Sinqia — Q1 2019 Earnings Presentation
12 slides from Sinqia's earnings presentation, May 16, 2019
Slide 1: 1Q19 Results
1Q19 Results 16 May 2019
Slide 2: Recent Events
Recent Events ADSPrev Payment of Change of acquisition dividends auditor firm Rationale: Period: New: update of portfolio and 2018 Deloitte expansion of customer Gross amount: Beginning: base R$ 648 thousand, or 1Q19 Gross Revenues: R$ 0.056 per share Previous: R$ 7.3 MM Base: PwC EV: 29 Apr. 2019 O
Slide 3: Records both in net revenues and recurring revenues
Records both in net revenues and recurring revenues Net Revenues Recurring Revenues (R$ MM) (R$ MM | %NR) 1Q19: Highest value in a 1st quarter, with organic 1Q19: Records in recurring revenues and % of recurrence addition of R$ 3.0 MM and by M&A of R$ 2.9 MM + 9.2% 82.8% 83.8% 74.9% 81.8% 148.0 135.
Slide 4: Performance impacted by items that impairs comparability
Performance impacted by items that impairs comparability Gross profit SG&A1 Adjusted EBITDA (R$ MM | Gross Mg. %) (R$ MM | % NR) (R$ MM | EBITDA Mg. %) 1Q19: Highest of a 1st quarter, despite 1Q19: increase due to extraordinary 1Q19: reduction of R$ 0.9MM vs. 1Q18, increase in RD&I, adjustment in th
Slide 5: Impact of higher RD&I and integration costs
Software Unit Impact of higher RD&I and integration costs Software Net revenues Software Gross profit (R$ MM) (R$ MM | Gross Mg. %) 1Q19: Record, with inorganic addition of R$ 2.9 MM 1Q19: Impact of higher RD&I investments and extraordinary + 2.6% costs with integration 93.1 46.6% 47.5% 90.7 36.8% 4
Slide 6: Software Unit
Software Unit Portfolio of Recurring Contracts (R$ MM) Conscious RD&I Costs(R$ MM) Addition of R$ 34.4 MM (+43.5% vs. 1Q18), of which R$ 11.7 Expansion of the RD&I investments for a technology MM organic (+14.8% vs. 1Q18) and R$ 22.7 MM inorganic (R$ update of the softwares sacrifices short-term 4.6
Slide 7: Records in revenues and profit with strong demand for Outsourcing
Services Unit Records in revenues and profit with strong demand for Outsourcing Services Net Revenues Services Gross profit (R$ MM) (R$ MM | Gross Mg. %) 1Q19: Growth of 2.2 MM in Outsourcingg and R$ 0.9 MM 1Q19: Growth mainly due to Outsourcing in Projects + 22.6% 22.5% 23.8% 18.0% 19.9% 55.0 44.8
Slide 8: Increase of net debt after the acquisition of Atena and ADSPrev
Financial position Increase of net debt after the acquisition of Atena and ADSPrev Gross Cash Gross Debt Net Debt (R$ MM) (R$ MM) (R$ MM) Decrease mainly related to the Increase of R$ 4.2 MM from the purchase Temporary increase due to the recent payment of acquisitions, increase in of Atena and ADSP
Slide 9: Final message
Final message Continuity of the strategy to accelerate growth 1) Accelerate acquisitions 3 in only 5 months (vs. 9 in 13 years) 2) Expansion of the portfolio of contracts Should guarantee 2 digit growth after the implementations of subsidized software 3) Synergies from acquisition Profitability foll
Slide 10: ri@sinqia.com.br ri.sinqia.com.br
55 (11) 3478-4845 / 4788 ri@sinqia.com.br ri.sinqia.com.br
Slide 11: Anexos
Anexos Reconciliation of EBITDA and Adjusted EBITDA (R$ '000) 1Q19 1Q18 Change 4Q18 Change LTM-1Q19 LTM-1Q18 Change Net Income (2,341) (1,799) 30.1% 1,097 - 2,184 5,048 -56.7% (+) Income tax/social contribution (1,658) (588) 182.0% 817 - 1,240 1,347 7.9% (+) Financial result 1,285 1,937 -33.7% 359 2
Slide 12: Disclaimer
Disclaimer This material was prepared by Sinqia S.A. (“Sinqia”) (B3: SQIA3) and may contain certain statements expressing management's expectations, beliefs and/or forecasts regarding future events or results. These statements involve risks and uncertainties that could cause results materially diffe