XML 45 R18.htm IDEA: XBRL DOCUMENT v3.25.1
Intangible assets
 12 Months Ended
Dec. 31, 2024
Intangible Assets  
Intangible assets

 

11Intangible assets

 

                     
  Goodwill Licenses with indefinite useful life Trademark Customer relationships Software Education content Developed technology Educational platform Software in progress Other Total
                       
Cost                      
As of January 1, 2022 1,184,336 2,165,406 133,369 431,277 21,759 17,305 34,397 76,444 28,847 - 4,093,140
Additions 39,100 24,408 - 80 1,423 11,231 32,879 14,761 26,141 - 150,023
Write-off (i) - - (22) - (381) (7) - (9) (28) - (447)
Remeasurement (8,637) - - - - - - - - - (8,637)
Transfer - - (2,472) 530 20,466 38,433 17,953 (35,499) (40,226) - (815)
Business combinations 42,246 - 51,185 3,929 33 2,627 5,520 - - 1,055 106,595
As of December 31, 2022 1,257,045 2,189,814 182,060 435,816 43,300 69,589 90,749 55,697 14,734 1,055 4,339,859
Additions - - - - 1,314 9,827 37,712 23,164 27,976 - 99,993
Business combination 75,098 586,263 - 142,451 63 - - - - - 803,875
Write-off (i) - - - - (2,235) - - (911) (125) - (3,271)
Remeasurement 2,556 - - - - - - - - - 2,556
Transfer - - - - 28,708 4,785 16 (3,058) (30,451) - -
As of December 31, 2023 1,334,699 2,776,077 182,060 578,267 71,150 84,201 128,477 74,892 12,134 1,055 5,243,012
Additions (ii) - 157,227 - - 1,511 17,701 14,092 30,255 34,905 - 255,691
Business combination 192,034 427,482 - 34,560 - - - - - - 654,076
Write-off (i) - - - - - (162) (117) - (1) - (280)
Transfer - - - - 23,292 6,529 (39,929) 29,673 (19,565) - -
As of December 31, 2024 1,526,733 3,360,786 182,060 612,827 95,953 108,269 102,523 134,820 27,473 1,055 6,152,499
                       
Amortization                      
As of January 1, 2022 - - (8,529) (142,270) (12,699) (16,672) (657) (11,478) - - (192,305)
Amortization - - (6,426) (70,093) (4,943) (9,634) (9,436) (5,874) - (79) (106,485)
Write-off (i) - - - - 365 57 - - - - 422
Transfer - - - - - (313) - 313 - - -
As of December 31, 2022 - - (14,955) (212,363) (17,277) (26,562) (10,093) (17,039) - (79) (298,368)
Amortization - - (11,083) (89,584) (8,764) (15,668) (21,504) (4,778) - (105) (151,486)
Write-off (i) - - - - 1,947 - - 911 - - 2,858
Transfer - - - - - - (6) 6 - - -
As of December 31, 2023 - - (26,038) (301,947) (24,094) (42,230) (31,603) (20,900) - (184) (446,996)
Amortization - - (12,506) (82,737) (16,457) (18,471) (20,086) (22,387) - (106) (172,750)
Write-off (i) - - - - - 1 35 - - - 36
Transfer - - - - (1,207) - 9,019 (7,812) - - -
As of December 31, 2024 - - (38,544) (384,684) (41,758) (60,700) (42,635) (51,099) - (290) (619,710)
                       
Net book value                      
As of December 31, 2024 1,526,733 3,360,786 143,516 228,143 54,195 47,569 59,888 83,721 27,473 765 5,532,789
As of December 31, 2023 1,334,699 2,776,077 156,022 276,320 47,056 41,971 96,874 53,992 12,134 871 4,796,016
(i)Refers to intangible assets written-off as result of lack of expectation of future use.
(ii)On January 24, 2024, MEC authorized the increase of 40 medical school seats of FIP Guanambi, which resulted in an additional payment of R$49,600. Additionally, on July 12, 2024, MEC authorized the increase of 80 medical school seats of UNIMA, which resulted in an additional payment of R$107,627.

 

Impairment testing of goodwill and intangible assets with indefinite lives

 

Licenses with indefinite useful life include intangible assets acquired through business combinations. The licenses for medicine and other courses granted by MEC to the companies acquired have no expiration date and the Company has determined that these assets have indefinite useful lives.

 

For impairment testing goodwill and licenses with indefinite useful lives acquired through business combinations are allocated to the respective CGUs.

 

The Company performed its annual impairment test on December 31, 2024 and 2023. There was no impairment for goodwill and licenses with indefinite useful lives for the years then ended. The Company tests at least annually the recoverability of the carrying amount of goodwill and licenses with indefinite useful lives for each CGU. The Company determines the recoverable amount of its CGUs based on the value-in-use. Estimating these values involves the use of assumptions, judgments and estimates of future cash flows that represent the Company's best estimate.

 

The carrying amounts of goodwill and licenses with indefinite useful life by CGU and their carrying amounts as of December 31, 2024 and 2023 were as follows:

 

           
  Carrying amount
  Goodwill Licenses with indefinite useful life CGU
  2024 2023 2024 2023 2024 2023
IPTAN 17,446 17,446 57,214 57,214 122,599 125,974
IESVAP 27,956 27,956 81,366 81,366 126,195 126,996
CCSI 4,664 4,664 56,737 56,737 60,377 54,550
IESP 73,838 73,838 179,693 179,693 322,900 332,104
FADEP 49,661 49,661 70,606 70,606 141,201 148,032
FASA 58,903 58,903 144,507 144,507 341,020 322,061
IPEMED 87,647 87,647 - - 240,323 183,862
IPEC - - 108,000 108,000 168,174 157,984
UniRedentor 77,662 77,662 121,477 121,477 244,123 234,054
UniSL 4,420 4,420 273,795 273,795 386,889 401,143
FESAR 71,664 71,664 141,616 141,616 246,385 244,412
FCMPB 110,483 110,483 235,018 235,018 392,862 402,140
ITPAC Garanhuns - - 108,000 108,000 129,458 116,162
Content & Technology for medical education (Pillar 1) 179,830 179,830 - - 302,031 238,921
Practice Management Tools & Electronic Prescription (Pillar 3) (i) 136,583 136,583 - - 237,841 255,919
Clinical Decision Software (Pillar 2) 87,018 87,018 - - 134,946 147,897
Cliquefarma 6,588 6,588 - - 16,696 18,789
UnifipMoc 87,777 87,777 239,847 190,247 412,698 361,383
Unigranrio 169,173 169,173 421,538 421,538 819,682 833,665
Glic 8,288 8,288 - - 22,390 23,721
DelRey 75,098 75,098 693,890 586,263 929,307 854,313
Unidom 192,034 - 427,482 - 687,570 -
  1,526,733 1,334,699 3,360,786 2,776,077 6,485,667 5,584,082

 

(i)For the year ended December 31, 2024, RX PRO was included in Pillar 3. As a result, the prior period was revised for comparative purposes.

 

The main assumptions used by the Company to determine the value in use of the CGUs were:

 

·Student enrollment - refers to the number of students that are currently enrolled in each CGU. The growth of students enrolled considers maturation of operations, limited by regulatory seats approved for each CGU.
·Tuition fees - the monthly fee charged to students. Tuition fees are consistent with Management best expectations on prices charged and considers inflation for future periods.
·Occupancy rate - the occupancy rate of the medical schools is the ratio of the number of students effectively enrolled divided by the regulatory capacity in a given period.

 

·Regulatory capacity - the regulatory capacity is defined by the number of medical schools seats available per year awarded by MEC, multiplied by the number of years of operations since the seats were awarded.
·Faculty - refers to the cost with faculty in the CGU, which means the amount paid to teachers and doctors.
·Medical practice solutions revenues - refer to mobile app subscription, clinical management system, healthcare payments, medical imaging, online courses for digital content users and marketing for pharmaceutical industry. Business assumptions include management best expectations on long term targets for digital services segment operations, including total addressable market, market share and target prices including inflation.
·Capital expenditures - refers to investments to be made on intangible assets related to developments and platform improvements especially on the continuing education and medical practice solutions’ CGUs.
·Discount rates - discount rates represent the current market assessment of the risks specific to the CGU being tested. The pre-tax discount rate applied to cash flow projections is between 11.66% and 13.97% in 2024 (between 12.48% and 15.48% in 2023).
·Perpetuity growth rate - refers to growth rate considered by management on long term periods after the explicit projection period of five years. The growth rates range from 3.50% to 7.53% (3.50% to 7.80% in 2023).

 

Significant estimate: impact of possible changes in key assumptions

 

An increase of 25 basis points in management’s estimated discount rate applied to the cash flow projections of each CGU as of December 31, 2024, or a decrease of 25 basis points on estimated EBITDA would not have resulted in significant impacts on the impairment testing.

 

Other intangible assets

 

Intangible assets, other than goodwill and licenses with indefinite useful lives, are valued separately for each acquisition and are amortized during each useful life. The useful lives and methods of amortization of other intangibles are reviewed at each financial year end and adjusted prospectively, if appropriate.


The estimated useful lives of intangible assets are as follows:

 

 
Customer relationships - medicine 6 years
Customer relationships - other courses 4.5 years
Software license 5 years
Education content 3 years
Trademarks 2 - 30 years
Developed technology 5 years

 

For the years ended December 31, 2024, 2023 and 2022, there were no indicatives that the Company’s intangible assets with finite useful lives might be impaired.