E A R N I N G S R E L E A S E P R E S E N T A T I O N Q 6 A P R I L 27, 2 0 6
Q 6 H I G H L I G H T S Consolidated revenues total US$295.8 million, EBITDA US$40.4 million and Net Income attributable to the owners US$26.5 million. The depreciation of the Brazilian Real, Argentinean Peso and Colombian Peso against the Chilean Peso, negatively affects foreign subsidiaries financial statements translation into reporting currency (Chilean Pesos). Without exchange rate effects, consolidated revenues grow 0.2% and EBITDA 0.8%. Operations outside Chile contribute with 56% of consolidated revenues. Without exchange rate effects, revenues from these operations decrease by.7%. EBITDA Margin reaches 3.7%, improving by 50bp YoY. EBITDA Margin by country was, in Chile 7.0%, Mexico 7.7% and in OPLA 7.3%. EBITDA Margin in Brazil gets 7.3% affected by the salary increase (Dissidio) agreed by employees unions and IT companies in the state of Sao Paulo in January 206, as well as by the increase in Payroll Tax from 2.0% to 4.5% since December 205. Net income attributable to the owners totals US$26.5 million, a 28.3% increase. The latter is explained mainly by lower taxes accrued as a consequence of the Chilean Peso appreciation effect on foreign investments valuation. Taking apart this effect, net income would have increased by 2.%. New deals closed during Q6 amount for US$238.9 million, highlighting the deals closed in IT Outsourcing by US$ 50.2 million. Return on equity (ROE) was 5.2%. Current liquidity ratio was 2.x, Financial Leverage ratio was 0.2x and Financial Expenses coverage ratio was 0.0x, all of them reflecting a healthy financial position. 2
Q 6 C O N S O L I D A T E D R E S U L T S QUARTERLY EBITDA MARGIN AT 3,7% (US$ millions) Q5 Q6 Var % Revenues 37.4 295.8-6.8% OPERATING INCOME 29.0 28.7 -.3% Operating Margin 9.% 9.7% EBITDA 4.8 40.4-3.2% EBITDA Margin 3.2% 3.7% NET INCOME.6 26.5 28.3% Net Margin 3.7% 8.9% 37.4 Revenues (US$ millions) 295.8 38.2 Revenues decrease by 6.8%, mainly due to the effect of foreign subsidiaries income statements translation from local currency to Chilean Peso. Without this, Revenues remain 0.2% higher than those of the previous year. EBITDA (US$ millions) 4.8 40.4 42. Operating Margin and EBITDA Margin increase by 60bp and 50bp, respectively. Net Income grows by 28.3%, mainly due to lower taxes accrued in Q6 as a consequence of the Chilean Peso appreciation against US Dollar. Taking apart this effect, Net Income increases by 2.%. Q6* adjusted by exchange rate 3
C H I L E EBITDA MARGIN REACHES 7.0% (US$ millions) Q5 Q6 Var % Revenues 2. 30. 7.5% OPERATING INCOME 5.5 7.2.% Operating Margin 2.8% 3.2% EBITDA 9.5 22. 3.2% EBITDA Margin 6.% 7.0% 2. Revenues (US$ millions) 30. 25. Revenues increase 7.5%, due to higher revenues from the Platforms (+8.8%) and Applications (+59.8%) businesses. EBITDA (US$ millions) Operating Income increases.% (YoY) and EBITDA 3.2%, due to better performance in the IT Services business. Operating Margin reaches 3.2% and EBITDA Margin 7.0%, higher by 40bp and 90bp, respectively (YoY). 9.5 22. 2.8 Q6* adjusted by exchange rate 4
B R A Z I L MP 669 AND DISSIDIO NEGATIVELY TOUCH EBITDA MARGIN BY 370bp (US$ millions) Q5 Q6 Var % Revenues 38.2 03.4-25.2% OPERATING INCOME 6.7 2.8-57.4% Operating Margin 4.8% 2.7% EBITDA 3.4 7.5-43.9% EBITDA Margin 9.7% 7.3% Revenues (US$ millions) 38.2 26.6 03.4 Revenues decrease by 25.2%, mainly due to currency translation effects. Without this, revenues decrease by 8.4%. EBITDA (US$ millions) Operating Margin reaches 2.7% and EBITDA Margin 7.3%. Decrease in margin is explained by MP 669 (Payroll Tax) in place since December 205, and by the salary increase (Dissidio) agreed upon in January 206 by Employees Unions and IT Companies in the state of Sao Paulo. Both events combined had a 370bp negative effect on Q6 EBITDA Margin. 3.4 7.5 9. Q6* adjusted by exchange rate 5
M E X I C O REVENUES GROW BY 7.7% (US$ millions) Q5 Q6 Var % Revenues 2.8 25.7 7.7% OPERATING INCOME 3.3 3.8 6.9% Operating Margin 5.0% 4.9% EBITDA 3.9 4.5 6.6% EBITDA Margin 7.8% 7.7% 2.8 Revenues (US$ millions) 25.7 27.0 Revenues grow by 7.7% (YoY) boosted by the increase in revenues in the Platform business. Operating income and EBITDA, increase 6.9% and 6.6% with regards to first quarter 205. Operating Margin reaches 4.9% and EBITDA Margin 7.7%, both in similar levels compared to those of last year. EBITDA (US$ millions) 4.8 4.5 3.9 Q6* adjusted by exchange rate 6
O P L A EBITDA MARGIN REACHES 7.3% (US$ millions) Q5 Q6 Var % Revenues 36.4 36.6 0.6% OPERATING INCOME 3.6 4.8 32.8% Operating Margin 0.0% 3.% EBITDA 5.0 6.3 26.5% EBITDA Margin 3.7% 7.3% Revenues (US$ millions) 36.4 36.6 39.5 Revenues remain in similar levels compared to Q5. Without considering the depreciation of the Colombian peso (4%) and the Argentinean Peso (32%) against the Chilean Peso, revenues grow by 8.5%. Operating Income and EBITDA increase 32.8% and 26.5% (YoY), respectively. Operating Margin reaches 3.% and EBITDA margin 7.3%, higher by 30bp and 360bp than those obtained in Q5, respectively. EBITDA (US$ millions) 6.3 6.4 5.0 OPLA includes: Argentina, Colombia, Costa Rica, Ecuador, Peru, Panama and Uruguay Q6* adjusted by exchange rate 7
N E W D E A L S Breakdown by Business Line (US$ millions) Breakdown by Region (US$ millions) 277.6 238.9 277.6 238.9 4.8% 8.6% 43.4% 42.6% 3.9%.2% 7.7%.6% 38.0% 24.8% 4.8% 48.8% 40.4% 52.4% Q5 Q6 Platforms IT Services Applications Q5 Q6 Chile Brazil Mexico OPLA New deals signed during in Q6 reached US$238.9 million, in comparable currency 6% lower than in Q5. The decrease comes mainly from Brazil, and is partially offset by new business signed in Chile and Mexico. Ex Chile operations brought 47.6% of total new deals signed. Pipeline of new potential businesses reached US$,673.2 million, 2.6% higher than in Q5. Q6* adjusted by exchange rate 8
B A L A N C E S H E E T S U M M A R Y US$ millions Dec-5 Mar-6 Var% Cash and Cash Equivalents 02. 25.3 22.7% Other Current Financial Assets 2.6 3.3 27.7% Trade Accounts Receivable and Other Receivables, Net 345.9 274.7-20.6% Other Current Assets 9.9 39.7 6.5% Total Current Assets 570.5 543.0-4.8% Property, Plant and Equipment, Net 42.5 42.3-0.% Intangible Assets and Goodwill 366.8 373.4.8% Other Non-Current Assets 88.9 92.0 3.5% Total Non-Current Assets 598.2 607.8.6% TOTAL ASSETS,68.7,50.8 -.5% Financial Current Liabilities 9.9 3.3-32.8% Other Current Liabilities 277.8 247.2 -.0% Financial Non-Current Liabilities 7.4 7.5 0.% Other Non-Current Liabilities 58. 58.3 0.3% LIABILITIES 473.2 436.4-7.8% TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO OWNERS 685.3 703.5 2.7% Minority Interest 0.2 0.9 6.4% TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY,68.7,50.8 -.5% 9
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