Slide 1: 4Q19 Results
4Q19 RESULTS 4Q19 RESULTS
Slide 2: Schedule
SCHEDULE 1. 4Q19 Results 2. COVID-19 Impacts 4Q19 RESULTS 2
Slide 3: 4Q19 Highlights
4Q19 HIGHLIGHTS Net revenues Sales Category 4.2% decrease Average price increased by Gross margin stabilized compared to 4Q18 12.0% and sales volume after decreasing for three decreased by 13.9% consecutive quarters Adjusted EBITDA Net debt SG&A R$14.1 million adjusted totaled R$40.3 million in decr
Slide 4: Gross Revenue
GROSS REVENUE GROSS REVENUE +4.1% Gross revenue: 1400,0 147 165 230 180 1200,0 -3.7% 1000,0 869,0 130 R$ 124.8 million (-3.7%) in 4Q19 800,0 748,0 80 378.4 600,0 363.5 30 -20 R$ 378.4 million (+4.1%) in 2019 400,0 -70 129.6 200,0 124.8 -120 0,0 -170 4T18 4T19 4Q18 4T18 4Q19 4T19 2018 2019 Volume (Mi
Slide 5: Gross Profit and Gross Margin
GROSS PROFIT AND GROSS MARGIN GROSS PROFIT AND GROSS MARGIN 250 100,0% 250 100,0% 80,0% 80,0% 200 47.1% 47.0% 60,0% 200 48.0% 60,0% 34.5% 40,0% 40,0% 25000,0% 4000,0% 150 20,0% 150 20,0% 20000,0% 2000,0% -4.6% 1,0% 0,0% -25.5%1,0% 0,0% 0,0% 15000,0% 100 -20,0% 100 -20,0% -2000,0% 10000,0% -40,0% 146
Slide 6: SG&A
SG&A SALES EXPENSES 200 200 25000,0% 37.1% 60,0% 60,0% 180 30.7% 28.9% 180 34.0% 4000,0% Sales Expenses: 40,0% 40,0% 160 160 20000,0% 2000,0% 140 20,0% 140 20,0% 1,0% 1,0% 0,0% R$ 30.2 million (-9.8%) in 4Q19 120 15000,0% 120 0,0% 0,0% -2000,0% 100 100 -20,0% -20,0% -9.8% -5.2% R$ 107.7 million (-5.
Slide 7: Adjusted EBITDA
ADJUSTED EBITDA ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN 25,0 40,0% 25,0 40,0% 13.5% 20,0 6.4% 20,0% 20,0 2.6% 4.8% 20,0% 25000,0% 4000,0% 0,0% 0,0% 20000,0% 2000,0% 15,0 15,0 -20,0% -20,0% 15000,0% +101.5% 1,0% 1,0% +89.9% 0,0% -2000,0% -40,0% -40,0% 10,0 10,0 10000,0% -4000,0% 14.1 -60,0% 15.2 -
Slide 8: Working Capital
WORKING CAPITAL R$ Million 4Q18 Days 4Q19 Days (+) Accounts receivable 160.2 189 154.8 176 (+) Inventories 115.1 261 122.6 213 (-) Accounts payable 55.4 126 83.4 145 (=) Working capital 219.8 324 194.0 244 • Accounts Receivable : -12 days • Inventories : -47 days • Accounts Payable : +20 days • Tota
Slide 9: Net Cash
NET CASH R$ Million 4Q18 3Q19 4Q19 Gross debt (96.9) (119.3) (101.3) (-) Cash 77.4 82.9 60.9 (=) (Debt)/Net cash (19.5) (36.5) (40.3) NET DEBT • R$ 20.8 million up (+107.1%) compared to December 31, 2018 • R$ 3.8 million net debt increase against 3Q19 4Q19 RESULTS 9
Slide 10: Schedule
SCHEDULE 1. 4Q19 Results 2. COVID-19 Impacts 4Q19 RESULTS 10
Slide 11: COVID-19 implications for Grupo Technos
COVID-19 COVID-19 implications for Grupo Technos • In December 31, 2020, the World Health Organization (WHO) has announced that the corona virus (COVID-19) is a global health emergency. • In March 13 the WHO considered the corona virus to be a pandemic. • In March 10, 2020, the Securities and Exchan
Slide 12: COVID-19 Action Plan | Impact on the Company
Plano de Ação COVID-19 | Impacto do COVID-19 na Empresa COVID-19 There are impacts of COVID-19 on the workforce, supply and demand in the value chain. Workforce Supply Demand People China Customer Impact on employees due to Impact on supply chain due to Impact on distribution chain due coronavirus c
Slide 13: COVID-19 Action Plan | Two Areas of Action
Plano de Ação COVID-19 | Dois Focos de Atuação COVID-19 To counteract the impacts of the coronavirus syndrome, the Company created a crisis committee and adopted actions on two fronts to preserve the health of its employees and also to preserve the health of the company. COVID-19 action plan Preserv
Slide 14: Focus 1: Preserve employees' health
Plano de Ação COVID-19 | Preservar a saúde das pessoas e COVID-19 da empresa Focus 1: Preserve employees’ health • Active communication and an awareness campaign directed at all employees; • Reinforcement of hygiene and cleaning practices at our factory, stores and offices; • Isolation of individual
Slide 15: Focus 2: Preserve the health of the Company (supplies and working capital)
Plano de Ação COVID-19 | Preservar a saúde das pessoas e COVID-19 da empresa Focus 2: Preserve the health of the Company In terms of supplies and working capital: • Renegotiation of payment terms with many of our Brazilian and foreign suppliers; • Reduction in purchase volumes from international sup
Slide 16: Focus 2: Preserve the health of the Company (operations and capital structure)
Plano de Ação COVID-19 | Preservar a saúde das pessoas e COVID-19 da empresa Focus 2: Preserve the health of the Company In operational terms and capital structure: • Reduction of and establishment of provisions for fixed and variable expenses and elimination of new short-term investments that are n
Slide 17: Additional Measures
Plano de Ação COVID-19 | Preservar a saúde das • COVID-19 pessoas e da empresa Additional Measures Considering the significant uncertainty of variables, the Company continues to study additional measures that may be needed in the next weeks, based on a clearer scenario related to the outbreak of COV
Slide 18: Disclaimer
DISCLAIMER The material that follows is a presentation of general background information about Technos S.A. and its subsidiaries (the “Company”), as of the date of the presentation, solely for meetings held with potential investors in connection with the proposed offering outside of Brazil of common