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1 1Q08 Earnings Release Brasil Brokers announces its 1Q08 Results Rio de Janeiro, May 15 th 2008. Brasil Brokers Participações S.A. (Bovespa: BBRK3) a real estate brokerage and consulting firm, with a strong presence in Brazil’s major real estate markets, announces today its results for first quarter 2008. The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in Brazil (BR GAAP), pursuant to Brazilian Corporate Law and CVM regulations. 1Q08 Highlights Evolution of the share price from R$950.00 since its IPO on 10/29/2007 to R$1,225.01 on 03/31/2008, demonstrating the Company’s appreciation of 28.95%; Total of 11,360 Units Sold by its subsidiaries, representing Contracted Sales of R$2,404 million. In December 2007, the number of subsidiaries in operation was composed of 16 subsidiaries; at the end of March 2008, 23 subsidiaries which 20 were operational (as shown in the table on page 12). Sales Backlog Launches from its subsidiaries on 03/31/2008, through December 2009 is R$30.9 billion. 1Q08 Conference Call English May 16 th , 2008 01:00 PM (NY Time) 02:00 PM (Brasilia Time) Phone: +1 (973) 935-8893 Code: 44916012 Replay: +1 (706) 645-9291 Portuguese May 16 th , 2008 10:00 AM (NY Time) 11:00 AM (Brasilia Time) Phone: +55 (11) 2188-0188 Code: Brasil Brokers Replay: +55 (11) 2188-0188 IR Contact Álvaro Soares CFO and IRO Phone: +55 (21) 3433-9550 e-mail: [email protected] www.brbrokers.com.br/ir

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  • 1

    1Q08 Earnings Release

    Brasil Brokers announces its 1Q08 Results

    Rio de Janeiro, May 15th 2008. Brasil Brokers Participações S.A. (Bovespa: BBRK3) a real

    estate brokerage and consulting firm, with a strong presence in Brazil’s major real estate

    markets, announces today its results for first quarter 2008.

    The Company’s consolidated financial statements are prepared in accordance with generally

    accepted accounting principles in Brazil (BR GAAP), pursuant to Brazilian Corporate Law and CVM regulations.

    1Q08 Highlights

    Evolution of the share price from R$950.00 since

    its IPO on 10/29/2007 to R$1,225.01 on 03/31/2008,

    demonstrating the Company’s appreciation of

    28.95%;

    Total of 11,360 Units Sold by its subsidiaries,

    representing Contracted Sales of R$2,404 million.

    In December 2007, the number of subsidiaries in

    operation was composed of 16 subsidiaries; at the end of

    March 2008, 23 subsidiaries which 20 were operational

    (as shown in the table on page 12).

    Sales Backlog Launches from its subsidiaries on

    03/31/2008, through December 2009 is R$30.9 billion.

    1Q08 Conference Call

    English

    May 16th, 2008

    01:00 PM (NY Time)

    02:00 PM (Brasilia Time)

    Phone: +1 (973) 935-8893

    Code: 44916012

    Replay: +1 (706) 645-9291

    Portuguese

    May 16th, 2008

    10:00 AM (NY Time)

    11:00 AM (Brasilia Time)

    Phone: +55 (11) 2188-0188

    Code: Brasil Brokers

    Replay: +55 (11) 2188-0188

    IR Contact

    Álvaro Soares – CFO and IRO

    Phone: +55 (21) 3433-9550

    e-mail: [email protected]

    www.brbrokers.com.br/ir

    mailto:[email protected]://www.brbrokers.com.br/ir

  • 2

    1Q08 Earnings Release

    Performance of BBRK3 X Ibovespa

    Average Daily Trading Volume

    -10%

    -5%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    800

    900

    1.000

    1.100

    1.200

    1.300

    1.400

    1.500

    1.600

    BBRK3 IBOV

    Price per Share(R$)

    1,600

    1,500

    1,400

    1,300

    1,200

    1,100

    1,000

    900

    800

  • 3

    1Q08 Earnings Release

    History and Operations

    Brasil Brokers was constituted on January 16, 2007 and initiated its operations on June 11, 2007.

    In this period the Company has acquired controlling interests in 16 companies in the real estate

    brokerage sector (except for Niterói Administradora, in which it holds a 50% interest). Of these 16 companies, seven have operating histories, and nine are newly formed companies that

    received 100% of the operations and nearly 100% of the assets, including goodwill and brand equity of companies formed at least three years ago that enjoy strong brand recognition in their

    respective markets.

    As of March 31, 2008, 20 of its 23 subsidiaries were operational, with results already included in

    our financial statements: Primaz, Gribel, Niterói Administradora, IPrice, Brito e Amoedo, Ética, Delforte, Pactual, Avance Noblesse, Basimóvel, Américas, Abreu, Sardenberg, Tropical,

    Chão&Teto, Jairo Rocha, JGM, Frema e Rede Morar.

    The revenues and expenses of our subsidiaries involve real estate brokerage and consulting

    activities.

    Operational Areas

    The map below shows the locations in which the Company operated on 03/31/2008 in the

    following areas:

    Outros estados em que a Brasil

    Brokers está presente através da

    subsidiária Primaz

    Estados em que a Brasil Brokers

    detém subsidiárias

    Manaus

    Natal

    Salvador

    Belém

    Belo Horizonte

    São Paulo

    Rio de Janeiro

    Vitória

    Recife

    Curitiba

    Florianópolis

    Porto Alegre

    Goiânia

    Distrito Federal States where Brasil Brokershas subsidiaries

    Other States where

    Brasil Brokers operates

    through its subsidiary Primaz

  • 4

    1Q08 Earnings Release

    Latest Acquisitions

    We acquired 80% of the capital of Rede Morar, one of the largest

    online real estate networks in the country and the only one constituted

    as a company.

    Rede Morar began its operations around 3 years ago in Belo Horizonte and currently operates in

    another 7 cities in the state of Minas Gerais (Betim, Contagem, Nova Lima, Vespasiano, Lagoa

    Santa, Uberaba and Uberlândia). It currently manages a network composed of 52 accredited real

    estate agencies in the state of Minas Gerais, which jointly have 325 realtors distributed across 59

    points of sale. With the acquisition of Rede Morar, Brasil Brokers materializes its strategy of

    expansion in the property resale segment in Minas Gerais and, subsequently, in the rest of the

    country, though the expansion of the company’s operating model to other markets

    The national expansion model will follow the current accreditation model, with the opening of

    regional offices and the launch of new products to accredited companies.

    The Company acquired 100% of the assets of Global Imóveis.

    Global Imóveis is the largest real estate brokerage company in Manaus, has 8 years of operation in the local market and a large client portfolio, with an

    emphasis on: Inpar, Cyrela, Agra, Mac, Patrimônio, JHSF and Tecnisa, among

    others. Its sales force includes 127 brokers, distributed into more than 16 points-of-sale and Sales Backlog launches of approximately R$ 1.04 Billion to be

    launched until the end of 2009.

    Amazonas is the second most populous state in the North, with more than 3 million inhabitants,

    of which 1.6 million in Manaus. In addition, Manaus has the seventh biggest Gross Domestic Product – GDP (according IBGE).

    With the said acquisition, Brasil Brokers expanded its share in the North, where operated in the State of Pará by the subsidiary Chão e Teto.

    The Company should conclude the acquisition of Global in the states of Acre, Roraima and

    Rondônia in 90 days.

    Organic Expansion

    Beginning of operations in Florianópolis, marking the start of Brasil Brokers in the state of Santa Catarina. Noblesse launched R$18 million in

    Florianópolis in the 1Q08 and already has close to R$90 million in its sales backlog to be launched in 2008, with 25 brokers in the city and will begin

    operating in the property resale segment in the 2Q08, with the opening of its branch in Florianópolis.

  • 5

    1Q08 Earnings Release

    IPrice expanded its area of operations to Ribeirão Preto – São Paulo by opening a store with 20 brokers in the city. The company has already

    launched over R$100 million in developments since its inauguration in March 2008.

    Ética, the leading property resale company in Brazil, begin operating in the

    towns of Niterói and São Gonçalo, with the inauguration of 4 stores (Icaraí,

    Fonseca, Piratininga and São Gonçalo), adding 67 brokers to its sales force.

    New Areas of Operation

    After the acquisitions and the organic expansion, the Company’s new area of operation will be

    defined as shown in the map below:

    Outros estados em que a Brasil

    Brokers está presente através da

    subsidiária Primaz

    Estados em que a Brasil Brokers

    detém subsidiárias

    ManausNatal

    Salvador

    Belém

    Belo Horizonte

    São Paulo

    Rio de Janeiro

    Vitória

    Recife

    Curitiba

    Florianópolis

    Porto Alegre

    Goiânia

    Distrito Federal

    Rio Branco

    Porto Velho

    Boa Vista

    States where Brasil Brokers

    has subsidiaries

    Other States where

    Brasil Brokers operates

    through its subsidiary Primaz

  • 6

    1Q08 Earnings Release

    Operating Performance

    Operating Highlights (1) 4Q07 1Q08

    GVS Launched (R$ thousand) 3,257,485 3,199,236

    Number of Units Launched 11,103 11,758

    Contracted Sales (R$ thousand) 1,777,261 2,404,096

    Number of Units Sold 9,424 11,360

    Number of Brokers 3,519 5,382

    (1) As described at table on page 12, the number of operating subsidiaries changed during quarter.

    3,267

    3,199

    4Q07 1Q08

    Launched GVS (R$ million)

    9,424

    11,360

    4Q07 1Q08

    Sold Units

    1,777

    2,404

    4Q07 1Q08

    Contracted Sales (R$ million)

    11,103

    11,758

    4Q07 1Q08

    Launched Units

  • 7

    1Q08 Earnings Release

    Sales by Market Segment

    In the 1Q08, Contracted Sales from residential and commercial units totaled R$2,184 million (1).

    Of this total, R$400.1 million are from units’ resale and R$1,784.0 million from launched units.

    Sales by State

    In the 1Q08, Contracted Sales from residential and

    commercial units totaled R$2,184 million (1). Of this

    total, 66.0% in the southeast, 20.5% in the northeast,

    5.4% in the middle west, 4.3% in the north and 3.7%

    in the south.

    (1) Contracted sales of residential and commercial units do not include the contract GVS from Primaz and land bank.

    79.3%81.7%

    20.7%

    18.3%

    4Q07 1Q08

    Launches Resale

    R$1,777 MM

    R$2,184 MM

    SP

    30%

    RJ

    28%

    BA

    14%

    MG

    5%

    PA

    5%

    RN

    4%

    GO

    4%

    RS

    3%

    PE

    3%DF

    2%ES

    1% SC

    1%

    Contracted Sales - by State

  • 8

    1Q08 Earnings Release

    Sales by Income Segment

    Of the total of R$2,184 million(1) in Contracted Sales

    from residential and commercial units, 10.0% were

    from properties in the economic segment (up to

    R$100,000.00), 19.4% in the mid-low segment (from

    R$100,000.01 to R$150,000.00), 32.7% in the middle

    segment (from R$150,000.01 to R$350,000.00),

    20.2% in the mid-high segment (from 350,000.01 to

    R$650,000.00) and 17.6% in the high segment (from

    R$650,000.00).

    Sales by Property Type

    Of the total R$2,184 million (1) in Contracted Sales,

    94.3% was from residential properties, 2.2% from lot

    developments, and 3.5% from commercial properties.

    (1) Contracted sales of R$ 2,184 GVS do not include the contract GVS from Primaz and land bank.

    Economic

    (up to R$100 k)

    10%

    Mid-Low

    (R$100-R$150 k)

    19%

    Middle

    (R$150-R$350 k)

    33%

    Mid-High

    (R$350-R$650 k)

    20%

    High (above

    R$650 k)

    18%

    Contracted Sales - by Income Segment

    Residential

    94%

    Commercial

    4%

    Lots

    2%

    Contracted Sales - by Property Type

  • 9

    1Q08 Earnings Release

    Sales Backlog

    The table below presents a summary of the main information from each subsidiary on 03/31/08:

    (in million of reais)

    until 2009 Total

    Ética Imobiliária Rio de Janeiro Resales - - 800 20 116

    Basimóvel Rio de Janeiro New Launches and Resales 1,380 2,786 532 58 44

    Américas Rio de Janeiro New Launches 248 1,260 192 18 19

    Niterói

    AdministradoraNiterói New Launches and Resales 2,591 4,262 185 41 42

    Gribel Belo Horizonte New Launches and Resales 1,964 2,085 170 13 20

    Pactual Belo Horizonte New Launches and Resales 499 1,362 40 8 12

    Brito & Amoedo Salvador New Launches and Resales 1,342 1,937 366 19 18

    I. Price São Paulo New Launches and Resales 3,703 4,196 435 44 62

    Del Forte São Paulo New Launches 1,631 1,732 446 65 55

    Avance São Paulo New Launches 4,096 4,968 261 43 39

    Noblesse Porto Alegre New Launches and Resales 718 833 323 60 80

    Paulo Sardenberg VitóriaNew Launches, Resales and Lease

    Managment334 668 55 5 22

    Chão & Teto BelémNew Launches, Resales and Lease

    Managment649 679 185 13 86

    Tropical Goiânia New Launches and Resales 2,296 4,872 220 33 82

    Abreu Natal New Launches and Resales 3,493 7,815 104 10 70

    Primaz Brasil Commercial Properties - - - - 3

    Jairo Rocha PernambucoNew Launches, Resales and Lease

    Managment771 1,002 275 79 10

    JGM Brasília New Launches and Resales 977 1,129 320 18 42

    Marcos Koegnikan Brasília New Launches and Resales 822 2,401 45 8 11

    RedentoraSão José do Rio

    Preto

    New Launches, Resales and Lease

    Managment341 1,195 80 12 18

    Frema São Paulo New Launches and Resales 2,070 3,390 248 26 29

    Pointer Espírito SantoNew Launches, Resales and Lease

    Managment1,005 2,451 100 12 15

    Rede Morar - Networks to accredited companies - - 325 59 4

    30,930 51,024 5,707 664 899

    Number

    of

    brokers

    Sales

    PointEmployee

    TOTAL

    Our SubsidiariesMetropolitan area

    of the citiesSegment Performance

    Sales Backlog

  • 10

    1Q08 Earnings Release

    Our Sales Backlog Launches remains diversified in distribution by state, and by market segment.

    SP36%

    RJ15%

    RN11%

    MG8%

    GO8%

    DF6%

    ES6%

    BA4%

    PE2%

    RS2%

    PA2%

    Sales Backlog - by State until 2009

    Economic

    (up to R$100kl)

    13%

    Mid-Low (R$100-R$150k)

    21%

    Middle

    (R$150-R$350k)

    43%

    Mid-High

    (R$350-R$650k)

    16%

    High

    (above R$650k)

    6%

    Sales Backlog - by market segment until 2009

  • 11

    1Q08 Earnings Release

    Synergy Program

    Focusing in the subsidiaries integration operational model, we created the Synergy Program

    which aims revenue increase, commercial efficiency, operating costs reduction and processes and

    systems standardization.

    The program is organized in fronts and below we have the activities status of each front:

    INICIATIVES DONE NEXT STEPS

    Operational Processes and

    Management Systems

    - SAP Business One implemented at th

    headquarterand started in the subsidiaries

    on March/08

    - 1st

    SAP integration

    - 2nd

    and 3rd

    SAP expansion stages;

    - Development and implementation of a

    management system..

    Human Resources

    - Management training of the sales force;

    - Development of the bonus and stock

    options plans;

    - Start to implement the new

    management model.

    - Sales Team training programs.

    Marketing

    - Brasil Brokers launching advertising

    campaign, institutional initiatives and

    Marketing Plan definition.

    - Marketing Plan implementation and Real

    Estate intelligence development.

    Resales Segment

    - Start of geographic expansion of the

    group's companies with new branches;

    - Identification of best practices and sales

    force organization.

    - Implementation of operational

    standards and management system.

    New Services/Products

    - Identification os best practices, specially

    renting and real estate financing

    promotion.

    - Dissemination of best practices;

    - Maintenance of the expansion of the

    real estate financing promotion on other

    subisidiaries.

    Business Opportunities - Definition of the cross referral between

    partners compensation scheme.

    - Systematization of business origination

    processes and results control.

    New Launches Segment - Identification of best practices and sales

    force organizational structure. - Implementation of best practices.

  • 12

    1Q08 Earnings Release

    Economic-Financial Performance

    In this section, we will present the combined results of the companies in the 1Q08.

    Explanation on the subsidiaries’ operational period

    As mentioned previously, Brasil Brokers subsidiaries when were acquired could delay the starting

    of its results accounting in the financial statements of the Company. The table below shows the

    startup of the new subsidiaries during the latest quarters.

    OCT NOV DEC JAN FEB MAR

    14 16 16 19 19 20

    100% Operating 10 14 16 19 19 20

    Parcial Start 4 2 0 0 0 0

    Ética Imobiliária

    4th

    Quarter 2007 1st

    Quarter 2008

    Brokers

    Avance

    Brito & Amoedo

    Del Forte

    Gribel

    I. Price

    Niterói Administradora

    Pactual

    Primaz

    Chão & Teto

    Operating Subsidiaries

    Noblesse

    Américas

    Basimóvel

    Paulo Sardenberg

    Tropical

    Abreu

    Jairo Rocha

    Frema

    Rede Morar

    JGM

    Redentora

    Marcos Koenigkan

    Pointer

  • 13

    1Q08 Earnings Release

    Services Revenue

    Gross service revenue from the subsidiaries of Brasil Brokers, consisting of the brokerage

    commissions, amounted to R$ 56.8 million in the 1Q08, generating an average commission of

    2.4%, for contracted GVS stood at R$2.4 billion. This revenue is recognized when the sale order

    is signed. After deduction of taxes, the net revenue totaled R$ 52.3 million in the quarter.

    Cost of Services & Operating Expenses

    The cost of services and operating expenses of the subsidiaries stood at R$18.0 million, combined

    with the parent company’s expenses of R$2.9 million, our total expenses came to R$26.9 million.

    The box below shows 1Q08 expenses and the 4Q07 combined adjusted pro-forma expenses due

    to non-recurring expenses related to the IPO.

    37.6

    52.3

    4Q07 1Q08

    Net Revenue (R$ million)

    Total Cost and Expenses

    (in million) 4Q07 1Q08

    Total Cost and Expenses - Subsidiaries (17.9) (23.9)

    Cost of Services (5.1) (5.9)

    General and Administrative Expenses (12.7) (18.0)

    Holging Adjusted Expenses (1) (1.3) (2.9)

    Adjusted Total Cost and Expenses (19.1) (26.8)

    (1) 4Q07 Holding expenses report only the months of November and December.

  • 14

    1Q08 Earnings Release

    Adjusted Net Income

    In the 1Q08, adjusted net income of Brasil Brokers totaled R$ 25.0 million, accompanied by an

    adjusted net margin of 47.7%.

    Subsidiaries’ operating net income stood at R$ 22.0 million. In the first quarter of 2008, 100% of

    R$22.0 million was recognized but in the 4Q07 only 66% was recognized by Equity Accounting

    until the net income for October still belonged to the subsidiaries’ founding partners.

    Reconciliation (R$ mm) 4Q07 (1) 1Q08

    Net Profit (3.6) 23.9

    Non-Recurring Expenses 23.0 -

    Goodwill amortization - 1.1

    Adjusted Net Profit 19.4 25.0

    Adjusted Net Margin 51.6% 47.7%

    (1)Adjusted Net Profit is not an account method, consist in the period net profit less the

    goodwill amortization.

    19.4 (2)

    25.0

    4Q07 1Q08

    Net Income (R$ million)

    (2) 4Q07 Net Income refers to the net combined proforma

  • 15

    1Q08 Earnings Release

    Adjusted EBITDA (1)

    Adjusted EBITDA of Brasil Brokers in the first quarter was

    R$ 25.4 million, accompanied by an adjusted EBITDA margin of 49%.

    (1) Adjusted EBITDA consists of income before net financial result, income tax and social contribution tax, depreciation

    and amortization and non-operating income. Adjusted EBITDA is not a measure in accordance with generally

    accepted accounting principles in Brazil (BR GAAP), does not represent cash flow for the periods presented, and

    should not be considered a substitute for net income as an indicator of operating performance, or as a substitute for

    cash flow as an indicator of liquidity. Adjusted EBITDA does not have a standardized meaning and our definition of

    Adjusted EBITDA may not be comparable to that used by other companies.

    (2) 4Q07 Combined Pro-forma values.

    Estimate for the Payment of Acquisitions and Goodwill Amortization

    In the 1Q08, Brasil Brokers, pursuing its strategy of geographic expansion, acquired 7

    companies: Jairo Rocha, Marcos Koenigkan, JGM, Frema, Redentora, Pointer and Rede Morar. The

    payments for these acquisitions will be made according to the net income of each of the acquired

    companies, following a pre-established schedule. The chart below presents the consolidated

    payment schedule on March 31, 2008, according to the scenario established by the Company:

    Reconciliation (R$ mm) 4Q07(2) 1Q08

    Adjusted Net Profit 19.4 25.0

    Financial Results (5.2) (7.0)

    IR and CS 4.4 7.1

    Non Operating Results (0.3) (0.0)

    Depreciation and Amortization 0.2 0.3

    Minority Interest - 0.1

    Adjusted EBITDA (1) 18.5 25.4

    Adjusted EBITDA Margin 49.3% 48.6%

  • 16

    1Q08 Earnings Release

    Of the 50,312 treasury shares existing after the IPO, we used 15,991 to pay the initial

    installments of the acquisitions. The company still has a balance of 34,321 shares in treasury.

    Said investments will be amortized within 10 years. The chart below represents the estimated

    amortization schedule:

    * Straight line method of amortization in 10 years.

    Payment with Currence Coin

    (R$ mm) 2008 2009E 2010E Total Cash

    Jairo Rocha - 5.6 - 5.6

    JGM 3.7 4.4 4.4 12.4

    Marcos Koegnikan 1.1 3.1 3.1 7.4

    Frema - - 2.3 2.3

    Redentora - 4.4 8.1 12.5

    Pointer 2.3 5.0 3.8 11.0

    Rede Morar 0.9 0.9 0.9 2.7

    TOTAL 8.0 23.4 22.5 53.9

    Payments with Company Shares

    (R$ mm) 2008 2009E 2010E Total Shares

    Jairo Rocha - 5.6 - 5.6

    JGM - 4.4 4.4 8.8

    Marcos Koegnikan - 3.1 3.1 6.3

    Frema - 7.5 5.3 12.8

    Redentora - 8.1 4.4 12.5

    Pointer - 2.5 3.8 6.3

    Rede Morar - 0.6 0.6 1.2

    TOTAL - 31.9 21.5 53.3

    TOTAL 7.97 55.25 44.00 107.22

    Period 2008E 2009E 2010E 2017E 2018E TOTAL

    Total (R$ thousand) 13,133 16,107 16,107 16,107 2,974 161,075

  • 17

    1Q08 Earnings Release

    Income Tax and Social Contribution

    Income tax and social contribution tax on the net income of Brasil Brokers was R$7.1 million in

    the quarter. R$6.1 million refers to the subsidiaries’ taxes, equivalent to 10.7% of gross revenue

    in the period.

    Cash and cash equivalents

    In the 1Q08, cash and cash equivalents totaled R$265 million, R$250 million of which in the

    parent company. These amounts refer basically to investments in bank deposit certificates and

    fixed income funds, with returns raging from 100% to 108% of the CDI rate.

    Indebtedness

    At the close of the first quarter, the company’s total debt was R$ 109.2 million. Of this amount,

    the debits of subsidiaries related to loans with financial institutions totaled R$0.3 million, and

    R$0.9 million refers to the provisioning for dividends for payment to the founding partners due to

    their usufruct of the income generated up to the settlement date of the public offering. R$ 107.2

    million refers to the new partners’ liabilities due to the latest acquisitions.

  • 18

    1Q08 Earnings Release

    Financial Data

    Results (R$ thousand) 1Q08

    Launched GVS 3,199,236

    Contracted GVS 2,404,096

    Gross Revenue 56,750

    (-) Sales Taxes (4,416)

    Net Revenue 52,334

    Costs of Services and Personnel Expenses (23,967)

    Cost of Services (6,481)

    G&A (17,486)

    Depreciation (252)

    Financial Result (78)

    Revenues 158

    Expenses (236)

    Operating Result 28,038

    Non Operating Result 29

    Taxes and Social Contribution Provisions (6,115)

    Subsidiaries Net Income 21,952

    Subsidiaries Net Margin 41.9%

    Holding Adjusted Expenses (3,015)

    Holding Financional Revenue 7,054

    Investments Amortization (1,052)

    Taxes and Social Contribution Provisions - Holding (972)

    Holding Results 2,014

    Minority Equity (57)

    Net Income 23,910

    Margem Líquida 45.7%

    Adjusted Net Income 24,962

    Adjusted Net Margin 47.7%

    Adjusted EBITDA 25,435

    Adjusted EBITDA Margin 48.6%

  • 19

    1Q08 Earnings Release

    Balance Sheet on March 31st 2008 – Assets

    (R$ thousand)

    Holding Consolidated

    Current Assets

    Cash, Cash Equivalent s 249,579 265,493

    Account s Receivable 36,202

    Tax t o Recover 2,698 3,667

    Loans and Ot her credit s

    w it h realt ed par t ies -

    Ot her Current Asset s 48 1,929

    Total Current Assets 252,325 307,291

    ASSETS

    Noncurrent Assets

    Long Term Assets

    Account s Receivable f rom client s - 3,331

    Relat ed Par t ies 2,025 1,197

    Advance for fut ure

    capit al increase 2,316 -

    Ot her Credit s - 217

    4,341 4,745

    Invest im ent s in cont ro led Com panies 34,315 -

    Goodw ill Invest m ent s 546 9,061

    Proper t y 142,566 143,054

    Defer red 1,637 2,508

    179,064 154,623

    Total Noncurrent Assets 183,405 159,368

    Total Assets 435,730 466,659

  • 20

    1Q08 Earnings Release

    Balance Sheet on March 31st 2008 – Liabilities and Shareholders’ Equity

    (R$ thousand)

    Holding Consolidated

    Current Liabilit ies

    Loans and Financing - 213

    Suppliers 207 3,137

    Wages and Burden Payable 368 3,872

    Taxes and Cont r ibut ions payable 1,064 13,009

    Advance f rom client s - 450

    Payable Account s - Com pany Acquisit ion 7,892 7,892

    Loans and ot her relat ed

    par t ies payable 31 930

    Usufruct of Result s - 4,979

    Ot her Account Payable 897 3,056

    Total Current Liabilit ies 10,459 37,538

    Noncurrent Liabilit ies

    Long-term Liabilit ies

    Loans and Financing - 198

    Relat ed Par t ies - -

    Provisions for cont ingencies - 1,898

    Taxes payable - 199

    Payable Account s - Com pany Acquisit ion 81,726 81,726

    Invest im ent Provisions (Losses) 704 -

    Ot her Account s Payable - 2,247

    Total Non Current Liabilit ies 82,430 86,268

    Minority Interest 12

    Shareholders'

    Subscr ibed Capit al 304,234 304,234

    Capit al Reserve 23,522 23,522

    Accum ulat ed Losses 15,085 15,085

    Total Shareholders' Equity 342,841 342,841

    Total Liabilities and Shareholders' Equity 435,730 466,659

    Liabilit ies and Shareholders' Equity

  • 21

    1Q08 Earnings Release

    Financial Statements

    Period: January 1st to March 31st 2008

    Holding Consolidated

    Services Revenue - 57,000

    Discount s and Rebat - (250)

    Taxes - (4,416)

    Net Revenue - 52,334

    Cost of Services Rendered - (5,859)

    Gross Income - 46,475

    Operat ing Revenues and Expenses

    General Expenses (2,609) (17,952)

    Managem ent Wages (324) (2,901)

    Depreciat ion and Am ort izat ion (83) (335)

    Goodw ill Am or t izat ion - Invest m ent s (1,052) (1,052)

    Financial Expenses (43) (282)

    Financial Revenue 7,097 7,258

    Ot her Operat ing Revenues (Losses) 1 (188)

    Equit y Incom e 21,895 -

    24,882 (15,452)

    Operat ional Income 24,882 31,023

    Non Operating Revenue (Losses) - 30

    Income/ Loss Befere Taxes 24,882 31,053

    Social Cont r ibut ion Allow ance (713) (5,186)

    Income Tax Allowance (259) (1,901)

    Minority Shareholders' Equity - (56)

    Net Income in the period 23,910 23,910

  • 22

    1Q08 Earnings Release

    Cash Flow

    Period: January 1st to March 31st 2008