2q08 and 1h08 results presentation
TRANSCRIPT
Results Presentation2nd Quarter and 1st Half of 2008
August 15, 2008
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Results Presentation 2nd Quarter and 1st Half of 2008
Results from the 2007, unless otherwise indicated, are presented on a pro forma basis, combining
Tegma, Bonifácio Logística e Transportes Ltda, Coimex Logística Integrada S.A. (C.L.I.) and P.D.I
Comércio Indústria e Serviços Ltda (P.D.I) as if the acquisitions of Boni, C.L.I, and P.D.I had taken
place on January 1, 2007.
Agenda
• Recent Events
• Financial Highlights
• Financial Results
• Guidance 2008
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Recent Events – Market Maker
Contracting of Market Maker
Tegma Gestão Logística S.A. hired Banco UBS PACTUAL S.A. to act as
market maker, seeking to increase the liquidity of the Company’s shares.
The agreement began on July 21, 2008 and will be valid for 1 (one) year,
automatically extendable for equal periods.
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Recent Events – Acquisition CTV
Formalization of Business Acquisition Agreement
• On August 11, 2008, Tegma Gestão Logística S.A. entered into an agreement
(“Acquisition Agreement”) with COOPERATIVA DOS TRANSPORTADORES DE
VEÍCULOS E DE CARGAS EM GERAL (“CTV”) and its partners, among other
parties, for the acquisition of the business operated by CTV.
• Among the conditions typical in operations of this nature, the implementation
of the Acquisition is subject to the financial, operational and legal audits of
CTV to confirm commercial positions, as well to approval by Tegma’s Board of
Directors.
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• CTV is a cooperative focused on the transportation of new cars on the Center-West and North regions.
• Long term relationship with many manufacturers, such as GM (32 years);Ford (22 years); Volkswagen (18 years); Toyota (9 years); Peugeot (5 years);Citroën (5 years).
• Gross Revenue of approximately R$ 100 million in 2007.
• 48,869 vehicles transported in 2007.
Recent Events – Acquisition CTV
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CTV has a strong presence in the Mid-west and the North regions. Regions which have been showing a strong growth in the number of vehicles sold
13.9%
16.1%
12.8%
9.4%
10.1%
Vehicle registration (passenger and light commercial vehicles): CAGR 2002-2007
Covered Area - CTV
Brazil : 10.9%
Source: ANFAVEA annuaries
Recent Events – Acquisition CTV
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Financial Highlights – 2Q08 and 1H08
• Net Revenue totaled R$ 252.4 million in 2Q08, growing by 45.8%on 2Q07.Net Revenue in the six-month period ended June 30, 2008 (1H08)was R$ 464.3, an increase of 44.7% in relation to 1H07.
• In 2Q08, Adjusted EBITDAR rose 21.4% to R$ 34.2 million, fromR$28.1 million in 2Q07.Year to date, Adjusted EBITDAR amounted to R$ 59.9 million, up18.3% against 1H07.
• Net Income was R$ 15.4 million in 2Q08, excluding the effects fromnonrecurring expenses, growing by 65.6% over the same period of2007.Year to date, Net Profit was R$ 27.0 million, growing by 57.9% inrelation to 1H07.
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Financial Results - Automotive
Net Revenue increased 46.9% in the 2Q08 due to:
• Increase of 28.5% in the volume of transported vehicles;• Growth of 3.0% in average km;• Increase of R$ 24.3 million on Gross Revenue from auto parts
transportation.
1H08
2Q08
Adjusted EBITDAR rose by 27.6% in the period. In relation to the Net Revenue, Adjusted EBITDAR margin came to 13.9%, 2.2 p.p. down year-on-year due to:
(i) the higher revenue in the auto parts transportation , logistic services and Catlog Division.
(ii) change in the fixed costs structure, aiming to enhance the vehicles´division infrastructure.
Net Revenue increased 45.9% in relation to the first half of 2007, mainly due to:
• Increase of 29.6% in the volume of transported vehicles;• Growth of 2.4% in average km;• Increase of R$ 46.6 million on Gross Revenue from auto parts transportation.
Adjusted EBITDAR grew 19.1% over 1H07. In relation to the Net Revenue, Adjusted EBITDAR margin came to 13.1%, 3.0 p.p. down year-on-year , dueto the same factors mentioned above.
142.0
208.7
22.8 29.1
NET REVENUE Adjusted EBITDAR
2Q07 2Q08
46.9%27.6%
260.7
380.5
41.9 49.9
NET REVENUE Adjusted EBITDAR
1H07 1H08
45.9%
19.1%
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Financial Results - Other Sectors
2Q08
1H08
Growth of 40.8% in Net Revenue over 2Q07, maily due to the increase of 72.2% in gross revenue from other transportation segments, especially fuel,orange juice and pulp and paper.
Adjusted EBITDAR from Other Sectors fell 5.1% over 2Q07 mainly due to: (i) Delays in the productivity project in the HPC sector; (ii) Lower-than-expected productivity indicators than the ones foreseen in the fuel
transportation; and (iii) Decrease on the revenue from storage in the warehouse located in Vitória due
to the fire that occurred in March 6th 2008.
Adjusted EBITDAR margin in relation to the Net Revenue stood at 11.6%, 5.6 p.p. down on 2Q08.
Net Revenue registered R$ 83.8 million, a 39.6% increase over 1H07, highlighting a 58.2% increase of the transportation revenues on the Gross Revenue.
Year to date, Adjusted EBITDAR came to R$ 10.0 million, 14.7% higher than in 1H07, with Adjusted EBITDAR margin of 12.0%, compressing by 2.6 p.p. versus a year earlier due to the impact in the second quarter of the year from the items mentioned above.
31.0
43.7
5.3 5.1
NET REVENUE Adjusted EBITDAR
2Q07 2Q08
40.8%
-5.1%
60.0
83.8
8.7 10.0
NET REVENUE Adjusted EBITDAR
1H07 1H08
39.6%
14.7%
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Financial Results –Consolidated Net Revenue
• Consolidated Net Revenue grew by 45.8% in comparison with 2Q07, given that theAutomotive Sector grew by 46.9% and the Other Sectors grew by 40.8%.
• In 1H08, Consolidated Net Revenue Receita Líquida Consolidada stood at R$464.3 million,up 44.7% on 1H07. The Automotive Sector grew by 45.9% while the Other Sector grew by39.6%.
320.8
464.3
173.1
252.4
1H07 1H08 2Q07 2Q08
44.7%
45.8%
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Financial Results – Consolidated Adjusted EBITDAR
• In 2Q08, the Consolidated Adjusted EBITDAR registered na increase of 21.4% over 2Q07,totaling R$ 34.2 million.
• In 1H08, the Adjusted EBITDAR totaled R$ 59.9 million, up 18.3% on 1H07.
50.7
59.9
28.1
34.2
1H07 1H08 2Q07 2Q08
18.3%
21.4%
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Financial Results- Consolidated Net Income
• Consolidated Net Income stood at R$ 15.4 million in 2Q08, representing 6.1% of theConsolidated Net Revenue. Including the nonrecurring expenses, the Net Income totaledR$ 15.3 million.
• In 1H08, Consolidated Net Income totaled R$ 27.0 million, na increment of 57.9% over 1H07.
17.1
27.0
9.3
15.4
1H07 1H08 2Q07 2Q08
57.9%
65.6%
Financial Results – Cash Balance and Indebtness
71.5
55.069.8
76.9
87.6
INDEBTNESS (INCLUDES LEASE FINANCING )
jun-07 sep-07 dec-07 mar-08 jun-08
0.64x0.53x
0.58x
0.67x
0.62x
12.1
245.3 235.0
203.0
176.0
CASH BALANCE
jun-07 sep-07 dec-07 mar-08 jun-08
Guidance 2008
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R$ million Min. Max.
Net Revenue 1,000 1,150
Adjusted EBITDAR 160 185
Investiments 90 110
IR Contact
Gennaro Oddone
+55 (11) 4346-2675
Alexandre Brandão
+55 (11) 4346-2532
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The forward-looking statements contained in this report are subject to risks anduncertainties, being based on beliefs and assumptions of our management andinformation currently available to the Company. Such statements include informationon our current intentions, beliefs or expectations, as well as those of our Board ofDirectors and Board of Executive Officers.
These reservations concerning forward-looking statements also apply to informationon our possible or presumed operating results, as well as declarations preceded by,including or followed by such words as "believe", "may", "will", "continue", "expect","foresee", "intend", "plan", "estimate" and other similar expressions.
Forward-looking statements do not constitute a guarantee of performance. Since theyrefer to the future, they depend on circumstances that they may or may not occur andare therefore subject to risks, uncertainties and assumptions. Future results and thecreation of shareholder value may differ substantially from those expressed orsuggested by the forward-looking statements. These results and values depend onmany factors beyond the TEGMA control or foresight.