Slide 1: 2Q10 Results
2Q10 Results FLRY3 “The most valuable brand in the Brazilian healthcare industry The 6th most valuable brand among the service companies The 25th most valuable Brazilian brand” Millward Brand / BrandAnalytics August, 2010 TODOS OS DIREITOS RESERVADOS – 2010
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Such statements are not statements of historical facts and reflect the beliefs and expectations of the Company s management. The words “anticipates”, “believes”, “estimates”, “expects”, “forecasts”, “plans”, “predicts”, “project”,
Slide 3: Highlights
Highlights R$ million 2Q10 2Q09 r 1Q10 r Gross Revenue 236.3 203.6 16.0% 217.2 8.8% Net Revenue 217.8 191.0 14.0% 203.9 6.8% Gross Profit 91.0 84.2 8.0% 86.0 5.7% % margin 41.8% 44.1% 42.2% EBITDA 53.4 46.2 15.6% 44.9 19.1% % margin 24.5% 24.2% 22.0% Net Income 31.6 18.1 74.4% 23.5 34.3% % margin 14
Slide 4: Gross Revenue
Gross Revenue (R$ million) Gross Revenue Breakdown 4
Slide 5: Gross Revenue - Breakdown by Business Line
Gross Revenue - Breakdown by Business Line Patient Service Centers, a 15.2% increase in revenues. The average revenue per PSC grew 11.8%, the average revenue per square meter grew 10.5%. 10.4% increase in the number of patients. 50.3% growth in Diagnostic Operations in Hospitals. Preventive and
Slide 6: Patient Service Centers
Patient Service Centers 15.2% increase in gross revenue (14.1% in 1H10), amounting R$ 199 million in the quarter. The average revenue per square meter grew 10.5%. The average size of PSCs increased 1.2% Expansion in the number of patients by 10.4% compared to 2Q09. “Same store sales” (only same exis
Slide 7: Diagnostic Operations in Hospitals
Diagnostic Operations in Hospitals Revenues of R$ 23 million, achieving a 9.7% share in the total revenue of Fleury Group, a 50.3% increase in the 2Q10 compared to the 2Q09, due to: Expansion of the hospital operations; Operations in hospitals located in Porto Alegre, after the acquisition of Weinma
Slide 8: Lab-to-Lab and Clinical Trials
Lab-to-Lab and Clinical Trials 0.6% variation in the 2Q10 compared to 2Q09 in Lab-to-Lab, R$ 8.7 million in the quarter. There was a 5.5% increase compared to the previous quarter. Progressive discontinuation of the Clinical Trials business. The R$ 2.2 million revenue of the 2Q09 decreased to R$ 1.2
Slide 9: Gross Revenue – breakdown by type of exam/test
Gross Revenue – breakdown by type of exam/test Imaging tests & Other Diagnostic Specialties increased 17.2%, driven by continuous organic expansion of Imaging Services in the PSCs. +10.5% in number of exams. Clinical Analysis’ revenue grew 16.8%, mainly driven by Weinmann’s acquisition. +21.4% i
Slide 10: Preventive and Therapeutic Medicine
Preventive and Therapeutic Medicine 64.0% increase excluding Fleury Hospital-Dia operations. The Chronic Disease Management service has reached 24.5 thousand lives under contract. The Executive Health Assessment revenue increased by 28%, with a 29% growth in the number of assessments. The Health Pro
Slide 11: Costs of Services
Costs of Services % Net Revenue R$ Million 2Q09 New Previous % Net 2Q10 Revenue criterion criterion Personnel and medical services 66.9 30.7% 30.2% 26.0% General services, Rent and Utilities 26.6 12.2% 12.0% 12.0% Materials and Outsourcing 20.4 9.4% 9.2% 12.9% General Expenses 13.0 6.0% 5.9% 5.1% 10
Slide 12: Gross Margin
Gross Margin (% of Net Revenue) 12
Slide 13: Operational Expenses
Operational Expenses General and Administrative Expenses, excluding the provisions for Profit Sharing Plan (PSP) and Depreciations, amounted to R$37.4 million, 17.2% of the Net Revenue, a dilution of 61 basis points compared to 2Q09. Depreciations amounted R$ 7.0 million, PSP R$ 2.9 million. Other O
Slide 14: Income Tax and Social Contribution
Income Tax and Social Contribution 1- Other: Non Recurring Provisions, Non-Deductible Expenses, Equity in Subsidiaries 2- Refis IV: non recurring 14
Slide 15: Net Income
Net Income 74.4% growth, totaling R$ 31.6 million. The profit margin represented 14.5% of net revenue. Net Income and Profit Margin (R$ million) 6.6% 4.6% 6.2% 10.9% 13.1% 7.8% 9.5% 14.5% 15
Slide 16: EBITDA
EBITDA R$ % net million revenue 15.6% increase, totaling R$ 53.4 million. Net Income 31.6 14.5% Financial Expenses (Income) (6.4) (2.9%) EBITDA margin on net revenue of Depreciation and amortization 7.0 3.2% 24.5%, 34 basis points higher than 2Q09. Income Tax and Social Contribution 21.2 9.7% EBITDA
Slide 17: EBITDA Analysis
EBITDA Analysis Item % of Net Revenue EBITDA Reported 24.5% R$ 53.4 MM Acquisitions +80 bps R$ 1.8 MM Cost of Services – +110 bps Non recurring R$ 2.4 MM Administrative Expenses – +46 bps Non recurring R$ 1.0 MM Other Operating – +271 bps Recoverable taxes write-off R$ 5.9 MM Other Operating – + 50
Slide 18: Cash Flow, Accounts Receivable and Debt
Cash Flow, Accounts Receivable and Debt Cash Flow R$ MM Accounts Receivable R$ MM March 31st 205.2 Net Income 31.6 Quarter´s Revenue 236.3 Collection from Customers (241.5) Op. Cash Flow 44.9 June 30th 200.1 Net Cash Flow (7.6) Bad Debt Provision (27.3) Accounts Receivable (net) 172.8 Debt Position
Slide 19: Investments 2Q10
Investments 2Q10 Capex amounted R$ 17 million in 2Q10. Investments in Acquisitions amounted R$ 12 million. 19
Slide 20: Investments – Expansion Plan
Investments – Expansion Plan Movements related to investments in PSCs and total square meters involved, which includes expansion in services, are planned as below: 1H10 2H10 2011 2012 Movements in PSCs* 24 25 34 20 Square meters(thousands) 5.0 6.0 24.6 20.4 Square meters net addition (thousands) -0.
Slide 21: Payment of Interest on Capital
Payment of Interest on Capital Anticipation of Interest on Capital (Board Meeting, August 10th) Refers to 1H10 results; Tax benefit to be accrued on 3Q10: R$ 5.5 million; Total amount: R$ 16,227,910.51 Per share amount: R$ 0.12359550 Payment will be on August 30th; Based on the Company’s owne
Slide 22: Capital Market
Capital Market Shares Outstanding (06/30/10) Free float (06/30/10) 131,298,550 shares 41,792,510 shares(31.8%) Market Cap (06/30/10) R$2.62 billion 22