T4F Net Income rises 53% in 2Q12

Transcription

1 T4F Net Income rises 53% in 2Q12 São Paulo, August 8, A T4F Entretenimento S.A. ( T4F, Time for Fun ) (BM&FBovespa: SHOW3), the leader in the live entertainment industry in Latin America, announces today its audited results for the second quarter of 2012 (2Q12). The financial and operating information herein was prepared in accordance with International Financial Reporting Standards (IFRS) and the accounting practices adopted in Brazil. Main Highlights 2Q12 earnings came in line with our budget figures for the quarter, which considered: - The typical pattern of earnings seasonality in our industry, and - The difference in the number and profile of the shows promoted by T4F in the 2Q12 and in the 2Q11, most notably the higher number of large outdoor music concerts in the 2Q11 versus a high quality calendar of family entertainment shows in the 2Q12: Net Revenue of R$191 million (+3% vs. 2Q11) Gross Profit of R$49 million (-5% vs. 2Q11) EBITDA of R$25 million (-14% vs. 2Q11) Net Income of R$14 million (+53% vs. 2Q11) The first half of the year is traditionally the weakest in our industry, and we project that this behavior shall repeat in Thus, the analysis that provides the best understanding of the company s performance over time is the comparison of cumulative 12 months to June 2012 against the 12-month period immediately preceding, which, in this quarter, showed strong growth: Net Income of R$641 million (+19% vs. LTM-Jun/11) (LTM-Jul/11: Jul/10-Jun/11) Gross Profit of R$190 million (+19% vs. LTM-Jun/11) EBITDA of R$105 million (+28% vs. LTM-Jun/11) Net Income of R$66 million (+151% vs. LTM-Jun/11) We maintain the projection of a strong growth in the 2H12 results over 1H12, emphasizing: The South American tours of Linkin Park, Lady Gaga and Madonna in the 4Q12, with at least 16 big shows in stadiums and arenas in Brazil, Argentina and Chile. A strong pipeline of indoor tours of renowned international music artists: Alanis Morissette, Scorpions, Yanni, Dream Theater, G3, Liza Minelli, Simple Plan, Snow Patrol, among many others. Continuation of the musical The Addams Family at the Abril theatre in São Paulo, with sold-out performances since its debut in March/12. Opening of ticket sales for the shows The Lion King and Cirque du Soleil-Corteo in 4Q12, with premieres planned for the first quarter of

2 Financial and Operating Highlights (In R$ 000, unless otherwise stated) 2Q12 2Q11 2Q12/2Q11 Jun/12 Jun/11 Financial Indicators Net Revenue 190, ,311 3% 297, ,381 12% 640, ,477 19% Events Promotion 104, ,530-13% 167, ,044-4% 363, ,607 10% Live Music 52,225 96,958-46% 85, ,799-40% 203, ,050-16% Performing Arts, Theater and Exhibitions 48,893 19, % 76,669 26, % 146,226 75,359 94% Sport Events 3,609 3,818-5% 5,092 4,533 12% 13,754 11,197 23% Ticketing Services, F&B and Venue Operations 33,748 24,228 39% 51,244 35,842 43% 115,923 90,659 28% Sponsorship 52,256 39,553 32% 78,181 56,495 38% 160, ,212 35% Events Promotion 45,270 34,658 31% 66,579 47,009 42% 137,375 95,738 43% Ticketing Services, F&B and Venue Operations 6,986 4,895 43% 11,602 9,486 22% 23,329 23,473-1% Gross Income 49,178 51,641-5% 78,667 75,278 5% 190, ,413 19% Gross Margin (%) 25.8% 28.0% -2.2 p.p. 26.5% 28.3% -1.8 p.p. 29.7% 29.5% 0.2 p.p. EBITDA 25,164 29,114-14% 33,259 35,878-7% 105,171 81,873 28% EBITDA Margin (%) 13.2% 15.8% -2.6 p.p. 11.2% 13.5% -2.3 p.p. 16.4% 15.2% 1.2 p.p. Net Income 13,567 8,875 53% 14,716 9,763 51% 66,023 26, % Net Margin (%) 7.1% 4.8% 2.3 p.p. 5.0% 3.7% 1.3 p.p. 10.3% 4.9% 5.4 p.p. 1H12 1H11 1H12/1H11 2Q12 2Q11 2Q12/2Q11 Operational Indicators 1 Live Music Number of Events % % % Tickets Sold (000) % 599 1,070-44% 1,584 1,860-15% Average Ticket Price (R$) % % % Performing Arts and Theater Number of Events % % % Tickets Sold (000) % % 1, % Average Ticket Price (R$) % % % (1) Exhibitions and Sport Events are not included. 1H12 1H11 1H12/1H11 Jun/12 Jun/11 CONFERENCE CALL 2Q12 Date: 08/09/2012 Portuguese English 10am (BR) 09am (US ET) 12pm (BR) 11am (US ET) Phone.: +55 (11) Phone.: +1 (877) (USA only) Code: T4F +1 (412) (other countries) Code: T4F Replay: +55 (11) Code: T4F Replay: +1 (877) (USA only) +1 (412) (other countries) Code: Investor Relations: Phone.: +55 (11) /1294/ ri@t4f.com.br 2

3 Considerations about Earnings Seasonality As mentioned in our previous earnings releases, T4F s accounting results are subject to seasonality effects whereby (i) the second half is stronger than the first half, and (ii) the fourth quarter is the strongest of the year. We expect this pattern to continue in 2012, with a similar curve to that of 2011 (see the chart below), although the fourth quarter is likely to be even more representative, due to the concentration of large live music events in that quarter and to the opening of ticket sales of highly successful shows such as the Broadway musical The Lion King and the Cirque du Soleil s Corteo. Net Revenue - R$ MM Q11 2Q11 3Q11 4Q11 1Q12 2Q12 2Q12 Performance Events Promotion Live Music In 2Q12, we promoted 92 live music concerts with approximately 360,000 tickets sold. It is particularly worth mentioning the Brazilian leg of Roger Waters The Wall global tour, in addition to indoor concerts in a growing number of cities by several international artists, including Bob Dylan, Duran Duran, Roxette, 3 Doors Down and Demi Lovato. Following our strategy of growing the number of cities covered by our shows, the Bob Dylan tour was presented in 7 cities and the Roxette tour was taken to 11 cities. Our indoor concerts were also complemented with recurring concerts by renowned national artists, including Paula Fernandes, Fábio Jr., Titãs and Jorge Ben Jor, among many others. Compared to 2Q11, the downturn in net revenue from live music is due to the lower number of large stadium and arena shows. In 2Q11, the Company promoted five concerts of U2 s 360 o South American tour, with an average audience of 75,000 per performance, and three Ozzy Osbourne concerts, while in the 2Q12 it only promoted two Roger Waters concerts in São Paulo, with an average audience of 50,000 per performance. 3

4 Live Music (cont.) When comparing the six-month period ended in June, the number of stadium and arenas concerts is even more concentrated, with 13 concerts promoted in the in 1H11 against only four in the 1H12. In 2012, particularly in the live music segment, our revenue is expected to be much concentrated in the fourth quarter, when we will promote two mega global tours - Madonna s MDNA and Lady Gaga s Born This Way Ball, totaling at least twelve performances already confirmed, in addition to four concerts of Linkin Park in Brazil and Argentina. Family entertainment, theater and cultural exhibitions Net revenue from this segment reached R$48.9 million in 2Q12, 148% up on 2Q11, resulting from a 61% rise in the paying audience and a 84% increase in the average ticket price due to a superior mix of contents in 2Q12. The musical The Addams Family has continued playing to sold-out audiences at our venue Teatro Abril in São Paulo since its premiere in March It is the musical with the second largest paying audience promoted by the Company, behind only The Phantom of the Opera, considering the first four months of performances. We also continued to present the acclaimed Mamma Mia! musical at the Opera Citi theatre, in Buenos Aires. We also promoted various performing arts and family entertainment shows in 2Q12, including more than 30 performances of the new Disney on Ice 100 Years of Magic tour in São Paulo and Rio de Janeiro, the first Batman Live South American tour in São Paulo, Buenos Aires and Santiago, in addition to the Brazilian debut of performing fights event - WWE-World Wrestling Entertainment in São Paulo. We also proceeded with the Brazilian leg of Cirque du Soleil s South American Varekai tour in Recife, Salvador and Curitiba. T4F has been promoting the Varekai tour since September 2011 and its final performance is scheduled for Lima, Peru in February The Company recently contracted Corteo, which is expected to run from March 2013 through the end of 2014, with performances in at least ten different markets. All in all, we will have been presenting Cirque du Soleil for 40 consecutive months. The six-month comparison reveals a similar picture a strong upturn in 1H12 over 1H11 in terms of numbers of events (+38%), tickets sold (+87%), average ticket price (+88%) and net revenue (+187%), due to the same reasons described above. Sport Events Net revenue from sport events was R$3.6 million in 2Q12, 5% down on 2Q11. Since there was one race fewer of Copa Caixa Stock Car, the calendar of the main Brazilian car racing championship series had three races in 2Q12 versus four in 2Q11. However, we recorded substantial growth in terms of paying audiences, hospitality centers, and relationship marketing actions in the races of all the championship series promoted by the Company, especially the Copa Petrobras de Marcas series, now in its second season. 4

5 Ticketing, Food and Beverage Sales (F&B), and Venue Operations Revenue from this segment increased by 39% over 2Q11 to R$33.7 million, with the highlight being the opening of ticket sales for Madonna s new upcoming South American tour. In the indoor live music segment, we began selling tickets for shows by top names of international music, including Yanni, Scorpions, Liza Minelli and Dream Theater, among others. In addition to recurring revenue from venue rentals for private corporate events and parking, we highlight the important results in the F&B and merchandising segment with revenue per capita above historical averages. Sponsorships Net revenue from sponsorships reached R$52.3 million in 2Q12, 32% more than in 2Q11. This increase, due to the higher number of live indoor music tours featuring major international artists and the promotion of a diversified content platform in the family entertainment segment, which caters to various types of audience, representing unique marketing solutions for sponsors, such as the exclusivity in the pre-sales of tickets for Madonna. Gross Income Gross income came to R$49.2 million, 5% less than in 2Q11, accompanied by a margin of 25.8%, down by 2.2 p.p., due to the the Cirque du Soleil Varekai tour presenting in a higher number of cities - Recife, Salvador and Curitiba - and shorter seasons in each one. As a result, logistics costs moved up. In addition, some of the revenues related to the 2Q12 cities, such as pre-sales sponsorship and ticketing convenience fees, were booked in previous periods when the tickets were sold. It is worth noting that, in the 12-month period ended June 2012, gross income totaled R$190.3 million, 19% up on the previous 12-month period. Selling, General & Administrative, and Other Expenses SG&A and other expenses totaled R$26.5 million in 2Q12, a nominal increase of 12% over 2Q11. However, while in 2Q12 the Company booked R$1.7 million in provisions for non-recurring contingencies, in 2Q11 these provisions corresponded to only R$0.1 million. Excluding these effects, expenses climbed by just 4.6% yoy. Amounts in millions of Brazilian reais (Consolidated - IFRS) 2Q12 2Q11 2Q12/2Q11 Jun/12 Jun/11 Operating Expenses (Revenues) Total (26.5) (23.8) 12% (50.0) (41.8) 20% (92.9) (82.1) 13% Selling expenses (2.6) (0.7) 301% (3.9) (2.5) 53% (7.3) (4.4) 65% General and administrative expenses (17.5) (19.9) -12% (38.3) (38.6) -1% (81.9) (79.6) 3% Management compensation (5.9) (3.9) 53% (7.2) (5.1) 41% (10.3) (6.6) 55% Other operating income, net % % % Provisions (reversals) for contingencies (1.7) (0.1) 2918% (2.2) 2.9 n.a % % Expenses/Net Revenue 13.9% 12.9% 1.0 p.p. 16.8% 15.7% 1.1 p.p. 14.5% 15.2% -0.7 p.p. % Expenses/Net Revenue (excluding contingencies) 13.0% 12.9% 0.1 p.p. 16.1% 16.8% -0.7 p.p. 14.9% 15.5% -0.6 p.p. 1H12 1H11 1H12/1H11 5

6 EBITDA EBITDA reached R$25.2 million in the 2Q12, 14% down yoy, chiefly due to the lower gross income resulting from the lower activity in the live music segment. In 1H12, the company generated EBITDA of R$33.3 million, 7% less than in 1H11. Excluding the provisions for contingencies, however, EBITDA increased by 6.5%, with a margin of 11.9%, a 0.7 p.p. improvement. In the 12-month period ended June 2012, EBITDA totaled R$105.2 million, 28% up on the same period a year earlier, accompanied by a 1.2 p.p. increase in the EBITDA margin. (In R$ 000, unless otherwise stated) 2Q12 2Q11 2Q12/2Q11 EBITDA Reconciliation Net Income 13,567 8,875 53% 14,716 9,763 51% 66,023 26, % (+) Income Tax and Social Contributions 7,355 21,970-67% 32,661 37,255-12% 32,661 37,255-12% (+) Net Financial Income (Expenses) 1,721 (2,990) n.d. (1,264) 13, % (1,264) 13,804 n.d. (+) Depreciation and Amortization 2,522 1, % (12,853) (24,944) -48% 7,751 4,547 70% = EBITDA 25,164 29,114-14% 33,259 35,878-7% 105,171 81,873 28% EBITDA Margin 13.2% 15.8% -2.6 p.p. 11.2% 13.5% -2.3 p.p. 16.4% 15.2% 1.2 p.p. (-) Non-recurring contingencies (1,720) (57) 2918% (2,153) 2,887 n.d. 2,733 1,523 79% = Adjusted EBITDA(1) 26,884 29,171-8% 35,412 32,991 7% 102,438 80,350 27% Adjusted EBITDA Margin 14.1% 15.8% -1.7 p.p. 11.9% 12.4% -0.5 p.p. 16.0% 14.9% 1.1 p.p. (1) Exclusion of non-recurring contingencies. 1H12 1H11 1H12/1H11 Jun/12 Jun/11 Net Income Net income climbed by 53% yoy to R$13.6 million, with a margin gain of 2.3 p.p. In the 12-month period ended June 2012, net income totaled R$66 million, a growth of 151% over the prior 12-months. In the same period, the net margin more than doubled, from 4.9% up to 10.3%. Net Income and Net Margin Net Income and Net Margin R$ MM R$ MM 10.3% 7.1% 4.9% 4.8% 9 +53% % 66 2Q11 2Q12 Jun/11 Jun/12 6

7 Cash We closed 2Q12 with a consolidated cash position of R$213 million, following a conservative investment policy that prioritizes the preservation of capital and liquidity. Our cash is maintained in demand deposits and in floating-rate fixed-income securities with daily liquidity by first tier banks. We do not assume exposure to interest rate risk, liquidity risk or financial derivatives, except in the latter case as an operating hedge against the impact of FX risk from the commitments with suppliers in foreign currencies. Debt We ended 2Q12 with interest-bearing debt of R$126 million, comprising: (i) R$115.7 million in R$denominated bonds issued to Banco Bradesco in March 2010, of which two R$18.8 million principal installments each have already been paid and amortization schedule will end in March 2015, and (ii) R$10.6 million in working capital loans (in Argentinean pesos), taken out by our subsidiary in Argentina in June This working capital loan had the sole purpose of funding upfront payments abroad for the contracting of major international concerts to be presented by the end of 2012, matching assets and liabilities (ticket sales) in the same currency (Argentinean pesos) while preserving the cash liquidity of the parent company in Brazil. Cash Debt Net Cash R$ MM Q12 2Q12 7

8 Recent Events Citibank Hall As of July 2012, T4F has contractually extended the long-term lease of Citibank Hall, the most important indoor venue in Rio de Janeiro. The contract gives T4F the exclusive right to operate the venue until 2018 under the same currently existing conditions. Chevrolet Hall On July 1, 2012, T4F assumed the operation of Chevrolet Hall, the most important live entertainment venue in Belo Horizonte with an audience capacity of up to 5,500, completing one more phase of its project to increase the verticalization of its operations and expand its operations in South America. Belo Horizonte becomes the first Brazilian city outside Rio de Janeiro and São Paulo to host a T4F venue. With the renewal of the Citibank Hall lease and the operation of Chevrolet Hall, T4F currently operates five South American venues in a vertically integrated manner under long-term leasing agreements with expiration dates until 2022, including Credicard Hall and Teatro Abril in São Paulo and the Opera Citi theatre in Buenos Aires. Duration of Lease Agreements São Paulo São Paulo Rio de Janeiro Belo Horizonte Buenos Aires Jan Dec Jul Jun Own Pipeline of Events Outdoor Live Music In 4Q12, T4F will promote the South American tours of Linkin Park, Lady Gaga and Madonna, totaling at least 16 large concerts in soccer stadiums and open air arenas in Brazil, Argentina and Chile. In addition to those, we are negotiating the promotion of other major international artists in 4Q12 and

9 Pipeline of Events (cont.) Indoor Live Music Our international indoor music platform includes more than 60 performances in South America from June through the end of the year, featuring artists such as Alanis Morissette (8); Dream Theater (9); Scorpions (3); Yanni (8); Liza Minelli (4); Snow Patrol (4); Simple Plan (4); G3 (5); Morten Harket - A-HA lead singer (5) and Sara Baras (4), among many others. In addition to these international artists, we will be promoting a variety of live music concerts by topclass Brazilian artists, who are important for the recurrence of verticalized revenue, including Maria Rita, Kid Abelha, Victor e Léo and O Rappa, among others. Sport Events In 2H12 we will promote eight races of the annual Copa Caixa Stock Car championship, the most traditional Brazilian car racing series, in five Brazilian states, in addition to six races of the Copa Petrobras de Marcas in the Southern Brazil cities of Curitiba and Porto Alegre. In July we promoted one race of the WTCC world touring car championships in the city of Curitiba. As of July, we also took over the promotion of South American F-3, the main formula speed racing series in the region. We promoted the first race in July in Curitiba and the second was held in Rio de Janeiro in the first weekend of August. Four more races are scheduled before the end of the year. Family Entertainment, Theater and Cultural Exhibitions Cirque du Soleil s South American Varekai tour began the second half of 2012 in Curitiba and is currently being presented in Porto Alegre before moving on to Buenos Aires and Santiago. The Company will continue to promote the Broadway musicals The Addams Family at Teatro Abril in São Paulo, and Mamma Mia! at the Opera Citi theatre in Buenos Aires. The Addams Family recently exceeded the milestone of 200,000 tickets sold. Recent agreements and partnerships with some of the major content providers in the global market will further expand the Company s footprint in the family entertainment segment, increasing the visibility of our revenue potential in the coming years. In the first quarter of 2013, we will start promoting The Lion King in Brazil, the musical with the biggest box office in the history of Broadway. We will also present Corteo as the fifth consecutive tour with Cirque du Soleil promoted by T4F in South America. 9

10 Capital Markets Considering the closing price of R$17,24 as of August 7th, 2012, T4F stock (SHOW3) has appreciated 52.4% year-to-date, well above its the main market benchmark indexes. In comparison with the Ibovespa and the Small Caps indexes of the São Paulo Stock Exchange, where T4F is traded, the stock has overperformed those indexes by 51% and 40%, respectively, year-to-date. Since our IPO, SHOW3 has overperformed the Ibovespa and the Small Caps indexes by 24% and 14%, respectively. Additionally, there was an important growth in the liquidity of our shares. Our average daily trading volume (ADTV) went from R$1.93 million in 2011 up to R$2.65 million in 2012, a growth of 37%. In number of shares, the ADTV rose 25%, from 138,000 to 173,000. In the charts below, it is presented the performance of the T4F stock relatively to selected indexes: SHOW3 IBOV SHOW3 Relative Performance YTD (Index 100) SMLL

11 SHOW3 Relative Performance - Since IPO (Index 100) SHOW3 IBOV SMLL * * * 11

12 Income Statement INCOME STATEMENT 2Q12 2Q11 1H12 1H11 Jun/12 Jun/11 Amounts in millions of Brazilian reais (Consolidated - IFRS) NET OPERATING REVENUE Events Promotion Live Music Performing Arts, Theater and Exhibitions Sport Events Ticketing Services, F&B and Venue Operations Sponsorship Events Promotion Ticketing Services, F&B and Venue Operations COSTS OF SERVICES AND SALES (141.6) (132.7) (218.4) (191.1) (450.2) (380.1) GROSS INCOME OPERATING REVENUES (EXPENSES) (26.5) (23.8) (50.0) (41.8) (92.9) (82.1) Selling expenses (2.6) (0.7) (3.9) (2.5) (7.3) (4.4) General and administrative expenses (17.5) (19.9) (38.3) (38.6) (81.9) (79.6) Management compensation (5.9) (3.9) (7.2) (5.1) (10.3) (6.6) Other operating income, net (0.5) 0.6 (0.7) OPERATING INCOME Financial expenses (4.9) (6.3) (11.0) (12.2) (23.5) (24.6) Financial income Net foreign exchange and inflation (gain) / loss (0.9) (1.1) (2.8) (1.0) (0.8) (5.4) INCOME (LOSS) BEFORE INCOME TAX AND SOCIAL CONTRIBUTION Current income tax and social contribution (4.7) (2.0) (5.4) (3.3) (12.3) (8.3) Deferred income tax and social contribution (2.7) (20.0) (4.9) (20.2) (20.4) (28.9) NET INCOME

13 Balance Sheet ASSETS Jun/2012 Dec/2011 Amounts in millions of Brazilian reais (Consolidated - IFRS) CURRENT ASSETS Cash and cash equivalents Restricted cash Accounts receivable Inventories Recoverable taxes Advances to suppliers Prepaid expenses Other receivables Total current assets NONCURRENT ASSETS Long-term assets: Deferred income tax and social contributions Escrow deposits Prepaid expenses Receivables from related parties Total long-term assets Property, plant and equipment Intangible assets: Goodwill on aquisition of investments Other intangible assets Total noncurrent assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Jun/2012 Dec/2011 Amounts in millions of Brazilian reais (Consolidated - IFRS) CURRENT LIABILITIES Accounts payables Loans and financing Accrued payroll and related taxes Taxes payable Client advances Sponsorships - Cultural Incentive Law (Rouanet Act) Dividends payable Provision for tax, civil and labor contingencies Other payables Total current liabilities NONCURRENT LIABILITIES Loans and financing Reserve for tax, civil and labor contingencies Deferred income tax and social contribution Taxes payable Total noncurrent liabilities SHAREHOLDERS' EQUITY Capital Share issuance costs (9.7) (9.7) Capital reserve Legal reserve Earnings retention reserve Additional dividends proposed Valuation adjustments to equity Equity attributable to shareholders Non-controlling interests in equity of subsidiaries Total consolidated shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

14 Cash Flow Statement CASH FLOW 2Q12 2Q11 1H12 1H11 Amounts in millions of Brazilian reais (Consolidated - IFRS) CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization Net book value of property, plant and equipment written-off 0.1 (0.0) (0.0) 0.0 Deferred income tax and social contribution Loans and financing costs and exchange differences on balances with subsidiaries, financing, borrowings and taxes payable Share-based payments Reversal of tax, civil and labor contingencies (1.8) Recognition (reversal) of allowance for doubtful accounts (Increase) Decrease in operating assets and liabilities: Trade accounts receivables (52.5) (21.0) (65.0) (6.9) Inventories 0.1 (0.1) 0.5 (0.1) Recoverable taxes Advances to suppliers (2.1) 6.8 (11.8) (2.2) Other receivables (6.9) 0.8 (3.6) 1.7 Escrow deposits (0.1) (0.7) 0.0 (1.0) Prepaid expenses (24.8) 31.8 (42.6) 11.5 Trade payables Taxes payable (1.6) (7.3) (0.3) (10.4) Accrued payroll and related taxes (2.8) 2.2 (3.0) 0.1 Advances from customers 57.8 (81.9) 56.7 (46.1) Payments of tax, civil and labor contingencies (0.0) (0.4) (0.7) (0.4) Payments of income tax and social contribution (1.1) 1.5 (2.8) (1.4) Other payables 3.4 (1.3) Net cash generated (used in) by operating activities (1.2) (27.4) (28.1) 4.2 CASH FLOWS FROM INVESTING ACTIVITIES Goodwill on acquisition of investments (2.0) - (2.0) - Purchase of property, plant and equipment and intangible assets (2.0) (2.9) (6.7) (4.8) Net cash generated (used in) by investing activities (4.0) (2.9) (8.7) (4.8) CASH FLOWS FROM FINANCING ACTIVITIES Capital Increase - issuance of new shares Share issuance costs - (14.4) - (14.4) Related parties (4.6) 9.2 (1.5) 8.5 Payment of dividends - (8.8) (0.2) (36.7) Loans and financing Payment of Brazilian local bonds - principal - - (18.8) - Payment of interest on Brazilian local bonds - (4.9) (8.2) (9.4) Net cash generated by (used in) financing activities (18.0) Foreign exchange differences on cash (1.2) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (50.0)