INSTITUCIONAL PRESENTATION 2013 São Paulo April 2013

Transcription

1 INSTITUCIONAL PRESENTATION 2013 São Paulo April /26 /15

2 DISCLAIMER This document contains forward looking statements that can be identified by words like hope, plan, expect, believe, seek, estimate and similar words. The information in this presentation regarding forward looking statements of the Company, including business prospects, and operating, financial, and growth projections are only predictions based on management expectations regarding future performance. These estimates are highly dependant on the performance of the Brazilian economy, industry and international market condiitions. Therefore, they are subject to change. 2/28

3 DASA Latin America s Largest Diagnostics Company 4 MARKETS PRIVATE CLINICS LAB-TO-LAB PRIVATE HOSPITALS PUBLIC CLINICS AND HOSPITALS 19,000 EMPLOYEES 2,000 DOCTORS ONLY HEALTH COMPANY INCLUDED IN THE IBOVESPA INDEX 3/28

4 BUSINESS RELEVANCE - REVENUE SERVICE MIX IMAGE 34% 66% 4 CLINICAL ANALYSIS GROSS OPERATING REVENUE R$2.5 BN IN /28

5 BUSINESS RELEVANCE - REVENUE Outsourcing of lab and image services for 71 private hospitals PRIV. HOSP. 10% 9% PUBLIC 7% Outsourcing of lab and image services in 86 public hospitals and 503 public clinics LAB-TO-LAB 74% PRIVATE CLINICS Outsourcing of basic and complex tests 4,903 labs nationwide Serving private patients in 8 of 10 major metropolitan areas in 452 Patient Service Centers (PSCs) 5/28

6 DIVERSIFIED REVENUE BASE Health Insurance Plans 19.4% Self-Insured Corporations 14.6% Others 1.3% HMO 17.9% Hospitals 9.4% Medical Cooperatives 11.7% Individuals 8.8% Lab-to-lab 9.7% Public Services 7.4% 6/28

7 DISPERSED OWNERSHIP STRATEGIC SHAREHOLDERS WITH LONG TERM FOCUS Edson de Godoy Bueno Dulce Pugliese de Godoy Bueno Petros Oppenheimer BlackRock Others % 11.56% 10.00% 5.09% 5.01% 56.31% Source: DASA (Reference Form) (1) Includes treasury shares representing 0.37% of total shares 7/28

8 HEALTH EXPENDITURE IN BRAZIL GDP R$4.1 TRILLION HEALTH EXPENDITURE: 9% GDP R$370 BILLION PUBLIC EXPENDITURE: 44% R$160 BILLION 75% OF THE POPULATION PRIVATE EXPENDITURE: 56% R$210 BILLION 25% OF THE POPULATION Does not consider out of pocket market Source: ANS, SUS, IBGE and company estimates 8/28

9 HEALTH EXPENDITURE IN BRAZIL DASA HAS 14%* SHARE IN A GROWTH MARKET PUBLIC EXPENDITURE: 44% R$160 BILLION PRIVATE EXPENDITURE: 56% R$210 BILLION 3% is spent in medical diagnostics 7% is spent in medical diagnostics Public sector R$ 5 Billion Private market R$ 14.7 Billion Outsource rate: 15% Outsourced Public Diagnostics Market R$ 750 Million DASA MARKET SHARE: 23% DASA MARKET SHARE: 14% Does not consider out of pocket market Source: ANS, SUS, IBGE and company estimates 9/28

10 OPPORTUNITIES FOR GROWTH PRIVATE HEALTH INSURANCE IS ESTIMATED TO GROW FROM 25% TO 30% OF POPULATION BY 2017 Increasing formal employment Growing competition for labor driving employee benefits POPULATION IS AGING. POPULATION OVER 60 YEARS OLD EXPECTED TO DOUBLE BY 2032 GROWING AWARENESS OF MEDICAL DIAGNOSTICS BENEFITS INCREASING NUMBER OF PER CAPITA ANNUAL TESTS MORE OUTSOURCING BY PUBLIC STATE AND MUNICIPAL HOSPITALS 10/28

11 DASA IS WELL POSITIONED IN THE MARKET 452 NUMBER OF PSCs NUMBER OF HOSPITALS NUMBER OF LAB-TO-LAB CLIENTS 5,000 5, DASA FLEURY PARDINI DASA FLEURY DASA PARDINI Best brands in some local market Prepared to grow in Middle Class Market 187 PSCs with 8 brands in the standard segment Source: Companies website Most efficient because of scale Nationwide presence 11/28

12 WORK IN PROGRESS CLIENTS CALL CENTER RENOVATIONS NEW EQUIPMENTS OUR PEOPLE REFERENCE REFERENCE PHYSICIANS PHYSICIANS TRAINING TRAINING IT FRONT END SYSTEM 12/28

13 CALL CENTER IMPROVING CUSTOMER CARE New Technology MORE STABILITY PROCESSES revision Centralization on 2 sites (used to be 4 in Rio) TEAM qualification SÃO PAULO RIO DE JANEIRO Drop-out rate 17% 26% 26% 6% JAN-SEPT 2012 OCT-DEC 2012 JAN-SEPT 2012 OCT-DEC /28

14 RENOVATIONS AND BUYING EQUIPMENT IMPROVING TECHNOLOGY ASSETS WHEN TO BUY? When opening NEW UNITS FULL OPERATING capacity WHEN TO REPLACE? When there is an opportunity to INCREASE THE PRODUCTIVITY When there is demand for MORE COMPLEX TESTS End of LIFE KEY GAINS: INCREASE IN PRODUCTIVITY/VOLUME INCREASE IN AVERAGE PRICE (higher value added tests) 14/28

15 RENOVATIONS AND NEW EQUIPMENTS NEW UNITS 9 22 Standard 7 21 Mega 2 1 RENOVATION/EXPANSION OF UNITS CT Installation 10 7 MRI Installation 5 10 Other renovations /28

16 REFERENCE PHYSICIANS IMPROVING THE QUALITY OF WHAT WE DO Contracting of REFERENCE PHYSICIANS MEDICAL RELATIONSHIP through events, lectures, symposiums, and Inovar magazine MEDICAL PROJECT at the Unit EDUCATION AND TRAINING for existing physicians 16/28

17 INOVA: NEW FRONT END SYSTEM EFFICIENCY, QUALITY, AND PROCESS STANDARDIZATION TODAY 26 BRANDS 20 FRONT END SYSTEMS 17/28

18 1 2 3 INOVA: MATERIAL GAINS 4 Improve PRODUCTIVITY 5 6 Integration with CRM SINGLE NATIONAL MEDICAL RECORD for physician and patient MULTI-BRAND scheduling Call Center: HOME OFFICE UNIFIED database for management INOVA web mobile collaborative integrated to the medical world 18/28

19 INOVA: SCHEDULE 4 brands implemented in 2012 % of Revenue 20% 1Q13 50% 2Q13 70% 3Q13 100% 4Q13 19/28

20 RECEIVABLES WHAT WE ARE DOING INTERNALIZATION of Key Processes DESCENTRALIZATION of the Process for REGIONAL BRANCHES (efficiency and focus) Higher number of CONTRACTS paid via PAYMENT SLIPS HOW WE ARE EVOLVING LOSS AS % GROSS REVENUES 3.8% 3.1% /28

21 CAPEX CAPEX 2012 Other 2.3% Real State 5.7% IT 22.0% Equipment 26.4% Opening and expansion of units 43.6% R$234.4 MM in 2012 Driver for Capex expenditure: LOWER THAN NET CASH GENERATION 21/28

22 PRIORITIES FOR MAXIMIZE RETURN ON EXISTING ASSETS LEVERAGE REVENUE REDUCE COSTS AND EXPENSES IMPROVE OPERATION QUALITY PEOPLE - MERITOCRACY 22/28 22/28

23 PRIORITIES FOR 2013 MAXIMIZE RETURN IN EXISTING ASSETS KPIs Increase the PSCs OCCUPATION LEVEL Increase Equipment OCCUPATION LEVEL Ensure RETURN ON INVESTMENT 23/28

24 PRIORITIES FOR 2013 LEVERAGE REVENUE KPIs Prospect NEW PAYERS (private, public, hospitals, support) Increase the SHARE OF CURRENT CUSTOMERS Increase the REVENUE FROM INDIVIDUALS PRICE adjustment 24/28

25 PRIORITIES FOR 2013 REDUCE COSTS AND EXPENSES KPIs Increase the PSCs PRODUCTIVITY Increase the PRODUCTIVITY of NTOs (central labs)/nths (hospital labs) 25/28

26 PRIORITIES FOR 2013 OPERATION QUALITY KPIs Improve the service level of the CALL CENTER and PSC s Ensure return from REFERENCE PHYSICIANS Ensure the QUALITY OF TESTS and the PERCEPTION FROM THE MEDICAL COMMUNITY in CLINICAL ANALYSIS Ensure deadlines and quality of implementation of INOVA Capture gains on PRODUCTIVITY 26/28

27 PRIORITIES FOR 2013 PEOPLE KPIs MERITOCRACY Performance evaluation Ensure organizational TURNOVER 27/28

28 Q&A Cynthia Hobbs CFO Paulo Bokel IR OFFICER 28/28

29 FINANCIAL RESULTS 1/15

30 GROSS REVENUE (R$ MILLION) 0.5% , % 2, % % % % 1,558 1,635 4Q11 RID Clinical Analysis 4Q RID Clinical Analysis Gross revenue reached R$ MILLION in the year, a growth of 4.2% 2 /15

31 PATIENT SERVICE CENTERS GROSS REVENUES (R$ MILLION) 1, % 1,833.7 AVERAGE REVENUE PER REQUISITION AND VOLUME (MILLIONS) 41.6% % % 58.4% 3.8% % RID Clinical Analysis 0.5% Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Requisitions Average Requisition Price 40.6% % % 59.4% Q11 RID -1.6% Clinical Analysis 4Q % MORE COMPREHENSIVE imaging mix increasing average value per requisition Clinical Analysis volume impacted by restrictions to PAYERS 3 /15

32 HOSPITALS GROSS REVENUES (R$ MILLION) % % -34.0% % AVERAGE REVENUE PER REQUISITION AND VOLUME (MILLIONS) 68.8% 5.5% % % 70.0% RID Clinical Analysis % % 4.3% Q11 4Q12 RID Clinical Analysis 22.0% 78.0% Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Requisitions Average Requisition Price DISREGARDING SÃO LUIZ HOSPITALS, the growth would be 8.1% in 4Q12 and 11.3% in 2012 Focus on INCREASING PROFITABILITY cancellation of hospitals contracts NEW CONTRACTS already in operation in 1Q13:Hospital Unimed RJ and Hospital Brasília 4 /15

33 LAB-TO-LAB GROSS REVENUES B2B (R$ MILLION) Performance B2B % ,306 49,506 4,912 4, # of Laboratories Average Revenue/Laboratory (in R$) % 57.9 Increase in the number of REQUISITIONS (+ 8.5%) Focus on MAXIMIZING PROFITABILITY 4Q11 4Q12 Impact of local elections and CHANGES OF GOVERNMENTS 5 /15

34 PUBLIC HOSPITALS AND CLINICS GROSS REVENUES (R$ MILLION) PERFORMANCE B2G % % # collecting site Revenue per colleting sites 4Q11 4Q12 Strong growth mainly due to NEW CONTRACT with the Rio de Janeiro Municipality 6 /15

35 COSTS In R$ Million % of Net Revenues 2012 vs % Personnel % 17.9% 17.3% Materials % 17.9% 2.9% Services and Utilities % 23.8% 13.1% General % 1.1% -2.9% Cost of Services Cash 1, , % 60.8% 11.0% Depreciation and amortization % 3.4% 26.5% Cost of Services 1, , % 64.2% 11.8% PERSONNEL: enhanced costumer quality MATERIALS: productivity improvement SERVICES AND UTILITIES: doctor s fees, data link (redundancy to increase reliability) and occupancy costs 7 /15

36 SG&A In R$ Million % of Net Revenues GENERAL AND ADMINISTRATIVE : receivables personnel increase and call center, besides marketing expenses 2012 vs % General and Administrative % 16.6% 11.6% Profit Sharing Program % 0.4% -24.9% Other Operating Revenues/ Expenses (24.2) (15.2) -1.1% -0.7% 58.9% Prescribed Tax Reversal - (13.7) 0.0% -0.6% % PDA* % 0.6% % Cash Operating Expenses % 16.3% 8.6% Depreciation and Amortization % 2.4% 33.2% Operating Expenses % 18.7% 11.7% (*) As of 1Q12, the PDA is being considered under the "discounts" the income statement 8 /15

37 ACCOUNTING EBITDA (R$ MILLION) EBITDA Margin 19.8% 13.4% 22.9% -18.6% 18.0% -29.7% Q11 4Q /15

38 2012 IR/CSLL 1.4% -8.3% 0.8% 34.0% 35.4% 28.0% Income Tax Rate permanents adjustements in tax books Income Taxes (Financial Statements) Tax Loss/Goodwill Compensation Other Withholding tax (current)/ Income taxes cash* OPTIMIZED FISCAL BENEFIT expected after the incorporation of MD1 * Withholding tax (current): Originally from financial income and withholding of gross revenue 10 /15

39 RECEIVABLES R$ million 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Accounts receivable Past due Past due Past due (more Provisions (84.2) (71.7) (75.1) (103.9) (102.7) (106.1) (105.5) (109.2) Total Rec Coverage Index¹ 99.1% 86.1% 81.3% 93.4% 92.4% 93.2% 89.7% 91.1% Provision rule 91 to 120 days 25% 121 to 180 days 50% 181 to 360 days 75% More than 361 days 100% Unbilled services Convenios a faturar 112,9 Average collection period ,2 100,0 100,3 101,4 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 4T11 1T12 2T12 3T12 4T12 Convênios a faturar (1) Index coverage = BDP balance/ expired > 120 days 11 /15

40 BALANCE SHEET MANAGEMENT Management Cash Flow (R$ Million) 4Q12 Accounting EBITDA 73.5 Operacional working capital 49.8 Other working capital accounts 3.1 Financial expenses (22.1) Income tax (8.0) Operational cash flow 96.3 Capex (56.2) Sale of Fixed Assets 49.1 Free Cash Flow 89.2 Management Cash Flow (R$ Million) 2012 Accounting EBITDA Operacional working capital 15.3 Other working capital accounts (37.0) Financial expenses (113.7) Income tax (24.1) Operational cash flow Capex (234.4) Sale of Fixed Assets 49.1 Free Cash Flow 62.6 Debt Composition(R$ million) Cash and Cash Equivalents Debt Short Term (119.8) Debt Long Term (987.8) Net Debt* (847.1) Operating cash flow is POSITIVE and higher than CAPEX Lower NET DEBT compared 3Q12 and less costly each quarter (*) Methodology adopted by fiduciary agent 12 /15

41 ROIC(*) 17.4% 16.3% 14.2% ROIC is IMPACTED in the short term by the INCREASED CAPEX 11.7% 9.1% Q12 LTM 2T12 LTM 3T12 LTM 2012 (*) Considering current EBITDA NOPAT LTM/mean(working capital + intangible assets + fixed assets value for Exchange of shares of DASA and MD1) 34% effective rate of Income Tax 13 /15

42 CAPEX Capex Breakdown 2012 Others 2.3% Real Estate 5.7% Information Technology 22.0% Opening and Expansion of PSCs 43.6% Equipment 26.4% 4Q12: 1 MRI, 3 NEW PSCs AND REMODELED 1 OTHER 2012: 10 MRI, 7 CTs, 22 NEW PSCs and 11 REMODELED 11 R$ 56.2 MM in 4Q12 and R$ MM in 2012 (*) Do not consider the sale of fixed asset of R$ 49.1 million 14 /15

43 CONTACTS 15 /15