T4F Entretenimento S.A.

Transcription

1 T4F Entretenimento S.A. Management Report 2014 T4F Entretenimento S.A. BM&FBOVESPA: SHOW3 Quotation Closing 12/31/2014: R$ Average Volume: 141 thd (0.4% of free float) Price as of 03/02/2015: R$2.17 Market Cap: R$151 million Conference Calls Date: 03/03/2015 English 09:00 a.m. (US ET) 11:00 a.m. (BR) Phone: +1 (877) (USA) +1 (412) (others) Code: T4F Replay (7 days) +1 (877) (USA) +1 (412) (others) Code: Portuguese 08:00 a.m. 10:00 a.m. (BR) Phone: +55 (11) Code: T4F Replay (7 days) +55 (11) Code: T4F Investor Relations + 55 (11)

2 São Paulo, March 2, 2015 T4F Entretenimento S.A. ( T4F or Company ) (BMF&BOVESPA: SHOW3), leading live entertainment company in South America, announces the audited results for the fourth quarter of 2014 (4Q14) and 2014 fiscal year. The financial and operational information herein were prepared according to International Financial Reporting Standards (IFRS) and the accounting practices adopted in Brazil Highlights Promotion of 1,014 live music, theater and family events (-14% versus 2013) with 2.3 million tickets sold (+5% versus 2013); Net revenues of R$552.9 million, in line with the same period last year; Expenses decreased 14% compared to 2013; EBITDA amounted to negative R$26.1 million due mainly to the oversized hiring of Cirque du Soleil s Corteo; and T4F was elected Top Independent International Promoter by Billboard Magazine for the 5 th time (2009, 2010, 2012, 2013 and 2014). Financial Indicators (R$ 000) Chg. % 4Q13 4Q14 Chg. % Net Revenue % % Events Promotion % % Live Music % % Family Events and Theater % % Sports Events % % Ticketing, F&B and Venues Operation % % Sponsorship % % Events Promotion % % Ticketing, F&B and Venues Operation % % Cost (461.9) (512.3) 11% (202.2) (89.7) -56% Gross Profit % % Gross Margin (%) 16.2% 7.3% 9.1% 8.5% SG&A (94.9) (82.1) -14% (23.6) (21.7) -8% Impairment - (20.0) n.a. - (20.0) n.a. EBITDA 7.9 (26.1) n.a. 2.2 (9.5) n.a. EBITDA Margin (%) 1.4% -4.7% 1.0% -9.6% Financial Result (9.0) (13.4) 50% (0.3) (1.3) 355% Net Result (14.7) (70.3) 378% (3.7) (42.4) 1046% Net Margin (%) -2.7% -12.7% -1.7% -43.2% Operational Indicators Chg. % 4Q13 4Q14 Chg. % Live Music Events Promoted % % Tickets Sold (000) 1,166 1,375 18% % Average Ticket Price (R$) % % Family Events and Theater Events Promoted % % Tickets Sold (000) 1, % % Average Ticket Price (R$) % % Total Events Promoted 1,181 1,014-14% % Tickets Sold (000) 2,228 2,341 5% % Average Ticket Price (R$) % % 2

3 We present below comments over the financial statements related to the fiscal year ended on December 31, We recommend reading this material together with the Financial Statements ( DFP ). Message from the Management The year 2014 was quite challenging in macroeconomic terms. In addition to GDP growth lower than expected in the countries we operate (Brazil, Argentina, Chile and Peru), there was also an important devaluation of this currency basket. This adverse environment, combined with the overestimated hiring of Cirque du Soleil s Corteo show, negatively impacted our results, eroding significantly our margins. Another factor that contributed to the results below our expectations was the shortage in the flow of international artists to South America in the end of Historically, we have always performed tours of established international artists in the last quarter of the year; however last year many tours have been postponed for 2015 due to agenda problems of various artists, differently from what we had initially predicted. Despite this unfavorable situation experienced in 2014, we guaranteed important achievements for the Company: We were awarded for the 5 th time (2009, 2010, 2012, 2013 and 2014) as Top Independent International Promoter by Billboard Magazine; In live music, we promoted the 3 rd edition of one of the most important festivals nowadays Lollapalooza Brazil (first time by T4F), which was a big hit with audiences and critics. As this content has a long-term contract (5 years renewable for the same period), it can play an important role in the recurrence of revenues and result; and In venues, we operated Teatro Cetip in São Paulo for the first year, which has established itself as an important site for the segment of adapted musicals. The year 2014 was important not only in the search for high-quality content and recurrence of results, but also in our strong work on cost reduction, improvement and simplification of internal processes, as well as in the realignment of our internal structure. This movement generated savings of R$12.9 million in expenses in 2014 versus We are confident in a recovery of our results, given that we now have a new more efficient structure and that 2015 will be the first year without the expressive negative effects caused by hires of content during the year 2012, period of greatest intensity of the irrational competition experienced in our industry. We believe that our results will show more concretely our potential, without the contamination of negative results that we had been carrying from that period, especially with respect to Cirque du Soleil. We have begun 2015 with a significant hired events pipeline and in the final stage of negotiation of various contents to be announced soon. 3

4 Events Pipeline Live Music In outdoor live music, we performed in January, 2015, 6 concerts of the Foo Fighters tour in the cities of São Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Buenos Aires and Santiago. In March, we will promote 2 days of the 4 th edition of Lollapalooza Brazil Festival, at the Interlagos circuit in São Paulo. The festival will feature more than 50 bands, among which 2015 Grammy Award winners such as Pharrell Williams, Jack White and St. Vicent, in addition to Calvin Harris, Robert Plant, Skrillex, Foster the People, and many others. In April, we will perform the tour of Imagine Dragons in the cities of São Paulo and Buenos Aires in arenas, besides one concert at Citibank Hall in Rio de Janeiro. In indoor music, we have already scheduled more than 70 concerts for the 1H15 of important national and international artists, like Joss Stone, Jason Mraz, Lindsey Stirling, Brit Floyd, Violetta, Ana Carolina, Almir Sater, Capital Inicial, Roupa Nova, among many others. Based on the artists of Lollapalooza Festival, we created a tour of indoor concerts called Onix on the Road by Lolla with performances in the cities of Rio de Janeiro, Porto Alegre and Belo Horizonte. Family Events & Theater In March we will premiere the original Broadway musical Sister Act at Teatro Renault. Produced by Whoopi Goldberg, Stage Entertainment and, now, T4F, this hilarious comedy has been performed in 11 countries and seen by more than five million people. In April we will perform Fuerza Bruta with the Wayra show, which brings unique 360 o experience with music, dance, acrobatics and interactivity with the public. In May we will promote the 8 th season of Disney on Ice with the Treasury Trove show in the cities of São Paulo and Rio de Janeiro. Sports Events In 2015 the stages of Copa Schin Stock Car, Campeonato Brasileiro de Marcas, Mercedes-Benz Challenge, Fórmula 3 Brasil and Campeonato Brasileiro de Turismo will be unified. These five categories will be performed together throughout the year, divided into 12 stages. The 2015 season will start in March 2015 in the city of Goiânia. In this race, Stock Car will promote the traditional duo race, in which major auto racing names like Jacques Villeneuve, Vitantonio Liuzzi, Bruno Senna, Nicolas Prost and Nelson Piquet Jr. are invited to compete in partnership with the current drivers. 4

5 Comments on the Economic-Financial Consolidated Performance % 2,228 2,341 4Q13 4Q14-14% 1,181 1,014-33% % # Events Tickets Sold (000) # Events Tickets Sold (000) Operating Indicators In 2014 we promoted 1,014 live music, theater and family events and we sold 2.3 million tickets. The number of events promoted decreased 14% and tickets sold increased 5% compared to In live music, we delivered 257 concerts, down 4% from 2013, with 1.4 million tickets sold, up 18% from The promotion of fewer concerts reflects the lower activity of indoor concerts in Brazil during the World Cup (from June to August) and the lower activity in Argentina in 4Q14, while the higher number of tickets sold is a result of the performance of outdoor concerts with great appeal to the audience. The tours of Metallica and One Direction in the 1H14 were nearly sold out in all markets performed, and the 3 rd edition of Lollapalooza Festival (for the first time produced by T4F) was a huge success with more than 130 thousand tickets sold. In family and theater, the number of events and tickets sold decreased 17% and 9%, respectively, in 2014 versus The number of performances of theater and Cirque du Soleil remained practically the same, while the reduction occurred in performing arts: in 2013 we presented Disney on Ice, Madagascar, Alvin Ailey, El Principito and Billy Elliot, and in 2014 we decided to promote only Disney on Ice, as the performing arts shows for this year were very dependent on sponsorship and unrepresentative in terms of box office. Regarding the number of tickets sold, the poorer performance this year reflects not only the lower number of shows but also a lower occupancy rate in the shows performed, mainly Corteo of Cirque du Soleil, held in the cities of Rio de Janeiro, Porto Alegre and Lima, in Peru. In 4Q14 we promoted 223 live music, theater and family events and we sold 369 thousand tickets. Both indicators fell by 33% and 59%, respectively, year-on-year. In live music, the decrease in tickets sold was due mainly to the absence of outdoor concerts in 4Q14 and the reduction in family events and theater was a result of the lower than expected attendance to the performances of Corteo in Lima, Peru. 5

6 Net Revenues Net Revenue (R$ 000) Chg. % 4Q13 4Q14 Chg. % Events Promotion % % Live Music % % Family Events and Theater % % Sports Events % % Ticketing, F&B and Venues Operation % % Sponsorship % % Events Promotion % % Ticketing, F&B and Venues Operation % % TOTAL % % Net revenues in 2014 amounted to R$552.9 million, roughly in line with 2013 (R$551.3 million). Net revenues in events promotion increased 16% in 2014, totaling R$353.5 million versus R$306.0 million in This result is a consequence essentially of the performance of live music segment, which showed a better concert mix with increase not only in tickets sold, but also in the average ticket price, from R$142 in 2013 to R$159 in Events Promotion R$ M % Net revenues of Ticketing, F&B and Venues operations decreased 20% in The major events in 2014 had their sales in 2013 and we had fewer sales for 2015 events starting in 2014, combined with absence of concerts in 4Q14. These factors affect both box office and F&B operations. Ticketing, F&B and Venues R$ M % Net revenues of sponsorship reached R$90.7 million in 2014 versus R$110.0 million in This weaker performance is a direct consequence of a 4Q14 unrepresentative in terms of content and of the hosting of the World Cup which ran for an important part of the companies marketing budgets. Sponsorship R$ M % In 4Q14, net revenues totaled R$98.1 million, down 56% from 4Q13 (R$222.5 million). This performance in events promotion, ticketing, F&B and venues operations, and sponsorship can be briefly explained by (i) a lower activity in the period due to the absence of outdoor concerts in the last quarter, caused by problems with the artists agenda, and (ii) lower than expected tickets sales and outsourcing of the F&B operations at the performances of Cirque du Soleil in Lima, Peru. 6

7 Gross Profit Gross Profit (R$ 000) Chg. % 4Q13 4Q14 Chg. % Gross Profit % % Gross Margin (%) 16.2% 7.3% 9.1% 8.5% Gross profit totaled R$40.6 million in 2014 versus R$89.4 million in In 4Q14 gross profit reached R$8.4 million versus R$20.3 million in 4Q13. This lower result is a direct consequence of the overestimation in the hiring of the performances of Corteo, mainly for the cities of Rio de Janeiro, Porto Alegre and Lima, Peru. The higher number of performances did not result in attendance increase, though generated higher costs which significantly impacted our gross result, eroding the Company s margins. Operating Expenses (Revenues) SG&A (R$ 000) Chg. % 4Q13 4Q14 Chg. % Sales (4.1) (3.8) -8% (1.4) (0.7) -46% General and Administrative (86.2) (72.2) -16% (22.0) (19.6) -11% Management Compensation (5.6) (5.7) 0% (1.6) (1.8) 13% SG&A (96.0) (81.6) -15% (25.0) (22.1) -11% % Total/Net Revenue 17.4% 14.7% 11.2% 22.5% Other Operating Revenues (Expenses) 1.0 (0.5) n.a % Total (94.9) (82.1) -14% (23.6) (21.7) -8% % Total/Net Revenue 17.2% 14.8% 10.6% 22.2% Impairment - (20.0) n.a. - (20.0) n.a. Sales, general and administrative expenses and management compensation totaled R$81.6 million in 2014, down 15% from Back in 2012, these expenses amounted to R$101.4 million, which means a reduction of approximately R$20.0 million in the last 2 years. If we consider inflation (12.7%) and collective bargaining with real gain in the period for Brazil (our main operating market), this reduction in the last two years exceeds 30%, reflecting the Company s commitment to the readjustment of its internal structure and simplification of processes. In 4Q14, SG&A expenses decreased 11% compared to 4Q13. Regarding impairment, in 2007 the the acquisition of the companies B.A. Inversiones S.A. and T4F Inversiones S.A. (both of them based in Buenos Aires, Argentina) generated goodwill of R$83.3 million which was registered in the account books for its original value. On December 31, 2014, when subjected to impairment test based on a projected cash flow for the next five years, the Company redid its projections for future results and as a consequence an allowance for impairment loss was recognized in the amount of R$20.0 million highlighted under line item "Other operating expenses" in the income statement. 7

8 EBITDA EBITDA Reconciliation (R$ 000) Chg. % 4Q13 4Q14 Chg. % Net Result (14.7) (70.3) 378% (3.7) (42.4) 1046% (+) Income Tax and Social Contribution 0.2 (4.6) n.a % (+) Net Financial Result % % (+) Depreciation and Amortization % % (+) Impairment n.a n.a. =EBITDA 7.9 (26.1) n.a. 2.2 (9.5) n.a. EBITDA Margin (%) 1.4% -4.7% 1.0% -9.6% As a result of the aforementioned factors, EBITDA in 2014 totaled negative R$26.1 million versus positive R$7.9 million in In 4Q14 EBITDA amounted to negative R$9.5 million versus positive R$2.2 million in 4Q13. Financial Result Financial Result (R$ 000) Chg. % 4Q13 4Q14 Chg. % Financial Income % % Active Interest % % Income over Financial Investments % % Others % % Financial Expenses (17.2) (15.2) -12% (3.4) (3.2) -4% Passive Interest (4.6) (6.5) 42% (1.2) (1.8) 47% Interests with Borrowings - Debentures (7.4) (4.6) -37% (1.6) (0.6) -61% Losses with Swap Operations (0.4) % % IOF (Tax on Financial Transactions) (2.6) (2.6) -1% (0.8) (1.7) 112% Taxes and Others (2.3) (1.5) -37% (0.2) % Exchange Variance (2.7) (4.3) 60% (0.4) % Net Financial Result (9.0) (13.4) 50% (0.3) (1.3) 356% In 2014, net financial result represented an expense of R$13.4 million versus an expense of R$9.0 million in Net financial income fell by 45% due to the lower average cash and also as a result of our hedging policy. Financial expenses decreased 12% due to the reductions of: (i) 37% in interest from debentures, as a consequence of the lower balance due; (ii) 37% in others, including expenditures with bank guarantee, records, bank fees, etc.; and (iii) No losses with swap transactions. The reduction in financial expenses was not higher due to the increase in interest expenses, which consists of interest payments for the loan of R$24.0 million in Argentinian Pesos at a rate of 27% per year. In addition, exceptionally in 3Q14, financial expenses reflected the adjustment of charges on the Company s REFIS programs, registered with the Department of Federal Revenue of Brazil (RFB) in

9 Net Result Net Result (R$ 000) Chg. % 4Q13 4Q14 Chg. % Result Before Taxes (14.5) (74.9) 416% (3.6) (34.7) 860% (-) Income Tax and Social Contribution (0.2) 4.6 n.a. (0.1) (7.6) n.a. Net Result (14.7) (70.3) 378% (3.7) (42.4) 1046% Due to the aforementioned reasons, which includes impairment in the amount of R$20.0 million, fiscal year ended on December 31, 2014, presented loss of R$70.3 million versus loss of R$14.7 million in In 4Q14 net result was a loss of R$42.4 million, of which R$20.0 million consist of impairment, versus a negative result of R$3.7 million in Working Capital Working Capital (R$ M) Chg. % Assets % Accounts Receivable % Inventories % Advances to Suppliers and Anticipated Costs % Liabilities % Accounts Payable (Suppliers) % Advances from Clients % Net Working Capital (14.3) (37.5) 162% In the year 2014 working capital was negative in R$37.5 million versus negative R$14.3 million in The maintenance of negative working capital is due mainly to our business model, in which we present anticipated sales of tickets and sponsorship (registered in advances from clients) versus payment of costs to suppliers concentrated mostly on dates close to the related events. Cash and Indebtedness Cash and Indebtedness (R$ 000) Chg. % 3Q14 4Q14 Chg. % Operating Cash Flow 66.2 (27.3) -141% % Investments Cash Flow (18.5) (6.7) -64% (2.4) (0.9) -60% Financing Cash Flow (54.3) (38.9) -28% (17.0) 0.6 n.a. Exchange Variance 5.5 (2.1) n.a. (0.3) 0.5 n.a. Reduction in Cash and Cash Equivalents (1.3) (75.0) n.a. (8.4) 11.5 n.a. Balance in Cash and Cash Equivalents % % Borrowings and Financing - Short Term % % Borrowings and Financing - Long Term % % Total Indebtedness % % Net Cash (Debt) % % Cash and cash equivalents totaled R$73.3 million at the end of 2014 (R$96.4 million considering restricted cash) versus R$148.3 million in 2013: 9

10 Operating cash: consumption of R$27.3 million due to a negative EBITDA, as previously described. Investments: R$6.7 million were spent in: (i) data processing; (ii) adequacy and maintenance of our venues; (iii) vehicles of our auto racing segment; and (iv) acquisition of machinery, equipment and structures in general. Financing: consumption of R$38.9 million with our financing activities, mainly due to the amortization of 2 semi-annual installments of debentures in the amount of R$37.5 million. We thus concluded 2014 with: (i) total indebtedness of R$43.7 million, down 35% from 2013; and (ii) net cash of R$29.6 million versus R$80.7 million in Final Considerations In compliance with CVM s Instruction 381, the Company hired the services of an independent audit by Deloitte Touche Tohmatsu. The Company's policy is to meet regulatory constraints that define the services to be provided by independent auditors to public companies. In the fiscal year ended December 31, 2014 no other service but financial auditing related to the financial statements was provided by the independent auditors or parties related to them. T4F s management thanks its employees, shareholders, customers and suppliers for their trust in the Company in * * * 10

11 Income Statement (R$ 000) NET OPERATING REVENUE 222,465 98,062 COST OF SERVICES PROVIDED AND PRODUCTS SOLD (202,200) (89,699) GROSS PROFIT 20,265 8,363 OPERATING INCOME (EXPENSES) Sales (1,353) (732) General and administrative (22,010) (19,566) Management compensation (1,600) (1,803) Other operating income (expenses), net 1,374 (19,646) OPERATING PROFIT (LOSS) BEFORE FINANCIAL (EXPENSES) INCOME (3,324) (33,384) FINANCIAL RESULT Financial expenses (3,361) (3,239) Financial income 3, Net exchange rate and monetary variation (424) 904 OPERATING PROFIT (LOSS) BEFORE INCOME TAX AND SOCIAL CONTRIBUTION (3,619) (34,727) INCOME TAX AND SOCIAL CONTRIBUTION Current (1,042) 182 Deferred 963 (7,821) NET RESULT (3,698) (42,366) 4Q13 4Q NET OPERATING REVENUE 551, ,939 COST OF SERVICES PROVIDED AND PRODUCTS SOLD (461,938) (512,328) GROSS PROFIT 89,385 40,611 OPERATING INCOME (EXPENSES) Sales (4,099) (3,753) General and administrative (86,232) (72,150) Management compensation (5,647) (5,655) Other operating income (expenses), net 1,039 (20,527) OPERATING PROFIT (LOSS) BEFORE FINANCIAL (EXPENSES) INCOME (5,554) (61,474) FINANCIAL RESULT Financial expenses (17,201) (15,206) Financial income 10,894 6,022 Net exchange rate and monetary variation (2,663) (4,256) OPERATING PROFIT (LOSS) BEFORE INCOME TAX AND SOCIAL CONTRIBUTION (14,524) (74,914) INCOME TAX AND SOCIAL CONTRIBUTION Current (2,637) (2,730) Deferred 2,441 7,323 NET RESULT (14,720) (70,321) 11

12 Balance Sheet (R$ 000) ASSETS CURRENT Cash and Cash Equivalents 148,309 73,305 Restricted Cash 15,628 23,143 Accounts Receivables 94,984 54,650 Inventories 2, Recoverable Taxes 24,014 33,458 Advances to Suppliers 38,423 7,567 Anticipated Costs 57,007 13,811 Other Receivables 8,338 5,641 Total Current Assets 388, ,258 NON-CURRENT Deferred Income Tax and Social Contribution 81,441 86,726 Judicial Deposits 6,703 9,215 Anticipated Costs 1, Related Parties 10,014 12,856 Total Long Term Assets 99, ,906 Fixed Assets (Property, Plant and Equipment) 50,593 41,254 Intangible: Goodwill on investments acquisition 135, ,294 Other intangibles 3,891 2,670 Total Non-Current Assets 289, ,124 TOTAL ASSETS 678, ,382 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT Suppliers 89,206 51,110 Borrowings and financing 48,875 43,474 Payroll, Provisions and Social Contributions 5,272 5,092 Taxes Payable 21,568 8,641 Advances to Clients 117,750 63,088 Sponsorships - Culture Incentive Law (Rouanet Act) 13,100 19,349 Dividends Payable Provision for Tax, Civil and Labor Contingencies Other Payables 2,356 1,953 Total Current Liabilities 299, ,642 NON-CURRENT Borrowings and financing 18, Provision for Tax, Civil and Labor Contingencies 20,141 22,384 Deferred Income Tax and Social Contribution 1,547 1,003 Taxes Payable 5,899 5,914 Other Payables Total Non-Current Liabilities 46,337 30,340 SHAREHOLDERS' EQUITY Capital Stock 243, ,022 Costs with Shares Issuance (9,665) (9,665) Capital Reserve 1,299 1,246 Legal Reserve - - Revaluation Reserve 1,347 1,164 Earnings Retention Reserve 76,655 7,488 Treasury Stocks (5,392) (8,672) Comprehensive Results 17,845 14,375 Controlling Shareholders' Stake 325, ,958 Non-controlling Interests in Equity of Subsidiaries 7,655 7,442 Total Consolidated Shareholders' Equity 332, ,400 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 678, ,382 12

13 Cash Flow (R$ 000) Q CASH FLOWS FROM OPERATING ACTIVITIES Net result for the period (14,720) (42,366) (70,321) Adjustments to reconcile (loss) profit for the period to net cash provided by (used in) generated by operating activities: Depreciation and amortization 13,451 3,931 15,393 Losses due to impairment of goodwill - 20,002 20,002 Residual value of property, plant and equipment written-off ,918 Deferred income tax and social contribution (2,441) 7,821 (7,323) Financial charges and and exchange differences on balances with subsidiaries, financing, borrowings and taxes payable 5,728 4,994 8,997 Share-based payments Recognition (reversal) of tax, civil and labor contingencies ,069 Constitution (reversal) of allowance for doubtful accounts 1,853 1,775 2,656 (Increase) Decrease in operating assets and liabilities: Trade accounts receivables 7,510 29,607 34,903 Inventories (845) 1,988 1,501 Recoverable taxes (5,646) (3,402) (11,294) Advances to suppliers (30,281) 4,388 30,257 Other receivables (3,672) 2,641 1,798 Escrow deposits (998) 963 (2,548) Prepaid expenses (37,001) 21,962 39,507 Trade payables 33,387 (32,975) (31,940) Taxes payable 3,382 (7,240) (12,660) Accrued payroll and related taxes (295) (1,580) 4 Advances from clients 95,247 3,807 (49,279) Payments of tax, civil and labor lawsuits (1,164) (343) (910) Other payables 4,489 (5,575) (635) Payments of income tax and social contribution (2,513) - - Cash generated by (used in) operating activities 66,153 11,447 (27,342) CASH FLOWS FROM INVESTING ACTIVITIES Goodwill on acquisition of investments (3,873) 0 0 Purchase of property, plant and equipment and intangibles (12,861) (947) (6,664) Acquisition of interets in subisidiary Vicar (1,785) - - Net cash used in investing activities (18,519) (947) (6,664) CASH FLOWS FROM FINANCING ACTIVITIES Aquisition of own shares (5,392) (488) (3,280) Related parties (195) (1,854) (2,437) Payment of dividends - (445) (540) Borrowings and financing 9,485 7,023 30,212 Payment of borrowings and financing (12,888) (3,662) (19,727) Payment of debentures - principal (37,500) - (37,500) Payment of debentures - interests (7,855) - (5,664) Net cash used in financing activities (54,345) 573 (38,937) Exchange diferences on Cash and Cash Equivalents 5, (2,061) DECREASE IN CASH AND CASH EQUIVALENTS (1,261) 11,547 (75,004) CASH AND CASH EQUIVALENTS Cash and cash equivalents at beginning of period 149,570 61, ,309 Cash and cash equivalents at end of period 148,309 73,305 73,305 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,261) 11,547 (75,004) 13