Pet Retail Market and Valuation Outlook slide image

Pet Retail Market and Valuation Outlook

Appendix 35 Average Expenditure [BRL] Source: Company's Data; Team 7 *0 117 35. Optionalities: Verticalized Health Plan (C) In Brazil, only 91k animals have health insurance and we see this sub-segment with a high potential as the humanization of pets in the country increases. From this point of view, Petlove together with Porto Seguro has already positioned itself to achieve a comfortable position in this market, reaching 1.5% market share today. Based on our estimates, the market can reach BRL 3.8 bn in just 5 years. 20' 21E 22E 23E 24E 25E Pets in Brazil Health Plan Penetration [mn of pets] [%] 88 91 101 112 123 135 0.1% 0.3% 0.5% 0.8% 1.1% 1.5% Pets w/ Health Plan [mn of pets] 0.1 0.3 0.5 0.9 1.4 2.0 Average Spending per Health Plan [BRL] 1,500 1,635 1,717 1,768 1,821 1,876 Brazilian Health Plan Market [BRL mn] 137 446 867 1,584 2,464 3,799 Health Plan Penetration [%] 0.1% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 500 46 91 182 273 364 455 546 637 728 819 910 700 64 127 255 382 510 637 764 892 1,019 1,147 1,274 900 82 164 328 491 655 819 983 1,147 1,310 1,474 1,638 1,100 100 200 400 601 801 1,001 1,201 1,300 118 237 473 710 946 1,183 1,500 137 273 546 819 1,092 1,365 1,700 155 309 619 928 1,238 1,900 173 346 692 1,037 1,383 2,100 191 382 764 1,147 1,529 1,401 1,602 1,802 2,002 1,420 1,656 1,893 2,129 2,366 1,638 1,911 2,184 2,457 2,730 1,547 1,856 2,166 2,475 2,785 3,094 1,729 2,075 2,421 2,766 3,112 3,458 1,911 2,293 2,675 3,058 3,440 3,822 Gross Margin in Diagnostics VCA Animal Hospitals +50% +15% Gross Margin in Pet Hospital 2,300 209 419 837 1,256 1,674 2,093 2,512 2,930 3,349 3,767 4,186 2,500 228 455 910 1,365 1,820 2,275 2,730 3,185 3,640 4,095 4,550
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