26,597PP&E in progress - - 179,598 35,158 100,210 (1,093) (86,012) (672) 227,189Leasehold improvements - - 171,344 (3,844) 120,740 (7,352) (21,533) (14,724) 244,631

1,758,553 337,764 281,136 (9,661) (18,042) (132,329) 2,217,421


45

Management did not identify events or circumstances that would require modification in theestimates of economic useful life for the items presented in property, plant and equipment of theother group companies.

In the period, the Company and its subsidiaries acquired property, plant and equipment itemsat a total cost of R$ 200,061 of which R$ 28,285 were paid in the period and R$ 171,776 areprovisioned under “Trade payables”.

15. Right of use and leases

The Company has leases with the nature of lease of properties, IT equipment and fleet ofvehicles, using the usual market clauses for cancelation and/or extension of contracts.

The restatement rates used to update the amounts under the terms of the contracts are generallyindexed to the Consumer Price Index (IPC).

The Company calculated discount rates based on the risk-free interest rates observed in theBrazilian market, for the terms of its contracts, adjusted to the Company's reality. Spreads wereobtained from surveys conducted with potential investors of the Company's debt securities. Thetable below shows the rates used by the Company:

The leases contracted by the Company are presented below:

a) Right of use

Useful life Rate % p.a.Up to 2 years 6.82%2 – 4 years 7.85%4 – 6 years 7.76%6 – 8 years 9.19%8 – 10 years 9.41%Over 10 years 9.61%

Consolidated

Rentals

Machineryand

equipment Others TotalAt December 31, 2020 466,923 25,492 36 492,451Balance acquired 67,491 234 - 67,725Contract updates (1,285) - - (1,285)New contracts 20,823 28,699 - 49,522Disposals (7,664) - - (7,664)Depreciation (30,627) (5,107) (11) (35,745)Balance at June 30, 2021 515,661 49,318 25 565,004


46

b) Leases

(i) Changes in leases

(ii) Maturity of contracts

Consolidated

Rentals

Machineryand

equipment Others TotalAt December 31, 2019 463,203 15,543 59 478,805Balance acquired 11,861 960 - 12,821Contract updates 88,108 13,505 - 101,613New contracts 13,302 - - 13,302Disposals (54,507) - - (54,507)Depreciation (55,044) (4,516) (23) (59,583)At December 31, 2020 466,923 25,492 36 492,451

June 30,2021

December 31,2020

Balance at the beginning of the year 527,731 497,876

Balance acquired 75,038 13,691Contract updates (1,285) 101,613New contracts 49,522 13,302(+) Disposals (9,656) (58,151)Interest 28,340 43,959(-) Consideration paid (53,918) (84,559)Balance at the end of the period/year 615,772 527,731

Current 45,348 38,376Noncurrent 570,424 489,355

Consolidated

ConsolidatedJune 30, 2021 December 31, 2020

2021 51,945 88,9272022 97,129 81,5942023 89,259 73,4742024 85,536 70,6582025 81,449 66,682

More than 5 years 623,188 493,503Undiscounted amounts 1,028,506 874,838

Embedded interest (412,734) (347,107)615,772 527,731


47

c) Additional information

In accordance with the IASB Basis for Conclusion 161 and 162, refers to CVMInstruction 02/19, management used the nominal incremental rate for the calculation ofassets and liabilities within the scope of IFRS 16/CPC 06 (R2) and disclosed in theCompany's statement of financial position.

Management believes that the rate used reflects real cash flow and is in line with thecharacteristics of our contracts, as determined by item 27b of the CVM official letter.

To comply with the guidance of the official letter and required transparency, we present belowthe impacts on the statement of financial position, with the comparability of nominal interestx effective interest. For the calculation of the effective rate we used the index of our contracts,IGP-M for most of them, applied to the annual payment flow, obtained by the disclosure ofBanco Bradesco projections for the indicators up to 2025, with repetition of the longest ratefor the future flow starting from 5 years.

d) CVM Ruling 859/2020

On July 7, 2020, CVM approved Ruling 859, which establishes amendments to AccountingPronouncement – CPC 06 (R2), and which is in line with the approval of the IASB.

Due to the COVID-19 pandemic, lease agreements in which there were impacts of reductionor suspension of payments and which, under normal circumstances, would causemodifications in contracts, with changes in cash flows and review of discount rates, shouldbe treated as variable payment.

In compliance with CVM Ruling, the Company analyzed and identified the agreements thatcorrespond to the pronouncement, as they were directly affected by COVID-19 and,consequently, were subject to effects of reduction and/or suspension of payments, and theCompany treated such agreements as variable payments. In the period ended June 30, 2021,the effect on profit or loss amounted to R$ 1,706, recorded as reduction in rental expenses.

Consolidated

June 30, 2021 December 31, 2020

Nominal flowLease liability 1,028,506 874,838Embedded interest (412,734) (347,107)

615,772 527,731

Real flow inflatedLease liability 1,072,683 907,602Embedded interest (430,462) (360,106)

642,221 547,496


48

16. Intangible assets

a. Movement in intangible assets

Consolidated

Useful life December 31, 2020Balance

acquired Acquisitions Disposals Transfers AmortizationJune 30,

2021Healthcare plan portfolio acquisition Useful life (a) 516,306 311,738 - (209) 1,597 (45,684) 783,748Computer system 20% p.a. 31,966 1,040 629 (6) 5,828 (6,304) 33,153Goodwill in business combinations Indefinite (b) 5,474,595 1,336,584 - - (1,597) - 6,809,582Intangible assets 223,676 4,476 78 - - (17,613) 210,617Other intangible assets Indefinite (c) 28 - - - - - 28

6,246,571 1,653,838 707 (215) 5,828 (69,601) 7,837,128

Consolidated

Useful life December 31, 2019Balance

acquired Acquisitions Disposals Transfers Amortization December 31, 2020Healthcare plan portfolio acquisition Useful life (a) 311,795 272,957 - (36) 138 (68,548) 516,306Computer system 20% p.a. 19,986 1,407 2,284 - 17,349 (9,060) 31,966Goodwill in business combinations Indefinite (b) 2,703,967 2,765,801 - (3,586) 20,621 (12,208) 5,474,595Intangible assets 305,324 - - - (19,548) (62,100) 223,676Other intangible assets Indefinite (c) 601 - - - (518) (55) 28

3,341,673 3,040,165 2,284 (3,622) 18,042 (151,971) 6,246,571


49

(a) This refers to the acquisition of a dental and healthcare plan portfolio, as follows:

The acquisition of the dental and healthcare plan portfolio has been amortized as shown inthe table below:

Portfolio breakdown

Group/Company DateJune 30,

2021December 31,

2020Notre Dame Group May-21-14 364 375Santamália Group Nov-16-15 1,743 3,237Unimed ABC Sep-23-16 12,407 13,442Cruzeiro do Sul Group Jan-31-18 12,836 13,692SAMED Group Oct-01-18 20,093 21,951Green Line Group Jan-01-19 120,159 126,981Mediplan Group May-29-19 46,312 49,268Belo Dente Jul-04-19 34,987 37,856São José Group Nov-18-19 4,788 5,394São Lucas Group Jan-23-20 94,808 100,291Clinipam Group Feb-07-20 110,493 105,425Ecole Apr-13-20 11,922 13,173Grupo Santa Mônica Aug-24-20 4,166 5,552Lifeday Dec-01-20 19,361 19,669Climepe Mar-08-21 38,115 -Bio Saúde Mar-31-21 27,523 -Medisanitas Group Apr-13-21 223,671 -

783,748 516,306

Portfolio Useful lifeDental plan 3 to 5 yearsHealth 2 to 13 years


50

(b) This refers to goodwill based on expected future profitability (business combination) withindefinite useful life and, whenever necessary, an impairment test of the cash-generating unitis performed.

1 – CGU - Cash-Generating Unit

Management will review the definitions of the CGU for carrying out the annual impairment testas there is a strong tendency to have a third CGU due to the Company’s increase in the MinasGerais region.

(c) This refers to the allocation of identifiable intangible assets on the acquisition of companies(customer relationship, trademarks and non-compete agreement) to be amortized as shownbelow:

The amount of amortization for the period is recognized in line items “Cost of services rendered”and “Operating expenses”, as mentioned in Notes 26 and 27.a, respectively.

Composição do ágio

Grupo/Empresa UGC1 Data30 de junho

de 202131 de dezembro

de 2020Grupo Notre Dame Saúde/Odontológica 21/05/2014 480,133 480,133Grupo Santamália Saúde 16/11/2015 125,405 125,405Hospital Family Saúde 23/12/2015 77,149 77,149Unimed ABC Saúde 23/09/2016 71,476 71,476SAMCI/IBRAGE Saúde 01/03/2017 22,232 22,232Hospital São Bernardo Saúde 23/02/2017 147,652 147,652Grupo Nova Vida Saúde 03/07/2017 148,566 148,566Grupo Cruzeiro do Sul Saúde 31/01/2018 56,190 56,190Grupo SAMED Saúde 01/10/2018 173,928 173,928Grupo Green Line Saúde 01/01/2019 802,484 802,484Grupo Mediplan Saúde 29/05/2019 223,217 223,217Hospital Jacarepaguá Saúde 05/04/2019 54,223 54,223Belo Dente Odontológica 04/07/2019 21,379 21,379Grupo Ghelfond Saúde 28/11/2019 161,698 161,698Grupo São José Saúde 18/11/2019 90,652 90,652Grupo São Lucas Saúde 23/01/2020 199,728 204,458Grupo Clinipam Saúde Sul 07/02/2020 2,313,675 2,325,208Ecole Saúde 13/04/2020 37,973 35,521LabClin Saúde 13/04/2020 4,464 4,472Hospital Camboriú Saúde 20/05/2020 35,759 35,761Grupo Santa Mônica Saúde 24/08/2020 113,915 115,539Hospital Santa Brigida Saúde 23/10/2020 28,506 28,554Lifeday Saúde 01/12/2020 94,881 68,698Lifecenter Saúde 20/01/2021 215,031 -Climepe Saúde 08/03/2021 128,613 -Bio Saúde Saúde 31/03/2021 60,102 -Hospital Londrina Saúde Sul 05/04/2021 174,921 -Grupo Medisanitas Saúde 13/04/2021 745,630 -

6,809,582 5,474,595

Intangible assets Useful lifeTrademarks 30 yearsCustomer relationship 3 to 8 yearsNon-compete agreement 5 years


51

17. Taxes and social charges payable


2020

Service Tax (ISS) 458,221 392,279 Social security contribution 25,677 12,022 FGTS (Unemployment Compensation Fund) 3,161 5,194 Taxes on revenue (PIS and COFINS) 30,126 22,766 Union dues and social assistance contributions 125 120 Payment in installments of taxes and contributions 26,474 15,347 Others 3,498 3,330Taxes payable 547,282 451,058

Income tax - employees 10,463 13,614 Income tax - third parties 9,375 7,392 Service tax 7,790 4,876 Withheld social security contribution 13,777 6,585 Withholding PIS/COFINS/CSLL 20,427 19,316Taxes withheld payable 61,832 51,783

Current 609,114 502,841

Payment in installments of taxes, fines and fees - federal 64,053 44,961Payment in installments of taxes, fines and fees - municipal 928 680Payment in installments of taxes, fines and fees - others 21,355 16,728Noncurrent 86,336 62,369

695,450 565,210

Consolidated


52

18. Loans and financing

a) Breakdown of loans and financing

The Company understands that the carrying amounts of loans and financing approximate theirfair values and are classified as level 2.

b) Changes in loans and financing:


2021December 31,

2020Credit facility Financial institution Index Maturity Amortization Interest % p.a. Amount AmountBNDES Banco Santander TLP 2021 Monthly 13.76% 14 18BNDES Bradesco TLP 2023 Monthly 6.42% 844 1,029Working capital Banco Itaú CDI + 2.4%p.a. 2020 - 2024 Annual 12.92% 258,264 279,166Working capital Banco Itaú Fixed rate 2020 - 2024 Monthly 11.09% - 3,088Working capital Banco Itaú CDI 2020 - 2024 Monthly 4.00% 20,666 -Working capital Banco Santander Fixed rate 2021-2023 Monthly 11.71% 54,985 4,055Working capital Banco Santander Fixed rate 2021 Monthly 11.71% 7,061 2,245Working capital Banco Santander CDI + +2.4%p.a. 2021 Monthly 2.40% 249,860 -Working capital Bradesco CDI 2020 - 2023 Monthly 15.00% 12,146 4,956Working capital Bradesco Fixed rate 2024 Monthly 11.22% - 4,461Working capital Banco do Brasil CDI 2023 Monthly 2.70% 4,517 -Working capital Banco do Brasil CDI + +2.3%p.a. 2020 - 2025 Annual 2.70% 298,651 298,619Working capital Citibank CDI + +2.6%p.a. 2020 - 2023 Annual 12.92% 260,964 260,230Working capital Banco BDMG CDI 2020 - 2024 Quarterly 2.70% 10,079 -Working capital Caixa Economica Federal Fixed rate 2025 Monthly 9.64% - 2,000Leasing Banco do Brasil CDI 2023 Monthly 2.67% - 574Leasing Banco Santander CDI 2020 - 2023 Monthly 9.14% 935 1,689Leasing Bradesco CDI 2020-2022 Monthly 15.94% - 521Leasing HP Financial CDI 2022 Monthly 14.10% 74 101Leasing HP Financial Fixed rate 2020 - 2023 Monthly 1.10% 329 -Promissory notes Bradesco CDI + 1.4%p.a. 2020-2022 Annual 6.00% 189,576 278,677Credit cooperative Uniprime CDI 2025 Monthly 9.66% 3,187 2,076Credit cooperative Uniprime Fixed rate 2025 Monthly 12.68% 3,257 476Credit cooperative Credicom CDI 2020 - 2026 Monthly 4.03% 28,214 -Credit cooperative Sicoob CDI 2020 - 2028 Monthly 2.50% 22,562 -Credit cooperative Sicoob CDI 2019 - 2021 Monthly 29.11% 39 -Others CDI 13,100 24,759

1,439,324 1,168,740

Current 303,437 225,077Noncurrent 1,135,887 943,663


2021December 31,

2020Balance at the beginning of the year 1,168,740 255,842Balance acquired 97,223 48,061Loans and financing 308,016 1,182,000Transaction cost 643 (7,821)Recognition of costs 1,287 1,698Repayment (142,580) (324,826)Interest paid (23,158) (24,447)Exchange Variation (2,498) -Present value adjustment - 22Interest 31,651 38,211Balance at the end of the period/year 1,439,324 1,168,740


53

19. Debentures

a) Breakdown of debentures balance:

(i) Fifth public issue of BCBF Participações S.A.

BCBF Participações S.A. BCBF Participações S.A. (direct subsidiary of the Company) raised, on November 4, 2020, the amount ofR$ 700,000, by issuing 700,000 nonconvertible debentures, with par value of R$ 1,000.00 and restricted placement efforts, based onCVM Ruling No. 476/2009, with the objective of reinforcing cash in the ordinary course of business, provided that the funds may alsobe allocated to capital contribution to its subsidiaries.

The total period of issue is 5 years from the date of issue and principal will be amortized annually as from the 3rd (third) year, onNovember 4, 2023, November 4, 2024, and on the maturity date on November 4, 2025.

Remuneration will be paid biannually, with the first payment on May 4, 2021 and on the maturity date on November 4, 2025. Themonetary adjustment corresponds to a surcharge of CDI (accumulated variation of average rates of CDI) + spread of 2.65% p.a., ona 252 business days basis, calculated and disclosed daily by B3.

On November 26, 2020, in compliance with the provisions of section 12 of CVM Ruling No. 358/02, the Company informed itsshareholders and the market in general that its subsidiary BCBF Participações S.A. successfully concluded its issue of debentures.

Consolidated

Security Type Number Issue Maturity Average charges Loans and financingJune 30,

2021December 31,

2020BCBF12 2nd issue 300,000 23/02/2018 23/02/2021 CDI + 2.25% p.a. 300,000 - 60,801BCBF14 4th issue b) 750,000 22/09/2020 22/09/2025 CDI + 2.65% p.a. 750,000 756,560 752,837BCBF15 5th issue a) 700,000 04/11/2020 04/11/2025 CDI + 2.65% p.a. 700,000 701,758 697,639NDMI13 3rd issue c) 800,000 01/08/2019 01/08/2024 100% CDI + 1.6% p.a. 800,000 811,364 808,386

2,269,682 2,319,663

Current 29,464 81,091Noncurrent 2,240,218 2,238,572


54

(ii) Fourth public issue of BCBF Participações S.A.

BCBF Participações S.A. (Company’s direct subsidiary) issued, on September 22, 2020,the amount of R$ 750,000 through 750,000 nonconvertible debentures at a par value ofR$ 1,000, with restricted placement efforts, based on CVM Ruling No. 476/2009, forpurposes of cash reinforcement in the normal course of business, and the resources mayalso be allocated to capital increases in subsidiaries.

The total period of issue is 5 years from the date of issue and principal will be amortizedannually as from the 3rd year on September 22, 2023, September 22, 2024 and on thematurity date on September 22, 2025.

Remuneration will be paid biannually, with the first payment on March 22, 2021 and on thematurity date on September 22, 2025. The inflation adjustment corresponds to a surchargeof CDI (accumulated variation of average rates of CDI) + spread of 2.65% p.a., on a 252business days basis, calculated and disclosed daily by B3.

On September 30, 2020, in compliance with the provisions of section 12 of CVM RulingNo. 358/02, the Company informed its shareholders and the market in general that itssubsidiary BCBF Participações S.A. successfully concluded its issue of debentures.

(iii) Third public issue of Notre Dame Intermédica Saúde S.A.

Notre Dame Intermédica Saúde S.A. (BCBF’s subsidiary) issued, on August 1, 2019, theamount of R$ 800,000 through issue of 800,000 nonconvertible debentures with par valueof R$ 1,000.00, with restricted placement efforts, based on CVM Ruling 476/2009, in orderto restructure the Company's indebtedness profile, acquire companies, purchase newequipment, and improve working capital.

The total period of issue is 5 years from the date of issue, and remuneration will be paidin 3 annual installments, with the first payment in the 3rd year from the date of issue. Assuch, the first payment will be on August 1, 2022 and the last one on August 1, 2024. Theinflation adjustment corresponds to a surcharge of CDI (accumulated variation of averagerates of CDI) + spread of 1.60% p.a., on a 252 business days basis, calculated anddisclosed daily by B3.

On February 1, 2021, in compliance with the provisions of Law 6404/1976 and CVMRuling 358/2002, the Company informed its shareholders and the market in general that atthis date its subsidiary Notre Dame Intermédica Saúde S.A. concluded the payment ofinterest on the 3rd issue of nonconvertible debentures. The amount of interest paid wasR$ 13,911.

b) Changes in debentures:

BCBF Intermédica ConsolidatedBalance at December 31, 2020 1,511,277 808,386 2,319,663Interest accrued 37,526 16,445 53,971Recognition of costs 1,280 443 1,723Repayment (ii) (60,000) - (60,000)Interest paid (i) (31,765) (13,910) (45,675)Balance at June 30, 2021 1,458,318 811,364 2,269,682


55

(i) The amount of R$ 31,765 refers to interest paid on the BCBF12, BCBF 14 and BCBF 15 debentures,realized on February 23, March 22, and May 4, 2021.

(ii) On February 23, 2021, subsidiary BCBF Participações S.A. fully settled the simple nonconvertibledebentures issued on February 23, 2018.

c) The balance of debentures will be amortized as follows:

The Company understands that debentures are recorded at amounts that approximate their fairvalue and classified as level 2.

d) Covenants

Notre Dame Intermédica Saúde S.A. and BCBF Participações S.A. have covenants that mayrequire early maturity or refinancing of debts if the Companies do not comply with thesecovenants.

Management has been continuously monitoring the calculation of the indices linked to thesecovenants, so as to make sure there is no evidence of breach of contract. At June 30, 2021, noevidence had been found to suggest that the Company would be unable to fully comply with therequirements established at the measurement periods.

Minimum and maximum indices and amounts required by these covenants at June 30, 2021 areas follows:

(i) 5th issue BCBF Participações S.A.

The relationship between net debt and EBITDA of the Company must be equal to or lessthan 3.0 during the term of the agreement and adjusted according to the contract clause. TheCompany is compliant with the covenants.

(ii) 4th issue BCBF Participações S.A.


(iii) 3rd issue Notre Dame Intermédica Saúde S.A.


Consolidated

Year Current Noncurrent June 30, 2021December 31,

202012 months 29,464 - 29,464 81,09125 to 36 months - 743,567 743,567 743,77937 to 48 months - 988,993 988,993 988,33849 to 60 months - 507,658 507,658 506,455

29,464 2,240,218 2,269,682 2,319,663


56

e) Guarantees

BCBF Participações and Notre Dame Intermédica Saúde S.A. have sufficient funds to honorcontractual commitments.

As collateral, the original guarantor gives bond in favor of the Debenture holders pursuant to theterms of the Debenture indenture.

f) Early redemption

The issue of the Notre Dame Intermédica Group may be redeemed in advance at the Company’sdiscretion, as from the date specified in the indenture, upon a written communication to theTrustee and publication of a notice to the debenture holders.

20. Technical reserves of healthcare operations

a) Unsettled claims reserve to be paid to SUS

On June 3, 1998, the Federal Government enacted Law 9656, which provides, in itsarticle 32, for the reimbursement to SUS of the expenses incurred on the service ofhealthcare plan users when using the public network. The Company’s subsidiarieschallenge the collection at the administrative and judicial levels due to various irregularitiesthat impair its effectiveness, among which the lack of regulation on infra-constitutionalmatters. For these proceedings, subsidiary Notre Dame Intermédica Saúde S.A. makesjudicial deposits to guarantee the alleged debt, as described in Note 12.

ReferenceJune 30,

2021December 31,

2020Provision for events / unsettled claims reserve to be paid to SUS a. 801,830 725,935Provision for events / unsettled claims reserve to be paid to other service providers b. 523,086 467,953Incurred but not reported reserve (IBNR) c.(i). 529,457 372,663Unearned premiums / consideration reserve (UPCR) c.(ii). 182,006 138,824Reserve for waiver c.(iii). 6,013 2,861

2,042,392 1,708,236

Current 1,451,936 1,176,699Noncurrent 590,456 531,537

Consolidated

June 30,2021

December 31,2020

Balance at the beginning of the year 725,935 510,486Balance acquired 41,854 67,808Notices received from SUS 19,048 68,877SUS Events Recovery 19,657 88,776Monetary adjustment 6,996 27,562(-) Payments made (11,660) (37,574)Balance at the end of the period/year 801,830 725,935

Consolidated


57

b) The unsettled claims reserve is as follows:

c) Changes in technical reserves:

(i) Incurred but not reported reserve (IBNR), classified in current liabilities, isdetermined through an actuarial study (Actuarial Note) and is intended to cover theestimated amount of payments of events that have already been incurred but notreported to the Operators.

(ii) Unearned Premiums/Consideration Reserve (UPCR), classified in current liabilities,are revenues related to coverage periods of subsequent months.

(iii) Reserve for remission, classified in current and noncurrent liabilities, are reservesto cover the exemption from consideration by beneficiaries, according to theagreement.


2021December 31,

2020Balance at the beginning of the year 467,953 380,855Balance acquired 48,726 87,719Notices received from the accredited network, net of disallowances 5,046,780 7,473,654Expense with own network classified in events (1,418,044) (2,146,149)Payments made to accredited network (3,622,329) (5,328,126)Balance at the end of the period/year 523,086 467,953

Incurred but notreported reserve

(IBNR) (i)

Unearned premiums /consideration reserve

(UPCR) (ii)Reserve for

waiver (iii)Balance at December 31, 2020 372,663 138,824 2,861

Balance acquired¹ 83,669 14,635 3,377

Changes in reserves for the period 73,125 28,547 (225)

Balance at June 30, 2021 529,457 182,006 6,013


58

21. Other liabilities

a) Contractual obligations

These refer to contractual obligations on the acquisitions of companies, net of interest (PVadjustment), and related-party transactions with its subsidiaries, as shown below:

b) The balance recorded in this line item refers to the supplementary health rate paid quarterlyrelated to the acquiree Green Line Sistema de Saúde S.A., according to RN 89/2005, wherethe number of beneficiaries is calculated according to the age bracket.

c) At June 30, 2021, the outstanding balance was mainly comprised of amounts payable tosellers.

d) The balance refers to obligations with health service providers and medical teams.

June 30,2021

December 31,2020

June 30,2021

December 31,2020

Contractual obligations (a) - - 60,110 35,143Third party deposits - - 20,010 21,790Advances from customers - - 42,151 14,609Other payables (c) - - 34,925 14,100Advance for bank partnership - - 3,200 3,200Rent payable - - 13,196 13,622Supplemental Health Fee (b) - - 7,066 7,338Payables for healthcare operations not related tohealthcare plans(d) - - 49,110 51,574Total current - - 229,768 161,376

Contractual obligations (a) 398,488 391,769 949,976 802,618Provisions for employee benefit plans - - 22,027 21,892Advance for bank partnership - - 2,000 3,599Supplemental Health Fee (b) - - 27,442 29,268Others - - 24,494 28,102Total noncurrent 398,488 391,769 1,025,939 885,479

398,488 391,769 1,255,707 1,046,855

Parent Consolidated

Index Maturity Parent ConsolidatedJune 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020

Notre Dame Intermédica 100% CDI 05/23/2020 398,488 391,769 - -Family Hospital 100% CDI 05/01/2021 - - 16,317 15,941SAMCI 100% CDI 12/27/2021 - - 12,281 11,939Hospital Nova Vida 100% CDI 07/08/2022 - - 23,715 23,055Unimed ABC 100% CDI 09/22/2022 - - 17,847 22,037Hospital SBC 100% CDI 02/23/2023 - - 28,691 28,717Cruzeiro do Sul Group 95 % do CDI 02/22/2024 - - 23,047 22,385SAMED Group 105 % do CDI 01/25/2025 - - 9,667 52,504Green Line Group 100% CDI 01/01/2025 - - 219,668 214,279Hospital Intermédica Jacarepaguá 100% CDI 04/05/2025 - - 8,431 11,240Mediplan Group 100% CDI 05/25/2025 - - 50,880 36,575Belo Dente IPCA 07/04/2025 - - 11,926 12,299Ghelfond Participações 90 % do CDI 11/28/2024 - - 37,562 9,439Ecoimagem 95 % do CDI 01/01/2025 - - 12,619 10,184São José Group 100% CDI 11/18/2025 - - 23,373 22,800Clinipam Group 100% CDI 02/07/2026 - - 149,714 152,650São Lucas Group 100% Selic 01/26/2026 - - 48,567 47,390Ecole 100% CDI 04/13/2026 - - 10,142 9,893Hospital Camboriú 100% CDI 04/20/2026 - - 12,232 11,930Grupo Santa Mônica 100% CDI 08/24/2026 - - 96,681 94,294Hospital Santa Brigida 100% CDI 10/23/2026 - - 11,121 10,846Lifeday IPCA 12/01/2026 - - 18,516 17,364Lifecenter 100% CDI 12/31/2026 - - 52,277 -Bio Saúde 100% CDI 03/31/2027 - - 6,708 -Grupo Medisanitas 100% CDI 04/22/2026 - - 81,006 -Hospital de Londrina 100% CDI 04/05/2027 - - 27,098 -

398,488 391,769 1,010,086 837,761


59

22. Provision for lawsuits

In the ordinary course of their business, the Company and its subsidiaries are exposed to certaincontingencies and risks. This provision is set up at estimated costs to resolve for ongoing labor,regulatory/civil and tax proceedings based on the opinion of the Company and its subsidiaries’legal advisors and considers lawsuits rated as a probable loss, i.e. above 50% of likelihood ofan unfavorable outcome.

Contingencies for which the likelihood of loss is assessed as probable, and, also, regardless ofthe prognosis of loss, all lawsuits that result in an obligation originated by law, are presentedbelow:

Provision for lawsuits regarding:

Tax

· Subsidiary Notre Dame Intermédica Saúde challenges in court the Service Tax - ISS(city of São Paulo) levied on its billing from November 2001 to December 2002. Thelower court awarded a favorable decision on this claim. In view of the decision acceptingthe appeal filed by the São Paulo city administration, motions to annul have been filedand await a decision.

· Subsidiary Notre Dame Intermédica Saúde argues in court against the right of ISS leviedon the difference between the amounts received in the Health Plan activity and the onestransferred to third parties that provided the service. A final and unappealable decisionfavorable to the Company was handed down, determining the conversion into income ofthe amounts paid through judicial deposit. Considering the final decision on the lawsuit,the City started the internal procedures for payment of the determined amount.

· Subsidiary Notre Dame Intermédica Saúde challenges in court the ISS levied by theCampinas city administration on business conducted in that city, as well as theconstitutionality of item 4.23 of the List of Services annexed to Supplementary LawNo. 116/2003 and Municipal Law No. 11829.

· Subsidiary Notre Dame Intermédica Saúde is challenging in court the application of FAP(an index applied to calculate the occupational accident insurance owed by employers)on the expected Occupational Accident Insurance (SAT)/Occupational EnvironmentalRisk (RAT) contribution rate, and the Authority that jointly filed the lawsuit was requestedto refrain from taking any actions in connection with the collection of amounts that are

December 31,2020 Balance acquired Provision/(reversal) Payments

Monetaryadjustment June 30, 2021

Tax 370,893 260 (108,139) - 12,065 275,079Labor 225,908 9,007 (48,148) (7,732) 8,576 187,611Regulatory/Civil 273,729 56,814 (8,013) (20,830) 22,726 324,426

870,530 66,081 (164,300) (28,562) 43,367 787,116

ConsolidatedDecember 31,

2019 Balance acquired Provision/(reversal) PaymentsMonetary

adjustment December 31, 2020Tax 412,897 9,374 (48,535) - (2,843) 370,893Labor 212,334 3,032 16,347 (22,064) 16,259 225,908Regulatory/Civil 262,387 28,151 (13,650) (38,619) 35,460 273,729

887,618 40,557 (45,838) (60,683) 48,876 870,530

Consolidated


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allegedly payable by virtue of this index, such as denying to renew the tax clearancecertificate. Furthermore, the Petitioner’s credit right recognition is required.

· Subsidiary Notre Dame Intermédica Saúde is challenging in court the tax notice relatedto differences in FGTS (Unemployment Compensation Fund) amounts paid, based onthe assumption that an alleged employment relationship with third parties (legal entities)exists.

Labor

· The Company is involved in labor lawsuits in which the recognition of employmentrelationship and labor-related and/or termination amounts are discussed.

Regulatory/Civil

· The subsidiaries of the Notre Dame Intermédica Group are involved in lawsuits filed bybeneficiaries of the Healthcare Plan who seek to obtain contractual coverage forhospitalizations, medical treatment and release of surgeries in disagreement with thecontractual conditions or the regulations of ANS that regulate the matter. In general, theyare related to: grace period, procedures not foreseen in the List of Mandatory Coverageof the ANS or in disagreement with the Guidelines of Utilization - DUT, aestheticalprocedures, geographic coverage, hospitalization outside the accredited network, etc.

· The subsidiaries of the Notre Dame Intermédica Group are involved in lawsuits filed bybeneficiaries of the Healthcare Plan that discuss the amounts of the adjustments appliedunder the contracts. These lawsuits seek the declaration of nullity of the adjustmentclause of the contracts that are regulated by ANS or require the application of an indexdifferent from the one stipulated in the contract.

· The subsidiaries of the Notre Dame Intermédica Group are involved in lawsuits filed bybeneficiaries of the Healthcare Plan who seek the Notre Dame individual maintenanceof the terminated beneficiary in the collective corporate contract. The plaintiffs seek toremain in the plan even not fulfilling the conditions of articles 30 and 31 of LawNo. 9656/98, that is, to remain in the plan for a period longer than that established bylaw or the transfer to individual plan with the maintenance of the amount charged underthe collective plan.

· The subsidiaries of the Notre Dame Intermédica Group are involved in lawsuits filed thatseek to remain in the healthcare plan contracts that were terminated by the subsidiariesof the Notre Dame Intermédica Group due to default, commercial disagreement, end ofeffective period, etc. The plaintiffs seek to annul the clause that authorizes the rescissionfor maintenance of the contractual relationship.

· The subsidiaries of the Notre Dame Intermédica Group are involved in lawsuits filed bybeneficiaries of the Healthcare Plan that seek the recognition of the alleged poor medicaland/dental practice by the Company’s authorized professionals in the proceduresprovided to the beneficiaries, attributing them joint liability in the claims for indemnity forproperty damages, pain and suffering and/or aesthetical errors.

At June 30, 2021, the Company and its subsidiaries are involved in other regulatory/civil,labor and tax lawsuits in the total claimed amount of R$ 2,638,891 (R$ 2,657,414 at


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December 31, 2020), which, according to their legal advisors, present a possible likelihoodof loss and, for this reason, were not accrued.

The main civil, labor and tax lawsuits classified with a possible likelihood of loss are presentedbelow:

Tax

· The subsidiaries of the Notre Dame Intermédica Group are plaintiffs in a lawsuitrequesting urgency against the Federal Government (National Treasury) in thedeclaration of inexistence of tax relationship between the Plaintiffs and the Defendantregarding the requirements, due to stock options plans, of social security contributionson payroll and other contributions of third parties (Education Allowance, INCRA, SESC,SENAC and Sebrae).

· The subsidiaries of the Notre Dame Intermédica Group are involved in lawsuitschallenging in court the tax assessment notice related to differences in FGTS(Unemployment Compensation Fund) amounts paid, based on the assumption that analleged employment relationship with third parties (legal entities) exists.

· The subsidiaries of the Notre Dame Intermédica Group are involved in an administrativeproceeding challenging the undue collection of the disallowance of the social securityamount stated in the GFIP (Unemployment Compensation Fund Payment and SocialSecurity Information Form) in the period from May 2012 to February 2017.

· The subsidiaries of the Notre Dame Intermédica Group are involved in an administrativeproceeding arising from tax assessment notices for undue collection of CorporateIncome Tax (IRPJ) and Social Contribution on Net Income (CSLL) for calendar year2013.

Labor and Regulatory/Civil

· In general terms, the nature of these proceedings is the same as those detailed above.The Company has a monitoring system for all administrative and judicial proceedings inwhich it appears as “plaintiff” or “defendant” and, supported by the opinion of its legalcounselors, classifies the lawsuits according to the likelihood of loss. Analyses on thetendency of the judicial decisions are performed periodically and, if necessary, theCompany reclassifies the risks of such proceedings.

Currently a significant part of the regulatory/civil, labor and tax lawsuits are derived from theacquired companies where the Company has the right to offset any losses against futureinstallments of the purchase price.

June 30, 2021 December 31, 2020Tax 2,026,227 1,940,800Labor 232,035 233,764Civil 380,629 482,850

2,638,891 2,657,414

Consolidated


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23. Deferred purchase price

As per the debt acknowledgment agreement dated October 31, 2014, the Company assumed Bain Capital Brazil Participações Ltda.'sobligation to pay the deferred purchase price portion of R$ 220,207 maturing on June 20, 2020. Since the amounts of the withheld portionmay be used to settle any contingencies that may arise and, considering the existence of administrative and judicial proceedings still inprogress, the amounts remain withheld, as shown below:

(a) Contingencies to be reimbursed, in accordance with the contractual clauses set out in the share purchase and sale agreement and other covenants.

On June 19, 2020, the Company notified the sellers of the amounts subject to deduction with the portion withheld and reclassified the lineitem "Deferred purchase price" from Current to Noncurrent, as it understands that the agreement will not be terminated before the 12-monthperiod. On August 21, 2020, the sellers filed a proceeding with the International Arbitration Committee of the International Chamber ofCommerce (ICC) requesting payment of the deferred purchase price portions. In the Company's opinion, the total amount of losses incurredand outstanding contingencies under the responsibility of the sellers exceed the amount of portions withheld and, supported by its legaladvisors, it will maintain the amounts retained.

December 31,2019

Additions -Contingencies

Monetaryadjustment

December 31,2020

Additions -Contingencies June 30, 2021

Original amount of acquisition 254,240 - - 254,240 - 254,240Accrued interest according to contract - (10% p.a.) 183,235 - 16,639 199,874 - 199,874Original amount - adjusted 437,475 - 16,639 454,114 - 454,114Interest to be accrued according to contract - (10% p.a.) 16,680 - (16,639) 41 - 41(-) Present value adjustment (CDI + 2.75%) (14,704) - 14,704 - - -Original amount - present value 439,451 - 14,704 454,155 - 454,155Provision for lawsuits (a) (320,470) (60,747) - (381,217) (6,719) (387,936)Balance of deferred purchase price portion 118,981 (60,747) 14,704 72,938 (6,719) 66,219


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24. Equity

a) Issued capital

At June 30, 2021, the Company's subscribed and paid-up capital amounted toR$ 5,808,609, comprising 615,242,127 registered common shares without par value (atDecember 31, 2020, the Company's subscribed and paid-up capital amounted toR$ 5,646,453, comprising 609,787,507 registered common shares with no par value).

At the Board of Directors Meeting held on April 19, 2021, the Company approved the capitalincrease of R$ 162,156, through subscription of 5,454,620 new registered, structuralcommon shares without par value, due to the exercise of stock options under theCompany's Stock Option Plans, being:

Group I - 64,187 common shares, each with a par value of R$ 9.271490Group II - 1,592,927 common shares, each with a par value of R$ 16.50Group III - 26,667 common shares, each with a par value of R$ 23.94Group VI - 2,306,009 common shares, each with a par value of R$ 32.25Group V - 50,834 common shares, each with a par value of R$ 33.50Group VI - 1,413,996 common shares, each with a par value of R$ 41.42

Shareholding at June 30, 2021 is as follows: (i) Alkes II holds 11.29% of shares, representedby 68,818,754 common shares, (ii) management holds 3.76% of shares, representedby 23,127,519 common shares, and (iii) the other shareholders hold 85.05% of shares,represented by 523,295,854 common shares.

b) Transaction cost

Transaction costs borne by the Company incurred in the funding through the public offeringof shares totaled R$ 113,913 at June 30, 2021 and were recognized as a capital reduction,in a separate account in equity, in accordance with CVM Ruling 649/10 and CPC 08 (R1).

c) Income reserves

(i) Legal reserve - mandatory, with the allocation of 5% of profit for the year, lessaccumulated losses, until it reaches 20% of capital.

(ii) Statutory reserve – in accordance with the current Bylaws, the Company, after theallocation of the legal reserve, will allocate to the investment reserve, which summedup with the other profit reserves will not exceed the subscribed capital. The purpose ofthis reserve is to ensure funds to finance additional investments of fixed and workingcapital and the expansion of the Company's activities, irrespective of whether or notthey are covered by the capital budget, duly approved by meeting.

d) Repurchase of shares

From January 14 to 24, 2020, through its indirect subsidiary Hospital IntermédicaJacarepaguá Ltda. (Jacarepaguá), the Company purchased 3,365,870 Parent Companyshares in the amount of R$ 245,122.

On February 7, 2020, Jacarepaguá assigned 3,365,870 shares as part of the payment forthe acquisition of the Clinipam Group. The Company's commitment was to deliver a fixed


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amount in shares. The share price used for closing was R$ 72.00 and the transactionamount was R$ 242,343.

The variation between the purchase price on the repurchase and the transfer of shares wasR$ 2,779 presented in line item “premium on the sale of equity interest”.

e) Dividends paid and proposed

At June 30, 2021, the Company did not pay dividends and interest on equity (IOE).

25. Net operating revenue

26. Cost of services rendered

¹ Refers to cost of events known and claims reported and costs not related to the Operator's healthcare plan.

27. Operating expenses

a. Administrative expenses

ConsolidatedQuarter ended in Period ended in

June 30, June 30,2021 2020 2021 2020

Effective considerations of healthcare plan operations 3,013,536 2,604,189 5,797,773 5,054,383Medical-hospital services 270,030 96,602 477,870 303,233Other services rendered - 23 - 50(-) Expected disallowance loss of medical-hospital services 1,106 (3,654) (2,134) (6,192)Changes in technical reserves of Operator’s healthcare plan operations 51 (4) 225 (75)Revenues from services rendered 3,284,723 2,697,156 6,273,734 5,351,399

(-) Direct taxes on Operator's healthcare plan operations (64,897) (80,560) (133,657) (156,614)(-) Direct taxes on medical-hospital services (23,513) (12,518) (40,137) (31,261)Tax on services rendered (88,410) (93,078) (173,794) (187,875)

Net revenues from services rendered 3,196,313 2,604,078 6,099,940 5,163,524

ConsolidatedQuarter ended in Period ended in

June 30, June 30,2021 2020 2021 2020

Cost of services rendered¹ (2,715,401) (1,702,558) (5,046,780) (3,522,360)(-) Co-participation 72,888 40,875 129,458 92,273SUS (4,279) 393 (19,048) (47,128)Depreciation and amortization (40,855) (49,629) (79,174) (53,235)Depreciation of right of use (14,671) (10,719) (26,147) (21,500)Changes in the Incurred But Not Reported Reserve (IBNR) (8,524) (6,826) (49,992) (20,281)

(2,710,842) (1,728,464) (5,091,683) (3,572,231)

Quarter ended Period ended in Quarter ended Quarter endedJune 30, June 30, June 30, June 30,

2021 2020 2021 2020 2021 2020 2021 2020Personnel (786) (468) (1,266) (774) (120,748) (127,580) (234,022) (232,603)Third-party services (2,791) (259) (12,483) (2,222) (63,168) (72,067) (125,282) (129,829)Location and operation (62) (49) (138) (113) (23,380) (9,946) (43,112) (26,809)Taxes (38) - (859) (50) (1,568) (3,840) (3,788) (6,187)Publicity and advertising - - (469) (414) (4,912) (5,474) (8,125) (9,242)Provision for contingencies - - - - (3,920) (4,649) (49,095) (10,624)Depreciation and amortization - - - - (29,327) (48,489) (64,223) (77,526)Charges, fees, fines and interest (13) - (25) (88) (1,320) (922) (2,230) (2,264)Share-based payment plan (4,570) (12,570) (16,664) (23,495) (4,570) (12,570) (16,664) (23,495)Depreciation of right of use - - - - (4,736) (3,730) (9,590) (7,395)Others - - - - 1,909 (2,879) (682) (12,013)

(8,260) (13,346) (31,904) (27,156) (255,740) (292,146) (556,813) (537,987)

Parent Consolidated


65

b. Selling expenses

c. Impairment of receivables

28. Finance income (costs)

¹ The amount of R$ 1,303 in the parent company and R$ 3,646 in the consolidated refers to short-term investmentsincome with a corresponding entry in cash and cash equivalents, and the amount R$ 48,308 refers to financialinvestments presented in Note 6.

² This balance refers to the finance cost arising from the inflation adjustment of the deferred purchase price portion(see Note 23).

29. Share-based payment plan

1st Share-based payment plan

On October 16, 2014, the Special General Meeting (SGM) approved the creation and regulationof the first Stock Option Plan of the Company, currently Notre Dame Intermédica ParticipaçõesS.A. (Stock Option Plan). It also approved the creation of the Company's authorized capital of99,185,196 new common shares which, with the reverse split of common shares approved at

Quarter ended Period ended inJune 30, June 30,

2021 2020 2021 2020Compensation - own personnel (1,882) (2,803) (3,727) (5,233)Recognition of deferred selling expenses (85,276) (70,561) (167,636) (140,566)Commissions and selling (88,093) (57,006) (162,332) (114,672)

(175,251) (130,370) (333,695) (260,471)

Consolidated

Quarter ended Period ended inJune 30, June 30,

2021 2020 2021 2020Reversal/Recognition of impairment of receivables (4,259) (10,849) 921 (14,138)Write-off of effective losses of plan related credits in the period (27,900) (22,017) (54,250) (40,501)Other losses related and not related to the plan 4 (174) (1,094) (586)- -

(32,155) (33,040) (54,423) (55,225)

Consolidated

Parent ConsolidatedQuarter ended Period ended in Quarter ended Period ended in

June 30, June 30, June 30, June 30,2021 2020 2021 2020 2021 2020 2021 2020

Financial investments income¹ 940 585 1,303 1,463 32,875 15,490 51,955 42,120Interest received - - - - 10,111 8,863 18,211 18,548Monetary adjustment gain 2,003 (449) 4,315 1,078 11,549 2,299 20,650 10,887Other income - - - - 2,807 2,025 2,945 3,282Derivative financial instruments - NDF - - - - - 4,195 2,066 4,195Fair value adjustment - - - - 3,528 (25) 5,995 (79)Foreign exchange gains - - - - (4) 56 - 513Discounts obtained 7 - 7 - 720 576 2,469 1,205

2,950 136 5,625 2,541 61,586 33,479 104,291 80,671

Interest on debentures - - - - (30,277) (10,657) (53,971) (26,086)Finance costs debentures - - - - (823) (346) (1,723) (10,418)Monetary adjustment loss - - - - (24,804) (13,446) (42,385) (29,428)Fines and interest - - (9) (9) (2,071) (715) (2,846) (1,537)Foreign exchange losses - - - - - (138) - (890)Bank fees (1) - (12) (1) (21,881) (3,653) (9,318) (7,718)Fair value adjustment - - - - - - (25,640) -Discounts granted - - - 2 (2,907) (1,580) (4,965) (2,590)Interest on borrowings - - - - (17,987) (9,455) (31,651) (14,189)Present value adjustment - - - - (3,628) (4,377) (7,946) (7,567)Present value adjustment - deferred portion² - - - - - - - (14,707)Interest on leases - - - (14,707) (16,003) (11,552) (28,340) (22,732)Borrowing costs - - - (676) - (1,313) -Derivative financial instruments - NDF - Non-Deliverable Forward - - - - (8,375) - (9,227) -Other costs (137) (6,286) (262) (134) (944) (6,792) (3,695) (4,804)

(138) (6,286) (283) (14,849) (130,376) (62,711) (223,020) (142,666)

Finance income (costs), net 2,812 (6,150) 5,342 (12,308) (68,790) (29,232) (118,729) (61,995)


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the Special General Meeting held on March 27, 2018, are equivalent to 46,214,801 newcommon shares (a factor of 2.14617813 for each common share). Therefore, the Board ofDirectors was authorized to increase Company's capital regardless of amendments to bylaws,limited to authorized capital to cover the granting of the Plan, pursuant to paragraph 8 of Article5 of the Company’s Bylaws.

The Company granted 45,345,999 stock options, considering the reverse split mentioned, forthe first Stock Option Program, which is distributed in Time-Vesting (representing 50% of sharesgranted) and Performance-Vesting (representing 50% of options granted). The beneficiary mustcomply with time-vesting of services for 3 to 5 years, depending on the grant agreement, andperformance-vesting (representing 50% of options granted), as well as a liquidity event such asIPO in April 2018, to exercise the options. After compliance with vesting conditions, the exerciseof the options could occur from the date of each anniversary of the grant.

On December 27, 2018, most participants exercised vested options and the Company, asauthorized by Article 5, paragraph 8, of Company’s Bylaws, increased capital within the limit ofthe authorized capital, in the amount of R$ 75,809, through the subscription of new commonshares, all registered, book-entry and with no par value, totaling 28,502,586 shares.

At June 30, 2021, all beneficiaries had exercised their options.

2nd Share-based payment plan

On February 20, 2018, the Company’s shareholders, gathered in a Special General Meeting(SGM) approved the Company’s Second Stock Option Plan, intended to grant stock options todirectors, board members, employees, consultants and individual advisors, current and future,of the Company or its subsidiaries that are chosen at the sole discretion of the Board ofDirectors. The Second Stock Option Plan establishes the limit of 11,498,002 options (5,357,431,considering reverse split of 2.14617813 for each common shares as approved at the SpecialGeneral Meeting held on March 27, 2018) representing a total maximum dilution of 1.15% to theCompany’s shareholders, considering the Company’s total capital at December 31, 2017.

As of April 20, 2018, the Company entered into a grant agreement with the Second PlanParticipants for a total of 4,988,581 stock options at the price of the Initial Public Offering.

The options under the Second Option Plan may be exercised according to the criteriaestablished by the Company’s Board of Directors based on the time (time-vesting) up to 3 yearsand performance (vesting per performance) stipulated in the Grant Agreements.

At June 30, 2021, all beneficiaries had exercised their options.

3rd Share-based payment plan

On March 28, 2019, the Company’s shareholders, gathered in a Special General Meeting (SGM)approved the Company’s Third Stock Option Plan, intended to grant stock options to directors,board members, employees, consultants and individual advisors, current and future, of theCompany or its subsidiaries that are chosen at the sole discretion of the Board of Directors. TheCompany entered into a grant agreement with the Third Plan Participants for a total of 7,334,301stock options, distributed into Time-Vesting (50% of granted shares) and Performance-Vesting(50% of granted options). The beneficiary shall comply with the time-vesting of 3 to 5 years oftime of service, depending on the grant contract, and with the performance-vesting(representing 50% of granted options).


67

On October 2, 2019, most participants exercised the stock options that were vested, and theCompany (I) in accordance with the provisions of the Company’s Bylaws, in its Article 5,paragraph 8, increased the capital, within the limit of authorized capital, in the amount ofR$ 55,308, through the subscription of common shares, all of them registered, book-entry andwith no par value, totaling 9,909,392 shares.

3rd Share-based payment plan Amended – 2020

On March 25, 2020, the Company’s shareholders, gathered in a Special General Meeting (SGM)amended the Company’s Third Stock Option Plan, intended to grant stock options to directors,board members, employees, consultants and individual advisors, current and future, of theCompany or its subsidiaries that are chosen at the sole discretion of the Board of Directors.

Each option of the Third Stock Option Plan will grant the right to acquire one share issued bythe Company. The Third Stock Option Plan provides the global limit of 12,000,000 shares issuedby the Company.

On April 2, 2020, management granted 4,360,000 new stock options to the executives selectedunder the program, of which 118,000 stock options were cancelled and 4,242,000 are still valid.In accordance with Accounting Pronouncement CPC 10 (R1), the Company engagedindependent consultants to prepare this Report on fair value estimate of the Company's stockoptions at the above-mentioned grant date, aiming at providing assistance to management inthe accounting recognition of options, using the binominal pricing model. Stock options haveannual vesting, with 50% depending on the passage of time and 50% depending on theachievement of certain performance metrics over the next 3 years.

Restricted Stock Units payment plan

On December 15, 2017, through the First Amendment to the Restricted Stock Option, theCompany established the immediate settlement of all the Restricted Stock Units (anticipatingthe vesting of the remaining 2/3 (two thirds), and changed the method of payment of the benefitby settling all Restricted Stock Units in cash (instead of the delivery of common shares of theCompany’s issue, as originally established in the Restricted Stock Unit Agreement).Consequently, the Company considered that all the 4,659,445 Restricted Stock Units werevested and the Executive was paid the amount of R$ 43,200, from the capital reserve, equivalentto the amount of 4,659,445 of Restricted Stock Units vested, which corresponded to 4,659,445of common shares issued by the Company at the price per share of R$ 9.27.

Concurrently with the settlement in cash, the Executive subscribed and paid up capital at theCompany in an amount equivalent to the settlement of the shares – R$ 43,200, through theissue of 4,659,445 common shares. The parties entered into a contract that granted theCompany the right to repurchase part of these paid-up shares, in the proportion equivalent to 2/3of the Restricted Stock Units that were vested in advance at the moment of the advance andsettlement in cash of the Restricted Stock Units originally granted to the executive. This calloption varies over time, from 2/3 (two thirds) to zero, following the same period (vesting period)that was originally described in the Restricted Stock Unit Agreement signed by and between theCompany and the Executive. Consequently, the Executive cannot sell any of the shares thatwere not fully vested at the moment of the advance and immediate settlement of all theRestricted Stock Units.

In the six-month period ended June 30, 2021, the recorded amount of R$ 16,664 (R$ 23,495 atJune 30, 2020) refers to the transaction cost incurred as a result of the Share-based Paymentplan.


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30. Earnings per share

The basic earnings per share are calculated by dividing earnings (loss) for the period endedJune 30, 2021 attributable to common shareholders of the Company by the weighted averagenumber of common shares outstanding during the period.

Diluted earnings per share is calculated by dividing result for the year attributable to commonshareholders by the weighted average number of common shares available in the period plusthe weighted average number of common shares that would be issued on the conversion of allpotentially dilutive common shares.

a) Basic earnings per share

b) Diluted earnings per share

Due to the fact that the Company had a loss for the period ended June 30, 2021, stockoptions were not considered in the calculation as there was no dilutive effect in this case.

Consolidated

2021 2020 2021 2020

(Loss)/Profit for the period (75,908) 383,990 (75,880) 383,795

Number of outstanding shares (-) Treasury shares 614,934 603,385 614,934 603,385Earnings per share (0.1234) 0.6364 (0.1234) 0.6361

Weighted average number of shares during the period 607,276 603,081 607,276 603,081Basic earnings per share (0.1250) 0.6367 (0.1250) 0.6364

ParentJune 30, June 30,


2021 2020 2021 2020

(Loss)/Profit for the period (75,908) 383,990 (75,880) 383,795Weighted average number of shares during the period 607,276 603,081 607,276 603,081Increase in the number of shares under the share-basedpayment plan, if all options granted are exercised. - 14,833 - 14,833Weighted average number of shares during plans - diluted 607,276 617,914 607,276 617,914

Diluted earnings per share (0.1250) 0.6214 (0.1250) 0.6211


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31. Operating segments

The Company and its subsidiaries, for the purpose of calculating the recoverable amount of assets, divided their activities into CGU Health (whichcomprises Health Southeast and Health South) and CGU Dentalcare. The following table shows the statement of profit or loss per Health and Dentalcare segments:

Amounts allocated to other segments in line item “Administrative expenses” refer basically to the recognition of stock option plan expenses.

2021 2020

Health Dental Health Dental

Net operating revenue 5,934,200 165,740 6,099,940 5,012,231 151,293 - 5,163,524Cost of services rendered (5,051,076) (40,607) (5,091,683) (3,539,734) (32,497) - (3,572,231)Gross profit 883,124 125,133 - 1,008,257 1,472,497 118,796 - 1,591,293Administrative expenses (495,120) (27,912) (33,781) (556,813) (476,852) (32,310) (28,825) (537,987)Selling expenses (322,521) (11,175) - (333,695) (250,637) (9,834) - (260,471)Impairment of receivables (52,593) (1,830) - (54,423) (54,851) (374) - (55,225)Other income (expenses), net 8,564 286 4,498 13,347 (4,210) 440 - (3,770)Profit (loss) before finance income (costs) and taxes 21,454 84,502 (29,283) 76,673 685,947 76,718 (28,825) 733,840Finance income (costs) (123,130) 11 4,390 (118,729) (48,208) 85 (13,872) (61,995)(Loss)/Profit before taxes (101,676) 84,513 (24,893) (42,056) 637,739 76,803 (42,697) 671,845Income tax and social contribution (36,716) 3,366 (474) (33,824) (290,806) 3,246 (490) (288,050)(Loss)/Profit for the period (138,392) 87,879 (25,366) (75,880) 346,933 80,049 (43,187) 383,795Noncontrolling interests 28 - - 28 - - - -(Loss)/Profit for the period (138,364) 87,879 (25,366) (75,908) 346,933 80,049 (43,187) 383,795

Other segments ConsolidatedOther

segments Consolidated

June 30,


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2021 2020

Health Dental Consolidated Health Dental ConsolidatedKnown or reported events (5,008,663) (41,267) (5,049,930) (3,487,953) (34,407) (3,522,360)(-) Co-participation 128,362 1,095 129,457 90,445 1,828 92,273SUS (19,048) - (19,048) (47,128) - (47,128)Depreciation and amortization (19,644) - (19,644) (53,235) - (53,235)Depreciation of right of use (59,394) - (59,394) (21,500) - (21,500)Changes in the Incurred But Not Reported Reserve(IBNR) (72,690) (434) (73,124) (20,363) 82 (20,281)

(5,051,077) (40,606) (5,091,683) (3,539,734) (32,497) (3,572,231)

June 30,


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32. Related parties

Parent company

On March 22, 2014, Bain Capital Brazil Participações S.A. (company merged into Intermédica,Interodonto and Notre Dame in November 2014) entered into a share purchase and saleagreement and other covenants with the sellers of Holdings PSBB2 and PSBB3 (companiesmerged into Bain Capital Brazil Participações S.A. in September 2014) and its subsidiariesIntermédica, Interodonto and Notre Dame Seguradora. As provided for in the agreement, thesellers undertake to indemnify the buyer Notre Dame Intermédica Participações S.A. for thecontingencies incurred and disbursed that were not reflected in the initial transaction.

The Company signed a private instrument of transfer of indemnity with Notre Dame Intermédica,undertaking to indemnify Notre Dame Intermédica for disbursements arising from lawsuits thatare the responsibility of the Company. The indemnity shall be paid within 6 years and 30 daysfrom the date the share purchase and sale agreement and other covenants was signed. Theamount recorded in line item “Other current liabilities” at June 30, 2021 is R$ 398,488(R$ 391,769 at December 31, 2020).

The Company has stock option plans. In the six-month period ended June 30, 2021, expensesrelated to key management personnel recognized in profit or loss amounted to R$ 16,664(R$ 23,495 at June 30, 2020).

Consolidated

The compensation of the subsidiaries’ key management personnel, comprising employees withauthority and responsibility for planning, directing and controlling the activities, comprisescompensation and short-term bonuses, and the amount recorded in the six-month period endedJune 30, 2021 was R$ 8,091 (R$ 73,039 at June 30, 2020).

The variable compensation through stock options is not included in the global compensationapproved in the meeting.

33. Commitments

The Company and subsidiaries have real estate lease, consultancy and maintenanceagreements that do not have requirements to be accounted for on an accrual basis until theybecome effective; in addition, these agreements are not included in the requirements of IFRS 16.

34. Insurance coverage

The Company and its subsidiaries’ policy regarding insurance takes into consideration,primarily, the concentration of risks and their materiality. Insurance is taken out at amountsdeemed sufficient by management, considering the nature of the Company’s activities.

Consolidated


2020Up to one year 100,555 114,305More than one year and less than five years 376,310 457,195More than five years 100,555 114,298

577,420 685,798


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35. Additional information

(i) Intention to purchase and sell CCG Participações shares

On June 4, 2021, the subsidiary BCBF Participações S.A. (BCBF) has entered into a sharepurchase and sale agreement under suspensive conditions and other covenants for theacquisition of CCG Participações S.A. (“Centro Clínico Gaúcho”), a verticalized operator thatoffers healthcare plans, dental plans and health services in the State of Rio Grande do Sul.

With the conclusion of the transaction, BCBF will become the holder of 100% of the shares ofCentro Clínico Gaúcho. The transaction amount was set at R$1.06 billion and will be paid incash, discounted of net debt and with a portion being withheld for contingencies.

The completion of the transaction is subject to compliance with certain conditions precedent,including the approvals of ANS and CADE.

The transaction will not be subject and, therefore, will not be submitted to the approval of itsshareholders, as provided for in article 256 of Law 6404/76, nor will it give rise, under the termsof the Circular Letter/CVM/SEP/03/2019, the right to withdraw for its shareholders, consideringthat the transaction was carried out through the subsidiary BCBF.

(ii) Business combination between GNDI and Hapvida – ANS approval

The Company, in compliance with the current rules and in continuity with the material factsdisclosed on February 27 and March 29, 2021, reports that ANS has granted the request forauthorization to assume the indirect corporate control of the healthcare plan operators NotreDame Intermédica Saúde S.A., Mediplan Assistencial Ltda., SMV Serviços Médicos Ltda.,Climepe Total Ltda., Lifeday Planos de Saúde Ltda., São Lucas Saúde S.A. and ClinipamClínica Paranaense de Assistência Médica Ltda. by Hapvida Participações e Investimentos IIS.A., directly controlled by Hapvida Participações e Investimentos S.A. (Hapvida).

The completion of the business combination operation with Hapvida is subject to analysis andapproval by CADE.

(iii) Previ-Rio - Adhesion

Items Type of coverage Insured amount

Buildings, facilities, machinery,furniture, fixtures and inventories

Fire (including due to riots, strikes and lock-out)Thunderbolts. Explosion of any kind and falling aircrafts,electrical damage, equipment leased and assigned to thirdparties, RD, mobile and fixed equipment, fall of glass, fixedexpenses (6 months), losses/rent payments (6 months),qualified theft/robbery of goods, windstorm, impact ofvehicles up to smoke, collapse, electronic equipment,portable objects (national territory), theft of medicines.

668,802

D&O Civil liability - officers, managers and directors 160,000Civil liability Civil liability - operations 255,000

Vehicle fleet Comprehensive, property damage, bodily injury, mobileequipment

100% FIPE table per vehicle

Employees Group life insurance Variable according to salary range and maximum limit -R$ 48,132

Guarantee insurance Insurance on contracts with customers R$ 270,181


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On June 24, 2021, the approval of the accreditation of Notre Dame Intermédica Saúde S.A.(Company’s indirect subsidiary) by the Institute of Social Security and Assistance of theMunicipality of Rio de Janeiro (Previ-Rio) was published in the Official Gazette of Rio de Janeiro,for the provision of health and dental care services of the Municipal Government Employee(PSSM), as a result of the Public Call process, expected to become effective on August 1, 2021.

36. Events after the reporting period

(i) Conclusion of the purchase and sell shares of Hospital e Maternidade MaringáS.A.

On June 11, 2021, the subsidiary BCBF Participações S.A. (BCBF) entered into a sharepurchase and sale agreement and other covenants for the acquisition of Hospital e MaternidadeMaringá S.A. (Hospital Maringá), established in the city of Maringá, in the State of Paraná,characterized for being a hospital of high complexity.

With the conclusion of the transaction, BCBF will become the holder of 100% of the shares ofHospital Maringá. The purchase price of up to R$ 92.0 million will be paid (i) in cash, at theclosing date, deducting the net debt, (ii) part in two years, subject to the achievement of certainoperational goals, and (iii) one portion withheld for six years for any contingencies.

The completion of the transaction is subject to certain conditions precedent but is not subject toprior approval of the Brazilian Regulatory Agency for Private Health Insurance and Plans (ANS)or of the Brazilian Antitrust Authority (CADE).

All the conditions precedent were achieved on July 16, 2021, when the instrument of closing ofthe acquisition was formalized. The final purchase price was R$ 70 million.

(ii) Payment of 2020 dividends

On April 26, 2021, at a Special General Meeting, the Company distributed to its shareholders,as minimum mandatory dividends, the amount of R$ 174,845, equivalent to 25% of theCompany's profit for the year ended December 31, 2020, corresponding to R$ 0.28433085 pershare issued by the Company. The payment was made in local currency on July 14, 2021.

(iii) Adjustment of Individual Healthcare Plans

On July 8, 2021, ANS informed a price adjustment to individual healthcare plans with a negativepercentage of -8.19%, which should be applied as from the contract's anniversary. TheCompany and its subsidiaries are assessing the impacts of this adjustment.

(iv) Intention to purchase and sell shares and other covenants of Casa de Saúde eMaternidade Santa Martha S.A.

On July 30, 2021, the subsidiary Notre Dame Intermédica Saúde S.A. entered into a sharepurchase and sale agreement and other covenants for the acquisition of Casa de Saúde eMaternidade Santa Martha S.A.

The Company will indirectly hold all the shares of Hospital Santa Martha. The purchase pricewill be paid in cash, deducting the net debt and a portion withheld for contingencies.


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The completion of the transaction is subject to compliance with certain conditions precedent,including the approvals of the Brazilian Regulatory Agency for Private Health Insurance andPlans (ANS) and of the Brazilian Antitrust Authority (CADE).

The transaction is not subject and, therefore, will not be submitted to the approval of itsshareholders, as provided for in article 256 of Law 6404/76, nor will it give rise, under the termsof the Circular Letter/CVM/SEP/03/2019, to the right to withdraw for its shareholders,considering that the transaction was carried out by the subsidiary Notre Dame IntermédicaSaúde S.A.

(v) Conclusion of the purchase and sell Serpram Group shares.

On October 26, 2020, continuing its expansion plan, the Company, through its subsidiary NotreDame Intermédica Saúde S.A., entered into a share purchase and sale agreement and othercovenants in the amount of R$ 170,000 for the acquisition of the Serpram Group, whichcomprises two hospitals, IMESA - Instituto de Medicina Especializada Alfenas S.A. and HospitalVarginha S.A., and a healthcare operator, Serpram - Serviço de Prestação de AssistênciaMédico - Hospitalar S.A., with operations in the State of Minas Gerais.

On December 11, 2020, ANS approved the acquisition of Serpram Group, through Official LetterNo. 145/2020/ASSNT-DIOPE/DIRAD-DIOPE/DIOPE.

On July 7, 2021, the Brazilian Antitrust Authority (CADE) approved, through merger reviewprocess No. 08700.006195/2020-78, the acquisition of the Serpram Group, without restrictions.

On August 4, 2021, the acquisition of Serpram Group was completed.

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Documents

Individual and Consolidated Interim Financial Information