Corporate Presentation February, New growth cycle and value innovation

Transcription

1 Corporate Presentation February, 2017 New growth cycle and value innovation

2 Dental benefits: an incipient sector in Brazil 2

3 Brazilian dental opportunity 60% 11% % of the population covered by a private dental plan 14 3 Source: OdontoPrev

4 Brazil leads the global ranking of dentists Number of dentists per country (thousand) 279 ¹ 12% of the dentists in the world are located in Brazil Source: FDI World Dental Federation The Oral Health Atlas 2009 ¹ Federal Council of Dentistry Brazil (January 2017)

5 Great portion of middle class not covered 100 Million (22) 78 = Addressable market of people in the Middle class Million people already dental plan members Million people 5

6 Cost per client Cost per client Attractive cost dynamics Over time, OdontoPrev Dental Plans present a predictable Medical Plans OdontoPrev Plans Price Cost Price Cost Time Cost increases by medical inflation and better technology Short-term contract: 1 year tenor TIme Predictable cost evolution due to prevention Long-term contract: 2 year + duration 6 and more attractive cost profile than Medical Plans.

7 OdontoPrev Prepaid Business Model High predictability of cash flow No working capital needs Low CAPEX requirements Positive cash flow generation every day Customers Fee per user Dental care reimbursement R$ R$ Accredited dentist network 7

8 Inside OdontoPrev2

9 OdontoPrev: 10 years of sustainable value creation since IPO Net revenues (R$ million) 1,341 1,070 1,156 1, IPO OCT15 SEP16

10 Individual plans & SME: higher growth and better returns OCT15 - SEP16 Δ % AVERAGE TICKET (R$ / member / month) Contribution Margin 16 Corporate Revenues R$933 M (+2% YoY) 39% 10 ¹ M: million High NUMBER OF COMPETITORS

11 Individual plans & SME: higher growth and better returns OCT15 - SEP16 Δ % AVERAGE TICKET (R$ / member / month) Contribution Margin 34 Individual Plans Revenues R$225 M (+45% YoY) 54% Corporate SME Revenues R$933 M (+2% YoY) Revenues R$181 M (+16% YoY) 42% 39% 11 ¹ M: million High Low NUMBER OF COMPETITORS

12 Individual plans & SME: higher growth and better returns OCT15 - SEP16 Δ % AVERAGE TICKET (R$ / member / month) Contribution Margin 34 Individual Plans Revenues R$225 M (+45% YoY) 54% Corporate SME Revenues R$933 M (+2% YoY) Revenues R$181 M (+16% YoY) 42% 39% 12 ¹ M: million High Low NUMBER OF COMPETITORS

13 Strategic competitive advantages 3

14 Strategic competitive advantages World Class Dental IT Platform Largest and Specialized Dentist Network Innovation Driven Company Exclusive Distribution Channels 100% Dental Focused 14

15 Proprietary IT Platform: information-driven decisions + Complete dental record of all beneficiaries + 29 years of actuarial data + Risk Management and fraud prevention 15

16 Proprietary IT Platform: information-driven decisions + Quality assurance + Clear barrier to entry + Cost control 16

17 Innovation driven Company + OdontoPrev online: individual plans sold at the web + New App for the accredited network of dentists 17

18 Innovation driven Company Top quality dental materials delivered door to door to the dentist free of charge Exclusive agreement to prevent oral cancer 18

19 OdontoPrev: Market leadership since the 1990 s Key players, brazilian dental sector (SEP 2016, thousand members) 6, ( ) ( ) 19 Source: OdontoPrev & ANS

20 Pricing power Average ticket (R$/member/month) Selected Peers Source: ANS ¹ Includes UnitedHealthcare, Bain Capittal, Metlife & Sulamerica. 20

21 OdontoPrev: Nearly half of the revenues of the sector 1,301 Payments, net in 2015 (R$ million) 43% Revenue Market Share in ( ) ( ) 21 Source: OdontoPrev

22 Change in control of key peers Thousand lives 2,250 1,812 1,989 1,824 1,884 ( ) 1,510 ( ) 1,335 1,293 1,119 1,024 1, SEP16 22

23 The largest bancassurance platforms in Brazil Clients + 80 million + 60 million National footprint Exclusivity 20 years 48% of branches & 52% of brazilian bank clients 23

24 Banks: strong and committed long-term partners + Back-office Price maker Product design Customer relationship Dentist network management Front-office Price takers Selling National footprint capilarity Bank branches and brokers distribution 24

25 Largest and best dentist network 28,000 dentists at 2,200 cities National distribution Differentiated academic background Continuous education 24/7 call center 25

26 OdontoPrev: 4 Financial and Operational Performance

27 Revenue growth per segment R$ million R$ million % +17.2% % % 13% 73% % 14% 67% 3Q15 3Q16 3Q15 3Q16 Corporate SME Individual Plans 27

28 3Q16: Individual plans becoming more relevant 27% 19% 10% 28 Members Revenues Contribution Margin

29 Incremental revenue per segment (YoY) R$ million Q15 2Q15 3Q15 4Q15 1Q Q Q16 Individual Plans SME Corporate 29

30 Average Ticket per Segment (R$/member/month) +10.5% +4.8% % Q15 3Q16 3Q15 3Q16 3Q15 3Q16 Corporate SME Individual Plans

31 Breakdown of individual plans Thousand lives +27% % % 189 k lives +46% 43% 277 k lives 54% 3Q15 4% 3% 3Q16 Retailers 31

32 Positive effects of bank channels 3Q16 List prices & R$41.40 Retailers R$29.90 Annual Plan / Internet Yes No Selling expenses 10% - 15% 25% - 45% Profitability Higher Lower 32

33 Annual Cost of Services (% of Sales) 60,4 53,4 51,9 46,7 47,7 48,2 49,2 47,7 46,2 46,6 48,9 43,0 44,3 44, SEP16 33

34 G&A (% of Sales) 15.6% 14.7% 13.8% 14.2% 14.3% 14.5% Personnel 7.8% 7.9% 7.3% 7.4% 7.7% 7.8% Others 7.7% 6.8% 6.5% 6.8% 6.7% 6.7% # of employees 1,525 1,587 1,560 1,588 1, ,495 9M

35 Adjusted EBITDA and Adjusted EBITDA margin R$ million and (% of Sales) 327¹ ¹ ¹ ¹ M16 35 ¹Including Brasildental EBITDA Pro Forma

36 Net Income & ROE R$ million % % 34% 33% % 18% M16 36 ROE

37 Net cash, zero debt R$ million SEP16 37

38 Capex: low portion of EBITDA R$ million Adjusted EBITDA M16 CAPEX 38

39 Cash Flow since the IPO in 2006 R$ million +1, , Net Cash DEC06 + Cash + Others - Cash dividends = Generation Net Cash SEP16 39

40 INSS: Important fiscal optionalities Until 2010 After 2010 Amount provisioned R$44 million R$254 million Approval Yes Open Annual growth Selic (*) Selic (*) + R$ 45 million 40 * Brazilian interest rate

41 Capital Markets 5

42 Global shareholder structure: investors from 36 countries Management 1.44% Treasury 0.08% Others 3.4% % 6.9% 4.0% 3.0% 2.7% 2.1% 50.01% Free Float 48.46% 15.4% 1.7% 1.3% 5% 43.7% 0.9% 0.9% Capital total 531,294,792 Shares Source: OdontoPrev 48% Free float 257,576,297 Shares 0.8% 42

43 OdontoPrev awarded for the 7th consecutive year... Best Healthcare Sector IR Program of Latin America 2010 / 2011 / 2012 / 2013 / 2014 / 2015 / Thank you! 43

44 Why OdontoPrev? Largest and best network of dental specialists Proven & sustainable business model State-of-the-art IT platform Superior corporate governance standards Solid capital structure Proven management with an incentive to drive shareholder value Multiple growth drivers High returns on capital 44

45 Your Investor Relations Team José Roberto Pacheco Executive Director & IRO Roberta Carneiro IR Manager Darcio Nunciatelli IR Analyst Stella Hong IR Analyst Phone: + 55 (11) ir@odontoprev.com.br : OdontoPrevIR Corporate Headquarters Avenida Marcos Penteado de Ulhôa Rodrigues 939 Torre II / Edifício Jatobá / 14 th floor Barueri, São Paulo, Brazil Custodian & Market Maker Independent Auditors BM&FBovespa Ticker 45