1q08 results conference call presentation
TRANSCRIPT
Earnings release
1Q08May 16, 2008
ABOUT
TEMPO PARTICIPAÇÕES
Business segments
3
Dental HMO
Ranking: #4
Number of lives: 501 thousand
Underwriting of frequency risk
Assistance Services
Ranking: #1
Number of items: 18.6 million
Underwriting of frequency risk
Healthcare Administration
Services
Ranking: #1
Number of lives: 1.3 million
No underwriting risk. Fee
business only.
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
FINANCIAL AND OPERATING
PERFORMANCE
Adjusted EBITDA - Tempo
(R$ MM)
10,0
13,4
34,0%
1Q07 1Q08
EBITDA margin - Tempo
(%)
7,8% 8,4%
0,6 p.p.
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
10,0%
1Q07 1Q08
0,0 p.p.
0,1 p.p.
0,2 p.p.
0,3 p.p.
0,4 p.p.
0,5 p.p.
0,6 p.p.
Net Revenues - Tempo
(R$ MM)
128,0160,1
+ 25%
1Q07 1Q08
6
Tempo experienced a 34% increase in Adjusted EBITDA and a
25% increase in net revenues for 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
67,8
95,9
+ 41,6%
1Q07 1Q08
1,06
1,34
+ 25,9%
mar/07 mar/08
7
Health
Beneficiaries (in millions) Adjusted EBITDA (R$ MM)
Revenues (R$ MM)
25,9% increase in number of beneficiaries
41,6% increase in net revenues (including Med-Lar)
EBITDA: nominal and marginal increase
3,4
6,7
97%
7,0%5,0%
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
1Q07 1Q08
-50%
-40%
-30%
-20%
-10%
0%
10%
Adjusted EBITDA EBITDA margin
1,8
4,1
123%
1Q07 1Q08
8
Dental
Beneficiaries (in thousands) Adjusted EBITDA (R$ MM)
Revenues R$ (MM)
Information presented in this slide comprise the
companies acquired in the end of 2007
Organic and acquisition growth in number of
beneficiaries
Sustainable EBITDA margin
Decrease in loss ratio5,2
15,3
193%
1Q07 1Q08
143,1
403,1
501,1
1Q07 1Q08
Gama odonto Pro-forma
9
Assistance services
Loss ratio curve Adjusted EBITDA
Number of items (in millions)
Higher loss ratios for 1Q and 4Q
Capture of synergies after integrating USS
Potential increase in B2B2C sales
Assist Card Joint Venture17,3 18,6
+ 7,3%
mar/07 mar/08
50,4%
45,9%47,1%
50,4%
1Q07 2Q07 3Q07 4Q07
4,8 5,5
14%
9,4%8,8%
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
1Q07 1Q08
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
10,0%
Adjusted EBITDAEBITDA margin
Asset light operation
10
Capex vs Adjusted EBITDA Pro-Forma (R$ mm)
CAPEX compared to Adjusted EBITDA (R$ MM)
14,0
30,2
37,6
55,0
13,4
4,3 2,5 4,0 5,10,8
8% 11%
31%
9% 6%
2004 2005 2006 2007 mar/08
Adjuested EBITDA CAPEX % of Adj. EBITDA
