Results 3Q17 FLRY3. October 2017

Transcription

1 Results 3Q17 FLRY3 October 2017

2 Disclosure 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, targets and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include but are not limited to the impact of competitive services and pricing market acceptance of services, service transactions by the Company and its competitors, regulatory approval, currency fluctuations, changes in service mix offered, and other risks described in the Company s registration statement. Forward-looking statements speak only as of the date they are made and Grupo Fleury does not undertake any obligation to update them in light of new information or future developments. All figures are compared to 3Q16 except when stated otherwise. 2

3 Financial highlights in 3Q17 Gross Revenue of R$ million, 12.7% increase Net Revenue of R$ million, 14.0% increase Same Store Sales (SSS) grew 7.9% EBITDA of R$ million (+ 17.9%) EBITDA margin of 26.5% (+87 bps); margin impacted by 97 bps due to the Expansion Plan Net Income of R$ 86.6 million, an increase of 37.2% ROIC excluding goodwill reached 44.2% 3

4 Opening of new PSCs¹ Expansion Plan: 9 new units (July/2017 October/2017) Fleury: 3 units - 1 large, 1 medium and 1 fast site a+ in São Paulo: 3 units 2 medium and 1 fast site a+ in Brasília: 2 fast site units Labs a+ in Rio de Janeiro: 1 fast site unit Fleury Carlos Weber Fleury Alameda Jaú Fleury Morumbi ¹ PSCs: Patient Service Centers 4

5 Opening of new PSCs¹ São Paulo a+ Santo André São Paulo a+ Augusto Tolle São Paulo a+ Queiroz Filho Brasília a+ Asa Sul Brasília a+ Sudoeste Rio de Janeiro Labs a+ Campo Grande ¹ PSCs: Patient Service Centers 5

6 Operating highlights in 3Q17 NPS 1 reached 77.0%, an improvement of 395 bps Advent divests 100% of the shares equivalent to 14.5% via a blocktrade in the Stock Exchange Acquisition of Serdil, a diagnostic imaging company, located in the city of Porto Alegre Launching of Genomics e-commerce for precision medicine Grupo Fleury Awards: DOM Strategy Partners: 1 st place in the Healthcare sector that most generates value for clients Broadcast/Ag. Estado: 1 st place in Small Cap and Sustainability and 2 nd place in the General Ranking Época Negócios 360º Yearbook: 1 st place in the Healthcare sector for Corporate Governance Anefac /Fipecafi /Serasa Experian: Transparency trophy of Financial Statements ¹ NPS: Net Promoter Score 6

7 Gross Revenue Business lines performance 3Q17 vs. 3Q16 9M 2017 vs. 9M Grupo Fleury 12.7% 13.2% 1.1 PSCs % 13.5% Fleury brand 10.0% 11.3% Regional brands excl. RJ 18.2% 18.4% Regional brands RJ 12.3% 15.0% 1.2 Operations in Hospitals 17.1% 12.2% ¹ PSCs: Patient Service Centers 7

8 Gross Revenue PSCs¹ indicators PSCs Gross Revenue (R$ MM) per brand; Gross Revenue and SSS³ variation +12.2% Q16 PSCs Fleury brand Reginal brands excl. RJ Reginal brands RJ 3Q17 PSCs GR² 3Q17 vs. 3Q % +18.2% +12.3% +12.2% SSS³ 3Q17 vs. 3Q % +14.2% +13.3% +7.9% ¹ PSCs: Patient Service Centers ² GR: Gross Revenue ³ SSS: Same Store Sales 8

9 5.0 Gross Revenue PSCs¹ indicators Gross Revenue per m² (R$ thousand) % Gross Revenue per m² per brand Variation 3Q17 vs. 3Q16 Fleury -1.6% Regional brands excl. RJ +13.0% Rio de Janeiro +12.5% 3Q16 4Q16 1Q17 2Q17 3Q17 Gross Revenue per PSC (R$ thousand) -1.4% Gross Revenue per PSC¹ per brand Variation 3Q17 vs. 3Q16 3,601 3,416 3,727 3,608 3,550 Fleury -20.0% Regional brands excl. RJ +6.4% Rio de Janeiro +12.3% 3Q16 4Q16 1Q17 2Q17 3Q17 Operational efficiency indicators reflect the impact of the Expansion Plan on Fleury and Regional brands ¹ PSCs: Patient Service Centers 9

10 Deductions, Cancellations and Net Revenue Deduction + Cancellation/GB 1 (%) Deduction + Cancellations (R$ MM) Net Revenue (R$ MM) 2.7% (-15.8) -100bps 2.8% (-48.3) -101 bps +14.0% % 1, % (-11.1) 1.8% (-34.9) , Q16 3Q17 9M M Q16 3Q17 9M M 2017 Cancellations reached 1.7% in the quarter and 1.8% in 9M17. 1 GB: Gross Revenue 10

11 Cost of Services Cost of Services breakdown R$ MM 3Q17 3Q16 Variation % Net Revenue R$ MM % Net Revenue % bps Personnel and medical services % % 15.6% 48 bps General services, rentals and utilities % % 10.3% -64 bps Materials and Exam Intermediation % % 18.1% 34 bps Depreciation and Amortization % % -9.9% -109 bps General Expenses % % 53.0% 09 bps Cost of Services % % 12.7% -82 bps Cost of Services breakdown R$ MM 9M M 2016 Variation % Net Revenue R$ MM % Net Revenue % bps Personnel and medical services % % 13.7% -24 bps General services, rentals and utilities % % 8.1% -112 bps Materials and Exam Intermediation % % 15.5% 09 bps Depreciation and Amortization % % -13.9% -131 bps General Expenses % % 46.7% 08 bps Cost of Services 1, % 1, % 10.4% -251 bps 11

12 Operating Expenses Operating Expenses breakdown and Equity in Subsidiaries R$ MM 3Q17 3Q16 Variation % Net Revenue R$ MM % Net Revenue % bps G&A % % 2.1% -104 bps Depreciation and Amortization % % 29.1% 20 bps Other Operating (Income) Expenses % % -8.4% -05 bps Provision (Reversal) for Contingency (1.0) -0.2% (0.6) -0.1% 65.6% -05 bps Equity in Subsidiaries (0.4) -0.1% (0.5) -0.1% -21.0% 03 bps Operating Expenses and Subsidiaries' Share of Profits % % 5.0% -91 bps Operating Expenses breakdown and Equity in Subsidiaries R$ MM 9M M 2016 Variação % Net Revenue R$ MM % Net Revenue % bps G&A % % 6.6% -65 bps Depreciation and Amortization % % 28.8% 20 bps Other Operating (Income) Expenses % % -53.1% -56 bps Provision (Reversal) for Contingency (0.5) 0.0% % % -37 bps Equity in Subsidiaries (1.1) -0.1% (1.0) -0.1% 5.5% 01 bps Operating Expenses and Subsidiaries' Share of Profits % % 1.6% -139 bps 12

13 EBITDA (R$ MM) and Margin (%) EBITDA +17.9% +27.6% % 26.5% % 27.1% 3Q16 3Q17 9M M 2017 EBITDA EBITDA Margin Continuous effort to gain operational efficiency; 3Q17 margin impacted by 97 bps due to the Expansion Plan 13

14 Financial Result and Debt Financial Result (R$ MM) 3Q17 3Q16 Variation 9M M 2016 Variation Net financial Result (11.2) (8.7) 28.9% (40.8) (37.9) 7.6% Financial income % % Financial expenses (23.1) (39.4) -41.4% (79.0) (117.5) -32.7% Net Debt Evolution (R$ MM) Total Debt 0.9x 0.9x 0.3x x x Debentures: R$ MM FINEP: R$ MM* * Including new financing of R$50.8 million in the quarter Moody s Rating: Aa2.br / Ba2 3Q16 4Q16 1Q17 2Q17 3Q17 Net Debt Net Debt / Ebitda LTM 14

15 Income Tax Income Tax (R$ MM) and Effective Tax Rate (%) % % % 35.3% 25.8% 25.8% 3Q16 3Q17 9M M 2017 Total Income tax and social contribution Effective tax rate Effective tax rate impacted by the maximum utilization of the tax benefit from interest on shareholder s equity (ISE). The Company expects 25.8% as the effective tax rate in

16 Net Income Net Income (R$ MM) and Margin (%) +37.2% +66.4% % % 11.7% 9.8% 3Q16 3Q17 9M M 2017 Net Income Net Margin 16

17 Operating Cash Flow Cash Flow (R$ MM) 3Q17 3Q16 Variation 9M M 2016 Variation Net Income % % Items not affecting cash: % % Accounts receivables (29.5) (18.5) -59.8% (117.1) (73.7) -59.0% Suppliers (6.7) (0.5) % (5.6) % Salaries / Charges % (2.7) (4.6) 41.0% Others Assets and Liabilities % % Income tax and social contribution paid with credits (2.5) (16.4) 84.9% (29.9) (33.4) 10.5% Operating Cash Flow % % Acquisition of fixed and intangible assets (83.5) (33.6) % (194.5) (94.0) % Other Investing Activities 3.8 (23.6) 116.0% (52.7) (22.5) % Financing Activities (45.7) (73.4) 37.8% (171.5) (162.1) -5.8% Cash Flow % (0.8) % Cash Flow Adjusted by Marketable Securities % % Conversion (Operating Cash Flow / EBITDA) 104.4% 116.1% bps 85.6% 106.5% bps The average collection period reached 67 days compared to 66 in 3Q16 Acquisition of fixed and intangible assets: investments in the Expansion Plan Financing Activities: Release of R$ 50.8 million through FINEP loans (innovation projects) 17

18 CAPEX and ROIC CAPEX (R$ MM) ROIC excluding goodwill (%) % % % 32,1% 32,9% +1,213 bps 36,0% 40,3% 44,2% % 65.1% 65.7% 34.3% % 67.6% 34.3% 3Q16 3Q M M 3Q16 LTM 4Q16 LTM 1Q17 LTM 2Q17 LTM 3Q17 LTM Expansion Others¹ ¹ Includes CAPEX from equipment renewal, strategic projects, IT and infrastructure 18

19 Performance in Capital Markets Stock Performance x Ibovespa (IPO = 100 basis) FLRY3 IBOV 10.0% in 3Q % in 9 months Average Daily Trading Volume (ADTV) in R$ MM and NI ¹ in % 0.70% Shares and Market Cap 0.09% % % % % % Total Shares 314,791,538 Market Cap R$ 9.3 billion Price R$ Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 IN ADTV ¹ Negotiability Index 19

20 Shareholders Structure BradSeg¹ Physicians shareholders¹ Physicians shareholders¹ (Integritas) Free Float 16.3% 12.4% 11.9% 59.4% 24.3% Grupo Fleury ¹ Shareholders Agreement members 20

21 IR Events ate Event Location 2017 October 30 th JP Morgan: 3Q17 Breakfast São Paulo Brazil November 13 th NDR HSBC Boston USA November 14 th and 15 th Bradesco BBI CEO Forum New York USA November 20 th and 21 th Itaú BBA Latam Conference London England November 22 th Itaú BBA Edinburgh Conference Edinburgh Scotland November 23 th and 24 th NDR Merrill Lynch Paris France and London England November 27 th NDR HSBC Chicago USA November 28 th and 29 th UBS Global Emerging Markets 1:1 Conference New York USA November 30 th JP Morgan Brazil Oportunities Conference São Paulo Brazil 2018 January 8 th and 9 th Annual JP Morgan Healthcare Conference San Francisco USA January 10 th and 11 th Morgan Stanley Latin America Executive Conference Miami USA Click here to access the complete calendar. 21

22 Results 3Q17 FLRY3 October 2017