1Q18 Earnings Release Resultados 4T12

Transcription

1 : Revenues up 5.4%, with net adds of 29 thousand lives in the quarter, from all three segments. Lower dental care ratio expands adjusted Ebitda 17.7%, with margin expansion of 300 bps to 28.7%. Net income 18.9% higher YoY. Net cash of R$522 million. Sao Paulo, April 25 th, OdontoPrev (B3; Bloomberg: ODPV3 BZ; Reuters: ODPV3.SA), the largest dental benefits company in Latin America, announced today its consolidated results for the first quarter of 2018 (). The Company s financial and operational data are presented based on consolidated numbers and in thousands of reais, pursuant to the Brazilian Corporate Law, the accounting rules of the National Health Agency (ANS) and the accounting principles of the International Financial Reporting Standards (IFRS). All information comparisons refer to variations between, 4Q17 1Q17, except otherwise stated. Key Metrics Net Revenue Average Ticket Dental Care Ratio Adjusted EBITDA EBITDA Margin R$ 370,389 R$ % R$106, % Net Cash Net Income Net Margin Annualized ROE Total Capital R$521,858 R$81, % 31% 531,294,792 shares Growth Net revenue increased 5.4% in. We highlight the performance of the non-corporate plans, which revenues increased 10.8% YoY. Consolidated average ticket of R$20.53, was 5.6% higher over 1Q17. Number of beneficiaries surpassed 6.3 million, with net additions of 29 thousand lives in the quarter, versus a net loss of 54 thousand lives in 1Q17, with 126 thousand new members in the last twelve months, versus a net loss of 142 thousand lives in the previous period. New ISS rate in In, the Company accounted a new ISS tax rate, in accordance with the complementary law 157/16. The net ISS tax rate was approximately 3% in January and February, reflecting the average tax estimated within the municipalities where the Company operates, and 2% in March, after liminal from STF (Supreme Court) to suspend the effects from the complementary law. Efficiency and value creation In, the cost of services came down 1.7%, resulting in a dental care ratio of 41.9%, lower than 1Q17 dental care ratio of 45.0%. Bad debt was 3.6% of revenues, versus 4.6% in 1Q17. The adjusted EBITDA reached R$106 milion, 17.7% higher in relation to 1Q17, with adjusted EBITDA margin expansion of 3.0 p.p. to 28.7% in the quarter. In the last twelve months the adjusted EBITDA reached R$368 million, 21.6% higher than the same period, with a margin of 25.2%. Results and Shareholder remuneration The net income was R$82 million, an increase of 18.9% compared to 1Q17, and 19.1% higher in the last twelve months. On March 31, 2018, OdontoPrev registered a net cash position of R$522 million, without any leverage. Due to solvency requirements for the acquisition of Odonto System, there is no cash dividends proposal this quarter, besides the Interest On Capital already paid. Key Metrics (R$000, except otherwise specified) 1Q17 Δ% 4Q17¹ Δ% APR17-MAR18¹ APR16-MAR17 Δ% Net operating revenue (NOR) 370, , , ,456,212 1,386, Average ticket (R$/member/month) Number of members 6,338,350 6,212, ,309, ,338,350 6,212, Cost of services 155, , , , , Dental care ratio (%) p.p p.p p.p. SG&A ratio (%) p.p p.p p.p. Allowance for doubtful receivables (%) p.p p.p p.p. Adjusted EBITDA 106,349 90, , , , Adjusted EBITDA margin (%) p.p p.p p.p. Net income 81,966 68, , , , Net Cash 521, , , , , ¹ Excludes Bradesco Dental and OdontoPrev INSS 1 / 38

2 Index Page Income Statement 3 Key metrics per segment 4 OdontoPrev commercial and financial performance 5 to 20 Operating revenue 5 e 6 Average ticket 7 Membership 8 Figures by business segment 9 to 11 Net Revenues, average ticket and membership - Corporate Segment 9 Net Revenues, average ticket and membership - Individual Plans Segment 10 Net Revenues, average ticket and membership - SME Segment 11 Brasildental 12 Costs of Services (Dental care ratio) 13 & 14 Selling expenses 15 Administrative expenses 16 Allowance for doubtful receivables 17 EBITDA and adjusted EBITDA 18 Financial income 19 Income and social contribution taxes 20 Net income 20 Cash flow 21 & 22 Capex 23 Statement of added value 24 Stock options 24 Shareholder remuneration 25 Capital Markets 26 & 27 Upcoming IR events 28 Conference calls 29 Attachments 31 to 38 This material was prepared by Odontoprev S.A. ( OdontoPrev or the Company ) and may include forward-looking statements. Such statements are based on assumptions and analyses made by the Company based on its experience and the economic environment and on market conditions and expected future events, many of which are beyond the Company s control. Important factors which can lead to significant differences between real results and these forward-looking statements include the business strategy of the Company, Brazilian and international economic conditions, technology, financial strategies, developments in the sector, conditions of the financial markets, uncertainty regarding the results of the Company s future operations, plans, objectives, expectations, intentions, and other factors. Because of these factors, the real results of the Company may differ significantly from those expressed or implied in forward-looking statements. The information and opinions contained herein should not be interpreted as recommendations for potential investors, and no decision regarding investment should be based on the assumption that this information is accurate, current, or complete. 2 / 38

3 Income Statement OdontoPrev performs a regulated activity, and as such must present interim financial statements based on the Accounting Rules of the ANS, including accounting lines with names differing from those commonly used by companies from other sectors. OdontoPrev s consolidated data on and 1Q17, include Rede Dental; DentalCorp and Care Plus (incorporated in 2008); Sepao; Prontodente and OdontoServ (incorporated in December of 2009); Bradesco Dental (incorporated in 2010), Easy Software; Adcon; Dental Partner; Clidec; Clidec Participações; OdontoPrev Serviços, Papaiz, Brasildental and Odontored (Mexico). R$000 1Q17 (+) Payments net 389, ,850 (+) Sales of services and products 3,620 2,702 (+) Odontored 2,178 1,888 Gross operating revenue 395, ,440 (-) Direct taxes on dental care operations 22,475 14,804 (-) Taxes on sales of services and products 2,325 2,175 Net operating revenue 370, ,461 (-) Cost of services 143, ,146 Indemnifiable claims, net 145, ,450 Odontored Payroll charges on services 3 9,794 Dental materials 1,859 1,709 Other operating revenues (expenses) 7,742 1,774 Incurred but Not Reported Provision (IBNR) -11,436-5,999 Odontored - Technical reserves Gross profit 226, ,315 (-) Selling expenses 41,827 34,868 (+) Other operating revenues (-) General and Administrative Expenses 54,585 50,911 G&A (adjusted at EBITDA base) 51,469 48,913 Personnel 30,864 27,695 Third parties services 6,779 5,881 Rentals and occupancy 6,690 10,152 Taxes and fees 2,935 3,106 Publicity and advertising 2,152 1,479 Others 2, G&A (not adjusted at EBITDA base) 3,116 1,998 Depreciation and amortization 2,438 1,998 Acquisitions (-) Other operating expenses 20,107 23,009 Stock options plan 2,593 2,634 Allowance for doubtful receivables 13,310 16,044 Profit sharing 4,204 4,331 (+) Equity in subsidiaries 1, Income before financial income (expenses) and taxes 111,777 91,795 (+) Net financial income 7,132 7,501 (+) Financial income 9,026 15,672 (-) Financial expenses 1,894 8,171 Bank fees Monetary restatement of provision of legal contingencies 145 7,165 Monetary restatement of social security reimbursement Other financial expenses Income before taxes 118,909 99,296 (-) Income and social contribution tax 37,074 30,264 (-) Current 34,098 37,415 (-) Deferred income and social contribution tax 2,976-7,151 Net income before participation of minoritary shareholders 81,835 69,032 (+) Participation of minoritary shareholders Net income 81,966 68,964 3 / 38

4 Key metrics per segment The following tables exclude Bradesco Dental and OdontoPrev INSS effects in the cost of services, dental care ratio and contribution margin in 2Q17, 3Q17 and 4Q17. Corporate 1Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Average ticket (R$/member/month) (A/B) / # of months Final number of members (000) 4,912 4,787 4,702 4,696 4,696 4,649 4,621 4,670 4,704 4,704 4,712 Average number of members (000) (B) 4,957 4,850 4,745 4,699 4,850 4,673 4,635 4,645 4,687 4,700 4,708 (+) Payments, net (R$ 000) (A) 241, , , , , , , , , , ,949 (-) Direct taxes on dental care operations (R$ 000) 9,114 7,333 6,806 8,056 31,309 8,417 7,976 7,448 7,579 31,420 12,805 Net operating revenue - NOR (R$ 000) 232, , , , , , , , , , ,144 Cost of services (R$ 000) 119, , , , , , , , , , ,386 Dental care ratio (% Sales) Cost of Services / member / month (R$) Selling expenses (R$ 000) 12,879 13,071 13,011 13,117 52,078 13,016 12,294 13,501 13,162 51,973 17,742 Selling expenses (% Sales) Contribution Margin (R$ 000) 100,864 90,589 78,336 84, ,656 94,975 93,021 94, , , ,016 Contribution Margin (% Sales) Individual Plans 1Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Average ticket (R$/member/month) (A/B) / # of months Final number of members (000) Average number of members (000) (B) (+) Payments, net (R$ 000) (A) 55,715 62,163 67,287 71, ,690 74,782 75,167 71,786 79, ,399 79,380 (-) Direct taxes on dental care operations (R$ 000) 2,957 3,293 3,544 3,779 13,573 4,093 4,149 3,662 3,942 15,846 5,575 Net operating revenue - NOR (R$ 000) 52,758 58,870 63,743 67, ,117 70,689 71,018 68,124 75, ,553 73,805 Cost of services (R$ 000) 11,687 14,596 17,411 17,660 61,354 16,952 19,034 21,666 20,991 78,643 20,018 Dental care ratio (% Sales) Cost of Services / member / month (R$) Selling expenses (R$ 000) 12,220 13,060 11,014 14,670 50,964 15,832 17,246 16,730 17,952 67,759 17,695 Selling expenses (% Sales) Contribution Margin (R$ 000) 28,851 31,214 35,318 35, ,799 37,905 34,739 29,728 36, ,151 36,092 Contribution Margin (% Sales) SME 1Q16 2Q16 3Q16 4Q Q17 2Q17 3Q17 4Q Average ticket (R$/member/month) (A/B) / # of months Final number of members (000) Average number of members (000) (B) (+) Payments, net (R$ 000) (A) 46,070 47,486 49,421 52, ,165 53,200 55,745 58,483 61, ,639 65,062 (-) Direct taxes on dental care operations (R$ 000) 1,999 1,818 1,824 2,136 7,777 2,294 2,281 2,214 2,363 9,152 4,095 Net operating revenue - NOR (R$ 000) 44,071 45,668 47,597 50, ,388 50,906 53,464 56,269 58, ,487 60,967 Cost of services (R$ 000) 18,256 20,451 23,712 22,844 85,263 21,313 23,096 24,688 23,928 93,024 22,531 Dental care ratio (% Sales) Cost of Services / member / month (R$) Selling expenses (R$ 000) 6,081 5,860 6,067 5,516 23,524 5,981 6,377 7,265 7,039 26,661 6,260 Selling expenses (% Sales) Contribution Margin (R$ 000) 19,734 19,357 17,818 21,692 78,601 23,612 23,992 24,316 27,881 99,802 32,176 Contribution Margin (% Sales) / 38

5 Operating revenue Operational and financial performance The net operating revenue (NOR) reached R$370,389 thousand in, 5.4% higher in relation to 1Q17, of which R$12,643 thousand from Brasildental. In the last twelve months, net revenues reached R$1,456,212 thousand, a 5.0% expansion YoY, of which R$47,424 thousand from Brasildental. R$ million Net operating revenue (NOR) 1Q17 APR17-MAR18 APR16-MAR17 Δ% R$ 000 % Sales R$ 000 % Sales R$ 000 % Sales R$ 000 % Sales (+) Payments, net 389, , ,509, ,433, (+) Sales of services and products 3, , , , (+) Odontored 2, , , , Gross operating revenue (GOR) 395, , ,529, ,449, (-) Direct taxes on dental care operations 22, , , , (-) Taxes on sales of services and products 2, , , , Net operating revenue (NOR) 370, , ,456, ,386, Net Revenues Δ% 1,070 1,156 1,250 1,365 1,437 1, % APR17 MAR18 In, the SME and Individual Plans segments represented 37% of total revenues, versus 35% in 1Q17, with a 10.8% growth. R$ million Revenues evolution per segment R$ million 1Q17 5.4% +4.4% % +2.1% % 20% 15% 63% 20% 17% 1Q17 1Q17 Corporate SME Individual Plans 5 / 38

6 The annual incremental revenue of the SME segment has been consecutively positive since 1Q15. R$ million 36 Incremental revenue per segment (YoY) Q Q Q Q Q Q Q Q Individual Plans SME Corporate APR17-MAR18 Revenues, average ticket and contribution margin per segment AVERAGE TICKET (R$ / member / month) APR17 - MAR18 Contribution Margin 39 Individual Plans Revenues APR17-MAR18 R$289 M (+10.6% YoY) 48% 21 SME Revenues APR17-MAR18 R$230 M (+18.2% YoY) 47% 17 Corporate Revenues APR17-MAR18 R$927 M (+0.2% YoY) 42% ¹ M: million High Low 6 / 38

7 (i) Average Ticket Average ticket calculation 1Q17 Δ% APR17-MAR18 APR6-MAR17 Δ% Payments, net R$000 (A) 389, , ,509,115 1,433, Average number of members (B) 6,324 6, ,275 6, Average ticket (R$/live/month) (A/B)/nº of months Average ticket calculation (ex-brasildental portfolio) 1Q17 Δ% APR17-MAR18 APR16-MAR17 Δ% Payments, net R$000 ex-brasildental porfolio (A) 378, , ,467,136 1,403, Average number of members ex-brasildental portfolio (B) 5,797 5, ,796 5, Average ticket (R$/live/month) (A/B)/# of months The average ticket came from R$19.44 per member/per month in 1Q17 to R$20.53 in, a growth of 5.6%, due to corporate contracts readjustments and the mix of the period. Excluding the Brasildental portfolio, and the correspondent net payments, the average ticket would have been R$21.75, 6.8% higher than 1Q17. Quarterly average ticket (R$/member/month) Quarterly average ticket ex-bb (R$/member/month) Q17 2Q17 3Q17 4T17 1Q17 2Q17 3Q17 4Q17 Average Ticket per segment (R$/member/month) +8.2% 14.5% % Q17 1Q17 1Q17 Corporate SME Individual Plans 7 / 38

8 (ii) Membership OdontoPrev reached 6,338,350 members in, with net additions of 29,054 new lives in the quarter. In the last twelve months, there were net additions of 125,713 new lives. Thousand lives +9 net additions per segment Corporate PME Individual Plans Portfolio 4Q15 Quarterly net additions 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Portfolio Corporate 5,002,973-91, ,536-85,582-5,713-46,880-28,144 48,555 34,067 8,600 4,712,262 SME 851,048 5,889 5,682 12,689 28,243 8, ,741 20,012 11, ,974 OdontoPrev 138,513-2, , , ,120-6, ,582 Bradesco 705,905 7,443 4,841 6,922-6,885-2,547 5,079 11,484-1,150 17, ,980 BB 6,630 1,247 1,299 6,449 38,179 11,694-1,759 19,351 20, ,412 Individual Plans 555,003 31,112 45,758 18,225 17,246-15,650 5,140 6,429-20,782 8, ,114 Retailers 321,619-6,291 36,939 2,230 8,274-9,657 5,895 7,039-28,102-14, ,590 Bradesco 210,614 36,734 10,677 18,997 10,167-4, ,778 12, ,890 BB 22, ,858-3,002-1,195-1, ,237 15,098 10,826 39,634 Total 6,409,024-54,077-73,096-54,668 39,776-54,322-22,363 85,725 33,297 29,054 6,338,350 Quarterly net additions 1Q Thousand lives Q15 1Q16 1Q17 8 / 38

9 Figures by business segment Net Revenues - Corporate segment The Corporate segment revenues totaled R$232,144 thousand in, a 2.1% growth YoY, best performance of the last seven quarters. In the last twelve months, revenues reached R$926,808 thousand, higher than R$924,540 thousand in the previous year. Corporate segment quarterly revenues increase evolution +2.1% +0.6% +1.2% -0.9% -1.4% -2.3% -2.7% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Corporate 1Q17 Δ% APR17-MAR18 APR16-MAR17 Δ% (+) Payments, net 244, , , , (-) Direct taxes on dental care operations 12,805 8, ,807 30, Net operating revenue¹ (NOR) 232, , , , ¹ excluding Sale of Services and Products (i) Average Ticket - Corporate segment In the Corporate segment average ticket reached R$17.34, 3.1% higher than 1Q17. Average Ticket - Corporate 1Q17 Δ% APR17-MAR18 APR16-MAR17 Δ% Payments, net R$000 (A) 244, , , , Average number of members (B) 4,708 4, ,681 4, Average ticket (R$/member/month) (A/B) / # of months (ii) Membership - Corporate segment The Corporate segment had 9 thousand net additions in the quarter, in comparison to net loss of 47 thousand lives in 1Q17. In the last twelve months the segment added 63 thousand lives, versus net loss of 263 thousand lives the period before. Thousand lives -47 Net additions - Corporate Q17 APR16- APR17- MAR17 MAR18 9 / 38

10 Net Revenues Individual Plans The individual plans revenues increased 4.4% YoY, totaling R$73,805 thousand in. In the last twelve momnths, net revenues reached R$288,670 thousand, a 10.6% increase over the previous period. Individual Plans 1Q17 Δ% APR17-MAR18 APR16-MAR17 Δ% (+) Payments, net 79,380 74, , , (-) Direct taxes on dental care operations 5,575 4, ,328 14, Net operating revenue¹ (NOR) 73,805 70, , , ¹ excluding Sale of Services and Products R$ million Individual Plans revenues evolution Since 2014, the individual plans segment revenues grew 99% APR17- MAR18 (i) Average Ticket Individual Plans In, individual plans average ticket was R$40.91, a 8.2% increase over 1Q17. In the last twelve months, it was R$39.15, a 5.4% growth. Average Ticket - Individual plans 1Q17 Δ% APR17-MAR18 APR16-MAR17 Δ% Payments, net R$000 (A) 79,380 74, , , Average number of members (B) Average ticket (R$/member/month) (A/B) / # of months (ii) Membership Individual Plans The individual plans segment represents 10% of total portfolio, with 651 thousand members. The segment added 9 thousand lives in the quarter, due to the banking channels. 10 / 38

11 Net Revenues - SME The SME revenues increased 19.8% YoY, totaling R$60,967 thousand in the quarter. In the last twelve months, net revenues reached R$229,548 thousand, a 18.2% increase over the previous period. SME 1Q17 Δ% APR17-MAR18 APR16-MAR17 Δ% (+) Payments, net 65,062 53, , , (-) Direct taxes on dental care operations 4,095 2, ,953 8, Net operating revenue¹ (NOR) 60,967 50, , , ¹ excluding Sale of Services and Products SME revenues evolution R$ million Since 2014, SME revenues grew 65.1% APR17- MAR18 (i) Average Ticket - SME In 4Q17, SME average ticket reached R$22.38, a 14.5% increase YoY and best annual increase, reflecting the readjustments made in February In the last twelve months, the SME average ticket was R$21.24, a 11.4% increase over the previous year. Average Ticket - SME 1Q17 Δ% APR17-MAR18 APR16-MAR17 Δ% Payments, net R$000 (A) 65,062 53, , , Average number of members (B) Average ticket (R$/member/month) (A/B) / # of months (ii) Membership - SME The SME segment registered net additions of 12 thousand lives in, 19 th consecutive quarter of growth, totaling 63 thousand new lives in the last twelve months. The segment counts with the bank channels as the majority of its lives. We highlight the Bradesco channel, which added 18 thousand lives in the quarter. In, the SME portfolio reached 975 thousand lives. 11 / 38

12 Brasildental Brasildental portfolio breakdown 1Q17 4Q17 QoQ YoY Members % Members % Members % Members % Members % Corporate 349,008 81% 391,199 75% 386,862 73% -4,337-1% 37,854 11% SME 65,498 15% 103,132 20% 103,412 20% 280 0% 37,914 58% Individual Plans 15,493 4% 28,808 6% 39,634 7% 10,826 38% 24, % Total 429, % 523, % 529, % 6,769 1% 99,909 23% Breakdown Brasildental reached 530 thousand members, a 23% YoY growth, or 100 thousand new lives, due to the corporate and SME segments. Thousand lives 430 4% 15% +23% 530 7% 20% Corporate SME 81% 73% Individual Plans 1Q17 (R$000, except otherwise specified) 1Q17 % 4Q17 % Net operating revenue¹ (NOR) 25,305 16, ,173 9 Cost of services¹ 11,183 8, ,774 4 SG&A 7,098 4, , Selling expenses 3,096 1, ,841 9 Administrative expenses (G&A) 4,003 2, , Other operating revenues Allowance for doubtful receivables Profit sharing EBITDA 6,208 2, , EBITDA margin (%) p.p p.p. Net income 4,348 1, , ¹ Reclassifies the reducing effect of the co-responsability between OdontoPrev and Brasildental. Brasildental: Quarterly adjusted EBITDA evolution 23.3% 24.5% 15.9% % 1.8 9,4% In, Brasildental EBITDA reached R$6.2 million, 130% higher than 1Q17, with 24.5% margin, 8.6 p.p. above 15.9% in 1Q17. 1Q17 2Q17 3Q17 4Q17 R$ million % Sales 12 / 38

13 Cost of services (dental care ratio) 1Q17 Δ% p.p. APR17-MAR18¹ APR16-MAR17 R$ 000 % Sales R$ 000 % Sales Sales R$ 000 % Sales R$ 000 % Sales Cost of services (ex IBNR) 155, , , , Indemnifiable claims, net 145, , , , Payroll charges on services , , , Dental materials 1, , , , Other operating expenses 7, , , , Odontored , ¹ Excludes Bradesco Dental and OdontoPrev INSS Cost of services (ex IBNR) and dental loss ratio (% Sales) Δ% p.p. Sales For comparison purposes, the IBNR Provision (Incurred but not Reported) and technical reserves (Odontored), approved by ANS, was excluded from the Cost of Services. In there was a reversion of IBNR and technical reserves of R$11,360 thousand, as compared to a reversion of R$5,917 thousand in 1Q17. In, the cost of services represented 41.9% of revenues, 3.1 p.p. below the 45.0% of 1Q17 and 2.2 p.p. lower than 44.1% in 4Q17. In the last twelve months, dental loss ratio was 45.0% of revenues, 4.0 p.p. below the 49.0% of registered in the previous period Quarterly and LTM Cost of Services (% Sales) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q¹ 3Q¹ 4Q¹ 1Q¹ Quarterly LTM ¹ Excludes Bradesco Dental and OdontoPrev INSS effects 13 / 38

14 Cost of service and Dental Care Ratio per segment¹ Corporate SME Individual Plans 1Q17 Δ% 1Q17 Δ% 1Q17 Δ% Cost of services (R$ 000) (A) 112, , ,531 21, ,018 16, Dental care ratio (% Sales) p.p p.p p.p. Average number of members (B) 4,708 4, Cost of services / member / month (A/B)/ # of months Cost of service and Dental Care Ratio per segment¹ APR17-MAR18 APR16-MAR17 Δ% APR17-MAR18 APR16-MAR17 Δ% APR17-MAR18 APR16-MAR17 Δ% Cost of services (R$ 000) (A) 477, , ,242 88, ,710 66, Dental care ratio (% Sales) p.p p.p p.p. Average number of members (B) 4,681 4, Cost of services / member / month (A/B)/ # of months ¹ Excludes Bradesco Dental and OdontoPrev INSS Corporate SME Individual Plans In, DCR showed a 4.1 p.p. decrease in corporate segment and 4.9 p.p. in SME. In the individual plans segment, DCR had a 3.1 p.p. increase. In the last twelve months, the DCR came down in the corporate segment from 56.6% to 51.5%, and SME from 45.5% to 41.1%. In the individual plans segment, DCR showed an increase from 25.5% to 28.3%. Cost of Services / member / month (R$) and DCR - Corporate % % % % 48.4% 1Q17 2Q17¹ 3Q17¹ R$ million 4Q17¹ DCR(%) Cost of Services / member / month (R$) and DCR Individual Plans % % 26.8% 27.1% 24.0% 1Q17 2Q17¹ 3Q17¹ 4Q17¹ R$ million DCR(%) Cost of Services / member / month (R$) and DCR - SME % 43.2% 43.9% 40.7% % 1Q17 2Q17¹ R$ million 3Q17¹ 4Q17¹ DCR(%) ¹ Excludes Bradesco Dental and OdontoPrev INSS 14 / 38

15 Selling expenses Δ% p.p. APR17- APR16- Δ% p.p. (R$000) % Sales 1Q17 % Sales % Sales % Sales NOR MAR18 MAR17 NOR Selling expenses 41, , , , The selling expenses reached 11.3% of revenues in, 1.4 p.p. higher than 1Q17 and 1.0 p.p. in relation to 4Q17. In the last twelve months, reached 10.5%, 1.1 p.p. higher in relation to the same period of previous year. Selling expenses per segment Corporate SME Individual Plans 1Q17 Δ% 1Q17 Δ% 1Q17 Δ% Selling expenses (R$ 000) 17,742 13, ,260 5, ,695 15, Selling expenses (% Sales) p.p p.p p.p. In, selling expenses showed an increase in all three segments. Selling expenses per segment Corporate SME Individual Plans APR17-MAR18 APR16-MAR17 Δ% APR17-MAR18 APR16-MAR17 Δ% APR17-MAR18 APR16-MAR17 Δ% Selling expenses (R$ 000) 56,698 52, ,941 23, ,622 54, Selling expenses (% Sales) p.p p.p p.p. 15 / 38

16 Administrative expenses (G&A) 1Q17 Δ% p.p. APR17-MAR18¹ APR16-MAR17 Δ% p.p. R$ 000 % Sales R$ 000 % Sales Sales R$ 000 % Sales R$ 000 % Sales Sales Personnel 30, , , , Third parties services 6, , , , Rentals and occupancy 6, , , , Taxes and fees 2, , , , Publicity and advertising 2, , , , Others 2, , , G&A (not adjusted at EBITDA base) 51, , , , Depreciation and amortization 2, , , , Acquisitions , G&A (not adjusted at EBITDA base) 3, , , , Total administrative expenses (G&A) 54, , , , ¹ Excludes Bradesco Dental and OdontoPrev INSS G&A (included in the adjusted EBITDA base) The administrative expenses were R$51,469 thousand in (13.9% of Sales), versus R$48,913 thousand in 1Q17 (13.9% of Sales). In the last twelve months, were R$218,626 thousand (15.0% of Sales). G&A (% Sales) Personnel Others # of employees 1, , ,588 1, , , ¹ 1,589 ¹ Excludes Bradesco Dental and OdontoPrev INSS 16 / 38

17 Allowance for doubtful receivables The Allowance for doubtful receivables totaled R$13,310 thousand (3.6% of Sales) in, lower than R$16,044 thousand (4.6% of Sales) in 1Q17, 1.0 p.p. below and lower than R$15,667 thousand (4.2% of Sales) in 4Q17. In the last twelve months, it reached R$52,311 thousand (3.6% of Sales), lower than R$63,191 thousand (4.6% of Sales) of the same period of previous year. The allowance for doubtful receivables is calculated based on historical losses of the Company. Each month OdontoPrev accrues over each type of accounts receivable, due or not, according to CPC 38/IAS 39. Allowance for doubtful receivables 1Q17 Δ% APR17- APR16- MAR18 MAR17 Δ% R$ ,310 16, ,311 63, % Sales p.p p.p. Allowance for doubtful receivables R$ million and % Sales % 4.1% % % % % % % 3.6% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 R$ million % Sales 17 / 38

18 EBITDA and Adjusted EBITDA 1Q17 Δ% p.p. APR17-MAR18¹ APR16-MAR17 Δ% p.p. Y/Y % R$ 000 % Sales R$ 000 % Sales Sales R$ 000 % Sales R$ 000 % Sales Sales Y/Y % Net Income 81, , , , (+) Income tax 34, , , , (+) Social contribution tax 2, , , , (-) Net financial income 9, , , , (+) Financial expenses 1, , , , (+) Stock option 2, , , , (-) Participation of minoritary shareholders (+) Depreciation and amortization 2, , , , (-) Equity in subsidiaries 1, , , EBITDA 115, , , , (+/-) Incurred But Not Reported Provision - IBNR -11, , , , Odontored - Technical reserves (+) Brasildental EBITDA Pro Forma 1, , , (+) Acquisitions , Adjusted EBITDA 106, , , , ¹ Excludes Bradesco Dental and OdontoPrev INSS The adjusted EBITDA reached R$106,349 thousand in, 17.7% higher than 1Q17, with margin expansion to 28.7%, 3.0 p.p. above the 25.7% in 1Q17. In the last twelve months, the adjusted EBITDA reached R$367,674 thousand, 21.6% higher than the previous period, with a margin of 25.2%. Adjusted EBITDA R$ million and % Sales % % % 26.4% 26.2% 24.5% 25.2% 25.7% 22.0% ¹ APR17 1Q17 MAR18¹ ¹ Excludes Bradesco Dental and OdontoPrev INSS 18 / 38

19 Financial income 1Q17 APR17-MAR18¹ APR16-MAR17 Δ% Δ% R$ 000 % Sales R$ 000 % Sales R$ 000 % Sales R$ 000 % Sales Net financial income 7, , , , (+) Financial income 9, , , , (-) Financial expenses 1, , , , (-) Bank fees , , (-) Monetary restatement of legal provisions 145-7, , , (-) Monetary restatement of social security reimbursement (-) Others financials expenses , ¹ Excludes Bradesco Dental and OdontoPrev INSS The net financial result was R$7,132 thousand (1.9% of Sales) in, in relation to R$7,501 thousand (2.1% of Sales) in 1Q17. OdontoPrev s financial assets are comprised of an exclusive mutual fund and time deposits of prime institutions, almost all of them 100% liquid. R$ million Net Cash ¹ ¹ Includes R$121.4 million dedicated to ANS 19 / 38

20 Income and social contribution taxes 1Q17 APR17-MAR18¹ APR16-MAR17 Δ% Δ% R$ 000 % Sales R$ 000 % Sales R$ 000 % Sales R$ 000 % Sales Taxes 37, , , , (-) Current income and social contribution taxes 34, , , , (-) Deferred income and social contribution taxes 2, , , , Effective tax rate (R$000) 1Q17 APR17-MAR18¹ APR16-MAR17 Income before taxes and profit sharing 123, , , ,219 (-) Profit sharing 4,204 4,331 16,022 10,424 (=) Tax base 118,909 99, , ,796 Taxes (-) Current income and social contribution taxes 34,098 37, , ,546 (-) Deferred income and social contribution taxes 2,976-7,151-9,921-29,925 Total taxes 37,074 30, ,289 89,621 Current effective tax rate 28.7% 37.7% 35.3% 39.1% ¹ Excludes Bradesco Dental and OdontoPrev INSS Net Income Net income reached R$81,966 thousand in, 18.9% above 1Q17. In the last twelve months, net income was R$257,573 thousand, 19.1% above the previous period, with a 31% annualized ROE. R$ million Net Income % % 34% 32% 30% 31% 18.9% ¹ APR17 1Q17 ROE MAR18¹ ¹ Excludes Bradesco Dental and OdontoPrev INSS 20 / 38

21 Cash flow (R$000) 1Q17 CASH FLOW FROM OPERATIONAL ACTIVITIES Net income for the period 81,835 69,032 Reconciliation of net income with the cash generated by operations 51,082 67, , ,892 Decrease (increase) in operational assets -19,302-12,204 Increase (decrease) in operational liabilities -50,970-28,063 NET CASH PROVIDED BY (USED IN) OPERATIONAL ACTIVITIES 62,645 96,625 CASH FLOW FROM INVESTING ACTIVITIES Acquisition of property and equipment System development, software licenses and other -5,252-1,526 NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES -5,758-3,615 CASH FLOW FROM FINANCING ACTIVITIES Interest on capital paid -11,945-12,197 Treasury shares -32,753 0 Stock Options Program vesting reimbursements 1,527 0 NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES -43,171-12,197 INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 13,716 80,813 Cash, Cash Equivalents and short-term investiments Balance at the beginning of period 508, ,612 Balance at the end of period 521, ,425 INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 13,716 80, / 38

22 Cash Flow 16.9% of Sales Net Cash DEC17 + Cash - Capex - Generation Cash Dividends + Stock = Options² Net Cash MAR18¹ Since the IPO in 2006, OdontoPrev has presented a cash generation of R$2,306.4 million, and paid R$1,994.9 million to shareholders. At the end of March 2018, the net cash position was of R$521.9 million, without any leverage. Cash flow since the 2006 IPO R$ million 22.5% of Sales , Share buyback Capital reduction -1,617.4 Cash dividends , Net Cash DEC = Cash Generation Acquisitions Capex Shareholder Remuneration Stock Options² Net Cash MAR18¹ ¹ Includes R$121.4 million dedicated to ANS ² Share repurchase related to Stock Options Plan 22 / 38

23 Capex The IT platform represents the bulk of OdontoPrev s capex. (R$thousand) 1Q17 IT platform, acquis ition/licens e of s oftware 5,252 1,526 Computer equipment Dental plan equipment, furniture and utens ils Ins tallations Vehicle Others Total capex 5,758 2,340 R$ million Adjusted EBITDA and CAPEX 352¹ Q17 Adjusted EBITDA CAPEX ¹ Excludes Bradesco Dental and OdontoPrev INSS 23 / 38

24 (R$000) 1Q17 Revenues 381, ,396 Inputs purcha s ed from thi rd pa rties -199, ,685 (=) GROSS VALUE ADDED 182, ,711 Retentions -2,438-1,998 (=) WEALTH CREATED BY THE COMPANY 180, ,713 Wealth received in transfer 10,377 16,535 (=) WEALTH CREATED 190, ,248 Statement of added value Statement WEALTH DISTRIBUTED -190, % -176, % Pers onnel a nd cha rges -31, % -29, % Ta xes, fees a nd contri butions -70, % -65, % Lenders a nd l es s ors -4, % -10, % Sha rehol ders -81, % -69, % Stock options -2, % -2, % Stock options Since the creation of the Stock Options Plan, back in 2007, OdontoPrev has made 12 grants, demonstrated below: Grant date Granted options Canceled options Exercised options Number of options outstanding on 03/31/2018 * Historical grant share price (R$) Δ % IGP-M since grant date Current share price updated by inflation Dividends per share IOC per share Capital Reductions per share 08/02/2007 2,662, ,304 1,673, % /28/2008 4,241, ,544 3,264, % /25/2009 3,060, ,916 2,220, % /11/2010 2,096, ,803 1,896, % /20/2011 1,751, ,174 1,530, % /20/2012 1,609, ,112 1,250, % /20/2013 3,000, ,650 2,224, , % /25/ , , % /26/2015 2,679, ,223-2,315, ** ** ** ** ** /19/2015 2,572, ,736-2,262, ** ** ** ** ** /01/ , , ** ** ** ** ** /26/2016 2,889, ,610-2,761, ** ** ** ** ** Total 27,183,181 5,060,072 14,288,545 7,834,564 * After the share split of 07/01/2010 and 04/02/2012 ** New stock options plan approved on Shareholder's Meeting, May/2015 March 31, 2018 (R$/share) Current grant share price 24 / 38

25 Shareholder remuneration Fiscal year Payment Approval Shareholder position Type Amount R$ Total annual Net Income Total annual Total paid in 2006: 8,080 16,240 16,911 R$16,240 Total paid in 2007: 18,477 16,297 47,458 R$16,297 Total paid in 2008: 30,436 39,958 55,153 Year 2008 Total paid in 2009: 28, ¹ 58,976 Year 2009¹ Total paid in 2010: 523, , ,004 R$352,027 Total paid in 2011: 85, ² 145,311 Year 2011² /10/ /26/ /26/2011 IOC 16,957 R$159, /25/ /02/ /02/2012 DIV 72,000 Net income: R$145, /23/ /26/ /27/2012 IOC 14, /23/ /26/ /27/2012 DIV 27, /22/ /26/ /27/2012 IOC 9, /22/ /26/ /27/2012 DIV 32, /21/ /25/ /25/2012 JCP 8, /21/ /25/ /25/2012 DIV 25,506 Year Total paid in 2012: 207,467 R$159, /03/ /02/ /02/2013 DIV 41,016 Net Income: R$ /10/ /26/ /26/2013 IOC 8, /04/ /30/ /30/2013 DIV 50, /10/ /25/ /25/2013 IOC 8, /04/ /30/ /30/2013 DIV 31, /13/ /29/ /29/2013 IOC 9, /04/ /29/ /29/2013 DIV 33,558 Year Total paid in 2013: 181,975 R$206, /08/ /20/ /20/2013 IOC 7,191 Net Income: R$188, /10/ /27/ /28/2014 IOC 8, /04/ /29/ /29/2014 DIV 49, /11/ /01/ /02/2014 DIV 58, /10/ /24/ /25/2014 IOC 8, ,709 Year /03/ /29/ /29/2014 DIV 39,105 R$213, /08/ /16/ /18/2014 IOC 7, /03/ /28/ /28/2014 DIV 37,333 Total paid in 2014: 216, /07/ /16/ /16/2014 IOC 7,793 Net Income: R$194, /09/ /12/ /16/2015 IOC 7, /06/ /06/ /08/2015 DIV 54, /03/ /29/ /30/2015 DIV 59, /07/ /11/ /11/2015 IOC 9, ,946 Year /03/ /29/ /29/2015 DIV 39,740 R$220, /05/ /16/ /16/2015 IOC 9, /12/ /28/ /29/2015 DIV 33,807 Net Income: R$220,946 Total paid in 2015: 223, /06/ /14/ /15/2015 IOC 10, /05/ /14/ /14/2016 IOC 11, /04/ /11/ /12/2016 DIV 49, /03/ /27/ /27/2016 DIV 43, /05/ /14/ /17/2016 IOC 11, , ,990 Year /05/ /27/ /01/2016 DIV 23,779 R$172, /05/ /15/ /20/2016 IOC 11, /05/ /26/ /31/2016 DIV 23,998 Net Income: R$ Total paid in 2016: 185, /04/ /13/ /16/2015 IOC 11, /05/ /15/ /20/2017 IOC 12, /04/ /28/ /31/2017 DIV 35, /05/ /24/ /02/2017 DIV 42, /05/ /19/ /22/2017 IOC 11, /05/ /26/ /31/2017 DIV 100, /04/ /18/ /21/2017 IOC 11, /06/ /25/ /30/2017 DIV 53,544 Total paid in 2017: 279, /04/ /11/ /14/2017 IOC 11, /04/ /12/ /15/2018 IOC 15,096 Total paid in 2018: 27, /04/ /02/ /05/2018 DIV 2,970 ¹ R$ 37,983 paid with statutory reserve. ² R$ 21,641 paid with statutory reserve. 3 R$ 21,238 paid with statutory reserve. 4 R$ 27,635 paid with statutory reserve. 5 R$ 28,608 paid with statutory reserve. 6 R$ 11,047 paid with statutory reserve. Dividends (DIV), interest on capital (IOC), capital reduction (CR) and share buyback (SB) - R$ thousand Total to be paid in 2018: 2,970 Total since the IPO 2,019, ³ 145, , , , / 38

26 The market cap reached R$7.9 billion at the end of, 32.1% above 1Q17. In 03/31/18, OdontoPrev reached a record number of shareholders of 6,480, 71% higher than 1Q17. Capital Markets OdontoPrev in Capital Markets 1Q17 Δ% Total number of shareholders 6,480 3, Share Price (R$) IBrX ,186 26, Market Cap (R$ billion) ODPV3 liquidity 1Q17 Δ% ADTV (R$ thousand) 16,393 10, Average number of trades per day 4,725 2, Evolution of number of shareholders 6,480 record 4,074 3, ,091 3,383 4, ,652 5, , ,643 MAR17 JUN17 SEP17 DEC17 MAR18 Institutional investors Individual Investors 26 / 38

27 Global shareholder structure: investors from 34 countries Management 1.41% Treasury 0.49% 7.6% 5.6% 6.2% 5.8% MAR18 Others 3.0% 1.8% 50.01% Free Float 48.09% 19.4% 1.5% 1.2% 40.0% 1.1% 1.0% Source: OdontoPrev Total Capital 531,294,792 Shares 48% Free float 255,557,592 Shares 0.6% Total shareholder return since IPO x IBX 800% 700% 600% +715% 500% 400% 300% 200% 100% 0% IBrX 158% ODPV3: +22.1% +30.8% -46.0% % +80.4% +8.0% +25.4% -5.2% +4.5% +0.1% +37.1% +30.4% -6.0% IBX: +6.9% +47.8% -41.8% +72.8% +2.6% -11.4% +11.5% -3.1% -2.8% -12.4% +36.7% +27.5% +11.3% Source: B3 27 / 38

28 Date Country Broker Event Upcoming IR events Apr 26, 2018 Apr 27, 2018 May 14, 2018 May 15, 2018 May 16, 2018 May 17-18, 2018 Jun 05-07, 2018 Jul 25, 2018 Jul 26, 2018 Jul 27, 2018 Aug 21-23, 2018 Sep 10-12, 2018 Sep 18, 2018 Oct 24, 2018 Oct 25, 2018 Oct 26, 2018 Nov 13-14, 2018 Nov 28-30, 2018 Jan 14-15, 2019 Webcast Investor Presentation - São Paulo NDR Credit Suisse - Montreal NDR Credit Suisse - Toronto NDR Bradesco - Chicago NDR Bradesco - New York BofA Merrill Lynch CALGEMs Conference - Los Angeles 2Q18 Earnings Release 2Q18 Webcast Investor Presentation - São Paulo JP Morgan 12th Healthcare Check-Up - São Paulo Morgan Stanley LatAm Conference - London UBS VII Healthcare Day - São Paulo 3Q18 Earnings Release 3Q18 Webcast Investor Presentation - São Paulo Bradesco 8th Annual CEO Forum - New York JP Morgan Brazil Opportunities Conference - São Paulo JP Morgan Global Healthcare Conference - Los Angeles OdontoPrev s Investor Relations activities, including conference calls, webcasts, one-on-one meetings and public presentations have always been made by the Company s CEO and/or IRO, since the 2006 IPO. 28 / 38

29 Conference calls Portuguese with simultaneous translation April 26 th 2018 Thursday 9:00 a.m. US EDT (2:00 p.m. London and 10:00 a.m. Brazil) Phone: +55 (11) or +55 (11) Password: Odontoprev Investor Relations José Roberto Pacheco Executive Director & IRO Roberta Carneiro IR Manager Mariana Ferraz IR Supervisor Media RMA Comunicação Corporativa Rita Sastre Phone: +55 (11) Francine Vecchio Phone: +55 (11) Darcio Nunciatelli IR Analyst Stella Hong IR Analyst Heriane Silva IR Intern Phone: +55 (11) Apple Store: OdontoPrevIR About OdontoPrev OdontoPrev is the leading dental benefits company in Latin America. Over 6 million members count on our differentiated oral health solutions, provided by a highly specialized network of dentists. The Company is listed in the B3 Novo Mercado since 2006, with 100% tag-along rights, and quarterly cash dividends payments to shareholders in 34 countries. 29 / 38

30 Attachments Attachments 31 to 38 Attachment I - Consolidated balance sheet: Assets, 4Q17 and 1Q17 31 Attachment II - Consolidated balance sheet: Liabilities, 4Q17 and 1Q17 32 Attachment III - Consolidated income statement: 33 Attachment IV - Consolidated income statement: 1Q17 34 Attachment V - Key metrics per segment 35 Attachment VI - Consolidated cash flow statement: 36 Attachment VII - Consolidated cash flow statement: 1Q17 37 Attachment VIII - Consolidated statement of added value x 1Q / 38

31 Attachment I - Consolidated balance sheet: Assets, 4Q17 and 1Q17 ASSETS (R$000) 03/31/ /31/ /31/2017 CURRENT ASSETS 641, , ,962 Cash and banks 17,818 17,674 15,561 Cash and cash equivalents 17,818 17,674 15,561 Cash Investments 427, , ,432 Short-term investments 382, , ,380 Odontored - Cash collateral related to technical provisions 44,692 46,843 74,052 Healthcare receivables 135, , ,738 Healthcare receivables 170, , ,989 Allowance for doubtful accounts -46,974-46,950-49,289 Other credits from healthcare plan operations 7,526 7,159 5,038 Healthcare plan operators 3, Notes receivable 12,391 11,284 7,665 Advances to suppliers 1,704 1,448 1,332 Advances to employees 5,275 5, Other receivables 5,412 4,285 5,946 Inventories 4,035 2,986 2,300 Prepaid taxes 28,298 27,789 9,121 Social security siscal Credits 28,298 27,789 9,121 Prepaid expenses 16,956 16,676 15,145 Deferred selling expenses 15,438 15,092 13,861 Others 1,518 1,584 1,284 NONCURRENT ASSETS 770, , ,413 Long-term assets 191, , ,494 Financial investments at fair value 61,895 57,049 - Financial investments for technical provisions 61,895 57,049 - Long-term financial assets, held to maturity 14,832 14,636 14,432 Long-term financial assets, held to maturity 14,832 14,636 14,432 Deferred taxes 34,618 37, ,427 Deferred income tax & social contribution 34,618 37, ,427 Other non current assets 80,297 80,409 54,635 Escrow deposits 7,599 7,496 51,868 Other receivables 3,044 3,044 2,688 Tax and social security credits 69,575 69,790 - Notes receivables Investments 10,153 8,573 6,754 Other stockholdings 10,153 8,573 6,754 Property and equipment 18,360 19,215 20,189 Intangible 550, , ,976 Goodwill on acquisition of investments 501, , ,597 System development, software licenses and other 48,475 44,268 38,379 TOTAL ASSETS 1,412,051 1,389,568 1,438, / 38

32 Attachment II - Consolidated balance sheet: Liabilities, 4Q17 and 1Q17 LIABILITIES AND SHAREHOLDER'S EQUITY (R$ 000) 03/31/ /31/ /31/2017 CURRENT LIABILITIES 414, , ,951 Payroll charges & Labour related fees 36,818 31,721 31,886 Payroll charges 4,272 4,596 7,568 Charges payable 4,272 4,596 7,568 Labour related fees 32,546 27,125 24,318 Payroll, vacation and fees 32,546 27,125 24,318 Suppliers 20,154 17,309 13,476 Taxes payable 34,771 49,187 22,652 Other liabilities 73,497 71,380 76,894 Dividends, IOC and capital reduction 15,851 13,172 46,234 Advances from customers 1, ,871 Advances receipt of dental care inssurance - 1, Other payables 49,365 56,748 26,952 Share buyback payables 7, Technical provisions for contingencies 249, , ,043 Healthcare claims payable 31,341 33,292 23,751 IBNR reserves Incurred but not reported claims reserves 70,650 82,086 63,268 Unearned premiums reserves 142, , ,081 Odontored - Claims reserves and provision for losses 4,927 4,340 2,943 NONCURRENT LIABILITIES 41,840 37, ,760 Other obligations 26,909 25,176 23,676 Other liabilities 2,394 2,394 2,038 Fees payables 1,003 1,003 1,003 Long-term option, associate company 23,512 21,779 20,635 Provisions 14,931 11, ,084 Technical provisions for contigencies 14,931 11, ,084 TOTAL LIABILITIES 456, , ,711 Shareholders equity, capital and capital reserves 952, , ,547 Capital 506, , ,557 Capital reserves 23,176 23,813 17,481 Earnings reserve 355, , ,209 Legal reserve 101, ,312 77,435 Profit retention reserve 293, ,812 61,438 Tax incentive Treasury shares -39,272-2,381-3,793 Retained earnings 66, ,300 Non controling shareholders participation 3,373 3,367 3,117 SHAREHOLDER S EQUITY 955, , ,664 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,412,051 1,389,568 1,438, / 38