1Q08 Results Conference Call Presentation
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1) Tempo Participacoes experienced a 34% increase in Adjusted EBITDA and a 25% increase in net revenues for the first quarter of 2008 compared to the same period in 2007. 2) The company's three business segments - healthcare administration, dental HMO, and assistance services - all saw increases in the number of beneficiaries and items, with fixed costs dilution contributing to higher adjusted EBITDA. 3) Financial and operating results for the first quarter did not include acquisitions completed at the end of 2007, which will further boost performance going forward.
1Q08 Results Conference Call Presentation
- 1. Earnings release 1Q08 May 16, 2008
- 3. Business segments Healthcare Administration Dental HMO Assistance Services Services Ranking: #4 Ranking: #1 Ranking: #1 Number of lives: 501 thousand Number of items: 18.6 million Number of lives: 1.3 million Underwriting of frequency risk Underwriting of frequency risk No underwriting risk. Fee business only. 3
- 4. Recent events Acquisition of Fleming Odontologia Assist-Card Joint Venture Approval for OdontoEmpresa transaction INFRAERO health contract 1Q08 results: Adjusted EBITDA +34% and Revenues + 25% Additional purchase of shares from current shareholders 4
- 6. Tempo experienced a 34% increase in Adjusted EBITDA and a 25% increase in net revenues for 1Q08 Net Revenues - Tempo Adjusted EBITDA - Tempo EBITDA margin - Tempo (R$ MM) (R$ MM) (% ) 5% . p. +2 % ,6 p 10,0% 0,6 p.p. ,0 34 0 9,0% 0,5 p.p. 8,0% 7,0% 0,4 p.p. 6,0% 13,4 160,1 5,0% 0,3 p.p. 8,4% 128,0 10,0 7,8% 4,0% 0,2 p.p. 3,0% 2,0% 0,1 p.p. 1,0% 0,0% 0,0 p.p. 1Q07 1Q08 1Q07 1Q08 1Q07 1Q08 Revenues: solid increase in number of beneficiaries/items for all three segments Adjusted EBITDA: fixed costs dilution Results presented above do not comprise the acquisitions made in the end of 2007 6
- 7. Health Adjusted EBITDA (R$ MM) Beneficiaries (in millions) % 5,9 +2 10,0 10% 7,0% 5,0% 9,0 0% 8,0 7,0 -10% % 6,0 97 1,34 5,0 -20% 4,0 1,06 6,7 -30% 3,0 2,0 3,4 -40% 1,0 0,0 -50% 1Q07 1Q08 mar/07 mar/08 Revenues (R$ MM) Adjusted EBITDA EBITDA margin 95,9 25,9% increase in number of beneficiaries ,6% 1 +4 67,8 41,6% increase in net revenues (including Med-Lar) EBITDA: nominal and marginal increase 1Q07 1Q08 7
- 8. Dental Adjusted EBITDA (R$ MM) Beneficiaries (in thousands) 501,1 403,1 3% 12 143,1 4,1 1,8 1Q07 1Q08 Gama odonto Pro-forma 1Q07 1Q08 Revenues R$ (MM) Information presented in this slide comprise the companies acquired in the end of 2007 3% 19 Organic and acquisition growth in number of beneficiaries 15,3 Sustainable EBITDA margin 5,2 Decrease in loss ratio 1Q07 1Q08 8
- 9. Assistance services Adjusted EBITDA Loss ratio curve 10,0 10,0% 50,4% 9,4% 9,0 50,4% 9,0% 8,8% 8,0 7,0 8,0% 6,0 14% 5,0 7,0% 4,0 6,0% 5,5 3,0 4,8 2,0 5,0% 47,1% 1,0 45,9% 0,0 4,0% 1Q07 1Q08 1Q07 2Q07 3Q07 4Q07 Adjusted EBITDA EBITDA margin Number of items (in millions) Higher loss ratios for 1Q and 4Q % + 7,3 Capture of synergies after integrating USS Potential increase in B2B2C sales 18,6 17,3 Assist Card Joint Venture mar/07 mar/08 9
- 10. Asset light operation Capex vs Adjusted EBITDA Pro-Forma (R$ mm) CAPEX compared to Adjusted EBITDA (R$ MM) 31% 55,0 11% 9% 8% 6% 37,6 30,2 14,0 13,4 5,1 4,3 4,0 2,5 0,8 2004 2005 2006 2007 mar/08 Adjuested EBITDA CAPEX % of Adj. EBITDA 10
- 11. Investors Relations Phone: +55 11 4208-8069 E-mail: ri@tempopar.com.br www.tempopar.com.br/ri