Results 2Q17 FLRY3. July 2017

Transcription

1 Results 2Q17 FLRY3 July 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 2Q16 except when stated otherwise. 2

3 Financial highlights in 2Q17 Gross Revenue of R$ million, 12.0% growth Same Store Sales (SSS) grew 10.5% Net Revenue of R$ million, 13.8% increase EBITDA R$ million (+24.1%) EBITDA margin of 25.3% (+209 bps); margin impacted by ~140 bps due to the Expansion Plan Net Income of R$ 87.9 million, an increase of 90.6% ROIC excluding goodwill reached 40.3% Company s stock split approved in June Payment of ISE 1 in the amount of R$ 58,9 million approved in July 1 ISE: Interest on shareholder s Equity 3

4 Opening of new PSCs¹ Expansion Plan: 17 new PSCs Fleury: 8 new units, of which 2 of are large units shown below a+ Paraná: 6 a+ São Paulo: 2 Weinmann: 1 Fleury Anália Franco Fleury Morumbi ¹ PSCs: Patient Service Centers 4

5 Opening of new PSCs¹ Fleury São Caetano do Sul Fleury Heitor Penteado Fleury Cerro Corá a+ Itaim Bibi a+ Água Verde Weinmann General Vitorino ¹ PSCs: Patient Service Centers 5

6 Operating highlights in 2Q17 NPS 1 reached 74.7%, an improvement of 536 bps Company of the Year Award: Modern Consumer magazine for Customer Service Excellence Weinmann: Top of Mind Award in Rio Grande do Sul 2017 Fleury brand valued at USD 206 million: 51 st place (total 320) in the Millward Brown ranking Formalization of RFP (request for proposal) for the Central Lab of the Future Project ¹ NPS: Net Promoter Score 6

7 Gross Revenue Business lines performance 2Q17 vs. 2Q16 6M 2017 vs. 6M Grupo Fleury 12.0% 13.5% 1.1 PSCs % 14.2% Fleury brand 11.2% 12.0% Regional brands excl. RJ 16.7% 18.5% Regional brands RJ 11.8% 16.4% 1.2 Operations in Hospitals 10.1% 9.8% ¹ PSCs: Patient Service Centers 7

8 Gross Revenue PSCs¹ indicators PSCs Gross Revenue (R$ MM) per brand; Gross Revenue and SSS³ variation +12.5% Q16 PSCs Fleury brand Reginal brands excl. RJ Reginal brands RJ 2Q17 PSCs GR² 2Q17 vs. 2Q % +16.7% +11.8% +12.5% SSS³ 2Q17 vs. 2Q % +14.6% +10.9% +10.5% ¹ PSCs: Patient Service Centers ² GR: Gross Revenue ³ SSS: Same Store Sales 8

9 4.8 Gross Revenue PSCs¹ indicators Gross Revenue per m² (R$ thousand) % Gross Revenue per m² per brand Variation 2Q17 vs. 2Q16 Fleury +4.6% Regional brands excl. RJ +14.6% Rio de Janeiro +13.1% 2Q16 3Q16 4Q16 1Q17 2Q17 Gross Revenue per PSC (R$ thousand) +3.5% 3,487 3,601 3,727 3,416 3,608 Gross Revenue per PSC¹ per brand Variation 2Q17 vs. 2Q16 Fleury -13.9% Regional brands excl. RJ +7.8% Rio de Janeiro +14.5% 2Q16 3Q16 4Q16 1Q17 2Q17 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) 2.8% (-16.2) -141bps 2.9% (-32.5) -102 bps +13.8% % 1, % (-23.7) , % (-9.0) 2Q16 2Q M M 2Q16 2Q M M Disregarding one time effects related to renegotiations with healthcare operators, cancellations reached 1.8% in the quarter and 2.1% in the semester 1 GB: Gross Revenue 10

11 Cost of Services Cost of Services breakdown R$ MM 2Q17 2Q16 Variation % Net Revenue R$ MM % Net Revenue % bps Personnel and medical services % % 14.6% 25 bps General services, rentals and utilities % % 7.5% bps Materials and Exam Intermediation % % 12.0% - 16 bps Depreciation and Amortization % % % bps General Expenses % % 56.8% 11 bps Cost of Services % % 9.9% -243 bps Cost of Services breakdown R$ MM M M Variation % Net Revenue R$ MM % Net Revenue % bps Personnel and medical services % % 12.7% - 62 bps General services, rentals and utilities % % 6.9% bps Materials and outsourcing % % 14.3% - 4 bps Depreciation and Amortization % % % bps General Expenses % % 43.7% 7 bps Cost of Services % % 9.2% -339 bps 11

12 Operating Expenses Operating Expenses breakdown R$ MM 2Q17 2Q16 Variation % Net Revenue R$ MM % Net Revenue % bps G&A % % 10.6% - 27 bps Deprec iation and Amortization % % 32.1% 25 bps Other Operating (Inc ome) Expenses % % % - 72 bps Provision (Reversal) for Contingenc y % % % - 17 bps Subsidiaries' share of profits (0.3) - 0.1% (0.3) - 0.1% % 2 bps Operating Expenses % % 5.6% -89 bps Operating Expenses breakdown R$ MM M M Variaç ão % Net Revenue R$ MM % Net Revenue % bps G&A % % 9.2% - 45 bps Deprec iation and Amortization % % 28.6% 19 bps Other Operating (Inc ome) Expenses % % % - 83 bps Provision (Reversal) for Contingenc y % % % - 54 bps Subsidiaries' share of profits (0.7) - 0.1% (0.6) - 0.1% 27.5% - 1 bps Operating Expenses % % -0.1% -164 bps 12

13 EBITDA (R$ MM) and Margin (%) EBITDA +24.1% +33.2% % 25.3% % 27.4% 2Q16 2Q M M EBITDA EBITDA Margin Continuous effort to gain operational efficiency; 2Q17 margin impacted by ~140 bps due to the Expansion Plan 13

14 Financial Result and Debt Financial Result (R$ MM) 2Q17 2Q16 Variation M M Variation Net financial Result (12.7) (15.0) -15.5% (29.6) (29.2) 1.3% Financial income % % Financial expenses (24.7) (40.3) -38.7% (55.9) (78.0) -28.3% Net Debt Evolution (R$ MM) Total Debt Debentures: R$ MM FINEP: R$ 94.5 MM FINAME: R$ 13.4 MM Moody s Rating: Aa2.br / Ba2 2Q16 3Q16 4Q16 1Q17 2Q17 Net Debt Net Debt / Ebitda LTM 14

15 Income Tax Income Tax (R$ MM) and Effective Tax Rate (%) % +11.5% % 36.8% 25.8% 16.4% 2Q16 2Q M M 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 (%) +90.6% +86.7% % % 8.8% 8.8% 2Q16 2Q M M Net Income Net Margin 16

17 Operating Cash Flow Cash Flow (R$ MM) 2Q17 2Q16 Variation M M Variation Net Income % % Items not affecting cash: % % Accounts receivables % (87.6) (55.2) -58.7% Suppliers % % Salaries / Charges % (14.0) (12.6) -11.3% Others Assets and Liabilities (11.9) % % Income tax and social contribution paid with credits (15.3) (10.8) -41.7% (27.4) (16.9) -61.6% Operating Cash Flow % % Acquisition of fixed and intangible assets (54.7) (35.3) -54.8% (110.9) (60.4) -83.7% Other Investing Activities (81.8) (8.0) % (56.5) % Financing Activities (14.6) (50.1) 70.9% (125.8) (88.7) -41.9% Cash Flow % (45.9) % Cash Flow Adjusted by Marketable Securities % % Conversion (Operating Cash Flow / EBITDA) 106.6% 137.6% bps 76% 101% bps Reduction of 2 days in the average collection period that reached 66 days compared to 68 in 2Q16 Acquisition of fixed and intangible assets: investments in the Expansion Plan Financing Activies: reduction in interest expenses and gross debt 17

18 CAPEX and ROIC CAPEX (R$ MM) ROIC excluding goodwill (%) % bps 40.3% +92.3% % 27.2% 32.1% 32.9% 36.0% % % 26.1% 73.9% 33.5% 69.0% 34.3% 2Q16 2Q M M 2Q16 LTM 3Q16 LTM 4Q16 LTM 1Q17 LTM 2Q17 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) Stock Split 06/27 FLRY3 IBOV 26.7% in 2Q % in 6M 2017 Average Daily Trading Volume (ADTV) in R$ MM and NI ¹ in % 0.09% % % % % % 28.6 Shares and Market Cap Total Shares 314,791,538 Market Cap R$ 8.4 billion Price R$ Q16 2Q16 3Q16 4Q16 1Q17 2Q17 IN ADTV ¹ Negotiability Index 19

20 Subsequent Event: Distribution of Interest on Shareholder s Equity (ISE) The Board of Directors approved on July 27 th, 2017, the distribution of R$ 58.9 million in the form of ISE, representing R$ 0,1872 per share The ISE will be paid based on the shareholders position on August 1 st, 2017 The amount will be available to the Company s shareholders on August 15 th,

21 IR Events Grupo Fleury s management will be present in the following events in the next months: July 31 th Date Event Location 2Q17 Results breakfast with investors Bank of America Merrill Lynch São Paulo Brazil August 16 th and 17 th 18 th Santander Annual Conference São Paulo Brazil August 22 nd J.P. Morgan BZ Consumer & Healthcare Check-up São Paulo Brazil August 30 th NDR Santander Santiago Chile September 27 th and 28 th NDR SP and RJ Brazil October 5 th Fleury Investor Day São Paulo Brazil October 27 th Results Conference call 3Q17 São Paulo Brazil November 14 th and 15 th BBI 7 th Annual CEO Forum New York USA November 20 th and 21 th 10 th Annual Itaú BBA LatAm Conference London England To access the complete calendar: 21

22 Results 2Q17 FLRY3 July 2017