BALM3

Baumer S/A is a Brazilian publicly traded company, established in 1952, that has operated for decades in the medical devices and healthcare equipment sector. The company, now structured as a holding company, has its industrial headquarters in Mogi Mirim, in the interior of São Paulo, where it maintains a manufacturing complex with state-of-the-art technology and a specialized team. Throughout its history, Baumer has incorporated technologies, companies, and new products, expanding its scope of operations within the healthcare chain. The company’s shares, under the tickers BALM3 and BALM4, are traded on B3, reflecting its long-standing relationship with the capital markets, which began in 1970 when it went public and changed its name to Baumer Equipamento Médico Hospitalar S/A. In 1988, the structure was reorganized with the creation of the holding company Baumer S/A, responsible for the group’s strategic planning, financial control, and corporate development.

Baumer’s business model combines manufacturing, commerce, production, import, export, and services associated with medical and hospital equipment, also operating in the scientific and hospitality segments. The company operates domestically and internationally, focusing on medical devices aimed at healthcare service providers, such as hospitals, laboratories, private and public clinics, health insurers, and companies in the sector. In addition to the industrial core, the holding company centralizes functions such as corporate marketing, human resources policy, strategic planning, investment policy, and a development and research center that coordinates the group’s projects. This structure makes it possible to integrate everything from technological product development to technical assistance and after-sales, supporting the different business divisions.

The group’s operations are segmented mainly into two revenue fronts: capital goods in the form of medical-hospital equipment and capital goods in the form of implants. In 2024, consolidated net operating revenue reached R$ 194.4 million, with approximately 48% coming from the equipment business unit and 52% from the implants unit. In the orthopedic implants segment, Baumer operates with a broad line of conventional and non-conventional prostheses for hip, knee, shoulder, upper and lower limbs, as well as solutions for trauma and spine, including internal, external and intramedullary fixation, fixation and interbody devices, and products for neurosurgery. The company also develops biomaterials such as biphasic calcium phosphate ceramics and bone grafts for orthopedic and dental use, through the brands Genius (orthopedic biomaterials) and Dental (grafts and membranes), reinforcing its presence in higher value-added healthcare materials.

In the medical-hospital equipment segment, Baumer consolidated its operations through the Hospital Division, originating from the former Baumer Castanho, acquired in 1976, and Baumer Hospitalar Ltda, merged into Baumer S/A in 1996. This division is responsible for the production and commercialization of equipment and accessories for hospital, industrial and commercial laundries, as well as solutions for operating rooms, central sterile services departments, and transport. Among its products are general and specialty surgical tables, auxiliary furniture and accessories, surgical lights, anesthesia systems, and furniture for transport and storage. The sterilization and materials processing line includes sterilizers, drying ovens, steam generators, autoclaves, washer-disinfectors, ultrasonic washers, water treatment systems with reverse osmosis, and air purifiers, grouped under brands such as AVENXX and TRIAXX. MEDIXX complements the portfolio with preventive and corrective maintenance services, inspections, calibrations, and supply of spare parts for electromedical equipment, reinforcing the company’s presence in after-sales and clinical engineering.

Baumer organizes its operations into divisions and affiliated companies to serve different regions and market niches. The Orthopedics Division, located in Mogi Mirim, is structured into Prosthesis, Trauma, and Special Products areas, and stands out for its continuous investment in research and development, with around 5% of annual gross revenue allocated to this technological core. This division operates through agents distributed across all Brazilian states and in several countries, seeking to provide a swift response to both emergencies and scheduled procedures, including complex cases that require tumor endoprostheses or customized solutions. In Brazil, affiliates such as Comércio e Importação Erecta Ltda, in São Paulo, work exclusively in strategic areas of the state, while MEDIXX and STERIUM, both headquartered in Mogi Mirim, provide technical assistance and sterilization services for healthcare products, serving hospitals, hotels, and motels directly.

Baumer’s geographic presence combines a strong domestic footprint with international expansion. In 2024, the Brazilian market accounted for around 90% of net revenue, approximately R$ 174.9 million, while foreign sales represented 10%, around R$ 19.5 million. Exports are distributed mainly across Latin American countries such as Chile, Colombia, the Dominican Republic, Paraguay, Argentina, Bolivia, Ecuador, Nicaragua, Peru, and Guatemala, in addition to sales to Lebanon and other markets. Abroad, AM Internacional, based in Santiago, Chile since 1981, operates in importing, representation, exporting, and finishing products, managing commercial and service sectors in the country and coordinating a network of exclusive representatives throughout Chile. The company also holds quality certifications required by the United States and European markets, such as CE and FDA marks, which are essential to support its project to expand exports to different continents.

From an industrial standpoint, Baumer operates a facility with approximately 18 thousand square meters of built area in the industrial district of Mogi Mirim. The production process involves transforming raw materials such as steel and titanium through cutting, machining, milling, welding, heat and surface treatments, as well as assembly using components purchased on the market. The main inputs are steel profiles, tubes and plates, electrical materials, cast parts, and titanium. The supply policy is based on supplier evaluation, accreditation, certification, and monitoring, with a focus on long-term partnerships. In distribution, the company operates through representatives in all Brazilian states, which enables proximity to customers and faster service. There is no relevant demand concentration, as the company reports having no customers responsible for more than 10% of its total net revenue.

Baumer is subject to strict regulation given the nature of its healthcare products. In Brazil, the company and its affiliates are inspected and licensed by the competent authorities, keeping their facilities in good standing as of the reference form date. It is also subject to environmental legislation at the federal, state, and municipal levels, with oversight by public agencies that can impose sanctions in case of non-compliance. The company states that it seeks to carry out all activities in accordance with current environmental legislation, ensuring the obtainment of necessary licenses and permits and the proper treatment of industrial waste at its manufacturing complex. In foreign markets, Baumer must comply with specific regulations in each country, including international certification requirements such as CE and FDA for marketing medical devices. In terms of governance and corporate responsibility, the company maintains a code of ethics, revised in 2021, applicable to employees, suppliers, the commercial agents network, customers, shareholders, and other related parties, and states that it does not make contributions to political parties or candidates, although it does not yet publish a formal sustainability report, despite internally developing initiatives focused on job creation, study opportunities, gender equity, occupational health and safety, and conscious disposal and treatment of waste.

For investors following BALM3 and BALM4 shares on B3, Baumer presents itself as a healthcare company operating across equipment, implants, and technical services, exposed to the capital goods investment cycle and to the dynamics of public and private funding in the healthcare system. Its diversification across product lines, widespread national presence, and growing international footprint, especially in Latin America, make up the business profile described in its reference form, which also highlights the weight of medium- and long-term industrial operations and the importance of regulatory and environmental compliance for the continuity of the company’s activities.